appraisal for: kathryn hattox trust …...appraisal for: kathryn hattox trust property located at:...
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TITLE PAGE
APPRAISAL FOR: KATHRYN HATTOX TRUST
PROPERTY LOCATED AT:
1770 Evergreen Street
San Diego, California 92106
STEVEN L. BOWEN & ASSOCIATES REAL ESTATE APPRAISERS/CONSULTANTS
9522 SELTZER COURT, SAN DIEGO, CA 92123-3248 TELEPHONE (858) 571-9000 FAX (858) 571-9003 E-Mail: [email protected] Web Site: www.sandiegoappraisers.com
STEVEN L. BOWEN, MAI 2
Real Estate Appraiser/Consultant
LETTER OF TRANSMITTAL Steven L. Bowen, MAI
Rodney G. Bowen, Appraiser Gary J. Huneke, Appraiser
Kim S. Bowen, Appraiser October 16, 2017 Our Ref. No. 17-013
Sylvia Maas Kathryn Hattox Trust 4227 Coronado Avenue
San Diego, CA 92107
Re: Appraisal of Property located at 1770 Evergreen Street, San Diego, CA 92106
Dear Sylvia Maas: Pursuant to your recent request, please be advised that I have made a
careful investigation and analysis of the property at the above referenced location to determine the Market Value of the subject property.
By reason of my investigation and analysis, I have formed the opinion
that the subject property had a Market Value, as of April 29, 2017, under Limiting Conditions and Assumptions that follow, of:
$7,080,000 (SEVEN MILLION EIGHTY THOUSAND DOLLARS)
This appraisal report has been made in conformity with, and subject to,
the requirements of the Uniform Standards of Professional Appraisal Practice
(USPAP) as provided by the Appraisal Foundation and is intended that the report comply with OCC, 12 CFR, Part 34.
Enclosed is pertinent information upon which my conclusion of value is
partially predicated. Thank you for the opportunity of submitting this report. If I can be of further service, please do not hesitate to call.
Respectfully submitted,
Steven L. Bowen, MAI CA Cert. No. AG002842
STEVEN L. BOWEN, MAI 3
Real Estate Appraiser/Consultant
SUMMARY OF SALIENT FACTS AND CONCLUSIONS LOCATION: 1770 Evergreen Street, San Diego, CA
92106
FLOOD ZONE: No, Panel No. 06073C1880G, Dated: 5/16/2012, Zone X, Insurance Not Required
TOXIC WASTE OR ENVIRONMENTAL HAZARD POTENTIAL:
None noted
NATURAL, CULTURAL, SCIENTIFIC OR RECREATIONAL VALUE:
None noted
OWNER OF RECORD: Kathryn Hattox Trust
DATE OF VALUE: April 29, 2017
DATE OF REPORT: October 16, 2017
APPRAISAL USE: Estate purposes
SITE DATA: Area: 19,998 square feet Zone: RM-3-7, Multifamily Residential
IMPROVEMENTS: Type: 24 unit apartment complex Size: 19,498 square feet (GLA)
Actual Age: 67 & 47 years Effective Age: 30 years Remaining Economic Life: 30 years
HIGHEST AND BEST USE: As currently improved
ESTIMATED MARKET TIME TO SELL: Less than 12 months assuming aggressive marketing
ESTIMATED EXPOSURE TIME: Same as market time
VALUE INDICATED BY THE TWO APPROACHES: Sales Comparison Approach: $7,190,000 Income Approach: $7,080,000
RECONCILED VALUE ESTIMATE: $7,080,000
STEVEN L. BOWEN, MAI 4
Real Estate Appraiser/Consultant
LIMITING CONDITIONS AND ASSUMPTIONS
In the preparation of this report, certain basic Assumptions have been relied upon, and there are also certain limiting conditions which circumscribe the scope of this report.
1) That no guarantee is made as to the correctness of estimate or opinion furnished by others, and which have been used in making this appraisal. The appraiser assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinion herein stated unless specifically noted.
2) Title to the property appraised is assumed to be marketable and free of encumbrances.
3) That no liability is assumed on account of matters of a legal nature affecting this property, such as title defects, liens, encroachments, overlapping boundaries, etc.
4) Maps, photos and plats furnished by the appraiser are not based upon a survey, but are furnished as an aid to the reader in visualizing the report.
5) Possession of this report, or any copy thereof, does not carry with it the right of publications, nor may the same be used for any purpose by anyone but the client, without the previous written consent of the appraiser, and in any event, only in its entirety. Any party who uses or relies upon any information in this report, without the preparer's written consent, does so at their own risk.
6) A minimum standard fee will be charged per each half-day (or any portion thereof) for court appearance on half my standard daily rate as of the date service is rendered. Pre-trial preparation will be charged based on my hourly rate fee in effect the date service is rendered.
7) Since earthquakes and soil problems are common in California, no responsibility is assumed due to their possible effect on individual properties. The appraiser assumes that there are no hidden or unapparent conditions of the property which would render it more or less valuable. The appraiser assumes no responsibility for such conditions or for engineering which might be required to discover such factors.
8) Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its value.
STEVEN L. BOWEN, MAI 5
Real Estate Appraiser/Consultant
9) The Americans with Disabilities Act ("ADA") became effective January 26, 1992. I have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I have no direct evidence relating to this issue, I did not consider possible non-compliance with the requirements of the ADA in estimating value of the property.
STEVEN L. BOWEN, MAI 6
Real Estate Appraiser/Consultant
CERTIFICATION I certify that, to the best of my knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and
conclusions.
I 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.
I have performed no services, as an appraiser or in any other capacity,
regarding the property that is the subject of this report within the three-
year period immediately preceding acceptance of this assignment.
I have no bias with respect to the property that is the subject of this
report or to the parties involved with this assignment.
My engagement in this assignment was not contingent upon developing
or reporting predetermined results.
My 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.
My analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
I have made a personal inspection of the property that is the subject of
this report.
Kim S. Bowen, appraiser assistant, assisted in the inspection, collection
of data, analysis, and valuation of this report. I have no bias with
respect to the property that is the subject of this report or to the parties involved with this assignment. The reported analysis, opinions, and conclusions were developed, and the report has been prepared, in
conformity with the requirements of the Code of Professional Ethics & Standards of the Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal
Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized
representatives.
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 Practice of the Appraisal Institute.
STEVEN L. BOWEN, MAI 7
Real Estate Appraiser/Consultant
The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
As of the date of this report, I, Steven L. Bowen, MAI, have not completed
the requirements under the continuing education program for Designated Members of the Appraisal Institute.
October 16, 2017
STEVEN L. BOWEN, MAI, CA Cert. No. AG002842 DATE
STEVEN L. BOWEN, MAI 8
Real Estate Appraiser/Consultant
TABLE OF CONTENTS
TITLE PAGE ................................................................................................. 1
LETTER OF TRANSMITTAL .......................................................................... 2
SUMMARY OF SALIENT FACTS AND CONCLUSIONS ................................... 3
LIMITING CONDITIONS AND ASSUMPTIONS ............................................... 4
CERTIFICATION........................................................................................... 6
TABLE OF CONTENTS ................................................................................. 8
INTRODUCTION ..................................................................................... 10
PURPOSE OF THE APPRAISAL ................................................................... 11
INTENDED USE ......................................................................................... 11
INTENDED USER....................................................................................... 11
DATE OF VALUE ....................................................................................... 11
STATEMENT OF OWNERSHIP .................................................................... 11
UNIFORMED STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE ..... 11
SCOPE OF WORK ...................................................................................... 11
DEFINITION OF MARKET VALUE ............................................................... 12
PROPERTY RIGHTS APPRAISED ................................................................ 13
DEFINITION OF HIGHEST AND BEST USE ................................................ 13
OTHER DEFINITIONS ................................................................................ 14
LOCATION MAP ......................................................................................... 15
NEIGHBORHOOD ANALYSIS - POINT LOMA .............................................. 16
SITE ANALYSIS ...................................................................................... 20
SUBJECT PHOTOS .................................................................................... 21
LOCATION ................................................................................................. 27
LEGAL DESCRIPTION ................................................................................ 27
HISTORY OF ACQUISITION ....................................................................... 27
SIZE AND SHAPE ...................................................................................... 27
TOPOGRAPHY ........................................................................................... 27
SOIL .......................................................................................................... 27
TOXIC WASTE AND ENVIRONMENTAL HAZARD POTENTIAL ..................... 27
NATURAL, CULTURAL, SCIENTIFIC OR RECREATIONAL VALUE ............... 27
FLOOD AND DRAINAGE ............................................................................ 27
SEISMIC CONSIDERATIONS ...................................................................... 27
STEVEN L. BOWEN, MAI 9
Real Estate Appraiser/Consultant
STREET IMPROVEMENTS, ACCESS, AND EXPOSURE .............................. 28
UTILITIES .................................................................................................. 28
ZONING ..................................................................................................... 28
ASSESSMENT ............................................................................................ 28
EASEMENTS AND RESTRICTIONS ............................................................. 29
PRESENT USE ........................................................................................... 29
FUTURE USE ............................................................................................. 29
DESCRIPTION OF THE IMPROVEMENTS ................................................... 30
HIGHEST AND BEST USE .......................................................................... 33
UNIT SKETCH ........................................................................................... 34
ASSESSOR’S PARCEL MAP ........................................................................ 35
FAULT MAP .............................................................................................. 36
REALQUEST DATA SHEET ........................................................................ 37
TRANSACTION HISTORY REPORT ............................................................. 38
PROPERTY TAX DETAILS .......................................................................... 39
VALUATION ............................................................................................ 40
SALES COMPARISON APPROACH .............................................................. 41
INCOME APPROACH .................................................................................. 47
RECONCILIATION ...................................................................................... 53
MARKETING/EXPOSURE TIME ................................................................. 55
MARKET DATA ....................................................................................... 56
IMPROVED SALES TRANSACTIONS SUMMARY ......................................... 57
IMPROVED SALES TRANSACTION MAP ..................................................... 58
IMPROVED SALES TRANSACTION PHOTOS .............................................. 59
RENTAL COMPARABLES SUMMARY .......................................................... 73
RENTAL COMPARABLES MAP ................................................................... 74
ADDENDUM ............................................................................................ 80
RENT ROLL .............................................................................................. 81
INCOME & EXPENSE STATEMENT 2015 ................................................... 82
INCOME & EXPENSE STATEMENT 2016 ................................................... 83
QUALIFICATIONS OF APPRAISER .............................................................. 84
INTRODUCTION
INTRODUCTION
STEVEN L. BOWEN, MAI 11
Real Estate Appraiser/Consultant
PURPOSE OF THE APPRAISAL The objective of this appraisal is to estimate the Market Value of the
subject property.
