Valentine Appraisal and Associates

Palmdale Commercial Property Appraisal

GSV — Tue, 29 Nov 2011 01:20:34 +0000

Gary Valentine commercial appraiser

I recently did a commercial real estate appraisal in Palmdale, CA on a property owned by a Palmdale commercial property owner who unfortunately had just lost his wife. His son had driven up from Brentwood (only 45 minutes away) to help him settle matters. Now, the son had phoned me and said that his lawyer advised him to call our firm, Valentine Appraisal & Associates because we are an experienced, certified and reasonable commercial real estate appraisal firm, and so I got hired for the job.

My Palmdale Commercial Property Appraisal Story

The son believed that his father’s Palmdale commercial property was worth around $2,950,000,based on a free online website service that you may have heard about (it rhymes with willow and begins with a Z). This free service has a reputation for being a somewhat reliable source for Palmdale commercial real estate appraisals. However, people involved in actually selling Palmdale real estate may not entirely agree with this assessment! In any case, this online service presented a real estate value that chimed a bell inside the son’s head. In fact, he told me that he believed the Palmdale commercial property’s value to be worth a cool 3 million dollars.

I met with him at the Palmdale commercial property to walk the grounds. The property was about 20 years old and located near the railroad tracks. Afterward,we sat at a coffee shop where he showed me some printed-out pages to substantiate his value. He seemed very confident that I would agree with his assessment mainly because he had recently tried to lower his Brentwood residential tax bill but found that the Los Angeles County Tax Assessor’s appraisal was very accurate. Then too,perhaps, the more we chatted, the more likely it seemed that the Palmdale commercial property would soon be put on the market for sale with the proceeds being used to provide for an assisted living residence for his father and three million dollars seemed to fit perfectly with those plans.

And just like appraising a residential home, everyone wants to get as much as possible for a property. But just because you feel that you need 3 million dollars to help your father live out the remainder of his life doesn’t make a Palmdale commercial property worth 3 million dollars!

But here is where commercial real estate appraising in Palmdale often differs from residential real estate appraising. I went back to my office and located the legal description of the Palmdale commercial property and checked out all known environmental hazards.

To make a long Palmdale commercial appraisal story short, the Palmdale commercial property was located on land that had a significant past environmental hazard due to a past dumping on the site – most likely by a former owner,past tenant or the nearby railroad – but something that a free estimating service would NOT take into account. After even further investigation, it turned out that the online estimating service used older values and older Palmdale commercial sales that could also be found in the Los Angeles County Tax Assessor’s records. I did my own research and located three newer, different sales within ten miles of the Palmdale subject property, all in the Antelope Valley. These sales had all closed within the past few months. Unfortunately, these sales reflected a much lower sales range, due to a recent market correction and to the disappointment of the owner and his son, the reduced value came in about $950,000 less than they hoped it would be – making the Palmdale commercial property value much closer to 2 million than 3 million.

Not really a happy story, but a truthful one. In any case, here are three tips you can take away from this Palmdale commercial appraisal story:

Palmdale Commercial Property Appraisal Tip #1:

The assessed value estimated by the Los Angeles County Tax Assessor may NOT always be a very good indicator of true market value.

Palmdale Commercial Property Appraisal Tip #2:

Environmental conditions along with other factors may greatly affect the value of your Palmdale commercial property.

Palmdale Commercial Property Appraisal Tip #3:

The value estimated by free online valuation services may not be a true indicator of market value.

Palmdale Commercial Property Appraisal Conclusion

All Palmdale commerical property owners should check the assessments estimated by the Los Angeles County tax assessor on every one of their Palmdale commercial properties because sometimes the county assessments are not in-line with the true market values and taxes may be possibly be reduced. However, the valuation for a particular commercial property is always individualized, and is often derived from sales or rental data in an ever-changing market.

For this reason, estimating market value of a Palmdale commercial property or any Antelope Valley commercial property should be left to commercial appraisers like me who are experienced, certified and offer reasonable rates. I will consider all of the detailed analysis required in your individualized Palmdale commerical appraisal.

