Appraisal Matt Lubawy

Transcription

A SUMMARY APPRAISAL REPORT OF
A Vacant Land Parcel
OWNED BY
City of Reno
LOCATED
Along the North Side of South Meadows Parkway, East of Double R Boulevard,
Reno, Washoe County, Nevada 89521
Assessor’s Parcel No.: 163-200-04
FOR THE PURPOSE OF
Forming an Opinion of the
Current Market Value
Of the Subject Property
DATE OF REPORT
February 14, 2013
PREPARED FOR
Ms. Lori Miles, SR/WA
City of Reno
1 E. 1st Street, 8th Floor
Reno, Nevada 89501
Project Name: South Meadows Parkway
APPRAISAL COMPLETED BY
LUBAWY & ASSOCIATES, INC.
3034 South Durango Drive, Suite 100
Las Vegas, Nevada 89117
Phone: (702) 242-9369
Fax: (702) 242-6391
File #2013-022
REAL ESTATE APPRAISERS AND CONSULTANTS
February 14, 2013
File #2013-022
Ms. Lori Miles
City of Reno
1 E. 1st Street, 8th Floor
Reno, Nevada 89501
Re:
A Summary Appraisal Report of
A Vacant Land Parcel
Located Along the North Side of South Meadows Parkway, East of Double R Boulevard
Reno, Washoe County, Nevada, 89521
Project Name: South Meadows Parkway
Dear Ms. Miles:
As requested, we have prepared an appraisal report of the above referenced property. The property
is located on the north side of Meadows Parkway, east of Double R Boulevard. The subject is
identified as Washoe County Assessor’s Parcel Number 163-200-04 and is zoned PUD, Planned Unit
Development, under the jurisdiction of the City of Reno.
The subject has a total land area of 1.00 acre or 43,566 square feet, and the usable land area is also
1.00 net acre or 43,566 net square feet.
We have inspected the site in order to estimate the current market value of the subject property. The
client of this report is City of Reno. The intended user of this report is City of Reno. The intended
use of this report is to assist City of Reno in asset management. The supporting data, analyses, and
conclusions used to form an opinion of the market value of the subject are contained in the
accompanying report and addenda. This letter by itself should not be construed as a complete
report.
This is a Summary Report as defined by Uniform Standards of Professional Appraisal Practice
under Standards Rule 2-2(B). This format provides a summary of the appraisal process, subject and
market data valuation analyses. Supporting documentation concerning the data, reasoning, and
analyses are retained in the appraisers’ files. The depth of discussion contained in this report is
specific to the needs of the client and for the intended use stated above. The appraisers are not
responsible for unauthorized use of this report.
3034 S. DURANGO DRIVE, SUITE 100, LAS VEGAS, NEVADA 89117 PHONE (702) 242-9369 FAX (702) 242-6391
Ms. Lori Miles
February 14, 2013
File #2013-022
Page 2
The purpose of this appraisal report is to estimate the current market value of the subject property
as of February 13, 2013. We have appraised the fee simple ownership rights.
Based upon an analysis of the market data and subject to the assumptions and limiting conditions
contained within this report, we have formed an opinion of the market value of the subject as
follows:
MARKET VALUE
IDENTIFICATION
PROPERTY
RIGHTS
APPRAISED
Fee Simple
EFFECTIVE DATE
OF VALUE
MARKET
VALUE
February 13, 2013
$700,000
According to the Treasurer's Office, there is no past or current tax amount owed as of the date of this
report.
The acceptance of this appraisal assignment and the completion of the appraisal report submitted
herewith are not contingent upon any extraordinary assumptions and/or hypothetical conditions.
The market value opinions have been predicated upon an exposure time of 12 months, based upon
available market data. The marketing period has also been estimated at 12 months based upon
similar data contained later in the appraisal.
Thank you for giving us the opportunity of appraising this property. If we may be of further
assistance, please do not hesitate to contact us.
Sincerely,
Matthew Lubawy, MAI
Nevada License A.0000044-CG
License Expires April 30, 2013
Andrew J. Johnson, MAI
License Expires January 31, 2014
3034 S. DURANGO DRIVE, SUITE 100, LAS VEGAS, NEVADA 89117 PHONE (702) 242-9369 FAX (702) 242-6391
TABLE OF CONTENTS
ASSUMPTIONS AND LIMITING CONDITIONS.............................................................................................................. 1
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS ..................................................................................................... 1
EXTRAORDINARY ASSUMPTIONS ........................................................................................................................................... 3
HYPOTHETICAL CONDITIONS ................................................................................................................................................... 3
CERTIFICATION OF VALUE .......................................................................................................................................... 4
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS .......................................................................................... 6
INTRODUCTION .............................................................................................................................................................. 9
IDENTIFICATION OF THE PROPERTY ...................................................................................................................................... 9
CENSUS TRACT NUMBER ........................................................................................................................................................... 9
LEGAL DESCRIPTION .................................................................................................................................................................. 9
PURPOSE OF APPRAISAL ............................................................................................................................................................ 9
CLIENT ............................................................................................................................................................................................ 9
INTENDED USER ........................................................................................................................................................................... 9
INTENDED USE OF THE APPRAISAL ........................................................................................................................................ 9
EFFECTIVE DATE(S) OF VALUATION ...................................................................................................................................... 9
DATE OF APPRAISAL REPORT ................................................................................................................................................. 10
USPAP COMPETENCY PROVISION .......................................................................................................................................... 10
PROPERTY RIGHTS APPRAISED .............................................................................................................................................. 10
DEFINITION OF MARKET VALUE ........................................................................................................................................... 10
EXPOSURE TIME ......................................................................................................................................................................... 11
MARKETING TIME...................................................................................................................................................................... 11
CURRENT OWNERSHIP/ OWNERSHIP HISTORY .................................................................................................................. 11
SCOPE OF APPRAISAL ............................................................................................................................................................... 11
AREA / CITY DESCRIPTION AND ANALYSIS............................................................................................................... 13
INTRODUCTION .......................................................................................................................................................................... 13
REGIONAL ECONOMIC OVERVIEW........................................................................................................................................ 13
GEOGRAPHIC SETTING ............................................................................................................................................................. 13
TOURISM/CASINOS .................................................................................................................................................................... 14
CLIMATE ...................................................................................................................................................................................... 14
TOPOGRAPHY ............................................................................................................................................................................. 14
TRANSPORTATION..................................................................................................................................................................... 15
UTILITIES ..................................................................................................................................................................................... 15
LINKAGES .................................................................................................................................................................................... 15
SOCIAL FORCES .......................................................................................................................................................................... 16
POPULATION ............................................................................................................................................................................... 16
EMPLOYMENT ............................................................................................................................................................................ 17
CONCLUSION .............................................................................................................................................................................. 18
MARKET AREA/NEIGHBORHOOD DESCRIPTION AND ANALYSIS ......................................................................... 19
MARKET AREA/NEIGHBORHOOD BOUNDARIES ................................................................................................................ 20
MARKET AREA/NEIGHBORHOOD DESCRIPTION ................................................................................................................ 20
TRANSPORTATION..................................................................................................................................................................... 20
PROPERTY TAXES ...................................................................................................................................................................... 20
UTILITIES/SERVICES.................................................................................................................................................................. 21
EXTERNAL INFLUENCES .......................................................................................................................................................... 21
RETAIL AND OFFICE MARKET ANALYSIS............................................................................................................................ 21
MARKET AREA CONCLUSION ................................................................................................................................................. 21
SITE DESCRIPTION AND ANALYSIS ............................................................................................................................ 22
ZONING ......................................................................................................................................................................................... 26
CONCLUSION .............................................................................................................................................................................. 28
ASSESSED VALUE AND PROPERTY TAXES ................................................................................................................ 29
CALCULATION OF TAXES ........................................................................................................................................................ 29
TAX RATES .................................................................................................................................................................................. 29
HIGHEST AND BEST USE ............................................................................................................................................. 31
HIGHEST AND BEST USE AS THOUGH VACANT ................................................................................................................. 31
METHOD OF VALUATION ............................................................................................................................................ 34
LAND VALUATION ........................................................................................................................................................ 35
LAND SALES ANALYSIS ........................................................................................................................................................... 49
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Table of Contents
EXPOSURE TIME AND MARKETING PERIOD ........................................................................................................... 54
ADDENDA .........................................................................................................................................................................I
SUBJECT PHOTOGRAPHS ........................................................................................................................................................... II
ENGAGEMENT LETTER ............................................................................................................................................................. VI
FEMA FLOOD MAP ..................................................................................................................................................................... IX
QUALIFICATIONS OF APPRAISERS......................................................................................................................................... XI
ASSUMPTIONS AND LIMITING CONDITIONS
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
herewith are contingent upon the following general assumptions and limiting conditions:
1. This is a Summary Report as defined by Uniform Standards of Professional Appraisal Practice
under Standards Rule 2-2(B). This format provides a summary of the appraisal process, subject
and market data valuation analyses. Supporting documentation concerning the data, reasoning,
and analyses is retained in the appraisers’ file. The information contained in this report is
specific to the needs of the client and for the intended use stated in this report. The appraiser is
not responsible for unauthorized use of this report.
2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to
be good and marketable unless otherwise stated.
3. The property is appraised free and clear of any or all liens or encumbrances unless otherwise
stated in this report.
4. Responsible ownership and competent property management are assumed, unless otherwise
stated.
5. The information furnished by others is believed to be reliable; however, no warranty is given for
its accuracy.
6. All engineering is assumed to be correct. Any plot plans and illustrative material in this report
are included only to assist the reader in visualizing the property.
7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such conditions
or for arranging for engineering studies that may be required to discover them.
8. It is assumed that there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless otherwise stated.
9. It is assumed that all applicable zoning and use regulations and restrictions have been complied
with, unless a nonconformity has been stated, defined, and considered.
10. It is assumed that all required licenses, certificates of occupancy or legislative or administrative
authority from any local, state, or national governmental or private entity organization have
been or can be obtained or renewed for any use on which the value opinions contained in this
report are based.
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Assumptions and Limiting Conditions
11. Any sketch may show approximate dimensions and is included to assist the reader in
visualizing the property. Maps and exhibits found are provided for reader reference purposes
only. No guarantee as to accuracy is expressed or implied unless otherwise stated. No survey
has been made for the purpose of this report.
12. It is assumed that the utilization of the land and improvements is within the boundaries or
property lines of the property described and that there is no encroachment or trespasses unless
otherwise stated.
13. The appraisers are not qualified to detect hazardous waste and/or toxic materials. Any
comment by the appraisers that might suggest the possibility or presence of such substances
should not be taken as confirmation of the presence of hazardous waste and/or toxic materials.
Such determination would require investigation by a qualified expert in the field of
environmental assessment. The presence of substances such as asbestos, urea-formaldehyde,
foam insulation, or other potentially hazardous materials may affect the value of the property.
The appraisers’ value opinions are predicated on the assumption that there is no such material
on or in the property that would cause a loss in value unless otherwise stated in this report. No
responsibility is assumed for any environmental conditions, or for any expertise or engineering
knowledge required to discover them. The appraisers’ descriptions and resulting comments are
the result of the routine observations made during the appraisal process.
14. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not
made a specific compliance survey and analysis of this property to determine whether or not it is
in conformity with 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 the property is not in compliance with one or more of the requirements of the act. If so,
this fact could have a negative effect upon the value of the property. Therefore, it is assumed
that the property complies with all ADA requirements.
