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HomeMy WebLinkAboutSova Appraisal s ovA
Appraisal • Valuation . Consulting
APPRAISAL OF THE CENTRAL HIGHLANDS PLAZA PROPERTY
4601 NE SUNSET BOULEVARD
RENTON, WASHINGTON
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PREPARED FOR
MS.SONJA DAVIS
RES GROUP NW
624 S. LANDER STREET,SUITE 202
SEATTLE,WA 98134
PREPARED BY
SOVA CONSULTING
925 FOURTH AVENUE,STE 2000
SEATTLE,WA 98104
SOVA PROJECT 20014
925 Fourth Ave Ste 2000
Seattle,WA 98104
Appraisal • Valuation • Consulting Greg Goodman,MA1,206.369.0451
Matt Sloan MAI,SRA,206.234.6458
March 4, 2020
Ms.Sonja Davis
RES Group NW
624 S. Lander Street,Suite 202
Seattle, Washington, 98134
RE: Appraisal Report
Central Highlands Plaza
4601 NE Sunset Boulevard
Renton, Washington 98059
Dear Ms. Davis:
In response to your request,we have completed an appraisal of the above referenced property.The purpose of
the appraisal is to report our opinions and conclusions of the market value of the subject property"before and
after" a proposed partial acquisition by the City of Renton.This appraisal is intended for use by RES Group NW
and the City of Renton,as well as both parties'agents, representatives,and legal counsel.The appraisers do not
intend use of this report by others.
The subject property consists of a four-parcel assemblage located at the southwest corner of NE Sunset
Boulevard and Duvall Avenue NE, east of Interstate 405 (1-405) in the Highlands Park neighborhood of Renton.
The site is of a typical square/rectangular shape and has a level to gently sloping topography and is at or near
grade of fronting streets. It contains a total of 349,720sf(8.03 acres) and is zoned Commercial Arterial (CA) by
the City of Renton.The site is improved with a neighborhood retail center with four large, box retailers including
Albertson's, Planet Fitness, Big Lots, and Ace Hardware. The buildings contain a total approximately 93,571sf
and were constructed in 1979. The buildings appear to be in average condition based on our exterior
observations.
The proposed acquisition consists of a five-foot slope and utility easement along the easterly property boundary,
a total of 2,912sf. In addition to the permanent easement, an additional 5-foot strip will be encumbered with a
TCE to allow contractors access to the site while constructing street improvements within the abutting Duvall
Avenue NE right-of-way and easement area for a period of 24 months.The area of acquisition is improved with
asphalt/curbing at three driveway locations,several mid-size to large trees and extensive juniper and small shrub
landscaping. It is our understanding the trees will not be removed; groundcover juniper will likely be removed
and not replaced.Asphalt pavement and curbing will be replaced if removed/impacted. The total TCE area will
occupy 4,820sf for 24-months.
This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule
2-2(a)of the Uniform Standards of Professional Appraisal Practice (USPAP), as well as Federal, State and Sound
Transit requirements. As such, it presents detailed discussions of the data, reasoning, and analyses that were
used in the appraisal process to develop the appraiser's opinion of value.Additional supporting documentation
and analyses is retained in the appraiser's file.
Based on our research and analysis, it is our opinion the market value of the subject site, "before and after"the
proposed acquisition,as of February 22, 2020, is:
Value Conclusions&Allocations
Site Area Total
Before Condition $11,569,000
After Condition $11,497,000
Just Compensation/Diminution $72,000
Easement Acqusition (Rounded) $24,000
Temporary Construction Easement $20,000
Impacted Site Improvements $28,000
ROUNDED $72,000
If you have further questions not answered in the accompanying report or if we can be of additional assistance,
please do not hesitate to contact us.
Sincerely,
Matthew C.Sloan, MAI,SRA
SOVA Consulting
Enclosures
Central Highlands Plaza
20014-Copyright©2020 Transmittal Page 2
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Appraisal.Valuation.Consu!tin`
TABLE OF CONTENTS
Page
Letter of Transmittal
Executive Summary
Subject Property Photographs
Introduction 1
Factual Data 4
Area/Market Analysis 7
Highest and Best Use 9
Before Condition Valuation 11
After Condition Analysis 21
Before and After Value Conclusion 26
Addenda 29
Assumptions and Limiting Conditions
Title Report
Appraiser Qualification
•
Central Highlands Plaza
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EriL ,ing
APPRAISAL SUMMARY AND CONCLUSIONS
Property/project: Central Highlands Plaza Property
Location: 4601 NE Sunset Boulevard, Renton,WA
Site Size: 349,720sf
Improvements: Retail buildings and site improvements(93,571sf)
Utilities: All available
Zoning: TL 5
Highest and Best Use: Continued use of the existing improvements
Acquisition Description: Slope and Utility Easement containing 2,912sf and a corresponding
24-month TCE
Value Conclusions:
Before Condition: $11,569,000
After Condition: $11,497,000
Diminution/Just Compensation: $72,000
Date of Valuation: February 22,2020
Appraisers: Matthew Sloan, MAI,SRA
File: 20014
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AERIAL PHOTO
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Central Highlands Plaza
20014-Copyright©2020
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Appraisal.Valuation.Corsu'ling
NEIGHBORHOOD MAP
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Central Highlands Plaza
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SUBJECT PHOTOS
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Central Highlands Plaza
20014-Copyright©2020 'agE°v
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npprasai Vaivaton Cor au ding
SUBJECT PHOTOS
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Central Highlands Plaza
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Appraisal•Valuation.Consulting
SUBJECT PHOTOS
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Approximate location of proposed utility easement
Central Highlands Plaza
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Appraisal Valuation.Car su'r ng
SUBJECT PHOTOS
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Large trees will be retained
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APDraisal.Valuation.(orsu'nog
INTRODUCTION
Identification of the Subject Property/Legal Description
The subject property consists of a four-parcel assemblage located at the southwest corner of NE Sunset
Boulevard and Duvall Avenue NE, east of 1-405 in the Highlands Park neighborhood of Renton. The site is of a
typical square/rectangular shape and has a level to gently sloping topography and is at or near grade of fronting
streets. It contains a total of 349,720sf(8.03 acres)and is zoned Commercial Arterial(CA) by the City of Renton.
The site is improved with a neighborhood retail center with four large, box retailers including Albertson's, Planet
Fitness, Big Lots,and Ace Hardware.The buildings contain a total approximately 93,571sf and were constructed
in 1979.The buildings appear to be in average condition based on our exterior observations.
A complete legal description can be found in the title report provided by the client, a copy of which is included
in the Addenda to this appraisal.The property is further identified as Assessor's Parcel Numbers 149450-0010,
-0020,-0030,-0050.
Purpose of the Appraisal
The purpose of this appraisal is to report our opinions and conclusions of the market value of the subject
property in the before and after conditions. The difference between the before and after conditions (plus the
TCE) is the diminution in value resulting from the acquisition, or just compensation due the property owner.
Client/Intended Use/Intended Users
The client for this assignment is RES Group NW, acting on behalf of the City of Renton. Intended users of this
report include the client's authorized employees, representatives, agents, and/or legal counsel, as well as the
City of Renton. The intended use of this report is to assist the client and City of Renton in the acquisition of
property rights required for the Duvall Avenue NE improvement project.
Property Rights Appraised
The property right appraised is the fee simple interest subject to existing easements, covenants, and deed
restrictions. Fee simple interest is defined as: '
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.
An easement is defined as follows: 2
An interest in real property that transfers use,but not ownership, of a portion of an owner's property.
This definition may be expanded as:
1 From The Appraisal of Real Estate,Fourteenth Edition,2013,Appraisal Institute,page 5.
2 From The Appraisal of Real Estate,Fourteenth Edition,2013,Appraisal Institute,page 74.
Central Highlands Plaza
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Appraisal.Valuation Cor su'.ring
...the right to perform a specific action on a particular parcel of property, or portion thereof, by the grantees
who do not hold the underlying fee. 3
Definition of Value
The property has been appraised for market value.The definition of Market Value is as follows: 4
The amount of cash which a well-informed buyer, willing but not obligated to buy the property, would pay,and
which a well-informed seller, willing but not obligated to sell it, would accept, taking into consideration all uses
to which the property is adapted or may reasonably be adaptable.