Real Estate Appraiser, and Commercial Appraisal / Appraiser Coverage Areas: 93510 Agoura 91301 Agua Dulce, Saugus 91350 Airport Worldway; 90009 Alhambra 91801, 91803 Altadena 91001 Arcadia 91006 91007 ARCO Towers 90071 Arleta 91331 Artesia 90680 Athens 90044 Atwater Village 90039 Avalon 90704 Azusa 91702 Baldwin Hills 90008 Baldwin Park 91706 Bassett 91746 Bel Air Estates 90049. 90077 Bell 90201 Bell Gardens 90201 Bellflower 90706 Beverly Glen ; 90077, 90210 Beverly Hills 90210 – 90212 Biola Univ. (La Mirada) 90639 Boyle Heights 90033 Bradbury 91010 Brentwood 90049 91501 – 91502 / 91506 / 91523 (Glenoaks) 91504 Burbank (Woodbury Univ.) 91510 Cal State Dominguez Hills (Carson) 90747 Cal State Long Beach (Long Beach) 90840 Cal State Northridge 91330 Cal Tech (Pasadena) 91125 – 91126 Calabasas 91302/91372 Canoga Park 91303 – 91304 Canyon Country (Santa Clarita) 91351 Carson 90745 – 90746 Carson (CS Univ. Dominguez Hills) 90747 Carson/ Long Beach 90810Castaic 91310 / 91384 Castellemare 90272 Century City 90067 Cerritos 90701 Chatsworth 91311 Cheviot Hills 90064 Chinatown 90012 City Terrace 90063 Civic Center 90012 Claremont 91711 Commerce, 90040 Compton 90220 – 90222 Country Club Park 90019 Covina 91722 – 91724 Crenshaw 90008Cudahy 90201 Culver City 90230 / 90232 Cypress Park 90065 Diamond Bar 91765 / 91789 Dominguez Hills, Cal State (Carson) 90747 Downey 90240 – 90242 Downtown Los Angeles ;90013 – 90015 / 90017 / 90021 / 9002 Eagle Rock ;9004East Los Angeles 90022 East Los Angeles 90023 East Rancho Dominguez 90221 Echo Park ;900 Edwards AFB 93523 El Monte 91731 – 91732 El Segundo 9024 El Sereno 90032 Elizabeth Lake 93532 Encino 91316 / 91436 Federal Bldg (Lawndale) 90261 Firestone Boy Scout Res. 92621 Florence 90001 Gardena 90247 – 90249 Glassell Park 90065 Glendale 91201 – 91208 (La Crescenta) 91214 Glendale (Tropico) 91204 – (Verdugo City) 91046 Glendora 91740 – 91741Glenoaks (Burbank) 91504 Granada Hills 91344 Griffith Park 90027 Hacienda Heights (La Puente) 91745 Hancock Park 90004 / 90020 Harbor City 90710 Hawaiian Gardens 90716 Hawthorne (Holly Park) 90250 Hermosa Beach 90254 Hi Vista 93535 Hidden Hills 91302 Highland Park 90042 Hollywood 90028 / 90038 / 90068 Huntington Park 90255 Hyde Park 90043 Industry, 91744 / 91746 / 91789 Inglewood 90301 – 90303, 90305 Irwindale 91706 Jefferson Park 90018 Juniper Hills 93543 Koreatown 90005 La Canada-Flintridge 91011 La Crescenta (Glendale) 91214 La Habra Heights 90631 La Mirada 90638La Mirada (Biola Univ.) 90639 La Puente 91744/91746 Hacienda Heights) 91745 (Rowland Heights) 91748 La Verne 91750 Ladera Heights 90056 Lake Hughes 93532 Lake Los Angeles 93550 / 93591 Lake View Terrace 91342 Lakewood 90712 – 90713 / 90715 Lancaster 93534 – 93536 90260 Lawndale (Federal Bldg) 90261 LAX Area 90045 Leimert Par 90008 Lennox 90304 Littlerock 93543 Llano 93544 Lomita 90717 Long Beach 90802 – 90808, 90813 – 90815, 90822(Cal State Long Beach) 90840 (McDonnell Douglas) 90846 90805 (World Trade Ctr) 90831 – 90832 AIr Port Worldway 90009 ARCO Towers 90071 Arleta 91331 Atwater Village 90039 Bel Air Estates 90049 / 90077 Beverly Glen 90077 / 90210 Boyle Heights 90033 Brentwood 90049Cal State Northridge 91330 Canoga Park 91303 / 91304 Century City 90067 Chatsworth 91311 Cheviot Hills 90064 Chinatown 90012 Civic Center 90012 Country Club Park 90019 Crenshaw 90008 Cypress Park 90065 Downtown 90013 – 90015 / 90017 / 90021 / 90029 Eagle Rock 90041 East 90023 Echo Park 90026El Sereno 90032 Encino 91316 / 91436 Glassell Park 90065 Granada Hills 91344 Griffith Park 90027 Hancock Park 90004 / 90020 Harbor City 90710 Highland Park 90042 Hollywood 90028 / 90038 / 90068 Hyde Park ;90043 Jefferson Prk 90018 (Koreatown) 90005 (Ladera Heights) 90056 Lake View Terrace 91342(LAX Area) 90045 (Leimert Park) 90008(Los Feliz) 90027 (Mar Vista) 90066 Mid City) 90019 (Mission Hills) 91345 (Montecito Heights) 90031 (Mount Olympus) 90046 (Mt. Washington) 90065 (North Hills) 91343 North Hollywood 91601 – 91602 / 91604 – 91607 Northridge 91324-91325 Pacific Highlands 90272 Pacific Palisades 90272 Pacoima 91331 (Palms) 90034 Panorama City 91402 (Park La Brea) 90036 (Pico Heights) 90006 Playa del Rey) 90293 (Porter Ranch) 91326 (Rancho Park) 90064 Reseda 91335 San Pedro 90731-90732 (Sawtelle) 90022 (Shadow Hills) 91040 Sherman Oaks 91403 / 91423 (Silverlake) 90026 (South Central) 90001 / 90003 /90007 / 90011 / 90037 / 90047 / 90061 – 90062 (Studio City) 91604 Sun Valley 91352 (Sunland) 91040 (Sylmar) 91342 (Tarzana) 91356 (Terminal Island) 90731 (Toluca Lake) 91602 (Tujunga) 91042 (USC) 90089 (Valley Village) 91607 Van Nuys) 91401- 91403 / 91405 – 91406 / 91411 / 91423 (Venice) 90291 (Watts) 90002/90059 (West Adams) 90016 (West Beverly) 90048 (West Fairfax) 90035 West Hills) 91307 (West Los Angeles) 90025 (Westchester) 90045 (Westlake) 90057 Westwood 90024 Wilmington 90744 (Wilshire Blvd) 90010 (Winnetka) 91306(Woodland Hills) 91364 / 91367 Los Feliz 90027 Los Nietos 90606 Lynwood 90262 Malibu 90265 Manhattan Beach 90266 Mar Vista 90066 Marina del Rey 90292 Maywood 90270 McDonnell Douglas 90846 Mid City 90019 Mission Hills 91345 Monrovia 91016 Montebello 90640 Montecito Heights 90031 Monterey Hill 90032 Monterey Park 91754-91756 Montrose 91020 Mount Olympus 90046 Mount Wilson 91023 Mt. Washington 90065 Newhall (Santa Clarita) 91321 North Hills 91343North Hollywood 91601 – 91602 / 91604 – 91607 90805 Northridge 91324 – 91325 Cal State Univ. 91330 Norwalk 90650 Oak Park 91301 Pacific Highlands 9027290272 Pacoima 91331Palmdale 93550 – 93552 / 93591 Palms Palos Verdes Estates 90274 Panorama City 91402 Paramount 90723 Park La Brea 90036 Pasadena 91101 / 91103 – 91107 (Cal Tech) 91125 – 91126 Pearblossom 93553 Phillips Ranch 91766 Pico Heights 90006 Pico Rivera 90660 Playa del Rey 90293Playa Vista 90094 Pomona 91766-91768 Porter Ranch 91326 Quartz Hill 93536 Rancho Dominguez 90220 Rancho Palos Verdes 90275 / 90717 / 90732 Rancho Park 90064 Redondo Beach 90277 – 90278 Reseda 91335 Rolling Hills 90274 Rolling Hills Estates 90274 Rosemead 91770 Rosewood 90222 Rowland Heights (La Puente) 91748 San Dimas 91773 San Fernando 91340 San Gabriel 91775 – 91776 San Marino 91108 San Pedro (0731 – 90733 Santa Clarita (Canyon Country) 91351(Newhall) 91321 Valencia 91354 – 91355