15. Any proposed improvements are assumed to be completed in a competent manner in
accordance with the submitted plans and specifications.
16. The distribution of any or the total valuation of this report between land and improvements
applies under the stated program of utilization. The separate allocations for land and buildings
must not be used in conjunction with any other appraisal and are invalid if so used.
17. Possession of this report or a copy thereof, does not carry with it the right of publication. It may
not be used for any purpose by any person other than the party to whom it is addressed without
the written consent of the appraisers, and in any event, only with the properly written
qualification and only in its entirety.
18. Neither all nor any part of the contents of this report (especially any conclusions as to value, the
identity of the appraisers, or the firm with which the appraisers are connected) shall be
disseminated to the public through advertising, public relations, news sales, or other media
without prior written consent and approval of the appraisers.
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Assumptions and Limiting Conditions
19. Prospective values are predicated upon stable market conditions unless otherwise stated. The
appraisers cannot be held responsible for unforeseeable events that may alter market conditions
prior to the effective date of the appraisal.
20. It is emphasized that the appraisers were not provided with an environmental/hazardous
materials study regarding the property. As a result, the appraisers do not know the
environmental condition of the property. It is assumed that hazardous or toxic materials do not
adversely affect the property. The value opinion is therefore predicated upon the assumption
that there are no such environmental conditions on or in the property that would cause a loss in
value. Further, we reserve the right to amend the value within the report, if such items
adversely affect the property. No responsibility is assumed for any such environmental
conditions or for any expertise or engineering knowledge required to discover them.
EXTRAORDINARY ASSUMPTIONS
There are no extraordinary assumptions for this appraisal.
HYPOTHETICAL CONDITIONS
There are no hypothetical conditions for this appraisal.
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CERTIFICATION OF VALUE
We certify that to the best of our knowledge and belief:
1.
The statements of fact contained in this appraisal report are true and correct.
2.
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and is our personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
3.
We have no present or prospective interest in the property that is the subject of this report,
and no personal interest with respect to the parties involved.
4.
We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
5.
Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6.
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.
7.
Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice.
8.
Matthew Lubawy, MAI has not inspected the property that is the subject of this report.
Andrew J. Johnson, MAI made a personal inspection of the subject property.
9.
No one provided significant real property appraisal assistance to the persons signing this
certification.
10.
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, which include the
Uniform Standards of Professional Appraisal Practice.
11.
The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
12.
As of the date of this report, Matthew Lubawy, MAI and Andrew J. Johnson, MAI have
completed the continuing education program of the Appraisal Institute.
13.
The appraisers’ state registration/certification has not been revoked, suspended, canceled or
restricted.
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Certification of Value
14.
The appraisers did not base, either partially or completely, his or her analysis and/or the
estimate of value on the race, color, religion, sex, handicap, familial status, health or national
origin of the present or prospective owners, occupants or users of the subject property or of
the present or prospective owners, occupants or users of the properties in the vicinity of the
subject property.
15.
The appraisers have not performed any prior services regarding the subject within the
previous three years of the appraisal date.
Matthew Lubawy, MAI
License Expires April 30, 2013
License Expires January 31, 2014
5
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
View looking north across the subject property from along S. Meadows Parkway
PROPERTY ADDRESS:
Along the North Side of South Meadows Parkway, East of
Double R Boulevard, Reno, Washoe County, Nevada, 89521
PROPERTY LOCATION:
Located on the north side of Meadows Parkway, east of
Double R Boulevard.
MAP LATITUDE/LONGITUDE:
39.439805701; -119.755783081
ASSESSOR’S PARCEL NUMBER:
163-200-04
CENSUS TRACT NUMBER:
22.06
PURPOSE OF APPRAISAL:
The purpose of the appraisal is to estimate the current
market value of the subject property.
CLIENT:
City of Reno
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Summary of Important Facts and Conclusions
INTENDED USERS:
City of Reno
INTENDED USE:
To assist City of Reno in asset management.
DATE OF VALUATION:
February 13, 2013
PROPERTY INSPECTION DATE:
February 12, 2013
DATE OF REPORT:
February 14, 2013
PROPERTY RIGHTS APPRAISED:
The fee simple estate
LAND SIZE:
The subject has a total land area of 1.00 acre or 43,566 square
feet, and the useable land area is also 1.00 net acre or 43,566
net square feet.
ZONING:
PUD, Planned Unit Development, under the jurisdiction of
the City of Reno.
CURRENT USE:
The property is currently vacant land.
HIGHEST AND BEST USE:
As Vacant Land:
MARKET VALUE
IDENTIFICATION
The highest and best use of the site is to hold until new
development becomes feasible, then develop with a smallscale commercial development.
PROPERTY
RIGHTS
APPRAISED
Fee Simple
EFFECTIVE DATE
OF VALUE
MARKET
VALUE
February 13, 2013
$700,000
According to the Treasurer's Office, there is no past or current tax amount owed as of the date of this
report.
EXPOSURE TIME:
The aforementioned opinion of market value has been predicated
upon an exposure time of 12 months. This is the length of time that
the property would have been exposed on the market to achieve the
opinion of market value. The exposure time is based upon
comparable sales within this report as well as discussions with real
estate brokers and developers.
MARKETING PERIOD:
The marketing period of the subject property has also been
estimated at 12 months. The marketing period is the length of time
that the property would need to be put on the market to achieve the
opinion of market value of the subject property. The marketing
period has been based upon comparable sales and takes into
consideration the future supply and similar property types in the
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Summary of Important Facts and Conclusions
subject’s market area. It also assumes prudent marketing and an
asking price (list price) similar to the market value opinion.
herewith are contingent upon the general assumptions and limiting conditions contained on pages 1
2 and 3 of this report.
herewith are based upon the following extraordinary assumptions and/or hypothetical conditions.
EXTRAORDINARY ASSUMPTIONS:
There are no extraordinary assumptions for this appraisal.
HYPOTHETICAL CONDITIONS:
There are no hypothetical conditions for this appraisal.
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INTRODUCTION
IDENTIFICATION OF THE PROPERTY
The subject property is located on the north side of Meadows Parkway, east of Double R Boulevard,
Reno, Washoe County, Nevada, 89521 and is identified as Washoe County Assessor’s Parcel
Number 163-200-04. The property is zoned PUD, Planned Unit Development, under the jurisdiction
of the City of Reno.
The subject has a total land area of 1.00 acre or 43,566 square feet, and the usable land area is also
1.00 net acres or 43,566 net square feet. The site is more thoroughly described in the “Site
Description and Analysis” section contained within this report.
CENSUS TRACT NUMBER
The subject property is located within Census Tract 22.06.
LEGAL DESCRIPTION
Based on information obtained from the Clark County Assessor’s office, the subject property is
legally described as follows:
Parcel C-3 of Parcel Map No. 2938 filed in the Office of the County Recorder of
Washoe County, Nevada on September 13, 1995 as File No. 1925144 of Official
Records.
PURPOSE OF APPRAISAL
The purpose of this appraisal report is to estimate the current market value of the subject property.
CLIENT
The client for this report is City of Reno.
INTENDED USER
The intended user of this report is City of Reno.
INTENDED USE OF THE APPRAISAL
The intended use of this appraisal report is to assist City of Reno in asset management.
EFFECTIVE DATE(S) OF VALUATION
The market value opinion is based on the date of February 13, 2013, the date the property was
inspected.
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Introduction
DATE OF APPRAISAL REPORT
The date of this appraisal is February 14, 2013. The comparable sales and market data were verified
prior to the date of this report.
USPAP COMPETENCY PROVISION
This appraisal report is being prepared with the intention of complying with the most recent version
of the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal
Foundation. We have the knowledge and the experience to complete this appraisal assignment. We
have appraised numerous land parcels in the Reno/Sparks Metropolitan Area, and we are qualified
to appraise the subject property. Please see our qualifications contained in the addenda of this
report for additional information.
PROPERTY RIGHTS APPRAISED
We have formed an opinion of fee simple interest of the market value of the subject property. The
fee simple ownership is defined as follows:
Fee Simple Ownership
“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.”
Source: The Dictionary of Real Estate Appraisal, Fifth Edition, (Chicago: Appraisal Institute, 2010)
Page 78.
DEFINITION OF MARKET VALUE
Market value is defined as:
“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 United States 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.”
Source: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57
Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994).
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Introduction
EXPOSURE TIME
One of the implicit conditions of market value is that a reasonable time is allowed for exposure in
the open market. This is always assumed to precede the effective date of the appraisal. Specifically,
exposure time is defined as:
“The estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market
value on the effective date of the appraisal; a retrospective opinion based on an
analysis of past events assuming a competitive and open market.”
Source: Statement 6, Uniform Standards of Professional Appraisal Practice, 2012-2013 Edition,
Appraisal Standards Board.
MARKETING TIME
Marketing time is defined as follows:
The reasonable marketing time is an opinion of the amount of time it might take to
sell a real or personal property interest at the concluded market value level during
the period immediately after the effective date of an appraisal.
Source: The Uniform Standards of Professional Appraisal Practice, 2012-2013, Advisory Opinion 7.
CURRENT OWNERSHIP/ OWNERSHIP HISTORY
According to Washoe County public records, the current owner of the subject property is the City of
Reno. The City of Reno acquired the subject via Grant, Bargain, and Sale Deed as evidenced by
Washoe County Recorded Document #4168781 on October 30, 2012. The grantor in the transaction
was South Meadows Limited Partnership. The property was transferred to the city as part of a
settlement with a developer, as the property was formerly planned for the construction of a fire
station. However, the fire station will now be constructed at another location. Other than the
October 2012 transfer, there have been no other sales or transfers of the subject property within the
past three years. The subject property is not currently listed or offered for sale.
SCOPE OF APPRAISAL
This is a Summary Report as defined by Uniform Standards of Professional Appraisal Practice
under Standards Rule 2-2(B). This format provides a summary of the appraisal process, subject and
market data valuation analyses. Supporting documentation concerning the data, reasoning, and
analyses are retained in the appraisers’ files. The depth of discussion contained in this report is
specific to the needs of the client and for the intended use stated below. The appraisers are not
responsible for unauthorized use of this report.
As part of this appraisal, the appraisers have made a number of independent investigations and
analyses. The investigations undertaken and the major data sources used are listed as follows:
Area/City and Neighborhood Analysis
Data pertaining to the metropolitan area and the subject neighborhood were provided by
publications such as the CBRE and Colliers quarterly research reports for the Reno area, and
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Introduction
information from the local Chamber of Commerce. Data pertaining to the labor force, employment
and unemployment was supplied by the State of Nevada Employment Security Department;
information pertaining to taxable sales was provided by the Nevada Department of Taxation; and
data pertaining to residential construction building permits was collected from the governing
jurisdictions. Additional neighborhood data was based upon a physical inspection of the area.