INTENDED USE
The intended use of this appraisal is for estate purposes only. This report is not intended for any other use and must not be relied upon by any other party for any purpose whatsoever.
INTENDED USER The intended user of this appraisal is Kathryn Hattox Trust.
DATE OF VALUE
April 29, 2017
STATEMENT OF OWNERSHIP
As of the date of this appraisal, the interest of the subject is vested in the name of Kathryn Hattox Trust.
UNIFORMED STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE
The appraisal report is intended to conform to the requirements of The Uniform Standards of Professional Appraisal Practice (USPAP) as provided by
the Appraisal Foundation.
SCOPE OF WORK According to USPAP, it is the appraisers’ responsibility to determine the
appropriate amount and type of information researched and the analysis applied in an assignment. Scope of work includes, but is not limited to, the following:
The degree to which the property is inspected or identified;
The extent of research into physical or economic factors that could
affect the property;
The extent of data research; and
The type and extent of analysis applied to arrive at opinions or
conclusions.
Appraisal & Report Type
This is a narrative report intended to include most of the facts and
reasoning that led to the ultimate value estimates.
Property Identification and Inspection
The subject has been identified by its property address and Assessor’s
Parcel Number (APN) in the Site Analysis Section. I inspected the subject
on September 18, 2017. A complete inspection of the subject was made
and photographs were taken.
Analysis of Physical Factors and Economic Factors
All pertinent physical and economic factors were analyzed.
INTRODUCTION
STEVEN L. BOWEN, MAI 12
Real Estate Appraiser/Consultant
Extent of Data Research
The appraiser maintains a current and comprehensive database of
commercial sales and listings in the San Diego County market area. The
scope of this appraisal involved a market data search in the County of
San Diego. All of the comparables contained in this report are located
within five miles of the subject. In addition to market data developed in
the course of previous appraisal work and retained in the appraisers’
work files. Other sources of information include:
CoStar Comps Inc.
LoopNet.com
Public records as reported by RealQuest
Local Real Estate brokers and sales agents
Multiple Listing Service (MLS)
Local and national Real Estate brokerage firms websites
Government and City Websites
Type and Extent of Analysis
Cost Approach:
The Cost Approach is not considered appropriate for this type of property in the current market. Its use is not necessary for a credible appraisal and has not been developed.
Sales Comparison Approach:
The Sales Comparison Approach is applicable and necessary and
has been fully developed.
Income Approach: The Income Approach is applicable and necessary and has been fully developed.
Reconciliation of Approaches:
A complete review of the approaches to value was made for the purpose of determining the most reliable valuation technique.
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, with the buyer and seller each acting prudently, 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:
INTRODUCTION
STEVEN L. BOWEN, MAI 13
Real Estate Appraiser/Consultant
1) Buyer and seller are typically motivated. 2) Both parties are well informed or well advised, and each 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 cash in U.S. dollars or in terms of financial arrangements comparable thereto.
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.1
PROPERTY RIGHTS APPRAISED The property rights appraised are in fee simple as though free and clear
of any encumbrances or liens, as of the above date of value, unless otherwise
stated in this report.
Fee Simple Estate may be defined as follows: "Absolute ownership unencumbered by any other interest or estate; subject only to the limitations imposed by the government
powers of Eminent Domain, Escheat, Police Power and Taxation."
Leased Fee Estate may be defined as follows:
"An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; the rights of lessor or the
leased fee owner and leased fee are specified by contract terms contained within the lease."
Leasehold Estate may be defined as follows: "The interest held by the lessee (the tenant or renter) through a
lease conveying the rights of use and occupancy for a stated term under certain conditions." 2
DEFINITION OF HIGHEST AND BEST USE Highest and Best use may be defined as:
1To estimate Market Value as defined by the Federal Register, vol. 55, no. 163, August 22,
1990, pages 34228 and 34229; also quoted in the Uniform Standards of Professional Appraisal Practice (USPAP) Glossary and used by RTC under FIRREA as derived from Title 12
of the Code of Federal Regulations, Part 1608.
2 The Dictionary of Real Estate Appraisal, Third Edition, 1993, Appraisal Institute, pgs. 140
& 204
INTRODUCTION
STEVEN L. BOWEN, MAI 14
Real Estate Appraiser/Consultant
"The reasonably probable and legal use of vacant land or an improved property, which 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 profitability."3
Highest and Best Use of land of a site As Though Vacant is:
"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."
Highest and Best Use of property as Improved is: "The use that should be made of a property as it exists. An existing property should be renovated or retained as is so long as it
continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a
new one." 4
"An analysis of the highest and best use of a property as improved may indicate that little or no capital expenditure is required, or it
may suggest that significant expenditures are required to convert the property to a different use or to rehabilitate or remodel the existing use."5
OTHER DEFINITIONS EXPOSURE TIME may be defined as follows: "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 estimate based upon an analysis of past events assuming a competitive and open market."6
3 The Appraisal of Real Estate, Tenth Edition, 1992, Appraisal Institute, pg. 275-282
4 The Dictionary of Real Estate Appraisal, Third Edition, 1993, Appraisal Institute, pg. 171
5 The Appraisal of Real Estate, Tenth Edition, 1992, Appraisal Institute, pg. 285
6 Uniform Standards of Professional Appraisal Practice, 2006 Edition, pg. 93
INTRODUCTION
STEVEN L. BOWEN, MAI 15
Real Estate Appraiser/Consultant
LOCATION MAP
INTRODUCTION
STEVEN L. BOWEN, MAI 16
Real Estate Appraiser/Consultant
NEIGHBORHOOD ANALYSIS - POINT LOMA
GEOGRAPHIC LOCATION
The City of San Diego is located approximately 120 miles south of Los
Angeles, 500 miles south of San Francisco, 364 miles west of Phoenix, Arizona and north of Baja California, Mexico. Point Loma is a neighborhood of San Diego. Geographically it is a hilly peninsula that is bordered on the west and
south by the Pacific Ocean, the east by the San Diego Bay and Old Town and the north by the San Diego River. Along with Coronado and the Silver Strand,
Point Loma separates the San Diego Bay from the Pacific Ocean.
HISTORY AND ECONOMIC BACKGROUND
The discovery of San Diego in 1542 by Juan Cabrillo marked the birthplace of California. The Cabrillo National Monument, on the west side of
San Diego Bay, is reported to be the most visited national monument in the United States. The land first sighted by Cabrillo, which is the community of Point Loma, is much as it was 500 years ago - a rocky peninsula hooking into
the Pacific Ocean, making the harbor an ideal anchorage. The harbor itself has gone through a number of changes with a series of dredging projects which not only deepened the channel, but has given the city the opportunity to expand.
Father Juniperro Serra dedicated the Mission San Diego de Alcala in 1769, becoming the first of twenty-one California missions established by
Franciscan priests. Mission San Diego de Alcala overlooks what is today known as Mission Valley and was then an indian village.
San Diego was also the site of the first military settlement in California
(Presidio). During the 1830's, the first settlement which prospered was known as Old Town - located just northwesterly of the downtown area of San Diego.
Old Town was the trading center for the region, and, shortly thereafter, San Diego became a center for the whaling industry. Whale oil, as much as 55,000± gallons annually, was produced and shipped out of the Port of San
Diego. Since the first World War, San Diego has been a center for military
operations and related aerospace, missile and ship building development. The
City of San Diego is headquarters for the 11th Naval District, and Naval and Marine training operations. Camp Pendleton, located just north of the City of
Oceanside, is the largest U.S. Marine Corps. base in the United States. San Diego firms have been closely allied in the production of components for the space and aircraft industries, with ship building and fishing playing important
roles in the San Diego economy. Since the 1960's, the region's economy has become greatly diversified,
and today, many electronic firms and more than 100 firms connected with
oceanographic research and development are located in the San Diego County area. Research and development in the health and applied sciences are also a
significant and growing part of the San Diego area's economic base. This includes the U. S. Naval Electronics Laboratory, Palomar Space Observatory,
INTRODUCTION
STEVEN L. BOWEN, MAI 17
Real Estate Appraiser/Consultant
the Salk Institute, Scripps Clinic and Research Foundation, the Medical School of the University of California, and the Veteran's Hospital. Other significant
contributors to the San Diego economy are port activities, agriculture and tourism.
POPULATION
Point Loma has an estimated population of 45,887 (including Ocean
Beach), according to the 2000 Census Bureau.
CLIMATE, TOPOGRAPHY AND RECREATION
The City of San Diego enjoys several distinct climates within its boundaries, which is appealing to new residents and visitors. Climate varies
from the coastal region easterly to the mountains and to the desert area. The coastal region has a mean temperature of 55 degrees during the winter and 70
degrees in the summer season. The mountain and desert areas tend to experience more extremes during different seasons in comparison. The average annual temperature of the City of San Diego and other coastal areas is
approximately 71 degrees with an average relative humidity of approximately 67 percent. As one travels inland from the coastline, temperatures tend to be warmer in the summer and cooler in the winter. In the mountains, average
daily highs in the summers are around 77 degrees and lows are about 45 degrees with 15 inches of rain a year. Yearly rainfall within the city and the
coastal areas in the county is comparatively light, averaging 9.5 inches annually, most of which falls from early December to early March.
The mild climate and varied topography of San Diego offers a wide variety
of recreational activities. Swimming, boating, fishing, sailing, skindiving, and surfing are available practically year-round along sandy beaches which dot the
entire length of San Diego County. Two large parks within the City of San Diego offer additional recreational and cultural activities. Mission Bay Park has approximately 4,250 acres of aquatic playground offering all types of water
related activities, picnic grounds, restaurants and resorts. This park is the site of the renowned 60± acre Sea World development which is the west coast's largest oceanarium. Balboa Park is in the heart of the city, just north of
downtown San Diego, and offers a wide variety of activities such as picnicking, museums, dramatic arts, and the world famous San Diego City Zoo which is a
major attraction. For spectators, San Diego also has a full range of professional sports
activities including the San Diego Chargers (NFL football), Padres (National
League baseball) and Sockers (MSL soccer). The San Diego State University Aztecs also provide year-round excitement. Annual sporting events include the Sea World Holiday Bowl (inter-collegiate football), the PGA Open, LPGA golf
tournament, a men's golf tournament at La Costa and a 43 day horse racing season at Del Mar Race Track with year-round remote betting. Three indian
reservations in the County offer casino style gambling.
