Physical Description
Location:
Thomas Brothers Guide:
Assessor Parcel Number:
Land Description
Site Area:
Shape:
Topography:
Utilities:
Zoning:
Sale Data
Interest Sold:
Date of Sale:
Deed Date:
Document No.:
Sale Price:
Sale Price/SF:
Grantor:
Grantee:
Financing:
Verification:
1136 Ingraham Street
Los Angeles, CA 90017
Los Angeles County: 634, D/4
5143-021-001 and 008 through 014
71,783± Square Feet, or 1.65± Acres (gross)
65,604± Square Feet, or 1.51± Acres (net)
Irregular
Level
All available to site
C4(CW)-U/6, City of Los Angeles
Fee Simple
September 1, 2010
August 16, 2010
1230729
$10,000,000
$139.31
Ingraham
&
Bixel, LLC
Career Lofts, LLC
$5,000,000 cash down payment (50%); $5,000,000 1" TD with
Shinhan Bank America at undisclosed market terms
Mark Hong, Listing Broker
30
Land Sale No.5 (Continued)
Comments: This site is located at the non-signalized southwest comer of lngraham and Bixel Streets and the
signalized northwest comer of Bixel and
7th
Streets and is bisected by a public alley. Access is currently
provided along lngraham and Bixel Streets and the public alley. The property is located within the Central
City West Specific Plan and allows C4 uses, with a height limit of 1,218 feet and a maximum FAR of 6:1.
Although it was entitled for 334 residential condominiums and 15,175 square feet of retail space at the time
of sale, the value of the entitlements was nominal as the buyer plans to re-entitle the property for 300
apartment units according to the listing broker. The site, which was improved with a parking lot at the time
of sale, is located within the Los Angeles State Enterprise Zone and the Central City Parking Area.
31
Physical Description
Location:
Southeast corner of Los Angeles Street and 2nd Street
Los Angeles, CA 90012
Los Angeles County: 634, G/4
5161-024-014,018
Thomas Brotbers Guide:
Assessor Parcel Number:
Land Description
Site Area:
Shape:
Topography:
Utilities:
Zoning:
44,027± Square Feet, or 1.01± Acres
Generally Rectangular
Level
All available to site
[QJC2-4D-O, City of Los Angeles
Sale Data
Interest Sold:
Date of Sale:
Deed Date:
Document No.:
Sale Price:
Sale Price/SF:
Grantor:
Grantee:
Financing:
Fee Simple
March 18, 2008
March 14,2008
0461811
$10,975,000
$249.28
CityView Kor I, LLC
Avalon Bay Communities, Inc.
All cash transaction
Verification:
Christopher Payne, Buyer
32
Land Sale No.6 (Continued)
Comments: This site is located at the signalized southeast comer of
2"d
aud Los Angeles Streets, with access
from both and reciprocal access through the properties to the south and east. This property is part of a larger
proposed development known as "The Block 8 Development," a mixed-use project consisting of 519
residential condominium units, 231 apartment units and 50,000 square feet of retail space. Although the
buyer had previously purchased the adjacent parcels to the south, there was reportedly no premium paid for
assemblage. According to the buyer, the property was fully entitled at the time of sale, with the entitlements
contributing approximately 30 percent to the purchase price; a downward Condition of Sale adjustment was
therefore made. The
[Q]
zoning condition limits the ground floor commercial uses that can be developed on
the site. The site, which was improved with two parking lots at the time of sale, is located within the Los
Angeles State Enterprise Zone, the Greater Downtown Housing Incentive Area, and the Central City and
Downtown Business District Parking Areas.
33
Physical Description
Location:
Thomas Brothers Guide:
Assessor Parcel Number:
Jefferson Boulevard at Centinela Avenue
Los Angeles (Playa Vista), CA 90045
Los Angeles County: 672,
FI7
4211-010-042 through 048, 051, 052, 057 through 059, 064 through
067,079 and 080; 4211-011-027 through 043
Land Description
Site Area:
Shape:
Topography:
Utilities:
Zoning:
2,787,840± Square Feet, or 64.00± Acres
Irregular
Level
All available to site
M(PV), City of Los Angeles
Sale Data
Interest Sold:
Date of Sale:
Deed Date:
Document Nos.:
Sale Price:
Sale Price/SF:
Grantor:
Grantee:
Financing:
Fee Simple
February 9, 2007
February 8, 2007
0284592 through 0284601
$265,000,000
$95.06
Playa Phase I Conunercial Land Company, LLC
PV Campus Parcell, L.P. through PV Campus Parcel 10, L.P. (each
deed individually identified)
All cash transaction
Verification:
Randy Johnson, Senior VP/CFO for Seller
34
Land Sale No.7 (Continued)
Comments: This sale is located along the south side of Jefferson Boulevard and Centinela Avenue, the north
side of Bluff Creek Drive between the intersection of Bluff Creek Drive and Centinela Avenue aud Westlawn
Avenue. All comers are signalized. The Site is zoned M(PV), Playa Vista Specific Plan, which allows C2
uses. At the time of sale, vesting tentative tract map 49104 and tentative tract map 52092 had been approved
after hearings before the Coastal Commission and Los Angeles Department of City Planning. According to
the seller, the purchase price consisted of $200,000,000 in cash and a Letter of Credit for $65,000,000. The
sale was all cash to the seller, and the buyer obtained financing through Bank of America after the close of
escrow. The seller was unable to estimate the contributory value of the entitlements. Although there are
II
buildings on the property which are classified as "historical," including the 300,000 square foot building
where the Spruce Goose was built, the seller does not believe that they had any contributory value.
