vpa report frame (land) · 2020-01-13 · mr. tracy carter somersett owners association page 1 6490...

Appraisal Report

Proposed Easement for Ventana Ridge N of Peavine Creek Rd

Reno, Washoe County, Nevada 89523

Report Date: October 15, 2019

FOR:

Somersett Owners Association Mr. Tracy Carter

General Manager 7560 Town Square Way

Reno, NV 89523

Valbridge Property Advisors | Las Vegas | Reno

6490 S. McCarran Blvd. #51 Reno, NV 89509 775-204-4100 phone Valbridge File Number: 702-242-6391 fax NV02-19-0009 valbridge.com

Mr. Tracy Carter

Somersett Owners Association

Page 1

6490 S. McCarran Blvd. #51

Reno, NV 89509

775-204-4100 phone

702-242-6391 fax

valbridge.com

October 15, 2019

Karen Park, MAI, ASA

775-204-4100

[email protected]

Mr. Tracy Carter

General Manager


7560 Town Square Way

Reno, NV 89523

RE: Appraisal Report

Proposed Easement for Ventana Ridge

N of Peavine Creek Rd


Dear Mr. Carter:

In accordance with your request, we have performed an appraisal of the above referenced property by

appraising the adjacent proposed residential development in a before condition and after condition

as it pertains to a requested easement across your property. This appraisal report sets forth the

pertinent data gathered, the techniques employed, and the reasoning leading to our value opinions.

This letter of transmittal is not valid if separated from the appraisal report.

The adjacent proposed residential development, as referenced above, is located north of 0 Peavine

Pines Court and continuing westward to north of 0 Sandestin Drive, in the city of Reno, Nevada and is

further identified as tax parcel numbers 081-160-17 thru -19, -28, -34, and 208-510-10. This site is a

206.85-acre or 9,010,386-square-foot parcel. The subject project is six vacant undeveloped parcels,

totaling 206.82 acres, collectively known as Ventana Ridge, with a proposed 70 to 99 lot single family

residential development. It is located northeast of the Somersett subdivision and north of the

Northgate development within the McQueen Neighborhood Planning Area in northwestern Reno. You

have been asked to grant a 63-foot wide by approximate 230-foot easement, encompassing

approximately 12,350 square feet on APN 232-510-03, to the adjacent property owner, Ventana Point,

LLC.

We developed our analyses, opinions, and conclusions and prepared this report in conformity with the

Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code

Mr. Tracy Carter


Page 2

of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; and

the requirements of our client as we understand them.

The client in this assignment is Somersett Owners Association and the intended user of this report is

Somersett Owners Association and no others. The sole intended use is for negotiation of an easement

acquisition price. The value opinions reported herein are subject to the definitions, assumptions,

limiting conditions, and certifications contained in this report.

The findings and conclusions are further contingent upon the following extraordinary assumptions

and/or hypothetical conditions, the use of which might have affected the assignment results:

Extraordinary Assumptions: • This appraisal assignment is based on the extraordinary assumption that in the “before

condition,” no viable easement from Peavine Pines Court exists. If found to be false, it might

impact the assignment results.

• This appraisal assignment is based on the extraordinary assumption that the easement on Tract

Map 4628 is considered a relocatable easement on the City of Reno open space land and not

a set easement. The relocatable easement will now be used to connect the proposed Somersett

easement across a portion of APN 232-510-03 to Ventana Ridge project on APN 081-160-17.

If found to be false, it might impact the assignment results.

• This appraisal assignment is based on the extraordinary assumption that the holder of the

dominant estate (Ventana Ridge) will pay for all costs associated with designing, creating and

recording the easement. If found to be false, it might impact the assignment results.

Hypothetical Conditions: • The appraisal will employ the use of a hypothetical condition. The hypothetical condition will

be that the proposed easements exist in the "after condition" as of the current date of value,

when in fact the Somersett easement does not exist. The use of this hypothetical condition

could affect the assignment results and conclusions.

Based on the analysis contained in the following report, our conclusions are summarized as follows:

Mr. Tracy Carter


Page 3

The market value of the easement of the servient estate was performed by appraising the market value

of the Somersett Owners Association land and analyzing the impact the easement has on the property

rights. We concluded to a market value of $32,300 for the easement. This method only analyzes the

impact on the market value of the subject property; however, the dominant estate that will be created

as a result of the access easement will increase the market value of the land owned by the developer

of Ventana Ridge. The increase in the market value of the Ventana Ridge land has been performed by

using a before and after valuation method. Our conclusion is that the market value will increase by up

to $900,000 as a result of the access easement as there does not appear to be any other viable or

economically feasible options. Therefore, the creation of the access easement is more valuable to

Ventana Ridge and should be considered in the negotiation of the price of the easement.

Although the full increase in the market value of the easement could be sought by the Somersett

Owners Association, it is not reasonable to expect that the developer of Ventana Ridge will pay the full

amount. We have typically seen a meeting of the minds at up to 50% of the increase in the market

value of the property. In business, this could be viewed as a joint venture, where both parties share in

the added value, after deductions for associated costs of designing, creating, and recording of the

easement. Whether the split is 50/50 or some other percentage, this would be a matter for

negotiations. It is our opinion that a reasonable range would be somewhere between 25% and 50%

of the value enhancement due to the creation of the access easement.

Respectfully submitted,

Valbridge Property Advisors | Las Vegas | Reno


Managing Director

Nevada License #A.0207475-CG

License Expires 03-31-2021

Matthew Lubawy, MAI, CVA

Senior Managing Director



PROPOSED EASEMENT FOR VENTANA RIDGE

TABLE OF CONTENTS

© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page i

Table of Contents

Cover Page

Letter of Transmittal

Table of Contents ....................................................................................................................................................................... i

Summary of Salient Facts ....................................................................................................................................................... ii

Aerial and Front Views ............................................................................................................................................................ iv

Location Map ............................................................................................................................................................................ vii

Introduction ................................................................................................................................................................................. 8

Scope of Work ............................................................................................................................................................................ 2

Regional and Market Area Analysis .................................................................................................................................... 4

City and Neighborhood Analysis ..................................................................................................................................... 15

Site Description ....................................................................................................................................................................... 19

Subject Photos ......................................................................................................................................................................... 31

Assessment and Tax Data ................................................................................................................................................... 33

Housing Market Analysis ..................................................................................................................................................... 35

Highest and Best Use ............................................................................................................................................................ 41

Land Valuation ......................................................................................................................................................................... 42

Valuation Summary ............................................................................................................................................................... 63

General Assumptions and Limiting Conditions .......................................................................................................... 65

Certification – Karen Park, MAI, ASA ............................................................................................................................... 70

Certification – Matthew Lubawy, MAI, CVA ................................................................................................................. 71

Addenda .................................................................................................................................................................................... 72

Subject Photographs ........................................................................................................................................................ 73

Legal Description ............................................................................................................................................................... 74

Letter of Engagement ...................................................................................................................................................... 77

Glossary ................................................................................................................................................................................. 85

Qualifications ...................................................................................................................................................................... 93

Valbridge Property Advisors Information / Office Locations ........................................................................... 99


SUMMARY OF SALIENT FACTS

© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page ii

Summary of Salient Facts

Easement 12,350 square feet (approximately)

Portion of APN #232-510-03

Owned by Somersett Owners Association

The value of the easement is based on the higher of two values: 1) value of the easement of the servient

estate by valuing the easement as part of the whole property, 2) added value of property held by the

dominant easement (using a before and after valuation method).

Property Identification

Property Name Ventana Ridge

Property Address N of Peavine Pines Ct


Latitude & Longitude 39.546897, -119.917276

Census Tract 2301

Tax Parcel Numbers 081-160-17 thru -19, -28, -34, and 208-510-10

Property Owners Ventana Pointe LLC

Site

Zoning

Specific Plan District, General Rural, Sgl Fam Res (15,000 Sq

Ft), (9,000 Sq Ft), Open Space (SPD, GR, SF-15, SF-9/OS)

FEMA Flood Map No. 32031C3016G, 32031C3017G

Flood Zone Zone X (unshaded)

Land Area 206.850 acres

Number of Units 85

Valuation Opinions

Highest & Best Use - As Vacant Develop with single family residences as allowed by zoning

and the master plan

Reasonable Exposure Time 12 to 18 months

Reasonable Marketing Time 12 to 18 months


SUMMARY OF SALIENT FACTS

© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page iii












AERIAL AND FRONT VIEWS

© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page iv

Aerial and Front Views

AERIAL VIEW FAR



© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page v

AERIAL VIEW CLOSE



© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page vi

FRONT VIEW OF PROPOSED EASEMENT

REAR VIEW OF PROPOSED EASEMENT


LOCATION MAP

© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page vii

Location Map


INTRODUCTION

© 2019 VALBRIDGE PROPERTY ADVISORS | Reno Page 8

Introduction

Client and Intended Users of the Appraisal The client in this assignment is Somersett Owners Association and the sole intended user of this report

is Somersett Owners Association. Under no circumstances shall any of the following parties be entitled

to use or rely on the appraisal or this appraisal report:

i. The borrower(s) on any loans or financing relating to or secured by the subject property,

ii. Any guarantor(s) of such loans or financing; or

iii. Principals, shareholders, investors, members or partners in such borrower(s) or guarantors.

Intended Use of the Appraisal The sole intended use of this report is for negotiation of an easement acquisition price.

Real Estate Identification The adjacent proposed residential development, is located N of Peavine Creek Rd, Reno, Washoe

County, Nevada 89523. The site is further identified by the tax parcel number 081-160-17 thru -19, -

28, -34, and 208-510-10. The subject project is six vacant undeveloped parcels, totaling 206.82 acres,

collectively known as Ventana Ridge, with a proposed 70 to 99 lot single family residential

development. It is located northeast of the Somersett subdivision and north of the Northgate

development within the McQueen Neighborhood Planning Area in northwestern Reno. You have been

asked to grant a 63-foot wide by approximate 230-foot easement, encompassing approximately

12,350 square feet on APN 232-510-03, to the adjacent property owner, Ventana Point, LLC.

Legal Description Please see the Addenda for the complete Legal Description of Ventana Ridge.

Use of Real Estate as of the Effective Date of Value As of the effective date of value, the site was a vacant land property.

Use of Real Estate as Reflected in this Appraisal The opinion of value for the site as is reflects use as residential (single-family) land.

Ownership of the Property According to Washoe County Assessors, title to the property known as Ventana Ridge is vested in

Ventana Pointe LLC. Title to the property of the easement is Somersett Owners Association.

History of the Property Ownership of a portion of the property has been acquired within the past three years. When

appropriate, we have considered and analyzed the known history of the property in the development

of our opinions and conclusions.

A portion of the project was acquired in November 14, 2018 for $600,000, or roughly $0.40 per usable

square foot. This sale was two parcels, 081-160-34 and 208-510-10, totaling 34.666 acres. It was listed


INTRODUCTION


for sale at $700,000 with an expired tract map for a proposed 24 lot single family residential

development. It was an assemblage sale by adjacent landowner and created the current subject

project. There is easy access to terminus of existing road Sandestin Dr and utility right of way easement

for TMWA water storage tank on the eastern project boundary. Our final opinion of market value of

the entire project is a lower price per square foot than the recent transfer/contract due primarily to

greater size, and the more mountainous topography/terrain of the project as a whole.

Listings/Offers/Contracts The subject is not currently listed for sale or under contract for sale..

Type and Definition of Value The appraisal problem is to develop an opinion of the market value of the property. “Market Value,”

as used in this appraisal, is defined as “the most probable price that 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:

• Buyer and seller are typically motivated.

• Both parties are well informed or well advised, each acting in what they consider their own best

interests;

• A reasonable time is allowed for exposure in the open market;

• Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements

comparable thereto; and

• The price represents the normal consideration for the property sold unaffected by special or

creative financing or sale concessions granted by anyone associated with the sale.”1

The value conclusions apply to the value of the subject property under the market conditions

presumed on the effective date of value.

Please refer to the Glossary in the Addenda section for additional definitions of terms used in this

report.

Valuation Scenarios, Property Rights Appraised, and Effective Dates of Value Per the scope of our assignment we developed opinions of value for the subject property under the

following scenarios of value:

We completed an appraisal inspection of the subject property on August 7, 2019.

1 Source: Code of Federal Regulations, Title 12, Banks and Banking, Part 722.2-Definitions

Valuation Scenario Effective Date of Value

As Is Market Value of the Easement Interest August 7, 2019


INTRODUCTION


Date of Report The date of this report is October 15, 2019.

List of Items Requested but Not Provided • All information requested for the assignment has been provided.

Analysis/Comments on Site In June 2007, the SPD zoning and Development Standards Handbook for Ventana Pointe (LDC04-

00175) was approved via Ordinance 5930. At that time the project was three parcels (APNs 081-160-

17, -18, -19), for a total of 132.19 acres. The principal access was to be from Peavine Pines Ct, across

City of Reno open space land. A second access was to be achieved through an extension of Sunline

Dr, across City of Reno open space land. Cluster residential development would occur mainly in the

southern portion of the site, covering approximately 30 acres, with a maximum of 70 lots, each a

minimum of 7,000 square feet. Approximately 78% of the project would be open space. Streets would

be reduced at 24 feet across with parking allowed on only one side. Special use permits for hillside

development, disturbance of drainageways, and cuts greater than 20 feet and fills in excess of 10 feet

were also approved. See Tentative Map (2007) that follows.

Following approval, the original tentative map expired, and the project was never constructed.

In December 2017, a Rezone, Tentative Map and Special Use Permit Application for Ventana Ridge was

submitted to the City of Reno. At this time the project was five parcels (APNs 081-160-17, -18, -19, -

34, and 208-510-10), for a total of 166.8 acres and a zoning change was being requested from SF-15

and SF-9/OS to SPD for the last two parcels. The number of lots had increased to 85 with a maximum

of 99. Primary access to the project will now be via an extension of Sandestin Dr with secondary access

via an extension of Sunline Dr, utilizing an existing access easement across City of Reno open space

land. Utilities will be extended from existing developments to minimize impacts on nearby

unincorporated areas/public lands. The lots now range in size from 7,000 square feet to 14,309 square

feet, with an average of 9,504 square feet, and cover approximately 35 acres. The project includes 144

acres of common open space.

At the April 18, 2018 meeting of the Planning Commission, a new tentative map had been submitted

to develop a total of 70 lots, change of zoning, and special use permits for cluster development, hillside

development, and grading cuts/fills. See Tentative Map 2018 that follows. During the meeting,

concerns were raised about the steepness of the access road from Peavine Pines Court, headlights and

taillights of vehicles using this road, and fire safety. At the conclusion of the meeting, the tentative

map and application were rejected (LDC18-00041) by the City of Reno Planning Commission.

For this assignment, the client provided the appraisers with a revised, proposed map for Ventana Ridge

with 57 lots, in two distinct portions of the project. An eastern portion will have access via the extension

of Sandestin Dr. A western portion will have access via a proposed easement access from Peavine

Creek Rd, across the border of a Somersett common area parcel (APN 232-510-03), and then utilizing

a realignment of an existing access easement across City of Reno open space land. See Proposed Map

(2019) that follows.


INTRODUCTION


Per an email with Sienna Reid, Senior Planner in the Community Development Department within the

City of Reno:

• Tract map 4628 shows a 51-foot access easement from Peavine Pines Ct to APN 081-160-17.

There is no public road proposed with this tract map. Roadways constructed to serve new

development are constructed by the developer, not the City, and must have associated legal

access rights if they are off-site.

• As of August 19, 2019, an application to amend the zoning on the project parcels to SPD has

not been submitted. Per RMC 18.08.101(d), existing SPD designations are recognized, but the

City does not accept new applications for this zoning designation. A zoning map amendment

to another zoning district would follow the zoning map amendment process, which requires

public hearing before the Planning Commission and City Council and has no timeframe for

review.

• Although APN 081-160-28 is owned by Ventana Pointe LLC, it has not been included in

previous developmental applications. The topography for that parcel is very constrained and

likely would remain General Rural zoning with one dwelling unit per 40 acres. It would also

require an annexation application as it is outside the City of Reno limits, but within its sphere

of influence.


INTRODUCTION


VENTANA POINTE TENTATIVE MAP - 2007


INTRODUCTION


VENTANA RIDGE TENTATIVE MAP - 2018


INTRODUCTION


VENTANA RIDGE TENTATIVE MAP – 2018 (OFF-SITE GRADING FOR PEAVINE PINES COURT)


INTRODUCTION


VENTANA RIDGE PROPOSED MAP - 2019


INTRODUCTION


Assumptions and Conditions of the Appraisal This appraisal assignment and the opinions reported herein are subject to the General Assumptions

and Limiting Conditions contained in the report and the following extraordinary assumptions and/or

hypothetical conditions, the use of which might have affected the assignment results.

Extraordinary Assumptions

• This appraisal assignment is based on the extraordinary assumption that in the “before











Hypothetical Conditions

• The appraisal will employ the use of a hypothetical condition. The hypothetical condition will





SCOPE OF WORK


Scope of Work

The elements addressed in the Scope of Work are (1) the extent to which the subject property is

identified, (2) the extent to which the subject property is inspected, (3) the type and extent of data

researched, (4) the type and extent of analysis applied, (5) the type of appraisal report prepared, and

(6) the inclusion or exclusion of items of non-realty in the development of the value opinion. These

items are discussed as below.

