Sheraton Hotel Redding At Sundial Bridge - Redding Record ...

Intended Use of the
Appraisal
Identification of the
Client and Intended
User(s)
Assignment Conditions
that point in time when abnormalities in supply and demand or any additional
transitory conditions cease to exist and the existing conditions are those expected
to continue over the economic life of the property.
This summary report is being prepared for loan underwriting and-or credit
decisions.
The client for this engagement is U.S. Bank. The intended users of this report is U.S.
Bank National Association, and its parent, affiliates, subsidiaries and assigns.
“Extraordinary Assumption” is defined in USPAP as follows:
An assumption, directly related to a specific assignment, which, if found to
be false, could alter the appraiser’s opinions or conclusions. Comment:
Extraordinary assumptions presume as fact otherwise uncertain
information about physical, legal, or economic characteristics of the subject
property; or about conclusions external to the property, such as market
conditions or trends; or about the integrity of the data used in an analysis. 5
The analysis is based on the extraordinary assumption that the described
improvements have been completed as of the prospective "when complete" date of
value. The reader should understand that the completed subject property does not
yet, in fact, exist as of the date of appraisal. Our appraisal does not address
unforeseeable events that could alter the proposed project and/or the market
conditions reflected in the analyses; we assume that no significant changes, other
than those anticipated and explained in this report, will take place between the
date of inspection and date of prospective value.
Additionally, our opinion of the stabilized market value of the subject property
prospectively, as of the date of stabilization, assumes that the hotel will be
maintained in good competitive condition and that no major changes will have
occurred in the local market or national economy that would impact the
performance of the property at that time.
According to the developer, the ground rent payable to the sublessor (Turtle Bay
Exploration Park) equals 5% of total revenue. The ground rent is waived in the
first and second years of operation. We have made the extraordinary assumption
that the sublease continues to pay ground lease payments to the sublessor in this
amount for the duration of our projection period.
5 Appraisal Institute, Uniform Standards of Professional Appraisal Practice, 2010 – 2011
ed.
February-2011 Nature of the Assignment
Sheraton Hotel Redding At Sundial Bridge – Redding, California 12