Real Estate Consultation May 28 2012.pdfReal Estate Consultation
10.6 Acres SF of Commercially Zoned Land
Known as
Harbor Square
Location:
Southwest corner of 160 W Dayton Street
and State Route 104,
Edmonds, WA.
Ostensible Owner:
Port of Edmonds
Prepared for:
Robert McChesney, Executive Director
Port of Edmonds
336 Admiral Way
Edmonds, WA 98020-7214
Date of Analysis:
April 30, 2010
Date of Report:
May 22, 2012
Job #12-130
File: 12-130 HarborSquare.wpd
Prepared by:
Paul C. Bird, Senior Associate
MACAULAY & ASSOCIATES, LTD.
Everett, Washington
Robert McChesney, Executive Director
Port of Edmonds
336 Admiral Way
Edmonds, WA 98020-7214
ssoc .a es . Real Estate Appraisers & Consultants
2927
Suite 100 ® Everett, WA 98201
Everett 425-258-2611 ® Seattle 206-382-9711 ® Fax 425-252-1210
Real Estate Consultation
May 22, 2012
Re: 10.6 acres of commercially zoned land known as Harbor Square, located on the southwest corner of
Dayton Street and State Route 104, Edmonds, WA. Job No. 12-130.
Dear Mr. McChesney:
The purpose of this consultation is to analyze and demonstrate the minimum degree of redevelopment at
Harbor Square that would achieve sufficient economic feasibility to attract a private -sector development
partner, considering a specific level of intensity of use in a mined -use project that would envision structures
up to five stories in height while at the same time providing other important features such as open space,
public access, and restoration of the adjacent marsh.
A high-intensity mixed use at Harbor Square is generally consistent with conventional urban -transit
oriented development in the Puget Sound region. The Port of Edmonds anticipates some combination of
residential dwellings, ground -floor retail, public access, office space, athletic facilities and hotel. This type
of mixed use will include state-of-the-art sustainability features such as rain gardens, energy efficient
materials and systems, green space and construction consistent with LEER standards. The residential
component is anticipated to contribute to the retail element, while the office space allocation is more
prospective and based on general market conditions. In our opinion, the Port's Harbor Square project meets
the definition of highest and best use for urban land development in the Seattle metropolitan area.
Two key assumptions are: (1) the city approves a contract rezone to allow five -story structures, and (2)
Harbor Square Athletic Club agrees to a land swap. This report is presented in a restricted use format and
is intended to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), in particular
Standard 4 for consulting and Standard 5 for reporting.
The premises are located on the south side of W Dayton Street and west side of State Route 104, between
downtown Edmonds and the city's commercial waterfront. The land is currently improved with several
commercial buildings that were constructed in the 1980s. In light of their age and functional utility, the Port
has been considering redevelopment options over the past several years, with an eye toward improving
this area for the Edmonds community while retaining an adequate level of financial stewardship for this
asset. The preferred option by the Port envisions 358 dwelling units in several multi -story bu ildings, 50,400
SF of storefront retail/commercial space, 9,784 SF of office space and 1,172 parking stalls on 9.17 buildable
acres, as visually depicted on the following page.
A market analysis was conducted in order to ascertain what a private developer would pay for the Harbor
Square site to build a project at this intensity of use. Considering land area and the anticipated number of
dwellings, such a development is anticipated to be phased over a 10 -year period, more or less. In summary,
such an alternative appears feasible at this intensity of use, and it is anticipated that a developer would pay
$11.0 million to $13.5 million for the land, or roughly $31 per square foot, to execute this plan.
12-130 Macaulay & Associates, Ltd.
Design Principles
(numbered to correlate with the site plan below)
1. Create a pedestrian entry to Harbor Square that invites public
use and provides a visual gateway to the Edmonds Marsh from
the intersection at Hwyl04/Dayton. This public entry point will
serve as a key link to downtown Edmonds.
2. Create an attractive street front along Hvryl04.
3. Feature pedestrian friendly facades and uses along Dayton
Street with appropriate setbacks and sidewalks.
4. Establish a pedestrian friendly esplanade with adjacent
activities from the public plaza (1) across Harbor Square to the
marsh.
5. Connect pedestrian walkways to linkages around the marsh.
& Provide a vehicular access from Dayton Street approximately
midway between Hwy 104 and the railroad.