Appraisal Problem/Scope of Work
The appraisal problem is to report our opinion of property value diminution as a result of the proposed
acquisition.The before condition reflects the property (land and impacted site improvements only) as it exists
today, prior to the proposed acquisition and without prior knowledge of the project. We note the property is
located on an older,4-lane arterial with a center two-way turn lane.The after condition assumes the acquisition
has occurred and the project is complete as designed.In this case,the after condition reflects the encumbrance
of the slope and utility easement and the loss of site improvements and landscaping within the acquisition area.
Further,it reflects the property being located on a newly reconfigured four-lane arterial with new curbs,gutters,
sidewalks, and street lighting.A Temporary Construction Easement (TCE)adjacent to the permanent easement
is necessary to allow contractors access to the site while constructing project improvements and to tie-in existing
driveway approaches with the newly configured roadway improvements has also been analyzed.
The scope initially considered all three standard approaches to value: Cost Approach, Income Approach and
Sales Comparison Approach. Following our review, we conclude the improvements will not be impacted by the
acquisition and they have been excluded from our analysis.This appraisal consists of a before and after analysis
of the underlying land and impacted site improvements. The most typical approach to value vacant land is the
Sales Comparison Approach; the Cost Approach is not relevant because the building improvements have been
excluded and the Income Approach is typically only relied upon for improved properties. Our valuation relies
only on the Sales Comparison Approach, an analysis of the most recent and comparable commercial
development land sales in the subject or competing neighborhoods. We have relied upon a modified Cost
Approach in determining the contribution/replacement cost of site improvements that will be removed but not
replaced by the project.The TCE has been analyzed as a rate-of-return to the underlying land value. In appraising
the subject property,the following was performed:
• Discussed the project and subject acquisition with project engineers and client representatives
• Inspected the property(exterior only)
• Inspected the subject and competing neighborhoods
• Researched King County records, Costar, and CBA databases for comparable sales
• Confirmed all sales with buyers,sellers,their agents,and/or public records
• Inspected all comparable sales used in this analysis
3 From The Appraisal of Real Estate,Fourteenth Edition,2013,Appraisal Institute,page 75.
4 From Washington Pattern Jury Instructions,WPI 150.08
Central Highlands Plaza
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• Reviewed all documents as cited throughout this report
Date of Inspection/Valuation
The subject property was not inspected with the property owner. The appraiser discussed the property and
proposed acquisition with the owner's Asset Manager,Dayna Desmond,who authorized the appraiser to inspect
the property independently.The appraisers inspected the property from the public right-of-way and acquisition
area on numerous occasions, most recently on February 22, 2020. The effective date of this appraisal is as of
the most recent inspection by the appraiser on February 22, 2020.
Ownership and Five-Year Sale History
According to the King County records and the title report contained in the Addenda, ownership of the subject
property is vested in Argo Renton LLC (Argonaut Investments, LLC). County records indicate the current owner
purchased the property in October 2013 for$8,950,000.
Exposure Period
Based on the sales and listings relied upon in this appraisal,as well as the marketing time reflected in the market
analysis section of this report, a typical exposure period prior to sale of about 6 to 12 months is considered to
have occurred prior to the valuation date.
Extraordinary Assumptions/Hypothetical Conditions
Hazardous Waste
We have not been provided information regarding environmental contamination/hazardous waste on the
subject property. We assume the property is clean and free of contaminates that would result in a negative
impact to its market value. If contamination or hazardous waste is found to be present on the subject property,
our value conclusion may be impacted.
Project Influence
State and Federal standards require the appraiser is to disregard any decrease or increase in the fair market
value of the subject caused by the project in the before condition.This is a Jurisdictional Exception Rule to USPAP
in order comply with this local legal requirement, which is found in RCW 8.26.180 and WAC 468 100 102 (2).
Project influence is considered in the after condition per Washington Pattern Jury Instructions.
Larger Parcel
In eminent domain, unity of ownership (title/control), contiguity and current use are the three conditions that
establish a larger parcel ownership.In this case,the subject consists of four separate tax parcels,with the largest
parcel containing the shared parking and areas of circulation around the building structures.The three other tax
parcels consist of building footprint areas only.The three parcels are all commonly owned, physically contiguous
and put to the same or a complimentary use. As such, we conclude the four tax parcels described herein
constitute the larger parcel ownership.
Personal Property
There is no personal property included in the concluded values.
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FACTUAL DATA
Description of the Subject Site
Site
The subject property consists of a four-parcel assemblage located at the southwest corner of NE Sunset
Boulevard and Duvall Avenue NE, east of 1-405 in the Highlands Park neighborhood of Renton. The site is of a
typical square/rectangular shape and contains a total of 349,720sf (8.03 acres). Site dimensions is about 600
feet wide (east-west)and with about 590 feet(average)of north-south depth.
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Topography
Topography is generally level to only gently sloping and is at-grade or near-grade with the fronting streets and
surrounding parcels. It is slightly below grade of Duvall Avenue NE.
Access/Exposure
The property has direct access and exposure to both NE Sunset Boulevard and Duvall Avenue NE, both of which
are commercial arterials that make-up the north and east property boundaries, respectively.The west property
boundary consists of Anacortes Avenue NE, a lower-volume side street that provides secondary access to the
subject and a variety of apartments to the south and west.Sunset Boulevard NE is the most significant east-west
corridor through the subject neighborhood, providing regional access to 1-405 to the west. The property has
average commercial exposure, with two intervening pad sites partially blocking exposure to Sunset Boulevard
NE but good exposure to Duvall Avenue NE.
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Sensitive Areas
According to available mapping and per an inspection of the property, the site contains no apparent
environmentally sensitive areas that would hinder development or have a negative impact on market value.
Soils
No soil information was provided by the client. Based on the existing improvements on the subject and
surrounding properties,the soils are assumed adequate for development.
Utilities
All typical utilities, including electricity,sewer, gas, water, and telephone services are available to the site.
Easements and Encumbrances
The property is impacted by a variety of encumbering easements,though most are relatively minor/typical and
do not impact the current use, nor will they have a significant impact on likely future uses. We note reciprocal
parking and access agreements with the frontage pad sites,which is typical for this property type.
Zoning
The subject is zoned Commercial Arterial (CA) by the City of Renton. The purpose of the Commercial Arterial
Zone (CA) is to evolve from "strip commercial" linear business districts to business areas characterized by
enhanced site planning and pedestrian orientation, incorporating efficient parking lot design, coordinated
access, amenities and boulevard treatment with greater densities. The CA Zone provides for a wide variety of
retail sales, services, and other commercial activities along high-volume traffic corridors. Residential uses may
be integrated into the zone through mixed-use buildings. Front yard setbacks range from 15 to 20 feet, with
varying additional setback requirements for side and rear yards. Maximum building height is 35 feet.
IN
(400)
CA R-4
RM-F R-8
L
R-8 R-8
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Appraisal.Valuation Cor su'ting
Description of Improvements
The site is improved with three retail buildings that together contain approximately 93,571sf that are occupied
by large box retailers including Albertson's, Big Lots, Planet Fitness, and an Ace Hardware. The buildings are all
similar in in design,construction and appeal,with concrete slab foundations, masonry construction, and a built-
up asphalt roof. The buildings were constructed in 1979 and appear to be in average condition based on our
exterior observations.Site improvements consist of a large asphalt-paved parking lot and perimeter landscaping.
Following our review,we conclude the improvements are not impacted by the acquisition.As such,this analysis
is of the vacant site and impacted site improvements only. The contribution of the structures (if any) are not
reflected in the before or after value conclusions.
