HomeMy WebLinkAboutCIC Valuation CIC Valuation Group, Inc.
C i
C Real Estate Appraisers & Consultants
12729 Northup Way, Suite 7
VALUATION Bellevue,WA 98005
REVIEW AND DETERMINATION OF VALUE NO. 1 PARCEL NOs. 149450-0010, -0020, -0030, -0050.
TO: Sonja (Kraus) Davis, R/W, RAC Federal Aid No: STPUL-Y372 (002)
RES Group Northwest
624 S. LANDER STREET, SUITE 202 Project: Central Highlands Plaza
SEATTLE, WA 98134 4601 NE Sunset Boulevard
Renton, WA
FROM: STEPHEN WM. JUNTILA, CRA, SR/WA (ret.) Map: N/A
RES Group Northwest on behalf of the City of Renton is the client of this reviewer and the intended user of this report
that is prepared to assist in the acquisition of real property for public purposes. The subject of this review assignment
and the date of value are those of the appraisal report under review unless otherwise noted. The scope of work of the
appraisal report is extended to this review. The following appraisals have been made on subject property:
ALLOCATION
APPRAISER DATE OF BEFORE AFTER JUST ACQUISITION TCE
VALUATION VALUE VALUE COMPENSATION
1 Matt Sloan, MAI 2/22/2020 $11,569,000 $11,497,000 $72,000 $52,000 $20,000
2
The following determinations of value have been made on subject property:
Review Appraiser Amount Date Revised Amt. Date Revised Amt. Date
JUNTILA (1) $72,000 2/22/2020 (2) (3)
Reviewer's Inspection and Analysis: (List building, structures, fixtures and improvements to be acquired. Explain variances, if any,
between reviewer's findings and appraisal(s):
FORM APPRAISAL REVIEW
Tax ID #: 149450-0010, -0020, -0030, -0050. APPROVED VALUE: $72,000
OWNER'S Argo Renton LLC (Argonaut
NAME: Investments, LLC)
APPRAISER: Matt Sloan, MAI, SRA, SOVA Consulting DATE OF VALUE: 2/22/2020
DATE OF REPORT: 3/4/2020
REVIEWER: STEPHEN WM JUNTILA Date submitted for review: 3/9/2020
REVIEW DATE: 3/10/2020 CONTRACT # N/A
REVIEW STATUS ACQUISITION STATUS
NEW (1" Review) X TOTAL
UPDATE (2nd PARTIAL X
Review)
CORRECTIONS EASEMENTS X
REVISION OTHER TCE Cost to cure landscaping
SECTION 1 REPORT FORMAT AND PRESENTATION
Form revised 3/1/2020 CIC Valuation Group,Inc.
GOOD ADEQUATE POOR NONE
LEGAL DESCRIPTION X
TITLE DELINEATION X
SUBJECT DESCRIPTION X
ZONING X
PHYSICAL FACTORS X
UTILITIES X
ACQUISITION AREA SIZE X
ACQUISITION AREA X
LOCATION
EFFECTS OF ACQUISITION X
PRESENTATION OF SALES X
CORRELATION OF SALES X
MAPS &SKETCHES X
PHOTOS X
COMP SALES SHEETS X
TITLE REPORTS & BACKUP X
SECTION 2 CALCULATIONS
The following items were found to be erroneously calculated: land value None
ITEM PG/SECT DOES AFFECTS VALUE DOES NOT AFFECTS VALUE
Land Value
Easement impact
APPRAISER [ X] DID [ ] DID NOT INSPECT THE SUBJECT PROPERTY
APPRAISER [ X ] DID [ ] DID NOT INSPECT THE COMPARABLE SALES
SECTION 3 DATA AND INFORMATION
The following items were found to be erroneously stated: None
ITEM PG/SECT DOES AFFECTS VALUE DOES NOT AFFECT VALUE
REVIEWER [ X] DID [ ] DID NOT INSPECT THE SUBJECT PROPERTY
REVIEWER [ X ] DID [ ] DID NOT INSPECT THE COMPARABLE SALES
SECTION 4 CONCLUSIONS OF VALUE
(NOTE: Supported by report indicated below by YES or NO;Additional support is needed if box checked below]
ITEM-APPRAISED VALUE YES NO ADDITIONAL SUPPORT
ESTIMATED LAND VALUE X
ESTIMATED COMPENSATION FOR EASEMENT X
ESTIMATED COMPENSATION FOR RESTRICTIONS X
ESTIMATED VALUE OF IMPROVEMENTS X
OTHER(explain)
FINAL VALUE OR COMPENSATION X
Form revised 3/1/2020 CIC Valuation Group, Inc. 2
REVIEW CHECKLIST FOR APPRAISAL COMPLIANCE WITH USPAP
AS SET FORTH IN STANDARDS RULE 2-1 AND 2-2
PROPERTY IDENTIFICATION: Central Highlands Plaza 4601 NE Sunset Boulevard Renton, Washington 98059
EFFECTIVE DATE OF APPRAISAL: 2/22/2020 APPRAISER: Matt Sloan, MAI, SRA
Indicate in the column below whether or not the appraisal complies with each of the following USPAP Standards:
2-1 (a)Yes Is the appraisal clearly and accurately set forth in a manner that is not
misleading?
