RESUB1 BLD2024-0598+Letter+8.7.2024_2.56.57_PM+4427328■ ------------
Reviewed by
City of Edmonds ;
Planning Division '
---------------
COMPRO CONSULTANTS, LLC
Commercial Property Appraisers
LETTER OF TRANSMITTAL
Report Date: July 25, 2024
FTW File No. C24-000234
ComPro No. 24-535
Matt Marek, Director Retail
Graphite Design Group, LLC
1809 71h Ave., Ste. 700
Seattle, WA 98101
BLD2024-0598
Re: Actual Cash Value of a Retail -Restaurant (Starbucks Chain) Property located at:
9801 Edmonds Way, Edmonds, WA 98020
Dear Mr. Merek:
RESUB
CITY OF EDMONDS
DEVELOPMENT SERVICES
DEPARTMENT
At the request of the client, I (we) have provided an Actual Cash Value estimate of the subject structure.
The value indication "As Is", reflects the state of the property in the condition observed upon inspection.
This is also how the site physically and legally exists without hypothetical conditions, special assumptions,
or qualifications as of the effective date the appraisal is prepared.
The purpose of this assignment is to provide an estimate of the Actual Cash Value of the building
improvements only, to assist the client with satisfying the National Flood Insurance Program's
requirements for Substantial Improvement/Substantial Damage to a structure. This report is not intended
for any other use. The intended users of this report include the Client, as well as FEMA, NFIP and their
associated entities.
According to the NFIP, Actual Cash Value (ACV) is the cost to replace a building on the same parcel with a
new building of like -kind and quality, minus depreciation due to age, use, and neglect. ACV does not
consider loss in value simply due to outmoded design or location factors. The concept of ACV is used in
both the insurance industry and the construction industry. In most situations, ACV is a reasonable
approximation of market value (of the improvements).
In the As Is condition the subject's building improvements consist of a detached Class D (Wood -framed),
retail chain (Starbucks) store, originally constructed in 2015. The property is constructed on a retail pad in
a neighborhood center anchored by PCC Markets and Walgreens.
The final opinion of the Actual Cash Value of the improvements, as of the effective date, July 21, 2024, is
displayed below:
Reconciliationof Actual Cash Value
Replacement Cost New $1,111,013
Physical Depreciation $144,432
Actual Cash Value $966,S81
Your attention is directed to the following pages for the details and supplement documents used to
derive the conclusions below. If you have any questions or require additional information at this time,
please do not hesitate to contact us. Thank you for the opportunity to be of service.
r
Jeffrey B. Totzek,
WA State General Certified Appraiser
Certification No. 1102511
206.914.1652
Jeff@ FTWappraisal.com
2
TABLE OF CONTENTS
Letterof Transmittal.....................................................................................................
1
Tableof Contents........................................................................................................
3
Certification..................................................................................................................
4
Summary of Salient Facts............................................................................................
5
Scopeof Work.............................................................................................................
6
Description of improvements.......................................................................................
7
CountyRecords Sketch...............................................................................................
8
SubjectAerial..............................................................................................................
9
Replacement Vs. Reproduction Costs.......................................................................
10
ImprovementCost Matrix...........................................................................................
10
Direct/Hard Replacement Costs................................................................................
10
Other Indirect/Soft Costs...........................................................................................
10
EntrepreneurialIncentive...........................................................................................
11
Depreciation..............................................................................................................
11
Reconciliation of Actual Cash Value..........................................................................
14
Subject Photos and Supplements..............................................................................
16
Statement of Assumptions and Limiting Conditions ...................................................
19
3
CERTIFICATION
I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct.
• The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
• 1 have no present or prospective interest in the property that is the subject of this report and no personal
interest with respect to the parties involved.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with
this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation for completing this assignment is not contingent upon the development or reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of the value opinion,
the attainment of a stipulated result, orthe occurrence of a subsequent event directly related to the intended
use of this appraisal.
• The reported analyses, opinions and conclusions were developed, and this report has been prepared, in
conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal
Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
• As of the date of this report, I (Jeffrey Totzek) have completed the Standards and Ethics Education
Requirements for Candidates of the Appraisal Institute
• 1 personally and without assistance assembled all the data used in preparing the submitted appraisal report,
analyzed the data, formed the conclusions, and prepared the appraisal report.