Assessed Value and Real Estate Taxes
The subject property is assessed and taxed by King County.The current assessed values and taxes are as follows:
2019 Assessed Values and Taxes
Tax Account Land Structure Total Taxes
149450-0050 $4,476,800 $0 $4,476,800 $47,930
149450-0010 $1,069,300 $1,360,300 $2,429,600 $34,829
149450-0020 $546,700 $889,200 $1,435,900 $20,212
149450-0030 $951,000 $2,129,700 $3,080,700 $42,082
Total $7,043,800 $4,379,200 $11,423,000 $145,053
$/sf Land $20.14
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M1ppraisal.Valuation.Corsu'.t ing
AREA/MARKET ANALYSIS
Neighborhood Description/Analysis
The Seattle Metropolitan Statistical Area(SMA)and Puget Sound region are well known to intended users of this
report. For brevity,these descriptions have been excluded but are available upon request.
The subject properties/project are located in the Renton Highlands area of the City of Renton. Renton was
incorporated in 1901 and growth over the years was often fueled by people migrating to the area to work in the
booming wartime industries. In 1940,the Boeing Company built a new manufacturing plant at the south end of
Lake Washington, and this remains one of the city's primary economic engines to date. Renton continues to be
an important center of employment; providing over 50,000 jobs, roughly half in manufacturing.The downtown
area remains fairly lively, with activity centered on government and service-related including City Hall and the
Renton Library. Much of the downtown retail and commercial activity has been displaced by local malls and
shopping centers. Tenants in the downtown core tend to be small family owned restaurants, thrift shops, and
antique or"collectibles" businesses. McLendon's Hardware and Wal Mart are two of the larger retailers in the
CBD.
Two large projects in Renton have been completed over the last several years,with the most noteworthy being
the large multi-use project"The Landing." Developed by Harvest Partners, this is a $300 million, 46-acre urban
village style shopping center immediately at the south end of Lake Washington. It was developed on Boeing
surplus property and has approximately 800,000sf of retail shops and restaurants and over 1,000 residential
units (mostly townhomes and condominiums). It is expected that this project will bring a major revitalization to
afterhours businesses and attract complementary office and retail development in other nearby areas of Renton.
The second project is the development of a Seattle Seahawks Training Facility along the eastern shores of Lake
Washington in north Renton.Situated on 19 acres of industrial land that was formerly a tar and creosote plant,
the building has 200,000sf,which makes it the second largest in the NFL.The property was developed by Vulcan
Real Estate and opened in summer 2008.
Properties immediately surrounding the subject consist of a variety of primarily commercial uses in older/similar-
era buildings along Sunset Boulevard NE to the east and west. Pad sites between the subject and the arterial
frontage include a fast food restaurant (taqueria) and a Starbucks. Properties setback from the arterial and
adjacent to the property are primarily residential in nature.
Retail Market Analysis
The following market analysis of the retail property market is based on data obtained from the CoStar Group,
Inc., a leading provider of real estate information services.The information provide begins with data for retail
properties in the Puget Sound Area.Also included is the retail submarket for the subject property,which includes
data from the various cities that comprise southeast King County.
The following table illustrates the historical market performance of the Puget Sound Metropolitan market:
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Seattle/Puget Sound SE King County
Total SF Under Net Percent Rental Rate Total SF Under Net Percent Rental Rate
Quarter Square Feet Construction Absorption Vacant (Triple Net) Square Feet Construction Absorption Vacant (Triple Net)
2019 Q3 177,718,811 861,259 263,643 2.90% $20.65 11,813,886 12,087 -30,812 6.20% $21.68
2019 Q2 177,657,635 934,113 293,856 3.00% $20.48 11,813,886 12,087 -24,332 6.00% $21.31
2019 Q1 177,723,289 830,206 -97,040 3.20% $20.09 11,813,886 0 -69,422 5.70% $22.44
2018 Q4 177,677,205 782,550 264,384 3.10% $20.18 11,813,886 0 -9,206 5.20% $21.48
2018 Q3 177,598,606 575,578 623,601 3.20% $19.68 11,813,886 0 61,946 5.10% $19.55
2018 Q2 177,452,657 702,626 -298,251 3.50% $19.34 11,773,153 32,293 -236,434 5.40% $18.14
2018 Q1 177,378,638 811,293 95,908 3.30% $19.58 11,770,513 34,933 50,448 3.30% $17.76
2017 Q4 177,408,670 750,500 337,002 3.40% $19.27 11,768,829 36,617 19,403 3.70% $17.50
2017 Q3 177,347,506 559,318 67,393 3.50% $19.28 11,768,829 22,613 17,720 3.90% $17.01
2017 Q2 177,092,685 715,902 162,450 3.50% $19.17 11,768,829 20,929 55,205 4.10% $15.80
2017 Q1 177,510,743 579,529 460,212 3.80% $18.84 11,768,829 0 -10,905 4.50% $15.72
2016 Q4 176,516,967 1,539,059 387,175 3.50% $18.68 11,768,829 0 109,990 4.40% $15.76
2016 Q3 176,475,616 1,419,809 -203,316 3.70% $18.36 11,750,055 18,774 -10,846 5.20% $15.66
2016 Q2 176,505,096 1,434,815 200,017 3.60% $18.20 11,755,702 18,774 30,662 5.20% $16.45
2016 Q1 176,646,355 998,530 293,420 3.80% $17.86 11,755,702 7,485 -36 5.40% $16.43
As is indicated,vacancy in the greater metro market area has experienced continued stability and improvement
over the last several years.This can be attributed to strong economic conditions and thus increased demand by
various users of retail space. Furthermore,this increased demand has not been met by a significant increase in
supply due to the relatively limited amount of new development over the last several years, with any new
construction being absorbed quickly. As such, rental rates have experienced continued stability to a slight
increase over the last year.
Vacancy rates in the subject's submarket for retail space are above the regional average and have experienced
an upward trend over the last several quarters.Asking rental rates for retail space are higher than the regional
average at a rate of $21.68, triple-net as of the current date. Overall the retail market in the subject area
generally performed consistent with to slightly inferior than other submarkets throughout the Puget Sound area.
The subject's immediate market area, as well as the Puget Sound retail market as a whole, has experienced
continued stability over the last several years. The subject submarket is similar in that it has experienced
continued stability. Overall,vacancy rates have remained stable and/or increased slightly,with rental rates and
net absorption exhibiting a similar trend.We would expect the market to remain fairly level in terms of rent over
the near term.
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Appraisal.Valuation.Con su''t.ng
HIGHEST AND BEST USE
Highest and best use is defined as: 5
The highest and most profitable use for which the property is adaptable and needed or likely to be needed in
the reasonably near future.
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. The appraiser's opinion of the highest and best use is based on
consideration of this criteria given market conditions as of the effective date of value and/or anticipated future
conditions to the extent they impact the current market value.The Highest and Best Use is considered on an As
Vacant and As Improved basis.
As if Vacant
In determining the highest and best use of the property as if vacant, we examine the potential for: 1) near term
development, 2) a subdivision of the site, 3) an assemblage of the site with other land, or 4) holding the land as
an investment.
Legally Permissible
Legally permissible uses are largely dictated by zoning and municipal restrictions such as overlays,neighborhood
plans and other ordinances.Zoning controls the general nature of permissible uses that are appropriate for the
location and physical elements of the subject property, providing for a consistent use in the general
neighborhood. The subject site is zoned CA, which allows for uses including office, retail, and multifamily. We
have also reviewed a title report for the subject, with no other significant easements or private encumbrances
identified. We note reciprocal parking and access agreements with the frontage pad sites, which is typical for
this property type.
Physically Possible
The physical attributes allow for a 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 Factual Data and
have been considered.Other than the property's relatively narrow width relative to its depth,there are no other
items of a physical nature that would materially limit appropriate and likely development.
Financially Feasible
The probable use of the site for mixed-use development comprised of both commercial and multifamily uses
conforms to the pattern of land use in the market area.A review of published yield, rental and occupancy rates
suggest that there is a balanced supply 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.
5 The Dictionary of Real Estate Appraisal,Sixth Edition,2015,Appraisal Institute,page 109.
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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 a
mixed-use development comprised of some commercial but primarily multifamily uses.