Site Description and Analysis
On February 12, 2013 the property was inspected by Andrew J. Johnson, MAI and photographs of
the property were taken as of this date. Matthew Lubawy, MAI has not inspected the property that
is the subject of this report. Information concerning utilities was collected by a physical inspection as
well as contacting the individual utility companies, when necessary. Information pertaining to
dimensions, shape, and area was taken from the Washoe County Assessor’s Map. The description of
analysis of topography, drainage, soils conditions and surrounding land uses was based upon a
physical inspection. It is imperative to note that the appraisers are not experts in the analysis of soils
conditions or environmental hazards; therefore, any comment by the appraisers that might suggest
the presence of such substances should not be taken as confirmation of the presence of hazardous
waste or questionable soils conditions. Such determination would require investigation by qualified
professionals in the field of environmental assessment or soils testing. No responsibility is assumed
for any environmental conditions or for any expertise or engineering knowledge required to
discover them. The appraisers’ descriptions and resulting comments are a result of routine
observations made during the appraisal process.
Applied Methods of Valuation
Of the three traditional approaches to value, the cost approach, income capitalization approach, and
sales comparison approach, only the sales comparison approach for land valuation was used in the
valuation of the subject property. Please see the section entitled “Method of Valuation,” contained
later in the report, for a full description of the complete process for the approach performed.
Market Data Collection and Verification
Land sales data was collected through various sources including CoStar, Property Line, LoopNet,
Washoe County records, and from brokers, owners, and developers. The information was verified
with one or more of the parties involved in the transaction including the grantor, grantee, broker, or
other knowledgeable parties, when possible. Verification of each sale is listed separately on each
land sale abstract contained later in the report.
12
AREA / CITY DESCRIPTION AND ANALYSIS
INTRODUCTION
The cities of Reno and Sparks are located in what is known as the Truckee Meadows region in the
northwestern portion of the State of Nevada. The Reno-Sparks Metropolitan Statistical Area (MSA)
consists of Washoe County, which includes the cities of Reno and Sparks. The City of Reno is the
county seat of Washoe County. Reno is the third largest city in the state behind Las Vegas and
Henderson.
Reno-Sparks is located at the base of the Sierra Nevada Mountains along the shores of the Truckee
River. The two cities are situated in a scenic valley known as Truckee Meadows in the northwestern
portion of Nevada. Reno-Sparks lies 45 miles northwest of Lake Tahoe, 450 miles northwest of Las
Vegas, 135 miles northeast of Sacramento, California, 231 miles northeast of San Francisco, 504 miles
north of Los Angeles, 423 miles southwest of Boise, Idaho, and 568 miles southeast of Portland,
Oregon.
The economic vitality of the surrounding area, and the immediate neighborhood encompassing the
subject property, is an important consideration in estimating future real estate demand and income
potential. A detailed demographic analysis of Reno and Washoe County was conducted using
information provided by Nielsen, a recognized industry source, as well as various State of Nevada
websites. Information supplied includes historical and projected population, employment and
income data.
REGIONAL ECONOMIC OVERVIEW
The near-term economic outlook for the state and the Reno region is best described as optimistic.
Over the past few years the area has faced negative job growth, continued housing value declines, a
major credit crunch, stressed financial markets, volatile oil/gas prices, declining consumer
confidence, and increasing government budget deficits. Many of the same problems still exist;
however, the current data suggest that the bottom of the market may have been reached or is near
and the projections for the remainder of 2012 and into 2013 are for stabilization and possible minor
improvement of the overall economy.
GEOGRAPHIC SETTING
The Reno-Sparks area sits at an elevation of 4,400 feet above sea level, at the eastern base of the
foothills of the Sierra Nevada mountain range. This mountain range forms the natural border
between Nevada and California. Land to the west of the Reno-Sparks area rises at an increasing rate,
as foothills quickly become the eastern slopes of the Sierra Nevada. The land to the east of the
metropolitan area gradually flattens out into basin and range topography for 200 miles.
The nearby Sierra Nevada, and especially the Lake Tahoe area, provides recreation opportunities for
the area. The Lake Tahoe region located only 45 miles to the southwest is considered one of the most
scenic areas in the United States and draws tourists from all over the globe. The Tahoe area offers
skiing, hiking, fishing and other water sports, and casino gambling. Also, Pyramid Lake is located
13
File #2013-022
Area/City Description and Analysis
less than 30 minutes north of Reno-Sparks by automobile and offers some of the best fishing in the
area.
The Reno/Lake Tahoe area offers the highest concentration of ski resorts in the country, all within
90 minutes of Reno-Sparks. There are 16 alpine and nine cross-country ski resorts, with an average
snowfall of 25 feet per season. During the winter months, skiing enthusiasts come from all over the
United States to enjoy northern Nevada's unique blend of daytime skiing and nighttime gaming at
Lake Tahoe and the surrounding areas. Here and at other smaller resorts located throughout the
valleys, skiers can pursue both downhill and cross-country skiing. During the summer months
hiking enthusiasts, hunters and campers enjoy the mountains and national forests in this area. Lake
Tahoe is also used for fishing and other water sports. Pyramid Lake and the Truckee River -- along
with several nearby lakes -- are also popular fishing locations.
TOURISM/CASINOS
Historically, the Reno-Sparks regional economy was based predominantly on the tourism spurred
by local gaming. The strength of the gaming industry was one of the chief reasons that Nevada
weathered the last national recession relatively well. Only recently has the reliance on tourism
caused concern about the lack of diversification in the job base.
Overall, in the short term, the gaming profits have decreased from previous years. The decreases are
primarily attributed to the decline of the national economy and erosion of disposable incomes. Long
term predictions suggest that as the economy stabilizes and employment increases, visitor volume is
expected to begin to increase over the next 1-2 years. Overall, the gaming/tourism industry has a
significant impact on the local economy.
CLIMATE
The area’s semi-arid climate is generally favorable, and winters are characterized as moderate with
January temperatures between 18° F to 46° F and July temperatures 47° F to 92° F. The area
experiences about 306 days of sunshine per year, annual precipitation is just over 5” per year, and
annual snowfall is about 32” per year. The foothill and mountain regions experience much heavier
snowfall.
TOPOGRAPHY
The geographical characteristics are regarded as one of area’s most notable attributes. The area
contains many different types of terrain from level valley land in downtown Reno and Sparks to
foothills and mountainous terrain in Virginia City, the Sierras, and Lake Tahoe. The majority of the
valley is about 4,500-foot elevation; while, the mountainous region to the west rises to over 10,000
feet above sea level.
The region is bisected by the Truckee River, which runs from Lake Tahoe, through downtown Reno
and through Sparks out to Pyramid Lake. As a result of this river, flooding has been a problem.
Most of the flood prone areas are in downtown Reno, and the industrial district of Sparks.
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File #2013-022
The soils in the area are basically alluvial, being composed of sands and sandy loam, which eroded
from granite bedrock as well as from volcanic rock overlays. Most of the soils include some clay
that expand when wet and shrink when dry. As a result, most properties in the area require some
over excavation to remove these clays.
The region is geologically active and several earthquake faults have been identified within the area
including a band of faults extending in a north-south direction through Reno and Sparks. As a
result of these faults, the area is identified as a Seismic Risk Zone 3, which identifies areas of
potential for an earthquake up to 6.5 on the Richter Scale. Both cities and the county have adopted
special construction considerations and building materials into the general plan.
TRANSPORTATION
Reno/Sparks’ central location to California and its transportation system contributed to the region’s
desirability as a place for business and living. The region benefits from the interstate highway
system, rail system, and air transportation.
Interstate 80 is an east/west highway connecting the Reno/Sparks region with Sacramento and San
Francisco, California to the west, and Utah to the east. Interstate 80 is a major trucking route
extending from coast to coast. U.S. Highway 395 is a north/south highway connecting the
Reno/Sparks region to Southern California to the south and California, Oregon, and Washington to
the north. These highways intersect each other just northeast of the Reno CBD.
Several railroads provide freight and passenger service to the area, including Southern Pacific and
Amtrak. Due to increased usage of the rail services, the community is in the process of lowering the
tracks below ground level to reduce traffic congestion in the downtown district.
The main airport for the area is the Reno-Tahoe Airport, located at the terminus of Plumb Lane, just
east of US Highway 395. The airport has experienced slow growth due to a decrease in the demand
by passengers over the last few years, and a reduction in scheduled flights as several airlines have
merged operations.
UTILITIES
NV Energy supplies electricity and natural gas, while water is provided to the area by TMWA. Most
areas have sufficient capacity to provide necessary utilities. Reno Disposal Co. provides solid waste
and recycling services and AT&T is the primary telephone service provider.
LINKAGES
All of the environmental attributes form together to provide linkages that can attract or detract
development from areas. These relationships form over time and create different real estate supply
and demand characteristics. Historically, Reno/Sparks grew in a concentric structure, from the
center of the cities. As casinos heavily influenced the central area, the retail, office, and residential
uses moved towards the suburban markets following the growth of the freeway and highway
expansion. Today, the land uses reflect a Radial-Corridor structure, where there is a high
percentage of industrial development in Sparks along the rail and freeways. Those neighboring
15
File #2013-022
residential districts are primarily blue-collar low income. Southwest Reno is moderate to upper
income in the lower level land to upper income in the foothills. The newest retail and office
development is occurring in the high growth south Reno market. The north and northwest has
primarily developed with low to moderate-income neighborhoods.
With the continued
development in south Reno with the newer office and retail buildings, that area has captured a large
share of the new growth.
SOCIAL FORCES
Social characteristics pertaining to an area are primarily based on population, density, trends,
demographics, and quality of life. Real estate improvements are provided in response to the
demand generated by a population with effective purchasing power. Population growth or decline,
household size, income, educational levels, and age all affect and contribute to the structure of
demand for real estate. Further, demand of a given population for goods and services will affect the
type and value of real estate needed. An analysis of population, employment, and income trends for
the Reno MSA and the State of Nevada is performed using data provided by Nielsen, a recognized
source.
POPULATION
Historical and projected population trends for the Reno/Sparks MSA are charted below:
POPULATION TRENDS
600
500
400
300
200
100
0
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
Population (1,000's)
Reno/Sparks MSA
Year
The population of the Reno/Sparks MSA increased at a compounded annual rate of 2.47% from
2000 to 2009. For the same time period, the State of Nevada grew at a compounded annual rate of
approximately 3.59%. Looking ahead, both the Reno/Sparks MSA and the State of Nevada are
anticipated to experience continued growth, with future population estimates reflecting growth
rates much slower than those experienced in the past. For the period 2010 to 2015, the population of
the Reno/Sparks MSA is expected to increase by an average annual compound rate of 1.74%.
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File #2013-022
RENO/SPARKS POPULATION
SOURCE: NIELSEN
EMPLOYMENT
The following chart illustrates the historical unemployment rates for Washoe County, Nevada, and
the United States.
Historical Unemployment Rate (%)
Period
Washoe
County
Nevada
2nd Quarter, 2012
1st Quarter, 2012
4th Quarter, 2011
3rd Quarter, 2011
2nd Quarter, 2011
1st Quarter, 2011
4th Quarter, 2010
3rd Quarter, 2010
2nd Quarter, 2010
1st Quarter, 2010
4th Quarter, 2009
3rd Quarter, 2009
2nd Quarter, 2009
1st Quarter, 2009
11.50%
13.00%
11.60%
13.00%
11.70%
13.20%
13.20%
13.30%
13.30%
13.20%
11.30%
12.20%
11.00%
11.20%
11.60%
7.90%
12.70%
8.70%
13.00%
8.60%
13.40%
9.10%
12.10%
9.10%
13.60%
9.50%
14.30%
9.30%
14.40%
9.60%
14.00%
9.50%
13.40% 10.20%
12.30% N/Avail.
