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SALES COMPARISON APPROACH <br />The estimated fair market value of the subject property Is based on improved <br />sales data for other properties with essentially the same utility and amenities. The <br />subject property is located on a primary arterial street and the property benefits from <br />good access and visibility. <br />To analyze the value of the subject property, a search was conducted of the <br />market area for similar improved office building sales. Very few transactions were found <br />in Santa Ana. The search was expanded to surrounding areas and included small <br />office buildings that sold throughout Orange County since January 2015, built before <br />1990 and between 1,000 and 10,000 square feet in size. Of the comparables <br />discovered, the six most similar properties were chosen for comparison. <br />The comparables reflect selling prices ranging from $385,000 to $1,175,000, <br />which is approximately $302 to $472 per square foot of building area, or approximately <br />$52 to $161 per square foot of land area. <br />Office buildings of this size are primarily purchased for owner -occupancy <br />whereby the fee simple interest is conveyed. The primary approach used in this market <br />by owner -users is the sales comparison approach. As such, the sales comparison <br />approach is 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 <br />the typical basis used by buyers in this market. This unit of measure provides a reliable <br />basis of comparison for the assignment. As a check to the reasonableness of the <br />conclusion price per square foot of land area is also reviewed. Adjustments are <br />considered for transactional differences as well as for physical differences between the <br />subject property and comparables. <br />Included on the following page is a Comparable Improved Sales Summary. <br />75J-19 <br />