Extent to Which the Property Was Identified The three components of the property identification are summarized as follows:

• Legal Characteristics - The subject was legally identified via a Washoe County Assessor's map,

Washoe County GIS aerial mapping, and a physical inspection by Karen Park.

• Economic Characteristics - Economic characteristics of the subject property were identified via

a comparison to similar properties, as well as a comparison to properties with similar locational

and physical characteristics.

• Physical Characteristics - The subject was physically identified via a partial inspection of the

property performed by Karen Park.

Extent to Which the Property Was Inspected We inspected the subject on August 7, 2019. The southwestern and southeastern portions of the

property were walked upon. Due to the mountainous terrain and size of the site, the northern portions

were viewed from aerial photography in Google Maps and the Washoe Regional Mapping System.

Type and Extent of Data Researched We researched and analyzed: (1) market area data, (2) property-specific market data, (3) zoning and

land-use data, and (4) current data on comparable listings and transactions. We also interviewed

people familiar with the subject market/property type.

Type and Extent of Analysis Applied (Valuation Methodology) We observed surrounding land use trends, the condition of any improvements, demand for the subject

property, and relevant legal limitations in concluding a highest and best use. We then valued the

subject based on that highest and best use conclusion.

Appraisers develop an opinion of property value with specific appraisal procedures that reflect three

distinct methods of data analysis: the cost approach, sales comparison approach, and income

capitalization approach. One or more of these approaches are used in all estimations of value.

• Sales Comparison Approach - In the sales comparison approach, value is indicated by recent

sales and/or listings of comparable properties in the market, with the appraiser analyzing the

impact of material differences in both economic and physical elements between the subject

and the comparables.

• Direct Capitalization: Land Residual Method - The land residual methodology involves

estimating the residual net income to the land by deducting from total potential income the


SCOPE OF WORK


portion attributable to the improvements, assuming development of the site at its highest and

best use. The residual income is capitalized at an appropriate rate, resulting in an indication of

land value.

• Direct Capitalization: Ground Rent Capitalization – A market derived capitalization rate is

applied to the net income resulting from a ground lease. This can represent the leased fee or

fee simple interest, depending on whether the income potential is reflective of a lease in place

or market rental rates.

• Yield Capitalization: Subdivision Development Method – Also known as Discounted Cash Flow

Analysis (DCF), the methodology is most appropriate for land having multiple lot development

in the near term as the highest and best use. The current site value is represented by

discounting the anticipated cash flow to a present value, taking into consideration all necessary

costs of development, maintenance, administration, and sales throughout the absorption

period.

• The value of the easement is based on the higher of two values: 1) value of the easement of

the servient estate by valuing the easement as part of the whole property, 2) added value of

property held by the dominant estate (using a before and after valuation method).

All of these approaches to value were considered. We assessed the availability of data and applicability

of each approach to value within the context of the characteristics of the subject property and the

needs and requirements of the client. Based on this assessment, we relied upon the sales comparison

approach. The Cost Approach was not used because the cost approach is not applicable to valuing

vacant land. The Income Capitalization Approach was not used because the income approach is not

typically applicable to valuing vacant land being held for residential development. Further discussion

of the extent of our analysis and the methodology of each approach is provided later in the respective

valuation sections.

Appraisal Conformity and Report Type We developed our analyses, opinions, and conclusions and prepared this report in conformity with the

Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code

of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; and

the requirements of our client as we understand them. This is an Appraisal Report as defined by the

Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2a.

Personal Property/FF&E All items of non-realty are excluded from this analysis. The opinion of market value developed herein

is reflective of real estate only.


REGIONAL AND MARKET AREA ANALYSIS


Regional and Market Area Analysis

REGIONAL MAP

Subject




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 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. 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 various State of Nevada websites. Information supplied includes historical

and projected population, employment and income data.

Regional Economic Overview As of May 2019, employment was 255,879 as compared to May of 2018 at 241,452, Reno employment

is at an all-time high. Reno has been steadily growing since a year ago, resulting in a gain of 14,427

jobs. Trade, transportation and utility has the highest number of people employed with 55,000 jobs.

This is a 4.6% increase from one year ago. The highest twelve month increase in the employment sector

was Manufacturing at a 17.3% increase.

The Monthly Report from The Lied Institute for Real Estate Studies, May 2019 Nevada Housing Market

Update, the average new home price for single family homes is $613,600 as compared to the fiscal

year (May 2018) of $472,670, this is a year over year growth of 29.82%. There were 32 new single-

family home sales during May 2019, a 71% year over year decrease. The average existing home price

for single family homes is $471,000 as compared to May 2018 of $453,000, a year over year growth

rate of 3.97%.

The Tahoe Reno Industrial Center is the largest industrial park in the U.S. at 107,000 acres. Currently,

there is 15,000 acres pre-zoned, fully entitled and in active development, with plans of future

expansion. It is home to the Tesla Gigafactory, the Switch/Supernap data storage campus, Blockchains,

Google and Jet.com. Switch Tahoe Reno, known as Citadel Campus, is the largest, most advanced data

center campus in the world. There are over 100 companies already at TRIC, with USA Parkway (Infinity

Parkway) finished, jobs at TRIC are readily accessible.




A map of the Tahoe Reno Industrial Center is below:

The introduction of Tesla’s Gigafactory has provided over 4,000 local jobs and will support close to

10,000 when complete. Tesla has infused Reno’s economy and shifted it from its economic drought.

There are more enrollments in schools, especially in STEM-related subjects, and emerging

neighborhoods, such as Midtown, downtown and the Fourth Street corridor. This is in part due to the

booming technology industry with billions of dollars being invested from some of Fortune’s highest

ranked companies, which include Tesla, Switch, Amazon, Microsoft, Google, and Blockchains. The

presence of Tesla has pushed for market diversification and draws in local businesses to supplement

the needs of the factory and the people. Demands for supplies, gas and food have increased which

brings in more employment and more cash flow. In 2009 TRIC had 4,500 employees and had 11 million

square feet of building area. This grew to 14 million square feet in 2014 with 5,000 employees. By 2018,

employment has grown to 7,000 employees with a majority in manufacturing (42%) and in

logistics/distribution (42%), whilst employment is expected to increase to 15,000 within a decade. The

additions have contributed to economic activity in the Reno area.




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 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 9 cross-country ski resorts, with an average snowfall

of 125 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. While Reno’s economy for most of the 20th century was primarily centered on gaming

and entertainment, it is now diversifying into a much broader based which spans healthcare,

entrepreneurial startups and technology-based industries. Overall, the gaming/tourism industry plays

a significant role within the local economy.

Climate According to the U.S. Climate Data website the area’s semi-arid climate is generally favorable, and

winters are characterized as moderate with January temperatures between 25°F to 46°F and July

temperatures 58°F to 92°F, with an annual high temperature of 67°F and an annual low temperature

of 40°F. The area experiences about 315 days of sunshine per year, annual precipitation is just over 7”

per year, and annual snowfall is about 22” 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.

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 or proper drainage of soils away from structures.

SOIL SURVEY

Source: USDA Natural Resources Conservation Service

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.

Subject




RENO FAULT LINES MAP

Subject




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. A 12-mile extension linking Interstate 80 and U.S. 50 to traffic, opened on

September 2017. This highway is dubbed Infinity Highway by Governor Brian Sandoval. This created

an 18-mile-long, four lane state road way between I-80 and U.S. 50, which enhances regional mobility

and created an additional route for commuter, freight and other traffic. 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 Reno-Tahoe International Airport is a public/military airport three miles southeast of downtown

Reno. It covers an area of 1,450 acres and is the primary port of entry for most visitors to Reno. The

airport has three runways servicing around 140 flights daily to and from the airport, providing service

to 22 cities non-stop and about 31 cities with a same plane one-stop flight as well as freight companies

such as DHL, FedEx Express and UPS as well as numerous ad-hoc charters throughout the year. The

airport served 4,210,095 passengers in 2018. The terminal was remodeled in 1996, 2009 and 2013. In

1996, the baggage claim, and ticketing area were updated with technology and decor similar to Las

Vegas. In 2008, the Airport began a $70 million project that enhanced the baggage screening

equipment and remodeled the ticketing area with a modern Tahoe theme, the project was entirely

completed in 2010. To complete the renovations, the TSA ordered the shutdown of the ticketing area,

so the airport built a full service heated/a/c temporary ticketing tent, which took up 3 lanes out of 6 in

front of the airport for taxi, pick up and drop off. In March 2013, a $24 million expansion of the airport

was completed and focused on a new centralized TSA Security Checkpoint on the Ground Level, and

above it, a shopping/dining promenade called "High Mountain Marketplace" which consists of CNBC

News, InMotion Entertainment, Brighton and No Boundaries Outdoor Apparel. Dining options include

McDonald's, Timber Ridge Restaurant, among others in the two concourses. There are giant windows

in the dining areas that allow expansive views of the mountains and runways. Leading major airport

designers designed the new spaces. With the new security checkpoint, travelers can now access both

concourses without having to go through security. Future projects may include updates to the

concourses.

Education The Washoe County School District (WCSD) is a public-school district providing public education to

students in Washoe County, Nevada, including the cities of Reno and Sparks, and the unincorporated

communities of Verdi, Incline Village, and Gerlach. The Washoe County School District is the second

largest school district in Nevada and 59th largest district in the nation, with approximately 64,000

students enrolled in over 100 schools. According to the WCSD website, the district currently has 62




elementary schools, 14 middle schools, 14 comprehensive high schools, 1 adult achievement school, 4

alternative schools (K-12), 1 school for medically fragile students, 8 charter schools and 3 new schools

to open 2019-2020. With around 9,000 employees, WCSD is the largest regional employer, and most

of those employees live, work, and reinvest directly in the local economy. WCSD has been recognized

nationally for its fiscal management policies, including the National Excellence Award in Procurement

from the National Procurement Institute, for its dedication to ensuring that tax dollars are use

efficiently and effectively.

The University of Nevada, Reno also referred to as UNR is a public research university located in Reno.

The campus is home to the large-scale structure laboratory in the College of Engineering, which has

put Nevada researchers at the forefront nationally in a wide range of civil engineering, earthquake and

large-scale structures testing and modeling. The Nevada Terawatt Facility, located on a satellite

campus of the university, includes a terawatt-level Z-pinch machine and terawatt-class high-intensity

laser system-one of the most powerful such lasers on any college campus in the country. It is home to

the School of Medicine, with a campus in Nevada’s major urban center in Reno and a health network

that extends to much of rural Nevada. The faculty are considered worldwide and national leaders in

diverse areas such as environmental literature, journalism, Basque studies, and social sciences such as

psychology. The school includes 16 clinical departments and five nationally recognized basic science

departments. It is also home to the School of Journalism, which has produced six Pulitzer Prize winners.

The University now covers 290 acres with 180 buildings and continues to expand its campus footprint

and is home to more than 60 research facilities, 12 museums and galleries, 8 residence halls, a state-

of-the-art fitness and recreation center and more. UNR offers more than 460 undergraduate and

graduate degree, certificate and minor programs within 11 academic colleges. UNR has over 21,000

students and 1,049 academic faculty which puts them at a 19:1 student-to-faculty ratio.

Truckee Meadows Community College (TMCC) is a two-year, public community college and technical

college located in the Truckee Meadows of Reno. The Community College is primarily a commuter

campus with 5 locations. The main (Dandini) campus is located just north of Interstate 80 and US

Highway 395. TMCC offers students both certificate and associate degrees. The college has more than

500 faculty members and is accredited by the Northwest Commission on College and Universities. The

College serves more than 25,000 students each year in credit and non-credit programs at five

educational sites and more than 20 community locations. The Student Teacher Ratio at TMCC is

calculated based on the number of full-time teachers reported by the school is 36:1. The college offers

over 50 programs of study that lead to more than 160 degrees, certificates and other completion

options. TMCC is northern Nevada’s jobs college, with 95% of their students remaining in Nevada after

completing their studies, helping to build and support the local community. TMCC students, graduates,

employees and infrastructure put more than $678 million into the region’s economy each year.

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 residential districts are primarily

median priced. Southwest Reno is above median priced in the lower level land to top end of the market

in the foothills. The newest retail and office development are occurring in the high growth south Reno

market. The north and northwest have primarily developed with below median to median priced

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:

The 2019 estimates by the Nevada State Demographer anticipate a continued growth rate of 1%

annually in the short-term population projections (2019-2023) for the Reno-Sparks MSA and

Northwest Nevada area. Estimated population for 2024 is 255,665. 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.

POPULATION TRENDS

Reno/Sparks MSA

0

100

200

300

400

500

600

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Year

Po

pu

lati

on

(1,0

00's

)




RENO/SPARKS POPULATION AND HOUSEHOLDS




Employment The following chart illustrates the historical unemployment rates for Reno, Nevada.

RENO UNEMPLOYMENT RATES (%)

Year Unemployment

Rate

April 2019 3.00%

2018 3.60%

2017 4.20%

2016 5.00%

2015 6.20%

2014 7.60%

2013 9.50%

2012 11.00%

2011 12.60%

Source: Bureau of Labor Statistics

Conclusion As previously described, the economic outlook for the state and the Reno region is best described as

optimistic. As of May 2019, employment was 255,879 as compared to May of 2018 at 241,452, Reno

employment is at an all-time high. Reno has been steadily growing since a year ago, resulting in a gain

of 14,427 jobs. Trade, transportation and utility has the highest number of people employed with

55,000 jobs. This is a 4.5% increase from one year ago. The highest twelve month increase in the

employment sector was manufacturing at a 17.3% increase.

The longer-term outlook for the region is encouraging due to the Tahoe Reno Industrial Center and

Reno’s strong fundamentals. The area has many positive attributes that will work to ensure long-term

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. Tesla’s Gigafactory continues to reshape Reno, transforming

education, housing and the small business sector. Creating a technological oasis centered around

sustainability in complement with the current economy will secure both long term and short-term

profits. It will insure a steady revenue stream for the state and poise itself for the transition into a green

future, one that is sustainable energy for the future of transportation.


SITE DESCRIPTION


City and Neighborhood Analysis

NEIGHBORHOOD MAP

Overview


SITE DESCRIPTION


The subject is located in the City of Reno in Washoe County.

Neighborhood Location and Boundaries The subject neighborhood is located in the northwest section of Reno. The area is rural in nature. The

neighborhood is bounded by the Reno City Limits to the north, Highway 395 to the east, I-80 to the

south, and the Reno City Limits to the west.

The majority of the neighborhood area is built up with single-family homes. The Somersett Master

Planned Community is located west of the subject followed by aged single-family homes dating back

to the early 1900’s as well as multi-family complexes. The Reno-Sparks Livestock Event Center is to the

east of the subject followed by University of Nevada, Reno (UNR). Several parks exist in the market

area as well as the Terrace Sport Complex, home of the Reno American Little League. All commercial

property is located along Robb Drive and McCarran Boulevard. Also located in the neighborhood is

Melton Elementary, Westergard Elementary, Billinghurst Middle School and McQueen Highschool.

The Somersett Master Planned Community is a multi-billion-dollar award winning Master Planned

Community (MPC) that includes 18 holes of private golf, a 9-hole Homeowners Association golf course,

two 25,000 square feet community clubhouses, two full parks, nine pocket parks, 1,200 acres of open

space, and 27 miles of trail system. The MPC covers 3,000 acres and over 3,700 homes and throughout

the course of development, $395,000,000 was spent to create the infrastructure and amenities for the

community. Overseen by a programmed homeowners association, Somersett continues to be one of

the most sought-after communities with some of the highest home values in Northern Nevada.

Sitting on 43 acres the Reno-Sparks Livestock Event Center (RSLEC) is the home base for a list of

prestigious equine and rodeo events, including the nationally televised Reno Rodeo. The RSLEC is a

favorite venue for youth and collegiate sporting competitions, motocross, circuses and national

monster truck events, along with consumer-based shows featuring everything from antiques, craft

shows, trains and cars to RV and boat sales.

The University of Nevada, Reno (UNR) is widely known for its programs in earthquake sciences and

engineering, the humanities, neuroscience, biotechnology, environmental science, bioscience and

advanced autonomous systems. UNR was founded in 1874 and now has over 21,000 students and

1,049 academic faculty with a 19:1 student-to-faculty ratio. The campus covers 290 acres with 180

buildings, 60 research facilities, 12 museums and galleries and 11 schools and colleges.

Robert McQueen Highschool is located at the base of the Peavine Mountain and is one of twenty four-

year public high schools in Washoe County School District with enrollment for the 2018-2019 school

year at 1,718. McQueen Highschool offers a wide range of Honors and Advanced Placement courses,

as well as electives in Career Technical Education, Fine Arts, Physical Education, and ROTC. McQueen

Highschool is also the only High School in Washoe County offering four different World Languages

for students to study. Billinghurst Middle School serves 950 students in grades 6-8 and employees 44

teachers with a Student: Teacher ratio of 22:1. Billinghurst placed in the top 30% of all 620 schools in

Nevada for overall test scores for the 2015-16 school year. Melton Elementary serves 565 students in

grades Prekindergarten-5 and employees 30 teachers with a Student: Teacher ratio of 19:1. Melton

ranked in the top 20% of all schools in Nevada for the 2015-16 school year. Westergard Elementary


SITE DESCRIPTION


serves 652 students in grades Prekindergarten-5 and employees 32 teachers with a Student: Teacher

ratio of 20:1. Westergard placed in the top 10% of all schools in Nevada for the 2015-16 school year.

