Attachment D - BTW Proposed Modular Building Analysis.pdf

City of Phoenix — Economic Development and the Arts Subcommittee (2025-02-12)

Extracted text (via pymupdf) 113225 characters

COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
Proposed Modular Building Analysis
1525 East Adams Street
Phoenix, Arizona 85034-1182
BBG File #0124011833
Prepared For
Ms. Josie Ayon
Executive Director
BTW Child Development Center
1519 East Adams Street
Phoenix, AZ 85034-1182
Prepared By
BBG, Inc., Phoenix Office
2850 E. Camelback Road, Suite 330
Phoenix, AZ 85016
602-648-8600
Client Manager: Barott G. Hurd
bhurd@bbgres.com
BBG Website
bbgres.com
ATTACHMENT D

PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
June 28, 2024
Ms. Josie Ayon
Executive Director
BTW Child Development Center
1519 East Adams Street
Phoenix AZ 85034-1182
Re:
Proposed Modular Building Analysis
1525 East Adams Street
Phoenix Arizona 85034-1182
BBG File #0124011833
Dear Ms. Ayon:
In accordance with your authorization, I have prepared a Cost/Rent analysis for a proposed modular administration
building for the Booker T. Washington Child Development Center, to be located at 1525 E. Adams Street, Phoenix,
Arizona 85034. This report presents a summarized discussion of the provided data, market data and analyses that were
employed to develop the opinion contained herein. It should be noted that although the property under consideration
is a planned modular building that will be permanently affixed to the subject site and is considered to be real estate for
this analysis.
This report is also intended to comply with the client’s needs and guidelines. This includes the Head Start ECLKC
Application To Purchase, Construct and Renovate Facilities, Form 1303.44, and the Cost Comparison, Form 1303.45.
The intended use of this report as related by the client is to provide a cost analysis for decision making purposes as of
the date of the report, and the intended user is the client, BTW Child Development Center. It is intended to comply with
the following requirements:
The proposed modular administration/classroom building to be acquired on behalf of the BTW program is to be located
on a vacant parcel of land adjoining the BTW Child Development Center campus and will be a part of the campus. I was
provided the preliminary floor plan, property description and preliminary budgeted cost detailed by Searer, Robbins &
Stephens, Inc. of Phoenix, Arizona, by the client. The preliminary budget was estimated by Modular Solutions, Ltd., and
was reportedly approved by the City of Phoenix. It is my understanding that the new modular building will contain a
total of 2,592 square feet of gross building area, with 3 offices, a teacher break room, conference room, classroom, IT
room and two, two-fixture restrooms.
According to Mitzi Garcia, with Modular Solutions, the modular provider, the subject building will be upgraded over a
more standard modular building, having a synthetic stucco exterior finish, dual-pane windows, a full heat pump air
conditioning system, upgraded flooring (LVP) and two, ADA-compliant restrooms with wainscot. These items increase
the cost over a base modular unit but provide additional operational cost savings as well as increased longevity.
The hard cost bid for the proposed subject building and pad site work totals $773,578, or $298.45 per square foot of gross
building area, GBA, inclusive of all material, labor and equipment necessary to place the building on the prepared site area.
An additional $70,000 is projected for on-site improvements such as a block wall, sidewalks and trash enclosure. With an
additional $223,700 of miscellaneous costs, taxes and contingencies (20%), the total hard cost is estimated at $1,067,276.
Finally, Soft Costs estimated at $47,000 bring the total to $1,114,276. It should be noted that this cost is a preliminary cost
estimate based upon information provided by Mitzi Garcia with Modular Solutions, Ltd., and does not represent a hard
estimate based upon contractor bids. Ms. Garcia noted that these costs are close and that the 20% contingency will be
reduced once more detailed costs are estimated.
In conclusion, it is my opinion that there are no readily available alternatives with the desired locational and financial
parameters that could reasonably replace the planned modular building.

Ms. Ayon
Booker T Washington Child Development Center
June 28, 2024

PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
BBG, Inc. appreciates the opportunity to have performed this consulting assignment on your behalf. If we may be of
further service, please contact the Client Manager.
Sincerely,
Extraordinary Assumption(s)
- We are consulting on the subject under the Extraordinary Assumption that the overview of
the proposed building specifications provided by the client is accurate.
Hypothetical Condition(s)
This analysis utilizes no Hypothetical Conditions
EXTRAORDINARY ASSUMPTION(S) AND HYPOTHETICAL CONDITION(S)
The results presented within this consulting report are subject to the Extraordinary Assumptions and Hypothetical
Conditions listed below. Pursuant to the requirement within Uniform Standards of Professional Appraisal Practice
Standards, it is stated here that the use of any Extraordinary Assumptions and/or Hypothetical Conditions might have
affected the assignment results.
Stephen L. Mastorakos, MAI
AZ Certified General Appraiser
License #: 30446
602-648-8600
smastorakos@bbgres.com

SCOPE OF WORK AND SUMMARY OF PERTINENT DATA
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
SUBJECT PROPERTY
Location For New Modular Building
View West On Adams Street, Subject To Left
View East On Adams Street, Subject To Right
BTW Child Development Center Parking Lot, Subject
Adjoining To Left
BTW Child Development Center Current Administration
Building, 2 Lots To West Of Subject Site

SCOPE OF WORK AND SUMMARY OF PERTINENT DATA
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
AERIAL – BTW CHILD DEVELOPMENT CENTER LAND PARCELS
Existing
Administration
Building
Location For
New Modular
Building
Parking
Lot
Additional
BTW-Owned
Parcel

SCOPE OF WORK AND SUMMARY OF PERTINENT DATA
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
PROPOSED FLOOR PLAN

SCOPE OF WORK AND SUMMARY OF PERTINENT DATA
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
SCOPE OF WORK AND SUMMARY OF PERTINENT DATA
The following pages set forth summaries of the most pertinent data gathered, the techniques employed, and the reasoning
leading to the opinions herein.
ANALYSIS INFORMATION
Client
Intended User(s)
Intended Use
Property Rights
Date of Inspection
Owner of Record
Property Contact(s)
Most Probable Purchaser
Highest and Best Use
If Vacant
Fee Simple Interest
June 18, 2024
Booker T. Washington Child Development Center Inc.
Ms. Josie Ayon
Owner-User
Expansion Of The Booker T. Washington Child Development Center, or Multifamily
Residential Development
This analysis is to be used to determine if the propposed modular administration
building aligns with its current Market Value and cost versus leasing purposes.
BTW Child Development Center
1519 East Adams Street,
Phoenix, AZ 85034-1182
This analysis may only be relied upon by the client and intended user(s) named herein
BTW Child Development Center.
PROPERTY DATA
Property Name
Address
Property Description
County
Parcel Number
Census Tract No.
Legal Description
Site Area
Primary Site
7,850 square feet
(0.18 acres)
Zoning
Flood Zone/Map Number/Date
Zone X (Unshaded)
04013C2210L
October 16, 2013
Year Built
Type of Construction
Number of Buildings
Gross Building Area, As Proposed
Overall Condition, As Proposed
Overall Quality, As Proposed
Overall Design/Functionality, As Proposed
New
Average
Good
Proposed
Modular
1
2,592 square feet
R-5; Multi-family residential
Proposed Modular Building Analysis
1525 East Adams Street
Phoenix, Arizona 85034-1182
Institutional Use (School)
Maricopa County
116-46-104
1140.00
Lot 6, Block 9, COLLINS ADDITION, MCR 1-11

SCOPE OF WORK AND SUMMARY OF PERTINENT DATA
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
BBG, Inc. has relied on information provided by various sources regarding site and improvement size and other relevant
physical and financial data. Sources may include tax records, GIS or aerial measurements, owner-provided information,
and/or information provided by the client. This information has not been independently verified and is assumed to be correct.
If proven to be incorrect, the use of this information could influence the findings of the analysis.
Extraordinary Assumption(s)
- We are consulting on the subject under the Extraordinary Assumption that the overview of
the proposed building specifications provided by the client is accurate.
Hypothetical Condition(s)
This analysis utilizes no Hypothetical Conditions
EXTRAORDINARY ASSUMPTION(S) AND HYPOTHETICAL CONDITION(S)
The results presented within this consulting report are subject to the Extraordinary Assumptions and Hypothetical
Conditions listed below. Pursuant to the requirement within Uniform Standards of Professional Appraisal Practice
Standards, it is stated here that the use of any Extraordinary Assumptions and/or Hypothetical Conditions might have
affected the assignment results.
SCOPE OF WORK AND ANALYSIS METHODOLOGY
Scope of Work
The scope of the assignment relates to the extent and way research is conducted, data is
gathered, and analyses are applied. This is a Consultation Report that is intended to comply
with the reporting requirements of the client. The depth of discussion presented in this
report is specific to the needs of the client and intended user(s), and for the intended use
stated herein.
Data Sources
During our investigation, the consultant researched pertinent market data and utilized
sources such as our internal proprietary database, public records, CoStar, REIS, multiple
listing services (MLS), and/or other data providers (when and where available or pertinent)
to locate comparable properties. The search focused on properties that were most relevant
and considered generally similar to the subject regarding location, age, construction type,
and highest and best use.
Most Probable Purchaser
The most probable purchaser of the subject "As Is" is an owner-user as there are no long-
term leases in place.

Regional Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
REGIONAL OVERVIEW
INTRODUCTION
The subject is located within the city limits of Phoenix, Arizona in the central portion of the Phoenix
metropolitan statistical area (MSA).
REGIONAL MAP
PHOENIX-MESA-SCOTTSDALE MSA
The metropolitan Phoenix area has emerged as one of the largest populations and trade centers in the
Southwest, having experienced substantial growth over the past two decades. This growth has been the
result of Phoenix’s centralized location, favorable climate and advantageous business environment. The
Phoenix-Mesa-Scottsdale MSA (Metropolitan Statistical Area) includes virtually all of central and eastern
Maricopa County. The City of Phoenix forms the nucleus of the metropolitan area, surrounded by 22
incorporated cities and towns.
ECONOMY & DEMOGRAPHIC PROFILE
The following profile of the Phoenix-Mesa-Scottsdale MSA was provided by Moody’s Economy.com, a
leading provider of economic, financial, and industry information. It is the most recent report available,
February 2024. It will give the most current view of the economic conditions in the Phoenix-Mesa-
Scottsdale, AZ area.
Subject

Regional Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.