7. Provide direct pedestrian access to the Marsh from Hwyl 04.
8. Create a pedestrian focus such as a village green or public
plaza in the center of Harbor Square.
9. Locate residential development in the southern part of the site.
10. Locate parking near the western perimeter of the site, next to
the railroad. Parking could be enclosed in on above ground
structure designed to serve the entire site.
PA
Structured Parking
11, Architectural character should emphasize a "Northwest Style",
compatible with existing downtown Edmonds character, and
feature high quality traditional materials incorporating a
variety of colors, forms and textures.
12. Provide improved buffers to protect and enhance the Edmonds
Marsh.
13. Provide for a well landscaped Northwest oriented small-town
design theme.
12-130 Macaulay & Associates, Ltd. 4
Residential
F
Retail
Office
Recreation
Open Space
Structured Parking
11, Architectural character should emphasize a "Northwest Style",
compatible with existing downtown Edmonds character, and
feature high quality traditional materials incorporating a
variety of colors, forms and textures.
12. Provide improved buffers to protect and enhance the Edmonds
Marsh.
13. Provide for a well landscaped Northwest oriented small-town
design theme.
12-130 Macaulay & Associates, Ltd. 4
Real Estate Description
To the right is a summary of the
subject tax parcels and below is
a parcel map. According to the
1989 binding site plan, there is
62,476 SF of wetland/buffer area,
so total buildable land area is
399,260 SF or 9.17 acres.
Parcel Summary
2,012 Assessed Value
Tax Account
Land Area
Land Area
Number
Description
(SF)
(Acres)
Land
Per SIT
270323-004-064-00
Lott
34,848
0.80
$1,105,900
$31.73
270323-004-075-00
Lott
77,972
1.79
$2,536,300
$32.53
270323-004-081-00
Lot 3
34,412
0.79
$1,102,300
$32.03
270323-004-012-00
Lots 4A & 4B
53,143
1.22
$1,108,200
$20.85
270323-004-086-00
Lot 5
39,640
0.91
$1,271,100
$32.07
270323-004-113-00
Common area
97,139
2.23
$3,284,300
$33,81
270323-004-109-00
Athletic club
159,430
3.66
$5,101,700
$32.00
Totals
I
461,736
10.60
$14,40:3,:90:0E
$31.20
_._I
Land area based on county assessor's records.
Assessor's Quarter Section Map
12-130 Macaulay & Associates, Ltd.
For the land swap, the athletic club site (tax parcel number 270323-004-109-00) would be transferred to the
Port and a parking structure with tennis courts would be built on Lots I and 4.
12-130 Macaulay &Associates, Ltd.
Preferred Development Alternative
This option is predicated on a contract rezone with the City of Edmonds and land swap with Harbor Square
Athletic Club. Project components consist of the following:
(1) 358 dwelling units, with an average unit size of 1,100 SF, ranging from 850 SF to 2,200 SF.
(2) 50,400 SF of storefront retail/commercial space;
(3) 9,784 SF of upper -story office space;
(4) 81 surface/street parking spaces and 1,091 in parking structures;
(5) 7,000 SF plaza and 36,000 SF of sidewalks and pedestrian concourses;
(6) Marsh restoration and enhanced stormwater detention.
Market Analysis
Ecoiio1?iil?11/
The Washington State Employment Security Department reported an unemployment rate of 7.7% in January
2012 in the Seattle metropolitan district (King and Snohomish counties), a 1.6% drop from the January 2011
rate of 9.3%. The primary reason for the change is employment growth at a rate not seen since 2007.
Employment grew from 1,344,060 in January 2011 to 1,400,090 u1 January 2012, an increase of 4.2%, while
the labor force grew 2.4% over the same period. At The Boeing Company, employment is growing due to
new 777 and 787 orders, and there is a wave of new development in Seattle and Bellevue at high-tech firms.
111 their December 2011 Puget Souiul EconoiWeForecaste", Conway Pedersen estimates job growth in the Puget
Sound region at 1.8% per year through 2016.
