HomeMy WebLinkAbout3338; Agua Hedionda & Calavera Creek Dredging; 57.64 Acre Land N ECR & E Tamarack Ave; 2000-08-01APPRAISAL OF A
57.64 ACRE HOLDING OF RAW LAND LOCATED
North of El Camino Real and East of Tamarack Avenue
Carlsbad, California 92008
Owner: Carlsbad Unified School District
DATE OF VALUE
August 1, 2000
DATE OF REPORT
October 27, 2000
APPRAISED FOR
City of Carlsbad
APPRAISED BY
Ted G. Hendrickson, MAI
Mike Barajas
Hendrickson Appraisal Company, Inc.
10992 San Diego Mission Road, Suite 203
San Diego, California 92108
lilENDRICKSON
APPRAISAL COMPANY, INC.
Real Estate Appraisers - Consultants
J 0592 San Diego Mission Road • Suite 203 • San Diego, California 92108 • (619) 282-0800 Ted G. Hendrickson, MAI, SRPA
Mr. David Hauser
Deputy City Engineer
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Reference: Appraisal of a 57.64 acre holding of unentitled vacant land in the northeastern section
of the city of Carlsbad, currently owned by the Carlsbad Unified School District, a
Public Agency.
Our File No. 2K136-L
Dear Mr. Hauser,
At your request and authorization, the above referenced property and its environs have been inspected
and analyzed for the purpose of formulating an opinion of market value for the subject property. It
is our understanding that the city of Carlsbad anticipates acquiring a portion of this property to
facilitate construction of a flood control project - Detention Basin BJB. The appraisal process and
reporting is consistent with California eminent domain law.
This abbreviated narrative appraisal report briefly describes the facts and reasoning upon which our
opinion of market value is based. The analysis and final report (expanded restricted format per
Appraisal Institute definition), has been prepared in compliance with, and subject to the requirements
of the Uniform Standards of Professional Appraisal Practice (USPAP) as published by the Appraisal
Foundation and adopted by the Appraisal Institute. The report contains a description of the subject
property as well as a discussion of the reasoning that has resulted in our opinion of value.
Based upon our investigation and analysis, and by virtue of our experience as real estate analysts and
appraisers, it is our opinion that the market value of the part to be acquired as of August 1, 2000,
was:
$282,000
TWO HUNDRED EIGHTY TWO THOUSAND DOLLARS
This appraisal is subject to certain additional assumptions and limiting conditions that are made a part of
this report. Acceptance and use of this report by the client or any other party constitutes acceptance of these
assumptions and limiting conditions.
Thank you for this opportunity to be of service. Please call should any questions arise or if we may be of
any further assistance.
Respectfully submitted, ,
Ted G. Hendrickson, MAI
California Certified General Appraiser
Certificate No: AG004974
Mike Barajas
California Certified General Appraiser
Certificate No: AG018410
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fit
T1Y1IDENTIFICATION OF THE PROPERTY
The subject of this appraisal is a holding of vacant, raw land located in the northeast portion of the city of
Carlsbad. It is north of El Camino Real, east of its intersection with Tamarack Avenue. It is approximately
one mile east of the Agua Hedionda Lagoon and approximately one mile north of Palomar Airport.
LARGER PARCEL
The subject property comprises two parcels of land, APN's 168-050-19 and 168-050-46, which satisfy the
three unities (use, ownership and contiguity) necessary to be considered a larger parcel. Future references
to the "subject property" are hereby defined to include both Assessor parcels.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal assignment is to develop an opinion of the market value of the portion of the
subject property being acquired, to assist the city of Carlsbad in estimating costs related to a proposed
detention basin project.
APPRAISAL REPORTING PROCESS
The appraisal process and analysis has been fully complete, while the reporting of the findings and
conclusion of value are communicated in an abbreviated narrative report format (restricted report). This
reporting format is intended to comply with the reporting requirements set forth under Standards Rule 2-
2(c) of the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation relating to
restricted reports and is in full compliance with the Appraisal Institute. As agreed with the client, this
restricted appraisal report presents limited discussion of the data, research, evaluation, and analysis that
were used in the appraisal process to develop the final conclusion of value. Detailed analysis and supporting
documentation is retained in Hendrickson Appraisal Company, Inc. files.
DEFINITION OF MARKET VALUE
Fair market value as defined under California Eminent Domain Law and as referenced in the California
Code of Civil Procedure, Section 1263.320, is as follows:
"The fair market value of the property taken is the highest price on the date of valuation that would be
agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor
obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so
doing, each dealing with the other with full knowledge of all the uses and purposes for which the property
is reasonably adaptable and available.
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The fair market value of property taken for which there is no relevant market is its value on the date of
valuation as determined by any method of valuation that is just and equitable."
Section 1263.330 states: The fair market value of the property taken shall not include any increase or
decrease in the value of the property that is attributable to any of the following:
(a) The project for which the property is taken.
(b) The eminent domain proceeding in which the property is taken.
(c) Any preliminary actions of the plaintiff relating to the taking of the property.
This appraisal is subject to the limiting conditions presented in this report. If it should be determined that
any of these assumptions and limiting conditions are not valid, the appraisers reserve the right to amend the
appraisal.
PROPERTY RIGHTS APPRAISED
The estate appraised is the fee simple interest in the subject property, subject to any covenants, conditions
and restrictions of record.
EFFECTIVE DATE OF APPRAISAL
The effective date of the appraisal is August 1, 2000, one of the dates the property was inspected.
INTENDED USERS OF THE REPORT
This report is intended for the sole use of the City of Carlsbad to assist in making a pre-condemnation offer.
OWNERSHIP
Ownership to the subject property is vested in the Carlsbad Unified School District, a Public Agency.
PROJECT DESCRIPTION
The project for which the acquisition is being made is a detention basin in the Calavera Creek area in
northeastern Carlsbad. The majority of the basin, nearly 12 acres, affects the adjoining property to the west.
The project will encumber approximately 2.41 acres of the subject's most southwesterly area. The
detention basin is designed to detain excess water from Calavera Creek during the rainy season. There is
also a storm drain culvert to be constructed in an area which is expected to eventually be under the
proposed intersection of Cannon Road and College Boulevard in the vicinity of the southwest corner of the
subject property.
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SCOPE OF THE REPORT
Since this is a restricted report, with abbreviated narrative discussion, it is extremely important that this
section be read to gain an understanding of the scope of the assignment and appraisal process completed.
The appraisal process undertaken in this assignment was detailed and fully complete. The subject property
was inspected to determine its physical attributes. The subject property is currently vacant land. Since this
is an appraisal of vacant, unimproved land, neither the Cost Approach nor the Income Approach is
applicable, and the Sales Comparison Approach was the only approach to value employed.
Zoning and land use information was explored with city planners to gain an understanding of the subject
property's compliance with zoning regulations and to establish its highest and best use. After gaining a good
understanding of the subject property's physical and economic characteristics, detailed market research was
conducted to aid in developing an opinion of the value of the property.
This appraisal report presents the description and valuation analysis of a vacant, raw, unentitled parcel
located in northeastern Carlsbad. The parcel size was extracted from San Diego County Assessor's data
and the size of the acquisition area was extracted from maps provided by the city of Carlsbad and
information provided by Rick Engineering. Descriptions of the project are based on conversations with
representatives of Rick Engineering, the firm contracted to provide engineering services for the flood
control project - Detention Basin BJB. Design drawings were not made available to the appraisers.