Commercial Property Appraisals in 2011 and 2012

GSV — Sun, 23 Oct 2011 20:57:39 +0000

Commercial Appraisals in Today’s Real Estate Market

If you’re working on a commercial real estate deal in Los Angeles, you may have seen an offer collapse because a buyer can’t get a commercial mortgage loan. As a result, some commercial real estate agents are suggesting that a seller offer some variation of seller financing. Structured carefully, seller financing not only can make a commercial real estate transaction possible, but can also help a commercial property to close escrow quickly and with fewer problems. After all, who knows the commercial property better than the owner of the commercial property?

Benefits of Seller Financing for Commercial Property

Sellers of commercial property can often negotiate a more favorable interest rate than would be available on the commercial real estate market. The seller will not charge “points” for the loan – even though many sellers who utiltize seller financing require that a buyer pay for a commercial property appraisal. (Apparently this helps a seller for tax purposes.) And as a result of the “no-fee-approach” to securing a commercial property loan, the seller might be able to get a higher selling price – or offer the buyer a better deal. As mentioned, there may be some tax benefits if the commercial seller structures the commercial loan as an installment sale based on how recognition of the capital gain is timed and/or how the loss is realized.

Drawbacks of Seller Financing for Commercial Property

The downside of a seller financing a commercial property is the potential for the buyer to default. The risk becomes compounded when the commercial property is structured as an “All-inclusive” deed of trust or the seller grants a promissory note and secures it against the commercial or industrial property with a “wrap-around” loan. If the buyer defaults on his payment, the seller will likely default as well.

How to Minimize Risk

Use a Certified Commercial Appraisal

Request that a certified commercial real estate appraisal be done on the property just as a normal lender might required. The commercial appraisal may be paid by either buyer or seller. The reason for a certified appraisal is to help squash any potential future litigation a buyer claiming that they had “overpaid” for the property. A commercial appraisal also helps to makes buyers feel at ease that they have not paid too much for the commercial property..

Outsource Payment Collection

Sellers should consider outsourcing payment collection to a third party – such as a bank or other online collection service. This service can set rules for imposing late payments on the commercial property loan as well as any track tax payments when they are due. The buyer should also be allowed to monitor the collection site to assure that the payments are being made on the underlying commercial property debt.

Best Commercial Property Appraisals

These are challenging times in today’s credit markets – especially for commercial real estate, and getting the best commercial property appraisal is important as often comparable sales are difficult to find. As a result, some buyers may stop making loan payments feeling that they have overpaid for a property. But as the old adage goes, “whenever there is a great risk – there is also a great opportunity.” Just remember to protect your risks by having your legal and accounting team review any and all contracts prior to approval.

Gary Valentine is a partner with Valentine Appraisals and Associates in Los Angeles, CA. He can be reached at gsv@valentineappraisal.com or visit his website: http://www.valentineappraisal.com

Avigation Easement

GSV — Tue, 14 Jun 2011 00:20:07 +0000

Avigation Easement

An easement is the right a property owner grants to another for a specific use of their property. This right is acquired through purchase or condemnation. An avigation easement is the right a public or private agency acquires to use the airspace above a specific height for the flight of aircraft.

What is an Avigation Easement?

According to Baker v. Burbank-Glendale-Pasadena Airport Authority (1990) case, an “avigation easement” is required “when the noise, vibration, fumes, fuel particles and inconvenience caused by low-flying aircraft interfere with the use and enjoyment of the underlying property…”

What is the purpose of an Avigation Easement?

An airport might like to acquire an avigation easement over neighboring properties to prevent construction of buildings and towers, planting of trees, installation of lighting, or any other development that might interfere with takeoff and landing of aircraft. An Avigation Easement also protects against liability of any other nuisance such as noise, fumes, and vibration that may interfere with the use and enjoyment of the property.

