4 - SA PH RESO PURCHASE OF 830 PARTON ST

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EXHIBIT 3 Pay Parking Lot Valbridge HIGHEISTANDBESTUSE PROPERTY ADVISORS site would be for office, however, development at this time is not as feasible because rental rates have not risen high enough to justify development. Conclusion of Highest and Best Use As If Vacant Based upon the preceding analysis, the conclusion of highest and best use of the subject site as if vacant is as follows: CONCLUSION AS IF VACANT Characteristic Conclusion Use: Hold for Development of Office Analysis of Highest and Best Use as Improved In determining the highest and best use of the property as improved, the focus is on three possibilities for the property: 1) continuation of the existing use, 2) modification of the existing use, or 3) demolition and redevelopment of the land. Continuation of Existing Use Retaining the improvements as existing meets the tests for physical possibility, legal permissibility and financial feasibility. The site is asphalt paved with landscaping, curbs, gutters, and sidewalks on the site. Thus, the continuation of the existing use as part of a public parking lot is a viable use. Conversion/Modification Conversion of the improvements meets the tests for physical possibility and legal permissibility. The property is currently not being utilized to meet the current market expectations for the submarket in which it competes. Modification of the property is financially feasible. Demolition As previously discussed, the new development of an office building appears to be financially feasible as the increasing market rental rates would be high enough to support construction costs. Our final opinion of market value plus demolition costs exceeds the value of the underlying land. Interim Use There are many instances where highest and best use will likely change in the foreseeable future. The use of a property until it can be put to its terminal highest and best use is its interim use. Interim uses are thus current highest and best uses that are anticipated to change in the foreseeable future. Examples of these interim uses include farms, parking lots, and old buildings. The current use represents an interim use. Excess Land Many parcels of land are too large for their principal highest and best uses. Such land parcels may have, in effect, two highest and best uses — the use for the improved portion and another use for the remaining, or excess, land. If excess land exists, it is valued separately within this report. The subject property does not have any excess land. Conclusion of Highest and Best Use As Improved The highest and best use of the subject property, as improved, is its current use as a parking lot. However, per current zoning, P (Professional), which was changed subsequent to the site's current OO 2015 VALBRIDGE PROPERTY ADVISORS I Penner and Associates, Inc. Page 25 SA4-57