• 1 have performed no services, as an appraiser or in any other capacity, regarding the property that is the
subject of this report within the three-year period immediately preceding acceptance of this assignment.
• I, Jeffrey B Totzek (WA State Certification #1102511) made a personal inspection of the subject property,
performed research, analysis and wrote the report contained herein.
Certification as of the reporting date, July 25, 2024
Jeffrey B Totzek
WA State General Certified Appraiser
Certification No. 1102511
Phone: 206-914-1652
E-Mail: Jeff@FTWappraisal.com
E
SUMMARY OF SALIENT FACTS
Effective Date of Value: July 21, 2024, "As Is"
Reporting Date: July 25, 2024
Property Major Type
Retail (Built to Suite. Starbucks Coffee Chain Store)
Address
9801 Edmonds Way
City
Edmonds
County
Snohomish
State
WA
Zip
98020
Tax ID
2703360011-8400
Legal Description
SECTION 36 TOWNSHIP 27 RANGE 03 QUARTER NE - LOT 2 PER
CITY OF ED SP PLN201100780 REC UND AFPJ 201312205001 BEING
PTN S1/2 NW1/4 NW1/4 NE1/4 SD SEC 36 & VAC 98TH AVE W LY
NLY OF ED WAY
Owner
L & E KESSLER FAMILY TRUST
Land SF
19.166
Acres
044
Gross Building Area (SF)
2.072
Year Built
2015
R
SCOPE OF WORK
The appraiser made a personal inspection of the subject property on July 21, 2024. The appraiser
examined the interior and exterior of the subject improvements. Due to the business being occupied on
operating at the time of inspection, no interior photos of the building were taken. In determining the
Actual Cash Value, first the replacement cost new for the structure is developed using Marshall Valuation
Service Cost Manual, July 2024 edition. Once the cost new is determined, an estimate of the physical
depreciation of the structure is estimated and the Actual Cash Value is concluded.
Property Identification
The property has been identified by legal description address. and county parcel number
Inspection
The appraiser made a complete exterior and interior inspection of the subject property.
Information Sources
Information about the subject property was gathered from a variety of sources. including public records
(assessor and recorder's office records). City and/or County Planning & Development Services Comparable
sales were located from a variety of sources including the Northwest Multiple Listing Service. the Commercial
Broker's Association. Costar, and through leads provided by local market participants (verified through deeds
on file the respective County). Where possible, comparable sales were further verified with parties related to
the transactions
Purpose
The purpose of this assignment is to provide an estimate of the Actual Cash Value of the building
improvements only.
Intended Use
The intended use of this report is to order to assist the client with satisfying the National Flood Insurance
Programs requirements for Substantial Improvement/Substantial Damage to a structure This report is not
intended for any other use
Intended User(s)
The intended users of this report include the Client. as well as FEMA. NFIP and their associated entities.
n
DESCRIPTION OF IMPROVEMENTS
Construction Class
D - Wood
Quality
Good
Year Built
2015
Effective Age
9
Total Economic Life
35
Remaining Economic Life
26
Condition
9 year eff age
Appeal and Appearance
Good
Number of Stories
1
Floor Area Ratio (FAR)
0 11
Land to Building Ratio
9.25
The subject structure was originally constructed in 2015 and occupied by Starbucks in 2016. The building
is wood -framed construction and built to Starbucks specific design standards. The structure is cladded
with grey face brick veneer with interchanging siding patterns and materials. Metal awnings, metal
windows, a flat built-up roof, and concrete slab foundation finish the building envelope. The rear of the
building has a drive-thru lane, with menu -board and intercom system. There is a small patio outside of
the main entrance and a dumpster enclosure with large metal canopy.
The interior features ceramic tile floors, open ceilings with exposed ductwork, painted textured drywall,
and some wood paneling, track lighting as well as some hanging light fixtures. There is a long built-in
coffee bar, with register, separating the dining area from the kitchen/service area. Two single -occupant
restrooms are in the rear of the dining area. The restrooms have tile floors tile wainscotting, ADA
compliant toilet, sink, as well as hand dryers.