The subject property is in an area identified in the Carlsbad General Plan for eventual development with low
to medium density residential use at a density of four units per acre. The most recent available sales of land
intended for similar residential development were researched and verified, then compared to the subject
property.
A portion of the property is being acquired as part of a detention basin project being undertaken by the city
of Carlsbad. The acquisition is being made under the provisions of California eminent domain law.
Determining just compensation to the property owners requires several steps. First, the value of the whole
property before the acquisition is determined. Second, the value of the part being acquired is developed by
applying the per unit value of the whole property to the area being acquired. Third, the value of the
remainder as part of the whole is developed by deducting the value of the part being acquired from the value
of the whole. Fourth, the value of the remainder after the acquisition is developed. Fifth, the value of the
remainder after the acquisition is compared to the value of the remainder as part of the whole to determine
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whether or not severance damages or benefits exist. Finally, just compensation to the property owner is
calculated by adding the value of the part being acquired to any net severance damages (severance damages
minus benefits).
It is intended throughout this appraisal process that this appraisal be performed in such a manner that the
results of the analysis, opinions, or conclusions are that of a disinterested third party.
NEIGHBORHOOD DESCRIPTION
The subject property is located in the northeastern section of the city of Carlsbad, an area into which
residential development is currently expanding. Carlsbad is a coastal north San Diego County community,
situated about 35 miles north of downtown San Diego. The subject area features a variety of residential
development including both single family and multi family projects with development currently progressing
toward the vicinity of the subject. The community has adequate access to 1-5 and the rest of the freeway
system. The neighborhood boundaries are generally El Camino Real to the west and south and the
Oceanside city line to the north and east.
Carlsbad is a popular community in a good coastal location. It has good access to the freeway system, is
close to north county employment centers, recreational activities and shopping and other commercial
conveniences.
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POINT LOMA
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NEIGHBORHOOD MAP
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SUBJECT PHOTOGRAPHS
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Subject property looking southeast from the access road along the north property line.
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Subject property looking to the south.
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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PLAT MAP
f N6S«2S14"E 347.71
R-30O 196.95
k SJtfSfsn 3M.1t
I K-400 234J9
i N67*2SP41t 74.1*
k R-700 20&32
L N30*22r37-e 1SS9.73
2> MMCHO CNUB4OCOUNTKTCUM E5TA1B(COUHUNtTY COMMON AKA)
MAP 823 - RHO AGUA HEDIONDA - FOR LOTS D, E & L - MM 231
ROS 6616, 7918, 9336,14818
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TYIDESCRIPTION OF THE SUBJECT PROPERTY
Location - The subject property is a parcel of unentitled vacant land located in the northeastern section
of the city of Carlsbad. It is situated north of El Camino Real, east of its intersection with Tamarack
Avenue.
APN's - 168-050-19 and 168-050-46
Legal Description -The following legal description was extracted from the San Diego County Assessor's
Property Data: Lot E, Map No. 0823 of Rancho Agua Hedionda.
Real Property Taxes/assessments - The subject property is owned by a public agency and is not taxed.
Shape and Size - San Diego County Assessor's data indicates that the subject property is approximately
57.64 acres in size. It is irregular in shape. Please refer to the Plat Map.
Topography - The property has level and rolling topography.
Biological Habitat/Environmental Considerations - As with any large holding of land in San Diego
County, the subject property exhibits characteristics of interest from an environmental standpoint, either
as a result of direct impacts of development on the subject site or as potential mitigation areas for project
impacts in other areas off the subject site. Much of the subject property has been used for agricultural
purposes, which typically destroys its habitat value. Although a biological map was not provided, it appears
that portions of the subject property contain Coastal Sage Scrub which is identified as sensitive habitat. It
is our understanding that the current owner intends to eventually develop the property with a high school.
Our research indicates that sites intended for high school facilities typically range in size from 20 to 30
acres. It is our opinion that the proposed improvements could be constructed in the disturbed portion of
the property, and the remainder, including the areas of coastal sage, could be set aside for mitigation
purposes. There is riparian woodland, the bulk of which is on the adjacent property, located along the
western property line and Calavera Creek. There is also a small portion of Eucalyptus woodland located
at the southwestern corner of the property.
Improvements - The subject property is vacant, raw land with no improvements.
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TTtiUtilities - All typical utilities will have to be extended to this property as development of adjacent areas
progresses.
Access - Primary access to the property is via a dirt road which crosses the adjacent property to the west.
The closest paved road accessible via this road is El Camino Real approximately one half mile southwest
of the subject.
Development Status - The subject property is raw, unentitled, unimproved land. No mapping has yet been
approved.
Zoning and Planning - The subject property is zoned L-C, Limited Control. The Carlsbad General Plan
Land Use Map identifies the area for eventual low to medium density residential use with up to four
dwelling units per acre. As previously noted, it is likely that the current owner will ultimately develop the
site with a high school facility. In our valuation, we have considered the use which would yield the highest
and best use of the subject site.
Easements - A title report was not available for review. The subject's plat map indicates that there is an
easement owned by the Carlsbad Municipal Water District (a Public Agency) that traverses the subject
property from east to southwest. The appraisers are not aware of any other easements on the subject
property. We have no reason to believe that there are any easements which would affect the marketability
of the subject property, or will limit the development of the property to its Highest and Best Use.
Flood Zone-Review of FEMAFlood Insurance Rate Map 06073C0766F, dated June 19,1997, indicates
that most of the subject property is in white zone X, identified as outside the 500 year floodplain. A very
small sliver of the subject property along Calavera Creek is identified as being in the 100 year flood plain.
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CONSTRUCTION IN THE MANNER PROPOSED
The appraisers have not been provided with design drawings showing the construction in the manner
proposed. Based on discussions with representatives of the city of Carlsbad and Rick Engineering, the
detention basin itself is to be constructed on the adjacent property. The inundation easement area, which
includes areas east, north and west of the basin, extends a short distance into the subject property north of
the proposed alignment of College Boulevard. To contain water in the area, berms are to be constructed
along its southern and eastern edges, generally along the northern edge of the proposed College Boulevard
and Cannon Road alignments. The berms will eventually form part of the grade separation between the
proposed alignment of College Boulevard and the detention basin.
DESCRIPTION OF THE PART TO BE ACQUIRED
The appraisers have been requested to consider acquisition of an inundation easement on a portion of the
subject property, in conjunction with the detention basin "BJB" project. The entire project requires
acquisition of approximately 14.27 acres, 11.86 acres of which encumbers the adjacent property. The
portion of the easement which encumbers the subject property is an irregular shaped area, approximately
2.41 acres, located at the southwestern corner of the property adjacent to Calavera Creek. It is a relatively
low lying area, a small part of which is currently in flood zone (primarily flood plain fringe area). The area
is to be used as an inundation area during heavy rain when the existing drainage channels are incapable of
containing the runoff.
DESCRIPTION OF THE REMAINDER
Since only easement rights are being acquired, the subject property will still comprise approximately 57.64
acres of vacant, unentitled land. Approximately 2.41 acres at the southwestern corner of the property will
be encumbered with the inundation easement. The remainder of the property is unaffected by the current
acquisition, although the eventual proposed alignments of Cannon Road and College Boulevard, as well
as their intersection, will also affect this property. The acquisition map provided to the appraisers suggests
that, while the roads are not part of the current project, their anticipated future locations were considered
during design of the detention basin and inundation easement area.