Regional Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
POPULATION
According to the 2000 U.S. Census, the population estimate for Maricopa County was 3,033,798 persons,
up 43 percent from the 1990 census total of 2,122,101 persons and reflecting an average annual compound
growth rate of 3.6%. The U.S Census estimated county population at 3,758,168 as of April 1, 2010, an
increase of 24% over 2000. In 2020 the population had increased to 4,420,574, an increase of 17.6%.
According to the U.S. Census Bureau, …” Maricopa County, Arizona, remained the largest-gaining county in
the nation, adding 56,831 residents in 2022, a gain of 1.3% since 2021. Domestic migration was the
component of population change (i.e., births, deaths and migration), which made the largest contribution
to Maricopa County’s growth.”
According to SPOTLIGHT, the population estimate for the Phoenix-Mesa-Scottsdale MSA (Maricopa and
Pinal Counties) in the 2020 Census was 4,899,104. Since the 2020 census the population size has increased
to an estimated 5,090,811 people in 2023. This represents an annual growth rate of 1.3% from the 2020
census. SPOTLIGHT projects the MSA’s population to increase to 5,326,340 persons by the year 2028,
indicating a 4.6% increase.
CULTURAL/RECREATION
Metropolitan Phoenix is home to several professional sports teams and sports facilities such as: the Phoenix
Suns (NBA); the Arizona Cardinals (NFL); the Arizona Coyotes (NHL); the Arizona Diamondbacks (MLB); the
Arizona Rattlers (arena football); the Phoenix Smash (team tennis); Phoenix International Raceway and Turf
Paradise (horse racing). In addition, the Phoenix region offers ample cultural opportunities including
numerous museums and theaters, symphony/pop concerts, ballet, opera, the Phoenix Zoo and Desert
Botanical Gardens, restaurants, etc. Due to the warm climate, the area is heavily oriented toward outdoor
activities, such as golf, tennis, jogging, bicycling, hiking, swimming, softball, volleyball, and basketball. The
region has an excellent park system, which is ranked as one of the largest in the nation. Located within a
one to two-hour drive time from this region are several lakes and streams for boating and fishing, and
mountainous areas for hiking, camping, and snow skiing.
EDUCATION/HEALTH
Metropolitan Phoenix is well served by numerous educational facilities from elementary through doctoral
degree programs. The Phoenix region is served by two, four-year universities including Arizona State
University (ASU), the largest public university in the United States which has three campus locations, and
Grand Canyon University, the largest private university in the country. Additional educational alternatives
are provided by numerous technical trade schools. There are adequate medical facilities represented by
several regional hospitals, the Mayo Clinic, 24-hour outpatient medical centers, and a myriad of private
practices throughout the entire region.
PHYSICAL/ENVIRONMENTAL FACTORS
The Phoenix area is characterized by a dry arid climate with a wide range between minimum and maximum
temperatures. June and July are the hottest months, with an average maximum temperature of 106ºF,
while January is the coldest month, with an average minimum temperature of 44ºF. The average annual
minimum temperature is 62ºF, whereas the average maximum temperature is 86ºF. Annual precipitation
averages 7.6 inches. Water to Phoenix is provided from various sources including numerous underground
wells, the Salt River Project, and the Central Arizona Project, which is comprised of hundreds of miles of
canals diverting water from the Colorado River in western Arizona. The present water supply is adequate
to serve the needs of the region; however, continued development of large residential lakes and golf
courses has prompted many government planners to examine the future capacity of the water supply.
TRANSPORTATION
Due to the location of metropolitan Phoenix, it has become a regional transportation hub for the Southwest.
As a result, it is served by several major transportation linkages including highway, air, and rail. Interstates-

Regional Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
10 and -17, U.S. Highways-60, 70, 80, and 89, along with State Highways-51, 87, 93, and 360, connect the
metropolitan Phoenix area with most major metropolitan areas in the west and mid-western United States.
Public transportation in the metropolitan Phoenix area is mostly limited to municipal bus transit systems.
Mass transit service is generally fair due to the decentralization of retail and employment centers, rapid
population growth and the sprawling nature of the metropolitan area. However, construction of the Valley
Metro Rail system through the center of the metro area has improved public transportation in the most
densely populated areas. Completed in December 2008, the Valley Metro Rail system runs generally from
19th Avenue and Dunlap in the north-central portion of the metro area through the Phoenix downtown
central business district where it extends east through Tempe and into Mesa to Gilbert Road. The 26.3-
mile Valley Metro Rail system has enabled much better access to Downtown Phoenix, with linkage between
ASU-Tempe, Sky Harbor International Airport and the North Central Avenue Corridor. Further extensions
will occur over the next 20-plus years to a total length of approximately 66 miles (current plans).
The metropolitan Phoenix area is well served by other forms of transportation including bus lines, various
interstate truck lines, two railroads (Burlington Northern and Southern Pacific), and nine airports, including
the Sky Harbor International Airport (Arizona’s largest). Other airports in the metropolitan area include
Luke Air Force Base, and the municipal facilities of Mesa, Scottsdale, Chandler, Carefree, Glendale,
Goodyear, and Deer Valley.
GOVERNMENT
The Phoenix metro area is composed of approximately 17 incorporated cities with more than a 30,000-
person population, as well as numerous smaller cities and unincorporated communities. Phoenix has the
largest population, with over 1.6 million people, over 4 times that of the next largest city, Mesa. In general,
all of these cities and communities have experienced strong growth in the past 2 decades and are projected
to continue this trend in the future.
Real estate tax rates in the metropolitan Phoenix area are reasonable in comparison to other areas and
provide incentive for relocation. Liberal zoning requirements have not created any unusual detriments to
development; however, development plans for large, in-fill parcels have met with strong opposition from
neighborhood groups. The zoning requirements have promoted the development of compatible land uses,
which has contributed to enhancing property values. Adequate utilities, police and fire protection are
provided within the region.
CONCLUSIONS
The Phoenix metropolitan area has historically possessed a favorable climate and pro-business
environment, in response to which the area has experienced explosive growth since the mid-1980s, with
annual population gains of 4% to 5% and employment gains of 2% to 5%. While 2020 showed a slowing of
growth due to the COVID 19 pandemic, there was a strong rebound in 2021 and 2022 and future projections
are for a continued growth for the metro area in jobs and population into the foreseeable future.

Neighborhood Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
NEIGHBORHOOD OVERVIEW
INTRODUCTION
A primary market area (PMA) is defined as being, “a group of complementary land uses; a related grouping on
inhabitants, buildings or business enterprises.” Social, economic, governmental, and environmental forces influence
property values in the vicinity of a subject property, which, in turn, directly affect the value of the subject property itself.
Therefore, the boundaries of the area of influence must be delineated to conduct a thorough analysis. The area of
influence is the area within which the forces affect all surrounding properties in the same way they affect the property
being appraised. Although physical boundaries may be drawn, the significant boundaries are those that fix the limits of
influences on property values. By coincidence, these limits may be physically observable. The purpose of a PMA analysis
is to provide a bridge between the study of general influences on all property values and the analysis of a particular
subject. Primary market area boundaries are identified by determining the area in which the four forces that affect value
(social, economic, governmental and environmental) operate in the same way they affect the subject property.
GENERAL DESCRIPTION
The subject is located just east of the Phoenix Central Business District (CBD) and south of Interstate 10 in a mature, nearly
fully developed area. The PMA is defined as the downtown core and adjacent areas with the boundaries being approximately
Interstate 17 on the west and south and Interstate 10 on the north and east. Properties within the area generally exhibit
similarities such as land usage, physical characteristics, price range, desirability, and amenities. The subject’s location in the
PMA is presented in the following map.
ACCESS
Access to major arterials and freeways within the PMA is good via an extensive freeway system with several major roadways
and secondary roadways that are easily accessible from the subject and throughout the market area. The PMA benefits from
Interstate-10 and Interstate-17. Primary access is provided by a combination of highway thoroughfares and commercial
arterials.
Subject
Interstate 17
Phoenix Biomedical
Campus
Phoenix
Convention
ASU Downtown
Campus
CityScape
Sky Harbor
Chase Field
Interstate 10
Interstate 10

Neighborhood Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
Valley Metro is a regional entity that oversees public transportation, traffic management, roadway design and
construction funding, and transportation planning for City of Phoenix. Downtown Phoenix is the hub of the
expanding regional transit system that includes bus and rapid transit service. Over 26 routes serve Downtown, more
than any other destination in Greater Phoenix.
Valley Metro Light Rail Service began in December 2008 and will have 66 miles of rail lines upon full completion. It
has approximately 28 miles completed, with two new sections under development. The 1.6-mile extension to
Metrocenter on the northern end expands light rail service farther into northwest Phoenix running west from 19th
and Dunlap avenues, going north on 25th Avenue, then west on Mountain View Road crossing the I-17 freeway to
the redeveloping Metrocenter area. The South Central Extension/Downtown Hub will connect with the current light
rail system in downtown Phoenix and operate south along Central Avenue to Baseline Road. The project also includes
a hub in downtown Phoenix, new stations and public art.
LAND USE PATTERNS
The PMA is largely developed, with only a scattering of remaining land available for development. Therefore, most
new development involves the demolition of existing improvements.
Downtown Phoenix is the historical financial and civic center of Arizona with over 9 million square feet of private
office space. The downtown core has experienced an increase in education and research facilities over the past 15
years. entertainment destination for millions of visitors every year.
The Arizona Diamondbacks and Phoenix Suns call Downtown home along with the Phoenix Mercury and the Arizona
Rattlers. Chase Field, the home field of the Arizona Diamondbacks is located at the southwest E. Jefferson St. and S.
7th St. Located about a block from Chase Field, the Footprint Center is home to the Phoenix Suns of the NBA, Phoenix
Mercury of the WNBA, the Indoor Football League’s Arizona Rattlers.
The Orpheum Theatre, Comerica Theater, the Herberger Theater and Symphony Hall host a variety of cultural events
throughout the year. Renowned museums like the Heard Museum, Phoenix Art Museum and the Arizona Science
Center are also located in Downtown. Prior to the pandemic, the sports venues had a combined attendance of about
three million and attendance to the theaters was slightly more than one million.
Downtown's Phoenix Convention Center ranks among the top convention centers in the country with over one
million square feet of space. Phoenix's Downtown and the convention center hosted the NFL Experience for Super
Bowl XLIX in 2015, the College Football Champion Playoff Campus in 2016 and the Final Four Fan Fest in 2017.
The Arizona Center is located in the northern part of the PMA at the northeast corner of E. Van Buren St. from 3rd
St. to N. 5th St., east of the ASU Downtown Phoenix Campus and west of the UA College of Medicine. The center
includes retail, restaurant, office and parking. It recently underwent a multi-million-dollar renovation, and an AC
Hotel was developed at the center.
CityScape is a high-rise mixed-use development bound by 1st Avenue, 1st Street, Washington St. and Jefferson St. It
is within walking distance of Chase Field, Footprint Center, Phoenix Convention Center, and the Orpheum Theater.
It consists of a 27-story Class A office tower, occupied by Western Alliance Bank, United Healthcare and RED
Development. Snell & Wilmer, Arizona’s largest law firm recently signed a lease to occupy 115,000 SF in the tower.
Adjacent to the office tower is the 242-room Kimpton Hotel Palomar Phoenix and 224 luxury apartments above the
hotel. The development also has numerous restaurants, bars and retailers.
Residential development has been extensive with over 10,000 units built since 2000. The Downtown market features
a mix of high-rise luxury, mid-rise, townhomes and historic single-family neighborhoods. Currently, 2,766 units are
under construction.
Education and research facilities in the downtown have increased over the past 15 years. ASU opened its Downtown
Phoenix Campus in 2006 and it currently includes facilities for the College of Health Solutions, College of Integrative
Sciences and Arts, Edson College of Nursing and Health Innovation, Sandra Day O’Connor College of Law,
Thunderbird School of Global Management, which completed its new building in 2022, Walter Cronkite School of
Journalism and Mass Communication and the Watts College of Public Service and Community Solutions.