2-1 (b) yes Does the appraisal contain sufficient information to enable the person(s)
who receive or rely on the report to understand it properly?
2-1 (c) yes Does the appraisal clearly and accurately disclose any extraordinary
assumptions or limiting condition that directly affects the appraisal?
Does the appraisal indicate the resulting impact on value?
2-2 (a) yes Does the appraisal identify and describe the real estate being appraised?
2-2 (a) yes Does the appraisal identify the real property interest being appraised?
2-2 (a) yes Does the appraisal state the purpose of the appraisal?
2-2 (a) yes Does the appraisal define the value to be estimated?
2-2 (s) yes Does the appraisal state the effective date of the appraisal and the date of
the report?
2-2 (a) yes Does the appraisal describe the extent of the process of collecting,
confirming, and reporting data?
2-2 (a) yes Does the appraisal set forth all assumptions and limiting conditions that
affect the analyses, opinions,and conclusions?
2-2 (a)des Does the appraisal set forth the information considered, the appraisal
procedures followed,and the reasoning that supports the analyses,
opinions, and conclusions?
2-2 (a) yes Does the appraisal set forth the appraiser's opinion of highest and best use?
2-2(a)des Does the appraisal explain and support the exclusion of any of the usual
valuation approaches?
2-2 (a) yes Does the appraisal set forth additional information that may be appropriate
to show compliance with the requirements of USPAP Standards Rule 1?
2-3(a) yes Does the appraisal have a signed certificate in accordance with Standards
Rule 2-3?
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REVIEW CHECKLIST FOR 1APPRAISAL COMPLIANCE WITH THE"FINAL RULE"STANDARDS AS SET FORTH IN THE FOLLOWING CODES
OF FEDERAL REGULATIONS IF APPLICABLE:
Office of Comptroller of the Currency 12 CFR Part 34
Federal Highways CFR 49 part 24
Federal Deposit Insurance Corporation 12 CFR Part 323
Office of Thrift Supervision 12 CFR Part 564
Federal Reserve System 12 CFR Part 225 ')
FIRREA sets forth fourteen"Final Rule Standards"for acceptable appraisals for financial institutions. Answer each question with a
(YES) or(NO) in the space provided below. When appropriate, please indicate the page number(s) on which each standard is
presented within the report. Although the report under review is not to be relied upon by a financial institution, we find this check list
informative.
1. yes Does the appraisal conform to the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the
Appraisal Standards Board of The Appraisal Foundation? (Note: The departure provision of the USPAP does not apply to
federally related transactions.)
2.ves ' Does the appraisal disclose any steps that were taken to comply with the Competency Provision of USPAP?
3.similar' Is the appraisal based upon the following definition of market value: "The most probable price which a property
should bring in a sale, the buyer and-seller,.each acting prudently, knowledgeably and assuming the price'is not
affected by undue stimulus. Implicit in this definition is consummation of a sale as of a specified date and passing
of title from seller to buyer under conditions whereby: buyer and seller are typically well motivated; both parties
are well-informed or well-advised and each acting in what he/she considers his/her own bes interest; a
reasonable time is allowed for exposure in the open market; payment is made in terms of cash in U.S. dollars or
in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the
property sold unaffected by special or creative financing or sales concessions granted by anyone associated with
the sale."