Demographics

The following table depicts the area demographics in Reno within a one-, three-, and five-mile radius

from the subject.


SITE DESCRIPTION


Transportation Access Northern Nevada is served by two major highways and several railroads, as well as trucking and airline

carriers that make distribution to the western market efficient and cost effective. The Reno-Sparks

location allows for overnight delivery to the majority of the eleven western states (53 million people)

and two-day delivery to over 63 million people via truck and rail freight shipping.

Access throughout the neighborhood as well as to the subject property is easy by way of I-80 which

runs east/west to the south of the market area. Highway 395 is located in the eastern side of the

neighborhood and runs north/west having an interchange with I-80. McCarran Boulevard is an outer

loop providing additional and easy access around the main attractions of Reno, a.k.a. – UNR,

Downtown, Meadowood Mall and the Reno/Tahoe Airport.

Secondary access within the neighborhood to connect with I-80 is along Robb Drive, N Virginia Street

and also Hwy 40 which connects to the town of Verdi.

Neighborhood Land Use The subject neighborhood is located in an area with primarily Residential land uses. An approximate

breakdown of the development in the area is as follows:

LAND USES

Built up: 75%

Residential: 56%

Retail: 5%

Office: 2%

Industrial: 2%

Institutional 10%

Open Space 25%

Conclusions The subject neighborhood is a centralized location having excellent access and close proximity to many

employment opportunities. It is expected that this area will continue to grow into the future. Overall,

the subject neighborhood is in the growth stage of its life cycle.


SITE DESCRIPTION


Site Description

The Ventana Ridge site is located north of 0 Peavine Pines Court and continuing westward to north of

0 Sandestin Drive, in the city of Reno, Nevada. The characteristics of the site are summarized as follows:

Site Characteristics Gross Land Area: 206.85 Acres or 9,010,386 SF

Usable Land Area: 206.85 Acres or 9,010,386 SF

Usable Land %: 100.0%

Shape: Irregular shaped but not so much as to hinder development

Average Depth: 2,898.71 feet

Topography: Hilly/Mountainous

Drainage: Adequate with natural drainage

Grade: Sloping

Utilities: All are at or near the site

Off-Site Improvements: none

Interior or Corner: Interior

Signalized Intersection: No:

Excess or Surplus Land: None

Street Frontage / Access Frontage Road Primary Secondary

Street Name: Peavine Creek Rd or

Peavine Pines Ct Sandestin Dr

Street Type: Residential minor Residential minor

Frontage (Linear Ft.): 0 45

Number of Curb Cuts: 0 0

Traffic Count (Cars/Day): None None

Additional Access Alley Access: No

Water or Port Access: No

Rail Access: No

Flood Zone Data Flood Map Panel/Number: 32031C3016G, 32031C3017G

Flood Map Date: March 16, 2009

Portion in Flood Hazard Area: 0.00%

Flood Zone: Zone X (unshaded)


SITE DESCRIPTION


Zone X: The subject is outside the 0.2% annual chance flood plain

and does not require flood insurance.

Other Site Conditions Soil Type: Assumed adequate for development

Environmental Issues: There are no adverse environmental conditions affecting the

subject property

Easements/Encroachments: A non-exclusive access easement for ingress, egress; and three

exclusive relocatable easements for ingress, egress

Earthquake Zone: The property is not in a fault, fissure, or earthquake zone

Adjacent Land Uses The project is on undeveloped parcels located on the southeast

aspect of Peavine Mountain and is bordered by undeveloped land

to the north, west, and east. In addition, immediately south of the

project's southwest property line is undeveloped land owned by

the City of Reno (City) and preserved as Open Space (OS zoning

designation). A Truckee Meadows Water Authority (TMWA) water

storage tank serving its municipal water distribution system is

situated on the eastern project boundary.

Site Ratings Access: Fair to Average

Visibility: Fair to Average

Zoning Designation Zoning Jurisdiction: Reno

Zoning Classification: SPD, GR, SF-15, SF-9/OS, Specific Plan District, General Rural, Sgl

Fam Res (15,000 Sq Ft), (9,000 Sq Ft), Open Space

General Plan Designation: RS- Residential Subdivision

Permitted Uses: Single-family residential development

Zoning Comments: The City of Reno recognizes existing SPD designations, however,

no longer accepts applications for this zoning designation. The

following purpose statement remains for reference:

The purpose of this district is to accommodate projects or plans

where the design and configuration of the uses are so arranged as

to constitute a single functionally integrated entity. In such projects

the use of land within a component, and among the various

components, if there is more than one component, must be


SITE DESCRIPTION


designed to be compatible and complementary. In this district the

location, use and physical characteristics of structures,

improvements, and open space must all work together in

furthering the stated purpose of the design of the project or plan.

In order to achieve optimal functional integration in such projects

or plans, the city recognizes that it may be desirable to regulate

and restrict on a project or plan specific basis the erection,

construction, reconstruction, alteration, repair or use of buildings,

structures, or land. Further, the city recognizes that the purpose of

this district may be furthered by permitting a diversity of land uses

not found in other zoning districts. In light of the multitude of land

uses which may be permitted in this district, and the need to ensure

that such uses are internally compatible and both complementary

and compatible with surrounding and nearby existing and/or

planned uses of land, it is the express intent of the city to subject

requests for changes in zoning to the Specific Plan District to a

heightened level of scrutiny during the review process and, should

a request be approved, to strictly limit the possibilities of change

in the use or arrangement of land, structures, and open space.


SITE DESCRIPTION


PLAT MAP CLOSE


SITE DESCRIPTION


PLAT MAP WHOLE


SITE DESCRIPTION


PLAT MAP WHOLE – PROPOSED EASEMENT


SITE DESCRIPTION


PLAT MAP CLOSE – PROPOSED EASEMENT


SITE DESCRIPTION


FLOOD MAP 1


SITE DESCRIPTION


FLOOD MAP 2


SITE DESCRIPTION


TOPOGRAPHIC MAP


SITE DESCRIPTION


ZONING MAP


SITE DESCRIPTION


PLANNED LAND USE MAP


SUBJECT PHOTOS


Subject Photos

At the southeastern border of the property looking west across the lower portion of the site

At the terminus of Sandestin Dr. Currently the dirt road goes to the TMWA water tank on the eastern

edge of the property


SUBJECT PHOTOS


At the southwestern border of the property, looking south across City of Reno land towards

Northgate development where public roadway easement will likely be placed if easement granted

Above Peavine Pines Ct looking east across the southern portion of the site towards Sandestin Dr

Additional photos are included in the Addenda


ASSESSMENT AND TAX DATA


Assessment and Tax Data

Assessment Methodology Property taxes are based upon an appraisal of the property performed by the Washoe County

Assessor’s Office. An appraisal is conducted 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, improved 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%.

Land values are derived from market sales or other recognized appraisal methods and are added to

improvement values. Property values are updated every year. 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.

If a property owner disagrees with the value placed on the property by the Assessor’s office, they may

discuss the matter with the Assessor’s office. If a difference of opinion still exists, the owner may appeal

the taxes prior to the deadline of January 15th (unless it falls on a holiday or weekend, then the

deadline is the next business day). The matter will then be heard by the County Board of Equalization.

If there is still a disagreement, the matter may be appealed to the State Board of Equalization and can

further be appealed by taking the case to District Court.

Tax Rates

The Nevada State Legislature passed a law to provide property tax relief to property owners. NRS

361.4723 provides a partial abatement of taxes by applying a 3% cap on the tax bill of the owner’s

primary residence (single-family house, townhouse, condominium or manufactured home). Only one

property may be selected in the State of Nevada as a primary residence. Some rental dwellings that

meet the low-income rent limits may also qualify for a 3% cap on the tax bill. A cap of up to 8% on the

tax bill will be applied to residences that are not owner occupied. The up to 8% cap would also apply

to land, commercial buildings, business personal property, aircraft, etc. New construction or property

that has a change of use (zoning change or manufactured home conversion) does not qualify for any

cap for the first fiscal year but will receive the 3% or up to an 8% cap starting the next fiscal year.


ASSESSMENT AND TAX DATA


Assessed Values and Property Taxes The subject’s assessed values, applicable tax rates and total taxes, including direct assessments, are

shown in the following table:

Conclusions According to the Washoe County Tax Assessor the subject’s property taxes are current as of the date

of value. The market value of the subject property is based on the general assumption that there are

no liens or encumbrances on the property. Therefore, the market value of the property does not

consider any delinquent taxes.

Tax Schedule

Parcel

Assessor's

Appraised Assessment

Assessor's

Appraised Assessment Assessor's Total Assessed Tax Millage Effective Special Tax

Tax Year Number Value - Land Ratio Value - Imp. Ratio Appraised Value Value Rate Rate Tax Rate Assessments Expense

1 2019 081-160-17 $40,000 35.00% $0 35.00% $40,000 $14,000 $3.660000 per $100 1.281000% ($162) $350

2 2019 081-160-18 $40,000 35.00% $0 35.00% $40,000 $14,000 $3.660000 per $100 1.281000% ($162) $350

3 2019 081-160-19 $40,000 35.00% $0 35.00% $40,000 $14,000 $3.660000 per $100 1.281000% ($162) $350

4 2019 081-160-28 $40,000 35.00% $0 35.00% $40,000 $14,000 $3.660000 per $100 1.281000% ($162) $350

5 2019 081-160-34 $250,950 35.00% $0 35.00% $250,950 $87,833 $3.660000 per $100 1.281000% ($838) $2,376

6 2019 208-510-10 $9,000 35.00% $0 35.00% $9,000 $3,150 $3.660000 per $100 1.281000% ($108) $8

Total $419,950 $0 $146,983 ($1,594) $3,786


MARKET ANALYSIS


Housing Market Analysis

Housing Market Analysis Prospects for the local housing market depend on ongoing population growth, which, until the

economic and financing problems ended in 2010, has continued at a strong pace over several years.

According to statistics from the Nevada State Demographer’s Office, the following are population

changes annually in Washoe County from July 1 to June 30 each year:

Year Population Change Total Population

2003/2004 13,810 373,233

2004/2005 10,220 383,453

2005/2006 13,391 396,844

2006/2007 12,241 409,085

2007/2008 8,976 418,061

2008/2009 5,772 423,833

2009/2010 (7,201) 416,632

2010/2011 747 417,379

2011/2012 4,214 421,593

2012/2013 10,731 432,324

2013/2014 5,256 437,580

2014/2015 5,615 443,195

2015/2016 5,918 449,113

2016/2017 6,231 455,344

2017/2018 6,535 461,878

2018/2019 6,604 468,482

Source: State of Nevada Demographer

As shown above, the population growth has been steadily increasing since 2013/2014, and has

continued to show a recovering trend. Strong population growth is driving the demand for housing.

Figures reported for new home sales in 2018 were the highest annual total since 2006.

City of Reno has reported new home sales activity as follows:


MARKET ANALYSIS


Year Number of Residential Permits

2004 5,009

2005 5,158

2006 3,345

2007 2,022

2008 938

2009 497

2010 472

2011 534

2012 777

2013 1,243

2014 1,507

2015 2,000

2016 1,868

2017 2,091

2018 2,255

Source: U.S. Census Bureau, Building Permits Survey

As can be seen, number of residential permits in 2011 were up above 2010 residential permits and, for

the most part, have continued to increase. As noted, the numbers set for 2018 were the highest annual

total since 2006.

NEW HOME PRICES RESALE HOME PRICES

Year Price % Change Year Price % Change

2008 $317,832 -- 2008 $250,000 --

2009 $249,950 (21.4%) 2009 $180,000 (28%)

2010 $230,750 (7.7%) 2010 $170,000 (5.6%)

2011 $230,692 0% 2011 $150,000 (11.8%)

2012 $252,841 9.6% 2012 $161,000 7.3%

2013 $302,089 19.5% 2013 $206,500 28.3%

2014 $315,323 4.4% 2014 $236,000 14.3%

2015 $333,990 5.9% 2015 $275,000 16.5%

2016 $349,950 4.8% 2016 $299,000 8.7%

2017 $385,959 10.3% 2017 $334,900 12%

2018 $427,557 10.8% 2018 $370,000 10.5%

*Price is only reflective of data listed and sold on the NNRMLS and does not include new homes sold directly by builders.

Source: Northern Nevada Regional MLS

Housing starts continue to surge into higher pricing tiers as builders push prices to offset increased land

and labor costs. The median home value in Reno is $370,600. Reno home values have gone up 5.1% over

the past year and are predicted to rise 1.7% by 2020. The median list price per square foot in Reno is $231,

which is higher than the Reno Metro average of $226. The median price of homes currently listed in Reno

is $439,900 while the median price of homes that sold is $362,100.

Existing home sales prices have risen rapidly since 2012 as demand for housing grew because of higher

net in-migration to the HMA (Housing Market Area). During the 12 months ending June 2018, sales

Housing Market Trends of existing homes (which includes single family homes, townhomes, and


MARKET ANALYSIS


condominiums) increased 8% to 11,150, while the average sales price of an existing home rose 11% to

$369,100. The average sales price for an existing home peaked in 2006 at $394,100 and then decreased

an average 13% a year, to a low of $191,600 in 2011. The average price for existing homes began to

rise in 2012, and by 2017, was up to $345,100, reflecting an average annual growth of more than 10%.

Currently, the number of existing home sales is slightly above the pre-recession high of 11,050 homes

sold during 2005. Following the peak, existing home sales fell for 3 consecutive years when the national

housing crisis severely impacted the local housing market. Home sales declined an average of nearly

25% annually, to a low of 4,725 homes sold in 2008. Home sales began to increase a year later and by

2013, totaled 9,275, an average annual growth of 14%. Investor purchases played an important role in

stabilizing the housing market during the period. From 2009 through 2013, purchases by absentee

owners accounted for 37% of all home sales in the HMA, compared with 30% rate for the nation during

the same period, and higher than the 33% rate for the HMA from 2006 through 2008, when existing

home sales declined. During 2014, after 5 years of consecutive growth, existing home sales decreased

6% to 8,700. Growth resumed a year later, as strong labor market conditions and low housing costs

(compared with nearby California) resulted in higher in-migration. From 2015 through 2017, existing

home sales rose at an average annual rate of 9%.

New home sales have slowed in the HMA since 2016, partly because rising new home sales prices have

dampened demand. During the 12 months ending June 2018, new home sales in the HMA accounted

for 12% of all home sales and totaled 1,525, an increase of nearly 2%, from a year earlier. New home

sales totaled 4,475 in 2006 and then decreased an average 35% annually to 510 homes sold in 2011.

After bottoming out in 2011 new home sales grew for 5 consecutive years when the economy

continued to recover from the recession. From 2012 through 2016 new home sales in the HMA rose

an average of 26%, annually to 1,625 homes sold, but a year later fell by nearly 11% to 1,450. During

the 12 months ending June 2018 the average sales price of a new home was at an all-time peak of

$449,000, a gain of nearly 6% from a year earlier. By comparison the price of a new home averaged

$398,800 in 2006 before declining an average of 12% annually to $237,900 in 2010 as economic

conditions worsened. Since 2010 a sharp decline in the supply of new homes and subsequent

economic recovery contributed to price growth averaging 9% annually reaching $436,900 in 2017.

Currently the average new home sales price is 89% higher than the low in 2010. A shift from

homeownership to renting and high construction costs resulted in relatively modest single-family

construction in the HMA since the end of 2012. A shortage of skilled construction workers and

regulatory obstacles are preventing builders from increasing the supply of new single-family homes

(Builders of Northern Nevada). Single-family homebuilding activity, as measured by the number of

homes permitted, totaled 2,025 during the 12 months ending June 2018, up 4% from the previous 12

months. Single-family construction peaked from 2000 through 2005 when an average of 4,225 homes

were permitted annually. Because of softening market conditions, single-family construction decreased

during the next 5 years at an average annual rate of 38% to 470 homes permitted in 2010. During the

next 2 years single-family homebuilding in the HMA stabilized averaging 660 new homes permitted

annually from 2011 through 2012. Building activity rose in response to greater demand resulting from

the economic recovery and stronger net in-migration. From 2013 through 2017, single-family

permitting increased an average of 22% annually to nearly 2,100 new single-family homes permitted.


MARKET ANALYSIS


The Reno-Sparks Association of REALTORS® (RSAR) released its July 2019 report on existing home

sales in Reno and Sparks, including median sales price and number of home sales in the region. RSAR

obtains its information from the Northern Nevada Regional Multiple Listing Service (www.nnrmls.com).