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If
TTTiHIGHEST AND BEST USE
The subject property is an approximately 57.46 acre parcel of vacant, unentitled land. It is currently zoned
L-C (Limited Control) by the city of Carlsbad. This is an interim zoning classification used for areas of the
city which are not yet ready for development. The General Plan identifies the subject area for low to
medium density residential use at a density of up to four units per acre. The size, shape and topographical
characteristics of the property are well suited for development in accordance with that land use designation.
It is our understanding that the current owner of the property is likely to eventually develop the site with
a public high school. However, we do not believe that this use represents the Highest and Best Use of the
property, particularly if it is considered on the basis of being vacant and available for purchase by a typical
buyer. Accordingly, we have concluded that the Highest and Best Use of the subject property is for eventual
development with a low to medium density residential subdivision.
VALUATION ANALYSIS
The Appraisal Process
As noted in the Scope section of this restricted report, the Sales Comparison Approach was used to develop
an opinion of value of this property, and the process of determining just compensation to the property
owner requires several steps. First the value of the entire property is developed. Second, the value of the
part being acquired is developed by applying the per unit value of the whole property determined in the first
step. Third, the value of the remainder as part of the whole is determined by deducting the value of the part
being acquired from the value of the whole property. Fourth, the value of the remainder after the acquisition
is determined. Fifth, the value of the remainder after the acquisition is compared to the value of the
remainder as part of the whole to determine if severance damages or benefits exist. Last, just compensation
is calculated by adding the value of the part being acquired to the value of any net severance damages.
This restricted appraisal report presents limited discussion of the data, research, evaluation, and analysis
that were used in the appraisal process to develop a final conclusion of value. It is our intent to briefly
summarize findings developed from the Sales Comparison Approach. Market data to establish current
market value were researched, analyzed, and confirmed with market sources in order to develop a well
supported opinion of value for the subject property. Detailed market data documentation is presented in
the addendum to this report.
Value of the Whole Before the Acquisition
A total of seven sales of property intended for development with residential subdivisions was researched
and analyzed in order to develop an opinion of market value for the subject. These seven sales were
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i
•
1
compared to the subject property on the basis of location, overall site size, access and off site
mprovements, physical condition of the property (on site improvements, shape, site utility, etc.), availability
of utilities, entitlements and development timing, and density/yield potential in terms of the number of units
jer gross acre. Note that since $/acre values typically decline as parcel size increases, a larger holding of
and is considered inferior on a $/acre basis to a smaller parcel. The following table arrays the seven sales
and a brief summary of details relating to each. The unit of comparison used in this analysis is dollars per
acre, as that is typically the unit used by potential buyers of residential subdivision land.
VACANT LAND COMPARABLES
Comp
1
2
3
4
5
6
7
Location
N side of El Camino
Real 1/4 mile N of
College Blvd., Carlsbad
W of Carmel Mountain
Road and Sundance,
San Diego
W of Aviara Parkway at
Cobblestone Rd.,
Carlsbad
North & South of
Scripps Poway Parkway,
San Diego
West of Sundance Ave.
and Entreken Way, San
Diego
South of El Camino
Real East of Kelly Dr.,
Carlsbad
SEC Carlsbad Village
Dr. and Glasgow Dr.,
Carlsbad
APN
209-070-01,
02
306-051-04,
05,08
212-040-41
Multiple
306-041-06,
19, 20, 21
208-00-06
thru 10
168-041-08
Date
Open
option
12/99
01/00
8/98
1/99
Current
escrow
9/98
9/99
Size (Ac)
G 147.00
N 111.00
G 117.73
N 75.00
G 54.00
N 30.00
G 246.95
N 153.25
G 97.80
N 76.90
G 17.54
N 8.77
G 11.50
N 10.00
Selling Price
$ 11,760,000
$ 23,700,000
$ 16,931,000
$ 15,283,000
$ 20,600,000
$ 2,900,000
$ 3,200,000
Price/Ac | Comments
$ 80,000
$ 201,308
$ 313,537
$ 61,887
$ 210,634
$ 165,336
$ 278,261
Raw, unentitled land,
buyer is processing
maps
Raw, unentitled land
desig. for 5 units per
net acre. Buyer
processing maps.
Undeveloped land
with off-sites. Final
map approved shortly
after sale.
Raw, unentitled land,
rough topo. Buyer has
processed final map.
Raw land with
proposed tentative
map for 234 units.
Raw, undeveloped
land. Final map was
approved shortly after
close of escrow.
Sheet graded site with
off-site imps.
Residential density of
10-15 units/ac.
Sale 1 is a 147 gross acre property with a selling price of $1 1,760,000, or $80,000 per acre. It is considered
inferior to the subject as to its overall size on a dollars per acre basis, its density/yield, and slightly inferior
as to availability of utilities. It is slightly superior as to its entitlements and superior as to its development
timing. It is considered similar to the subject in other respects. Overall this comparable property is
considered inferior to the subject.
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Sale 2 is a 118 acre parcel of land with a selling price of $23,700,000, or $201,308 per acre. It is considered
slightly inferior to the subject as to its overall size and availability of utilities. It is superior to the subject
as to its location, entitlements and development timing. It is considered similar to the subject in other
respects. Overall, this comparable property is considerably superior to the subject.
Sale 3 is a sale of a 54 acre parcel of land which sold for $16,931,000, or $313,537 per acre. It is
considered superior to the subject as to its location, and its access. It is considerably superior as to
entitlements and development timing, and slightly superior as to availability of utilities. It is considered
similar to the subject in other respects. Overall, this comparable property is considered vastly superior to
the subject.
Sale 4 is a sale of a 247 acre parcel of land which sold for $15,283,000, or $61,887 per acre. It is inferior
to the subject as to its location, overall size and topography. It is superior to the subject as to entitlements
and access. It is considered similar to the subject in other respects. Overall, this comparable is considered
inferior to the subject.
Sale 5 is a 98 acre parcel with a selling price of $20,600,000, or $210,634 per acre. It is considered slightly
inferior to the subject as to its overall size, its utilities and its access. It is superior to the subject in terms
of its location, its entitlements and its development timing. It is considered similar to the subject in other
respects. Overall, this property is considerably superior to the subject.
Sale 6 is an 18 acre parcel with a selling price of $2,900,000, or $165,336 per acre. It is superior to the
subject as to its overall size, its entitlements and its development timing. It is considered similar to the
subject in other respects. Overall, this property is considered superior to the subject.
Sale 7 is an 11.5 acre parcel with a selling price of $3,200,000, or $278,261 per acre. It is considered
superior to the subject in terms of its location, overall size, topography, entitlements, development timing,
density, utilities and access. Overall it is considered vastly superior to the subject.
The following table lists the comparable sales in ascending order from most inferior to most superior to the
subject property.
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LAND COMPARABLES SUMMARY
Comp
4
1
6
2
5
7
3
Location
N & S of Scripps Poway Parkway,
San Diego
N side of El Camino Real near
College Boulevard, Carlsbad
S side of El Camino Real at
Crestview Drive, Carlsbad
West of Carmel Mountain Road
and Sundance Avenue, San Diego
W of Sundance Avenue and
Entreken Way, San Diego
SEC of Carlsbad Village Drive and
Glasgow Drive, Carlsbad
W of Aviara Parkway at
Cobblestone, Carlsbad
Date
1/1999
Current
escrow
9/1998
9/1999
1/2000
Current
escrow
9/1999
8/1998
Size (Ac)
246.95
147.00
17.54
117.73
97.80
11.50
54.00
Selling Price
$ 15,283,000
$ 11,760,000
$ 2,900,000
$ 23,700,000
$ 20,600,000
$ 3,200,000
$ 16,931,000
Price/Ac
$ 61,887
$ 80,000
$ 165,336
$ 201,308
$ 210,634
$ 278,261
$ 313,537
Comparability
Inferior
Inferior
Superior
Consid Superior
Consid Superior
Vastly Superior
Vastly Superior
These seven comparables are considered to be the best available indicators of the market value of the
subject property. They are considered to bracket, albeit somewhat widely, the subject value. Based on our
research and analysis of these comparable properties, we have concluded that the market value of the
subject property is $130,000 per acre.