4.ves Is the appraisal written in a narrative format or on forms that satisfy all the requirements of this section; is the
appraisal sufficiently descriptive to enable the reader to ascertain the estimated market value and the rationale for
the estimate; and does the appraisal provide detail and depth of analysis that reflect the complexity of the real
estate appraised?
5.yes2 Does the appraisal analyze and report in reasonable detail any prior sales of the property being appraised that
occurred within the last three years?
6.N/A Does the appraisal analyze and report data on current revenues, expenses, and vacancies for the property if it is
and will;continue to be income producing?
7. yes ' Does the appraisal analyze and report a reasonable marketing period for the subject property?
' 8. N/A Does the appraisal analyze and report on current market conditions and trends that will affect projected income or
the absorption period, to the extent they affect the value of the subject property?
9. N/A Does the appraisal analyze and report deductions'and discounts for any proposed construction, or any completed
properties that are partially leased or leased at other than market rents as of the date of appraisal, or any tract
developments with unsold units?
10. yes Does the appraisal include in the certification required by USPAP an additional statement that the appraisal
assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan?
11. yes Does the appraisal contain sufficient supporting documentation with all pertinent information reported so that the
appraiser's logic, reasoning judgment, and analysis, in arriving at a conclusion indicate to the reader the
reasonableness of the market value reported? '
12. yes Does the appraisal include a legal description of the real estate being appraised, in addition to the description
required by USPAP?
13. N/A Does the appraisal identify and separately value any personal property,fixtures, or intangible items that are not
real property but are included in the appraisal, and does the appraisal discuss the impact of their inclusion or
exclusion on the estimate of market value?
14. ves Does the appraisal follow a reasonable valuation method that addresses the direct sales comparison, income, and
' cost approaches to market value; reconcile those approaches; and explain the elimination of each approach not
used?
The report appropriately relies upon the Washington Pattern Instruction 150.08
2 County records indicate the current owner purchased the property in October 2013 for$8,950,000.
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APPRAISAL REVIEW
Effective Date of Appraisal: 2/22/2020 Legal Interest: Fee
Market Value Appraised: [ X ] AS IS [ ] When Completed [ ] When Stabilized
_ SCOPE OF ADMINISTRATIVE APPRAISAL REVIEW: A review of appraisal components is conducted by using a twenty-
four-point checklist. The appraisal report is rated in four categories per USPAP Standards Rule 3-1(c), (d), (e), and (f) and the
report is assigned an Overall Rating. This Overall Rating represents the Review Appraiser's opinion as to the adequacy and
appropriate-ness of the appraisal report. This Overall Rating as well as other appraisal issues are discussed in the"Comments"
section of this review. The reviewer's recommendation follows these comments. Checklists are also utilized to determine compliance
with USPAP and the Fourteen"Final Rule"Standards governing federally related transactions. These completed checklists are
attached to this report. In completing this review,the Reviewer has:
[ X] Read Report [ ] Interviewed Appraiser [ X ] Inspected Property
REVIEW OF APPRAISAL COMPONENTS
N/A EXCELLENT AVERAGE MARGINAL MISSING I
1. Summary of Facts &Conclusions x
2. Assumptions & Limiting Conditions x
3. Description of Site &Improvements x
4. Description of Personal Property x
5. Effective Age or Remaining Economic Life x
6. Property Ownership History x
7. Overall Area Description &Trend (macro) x
8. Neighborhood Description &Trend (micro) x
9. Supply & Demand Market Analysis x
10. Tax Analysis &Trend x
11. Zoning Analysis &Trend x
1112. Easements &Other Restrictions x
13. Estimated Time to Income Stabilization x
14. Highest & Best Use as though Vacant x
15. Highest & Best Use as Improved x
16. Exposure Time & Estimated Marketing Time x
17. Property Rent& Expense Analysis x
18. Comparable Rent & Expense Analysis x