During July 2019, the report showed Reno-Sparks had 590 sales of existing single-family homes; an

increase of 4% from July 2018 and an 4% increase from one month ago, June 2019. The report listed

the median sales price for an existing single-family residence in Reno-Sparks in July 2019 at $405,000,

a 5% increase from July 2018 and a 1% increase from June 2019. All sales numbers are for existing

“stick built single-family dwellings” only and do not include condominium, townhome, manufactured,

modular or newly constructed homes. The median sales price of existing condominium/townhomes in

Reno-Sparks in July 2019 was $223,500, a 14% increase from a year ago. In July 2019, Reno (including

North Valleys) had 423 sales of existing single-family homes, an increase of 10% from last year and a

3% increase from the previous month. The median sales price in Reno for an existing single-family

residence in July 2019 was $420,000, a 5% increase from June 2018, and a 2% increase from June 2019.

The existing condominium townhome median sales price for July 2019 in Reno was $258,500, a 25%

increase from last year. Sparks (including Spanish Springs) experienced sales of existing single-family

homes in July 2019, an 9% decrease from July 2018 and a 6% increase from June 2019. The Sparks

median sales price for an existing single-family residence in July 2019 was $380,000, a 4.5% increase

from July 2018 and a 2% increase from June 2019. The existing condominium townhome median sales

price for July 2019 in Sparks was $203,000, a 9% decrease from last year. “July was still a seller’s market

with 2.3 months’ supply of inventory and the Reno-Sparks median price setting at $405,000,” said

Angelica Reyes, 2019 RSAR president and REALTOR with The Right Choice Realty. “While the last two

months have been above the $400,000 mark the median sold price for the first six months of 2019 is

at $385,000.”


MARKET ANALYSIS



MARKET ANALYSIS


The RSAR has forecasted a 4% increase in median home price for 2019. Monthly increases or dips in

price also should be in the lower single digits this year. While months’ supply of inventory was at two

months in March far below the balanced standard of six months it represents a marked improvement

from the 1.3 months seen during the same period last year. Active inventory in the market, meanwhile,

was up year over year by 35.5% in February and by 25.8% in March. Competition remains fierce,

however, and anything below $300,000 gets snapped up quickly. The residential segment between

$300,000 to $450,000 is seeing strong activity as well. Given the steep increases in median home price

in recent years, the recent year over year decreases, and stabilization of the market could prove to be

helpful for folks who were priced out of homebuying when the market peaked last year, provided that

supply holds up.


HIGHEST AND BEST USE


Highest and Best Use

The Highest and Best Use of a property is the use that is legally permissible, physically possible, and

financially feasible which results in the highest value. An opinion of the highest and best use results

from consideration of the criteria noted above under the market conditions or likely conditions as of

the effective date of value. Determination of highest and best use results from the judgment and

analytical skills of the appraiser. It represents an opinion, not a fact. In appraisal practice, the concept

of highest and best use represents the premise upon which value is based.

Analysis of Highest and Best Use As If Vacant The primary determinants of the highest and best use of the property as if vacant are the issues of (1)

Legal permissibility, (2) Physical possibility, (3) Financial feasibility, and (4) Maximum productivity.

Legally Permissible

The site is zoned SPD, GR, SF-15, SF-9/OS, Specific Plan District, General Rural, Sgl Fam Res (15,000 Sq

Ft), (9,000 Sq Ft), Open Space which controls the general nature of permissible uses but is appropriate

for the location and physical elements of the property, providing for a consistency of use with the

general neighborhood. The location of the property is appropriate for the uses allowed, as noted

previously. A zoning change was submitted and rejected in 2018, prior to single ownership, for the SF-

15, SF-9, and OS land to be incorporated into the SPD land. Upon a successful easement grant, another

similar zoning charge will likely be submitted. There are no known easements, encroachments,

covenants or other use restrictions that would unduly limit or impede development.

Physically Possible

The physical attributes allow for a limited number of potential uses. Elements such as size, shape,

availability of utilities, known hazards (flood, environmental, etc.), and other potential influences are

described in the Site Description and have been considered. The site terrain and availability of utilities

are of a physical nature that could materially limit appropriate and likely development.

Financially Feasible

The probable use of the site for residential subdivision development conforms to the pattern of land

use in the market area. A review of published yield, rental and occupancy rates suggest that there is

an undersupply and demand is sufficient to support construction costs and ensure timely absorption

of additional inventory in this market. Therefore, near-term speculative development of the subject

site is financially feasible.

Maximally Productive

Among the financially feasible uses, the use that results in the highest value (the maximally productive

use) is the highest and best use. Considering these factors, the maximally productive use as though

vacant is for develop with single family residences as allowed by zoning and the master plan.

Conclusion of Highest and Best Use As If Vacant

The conclusion of the highest and best use as if vacant is for develop with single family residences as

allowed by zoning and the master plan use.

Most Probable Buyer As of the date of value, the most probable buyer of the subject property is a local or national developer.


LAND VALUATION


Land Valuation

Methodology Site Value is most often estimated using the sales comparison approach. This approach develops an

indication of market value by analyzing closed sales, listings, or pending sales of properties similar to

the subject, focusing on the difference between the subject and the comparables using all appropriate

elements of comparison. This approach is based on the principles of supply and demand, balance,

externalities, and substitution, or the premise that a buyer would pay no more for a specific property

than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership.

The process of developing the sales comparison approach consists of the following analyses: (1)

researching and verifying transactional data, (2) selecting relevant units of comparison, (3) analyzing

and adjusting the comparable sales for differences in various elements of comparison, and (4)

reconciling the adjusted sales into a value indication for the subject site.

Unit of Comparison

The unit of comparison depends on land use economics and how buyers and sellers use the property.

Typically, the unit of comparison for the subject and the comparable sales would be price per gross

acre. However, as the easement is a fraction of the size, the unit of comparison in this analysis is per

usable square foot.

Elements of Comparison

Elements of comparison are the characteristics or attributes of properties and transactions that cause

the prices of real estate to vary. The primary elements of comparison considered in sales comparison

analysis are as follows: (1) property rights conveyed, (2) financing terms, (3) conditions of sale, (4)

expenditures made immediately after purchase, (5) market conditions, (6) location and (7) physical

characteristics.

Comparable Sales Data

To obtain and verify comparable sales of vacant land properties, we conducted a search of public

records, field surveys, interviews with knowledgeable real estate professionals in the area, and a review

of our internal database.

We included six sales in our analysis, as these sales were judged to be the most comparable to develop

an indication of market value for the subject property. The first three sales represent the “before

easement” market value, and the last three sales represent the “after easement” market value.

The following is a table summarizing each sale comparable and a map illustrating the location of each

in relation to the subject. Details of each comparable follow the location map.


LAND VALUATION


Land Sales Summary

Comp. Date Usable Usable Proposed Proposed Sales Price Per Per

No. of Sale Acres Sq. Ft. Units Location Zoning Use Actual Sq. Ft. Acre

1 September-14 292.000 12,719,520 356 0 W 7th Ave Sun Valley, Nevada MDS Single family residential subdivision $2,236,000 $0.18 $7,658

2 October-17 225.000 9,801,000 225 0 Fawn Lane Reno, Nevada LDS, MDS, OS Single family residential subdivision $1,611,848 $0.16 $7,164

3 Listing 320.000 13,939,200 8 0 Hawk Meadow Trail Reno, Nevada GR Rural Residential $3,200,000 $0.23 $10,000

4 February-18 69.620 3,032,647 62 0 Somersett Parkway Reno, Nevada PUD Single family residential subdivision $1,000,000 $0.33 $14,364

5 November-18 34.670 1,510,225 24 0 Sandestin Dr Reno, Nevada SF-15, SF-9/OS Single family residential subdivision $600,000 $0.40 $17,306

6 Listing 43.740 1,905,314 16 5230 Mason Rd Reno, Nevada L2.5, SF15, A7 Residential Development $695,000 $0.36 $15,889


LAND VALUATION


COMPARABLE SALES MAP


LAND VALUATION


LAND COMPARABLE 1 (BEFORE EASEMENT VALUATION)

Location Data

Address 0 W 7th Ave

City, County Sun Valley, Washoe County

State, Zip Nevada 89433

Latitude, Longitude 39.601223, -119.806225

TaxID/APN 502-711-01 to 502-732-16

Sales Data

Grantor Ladera Ranch Group LLC

Grantee Ladera Ranch LLC

Sale Date 09-17-2014

Sale Status Closed

Document # 4392807

Property Rights Fee Simple

Financing All Cash to Seller

Conditions of Sale Arm's Length

Marketing Time 730 days

Sale Price $2,236,000 $0.18/sf

$7,658.00/ac

Financing Terms $0

Conditions of Sale $0

Expenditures After

Purchase

$0

Non Realty Items $0

Adjusted Sale Price $2,236,000 $.18/sf

$7,658/ac

Verification

Confirmed With Costar, public records, marketing

brochure, and tentative tract map

Confirmed By Karen Park

Physical Data

Land Size 12,719,520 sf/292.00 acres

Usable Land 12,719,520 sf/292.00 acres

Zoning Code MDS

Zoning Description Medium Density Suburban

Topography Rolling


Shape Irregular shaped but not so much

as to hinder development

Utilities All are assumed to be nearby

Access Average

Primary Frontage 2,000‘ W 7th Ave

Secondary Frontage 0‘ None

Parcel Type Mid-Block

Off-sites None, raw land

Easements/Encumbrances Unknown

Environmental Unknown


LAND VALUATION


Property Description

Proposed development known as Ladera Ranch on W 7th Ave, which is the extension of Golden Valley Rd, approximately 1/2 mile

west of Sun Valley Blvd.

Sale Remarks

This transaction was for the sale of 292 total acres (six parcels) of LDS, MDS, and OS zoned, vacant, rolling land. The proposed use

is for single family development. Costar reported sales price confirmed by seller, after being on the market for about two years,

with 180 days in escrow, attributed to due diligence regarding grading of the land. Seller's broker, Tom Fennell of Dickson

Commercial Group, did not respond to verification request.

Ladera Ranch, approved in 2007, is a proposed single-family, view oriented, residential subdivision of a potential 356 homes on

approximately 73 acres with 220 acres of open space or 75%. 82 Adjacent acres of open space have already been dedicated to the

Washoe County Department of Regional Parks and Open Space, connecting Golden Valley Rd/W 7th Ave to Sun Valley Regional

Park.


LAND VALUATION



Location Data

Address 0 Fawn Lane

City, County Reno, Washoe County



TaxID/APN 045-252-14 and a portion of 045-

252-15, to become new 045-252-17,

-18, -19, -20

Sales Data

Grantor CWH 2011 Trust

Grantee NNV1 Partners LLC


Sale Status Closed

Document # 4754794



Conditions of Sale 1031 Exchange


Sale Price $1,611,848 $0.16/sf

$7,164.00/ac

Financing Terms $0


Expenditures After

Purchase

$0

Non Realty Items $0


$7,164/ac

Verification

Confirmed With Co-Star and Public Records


Physical Data



Zoning Code LDS, MDS, OS

Zoning Description Low Density Suburban (1 unit per

acre)

Topography Hilly/Mountainous




Utilities All are assumed to be nearby

Access Average to Good

Primary Frontage 65‘ Fawn Ln

Secondary Frontage 50‘ Shawna Ln






This property is 225 acres of vacant land located at the end of Fawn Lane southeast of Mount Rose Highway and northwest of I-

580/Hwy 395, in the Steamboat Hills of Galena area. This is the proposed subdivision of Ascente approved in mid-2017. Access is

from existing Fawn Ln and Shawna Ln, with a third gated access for EVA only.

Sale Remarks

Takedown of 225 acres out of the original 632 acres zoned for a total of 632 homes by the Forest Area Plan in 2010. Currently there

are 3 different properties available for sale that are a portion of the 225 acres. These properties are proposed as subdivisions within

Ascente, which was approved in mid-2017 by Washoe County for a tentative tract map. The first phase will be cluster development

of four villages with a minimum lot size of 10,120 square feet and average of 24,450 square feet. The project has 80 acres or 35%

open space.


LAND VALUATION



Location Data

Address 0 Hawk Meadow Trail




TaxID/APN 081-170-10

Sales Data

Grantor Churchill Trust, David E et al

Grantee TBD

Listing Date 02-24-2019

Sale Status Listing

Document # TBD





Sale Price $3,200,000 $0.23/sf

$10,000.00/ac

Financing Terms $0


Expenditures After

Purchase

$0

Non Realty Items $0


$10,000/ac

Verification

Confirmed With Costar, Public Records, and

Marketing Brochure


Physical Data



Zoning Code GR

Zoning Description General Rural

Topography Mountainous


Shape Triangular

Utilities None at or near the site

Access Restricted

Primary Frontage 0‘ Hawk Meadow Trail

Secondary Frontage 0‘ none

Parcel Type Interior

Off-sites None. A dirt

trail/unsurveyed road

traverses the property.




This property is northwest of Somersett Pkwy on the dirt trail/unsurveyed road of Hawk Meadow Trail, just outside City of Reno

limits. Proposed use is for single family development or hold for future development.

Sale Remarks

This is a listing transaction for sale at $3,200,000 from February 24, 2019. The parcels sits north of Somersett and east of Verdi. It is

just outside the Reno City limits. Current zoning allows for one dwelling unit per 40 acres. Listing brokers at Oliverlux did not

respond to verification requests.


LAND VALUATION


LAND COMPARABLE 4 (AFTER EASEMENT VALUATION)

Location Data

Address 0 Somersett Parkway




TaxID/APN 232-060-21, 232-060-23

Sales Data

Grantor Toll North Reno LLC

Grantee First Roundabout LLC


Sale Status Closed

Document # 4789906



Conditions of Sale 1031 Exchange


Sale Price $1,000,000 $0.33/sf

$14,364.00/ac

Financing Terms $0


Expenditures After

Purchase

$0

Non Realty Items $0


$14,364/ac

Verification

Confirmed With Co-Star, Public Records, and

Tentative Tract Map


Physical Data



Zoning Code PUD

Zoning Description Planned Unit Development

Topography Hilly


Shape Irregular

Utilities All utilities are available to the site

Access Average

Primary Frontage 100‘ River Hill Way

Secondary Frontage 75‘ Somersett Parkway



Easements/Encumbrances No

Environmental No


This property is 69.62 acres of vacant land located northwest of Somersett Parkway and River Hill Way in the Village 1A at Somersett

subdivision of Reno. The property is zoned for PUD and will be developed into single family homes.

Sale Remarks

A total of 69.62 acres of land was purchased as an investment and the buyer will develop single family homes. All utilities were to

site. Per the seller, no brokers were involved on the transaction. The original plan from Somersett PUD indicated 96 attached homes

for this village.

Immediately after the sale a tentative tract map was filed for Somersett 1A with 62 lots. The lots range in size from 8,000 square

feet to 14,500 square feet, with an average of 9,126 square feet, and there will be 53.32 acres of open space or 76.6%. Development

will follow the ridge line and feature walk-out basements. It was approved in July 2018 and the developer is Desert Wind Homes.


LAND VALUATION



Location Data

Address 0 Sandestin Dr




TaxID/APN 081-160-34 and 208-510-10

Sales Data

Grantor Peavine Land Company LLC

Grantee Ventana Pointe LLC


Sale Status Closed

Document # 4866386



Conditions of Sale Assemblage

Marketing Time 499

Sale Price $600,000 $0.40/sf

$17,306.00/ac

Financing Terms $0


Expenditures After

Purchase

$0

Non Realty Items $0

Adjusted Sale Price $600,000 $.40/sf

$17,306/ac

Verification

Confirmed With Ryan Krueger, ArchCrest

Commercial Properties, 775-852-

9800


Physical Data



Zoning Code SF-15, SF-9/OS

Zoning Description Sgl Fam Res (15,000 Sq Ft), (9,000

Sq Ft), Open Space

Topography Hilly




Utilities All utilities are available to the site

Access Average

Primary Frontage 30‘ Sandestin Dr

Secondary Frontage 0‘ none


Off-sites none

On-site Improvements none

Easements/Encumbrances Yes A non-exclusive

access easement for

ingress, egress, and

utilities



The residential land project is two vacant undeveloped parcels, totaling 34.67 acres, known as Peavine Ridge Estates, with an expired

tentative tract map for a proposed 24 lot single family residential development. The adjacent residential land development project,

Ventana Ridge, is in the process of updating its SPD to include Peavine Ridge Estates. The land is located on the southeast aspect

of Peavine Mountain, immediately north of the Northgate development within the McQueen Neighborhood Planning Area in

northwestern Reno. A Truckee Meadows Water Authority (TMWA) water storage tank serving its municipal water distribution system

is situated on the eastern boundary with an easement across both parcels .


LAND VALUATION


Sale Remarks

The property formerly known as Peavine Ridge Estates recorded a sale on November 14, 2018 for $600,000. It was listed for $700,000

and was on the market for 16 months 14 days. The buyer was adjacent property owner, Ventana Pointe LLC, and become a portion

of the subject property Ventana Ridge, and the seller was Peavine Land Company. The seller's agent confirmed the sale as an arm's

length transaction even though it was an assemblage for the subject property. There was an expired tentative tract map for 24 lots.

One-fourth of the lots will have city views, the remaining will be mountains view.

During the marketing period and prior to the sale in April 2018, an updated SPD for Ventana Ridge that incorporated Peavine Ridge

Estates and increased the proposed number of lots from 70 to 99, was rejected by the City of Reno. After the sale, a revised tentative

tract map has been created but not yet submitted.