35
Physical Description
Location:
Thomas Brothers
Gui
de:
Assessor Parcel Number:
1101 South Flower Street
Los Angeles, CA 90015
Los Angeles County: 634, D/5
5138-015-026 and 028 through 038 (now 5138-015-026)
Land Description
Site Area:
Shape:
Topography:
Utilities:
Zoning:
Sale Data
Interest Sold:
Date of Sale:
Deed Date:
Document No.:
Sale Price:
Sale Price/SF:
Grantor:
Grantee:
Financing:
Verification:
200,812± Square Feet, or 4.61± Acres
Generally Rectangular
Level
All available to site
LASED, City of Los Angeles
Fee Simple
August 15, 2006
Undated
1810546
$80,000,000
$393.38
L A Arena Land Company, LLC, and Flower Holdings, L L C
JM Fig LLC, as to a 45% interest, MG Fig LLC, as to a 5% interest,
HS Fig LLC, as to a 17% interest, and CLAD Resources Borrower,
LLC, as to a 33% interest
$15,000,000 casb down payment (18.8%); $65,000,000 1" TD with
Waebovia Bank at undisclosed market terms
Rich Mayo, Buyer's Broker
36
Land Sale No.8 (Continned)
Comments: This site is located across the street from Staples Center, and consists of the entire city hlock
bounded hy II th Street on the north,
Ith
Street on the south, Flower Street on the east and Figueroa Street on
the west.
It
is located at four signalized comers, with access from 11th, Flower, and Figueroa Streets, The
site is within the Los Angeles Sports and Entertainment District Specific Plan, which was in the process of
being amended to allow 207,376 square feet of hotellballroom space (222 rooms), 1,009,439 square feet of
residential space (860 dwelling units) and 271,286 square feet of retail/entertainment/restaurant space at the
time of sale. Tract Map No. 53384, an air rigbts subdivision, was recorded on June 11, 2003. Although the
property, formerly a Bank of America facility, is improved with a parking lot and 2 buildings tbat provide
access to a large underground vault, the improvements bad no contributory value according to the buyer's
broker. The value of the air lights subdivision was offset by increased demolition costs associated with the
underground vault. The site is located witbin the Los Angeles State Enterprise Zone, tbe Greater Downtown
Housing Incentive Area, and the Central City and Downtown Business District Parking Areas.
37
Physical Description
Location:
Thomas Brothers Guide:
Assessor Parcel Numbers:
2300 - 2400 South Flower Street
Los Angeles, CA 90007
Los Angeles County: 634, en
5126-005-005 through 007 (now 5126-005-008); 5126-017-014 and
015 (now 5127-017-017); and 5126-018-032 through 035
(now 5126-018-032, 033, 035 and 037 through 039)
Land Description
Site Area:
Shape:
Topography:
Utilities:
Zoning:
411,642± Square Feet, or 9A5± Acres
Irregular
Level
All available to site
[QJC2-2-0, City of Los Angeles
Sale Data
Interest Sold:
Date of Sale:
Deed Date:
Document No.:
Sale Price:
Sale Price/SF:
Grantor:
Grantee:
Financing:
Fee Simple
July 18,2006
July 18, 2006
1576695
$70,500,000
$171.27
Los Angeles Orthopaedic Hospital Foundation
PalmerlFlower Street Properties
$27,500,000 cash down payment (39.0%); $43,000,000 1" TD with
Bank of America at undisclosed market terms
Verification:
Emily Cohen, Entitlement Manager for Buyer
Dwight Hotchkiss, Listing Broker
38
Land Sale No.9 (Continued)
Comments: This sale consists of two non-contiguous parcels ofland, a 0.47± acre parcel located along the
northwest side of Flower Street,
120±
feet southwest of
23,d
Street, and an 8.98± acre parcel located at the
signalized southwest comer of Flower and
23,d
Streets, a portion of which extends to Adams Boulevard on
the southwest. The smaller parcel is accessible from Flower Street; the larger parcel includes a portion of
vacated Hope Street and is accessible from
23'"
Street and Adams Boulevard. The larger parcel is not
accessible from Flower Street due to an Expo Line light rail station scheduled to open in November
2011.
Although this station did not exist at the time of sale, the alignment was approved On December 15, 2005.
According to Emily Cohen, Entitlement Manager for the Buyer, a small portion of the property was improved
with a building at the time of sale, which did not have any contributory value and was subsequently
demolished. The [Q] zoning condition restricted permitted uses to educational, hospital, medical office,
parking and related uses at the time of sale. According to Ms. Cohen and Gregg Shoup, City Planner with the
City of Los Angeles, this property sold without entitlements, although the applicant reportedly had high
expectations that a zone change and GPA would be approved. The site is located within the Los Angeles
State Enterprise Zone, the Greater Downtown Housing Incentive Area, and the Central City Parking Area.
39
Physical Description
Location:
Thomas Brothers Guide:
Assessor Parcel Number:
The city block bounded by James M. Wood Boulevard, Francisco
Street, 8
th
Street and the Harbor/Pasadena (110) Freeway
Los Angeles, CA 90017
Los Angeles County: 634, D/4
5144-023-023 through 030, 032 through 057,059 through 063,065,
066, and 068 through 072
Land Description
Site Area:
Shape:
Topography:
Utilities:
Zoning:
Sale Data
Interest Sold:
Date of Sale:
Deed Date:
Document No.:
Sale Price:
Sale Price/SF:
Grantor:
Grantee:
Financing:
Verification:
274,428± Square Feet, or 6.30± Acres
Generally Rectangular
Level
All available to site
C2-4D, City of Los Angeles
Fee Simple
December 14, 2005
December 14, 2005
3069921
$70,000,000
$255.08
City Centre Development
LA Metropolis, LLC
$6,545,000 cash down payment (9.4%); $63,455,000 1" TD with
Fremont Investment
&
Loan at undisclosed market terms
John E. Vallance, Seller
40
Land Sale No. 10 (Continned)
Comments: Tbis sale consists of 46 contiguous parcels bounded by 8"' Street on tbc north, James M. Wood
Boulevard on tbe south, Francisco Street on the east and tbe HarborlPasadena (110) Freeway on the west.
The site is visible from the freeway, and access is provided along Francisco Street and 8"' Street (a one-way
street). Over the past 18 years, tbc seller bas assembled tbe site, vacated interior streets, entered into a
Development Agreement with the Los Angeles Planning Department and tbe Community Redevelopment
Agency, and entitled tbe property for
3,OOO,OOO±
square feet, wbich includes
3
office towers, 200,000 square
feet ofrctail, 100,000 square feet of entertainment (Arts, Museum, etc.), and a hotel. The seller estimated
that tbe entitlements contributed approximately 25 percent to the purcbase price; a downward Condition of
Sale adjustment was tberefore made. The site, which was improved with a parking lot at the time of sale, is
located within the Los Angeles State Enterprise Zone, the Greater Downtown Housing Incentive Area, and
the Central City and Downtown Business District Parking Areas.
