Vacant Land Analysis of a non-conforming 4-Unit

[glenn walker]

DW gave you some good advice as far as your licence level and qualifications.

 

[John Hassler]

CA is a non-mandatory state so, unless this is an FRT at a threshold amount requiring a license, no license is required. That said, if you are a licensee the competency rule within USPAP always applies.

As described, this assignment appears to be centered on H&BU as vacant with the current use an interim one. My first step would be to schedule an appointment (not a drop in) with a senior planner of the jurisdiction.

 

[George Hatch]

YEEP. The table of perissible M-1 light industrial uses in incorporated Fontana does not include any resideential uses. The subject is one of perhaps a handful [max] of residential improvements along a 2-mile stretch of Valley Blvd from Sierra to Cherry; and its 1-acre parcel is perfectly compatible with the street, although abnormal for residential uses.

Wow, you really stepped in it this time. It's extremely possible the underlying land value is the thing. It would take some research to suss it out for sure but there a couple land sales that would directly compare that sold for much more than $1M/acre. Another possibility is a contractor yard usage.

If I thought the HBU in as is condition was the existing use I'd say so, but I doubt that's the case. Even if its a wobbler (existing use is okay for now) the remaining economic life is most likely limited. Telling a lender that in an appraisal report might kill their deal all by itself.

Fontana's appeal to the industrial users is it's proximity to the rail hub. Some of those developers were buying up assemblages of the smaller parcels in order to create huge parcels that they could put distribution centers on - a case where the larger parcels were selling for more/ac than the smaller parcels.

 

[George Hatch]

No offense intended but...

The benchmark for competency will be what another appraiser who normally appraises properties like this would do; not what someone would do who is in over their head.

 

[ZZGAMAZZ]

mI know this area and street very much and Valley Blvd in this area is almost all mixed use located on light Commercial and Industrial land. Most 1 Acre or small parcels are used for used car lots, motels, shops, small units but finally with set backs and ADA parking you may end up with about a half acre usable. You can't use warehouse land as comparables some are 5 to 10 acres with new buildings.

Also some plat maps on Valley Blvd were measured to the center line of the street and are often 30 to 40 feet shorter in length than the gross to the C/L as that was County not City of Fontana when assessors maps were original and we never depend on them must get a survey. In summary your making a lot of hypotheticals with no support. BUT $5 Million as vacant lot ? Run don't walk your in way over your head.

Damn. I would NEVER have known that info. Sure is humbling to realize that i will never know squat about everything I need to know to become a competent appraiser--almost like **** just do what I can do til the end without even trying to learn more because it's impossible to do so...

 

[George Hatch]

In my experience appraisers learn how to do what they normally do. Not everything. I've been doing this for 40 years but I have no problem referring assignments out that involve appraisal problems I'm not capable of working through. I just referred an assignment out last week because of my limitations. And I saved myself a whole lot hassle in doing so.