Neighborhood Overview
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
The 30-acre Phoenix Biomedical Campus (PBC) is devoted to biomedical research facilities with a focus of
translational genomics and molecular profiling to develop personalized treatment of diseases. The campus currently
has over 1.7 million SF of space and is expected to have over 6 million SF upon build out. The University of Arizona,
including its College of Medicine-Phoenix, Arizona State University and Northern Arizona University have facilities in
the PBC. It includes the International Genomics Consortium and Translational Genomics Research Institute and the
University of Arizona Cancer Center. Partners include Banner Health, Vidium Animal Health, Ashion, Faxnostics,
Dignity Health, Wexford Science and Technology and others.
In the southern portion of the neighborhood more immediate to the subject property is older single and multi-family
residential in development, with some neighborhood commercial along area arterials.
PUBLIC FACILITIES/SERVICES
The PMA is adequately serviced by public utilities. The following summarizes the utilities and services in the subject
and PMA.
Electricity
Salt River Project
Water
City of Phoenix
Sanitary Sewer/Storm Water
City of Phoenix
Gas
Southwest Gas
Police/Fire/Rescue
City of Phoenix
Education
Phoenix School District
Utility/Service Providers
DEMOGRAPHICS
Demographics for one-, three-, and five-mile radii around the subject’s location, as obtained from Claritas, Inc. for
2024, are summarized in the exhibits on the following page. Neighborhood income levels at a 3-mile radius (most
pertinent) are generally below average, with an average household income in 2024 estimated at $74,742, below the
2024 metro average income of $111,571. The neighborhood also has a younger median age, estimated at 33.7 years
compared to the metro area at 38.4 years, and a smaller average household count, 2.52 persons compared to the
metro area at 2.65 persons, indicating a younger, moderate-income family demographic.
The population increased 5.5% in the four years from 2020 to 2024 at 3 miles, with trends for the next 5 years
projected to reflect a population growth of 4.1%. income and household trends are projected to remain the same.

Neighborhood Overview
PROPOSED MODULAR BUILDING ANALYSIS
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CONCLUSION
The PMA benefits from its numerous employment centers and support facilities as well as its convenient access to
major demand generators within the MSA. Due to the PMAs central location within the MSA, re-development with
residential and commercial uses is expected to continue.
COMPARATIVE DEMOGRAPHIC ANALYSIS FOR PRIMARY TRADE AREA
1525 E. Adams
Street - 1 mi.
1525 E. Adams
Street - 3 mi.
1525 E. Adams
Street - 5 mi.
Description
Totals
Totals
Totals
Population
2029 Projection
11,828
119,441
360,088
2024 Estimate
11,594
114,900
349,372
2020 Census
11,254
109,015
334,579
2010 Census
12,457
103,633
313,041
2024 Est. Median Age
33.15
34.14
34.18
2024 Est. Average Age
35.83
36.39
36.40
Households
2029 Projection
5,133
48,893
146,049
2024 Estimate
4,937
46,122
139,901
2020 Census
4,693
42,768
131,967
2010 Census
3,956
35,807
112,097
2024 Est. Average Household Size
2.25
2.34
2.40
2024 Est. Households by Household Income (%)
Household Income < $15,000
20.50
14.28
11.35
Household Income $15,000 - $24,999
15.96
9.77
8.38
Household Income $25,000 - $34,999
11.87
9.62
8.83
Household Income $35,000 - $49,999
12.09
13.12
13.54
Household Income $50,000 - $74,999
12.52
17.04
18.06
Household Income $75,000 - $99,999
8.45
12.46
12.26
Household Income $100,000 - $124,999
6.93
8.31
8.65
Household Income $125,000 - $149,999
4.92
4.60
5.42
Household Income $150,000 - $199,999
2.88
4.58
5.62
Household Income $200,000 - $249,999
1.11
2.47
3.01
Household Income $250,000 - $499,999
1.76
2.44
3.08
Household Income $500,000+
1.01
1.33
1.82
2024 Est. Average Household Income
$62,274
$78,091
$87,514
2024 Est. Median Household Income
$36,716
$54,159
$60,003
2024 Est. Tenure of Occupied Housing Units (%)
Owner Occupied
20.42
33.19
37.82
Renter Occupied
79.58
66.81
62.19
2024 Est. Median All Owner-Occupied Housing Value
$389,826
$412,470
$409,429
Source: 2024 Claritas, Inc.

Site Description
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
SITE DESCRIPTION
INTRODUCTION
The description of the subject is based upon our physical inspection of the property, information available from the client
and public sources. The following summarizes the subject site data:
GENERAL SITE DESCRIPTION OVERVIEW
Address
Parcel Number
Legal Description
Latitude, Longitude
Site Area
7,850 square feet
(0.18 acres)
Configuration
Topography
Drainage
Utilities/Municipal Services
Off-Site Improvements
Flood Zone(s)
Zone
Map
Date
Zone X (Unshaded)
04013C2210L
October 16, 2013
Census Tract No.
Soil/Subsoil Conditions
Environmental Concerns
Easements, Encroachments and
Deed Restrictions
Hazards Nuisances
Frontage
Access
Visibility
Surrounding Land Uses
Opportunity Zone
Site Utility
Comments
33.449635, -112.048971
Yes
Good
Residential and office
Level
The site for the new building is a single legal parcel of land with an overall rectangular
shape and frontage on an interior street. It is level, at-grade and has all utilities and off-
sites in-place. The site is vacant but has block walls on three sides. It is located in the
Edison/Eastlake Phoenix Opportunity Zone.
Average
Appears adequate
All available to site.
Completed
Zone X Unshaded (Outside 500Y) is a Non-Special Flood Hazard Area (NSFHA) of minimal
flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year
flood level. This is an area in a low to moderate risk flood zone that is not in any
immediate
danger from flooding
caused
by
overflowing rivers
or hard
rains. In
communities that participate in the National Flood Insurance Program (NFIP), flood
insurance is available to all property owners and renters in this zone.
1140.00
Assumed adequate
None noted
None detrimental known
None known
Interior street
Average, 1 curb cut
1525 E. Adams Street, Phoenix, AZ 85034
116-46-104
Lot 6, Block 9, COLLINS ADDITION, MCR 1-11
Rectangular

Site Description
PROPOSED MODULAR BUILDING ANALYSIS
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ZONING
Designation
R-5
Description
Multi-family residential
Zoning Intent
The purpose of the multi-family residence districts is to provide for alternate living
styles including rental, condominiums and single ownership of land with multiple
units
thereon or single or attached townhomes. This
district also
allows non-
residential and mixed uses in conformance with zoning district C-1. This includes
schools.
Compliance
The proposed subject use appears to be a legal conforming use.

Improvements Description
PROPOSED MODULAR BUILDING ANALYSIS
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IMPROVEMENTS DESCRIPTION
The description of the planned subject improvements is based upon information provided by the client, specifically as detailed
in a building description and preliminary cost budget completed by Searer, Robbins and Stephens, Inc., Phoenix, Arizona, and
supported by Modular Solutions, Phoenix, Arizona. The details are included in the Addendum.
The improvements will consist of a single-tenant, single-story modular school administration building planned for permanent
affixture to the site. It will have a steel and wood framing system, a pre-fabricated roof truss system and plywood sheathing
with a bitumen layer and finished top coat. The base flooring is to be a wood truss system with a plywood flooring. Finish
flooring will be carpet and vinyl tile. Interior walls and ceilings will be drywall. The building will be fully served by a central
heat pump and will be fully wet sprinklered as well as having a Class A fire alarm system.
The building will have three offices, a conference room, a classroom, a teacher break/work room, an IT room and two, two-
fixture restrooms.
According to Mitzi Garcia, with Modular Solutions, the modular provider, the subject building will be upgraded over a more
standard modular building, having a synthetic stucco exterior finish, dual-pane windows, a full heat pump air conditioning
system, upgraded flooring (LVP) and two, ADA-compliant restrooms with wainscot. These items increase the cost over a base
modular unit but provide additional operational cost savings as well as increased longevity.
Site improvements will include a 6-foot ornamental iron and block wall fully enclosing the site, with ornamental iron gates,
and full site lighting. There will be no on-site parking.

Cost Comparison
PROPOSED MODULAR BUILDING ANALYSIS
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COST COMPARISON
The hard cost bid for the proposed subject building and pad site work totals $773,578, or $298.45 per square foot of gross
building area, GBA, inclusive of all material, labor and equipment necessary to place the building on the prepared site area.
An additional $70,000 is projected for on-site improvements such as a block wall, sidewalks and trash enclosure. With an
additional $223,700 of miscellaneous costs, taxes and contingencies (20%), the total hard cost is estimated at $1,067,276.
Finally, Soft Costs estimated at $47,000 bring the total to $1,114,276. It should be noted that this cost is a preliminary cost
estimate based upon information provided by Mitzi Garcia with Modular Solutions, Ltd., and does not represent a hard
estimate based upon contractor bids. Ms. Garcia noted that these costs are close and that the 20% contingency will be
reduced once more detailed costs are estimated.
For the analysis, I have reduced the 20% contingency fee to 5%, more typical of the market for a modular building with more
easily defined costs, and corrected the taxes being estimated to a total cost of $989,748, or $381.85 per square foot of gross
building area.
Relocatable education office buildings pursuant to the Marshall Valuation Service, MVS, have a base cost of $179.00 per
square foot GBA (599) (Section 18; Page 33). After applying the time and locational factors, the cost drops to $173.63 per
square foot GBA. Finally, adding an additional $5.79 per square foot for the upgraded Class A Fire System brings the adjusted
cost to $179.42 per square foot GBA.
The MVS cost estimate is significantly below the provided budget, but this is an indication of the complexity of comparing
standard building costs from historical surveys with actual bids for specific buildings. As noted, the subject will have some
upgrades specific to their needs, such as additional dual pane windows and a superior air conditioning system, that add
significantly to the costs. In addition, the rapid recent increases in building costs, including materials and labor, may not be
fully reflected in the MVS costs.
For additional support, the appraiser compared the recent costs for other comparable planned buildings with which I am
familiar. A proposed modular administration/classroom building to be acquired on behalf of a different Headstart program
to be located on a north Phoenix elementary School campus was obtained. It is my understanding that the new modular
building will contain a total of 2,160 square feet of usable area and will have an overall quality similar to the subject with the
exception of having a concrete stem wall foundation, superior to the subject. The provided bid was dated June 25, 2024, and
totaled $671,112, or $310.70 per square foot, inclusive of all material, labor and equipment necessary to place the building
on the designated site as well as needed site work. It should be noted that this was reportedly a significant increase for the
same bid from a year prior. This bid provides support for the subject’s estimated base cost, $298.45 per square foot, when
considering the foundation for this building is superior to the subject.
Finally, in a discussion with Robb Gebhardt, Boxx Modular, 928-42-7311, a contractor who specializes in modular building
sales and construction, it was noted that typically, the benefits of a modular building purchase include faster construction
times and lower total costs compared to site-built construction. When given a general description of the subject’s planned
building, he noted that for the Phoenix market the base costs for a similar-size basic modular building would typically run
from $275 to $300 per square foot. However, without exact specifications, he could not be more specific. This cost would
include the hard costs of the modular building delivered to the site and installed, as well as basic site prep and utility
extensions. Other site work such as block walls, sidewalks and landscaping would be additional costs. The subject’s building
hard costs only of $773,578, or $298.45 per square foot appear to be within the range. This cost is for hard costs and does
not include any architecture, engineering, loan fees, taxes, contingencies or other soft costs.