41
Discussion of Adjustments
All of the land sales have been adjusted to the subject property for property rights, buyer expeuditures,
financing, condition of sale, market conditions, location, and physical factors when applicable. These
adjustments are defined below:
Property Rigbts at Sale
This category adjusts for property rights conveyed and takes into account differences in legal estate between
the subject and each comparable property. Generally, property rights are either fee simple interest or leased
fee interest.
Buyer Expenditures
This category adjusts for additional costs incurred by the buyer which arc required to make the property
ready for development andlor use. Tbis includes expenditures for demolitiou costs and other expenses paid
by the buyer in addition to the purchase price.
Financing
This category adjusts the sale price of each comparable into its cash equivalent or modifies the price to
current market financing. Favorable financing often leads to a higher selling price and unfavorable financing
may reflect a lower selling price.
Condition of Sale
This category adjusts for atypical conditions of sale and reflects any difference between the actual sale price
of a comparable and its probable sale if it were currently sold in an ann's length transaction. Please refer to
the individual datasbeets for discussion of applicable adjustments.
Market Conditions (Time)
Tbis category adjusts for market conditions and reflects changes in the prices paid due to changes in market
conditions over time. The comparable properties are adjusted from the date of sale to date of value. In
reviewing the market, we found ten commercial land sales that cover a marketing time from December 2005
through July 2011. These were the most recent and competitive sales in the subject market. Our analysis of
available market information, supported by discussions with market participants in the course of our
verifications, indicates land prices for commercial land increased by approximately 12 percent annually, or
1.00 percent per month, between December 2005 and December 2007, decreased by approximately 12
percent annually, or 1.00 percent per month, between January 2008 and December 2010, and were generally
stable between January 2011 and the present. Therefore, time adjustments were made for the appropriate
time periods to the date of value.
42
Location and Physical Conditions
These categories consider differences between the subject and each comparable property for location and
physical conditions. We considered differences in location, zoning, size, site utility, visibility and
accessibility. Each is defined below:
Location - This category adjusts the sales for differences in location for linkages, area, and other factors.
Zoning - This category adjusts for differences in zoning and allowable land uses.
Size - This category adjusts for differences in the size of each comparable to the subject site. Typically,
smaller properties require downward adjustment as they tend to reflect higher unit prices than larger sites.
Larger properties require upward adjustment as they tend to reflect lower unit prices than smaller sites.
Site Utility - This category adjusts for differences in topography, development, configuration, and usability of
the site.
Visibility - This category adjusts for differences in the visibility of each sale to the subject site.
Accessibility - This category adjusts for differences in the accessibility of each sale to the subject site.
The adjustment grid on the following page summarizes the adjustments for each of the sales as they apply to
the subject property. Adjustments for differences between the subject and each comparable property are
expressed in percentages for property rights, buyer expenditures, financing, condition of sale, and market
conditions based on our analysis of the market, as applicable, Qualitative adjustments have been applied for
the location and other physical characteristics of each sale compared with the subject. A superior rating
indicates the market data item is being adjusted downward to the subject. An inferior rating indicates the
market data item is being adjusted upward to the subject. Each physical characteristic may not be weighted
equally. Then, an overall rating is assigned to each sale as it compares with the subject.
43
+
"g
-I.
,~8 .~
~ ~
OJ
i
oi "
~l~
c> .~
'l
,
I ~,I
,~ 3! -,
~ <[ ~
Analysis and Conclusions
The adjusted sales range from $70.98 to $556.08 per square foot, before adjusting for physical characteristics.
Based on our analysis of the land sales, the overall ratings of the adjusted sales compared to the subject
property are as follows:
Inferior (Sale Nos. 5, 6, 7 and 9)
Similar
Superior (Sale Nos. 1,2,3,4,8 and 10)
$70.98 to $139.50 per square foot
N/A
$169.40 to $556.08 per square foot
Based on our analysis, an expected value indicator for the subject should fall between $139.50 and $169.40
per square foot. Sale Nos. 5, 6, 7 and 9 were considered inferior to the subject overall at $70.98 to $139.50
per square foot, due primarily to inferior location, site utility and visibility
as
compared to the subject. They
set the lower range of value for the subject. Sale Nos. 1, 2, 3, 4, 8 and 10 were considered superior to the
subject overall at $169.40 to $556.08 per square foot, due primarily to superior zoning or entitlement status,
accessibility, or smaller size as compared to the subject. They set the upper range of value for the subject.
After considering adjustments for differences in property rights, buyer expenditures, financing, conditions of
sale, market conditions, location and physical characteristics, it is our opinion that an appropriate value
indicator for the subject site, underlying land only, is $150.00 per square foot, which is within the range of
the market. Shown below is our calculation of the market value of subject site:
Land Area
Price/Sqnare Foot Indicated Valne
614,975± SF
x
Indicated Value of the Subject Site
by the Sales Comparison Approach
$150.00 $92,246,250
Rounded To:
$92,250,000
The final conclusion or opinion has resulted from the application of the Sales Comparison Approach. In
summary, this approach provides a value indicator for vacant land and is most commonly used by market
participants. The Sales Comparison Approach is considered to be the primary approach to value. Please
refer to Extraordinary Assumptiou Nos. 18, 19, 20, 21, 22, 23, 25 and 26. Based on the data presented,
analysis, and reconciliation, the Market Value of the Fee Simple Interest in the subject property, underlying
land only, as of September 21, 2011, is:
NlNETY-TWO MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS .
.......................................................................................................................... $92,250,000.
45
At the request of the Client, we have calculated the annual market ground rent for the subject property as of
July 1 of 2011,2012,2013,2014,2015,2016 and 2017 based upon the $92,250,000 concluded market value
of the fee simple interest in the subject property as of September 21, 2011. The market ground rent
calculations will be utilized in negotiations with the proposed developer, AEG, to establish a ground lease for
the subject property. According to the terms of the draft MOU, the proposed ground lease would have a 55
year term, with 1.75 percent annual escalations. Based upon our review of the draft MOU and analysis of the
market, it is our opinion that a 1.75 percent rent escalation rate is reasonable. Please refer to Extraordinary
Assumption No. 24.