19. Analysis of Tenant Lease Terms x -
20. REPLACEMENT COST APPROACH x
21. COMPARABLE SALES APPROACH x
22. INCOME CAPITALIZATION APPROACH x
23. DISCOUNTED CASH FLOW ANALYSIS x
24. RECONCILIATION OF VALUE x
•
•
•
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APPRAISAL REVIEW
I
REVIEWER'S RATING OF APPRAISAL REPORT
I Per USPAP Standards Rule 3-1
I
EXCELLENT AVERAGE MARGINAL
Overall Completeness of Report X
Adequacy & Relevance of Data &Adjustments to Date X
Appropriateness of Methods &Techniques X
Reasonableness of Analysis, Opinions &Conclusions X
OVERALL RATING: [ X ] EXCELLENT [ ] AVERAGE [ ] MARGINAL
REVIEWER'S COMMENTS
We appreciate the opportunity to review the work of Matt Sloan of SOVA and to be of service to RES Group Northwest
and the City of Renton. Our subject here is a commercial zoned (CA) four parcel assemblage comprising 349,720 SF
located at the SW corner of NE Sunset Boulevard and Duvall;Avenue NE, easterly of I-405 in the Highlands Park
neighborhood of Renton. Site dimensions are about 600 feet wide (east-west) and with about 590 feet (average) of
north-south depth. The subject is improved with four circa 1979 large box retail buildings comprising 93,571 SF and
related site improvements operating as a neighborhood retail center. The tenants are an Albertson's Grocery, Planet
Fitness, Big Lots and an Ace Hardware. The structures themselves are described in greater detail on page 6 and are
deemed sufficiently removed from the areas proposed for acquisition as to not be damaged, retaining the same value
in contribution in the After condition as they do in the Before; HABU is deemed to be the current use. (see aerial
photos on pages iii and 22 and sketch on page 4). The City of Renton proposes to acquire a permanent five-foot slope
and utility easement along the easterly property boundary for a total of 2,912 SF. In addition to the permanent
easement a 5-foot strip is proposed to encumber 4,820 SF with a TCE to facilitate access to the site during the
construction of 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
trees, juniper and other shrubbery landscaping. It is the appraiser's understanding that the trees will not be removed
however the groundcover juniper will likely be removed and'not replaced. Asphalt pavement and curbing will be I
replaced if removed or otherwise impacted. The subject is valued on an "as if clean"basis.
Site valuation is opined from analysis of 4 sales and a listing summarized on page 12\with complete write ups and
paragraph discussions of each
following. An adjustment grid is on page 19 leading to a conclusion of unit value per SF II
of$33.00 or a site value of$11,540,000 (rd). Impacted minor site improvements are estimated based on the Marshall
Valuation Service Cost Manual, not best, but valued in contribution at a reasonable figure of$28,000 In review we
concur with the Before value of$11,569,000 (rd).
The After condition is a hypothetical assuming that the acquisitions have occurred and the project is complete as I
designed. In this case, the After condition reflects the encumbrance of the permanent slope and utility easement and
the loss of minor site improvements and landscaping within the proposed acquisition area. It also reflects the property
being located on a reconfigured four-lane arterial with new curb's, gutters, sidewalks, and street lighting, significant
frontage improvements, a general benefit. The Temporary Construction Easement (TCE) adjacent to the permanent
easement necessary to facilitate access to the site while constructing project improvements and to tie-in existing I
driveway approaches with the newly configured roadway improvements is no longer encumbering the subject.
Because there is no fee acquisition, the site will be the same size, shape, and general configuration in the after
condition. Potential redevelopment potential is unaffected. The property will have a loss of some landscaping due the ,
installation of utilities and construction of the project. The utility easement is valued in a direct and understandable II
method as to discount ranges typical in the appraisal profession. The TCE is likewise valued in the most common
method similar to a short-term land lease. In review we concur with these conclusions We direct the reader to the
summaries on pages 25 and 26. Owner contact is reported on page 29 and is deemed adequate.