Height restrictions with an Avigation Easement

In City of Los Angeles v. Japan Air Lines Co., LTD. (1974), the court stated that federal regulations require jets and other large aircraft to be operated at an altitude of at least 1500 feet above terrian, yet currently the County of Orange in Southern California has no height restriction.

Noise Levels with an Avigation Easement

In Baker v. Burbank-Glendale-Pasadena Airport Authority (1990) it was determined that noise levels should not exceed 65 decibels.

How to Obtain an Avigation Easement

Although the most common form of obtaining an avigation easement is through purchase or condemnation, avigation easements can be acquired by prescription as well, meaning the rights to the air space can be obtained for free if the air space has been used without complaint from adjacent land owners for at least 5 years in California (15 in Connecticut and 10 in the state of Washington).

Other Restrictions for an Avigation Easement

When an avigation easement is acquired, there are certain restrictions that can be put into place such as in Burbank (City of Burbank v. Lockheed Air Terminal, Inc.) a local ordinance prohibits takeoffs between 11 p.m. and 7 a.m.

Appraising an Avigation Easement

When appraising an avigation easement, compensation is paid to the land owner for rights to the air space. Compensation for an Avigation Easement is based on the fair market value of the property “before” the easement and “after” the avigation easement. The difference between the “before” and “after” value of the property is the value of the avigation easement.

Valentine Appraisal and Associates has appraised more than 10 avigation easements in recent years. Please feel free to contact us at (661) 288-0198 as we are experts in avigation easements.

Pipeline Easements

GSV — Thu, 02 Jun 2011 00:37:48 +0000

Pipeline Easements

Pipelines transport products from one point to another. Pipeline title is usually

acquired through an easement. According to Websters, an easement “is the right a property owner grants to another for the use of their property”.

Therefore, a pipeline easement is the right to construct, operate, and maintain a pipeline over the land of others within prescribed geographical limits.

How to Appraise a Pipeline involving a Pipeline Easement

There are two different ways to appraise a pipeline depending on if it is part of a transportation corridor or within a conforming parcel.

Reviewing published articles and books, interviewing buyers and sellers of property that is encumbered by pipelines, and sending out letters to property owners are all methods that can help when appraising pipeline.

No Acceptable Standard Width for a Pipeline Easement

There is no acceptable standard width for a pipeline easement. It is usually determined through negotiations. Initially, railroads arrived at the easement width by rounding up the diameter of the pipe to the nearest foot, then adding two feet on both sides as a buffer to ensure the pipeline’s integrity and security. But, railroads soon realized that pipeline users were getting free access onto their corridors to service and maintain pipelines, so they reasoned that since automobile lanes on public roads are typically 11 to 12-feet wide, and the width of a standard truck is 8 feet 2 ½ inches, a 10 to 12-foot width requirement to access pipelines seemed reasonable.

Pipeline Easements and Severance Damage

Once the width of the pipeline has been negotiated, and the value has been determined through research and determining the value of surrounding land, severance damages can be analyzed. Severance damages are those damages to the remainder property that are compensable. Severance damages are seldom found for new pipelines in transportation corridors because owners of corridors do not let pipeline companies install their pipeline if it could diminish the value of the remaining portion of the corridor and/or pipeline easements.

Through advance research and preparation, conducting an in-depth search for best comparable data available, and conducting a thorough analysis, your appraisal of pipeline will be supportive and reliable. You can count on us to have your assignment done on time, too.

Valentine Appraisal and Associates Has Completed these Pipeline Appraisal assignments:

• Two Existing Pipelines at the Dominguez Channel in Carson, California

• An Existing Pipeline Traverse Crossing at the BNSF Transportation Corridor in Hesperia, CA