The market was surveyed for current ground leases, rates of return, and leasing practices of both private firms
and public agencies to derive the estimated net operating income attributable to the land. No recent vacant
land leases were discovered in the area. Therefore, the market value of the land was multiplied by an
appropriate rate of return to derive a market rental rate for the land. A survey of private firms and public
agencies was therefore conducted to determine their required rates of return on land. The following table
shows the results of that survey:
Private
9.0 to 10.0%.
Private 8.0 to 9.5%
Private
5.3%
Private
5.3%
Private
5.1%
Private 7.5 to 8.25%
Public 8.0 to 8.5%
Public
8.0%
MTA
Public
8.0 to 9.0%
Public
6.5%
Public 6.0 to 10.0%
Public 8.0 to 12.0%
Public
10.0%
Public
10.0%
Public 10.0%
Land leases are typically written for a 5 to 12 percent return on the estimated value of the land. Our records
indicate that municipal agencies, such as The Metropolitan Water District of Southern California, Port
Authorities, and Southern California cities predominantly range from 6.5 to 10 percent. Private firms have
negotiated ground leases in the range of 5.1 to 10 percent. Based on our analysis, we conclude a 7.0 percent
rate of return is appropriate.
The market value of the subject property as of July 1,2011 was considered to be unchanged from September
21, 2011, consistent with our analysis of the market and the market condition adjustments utilized in the
valuation of the underlying land. A future value factor, based upon a 2.0 percent annual growth rate
commencing on September 21, 20 II, was applied to the concluded market value of the fee simple interest in
the subject property as of September 21, 20II in order to calculate the market value of the subject property as
of July 1 of 2012, 2013, 2014, 2015, 2016 and 2017, as agreed with the client. The following table
46
summarizes our calculations of the market value of the subject property as of-July I of 2011, 2012, 2013,
2014,2015,2016 and 2017:
The concluded 7.0 percent rate of'return was multiplied by the calculated market value of the land as of July
I of 2011, 2012, 2013, 2014, 2015, 2016 and 2017 in order to derive the annual market rental rate for the
land on each of those dates. The annual market ground rental rates are calcnJated as follows:
The final conclusions or opinions have resulted from applying an appropriate rate of return on land to the
market land value for each year, which was calcnJated by applying a future value factor to the concluded
market value of tbe subject property as of September 21, 201l. Based on tbe data presented, analysis, and
reconciliation, the annual Market Ground Rent conclusions are:
As of July 1, 2011 $6,457,500
As of July 1, 2012 $6,558,017
As of July 1, 2013 $6,689,178
As of July 1, 2014 $6,822,961
As of July 1, 2015 $6,959,420
As of July 1, 2016 $7,098,609
As of July 1, 2017 $7,240,581
47
Location
The subject site is identified as portions of APNs 5138-016-912 and 913, located at the southeast comer of
L.A. Live Way and Chick Hearn Court.
Size and Shape
The subject site is generally rectangular in shape and contains a gross area of 633, 150± square feet, or 14.54±
acres. The approximate boundaries and dimensions of the site are as follows:
North Boundary (Chick Hearn Court) 727.41± Linear Feet
South Boundary 789.50± Linear Feet
East Boundary Varies
West Boundary (L.A. Live Way) 829.17± Linear Feet
Please refer to the exhibit labeled Scenario Two on the accompanying page for reference. Please refer to
Extraordinary Assumption Nos. 19 and 25.
Accessibility aud Visibility
The subject site consists of the underlying land of portions of the Los Angeles Convention Center and Staples
Center located at the signalized southeast comer of LA. Live Way and Chick Hearn Court in downtown Los
Angeles. The site has 829.17± feet of frontage and 3 curb cuts along L.A. Live Way and 727.41± feet of
frontage and 2 curb cuts along Chick Hearn Court.
L.A. Live Way (formerly Cherry StreetiSentous Street) is a northeast-southwest, 102± foot wide, asphalt-
paved collector street with 2 to 3 northeast-bound lanes, 2 southwest-bound lanes, a mid-block northeast left
turn pocket, a mid-block southwest left tum pocket, and northeast left and right turn lanes at Chick Hearn
Court. Chick Hearn Court (formerly 11th Street) is a northwest-southeast, 107± foot wide, asphalt-paved
collector street with
2
lanes in each direction, northwest-bound left and right lanes at L.A. Live Way and
southeast-bound left tum lane at Georgia Street. Even though both streets are over 100 feet wide, the City of
Los Angeles identifies them as collector streets.
The field inspection was conducted during normal business hours, and traffic was noted to be moderate to
heavy along L.A. Live Way and Chick Heam Court. Regional access to the subject site is provided by the
Harbor (110) Freeway at L.A. Live Way approximately 1 block southwest of the subject (northbound) or
Olympic Boulevard approximately 1 block north of the subject (southbound), and the Santa Monica (10)
Freeway at Grand Avenue approximately 0.7 miles southeast of the subject (eastbound) or Hoover Street
approximately 0.9 miles southwest of the subject (westbound). Overall, visibility is considered good-to-
excellent and accessibility is considered good.
Site Utility
The subject consists of a 633,l50± square foot, or 14.54± acre, generally rectangular, generally level site
located at the signalized intersection of two collector streets. Access is provided by 3 curb cuts along L.A.
Live Way and
2
curb cuts along Chick Hearn Court. The property is adjacent to L.A. Live and is improved
with portions of the Los Angeles Convention Center and Staples Center, although only the underlying land
has been appraised at the request of the client. Please refer to Extraordinary Assumption Nos.
19,20, 22,
48
23, 25 and 26. The subject has an adequate frontage-to-depth ratio, with visibility that is considered good-to-
excellent and accessibility that is considered good overall. All utilities are available to the site, and there are
no. apparent on/off-site conditions that detrimentally impact the site's use. The site's configuration and
location pose no.major developmental problems. The site is similar to other parcels
in
the neighborhood and
is functionally adequate for a commercial, residential or mixed use as permitted under current zoning.
Overall, the utility of the subject is considered good.
Real Estate Assessment Data
The subject site, identified as portions of APNs 5138-016-912 and 913, is located in Tax Rate Area 00211.
The 2011-2012 tax rate is 1.245849 percent per $100 of assessed value. The subject is exempt from all taxes
as it is owned by the City of Los Angeles, and therefore is not assessed.