The size of the structures was determined using county records of the property, while the condition and
quality are based on the observation made at the site visit. Improvement Costs were references using the
current version (July 2024) of Marshall Valuation Service (MVS) Cost Manual, Section 13 (Stores and
Commercial Buildings). Additionally, the appraiser consulted with Wilcox Construction, a local commercial
construction company with experience building Starbucks chain stores, and other small commercial/retail
properties in the market. Wilcox was consulted as a test of reasonableness for the MVS indications, which
the builder found to be a reasonably accurate estimate.
7
COUNTY RECORDS SKETCH
SUBJECT AERIAL
REPLACEMENT VS. REPRODUCTION COSTS
The replacement cost of a building is the total cost of construction required to replace the subject
building with a substitute of like or equal utility using current standards of materials and design. These
costs include labor, materials, supervision, contractors' profit and overhead, architects' plans and
specifications, sales taxes and insurance. The reproduction cost of a building is the total cost of
construction required to replace the subject building with an exact replica in all salient characteristics or
components. With newer structures, the terms 'reproduction' or 'replacement' will be somewhat
synonymous, while with older structures, a reproduction approach endeavors to replace with like kind
where possible and is more akin to the Segregated Method.
For the use of this assignment, replacement cost is used. Personal Property (i.e. trade fixtures and
equipment) are not included in the value conclusion.
IMPROVEMENT COST MATRIX
We determined Cost by reference to the Marshall Valuation Service (MVS), a nationwide costing service,
which provides construction costs for various building types and qualities. In terms of type of
construction, design, and building materials, the subject improvements consist of one Good Quality,
Restaurant- Fast Food (MVS #349) Building. Class D (Wood -Framed) structure, with brick veneer.
DIRECT/HARD REPLACEMENT COSTS
Direct Costs (also called Hard Costs) are expenditures for the labor and materials used in the construction
of improvements. Examples of direct costs include building permits; materials, products, and equipment;
labor used in construction; equipment used in construction and depreciation of equipment during
construction; security during construction; contractor's shack and temporary fencing; material storage
facilities and transportation costs; power line installation and utility costs; contractor's profit and
overhead, including job supervision, coordination and management (when appropriate), worker's
compensation, and fire, liability and unemployment insurance; and performance bonds.
OTHER INDIRECT/SOFT COSTS
MVS's published base costs, for the most part, represent completely finished buildings in the physical or
hard construction sense, but not necessarily completely finished projects, which could include
consideration for a variety of developmental and/or site improvement costs, including Professional fees,
Lease -up cost, Typical financing charges, Utility connections fees, etc.. These additional indirect costs can
include a number of financial and operational soft cost factors that may require consideration.
Typical indirect cost, not accounted for in MVS, include general and admin, real estate taxes, legal, title,
insurance/bonding, finance charges over construction period, permits & fees, space design charges, site -
specific mitigation items, and lease up expense (i.e. commissions and advertising).
10
Architecture, engineering, design, project management, surveys, inspections and contingencies are
generally considered soft cost, which are included in the MVS cost estimates. Often, we see developers'
budgets misclassify these items, or include over -inflated management fees, which on the surface can
skew the percentages.
Based on similar style projects we've appraised in the local market, indirect costs typically range from 7%
to 20% of direct construction cost, with a central tendency near 12%.
ENTREPRENEURIAL INCENTIVE
Entrepreneurial incentive is the market -derived amount that developers expect to receive for their
contribution to the development of a project. This differs from entrepreneurial profit, which is the
amount a developer actually receives from a completed development. Thus, the cost for many
commercial developments, particularly those that are developed for speculation or for lease to third
parties, requires a provision for entrepreneurial incentive. This is not as true for properties that are
typically owner -occupied or single -purpose in nature.
Entrepreneurial incentives vary depending upon the type of property, its geographic location, and the
economic influences affecting value. As improvements become more user -specific, entrepreneurial
incentive decreases. Typically, developers in the Pacific NW region expect to receive 10% to 30% for their
contribution to the development of a project. Given the current market conditions and special purpose
nature of the subject, as a franchise branded retail cafe/restaurant, the entrepreneurial incentive would
reasonably be on par with typical commercial development in the region. Therefore, we have estimated
the incentive at 20%.
DEPRECIATION
The next step in estimating the value contribution of the subject improvement is to calculate the amount
of depreciation from all causes — physical deterioration, functional obsolescence, and external
obsolescence. Depreciation as applied by the real estate appraiser is:
In appraisal, a loss in property value from any cause; the difference between the cost of an
improvement on the effective date of the appraisal and the market value of the improvement on
the same date. See also external obsolescence; functional obsolescence; physical deterioration.