Conclusion of Highest and Best Use As If Vacant
The conclusion of the highest and best use as if vacant is for mixed use development comprised of commercial
and/or multifamily uses.
As Improved
In determining the highest and best use of the property as improved, the focus is on three possibilities for the
property: 1) continuation of the existing use, 2) modification of the existing use, or 3) demolition and
redevelopment of the land.
Determining the feasibility of the existing use requires analysis of the subject's income potential to determine if
the capitalized value is equal to or less than the underlying land value; an indication the improvements have
reached the end of their useful economic life. The subject improvements consist of approximately 93,571sf of
rentable retail.Our research of market rents for box retail in the subject's submarket indicate a range from about
$10.00 to$15.00/sf on a NNN basis.Applying a typical deduction vacancy and non-reimbursed owner expenses
and capitalizing the NOI at 6%, this brief income analysis indicates a value as improved value bracketing
$20,000,000,which is substantially higher than the value of the site as if vacant.
Conclusion of Highest and Best Use As Improved
The highest and best use of the subject property,as improved,is for continued use of the existing improvements.
Conclusion of Highest and Best Use
Considering our concluded land value and our brief income analysis, we conclude the highest and best use of
the subject property is for continued use of the existing improvements.
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BEFORE CONDITION VALUATION
Appraisal Methodology
There are three traditional approaches typically used to value real property value: the Cost, Sales Comparison,
and Income Capitalization approaches.
Cost Approach
The Cost Approach is based upon the principle that a prudent purchaser would pay no more for a property than
the cost to purchase a similar site and construct similar improvements without undue delay, producing a
property of equal desirability and utility.This approach is particularly applicable when the improvements being
appraised are relatively new or proposed,or when the improvements are so specialized that there are too few
comparable sales to develop a credible Sales Comparison Approach analysis.
Sales Comparison Approach
In the Sales Comparison Approach, the appraiser analyzes sales and listings of similar properties, adjusting for
differences to account for superior/inferior property characteristics between the subject and comparables.This
method is particularly useful for valuing common commercial and residential properties when an active sales
market results in sufficient comparable sales for analysis. It is a good indicator of value when the most likely
buyer of the subject would be an owner-user(not an investor or developer).
Income Capitalization Approach
The Income Capitalization (Income)Approach is based on the principle that a prudent investor will pay no more
for the property than he or she would for another investment of similar risk and cash flow characteristics. The
income capitalization approach is widely used and relied upon in appraising income-producing properties,
especially those for which there is an active investment sales market.
Because the improvements are not impacted by the acquisition,their income potential and contribution are the
same in both the before and after conditions. The contribution of the improvements, if any, is not reflected in
our value conclusions. The most relevant approach to value vacant land is the Sales Comparison Approach, an
analysis of the most comparable sales and listings. The Cost and Income Approaches are not relevant, as the
building improvements have been excluded.
Sales Comparison Approach
The Sales Comparison Approach consists of an analysis of the most comparable sales and listings to provide an
indication of value for the subject.The sales price or another unit of measure, such sale price/unit,sale price/sf,
etc., is adjusted to account for market conditions, transactional considerations and inferior/superior property
characteristics. The comparable sales most similar to the subject property and a detailed discussion of the
necessary adjustments is as follows:
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COMPARABLE SALES SUMMARY AND LOCATION MAP
Sale Sale Size Price
Comp Address/Location Date Price (sf) $/sf Zoning
1 4325 NE Sunset Boulevard Listing $3,250,000 81,457 $39.90 CA
2 515 Industry Drive 01/04/19 $6,200,000 140,202 $44.22 TUC
3 4500 Talbot Road 05/23/18 $4,500,000 201,683 $22.31 CO
4 3123 NE Sunset Boulevard 10/13/17 $940,000 17,059 $55.10 CV
5 13120 Newcastle Commons 01/24/17 $3,500,000 94,525 $37.03 MUR
Subj 4601 NE Sunset Boulevard 349,720 CA
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COMPARABLE SALE 1
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Property Identification
Address 4325 NE Sunset Boulevard Assessor Parcel 032305-9055
City,State,ZIP Renton,WA 98059
Transaction Details
Sale Date Listing Property Rights/Terms Fee Simple Typical
Sale Price $3,250,000 Excise Tax No. N/A
Grantor Workman Estate Confirmation Gary Penitsch
Grantee Confirmation Phone 206-799-6101
Property Description
Site Size 81,457sf Shape Rectangular
Street Type Commercial arterials Topography Level,at or near grade
Exposure Good/commercial Zoning CA
Discussion
This is the current listing of a 1.87-acre parcel on the south side of NE Sunset Boulevard, between Union Avenue NE
and Duvall Avenue NE in the Highlands neighborhood of Renton. The site is improved with an older single-family
residence that was concluded to be of no contributory value.The adjacent property is currently in planned for a 16-
unit apartment building with ground floor retail.
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COMPARABLE SALE 2
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Property Identification
Address 515 Industry Drive Assessor Parcel 022340-0070
City,State,ZIP Tukwila,WA 9818
Transaction Details
Sale Date 01/04/2019 Property Rights/Terms Fee Simple/Typical
Sale Price $6,200,000 Excise Tax No. E2969048
Grantor Myong&Young LLD Confirmation Jason Rosauer
Grantee Tukwila Hotel Group Confirmation Phone 206-296-9608
Property Description
Site Size 140,202sf Shape Slightly irregular
Street Type Commercial arterial Topography Level,at or near grade
Exposure Good/commercial Zoning TUC
Discussion
This is the January 2019 sale of 3.22 acres of vacant,undeveloped land in Tukwila for$6,200,000.The TUC TOD-zoned
(Tukwila Urban Center Transit Oriented Development) property has all utilities available to the site and is supportive
of commercial, mixed-use, multi-family, and/or office development.The site is located east of Interstate 5,south of
Interstate 405, and west of the Duwamish River. The property is level and cleared with no known environmentally
sensitive areas.The site was previously developed with an office building which was demolished in 2008.Subsequent
to sale,onsite construction has started for the 177-room Element Hotel.The property was listed at$6,700,000.The
property previously sold in July 2013 for $2,550,749. The buyer of that transaction planned a large spa for the
property,which ultimately fell through.
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COMPARABLE SALE 3
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Property Identification
Address 4500 Talbot Road Assessor Parcel 312305-9094,-9067
City,State,ZIP Renton,WA 98055
Transaction Details
Sale Date 06/27/2018 Property Rights/Terms Fee Simple/Typical
Sale Price $4,500,000 Excise Tax No. E2933275
Grantor John C. Radovich, LLC Confirmation Nick Radovich
Grantee Weatherly Renton LLC Confirmation Phone 206-267-6060
Property Description
Site Size 212,573sf Shape Irregular
Street Type Commercial arterial Topography Gently to mod sloping
Exposure Good/commercial Zoning CO
Discussion
This is a 2018 purchase of two tax lots totaling 4.63 acres located on the east side of Talbot Road S. in Renton.There
is a large multi-family apartment complex located to the south of the site and a medical/office complex to the north.
The lot has a gradual slope to the east; the buyer and seller of the site indicated that approximately 20% of the
property was of limited utility due to slopes.The site had previously been improved with a 2,110sf residence built in
1966; the onsite improvement was completely removed from the site before the sale. The site is currently under
construction with a 2-building, 117-unit senior living center called Weatherly Inn. Net usable area is about 170,058sf.
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COMPARABLE SALE 4
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Property Identification
Address 3123 NE Sunset Boulevard Assessor Parcel 042305-9155
City,State,ZIP Renton,WA 98056
Transaction Details
Sale Date 10/13/2017 Property Rights/Terms Fee Simple/Typical
Sale Price $940,000 Excise Tax No. E2895168
Grantor John/Cheri Zavaglia Confirmation Tiom Graff
Grantee Kiddie Research LLC Confirmation Phone 206-441-7900
Property Description
Site Size 17,059sf Shape Irregular
Street Type Commercial Topography Level
Exposure Good/commercial Zoning CV
Discussion
This is the October 2017 sale of a somewhat irregular-shaped corner lot at NE 12th Street and NE Sunset Blvd.The site
is level and at-grade with all utilities available.The property was developed with an older car wash considered to be
of no contributory value.The buyer plans to develop the site with a day care.
