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Summary of the Basis for Just Compensation <br />There are three conventional methods (approaches) which can be utilized to estimate value. They <br />are the Sales Comparison Approach, Cost -Summation Approach, and Income Capitalization <br />Approach. The Sales Comparison Approach and Income Capitalization approach have been applied <br />to the subject property. The Cost -Summation Approach is without meaningful application in the <br />subject case due to the age of the existing improvements and resultant difficulty in accurately <br />estimating accrued depreciation. Further, market participants rarely rely on the Cost -Summation <br />Approach when making buy -sell decisions. <br />Sales Comparison Approach: <br />The Sales Comparison Approach takes into account properties which have sold in the open market. <br />This approach, whether applied to vacant or improved property, is based on the Principle of <br />Substitution, which states, "The maximum value of a property tends to be set by the cost of <br />acquiring an equally desirable substitute property, assuming no costly delay is encountered in <br />malting the substitution." Thus, the Sales Comparison Approach attempts to equate the subject <br />property with sale properties by analyzing 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 <br />immediate and general subject market area. Following is a sunnnaty of those sales considered <br />helpftrl-'wheri estimating the value ofthe-subfeot property as prescrttlyimproved-- — <br />Land Size <br />Corner <br />Zoning Land/Bldg. <br />$/SF Land <br />Data bate Bldg. Size <br />Built <br />Const'n. Ratio <br />Sale Price $/SF Bldg. <br />1. 7-16 8,542 sf <br />no <br />CCSP 6.92:1 <br />$ 650,000. $ 76.09 <br />1,235 sf <br />1948 <br />fmil.stuc. <br />$526.32 <br />10931 Chapman Avenue, Garden Grove <br />2. 7-16 7,125 sf yes C-1 <br />3.18:1 <br />$1,025,000. <br />$143.86 <br />21242 sf 1961 fnndstuc. <br />$457.18 <br />1545 Nutmeg Place, Costa Mesa <br />3. 8-16 5,696 sf no CG <br />3.61:1 <br />$ 850,000. <br />$149.23 <br />1,576 sf 2007 frrn./stue. <br />$539.34 <br />7621 Commonwealth, Avenue, Buena Park <br />4. 9-16 9,372 sf no C-5 <br />6.25:1 <br />$1,000,000. <br />$106.70 <br />1,500 sf 1949 frm./stuc. <br />$666.67 <br />4728 West 1" Street, Santa Ana <br />5. 9-16 6,450 sf no O -P <br />2.90:1 <br />$1,050,000. <br />$162.79 <br />2,224 sf 1921 frrn./stuc. <br />$472.12 <br />924 East Chapman Avenue, Orange <br />75R-18 <br />