In accounting, an allocation of the original cost of an asset, amortizing the cost over the asset's
life; calculated using a variety of standard techniques. (The Dictionary of Real Estate, 6th ed.,
2015, pg. 63).
Physical deterioration:
Physical deterioration is based on the Extended Life Theory of depreciation using MVS life Expectancy
Tables (MVS Sec. 97) Depreciation is subtracted from the building cost new estimate. The Extended Life
method estimates physical deterioration by comparing effective age with the estimated economic life of
the improvements. This method recognizes correction of deficiencies (repairs, maintenance, updates, and
upgrades) may lower the effective age and lengthen the remaining life. The non -linear approach, which
accounts for slower depreciation rate in the early years, as compared to the later years when diminishing
11
serviceability and higher maintenance can accelerate depreciation. Site improvements are not included in
this Actual Cash Value analysis. The MVS Extended Life Theory Depreciation Chart is displayed below:
UFECTIVE 7()I
AGE IN YEARS
1
2
3
4
5
3
7
3
1 �)
11
1)
13
14
15
13
17
13
19
21)
21
22
23
24
25
23
27
23
29
a)
32
34
3'i
33
4)
42
44
43
443
54)
55
6)
63
7)
75
91)
0
0
0
1
1
1
1
1
2
2
2
2
2
3
3
3
4
4
4
5
5
6
6
7
7
8
9
9
10
11
13
15
17
19
21
25
28
31
34
38
48
57
65
71
75
78
60
0
1
1
1
I
2
2
2
3
3
4
1
5
5
6
7
8
9
9
10
11
12
13
14
15
16
17
18
20
22
25
28
32
35
39
43
48
53
58
67
74
78
80
TYPICAL LFE EXPECTANCY IN YEARS
55
50
45
44
35
30
DEPRECIATION
—
PERCENTAGE
0
0
1
1
1
2
1
1
1
2
2
3
1
1
2
3
4
5
1
2
3
4
5
7
2
3
4
5
6
9
2
3
4
6
8
11
3
4
5
7
10
14
3
5
6
8
16
4
5
7
10
13
18
4
6
8
11
21
5
7
9
13
17
24
6
P
1n
14
19
?fi
6
9
12
16
22
29
7
10
13
18
24
32
8
11
14
20
26
35
9
12
16
22
28
39
10
13
18
24
31
42
11
14
19
26
34
46
12
16
21
28
36
49
13
17
23
30
39
53
14
18
25
32
42
57
15
20
27
35
45
60
16
21
29
37
48
63
17
23
31
40
52
66
19
25
33
43
55
69
20
27
35
46
58
72
21
20
37
49
61
75
23
30
40
52
64
77
24
32
42
54
68
78
20
34
45
57
72
79
30
38
50
62
75
80
34
43
55
68
77
38
48
61
73
79
42
53
67
77
80
46
59
72
79
25
2
5
7
10
13
16
19
22
25
29
32
.16
40
44
48
52
56
60
64
68
71
73
75
77
79
80
20
3
7
10
14
18
22
26
30
35
40
45
rin
55
60
65
69
73
76
78
79
80
51
65
75
80
PnoPERTIES INCLUDED
56
70
77
Secton 11 All apartments. -"et resons
60
74
78
Secton 12 Mods, loiges, arge nultiptes 8 rzsom
154
tf
,y
Socton 13 A11
Secton 14 A11
74
80
5ecton 15 WI exceptlitxare3
Secton 16 All except ciurclres and fratrrral Wigs.
_68
75 80
78
Heron 1 r All i errtmeraal ana nwusM uses
80
Secton 18 Nore
Secton 64 All canmercoi and inttrstrul uses
Um i nK Ir�r thin )n marl, tno P.vrp 7i
EF
AGE
12
Functional obsolescence:
The overall layout of the subject improvements is considered functional in utility. The size, condition, and
quality will adequately meet the needs of typical users in this market. No functional obsolescence is
expected to exist.
External obsolescence:
An improvement reflects external obsolescence when it is not competitive in the relevant market for
reasons originating beyond the boundaries of the subject property. For example, government regulations
or industry changes may depress or eliminate the market for certain types of improvements; thus,
adversely influencing fair market value. In most cases, external obsolescence is quantified in the Sales
Comparison Approach and the Income Capitalization Approach. No evidence of external obsolescence is
noted.