Improvement Summary
The subject site consists of the underlying land of portions of APNs 5138-016-912 and 913. Although the
property is currently improved with portions of Staples Center and the West Hall of the Los Angeles
Convention Center, no consideration has been given to any existing buildings or improvements on the site,
which will be demolished according to the terms of the proposed ground lease, at the client's request. No
deduction has been made for demolition costs, as demand is considered sufficient to offset them. Please
refer
to.
Extraordinary Assumption No, 19.
49
Highest and best use is defined on Page 278 of The Appraisal of Real Estate, Appraisal Institute (13th
Edition, 2008), as:
"The
reasonably
probable and legal nse of vacant land or an improved property that is legally
permissible, physically possible, appropriately supported, financially feasible, and that resnlts
in the highest value."
The concept of highest and best use represents the premise upon which value is based. In the context of the
market value definition used in this report, other appropriate terms can also reflect the highest and best use
concept. These are the most probable and most profitable use for the site, first "as if vacant" and then "as
improved or proposed."
The determination of highest and best use is based not only on an analysis of the property in question, but
also on an analysis of the overall community, its history and trends, zoning, market conditions, as well as the
basic principles ofland utilization.
As indicated in the definition above, there arc four elements in highest and best use analysis that must be
considered. The highest and best use of a property is that use, among alternate uses, that is legally
permissible, physically possible, financially feasible, and maximally productive.
The following factors must be considered as follows:
Legal Use: The use in question must be legally permissible.
Physical Use: The USein question must be physically possible.
Feasible Use: The use in question must be economically feasible, not speculative or conjecture.
Productive Use: Among the feasible uses, that use which will produce the highest net return to the
land.
Factors controlling highest and best usc include:
• Type of use;
• Duration of use;
• Location of use; and
• Degree of intensity of use-density.
The highest use of land is dictated by zoning and other government and/or private restrictions. The best use
is constituted by that single use from the possible alternative types of improvements which will produce the
greatest economic advantage.
The following arc our conclusions of Highest and Best Use As-Vacant:
50
The Highest and Best Use of the subject as vacant assumes that the property is vacant or could be rendered
vacant by demolishing the existing improvements. Based on that assumption, possible uses for the property
can be considered among those uses which are legally permissible, physically possible, financially feasible,
and maximally productive.
Legal - The subject's zoning is governed and enforced by the City of Los Angeles. Although the site is
currently owned by the City of Los Angeles and zoned PF-4D-O, Public Facilities, with a corresponding land
use designation of Public Facilities, Senior City Planner Jon Foreman has indicated that it would likely be re-
zoned C2-4D-O, Commercial, with a corresponding land use designation of Regional Commercial if sold to a
private party. Please refer to Extraordinary Assumptiou Nos. 22 and 2:? Uses permitted in the C2 zone
include, but are not limited to, art or antique shops, tire shops, restaurantsltea rooms/cafes, advertising
signs/structuresibillboards, auditoriums or stadiums with a seating capacity of not more than 3,000,
automotive fueling and service stations, new and used automobile sales, hospitals, parking buildings, second-
hand stores, schools, and motion picture or media production. CR, Cl, Cl.5 and R4 uses are also permitted,
with some limitations. The
0
supplemental use district allows oil drilling with a number of limitations.
There are no lot area or setback requirements for commercial uses in the C2 zone; residential uses must meet
the lot area and setback requirements for the R4 zone. Parking requirements vary depending upon use. The
subject property is in Height District 4D, which limits CR uses to a maximum height of 75 feet; there are no
specific height limits for other commercial uses. The D prefix generally limits the Floor Area Ratio (FAR)
for R4 and commercial uses to a maximum of 6:1, with some exceptions.
The subject is located within the Los Angeles State Enterprise Zone, wbicb allows reduced parking ratios and
provides economic incentives to stimulate local investment and employment through tax and regulation relief
and improvement of public services, and the Greater Downtown Housing Incentive Area, which allows a 35
percent floor area bonns for projects that voluntarily provide a prescribed percentage of units for affordable
housing.
It
is also located within the Central City and Downtown Business District Parking Areas, which
have reduced parking requirements for a variety of uses.
Although requested, Riggs
&
Riggs,
Inc., was not provided with a Preliminary Title Report specific to the
subject property or a map plotting the encumbrances that impact the subject property. Therefore, for the
purposes of analysis, it is assumed that any encumbrances impacting the subject property are typical for an
urban property and do not adversely impact the site. Please refer to Extraordinary Assumption No. 20.
These are the legal uses and requirements under the current zoning.
Physical - After identifying the legal uses of the site, the physical uses of a vacant site are considered.
Development constraints imposed on a site vary by its confignration, size, and topography, which are fixed in
location. The subject is generally rectangular in shape, with a gross area of 633,150± square feet, or 14.54±
acres. Please refer to Extraordinary Assumption No. 19. The site is not located within an Alquist-Priolo
fault zone, although it is located within an unidentified fault zone and a methane zone. Topography is
generally level, and the site is considered legally conforming to current zoning requirements. The site is
located at the signalized intersection of two collector streets, with good-to-excellent visibility, good
accessibility, and an adequate froutage-to-depth ratio. Taking these physical and legal factors into
consideration, the subject site has good utility and appears to be legally and physically suited for a
commercial, residential or mixed use consistent with zoning.
51
Economic - The best use is considered to be that single use from among all the physically possible uses
legally-permitted by zoning which will produce the greatest economic advantage to a vacant site. Tbis is due
to the fact that real estate is fixed in location and return on land arises from the residual income remaining
after all operational and financial expenses are deducted from the gross income.
The subject property is located in downtown Los Angeles and surrounded by L.A. Live to the north, a portion
of the Los Angeles Convention Center to the south, a portion of Staples Center to the east and parking to the
west. The downtown area is 99% built-out, and new construction is limited to the redevelopment of existing
properties. Economic conditions are stabilizing, and projects that had been suspended due to the recession
are starting to move forward.
Based on a cursory review of the legal restrictions and physical site, it is our opinion that
it
is economically-
feasible to develop a commercial, residential or mixed use on the subject site, assuming that financing could
be obtained. The maximally productive use is considered to be that single use from among all the physically
possible and legally permissible uses that will produce the greatest economic advantage toa vacant site.