Cost Comparison
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
As an alternative, a site-built school administration building of similar quality to the subject, Good Quality Class D, has a base
cost in MVS of $229.00 per square foot, GBA. This is $50.00 per square foot higher than the MVS modular base cost of
$179.00 per square foot, or 28% higher. While the subject’s budgeted cost has been shown to be well above the MVS base
cost, this variance indicates that the cost of a site-built administration building would have similar cost variance that is well
above the modular cost. In addition, the time frame for site-built construction is typically much longer than modular.
In conclusion, the preliminary subject development costs appear to be reasonable in the current market for the quality of the
subject as proposed.

Alternative Property Analysis
PROPOSED MODULAR BUILDING ANALYSIS
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ALTERNATIVE PROPERTY ANALYSIS
At the request of the client, this analysis considers the alternative of purchasing a comparable property instead of
constructing a new administration building. Therefore, I have sought recent the sales of comparable buildings in the
subject market area, central/downtown Phoenix, that would have similar utility for the property owner.
The following table summarizes five recent sales with a map of their locations.
My search located five recent sales of small, professional office buildings that would have the same utility for the
subject property owner as the proposed subject building as an alternative to new construction. The range of sale
SUMMARY OF IMPROVED SALES
Comp
No.
Property / Location
Date of Sale /
Status
Property Rights
Property Use
Year Built /
Renovated
Site Size
(SF)
Bldg. Size
(SF Gross)
Parking /
1,000 SF
Land-to-
Building
Ratio
Sale Price
Price per SF
(Net)
1
3833 E. Indian School Rd.
3833 East Indian School Road
Phoenix, AZ
May-24
Closed
Leased Fee
Office
Professional
Office
2017
8,944
2,488
4.42
3.59 : 1
$1,550,000
$622.99
2
376 E. Virginia Ave.
376 East Virginia Avenue
Phoenix, AZ
Apr-24
Closed
Fee Simple
Office
Professional
Office
1985
10,525
2,404
3.33
4.38 : 1
$715,376
$297.58
3
3809 E. Indian School Rd.
3809 East Indian School Road
Phoenix, AZ
Mar-24
Closed
Fee Simple
Office
Professional
Office
1952
8,960
1,917
7.30
4.67 : 1
$690,000
$359.94
4
4332 N. 24th St.
4332 North 24th Street
Phoenix, AZ
Feb-24
Closed
Fee Simple
Office
Professional
Office
1952
6,356
1,470
2.72
4.32 : 1
$500,000
$340.14
5
3150 N. 7th St.
3150 North 7th Street
Phoenix, AZ
Dec-23
Closed
Fee Simple
Office
Professional
Office
1973
14,443
3,607
4.71
4.00 : 1
$1,499,000
$415.58
Subj.
Proposed Modular Building
Analysis
1525 East Adams Street
Phoenix, Arizona
---
Fee Simple
Office
Professional
Office
2024
7,850
2,592
---
3.03 : 1
---
---

Alternative Property Analysis
PROPOSED MODULAR BUILDING ANALYSIS
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prices per square foot of gross building area is from $297.58 to $622.98, with an average of $407.25, for buildings
ranging in size from 1,470 to 3,607 square feet with an average of 2,377 square feet.
For the comparison analysis, I have utilized the total estimated costs for the subject property (with a 10%
contingency), of $1,036,879, or $400.03 per square foot. To this must be added the estimated value of the
underlying land to be comparable with the sales.
The subject site is 7,850 net square feet, with an R-5, multi-family residential zoning. Based upon recent land sales
known to the appraiser and maintained in my files from other appraisals conducted in this market area, I have
estimated a land value for the subject site of $17.00 per square foot, for a total estimated site value of $133,450.
This increases the subject cost to $1,170,329, or $451.52 per square foot. This is the in approximate center of the
comparable range.
Notably, four of the sales, Comparables 2, 3, 4 and 5 are older and in average condition, inferior to the subject which
will be new. The high end of the range, Comparable 1, is seven years old and reported to be in good condition. Thus,
the older buildings would typically require significant upgrading/renovation to be comparable in condition to the
subject. Based upon data from the Marshall Valuation Service and information on renovation costs from other
appraisals I performed in this market recently, the costs of renovation of small office properties can range from
$50.00 to over $100.00 per square foot of gross building area. Thus, this cost, with another estimated 10% for Soft
Costs, would increase this range to roughly $55.00 to $110.00 per square foot for costs which must be added to the
purchase price of an older office property to bring it to the subject’s condition and utility.
Thus, adding an estimated $75 per square foot to the four older comparables, Comparables 2 through 5, for the
additional upgrades and renovations required, increases the range of their sale prices to $372.58 to $490.58. The
indication is that the subject’s total estimated cost of $451.52 per square foot is reasonable as an alternative to
purchasing an existing building.
In addition, a current listing of a comparable building in the market area was considered. A 3,200 square foot single-
tenant commercial/office building located at 806 E. Washington Street, in the immediate area of the subject, is
offered for sale for $995,000, or $310.91 per square foot. This building was constructed in 1952 and appeared from
MLS photos and descriptions to be mostly original in finish and below-average in condition, needing interior finish.
Thus, a significant additional cost of $100 per square foot or more would be likely be required to make this building
usable for the subject owner. It is also located on a smaller site than the subject. Overall, this would also indicate
that the subject’s projected cost is reasonable as an alternative to purchasing an existing building and renovating it
to suit the subject owner.
A final consideration in this analysis is the proximity of the planned subject building to the Booker T. Washington
Child Services Center campus at 1519 E. Adams Street, of which the planned property would be a part. The
alternative is the purchase of a building in the general subject market area, depending on availability, with the
likelihood of a several mile distance to be traveled to the campus from the administration building. This would be
considered inefficient and not in the best interests of the Center operations.
LEASED SPACE ANALYSIS
Another potential alternative for the subject ownership would be to lease a comparable office property in the market
area. My search criteria considered readily available properties for lease ranging from 2,000 to 3,000 square feet in
size in the general central/downtown Phoenix area. The data indicated rental rates ranging roughly from $20.00 to
$30.00 per square foot, triple net (tenant paying all building expenses) or modified gross (tenant paying utilities and
janitorial typically), for reasonably comparable buildings.

Alternative Property Analysis
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
Data sources include the Multiple Listing Service, CoStar and LoopNet. Although several properties meeting the size
requirements were available within the general market parameters, they all were one-half or more miles from the
subject and lacked proximity of the planned building. These buildings consisted of mostly older single and multi-
tenant office and/or retail buildings, all of which would likely require some form of modification.
The subject’s estimated total cost of $451.52 per square foot (with land) indicates an annual rental range of $33.86
to $36.12 per square foot based on likely capitalization rates for this property type of 7.50% to 8.00%. These rental
rates are slightly above the market range but those are generally for older properties which would likely not suit the
subject owner without further modification.
A strong consideration is that leases for this property type typically run from 3 to 10 years, with most no longer than
5 years. Thus, this type of occupancy would not provide the subject property owner the same long-term locational
stability that ownership of a building would provide. In addition, lease rates typically have annual increases and
would increase over the term of the lease, reducing the financial stability of this type of occupancy.
CONCLUSION
In conclusion, it is my opinion that there are no readily available alternatives with the desired locational and financial
parameters that could reasonably replace the planned modular building.

Standard Assumptions and Limiting Conditions Page
PROPOSED MODULAR BUILDING ANALYSIS
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STANDARD ASSUMPTIONS AND LIMITING CONDITIONS
This report has been made with the following general assumptions:
1)
Notwithstanding that Appraiser may comment on, analyze or assume certain conditions in the appraisal, BBG, Inc.
shall have no monetary liability or responsibility for alleged claims or damages pertaining to: (a) title defects, liens
or encumbrances affecting the property; (b) the property’s compliance with local, state or federal zoning, planning,
building, disability access and environmental laws, regulations and standards; (c) building permits and planning
approvals for improvements on the property; (d) structural or mechanical soundness or safety; (e) contamination,
mold, pollution, storage tanks, animal infestations or other hazardous conditions affecting the property; and (f) other
conditions and matters for which licensed real estate appraisers are not customarily deemed to have professional
expertise. Accordingly:
a)
The Appraiser has not conducted any engineering or architectural surveys in connection with this assignment.
Information reported pertaining to dimensions, sizes, and areas is either based on measurements taken by the
Appraiser or the Appraiser’s staff or was obtained or taken from referenced sources and is considered reliable.
The Appraiser and BBG, Inc. shall not be monetarily liable or responsible for or assume the costs of preparation
or arrangement of geotechnical engineering, architectural, or other types of studies, surveys, or inspections that
require the expertise of a qualified professional.
b)
Unless otherwise stated in the report, only the real property is considered, so no consideration is given to the
value of personal property or equipment located on the premises or the costs of moving or relocating such
personal property or equipment. Further, unless otherwise stated, it is assumed that there are no subsurface
oil, gas or other mineral deposits or subsurface rights of value involved in this appraisal, whether they are gas,
liquid, or solid. Further, unless otherwise stated, it is assumed that there are no rights associated with extraction
or exploration of such elements considered. Unless otherwise stated it is also assumed that there are no air or
development rights of value that may be transferred.
c)
Any legal description or plats reported in the analysis are assumed to be accurate. Any sketches, surveys, plats,
photographs, drawings or other exhibits are included only to assist the intended user to better understand and
visualize the subject property, the environs, and the competitive data. BBG, Inc. has made no survey of the
property and assumes no monetary liability or responsibility in connection with such matters.
d)
Title is assumed to be good and marketable, and in fee simple, unless otherwise stated in the report. The
property is considered to be free and clear of existing liens, easements, restrictions, and encumbrances, except
as stated. Further, BBG, Inc. assumes there are no private deed restrictions affecting the property which would
limit the use of the subject property in any way.
e)
The report is based on the premise that there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless otherwise stated in the report; additionally, that all applicable
zoning, building, and use regulations and restrictions of all types have been complied with unless otherwise
stated in the report. Further, it is assumed that all required licenses, consents, permits, or other legislative or
administrative authority, local, state, federal and/or private entity or organization have been or can be obtained
or renewed for any use considered in the value opinion. Moreover, unless otherwise stated herein, it is assumed
that there are no encroachments or violations of any zoning or other regulations affecting the subject property,
that the utilization of the land and improvements is within the boundaries or property lines of the property
described, and that there are no trespasses or encroachments.
f)
The American Disabilities Act (ADA) became effective January 26, 1992. The Appraiser has not made a specific
compliance survey or analysis of the property to determine whether or not it is in conformity with the various
detailed requirements of ADA. It is possible that a compliance survey of the property and a detailed analysis of
the requirements of the ADA would reveal that the property is not in compliance with one or more of the
requirements of the Act. If so, this fact could have a negative impact upon the results report. Since the Appraiser