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COMPARABLE SALE 5
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Property Identification
Address 13120 Newcastle Commons Assessor Parcel 272405-9006,-9040
City,State,ZIP Newcastle,WA 98059 -9099
Transaction Details
Sale Date 01/24/2017 Property Rights/Terms Fee Simple/Typical
Sale Price $3,500,000 Excise Tax No. E2845658
Grantor Newcastle Joint Venture Confirmation Rick Hart
Grantee Newcastle Retail Group Confirmation Phone 425-462-6985
Property Description
Site Size 94,525sf Shape Irregular
Street Type Commercial Topography Level
Exposure Good/commercial Zoning MUR
Discussion
The property is located on the northeast and southeast corner of the intersection of Newcastle Commons Drive and
Coal Creek Parkway SE. The property is comprised of two separate sites that were purchased together in a single
transaction. Each of the sites is mostly rectangular in shape and level and had been graded at the time of the sale.
Since the time of sale,both sites have been improved with multi-tenant retail buildings.These sites are part of a larger
mixed-use project with other retail and multifamily.There is a protected wetland behind the property.
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Comparable Adjustment Analysis
Unadjusted,the comparables indicate a relatively wide range of value from$22/sf to$55/sf for the subject, but
each sale requires consideration of adjustments to account for differences in market conditions, location and a
variety of physical characteristics.The comparables are adjusted on a$/sf basis as summarized below.
Market Conditions
The comparables transacted between early 2017 and 2019, with escalating sale prices/rents and favorable
market conditions during this time. Our research indicates some slowing of the market over the past year in
some sectors,though conditions are still favorable. Comparable 2 transacted within about the past year, during
similar market conditions as exist as of the date of the appraisal. No adjustment is required. Comparables 3, 4,
and 5 are older transactions with more significant appreciation since their older sale dates. Upward adjustments
have been applied. Comparable 1 is a current listing that has no offers at this time. We've applied a downward
adjustment for comparison.
Location
The subject and all of the comparables are located in south end King County submarkets.Comparables 1,3,and
4 are specifically located in Renton like the subject and with similar or offsetting superior/inferior influences.
Comparable 2 is located in Southcenter and influenced by its proximity to Southcenter Mall and significant new
development in this area (such as the Interurban Hotel)and Comparable 4 is located in an area of higher values
and significant new development.We have applied downward adjustments to Comparables 2 and 4.
Lot Size
The comparables are all smaller than the subject property, usually resulting in higher unit prices due to a larger
pool of potential buyers. With the exception of Comparable 3, varying downward adjustments have been
applied.Comparable 3 is most similar in size and no adjustment has been applied. Minor differences in site size
is reflected in our final correlation.
Shape/Topo
The subject consists of a regular,square to rectangular shape and a level to only gently sloping topography.The
comparables generally have a regular shape and/or have critical mass to offset any minor irregularities.With the
exception of Comparable 3,the remaining comparables are also level to only gently sloping and no adjustment
is required. Comparable 3 has a moderate slope and development required additional excavation costs to fully
utilize the site.An upward adjustment has been applied.
Zoning
The subject and the comparables have similar commercial/mixed-use zoning that allow for similar building
size/densities. No adjustments are necessary.
Access/Exposure
The subject and all of the comparables have similar commercial access suitable for a variety of office, retail,and
multifamily uses. In terms of exposure,the subject is situated at the corner of a primary commercial arterial and
a high-volume 4-lane arterial that provides connectivity to moderate to densely developed residential areas,
though pad sites between the subject and Sunset Boulevard NE block some visibility. Comparables 1 and 3 are
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inferior mid-block locations,with upward adjustments applied. Comparable 4 is also at a signalized intersection,
but with no blockage of intervening parcels/buildings and generally superior exposure.A downward adjustment
has been applied. Comparables 2 and 5 have similar exposure and no adjustment is necessary.
A summary of the adjustments is as follows:
Land Sale Adjustments
Price Market N'Hood Site Shape/ Access Total
Comp $/sf Conditions Location Size Topo Zoning Exposure Indication
1 $39.90 Sup(-) Sim Sup(-) Sim Sim Inf(+) Sup(-)
2 $44.22 Sim Sup (-) Sup(-) Sim Sim Sim Sup(--)
3 $22.31 Inf(+) Sim Sim Inf(+) Sim Inf(+) Inf(+++)
4 $55.10 Inf(+) Sim Sup(--) Sim Sim Sup(-) Sup(--)
5 $37.03 Inf(++) Sup (-) Sup (-) Sim Sim Sim Sim
All of the comparables bracket the characteristics of the subject property (except size; all are smaller) and are
good indicators of value.The low end of the range is set by Comparable 3,which is the largest of the comparables
but still much smaller than the subject. it is located just east of SR-167 in the southerly part of Renton, near
Valley Hospital. This comparable requires upward adjustment for its older sale date, topography that required
excavation of the rear portion and somewhat inferior exposure given its mid-block location.The high end of the
range is an older sale of a much smaller parcel, but it has been included for analysis because it is on the same
arterial and shares most of the subject's location characteristics. This comparable requires upward adjustment
for time, but it is more than offset by a large downward adjustment its superior size and exposure. These
comparables indicate a value for the subject above$22/sf and well below$55/sf.
The remaining comparables indicate a much narrower range of value in the low to mid-$30s/sf. Comparable 1
is the current listing of much smaller site that shares the neighborhood characteristics, Sunset Boulevard NE
frontage, and zoning designation. Comparable 3 is a more recent transaction of a site near Southcenter,
requiring downward adjustment for its superior location and size. Comparable 5 is the oldest transaction and
thus it requires a larger upward adjustment for market conditions. This adjustment is more than offset by its
superior location and size.
Considering each of the comparables and the adjustments necessary for comparison, we conclude a value for
the the subject at$33/sf.
Impacted Site Improvements
The area of acquisition contains asphalt pavement/curbing for driveways and small shrubs and groundcover
landscaping such as juniper. We assume any asphalt/curbing disturbed will be replaced by the contractor at no
cost to the property owner. Landscaping within the permanent easement and TCE may be removed and will be
placed with inferior hydroseed.We estimate about 4,800sf of landscaping map be disturbed (including both the
permanent easement and TCE areas). The contribution of the landscaping is concluded to be equal to its or a
suitable alternative's replacement cost, which we've estimated based on the Marshall Valuation Service Cost
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Appraisal.Valuation.Consulting
Manual (Marshall's) and our experience on other projects. Using a contribution value of$5/sf and including a
15%entrepreneurial incentive,the contribution of impacted landscaping is calculated at$28,000(rounded).
Conclusion of Valuation
Based on our investigation and analysis of all relevant data, it is our opinion the market value of the subject site
and impacted site improvements, as of February 22, 2020, is:
Before Value Conclusion
Site Area Size(sf) Unit Value Total
Land Total 349,720 $33.00 $11,540,760
Plus: Impacted Site Improvements $28,000
Land + Impacted Site Improvements $11,568,760
ROUNDED $11,569,000
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AFTER CONDITION ANALYSIS
Description of Project and Proposed Acquisition
The project includes reconstruction/resurfacing of Duvall Avenue NE, including new pavement, curb, gutter,
sidewalk, streetlights, storm drainage, channelization and bike lanes from NE 7th St to Sunset Blvd NE. The
purpose of the project is to enhance safety for pedestrians, bicyclists and vehicles along this corridor.
The proposed acquisition consists of a five-foot slope and utility easement along the easterly property boundary,
a total of 2,912sf. In addition to the permanent easement, an additional 5-foot strip will be encumbered with a
TCE to allow contractors access to the site while constructing street improvements within the abutting Duvall
Avenue NE right-of-way and easement area for a period of 24 months.The area of acquisition is improved with
asphalt/curbing at three driveway locations,several mid-size to large trees and extensive juniper and small shrub
landscaping. It is our understanding the trees will not be removed; groundcover juniper will likely be removed
and not replaced. Asphalt pavement and curbing will be replaced if removed/impacted. The total TCE area will
occupy 4,820sf for 24-months.