Value of the Whole 57.64 Ac x $130,000/Ac $7,493,200
Value of the Part Being Acquired
The city will acquire permanent easement rights to a small portion of the property, encumbering
approximately 2.41 acres of the property for an "InundationEasement" as part of the detention basin "BIB"
project. It is our opinion, that the easement area to be acquired represents nearly a full taking of the owners
bundle of rights to this portion of the property. The owner retains fee title to this area but will not be able
to use the area for their exclusive purposes. We have concluded that this acquisition represents 90% of the
unencumbered fee value of the land. The value of the whole property was previously determined to be
$130,000 per acre. The physical characteristics of the area being acquired are generally similar to the
physical characteristics of the subject property as a whole. Therefore, the unit value of the property as a
whole can be extended to the part being acquired, and the value of the part being acquired can be calculated
as follows.
Innundation Easement 2.41 Ac x $130,000/Ac x 90% $281,970
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Value of the Remainder as Part of the Whole
The value of the remainder as part of the whole is determined by deducting the value of the part being
acquired from the value of the whole in the before condition and is calculated as follows.
Value of the Whole in the Before Condition $7,493,200
Value of the Part Being Acquired 281.970
Value of the Remainder as Part of the Whole $7,211,230
Value of the Remainder in the after Condition
After the acquisition, the subject property will still be an approximately 57.64 acre parcel of residential
subdivision land which is encumbered by a permanent inundation easement totaling 2.41 acres in size. We
previously determined that this easement represents, a taking 90% of the owner's bundle of rights to the
encumbered area. The same comparables used in the before condition analysis are the best sales to use for
the after condition analysis. The resulting per acre value of the subject property in the after condition is the
same as it was in the before condition, or $130,000 per acre. The value of the remainder in the after
condition can be calculated as follows.
Unencumbered Portion 55.23 Ac x $130,000/Ac $7,179,900
Encumbered Portion 2.41 Ac x $130,000/Ac x 10% 31.330
Value of the Remainder in the After Condition $7,211,230
Severance Damages
The value of the remainder in the after condition is unchanged from the value of the remainder as part of
the whole. The property has the same development potential in terms of number of units per acre in the after
condition as could be built in the before condition. In addition, the overall ratio of gross area to net
developable area is generally the same in the after condition as it was in the before condition. As a result,
no severance damages accrue to the property.
Benefits
The value of the remainder in the after condition is unchanged from the value of the remainder as part of
the whole, and no benefits accrue to the property. The value of the remainder as determined by comparison
with comparable properties, considers the value of the property on a per gross acre basis. The property is
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«s\<not damaged by the proposed acquisition, and since benefits can be used only* to offset damages, the
existence of benefits in the absence of damages would make no difference in just compensation to the
property owner.
Just Compensation
Just compensation to the property owner is the sum of the value of the part to be acquired, plus any net
severance damages which accrue to the remainder. The following table summarizes just compensation to
the property owner.
Value of the whole in the before condition A $ 7,493,200
Value of the part taken B $ 281,970
Value of the remainder as part of the whole (A - B) C $ 7,211,230
Value of the remainder in the after condition - before benefits D $ 7,211,230
Value of the remainder in the after condition-after benefits E $ 7,211,230
Severance damages (C - D) F $ 0
Benefits (E-D) G $ 0
Net severance damages (F - G, never less than 0) H $ 0
Value of the temporary easements I $ 0
Just compensation (B + H +1) Rounded: $ 282,000
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ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is prepared subject to the following conditions and stipulations:
1. The legal description furnished in the Preliminary Title Report pertaining to the property is assumed
to be correct.
2. No responsibility is assumed for matters legal in character, nor do we render an opinion as to title,
which is assumed to be held in fee simple interest as of the date of valuation unless otherwise stated.
3. At the request of the client, this report is communicated in an abbreviated narrative report
(restricted report) format which provides for abbreviated discussion of our analysis and conclusions.
The appraisal process was fully complete and detailed support for our conclusions is retained in
Hendrickson Appraisal Company files.
4. It is assumed that the property is readily marketable and free of all liens and encumbrances except
any specifically discussed in this report.
5. Information, estimates, and opinions furnished by others and contained in this report are assumed
to be true, correct, and reliable. A reasonable effort has been made to verify such information;
however, no responsibility for its accuracy is assumed by the appraisers. Photographs, plats, and
maps furnished in this report are intended to assist the reader in visualizing the property.
6. No soils or geotechnical investigation reports were provided by the client. As an assumption of this
analysis, it is presumed that there are no hidden or unapparent conditions of the property, subsoil,
or structures which would render it more or less valuable than otherwise comparable properties. No
responsibility is assumed for such conditions or for engineering which might be required to discover
such factors. The appraisers are not qualified to analyze said conditions, and urge the client to retain
an expert in this field. No visible evidence of soils subsidence was observed during our inspection
of the properties.
7. No opinion is rendered as to the value of sub-surface gas, oil or mineral rights, or whether the
property is subject to surface entry for the exploration or removal of such materials, except as is
expressly stated in this appraisal report.
8. All estimates of value are presented as the appraisers' considered opinion, based upon the facts and
data set forth in this report. The appraisers assume no responsibility for changes in market
conditions nor the inability of the owner to locate purchasers within a reasonable time at the
appraised market value.
9. Testimony or attendance in court or other hearing by reason of this appraisal, with reference to the
property in question, shall not be required unless arrangements have previously been made with the
client, relative to such additional employment. Additional pre-trial and court testimony work is
beyond the scope of this appraisal assignment and will be compensated for at the appraiser's
minimum standard hourly rate.
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10.10. By acceptance and use of this report, the user agrees that any liability for error, omissions or
judgement of the appraisers is limited to the amount of the fee charged for the appraisal. Anyone
acting in reliance upon the opinions, judgements, conclusions or data contained herein, who has the
potential for monetary loss due to the reliance thereon, is advised to secure an independent review
and verification of all such conclusions and/or facts. The user agrees to notify the appraisers, prior
to any irrevocable investment decision, of any error which could reasonably be determined from a
thorough and knowledgeable review.
11. The date of value to which the opinions expressed in this report apply is set forth in the letter of
transmittal. The appraisers assume no responsibility for economic or physical factors occurring at
some later date which may affect the opinions herein stated. The appraisers reserve the right to
make such adjustments to the analyses, opinions and conclusions set forth in this report as may be
required by consideration of additional data or more reliable data that may become available.
12. Any projections included in this report are used to assist in the valuation process and are based on
current market conditions, and anticipated short term supply and demand factors. These projections
are subject to changes in future conditions that cannot be accurately predicted by the appraisers and
could affect the future income or value projections.
13. The possession of this report, or a copy thereof, does not carry with it the right of publication, nor
may it be used for any purpose other than described in this report, without the previous written
consent of Hendrickson Appraisal Company, Incorporated.