Standard Assumptions and Limiting Conditions Page
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not
considered in the analysis.
g)
No monetary liability or responsibility is assumed for conformity to specific governmental requirements, such
as fire, building, safety, earthquake, or occupancy codes, except where specific professional or governmental
inspections have been completed and reported in the report.
h)
It is assumed the subject property is not adversely affected by the potential of floods; unless otherwise stated
herein. Further, it is assumed all water and sewer facilities (existing and proposed) are or will be in good working
order and are or will be of sufficient size to adequately serve any proposed buildings.
i)
Unless otherwise stated within the report, the depiction of the physical condition of the improvements
described therein is based on visual inspection. No monetary liability or responsibility is assumed for (a) the
soundness of structural members since no engineering tests were conducted; (b) the condition of mechanical
equipment, plumbing, or electrical components, as complete tests were not made; and (c) hidden, unapparent
or masked property conditions or characteristics that were not clearly apparent during the Appraiser’s
inspection.
j)
If building improvements are present on the site, it is assumed that no significant evidence of termite damage
or infestation was observed during physical inspection, unless so stated in the appraisal report. Further, unless
so stated in the appraisal report, no termite inspection report was available. No monetary liability or
responsibility is assumed for hidden damages or infestation.
k)
Unless subsoil opinions based upon engineering core borings were furnished, it is assumed there are no subsoil
defects present, which would impair development of the land to its maximum permitted use or would render it
more or less valuable. No monetary liability or responsibility is assumed for such conditions or for engineering
which may be required to discover them.
l)
BBG, Inc., excepting employees of BBG Assessment, Inc., and the appraiser(s) are not experts in determining the
presence or absence of hazardous substances toxic materials, wastes, pollutants or contaminants (including,
but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise
present on the property. BBG, Inc. and the appraiser(s) assume no monetary liability or responsibility for the
studies or analyses which would be required to determine the presence or absence of such substances or for
loss as a result of the presence of such substances. The Client is free to retain an expert on such matters in this
field; however, Client retains such expert at Client’s own discretion, and any costs and/or expenses associated
with such retention are the responsibility of Client.
m) BBG, Inc. is not an expert in determining the habitat for protected or endangered species, including, but not
limited to, animal or plant life (such as bald eagles, gophers, tortoises, etc.) that may be present on the property.
BBG, Inc. assumes no monetary liability or responsibility for the studies or analyses which would be required to
determine the presence or absence of such species or for loss as a result of the presence of such species. The
Appraiser hereby reserves the right to alter, amend, revise, or rescind any of the value opinions contained within
the appraisal repot based upon any subsequent endangered species impact studies, research, and investigation
that may be provided. However, it is assumed that no environmental impact studies were either requested or
made in conjunction with this analysis, unless otherwise stated within the report.
2)
If the Client instructions to the Appraiser were to inspect only the exterior of the improvements in the process, the
physical attributes of the property were observed from the street(s) as of the inspection date of the appraisal.
Physical characteristics of the property were obtained from tax assessment records, available plans, if any,
descriptive information, and interviewing the client and other knowledgeable persons. It is assumed the interior of
the subject property is consistent with the exterior conditions as observed and that other information relied upon is
accurate.
3)
If provided, the opinion of insurable replacement cost is included at the request of the Client and has not been
performed by a qualified insurance agent or risk management underwriter. This cost estimate should not be solely
relied upon for insurable replacement cost purposes. The Appraisers are not familiar with the definition of insurable
replacement cost from the insurance provider, the local governmental underwriting regulations, or the types of

Standard Assumptions and Limiting Conditions Page
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
insurance coverage available. These factors can impact cost estimates and are beyond the scope of the intended use
of this analysis. The Appraisers are not cost experts in cost estimating for insurance purposes.
4)
The dollar amount of any value opinion herein rendered is based upon the purchasing power and price of the United
States Dollar as of the effective date of value. This analysis is based on market conditions existing as of the date of
this report.
5)
The opinions reported herein apply to the entire property. Any proration or division of the total into fractional
interests will invalidate the value opinions, unless such proration or division of interests is set forth in the report.
Any division of the land and improvement values stated herein is applicable only under the program of utilization
shown. These separate valuations are invalidated by any other application.
6)
Any projections of income and expenses, including the reversion at time of resale, are not predictions of the future.
Rather, they are BBG, Inc.’s best estimate of current market thinking of what future trends will be. No warranty or
representation is made that such projections will materialize. The real estate market is constantly fluctuating and
changing. It is not the task of an appraiser to estimate the conditions of a future real estate market, but rather to
reflect what the investment community envisions for the future in terms of expectations of growth in rental rates,
expenses, and supply and demand. The forecasts, projections, or operating estimates contained herein are based on
current market conditions, anticipated short-term supply and demand factors, and a continued stable economy.
These forecasts are, therefore, subject to changes with future conditions.
7)
The Appraiser assumes no monetary liability or responsibility for any changes in economic or physical conditions
which occur following the effective date of value within this report that would influence or potentially affect the
analyses, opinions, or conclusions in the report. Any subsequent changes are beyond the scope of the report.
8)
Any proposed or incomplete improvements included in the appraisal report are assumed to be satisfactorily
completed in a workmanlike manner or will be thus completed within a reasonable length of time according to plans
and specifications submitted.
9)
If the report has been prepared in a so-called “public non-disclosure” state, real estate sales prices and other data,
such as rents, prices, and financing, are not a matter of public record. If this is such a “non-disclosure” state, although
extensive effort has been expended to verify pertinent data with buyers, sellers, brokers, lenders, lessors, lessees,
and other sources considered reliable, it has not always been possible to independently verify all significant facts. In
these instances, the Appraiser may have relied on verification obtained and reported by appraisers outside of our
office. Also, as necessary, assumptions and adjustments have been made based on comparisons and analyses using
data in the report and on interviews with market participants. The information furnished by others is believed to be
reliable, but no warranty is given for its accuracy.
10) Although the Appraiser has made, insofar as is practical, every effort to verify as factual and true all information and
data set forth in this report, no responsibility is assumed for the accuracy of any information furnished the Appraiser
either by the Client or others. If for any reason, future investigations should prove any data to be in substantial
variance with that presented in this report, the Appraiser reserves the right to alter or change any or all analyses,
opinions, or conclusions and/or opinions of value.
11) The right is reserved by the Appraiser to make adjustments to the analyses, opinions, and conclusions set forth in
the report as may be required by consideration of additional or more reliable data that may become available. No
change of this report shall be made by anyone other than the Appraiser. The Appraiser shall have no monetary
liability or responsibility for any unauthorized change(s) to the report.
12) The submission of the report constitutes completion of the services authorized and agreed upon. Such report is
submitted on the condition the Client will provide reasonable notice and customary compensation, including expert
witness fees, relating to any subsequent required attendance at conferences, depositions, or judicial or
administrative proceedings. In the event the Appraiser is subpoenaed for either an appearance or a request to
produce documents, a best effort will be made to notify the Client immediately. The Client has the sole responsibility
for obtaining a protective order, providing legal instruction not to appear with the report and related work files, and
will answer all questions pertaining to the assignment, the preparation of the report, and the reasoning used to
formulate the opinion of value. Unless paid in whole or in part by the party issuing the subpoena or by another party

Standard Assumptions and Limiting Conditions Page
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
of interest in the matter, the Client is responsible for all unpaid fees resulting from the appearance or production of
documents regardless of who orders the work.
13) Client shall not disseminate, distribute, make available or otherwise provide any Analysis Report prepared hereunder
to any third party (including without limitation, incorporating or referencing the Report , in whole or in part, in any
offering or other material intended for review by other parties) except to (a) any third party expressly acknowledged
in a signed writing by Appraiser as an “Intended User” of the Report provided that either Appraiser has received an
acceptable release from such third party with respect to such Report or Client provides acceptable indemnity
protections to Appraiser against any claims resulting from the distribution of the Report to such third party, (b) any
third party service provider (including rating agencies and auditors) using the Report in the course of providing
services for the sole benefit of an Intended User, or (c) as required by statute, government regulation, legal process,
or judicial decree. In the event Appraiser consents, in writing, to Client incorporating or referencing the Report in
any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise
make such materials available to any such parties unless and until Client has provided Appraiser with complete
copies of such materials and Appraiser has approved all such materials in writing. Client shall not modify any such
materials once approved by Appraiser. In the absence of satisfying the conditions of this paragraph with respect to
a party who is not designated as an Intended User, the receipt of a Report by such party shall not confer any right
upon such party to use or rely upon such report, and Appraiser shall have no liability for such unauthorized use or
reliance upon such report. In the event Client breaches the provisions of this paragraph, Client shall indemnify,
defend and hold Appraiser, and its affiliates and their officers, directors, employees, contractors, agents and other
representatives (Appraiser and each of the foregoing an “Indemnified Party” and collectively the “Indemnified
Parties”), fully harmless from and against all losses, liabilities, damages and expenses (collectively, “Damages”)
claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach,
regardless of any negligence on the part of any Indemnified Party in preparing the Report.

Certification Page
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
CERTIFICATION
I certify that, to the best of my knowledge and belief:
1.
The statements of fact contained in this report are true and correct.
2.
The reported analyses, opinions, and conclusions are limited only by the reported assumptions
and limiting conditions and are my personal, impartial, and unbiased professional analyses,
opinions, and conclusions.
3.
I have no present or prospective interest in the property that is the subject of this report and no
personal interest with respect to the parties involved with this assignment.
4.
I have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
5.
My engagement in
this
assignment was
not contingent upon
developing or reporting
predetermined results.
6.
My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
7.
This appraisal assignment was not based upon a requested minimum valuation, a specific
valuation, or the approval of a loan.
8.
My analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice, as well as the
requirements of the state of Arizona.
9.
The reported analyses, opinions, and Value Indications were developed, and this report has
been prepared, in conformity with the requirements of the Code of Professional Ethics, the
Standards of Professional Practice of the Appraisal Institute.
10. The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
11. As of the date of this report, Stephen L. Mastorakos, MAI has
completed the continuing
education program for Designated Members of the Appraisal Institute.
12. Stephen L. Mastorakos, MAI has made a personal inspection of the property that is the subject
of this report.
13. No one provided significant real property appraisal assistance to the person signing this
certification.
14. Stephen L. Mastorakos, MAI has not provided services, as an appraiser or in any other capacity,
regarding the property that is the subject of this report within the three-year period immediately
preceding the agreement to perform this assignment.
Stephen L. Mastorakos, MAI
AZ Certified General Appraiser
License #: 30446
602-648-8600
smastorakos@bbgres.com

SERVICES
Valuation
+ Single Asset Valuation
+ Portfolio Valuation
+ Institutional Asset Valuation
+ Appraisal Review
+ Appraisal Management
+ Lease and Cost Analysis
+ Insurance Valuation
+ Arbitration & Consulting
+ Feasibility Studies
+ Highest and Best Use Studies
+ Evaluation
+ Investment analysis
+ Tax appeals
+ Litigation Support
+ Manufactured Housing and Campgrounds
Advisory
+ ASC 805 Business combinations
+ ASC 840 Leases
+ Purchase Price Allocations
+ Portfolio Valuations for reporting net
asset values (NAV)
+ Public and non-traded REIT valuations
+ Valuations for litigation and
litigation support
+ Sale-leaseback valuation analysis
+ Valuations for bankruptcy/fresh
start accounting
+ Cost segregation analysis
Assessment
+ Environmental due diligence
+ Building Services
+ Construction Risk Management
+ HUD
+ Energy Efficiency Services
+ Land Surveying
+ Zoning
BBG OVERVIEW
BBG is one of the nation’s largest real estate services firms
with more than 45 offices across the country serving more
than 4,500 clients. We deliver best-in-class valuation,
advisory and assessment services with a singular focus of
meeting our clients’ needs.
Our professional team offers broad industry expertise and
deep market knowledge to help clients meet their objectives
throughout the real estate life cycle.
BBG clients include commercial real estate professionals,
investors, lenders, attorneys, accountants and corporations.
THE BBG DIFFERENCE
National Footprint. BBG is one of only two national firms
offering in-house valuation and environmental and property
condition assessment services for all commercial property types.
Customer-focused Growth. BBG is one of the largest national
due diligence firms because we deliver best-in-class work
product and provide excellent customer care.
Qualified Team. Over 50 percent of BBG appraisers are MAI
designated and offer deep industry expertise gained through
real-world experience.
Unbiased Independence. By focusing exclusively on
due diligence services, BBG guarantees an independent
perspective free from potential conflicts of interest.
Innovative Technology. BBG has made significant analytics
and IT investments to continually improve our data and
report quality.
For more information, please visit www.bbgres.com
Company Overview