INTRODUCTION
STEVEN L. BOWEN, MAI 18
Real Estate Appraiser/Consultant
The arts flourish here as well. Many art galleries and museums represent a wide variety of art from classic to modern. Several facilities
throughout the County provide an array of quality dramatic dance, musical, and cinematic productions. San Diego is also gaining a reputation for its Jazz.
WATER AND UTILITIES
Most of San Diego's sewage facilities are at, or near, capacity. There
have been numerous moratoriums in the past years due to a lack of adequate sewage facilities. In addition, the City of San Diego has a project to treat raw
sewage in Mission Valley which would lead to a city-wide recycling program. With the help of federal and state funds, the County's Regional Water Reclamation Agency helped turn a portion of the San Diego River, located in
Mission Valley, into a year-round "live stream" with the use of highly treated sewage water.
Gas and electric service throughout the city is provided by the San Diego
Gas and Electric Company and is adequate to meet the demands. Pacific Bell provides telephone communication services throughout the
area.
TRANSPORTATION
The City of San Diego has a good transportation system. There is air service, rail service and an adequate highway system. Bus service in the
county is currently adequate. The region's transportation plans include the addition of many new bus routes, both local and express. Present plans call for 60% of the region's population to live within 1/4 mile of a bus stop.
Utilizing existing San Diego & Arizona Eastern Railroad rails, a trolley service runs from Downtown San Diego to the Mexican border, to La Jolla, and from
the southeast terminal to El Cajon. Proposed extensions of this service are planned to Mission Valley and the North County.
The San Diego Bay provides deep water channels from the entrance
down to Chula Vista, with complete bulk loading systems and simultaneous loading/unloading and container facilities. Both Santa Fe and San Diego & Arizona Eastern lines connect with trackage at the 24th Street Marine
Terminal.
SOCIOLOGICAL FACTORS
The "easygoing" lifestyle of the inhabitants of the region has considerable attraction for other parts of the country. This casual attitude toward living,
along with people oriented amenities, is recognized as a desirable attribute of the region. San Diego has an international flavor of being only minutes north
of Tijuana, B.C., Mexico, which provides shopping and is considered a major tourist attraction
Residents of the County of San Diego are somewhat protective towards
the region's environmental quality, sometimes referred to as control growth or anti-growth. Considerable effort has been expended, however, to promote and
INTRODUCTION
STEVEN L. BOWEN, MAI 19
Real Estate Appraiser/Consultant
attract new industry. This is attributable to a growing population and the desire to maintain a high standard of living. Elected officials, as well as the
general public are aware that a high quality environment is not only attractive to people but to industry as well.
PORT OF SAN DIEGO
The harbor has always been the key to San Diego's prosperity. The 27
miles of harbor shoreline are shared almost equally by the U. S. Military and the San Diego Unified Port District.
The Port of San Diego created two auto-accessible peninsulas reaching into the harbor; one is Harbor Island and the other Shelter Island, where the subject is located. This area is the center of San Diego's yachting industry with
hundreds of boats anchored in the sheltering cove. Many yacht related services are located on the island as well as hotels, restaurants, walking paths and monuments.
SUBJECT AREA
The subject is location in an area of other apartments and single family residences. It is located ½ mile from the harbor.
SITE ANALYSIS
SITE ANALYSIS
STEVEN L. BOWEN, MAI 21
Real Estate Appraiser/Consultant
SUBJECT PHOTOS
Front and southwest side view
Northeast side view
SITE ANALYSIS
STEVEN L. BOWEN, MAI 22
Real Estate Appraiser/Consultant
Rear view
Courtyard
SITE ANALYSIS
STEVEN L. BOWEN, MAI 23
Real Estate Appraiser/Consultant
Parking
Street scene, looking northeast along Evergreen Street, subject to left
SITE ANALYSIS
STEVEN L. BOWEN, MAI 24
Real Estate Appraiser/Consultant
Street scene, looking northeast along Macaulay Street, subject to right
Street scene, looking northeast along Newell Street, subject to left
SITE ANALYSIS
STEVEN L. BOWEN, MAI 25
Real Estate Appraiser/Consultant
Living Room
Kitchen
SITE ANALYSIS
STEVEN L. BOWEN, MAI 26
Real Estate Appraiser/Consultant
Bathroom
Some units are bi-level
SITE ANALYSIS
STEVEN L. BOWEN, MAI 27
Real Estate Appraiser/Consultant
LOCATION The subject is located at 1770 Evergreen Street, San Diego, CA 92106.
LEGAL DESCRIPTION The subject may be legally described as Lots 9 thru 16 Block 116 Tract
390 in the City of San Diego, County of San Diego, State of California.
HISTORY OF ACQUISITION Acquired by Grant Deed dated June 15, 1994 as Document No. 94-
383023. The subject is not presently listed for sale and there have been no known offers to purchase the subject.
SIZE AND SHAPE
The site is rectangular in shape and has 200 feet of frontage on
Evergreen Street and 99.99 feet of frontage on Newell Street and Macaulay
Street. Total area is estimated at 0.46 acres or 19,997 square feet. Please
refer to the Assessor's Parcel Map.
TOPOGRAPHY Topography is slight slope to street grade towards the corner of
Evergreen Street and Macaulay Street.
SOIL
No detailed soils studies covering the subject property were available to the appraiser; therefore, premises as to soil qualities employed in this report are not conclusive. I assume there are no geological hazards.
TOXIC WASTE AND ENVIRONMENTAL HAZARD POTENTIAL A hazardous study was not provided to the appraiser. This appraiser is
not an expert in the field of hazardous waste detection. The client is urged to retain an expert in this field, if desired. This analysis assumes no hazardous waste contamination of the subject exists.
NATURAL, CULTURAL, SCIENTIFIC OR RECREATIONAL VALUE No natural, cultural, scientific or recreational value was observed on the
site.
FLOOD AND DRAINAGE According to the Flood Insurance Rating Management (FIRM) Map Panel
No. 06073C1880G, dated May 16, 2012, the subject is in an area rated as Zone X. This zone is not considered a flood hazard zone; therefore, insurance is not required. Based on this information, it is assumed that the subject has
adequate drainage.
SEISMIC CONSIDERATIONS
The principle seismic considerations for most structures in southern California are surface rupturing of fault traces and damage caused by ground shaking or seismically induced ground settlement. According to the State of
California Earthquake Fault Zones Map (effective May 1, 2003), the subject is located on a known fault that is categorized as Potentially Active, Inactive, Presumed Inactive, or Activity Unknown.
SITE ANALYSIS
STEVEN L. BOWEN, MAI 28
Real Estate Appraiser/Consultant
STREET IMPROVEMENTS, ACCESS, AND EXPOSURE The subject is located on Evergreen Street which is a side arterial in the
community. Public access is adequate and exposure is adequate. Evergreen Street is a two lane right-of-way carrying two-way traffic.
Newell Street is a two lane right-of-way carrying two-way traffic. Macaulay Street is a two lane right-of-way carrying two-way traffic. They are paved with asphalt concrete and have concrete curbs, gutters, and sidewalks. Street and
sidewalk surfacing is generally good. Ingress and egress is by curb cuts and appears adequate.
UTILITIES
All utilities are available to the subject site including gas, electricity, water, sewer, telephone, and trash pick up. The cost of utilities in the subject
area is comparable to the rest of San Diego.
ZONING According to the City of San Diego Planning Department the subject is
zoned RM-3-7 which is a Residential - Multi Unit Zone. This ordinance allows residential development of one dwelling unit per 1,000 square feet of lot area.
The subject property does not meet these requirements with one dwelling unit per 833 square feet of lot area. The off street parking requirements for one bedroom units is 1.50 spaces per dwelling and for two bedroom units is 2.00
spaces per dwelling. Under these requirements at least 41 spaces would be required. The subject has a total of 32 spaces and therefore does not conform with zoning with regards to the parking requirements. The subject is
considered to be a legal non-conforming use of the property. According to The City of San Diego Zoning Department reconstruction of non-conforming
properties is permitted for residential structures when there is a building permit that proves that at one time the property was legal conforming.
ASSESSMENT
Year: 2017 Parcel No.: 530-351-07 Land: $1,464,526
Improvements: $1,115,965
Total: $2,580,491
Taxes: $29,775.54 Status: Current
Taxes are considered reasonable for the property. According to the laws
of the state of California, the assessed value cannot be increased more than 2%
per year unless a sale of the property (as defined by California law or courts) takes place or unless new construction takes place. At those times the property will be immediately reassessed and a new tax bill will be issued.
Taxes, themselves, are limited to 1% of the "full cash value" except to the extent to which bonded indebtedness necessitates a higher rate. The subject tax rate
is $1,16967/$100.
SITE ANALYSIS
STEVEN L. BOWEN, MAI 29
Real Estate Appraiser/Consultant
EASEMENTS AND RESTRICTIONS As I have not received a Preliminary Title report, I assume there are no
restrictions or easements that would adversely affect the market value of the subject property.
PRESENT USE The present use of the subject property is an apartment complex.
FUTURE USE
The proposed use of the subject property is likely continuation as improved.
SITE ANALYSIS
STEVEN L. BOWEN, MAI 30
Real Estate Appraiser/Consultant
DESCRIPTION OF THE IMPROVEMENTS The improvements consist of a two and three story apartment complex
with tuck-under parking described as follows:
Layout: Two freestanding buildings over parking.
Size (Approximate): 14 1br/1ba 9 2br/1ba
1 2br/2ba 24 Total Units
SOURCE: Rent Roll
Age/Condition: The original 16 unit building was constructed about 1950. In approximately 1970 an additional building
was constructed. Both buildings are in average condition for their age.
Construction: Average
EXTERIOR Foundation: Concrete
Walls: Stucco
Roof: Flat
Ceiling Height: 8± feet
INTERIOR Floors: Slab with carpet or vinyl over
Doors & Windows: Standard wood pedestrian doors; metal frame glass
windows
Walls: Drywall
Ceilings: Sprayed acoustic
Plumbing: 1 or 2 restrooms with standard fixtures in each unit, 2 100-gallon water heater
Lighting: Incandescent lighting
Electrical: Electrical service in subject property considered adequate
SITE ANALYSIS
STEVEN L. BOWEN, MAI 31
Real Estate Appraiser/Consultant
Heating & Air Conditioning:
Individual gas wall heaters
Kitchen: Four burner gas stove/oven and hood, cast iron sink, garbage disposal, and refrigerator
Laundry Room: 2 laundry rooms: 2 washers and 2 dryers in one and 1 washer and 1 dryer in the other. Owned by the property owners.