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(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
II.
CERTIFICATION
The undersigned certify that, except as otherwise noted in this appraisal report:
We have made a personal inspection of the subject property and each of the comparable sale properties.
We have no present or contemplated future interest in the real estate that is the subject of this appraisal
report, nor do we have any personal interest or bias with respect to the subject matter of this appraisal report
or the parties involved.
Our compensation for this appraisal is not contingent upon the reporting of a predetermined value or direction
in value that favors the cause of the client, the amount of the value conclusion, the attainment of a stipulated
result, or the occurrence of a subsequent event.
To the best of our knowledge, the statements of fact contained in this appraisal report, upon which the
analyzes, opinions, and conclusions expressed herein are based, are true and correct.
This appraisal report sets forth all of the limiting conditions affecting the analyzes, opinions, and conclusions
contained in this appraisal report.
This appraisal report has been prepared in conformity with and is subject to the requirements of the Code of
Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the
Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.
All analyses, conclusions and opinions contained in this report are those of the undersigned.
This appraisal has been prepared in conformity with appropriate California laws applicable to eminent
domain appraisals. To the best of our knowledge, no portion of the value assigned to these properties consists
of items which are non-compensable under the established law of the State of California.
The Appraisal Institute conducts a mandatory program of continuing education for its designated members.
Members of the Appraisal Institute - MAI's, who meet the minimum standards of this program are awarded
periodic educational certification. Ted G. Hendrickson, MAI is currently certified under this program.
Additionally, the undersigned have received certification from the State of California as Certified General
Real Estate Appraisers.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representative.
Restriction Upon Disclosure and Use; The undersigned MAI appraiser is a Member of the Appraisal
Institute. The Bylaws and Regulations of the Institute require all Members to control the use and distribution
of each appraisal report signed by them. Therefore, the possession of this report, or a copy thereof, does not
carry with it the right of publication, nor may it be used for any purpose other than described in the report,
without the previous written consent of Hendrickson Appraisal Company, Inc.
Ted G. Hendrickson, MAI
California Certified General Appraiser
Certificate No: AG 004974
Mike Barajas
California Certified General Appraiser
Certificate No. AG 018410
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Market Data Addenda
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LAND COMPARABLES MAP
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LAND SALE NO. 1
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
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Utilities:
Access/Offsites:
Improvements:
Option Price:
Terms:
Transaction:
Buyer:
Seller:
LAND SALE NO. 1
North side of El Camino Real, 1/4 mile north of College Boulevard, CA
92008
1107-D7
'•
209-070-01 and 02
147.00 gross acres; 1 1 1.00 net acres; irregular rectangle.
Generally level and gently rolling hillsides.
• '
: LC - Limited Control Zone (Residential uses permitted); The density
permitted is low to medium (4 units to the acre). This property is being sold
as raw, undeveloped land, with no entitlements. The buyer is processing a
tentative map for 100 residential units to be built on half acre lots. The
density of this proposed development is approximately one unit per acre
gross and .68 units per acre net.
Public water, sewer, telephone, natural gas and electric are located along El
Camino Real, and are available to the property.
The property is accessible from El Camino Real via easements across
intervening properties. Off-site improvements which include sidewalks,
curb/gutters, storm drains, and street lights, are installed and located along
El Camino Real.
Older, small single family dwelling that contributes minimal value to the
property, and will be razed prior to development.
$11,760,000 ($80,000/acre)
N/ANot disclosed directly, though a cash transaction is likely according to
the source.
Document Number: Option to Purchase.
Recording Date: N/A
Bently-Monarch, LLC
Cantarini Trust
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Confirmed by: David Bently, Buyer, (March/April 2000)
Comments: " This property is located in close proximity to the subject property,
approximately 3A miles to the east. The buyer indicated that there has been
an "open ended" option to purchase for approximately two years. The
original option amount was in the range of $60,000 per acre on the basis of
raw undeveloped land with no entitlements. At the present time the buyer
is processing a tentative map for 100 residential units, to be built on half acre
lots. The current option price was reported to be approximately $80,000
per acre. It was also reported that this property has areas constrained by
biological habitats (wetland areas and Diegan Coastal Sage Scrub). These
areas were generally netted out of the gross land area to reflect net
developable land area per current mapping being processed on the property.
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LAND SALE NO. 2
EN. sec. u
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status:
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
LAND SALE NO. 2
Approximately one mile west of Carmel Mountain Road and Sundance
Avenue, San Diego, CA 92129
1188-J5
306-051-04, 05, and 08
Approximately 117.73 gross acres; 75 net acres; three contiguous parcels
with square configurations. Each parcel comprises approximately 39 acres.
Generally level with steep sloping hillsides
A-l-10, included in the Torrey Highlands Community Plan, Subarea IV, of
the North City Future Urbanizing Area (NCFUA). The zoning permits one
.unit per 10 acres, or a clustered development with a density of one unit per
four acres with a Planned Residential Development (PRD). This property
sold as raw, unentitled land with no mapping or other development
approvals.
A phase shift to planned urbanizing has been approved by San Diego voters
allowing densities to five units per acre on the property. The property will
ultimately be developed at this density, and the purchase price was based on
this density. A tentative map has been processed based on a density of 5 (+)
units per acre net, and 3.6 units per acre gross.
All public utilities will be extended to the property as development
progresses to this property's location.
Access to the property is from an unpaved fire road which extends from the
western terminus of Sundance Avenue, west of Carmel Mountain Road.
None.
$23,700,000 ($201,308/acre) Refer to comments on the following page.
All Cash Sale
Document Number(s): 1999-827846; 2000-005202; 2000-032398
Recording Date(s): 12/22/1999; 01/05/2000; 01/21/2000
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Buyer:
Seller(s):
Confirmed by:
Comments:
Western Pacific Housing - Torrey Santa Fe, LLC
Deer Ridge Investors, LTD; Parcel No.306-051-04
Canyon View Investors, LTD; Parcel No. 306-051-05
Gerald and Ingrid Osborne. Parcel No. 306-051-08
Greg Sandstrom, Buyer's representative, (March/Apil 2000)
David Santistevan, Agent, Colliers International; (Reconfirmed March 2000)
This comparable comprises three contiguous parcels that were purchased by
one buyer, to be assembled into one larger parcel, and land planned into an
integrated economic unit. There were three sale contracts that had different
sale prices and separate close of escrow dates. It was reported that Parcel
306-051-08 sold for $6,700,000; Parcel 306-051-04 sold for $7,000,000;
and Parcel 306-051-05 sold for $10,000,000.
It was reported that large areas in the southern portions of each parcel are
located in the environmental tier of the NCFUA and/or the proposed
Multiple Species Conservation Plan preservation area. These areas do not
provide a density benefit to any proposed developments. The Subarea plan
for the northern portions of these properties are identified for use as a "Joint
Operation Center" for the City; however, it was reported that the buyer has
..processed a plan amendment to change this area to a low density residential
use. The buyer plans to ultimately develop the property with 271 residential
lots, and 150 multi-family units.
Since the date of purchase, a tentative map has been submitted for approval.
Maps were being processed during escrow and the purchase price was based
on a net density of 5 (+) units per acre.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
LAND SALE NO. 3
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status:
Utilities:
Access/Oflsites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
LAND SALE NO. 3
West side of Aviara Parkway, at Cobblestone Road, Carlsbad, CA 92009
1127-A4
212-040-41
54 gross acres; 30 net acres; irregular rectangle configuration.