LAND VALUATION



Location Data

Address 5230 Mason Rd




TaxID/APN 082-361-88, -89, -08, -01

Sales Data

Grantor North By Northwest LLC and

Forty/Five Degrees LLC

Grantee TBD

Listing Date 07-01-2019

Sale Status Listing

Document # TBD





Sale Price $695,000 $0.36/sf

$15,889.00/ac

Financing Terms $0


Expenditures After

Purchase

$0

Non Realty Items $0

Adjusted Sale Price $695,000 $.36/sf

$15,889/ac

Verification

Confirmed With Costar and Public Records


Physical Data



Zoning Code L2.5, SF15, A7

Zoning Description Large Lot Residential 2.5 Ac,

Agricultural 40 Ac, Single Family

Residential 15,000 SF

Topography Hilly




Utilities Electricity is to the site

Access Average to Good

Primary Frontage 330‘ Mason Rd

Secondary Frontage 30‘ Eisan Ave


Off-sites Existing well and septic

system; raw land




This property is accessed from Mason Rd and Eisan Ave, west of N Virginia St, in Washoe County, just outside Reno City limits.

Sale Remarks

Listing offered at $695,000 from July 1, 2019, for 4 parcels totaling 43.74 acres. Currently 16 lots are allowed, but preliminary plans

are drawn up for a potential 122 lot subdivision per listing broker, Marti Allison, Berkshire Hathaway. City or mountain views for

ridgeline lots. Small existing house 858 square feet built in 1959, well, and septic system is sold as is.


LAND VALUATION


Land Sales Comparison Analysis When necessary, adjustments were made for differences in various elements of comparison, including

property rights conveyed, financing terms, conditions of sale, expenditures made immediately after

purchase, market conditions, location, and other physical characteristics. If the element in comparison

is considered superior to that of the subject, we applied a negative adjustment. Conversely, a positive

adjustment was applied if inferior. A summary of the elements of comparison follows.

Transaction Adjustments Transaction adjustments include (1) real property rights conveyed, (2) financing terms, (3) conditions

of sale and (4) expenditures made immediately after purchase. These items, which are applied prior to

the market conditions and property adjustments, are discussed as follows:

Real Property Rights Conveyed

Real property rights conveyed influence sale prices and must be considered when analyzing a sale

comparable. The appraised value is the easement interest, but for purposes of analysis, a fee simple

interest is assumed. As all of the sale comparables reflect the fee simple interest, no adjustments are

required.

Financing Terms

The transaction price of one property may differ from that of an identical property due to different

financial arrangements. Sales involving financing terms that are not at or near market terms require

adjustments for cash equivalency to reflect typical market terms. A cash equivalency procedure

discounts the atypical mortgage terms to provide an indication of value at cash equivalent terms. All

of the sale comparables involved typical market terms by which the sellers received cash or its

equivalent and the buyers paid cash or tendered typical down payments and obtained conventional

financing at market terms for the balance. Therefore, no adjustments for this category were required.

Conditions of Sale

When the conditions of sale are atypical, the result may be a price that is higher or lower than that of

a normal transaction. Adjustments for conditions of sale usually reflect the motivations of either a

buyer or a seller who is under duress to complete the transaction. Another more typical condition of

sale involves the downward adjustment required to a comparable property’s for-sale listing price,

typically between 15% to 25% for vacant land, and which usually reflects the upper limit of value.

Sales 1, 2, 4, and 5 did not have atypical sales and no adjustment was warranted.

Sales 3 is a listing with no previous price adjustments and a downward adjustment of 25.0% was

warranted.

Sale 6 is a recent listing with no previous price adjustment and a downward adjustment of 15.0% was

warranted.

Expenditures Made Immediately After Purchase

A knowledgeable buyer considers expenditures required upon purchase of a property, as these costs

affect the price the buyer agrees to pay. Such expenditures may include: costs to demolish and remove

any portion of the improvements, costs to petition for a zoning change, and/or costs to remediate

environmental contamination.


LAND VALUATION


The relevant figure is not the actual cost incurred, but the cost anticipated by both the buyer and seller.

Unless the sales involved expenditures anticipated upon the purchase date, no adjustments to the

comparable sales are required for this element of comparison. The parties to these transactions did

not anticipate expenditures were required immediately after purchase; therefore, no adjustments were

warranted.

Market Conditions Adjustment Market conditions change over time because of inflation, deflation, fluctuations in supply and demand,

or other factors. Changing market conditions may create a need for adjustment to comparable sale

transactions completed during periods of dissimilar market conditions.

Costar trend analysis for vacant residential land, over 25 acres, indicates 5 to 12 transactions per year.

Due to the small number of transactions, results can be skewed, so overall, a straight-line increase can

be observed.

Discussions with market participants and a review of market data indicated overall market conditions

for vacant land properties have been improving with recent transactions confirming this trend. As such,

we applied an adjustment to each comparable based on a factor of 10.00% per year.

Property Adjustments Property adjustments are usually expressed quantitatively as percentages or dollar amounts that reflect

the differences in value attributable to the various characteristics of the property. In some instances,

however, qualitative adjustments are used. These adjustments are based on locational and physical

characteristics and are applied after transaction and market conditions adjustments.

Our reasoning for the property adjustments made to each sale comparable follows. The discussion

analyzes each adjustment category deemed applicable to the subject property.

Location

Location adjustments may be required when the locational characteristics of a comparable property

are different from those of the subject property. These include, but are not limited to, general

neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location,

neighboring properties, view amenities, and other factors.


LAND VALUATION


The subject property is located northeast of the Somersett subdivision and north of the Northgate

development with fair to average access and fair to average visibility.

Sales 1 and 6 are in inferior locations with overall lower housing prices and an upward adjustment of

5.0% was warranted.

Sale 2 is located in a similar neighborhood in South Reno and no adjustment was warranted.

Sales 3, 4 and 5 are located nearby the subject and no adjustment was warranted.

Size

The size adjustment addresses variance in the physical size of the comparables and that of the subject,

as a larger parcel typically commands a lower price per unit than a smaller parcel. This inverse

relationship is due, in part, to the principle of “economies of scale.”

The subject property consists of 206.85 acres (9,010,386 square feet) of useable land area. The sales

range in size from 35 to 320 acres and required size adjustments.

Sales 1 and 3 are substantially larger than the subject and an upward adjustment of 5.0% was

warranted.

Sale 2 is similar to the subject and no adjustment was warranted.

Sales 4, 5, and 6 are substantially smaller than the subject and a downward adjustment of 10.0% to

15% was warranted.

Shape/Depth

The subject site consists of an irregular shaped but not so much as to hinder development and is

considered similar enough to the land sales to not warrant an adjustment for this category, as all of

the land sales will likely feature cluster housing development.

Utilities

The subject property does not have utilities in place on the date of value for the entire project. Utilities

and easements are in place at the east end for that limited portion of the project (formerly known as

Peavine Ridge Estates), but not at the west end (for the original Ventana Ridge).

Sales 1, 2, 4, and 5 are similar and no adjustment was warranted.

Sale 3 have no utilities at or near the site, but are one-half to one mile away, and an upward adjustment

of 25.0% was warranted.

Sale 6 has electricity at the site, and a well and septic system, but would need water and sewer for

larger scale single family residential development and an upward adjustment of 10.0% was warranted.


LAND VALUATION


Topography

The subject has a hilly/mountainous topography, which potentially requires more grading of slopes

greater than 30% and may limit the site areas to be developed. However, a positive attribute is that

lots will have views of the city or mountains.

Sale 1 requires significantly less grading and a downward adjustment of 20.0% was warranted.

Sale 2 is similar and no adjustment was warranted.

Sale 3 is located higher up Peavine Mountain than the subject, requiring more grading, and thus an

upward adjustment of 5.0% was warranted.

Sales 4, 5, and 6 do not feature as much mountainous terrain, require less grading, and a downward

adjustment of 10.0% was warranted.

Floodplain

A property’s location within flood zone areas is typically a negative factor due to the increased costs

of raising improvements up out of the floodplain, as well as additional insurance costs associated with

improvements. The subject and the comparable sales are not located in a floodplain, all have adequate

and natural drainageways, and no adjustment was warranted.

Zoning

The highest and best use of sale comparables should be very similar to that of the subject property.

When comparables with the same zoning as the subject are lacking or scarce, parcels with slightly

different zoning, but a highest and use similar to that of the subject may be used as comparables.

These comparables may require an adjustment for differences in utility/buildable lots if the market

supports such adjustment.

The subject site is zoned 64%-Specific Plan District (up to 70 lots), 19%-General Rural (one residence

per 40 acres), 15.5%-Single Family Residential (15,000 square feet lot minimum), 1%-(9,000 square feet

lot minimum), and ½%-Open Space.

Sales 1, 2, 4, and 5 are similar and no adjustment was warranted.

Sales 3 and 6 are inferior, with less buildable lots unless a zoning change is approved, and an upward

adjustment of 10.0% was warranted.

Access

Access adjustments may be required when the ease of connecting to existing public roadways of a

comparable property is different from the subject property. Currently, the subject property can connect

directly to a public roadway on only the east side at Sandestin Dr. However, its SPD does approve

connection to at least one other existing public roadway with easement access across City of Reno

open space land.

Sales 1, 2, 4, 5, and 6 are superior with one or more direct connections and no easements required,

thus a downward adjustment of 5.0% to 10.0% was warranted.


LAND VALUATION


Sale 3 is inferior with only easements across multiple parcels, and no direct public roadways, thus an

upward adjustment of 10.0% was warranted.

Summary of Adjustments Presented on the following page is a summary of the adjustments made to the sale comparables. As

noted earlier, these quantitative adjustments were based on our market research, best judgment, and

experience in the appraisal of similar properties.

As mentioned previously, the first three sales (#1, 2, and 3) are most indicative of the subject’s “before

easement” value and the last three sales (#4, 5, and 6) are most indicative of the “after easement” value.


LAND VALUATION


LAND SALES ADJUSTMENT GRID

Subject Sale # 1 Sale # 2 Sale # 3 Sale # 4 Sale # 5 Sale # 6

Sale ID 1431892 1428426 1431953 1428359 1428756 1431940

Date of Value & Sale August-19 September-14 October-17 Listing February-18 November-18 Listing

Unadjusted Sales Price $2,236,000 $1,611,848 $3,200,000 $1,000,000 $600,000 $695,000

Usable Acres 206.850 292.000 225.000 320.000 69.620 34.670 43.740

Usable Square Feet 9,010,386 12,719,520 9,801,000 13,939,200 3,032,647 1,510,225 1,905,314

Proposed Units 70-85 356 225 8 62 24 16

Unadjusted Sales Price per Usable Sq. Ft. $0.18 $0.16 $0.23 $0.33 $0.40 $0.36

FALSE FALSE FALSE FALSE FALSE FALSETransactional Adjustments

Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple

Adjusted Sales Price $0.18 $0.16 $0.23 $0.33 $0.40 $0.36FALSE FALSE FALSE FALSE FALSE FALSE

Financing Terms Cash to Seller All Cash to Seller All Cash to Seller All Cash to Seller All Cash to Seller All Cash to Seller All Cash to Seller


Conditions of Sale Typical Arm's Length 1031 Exchange Arm's Length 1031 Exchange Assemblage Arm's Length

Adjustment - - -25.0% - - -15.0%


Expenditures after Sale $0 $0 $0 $0 $0 $0

Adjusted Sales Price $0.18 $0.16 $0.17 $0.33 $0.40 $0.31

FALSE FALSEMarket Conditions Adjustments

Elapsed Time from Date of Value 4.89 years 1.80 years 0.00 years 1.45 years 0.73 years 0.00 years

Market Trend Through August-19 48.9% 18.0% - 14.5% 7.3% -

Analyzed Sales Price $0.26 $0.19 $0.17 $0.38 $0.43 $0.315.0% 0.0% 0.0% 0.0% 0.0% 5.0%

Physical Adjustments

Location N of Peavine

Pines Ct

0 W 7th Ave 0 Fawn Lane 0 Hawk Meadow

Trail

0 Somersett

Parkway

0 Sandestin Dr 5230 Mason Rd

Reno, Nevada Sun Valley,

Nevada

Reno, Nevada Reno, Nevada Reno, Nevada Reno, Nevada Reno, Nevada

Adjustment 5.0% - - - - 5.0%5.0% 0.0% 5.0% -10.0% -15.0% -15.0%

Size 206.850 acres 292.000 acres 225.000 acres 320.000 acres 69.620 acres 34.670 acres 43.740 acres

Adjustment 5.0% - 5.0% -10.0% -15.0% -15.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Shape/Depth Irregular shaped

but not so much

as to hinder

development

Irregular shaped

but not so much

as to hinder

development

Irregular shaped

but not so much

as to hinder

development

Triangular Irregular Irregular shaped

but not so much

as to hinder

development

Irregular shaped

but not so much

as to hinder

development

Adjustment - - - - - -0.0% 0.0% 25.0% 0.0% 0.0% 10.0%

Utilities All are at or near

the site

All are assumed to

be nearby

All are assumed to

be nearby

None at or near

the site

All utilities are

available to the

site

All utilities are

available to the

site

Electricity is to the

site

Adjustment - - 25.0% - - 10.0%-20.0% 0.0% 5.0% -10.0% -10.0% -10.0%

Topography Hilly/Mountainous Rolling Hilly/Mountainous Mountainous Hilly Hilly Hilly

Adjustment -20.0% - 5.0% -10.0% -10.0% -10.0%0.0% 0.0% 10.0% 0.0% 0.0% 10.0%

Zoning SPD, GR, SF-15, SF-

9/OS

MDS LDS, MDS, OS GR PUD SF-15, SF-9/OS L2.5, SF15, A7

Adjustment - - 10.0% - - 10.0%-5.0% -10.0% 10.0% -5.0% -5.0% -10.0%

Access Fair to Average Average Average to Good Restricted Average Average Average to Good

Adjustment -5.0% -10.0% 10.0% -5.0% -5.0% -10.0%

Net Physical Adjustment -15.0% -10.0% 55.0% -25.0% -30.0% -10.0%

Adjusted Sales Price per Usable Square Foot $0.22 $0.17 $0.27 $0.28 $0.30 $0.28


LAND VALUATION


Conclusions

Before Easement Valuation

From the market data available, we used three land sales in competitive market areas which were

adjusted based on pertinent elements of comparison of the project in the “before condition” with no

via access easement from Peavine Pines Court. The following table summarizes the unadjusted and

adjusted unit prices:

Large 100+ acre, vacant residential land sales are very limited. Although both are dated transactions,

Sales 1 and 2 are the most comparable to the project in size. Additionally, the utilities and zoning were

similar. But, both comparable sales have superior access. Overall, net physical adjustments were

moderate. The adjusted prices for these sales are a moderate range from $0.17 to $0.22 per square

foot.

Sale 3 is also a large parcel sitting just outside the City of Reno limits, but is within its sphere of

influence. It required a substantial amount of adjustment (gross and net), due to its substantially

inferior access, zoning, and utilities. Overall, it is a listing and is given minimal weight.

Based on the adjusted prices and the most comparable sale(s), a unit value for the project “before

easement” is near the lower-end of the adjusted range, or $0.20 per usable square foot. This

indicates a “before easement” market value of $1,800,000.

After Easement Valuation

From the market data available, we used three land sales in competitive market areas which were

adjusted based on pertinent elements of comparison of the project in the “after condition” with the

proposed easement across a portion of Somersett common area on APN 232-510-03 and continuing

across City of Reno open space land via an approved relocatable easement. The following table

summarizes the unadjusted and adjusted unit prices:

Land Sale Statistics - Before Easement

Metric Unadjusted Analyzed Adjusted

Minimum Sales Price per Usable Square Foot $0.16 $0.17 $0.17

Maximum Sales Price per Usable Square Foot $0.23 $0.26 $0.27

Median Sales Price per Usable Square Foot $0.18 $0.19 $0.22

Mean Sales Price per Usable Square Foot $0.19 $0.21 $0.22

Standard Deviation 0.03 0.05 0.05

Land Value Indication

Reasonable Adjusted Comparable Range

9,010,386 square feet x $0.17 psf = $1,531,766

9,010,386 square feet x $0.27 psf = $2,432,804

Market Value Opinion "Before Easement" (Rounded)

9,010,386 square feet x $0.20 psf = $1,800,000


LAND VALUATION


Although smaller projects, Sales 4 and 5 are only slightly dated transactions and have very similar

characteristics to each other. Sale 4 is located in the Somersett subdivision, has utilities at the site, and

a PUD zoning (previously approved by the City of Reno), and likely much less grading. The road within

the project terminates at two roadways, although one end will require an extension and grading similar

to the subject “after easement.” Sale 5 is a portion of the subject that was acquired less than one year

ago, presumably for an alternative access at lower cost (with no easement) and to potentially increase

the maximum number of lots allowed. The adjusted prices for these sales are a narrow range from

$0.28 to $0.30 per square foot.

Sale 6 is also a smaller parcel, but similar in size to the subject addition. It sits just outside the City of

Reno limits, but is within its sphere of influence. It required only a moderate amount of net physical

adjustment. However, it is a listing and is given only minimal weight, but does support the other

comparable sales.

