Reso 1996-062 - Laserfiche WebLink

Home

KMA has researched land sales for auto dealership sites in the Bay Area. A summary of these land sales can be found in Table 2. Most of the sales analyzed were sales of vacant, unimproved sites. While there is a range of value per sq.ft. of land area, depending on the location, size, access and other site factors, the value range is generally $10 to $12 per sq.ft. of land area. Land sales for which data have been reviewed and are summarized in Table 2 include: • Fremont Auto Mall, Fremont • • Dealership sites, Newark and Fremont • Dealership sites, Concord and Walnut Creek • Dealership sites, Gilroy A review of the land values paid indicates that dealers, in general, can support a land value in the range of $10 to $12 per sq.ft. of land area. Beyond that range; there is little evidence using comparable land sales that auto dealers can support higher Land values. In essence, the value range is for cleared sites ready for development with no extraordinary site preparation costs. In total (both the Private Assemblage and the Agency Assemblage), the Auto Dealer is planning to assemble a site totaling 4.98 acres (216,800 sq.ft.), for dealership sites. Based on these land sales, the Auto Dealer could afford to pay the upper end of the range ($12 per square foot), or $2,600,000 in site assemblage costs for the total site. The following is a summary of the costs components of the Private Assemblage followed by . the Reuse Value of the. Agency Assemblage.. This is followed by. a summary of. the actual _. Agency costs for the Agency. Assemblage and the Agency's financing'plan for the-land. sale.... • Throughout the•Reuse Value section of this report, please refer to Table 3 for a summary of specific costs and the total site assemblage costs. B. Private Assemblage 1. Purchase of Land Separately from the Agency Assemblage, the Auto Dealer is privately assembling additional land along Marina Boulevard, adjacent to the Agency Assemblage ( "Private Assemblage "), for the purposes of developing three auto dealerships. The Auto Dealer is in escrow to buy 1302 -1314 Marina Boulevard for a reported price of $2,255,000 by March 31, 1996. In total the Auto Dealer will incur approximately $2,255,000 in cost, or $14.14 per sq.ft. of land area for this 3.66 acre private assemblage. The Auto Dealer is funding this private assemblage without any Agency involvement. This data has been provided to KMA by the Agency staff. It is to be correct and has not been independently verified. KEYSER MARSTON ASSOCIATES INC. 1909610014-003.doc Page 14