Addenda
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
ADDENDA
Glossary ................................................................................................................................................................. A
Letter of Engagement ............................................................................................................................................ B
Property Description and Prelim Budget ................................................................................................................ C
Appraiser Qualifications and Licenses ................................................................................................................... D


Addenda
PROPOSED MODULAR BUILDING ANALYSIS
COPYRIGHT © 2024 BBG, INC. ALL RIGHTS RESERVED.
GLOSSARY

Appraisal: (noun) the act or process of developing an opinion of value; an
opinion of value. (adjective) of or pertaining to appraising and related functions
such as appraisal practice or appraisal services.7
Appraisal Practice: valuation services performed by an individual acting as an
appraiser, including but not limited to appraisal and appraisal review.7
Appraisal Review: (noun) the act or process of developing an opinion about the
quality of another appraiser’s work (i.e., a report, part of a report, a workfile, or
some combination of these), that was performed as part of an appraisal or
appraisal review assignment, (adjective) of or pertaining to an opinion about the
quality of another appraiser’s work that was performed as part of an appraisal
or appraisal review assignment.7
Appraiser: one who is expected to perform valuation services competently and
in a manner that is independent, impartial and objective.7
Appraiser’s Peers: other appraisers who have expertise and competency in a
similar type of assignment.7
Assessed Value: The value of a property according to the tax rolls in ad valorem
taxation; may be higher or lower than market value, or based on an assessment
ratio that is a percentage of market value. 1
Asset:
1.
Any item, the rights to which may have economic value, including
financial assets (cash or bonds), business interests, intangible
assets (copyrights and trademarks), and physical assets (real estate
and personal property).
2.
In general business usage, something owned by a business
and reflected in the owner’s business sheet.
Asset: A resource controlled by the entity as a result of past events and from
which future economic benefits are expected to flow to the entity. 2
Assignment: a valuation service that is provided by an appraiser as a
consequence of an agreement with a client.7
Assignment Conditions: Assumptions, extraordinary assumptions, hypothetical
conditions, laws and regulation, jurisdictional exceptions, and other conditions
that affect the scope of work.7
Assignment Elements: Specific information needed to identify the appraisal or
appraisal review problem: client and any other intended users, intended use of
the appraiser’s opinions and conclusions, type and definition of value; effective
date of the appraiser’s opinions and conclusions; subject of the assignment and
its relevant characteristics; and assignment conditions.7
Assignment Results: An appraiser’s opinions or conclusions, not limited to
value, that were developed when performing an appraisal assignment, an
appraisal review assignment, or a valuation service other than an appraisal or
appraisal review.7
Bias: a preference or inclination that precludes an appraiser’s impartiality,
independence, or objectivity in an assignment.7
Business Enterprise: an entity pursuing an economic activity.7
Business Equity: the interests, benefits, and rights inherent in the ownership of
a business enterprise or a part thereof in any form (including, but not necessarily
limited
to,
capital
stock,
partnership
interests,
cooperatives,
sole
proprietorships, options, and warrants).7
Capital Expenditure: Investments of cash (or the creation of liability) to acquire
or improve an asset, e.g., land, buildings, building additions, site improvements,
machinery, equipment; as distinguished from cash outflows for expense items
that are normally considered part of the current period’s operations. Also
referred to as Cap Ex.1
Cash Equivalency Analysis: An analytical process in which the sale price of a
transaction with nonmarket financing or financing with unusual conditions or
incentives is converted into a price expressed in terms of cash or its equivalent.1
Client: the party or parties (i.e., individual, group or entity) who engage an
appraiser by employment or contract in a specific assignment, whether directly
or through an agent.7
Condominium Ownership: A form of fee ownership of separate units or portions
of multiunit buildings that provides for formal filing and recording of a divided
interest in real estate.1
Confidential Information:
1: information that is either:
•
Identified by the client as confidential when providing it to a
valuer and that is not available from any other source, or
•
Classified as confidential or private by applicable law or
regulation.
2: Information that is either
•
Identified by the client as confidential when providing it to an
appraiser and that is not available from any other source; or
•
Classified as confidential or private by applicable law or
regulation *
•
NOTICE: For example, pursuant to the passage of the Gramm-
Leach-Bliley Act in November 1999, some public agencies
have adopted privacy regulations that affect appraisers. The
Federal Trade Commission (FTC) issued two rules. The first
rule (16 CFR 313) focuses on the protection of “non-public
personal information” provided by consumers to those
involved in financial activities “found to be closely related to
banking or usual in connection with the transaction of
banking.” These activities include “appraising real or personal
property.” The second rule (16 CFR 314) requires appraisers
to safeguard customer non-public personal information.
Significant liability exists for appraisers should they fail to
comply with these FTC rules. 7
Cost: the actual or estimated amount required to create, reproduce, replace
or obtain a property.7
Cost Approach: A set of procedures through which a value indication is derived
for the fee simple interest in a property by estimating the current cost to
construct a reproduction of (or replacement for) the existing structure,
including an entrepreneurial incentive, deducting depreciation from the total
cost, and adding the estimated land value. Adjustments may then be made to
the indicated fee simple value of the subject property to reflect the value of
the property interest being appraised. 1
Credible: worthy of belief.7
Deferred Maintenance: Items of wear and tear on a property that should be
fixed now to protect the value or income-producing ability of the property,
such as a broken window, a dead tree, a leak in the roof, or a faulty roof that
must be completely replaced. These items are almost always curable.1
Disposition Value: The most probable price that a specified interest in real
property should bring under the following conditions: 1) Consummation of a
sale within a specific time, which is short than the typical exposure time for
such a property in that market. 2) The property is subjected to market
conditions prevailing as of the date of valuation. 3) Both the buyer and seller are
acting prudently and knowledgeably. 4) The seller is under compulsion to sell.
5) The buyer is typically motivated. 6) Both parties are acting in what they
consider to be their best interests. 7) An adequate marketing effort will be made
during the exposure time. 8) Payment will be made in cash in U.S. dollars (or
the local currency) or in terms of financial arrangements comparable thereto. 9)
The price represents the normal consideration of the property sold, unaffected
by special or creative financing or sales concessions granted by anyone
associated with the sale. This definition can also be modified to provide for
valuation with specified financing terms. 1
Economic Life: The period over which improvements to real estate
contribute to property value. 1
Effective Date: the date to which the appraiser’s analysis, opinions and
conclusions apply, also referred to as date of value.7
Effective Gross Income Multiplier (EGIM): The ratio between the sale price
(or value) of a property and its effective gross income.1
Effective Rent: Total base rent, or minimum rent stipulated in a lease, over
the specified lease term minus rent concessions, the rent that is effectively
paid by a tenant net of financial concessions provided by a landlord. 1
Exposure Time: an opinion, based on supporting market data, of the length
of time that the property interest being appraised would have been offered
on the market prior to the hypothetical consummation of a sale at the
market value on the effect date of the appraisal.7
Extraordinary Assumption: an assignment-specific assumption as of the
effective date regarding uncertain information used in an analysis which, if
found to be false, could alter the appraiser’s opinions or conclusions.7

Fair Market Value:
1.
In nontechnical usage, a term that is equivalent to the contemporary
usage of market value.
2.
As used in condemnation, litigation, income tax, and property tax
situations, a term that is similar in concept to market value but may be
defined explicitly by the relevant agency. For example, one definition of
fair market value provided by the Internal Revenue Service for certain
purposes is as follows: The price at which the property would change
hands between a willing buyer and a willing seller, neither being under
any compulsion to buy or to sell and both having reasonable knowledge
of relevant facts. The fair market value of a particular item of property
includible in the decedent’s gross estate is not to be determined by a
forced sale price. Nor is the fair market value of an item of property to
be determined by the sale price of the item in a market other than that
in which such item is most commonly sold to the public, taking into
account the location of the item wherever appropriate. (IRS Regulation
§20.2031-1) 1
Fair Share:
1.
A share of a fund or deposit that is divided or distributed proportionately.
2.
A share of a burden or obligation that is divided proportionately; e.g., a
tenant in a multitenant building or development may be required to pay
a pro rata share of the building’s operating expenses based on the
number of square feet the tenant occupies. In a shopping center, the
tenant’s share of operating costs is often stated as a fraction, with the
gross leasable area of the tenant’s premises as the numerator and the
gross leasable area or gross leased area of the entire shopping center as
the denominator.
3.
The share of a trade area that a retail facility is likely to capture; assumes
that capture is a function of property size as a proportion of the overall
inventory of competitive space in the trade area, i.e., that the facility
captures a “fair share” of the trade area.1
Fair Value:
1. The price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date. (FASB)
2.
The estimated price for the transfer of an asset or liability between
identified knowledgeable and willing parties that reflects the
respective interests of those parties. (This does not apply to
valuations for financial reporting.) (IVS).1
3.
The price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date.2
Feasibility Analysis: a study of the cost benefit relationship of an economic
endeavor.1
Fee Simple Estate: Absolute ownership unencumbered by any other interest
or estate, subject only to the limitations imposed by the governmental
powers of taxation, eminent domain, police power, and escheat. 1
Floor Area Ratio (FAR): The relationship between the above-ground floor
area of a building, as described by the zoning or building code, and the area
of the plot on which it stands; in planning and zoning, often expressed as a
decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a
building is twice the total land area. 1
Going Concern:
1.
An established and operating business having an indefinite future life.
2.
An organization with an indefinite life that is sufficiently long that, over
time, all currently incomplete transformations [transforming resources
from one form to a different, more valuable form] will be completed. 1
Gross Building Area (GBA):
1.
Total floor area of a building, excluding unenclosed areas, measured
from the exterior of the walls of the above-grade area. This includes
mezzanines and basements if and when typically included in the market
area of the type of property involved.
2.
Gross leasable area plus all common areas.
3.
For residential space, the total area of all floor levels measured from
the exterior of the walls and including the super structure and
substructure basement; typically does not include garage space. 1
Highest and Best Use:
1. The reasonably probable use of property that results in the highest value.
The four criteria that the highest and best use must meet are legal
permissibility, physical possibility, financial feasibility, and maximum
productivity.
2. The use of an asset that maximizes its potential and that is possible,
legally permissible, and financially feasible. The highest and best use may
be for continuation of an asset’s existing use or for some alternative use.
This is determined by the use that a market participant would have in
mind for the asset when formulating the price that it would be willing to
bid. (IVS).
3. [The] highest and most profitable use for which the property is adaptable
and needed or likely to be needed in the reasonably near future. (Uniform
Appraisal Standards for Federal Land Acquisitions) 1
Hypothetical Condition: a condition, directly related to a specific assignment,
which is contrary to what is known by the appraiser to exist on the effective
date of the assignment results, but is used for the purpose of analysis.7
Income Capitalization Approach: Specific appraisal techniques applied to
develop a value indication for a property based on its earning capability and
calculated by the capitalization of property income. 1
Inspection: Personal observation of the exterior or interior of the real estate
that is the subject of an assignment performed to identify the property
characteristics that are relevant to the assignment, such as amenities, general
physical condition, and functional utility. Note that this is not the inspection
process performed by a licensed or certified building inspector. 1
Insurable Value: A type of value for insurance purposes. 1
Intangible Property (intangible Assets): Nonphysical assets, including but not
limited to franchises, trademarks, patents, copyrights, goodwill, equities,
securities, and contracts as distinguished from physical assets such as facilities
and equipment.7
Intended Use: the user(s) of an appraiser’s reported appraisal or appraisal
review assignment results, as identified by the appraiser based on
communication with the client at the time of the assignment.7
Intended User: the client and any other party as identified, by name or type,
as users of the appraisal or appraisal review report by the appraiser, based on
communication with the client at the time of the assignment.7
Internal Rate of Return (“IRR”): The annualized yield rate or rate of return on
capital that is generated or capable of being generalized within an investment
of portfolio over a period of ownership. Alternatively, the indicated
return of capital associated with a projected or pro forma income stream.
The discount rate that equates the present value of the net cash flows of a
project with the present value of the capital investment. It is the rate at which
the Net Present Value (NPV) equals zero. The IRR reflects both the return on
invested capital and the return of the original investment, which are basic
considerations of potential investors. Therefore, deriving the IRR from analysis
of market transactions of similar properties having comparable income
patterns is a proper method for developing market discount rates for use in
valuations to arrive at Market Value. Used in discounted cash flow analysis to
find the implied or expected rate of return of the project, the IRR is the rate of
return which gives a zero net present value (NPV). See also equity yield rate
(YE); financial management rate of return (FMRR); modified internal rate of
return (MIRR); yield rate (Y). 1
Investment Value: 1) The value of a property to a particular investor or class
of investors based on the investor’s specific requirements. Investment value
may be different from market value because it depends on a set of investment
criteria that are not necessarily typical of the market. 2) The value of an asset to
the owner or a prospective owner for individual investment or operational
objectives. (IVS) 1
Jurisdictional Exception: an assignment condition established by applicable
law or regulation, which precludes an appraiser from complying with a part
of USPAP.7
Leasehold Interest: The right held by the lessee to use and occupy real estate
for a stated term and under the conditions specified in the lease. 1
Leased Fee Interest: The ownership interest held by the lessor, which includes
the right to receive the contract rent specified in the lease plus the reversionary
right when the lease expires.1
Liquidation Value: The most probable price that a specified interest in real