Retail Market
According to a December 2011 retail study by Kidder Mathews, the regional vacancy rate declined in 2011,
from 6.5% in December 2010 to 6.1% in December 2011. Retail sales in 2011 were 3.0% higher than in 2010,
and 3.5% higher in Snohomish County. Prior to 2011, vacancy rates had been increasing over a 24 -month
period, initially due to a development cycle that brought new product to the market while older properties
(food stores and in-line drug stores) saw closures. As the recession worsened in 2008, new stores opened
in an environment of reduced demand. After ranging from 4% to 5% from 2005 through 2008, the vacancy
rate increased to 6.4% in December 2009 and again to 6.5% in December 2010. However, in 2011, conditions
have improved. As seen in the chart on the following page, there was a higher number of sales of retail
centers and overall capitalization rates were lower.
The Snohomish County market has experienced similar trends as the regional market. Conditions in
downtown Edmonds are generally stable. The market is characterized by small- to medium-sized
enterprises serving the local community. There is a wide range h -i rental rates in the Edmonds market, from
12-130 Macaulay & Associates, Ltd. 7
VOLUME
$800
$700
%Z1114
$600 8.91A
$500
40
7.990
32
$400
$300
24
$200
16
If
$100
0
YE08
YE09
YEI 0 YF`
$0
YEOI YE02
YE03 YE04
YE05 YE06
YE07
Dollar Volume FA # Transactions
# TRANSACTIONS
64
56
Rate
$12.00/SF to $32.00/SF triple net, depending on factors such as size, location, quality, building age and
configuration. At Mill Creek Town Center, for example, effective rental rates are $28.00/SF for storefront
retail space. For Harbor Square, the estimate is $26.00/SF, recognizing the lack of a nearby retail anchor.
Office Market
Kidder Mathews reported an 11.5% regional vacancy rate in December 2011, somewhat lower than the
December 2010 rate of 12.9%, which is slightly lower than the December 2009 rate of 13.1%, but notably
higher than the 9.8% and 8.4% rates in December 2008 and December 2007, respectively. In terms of new
construction, there was 1.02 million SF underway in March 2012, most of which is occurring in downtown
Seattle. Absorption was 2,759,513 SF h -t 2011 and 461,253 SF in the first quarter of 2012, and there has been
a continuing stratification of the market. Companies like Google, Microsoft and Amazon are expanding
rapidly while traditional office users such as law firms, financial institutions and insurance companies are
more likely to downsize as leases expire. Amazon is under contract to purchase three city blocks at the north
end of the Seattle CBD, intending to construct one million square foot office towers on each block. However,
high tech sector aside, potential office tenants remain cautious with relocation and expansion plans. Sales
of office buildings dropped significantly from 2007 through 2010, but the investinent market is returning,
particularly for "Class A core properties" and at the opposite end of the spectrum.
12-130 Macaulay &Associates, Ltd. 8
40
7.990
32
24
16
0
YE08
YE09
YEI 0 YF`
Rate
$12.00/SF to $32.00/SF triple net, depending on factors such as size, location, quality, building age and
configuration. At Mill Creek Town Center, for example, effective rental rates are $28.00/SF for storefront
retail space. For Harbor Square, the estimate is $26.00/SF, recognizing the lack of a nearby retail anchor.
Office Market
Kidder Mathews reported an 11.5% regional vacancy rate in December 2011, somewhat lower than the
December 2010 rate of 12.9%, which is slightly lower than the December 2009 rate of 13.1%, but notably
higher than the 9.8% and 8.4% rates in December 2008 and December 2007, respectively. In terms of new
construction, there was 1.02 million SF underway in March 2012, most of which is occurring in downtown
Seattle. Absorption was 2,759,513 SF h -t 2011 and 461,253 SF in the first quarter of 2012, and there has been
a continuing stratification of the market. Companies like Google, Microsoft and Amazon are expanding
rapidly while traditional office users such as law firms, financial institutions and insurance companies are
more likely to downsize as leases expire. Amazon is under contract to purchase three city blocks at the north
end of the Seattle CBD, intending to construct one million square foot office towers on each block. However,
high tech sector aside, potential office tenants remain cautious with relocation and expansion plans. Sales
of office buildings dropped significantly from 2007 through 2010, but the investinent market is returning,
particularly for "Class A core properties" and at the opposite end of the spectrum.
12-130 Macaulay &Associates, Ltd. 8
As seen bnthe chart cmthe following
page conditions tothe "Northeud"
market (north King County and all
of Snnbozoiab County) have
improved somewhat ahzca 2009,
with the vacancy rate dropping from
12.9% in ooid'2009 to 11.3% in
December 2011 Prior to that
conditions were generally flat (12.5%
vacancy rate in znid-2007, for
exaznp{e).Net absorption was only
160,000± SF in 2011 --bolstered by
Google and its lease o[a58,00OSB
building in Bothell --is greater than
the 95,O0O±5Fabsorbed tn2O1O.
