Cascade Heights Campus Appraisal 2024. Property Description.pdf

CASCADE HEIGHTS CAMPUS

15301 SE 92nd Ave

Clackamas, Oregon 97015

APPRAISAL REPORT

Date of Report: May 31, 2024

Colliers File #: PDX240337

Client File #: H3S-05-13-2024-01

PREPARED FOR

Cindy Becker Clackamas County 2051 Kaen Road Oregon City, OR 97045

PREPARED BY

COLLIERS INTERNATIONAL

VALUATION & ADVISORY SERVICES

EXECUTIVE SUMMARY

TABLE OF CONTENTS

PDX240337

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GENERAL INFORMATION

Property Name

Property Type

Address

City Clackamas

State Oregon

Zip Code 97015

County Clackamas

Core Based Statistical Area (CBSA) Portland-Vancouver-Hillsboro, OR-WA

Market Portland MSA

Submarket Clackamas/Milwaukie

Latitude 45.412172

Longitude -122.569904

Number Of Parcels 1

Assessor Parcel

Total Taxable Value $0

Census Tract Number 221.08

SITE INFORMATION

Land Area Acres Square Feet

Usable 6.63 288,803

Unusable 0.00 0

Excess 0.00 0

Surplus 0.00 0

Total 6.63 288,803

Topography Level at street grade

Shape Irregular

Access Average

Exposure Average

Current Zoning

Flood Zone Zone X (Unshaded)

IMPROVEMENT INFORMATION

Gross Building Area SF (GBA) 44,699 SF

Net Rentable Area (NRA) 44,699 SF

Total Number Of Stories 1 Plus Basement

Year Built 1939, 1959 & 2002

Quality Fair

Condition Fair

Type Of Construction Concrete and wood frame

Land To Building Ratio 6.5 : 1

Site Coverage Ratio 15.5%

Parking Type Surface

Number of Parking Spaces 32

Parking Ratio (Spaces/1,000SF NRA) 0.7/1,000 SF NRA

Cascade Heights Campus

High Density Residential and Open Space

00473428

15301 SE 92nd Ave

Special Purpose - School/University

HIGHEST & BEST USE

As Vacant

As Proposed

EXPOSURE TIME & MARKETING PERIOD

Exposure Time 18 to 24 Months

Marketing Period 18 to 24 Months

Interim Use As Improved Until Multi-Family

Redevelopment Is Feasible

Hold For Multi-Family Development When Market

Conditions Improve

PROPERTY & ASSIGNMENT OVERVIEW

TABLE OF CONTENTS

CONTINUED PDX240337

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AERIAL PHOTOGRAPH

COMPARABLE KEY

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SUBJECT PHOTOGRAPHS

LOOKING NORTHWEST AT SCHOOL

LOOKING NORTHEAST AT SCHOOL

LOOKING SOUTHWEST AT SCHOOL

LOOKING SOUTHWEST AT SCHOOL

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MAIN LOBBY

SECRETARY OFFICE

ADMINISTRATION AREA

GYMNASIUM

COMMERCIAL KITCHEN

TYPICAL CLASSROOM

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LIBRARY

LIBRARY

CAFETERIA

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UTILITY BASEMENT AREA

UTILITY BASEMENT AREA

OUTDOOR PLAY AREA

LOOKING WEST ON SE TOLBERT ST

LOOKING NORTH ON SE 92ND AVE

LOOKING SOUTH ON SE 92ND AVE

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REGIONAL MAP

COMPARABLE KEY

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LOCAL AREA MAP

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PLAT MAP

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ZONING MAP

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FLOOD MAP

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SITE DESCRIPTION

General Description The subject site consists of 1 parcel. As noted below, the subject site has 288,803

SF (6.63 AC) of land area. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements.

Accessibility Average - The accessibility of the subject is rated as average. The subject is accessed from two connector streets, with access from SE 92nd Ave and SE

Tolbert St. in a largely residential area.

Exposure Average - The subject has average exposure, as it is located along two connector streets. The project's exposure rating takes into account its average visibility in a largely residential area.