Based on the adjusted prices and the most comparable sale(s), a unit value for the project “after

easement” is near the higher-end of the adjusted range, or $0.30 per usable square foot. This

indicates an “after easement” market value of $2,700,000.

This method of valuing the easement is simply the added value of property held by the dominant

estate (using a before and after valuation method). This indicates a market value of the easement up

to $900,000.

However, it is not reasonable to expect this full value to be paid as compensation for the easement. In

business, this could be viewed as a joint venture, where both parties share in the added value, after

deductions for associated costs of designing, creating, and recording of the easement. Whether the

split is 50-50 or some other combination would be a matter for negotiations.

Land Sale Statistics - After Easement

Metric Unadjusted Analyzed Adjusted

Minimum Sales Price per Usable Square Foot $0.33 $0.31 $0.28

Maximum Sales Price per Usable Square Foot $0.40 $0.43 $0.30

Median Sales Price per Usable Square Foot $0.36 $0.38 $0.28

Mean Sales Price per Usable Square Foot $0.36 $0.37 $0.29

Standard Deviation 0.03 0.06 0.01

Land Value Indication


9,010,386 square feet x $0.28 psf = $1,531,766

9,010,386 square feet x $0.30 psf = $2,432,804

Market Value Opinion "After Easement" (Rounded)

9,010,386 square feet x $0.30 psf = $2,700,000

Land Value Indication by Added Value Held by Dominant Estate

Market Value Opinion of Easement (Rounded)

$2,700,000 - = $900,000$1,800,000


LAND VALUATION


Traditional Easement Valuation

Easements, nor open space parcels, do not typically sell in the open market; therefore, the traditional

method of valuing easements may be warranted. This method determines the value of the part taken,

plus any damages to the value of the remaining project, would equal the value of the easement.

The proposed easement across the Somersett parcel is quite small and less than one-third of an acre

in size. Although currently identified as common area open space, and because the subdivision has

not reached the maximum number of lots permitted in the PUD, the highest and best use of the whole

parcel, as previously discussed, would be to develop with single family residences as allowed by zoning

and the master plan. Within the Somersett PUD, along the northeastern boundaries, there are “estate”

lots, which are generally one-half acre to one-and-a-half acres in size. The lots can be resold within

the open market between private parties and not necessarily land developers. These sales are for

vacant land and occur prior to construction of a custom single-family residence. Data in the following

table is from the Washoe County Assessor.

The appraisers selected estate lots on the eastern and northern edge of the Somersett subdivision near

the location of the easement, just off of Painted River Trail and the gated emergency access at Peavine

Creek Road. Due to a limited supply of this type of lots and low turnover/resale, it was necessary to

analyze dated transactions. Using the same market condition adjustment of 10.0% increase per year,

a trended price per square foot was calculated. As lot views are subjective and not easily quantifiable,

they were not analyzed and thus may be a factor in the range of sale prices.

Based on the adjusted prices and giving equal weight to all estate lot comparables, a unit value for

the value of the whole near the middle of the adjusted range, or $3.45 per usable square foot is

reasonable. Using the same indicator, the value of the part taken (fee simple interest) is $43,000. By

definition, an easement is not 100% of the property rights, but generally 50% to 75% of the market

value for an access easement. The servient estate can still use the land for access as well as density

calculations or open space requirements. Assuming only a reduction in the remaining lots sizes of

the whole parcel (reasonable given the topography and range of sizes above), and not a reduction in

the number of lots, an indicator on the high end of the range, at 75% is reasonable. Thus, the value

of the part taken is $32,300 rounded.

Resale of "Estate" lots within Somersett PUD

APN Address Sale Date Acres Sales Price Price SF

Trended Price SF

(+10%/yr)

232-531-05 2555 Painted River Trail 4/17/2015 1.030 $113,000 $2.52 $3.61



232-541-04 8170 Fox Meadows Ct 11/18/2016 1.460 $106,000 $1.67 $2.12



234-211-03 8679 Eagle Chase Trail 10/31/2018 0.502 $100,000 $4.57 $4.95

234-201-08 8475 Chalk Ridge Ct 9/30/2019 0.994 $119,500 $2.76 $2.76

Average $3.42

Median $3.25


LAND VALUATION


Again, as no reduction in the number of allowable lots is foreseen, there are no damages to the

remainder of the parcel. This indicates a value to the easement, using the traditional methodology, of

valuing the easement of the servient estate, of $32,300.

Land Value Indication by Valuing the Easement of the Servient Estate

Value of the Whole (APN 232-510-030


139,261 square feet x $2.12 psf = $295,233

139,261 square feet x $4.95 psf = $689,342

Indicator Land Value (rounded)

139,261 square feet x $3.45 psf = $480,000

Value of the Part Taken

12,350 square feet x $3.45 psf = $43,000

Value of the Remainder

126,911 square feet x $3.45 psf = $438,000

Damages to the Remainder $0

Market Value Opinion of the Easement

Interest of the Part Taken

$43,000 x 75% = $32,300

Plus: Damages to the Remainder $0

$32,300


VALUATION SUMMARY


Valuation Summary

The indicated values from the approaches used for the easement interest of APN #232-510-03 is

summarized in the following table.

To reach a final opinion of value, we considered the reliability and relevance of each value indication

based upon the quality of the data and applicability of the assumptions underlying each approach.

Given the limited sale transactions within the land value indication by valuing the easement of the

servient estate (Somersett parcel), we gave this approach secondary weight in arriving at our final value

conclusions. Land properties, such as the Somersett parcel, are typically purchased by a local

owner/user or local developer, who primarily rely on the methods employed by the resale of estate

lots within the Somersett PUD.

Although there were also limited sale transactions within the land value indication by valuing the added

value held by the dominant estate (Ventana Ridge – Before and After Easement), the reliability of the

data is a strength given that a portion of the overall project was acquired less than one year ago,

presumably to enhance the access of the project and potential add up to 29 additional lots.

Furthermore, land properties such as the Ventana Ridge project are typically purchased by a local or

national developers, who primarily rely upon the methods employed by the Sales Comparison

Approach – Before and After Easement Difference.











Although the full increase in the market value of the easement could be sought by the Somersett

Owners Association, it is not reasonable to expect that the developer of Ventana Ridge will pay the full

amount. We have typically seen a meeting of the minds at up to 50% of the increase in the market

value of the property. In business, this could be viewed as a joint venture, where both parties share in

the added value, after deductions for associated costs of designing, creating, and recording of the


VALUATION SUMMARY


easement. Whether the split is 50/50 or some other percentage, this would be a matter for

negotiations. It is our opinion that a reasonable range would be somewhere between 25% and 50%

of the value enhancement due to the creation of the access easement.

Our findings and conclusions are further contingent upon the following extraordinary assumptions

and/or hypothetical conditions which might have affected the assignment results:

Extraordinary Assumptions: • This appraisal assignment is based on the extraordinary assumption that in the “before











Hypothetical Conditions: • The appraisal will employ the use of a hypothetical condition. The hypothetical condition will




Analysis of Recent Transactions A portion of the subject property was acquired in November 14, 2018 for $600,000, or roughly $0.40

per usable square foot. This sale was two parcels, 081-160-34 and 208-510-10, totaling 34.666 acres.

It was listed for sale at $700,000 with an expired tract map for a proposed 24 lot single family residential

development. It was an assemblage sale by adjacent landowner and created the current subject

project. There is easy access to terminus of existing road Sandestin Dr and utility right of way easement

for TMWA water storage tank on the eastern project boundary. Our final opinion of market value of

the entire project is a lower price per square foot than the recent transfer/contract due primarily to

greater size, and the more mountainous topography/terrain of the project as a whole.

Exposure Time and Marketing Periods Based on statistical information about days on market, escrow length, and marketing times gathered

through national investor surveys, sales verification, and interviews of market participants, marketing

and exposure time estimates of 12 to 18 months and 12 to 18 months, respectively, are considered

reasonable and appropriate for the subject property.


GENERAL ASSUMPTIONS & LIMITING CONDITIONS


General Assumptions and Limiting Conditions

This appraisal is subject to the following general assumptions and limiting conditions:

1. The legal description – if furnished to us – is assumed to be correct.

2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil conditions,

engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does

not constitute a survey of the property appraised. All existing liens and encumbrances have been

disregarded and the property is appraised as though free and clear, under responsible ownership

and competent management unless otherwise noted.

3. Unless otherwise noted, the appraisal will value the property as though free of contamination.

Valbridge Property Advisors | Las Vegas | Reno will conduct no hazardous materials or

contamination inspection of any kind. It is recommended that the client hire an expert if the

presence of hazardous materials or contamination poses any concern.

4. The stamps and/or consideration placed on deeds used to indicate sales are in correct relationship

to the actual dollar amount of the transaction.

5. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions

existing in the subject property.

6. The appraiser is not required to give testimony or attendance in court by reason of this appraisal,

unless previous arrangements have been made.

7. Unless expressly specified in the engagement letter, the fee for this appraisal does not include the

attendance or giving of testimony by Appraiser at any court, regulatory or other proceedings, or

any conferences or other work in preparation for such proceeding. If any partner or employee of

Valbridge Property Advisors | Las Vegas | Reno is asked or required to appear and/or testify at any

deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this

assignment, client shall compensate Appraiser for the time spent by the partner or employee in

appearing and/or testifying and in preparing to testify according to the Appraiser’s then current

hourly rate plus reimbursement of expenses.

8. The values for land and/or improvements, as contained in this report, are constituent parts of the

total value reported and neither is (or are) to be used in making a summation appraisal of a

combination of values created by another appraiser. Either is invalidated if so used.

9. The dates of value to which the opinions expressed in this report apply are set forth in this report.

We assume no responsibility for economic or physical factors occurring at some point at a later

date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates

contained herein are based on current market conditions and anticipated short-term supply and

demand factors and are subject to change with future conditions. Appraiser is not responsible for

determining whether the date of value requested by Client is appropriate for Client’s intended use.

10. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing

the property. The appraiser has made no survey of the property and assumed no responsibility in

connection with such matters.

11. The information, estimates and opinions, which were obtained from sources outside of this office,

are considered reliable. However, no liability for them can be assumed by the appraiser.




12. Possession of this report, or a copy thereof, does not carry with it the right of publication. Neither

all, nor any part of the content of the report, or copy thereof (including conclusions as to property

value, the identity of the appraisers, professional designations, reference to any professional

appraisal organization 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.

13. No claim is intended to be expressed for matters of expertise that would require specialized

investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no

expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control,

mechanical, etc.

14. This appraisal was prepared for the sole and exclusive use of the client for the function outlined

herein. Any party who is not the client or intended user identified in the appraisal or engagement

letter is not entitled to rely upon the contents of the appraisal without express written consent of

Valbridge Property Advisors | Las Vegas | Reno and Client. The Client shall not include partners,

affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability

or accountability to any third party.

15. Distribution of this report is at the sole discretion of the client, but third-parties not listed as an

intended user on the face of the appraisal or the engagement letter may not rely upon the contents

of the appraisal. In no event shall client give a third-party a partial copy of the appraisal report. We

will make no distribution of the report without the specific direction of the client.

16. This appraisal shall be used only for the function outlined herein, unless expressly authorized by

Valbridge Property Advisors | Las Vegas |Reno.

17. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of

context.

18. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property

does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted,

we have not completed nor have we contracted to have completed an investigation to identify

and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the

appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this

determination.

19. The flood maps are not site specific. We are not qualified to confirm the location of the subject

property in relation to flood hazard areas based on the FEMA Flood Insurance Rate Maps or other

surveying techniques. It is recommended that the client obtain a confirmation of the subject

property’s flood zone classification from a licensed surveyor.

20. If the appraisal is for mortgage loan purposes 1) we assume satisfactory completion of

improvements if construction is not complete, 2) no consideration has been given for rent loss

during rent-up unless noted in the body of this report, and 3) occupancy at levels consistent with

our “Income and Expense Projection” are anticipated.

21. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or

structures which would render it more or less valuable. No responsibility is assumed for such

conditions or for engineering which may be required to discover them.




22. Our inspection included an observation of the land and improvements thereon only. It was not

possible to observe conditions beneath the soil or hidden structural components within the

improvements. We inspected the buildings involved, and reported damage (if any) by termites, dry

rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or

degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and

plumbing equipment is considered to be commensurate with the condition of the balance of the

improvements unless otherwise stated. Should the client have concerns in these areas, it is the

client’s responsibility to order the appropriate inspections. The appraiser does not have the skill or

expertise to make such inspections and assumes no responsibility for these items.

23. This appraisal does not guarantee compliance with building code and life safety code requirements

of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy

or other legislative or administrative authority from any local, state or national governmental or

private entity or organization have been or can be obtained or renewed for any use on which the

value conclusion contained in this report is based unless specifically stated to the contrary.

24. When possible, we have relied upon building measurements provided by the client, owner, or

associated agents of these parties. In the absence of a detailed rent roll, reliable public records, or

“as-built” plans provided to us, we have relied upon our own measurements of the subject

improvements. We follow typical appraisal industry methods; however, we recognize that some

factors may limit our ability to obtain accurate measurements including, but not limited to, property

access on the day of inspection, basements, fenced/gated areas, grade elevations,

greenery/shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles,

immobile obstructions, etc. Professional building area measurements of the quality, level of detail,

or accuracy of professional measurement services are beyond the scope of this appraisal

assignment.

25. We have attempted to reconcile sources of data discovered or provided during the appraisal

process, including assessment department data. Ultimately, the measurements that are deemed by

us to be the most accurate and/or reliable are used within this report. While the measurements and

any accompanying sketches are considered to be reasonably accurate and reliable, we cannot

guarantee their accuracy. Should the client desire more precise measurement, they are urged to

retain the measurement services of a qualified professional (space planner, architect or building

engineer) as an alternative source. If this alternative measurement source reflects or reveals

substantial differences with the measurements used within the report, upon request of the client,

the appraiser will submit a revised report for an additional fee.

26. In the absence of being provided with a detailed land survey, we have used assessment department

data to ascertain the physical dimensions and acreage of the property. Should a survey prove this

information to be inaccurate, upon request of the client, the appraiser will submit a revised report

for an additional fee.

27. If only preliminary plans and specifications were available for use in the preparation of this appraisal,

and a review of the final plans and specifications reveals substantial differences upon request of

the client the appraiser will submit a revised report for an additional fee.




28. Unless otherwise stated in this report, the value conclusion is predicated on the assumption that

the property is free of contamination, environmental impairment or hazardous materials. Unless

otherwise stated, the existence of hazardous material was not observed by the appraiser and 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 substances such as asbestos,

urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value

of the property. No responsibility is assumed for any such conditions, or for any expertise or

engineering knowledge required for discovery. The client is urged to retain an expert in this field, if

desired.

29. The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. We have not made

a specific compliance survey of the property to determine if it is in conformity with the various

requirements of the ADA. It is possible that a compliance survey of the property, together with an

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 could have a negative effect on the value of

the property. Since we have no direct evidence relating to this issue, we did not consider possible

noncompliance with the requirements of ADA in developing an opinion of value.

30. This appraisal applies to the land and building improvements only. The value of trade fixtures,

furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered

in this appraisal unless specifically stated to the contrary.

31. No changes in any federal, state or local laws, regulations or codes (including, without limitation,

the Internal Revenue Code) are anticipated, unless specifically stated to the contrary.

32. Any income and expense estimates contained in the appraisal report are used only for the purpose

of estimating value and do not constitute prediction of future operating results. Furthermore, it is

inevitable that some assumptions will not materialize and that unanticipated events may occur that

will likely affect actual performance.

33. Any estimate of insurable value, if included within the scope of work and presented herein, is based

upon figures developed consistent with industry practices. However, actual local and regional

construction costs may vary significantly from our estimate and individual insurance policies and

underwriters have varied specifications, exclusions, and non-insurable items. As such, we strongly

recommend that the Client obtain estimates from professionals experienced in establishing

insurance coverage. This analysis should not be relied upon to determine insurance coverage and

we make no warranties regarding the accuracy of this estimate.

34. The data gathered in the course of this assignment (except data furnished by the Client) shall remain

the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser-

client relationship by improperly disclosing any confidential information furnished to the appraiser.

Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any

portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal

Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and

Regulations of such Institute now or hereafter in effect.




35. You and Valbridge Property Advisors | Las Vegas | Reno both agree that any dispute over matters

in excess of $5,000 will be submitted for resolution by arbitration. This includes fee disputes and

any claim of malpractice. The arbitrator shall be mutually selected. If Valbridge Property Advisors |

Las Vegas | Reno and the client cannot agree on the arbitrator, the presiding head of the Local

County Mediation & Arbitration panel shall select the arbitrator. Such arbitration shall be binding

and final. In agreeing to arbitration, we both acknowledge that, by agreeing to binding arbitration,

each of us is giving up the right to have the dispute decided in a court of law before a judge or jury.

In the event that the client, or any other party, makes a claim against Valbridge Property Advisors |

Las Vegas | Reno or any of its employees in connections with or in any way relating to this

assignment, the maximum damages recoverable by such claimant shall be the amount actually

received by Valbridge Property Advisors | Las Vegas | Reno for this assignment, and under no

circumstances shall any claim for consequential damages be made.