]I-te Bothell, south Everett and
Nmrtbend Office Market Trends
Sp
600K
400x 12a% /2.7m
300K 12.9%
1ooK r7gM iso
m
16.0%
11.3% 11.5% 12.0%
$24.96
—��~—�---`~ 00%
Ysou veom YE10 YE11 /u�u
L9,Now Construction Vacancy Rate
V'Net Absorption 0 - Average Rent (wouian)
Harbour Pointe submarkctshave outperformed other submarkets, and will likely doaoin202.The Boeing
Company plans to build a new 180,000 SF new plane delivery center, bolstering its commitment toEverett
and acontinued production push otthe Paine Field assembly plant. n-ieSnohomish County office market
contains several large users sucl-i as The Boeing Company, but is predominantly characterized by 2,000 SF
to6,OOOSFusers. Downtown Edmonds reflects the smaller office segment, and rental rates range from
$12.OU/SFtu$25.00/SFtriple net.Porl}acburSquare,6heesbozutcio$2O.00/5F,coneideringcnrrentdeonaod,
availability of space and timing offuture construction.
Midti-faini1V Residential Market
Sales activity /rorn 2006 through 20lliaused toevaluate tuture .7he geographic area analyzed
iathe 98020 zip code, which mostly consists of the Edmonds "bowl" and the Town of Woodway, For newer
proje' tsA�o�t20O2eudo�e6 there 36ofvvbichv,erebztbePob�
cts ,--_ ��', ,
Edwards complex iii Woodway. Only one of the 2011 sales was from a bank -owned portfolio and only one
was a "short sale", which is favorable compared to nearby communities. On the following page iaachart
showing condominium sales activity bnthe 98O2Ozip code, utilizing data from Northwest Multiple Listing
Service.
12-I30 Mocnuax£/Asenciatms, Ltd. 9
Edmonds Condominium Sales Activity - 98020 Zap Code
All Dwellings 10 Years and Newer
# of
Median
Median
Average
# of
Median
Median
Average
Year Sales
Size
Price
Price Per SF
Sales
Size
Price
Price Per SF
2006 98
1208
$370,000
$342.60
46
1,279
$403,250
$365.38
2007 162
1,135
$389,975
$405.53
84
1,390
$587,475
$449.33
2008 106
1,140
$340,000
$383.18
34
1,418
$687,475
$519.47
2009 90
1,157
$326,250
$319.82
36
1,354
$413,975
$373.65
2010 83
1,318
$350,000
$290.72
34
1,460
$429,600
$317.00
2011 98
1,333
$373,950
$310.33
44
1,447
$465,000
1 $392.34
Over the years, the Point Edwards development has contributed 50% to 80% of the sales of newer
condominiums in the market area. For Harbor Square, average unit size is untended to be somewhat smaller
by comparison (at 1,100 SF) un order to attract a broader pool of prospective purchasers. The average price
is estimated at $375.00/SF or $412,500. The sellout rate is estimated at four per month, recognizing the above
historical activity.
Project Analysis
Because of the 10 -year development window, a discounted cash flow analysis is utilized to estimate the
price a developer would be willing to pay for the Harbor Square site at the above-mentioned intensity of
use and assuming a contract rezone and land swap. To arrive at this estimate, gross sellout value of the
entire complex is estimated, then deductions are made for selling/closing costs, construction and
development expenditures, holding costs, and entrepreneurial incentive (also referred to as entrepreneurial
risk/profit). The net result is known as the land residual or, in other words, the anticipated price a buyer
would pay for the land that would allow for an economically viable project.
Key Assumptions
Generally, the assumptions herein lean somewhat conservative to reflect the current cautiousness of the
development and financial communities.
Gross Sellout Value
As noted, the anticipated average value of condominiums is $375.00/SF or $412,500 per unit. For the retail
component, market value is estimated at $335.00/SF, based on a market rental rate of $26.00/SF triple net
and overall capitalization rate of 7.00%. For the office segment, market value is estimated at $241.00/SF,
based on a market rental rate of $20.00/SF and overall capitalization rate of 7.25%.