Flood Zone Zone X (Unshaded). This is referenced by Community Number 415588, Panel

Number 410051C0037D, dated June 17, 2008. Zone X (unshaded) is a moderate and minimal risk area. Areas of moderate or minimal hazard are studied based upon the principal source of flood in the area. However, buildings in these zones could be flooded by severe, concentrated rainfall coupled with inadequate local drainage systems. Local stormwater drainage systems are not normally considered in a community’s flood insurance study. The failure of a local drainage system can create areas of high flood risk within these zones. Flood insurance is available in participating communities, but is not required by regulation in these zones. Nearly 25-percent of all flood claims filed are for structures located within these zones. Minimal risk areas outside the 1-percent and .2-percent-annual-

Assessor Parcel

Number Of Parcels 1

Land Area Acres Square Feet

Primary Parcel 6.63 288,803

Unusable Land 0.00 0

Excess Land 0.00 0

Surplus Land 0.00 0

Total Land Area 6.63 288,803

Shape Irregular - See Plat Map For Exact Shape

Topography Level at street grade

Drainage Assumed Adequate

Utilities All available to the site

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Street Improvements Street Direction No. Lanes Street Type C u rb s S id ew al ks S tr ee tli g h ts

C en te r L an e G u tte rs

SE 92nd Ave Primary Street two-way two-lane connector street ✓ ✓

SE Tolbert St Secondary Street two-way two-lane connector street ✓ ✓

Frontage Approximately 416 feet along SE Tolbert St and 520 feet along SE 92nd Ave

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chance floodplains. No BFEs or base flood depths are shown within these zones.

(Zone X (unshaded) is used on new and revised maps in place of Zone C.)

Site Rating Overall, the subject site is considered an average multi-family site in terms of its location, exposure, and access to employment, education and shopping centers, recognizing its location along two connector streets in a largely residential neighborhood.

Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised.

Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements.

Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. It is noted that lead and asbestos has been detected in some of the building materials. This is somewhat common for buildings of this vintage and the levels are generally safe though may add to the demolition costs. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and

Limiting Conditions for a full disclaimer.

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MAIN FLOOR PLAN

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UTILITY BASEMENT FLOOR PLAN

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IMPROVEMENT DESCRIPTION

The information presented below is a basic description of the existing improvements using sources deemed dependable for this analysis. It is assumed that there will be no hidden defects, and that all structural components will be functional and operational, unless otherwise noted.

Year Built 1936, 1950 and 2002

Foundation Concrete perimeter wall

Exterior Walls Concrete, wood and glass

Roof Pitched roofing with a composition shake cover and built-up roofing

Insulation Assumed to be in conformance with the building code

Plumbing Adequate for a school building and assumed to code with ample single and multi-user restrooms and a commercial grade kitchen.

Heating Forced air, gas-fired, boiler system

Electrical Adequate for general classroom/office utility, assumed to be to code

Lighting A mix of suspended and recessed fluorescent lighting in the classrooms and offices. The gymnasium has standard gym lighting.

Ceilings Primarily acoustical tiles and painted sheetrock and exposed truss in the cafeteria and gymnasium

Interior Walls Primarily taped, textured and painted sheetrock with some wood walls.

Property Type Special Purpose - School/University

Design Single-Tenant

Number of Buildings 1

Number of Stories 1 Plus Basement

Net Rentable Area (NRA) 44,699 SF

Gross Building Area (GBA) 44,699 SF

Site Coverage Ratio 15.5%

Land to Building Ratio 6.5 : 1

Parking 32 (Surface) 0.7/1,000 SF NRA

Year Built 1939, 1959 & 2002

Age/Life Analysis

Actual Age 22-85 Years

Effective Age 40 Years

Economic Life 45 Years

Remaining Life 5 Years

Quality Fair

Condition Fair

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Flooring A mix of ceramic tile (restrooms), carpet (hallways), vinyl squares (classrooms), and hardwood (gymnasium). The tile and hardwood are in average condition for the age of the improvements; the carpet and vinyl are worn.

Windows Single and double pane windows in wood and metal frames. Some windows have been periodically replaced.

Doors The exterior and interior doors are primarily wood and glass doors in wood frames;

several have windows. The main entrance and gym entrance each have multiple sets of doors.