property should bring under the following conditions: 1) Consummation of a
sale within a short time period; 2) The property is subjected to market
conditions prevailing as of the date of valuation; 3) Both the buyer and seller
are acting prudently and knowledgeably; 4) The seller is under extreme
compulsion to sell; 5) The buyer is typically motivated. 6) Both parties are
acting in what they consider to be their best interests. 7) A normal marketing
effort is not possible due to the brief exposure time 8) Payment will be made in
cash in U.S. dollars or in terms of financial arrangements comparable thereto.
9) The price represents the normal consideration for the property sold,
unaffected by special or creative financing or sales concessions granted by
anyone associated with the sale. This definition can also be modified to
provide for valuation with specified financing terms.1
Load Factor: A measure of the relationship of common area to useable area
and therefore the quality and efficiency of building area layout, with higher
load factors indicating a higher percentage of common area to overall
rentable space than lower load factors; calculated by subtracting the amount
of usable area from the rentable area and then dividing the difference by the
usable area: 1
Load Factor =
(Rentable Area – Useable Area) Usable Area
Market Value: a type of value stated as an opinion, that presumes the transfer
of a property (i.e., a right of ownership or a bundle of such rights), as of a
certain date, under specific conditions set forth in the value definition that is
identified by the appraiser as applicable in an appraisal.7
Market Value "As If Complete" On The Appraisal Date: Market value
as if complete on the effective date of the appraisal is an estimate of the
market value of a property with all construction, conversion, or
rehabilitation hypothetically completed, or under other specified
hypothetical conditions as of the date of the appraisal. With regard to
properties wherein anticipated market conditions indicate that
stabilized occupancy is not likely as of the date of completion, this
estimate of value should reflect the market value of the property as if
complete and prepared for occupancy by tenants.
Market Value "As Is" On The Appraisal Date: Value As Is -The value of
specific ownership rights to an identified parcel of real estate as of the
effective date of the appraisal; relates to what physically exists and is
legally permissible and
excludes
all assumptions
concerning
hypothetical market conditions or possible rezoning. See also effective
date; prospective value opinion.
Market Value of the Total Assets of the Business: The market value of
the total assets of the business is the market value of all of the tangible
and intangible assets of a business as if sold in aggregate as a going
concern. This assumes that the business is expected to continue
operations well into the future. 4
Marketing Time: An opinion of the amount of time it might take to sell a real
or personal property interest at the concluded market value level during
the period immediately after the effective date of an appraisal. Marketing
time differs from exposure time, which is always presumed to precede the
effective date of an appraisal. (Advisory Opinion 7 of the Appraisal Standards
Board of The Appraisal Foundation and Statement on Appraisal Standards No.
6, “Reasonable Exposure Time in Real Property Market Value Opinions”
address the determination of reasonable exposure and marketing time.). 3
Mass Appraisal: the process of valuing a universe of properties as of a given
date using standard methodology, employing common data and allowing for
statistical testing.7
Mass Appraisal Model: a mathematical expression of how supply and
demand factors interact in a market.7
Misleading: intentionally or unintentionally misrepresenting, misstating or
concealing relevant facts or conclusions.7
Net Lease: A lease in which the landlord passes on all expenses to the tenant.
See also lease. 1
Net Rentable Area (NRA): 1) The area on which rent is computed. 2) The
Rentable Area of a floor shall be computed by measuring to the inside finished
surface of the dominant portion of the permanent outer building walls,
excluding any major vertical penetrations of the floor. No deductions shall be
made for columns and projections necessary to the building. Include space
such as mechanical room, janitorial room, restrooms, and lobby of the floor.5
Penetration Ratio (Rate): The rate at which stores obtain sales from within a
trade area or sector relative to the number of potential sales generated;
usually applied to existing facilities. Also called: penetration factor.1
Personal Inspection: a physical observation performed to assist in identifying
relevant property characteristics in a valuation service.7
Personal Property: any tangible or intangible article that is subject to
ownership and not classified as real property, including identifiable tangible
objects that are considered by the general public as being “personal”, such
as furnishings, artwork, antiques, gems and jewelry, collectibles, machinery
and equipment, and intangible property that is created and stored
electronically such as plans for installation art, choreography, emails or
designs for digital tokens.7
Physical Characteristics: attributes of a property that are observable or
measurable as a matter of fact, as distinguished from opinions and
conclusions, which are the result of some level of analysis or judgement.7
Price: the amount asked, offered or paid for a property.7
Prospective opinion of value. A value opinion effective as of a specified
future date. The term does not define a type of value. Instead it identifies
a value opinion as being effective at some specific future date. An opinion
of value as of a prospective date is frequently sought in connection with
projects that are proposed, under construction, or under conversion to a
new use, or those that have not yet achieved sellout or a stabilized level of
long-term occupancy. 1
Real Estate: an identified parcel or tract of land, including improvements, if
any.7
Real Property: the interests, benefits and rights inherent in the ownership
of real estate.7
Reconciliation: A phase of a valuation assignment in which two or more value
indications are processed into a value opinion, which may be a range of value,
a single point estimate, or a reference to a benchmark value. 1
Relevant Characteristics: features that may affect a property’s value or
marketability such as legal, economic or physical characteristics.7
Reliable Measurement: [The IAS/IFRS framework requires that] neither an
asset nor a liability is recognized in the financial statements unless it has a
cost or value that can be measured reliably.2
Remaining Economic Life: The estimated period over which existing
improvements are expected to contribute eco-nomically to a property; an
estimate of the number of years remaining in the economic life of a structure
or structural components as of the effective date of the appraisal; used in the
economic age-life method of estimating depreciation. 1
Replacement Cost: The estimated cost to construct, at current prices as of the
effective appraisal date, a substitute for the building being appraised, using
modern materials and current standards, design, and layout. 1
Report: any communication, written or oral, of an appraisal or appraisal
review that is transmitted to the client or a party authorized by the client upon
completion of an assignment.7
Retrospective Value Opinion: A value opinion effective as of a specified
historical date. The term retrospective does not define a type of value. Instead,
it identifies a value opinion as being effective at some specific prior date. Value
as of a historical date is frequently sought in connection with property tax
appeals, damage models, lease renegotiation, deficiency judgments, estate
tax, and condemnation. Inclusion of the type of value with this term is
appropriate, e.g., “retrospective market value opinion.” 1
Sales Comparison Approach: The process of deriving a value indication for the
subject property by comparing sales of similar properties to the property being
appraised, identifying appropriate units of comparison, and making
adjustments to the sale prices (or unit prices, as appropriate) of the comparable
properties based on relevant, market-derived elements of comparison. The
sales comparison approach may be used to value improved properties, vacant
land, or land being considered as though vacant when an adequate supply of
comparable sales is available. 1

th
Scope of Work: the type and extent of research and analyses in an appraisal
or appraisal review assignment.7
Signature: personalized evidence indicating authentication of the work
performed by the appraiser and the acceptance of the responsibility for
content, analyses and the conclusions in the report.7
Stabilized value: A value opinion that excludes from consideration any
abnormal relationship between supply and demand such as is experienced in
boom periods when cost and sale price may exceed the long-term value, or
during periods of depression, when cost and sale price may fall short of
long-term value. It is also a value opinion that excludes from consideration any
transitory condition that may cause excessive construction costs, e.g., a
premium paid due to a temporary shortage of supply.
Substitution: The principle of substitution states that when several similar or
commensurate commodities, goods, services are available, the one with the
lowest price will attract the greatest demand and widest distribution. This is the
primary principle upon which the cost and sales comparison approaches are
based. 3
Total Assets of a Business: Total assets of a business is defined by the
Appraisal Institute as “the tangible property (real property and personal
property, including inventory and furniture, fixtures and equipment) and
intangible property (cash, workforce, contracts, name, patents, copyrights, and
other residual intangible assets, to include capitalized economic profit).”
Use Value:
The value of a property assuming a specific use, which may or may not be the
property’s highest and best use on the effective date of the appraisal. Use value
may or may not be equal to market value but is different conceptually. 1
Valuation Service: a service pertaining to an aspect of property value,
regardless of the type of service and whether it is performed by appraisers or
by others.7
Value: the monetary relationship between properties and those who buy and
sell, or use those properties, expressed as an opinion of the worth of a property
at a given time.7
Workfile: data, information and documentation necessary to support the
appraiser’s opinions and conclusions and to show compliance with USPAP.7
1Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago:
Appraisal Institute 2010). 2Appraisal Institute, International Financial Reporting
Standards for Real Property Appraiser, IFRS Website, www.ifrs-
ebooks.com/index.html. 3Appraisal Institute, The Appraisal of Real Estate, 13th
ed. (Chicago: Appraisal Institute 2008). 4 This definition is taken from
“Allocation of Business Assets Into Tangible and Intangible Components: A New
Lexicon,” Journal of Real Estate Appraisal, January 2002, Volume LXX, Number
1. This terminology is to replace former phrases such as: value of the going
concern. 5Financial Publishing Company, The Real Estate Dictionary, 7 ed. 6
U.S. Treasury Regulations. 7USPAP 2020-2021

June 7, 2024

Report Type:
Report Format:
Fee:
Retainer:
Payment Terms:
Payment Options:
Consultation
Narrative
$3,000
Please indicate below who is responsible for payment:
Email:
Signature:
None
Wire Payment/ACH Information Below:
Bank of America
Acct#: 488038497058
Wire Payment Routing#: 026009593
ACH Payment Routing#: 111000025
Balance is due and payable upon delivery of the final
report or within 30 days of your receipt of our draft
report, whichever is sooner.
If a draft report is
requested, the fee is considered earned upon delivery
of our draft report. Fee quoted includes all expenses
•
Credit card (a 3% fee is applied) which is the
quickest payment method to verify.
•
Wire or ACH payment which are the second
quickest
payment
methods.
See
below
information for sending the wire or ACH
•
A check mailed to BBG, Inc., 8343 Douglas
Avenue, Suite 700, Dallas, TX 75225 - This
method is the slowest option as it takes time to
receive, process and confirm the funds.