12.70% N/Avail.
11.30%
9.40%
10.40% N/Avail.
United
States
17
File #2013-022
CONCLUSION
As previously described, the economic outlook for the state and the Reno region is best described as
optimistic. Over the past few years the area has faced negative job growth, continued housing value
declines, a major credit crunch, stressed financial markets, volatile oil/gas prices, declining
consumer confidence, and increasing government budget deficits. Many of the same problems still
exist; however, the current data suggest that the bottom of the market may have been reached or is
near and the projections for 2013 are for stabilization and possible minor improvement of the overall
economy.
Despite the current economic conditions, the longer term outlook for the region is still encouraging
due to strong fundamentals. The area has many positive attributes that will work to ensure longterm growth and prosperity to the area -- good accessibility by major roadways, good infrastructure,
an educated work force, expanding population, strong higher education institutions, a good climate
and easy access to major recreational area. In addition, the economic base of the city is diversifying
and becoming less susceptible to downturns in particular sectors of the economy. The Reno-Sparks
metropolitan area is restructuring from an economy based primarily on tourism and gambling to an
economy more evenly balanced with stronger employment in the business, manufacturing and trade
sectors. These long-term strengths have often been recognized nationally and continue to draw new
business from other parts of the country.
18
MARKET AREA/NEIGHBORHOOD DESCRIPTION AND ANALYSIS
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File #2013-022
Market Area/Neighborhood Description and Analysis
MARKET AREA/NEIGHBORHOOD BOUNDARIES
As defined by the Appraisal Institute in the 13th edition of The Appraisal of Real Estate, a
neighborhood is
“A group of complementary land uses; a related grouping of inhabitants, buildings,
or business enterprises.”
In a neighborhood, the operation of social, economic, government, and environmental forces
generally influence property values in the same way. The neighborhood may consist of a mixture of
uses (termed a neighborhood), or one of similar uses (termed a district).
A market area is the area in which the subject property competes for the attentions of buyers and
sellers in the real estate market. A market area can encompass one or more neighborhoods and/or
districts.
For this report, the market area/neighborhood is defined as that area which is bound by S.
McCarran Boulevard to the north, undeveloped land to the east, Mt Rose Highway/Geiger Grade
Road to the south, and US 395 on the west. A map delineating the market area/neighborhood is
shown on the preceding page.
MARKET AREA/NEIGHBORHOOD DESCRIPTION
The subject is specifically located along the north side of South Meadows Parkway, east of Double R
Boulevard in the southeastern portion of the Reno/Sparks MSA. South Meadows Parkway is built
up with multifamily, and medium-density single-family uses. Commercial uses exist to the west of
the subject at the corner of Double R Boulevard and S. Meadows Parkway. The subject borders an
apartment complex to the north and east and is located across Meadows Parkway from an
apartment complex (directly to the south). The subject’s neighborhood is overall about 75% built
up, with properties mostly being under 10 years in age.
The area has good access to and from the rest of the MSA, with Highway 395 running in a northsouth direction through the submarket less than ½ mile to the west of the subject property.
Highway 395 has exits at S. McCarran Boulevard, Neil Road, S. Virginia Street, S. Meadows
Parkway, and Damonte Ranch Parkway in the submarket.
TRANSPORTATION
The neighborhood is located in the southern portion of the Reno/Sparks MSA. It is considered to
have good accessibility to all sections of the MSA. The main east/west thoroughfares that provide
access to the area are S. McCarran Boulevard, Neil Road, W. Huffaker Lane, S. Meadows Parkway,
and Damonte Ranch Parkway. The main north/south thoroughfares that provide access include
Highway 395, Double R Boulevard, and Double Diamond Parkway.
PROPERTY TAXES
Taxes for the subject neighborhood appear sufficient to provide adequate public services. Therefore,
the taxes are anticipated to increase at similar rates as those throughout the Reno/Sparks MSA.
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File #2013-022
Market Area/Neighborhood Description and Analysis
UTILITIES/SERVICES
Public utility services are available throughout the neighborhood. Electricity is supplied by NV
Energy; water is supplied by the Truckee Meadow Water Authority; sanitation service is provided
by the City of Reno Sewer Service; telephone service is provided by AT & T; natural gas is supplied
by NV Energy; and solid waste disposal is supplied by Reno Disposal Co. Utility services appear to
be at adequate capacity for the neighborhood.
EXTERNAL INFLUENCES
There are no negative external influences impacting the subject property.
RETAIL AND OFFICE MARKET ANALYSIS
According to CBRE’s 4th Quarter, 2012 retail market report for the Reno/Sparks MSA, the overall
vacancy rate fell to 16.2%, with net absorption increasing to 71,433 square feet. The average asking
lease rate fell to $1.26 per square foot (monthly), under triple net terms. Completed construction
also rose to 24,837 square feet in the 4th Quarter.
According to CBRE’s 4th Quarter, 2012 office market report for the Reno/Sparks MSA, the overall
vacancy rate fell slightly to 20.9%, with net absorption increasing to 11,015 square feet. The average
asking lease rate fell to $1.45 per square foot (monthly), under full service gross terms. There was no
new construction in the 4th Quarter.
Overall, the retail and office markets have been improved slightly, but remain oversupplied. Some
users are finding new development to be feasible on a build-to-suit basis.
MARKET AREA CONCLUSION
Based upon the rental rates being achieved and the general appearance of the properties in the
subject’s neighborhood, the subject’s location is considered to be a good location relative to most
areas within the Reno-Sparks MSA. The submarket is expected to remain a desirable location into
the foreseeable future.
21
SITE DESCRIPTION AND ANALYSIS
The subject is located on the north side of Meadows Parkway, east of Double R Boulevard, Reno,
Washoe County, Nevada, 89521. The subject is further identified as Washoe County Assessor’s
Parcel Number 163-200-04 and is zoned PUD, Planned Unit Development, under the jurisdiction of
the City of Reno within Census Tract Number 22.06.
Information pertaining to the full parcel dimensions, shape, and area were taken from Washoe
County Records. The site is roughly square, which is considered consistent with the other sites in the
area. The land equates to approximately 1.00 net acre or 43,566 square feet.
The subject has level topography with the majority of the site being 4' to 5' above S. Meadows
Parkway. The topography was mostly level and consistent in grade and was not indicated to be
problematic for future development. The site is typical of other sites in the area and there were no
adverse site conditions noted at the time of inspection.
Access to the subject is provided by way of Meadows Parkway, which is fully improved as a
primary north/south traffic arterial with three lanes in each direction. Meadows Parkway is fully
improved with asphalt-paving, curbs, gutters, sidewalks, and streetlights. Meadows Parkway has a
freeway interchange with U.S. 395 less than ½ mile to the west of the subject property. The subject
also has access from an unnamed road along its western boundary that provides access to the
adjacent apartment community. This access road is fully improved with asphalt paving, curbs,
gutters, and sidewalks.
The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 have
made the purchase of flood insurance mandatory for federally backed mortgages on structures
located in special flood hazard areas. According to the Federal Emergency Management Agency
(FEMA) Flood Insurance Rate Map (FIRM) for the area dated March 16, 2009, Community Panel No.
32031C3234G, the subject is located in Zone X which is not a flood hazard area. The subject is
outside the 0.2% annual chance flood plain. The FEMA Flood Insurance Rate Map is included in the
addenda of this report for reference.
We were not provided with a copy of an environmental/hazardous materials study regarding the
subject. As a result, we do not know the environmental condition of the subject. The value opinion is
therefore predicated upon the assumption that there are no such environmental conditions on or in
the subject that would cause a loss in value. Further, we reserve the right to amend the values within
the report if such items adversely affect the subject.
We were not provided with a title report that would disclose any encroachments or easements that
may adversely affect the subject. Since no information regarding these items was furnished to us, it
is assumed that only typical utility easements exist and that there are no adverse encroachments.
Based on the physical inspection, no noted adverse easements or encroachments are considered to
exist.
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File #2013-022
SITE DESCRIPTION SUMMARY
Location:
Current Use of the
Property:
The site is located on the north side of Meadows Parkway, east of
Double R Boulevard.
The property is currently vacant land.
Site Size:
The subject has a total land area of 1.00 acre or 43,566 square feet, and
the usable land area is also 1.00 net acre or 43,566 net square feet.
Shape:
The site is roughly square.
Frontage/Access:
The subject property has average access with frontage as follows:

Meadows Parkway: 209 feet

Unnamed access road: 209 feet
The site has an average depth of 209 feet. It is a corner lot.
Visibility:
The visibility is rated average.
Topography:
The subject has level topography with the majority of the site being 4'
to 5' above S. Meadows Parkway. The topography was mostly level
and consistent in grade and was not indicated to be problematic for
future development.
Soil Conditions:
The soil conditions observed at the subject appear to be typical of the
region and adequate to support development.
Utilities:
Electricity:
Electricity is available to the site and is provided
by NV Energy.
Sewer:
Sewer is available to the site and is provided by
City of Reno Sewer Service.
Water:
Water is available to the site and is provided by
Truckee Meadows Water Authority.
Natural Gas:
Natural gas is available to the site and is provided
by NV Energy.
Underground Util.: The site is serviced by underground utilities.
Site Improvements:
Adequacy:
The subject's utilities are typical and adequate for
the market area.
Street Lights:
Yes / Incandescent
Sidewalk:
Yes / Concrete
Curbs/Gutters:
Yes / Concrete
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File #2013-022
Landscaping:
Flood Zone:
The subject is landscaped along S. Meadows
Parkway. The landscaping includes trees, bushes,
shrubs, and grass.
The subject is located in an area mapped by the Federal Emergency
Management Agency (FEMA). The subject is located in FEMA flood
zone X, which is not classified as a flood hazard area.
FEMA Map Number: 32031C3234G
FEMA Map Date: March 16, 2009
The subject is outside the 0.2% annual chance flood plain.
Wetlands/Watershed:
No wetlands were observed during our site inspection.
Earthquake Zone:
The subject is not in an earthquake zone.
Environmental Issues:
There are no known adverse environmental conditions on the subject
site. Please reference Limiting Conditions and Assumptions.
Encumbrance/Easements:
There are no known adverse encumbrances or easements. Please
reference Limiting Conditions and Assumptions.
Site Comments:
The site has average and typical utility and is suitable for a small
commercial use.
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File #2013-022
CLARK COUNTY ASSESSOR’S PARCEL MAP
SUBJECT
SUBJECT
25
File #2013-022
AERIAL PHOTOGRAPHS
SUBJECT
SUBJECT
SOURCE: WASHOE COUNTY
26
File #2013-022
ZONING
The subject property is zoned PUD, Planned Unit Development, under the jurisdiction of the City of
Reno. The subject zoning was changed from MF21 (Multifamily) to PUD (Planned Unit
Development) on February 13, 2013 through Ordinance 6256. The subject site (1 acre) was added to
Planning Unit L of the South Meadows Phase III PUD.