Extras: None.
Adequacy of Design: Average
Yard Improvements: Plants, trees, and shrubbery
Parking: 8 tandem open with carports and 16 carports, 32 total parking spaces (= 1.33/Unit)
COMMENTS
The subject has 19,997 square feet of land area and 19,498 square
feet of rentable building area which indicates a Land to Building Ratio of 1.03 to 1.
Rents are as follows:
SITE ANALYSIS
STEVEN L. BOWEN, MAI 32
Real Estate Appraiser/Consultant
# of Units Type ±SF Rent/Mo.
1 1/1 640 $1,085
1 1/1 640 $1,195
1 1/1 640 $1,230
2 1/1 640 $1,250
3 1/1 640 $1,275
1 2/1 894 $1,365
1 2/1 894 $1,370
1 2/1 894 $1,430
2 2/1 894 $1,435
3 2/1 894 $1,450
1 1/1 692 $1,330
1 1/1 692 $1,350
1 1/1 692 $1,450
1 1/1 692 $1,505
1 1/1 692 $1,530
1 1/1 692 $1,550
1 2/1 1,537 $1,445
1 2/2 1,537 $440
24 19,498 23,685$
SITE ANALYSIS
STEVEN L. BOWEN, MAI 33
Real Estate Appraiser/Consultant
HIGHEST AND BEST USE Highest and Best Use is a basic premise of value, not an absolute fact, it
reflects the appraiser's opinion of the best use of the property based on an analysis of prevailing market conditions.
There are several basic factors that must be considered in order to make a proper determination of Highest and Best Use. The property must be physically capable of the use contemplated. The use must be legal or have
legal adaptability regarding zoning and other restrictions. The use must be profitable and have economic feasibility. The use must be financially feasible with an existing demand for the use contemplated and a market acceptance as
reflected by comparable market transaction.
PHYSICAL CAPABILITY
The subject property is a level site and does not appear to have any physical characteristics that would prohibit redevelopment of this property if it
were vacant as demonstrated by the apartment complex that has been on the site for the past 47 years to 67 years.
LEGAL ADAPTABILITY
The subject property is zoned RM-3-7 which is a Residential-Multiple
Unit zone and appears to be a legal non-conforming use of the property as improved.
ECONOMIC FEASIBILITY/DEMAND
The economic feasibility of developing the subject property is somewhat of a moot point since the subject is being appraised as being improved. There
would appear to be good demand for apartment complexes as demonstrated by the marketing time of the sales contained in this report which ranges from two
months to 3 ½ months.
SUMMARY
In your appraiser's opinion, one of the highest and best uses to which the land could be placed, if vacant, would be its development for multifamily residential.
The existing improvements were constructed in approximately 1950 and 1970. The property has average appeal and demonstrates average quality
construction. As shown in the approaches to value, the improvements add value to the land. I have concluded that the highest and best use of the subject is as improved.
SITE ANALYSIS
STEVEN L. BOWEN, MAI 34
Real Estate Appraiser/Consultant
UNIT SKETCH
SITE ANALYSIS
STEVEN L. BOWEN, MAI 35
Real Estate Appraiser/Consultant
ASSESSOR’S PARCEL MAP
SITE ANALYSIS
STEVEN L. BOWEN, MAI 36
Real Estate Appraiser/Consultant
FAULT MAP
SITE ANALYSIS
STEVEN L. BOWEN, MAI 37
Real Estate Appraiser/Consultant
REALQUEST DATA SHEET
SITE ANALYSIS
STEVEN L. BOWEN, MAI 38
Real Estate Appraiser/Consultant
TRANSACTION HISTORY REPORT
SITE ANALYSIS
STEVEN L. BOWEN, MAI 39
Real Estate Appraiser/Consultant
PROPERTY TAX DETAILS
VALUATION
VALUATION
STEVEN L. BOWEN, MAI 41
Real Estate Appraiser/Consultant
Your appraiser has analyzed the subject property value by two approaches. These approaches to value are the Sales Comparison Approach
and the Income Approach. The Cost Approach was considered but felt to be inappropriate for this type of property, as a typical buyer would place no weight
on it due to the age of the improvements. Each approach is discussed below:
SALES COMPARISON APPROACH The Sales Comparison Approach to estimate a value is based on the
principle of substitution that states that a person will not pay more for a property than it will cost to buy a comparable substitute property. When the property being appraised is replaceable in the market, its market value can be
estimated by the cost of purchasing an equally desirable substitute property. The price a typical purchaser pays is usually the result of an extensive
shopping process; consequently, it is important for the appraiser to be informed about the actions of buyers in the marketplace. It is also important to be aware of the actions of sellers, since the price is usually determined by
negotiations between the buyer and the seller in an arms-length transaction. Market Data, when carefully verified and analyzed, is good evidence of market
value because it represents the actions of sellers, purchasers-users, and investors.
The steps in the Sales Comparison Approach involve assembling and
verifying comparable transactions, comparing them to the subject property and adjusting for differences which yield an indicated value conclusion (see grid).
Your appraiser has analyzed over eight market transactions and has
included five transactions in this report upon which my conclusion of market value was partially predicated. These transactions are briefly outlined as
follows:
Market
Data No.Proximity to subject Sale Date # of Units Price/Unit
1 5 miles north 1/2016 20 $255,750
2 1 mile east 3/2017 5 $311,000
3 1 minle north 6/2016 34 $352,941
4 3 miles north 8/2016 180 $500,000
5 1 block northwest 7/2016 8 $440,625
Subject 24
SUMMARY OF IMPROVED TRANSACTIONS
DISCUSSION OF IMPROVED TRANSACTIONS
Market Data No. 1 is located at 2155 Felspar Street which is 5 miles north from the subject. This 20 unit apartment complex sold in January 2016
for $255,750 per unit. Amenities include laundry room and patios/balconies. There are 25 open parking spaces (= 1.25 spaces per unit). This property is
VALUATION
STEVEN L. BOWEN, MAI 42
Real Estate Appraiser/Consultant
located in Pacific Beach which is inferior to Point Loma; however, it is located ½ mile from the bay which is somewhat similar to the subject. This property
has inferior location, inferior unit mix, and inferior views compared to the subject and is considered a lower limit of value for the subject.
Market Data No. 2 is located at 3020 Oliphant Street in Point Loma which is 1 mile east from the subject. This five unit apartment building sold in March 2017 for $311,000 per unit. Amenities include laundry room. There are
five open parking spaces (= 1.00 spaces per unit). This property has slightly inferior location, inferior unit mix, slightly inferior amenities, slightly inferior parking, and inferior views; however, superior size, superior appeal, and
superior condition compared to the subject and is considered a slight upper limit of value for the subject.
Market Data No. 3 is located at 3788 Elliott Street which is one mile north from the subject. This 34 unit apartment complex sold in June 2016 for $352,941 per unit. Amenities include laundry room and pool. There are 12
open and 12 covered parking spaces (= 0.70 spaces per unit). This property has slightly inferior location, slightly inferior unit mix, and inferior parking;
however, superior ocean views overlooking Ocean Beach compared to the subject and is considered an upper limit of value for the subject.
Market Data No. 4 is located at 2930 Barnard which is three mile north
from the subject. This 180 unit apartment complex sold in August 2016 for $500,000 per unit. Amenities include balconies, clubhouse, conference room, fitness center, game room, pool & spa. There are 100 open parking spaces (=
0.55 spaces per unit). This property has slightly inferior location, inferior size, inferior parking, and inferior views; however, superior appeal, superior age,
superior condition, superior unit mix, and superior amenities compared to the subject and is considered an upper limit of value for the subject.
Market Data No. 5 is located at 3244 Nimitz Boulevard which is one
block north from the subject. This eight unit apartment building sold in July 2016 for $440,625 per unit. Amenities include washer and dry hook ups and balconies. There are four covered tandem and 12 covered spaces (= 2.50
spaces/unit). This property has inferior location, inferior unit mix, and inferior views; however, superior size, superior age, superior condition, slightly superior
amenities, and superior parking compared to the subject and is considered an upper limit of value for the subject.
Summary - The above transactions range between $255,750 per unit to
$500,000 per unit. The adjusted range as shown on the Adjustment Grid at the end of the Sales Comparison Approach is from $295,219 per unit to
$306,900 per unit or SAY $290,000 per unit to $310,000 per unit. It is your appraiser’s opinion that the value of the subject would fall towards the midpoint of this range at $300,000 per unit.
CONCLUSION After careful consideration and analysis, I have concluded that the
subject property has a Market Value, by the Sales Comparison Approach, of $300,000 per unit.
VALUATION
STEVEN L. BOWEN, MAI 43
Real Estate Appraiser/Consultant
Price Per Unit
24 UNITS x $300,000/UNIT = $7,200,000
VALUATION
STEVEN L. BOWEN, MAI 44
Real Estate Appraiser/Consultant
ADJUSTMENT GRID
Subject
CITY Point Loma
PROXIMITY
SALE DATE
SALES PRICE
SIZE (# OF UNITS) 24
SALES PRICE/UNIT
MARKET COND.
SALES TERMS
ADJ. SP/UNIT
LOCATION average inferior 0.10 s inferior 0.03 s inferior 0.03 s inferior 0.03 inferior 0.05
SIZE (# OF UNITS) 24 20 5 -0.10 34 180 0.10 8 -0.10
APPEAL average similar superior -0.05 similar superior -0.10 similar
AGE 67 & 47 yrs 43 yrs 47 yrs 50 yrs 1 yr -0.15 6 yrs -0.15
CONDITION average similar superior -0.05 similar superior -0.15 superior -0.15
UTILITY average simiar similar similar similar similar
QUALITY average similar similar similar similar similar
UNIT MIX 14 1/1, 9 2/1, & 1 2/2 inferior 0.05 inferior 0.05 s inferior 0.03 superior -0.13 inferior 0.05
AMENITIES laundry room, balc/patio similar s inferior 0.01 similar superior -0.10 s superior -0.03
PARKING 1.33 similar s inferior 0.03 inferior 0.05 inferior 0.05 superior -0.05
OTHER Some views inferior 0.05 inferior 0.05 superior -0.05 inferior 0.05 inferior 0.05
NET ADJ.