June 7, 2024

We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please
contact us.
As Agent for BBG, Inc.
Barott G. Hurd
Director
Valuation
2850 E. Camelback Road Suite 330, Phoenix, AZ
85016
P
480-867-7440 C 602-549-8870
E
bhurd@bbgres.com
Date

ITEM#6
New ModufarAdministr:ation BuUding tor BookerT.
·Washington Head Start
location: 1525 East A.dams .Street, Phoenixt Arizona 85034. The
site is located :approximately at the crossroads of North
1 attt Street and .East Wast1ington street It is
conveniently located one haff mile from the 51 fre·eway
and; interstate 1 o is about one mile north of the
property,_ Oowntown Phoenix is approximately 2 mtles
to the West of the site.
Size:
The p.rop.erty i$ appruximatefy 7 .889 square feet of land
or about .1'8 a:eres. The 8uilding size is appfQXim.ately
2,592 square teat (38 feet by 72 feet).
:z,n1irt!l= Zoning for this property is R5 ioning and. an
administrative use is allowed per City of Phoe.nix
Zoning Ordin11noef Section 61ltD.15 & 18.
Location
On S·ite: New modufar building will be located to the rear of the
site to provide rc,om for outside break and meeting
spaceΘ See Site Plan - attached.
SuitdiM.g
Specs:
The new adn,inistretion building wi:fl be a modular
buitdin9 ap.proximatΙly 2i582 square feet and will be
built per the rules and regulations of the State Flre
MarshalPs offi.ce and the State. ofArizona's Office of
Manufacturing Housin.g. Fire jurisdiction is the City of
Phoenix. and the Zorring. ordinance allows an

administration building to be located on the property.
ihe building occupation is a B type occupancy or
c:ldministrative offices.

The bwilding will contain an automatic fire sprinkler
syatem as required by the City of Phoenix and will be
supplemented with a, class 'A' fire alann system andfire
extinguishers per the NFPA code.
Thi;s building will be considered HModular construction"
whi'ch sirnpty is an offsite buitding process iM which
prefabricated f'modules:' are buHt in
controlled
warehouse or faetoӜ-like, enVironment. Once
comptetedy "fabricated, the: individual modules are
constructed and tr:ansported to the constructioM site.
Structure wm be a steel and wood framing system and
the roof trusses ate typically wood pre-fabrrcated
trusses. Rctof i's sne,athed in particle board or plywood
and
bitumen layer is applied with a finished top coat.
Floor is wood or steel trusses and sheathed in plywood
or tongue and groove wood flooring planks. The walls
are made of panels and posts type construction that are
manufactured using a lightweight inner core and a fiber
cement exterior skin. The Energy Panel Structures,
(EPS) inner core works to absorb sound vibrations
thereby red1.1cing norse pollution and ls required under
the current t BO code for energy efficiency. It also offers
the wan its form and functions to increase rigidity and
absorb sound.
The Exterior can be painted or ap,plied with faux stone,
brick or stucco and the interior can be painted a.nd
various finishes can be applied per the clienf s needs,

All Electrical power including panԖls, swibԗb :gear Ԙltld
Service Entrance Section (SES) are included. Exterior
SES and panels will be fully operational and lockable.
All outlets, lighting and electrical wiring $halt be
designed and installed per current electrical code and
are included in the price of the modular unit. Design of
system will be bq"$ed or. supply iJ1d power
requirements Of Ltser.
Data and internet connectivity can be pre-wired or
installed ln the field. Plumt>ing $ystems, Le:.ԙ toilets,
sinks are instaUed per IB·e codes and all toilet rooms in
the City of Phoenix are constructed to American with
Disabilities (ADA} accessibility de,sign. AU toilet rooms
and countertops; 1hall t>e ADA compliant ino1uding
necessary grab bars heights, clearances and reach
$pecifica,tions 1nciud i ng .AOA signaijle and. bra ii I e
information.
The Modular Building will have a complete automatic
fire sprinkler system and a complete Cla$S ԚA1 fire alarm
system p.er NF':P.A regub;J{ions. The building will cont.ain
a full operatable HVAC system with climate controls
and associated duct run$ and diffusers, including,
supptyԛ ,return ;artd removable A/Cfilters. Th.ese units
can be attached to the end of the building or mounted
on the roof. Typically, the unit is a heat pump or a fan
coil unit'With a remote CQ.l1denser.
Water and sewer connections will be engineered and
designed by .a regis.tered Civil Engineer and :permitted
by the City :of Phoeof.x Enginearing/BԜUԝing Safety
Department.
Atl ,,eriscape' landsttaping and ground treatmettts will'
be by a registered Architect or Landscape Architect and

permi:tted
tbe City of Phoenix Bui ng Safety
Department. Sidewalks and other hardscape
treatments will be designed and permitted by the
ltbove--ro,entiooed disciplines.
•
Since this site is small and within the confines of the
uinner d.ty" nei,ohborhoad, the city; will not reQ

extensive gract ng
drainage but wm req:ui
a '
1Fltst
Flush" grading which channels aH water on the site,
away from the building to a small retention area.
Parking i:s
ready adjacent
the site and can be
utilized by the new modular building. Approved ADA
accessible spaces
acUacent to the new building and
accesislbte wallways wUJ be part .of the new
construction.
The new modt.Jlt;lt consirtJѯtion ihaU be fuUy enclosed
with
siѰ-foot ... high waH constructed of ornamental iron
and masonry. Ornamental Iron Gates with self-closing
aevice,s and fire1 department Knox Boxes (locks) are
tnclude:cl.
Site lighting will be provided per City of Phoenix
Building Safety t).epartment a
the
of Phoenix:
Police Safe Building Rules.
ite lighting will
attached to the upper portions of the building and be a
dawn to dusk rnotj.on sensor light ctesign sy1stem.
Signage will be designed and conform to all City of
Phoenix Signage ordinance and interior signage will be
suppѱ
per .wser re<;t1iremenfs.
Interior finishes 1 floors, paint, cabinets and countertops
wiU be selected from. several colors and patterns. All
i ntѲdor materials shaft have a Flame spread 'tatings

range from an ;index of 0-25, with Class A being the
best with atn index nf oш.2:5. ,Cari)Jet will be cleanable
and replaceable with carpet squares being preferred.
Fire extinguishers are per NFPA and .shall be wall or
cabinet mounted.
Layout:
The new modufar administration building will have the
following rooms and areas:
• Office;S approximately 1 feet щ 1 feet = 144
square feet- total of four (4).
11 Offiees approximately 1 0 feet X: 1 feet ;::: 100
square feet- total of two (2}.
• Conference room approximately 12 feet x 18 feet
.;:::· 216 square feet ..... total of one ( 1 ).

• Teach er Break/Work Room approximately 12 feet
x 1 feet = 144 square feet- tota I of one ( 1 ) .
• Open Office/Work/Copy area approximately 10.5
feet x
feet = 1 0 square feet- total of one ( 1 ).
• Classroom/Qbservati:Qn Room approximately 12
feet x 24 feet= 288 square feet- total of one (1 ).
• Rec6ption:/WaHing Area approximately 10 feet x
20 feet= 200 square feet- total of one (.1 ).
• IT Room approximately 4.5 feet x 8 feet,= 36
square feet- total of one (1 ) .
■Janitor's closet with mop sink, mop holder, 1 0
gallQri mtni-Water Heater :and stacked
Washer/Dryer unit - approximately 5.5 feet x 12
feet= 86 square· feet-- total of one (1).
• ADA Toiletъ appro".imately a feet
feet= 64
square feet- total of two (2).
Tatar square footage including circulation space=
2,592 square fee;t . see plan -- ;attaefledы

Preliminary Design
Site Plan Design
City of Phoenix
Site Plan Review
Design & Engineering of
Modular Bulld!ng
City of Phoenix
Plan Review & Permitting
Construction
Modular Construction
Site Construction
Design & Construction Schedule for
Booker T. Washington
New Modular Administration Building
r---, 2 Weeki
i
f:,.,,c;>.J
r • • •
• "'"'
• 'lj SWeekli
,, .. > ""'"l "''"""'"
.p&,:t*•='·M,m! s WHk•
AZ Dept of housing NO\f\/ requires plan review on building which is a 45
working day review (FR<PM a full set submittal) and a plan review process
on installation that is a O day Porking day reQiRS.!Tom a full set submittal)
4.5 Weeks
:,c;;:;,; '!/i;'iii:,,"-";c,,,'.,I•;,,:c:•2:-"' i':"'·"'"··•::""c.c;:; . ,<v:vt..-,h:;, ,., ,,,::,_:;_::, s:;-..,:.'?•-':yJ:·'•:•;>::\:>: .. •,r> .. r<,c;;..,,· :,,: 20 Wffks
----.-
)
,.

Stephen L Mastorakos MAI
Senior Appraiser
Work: 480-867-7444
smastorakos@bbgres.com
Profile
Stephen Mastorakos is a senior appraiser at BBG working out of the Scottsdale, Arizona, office. Mr. Mastorakos has
been engaged with the appraisal of commercial real estate throughout the southwestern United States since 1983,
with significant experience in single-family residential appraisal prior to that. He has been a member of the Appraisal
Institute since 1991 and has been a licensed real estate agent in Arizona since 1983. With over 40 years of combined
real estate appraisal experience, his scope of competency extends across a broad range of asset types and
assignment conditions.
Mr. Mastorakos began his appraisal career in St. Louis, Missouri, before moving to San Diego, California, and
eventually Phoenix, Arizona in 1983. Since then, he has performed appraisals throughout the State of Arizona, as
well as numerous other states, and is experienced with a large variety of property types, including specialty
properties such as schools, churches and assisted living homes and facilities. His client profile includes financial
institutions, property owners, life insurance companies, legal firms, and governmental agencies.
Mr. Mastorakos has been a registered certified general real estate appraiser in the State of Arizona since 1991.
Professional Affiliations
Appraisal Institute
Member, MAI distinction
Certified General Real Estate Appraiser:
State of Arizona (License No. 30446)
Education
BBA, Finance Major, Southern Methodist University, Dallas, TX
Undergraduate work, University of Kansas, Lawrence, KS

Expiration Date :