After review of the legal, physical, and economic factors mentioned relative to the subject, it is our opinion
that the highest and best use of the site, as though vacant, is to develop a commercial, residential or mixed
use consistent with zoning, assuming that financing could be obtained.
52
The valuation of any parcel of real estate is derived principally through the three basic approaches to market
value: the Cost Approach; the Income Capitalization Approach; and the Sales Comparison Approach. The
methodology used in the following sections of the appraisal include:
Cost Approach - This approach to value is devoted to an analysis of the physical value of the property; that is,
the current market value of the vacant land, to which is added the cost to construct the improvements. Any
accrued depreciation is deducted for physical deterioration, functional obsolescence, and external
obsolescence. Physical deterioration measures the physical wearing out of the property as observed during
the field inspection. Functional obsolescence reflects a lack of desirability by reason of layout, style or
design of the structure. External obsolescence denotes a loss in value from causes outside the property itself.
Income Capitalization Approach - Investment properties are normally valued in proportion to their ability to
produce income. Hence, an analysis of the property in terms of its ability to provide a sufficient net annual
return On invested capital is an important means of valuing an asset. An opinion of value by the Income
Capitalization Approach is arrived at by capitalizing the net income at an interest rate or investment yield
commensurate with the risk inherent in the fee ownership of the property. Such a conversion of income
considers competitive returns offered by alternative investments. Commercial developments are considered
to be desirable real estate investments.
Sales Comparison Approach - This approach to value is based upon the principle of substitution; that is,
when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally
desirable property, assuming no costly delay in making the substitution. As no property is identical to
another, it is necessary to make adjustments for any differences.
The indications of value derived by the three approaches are not always possible or practical to use. The
nature of the property being appraised and the amount, quality, and type of market data available dictates the
use or non-use of one or more of the approaches to value. In this appraisal, only the Sales Comparison
Approach was utilized since only the underlying land of the subject property is being appraised. The Cost
and Income Capitalization Approaches are not applicable.
53
The application of the Sales Comparison Approach produces an opinion of value for the subject property hy
comparing it with similar or comparable properties which have recently sold. The comparison process is
used to determine the degree of comparahility hetween two properties. This process involves judgment.
Similarity in value factors, such as property rights, buyer expenditures, financing, condition of sale, market
conditions, location, and physical characteristics are considered meaningful for this analysis.
The sale price of the properties deemed to he most comparahle establish a range in which the value of the
subject property should fall. Further consideration of the comparative data will result in a figure representing
the value of the subject property - the highest price at which it could be sold by a willing seller to a willing
buyer as of the date of the value.
The technique is fairly simple in nature. Sales data of comparable properties are gathered, investigated, and
verified. Data sources have been discussed, and each sale is confirmed with buyer, seller, or representative
when possible. After verification, comparison is made between the comparable and the subject.
Adjustments, if required, are made for any differences between sale and subject. The result is some unit or
units of comparison which will be helpful in evaluating the subject property.
The Sales Comparison Approach is used to estimate the value of real estate, based on the theory that an
informed and prudent buyer would not pay more for a property than the cost of acquiring another property
with the same utility.
It
is, therefore, based upon the principle of substitntion. This approach requires an
active market and the availability of other properties from which a bnyer can make a choice.
Several transfers arc considered reasonably comparable to the subject and snitable for further analysis. Data
items are narrowed to those sales which exhibit the greatest Similarity to the subject.
In
order to determine an
indicated value, the subject was evaluated based on the Sale Price Per Square Foot.
Market Data Summary
Although the subject property is currently zoned PF-4D-O, Senior City Planner Jon Foreman has indicated
that it would likely be re-zoned C2-4D-O if sold to a private third patty. Therefore, consistent with the
conclusion of Highest and Best Use As Vacant, a search was made for sales of commercial land within the
City of Los Angeles and surrounding markets over the past 3 years. This resulted in 5 sales that were
considered reasonably similar to the subject, all of which were under 8 acres in size. The search was
therefore expanded to include sales over the past 6 years that were in proximity to the subject. The resulting
sales were gathered, compared and analyzed. The results of this process provide the basis for the opinion of
value for the site as if vacant and available for development to its highest and best nse. All of the sales are
adjusted for quantitative factors, when applicable. Our market data is found on the following page, along
with a location map depicting each sale.
54
(j)
W
...J
«
(j)
o
z
:)
W
...J
en
~
<
0..
2
o
o
I
11215South Flower Street
[Los Angeles
$260.87
7/14/11
I
••-. 1
6/10111 1
I
96,762 SF
(T)(Q)C2.2 J~ffier
--"'r;;~,~;2
SF
LASED
,
-L:;~~:O~~O__,.
1 ~ .. ~--
i
$31,000,000
,
P670 Wilshire Boulevard
1Los Angeles
1
2
Corner
I 105,415SF $59,500,000
11117/10 1 C2-2-0
r-~-~-+----~-I
.__ If--_.
+
Co_ffi_e_r
_--+-__
._$5_64_.44 ..
I
I 346,302SF $148,300,000
/Wilshire Specifiqc......-----f--·-----II
I I
Interior
3 110000Santa Monica Boulevard
ILos Angeles
.......l. ,
4 19900Wilshire Boulevard
IBeverly Hills
1
10/6/10
$428.24
1 '
5 11136lngrahamStreet I
I
I
71,783 SF $10,000,000
!LoSAngeles
I
9/1/10
I
C4(CW)·U/6 Co=~-'
-;r:::~:;,;:~:~~;;;;;~;
;;;;~r-:::=T;:=+-:;;:;;;;;;-t;;;;;;,;;,-
iLos Angeles
!
Comer $249.28
I
1
7
I
Jefferson Boulevard at Centinela Avenue
i
I
2,787,840
SF $265,000,000
-L
Angeles (playa VIsta)
!
219/07 ~
M(pv) ~er
i
$95.06
- 8 1110~erStreet
r I - I
200,81~'
$80,0;;~~-
I
Los Angeles ,8/15/06 LASED
1------+.-------
I i I I
Comer
i
$39838
9 1
2300
- 2400South Flower Street i
I
411,642 SF
$70,500,000
i
Los
Angeles . 7/18/06 1 [QjC2-2-0 ~
1f----1 ;
I
I Comer
IThe city block bounded by James M. W--;'-O""d+j--.