The PUD Planned Unit Development district is identified in Chapter 18.08 of the Reno, Nevada
Land Development Code. The purpose of the PUD Planned Unit Development District is to
encourage flexibility in the development of land to promote the most appropriate and compatible
uses; improve the design, character, and quality of new development; facilitate the adequate and
economical provision of streets and utilities; and preserves the natural and scenic features in the
community. More specifically, the purpose of this district is to encourage flexibility in the
development of land in Reno, to promote its most appropriate and compatible use, to improve the
design, character, and quality of new development, to facilitate the adequate and economical
provision of streets and utilities, and to preserve the natural and scenic features of open areas in the
community. Details of this zoning designation are summarized below:
Permitted Uses:
A planned unit development may include any uses permitted
in any zone classification provided that any combination of
uses is planned in a manner compatible to each and to the
surrounding environment subject to the approval of the city
council.
Minimum Size:
A planned unit development shall contain a minimum of ten
contiguous acres of land unless proper justification for a
smaller size is made to the justification of the administrator.
The subject is within the South Meadows Phase III PUD,
comprising a total of 669 acres.
Site Coverage:
Determined by setback requirements.
Site/Bldg Standards: PUD’s must be located within the city limits. Lot size, lot
coverage, street width, height and distance between buildings
shall meet health, safety, and welfare requirements and reflect
good planning practices subject to the approval of city council.
Unless otherwise specified, all requirements and standards
pertaining to sewage, landscaping, and road profiles shall be as
provided in Chapters 18.10, 18.12, and 18.14. All requirements
and standards pertaining to streets, drainage, alleys, sidewalks,
curb and gutters, driveways and curb cuts, water and fire
hydrants, underground utility services, water supply ditches,
erosion control and street lighting shall be as approved by the
city council.
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File #2013-022
CONCLUSION
Within the South Meadows Phase III PUD, the subject falls within Planning Unit ‘L’. All uses within
Planning Unit ‘L’ are permitted either outright or with a special use permit in the following districts:
Neighborhood Commercial (NC), Arterial Commercial (AC), and Community Commercial (CC),
except for the following uses: motels with 300 or fewer rooms and interior access and business
hotels with 300 or fewer rooms and a maximum height of 75’. Therefore, the potentially legally
permitted uses for the subject include a wide variety of commercial-oriented developments.
The subject’s physical characteristics are conducive to a small scale use that would be permitted
under the current zoning. The site has physical characteristics that would allow a small commercial
development. The parcel may be developed with several commercial oriented uses under the
current zoning. There are no apparent physical environmental influences or characteristics that
adversely affect the property’s utility or uses. In summary, the physical features of the site are
suitable for a small scale use that would be allowed under the current zoning.
28
ASSESSED VALUE AND PROPERTY TAXES
CALCULATION OF TAXES
Property taxes are based upon an appraisal of the property performed by the Washoe County
Assessor’s Office. An appraisal is conducted at least once every five years on properties located
within Washoe County and the values are updated each year by an index computed by the State of
Nevada Department of Taxation.
According to personnel at the Assessor’s Office, properties are appraised for taxable value based
upon the cost approach. This approach to value is performed by estimating the replacement cost
new of a property less depreciation of 1.5% per year of effective age, up to a maximum of 75%. State
Statute 361.227 indicates that the taxable value of the property must not exceed the current market
value. Since the cost approach in some instances may provide an indication higher than current
market value, the sales comparison approach and/or income capitalization approach may be used
to establish the taxable value of the property. Property taxes are calculated by multiplying 35% of
the taxable value by the tax rate.
TAX RATES
The subject is located in Tax District Number 1015, which has a current tax rate of $3.6600 per
$100.00 of assessed value for the 2012/2013 tax year. The fiscal year starts July 1st and ends on June
30th of every year.
HISTORICAL TAX RATES
TAX YEAR
TAX RATE
2012/13
$3.6600
2011/12
$3.6458
The tax rate increased steadily for the past three years. Please note that property tax increases were
capped by Nevada Legislature Assembly Bill 489, which was passed on April 6, 2005. The tax
increase caps are 3% per year for a primary residence and 8% per year on all other properties
The real property taxes for the subject are as follows:
29
File #2013-022
Assessed Value and Property Taxes
REAL ESTATE ASSESSMENT AND TAXES (2012/2013 TAX YEAR)
Taxing Authority
Assessment Year
Washoe County
2012-13
Tax Identification Number
Land Assessed Value
Building Assessed Value
Other Property Assessed Value
Total Assessed Value
Total Tax
163-200-04
$150,935
$0
$0
$150,935
$5,524
Rates, Taxes, More
Tax Rate
Total Tax Amount
Property Tax Comments
$3.6600 per $100
$5,524
According to the Treasurer's Office, there is no past or
current tax amount owed as of the date of this report.
The subject property is government-owned and will not
be subject to property taxes. The preceding tax amount
is the estimate of taxes if the property was privatelyowned.
30
HIGHEST AND BEST USE
HIGHEST AND BEST USE
Highest and best use is defined as:
“The reasonably probable and legal use of vacant land or an improved property that
is physically possible, appropriately supported, financially feasible, and that results
in the highest value. The four criteria the highest and best use must meet are legal
permissibility, physical possibility, financial feasibility, and maximum productivity.
Alternatively, the probable use of land or improved property-specific with respect to
the user and timing of the use-that is adequately supported and results in the highest
present value.”
Page 93.
The highest and best use of a property is an economic study focusing on the four criteria. The
determination of a property’s highest and best use is the basis that provides the valuation
framework upon which comparable market date is selected. Such data includes cost, income and
expense data, and improved sales pertaining to the property’s concluded best use.
Highest and best use of the property as though vacant is considered separately from the highest and
best use of the property as improved. The site is valued as though vacant and available for
development to its highest and best use even if the property’s existing improvements do not
represent the highest and best use of the site. Highest and best use of the land as though vacant
indicates only how the land should be used if it were vacant. The following is an analysis of highest
and best use of the land as though vacant and as improved.
HIGHEST AND BEST USE AS THOUGH VACANT
Highest and best use of land or site as though vacant is defined as:
“Among all reasonable, alternative uses, the use that yields the highest present land
value, after payments are made for labor, capital, and coordination. The use of a
property based on the assumption that the parcel of land is vacant or can be made
vacant by demolishing any improvements.”
Page 93.
Legally Permissible
As shown in the zoning section of this report, the subject parcel is zoned PUD, Planned Unit
Development, under the jurisdiction of the City of Reno. The subject was previously zoned MF21
(Multifamily), but the zoning was changed to PUD on February 13, 2013 through Ordinance 6256
where the subject parcel was added to Planning Unit L of the South Meadows Phase III PUD.
According to the PUD zoning and permitted uses for Planning Unit L, principally permitted uses
31
File #2013-022
Highest and Best Use
include all uses permitted in the Neighborhood Commercial (NC), Arterial Commercial (AC), and
Community Commercial (CC) districts. This includes a wide variety of commercial-oriented uses.
The subject is zoned similar to other properties in the area and is consistent with the nature of the
neighborhood. The possibility of rezoning is not probable based upon the zoning of other parcels in
the immediate area. In summary, the legally permissible uses of the site would be for a small
commercial-oriented use. The subject was formerly planned for the construction of a fire station.
However, according to the client, the fire station will now be constructed at another location.
Physically Possible
The site is located within an area that is predominantly built up with multifamily and medium
density residential uses to the north and south-southeast, with commercial development noted to
the west of the subject at the corner of Double R Boulevard and S. Meadows Parkway. Physical
characteristics of the site that affect its possible use include but are not limited to its location, street
frontage, size, shape, street access, availability of utilities, easements and encroachments, soils and
subsoils, and topography.
Based on a physical inspection, the subject appears to be in an area that has fairly stable soils and
subsoils with regard to support for typical structures. The soil and subsoil conditions are assumed
to be typical of the area and do not present limitations or problems.
The site is basically level and the majority is about 4’ to 5’ above grade to Meadows Parkway. The
site has a level and consistent topography that is not indicated to be problematic for future
development. The site is not located within a designated flood zone and, therefore, would not
require mandatory flood insurance.
The site size is relatively small compared with surrounding parcels, at one acre. The relatively small
size of the site would limit the number of potential uses that could be developed on the site. The site
is large enough to accommodate a small commercial development such as a build-to-suit retail or
office facility. In summary, the physical characteristics of the site could be adaptable to a small
commercial use which would conform to the current zoning.
Financially Feasible
According to the CBRE retail space report for the Reno/Sparks MSA (4th Quarter, 2012), the overall
retail market has a 16.2% vacancy, indicating oversupply. The 4th Quarter office space report
indicated an overall 20.9% office vacancy, also indicating oversupply. It is most financially feasible
to hold the site until new development becomes feasible, then to develop with a commercial use.
Some buyers might, however, find a use to be financially feasible on a build-to-suit basis.
Maximally Productive
Due the lack of demand for new development, the maximally productive use of the site is to hold it
until an economic recovery occurs. At that time, constructing the site with a commercial use would
be most productive. Some buyers might, however, find a use to be financially feasible on a build-tosuit basis.
32
File #2013-022
Highest and Best Use
Conclusion
In conclusion, the highest and best use of the subject site, as though vacant, is to hold the site until
new development becomes feasible, then to develop with a commercial use. Some buyers might,
however, find a use to be financially feasible on a build-to-suit basis. The most probable buyer at
this time would be a land speculator or a buyer for a build-to-suit development.
33
METHOD OF VALUATION
The valuation process is the method in which the data used to form an opinion of the value of the
subject property are acquired, analyzed, and presented. This data is typically applied within the
traditional three approaches to value, which are the cost approach, the income capitalization
approach, and the sales comparison approach. In appraisal practice, one or more approaches may
not be appropriate to the property being appraised depending upon the quality, quantity, and
reliability of the data. Only the sales comparison approach for valuing the vacant land has been
Sales Comparison Approach - This approach involves verifying data of sales, listings, and offerings
of properties comparable to the subject. The data has been separated into measurable units of
comparison (i.e., price per square foot, price per acre, or price per unit). The price per square foot
method involves adjusting the price per square foot of the comparable sales for differences between
them and the subject. The final adjusted price per square foot is then applied to the subject’s land
area to provide an indication of market value. This approach produces a good indication of value
when sales of similar properties are available.
34
LAND VALUATION
The sales comparison approach is the most common technique for valuing vacant land. To apply
this method, sales of vacant land comparable to the subject property are gathered and analyzed. The
sale prices are adjusted for dissimilarities identified between each of the comparables and the
subject. Elements considered include property rights, legal encumbrances, financing terms,
conditions of sale (motivation), market conditions (sale date), location, physical characteristics,
available utilities, zoning, and highest and best use. The adjusted prices are analyzed on a price per
square foot comparison. The appraisers analyze this information and derive the unit value
applicable to the subject property that is multiplied by the land area to arrive at an opinion of the
market value of the site.
The sales used in the valuation are considered the most comparable to the subject as of the date of
valuation. Specifically, we have identified and analyzed five sales in the subject area. The following
pages display the location, details, property characteristics, and a discussion of the comparability of
each sale followed by an adjustment grid.
LAND SALES SUMMARY
Comparable
Subject
1
Location
Date
NS Meadows Pkwy, E of 2/12/13
Double R Blvd
SS Los Altos Pkwy, E. 3/25/11
of Galleria Dr
Price
Land Area Net Acres Land Area Net SF
Price Per Net SF
1.00
43,566
$465,408
1.08
47,045
$9.89
2
WS S. Virginia St, S. of
Longley Ln
4/14/11
$700,000
0.66
28,680
$24.41
3
NEC Oddie Blvd & Mall
Dr
8/17/11
$175,000
0.46
20,038
$8.73
4
SEC Virginia St & S.