36. Valbridge Property Advisors | Las Vegas | Reno shall have no obligation, liability, or accountability

to any third party. Any party who is not the “client” or intended user identified on the face of the

appraisal or in the engagement letter is not entitled to rely upon the contents of the appraisal

without the express written consent of Valbridge Property Advisors | Las Vegas | Reno. “Client” shall

not include partners, affiliates, or relatives of the party named in the engagement letter. Client shall

hold Valbridge Property Advisors | Las Vegas | Reno and its employees harmless in the event of any

lawsuit brought by any third party, lender, partner, or part-owner in any form of ownership or any

other party as a result of this assignment. The client also agrees that in case of lawsuit arising from

or in any way involving these appraisal services, client will hold Valbridge Property Advisors | Las

Vegas | Reno harmless from and against any liability, loss, cost, or expense incurred or suffered by

Valbridge Property Advisors | Las Vegas | Reno in such action, regardless of its outcome.

37. The Valbridge Property Advisors office responsible for the preparation of this report is

independently owned and operated by Lubawy and Associates, Inc.. Neither Valbridge Property

Advisors, Inc., nor any of its affiliates has been engaged to provide this report. Valbridge Property

Advisors, Inc. does not provide valuation services, and has taken no part in the preparation of this

report.

38. If any claim is filed against any of Valbridge Property Advisors, Inc., a Florida Corporation, its

affiliates, officers or employees, or the firm providing this report, in connection with, or in any way

arising out of, or relating to, this report, or the engagement of the firm providing this report, then

(1) under no circumstances shall such claimant be entitled to consequential, special or other

damages, except only for direct compensatory damages, and (2) the maximum amount of such

compensatory damages recoverable by such claimant shall be the amount actually received by the

firm engaged to provide this report.

39. This report and any associated work files may be subject to evaluation by Valbridge Property

Advisors, Inc., or its affiliates, for quality control purposes.

40. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing general

assumptions and limiting conditions.


CERTIFICATION


Certification – Karen Park, MAI, ASA

I certify that, to the best of my knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and

limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions,

and conclusions.

3. 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.

4. The undersigned has not performed 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.

5. I have no bias with respect to the property that is the subject of this report or to the parties involved

with this assignment.

6. My engagement in this assignment was not contingent upon developing or reporting

predetermined results.

7. 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 value opinion, the attainment of a stipulated result, or the occurrence of a subsequent

event directly related to the intended use of this appraisal.

8. My analyses, opinions and conclusions were developed, and this report has been prepared, in

conformity with the Uniform Standards of Professional Appraisal Practice.

9. Karen Park has personally inspected the subject property.

10. No one provided significant real property appraisal assistance to the person signing this

certification, unless otherwise noted.

11. 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.

12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by

its duly authorized representatives.

13. As of the date of this report, the undersigned has completed the continuing education program for

Designated Members of the Appraisal Institute.

14. The American Society of Appraisers has a mandatory reaccreditation program for all of its

Designated Members. I am in compliance with that program.


Managing Director




CERTIFICATION


Certification – Matthew Lubawy, MAI, CVA

I certify that, to the best of my knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and

limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions,

and conclusions.

3. 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.

4. The undersigned has not performed 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.

5. I have no bias with respect to the property that is the subject of this report or to the parties involved

with this assignment.

6. My engagement in this assignment was not contingent upon developing or reporting

predetermined results.

7. 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 value opinion, the attainment of a stipulated result, or the occurrence of a subsequent

event directly related to the intended use of this appraisal.

8. My analyses, opinions and conclusions were developed, and this report has been prepared, in

conformity with the Uniform Standards of Professional Appraisal Practice.

9. Matthew Lubawy did not personally inspect the subject property.

10. No one provided significant real property appraisal assistance to the person signing this

certification, unless otherwise noted.

11. 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.

12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by

its duly authorized representatives.

13. As of the date of this report, the undersigned has completed the continuing education program for

Designated Members of the Appraisal Institute.

Matthew Lubawy, MAI, CVA





ADDENDA


Addenda

Subject Photos

Legal Description

Letter of Engagement

Glossary

Qualifications

• Karen Park, MAI, ASA - Managing Director

• Matthew Lubawy, MAI, CVA - Senior Managing Director

Information on Valbridge Property Advisors

Office Locations


ADDENDA


Subject Photographs

Ventana Ridge project upslope from southern

edge

Ventana Ridge project upslope from southern

edge

Ventana Ridge project upslope from terminus of

Sunline Dr (original easement across City of

Reno land)

Natural drainageway at southwestern portion of

project

At terminus of easement looking east along

Peavine Creek Rd

At terminus of easement looking west along

Peavine Creek Rd to gated emergency vehicle

access to Somersett subdivision


ADDENDA


Legal Description


ADDENDA



ADDENDA


Letter of Engagement


ADDENDA



ADDENDA


Glossary Definitions are taken from The Dictionary of Real Estate Appraisal, 6th Edition (Dictionary), the Uniform

Standards of Professional Appraisal Practice (USPAP), and Building Owners and Managers Association

International (BOMA).

Absolute Net Lease

A lease in which the tenant pays all expenses

including structural maintenance, building

reserves, and management; often a long-term

lease to a credit tenant. (Dictionary)

Amortization

The process of retiring a debt or recovering a

capital investment, typically through scheduled,

systematic repayment of the principal; a program

of periodic contributions to a sinking fund or

debt retirement fund. (Dictionary)

As Is Market Value

The estimate of the market value of real property

in its current physical condition, use, and zoning

as of the appraisal date. (Dictionary)

Base Rent

The minimum rent stipulated in a lease.

(Dictionary)

Base Year

The year on which escalation clauses in a lease

are based. (Dictionary)

Building Common Area

In office buildings, the areas of the building that

provide services to building tenants but which

are not included in the office area or store area

of any specific tenant. These areas may include,

but shall not be limited to, main and auxiliary

lobbies, atrium spaces at the level of the finished

floor, concierge areas or security desks,

conference rooms, lounges or vending areas,

food service facilities, health or fitness centers,

daycare facilities, locker or shower facilities, mail

rooms, fire control rooms, fully enclosed

courtyards outside the exterior walls, and

building core and service areas such as fully

enclosed mechanical or equipment rooms.

Specifically excluded from building common area

are floor common areas, parking space, portions

of loading docks outside the building line, and

major vertical penetrations. (BOMA)

Building Rentable Area

The sum of all floor rentable areas. Floor rentable

area is the result of subtracting from the gross

measured area of a floor the major vertical

penetrations on that same floor. It is generally

fixed for the life of the building and is rarely

affected by changes in corridor size or

configuration. (BOMA)

Certificate of Occupancy (COO)

A formal written acknowledgment by an

appropriate unit of local government that a new

construction or renovation project is at the stage

where it meets applicable health and safety

codes and is ready for commercial or residential

occupancy. (Dictionary)

Common Area Maintenance (CAM)

The expense of operating and maintaining

common areas; may or may not include

management charges and usually does not

include capital expenditures on tenant

improvements or other improvements to the

property. (Dictionary)

The amount of money charged to tenants for

their shares of maintaining a [shopping] center’s

common area. The charge that a tenant pays for

shared services and facilities such as electricity,

security, and maintenance of parking lots. Items

charged to common area maintenance may

include cleaning services, parking lot sweeping

and maintenance, snow removal, security and

upkeep. (ICSC – International Council of

Shopping Centers, 4th Ed.)

Condominium

A multiunit structure, or a unit within such a

structure, with a condominium form of

ownership. (Dictionary)

Conservation Easement

An interest in real estate restricting future land

use to preservation, conservation, wildlife habitat,

or some combination of those uses. A


ADDENDA


conservation easement may permit farming,

timber harvesting, or other uses of a rural nature

as well as some types of conservation-oriented

development to continue, subject to the

easement. (Dictionary)

Contributory Value

A type of value that reflects the amount a

property or component of a property contributes

to the value of another asset or to the property

as a whole.

The change in the value of a property as a whole,

whether positive or negative, resulting from the

addition or deletion of a property component.

Also called deprival value in some countries.

(Dictionary)

Debt Coverage Ratio (DCR)

The ratio of net operating income to annual debt

service (DCR = NOI/Im), which measures the

relative ability of a property to meet its debt

service out of net operating income; also called

debt service coverage ratio (DSCR). A larger DCR

typically indicates a greater ability for a property

to withstand a reduction of income, providing an

improved safety margin for a lender. (Dictionary)

Deed Restriction

A provision written into a deed that limits the use

of land. Deed restrictions usually remain in effect

when title passes to subsequent owners.

(Dictionary)

Depreciation

In appraisal, a loss in property value from any

cause; the difference between the cost of an

improvement on the effective date of the

appraisal and the market value of the

improvement on the same date.

In accounting, an allocation of the original cost of

an asset, amortizing the cost over the asset’s life;

calculated using a variety of standard techniques.

(Dictionary)

Disposition Value

The most probable price that a specified interest

in property should bring under the following

conditions:

• Consummation of a sale within a specified

time, which is shorter than the typical

exposure time for such a property in that

market.

• The property is subjected to market

conditions prevailing as of the date of

valuation;

• Both the buyer and seller are acting

prudently and knowledgeably;

• The seller is under compulsion to sell;

• The buyer is typically motivated;

• Both parties are acting in what they consider

to be their best interests;

• An adequate marketing effort will be made

during the exposure time;

• Payment will be made in cash in U.S. dollars

(or the local currency) or in terms of financial

arrangements comparable thereto; and

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. (Dictionary)

Easement

The right to use another’s land for a stated

purpose. (Dictionary)

EIFS

Exterior Insulation Finishing System. This is a type

of exterior wall cladding system. Sometimes

referred to as dry-vit.

Effective Date

The date on which the appraisal or review

opinion applies. (SVP)

In a lease document, the date upon which the

lease goes into effect. (Dictionary)

Effective Gross Income (EGI)

The anticipated income from all operations of the

real estate after an allowance is made for vacancy

and collection losses and an addition is made for

any other income. (Dictionary)


ADDENDA


Effective Rent

Total base rent, or minimum rent stipulated in a

lease, over the specified lease term minus rent

concessions; the rent that is effectively paid by a

tenant net of financial concessions provided by a

landlord. (TIs). (Dictionary)

EPDM

Ethylene Propylene Diene Monomer Rubber. A

type of synthetic rubber typically used for roof

coverings. (Dictionary)

Escalation Clause

A clause in an agreement that provides for the

adjustment of a price or rent based on some

event or index. e.g., a provision to increase rent if

operating expenses increase; also called escalator

clause, expense recovery clause or stop clause.

(Dictionary)

Estoppel Certificate

A signed statement by a party (such as a tenant

or a mortgagee) certifying, for another’s benefit,

that certain facts are correct, such as that a lease

exists, that there are no defaults, and that rent is

paid to a certain date. (Black’s) In real estate, a

buyer of rental property typically requests

estoppel certificates from existing tenants.

Sometimes referred to as an estoppel letter.

(Dictionary)

Excess Land

Land that is not needed to serve or support the

existing use. The highest and best use of the

excess land may or may not be the same as the

highest and best use of the improved parcel.

Excess land has the potential to be sold

separately and is valued separately. (Dictionary)

Excess Rent

The amount by which contract rent exceeds

market rent at the time of the appraisal; created

by a lease favorable to the landlord (lessor) and

may reflect unusual management,

unknowledgeable or unusually motivated parties,

a lease execution in an earlier, stronger rental

market, or an agreement of the parties.

(Dictionary)

Expense Stop

A clause in a lease that limits the landlord’s

expense obligation, which results in the lessee

paying operating expenses above a stated level

or amount. (Dictionary)

Exposure Time

The time a property remains on the market.

The estimated length of time that 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;

Comment: Exposure time is a retrospective

opinion based on an analysis of past events

assuming a competitive and open market.

(Dictionary)

Extraordinary Assumption

An assignment-specific assumption as of the

effective date regarding uncertain information

used in an analysis which, if found to be false,

could alter the appraiser’s opinions or

conclusions.

Comment: Uncertain information might include

physical, legal, or economic characteristics of the

subject property; or conditions external to the

property, such as market conditions or trends; or

the integrity of data used in an analysis. (USPAP)

Fee Simple Estate

Absolute ownership unencumbered by any other

interest or estate, subject only to the limitations

imposed by the governmental powers of

taxation, eminent domain, police power, and

escheat. (Dictionary)

Floor Common Area

In an office building, the areas on a floor such as

washrooms, janitorial closets, electrical rooms,

telephone rooms, mechanical rooms, elevator

lobbies, and public corridors which are available

primarily for the use of tenants on that floor.

(BOMA)

Full Service (Gross) Lease

A lease in which the landlord receives stipulated

rent and is obligated to pay all of the property’s


ADDENDA


operating and fixed expenses; also called a full

service lease. (Dictionary)

Furniture, Fixtures, and Equipment (FF&E)

Business trade fixtures and personal property,

exclusive of inventory. (Dictionary)

Going-Concern Value

An outdated label for the market value of all the

tangible and intangible assets of an established

and operating business with an indefinite life, as

if sold in aggregate; more accurately termed the

market value of the going concern or market value

of the total assets of the business. (Dictionary)

Gross Building Area (GBA)

Total floor area of a building, excluding

unenclosed areas, measured from the exterior of

the walls of the above-grade area. This includes

mezzanines and basements if and when typically

included in the market area of the type of

property involved.

Gross leasable area plus all common areas.

For residential space, the total area of all floor

levels measured from the exterior of the walls

and including the superstructure and

substructure basement; typically does not

include garage space. (Dictionary)

Gross Measured Area

The total area of a building enclosed by the

dominant portion (the portion of the inside

finished surface of the permanent outer building

wall which is 50 percent or more of the vertical

floor-to-ceiling dimension, at the given point

being measured as one moves horizontally along

the wall), excluding parking areas and loading

docks (or portions of same) outside the building

line. It is generally not used for leasing purposes

and is calculated on a floor by floor basis. (BOMA)

Gross Up Method

A method of calculating variable operating

expenses in income-producing properties when

less than 100% occupancy is assumed. Expenses

reimbursed based on the amount of occupied

space, rather than on the total building area, are

described as “grossed up.” (Dictionary)

Gross Retail Sellout

The sum of the separate and distinct market

value opinions for each of the units in a

condominium, subdivision development, or

portfolio of properties, as of the date of

valuation. The aggregate of retail values does not

represent the value of all the units as though sold

together in a single transaction; it is simply the

total of the individual market value conclusions.

Also called the aggregate of the retail values,

aggregate retail selling price or sum of the retail

values. (Dictionary)

Ground Lease

A lease that grants the right to use and occupy

land. Improvements made by the ground lessee

typically revert to the ground lessor at the end of

the lease term. (Dictionary)

Ground Rent

The rent paid for the right to use and occupy land

according to the terms of a ground lease; the

portion of the total rent allocated to the

underlying land. (Dictionary)

HVAC

Heating, ventilation, air conditioning (HVAC)

system. A unit that regulates the temperature

and distribution of heat and fresh air throughout

a building. (Dictionary)

Highest and Best Use

The reasonably probable use of property that

results in the highest value. The four criteria that

the highest and best use must meet are legal

permissibility, physical possibility, financial

feasibility, and maximum productivity.

The use of an asset that maximizes its potential

and that is possible, legally permissible, and

financially feasible. The highest and best use may

be for continuation of an asset’s existing use of

for some alternative use. This is determined by

the use that a market participant would have in

mind for the asset when formulating the price

that it would be willing to bid. (IVS)

[The] highest and most profitable use for which

the property is adaptable and needed or likely to

be needed in the reasonably near future.


ADDENDA


(Uniform Appraisal Standards for Federal Land

Acquisitions) (Dictionary)

Hypothetical Condition

A condition, directly related to a specific

assignment, which is contrary to what is known

by the appraiser to exist on the effective date of

the assignment results, but is used for the

purpose of analysis.

Comment: Hypothetical conditions are contrary

to known facts about physical, legal, or economic

characteristics of the subject property; or about

conditions external to the property, such as

market conditions or trends; or about the

integrity of data used in an analysis. (USPAP)

Industrial Gross Lease

A type of modified gross lease of an industrial

property in which the landlord and tenant share

expenses. The landlord receives stipulated rent

and is obligated to pay certain operating

expenses, often structural maintenance,

insurance and real property taxes, as specified in

the lease. There are significant regional and local

differences in the use of this term. (Dictionary)

Insurable Value

A type of value for insurance purposes. (Typically

this includes replacement cost less basement

excavation, foundation, underground piping and

architect’s fees). (Dictionary)

Investment Value

The value of a property to a particular investor or

class of investors based on the investor’s specific

requirements. Investment value may be different

from market value because it depends on a set of

investment criteria that are not necessarily typical

of the market. (Dictionary)

Just Compensation

In condemnation, the amount of loss for which a

property owner is compensated when his or her

property is taken. Just compensation should put

the owner in as good a position pecuniarily as he

or she would have been if the property had not

been taken. (Dictionary)

Leased Fee Interest

The ownership interest held by the lessor, which

includes the right to receive the contract rent

specified in the lease plus the reversionary right

when the lease expires. (Dictionary)

Leasehold Interest

The right held by the lessee to use and occupy

real estate for a stated term and under the

conditions specified in the lease. (Dictionary)

Lessee (Tenant)

One who has the right to occupancy and use of

the property of another for a period of time

according to a lease agreement. (Dictionary)

Lessor (Landlord)

One who conveys the rights of occupancy and

use to others under a lease agreement.