Gently rolling to steep hillsides.
R-l (Residential); the density permitted is low to medium (4 units to the
acre). This property sold as raw, undeveloped land, with an approved
tentative map for 150 single family dwelling units. This equates to a
density of 5 units per acre net, and 2.8 units per acre gross. Since the
date of sale, development of the site with the single family dwelling units
is nearly completed.
Public water, sewer, telephone, natural gas and electric are located along
Aviara Parkway, and are available to the property.
There is direct access to the site from Aviara Parkway. Off-site
improvements which include sidewalks, curb/gutters, storm drains, and
street lights, are installed and located along Aviara Parkway.
None.
$16,931,000 ($313,537/acre)
All Cash Sale
Document Number: 1998-553443
Recording Date: 08/31/1998
Standard Pacific Homes Corporation
Pacwest Holdings, LLC
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Confirmed by: Greg Linhoff; buyer's representative, (March/April 2000)
Comments: It was reported that a final map for the development of a 150 unit
subdivision, "Shore Pointe," was achieved shortly after the close of
escrow. The gross acreage of this parcel was reduced to 30 net acres,
due to hill side slopes constraints. At the present time, development and
construction is in process on the 150 unit subdivision, with many of the
new homes having good views of the surrounding area and ocean to the
west.
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LAND SALE NO. 4
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status:
Utilities:
Access/Offsites:
Improvements:
LAND SALE NO. 4
North and South side of Scripps Poway Parkway, immediately east of
Interstate 15, (Northwest Scripps Ranch Area) San Diego, CA 92131
1189-F7
315.040-45, 46 and 47; 319-150-01, 15, and 16
246.95 gross acres, 153 net acres; six parcels (three contiguous parcels
on the north side of the road, and three contiguous on the south side of
the road ) with generally rectangular configurations.
Primarily rolling to steeply sloping hillsides.
. A-l-10; The zoning permits one unit per 10 acres, or a clustered
development with a density of one unit per four acres with a Planned
Residential Development (PRD). This property sold as raw, unentitled
land with no mapping or development approvals. According to the
confirming source, a re-zone and approved master plan was achieved for
this property shortly after the close of escrow. It was reported that the
buyer had been processing the master plan and maps for over a year prior
to the close of escrow.
A phase shift to planned urbanizing has been approved by San Diego
voters allowing densities to five units per acre on the property. The
property will ultimately be developed at this density, and the purchase
price was based on this density. A tentative map has been processed
based on a density of 5 (+) units per acre net, and 3.6 units per acre
gross.
Public utilities (water, sewer, telephone, natural gas and electric) can be
extended to the sites from Scripps Poway Parkway.
There is direct access from Scripps Poway Parkway, which is a paved
major thoroughfare in the area. At the time of sale, off-site improvements
(sidewalks, curb/gutters, storm drains, or street lights) were installed
along Scripps Poway Parkway.
None.
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Sale Price:
Terms:
Transaction:
Buyer:
Seller:
Confirmed by:
Comments:
$15,283,000 ($61,887/acre)
All Cash Sale.
Document Number: 99-004122
Recording Date: January 5, 1999
Shea Homes (LP)
Wuest Estate Company.
Ryan Green, Project Manager, buyer's representative, (March 2000).
The buyer intends to develop the property with commercial, retail, and
office uses on the north side of Scripps Poway Parkway, and with single
family dwellings (300 units) and multi-family housing units (150
condominium units) on the south side of Scripps Poway Parkway. At the
present time, site development is currently in process on the property
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LAND SALE NO. 5
MESA VERDE MIDDLE SCHOOL
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Thos. Bros. Map:
Assessor's Parcel
Number:
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Topography:
Zoning/
Development Status
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Utilities:
Access/Offsites:
Improvements:
Sale Price:
Transaction:
Buyer:
Seller:
.
LAND SALE NO. 5
West of Sundance Avenue and Entreken Way, San Diego, CA 92129
'
1189-B4
306-041-06, 19, 20 and 21
Approximately 97.80 gross acres, 76.80 net acres; four contiguous
parcels with irregular/rectangle configurations.
Level with sloping hillsides and canyon areas.
: A- 1 - 1 0, included in the Torrey Highlands Community Plan, Subarea IV,
of the North City Future Urbanizing Area (NCFUA). The zoning permits
one unit per 10 acres, or a clustered development with a density of one
unit per four acres with a Planned Residential Development (PRD). This
property sold as raw, unentitled land with no mapping or other
development approvals. A phase shift to planned urbanizing has been
approved by San Diego voters allowing densities to five units per acre on
the property.
There are no utilities to the site. Public utilities (water, sewer, telephone,
natural gas and electric) are available from Sundance Avenue and
Entreken Way, and can be extended to the site as development occurs.
Access to the property is possible from the western terminus of Sundance
Avenue, onto an unpaved trail / fire road. Existing off-site improvements
(sidewalks, curbs/gutters, storm drains, and street lights) terminate at the
end of Sundance Avenue and Entreken Way.
None.
$20,600,000 ($210,634/acre)
Currently in Escrow (Projected to close at the end of 2000)
Greystone Homes, Inc.
Rancho Penasquitos Partners
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Confirmed by: David Steam, Greystone Homes, April 2000.
Comments: This comparable is located immediately west of the Rancho Penasquitos
.... Community Plan area, just west of the ends of Sundance and Entreken
Avenues.
The tentative map being processed by the buyer is for approximately 234
single family residential units, and 76 affordable multi-family housing
units. Excluding affordable housing units and the area being set aside for
affordable units, the density per gross acre is 4 and the net density is 3.2
units per acre. According to the confirming source there are
approximately 20.90 acres of environmentally sensitive areas (vernal
pools) that reduced the developable acreage.
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LAND SALE NO. 6
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Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
LAND SALE NO. 6
South side of El Camino Real, at Crestview Drive, % mile east of Kelly
Drive, CA 92008 1
1107-A7
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208-040-06, 07, 08, 09, and 10
17.54 gross acres, 8.77 net acres; irregular configuration.
Level and gentle rolling hills.
.
: RA-10 (Residential/ Agricultural); the density permitted is low to medium
(4 units to the acre). This property sold as raw, undeveloped land, with
an approved tentative map for 35 single family dwelling units. Since the
date of sale, development of the site with the 35 single family dwelling
units is completed. This equates to 2 units per gross acre and 4 units per
net acre.
Public water, sewer, telephone, natural gas and electric are located along
El Camino Real, and are available to the property.
There is direct access to the site from El Camino Real. Off-site
improvements which include sidewalks, curb/gutters, storm drains, and
street lights, are installed and located along El Camino Real.
None.
$2,900,000 ($165,336/acre)
All Cash Sale
Document Number: 1998 - 578363
Recording Date: 09/11/1998
Carlsbad 35, LLC
Athalon Properties, Inc.
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Confirmed by: Kent Grover, buyer's representative, (March 2000)
Comments: This property is located in close proximity to the subject property. It was
.-.._ reported that a final map for the development of a 35 unit subdivision,
"Hidden Ridge," was achieved shortly after the close of escrow. The
gross acreage of this parcel was reduced to 8.77 net acres, due to
environmental, hillside slopes, and overhead utility line constraints. At
the present time, development and construction is completed on the 35
unit subdivision.