Meadows Marketplace
Dr
9/19/11
$650,000
0.71
30,843
$21.07
5
SWC Sharlands Ave &
Robb Dr
5/14/12
$500,000
0.87
37,991
$13.16
6
SS Ridge St, E. of Flint
St
9/13/12
$150,000
0.26
11,244
$13.34
35
File #2013-022
Land Valuation
LAND SALES MAP
36
File #2013-022
Land Valuation
LAND SALE 1
Location:
County:
Assessor’s Parcel No.:
Physical Data
Land Area Net Acres:
Land Area Net SF:
Topography:
Shape:
Corner:
Utilities:
Off-site Costs:
Flood Plain:
Encumbrance/
Adverse Easements:
Zoning:
Proposed Use:
581 Los Altos Parkway
Sparks, NV
Washoe
510-491-09
1.08 net acres
47,045 net square feet
Level
Rectangular
No
All Available
$0
N/A
None
NUD, Sparks, New Urban
Development
Retail
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No.:
Sale Price
Financing:
Cash Eq. Price:
Expenses after Purchase:
Sold
March 25, 2011
N/Av
Rialto, LLC
Spanish Springs Oil,
LLC
3986479
$465,408
Cash or Equivalency
$465,408
$0
Price per Net Acre:
Price per Net SF of Land:
$430,933
$9.89
Confirmed With:
Confirmation Tel No.:
Confirmed By:
Costar & Public Records
N/A
Andrew J. Johnson
Comments:
This was the sale of a 1.08-acre parcel located along the south side of Los Altos Parkway, east of Galleria Drive
in the Sparks Galleria Commercial planned development area. All utilities were available to the site. The site
had some improvements including paved access, curbs, and landscaping along Los Altos Parkway. The site
was purchased for the development of a Jiffy Lube oil change facility.
37
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Land Valuation
LAND SALE 1
AERIAL AND ASSESSOR’S PLAT
38
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Land Valuation
LAND SALE 2
Location:
County:
Physical Data
Land Area Net SF:
Topography:
Shape:
Corner:
Utilities:
Off-site Costs:
Flood Plain:
Encumbrance/
Adverse Easements:
Zoning:
Proposed Use:
WS S. Virginia St, S. of
Longley Ln
Reno, NV
Washoe
043-030-31
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Document No.:
Sale Price
Financing:
Cash Eq. Price:
Sold
April 14, 2011
N/Av
Nevada (S Virginia
Ave), LLC
AutoZone
Development
Corporation
3993596
$700,000
Cash or Equivalency
$700,000
$0
Price per Net Acre:
$1,063,183
$24.41
Grantee:
0.66 net acres
Level
Mostly Rectangular
No
All Available
$0
N/A
None
MUSV, Reno, MixedUse/South Virginia Street
TOD Corridor Plan
Retail
Confirmed With:
Confirmed By:
Costar & Public Records
N/A
Andrew J. Johnson
Comments:
This was the sale of a 0.66-acre parcel located along the west side of S. Virginia Street, south of Longley Lane
in the south Reno area. All utilities were available to the site. The site was purchased for the development of
an AutoZone retail store.
39
File #2013-022
Land Valuation
LAND SALE 2
40
File #2013-022
Land Valuation
LAND SALE 3
Location:
County:
Physical Data
Land Area Net SF:
Topography:
Shape:
Corner:
Utilities:
Off-site Costs:
Flood Plain:
Encumbrance/
Adverse Easements:
Zoning:
Proposed Use:
2400 Oddie Boulevard
Sparks, NV
Washoe
026-284-33
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
0.46 net acres
Level
Rectangular
Yes
All Available
$0
N/A
Grantee:
Document No.:
Sale Price
Financing:
Cash Eq. Price:
Sold
August 17, 2011
615 days
First American Title
Insurance Company
Michael O. Bladow
4031948
$175,000
Cash or Equivalency
$175,000
$0
Price per Net Acre:
$380,435
$8.73
None
TOD, Sparks, TransitOriented Development
Retail
Confirmed With:
Confirmed By:
Ron Cobb with
Commercial Partners of
Nevada, Costar & Public
Records
775-329-4000
Andrew J. Johnson
Comments:
This was the sale of a 0.46-acre parcel located at the northeast corner of Oddie Boulevard and Mall Drive
within Silverado Plaza, a large anchored shopping center. This was a pad site and was improved with
asphalt-paving, curbs, gutters, and landscaping, with all utilities to the site. According to the listing agent, the
buyer purchased the site to construct a Jack-in-the-Box fast food restaurant.
41
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Land Valuation
LAND SALE 3
42
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Land Valuation
LAND SALE 4
Location:
County:
Physical Data
Land Area Net SF:
Topography:
Shape:
Corner:
Utilities:
Off-site Costs:
Flood Plain:
Encumbrance/
Adverse Easements:
Zoning:
Proposed Use:
9720 S. Virginia Street
Reno, NV
Washoe
163-120-07
0.71 net acres
Level
Rectangular
Yes
All Available
$0
N/A
None
PUD, Reno, Planned Unit
Development
Retail
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No.:
Sale Price
Financing:
Cash Eq. Price:
Sold
September 19, 2011
868 days
Winco Foods, LLC
New York Pizza, Inc.
4042013
$650,000
Cash or Equivalency
$650,000
$0
Price per Net Acre:
$918,004
$21.07
Confirmed With:
Confirmed By:
Adam Wexelblatt with
Colliers, Costar & Public
Records
775-823-6630
Andrew J. Johnson
Comments:
This was the sale of a 0.71-acre parcel located at the southeast corner of S. Virginia Street and South Meadows
Marketplace Drive within South Meadows Marketplace, a large anchored shopping center. This was a pad
site and was improved with asphalt-paving, curbs, gutters, and landscaping, with all utilities to the site.
According to the listing agent, the buyer purchased the property to build a pizza restaurant (retail use) after a
widening project condemned their previous location.
43
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Land Valuation
LAND SALE 4
44
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Land Valuation
LAND SALE 5
Location:
County:
Physical Data
Land Area Net SF:
Topography:
Shape:
Corner:
Utilities:
Off-site Costs:
Flood Plain:
Encumbrance/
Adverse Easements:
Zoning:
Proposed Use:
The southwest corner of
Sharlands Avenue and
Robb Drive
Reno, NV
Washoe
212-131-12
0.87 net acres
Level
Rectangular
Yes
All Available
$0
N/A
None
PUD, Reno, Planned Unit
Development
Hold as Investment
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No.:
Sale Price
Financing:
Cash Eq. Price:
Sold
May 14, 2012
815 days
Wells Fargo Bank
The Sharon
Corporation
4112111
$500,000
Cash or Equivalency
$500,000
$0
Price per Net Acre:
$573,294
$13.16
Confirmed With:
Confirmed By:
Ron Boles with Dickson
Commercial, Costar &
Public Records
775-850-3116
Andrew J. Johnson
Comments:
This was the sale of a 0.87-acre parcel located at the southwest corner of Sharlands Avenue and Robb Drive in
the west Reno area. All utilities were available to the site. The site had some paving which did not appear to
contribute to value. According to the listing agent, the property was purchased as an investment.
45
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Land Valuation
LAND SALE 5
46
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Land Valuation
LAND SALE 6
Location:
County:
Physical Data
Land Area Net SF:
Topography:
Shape:
Corner:
Utilities:
Off-site Costs:
Flood Plain:
Encumbrance/
Adverse Easements:
Zoning:
Proposed Use:
The south side of Ridge
Street, east of Flint Street
(403 Ridge Street)
Reno, NV
Washoe
011-162-02 & -03
0.26 net acres
Level
Rectangular
No
All Available
$0
N/A
None
MUDR, Reno, Mixed
Use/Downtown Reno
Regional Center Plan
Professional Office
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No.:
Sale Price
Financing:
Cash Eq. Price:
Sold
September 13, 2012
143 days
Franklin D. Cathcart Jr.
Trust
320 Flint, LLC
4152225
$150,000
Cash or Equivalency
$150,000
$0
Price per Net Acre:
$581,110
$13.34
Confirmed With:
Confirmed By:
Delores Zunino with
Dickson Realty, Costar &
Public Records
N/A
Andrew J. Johnson
Comments:
This was the sale of two contiguous parcels totaling 0.26 acres along the south side of Ridge Street, east of Flint
Street in the Downtown Reno vicinity. According to the listing agent, the buyer also purchased an office
building adjacent to these parcels and intends to hold the site for possible future expansion.
47
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Land Valuation
LAND SALE 6
48
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Land Valuation
LAND SALES ANALYSIS
The sales have been adjusted for various influences including real property rights conveyed,
financing, condition of sale, time/market conditions, location, size, shape, utilities/offsites,
economic characteristics, use/zoning, and non-realty components. All of the comparable properties
were frontage parcels.
Real Property Rights Conveyed
The transaction price is always predicated on the real property interest conveyed. Many types of
real estate, particularly the income producing property, are sold subject to existing leases. In the
valuation process, adjustments must be made to reflect the difference between properties leased at
market rent or those leased at rent either below or above market rents. The length of the remaining
lease term affects these adjustments.
The subject site has been analyzed based on fee simple rights. In regard to the property rights
conveyed relative to the comparables, all of the sales involved transfers of fee simple rights.
Therefore, no adjustments were necessary for property rights conveyed.
Financing
The transaction price of one property may differ from that of an identical property due to different
financing arrangements. For example, the purchaser of a comparable property may have assumed
an existing mortgage at a favorable interest rate. In another case a developer or seller may have
arranged a buy down, paying cash to the lender so that a mortgage with a below interest rate could
be offered. In both cases, the buyer may have paid a higher price for the properties to obtain below
market financing.
For this analysis, the subject property has been valued based upon cash equivalent terms. All of the
land sales were sold with terms equivalent to cash, and no adjustment is necessary. In summary, no
adjustment for financing is considered appropriate to any of the land sales.
Conditions of Sale
When the conditions of sale are atypical, the result may be a sales price that is higher or lower than a
normal market transaction. Examples of atypical transactions are those that occur between related
parties or distress sales. Each sale has been examined for atypical characteristics that would then
have been confirmed by either the broker or a principal party to the transaction. According to the
information disclosed, the sales were arm’s-length transactions and considered to be typical market
sales. Additionally, none of the sales were determined to be distressed, and the buyers and sellers
were each acting in their own best interest. Therefore, no adjustments were needed for conditions of
sale.
Time/Market Conditions
Comparable sales that occurred under different market conditions than those applicable to the
subject on the effective date of the report require adjustment for any differences that affect their
values. A common adjustment for market conditions is made for differences occurring since the
date of sale. Since the time the comparable sales were transacted, general values may have
increased or decreased and investor’s perceptions of the market conditions may have changed.
Although the adjustment for market conditions is often referred to as a “time” adjustment, time is
not the cause of the adjustment. Market conditions which shift over time create the need for an
49
File #2013-022
Land Valuation
adjustment, not time itself. If market conditions have not changed, no adjustment is required even
though considerable time may have elapsed.