1-----1
---1--.
10 Boulevard, Francisco Street, 8th Street and
i
I I 274,428SF $70,000,000
. 12114/05 C2-4D
the Harbor/Pasadena (110)Freeway
j
8171.27
55
Discnssion of Adjnstments
All of the land sales have been adjusted to the subject property for property rights, buyer expenditures,
financing, condition of sale, market conditions, location, and physical factors when applicable. These
adjustments are defined below:
Property Rights at Sale
This category adjusts for property rights conveyed and takes into account differences in legal estate between
the subject and each comparable property. Generally, property rights are either fee simple interest or leased
fee interest.
Buyer Expenditures
This category adjusts for additional costs incurred by the buyer which are required to make the property
ready for development and/or use. This includes expenditures for demolition costs and other expenses paid
by the buyer in addition to the purchase price.
Financing
This category adjusts the sale price of each comparable into its cash equivalent or modifies the price to
current market financing. Favorable financing often leads to a higher selling price and unfavorable financing
may reflect a lower selling price.
Condition of Sale
This category adjusts for atypical conditions of sale and reflects any difference between the actual sale price
of a comparable and its probable sale if it were currently sold in an arm's length transaction.
Market Conditions (Time)
This category adjusts for market conditions and reflects changes in the prices paid due to changes in market
conditions over time. The comparable properties are adjusted from the date of sale to date of value.
In
reviewing the market, we found ten commercial land sales that cover a marketing time from December 2005
through July 2011. These were the most recent and competitive sales in the subject market. Our analysis of
available market information, supported by discussions with market participants in the course of our
verifications, indicates land prices for commercial land increased by approximately 12 percent annually, or
1.00 percent per month, between December 2005 and December 2007, decreased by approximately 12
percent annually, or 1.00 percent per month, between January 2008 and December 2010, and were generally
stable between January 2011 and the present. Therefore, time adjustments Were made for the appropriate
time periods to the date of value.
56
Location and Physical Conditions
These categories consider differences between the subject and each comparable property for location and
physical conditions. We considered differences in location, zoning, size, site utility, visibility and
accessibility. Each is defmed below:
Location- This category adjusts the sales for differences in location for linkages, area, and other factors.
Zoning· This category adjusts for differences in zoning and allowable land uses.
Size
>
This category adjusts for differences in the size of each comparable to the subject site. Typically,
smaller properties require downward adjustment as they tend to reflect higher unit prices than larger sites.
Larger properties require upward adjustment as they tend to reflect lower unit prices than smaller sites.
Site Utility . This category adjusts for differences in topography, development, configuration, and usability of
the site.
Visibility· This category adjusts for differences in the visibility of each sale to the suhject site.
Accessibility· This category adjusts for differences in the accessibility of each sale to the subject site.
The adjustment grid on the following page summarizes the adjustments for each of the sales as they apply to
the subject property. Adjustments for differences between the subject and each comparahle property are
expressed in percentages for property rights, buyer expenditures, financing, condition of sale, and market
conditions based on our analysis of the market, as applicable. Qualitative adjustments have been applied for
the location and other physical characteristics of each sale compared with the subj ect. A superior rating
indicates the market data item is being adjusted downward to the subject. An inferior rating indicates the
market data item is being adjusted npward to the subject. Each physical characteristic may not be weighted
equally. Then, an overall rating is assigned to each sale as it compares with the subject.
57
Analysis and Conclusions
The adjusted sales range from $70.98 to $556.08 per square foot, before adjusting for physical characteristics.
Based on our analysis of the land sales, the overall ratings of the adjusted sales compared to the subject
property are as follows:
Inferior (Sale Nos. 5, 6, 7 and 9)
Similar
Superior (Sale Nos. 1,2,3,4,8 and 10)
$70.98 to $139.50 per square foot
N/A
$169.40 to $556.08 per square foot
Based on our analysis, an expected value indicator for the subject should fall between $139.50 and $169.40
per square foot. Sale Nos. 5, 6, 7 and 9 were considered inferior to the subject overall at $70.98 to $139.50
per square foot, due primarily to inferior location, site utility and visibility as compared to the subject. They
set the lower range of value for the subject. Sale Nos. 1,2, 3,4, 8 and 10 were considered superior to the
subject overall at $169.40 to $556.08 per square foot, due primarily to superior zoning or entitlement status,
accessibility, or smaller size as compared to the subject. They set tbe upper range of value for the subject.
After considering adjustments for differences in property rights, buyer expenditures, financing, conditions of
sale, market conditions, location and physical cbaracteristics, it is our opinion that an appropriate value
indicator for the subject site, underlying land only, is $150.00 per square foot, which is within the range of
the market. Shown below is our calculation of the market value of subject site:
Land Area
Price/Square Foot Indicated Value
633,150±SF x
Indicated Value of the Subject Site
by the Sales Comparison Approach
$150.00 $94,972,500
Rounded To:
$94.970.000
The final conclusion or opinion has resulted from tbe application of the Sales Comparison Approach. In
summary, this approacb provides a value indicator for vacant land and is most commonly used by market
participants. The Sales Comparison Approach is considered to be the primary approacb to value. Please
refer to Extraordinary Assumption Nos. 18, 19, 20, 21, 22, 23, 25 and 26. Based on the data presented,
analysis, and reconciliation, tbe Market Value of the Fee Simple Interest in the subject property, underlying
land only, as of September 21, 2011, is:
NINETY-FOUR MILLION NINE HUNDRED SEVENTY THOUSAND DOLLARS '"~
"""""""""""""""""""""""."""""""""",,",,.,,"",,,,"""""""""""""""""""".$94,970,000.
59
At the request of the Client, we have calculated the annual market ground rent for the subject property as of
July 1 of 2011, 2012, 2013, 2014, 2015, 2016 and 2017 based upon the $94,970,000 concluded market value
of the fee simple interest in the subject property as of September 21, 2011. The market ground rent
calculations will be utilized in negotiations with the proposed developer, AEG, to establish a ground lease for
the subject property. According to the terms of the draft MOO, the proposed ground lease would have a 55
year term, with 1.75 percent annual escalations. Based upon our review of the draft MOO and analysis of the
market, it is our opinion that a 1.75 percent rent escalation rate is reasonable. Please refer to Extraordinary
Assumption No. 24.