0.00
$500,000
-0.40
$300,000
0.00
34
4
Point Loma
3 mi N
8/2016
$90,000,000
180
$500,000
0.00
5
5 mi N
SUMMARY
0.00
$311,000 $282,353 $440,625
$3,525,000
0.00
$255,750
1 2
1/2016 3/2017 6/2016
3
$295,219
PROPERTY CHARACTERISTICS AND ADJUSTMENTS
ADJUSTMENT GRID
0.00 -0.20
INDICATED VALUE/SF
0.06 -0.33
0.00
0.20
20
0.00 0.00
$306,900 $301,670
5
$311,000
-0.03
$299,294
Pacific Beach
1 block NW
7/2016
Point Loma Point Loma
1 mi N1 mi E
Point Loma
$12,000,000
$352,941
8
$440,625
$1,555,000$5,115,000
$255,750
VALUATION
STEVEN L. BOWEN, MAI 45
Real Estate Appraiser/Consultant
GROSS INCOME MULTIPLIER (GIM) APPROACH
Another method of valuation is the Gross Income Multiplier (GIM) Approach. The GIM is the ratio of the annual rent divided into the selling price. If several similar properties have sold in the market recently, then the
GIM can be computed for those and applied to the anticipated annual rent for the subject property. GIM is useful for rental houses, duplexes, and simple
commercial properties when used as a supplement to other more well developed methods.
The first step under the Gross Income Multiplier Approach is to
determine the market rent that the property would most probably command on the open market as of the effective date of the appraisal. See the Discussion of
Rental Rates in the Income Approach. The Gross Income Multiplier Approach is based on the relationship
between Potential Gross Income and value interpreted in terms of a Gross
Income Multiplier. The Gross Income Multiplier is extracted directly from market sales and applied to a Potential Gross Income projection for the subject property. This appraiser has researched the market for properties similar to
the subject that have sold and for which the Potential Gross Income is known or can be closely estimated. Using the relationship that the Sales Price divided
by the Potential Gross Income equals the Gross Income Multiplier, a Gross Income Multiplier for each sale can be developed.
The Gross Income Multipliers developed from the market transactions in
this report are summarized as follows:
Market
Data No.
Gross
Income
Multiplier
(GIM)
1 13.47
2 13.76
3 16.17
4 12.46
5 16.90
DISCUSSION OF GROSS INCOME MULTIPLIERS (GIMS) The GIM's of the comparables contained in this report ranges from
Market Data No. 4 at 12.47 to Market Data No. 3 at 16.17. The sale closest to the Date of Value of this report is Market Data No. 2 at a 13.76 GIM. According to CoStar Comps GIM's for multifamily properties sold in 92106,
92107, and 92109 in the past year range from 13.26 to 18.8 with an average of 16.98. Broker opinions of GIM's for multifamily in Point Loma range from 14.0
to 15.0. I have concluded the market GIM for the subject would be towards the
VALUATION
STEVEN L. BOWEN, MAI 46
Real Estate Appraiser/Consultant
lower end of the range of the sales comparables in this report. I have concluded a 13.75 GIM for the subject.
CONCLUSION Therefore, the value conclusion by the GIM is as follows:
13.75 x $522,720 = $7,187,400 or SAY $7,190,000
RECONCILIATION OF APPROACHES The value conclusion based on the Sales Comparison Approach (price per
unit) is $7,200,000 and the value conclusion based on the Gross Income Multiplier is $7,190,000. Placing all weight on the Gross Income Multiplier approach to value, I have concluded that the market value indication by the
reconciliation of the Sales Comparison Approach of $7,190,000 is reasonable for the subject property.
Value via the Sales Comparison Approach SAY $7,190,000
VALUATION
STEVEN L. BOWEN, MAI 47
Real Estate Appraiser/Consultant
INCOME APPROACH The Income Approach to value relates the purchase price to the
anticipated Net Income which will provide a return on and of the total investment over the remaining economic life of the income producing property.
The first step under the Income Approach is to determine the market rent that the property would most probably command on the open market as of the effective date of the appraisal. Your appraiser has collected rental
comparables which are located in the subject neighborhood and are highly competitive with the subject property. Services provided vary and some are basically the same as the subject property. Each rental comparable was
carefully inspected to evaluate the comparability. This analysis results in the projected Annual Gross Income from which is deducted an allowance for
vacancy and collection loss. The result is called Effective Gross Income (EGI). The fixed, operating and reserve expenses are deducted resulting in the anticipated Net Operating Income (NOI). The Net Operating Income is
converted into an estimate of value by means of an Overall Capitalization Rate (OAR) that has been extracted from the market.
The Rental Rate, Vacancy/Collection Loss, Expenses, and Overall Capitalization Rate are discussed for the subject as follows:
To compare the income stream with actual rents to market rents, your
appraiser analyzed the rental rate for the subject property based on market rental comparables. Please refer to the Rental Comparables in the Market Data section of this report. These rents are summarized as follows:
Rent
Comp No.
Age in
YearsUnit Type Rent/Month
R-1 56 1/1 $1,300
R-2 64 1/1 $1,350
R-3 60 1/1 $1,700
2/1 $1,995
R-4 9 2/2 $2,100
R-5 57 2/1 $1,900
DISCUSSION OF RENTAL RATES
Overall the current market rent in Point Loma range, depending on unit
size, appeal, location, and parking, from $1,300 per month to $1,700 per month for one bedroom units and $1,900 per month to $2,100 per month for two bedroom units.
Rental Comparable No. 1 is located at 2777 Nimitz Boulevard which is ¼ mile southeast from the subject. The one bedroom units are 650 SF (compared to the subject between 640 SF – 692 SF) and rent for $1,300 per month. Unit
amenities include balconies. There is no off-street parking. Common
VALUATION
STEVEN L. BOWEN, MAI 48
Real Estate Appraiser/Consultant
amenities include laundry facilities. This property has inferior appeal, inferior location on a busy street, and inferior parking but it is located one block from
the harbor compared to the subject which is ½ mile from the harbor. This is considered a lower limit of rent for the subject's one bedroom units.
Rental Comparable No. 2 is located at 2912 Ingelow Street which is ¼ mile south from the subject. The one bedroom units are 500 SF and rent for $1,350 per month. Unit amenities include one assigned parking space.
Common amenities include laundry facilities. This property has inferior appeal and inferior unit size; however, superior location one block from the harbor. This is considered a lower limit of rent for the subject's one bedroom units.
Rental Comparable No. 3 is located at 2810 Keats Street which is ¼ mile southeast from the subject. The one bedroom units are 567 SF and rent for
$1,700 per month. The two bedroom units are 650 SF (compared to the subject at between 894 SF – 1,537 SF) and rent for $1,995 per month. Unit amenities include dishwashers and one assigned open parking space.
Common amenities include laundry facilities. This property has inferior unit size; however, superior location one block from the harbor. This is considered a
good indication of rent for the subject's one bedroom units and the smaller two bedroom units but a lower limit of rent for the subject’s larger two bedroom units.
Rental Comparable No. 4 is located at 3036 Oliphant Street which is one block east from the subject. The two bedroom units are 1,275 SF and rent for $2,100 per month. Unit amenities include dishwashers, balconies/patios, and
adequate underground garage parking, and washer/dry hookups. This property has superior unit size compared to the subject’s smaller two bedroom
units but inferior unit size compared to the subject’s larger two bedroom units, superior unit amenities, and superior parking compared to the subject. This is considered an upper limit of rent for the subject's smaller two bedroom units
but a good indication of rent for the subject’s larger two bedroom units. Rental Comparable No. 5 is located at 3114 Dickens Street which is ½
mile southwest from the subject. The two bedroom units are 800 SF and rent
for $1,900 per month. Unit amenities include one assigned open parking space. Common amenities include laundry facilities. This property has superior
appeal; however, inferior unit size compared to the subject. This is considered a good indication of rent for the subject's smaller two bedroom units and a lower limit of rent for the subject’s larger two bedroom units.
Summary – None of the apartment complexes in the subject area are offering rental concessions at this time. The subject's one bedroom units are
rented for between $1,085 per month and $1,550 per month, the smaller two bedroom units are rented for between $1,365 per month and $1,450 per month, and the larger two bedroom units are rented for between $440 per
month (manager’s unit) and $1,445 per month. It appears that the subject's actual rents are below the rental market as indicated by the Rental Comparables. I have concluded a Market Rent of $1,700 for the one bedroom
units, $1,900 for the smaller two bedroom units, and $2,100 for the larger two bedroom units.
VALUATION
STEVEN L. BOWEN, MAI 49
Real Estate Appraiser/Consultant
The subject property has a laundry room available to the tenants. Based on your appraiser's experience, a $10 to $30 per unit laundry allowance is
typical depending on unit mix. The subject has more one bedroom units than two bedroom units; therefore, a laundry income of $15 per unit was used in
this analysis.
VACANCY AND COLLECTION LOSS
The market has been good in San Diego for apartment complexes in the last year and it will likely remain good for years to come as discussed in the Highest and Best Use assuming a stable economy. The vacancy rates for the
rental comparables contained in this report are outlined as follows:
Rent
Comp.
No.
Vacancy (%)
R-1 0.00%
R-2 14.28%
R-3 6.67%
R-4 n/a
R-5 n/a
According to a study by Kidder Mathews First Quarter 2017 San Diego County Multifamily Report, the San Diego County multifamily residential vacancy was about 4.0% at the end of the 1st Quarter 2017. Most brokers use
a 5% vacancy factor for their proforma of the income and expenses. A 5% vacancy and collection loss factor is considered fair and reasonable
for the subject in this area due to tenant turnover and collection loss over the
economic life of the improvements.
EXPENSES
End of Year 2015 and 2016 were requested and received. To analyze the expenses of the subject property, current normal expenses were found in the
market and applied to that of the subject. Adjustments were made as applicable.
VALUATION
STEVEN L. BOWEN, MAI 50
Real Estate Appraiser/Consultant
ACTUAL ACTUAL APPRAISER
2015 2016 ESTIMATE
INCOME
Rental Income $244,536 $257,168 $518,400
Laundry $0 $0 $4,320
Gross Scheduled Income $244,536 $257,168 $522,720
Vacancy and Collection Loss 5% $12,227 $12,858 $26,136
Effective Gross Income $232,309 $244,310 $496,584
EXPENSES
Real Estate Taxes $29,107 $29,556 $83,000
Taxes and License $274 $274 $280
Property Insurance $5,670 $5,489 $5,500
Utilities $13,913 $14,962 $15,000
Trash Removal $3,238 $3,318 $3,400
Pest Control $684 $769 $1,800
Maintenance and Repairs $19,947 $16,003 $16,900
Off-Site Management $49,231 $47,081 $16,900
On-Site Management $12,600
Reserves $4,800
Total Expenses $122,064 $117,452 $160,180
Expenses of $6,674 per unit or 32.26% of Effective Gross Income is reasonable.
