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CAL NATIONWIDE CONSULTING COMPANY, INC. P.O. BOX 548, 66 GLEN AVENUE, GLEN ROCK, NEW JERSEY 07452 TEL (201) 670-7400 FAX (201) 670-7959 www.nccpes.com April 8, 2011 Sherburne County Assessor's Office 13880 Business Center Drive Elk River, MN 55330 Attn: Bill Riley RE: Valvoline Instant Oil Change Parcel 75-566-0230 Dear Bill: As discussed, we wish to have the assessment on the referenced property reviewed. It is our opinion that the 2011 assessment of $502,000 is excessive and exceeds the property's market value as of the 1J1/2011 date of value. We are supplying market information which supports a lower value. The subject property is the Valvoline Instant Oil Change located at Hillside Crossing on Evans St NW. The subject sits on 0.93 acres and has 3drive-through oil change bays and a very small office area. The gross building area, including the basement pits, is 1,792 square feet. It is our estimate that the first floor area is approximately 1,200 square feet. The Quick Lube located at 522 Dodge Ave NW is still vacant and being offered for sale. This facility is located a mile down the road from the subject in a very comparable location just off the highway. It sits on 1.08 acres and has 3drive-through oil change bays and a sizeable office area. The square footage quoted on the listing is 2,100 square feet, while we estimate the first floor square footage to be 2,000 square feet. It was previously being marketed with an asking price of $549,000. The asking price has been reduced to $397,500. As this is an asking price, the actual sale price will be lower due to negotiations. The first floor area of the subject is approximately 60% of the size of the Quick Lube. As such, the Quick Lube has both a larger building and larger land size. Therefore, it is our opinion that the subject property should be valued less than the Quick Lube. We are providing the details of some sales transactions and listings which illustrate the tendency for large price reductions along with a general ballpark of what these types of facilities are selling for. As three of the sales are older, their sale prices would be adjusted downward to account for the weakening of the market due to current economic conditions. Please note square footages for these properties vary, as some listings show first floor area, while others include pit areas to list the gross area, and still others are based off of rough estimates. Therefore, each property listed shows the square footage claimed on the listing as well as our estimate of the first floor area. We have provided a summary sheet of these comparables along with averages of key indicators of value. Based on the four sales, the average sale price was $363,750, which represents an average 18% decrease from the original asking price. The average amount of time on the market was 14 months, and the average sale price per first floor square foot was $258.62. The five current offerings have an average asking price of $339,500, which represents an average decrease of 32% from the original asking