Our Service Area Cities
Real Estate Appraiser, and Commercial Appraisal / Appraiser Coverage Areas: 93510 Agoura 91301 Agua Dulce, Saugus 91350 Airport Worldway; 90009 Alhambra 91801, 91803 Altadena 91001 Arcadia 91006 91007 ARCO Towers 90071 Arleta 91331 Artesia 90680 Athens 90044 Atwater Village 90039 Avalon 90704 Azusa 91702 Baldwin Hills 90008 Baldwin Park 91706 Bassett 91746 Bel Air Estates 90049. 90077 Bell 90201 Bell Gardens 90201 Bellflower 90706 Beverly Glen ; 90077, 90210 Beverly Hills 90210 – 90212 Biola Univ. (La Mirada) 90639 Boyle Heights 90033 Bradbury 91010 Brentwood 90049 91501 – 91502 / 91506 / 91523 (Glenoaks) 91504 Burbank (Woodbury Univ.) 91510 Cal State Dominguez Hills (Carson) 90747 Cal State Long Beach (Long Beach) 90840 Cal State Northridge 91330 Cal Tech (Pasadena) 91125 – 91126 Calabasas 91302/91372 Canoga Park 91303 – 91304 Canyon Country (Santa Clarita) 91351 Carson 90745 – 90746 Carson (CS Univ. Dominguez Hills) 90747 Carson/ Long Beach 90810Castaic 91310 / 91384 Castellemare 90272 Century City 90067 Cerritos 90701 Chatsworth 91311 Cheviot Hills 90064 Chinatown 90012 City Terrace 90063 Civic Center 90012 Claremont 91711 Commerce, 90040 Compton 90220 – 90222 Country Club Park 90019 Covina 91722 – 91724 Crenshaw 90008Cudahy 90201 Culver City 90230 / 90232 Cypress Park 90065 Diamond Bar 91765 / 91789 Dominguez Hills, Cal State (Carson) 90747 Downey 90240 – 90242 Downtown Los Angeles ;90013 – 90015 / 90017 / 90021 / 9002 Eagle Rock ;9004East Los Angeles 90022 East Los Angeles 90023 East Rancho Dominguez 90221 Echo Park ;900 Edwards AFB 93523 El Monte 91731 – 91732 El Segundo 9024 El Sereno 90032 Elizabeth Lake 93532 Encino 91316 / 91436 Federal Bldg (Lawndale) 90261 Firestone Boy Scout Res. 92621 Florence 90001 Gardena 90247 – 90249 Glassell Park 90065 Glendale 91201 – 91208 (La Crescenta) 91214 Glendale (Tropico) 91204 – (Verdugo City) 91046 Glendora 91740 – 91741Glenoaks (Burbank) 91504 Granada Hills 91344 Griffith Park 90027 Hacienda Heights (La Puente) 91745 Hancock Park 90004 / 90020 Harbor City 90710 Hawaiian Gardens 90716 Hawthorne (Holly Park) 90250 Hermosa Beach 90254 Hi Vista 93535 Hidden Hills 91302 Highland Park 90042 Hollywood 90028 / 90038 / 90068 Huntington Park 90255 Hyde Park 90043 Industry, 91744 / 91746 / 91789 Inglewood 90301 – 90303, 90305 Irwindale 91706 Jefferson Park 90018 Juniper Hills 93543 Koreatown 90005 La Canada-Flintridge 91011 La Crescenta (Glendale) 91214 La Habra Heights 90631 La Mirada 90638La Mirada (Biola Univ.) 90639 La Puente 91744/91746 Hacienda Heights) 91745 (Rowland Heights) 91748 La Verne 91750 Ladera Heights 90056 Lake Hughes 93532 Lake Los Angeles 93550 / 93591 Lake View Terrace 91342 Lakewood 90712 – 90713 / 90715 Lancaster 93534 – 93536 90260 Lawndale (Federal Bldg) 90261 LAX Area 90045 Leimert Par 90008 Lennox 90304 Littlerock 93543 Llano 93544 Lomita 90717 Long Beach 90802 – 90808, 90813 – 90815, 90822(Cal State Long Beach) 90840 (McDonnell Douglas) 90846 90805 (World Trade Ctr) 90831 – 90832 AIr Port Worldway 90009 ARCO Towers 90071 Arleta 91331 Atwater Village 90039 Bel Air Estates 90049 / 90077 Beverly Glen 90077 / 90210 Boyle Heights 90033 Brentwood 90049Cal State Northridge 91330 Canoga Park 91303 / 91304 Century City 90067 Chatsworth 91311 Cheviot Hills 90064 Chinatown 90012 Civic Center 90012 Country Club Park 90019 Crenshaw 90008 Cypress Park 90065 Downtown 90013 – 90015 / 90017 / 90021 / 90029 Eagle Rock 90041 East 90023 Echo Park 90026El Sereno 90032 Encino 91316 / 91436 Glassell Park 90065 Granada Hills 91344 Griffith Park 90027 Hancock Park 90004 / 90020 Harbor City 90710 Highland Park 90042 Hollywood 90028 / 90038 / 90068 Hyde Park ;90043 Jefferson Prk 90018 (Koreatown) 90005 (Ladera Heights) 90056 Lake View Terrace 91342(LAX Area) 90045 (Leimert Park) 90008(Los Feliz) 90027 (Mar Vista) 90066 Mid City) 90019 (Mission Hills) 91345 (Montecito Heights) 90031 (Mount Olympus) 90046 (Mt. Washington) 90065 (North Hills) 91343 North Hollywood 91601 – 91602 / 91604 – 91607 Northridge 91324-91325 Pacific Highlands 90272 Pacific Palisades 90272 Pacoima 91331 (Palms) 90034 Panorama City 91402 (Park La Brea) 90036 (Pico Heights) 90006 Playa del Rey) 90293 (Porter Ranch) 91326 (Rancho Park) 90064 Reseda 91335 San Pedro 90731-90732 (Sawtelle) 90022 (Shadow Hills) 91040 Sherman Oaks 91403 / 91423 (Silverlake) 90026 (South Central) 90001 / 90003 /90007 / 90011 / 90037 / 90047 / 90061 – 90062 (Studio City) 91604 Sun Valley 91352 (Sunland) 91040 (Sylmar) 91342 (Tarzana) 91356 (Terminal Island) 90731 (Toluca Lake) 91602 (Tujunga) 91042 (USC) 90089 (Valley Village) 91607 Van Nuys) 91401- 91403 / 91405 – 91406 / 91411 / 91423 (Venice) 90291 (Watts) 90002/90059 (West Adams) 90016 (West Beverly) 90048 (West Fairfax) 90035 West Hills) 91307 (West Los Angeles) 90025 (Westchester) 90045 (Westlake) 90057 Westwood 90024 Wilmington 90744 (Wilshire Blvd) 90010 (Winnetka) 91306(Woodland Hills) 91364 / 91367 Los Feliz 90027 Los Nietos 90606 Lynwood 90262 Malibu 90265 Manhattan Beach 90266 Mar Vista 90066 Marina del Rey 90292 Maywood 90270 McDonnell Douglas 90846 Mid City 90019 Mission Hills 91345 Monrovia 91016 Montebello 90640 Montecito Heights 90031 Monterey Hill 90032 Monterey Park 91754-91756 Montrose 91020 Mount Olympus 90046 Mount Wilson 91023 Mt. Washington 90065 Newhall (Santa Clarita) 91321 North Hills 91343North Hollywood 91601 – 91602 / 91604 – 91607 90805 Northridge 91324 – 91325 Cal State Univ. 91330 Norwalk 90650 Oak Park 91301 Pacific Highlands 9027290272 Pacoima 91331Palmdale 93550 – 93552 / 93591 Palms Palos Verdes Estates 90274 Panorama City 91402 Paramount 90723 Park La Brea 90036 Pasadena 91101 / 91103 – 91107 (Cal Tech) 91125 – 91126 Pearblossom 93553 Phillips Ranch 91766 Pico Heights 90006 Pico Rivera 90660 Playa del Rey 90293Playa Vista 90094 Pomona 91766-91768 Porter Ranch 91326 Quartz Hill 93536 Rancho Dominguez 90220 Rancho Palos Verdes 90275 / 90717 / 90732 Rancho Park 90064 Redondo Beach 90277 – 90278 Reseda 91335 Rolling Hills 90274 Rolling Hills Estates 90274 Rosemead 91770 Rosewood 90222 Rowland Heights (La Puente) 91748 San Dimas 91773 San Fernando 91340 San Gabriel 91775 – 91776 San Marino 91108 San Pedro (0731 – 90733 Santa Clarita (Canyon Country) 91351(Newhall) 91321 Valencia 91354 – 91355