Stairways There are interior stairways accessing the utility basement and providing transitions from one building section to another.

Fire System The building is not protected by a sprinkler system but has smoke alarms.

Landscaping Asphalt paving, concrete sidewalks, concrete curbing, pole mounted lights and native grass landscaping

Parking The subject has a small parking lot with approximately 32 delineated parking spaces and is accessed from SE Tolbert St.

Layout The school has an entrance and office areas and has classrooms to the south and west. The cafeteria and commercial grade kitchen are to the west and the gymnasium and library are to the south. The lower level has low ceiling heights and limited build out and is not included in the NRA.

Deferred Maintenance The ownership has conducted a property assessment report that identified deferred maintenance items such as repainting exterior, all wood siding replacement with dry rot present, portions of the roof demonstrating previous water penetration and at the end of its useful life with dry rot noted in the in the roof sheathing, roof venting in poor condition, single pane windows that to be replaced, hollow metal original doors at the end of their useful life and to be replaced, rear metal doors rusted and to be replaced, carpeting heavily worn and to be replaced, non-functioning plumbing fixtures to be replaced, failing and cracked support beams which need replacement and lead based paint and asbestos also detected on site. While an estimate or bids have not been obtained there is considerable deferred maintenance present which negatively impacts the improvements and to cure these items would not be substantial and limit the continued long term feasibility of the facility as improved.

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ASSESSMENT & TAXATION

The subject property is located within the Clackamas County municipality. The assessed value and property tax for the current year are summarized in the following table.

Subject Property Analysis

The total assessment for the subject property is $6,961,617. The subject property benefits from an exemption in the amount of $6,961,617. Total taxes for the property are $0.00.

The subject is currently tax exempt because of its church and school designation. Per Oregon Revised Statute

307.140:

Schools, academies, student housing and childcare facilities owned or being purchased by incorporated religious or charitable organizations may qualify for a property tax exemption. A private school may qualify for exemption provided the school is charitable. Property must be used for accredited educational purposes. Childcare facilities must be certified by the Employment Department.

In Oregon, Measure 50 was passed in the May 20, 1997 special election. This measure establishes the maximum assessed value of property in Oregon for the 1997/1998 tax year as 90% of the property’s real market value in the 1995/96 tax year. Any increases in assessed value for tax years following 1997/1998 are limited to 3% per year. Assessed value will be adjusted for new property or property improvements and certain other events.

Certain local option taxes are permitted, if approved by voters. Measure 50 retains the existing total property tax rate for all property taxes, including local option taxes but excluding taxes for bonds at $5 per $1,000 of value for schools and $10 per $1,000 of value for non-school government.

ASSESSMENT & TAXES

Tax Year 2023/2024 Tax Rate N/A

Tax Rate Area 12051 Taxes Current Yes

Taxes SF Basis

APN LAND IMPV TOTAL EXEMPTIONS TAXABLE BASE TAX

00473428 $1,301,637 $5,659,980 $6,961,617 $6,961,617 $0 $0

Totals $1,301,637 $5,659,980 $6,961,617 $6,961,617 $0 $0

Total/SF $29.12 $126.62 $155.74 $155.74 $0.00 $0.00

Source: Clackamas County Assessment & Taxation

Net Rentable Area

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ZONING ANALYSIS

The zoning characteristics for the subject property are summarized below:

The subject is currently zoned High Density Residential (HRD) and Open Space Management (OSM). As a scope requirement the client Clackamas County conveyed that the property areas currently zoned OSM would be rezoned consistent with the larger parcel if redeveloped. We have assumed that this rezoning could be achieved within the forecasted five-year hold period.

The subject’s HDR zoning allows for a density ranging from 22-32 units per net acre.

Zoning Conclusions

Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of our analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through our due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment.

ZONING SUMMARY

Municipality Governing Zoning Clackamas County Planning & Zoning

Department

Clackamas County Planning & Zoning

DepartmentCurrent Zoning Open Space Management (OSM) High Density Residential (HDR)

Permitted Uses

Current Use School/University School/University

Is Current Use Legally Permitted? Yes Yes

Zoning Change Not Likely Not Likely

Primarily multi-family development at allowable density

Open space, park and institutional uses