Changes in market conditions are usually measured as a percentage of previous prices. There are
two traditional methods of estimating this percentage change due to market conditions. The first
method is “paired analysis”. If the physical and economic characteristics of a property remain
unchanged, analyzing two or more sales of the same property over a period of time will indicate the
rate of price change. Sales and re-sales of the same property provide the best indication of the
change in market conditions over time. If data on re-sales is unavailable, then the second method
typically utilized is to survey knowledgeable market participants to estimate the potential impact of
The comparable land sales closed between March of 2011 and September of 2012. Changes in
market conditions have not been significant over this time period and no adjustments were needed.
Location
An adjustment for location may be required when the locational characteristics of a comparable
property are different from those of the subject property. Most comparable properties in the same
neighborhood have similar locational characteristics, but variations may exist within a
neighborhood. The specific location of comparable property can influence its price. Further, the
access and visibility from a major arterial or location within a specific area can have a positive
impact upon the property price. Arterial exposure is primarily important for ease of locating and
accessing the property by the public. Views and elevations can also have an impact on property
price.
The subject has a good location, being in an area of properties that are generally under 10 years in
age and having good frontage, visibility and proximate access to the freeway system (under ½ mile
to the west). However, the subject is not a pad site and is not located as an outparcel to a shopping
center. Land Sale 2 is in a superior location with significant adjacent surrounding commercial
development and was adjusted downward 25%. Land Sale 4 was also in a superior location, being a
pad site within a shopping center and was also adjusted downward 25%. Land Sales 1 and 3 had
inferior locations within Sparks, surrounded by older, more obsolescent development and were
adjusted upward 50%. Land Sale 5 had an inferior location in the west portion of Reno and was
adjusted upward 25%. Land Sale 6 had an inferior downtown location and was also adjusted
upward 25%.
Size
Typically, the price per square foot of a smaller parcel will be higher than the sales price per square
foot of a larger parcel. This assumption is based upon the principle of “economy of scale” which is
predicated upon the inverted relationship between size and price. Conversely, the smaller the size
of the site, the larger the price (per acre). Adjustments for size are typically considered when there
is a wide range between the comparable sales and the subject site.
The subject property is approximately 43,566 net square feet in size. The comparable sales range
from 11,244 to 47,045 net square feet. When comparisons are made based upon size, no adjustment
is indicated. No adjustments were made for differences in size.
50
File #2013-022
Land Valuation
Topography
The subject had a level topography, with most of the site being about 4’ to 5’ above grade to
Meadows Parkway. The land sales also had level topography and no adjustments were needed.
Utilities/Offsites
The offsite adjustment takes into consideration certain infrastructure, such as utilities and services
that are available to a particular site. Additionally, the quality, condition, and adequacy of the
sewer, curbs, gutters, access to utility hookups, etc. can influence the sales price of a particular
property. There may also be onsite improvements such as grading that need to be considered.
The subject and all six land sales had all utilities available and no adjustments were needed.
Site Improvements
The subject does not have asphalt-paving or onsite curbs or landscaping. Sale 1 had some asphaltpaving and landscaping and was adjusted downward $0.50 per square foot. Sales 3 and 4 had more
significant site improvements, including more asphalt paving and landscaping and were adjusted
downward $1.00 per square foot.
Use/Zoning
In the valuation of vacant land, zoning is one of the primary factors in determining the best use of
the property. Generally, zoning serves as the test of legal permissibility. As a result, zoning is
typically a primary criterion in the selection of market data. When comparable properties with the
same zoning as the subject are lacking or scarce, parcels with slightly different zoning that have a
similar highest and best use to that of the subject may be used as comparables. These comparables
must be adjusted for the difference in utility if the market indicates that this is appropriate.
The subject has a zoning designation and planned land use designation that allow for a wide variety
of commercial-oriented land uses. The land sales were all zoned or planned for commercial use and
no adjustments were needed.
Summary to Land Valuation
The preceding adjustments have been applied to the land sales. These adjustments are summarized
on the following page.
51
File #2013-022
Land Valuation
LAND SALES ADJUSTMENT GRID
Land Analysis Grid
Location
City
State
Date
Price
Location
Land Area Net SF
Topography
Utilities
Corner
Zoning
Price Adjustment
Land Area Net SF Unit Price
Transaction Adjustments
Property Rights
NS Meadows
Pkwy, E of Double
R Blvd
Reno
Nevada
2/12/2013
Good
43,566
Level
All Available
Yes
PUD, Reno
$0
Comp 1
SS Los Altos
Pkwy, E. of
Galleria Dr
Sparks
NV
3/25/2011
$465,408
Inferior
47,045
Level
All Available
No
NUD, Sparks
Comp 2
Comp 3
Comp 4
Comp 5
WS S. Virginia
NEC Oddie
SEC Virginia St SWC Sharlands
St, S. of Longley Blvd & Mall Dr & S. Meadows Ave & Robb Dr
Ln
Marketplace Dr
Reno
Sparks
Reno
Reno
NV
NV
NV
NV
4/14/2011
8/17/2011
9/19/2011
5/14/2012
$700,000
$175,000
$650,000
$500,000
Superior
Inferior
Superior
Inferior
28,680
20,038
30,843
37,991
Level
Level
Level
Level
All Available
All Available
All Available
All Available
No
Yes
Yes
Yes
MUSV, Reno
TOD, Sparks
PUD, Reno
PUD, Reno
Comp 6
SS Ridge St, E.
of Flint St
Reno
NV
9/13/2012
$150,000
Inferior
11,244
Level
All Available
No
MUDR, Reno
$0
$0
$0
$0
$0
$0
$9.89
$24.41
$8.73
$21.07
$13.16
$13.34
$0.00
$9.89
$0.00
$24.41
$0.00
$8.73
$0.00
$21.07
$0.00
$13.16
$0.00
$13.34
Financing
$0.00
$9.89
$0.00
$24.41
$0.00
$8.73
$0.00
$21.07
$0.00
$13.16
$0.00
$13.34
Conditions of Sale
$0.00
$9.89
$0.00
$24.41
$0.00
$8.73
$0.00
$21.07
$0.00
$13.16
$0.00
$13.34
Expenditures After Sale
Adjusted Land Area Net SF Unit Price
Market Trends Through
2/12/13
$0.00
$9.89
0.0%
$9.89
$0.00
$24.41
0.0%
$24.41
$0.00
$8.73
0.0%
$8.73
$0.00
$21.07
0.0%
$21.07
$0.00
$13.16
0.0%
$13.16
$0.00
$13.34
0.0%
$13.34
Location
Land Area Net SF
Topography
Utilities
Site Improvements
Zoning
Adjustment Subtotal
$4.95
$0.00
$0.00
$0.00
-$0.50
$0.00
$4.45
$14.34
-$6.10
$0.00
$0.00
$0.00
$0.00
$0.00
-$6.10
$18.31
$4.37
$0.00
$0.00
$0.00
-$1.00
$0.00
$3.37
$12.10
-$5.27
$0.00
$0.00
$0.00
-$1.00
$0.00
-$6.27
$14.81
$3.29
$0.00
$0.00
$0.00
$0.00
$0.00
$3.29
$16.45
$3.34
$0.00
$0.00
$0.00
$0.00
$0.00
$3.34
$16.68
Net Adjustments
Gross Adjustments
44.9%
50.0%
-25.0%
25.0%
38.5%
50.0%
-29.7%
25.0%
25.0%
25.0%
25.0%
25.0%
Fee Simple
0.0%
52
File #2013-022
Land Valuation
After adjustments, the comparable land sales provide an adjusted range from $12.10 to $18.31 per
net square foot of land area. Land Sales 4, 5, and 6 were most reliable, being the most recent
indications and were located within Reno city limits. The land sales are supportive of a value of
$16.00 per square foot for the subject.
In summary, we have formed an opinion of the market value of the subject land in fee simple
ownership, subject to the assumptions and limiting conditions contained herein, as of February 13,
2013, as follows:
Subject Land Area
Multiplied by Unit Value
Indication of Market Value
43,566 Sq. Ft.
$16.00 /Sq. Ft.
$697,056
Rounded To:
$700,000
53
EXPOSURE TIME AND MARKETING PERIOD
The aforementioned market value indication has been predicated upon an exposure time of 12
months. This is the length of time that the property would have been exposed on the market to
achieve the market value. The exposure time is based upon comparable sales within this report as
well as discussions with real estate brokers and developers.
The marketing period of the subject property has also been estimated at 12 months. The marketing
period is the length of time that the property would need to be put on the market to achieve the
market value of the subject property. The marketing period has been based upon comparable sales
and takes into consideration the future supply and similar property types in the subject’s market
area. It also assumes prudent marketing and an asking price (list price) similar to the concluded
market value.
54
ADDENDA
i
File #2013-022
Addenda
SUBJECT PHOTOGRAPHS
ii
File #2013-022
Addenda
View from the subject looking east along S. Meadows Parkway
View from the subject looking west along S. Meadows Parkway
iii
File #2013-022
Addenda
View looking north across the subject from along S. Meadows Parkway
View looking east across the subject property
iv
File #2013-022
Addenda
View looking south across the subject property
View looking west across the subject property
v
File #2013-022
Addenda
ENGAGEMENT LETTER
vi
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Addenda
vii
File #2013-022
Addenda
viii
File #2013-022
Addenda
FEMA FLOOD MAP
ix
File #2013-022
Addenda
x
File #2013-022
Addenda
QUALIFICATIONS OF APPRAISERS
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Addenda
QUALIFICATIONS OF APPRAISER
MATTHEW J. LUBAWY, MAI
NEVADA LICENSE A.0000044-CG
ARIZONA LICENSE #31821
3034 SOUTH DURANGO DRIVE, SUITE 100
LAS VEGAS, NEVADA 89117
TELEPHONE: (702) 242-9369
FAX: (702) 242-6391
COMPANY WEBSITE: lubawy.com
e-mail: matt@lubawy.com
APPRAISAL EXPERIENCE AND BACKGROUND
Lubawy & Associates, Inc.