Special Note: ACV does not consider loss in value simply due to outmoded design (Functional
obsolescence) or location factors (external obsolescence). No functional or external obsolescence exists.
13
RECONCILIATION OF ACTUAL CASH VALUE
The reconciliation involves estimating the cost of improvements as if new, an estimated amount of
physical depreciation must then be subtracted from the estimated replacement cost or reproduction cost
new. The concluded value indication for the Actual Cash Value of the improvements, is summarized
below followed by a detailed cost spreadsheet.
Replacement Cost New $1,111,013
DhVsical Depreciation S144,432
Actual Cash Value $966,581
14
Cost Spreadsheet
Restaurants - Fast Food (349)
Number of Buildings
Class
Quality
Perimeter, Rounded
Gross Building Area
1
D (Wood) - Brick Veneer
Good
230
2072
MVS Base SF Cost
$230.00
Refinements
Height
Perimeter
1.042
1.283
Adj. Base SF Cost
Building Base Cost
$307.48
$637,106
Additionalltems
Sprinklers
Canopy (24'x12')
Kitchen/Dining Equipment (excluded)
$15,685
$16,992
$0
$0
$o
Total Hard Costs
$669,783
Add Soft Cost 0.12
$80,374
Subtotal
$750,157
Multipliers
Current Multiplier
Local Multiplier
1.02
1.21
Sub Total Building Costs
Add Incentive 0.2
Replacement Cost New
$925,844
$185,169
$1,111,013
Actual Age
Life Expectancy (MVS)
Effective Age
9
35
9
Remaining Life (MVS)
26
Physical Depreciation
Functional Depreciation
External Depreciation
13%
0%
0%
Total % Depreciated
13%
Age Life Depreciation
$144,432
Actual Cash Value
$966,581
15
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STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS
• By this notice, all persons and firms reviewing, utilizing or relying on this report in any manner bind
themselves to accept these assumptions and limiting conditions. Do not use this report if you do
not so accept. These conditions are a part of the appraisal report, they are a preface to any
certification, definition, fact or analysis, and are intended to establish as a matter of record that
the appraiser's function is to provide a present market value indication for the subject property
based upon the appraiser's observations as to the subject property and real estate market. This
appraisal is not an engineering, construction, legal or architectural study nor a survey. Expertise in
these areas, among others, is not implied.
• The Appraiser assumes no responsibility for matters of a legal nature affecting the property
appraised or the title thereto, nor does the Appraiser render any opinion as to title, which is
assumed to be good and marketable. The property is appraised as though under responsible
ownership.
• Exhibits in the report may show approximations and are included only to assist the reader in
understanding the property. The Appraiser has made no survey of the property. Drawings and/or
exhibits are not represented as an engineer's work product, nor are they provided for legal
reference.
• The Appraiser is not required to give testimony or appear in court because of having made the
appraisal with reference to the property in question unless arrangements have been previously
made.
• The Appraiser has, in the process of exercising due diligence, requested, reviewed, and considered
information provided by the ownership of the property and client, and the Appraiser has relied on
such information being candid and complete, and assumes there are no hidden or unapparent
conditions of the property, subsoil or structures, which would render it more or less valuable. The
Appraiser assumes no responsibility for such conditions, for engineering that might be required to
discover such factors, or the cost of discovery or correction.
• Information, estimates, and opinions furnished to the Appraiser and contained in the report were
obtained from sources considered reliable and believed to be true and correct. The Appraiser
assumes no responsibility for accuracy of such items furnished to the Appraiser or in public records.
• The Appraiser is not qualified to verify or detect the presence of hazardous substances by visual
inspection or otherwise, and is not qualified to determine the effect, if any, of known or unknown
substances present. Unless otherwise stated, the final value conclusion is based on the subject
property being free of hazardous waste contaminations, and it is specifically assumed that present
and subsequent ownerships will exercise due care to ensure that the property does not become
otherwise contaminated.
• Neither all nor any part of the report, or copy thereof, shall be used for any purposes by anyone
but the client and intended users specified in the report without the written consent of the
Appraiser.