Real estate taxes are based on value of $7,080,000 with a tax rate of 1.16967 per $100 of assessed value or $83,000 per year.
Taxes and License is actual which appears reasonable.
Based off actual Property Insurance is $230 per unit and appears
reasonable.
Based off actual Utilities is $625 per unit and appears reasonable.
Based off actual Trash removal is $140 per unit and appears reasonable.
Pest control is $75 per unit and appears reasonable.
The Profit & Loss Statement has a category labeled Payroll Expenses
which is Off-Site and On-Site Management combined and the On-Site Management is based off a rent of $440 per month which is very low
compared to ½ off of market rent. Appraiser Estimate for Off-Site Management is 5% of Effective Gross Annual Income and for On-Site Management is ½ off market rent at $2,100 per month is $12,600
annually which equals $29,500 for a Payroll Expense Category. This appears reasonable.
Maintenance and Repairs is 5% of Effective Gross Annual Income.
Reserves are $200/unit.
Market Data No. 1 had a reported expense ratio of 31.68% which appears
reasonable. Market Data No. 2 had a reported expense ratio of 27.85% which
VALUATION
STEVEN L. BOWEN, MAI 51
Real Estate Appraiser/Consultant
appears low. Market Data No. 3 had a reported expense ratio of 30.32% which appears reasonable. Market Data No. 4 had a reported expense ratio of 39.62%
which appears reasonable. Market Data No. 5 had a reported expense ratio of 35.85% which appears reasonable. The subject's actual 2016 expense ratio is
48.08% which appears high due to the Payroll Expenses category previously discussed. The projected expense ratio is 32.19% which falls within the range of the comparables and falls within the expected range based on your
appraiser's experience.
OVERALL CAPITALIZATION RATE (OAR)
Direct capitalization is based on the relationship between Net Income and value interpreted in terms of an Overall Rate. The Overall Rate is extracted
directly from market sales and applied to a Net Income projection for the subject property. This appraiser has researched the market for properties similar to the subject that have sold and for which the Net Income is known or
can be closely estimated. Using the relationship that Net Income divided by Sales Price equals Overall Rate, an Overall Rate for each sale can be developed.
The Overall Rates developed from the market transactions in this report
are summarized as follows:
Market
Data No.
Overall Rate
(OAR)
1 4.70%
2 4.88%
3 4.00%
4 4.44%
5 3.50%
The OAR of the comparables contained in this report ranges from Market
Data No. 5 at 3.50% to Market Data No. 2 at 4.88%. The sale closest to the Date of Value of this report is Market Data No. 2 at a 4.88% OAR. According to
CoStar Comps OAR's for multifamily properties sold in 92106, 92107, and 92109 in the past year range from 3.10% to 5.55% with an average of 4.10%. Broker opinions of OAR's for multifamily in Point Loma range from 4.50% to
5.50%. I have concluded the market OAR for the subject would be towards the upper end of the range of the sales comparables in this report. I have concluded a 4.75% OAR.
CONCLUSION
Thus, the Income Approach can be computed as follows:
VALUATION
STEVEN L. BOWEN, MAI 52
Real Estate Appraiser/Consultant
14 UNITS X $1,700 /UNIT X 12 = $285,600
8 UNITS X $1,900 /UNIT X 12 = $182,400
2 UNITS X $2,100 /UNIT X 12 = $50,400
Laundry = $4,320
GROSS SCHEDULED INCOME $522,720
Less Vacancy and Collection Loss 5.00% $26,136
EFFECTIVE GROSS INCOME $496,584
Less Expenses 32.26% approximate $160,180
NET OPERATING INCOME (NOI) $336,404
CAPITALIZED AT 4.75% $7,082,189
Value via the Income Approach SAY $7,080,000
VALUATION
STEVEN L. BOWEN, MAI 53
Real Estate Appraiser/Consultant
RECONCILIATION The indicated values by the two approaches utilized in this report have
been brought forward:
SALES COMPARISON APPROACH $7,190,000 INCOME APPROACH $7,080,000
The strength and weaknesses of each approach are set forth below with consideration given to the purpose of the report, reliability of the approach, quantity and quality of the data, methods used, and the importance and
acceptability of the approach by typical apartment buyers and sellers.
SALES COMPARISON APPROACH RECONCILIATION
The Sales Comparison Approach was based on the analysis of five comparable transactions located in the subject’s region. This is a meaningful
analysis when the comparables can be directly related to the subject property without making unreasonable adjustments that cannot be supported with market evidence.
A typical buyer purchases properties in the subject area after an extensive shopping process. Under the Definition of Market Value in this
report, it seems logical that this approach could indicate market value since it could possibly reflect the thinking of typical apartment buyers and sellers.
Comparable improved sales data utilized in this approach are considered
reliable and adequate for this analysis; however, this was felt to be a fair method of valuation for the subject property due to the lack of larger apartment
sales. This approach was, therefore, given no weight in the final analysis.
INCOME APPROACH RECONCILIATION
The Income Approach is most applicable in the appraisal of income producing properties that are typically bought and sold based upon their investment characteristics. It can be the best indicator if the income and
expenses are estimated accurately, the Capitalization Rate is correct, and the proper techniques and methods have been used without mathematical error.
There were several similar and competitive properties plus subject actual rent to enable a reasonably accurate estimate of market rent to be made. The allowance for vacancy and collection loss was well supported with recent data
and discussions with knowledgeable real estate personnel in the area. The expenses were estimated from comparable properties, my past experience, and recent published data from various services.
The Overall Capitalization Rate selected was considered reliable since it was drawn from comparable sale properties sharing similar investment
characteristics at market. Furthermore, the method used in estimating this rate was market derived and did not require arbitrary judgments. Since this approach was based upon an analysis of reliable data appropriately processed
and subject is rented, it has been given all weight in the final analysis.
VALUATION
STEVEN L. BOWEN, MAI 54
Real Estate Appraiser/Consultant
FINAL ANALYSIS - CONCLUSION A complete review of the approaches to value was made for the purpose
of determining the most reliable valuation technique. The final value estimate is the blending of factors to which the typical investor would give most
consideration, namely the quality and quantity of available data as derived by comparable sale properties. The indication by the Income Approach is the most reliable due to the typical apartment investor buyer’s motives and the
sufficient data obtained in processing this approach; therefore, it was given all weight.
Based on all the foregoing data analysis, it is the opinion of your
appraiser that the Market Value of the subject property as of April 29, 2017, is:
$7,080,000
(SEVEN MILLION EIGHTY THOUSAND DOLLARS)
VALUATION
STEVEN L. BOWEN, MAI 55
Real Estate Appraiser/Consultant
MARKETING/EXPOSURE TIME Marketing period means the amount of time necessary to achieve an
open market sale of the property under current market conditions and market trends, assuming normal market exposure and the consummation of a sale
consistent with the terms and conditions of the FDIC definition of market value. Marketing period is not to be confused with absorption period or holding period.
Under Standard Rule 1-2B of the Uniform Standards of Professional Appraisal Practice, appraisers are required to comment on the estimate of exposure time linked to the market value estimate. Within Statement 6,
published by the Appraisal Standards Board, exposure time is defined as being the estimated length of time the property interest being appraised would have
been offered in the market place prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.
Marketing time for the comparables contained in this report are as
follows:
Market
Data
No.
Marketing Time
1 n/a
2 2 months
3 n/a
4 n/a
5 3 1/2 months
The above comparables have marketing times that range from two
months to 3 ½ months. I have concluded a marketing time of less than 12 months for the subject. The exposure time would have also been the same at the concluded market value.
MARKET DATA
MARKET DATA
STEVEN L. BOWEN, MAI 57
Real Estate Appraiser/Consultant
Market
Data
No.
Location Sale Date# of
Units
Price &
Price/UnitGIM OAR
1 2155 Felspar Street 1/8/2016 20 $5,115,000 13.47 4.70%
San Diego, CA 92109 $255,750
2 3020 Oliphant Street 3/3/2017 5 $1,555,000 13.76 4.88%
San Diego, CA 92106 $311,000
3 3788 Elliot Street 6/10/2016 34 $12,000,000 16.17 4.00%
San Diego, CA 92106 $352,941
4 2930 Barnard Street 8/9/2016 180 $90,000,000 12.46 4.44%
San Diego, CA 92110 $500,000
5 3244 Nimitz Blvd. 7/29/2016 8 $3,525,000 16.90 3.50%
San Diego, CA 92106 $440,625
IMPROVED SALES TRANSACTIONS SUMMARY
MARKET DATA
STEVEN L. BOWEN, MAI 58
Real Estate Appraiser/Consultant
IMPROVED SALES TRANSACTION MAP
MARKET DATA
STEVEN L. BOWEN, MAI 59
Real Estate Appraiser/Consultant
IMPROVED SALES TRANSACTION PHOTOS
1
2
MARKET DATA
STEVEN L. BOWEN, MAI 60
Real Estate Appraiser/Consultant
3
4
MARKET DATA
STEVEN L. BOWEN, MAI 61
Real Estate Appraiser/Consultant
5
MARKET DATA
STEVEN L. BOWEN, MAI 62
Real Estate Appraiser/Consultant
17-013
MARKET DATA NO. 1
LOCATION: 2155 Felspar Street, San Diego, CA 92109
LEGAL DESCRIPTION: LOT 1 TR 9868
SITE SIZE: 21,780 square feet
SHAPE: Rectangular
TOPOGRAPHY: Generally level at street grade
ZONE: RM-2-5, Multifamily Residential
UTILITIES: All are available to the site
STREETS: All are in to the site
IMPROVEMENTS: Two story, 20 unit, stucco apartment complex. 15,616± SF. 43 years old in
average condition. Amenities include laundry facilities and patios/balconies. 25 open parking spaces (= 1.25 spaces/unit).
UNIT MIX: 20 One bedroom one bath units
TRANSACTION: Grant Deed
Recorded: 1/8/2016 Document No.: 16-9887 DTT: $5,626.50, Full Value
SALES PRICE: $5,115,000 or $255,750 per unit
TERMS: All cash to seller
EXPOSURE TIME: n/a
CONFIRMED BY: CoStar Comps and public records
SELLER: A & H Warner Properties LLC
BUYER: Ellsworth Ents LP
ASSESSOR'S PARCEL NO.: 416-553-25
COMMENTS: Located in an area of other apartments and
MARKET DATA
STEVEN L. BOWEN, MAI 63
Real Estate Appraiser/Consultant
single family residences. Reportedly sold at a 13.47 Gross Income Multiplier and 4.70%
Overall Rate. Land to Building Ratio is 1.39 to 1.