Independent Fee Appraiser and Real Estate Consultant
December, 1994 to Present
Independent Fee Appraiser and Real Estate Consultant
January, 1992 to December, 1994
First Interstate Bank
Staff Appraiser
December, 1988 to January, 1992
Independent Fee Appraiser
March, 1987 to December, 1988
EDUCATION
University of Nevada, Las Vegas,
Bachelor of Science in Business Administration - Concentration in Real Estate
Bishop Gorman High School, Las Vegas, Nevada
APPRAISAL EDUCATION
Fundamentals of Separating Real Property, Personal Property, and
Intangible Business Assets, Appraisal Institute
7-Hour National USPAP Update Course, Appraisal Institute
2010-2011 National USPAP Update, Appraisal Institute
Appraising Distressed Commercial Real Estate, Appraisal Institute
Understanding the Home Valuation Code of Conduct, Appraisal
Institute
March 2012
January 2012
January 2010
July 2009
June 2009
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Introduction to Valuation for Financial Reporting, Appraisal Institute
Argus Based Discounted Cash Flow Analysis, Appraisal Institute
National Uniform Standards of Professional Practice Course 400,
Appraisal Institute
Online Scope of Work: Expanding Your Range of Services, Appraisal
Institute
Online Rates and Ratios: Making sense of GIMs, OARs and DCF,
Appraisal Institute
Forecasting Revenue, Appraisal Institute
Law of Easements: Legal Issues & Practical Considerations,
Lorman Education Services
Analyzing Operating Expenses, Appraisal Institute
Valuation of Detrimental Conditions in Real Estate, Appraisal Institute
2007 National USPAP Update, Appraisal Institute
Analyzing Commercial Lease Clauses, Appraisal Institute
Analyzing Distressed Real Estate, Appraisal Institute
Uniform Appraisal Standards for Federal Land Acquisitions,
Appraisal Institute
Online Analyzing Distressed Real Estate, Appraisal Institute
Business Practices and Ethics, Course 420, Appraisal Institute
USPAP Update – Course 400, Appraisal Institute
Litigation Appraising: Specialized Topics and Applications
Separating Real & Personal Property from Intangible Business Assets
So. NV Public Land Mgt. Act BLM Appraisal Compliance Workshop
Income Capitalization
Appraising Non-Conforming and Difficult Properties
Appraiser Liability
2003 National USPAP
Valuation of Partial Acquisitions, Course 401 through IRWA
Partial Interest Valuation – Divided, Course A7414
Highest & Best Use and Market Analysis
Subdivision Analysis
Writing the Narrative Appraisal Report
USPAP 1999 Revisions A7415ES
Reporting Sales Comparison Grid Adj. for Residential Properties
USPAP 1999 Revisions – A7415ES
Litigation Appraisal and Expert Testimony
USPAP (Parts A & B)
Ethics - USPAP Statements
Comprehensive Appraisal Workshop
Current Issues and Misconceptions in Appraisal
Standards of Professional Appraisal Practice, Part B
Land Faire Nevada
Appraising From Blueprints and Specifications
Accrued Depreciation
Standards of Professional Appraisal Practice, Part A
Report Writing and Valuation Analysis; Exam 2-2
Addenda
June 2009
June 2009
April 2009
April 2009
April 2009
October 2008
August 2008
May, 2007
April, 2007
March, 2007
February, 2007
February, 2007
October 2005
September 2005
September 2005
February 2005
October 2004
September 2003
May 2003
March 2003
March 2003
March 2003
February 2003
October 2000
April 2000
March 2000
January 2000
November 1999
March 1999
March 1999
March 1998
June 1997
1996
March 1995
July 1994
December 1993
1992
July 1992
September 1992
September 1992
1991
June 1991
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Case Studies; Exam 2-1
Capitalization Theory and Techniques, Part B; Exam 1-BB
Capitalization Theory and Techniques, Part A; Exam 1-BA
Basic Valuation; Exam 1A2
Principles of Real Estate Appraisal ; Exam 1A1
June 1991
June 1990
June 1990
May 1989
May 1989
MEMBERSHIPS AND AFFILIATIONS
Member of the Appraisal Institute (MAI #10,653)
Director
2008-2011
President of Las Vegas Chapter
1998/1999
1st Vice President of Las Vegas Chapter
1997/1998
nd
2 Vice President of Las Vegas Chapter
1996/1997
Durango Business Park – Director, President 2007-2011
Nevada State Development Corporation - Director, and Chairman of the Board
Greater Las Vegas Association of Realtors
National Association of Realtors
Las Vegas Host Lions Club - Director 1996, 1997, and 1998
UNLV Alumni Association
AT Alumni Association
TYPES OF APPRAISAL ASSIGNMENTS
Airport Hangars
Assisted Living
Auto Mall
Automobile Dealership Facilities
Condominiums
Convenience Stores
Golf Courses
Hotels/Casinos
Industrial Buildings
Low-Income Housing w/Tax Credits & Bond Financing
Medical Office Buildings
Mini-Storage
Multi-Family Dwellings
Professional Office Buildings
Residential Subdivisions
Restaurants
Retail Shopping Centers
Single-Family Residences
Special Use Properties
Taverns
Townhouses
* * * * * * * * * * * * * *
Condemnation/Eminent Domain
Fee Simple Valuations
Leasehold Valuations
Leased Fee Valuations
Feasibility Studies
Market Studies
PROMINENT APPRAISAL ASSIGNMENTS
Hotels/Casinos
Alexis Park
Best Western Mardi Gras Inn
Binion’s Horseshoe Hotel/Casino
Castaways Hotel/Casino
La Bayou Casino
Mt. Charleston Hotel
PT’s Mining Casino
Regency Casino (Laughlin)
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Comfort Inn
Courtyard by Marriott (Reno)
Day’s Inn (Pahrump Station)
Four Queens Hotel/Casino
Golden West Casino
Hampton Inn
Holiday Inn
Howard Johnson
Allstate Car Rental
Auto Auction Sales
Auto Nation
Ben Stepman Dodge
Cashman Cadillac
Desert Dodge
Falconi Acura
Saddle West Hotel/Casino
Springhill Suites by Marriott
Sunbird Motel
Thirstbuster’s Casino
Tivoli Motel
Vacation Village Hotel/Casino
Wildfire Casino
Automobile Dealerships
Fletcher Jones Mitsubishi
Freightliner Truck Sales/Repair Facility
Friendly Ford Dealership
Harley Davidson Sales/Repair Facility
Norm Baker Auto
Rick Peet Chrysler Jeep Dodge
Recreational Uses
Black Mountain Golf Course
Millenium Sports Arena
Dragon Ridge Golf Course
Stallion Mountain Country Club
Special Use Properties
Bible Baptist Church
Montessori Academy
Braggsmith Driving School/Racetrack
Quail Air Center (Airport Hangars)
Cheyenne Air Center (Air Hangars)
Sahara Surgery Center
Friendship Church
UMC Quick Care Centers
Green Valley Christian Center
Victory Christian Church
Las Vegas Day School
Warren Walker Elementary School
Merryhill School
Warren Walker Middle School
Arby’s
BJ’s Lounge
Carrow’s
Chicago Brewing Co.
Chicago’s Own
Claim Jumper
Denny’s
Draft House
Hamada’s
Harley Davidson Café
IHOP
Loose Caboose
Restaurants/Taverns
Magoo’s
Mc Donald’s
Mugshots
Mulligans
PT’s Pubs
Roadrunner Taverns
Sean Patrick’s
Smith & Wollensky
Taco Bell
T-Bird Lounge
Tenaya Lodge
Tommy Rockers
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Miscellaneous
Aliante (1,900 AC)
K-Mart
Checker Auto Parts
Mountains Edge (3,000 AC)
Inspirada (1,500 AC)
Northport Bus.Center (400,000 SF Bus. Pk.)
Ivanpah Airport (6,000 AC)
Providence (1,700 AC)
James Hardie Gypsum Mine (979 AC)
Tuscany Hills (323 AC)
PARTIAL LIST OF CLIENTS
Financial Institutions
American General Realty Advisors
American Partners For Life Insurance
ARCS Commercial Mortgage Company
Bank of America, California
Bank of America, Nevada
Bank One (Arizona)
Bank One (Texas)
Bank of Las Vegas
Bank of Nevada
Belgravia Capital Corporation
California Bank & Trust
California Cho Hung Bank
Canada Life Assurance Company
CIB Bank
Citicorp, Arizona
City Mortgage
City National Bank
Consolidated Mortgage
Credit Suisse First Boston Mortgage
Criimi Mae
Deutsche Bank Mortgage Capital
East West Bank
Federal Deposit Insurance Corp.
First Denver Mortgage
First Federal Lincoln
First National Bank
First Security Bank
GE Capital
General American Life Ins. Co.
GMAC
GPM Life Insurance Company
Imperial Capital Bank
Imperial Thrift & Loan
Independent Order of Foresters
Israel Discount Bank of New York
Key Bank
Keystone Capital
M&I Thunderbird Bank
Marshall and Ilsley
Merchants Mortgage & Trust
Merrill Lynch Mortgage Capital
Midland Loan Services
Modesto Commerce Bank
Nationwide Life Insurance Company
Nevada State Bank
Northern Trust Bank
Pacific First Bank
Pacific Housing
PCV Murcor
PNC Multifamily Capital
Principal Capital Management LLC
Security Mutual Life Insurance Co
Sierra West Bank
Silverstate Credit Union
Southern Pacific Bank
Temecula Valley Bank
U S Bank
Union Planter’s Bank
United Bank of Switzerland
US Savings Bank
Vestin Mortgage
Ward Cook
Wells Fargo
Western Capital
Woodmen of The World Insurance Society
Zions Bank
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Attorneys
Anthony Guenthur
Barron, Vivone, Holland & Pruitt
Beckley Singleton
Gublers & Peters
Jeffrey Eskin
Jeffrey L. Burr and Associates
John Boyer
John Erickson
John Peter Lee, Esq.
Jones Vargas
Koeller, Nebeker, Carlson, & Haluck
Lionel Sayer
Michael Mansfield, Esq.
Michael Pontoni
Sanford Scott
Shea, and Carlyon
Sylvester and Polednak
William E. Cooper Law Offices
Government
Bureau of Land Management (BLM)
City of Henderson
City of Las Vegas
City of North Las Vegas
Clark County Dept of Aviation
Clark County District Attorney
Clark County Public Works
Clark County School District
Colorado River Commission
Community College of So. Nevada
Internal Revenue Service
Las Vegas Valley Water District
Nevada Department of Transportation
Nevada Division of State Lands
NV Energy (Nevada Power Company)
Nevada Real Estate Division
Nye County
Nye County School District
Small Business Administration
Southern Nevada Water Authority
U.S. Army Corps of Engineers
Non-Financial/Private Individuals
Becker Realty
Brookhollow Properties
CB Commercial
Chrysler Realty Corporation
Del Webb
Insight Development
International Bricklayers Union
Ken Templeton Realty
Maury Abrams Company
Millennium Properties
University of Nevada Las Vegas (UNLV)
Nevada Hand
Nigro & Associates
Pratte Development
Ribeiro Corporation
Romano Realty
Rossum Realty
Terra West Development
The Dial Corporation
The Walters Group
Triple Five Development Corp.
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EXPERT WITNESS TESTIMONY
Qualified as Expert Witness in Federal District Court
Qualified as Expert Witness in Federal Bankruptcy Court
Qualified as Expert Witness in the Nevada State District Court
Qualified as Expert Witness in Nevada State District Court Family Division
Feb-13
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APPRAISER QUALIFICATIONS
Nevada Certified General Appraiser (#A.0007660-CG)
Lubawy & Associates
3034 S. Durango Drive, Suite 100
Las Vegas, Nevada 89117
Phone (702) 242-3969 / Fax: (702) 242-6391
Email: andrew@lubawy.com
Professional
Advancement:
Certified General Appraiser
Registered Intern Appraiser
Professional
Affiliations:
Member – Appraisal Institute
Formal Education:
University of Phoenix- Las Vegas, NV
 Bachelor’s Degree in Business/
Finance
Appraisal Education
2008– Present
2004 to 2007
2008
Appraisal Institute
 Commercial Highest and Best Use and Market Analysis
 Residential Highest and Best Use and Market Analysis
 Basic Income Capitalization
 7 Hour National USPAP Update
 General Appraiser Site Valuation & Cost Approach
 Appraisal Principles & Procedures Course
 Business Practice & Ethics
 Advanced Sales Comparison & Cost Approach
 Real Estate Finance Statistics and Valuation Modeling
 General Appraiser Sales Comparison Approach
 General Appraiser Report Writing & Case Studies
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Addenda
xx

Appraisal Matt Lubawy

Transcription

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