• The appraisal is based on the premise that there is full compliance with all applicable federal, state
and local environmental regulations and laws unless otherwise stated in the report; further, that
all applicable zoning, building, use regulations and restrictions of all types have been complied with
unless otherwise stated in the report; further, it is assumed that all required licenses, consents,
permits, or other legislative or administrative authority, local, state, federal and/or private entity
or organization have been or can be obtained or renewed for any use considered in the value
estimate.
19
• Any liens or encumbrances that may now exist have been disregarded, and the property has been
appraised as though free of indebtedness and as though no delinquency in payment of general
taxes and special assessments exist.
• The distribution of the total valuation in this report between land and improvements applies only
under the existing program of utilization. The separate valuations for land and building must not
be used in conjunction with any other appraisal and are invalid if so used. The values assigned to
improvement shown in this report are in proportion to the contribution said improvements make
to the value of the property as a whole.
• The value premises cited in this report are considered foundational and basic to the value
opinions reported herein, and the right is hereby reserved by the appraiser to alter, revise and/or
rescind any of these said value opinions should subsequent or additional data be found, or in the
event the conditions are modified to any extent.
• Possession of this report, or any portion or copy thereof, does not carry with it the right to
publication, nor may the same be used for any purpose by anyone but the client without the prior
written consent and approval of the appraiser, and in any event only in its entirety.
• The value opinion, which is defined in the report, is subject to change with market changes over
time; value is highly related to exposure, time, promotional effort, terms, motivation, and
conditions surrounding the offering. The value estimate considers the productivity and relative
attractiveness of the property physically and economically in the marketplace.
• The appraiser assumes that a purchaser is aware that (1) this appraisal on the subject property
does not serve as a warranty on the condition of the property, (2) it is the responsibility of the
purchaser to examine the property carefully and to take all necessary precautions before signing
a purchase contract, and (3) any estimate for repairs is a non warranted opinion of the appraiser
unless otherwise stated..
• If this appraisal is prepared in conformance with the plans and specifications provided to your
appraiser it assumes completion in a workmanlike manner. The appraiser cannot be held
responsible for unforeseeable events that alter market conditions prior to completion or effective
date of the opinion.
• Prior to entering into an agreement to perform any assignment, an appraiser must carefully
consider the knowledge and experience that will be required to complete the assignment
competently; or disclose any lack of specific knowledge or experience to the client, and take all
steps necessary or appropriate to complete the assignment competently. Your appraisers have
both the knowledge and experience required to complete this assignment competently.
• Unless otherwise stated in this report, the existence of hazardous substances, including without
limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals,
which may or may not be present on the property, or other environmental conditions, were not
called to the attention of nor did the appraiser become aware of such during the appraiser's
inspection. The appraiser has no knowledge of the existence of such materials on or in the
property unless otherwise stated. The appraiser, however, is not qualified to test such substances
or conditions. The presence of such substances, such as asbestos, urea formaldehyde foam
insulation, or other hazardous substances or environmental conditions, may affect the value of
the property. The value estimated is predicated on the assumption that there is no such
condition on or in the property or in such proximity thereto that it would cause a loss in value. No
responsibility is assumed for any such conditions, or for any expertise or engineering knowledge
required to discover them. The client is urged to retain an expert in this field, if so desired.
• Neither all nor any part of the contents of this report (especially any conclusions as to value, the
identity of the appraisers, or the firm with which they are connected, or any reference to the
20
Appraisal Institute or the MAI designation) shall be disseminated to the public through
advertising media, public relations media, news media or any other public means of
communications without prior written consent and approval of the appraiser.
• The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not
made a specific compliance survey and analysis of this property to determine whether or not it is
in conformity with the various detailed requirements of the ADA. It is possible that a compliance
survey of the property, together with a detailed analysis of the requirements of the ADA, could
reveal that the property is not in compliance with one or more of the requirements of the Act. If
so, this fact could have a negative effect upon the value of the property. Since we have no direct
evidence relating to this issue, we did not consider possible non-compliance with the
requirements of ADA in estimating the value of the property.
• The federal government has enacted legislation, referred to as Megan's Law, which encourages
states to disclose to the public the whereabouts of convicted child molesters within the
community. These individuals may be transient and therefore the situation may change
periodically. While the appraiser has no knowledge of any offenders residing nearby the subject
property, the scope of this assignment did not include any investigation into this matter. The
client is advised to consult with local law enforcement officials about this issue. The appraiser
assumes no responsibility for any issues related to Megan's Law.