12-130 Macaulay & Associates, Ltd. 10
Sellout Rate
Condominium units are forecast to sell at a rate four per month, to begin in the third year of the analysis
(the first two years consist of pre -development work and construction of the first phase). Construction of
the dwellings will occur in six phases in order for supply to meet anticipated demand. Considering market
conditions for the respective property types, a retail component will be built in the first phase and a
retail/office component will be developed in the third phase.
Marketing/Closing Costs
Closing costs are estimated at 2.0% of gross sellout value, and marketing costs are forecast at 3.0%.
Commissions are commonly closer to 5.0% for single buildings and smaller projects, but developers
commonly use in-house resources, and lower rates can be achieved in projects with larger scale.
Development Costs
Using data from Marshall Valuation Service, a nationally recognized cost-reporth-tg authority, construction
costs are estimated at $150 per square foot for the commercial and residential components, and $30 per
square foot for the parking structures. An additional $30 per square foot is estimated for the office/retail
improvements to account for tenant improvements, leasing commissions and free rent. Other cost estimates
include surface parking ($3.50/SF), plaza ($25.00/SF), demolition and site work ($3.00/SF) and sidewalks
($5.00/SF). An initial investment of $500,000 is slated for stormwater detention and marsh restoration.
Construction would be phased to accommodate the above -estimated sellout rates for the condominiums
and commercial components. Total development costs are estimated at $96.2 million, not including interest.
Entrepreneurial Incentive
The developer's gross margin, or entrepreneurial incentive, is defined as a market -derived figure that
represents the amount an entrepreneur expects to receive for his or her contribution to a project and risk.
It is also deemed as the return on entrepreneurial skill, which is generally thought of as the profit the
developer of the project expects to realize for his time, effort, risk and skill In bringing the project to a
successful conclusion. Based on discussions with various developers in King and Snohomish counties, the
anticipated margin in developing this type of project is estimated at 15% of gross sellout value.
Discount Rate
The typical range in overall discount yield rates is 9% for improved investment-grade property up to 18%
for higher risk, more management -intensive real estate, according to the December 2011 Korpacz Real
Estate Investor Survey. The range in discount rates for CBD office buildings, for example, is 9% to 14%. The
12-130 Macaulay & Associates, Ltd. 11
location, property type, holding period, tenant creditworthiness and management involvement are factors
that enter into the discount rate estimate. Considering this, the estimate is 13% to 15%.
Value Conclusion
As noted, the purpose is to analyze and demonstrate the minimum degree of redevelopment at Harbor
Square that would achieve sufficient economic feasibility to attract a private -sector development partner,
considering a specific level of intensity of use in a mixed use project that would envision structures up to
five stories in height while at the same time providing other important features to the Edmonds community
such as open space, public access, and restoration of the adjacent marsh. The level of development is
undergirded by two key assumptions: (1) the city approves a contract rezone to allow five -story structures
and, (2) Harbor Square Athletic Club agrees to a land sw=ap. Utilizing the preceding assumptions, the
indicated value of the Harbor Square tract to a developer is estimated as follows.
15.0% Discount Rate .......................................... $11,000,000
14.0% Discount Rate .......................................... $12,200,000
13.0% Discount Rate .......................................... $13,500,000
Respectfully submitted,
MACAULAY & ASSOCIATES, LTD.
Paul C. Bird, Senior Associate
WA State Certified - General Appraiser No. 1100902
12-130 Macaulay & Associates, Ltd. 12
Assumptions and/or Limiting Conditions
1. That the title to the property that is the subject of this report is good in that no liability is assumed on
account of matters of legal character affecting the property such as title defect, encroachments, liens,
or overlapping property lines, etc.
2. The property is free and clear of any or all liens and encumbrances unless otherwise stated.
3. That the report is to be used only in its entirety. Distribution of the total value estimate between land
and improvements applies only under the proposed conditions of utilization and reflects their
estimated contribution to the overall value of the property.
4. Responsible ownership and competent property management are assumed.
5. That the maps and drawings in this appraisal are included to assist the reader in visualizing the
property; however, no responsibility is assumed as to their exactness.
6. That there are no hidden or unapparent conditions of the property subsoil or structures which would
render it more or less valuable. No responsibility is assumed for such conditions, including
hazardous waste or asbestos materials, or for engineering and other investigations which might be
required to discover such conditions.