Description of Subject Property in the After Condition
The easterly fronting street (Duvall Avenue NE) will be reconstructed as previously described. The most
significant change to the property is the encumbrance of 2,912sf with a slope and utility easement. Because
there is no fee acquisition,the site will be the same size,shape,and general configuration in the after condition.
The property will have a loss of some landscaping due the installation of utilities and construction of the project.
The slope and utility easement area will be used primarily for underground utilities. Project plans call for new
sidewalks with deep-caste foundations and streetlight along the property boundary(mostly located within the
exiting right-of-way), though thicker foundations (necessary to adjust for slope differences) and footings for
streetlights may also encroach into the easement area. Largely, the surface of the easement area will be
available for the property owner's use in the after condition, likely for landscaping as in the before condition.
The easement area is entirely contained within required setbacks and will not impact the existing or planned
future uses of the property.
Physical characteristics of the site, such as size, shape, topography, soils, and available utilities will remain the
same. Access will be about the same, with the existing driveways remaining as in the before condition and
reconfigured by the project. Legal restrictions will be the same in the after condition, as no change to zoning is
anticipated and no permanent easements are proposed.
Highest and Best Use—After Condition
Because the site retains essentially the same general shape and other characteristics.We conclude the highest
and best use of the property in the after condition is unchanged from the before condition and is for continued
used of the existing improvements.
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ACQUISITION MAP/AERIAL
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APPraisal Valuation Cor su'sing
Valuation—After Condition
To value the property in the after condition, we have relied on the same comparables that were used in the
before condition. Given the similar characteristics of the property in the after condition, we conclude the same
unencumbered fee value of $33/sf. We note the contribution of impacted site improvements has been
eliminated in the after condition.
Utility Easement Contribution
An easement involves a discount to the value of a property to account for the loss of property rights. In
accordance with the "bundle of rights" theory of property, real property can be analyzed as a bundle of rights
or a bundle of sticks with the fee interest representing the complete bundle. An easement under this analogy
represents the loss or the taking of some of these rights or sticks in the bundle.Typically,the property is then of
less value due to the owner's loss of some rights associated with fee ownership. Based on a variety of published
studies and our independent research, typical easement discount ranges are as follows:
Easement Discount Ranges
Low High
Easement Type/Description End End
Exclusive Surface Uses 75% 100%
Joint Surface Uses 25% 75%
Air Rights 25% 75%
Subsurface(Utilties,Surface Restrictions) 15% 50%
Subsurface(No or limited surface restrictions) 0% 15%
The range of easement discounts is relatively large,with the actual discount depending on the specific easement
encumbrance(language/rights afforded the easement holder)and the property impacted by the easement. For
instance, if an easement for overhead powerlines prohibits surface structures within an area of the site that
would be developed with buildings per its unencumbered highest and best use, the easement may diminish at
the high end of the range (chart above), or perhaps higher. But if the same powerline easement encumbers a
site in an undevelopable area, such as overlapping required building setbacks or sensitive area, or if accessory
parking can be a developed within the easement area beneath the powerlines,a diminution at lower end of the
range (or lower) may be more reflective of the actual impact.
In this case, the permanent acquisition consists of a slope and utility easement that will largely be available to
the property owner for landscaping in the after condition, as in the before condition. The easement overlaps
three existing driveways, which will be maintained. Because the driveways will be maintained and the balance
of the easement area consists only of landscaping, there will be no significant impact to the current use. The
easement is entirely located within required setback areas and can be incorporated into site/parking lot
landscaping requirements, indicating it will have little or no impact on future redevelopment. Given its minimal
impact on current and/or future uses, we conclude an easement discount slightly higher than subsurface
easements given some (but minimal) surface uses at 25%. While we have not been provided the easement
document, the easements generally allow for construction of the project, which is reflected in the easement
discount(no additional TCE for this area is thus necessary)
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Remainder Damages and Special Benefits
We have also considered damages and special benefits to the remainder property.The only onsite change is the
slightly smaller unencumbered site size/easement encumbrance. As such, the loss of the acquisition area will
have only a minimal impact on the maximum building size developable on the property when redeveloped to its
highest and best use. Minor site improvements including asphalt pavement and landscaping have been
considered in our analysis. No parking loss or significant change in access is anticipated. We conclude no
remainder damages resulting from the acquisition.
With regard to special benefits, the project will result in increased traffic flow efficiency and modernization of
the street frontage, which will allow for and promote/encourage transition of current land use patterns to
denser development more consistent to current market trends. Given the historical plans for these
improvements, it is likely the City would require dedication of the proposed acquisition as a development
condition. But as of the date of value, no plans for redevelopment are known to be in progress. And while the
frontage improvements will benefit the property,these benefits are largely general and nature and measurable
special benefits are speculative at this time. We conclude no compensable/measurable special benefits at this
time.
Temporary Construction Easement
In order to construct the project and reconnect the subject's existing access points and to construct the new
sidewalk and street lighting along the property boundary,the City will require a TCE along the easterly property
boundary abutting Duvall Avenue NE. The TCE is required for a period of 24 months, though given the limited
scope of work to be completed within the TCE area(driveway reconnections;limited use for general construction
purposes) the cumulative physical occupation of the TCE is estimated at a maximum of only 12 months. And
even during the 12-month active use time, the property owner will continue to have joint use. It is our
understanding/assumption the driveways will not be blocked for any significant period of time and blocked only
when asphalt/concrete is curing; the driveways will not be blocked at the same time.
A TCE is essentially a short-term land lease. Land lease valuation typically involves applying an annualized rate-
of-return to the underlying land value to calculate market rent. Like other investments, the rate-of-return is
largely based on the risk associated with the lease. Long-term leases and high quality, credit tenants represent
lower risk to the underlying landowner and typically have lower rates. Short-term leases of vacant or interim-
use property sometimes have a low rate-of-return, as any income to offset holding costs would be beneficial.
Shorter-term leases and higher risk tenants usually have the higher rates-of-return. In order to determine an
appropriate rate-of-return for the subject, we considered a number of long and short-term ground lease
comparables, surveyed agencies who typically lease property, and researched published data such as the Price
Waterhouse Cooper (PwC), formerly Korpacz, survey. The PwC is a national real estate investor survey, which
cites capitalization and rates-of-return for a variety of property types.While this information is national, it is still
a good indicator of regional performance given the investor-grade characteristics of the Seattle MSA. Local
agencies that lease their portfolio (such as the Port of Seattle) indicate a range of about 6%to 10% depending
upon the length and complexity of the lease and degree of property/operational impact. Our review of specific
ground leases indicate a range from about 5% to 10% with long term national retailers, such as fast food
restaurants, and public agencies at the lower end of the range; and localized specialty users required to pay
higher rates-of-return, as would be expected. PwC indicates an appropriate rate-of-return for a variety of
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APPra.sal.Valuation.Corsu't.ng
property types in the range of 6% to 12%. We note these stated ranges generally reflect exclusive or near-
exclusive use (occupancy)of the property for the lease term.
In valuing short-term uses, the total easement size, duration, location onsite/impact and disruption to current
use and the intensity of the intended use(exclusive vs non-exclusive) must be considered. In this case,the active
period is estimated at only about 12 months within a 24-month window, though some risk of a longer use is
inherent and not guaranteed by the TCE document language to our knowledge.Given the TCEs proposed for the
subject impact driveway areas to a retail center, the active use period (estimated at about 12 months) may be
disruptive, but the anticipated non-construction portion of the TCE(estimated at about 12 months)will have no
functional impact on the subject. Nonetheless,the TCE will result in a title encumbrance for the entire 24-month
period.Considering the anticipated use of the TCE and its impact on the subject,as well as our knowledge of the
market reaction to sales of properties with similar TCEs at the time of sale or lease, we conclude a market rent
for the joint-use of the TCE area at 6%/year for the 2-year period. Applying this discount to the previously
concluded land value of$33/sf and a TCE area of 4,820sf, compensation for the TCE is calculated at $20,000
(rounded).