• There are a wide variety of detrimental conditions that can impact property values. These
include, but are not limited to: non -market motivations, future temporary disruptions, stigmas,
convicted criminals who reside in the neighborhood, neighborhood nuisances, future
unannounced surrounding developments, structural and engineering conditions, construction
conditions, soils and geo-technical issues, environmental conditions, endangered species and
natural conditions. The appraiser has inspected the subject property on a level that is consistent
with the typical responsibilities of the appraisal profession; however, the appraiser does not have
the expertise of market analysts, soils, structural or environmental engineers, scientists,
specialists, urban planners and specialists in these various fields. Unless otherwise stated within
the report, the appraiser assumes no responsibilities for the impact that the variety of
detrimental conditions may cause.
• The liability of Francis T Webster Appraisal Partners, its Associate Appraisers and employees is
limited to the client only. There is no accountability, obligation, or liability to any third party. If
this report is placed in the hands of anyone other than the client, the client shall makes such
party aware of al limiting conditions and assumptions of the assignment and related discussions.
The appraisers are in no way responsible for any costs incurred to discover or correct any
deficiency in the property. In the case of limited partnerships or syndication offerings or stock
offerings in real estate, the client agrees that in case of lawsuit (brought by lender, partner, or
part owner in any form of ownership, tenant or any other party), any and all awards, settlements,
or cost, regardless of outcome; the client will hold Francis T Webster Appraisal Partners, LLC. and
its Associate Appraisers harmless and indemnify Francis T Webster Appraisal Partners, LLC, in
connection therewith. Acceptance of and/or use of this appraisal report by client or any third
party is prima facie evidence that the user understands and agrees to these conditions.
• Francis T Webster Appraisal Associates. used ordinary care in performing all work, but under no
circumstances shall its directors, officers, employees or agents be liable to the client for any
special, incidental or consequential damages arising out of or in connection with this appraisal or
the performance or nonperformance thereof, whether in contract, tort (including strict liability
and negligence), or otherwise, including without limitation, loss of profits or loss of revenues,
even if Francis T Webster Appraisal Partners has been advised of the possibility of such damages.
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Privacy Notice: Pursuant to the Gramm -leach -Bliley Act of 1999, effective July 1, 2001,
Appraisers, along with all providers of personal financial services are now required by federal law
to inform their clients of the policies of the firm with regard to the privacy of client nonpublic
personal information. As professionals, we understand that your privacy is very important to you
and are pleased to provide you with this information.
Types of Nonpublic Personal Information We Collect: In the course of performing appraisals, we
may collect what is known as "nonpublic personal information" about you. This information is
used to facilitate the services that we provide to you and may include the information provided
to us by you directly or received by us from others with your authorization.
Parties to Whom We Disclose Information: We do not disclose any nonpublic personal
information obtained in the course of our engagement with our clients to nonaffiliated third
parties, except as necessary or as required by law. By way of example, a necessary disclosure
would be to our employees, and in certain situations, to unrelated third party consultants who
need to know that information to assist us in providing appraisal services to you. All of our
employees and any third party consultants we employ are informed that any information they
see as part of an appraisal assignment is to be maintained in strict confidence within the firm.
A disclosure required by law would be a disclosure by us that is ordered by a court of competent
jurisdiction with regard to a legal action to which you are a party.
Confidentiality and Security: We will retain records relating to professional services that we have
provided to you for a reasonable time so that we are better able to assist you with your needs. In
order to protect your non public personal information from unauthorized access by third parties,
we maintain physical, electronic and procedural safeguards that comply with our professional
standards to insure the security and integrity of your information. Please feel free to call us at any
time if you have any questions about the confidentiality of the information that you provide to us.
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Jeffrey B. Totzek
WA State Certified General Real Estate Appraiser (1102511)
PROFESSIONAL PROFILE
Jeffrey Totzek is a Washington State Certified General Appraiser and founding member of Francis T
Webster Appraisal Partners. He has been providing valuation and consulting services since 2015. Mr.
Totzek is responsible for all aspects of appraisal process and is regularly involved in performing
appraisals of a variety of residential and commercial property types including, retail, office, industrial,
multi -family residential, mixed -use, land, proposed development, lodging, special -use, and government
fee acquisitions. Clients have included financial institutions, insurance companies, government entities,
as well as private clients.