Transportation Corridors

GSV — Wed, 18 May 2011 00:42:33 +0000

Transportation Corridors

A transportation corridor is a long, narrow strip of property that includes surface, subsurface, and air rights. It often connects two or more areas restricted to surface, subsurface, and air rights, for the deportation of goods and passengers.

Some examples of transportation corridors are: railroad and mass transit lines, public and private roads, pipelines, including oil, gas, water, and sewer lines, fiber optics, pedestrians pathways, aqueducts and canals, television cables, and electrical transmission lines.

How to Appraise a Transportation Corridor

There are different methods that can be used when appraising a transportation corridor, including Replacement Cost New Less Depreciation (RCNLD), Corridor Value (CV), Sales Comparison Approach, Across the Fence Value (ATF), Net Liquidation Value (NLV), and Going Concern Value (GCV). [1]

Replacement Cost New Less Depreciation (RCNLD) is based on the principle of substitution and is more commonly referred to as the “cost of assemblage.” It includes the cost of the part taken, appraisal costs, negations costs, title costs, grading costs, project management costs, and the acquisition and demolition of buildings. According to Dolman and Seymour, this cost can range from two to six times the Across the Fence (ATF) value. The Court of Appeals in People v. Southern Pacific Transportation Company (1978) held that “the cost of reproduction is an acceptable approach to a determination of just compensation.”

When several similar commensurate commodities, goods or services are available, the one with the lowest price attracts the greatest demand and the widest distribution. Corridor Value (CV) is determined by multiplying the ATF value and the enhancement factor. The enhancement factor is arrived at by dividing the sales price of a corridor by its ATF value.

How to Appraise a Transportation Corridor Using the Sales Comparison Approach

Sales Comparison Approach is applicable when there are several sales or comparables that have sold in the subject’s market area. This approach is seldom used since there are relatively few transactions of transportation corridors that sell in the same market area.

The underlying assumption in the Across the Fence (ATF) method is that land in the transportation corridor is equal to the value of adjoining lands. When using this method, the property is divided down the centerline and each half is joined to the adjacent parcel along with the adjacent property’s highest and best use and unit value. The ATF is the sales comparison approach modified to the degree that shape, size, topography, and access are disregarded. The State Board of Equalization, railroad companies, utility companies and public agencies use this method more than others when assessing value of operating and non-operating property, ground rent, and public and private streets.

How to Appraise a Transportation Corridor Using The Net Liquidation Value

The Net Liquidation Value (NLV) is the present value of the net amount the owner will realize if the corridor is sold piecemeal over a reasonable time period. Net proceeds are determined after administrative, marketing, real estate taxes, and cleanup costs are deducted from the gross revenues.

The Going Concern Value (GCV) is the expected future profits discounted to today’s value at a rate reflecting the quantity, quality, and durability of the income.

Appraising transportation corridors is a challenging endeavor, but can be accomplished by using one or more of the methods outlined above.

Valentine Appraisal and Associates Has Successfully Completed Several Transportation Corridor assignments:

Lower Franklin Reservoir Property in City of Los Angeles, CA
An Existing Pipeline Traverse Crossing at the BNSF Transportation Corridor in Hesperia, CA
1.9 Mile 50-foot wide Right of Way Corridor in Riverside County, CA
80.48 Mile Transportation Corridor in Siskiyou and Shasta Counties, CA

Palmdale Commercial Building Appraisals

Avigation Easements

Pipeline Easements

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[1] Valentine, Gary S. “Appraising a Transportation Corridor.” Right of Way Nov-Dec. 1998: 6-10.