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
LAND SALE NO. 7
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Location:
Thos. Bros. Map:
Assessor's Parcel
Number:
Size & Shape:
Topography:
Zoning/
Development Status:
Utilities:
Access/Offsites:
Improvements:
Sale Price:
Terms:
Transaction:
Buyer:
Seller:
Confirmed by:
LAND SALE NO. 7
Southwest comer of Carlsbad Village Drive, and Glasgow Drive,
Carlsbad, CA 92008
1107-B4
168-041-08
11.50 gross acres, 10 net acres; rectangular shaped site.
Level
C (Community Commercial); the density permitted is low to medium (4
units to the acre). This property sold .as undeveloped land with sheet
graded topography and no approved maps.
Public water, sewer, telephone, natural gas and electric are located along
Glasgow Drive, and are available to the property.
There is direct access to the site from Glasgow Drive. Off-site
improvements which include sidewalks, curb/gutters, storm drains, and
street lights, are installed and located along Glasgow Drive. Off-site
improvements are not installed on Carlsbad Village Drive and on the
future extension of College Boulevard along the property's east property
boundary..
None.
$3,200,000 ($278,261/acre)
All Cash Sale
Document Number: 1999 - 661913
Recording Date: 09/29/1999
Calavera Hills II, LLC (McMillin Companies)
Calavera Hills Development, (LP)
Jeff Brazel, buyer's representative, (March 2000)
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
Comments: According to the confirming source, the buyer, Me Millin Companies,
owns several large acreage parcels that surround this property and are
part of a large master planned community commonly known as "Calavera
Hills." The buyer is in the process of obtaining a re-zone of this property
to permit the development of cluster / courtyard housing units with a
density in the range of 10 to 15 units to the acre. It was reported that the
net acreage will be approximately 10 acres, after necessary off-site
improvements are completed.
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HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
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General Addenda
A-24
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants
TED G. HENDRICKSON. MAI PROFESSIONAL QUALIFICATIONS
Ted G. Hendrickson, MAI is the president and principal valuation expert of Hendrickson Appraisal
Company, Inc., a mid sized appraisal firm specializing in valuation of commercial, industrial, large vacant
land holdings and land subdivision properties. Mr. Hendrickson has over 25 years of experience as a real
estate appraiser and consultant, primarily specializing in valuation of commercial properties.
Mr. Hendrickson is a qualified expert witness, having given testimony on several occasions in Superior
Court and in the Federal Court system. Mr. Hendrickson has testified in several cases involving: eminent
domain property acquisitions, estate matters, real property misrepresentation matters and partnership
disputes, bankruptcy and foreclosure matters, and diminution of value matters involving construction
defects, soils subsidence and hazardous waste issues. Mr. Hendrickson has also served as valuation expert
and arbitrator in arbitration hearings involving property valuation and lease negotiations with the Port of
San Diego and in other public and private corporate real estate matters.
Mr. Hendrickson's appraisal experience includes valuation of the following property types: commercial,
retail, office, industrial, multi-residential, special use properties, vacant unentitled land with sensitive habitat
issues, and subdivision land with detailed highest and best use analysis. He has extensive experience in
valuing large office buildings and other income producing properties, as well as land subdivisions
(residential and industrial) using discounted cash flow sensitivity analysis.
Mr. Hendrickson holds the highest designation in the appraisal field, the MAI designation! He is past
President of the San Diego Chapter of the Appraisal Institute and currently serves on the Regional
Standards and Ethics Review Board.
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
If'
APPRAISAL3XPERIENCE;
QUALIFICATIONS
TED G. HENDRICKSON, MAI
1986-Present Hendrickson Appraisal Company, Inc.
President; Real estate appraiser, reviewer, consultant, analyst, and expert witness
Full range of Appraisal/Consulting services, including mediation and arbitration services
Right of Way Eminent Domain Valuation Specialist
1984-1986 Independent Appraiser specializing in appraisal and feasibility analysis of commercial,
industrial, offices, multi-phased subdivisions and income properties.
1973-1983 Home Federal Savings and Loan Association:
1973-1979 • Appraiser Analyst specializing in appraisals of subdivisions, commercial, retail
centers, office and industrial properties.
1979-1983 • Appraisal Dept. Manager, Vice President. Responsible for reviewing and
appraising commercial, residential, and industrial properties.
1970-1973 California Department of Transportation. Staff appraiser specializing in valuation of
residential and commercial properties for right of way eminent domain purposes.
EDUCATION; Undergraduate and post graduate professional studies
California State University, Northridge • B.S. degree in Real Estate Finance
Appraisal Institute Courses and Seminars: (Courses
Industrial Appraising
Appraisal of Income Properties
Investment Analysis
Capitalization Theory
Litigation Testimony
Skills of Expert Testimony
Real Estate Risk and Analysis
Discounted Cash Flow Analysis
Valuation of Partial Interests
Subdivision Analysis and Feasibility
Analysis of Money Market Rates
Standards of Professional Practice
taken at various universities throughout the U.S.)
Valuation of Easements
Impact of Hazardous Substances on Real Estate
Highest and Best Use Analysis
Market Land Use Analysis
Financial Forecasting
Environmental and Biological Issues
Cost Analysis
Master Planned Communities/Land Planning
Mitigation Land Analysis
Cash Equivalency
Valuation of Lease Interests
Eminent Domain Law
University of Southern California (Graduate School of Business)
University of Washington (Graduate School of Business)
PROFESSIONAL: Membership and Service
MAI Designation (#6603) with the Appraisal Institute
California Certified General Appraiser (AG004974)
California Real Estate Broker's License (#530471)
Member of the San Diego Board of Realtors (#7407)
Member of the International Right of Way Association (#1148112)
Member of the Professional Ethics, Review and Counseling Committee of the Appraisal Institute
Chairman of several Appraisal Institute committees
Past President of the San Diego Chapter of the Appraisal Institute
COURT EXPERIENCE; Qualified Expert Witness
Testified in California State Superior Court and U.S. Federal Court
Testified in Arbitration and Mediation Proceedings • government agencies and private corporations
• HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants •
fg'
QUALIFICATIONS
MIKE BAEAJAS
APPRAISAL EXPERIENCE:
1990-Present Hendrickson Appraisal Company. Inc.
Associate; Real estate appraiser, consultant, and analyst
providing a full range of Appraisal/Consulting services.
1987-1990 San Diego Community College District
Instructor, Principles of Real Estate Appraisal
1985-1990 Great American Appraisal Services:
Senior Commercial Appraiser specializing in appraisal of subdivisions, office,
commercial, apartment projects, and industrial properties.
1977-1985 Home Federal Savings and Loan Association:
1983-1985 - Senior Appraiser specializing in appraisals of subdivisions,
commercial, office, apartment projects, and industrial properties.
1977-1983 - Residential Appraiser specializing in appraisals of residential
properties, 1 to 4 units, and apartment projects, 5 units and above.