He received his B.A. from Western Washington University in 2008 in Business Administration. Prior to
becoming an appraiser, he was a Community Association Manager with the Seattle office of Phillips Real
Estate Services, where he assisted condominium owners with facilities maintenance, financial planning,
dispute resolution and delinquency management. Additionally, he was an assistant property manager of
a 600+ unit multi -family complex in Everett, WA with Holland Residential and resident manager with
Cornell and Associates in Seattle.
PROFESSIONAL DESIGNATIONS/ CERTIFICATIONS
-Certified General Real Estate Appraiser, Washington License No. 1102511
-Candidate for Designation, Appraisal Institute
WORK EXPERIENCE
6/2020 — Present
Francis T Webster Appraisal Partners, Kirkland, WA
Founder, Appraiser & Consultant.
6/15- 12/2020
Lamb Hanson Lamb Appraisal Associates, Inc., Seattle, WA
Real Estate Appraiser & Consultant
1/13 — 4/15
Phillips Real Estate Services, Seattle, WA
Community Association Manager
EDUCATION
• 2004-2008, Bachelor of Arts, Business Administration, Western Washington University
• 2015 Basic Appraisal Principles (McKissock)
• 2015 Basic Appraisal Procedures (McKissock)
• 2015 Uniform Standards of Professional Appraisal Practice (McKissock)
• 2015 Supervisor -Trainee Course for Washington
• 2016 General Appraiser Market Analysis Highest and Best Use (McKissock)
• 2016 General Appraiser Site Valuation and Cost Approach (McKissock)
• 2017 General Appraiser Sales Comparison Approach (McKissock)
0 2017 General Report Writing and Case Studies (McKissock)
• 2017 Expert Witness for Commercial Appraisers (McKissock)
• 2017 Commercial Appraisal Review (McKissock)
• 2018 Statistics and Modeling (McKissock)
• 2018 General Appraiser Income Approach (McKissock)
• 2019 Business Practices and Ethics (Appraisal Institute)
• 2019 Advanced Hotel Appraising, Full -Service Hotels (McKissock)
• 2020 Uniform Appraisal Standards for Federal Land Acquisitions (McKissock)
• 2020 Uniform Standards of Professional Appraisal Practice Update (McKissock)
• 2020 Advanced Income Capitalization (Appraisal Institute)
• 2020 Advanced Market Analysis Highest and Best Use (Appraisal Institute)
• 2020 Quantitative Analytics (Appraisal Institute)
• 2020 Advanced Concepts and Case Studies (Appraisal Institute)
• 2020 Capstone Program Demonstration Report (Appraisal Institute)
• 2023 Appraising Today's Manufactured Homes (McKissock)
• 2023 The FHA Handbook (McKissock)
• 2023 The Sales Approach — Residential (McKissock)
• 2023 Appraising Condos, Co-ops and PUDs (Appraisal Institute)
PROPERTY TYPE FOCUS
OFFICE INDUSTRIAL
Low-, Mid -Rise Office Light Industrial/Flex
Office Parks Distribution
Medical/Dental Manufacturing
Office Condominiums Cold Storage
RETAIL MULTI -FAMILY
Strip/Neighborhood Center 2-4 Unit Residential
Box Retail Low -Mid Rise Apartments
Auto Service/ Quick Lube Mixed -Use, Residential/Commercial
C-Store/Franchise Retail Suburban Apartment Complexes
SPECIAL PURPOSE
LAND
Religious Facilities
Proposed Development
Gas Station/Car Wash
General Commercial
Hotel Limited & Full -Service
Agriculture & Timber Land
Easements/Eminent Domain
Conservation/Recreation Land
RESIDENTIAL
Single-family Residential
PUD's & Condominiums
Waterfront, Equestrian
Rural Residential
Manufactured Housing
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STATE OF WASHINGTON JJi
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DEPARTMENT OF LICENSING - BUSINESS AND PROFESSIONS DINISION d.L L i6EN�' Si4G" OTHI CERTIFIES THE PERSON OR BUSINESSN.3-MED BELOXVIS AUTHORIZED AS A
CERTIFIED rE-'%ER.AL REAL ESTATE APPRAISER
SUPERATSOR
JEFFREY B TOTZEK
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