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SALES COMPARISON APPROACH <br />The estimated fair market value of the subject property is based on improved sales data <br />for other properties with essentially the same utility and amenities. The subject property is <br />located on a primary arterial street and the property benefits from good access 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 Ana. <br />The search was expanded to surrounding areas and included small office buildings that sold <br />throughout Orange County since January 2015, built before 1990 and between 1,000 and <br />10,000 square feet in size. Of the comparables discovered, the five most similar properties <br />were chosen for comparison. <br />The comparables reflect selling prices ranging from $385,000 to $1,175,000, which is <br />approximately $302 to $472 per square foot of building area, or approximately $52 to $161 per <br />square foot of land area. <br />Office buildings of this size are primarily purchased for owner -occupancy whereby the <br />fee simple interest is conveyed. The primary approach used in this market by owner -users is <br />the sales comparison approach. As such, the sales comparison approach is developed to <br />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 of <br />comparison for the assignment. As a check to the reasonableness of the conclusion price per <br />square foot of land area is also reviewed. Adjustments are considered for transactional <br />differences as well as for physical differences between the subject property and comparables. <br />Included on the following page is a Comparable Improved Sales Summary. <br />75Q-17 <br />