(Dictionary)

Liquidation Value

The most probable price that a specified interest

in property should bring under the following

conditions:

• Consummation of a sale within a short time

period.

• The property is subjected to market

conditions prevailing as of the date of

valuation.

• Both the buyer and seller are acting

prudently and knowledgeably.

• The seller is under extreme compulsion to

sell.

• The buyer is typically motivated.

• Both parties are acting in what they consider

to be their best interests.

• A normal marketing effort is not possible due

to the brief exposure time.

• Payment will be made in cash in U.S. dollars

(or the local currency) or in terms of financial

arrangements comparable thereto.


the property sold, unaffected by special or


ADDENDA




Loan to Value Ratio (LTV)

The ratio between a mortgage loan and the value

of the property pledged as security, usually

expressed as a percentage. (Dictionary)

Major Vertical Penetrations

Stairs, elevator shafts, flues, pipe shafts, vertical

ducts, and the like, and their enclosing walls.

Atria, lightwells and similar penetrations above

the finished floor are included in this definition.

Not included, however, are vertical penetrations

built for the private use of a tenant occupying

office areas on more than one floor. Structural

columns, openings for vertical electric cable or

telephone distribution, and openings for

plumbing lines are not considered to be major

vertical penetrations. (BOMA)

Market Rent

The most probable rent that a property should

bring in a competitive and open market reflecting

the conditions and restrictions of a specified

lease agreement, including the rental adjustment

and revaluation, permitted uses, use restrictions,

expense obligations; term, concessions, renewal

and purchase options and tenant improvements

(TIs). (Dictionary)

Market Value

The most probable price that 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:

• Buyer and seller are typically motivated;

• Both parties are well informed or well

advised, and acting in what they consider

their own best interests;

• A reasonable time is allowed for exposure in

the open market;

• Payment is made in terms of cash in United

States dollars or in terms of financial

arrangements comparable thereto; and


the property sold unaffected by special or



Marketing Time

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. Marketing time differs from exposure

time, which is always presumed to precede the

effective date of an appraisal. (Advisory Opinion

7 of the Appraisal Standards Board of the

Appraisal Foundation)

Master Lease

A lease in which the fee owner leases a part or

the entire property to a single entity (the master

lease) in return for a stipulated rent. The master

lessee then leases the property to multiple

tenants. (Dictionary)

Modified Gross Lease

A lease in which the landlord receives stipulated

rent and is obligated to pay some, but not all, of

the property’s operating and fixed expenses.

Since assignment of expenses varies among

modified gross leases, expense responsibility

must always be specified. In some markets, a

modified gross lease may be called a double net

lease, net net lease, partial net lease, or semi-gross

lease. (Dictionary)

Operating Expense Ratio

The ratio of total operating expenses to effective

gross income (TOE/EGI); the complement of the

net income ratio, i.e., OER = 1 – NIR (Dictionary)

Option

A legal contract, typically purchased for a stated

consideration, that permits but does not require

the holder of the option (known as the optionee)

to buy, sell, or lease real estate for a stipulated

period of time in accordance with specified

terms; a unilateral right to exercise a privilege.

(Dictionary)


ADDENDA


Partial Interest

Divided or undivided rights in real estate that

represent less than the whole, i.e., a fractional

interest such as a tenancy in common, easement,

or life interest. (Dictionary)

Pass Through

A tenant’s portion of operating expenses that

may be composed of common area maintenance

(CAM), real property taxes, property insurance,

and any other expenses determined in the lease

agreement to be paid by the tenant. (Dictionary)

Potential Gross Income (PGI)

The total income attributable to property at full

occupancy before vacancy and operating

expenses are deducted. (Dictionary)

Prospective Future Value Upon Completion

A prospective market value may be appropriate

for the valuation of a property interest related to

a credit decision for a proposed development or

renovation project. According to USPAP, an

appraisal with a prospective market value reflects

an effective date that is subsequent to the date

of the appraisal report. … The prospective market

value –as completed- reflects the property’s

market value as of the time that development is

expected to be complete. (Dictionary)

Prospective Future Value Upon Stabilization

A prospective market value may be appropriate

for the valuation of a property interest related to

a credit decision for a proposed development or

renovation project. According to USPAP, an

appraisal with a prospective market value reflects

an effective date that is subsequent to the date

of the appraisal report …The prospective market

value – as stabilized – reflects the property’s

market value as of the time the property is

projected to achieve stabilized occupancy. For an

income-producing property, stabilized

occupancy is the occupancy level that a property

is expected to achieve after the property is

exposed to the market for lease over a

reasonable period of time and at comparable

terms and conditions to other similar properties.

(Dictionary)

Replacement Cost

The estimated cost to construct, at current prices

as of a specific date, a substitute for a building or

other improvements, using modern materials

and current standards, design, and layout.

(Dictionary)

Reproduction Cost

The estimated cost to construct, at current prices

as of the effective date of the appraisal, an exact

duplicate or replica of the building being

appraised, using the same materials, construction

standards, design, layout, and quality of

workmanship and embodying all of the

deficiencies, superadequacies, and obsolescence

of the subject building. (Dictionary)

Retrospective Value Opinion

A value opinion effective as of a specified

historical date. The term retrospective does not

define a type of value. Instead, it identifies a value

opinion as being effective at some specific prior

date. Value as of a historical date is frequently

sought in connection with property tax appeals,

damage models, lease renegotiation, deficiency

judgments, estate tax, and condemnation.

Inclusion of the type of value with this term is

appropriate, e.g., “retrospective market value

opinion.” (Dictionary)

Sandwich Leasehold Estate

The interest held by the sandwich leaseholder

when the property is subleased to another party;

a type of leasehold estate. (Dictionary)

Sublease

An agreement in which the lessee in a prior lease

conveys the right of use and occupancy of a

property to another, the sublessee, for a specific

period of time, which may or may not be

coterminous with the underlying lease term.

(Dictionary)

Subordination

A contractual arrangement in which a party with

a claim to certain assets agrees to make his or her

claim junior, or subordinate, to the claims of

another party. (Dictionary)


ADDENDA


Surplus Land

Land that is not currently needed to support the

existing use but cannot be separated from the

property and sold off for another use. Surplus

land does not have an independent highest and

best use and may or may not contribute value to

the improved parcel. (Dictionary)

TPO

Thermoplastic polyolefin, a resilient synthetic

roof covering.

Triple Net (Net Net Net) Lease

An alternative term for a type of net lease. In

some markets, a net net net lease is defined as a

lease in which the tenant assumes all expenses

(fixed and variable) of operating a property

except that the landlord is responsible for

structural maintenance, building reserves, and

management; also called NNN lease, net net net

lease, or fully net lease. (Dictionary)

(The market definition of a triple net lease varies;

in some cases tenants pay for items such as roof

repairs, parking lot repairs, and other similar

items.)

Usable Area

The measured area of an office area, store area,

or building common area on a floor. The total of

all the usable areas for a floor shall equal floor

usable area of that same floor. (BOMA)

Value-in-Use

The value of a property assuming a specific use,

which may or may not be the property’s highest

and best use on the effective date of the

appraisal. Value in use may or may not be equal

to market value but is different conceptually.

(Dictionary)

VTAB

Value of the Total Assets of a Business. The value

of a going concern (i.e. the business enterprise).

(Dictionary)


ADDENDA


Qualifications

Qualifications of Karen Park, MAI, ASA

Managing Director Valbridge Property Advisors | Las Vegas | Reno

Independent Valuations for a Variable World

Related Courses/Seminars:

Laws for Nevada Appraisers

Income Approach to Value

Hotel Assessments and Intangibles

Business Practices and Ethics

Rates & Ratios: Making Sense of GIM, OAR & DCF

Advanced Sales Comparison and Cost Approaches

Advanced Market Analysis and Highest and Best Use

Analyzing Tenant Credit Risk and Leases

Tax Appeal Issues of Appraisers

Advanced Applications

Forecasting Revenue

Advanced Income Capitalization

Analyzing Operating Expenses

Experience:

Managing Director

Valbridge Property Advisors (January 2019 to present)

Owner/Certified General Appraiser

AmeriBrit Valuations (August 2018 – December 2018)

Supervising Appraiser

Santa Clara County Assessor’s Office (March 2015 – December 2018)

Senior Commercial Appraiser

Pacific Appraisers (September 2013 – March 2015)

Commercial Appraiser

JPMorgan Chase (June 2011 – September 2013)

Certified General Real Estate Appraiser

Independent Fee Appraiser (July 2004 – June 2011)

Appraisal/valuation and consulting assignments include:

commercial, multifamily (apartments), special purpose properties

(including golf courses, seniors housing, and regional malls), new

construction, and residential land subdivision. Eight years of

experience as a business consultant for major banks, finance

houses, and mortgage lenders.

State Certifications

State of Nevada

License #A.0207475-CG

State of California

License #AG034737

Education

Bachelor of Science,

Computer Sciences

California Polytechnic State

University, San Luis Obispo

1982-1985

University of California,

Berkeley Extension

Finance and Business

Administration (pre-MBA)

1987-1989

Contact Details

702-242-9369 (p)

702-242-6391 (f)

Valbridge Property Advisors |

Las Vegas | Reno

6490 S McCarran Blvd., #51

Reno, NV 89509

www.valbridge.com

[email protected]

http://www.valbridge.com/

mailto:[email protected]


ADDENDA



ADDENDA


Qualifications of Matthew Lubawy, MAI, CVA

Senior Managing Director Valbridge Property Advisors | Las Vegas | Reno

Independent Valuations for a Variable World

Membership/Affiliations:

Member: Appraisal Institute - MAI Designation #10653

Director - (2008 – 2011)

President of Las Vegas Chapter (1998 - 1999)

1st V.P. of Las Vegas Chapter (1997 – 1998)

2nd V.P. of Las Vegas Chapter (1996 – 1997)

Member: NACVA – CVA Designation (Certified Valuation

Analyst for business valuation)

Board Member: Valbridge Property Advisors -

Vice-Chairman of the Board of Directors

(2011 – Present)

Member: International Right of Way Association

Member: National Association of Realtors

Member: GLVAR

Board Member: Nevada State Development Corporation

Chairman of the Board (2008-Present)

Experience:


Valbridge Property Advisors (2013 to Present)

Principal

Lubawy & Associates (1994-2013)

Independent Fee Appraiser and Real Estate Consultant

Timothy R. Morse and Associates (1992 – 1994)

Staff Appraiser/Assistant Vice President

First Interstate Bank (1988 - 1992)

Independent Fee Appraiser and Real Estate Consultant

The Clark Companies (1987 - 1988)

Appraisal/valuation and consulting assignments include: vacant land; apartment buildings; retail

buildings; shopping centers; office buildings; industrial buildings; religious and special purpose

properties including schools, churches hotel/casinos air hangars, automobile dealerships, residential

subdivisions, and master-planned communities. Other assignments include tax credit valuations,

Fannie Mae and Freddie Mac reports, and HUD MAP valuations and market studies, as well as

valuation of fractional interests in FLP’s, LP’s LLC’s and/or other business entities.

State Certifications

Nevada License

# A.0000044-CG

Arizona License

#32072

Michigan License

#1201075624

Education

Bachelor of Science

Business Administration

University of Nevada,

Las Vegas

Contact Details

702-242-9369 (p)

702-242-6391 (f)

Valbridge Property Advisors |

Las Vegas | Reno

3034 S. Durango Dr. #100

Las Vegas, NV 89117

www.valbridge.com

[email protected]

http://www.valbridge.com/

mailto:[email protected]


ADDENDA


Appraisal Institute & Related Courses:

Eminent Domain 2016, CLE International September, 2016

Supervisor Trainee Course for Nevada January, 2016

USPAP 2016/2017 January, 2016

Small Hotel/Motel Valuation

NEBB Institute Machinery & Equipment Certification Training

February 2015

January 2014

2014-2015 National USPAP Update Course, Appraisal Institute January 2014

NACVA Business Valuation Certification and Training Center December 2013

Fundamentals of Separating Real Property, Personal Property, and Intangible

Business Assets, Appraisal Institute

March 2012

7-Hour National USPAP Update Course, Appraisal Institute January 2012

2010-2011 National USPAP Update, Appraisal Institute January 2010

Appraising Distressed Commercial Real Estate, Appraisal Institute July 2009

Understanding the Home Valuation Code of Conduct, Appraisal Institute June 2009

Introduction to Valuation for Financial Reporting, Appraisal Institute June 2009

Argus Based Discounted Cash Flow Analysis, Appraisal Institute June 2009

National Uniform Standards of Professional Practice Course 400, Appraisal

Institute

April 2009

Online Scope of Work: Expanding Your Range of Services, Appraisal Institute April 2009

Online Rates and Ratios: Making sense of GIMs, OARs and DCF, Appraisal Institute April 2009

Forecasting Revenue, Appraisal Institute October 2008

Law of Easements: Legal Issues & Practical Considerations, Lorman Education August 2008

Analyzing Operating Expenses, Appraisal Institute May, 2007

Valuation of Detrimental Conditions in Real Estate, Appraisal Institute April, 2007

2007 National USPAP Update, Appraisal Institute March, 2007

Analyzing Commercial Lease Clauses, Appraisal Institute February, 2007

Analyzing Distressed Real Estate, Appraisal Institute February, 2007

Uniform Appraisal Standards for Federal Land Acquisitions, Appraisal Institute October 2005

Online Analyzing Distressed Real Estate, Appraisal Institute September 2005

Business Practices and Ethics, Course 420, Appraisal Institute September 2005

USPAP Update – Course 400, Appraisal Institute February 2005

Litigation Appraising: Specialized Topics and Applications October 2004

Separating Real & Personal Property from Intangible Business Assets September 2003

So. NV Public Land Mgt. Act BLM Appraisal Compliance Workshop May 2003

Income Capitalization March 2003

Appraising Non-Conforming and Difficult Properties March 2003

Appraiser Liability March 2003

2003 National USPAP February 2003

Valuation of Partial Acquisitions, Course 401 through IRWA October 2000

Partial Interest Valuation – Divided, Course A7414 April 2000

Highest & Best Use and Market Analysis March 2000

Subdivision Analysis January 2000

Writing the Narrative Appraisal Report November 1999

USPAP 1999 Revisions A7415ES March 1999

Reporting Sales Comparison Grid Adj. for Residential Properties March 1999

USPAP 1999 Revisions – A7415ES March 1998

Litigation Appraisal and Expert Testimony June 1997

USPAP (Parts A & B) 1996


ADDENDA


Ethics - USPAP Statements March 1995

Comprehensive Appraisal Workshop July 1994

Current Issues and Misconceptions in Appraisal December 1993

Standards of Professional Appraisal Practice, Part B 1992

Land Faire Nevada July 1992

Appraising From Blueprints and Specifications September 1992

Accrued Depreciation September 1992

Standards of Professional Appraisal Practice, Part A 1991

Report Writing and Valuation Analysis; Exam 2-2 June 1991

Case Studies; Exam 2-1 June 1991

Capitalization Theory and Techniques, Part B; Exam 1-BB June 1990

Capitalization Theory and Techniques, Part A; Exam 1-BA June 1990

Basic Valuation; Exam 1A2 May 1989

Principles of Real Estate Appraisal ; Exam 1A1 May 1989

National Association of Certified Valuators and Analysts (NACVA) Business Valuation Courses:

Working Your Way Through the DLOM Minefield 2017

Valuing Fast-Food Restaurants 2017

Valuation of Family Limited Partnerships 2017

Intangible Asset Valuation: Cost Approach Valuation Methods and Procedures 2017

ESOP Basics 2017

Common Sense and The S Corp Value Question 2017

Buy Sell Agreements 2017

Trust and Estates: S-Corporation Valuation Issues 2017

Trust and Estates: Gift & Estate Case Law Update 2017

The Expert’s Draft Report and Pre-Trial Communications with Counsel 2017

Intangible Asset Valuation and Fair Value Accounting 2017

How and When to Implement a Discount for Lack of Control in Your Valuation 2017

Federal and State Case Law Update 2017

Business Valuation, DLOM and Daubert: The Issue of Redundancy 2017

Intangible Asset Valuation Considerations for Entertainment and Sports Businesses 2017

Excel- Building Better Budget Spreadsheets 2017

Excel- Automating Financial Statements 2017

Valuation and How to Address These Issues 2017

Automating Financial Statements 2017

Engagement Risk and Acceptance 2016

Cost of Capital 2016

Income Approach 2016

Guideline Transaction Method 2016

Guideline Company Method 2016

Synthesis of Conclusion 2016

Valuation Software and Databases 2016

Asset Approach 2016

Financial Statement Analysis, Economic, and Industry Overview 2016

Engagement Letters 2016

Information Requests and Site Visits 2016

Report Writing 2016

Discounts and Premiums 2016


ADDENDA



ADDENDA


Valbridge Property Advisors Information / Office Locations


ADDENDA


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