MARKET DATA
STEVEN L. BOWEN, MAI 64
Real Estate Appraiser/Consultant
17-013
MARKET DATA NO. 2
LOCATION: 3020 Oliphant Street, San Diego, CA
92106
LEGAL DESCRIPTION: LOT 4 BLK 130 TR 305
SITE SIZE: 5,000 square feet
SHAPE: Rectangular
TOPOGRAPHY: Generally level at street grade
ZONE: RM-3-7, Multifamily Residential
UTILITIES: All are available to the site
STREETS: All are in to the site
IMPROVEMENTS: Two story, 5 unit, stucco apartment
building. 3,735± SF. 47 years old in average condition. Amenities include laundry room. 5 open parking spaces (=
1.00 spaces/unit).
UNIT MIX: 1 Studio units 4 One bedroom one bath units
TRANSACTION: Grant Deed Recorded: 3/3/2017
Document No.: 17-99778 DTT: $1,710.50, Full Value
SALES PRICE: $1,555,000 or $311,000 per unit
TERMS: All cash to seller
EXPOSURE TIME: 2 months
CONFIRMED BY: Jeff Diller, South Coast Commercial, (714) 474-4495, 9/29/2017
SELLER: Armao Family Trust
BUYER: Kenneth & Barbara Nieman Trust
MARKET DATA
STEVEN L. BOWEN, MAI 65
Real Estate Appraiser/Consultant
ASSESSOR'S PARCEL NO.: 530-343-04
COMMENTS: Located in an area of other apartments
and single family residences. Reportedly sold at a 13.76 Gross Income Multiplier
and 4.88% Overall Rate. Land to Building Ratio is 1.34 to 1.
MARKET DATA
STEVEN L. BOWEN, MAI 66
Real Estate Appraiser/Consultant
17-013
MARKET DATA NO. 3
LOCATION: 3788 Elliott Street, San Diego, CA 92106
LEGAL DESCRIPTION: LOT 2 TR 3603
SITE SIZE: 48,787 square feet
SHAPE: Irregular
TOPOGRAPHY: Generally level at street grade
ZONE: RM-3-7, Multifamily Residential
UTILITIES: All are available to the site
STREETS: All are in to the site
IMPROVEMENTS: Four story, 34 unit, stucco apartment complex. 37,745± SF. 50 years old in
average condition. Amenities include laundry facilities and pool. 12 open and 12 covered spaces (= 0.70 spaces/unit).
UNIT MIX: 20 One bedroom one bath units 15 Two bedroom two bath units
TRANSACTION: Grant Deed
Recorded: 6/10/2016 Document No.: 16-286598
DTT: $13,200.00, Full Value
SALES PRICE: $12,000,000 or $352,941 per unit
TERMS: 19.16% down, 1st Northern Trust Co,
$9,700,000
EXPOSURE TIME: n/a
CONFIRMED BY: Ty Miller, Miller Commercial Properties, (858) 704-4300, 10/10/2017
SELLER: Lapinski Family Trust
BUYER: Crest Partners-Poway One Danielson LLC
MARKET DATA
STEVEN L. BOWEN, MAI 67
Real Estate Appraiser/Consultant
ASSESSOR'S PARCEL NO.: 499-520-02
COMMENTS: Located in an area of other apartments
and single family residences; however, in the flight path. Reportedly sold at a 16.17
Gross Income Multiplier and 4.00% Overall Rate. Land to Building Ratio is 1.29 to 1.
MARKET DATA
STEVEN L. BOWEN, MAI 68
Real Estate Appraiser/Consultant
17-013
MARKET DATA NO. 4
LOCATION: 2930 Barnard Street, San Diego, CA 92110
LEGAL DESCRIPTION: 9.02 AC M/L IN LOT 211 TR 100036P
SITE SIZE: 408,092 square feet
SHAPE: Irregular
TOPOGRAPHY: Generally level at street grade
ZONE: RM-1-1, Multifamily Residential
UTILITIES: All are available to the site
STREETS: All are in to the site
IMPROVEMENTS: Three story, 180 unit, stucco apartment complex. 236,000± SF. 1 year old in
average condition. Amenities include balconies, clubhouse, conference room, fitness center, game room, pool & spa. 100
open parking spaces (= 0.55 spaces/unit).
UNIT MIX: 45 One bedroom one bath units 45 Two bedroom two bath units
45 Three bedroom one bath units 45 Three bedroom two bath units
TRANSACTION: Grant Deed Recorded: 8/9/2016 Document No.: 16-404666
DTT: $99,000, Full Value
SALES PRICE: $90,000,000 or $500,000 per unit
TERMS: 55% down, $40,500,000
EXPOSURE TIME: n/a
CONFIRMED BY: Kip Malo, Developer/Owner, 10/10/2017,
(858) 410-1200
SELLER: Monarch At Point Loma Owner LLC
MARKET DATA
STEVEN L. BOWEN, MAI 69
Real Estate Appraiser/Consultant
BUYER: LIPT San Diego Inc.
ASSESSOR'S PARCEL NO.: 441-160-06 and 449-720-02
COMMENTS: Located in an area of other apartments and single family residences. Reportedly sold at
a 12.46 Gross Income Multiplier and 4.44% Overall Rate. Land to Building Ratio is 1.73 to 1.
MARKET DATA
STEVEN L. BOWEN, MAI 70
Real Estate Appraiser/Consultant
MARKET DATA
STEVEN L. BOWEN, MAI 71
Real Estate Appraiser/Consultant
17-013
MARKET DATA NO. 5
LOCATION: 3244 Nimitz Boulevard, San Diego, CA
92106
LEGAL DESCRIPTION: PAR 1 TR 390
SITE SIZE: 5,663 square feet
SHAPE: Irregular
TOPOGRAPHY: Generally level at street grade
ZONE: RM-3-7, Multifamily Residential
UTILITIES: All are available to the site
STREETS: All are in to the site
IMPROVEMENTS: Two story over parking garage, 8 unit,
stucco apartment building. 8,769± SF. 6 years old in average condition. Amenities include washer and dry hook ups and
balconies. 4 covered tandem and 12 covered spaces (= 2.50 spaces/unit).
UNIT MIX: 8 One bedroom one bath units
TRANSACTION: Grant Deed Recorded: 7/29/2016
Document No.: 16-358252 DTT: $3,877.50, Full Value
SALES PRICE: $3,525,000 or $440,625 per unit
TERMS: 68.8% down, 1st Umpqua Bank, $1,100,000
EXPOSURE TIME: 3 ½ months
CONFIRMED BY: Ray Adams, Cushman & Wakefield, (858)
546-5456, 10/10/2017
SELLER: Casa Del Rio LLC
MARKET DATA
STEVEN L. BOWEN, MAI 72
Real Estate Appraiser/Consultant
BUYER: Idaho-Far & Three LP
ASSESSOR'S PARCEL NO.: 530-351-11
COMMENTS: Located on a very busy street with poor ingress and egress. Reportedly sold at a
16.90 Gross Income Multiplier and 3.50% Overall Rate. Land to Building Ratio is 0.65 to 1.
MARKET DATA
STEVEN L. BOWEN, MAI 73
Real Estate Appraiser/Consultant
Rental
Comp.
No.
Location Unit Type Rent / Month
R-1 2777 Nimitz Boulevard 1/1 $1,300
San Diego, CA 92106
R-2 2912 Ingelow Street 1/1 $1,350
San Diego, CA 92106
R-3 2810 Keats Street 1/1 $1,700
San Diego, CA 92106 2/1 $1,995
R-4 3036 Oliphant Street 2/2 $2,100
San Diego, CA 92106
R-5 3114 Dickens Street 2/1 $1,900
San Diego, CA 92106
RENTAL COMPARABLES SUMMARY
MARKET DATA
STEVEN L. BOWEN, MAI 74
Real Estate Appraiser/Consultant
RENTAL COMPARABLES MAP
MARKET DATA
STEVEN L. BOWEN, MAI 75
Real Estate Appraiser/Consultant
17-013
RENTAL COMPARABLE NO. R-1
TYPE: Apartment
BUILDING NAME: Point Loma Manor
LOCATION: 2777 Nimitz Boulevard, San Diego, CA 92106
DESCRIPTION: Two story, 35 unit, stucco apartment complex, 56± years old
and in average condition. Unit amenities include balconies. Common amenities include laundry facilities. No off-street parking.
CONFIRMED BY: Property Manager, 10/10/2017, (619) 325-7332
COMMENTS: Located on a busy street. Water and sewer included in the
rent. Vacancy is 0%.
Rental Data
BR / BA Size in SF Rent/Mo. Term in
Years
1/1 650 $1,300 MtM
MARKET DATA
STEVEN L. BOWEN, MAI 76
Real Estate Appraiser/Consultant
17-013
RENTAL COMPARABLE NO. R-2
TYPE: Apartment
LOCATION: 2912 Ingelow Street, San Diego, CA 92106
DESCRIPTION: Two story, 5 unit, stucco apartment building, 64± years old and in average condition. Unit amenities include one assign
parking space. Common amenities include laundry facilities.
CONFIRMED BY: Property Manager, 10/10/2017, (619) 521-4568
COMMENTS: Located in an area of other apartments and single family residences. Water and sewer included in the rent. Vacancy
is 14.28%.
Rental Data
BR / BA Size in SF Rent/Mo. Term in
Years
1/1 500 $1,350 MtM
MARKET DATA
STEVEN L. BOWEN, MAI 77
Real Estate Appraiser/Consultant
17-013
RENTAL COMPARABLE NO. R-3
TYPE: Apartment
BUILDING NAME: Harbor Villa Apartments
LOCATION: 2810 Keats Street, San Diego, CA 92106
DESCRIPTION: Two story, 15 unit, stucco apartment building, 60± years old
and in average condition. Unit amenities include dishwashers and one parking space. Common amenities include laundry facilities.
CONFIRMED BY: Property Manager, 10/10/2017, (619) 723-9035
COMMENTS: Located in an area of other apartments and single family
residences. Water and sewer included in the rent. Vacancy is 6.67%.
Rental Data
BR / BA Size in SF Rent/Mo. Term in Years
1/1 567 $1,700 MtM 2/1 650 $1,995 MtM
MARKET DATA
STEVEN L. BOWEN, MAI 78
Real Estate Appraiser/Consultant
17-013
RENTAL COMPARABLE NO. R-4
TYPE: Apartment
LOCATION: 3036 Oliphant Street, San Diego, CA 92106
DESCRIPTION: Two story over parking garage, wood condominium building, 9± years old and in average condition. Unit amenities
include dishwashers, balconies/patios, and washer/dryer hookups. Adequate underground parking.
