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STATEMENT OF JUST COMPENSATION <br />Acquired: <br />Legal Description: Lot 198, Tract No. 1192, per map recorded in Book 39, Page 17 of Maps, in the <br />office of the County Recorder, County of Orange, California. <br />Area to be 11,402 square feet of land area (full acquisition). <br />Acquired: <br />Market Value: $1,500,000. <br />Summary of the Basis for Just Compensation <br />There are three conventional methods (approaches) which can be utilized to estimate value. They are the <br />Sales Comparison Approach, Cost -Summation Approach, and Income Capitalization Approach, The <br />Sales Comparison Approach and Income Capitalization approach have been applied to the subject <br />property. The Cost -Summation Approach is without meaningful application in the subject case due to <br />the age of die existing improvements and resultant difficulty in accurately estimating accrued <br />depreciation. Further, market participants rarely rely on the Cost-Sununation Approach when making <br />buy -sell decisions. <br />Stiles Comparison Approach, <br />The Sales Comparison Approach takes into account properties which have sold in the open market. This <br />approach, whether applied to vacant or unproved property, is based on the Principle of Substitution, <br />which states, "The maximum value of a property tends to be set by the cost of acquiring an equally <br />desirable substitute property, assuming no costly delay is encountered in making the substitution." Thus, <br />the Sales Comparison Approach attempts to equate the subject property with sale properties by analyzing <br />and weighing the various elements of comparability. <br />The Sales Comparison Approach has been applied to the subject property after an investigation and <br />analysis was conducted of improved commercial office building properties located within the immediate <br />and general subject market area. Following is a summary of those sales considered helpful when <br />estimating the value of the subject property as presently improved. <br />75K-23 <br />Land Size Corner Zoning <br />Land/Bldg. <br />$/SF Land <br />Data <br />Date Bldg Size Built Const'n. <br />Ratio <br />Sale Price <br />OF Bldg. <br />1. <br />5-16 7,500 sf no CO <br />2.63:1 <br />$ 900,000. <br />$120.00 <br />2,856 sf 1988 fin./stue. <br />$315.13 <br />10952 Reagan Street, Los Alamitos <br />2. <br />6-16 12,073 sf yes PC <br />3.54:1 <br />$1,200,000. <br />$ 99.40 <br />3,413 sf 1948 fico./stuc. <br />$351.60 <br />9242 Walker Street, Cypress <br />3. <br />7-16 7,125 sf yes C-1 <br />3.18:1 <br />$1,025,000. <br />$143.86 <br />2,242 sf 1961 frm./stuc. <br />$457.18 <br />1545 Nutmeg Place, Costa Mesa <br />4, <br />8-16 8,771 sf no OTMU-15S <br />3.18:1 <br />$2,225,000. <br />$253.68 <br />2,760 sf 1914 wd. fi7n. <br />$806.16 <br />615 East Chapman Avenue, Orange <br />75K-23 <br />