Conclusion of Valuation
Based on our investigation and analysis of all relevant data, it is our opinion the market value of the subject site
in the after condition, as of February 22, 2020, is:
After Value Conclusion
Site Area Size(sf) Unit Value Total
Unencumbered Land Value 346,808 $33.00 $11,444,664
Easement Encumberd Value 2,912 $24.75 $72,072
After Condition Value $11,516,736
Less:TCE Encumbrance -$20,000
Total $11,496,736
ROUNDED $11,497,000
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S OVA
aooa Tsai.vawano .cosng
BEFORE AND AFTER VALUE CONCLUSION
Based on our research and analysis, it is our opinion the market value of the subject property, before and after
the proposed acquisition,as of February 22, 2020, is:
Value Conclusions&Allocations
Site Area Total
Before Condition $11,569,000
After Condition $11,497,000
Just Compensation/Diminution $72,000
Easement Acqusition (Rounded) $24,000
Temporary Construction Easement $20,000
Impacted Site Improvements $28,000
ROUNDED $72,000
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APpralsal Valuation.cor su'ting
CERTIFICATION
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. I have performed no other real estate 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. I have made a personal inspection of the property that is the subject of this report. (If more than one person
signs this certification, the certification must clearly specify which individuals did and which individuals did
not make a personal inspection of the appraised 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, I have completed the continuing education program for Designated Members
of the Appraisal Institute.
Date of Value: February 22,2020
(\\--49
Matthew C.Sloan, MAI,SRA
State Cert.#27011-1101655
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Appraisal.Valuation Cor zu'ting
REPORT OF CONTACT WITH PROPERTY OWNER
Person(s)Contacted: Dayna Desmond
Owner Address: 101 Lakespur Landing Circle, Suite 120
Lakespur,CA 94939
Phone: 415-945-2473
Email: ddesmond@argoinvest.com
Date of Contact: Multiple, calls and emails, February 2020
Date of Joint Inspection: None
Persons Accompanying Appraisers: N/A
Relationship to Owner: Ms. Desmond is the Asset Manager for Argonaut
Investments, LLC,the ownership entity.
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ADDENDA
Assumptions and Limiting Conditions
Title Report
Qualifications
Ii I
li
II
Central Highlands Plaza
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Ap prasal Valuation (a+'vu ling
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is subject to the following 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. Soya
Consulting 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 Soya
Consulting 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.
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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 Soya Consulting
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 Soya
Consulting.
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.
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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'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
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Appraisal.Val uaton Cor su r ng
accompanying sketches are considered to be reasonably accurate and reliable, we cannot guarantee
their accuracy.Should the client desire a greater level of measuring detail,they are urged to retain the
measurement services of a qualified professional (space planner, architect or building engineer). We
reserve the right to use an alternative source of building size and amend the analysis, narrative and
concluded values (at additional cost) should this alternative measurement source reflect or reveal
substantial differences with the measurements used within the report.
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, we reserve the right to amend this appraisal (at additional cost) if
substantial differences are discovered.
27. If only preliminary plans and specifications were available for use in the preparation of this appraisal,
then this appraisal is subject to a review of the final plans and specifications when available (at
additional cost) and we reserve the right to amend this appraisal if substantial differences are
discovered.
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
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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 Soya Consulting 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 Soya Consulting 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 Soya Consulting 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 Soya Consulting for this
assignment,and under no circumstances shall any claim for consequential damages be made.
36. Soya Consulting 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 Soya
Consulting. "Client" shall not include partners, affiliates, or relatives of the party named in the
engagement letter. Client shall hold Soya Consulting 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 Soya Consulting harmless from and against any
liability, loss, cost, or expense incurred or suffered by Soya Consulting in such action, regardless of its
outcome.
37. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing general
assumptions and limiting conditions.
Central Highlands Plaza
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Appraisal•Valuation•Consulting
TITLE REPORT
i
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Central Highlands Plaza
20014-Copyright©2020
SUBDIVISION
Guarantee/Certificate Number:
Issued By:
0 CHICAGO TITLE 194834-TC
INSURANCE COMPANY
CHICAGO TITLE INSURANCE COMPANY
a corporation, herein called the Company
GUARANTEES
Parametrix
herein called the Assured, against actual loss not exceeding the liability amount stated in Schedule A which the Assured
shall sustain by reason of any incorrectness in the assurances set forth in Schedule A.
LIABILITY EXCLUSIONS AND LIMITATIONS
1. No guarantee is given nor liability assumed with respect to the identity of any party named or referred to in Schedule A
or with respect to the validity, legal effect or priority of any matter shown therein.
2. The Company's liability hereunder shall be limited to the amount of actual loss sustained by the Assured because of
reliance upon the assurance herein set forth, but in no event shall the Company's liability exceed the liability amount
set forth in Schedule A.
Please note carefully the liability exclusions and limitations and the specific assurances afforded by this guarantee. If you
wish additional liability, or assurances other than as contained herein, please contact the Company for further information
as to the availability and cost.
Chicago Title Insurance Company
By:
Chicago Title Company of Washington
1142 Broadway, Suite 200 4 i.._
Tacoma,WA 98402
President
Countersigned By: V Attest:
19 •ti.:,,r,-,,,,,
1.P
SE *I► lOt�l
,___-5sP----\-4sIs:z-- ,,1 *,
Authorized Officer or Agent ` ''� Secretary
Subdivision Guarantee/Certificate Printed: 12.02.19 @ 02.17 PM
Page 1 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 194834-TC
ISSUING OFFICE:
Title Officer: Rob Hainey
Chicago Title Company of Washington
1142 Broadway, Suite 200
Tacoma, WA 98402
Fax: 866-671-3908
Main Phone: (253)671-6623
Email: Rob.Hainey@ctt.com
SCHEDULE A
Liability Premium Tax
$1,000.00 $350.00 $35.70
Effective Date: November 22, 2019 at 12:00 AM
The assurances referred to on the face page are:
That, according to those public records which, under the recording laws, impart constructive notice of matter relative to
the following described property:
SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF
Title to said real property is vested in:
Argo Renton, LLC, a Delaware limited liability company
subject to the matters shown below under Exceptions, which Exceptions are not necessarily shown in the order of their
priority.
END OF SCHEDULE A
Subdivision Guarantee/Certificate Printed: 12.02.19 @ 02:17 PM
Page 2 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
EXHIBIT "A"
Legal Description
Lot 5, Central Highlands Plaza, a Binding Site Plan, according to the plat theroef, recorded in Volume 141 of Plats, pages
59 and 60, and Amended in Volume 176 of Plats, pages 76 and 77, in King County, Washington.
Subdivision Guarantee/Certificate Printed: 12.02.19 02:17 PM
Page 3 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 194834-TC
SCHEDULE B
H. Reservations and exceptions in United States Patents or in Acts authorizing the issuance thereof.
SPECIAL EXCEPTIONS
1. Covenants, conditions, restrictions, recitals, reservations, easements, easement provisions, dedications, building
setback lines, notes, statements, and other matters, if any, but omitting any covenants or restrictions, if any,
including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital
status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal
laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth on Joseph P.
Marshall Tracts:
Recording No: 3250442
2. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: May Creek Flood Zone District, a created municipal corporation
Purpose: Drainage channel and/or other flood control works
Recording Date: October 20, 1965
Recording No.: 5943056
Affects: A portion of said premises
3. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: May Creek Flood Control Zone District a created municipal corporation
Purpose: Drainage channel and/or other flood control works
Recording Date: October 20, 1965
Recording No.: 5943057
Affects: A portion of said premises
4. Covenants, conditions, restrictions and easements but omitting any covenants or restrictions, if any, including but
not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status,
disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression,
medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that
said covenant or restriction is permitted by applicable law, as set forth in the document
Recording Date: August 19, 1977
Recording No.: 7708190846
5. Declaration of Easements and the terms and provisions thereof
Recording Date: September 21, 1977
Recording No.: 7709210680
Said Declaration of Easements has been modified by instrument(s) recorded under Recording No. 8104290507
and Recording No. 9604300819.