CONFIRMED BY: Property Manager, (619) 574-0558
COMMENTS: Located in an area of other apartments and single family residences. Water and sewer included in the rent.
Rental Data
BR / BA Size in SF Rent/Mo. Term in Years
2/2 1,275 $2,100 MtM
MARKET DATA
STEVEN L. BOWEN, MAI 79
Real Estate Appraiser/Consultant
17-013
RENTAL COMPARABLE NO. R-5
TYPE: Apartment
BUILDING NAME:
LOCATION: 3114 Dickens Street, San Diego, CA 92106
DESCRIPTION: Two story, 5 unit, stucco apartment building, 57± years old
and in average condition. Unit amenities include one parking space. Common amenities include laundry facilities.
CONFIRMED BY: Property manager, (858) 776-0060
COMMENTS: Located in an area of other apartments and single family
residences. Water and sewer included in the rent. Vacancy is 20%.
Rental Data
BR / BA Size in SF Rent/Mo. Term in Years
2/1 800 $1,900 MtM
ADDENDUM
ADDENDUM
STEVEN L. BOWEN, MAI 81
Real Estate Appraiser/Consultant
RENT ROLL
ADDENDUM
STEVEN L. BOWEN, MAI 82
Real Estate Appraiser/Consultant
INCOME & EXPENSE STATEMENT 2015
ADDENDUM
STEVEN L. BOWEN, MAI 83
Real Estate Appraiser/Consultant
INCOME & EXPENSE STATEMENT 2016
ADDENDUM
STEVEN L. BOWEN, MAI 84
Real Estate Appraiser/Consultant
STEVEN L. BOWEN, MAI
QUALIFICATIONS OF APPRAISER
CERTIFIED GENERAL REAL ESTATE APPRAISER #AG002842, STATE OF CALIFORNIA
EDUCATION
1973 – Present Real Estate/Appraisal Courses:
Fair Lending and the Appraiser Standards of Professional Practice Risk Analysis
Subdivision Analysis Litigation Valuation
Condemnation Case Studies in Real Estate Valuation Valuation Analysis and Report Writing
Industrial Valuation Capitalization Theory and Techniques Basic Appraisal Principles
Single Family Residential Appraisal Real Estate Principles
Legal Aspects of Real Estate Principles of Real Estate Appraisal Real Estate Finance
Real Estate Practice Real Estate Economics
Real Estate Brokers Course Real Estate Salesman Course
1970 B.S. Degree - San Diego State University
1958 – 1965 Graduated other grades in San Diego, California EXPERIENCE
1973 – Present Independent Fee Appraiser 1975 – 1977 Real Estate Broker DBA Steven L. Bowen & Associates
1974 – 1975 Real Estate Salesman 1973 University Teacher in Korea for Business Investors &
Professionals
1972 – 1973 County of San Diego, Administrative Assistant 1970 – 1972 United States Army
STEVEN L. BOWEN & ASSOCIATES REAL ESTATE APPRAISERS/CONSULTANTS
9522 SELTZER COURT, SAN DIEGO, CA 92123-3248 TELEPHONE (858) 571-9000 FAX (858) 571-9003 E-Mail: [email protected] Web Site: www.sandiegoappraisers.com
ADDENDUM
STEVEN L. BOWEN, MAI 85
Real Estate Appraiser/Consultant
PROFESSIONAL AFFILIATIONS/POSITIONS
Appraisal Institute
Currently hold MAI and SRA Designations (Life Member) MAI Designation 1983 President of San Diego Chapter 1987
Recreation Committee Chairman 2004 - 2006 National & Regional Activities
Review and Counseling Division - San Diego Chairman 1988 – 1997 Admissions Committee 1984 – Present
Society of Real Estate Appraisers
SRPA Designation 1981
SRA Designation 1981
Director 1983/84 and 1984/85 Admissions Committee 1984/86
The Appraisal Foundation
National Activities
Member - Appraisal Standards Board Special Task Force 1996 Member - Uniform Standards of Professional Appraisal Practice Issues
Resource Panel (to rewrite USPAP) 1997 – 1998 National Association of Realtors
San Diego Board of Realtors - Realtor Member San Diego Multiple Listing Service
TYPES OF PROPERTY APPRAISED
Commercial, Service Stations, Multiple Family Dwellings, Rural Land, Office
Buildings, Shopping Centers, Retail, Industrial, High Rises, Raw Land, Wetlands, Master Planned Communities, Golf Courses, Ranches, Auto
Dealerships, Hotels/Motels, Leasehold Interests, Subdivisions, Easements, TV Stations, Single Family Residences, Special Use Properties & Eminent Domain.
OTHER QUALIFICATIONS
Instructional - California Community College Teaching Credentials in
Real Estate Expert Witness - Testified on real estate values in Superior Court in San Diego
and Los Angeles and Federal District Bankruptcy Court in San Diego &
Arbitration
ADDENDUM
STEVEN L. BOWEN, MAI 86
Real Estate Appraiser/Consultant
SOME MORE IMPORTANT ASSIGNMENTS FOR THIS APPRAISER
FEDERAL AGENCIES
Bankruptcy Court of San Diego Bureau of Internal Revenue Service
Federal Asset Disposition Association Federal Deposit Insurance Corp. Federal National Mortgage Association
General Services Administration H.U.D.
U.S. Department of the Navy U.S. Postal Service U.S. Department of Fish & Wildlife
STATE, COUNTY, & CITY California Department of Transportation
California Department of Fish & Game Centre City Development Corporation City of Chula Vista
City of El Cajon City of La Mesa
City of National City City of Oceanside City of San Diego
County of San Diego
Oceanside Wastewater District Grossmont Union High School
Lakeside Water District North County Transit Ramona Unified School District
San Diego Housing Commission San Diego Metropolitan Development
Board Solana Beach School District San Diego Unified Port District
Wildlife Conservation Board
AUTO & TRANSPORTATION RELATED
Arizona Eastern & Pacific Railroad
Carlsbad Volvo Classic Motors Auto Agency Chrysler Credit Corporation
Chevron Oil Corporation Dixon Ford Auto Agency
Escondido Acura Exxon Oil Company Fairway Cadillac Auto Dealership
Grihalva Chevrolet Kearny Mesa Dodge La Mesa RV Center
Mobil Oil Company
Quality Chevrolet
Pacific Honda Padre Dodge San Diego Volvo
Santa Fe Railroad. Inc. Shell Oil Company
Southern Pacific Transportation Co. Sunroad Mitsubishi Terry Allen Datsun Auto Agency
Texaco Oil Company Thrifty Oil Company UNOCAL
Westcott Volvo
ADDENDUM
STEVEN L. BOWEN, MAI 87
Real Estate Appraiser/Consultant
BANKS, MORTGAGE, LIFE INSURANCE, & LENDING INSTITUTIONS
American First Mortgage American Thrift Savings & Loan
American Savings Bank American United Life Insurance Co. Bank of America
Bank of Commerce Bank of Hong Kong Bank of Southern California
Bank of the West Benefit Savings
California Commerce Bank Center Bank Continental Bank
County Savings Bank Dai-Ichi Kangyo Bank
Eastern Savings Bank Fidelity Federal First Charter Bank
First Commercial Bank First Interstate Bank First National Mortgage
Glendale Federal Savings & Loan GMAC Commercial Mortgage
Great Western Bank Home Federal Savings & Loan Indianapolis Life Insurance Co.
Independent Bank La Jolla Bank & Trust Co.
Lafayette Life Insurance Co. Mellon Bank
Money Store National Security Mortgage Co. Nations Bank
Nationwide Life Insurance Co. New Life Assurance Company Old Stone Bank
Pacific Commerce Bank Provident Bank
Rancho Funding San Diego County Credit Union San Diego National Bank
Santa Barbara Savings & Loan Sanwa Bank
Southwest Bank Southern Farm Bureau Life Insurance Co.
Sun Life Assurance Company Union Bank of California Union Central Life Insurance
U. S. Mortgage Company Valley Federal Savings
Wells Fargo Bank Western Financial Westlands Bank
Weyerhauser
ATTORNEYS
Jack Brumley, Attorney Tim Cohelan, Attorney Richard Edwards, Attorney
Luce, Forward, Hamilton, & Scripps Paul Geitner, Attorney
Richard Gore, Attorney Daniel Grindle, Attorney Thomas Harnsberger, Attorney
Lionel P. Hernholm Jr., Attorney William Hinchy, Attorney William Houts, Attorney
Andrew Wagner, Attorney
Hunter & Ryan, Attorneys Lesh & Lesh, Attorneys Bernard Levy, Attorney
Michael K. Marlow, Attorney Nelson Millsberg, Attorney
Tom Murphy, Attorney Jeffrey Patterson, Attorney Pederson Law Office
A.L. Renick, Attorney Thomas Ryan, Attorney Stan Smith, Attorney
ADDENDUM
STEVEN L. BOWEN, MAI 88
Real Estate Appraiser/Consultant
MISCELLANEOUS Barona Road Christmas Tree Farm
Boney's Market Bonita Professional Plaza Brentwood Mobile Home Park
Cabrillo Theater Channel 6 TV Chicago Title Insurance Co.
Clairemont Traffic Court Coronado Hospital
Commonwealth & Title Insurance Co. Executive Complex Highrise/Hotel Fireman's Fund Insurance
Granger Office Building Girard Medical Building
Holsum Bakery Hyatt Regency Hotel Inn at La Jolla, et. al..
Irish Oaks Horse Ranch Kaiser Cement Co. KOGO TV
La Jolla Village Hotel La Mesa Racquetball Club
Linda Vista Shopping Center Nelson & Sloan Sand & Gravel Otay Industrial Park
Pacific Telephone Co.
Pacific Drive-in Theatre Payne Industrial Park Promontory Business Park
Rancho San Diego Assessment District Rancho Santa Fe Village Square Shopping Center
Rancho Santa Fe Association Regency Plaza Hotel
Rick Engineering Safeco Title Insurance Company San Diego Gas & Electric Company
San Dieguito Engineering Sandford Hotel/Senior Center
Sheraton Inn St. Charles Monastery St. Paul Title Insurance Company
Sunbow Master Planned Community Sunroad Pacific Plaza Sweetwater Plaza Shopping Center
Title Insurance & Trust Company U. S. Elevator
United Cerebral Palsy Woodward Sand Company