California Commercial Property Type Office
admin | Nov 15, 2009 | Comments 0
Below is an actual Assessment Appeals Board Case presented in Los Angeles County in March of 2000 for a 1998 appeal. Certain information has been removed.
Appeal #98-xxxxx
March 14, 2000
APN: 2163-xxx-xxx
ADDRESS: xxx Ventura Blvd.
CITY: Tarzana
USE: Stores & Offices (Strip Mall)
SUBJECT
The Subject consists of a four unit strip mall located on Ventura Blvd. in Tarzana. Built in 1985 it has 11,720 square feet on a single story.
The site upon which the property is situated is ill-suited for this type of property. Measuring 75′ X 182′ it has only 75 feet of frontage on the street and is deep back off the street. This functional obsolescence has made renting the property difficult. In 1997 and most of 1998 there was only one unit rented for $1,750 per month. ‘97 income was only $21,000 and ‘98 was 27,034.
COMPARABLE PROPERTY SALES
The following sales have been recorded in the time period of this valuation:
Comp #1
This comparable sold in October of 1996 for $550,000 and is located approximately 5 miles….
Comp #2
Located approximately 1 mile from the subject this comp sold in February of 1998 for $528,000 and was ….
Comp #3
This comparable sold in September of 1996 at a Trustees Sale and is listed solely for….
ADJUSTMENTS
ADJUSTMENT COMP#1 COMP#2 COMP#3
Site -25% -25% -25%
Size -20% -25%
Total Adjustments -25% -45% -50%
INCOME
The subject had ‘97 income of $21,000 and ‘98 was 27,034. Using even the higher income and actual expenses of $7139 yields capitalized income of only $19,895…..
RECONCILIATION
As shown above values in the subject area after adjustment range from $59 to $65 per square foot. We have chosen $60 per square foot as fair market value as of the 1/98 lien date.
11,720 Square feet X $60 = $703,200
Market Approach $735,000
Income Approach $675,000
1/98 Fair Market Value = $700,000
Filed Under: Property Type