EDUCATION: Undergraduate and post graduate professional studies
National University. San Diego: Bachelors Degree - Business Administration -1982
Appraisal Institute (formerly-American Institute of Real Estate Appraisers):
Standards of Professional Practice - Parts A and B
Course 1 A-1/8-1; Real Estate Appraisal Principles
Course 1A-2; Basic Valuation Procedures
Capitalization Theory and Techniques; Part A
Capitalization Theory and Techniques; Part B
Highest and Best Use Analysis Seminar
Rates, Ratios, & Reasonableness Seminar
Federal Home Loan Bank Board's Memorandum R-41b Seminar
Appraisal Institute (formerly-Society of Real Estate Appraisers):
Course 101; Introduction to Appraising Real Property
Course 201; Principals of Income Property Appraising
Federal Home Loan Bank Board's Memorandum R41-C Seminar
Narrative Report Writing Seminar
Leasehold Analysis
Eminent Domain Law
Expert Witness Testimony
PROFESSIONAL:
State of California General Real Estate Appraiser (AG018401)
OTHER EXPERIENCE: Proficient Real Estate Analyst, using Lotus 1-2-3, Quattro Pro, and Argus
software programs for Discounted Cash Flow Analysis and Lease by Lease Analysis. Extensive
experience in appraising properties to be acquired under the power of Eminent Domain.
HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants
HENDRICKSON APPRAISAL COMPANY. INC.
Hendrickson Appraisal Company, Inc. is a mid sized appraisal firm that was incorporated in 1986
to provide professional consultation on matters relating to valuation of real estate and real property.
The firm specializes in valuation of multiple parcels to be acquired for public service projects.
Included in this valuation discipline is appraisal of partial right of way acquisition properties, with
consideration of damages and benefits, the value of temporary and permanent easements,
construction contract work, signage valuation, and before and after analysis.
Appraisers within the firm provide valuation consultation and expert witness testimony relating to
several legal matters involving: eminent domain property acquisitions, estate matters, real property
misrepresentation matters and partnership disputes, bankruptcy and foreclosure matters, and
diminution of value matters involving construction defects, soils subsidence and hazardous waste
issues. In addition to court testimony, arbitration and mediation services are provided to facilitate
settlement on valuation issues, as appropriate. ,
The firm specializes in appraisal of office buildings including mid and high rise office complexes,
neighborhood re tail centers, regional power centers, industrial properties, restaurants, auto service,
multi-use properties, special use properties, large vacant land holdings, many of which involve
sensitive habitat issues, and residential subdivision and golf course oriented planned residential
developments. Detailed sensitivity analysis, including discounted cash flow analysis on income
producing properties (offices, retail and industrial) and multi-phased residential subdivision cash
flow analysis, is a specialty area of the firm.
In addition to valuation of properties based upon their highest and best use as developed from
market analysis, Hendrickson Appraisal Company, Inc. provides consulting services relating to
alternative uses for various properties, under differing use scenarios.
Following is a brief summary of the organization of the company. Ted G. Hendrickson, MAI, the
principal valuation expert within the firm has over 25 years of appraisal experience, primarily
oriented to ward commercial and subdivision appraising. He has extensive expert witness experience
having testified many times in arbitration and court proceedings. Associate appraisers in the
company are either MAI designated or advanced candidates for the MAI designation and are State
of California Certified General appraisers. The average experience level of the firm's staff appraisers
is 15 years, with primary emphasis on appraisal of all types of commercial properties, large land
holdings and residential subdivisions at various densities.
• HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants •
PRIVATE CORPORATIONS
Aetna Life Insurance Company
Allstate Life Insurance Company
American Express
American General Life Company
AMRESCO
Apollo Produce Company
Artemis Capital Group
Bank of California
Bank of America
Bank One
Boston Capital
Boyle Engineering
Burnham Pacific
Cal Federal Bank
Cal Pacific Homes
Calif. Transportation Ventures (CTV)
Center Stone Capital Group
Chase Manhattan Bank
Chevron USA
Chiquita Banana Frupac
City Corp. Bank
City National Bank
Coast Fed Bank
Coldwell Banker
Collins Development
Cuyamaca Bank
Donald Bren Company
Eckel Development
Emerson International
Equitable Life Insurance Company
Equitable Real Estate
FCI Constructors
Federal Express
Fieldstone Development
First Interstate Bank
First Interstate Mortgage
First National Bank
Fresh Express International
G.E. Capital
General Electric Mortgage
General Motors
Glendale Federal Bank
GMAC Commercial Mortgage
Guarantee Federal
Goldman Sachs & Company
Home Investment and Loan
Imperial Bank Mutual Insurance
J.P.Morgan
John Hancock
LaSaUeBank
Keith Companies
Main America Capital
Massachusetts Mutual Life
McMillin Communities
Metropolitan Life Insurance Company
Midas International
Nationwide Mutual Insurance
Nations Bank
Nations Financial
Pacific Bell
Pacific Mutual Life Company
Pacific Southwest Mortgage
Pacific Homes
Pathfinder Mortgage
Peninsula Bank
Prebys Development
Prudential Insurance
RBF & Associates
Safeco Insurance of America
Safeway
ScrippsBank
SDG&E
Sempra Energy
Sickles Development
Southern California Bank
Stores, Alpert and Game
Sumitomo Metal Mining
Sun America
Sunroad Enterprises
Tokai Bank
Union Bank
Von's Companies
Washington Mutual Bank
Western Bank
Wells Fargo Bank
• HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers • Consultants-
GOVERNMENT AGENCIES
California Dept. of Transportation
Cathedral City Redevelopment Agency
Centre City Development Corp. (CCDC)
City of Carlsbad
CityofElCajon
CityofEncinitas
City of Escondido
Cityoflndio
City of National City
City ofOceanside
City of Palm Desert
CityofPoway
City of Rancho Mirage
City of San Diego
City of San Marcos
CityofSantee
City of Temecula
City of Vista
County of Riverside
County of San Diego
County of Los Angeles
Department of the Navy
Department of Fish and Game
Department of Justice
Gillespie Field Airport
F.D.I.C.
Immigration and Naturalization Service
Internal Revenue Service
L.A. County Beaches & Harbors
Metropolitan Transit District Board (MTDB)
Montgomery Field Airport
National City Comm. Devel. Comm. (CDC)
Otay Water District
Palomar Airport
Riverside County Transportation Comm.
San Diego Community College District
San Diego Unified Port District
San Diego Assoc. of Governments (SANDAG)
San Diego Unified School District
Southeast Econ. Development Corp. (SEDC)
U.S. Army Corp. of Engineers (Los Angeles/
Sacramento/Albuquerque)
Wildlife Conservation Board
US. Marshall
LAW FIRMS
Asaro, Keagy, Freeland & McKinley
Adams, Duque and Hazeltine
Best, Best and Krieger
Borton, Petrini, & Conron
Brobeck, Phleger and Harrison
Circuit, McKellogg, Kinney and Ross
Daley and Heft
Detisch and Christensen
Duke, Gerstel, Shearer and Bregante
Duckor, Spradling and Metzger
Gray, Gary, Ware, and Freiderich
Harris & Reedhead
Higgs, Fletcher and Mack
Hilding, Kipnis, Lyon, and Kelly
Hillyer and Irwin
Hovey, Kirby and Thornton
Hyde and Waters
Luce, Forward, Hamilton and Scripps
McDougal, Love, Eckis, and Grindle
Mclnnis, Fitzgerald, Rees, and Sharkey
Mower, Koeller and Nebeker
Nevenszehl, Conn, Davies, and Leff
Post, Kirby, Noonan and Sweat
Robins and Keehn
Sandier and Rosen
Schall, Boudreau and Gore
Sonnenchein, Nath and Rosenthal
Stephenson, Worley, Garrat, Schwartz,
Heidel, and Prairie
Thorsnes, Bartolotta, McGuire, and Padilla
Tuttle and Taylor
Weeks, Rathbone, Robertson and Johnson
• HENDRICKSON APPRAISAL COMPANY. INC. Real Estate Appraisers • Consultants •