Our Service Area Cities
Real Estate Appraiser, and Commercial Appraisal / Appraiser Coverage Areas: 93510 Agoura 91301 Agua Dulce, Saugus
91350 Airport Worldway; 90009 Alhambra 91801, 91803 Altadena 91001 Arcadia 91006 91007 ARCO Towers 90071 Arleta
91331 Artesia 90680 Athens 90044 Atwater Village 90039 Avalon 90704 Azusa 91702 Baldwin Hills 90008 Baldwin Park
91706 Bassett 91746 Bel Air Estates 90049. 90077 Bell 90201 Bell Gardens 90201 Bellflower 90706 Beverly Glen ;
90077, 90210 Beverly Hills 90210 – 90212 Biola Univ. (La Mirada) 90639 Boyle Heights 90033 Bradbury 91010 Brentwood
90049 91501 – 91502 / 91506 / 91523 (Glenoaks) 91504 Burbank (Woodbury Univ.) 91510 Cal State Dominguez Hills
(Carson) 90747 Cal State Long Beach (Long Beach) 90840 Cal State Northridge 91330 Cal Tech (Pasadena) 91125 – 91126
Calabasas 91302/91372 Canoga Park 91303 – 91304 Canyon Country (Santa Clarita) 91351 Carson 90745 – 90746 Carson
(CS Univ. Dominguez Hills) 90747 Carson/ Long Beach 90810Castaic 91310 / 91384 Castellemare 90272 Century City
90067 Cerritos 90701 Chatsworth 91311 Cheviot Hills 90064 Chinatown 90012 City Terrace 90063 Civic Center 90012
Claremont 91711 Commerce, 90040 Compton 90220 – 90222 Country Club Park 90019 Covina 91722 – 91724 Crenshaw
90008Cudahy 90201 Culver City 90230 / 90232 Cypress Park 90065 Diamond Bar 91765 / 91789 Dominguez Hills, Cal State
(Carson) 90747 Downey 90240 – 90242 Downtown Los Angeles ;90013 – 90015 / 90017 / 90021 / 9002 Eagle Rock ;9004East
Los Angeles 90022 East Los Angeles 90023 East Rancho Dominguez 90221 Echo Park ;900 Edwards AFB 93523 El Monte
91731 – 91732 El Segundo 9024 El Sereno 90032 Elizabeth Lake 93532 Encino 91316 / 91436 Federal Bldg (Lawndale)
90261 Firestone Boy Scout Res. 92621 Florence 90001 Gardena 90247 – 90249 Glassell Park 90065 Glendale 91201 –
91208 (La Crescenta) 91214 Glendale (Tropico) 91204 – (Verdugo City) 91046 Glendora 91740 – 91741Glenoaks (Burbank)
91504 Granada Hills 91344 Griffith Park 90027 Hacienda Heights (La Puente) 91745 Hancock Park 90004 / 90020 Harbor
City 90710 Hawaiian Gardens 90716 Hawthorne (Holly Park) 90250 Hermosa Beach 90254 Hi Vista 93535 Hidden Hills
91302 Highland Park 90042 Hollywood 90028 / 90038 / 90068 Huntington Park 90255 Hyde Park 90043 Industry, 91744 /
91746 / 91789 Inglewood 90301 – 90303, 90305 Irwindale 91706 Jefferson Park 90018 Juniper Hills 93543 Koreatown
90005 La Canada-Flintridge 91011 La Crescenta (Glendale) 91214 La Habra Heights 90631 La Mirada 90638La Mirada
(Biola Univ.) 90639 La Puente 91744/91746 Hacienda Heights) 91745 (Rowland Heights) 91748 La Verne 91750 Ladera
Heights 90056 Lake Hughes 93532 Lake Los Angeles 93550 / 93591 Lake View Terrace 91342 Lakewood 90712 – 90713 /
90715 Lancaster 93534 – 93536 90260 Lawndale (Federal Bldg) 90261 LAX Area 90045 Leimert Par 90008 Lennox 90304
Littlerock 93543 Llano 93544 Lomita 90717 Long Beach 90802 – 90808, 90813 – 90815, 90822(Cal State Long Beach)
90840 (McDonnell Douglas) 90846 90805 (World Trade Ctr) 90831 – 90832 AIr Port Worldway 90009 ARCO Towers 90071
Arleta 91331 Atwater Village 90039 Bel Air Estates 90049 / 90077 Beverly Glen 90077 / 90210 Boyle Heights 90033
Brentwood 90049Cal State Northridge 91330 Canoga Park 91303 / 91304 Century City 90067 Chatsworth 91311 Cheviot
Hills 90064 Chinatown 90012 Civic Center 90012 Country Club Park 90019 Crenshaw 90008 Cypress Park 90065 Downtown
90013 – 90015 / 90017 / 90021 / 90029 Eagle Rock 90041 East 90023 Echo Park 90026El Sereno 90032 Encino 91316 /
91436 Glassell Park 90065 Granada Hills 91344 Griffith Park 90027 Hancock Park 90004 / 90020 Harbor City 90710
Highland Park 90042 Hollywood 90028 / 90038 / 90068 Hyde Park ;90043 Jefferson Prk 90018 (Koreatown) 90005 (Ladera
Heights) 90056 Lake View Terrace 91342(LAX Area) 90045 (Leimert Park) 90008(Los Feliz) 90027 (Mar Vista) 90066 Mid
City) 90019 (Mission Hills) 91345 (Montecito Heights) 90031 (Mount Olympus) 90046 (Mt. Washington) 90065 (North
Hills) 91343 North Hollywood 91601 – 91602 / 91604 – 91607 Northridge 91324-91325 Pacific Highlands 90272 Pacific
Palisades 90272 Pacoima 91331 (Palms) 90034 Panorama City 91402 (Park La Brea) 90036 (Pico Heights) 90006 Playa del
Rey) 90293 (Porter Ranch) 91326 (Rancho Park) 90064 Reseda 91335 San Pedro 90731-90732 (Sawtelle) 90022 (Shadow
Hills) 91040 Sherman Oaks 91403 / 91423 (Silverlake) 90026 (South Central) 90001 / 90003 /90007 / 90011 / 90037 /
90047 / 90061 – 90062 (Studio City) 91604 Sun Valley 91352 (Sunland) 91040 (Sylmar) 91342 (Tarzana) 91356 (Terminal
Island) 90731 (Toluca Lake) 91602 (Tujunga) 91042 (USC) 90089 (Valley Village) 91607 Van Nuys) 91401- 91403 / 91405
– 91406 / 91411 / 91423 (Venice) 90291 (Watts) 90002/90059 (West Adams) 90016 (West Beverly) 90048 (West Fairfax)
90035 West Hills) 91307 (West Los Angeles) 90025 (Westchester) 90045 (Westlake) 90057 Westwood 90024 Wilmington
90744 (Wilshire Blvd) 90010 (Winnetka) 91306(Woodland Hills) 91364 / 91367 Los Feliz 90027 Los Nietos 90606 Lynwood
90262 Malibu 90265 Manhattan Beach 90266 Mar Vista 90066 Marina del Rey 90292 Maywood 90270 McDonnell Douglas 90846
Mid City 90019 Mission Hills 91345 Monrovia 91016 Montebello 90640 Montecito Heights 90031 Monterey Hill 90032
Monterey Park 91754-91756 Montrose 91020 Mount Olympus 90046 Mount Wilson 91023 Mt. Washington 90065 Newhall (Santa
Clarita) 91321 North Hills 91343North Hollywood 91601 – 91602 / 91604 – 91607 90805 Northridge 91324 – 91325 Cal
State Univ. 91330 Norwalk 90650 Oak Park 91301 Pacific Highlands 9027290272 Pacoima 91331Palmdale 93550 – 93552 /
93591 Palms Palos Verdes Estates 90274 Panorama City 91402 Paramount 90723 Park La Brea 90036 Pasadena 91101 /
91103 – 91107 (Cal Tech) 91125 – 91126 Pearblossom 93553 Phillips Ranch 91766 Pico Heights 90006 Pico Rivera 90660
Playa del Rey 90293Playa Vista 90094 Pomona 91766-91768 Porter Ranch 91326 Quartz Hill 93536 Rancho Dominguez 90220
Rancho Palos Verdes 90275 / 90717 / 90732 Rancho Park 90064 Redondo Beach 90277 – 90278 Reseda 91335 Rolling Hills
90274 Rolling Hills Estates 90274 Rosemead 91770 Rosewood 90222 Rowland Heights (La Puente) 91748 San Dimas 91773
San Fernando 91340 San Gabriel 91775 – 91776 San Marino 91108 San Pedro (0731 – 90733 Santa Clarita (Canyon
Country) 91351(Newhall) 91321 Valencia 91354 – 91355