Value Conclusions &AllocationsII
Site Area Before Condition $11,569,000 I
After Condition $11,497,000
Just Compensation/Diminution $72,000
Easement Acquisition (Rounded) $24,000
Temporary Construction Easement$20,000 "
Impacted Site Improvements $28,000 I
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ROUNDED $72,000
REVIEWER'S RECOMMENDATIONS
Based on the above Overall Rating, and the sufficiency of the appraisal for regulatory compliance
purposes, the Reviewer recommends the following:
[ X ] Accept the appraisal as written.
[ ]Request that the appraiser revise the existing appraisal and address the concerns and issues cited
in this review, OR
[ ] Have a new appraisal report prepared by another appraiser, OR
[ ] Accept the valuation provided in this review appraisal
•
Form revised 3/1/2020 CIC Valuation Group,Inc. 7
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• .
REVIEWER APPRAISER'S.CERTIFICATION': ,.
• I HEREBY CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF ' "" 1
• The facts and data reported"by.the Review Appraiser and used in the review process are true and correct. •
s That the Determination of Value which has been set forth above has:been, independently reached based on appraisals and
other actual data of record without collaboration or direction.
j'
• The analysis, opinions, and conclusions in this review are limited only by the assumptions and limiting.conditions stated in the
appraisal report under review by extension,and this review report or the project file,and are my personal, unbiased • " • '
. professional analysis; opinions and,conclusions.
• That I have no present or prospective direct or indirect personal interest the•property that is the subject of this report and no. i t
personal interest with respect to the parties involved._Nor will I in any way benefit from the acquisition of such property I
appraised. I have no bias with respect to the property that is the subject of this report or to the parties involved with this: : I 1
assignment. My compensation is not contingent on any action or event resulting from the analysis, opinions, or conclusions in,
or the use of this review report. . :
.
• 'I did inspect the exterior subject"property of the appraisal under review. That:I have personally inspected the property to be:: •:
'acquired and the comparable sales applicable thereto except as set forth above " . .. . .. .. :: ' . .. . :: :: 1
II
No one hasf-provided"professional assistance:in the form o research'and review documentation. No one else has provided 1
significant professional assistance in completing this review,
• I have not incorporatedimypersonal opinion of value;which was formed independently of the•appraisal under review, into this
report.
• My analysis,opinions,and conclusions were deVeloPecf and this review report was prepared inconformity with the Uniform -
Standards of Professional Appraisal Practice. I have taken the necessary steps,when incorporating.my personal opinion of ::
- -value into this review-to: satisfy the requirements'of the Uniformed Standards of Professional Appraisal Practice, Standards •"
Rule 1; identify and set forth any additional data relied upon and:the reasoning and basis for the different estimate'of value;
.: : and clearly identifyassumptions and limitations connected with forming my.personal opinion of value.
Y and disclose all.assumP
• My engagement in this assignment was not contingent upon developing or reporting predetermined results
•. I have performed no prior valuations services related to the subject property.
•
• •My,analyses, opinions,or conclusions were developed and this review report was prepared in conformity with the Local Agency
Guidelines established by the Washington State Department of Transportation and USPAP.
• That the Determination of Value which has been set forth above has been, independently,reached based on appraisals and
other actual:data of record without collaboration or direction.':
APPRAISER'S ESTIMATE OF VALUE OR JUST COMPENSATION , I $72,000 ::
:REVIEWER'S RECOMMENDATION y:,::$72,000 , I
The Reviewer [ ] DOES:[ X] DOES NOT recommend a second appraisal.: .:
•
Please see Appraisal Project File for a complete document as to Assumptions and Limiting Conditions as well as
I
Certifications. ' I . ". I
:Signature
Stephen Wm 3untila,-CRA, SR/WA (ret)
Washington State Certified General Real Estate Number 27011-1100.650 :
Date 3/10/2020 C.:
.
1
Form revised 3/1/2020 CIC Valuation Group;Inc: 8
City of Renton
CONCURRENCE AND AUTHORIZATION
The City of Renton does hereby indicate concurrence with the above certification and does authorize
further action by the appropriate Department and/or its agents to proceed according to established
procedures with the acquisition of the property.
1. I have no present or prospective interest in the property that is the subject of this report; and
2. I have no personal interest or bias with respective to the parties involved; and
3. My compensation is no contingent on an action or event resulting from this report.
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Form revised 3/1/2020 CIC Valuation Group,Inc. 9