It is assumed that the property is in full compliance with all applicable federal, state, and local
environmental regulations and laws unless the lack of compliance is stated, described, and
considered. Further, it is assumed that the property conforms to all applicable zoning and use
regulations and restrictions unless a nonconformity has been identified, described and considered
in this report.
Any information in this report furnished by others is believed to be reliable; however, the consultant
assumes no responsibility for its accuracy.
The omission or change of any part of this report without the written authorization of the consultant
invalidates the entire report. Further, neither all nor any part of the contents of this report (especially
any conclusions as to value, the identity of the consultant, or the firm with which the consultant is
connected) shall be disseminated to the public through advertising, public relations, news, sales, or
other media without the prior written consent and approval of the consultant.
10. No requirements shall be made of the consultant for testifying or attending in court by reason of this
report with reference to the property in question, unless arrangements have been made previously
therefor.
12-130 Macaulay & Associates, Ltd. 13
11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not
be present on the property, was not observed by the consultant. The consultant has no knowledge
of the existence of such materials on or in the property. The consultant, however, is not qualified to
detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam
insulation, and other potentially hazardous materials may affect the value of the property. No
responsibility is assumed for such conditions or for any expertise or engineering knowledge required
to discover them. Tlne client is urged to retain an expert in this field, if desired.
12-130 Macaulay & Associates, Ltd. 14
Certification
I, the undersigned consultant, do hereby certify that, except as otherwise noted in this report:
1. The statements of fact contained in this report are true and correct.
2. 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,
conclusions and recommendations.
I have no present or prospective interest in the property that is the subject of this report, and I have
no personal interest with respect to the parties involved.
4. I have no bias with respect to any property that is the subject of this report or to the parties involved
with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
6. 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, or the
amount of the value opinion, the attaiiunent of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this consulting assignment.
7. My analyses, opinions and conclusions were developed, and this report has been prepared in
conformity with the Uniform Standards of Professional Appraisal Practice.
8. I have inspected the exterior of the property on various dates in March and April 2012.
9. No one provided significant consulting assistance to the person signing this certification.
10. No provided significant real property appraisal or appraisal consulting assistance to the person
signing this certification.
11. The reported analyses, opinions and conclusions were developed, and this report has been prepared,
in conformity with the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute.
12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by
its duly authorized representatives.
12-130 Macaulay & Associates, Ltd. 15
13. 1 have not performed a prior appraisal or analysis of the subject property within the three-year period
immediately preceding acceptance of this appraisal assignment.
Respectfully submitted,
MACAULAY & ASSOCIATES, LTD.
Paul C. Bird, Senior Associate
WA State Certified -General Appraiser No. 1100902
12-130 Macaulay &Associates, Ltd. 16
PAUL CHARLES BIRD, SENIOR ASSOCIATE
Washington State License No. 1100902
EDUCATION
1984
B.A. Business and Accounting, University of Washington
1986
Obtained CPA designation m 1986
AlMraisal Instittete and State -Sanctioned Courses
2006
2004
bcope ot Work
Small Hotel/Motel Valuation
Analyzing Operating Expenses
2001
Appraising from Blueprints and Specifications
Appraisal of Nursing Facilities
Eminent Domain
Internet Search Strategies for Real Estate Appraising
1999
Residential Design and Functional Utility
1997
Standards of Professional Practice: Part C (Course 430)
1996
Technical Inspection of Real Estate
Principles and Tecluniques of Appraisal Review
Appraiser as Expert Witness
DaConfn•mation Verification
1995
fa and
Valuing Closely Held Businesses
Standards of Professional Practice: Part B (Course 410)
1994
Seminar - Understanding Limited Appraisals
An Introduction to Appraising Real Property (Course 101)
1993
Report Writing (Course 540)
Standards of Professional Practice: Part A (Course 410)
1992
Advanced Applications (Course 550)
1990
Advanced hncome Capitalization (Course 420)
1988
Basic Income Capitalization (Course 310)
1987
EXPERIENCE
5/91 - present
Macaulay & Associates, Ltd.
6/84-5/91
Senior Analyst, Special Credits/REO Division, Washington Mutual Savings Bank
May 1991 to present - Macaulay & Associates, Ltd.