Subdivision Guarantee/Certificate Printed: 12.02.19©02:18 PM
Page 4 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 194834-TC
SCHEDULE B
(continued)
6. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: City of Renton, a municipal corporation
Purpose: Storm sewer with necessary appurtenances
Recording Date: November 16, 1977
Recording No.: 7711160658
Affects: A portion of said premises
7. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: City of Renton, a municipal corporation
Purpose: Water line with necessary appurtenances
Recording Date: November 16, 1977
Recording No.: 7711160659
Affects: A portion of said premises
8. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: Puget Sound Power& Light Company
Purpose: Electric transmission and/or distribution system
Recording Date: July 3, 1978
Recording No.: 7807030820
Affects: A portion of said premises
9. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: Puget Sound Power& Light Company
Purpose: Electric transmission and/or distribution system
Recording Date: March 6, 1979
Recording No.: 7903060809
Affects: A portion of said premises
10. Covenants, conditions, restrictions, recitals, reservations, easements, easement provisions, dedications, building
setback lines, notes, statements, and other matters, if any, but omitting any covenants or restrictions, if any,
including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital
status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal
laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth on Central
Plaza Short Plat 1:
Recording No: 8002269014
11. Ordinance No. 4025, and the terms and provisions thereof:
Recording Date: December 3, 1986
Recording No.: 8612031455
Subdivision Guarantee/Certificate Printed: 12.02.19©02:18 PM
Page 5 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
•
CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 194834-TC
SCHEDULE B
(continued)
12. Covenants, conditions, restrictions, recitals, reservations, easements, easement provisions, dedications, building
setback lines, notes, statements, and other matters, if any, but omitting any covenants or restrictions, if any,
including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital
status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal
laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth on Central
Highlands Plaza, a Binding Site Plan, File No. BSP. 091-87:
Recording No: 8805200326
An amendement to the Binding Site Plan, recorded April 29,1996, under recording number 9604290131.
13. Administrative Site Plan Review City of Redmond Report and Decision on Amendment to Binding Site Plan and
the terms and provisions thereof:
Recording Date: May 8, 1996
Recording No.: 9605081004
14. Easement(s)for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: Puget Sound Energy, Inc.
Purpose: Transmission, distribution and sale of gas
Recording Date: October 6, 2011
Recording No.: 20111006000430
Affects: A portion of said premises
15. General and special taxes and charges, payable February 15, delinquent if first half unpaid on May 1, second half
delinquent if unpaid on November 1 of the tax year(amounts do not include interest and penalties):
Year: 2019
Tax Account No.: 149450-0050
Levy Code: 2100
Assessed Value-Land: $4,476,800.00
Assessed Value-Improvements: $0.00
General and Special Taxes:
Billed: $47,930.09
Paid: $47,930.09
Unpaid: $0.00
16. A Deed of Trust and Assignment of Rents and/or Leases
Amount: $6,550,000.00
Dated: October 24, 2013
Trustor/Grantor:Argo Renton, LLC, a Delaware limited liability company
Trustee: First American Title Insurance Company
Beneficiary: The Bancorp Bank
Recording Date:October 24, 2013
Recording No: 20131024001185
Affects: Lot 5 and other property
Subdivision Guarantee/Certificate Printed: 12.02.19 @ 02 18 PM
Page 6 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 194834-TC
SCHEDULE B
(continued)
An assignment of the beneficial interest under said deed of trust which names:
Assignee: U. S. Bank National Association, as Trustee on behalf of the Registered Holders of Citigroup
Commercial Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates Series 2013-GC17
Recording Date: January 17, 2014
Recording No.: 20140117000693
17. Assignment of Rents and Leases
Assigned to: The Bancorp Bank
Assigned by: Argo Renton, LLC, a Delaware limited liability company
Recording Date:October 24, 2013
Recording No.: 20131024001186
Affects: Lot 5 and other property
An assignment of assignment of rents and leases which names:
Assignee: U. S. Bank National Association, as Trustee on behalf of the Registered Holders of Citigroup
Commercial Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates Series 2013-GC17
Recording Date: January 17, 2014
Recording No.: 20140117000694
18. A financing statement as follows:
Debtor: Argo Renton, LLC
Secured Party: The Bancorp Bank
Recording Date:October 24, 2013
Recording No.: 20131024001187
Affects: Lot 5 and other property
19. A change to the above financing statement was filed
Nature of Change: Assignment
Assigned To: U. S. Bank National Association, as Trustee on behalf of the Registered Holders of Citigroup
Commercial Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates Series 2013-GC17
Recording Date: January 17, 2014
Recording No.: 20140117000695
20. A change to the above financing statement was filed:
Nature of Change: Continuation
Recording Date: May 9, 2018
Recording No.: 20180509000046
Subdivision Guarantee/Certificate Printed: 12.02.19 @ 02:18 PM
Page 7 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 194834-TC
SCHEDULE B
(continued)
Note 1: FOR INFORMATIONAL PURPOSES ONLY:
The following may be used as an abbreviated legal description on the documents to be recorded, per Amended
RCW 65.04.045. Said abbreviated legal description is not a substitute for a complete legal description within the
body of the document:
Lot 5, Central Highlands Plaza (Amended), Vol 176, Pages 76-77, King Co
Tax Account No.: 149450-0050
Note 2: Any map furnished with this Guarantee is for convenience in locating the land indicated herein with
reference to streets and other land. No liability is assumed by reason of reliance thereon.
Note 3: The legal description in this Guarantee is based on information provided with the application and the
Public Records. All parties must notify the Title Insurance Company if the description does not conform to their
expectations.
END OF SCHEDULE B
Subdivision Guarantee/Certificate Printed: 12.02.19 @ 02:18 PM
Page 8 WA-CT-FBCM-02150.620753-SPS-1-19-194834-TC
925 Fourth Ave Ste 2000
Seattle,
Greg Goodman,MAI,206.36 4
369.0415.0415
Ipraisal . Valuation . Consulting Matt Sloan MAI,SRA,206.234.6458
Qualifications of Matthew C. Sloan, MAI, SRA
Principal of Soya Consulting
Experience
Matt Sloan, MAI,SRA, has nearly 20 years of experience working directly with a wide variety of agencies,earning
his MAI designation in 2016 and SRA in 2019. Experience includes an extensive history of large right of way
projects throughout the region, focused on valuation-related consulting but also including many aspects of the
public project development process including project scoping/impact analysis, project budgeting,sensitivity and
risk analysis, federal funding participation, key appraiser and appraisal management activities. His practice
focuses on appraisal and valuation issues relating partial acquisitions, easements, and specialized studies of
damages and special benefits related to commercial, industrial and residential properties. He has also worked
on large Local Improvement Districts(LIDs) and performed a wide variety of other specialized studies.
Education
University of Washington, Seattle, Washington:
Commercial Real Estate Certificate, a nine-month interdisciplinary program of specialized subject study
including commercial real estate development, valuation, insurance, risk management, and business and
real estate law. Completed June 2006.
City University, Seattle, Washington:
Bachelor of Science in Business Administration, emphasis in project management. Completed June 2005.
Appraisal Institute/Other
Completion of extensive required coursework, examination,capstone project and peer-audited experience
review for obtaining MAI and SRA designations. Continual ongoing courses and seminars to satisfy
continuing education requirements for both the Appraisal Institute and Washington Department of
Licensing.
Select Client List:
Sound Transit Washington State Department of Transportation
Port of Seattle Community Transit
Puget Sound Energy Seattle Public Schools
City of Seattle City of Bellevue
King County Snohomish County
Pierce County Skagit County
Miller Nash Graham & Dunn Ellis Li McKinstry
Preston Gates Enslee Best
CH2M Hill HDR Engineering
Universal Field Services LaBonde Land
RESGroup NW Abeyeta &Associates