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ATTACHMENT <br />SALES COMPARISON APPROACH <br />The estimated fair market value of the subject property is based on improved sales <br />data for other properties with essentially the same utility and amenities. The subject <br />property is located on a primary arterial street and the property benefits from good access <br />and visibility. <br />To analyze the value of the subject property, a search was conducted of the market <br />area for similar improved office building sales. Very few transactions were found in Santa <br />Ana. The search was expanded to surrounding areas and included small office buildings <br />that sold throughout Orange County since January 2015, built before 1990 and between <br />1,000 and 10,000 square feet in size. Of the comparables discovered, the six most similar <br />properties were chosen for comparison. <br />The comparables reflect selling prices ranging from $385,000 to $1,175,000, which <br />is approximately $302 to $472 per square foot of building area, or approximately $52 to <br />$161 per square foot of land area. <br />Office buildings of this size are primarily purchased for owner -occupancy whereby <br />the fee simple interest is conveyed. The primary approach used in this market by owner - <br />users is the sales comparison approach. As such, the sales comparison approach is <br />developed to provide an indication of the fee simple market value. <br />The comparable sales are analyzed using the price per square method, which is the <br />typical basis used by buyers in this market. This unit of measure provides a reliable basis <br />of comparison for the assignment. As a check to the reasonableness of the conclusion <br />price per square foot of land area is also reviewed. Adjustments are considered for <br />transactional differences as well as for physical differences between the subject property <br />and comparables. <br />Included on the following page is a Comparable Improved Sales Summary. <br />75E-11 <br />