Rails to Trails

GSV — Wed, 18 May 2011 00:39:19 +0000

In 1916 railroad transportation was at its peak. At that time, railroads were our main source of transportation. They hauled food to market, moved coal to heat cities, and carried settlers to the Western frontier. Railroads also helped win World War II. But, in the 1970’s other modes of transportation–like trucking–took over. Because of this, many railroads went bankrupt and carriers began abandoning rail lines at an alarming rate. Because rail corridors have gentle grades and often follow rivers and scenic landscapes, the possibility of creating trails from rail lines for recreation and nonmotorized transportation became an opportunity and a solution. In 1976, Congress attempted to address the abandonment of rail lines by issuing the Railroad Revitalizaion and Regulatory Reform Act (4-R Act). This law deferred the disposition of railroad rights-of-way for 180 days to allow for possible transfers for public use, including rails-to-trails conversions. The biggest challenge came from nearby landowners, many of whom believed that they were entitled to repossess the land when it was abandoned. In 1983, Section 8(d) of the National Trails System Act attempted to address this issue. This law allows railroad carriers to free themselves of responsibility for unprofitable rail lines by transferring them (by sale, donation, or lease) to qualified private or public agencies for interim use as trails until they are needed again for rail service. This process is called “rail-banking.” An interested trail manager (may be a public agency or qualified organization) can request a railbanking order within 30 days after the railroad files an application for an abandonment. Aggrieviated landowners can file a “takings” claim under the federal Tucker Act. This requires the government to pay “just compensation” if it “takes” private property for a public use. But, the Supreme Court explained in the 1990 Preseault case (which challenged the federal railbanking law and resulted in eight reported court decisions in the state and federal courts) that “only some rail-to-trail conversions will amount to taking.” The law on rails-to-trails conversions is still evolving, particularly in the “takings” litigation, but the Rails-to-Trails Conservancy has materials and resources on its website that can help educate and assist in various legal, political, and communication issues that may arise during the course of a rails-to-trails conversion.

Valentine Appraisal and Associates sample Rails-to-Trails assignments:

80.48 Mile Transportation Corridor in Siskiyou and Shasta Counties, California
2.7 mile Transportation Corridor in Whittier, California

Market Trends

GSV — Wed, 27 Apr 2011 17:07:11 +0000

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Business Value

GSV — Wed, 20 Apr 2011 23:27:23 +0000

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Asset Allocation Valuation

GSV — Tue, 19 Apr 2011 16:14:29 +0000

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Finance Appraisals

GSV — Tue, 19 Apr 2011 16:13:50 +0000

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