Appraisal assignments include commercial, industrial and residential properties for financial institutions, governmental entities, law firms,
corporations and private individuals. Examples include office buildings, clinics, banks, various retail and commercial developments, stand-alone
supermarkets, restaurants, multi -family residential complexes, trailer parks, mobile home parks, condominiums, industrial warehouses, mini -
storage facilities, golf courses, automotive repair shops, service stations, automobile dealerships, residential subdivisions, hotels/motels, wetlands,
funeral homes, tidelands and other special purpose properties. Additional valuation assignments consist of right-of-way acquisition appraisals,
economic enhancement studies, rental valuations, leasehold and leased fee interests, partial interest valuations, waterfront commercial and
industrial properties and various consulting assignments.
Local Improvement District (LID) special benefit study experience includes several Lake Stevens ULIDs, Holmes Harbor Sewer LID No. 3 (1993),
City of Bellevue LID No. 277 involving widening of NE 4th Street (1995), City of Issaquah Maple Street Extension LID (1996), City of Bothell I-5/NE
195th Street interchange LID (1998), City of Lynnwood I-5/196th Street SW interchange LID project (1994 through 1999), City of Bellingham
Bakerview Rd LID (1996), City of Redmond Avondale Rd water/sewer extension LID project (1996), six LID projects in the City of Everett for
widening of Evergreen Way (1994 through 2001), Oak Harbor Scenic Heights sewer LID (2003) and City of Fife ULID 98-2 (2003). These studies
involved a variety of commercial, industrial, residential and special purpose properties.
Expert testimony experience includes lawsuits, court testimony, arbitration, mediation, bankruptcy hearings, board of equalization hearings, LID
assessment roll hearings and other judicial and quasi-judicial proceedings. Work is also performed for attorneys and accountants for estate
settlement, planning and giffing, including real estate and partial interest valuation of various 2roperty t > es and ownership entities.
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EXPERIENCE (continued)
February 1987 to May 1991=Washington Mutual Savings Bank, Seattle, WA
Commercial Real Estate Division, Portfolio Management - Managed a department of five professionals, inspected and evaluated
commercial properties in the bank's portfolio, liaised with regulators and auditors, participated in merger and acquisition due
diligence, performed review appraisals, appraised problem assets (using primarily the Income and Sales Comparison approaches
to value), performed discounted cash flow analyses using PROJECT and Lotus spreadsheets, analyzed borrower credit and
conducted special projects for senior management.
Tune 1984 to February 1987 - Washington Mutual Savings Bank, Seattle, WA
Internal Auditor - Performed operational and financial audits of various departments and subsidiaries within the bank.
BUSINESS AND PROFESSIONAL AFFILIATIONS
Appraiser, Macaulay & Associates, Ltd., Real Estate Appraisers and Consultants
Certified General Real Estate Appraiser - State of Washington, (No. 27011-1100902)
Candidate for the MAI designation of the Appraisal Institute
APPRAISAL CLIENTS SERVED
Financial Institutions
Other Corporations
Bank of America
Barclays North
Bank of Everett
Coast Real Estate Services
Bank of Washington
Darrington Energy
Cascade Bank
Skotdal Real Estate
Coastal Community Bank
Washington Trucking
EverTrust Bank
Governmental Agencies
First Heritage Bank
City of Everett
First Mutual Bank
City of Fife
First Sound Bank
City of Lynnwood
Frontier Bank
City of Marysville
Horizon Bank
City of Oak Harbor
North County Bank
City of Sultan
Prime Pacific Bank
City of Sultan
Prudential Financial
Department of the U.S. Navy
Skagit State Bank
Holmes Harbor Water District
U.S. Bancorp
Housing Authority of Island County
Whidbey Island Bank
Housing Authority of Snohomish County
Attorneys
Island County
Adams and Wilson
King County
Anderson Hunter, P.S.
Lake Stevens School District
Bell and Ingram, P.S.
Lake Stevens Sewer District
Cogdill Nichols Rein
Port of Everett
Deane Minor
Snohomish County
Frank R. Willson, PLLC
State of Washington
Jelsing Tri West & Andrus
Tulalip Tribes of Washington
Lawler & Burroughs, P.C.
U.S. Army Corps of Engineers
Preston Gates Ellis, LLP
U.S. General Services Administration
Williams, Kastner and Gibbs, LLC
U.S. Postal Service
Wolfstone, Panchot & Bloch, P.S.
Vashon Sewer District
PBResume 2 c-2009.wpd
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