The market was surveyed for current ground leases, rates of return, and leasing practices of both private firms
and public agencies to derive the estimated net operating income attributable to the land. No recent vacant
land leases were discovered in the area. Therefore, the market value of the land was multiplied hy an
appropriate rate of retnm to derive a market rental rate for the land. A survey of private firms and public
agencies was therefore conducted to determine their required rates of return on land. The following table
sbows the results of tbat survey:
CJ Se erstrom
&
Sons
Teacbers lnsurance
&
Annui Association
McDonald's, Cano a Park (Ground Lessee
Jack in the Box, Valencia (Ground Lessee)
Private
Private
Private
Private
9.0 to 10.0%
8.0 to 9.5%
5.3%
5.3%
Chili's, Pico Rivera (Ground Lessee
First lndustrial Ac uisitions, lnc. (Listin
Private
Private
5.1%
7.5 to 8.25%
City of Long Beacb
Coun of Los An eles
County of Oran e
Los An eles Coun MTA
MWDSC
Public
Public
Public
Public
Public
8.0 to 8.5%
8.0%
8.0 to 9.0%
6.5%
6.0 to 10.0%
Port of Lon Beacb Public 8.0 to 12.0%
San Bernardino County
Port of Los An eles
Southern California Edison
Public
Public
Public
10.0%
10.0%
10.0%
Land leases are typically written for a 5 to 12 percent return on tbe estimated value of the land. Our records
indicate tbat municipal agencies, sucb as The Metropolitan Water District of Southern California, Port
Authorities, and Southern California cities predominantly range from 6.5 to 10 percent. Private firms have
negotiated ground leases in the range of 5.1 to 10 percent. Based on our analysis, we conclude a 7.0 percent
rate of return is appropriate.
Tbe market value of the subject property as of July 1,2011 was considered to be unchanged from September
21, 20 11, consistent with our analysis of the market and the market condition adjustments utilized in the
valuation of the underlying land. A future value factor, based upon a 2.0 percent annual growth rate
commencing on September 21, 20 11, was applied to the concluded market value of the fee simple interest in
the subject property as of September 21, 20 II in order to calculate the market value of the subject property as
of July I of 2012, 2013, 2014, 2015, 2016 and 2017, as agreed with the client. The following table
60
summarizes our calculations of the market value of the subjectproperty as of July I of 2011, 2012, 2013,
2014,2015,2016 and 2017:
7/112011
7/112012
7/1/2013
7/112014
7/1/2015
7/1/2016
The concluded 7.0 percent rate ofrelum was multiplied by the calculated market value of the land as of July
I of 2011, 2012, 2013, 2014, 2015, 2016 and 2017 in order to derive the annual market rental rate for the
land on each of those dates. The annual market ground rental rates are calculated as follows:
The final conclusions or opinions have resulted from applying an appropriate rate of return on land to the
market land value for each year, which was calculated by applying a future value factor to the concluded
market value of the subject property as of September 21, 20II. Based on the data presented, analysis, and
reconciliation, the annual Market Ground Rent conclusions are:
As of July 1, 2011 $6,647,900
As of July 1, 2012 $6,751,381
As of July 1, 2013 $6,886,409
As of July I, 2014 $7,024,137
As of July 1, 2015 $7,164,619
As of July 1, 2016 $7,307,912
As of July 1, 2017 $7,454,070
61
·ADDENDA
SUBJECT PROPERTY LOOKING NORTHEAST FROM PICO BOULEVARD
SUBJECT PROPERTY LOOKING SOUTHEAST FROM CHICK HEARN COURT
STREET SCENE LOOKlNG NORTH ALONG LA LIVE WAY
WITH SUBJECT AT RIGHT OF PHOTO
STREET SCENE LOOKING SOUTH ALONG LA LIVE WAY
WITH SUBJECT AT LEFT OF PHOTO
STREET SCENE LOOKING EAST ALONG CHICK HEARN COURT
WITH SUBJECT AT RlGHT OF PHOTO
STREET SCENE LOOKING WEST ALONG CHICK HEARN COURT
WITH SUBJECT AT LEFT OF PHOTO
Chicago Title Company
Commercial/Industrial Division,
700 South Flower, Suite 800 Los Angeles, CA 90017 (213) 488-4300
Title Department:
Chicago Title Company
Attn: Dave Balassi
Email: [email protected]
Phone: (213) 488-4394
Fax: (213) 488-4360
Order No.: 116743050F-X49
PRELIMINARY REPORT
Property Address: AEG Los Angeles Stadium and Event Center
Dated as of: August 1,2011 at 7:30 am
In response to the application for a policy of title insurance referenced herein, Chicago Title Company
hereby reports tbat it is prepared to issue, or cause to be issued, as of the date bereof, a policy or policies
of Title Insurance describing tbe land and tbe estate or interest therein bereinaftcr set fortb, insuring
against loss wbich may be sustained by reason of any defect, lien or encumbrance not sbown or referred
to as an Exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions
and Stipulations or Conditions of said Policy forms.
The printed Exceptions and Exclusion from the coverage and Limitations on Covered Risks of said Policy
or Policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause.
When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters
shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the
parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title
Insurance which establisb a Deductible Amount and a Maximum Dollar Limit of Liability for certain
coverages are also set fortb in Attachment One. Copies of the policy forms should be read. They are
available from the office wbich issued this report.
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the
issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be
assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.
The policy(s) of title insurance to be issued hereunder will be policy(s) of Chicago Title Insurance Company
Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in
Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with
notice of matters which are not covered under the terms of the title insurance policy and should be
carefully considered.
It is important to note that this preliminary report is not a written representation as to the condition of
title and may not list all liens, defects, and encumbrances affecting title to the land.
CLTA Preliminary Report Form - Modified (ll-17-06)
Page 1
OrderNo.: 116743050F-X49
SCHEDULE A
1.
The estate or interest in the land hereinafter described or referred to covered by this report is:
A Fee
2.
Title to said estate or interest at the date hereof is vested in:
City of Los Angeles
3. The land referred to in this report is situated in the State of California, County of Los Angeles and
is described in the Legal Description, attached hereto:
END OF SCHEDULE A
CLTA Preliminary Report Form - Modified
(11-17~06)
Page 2
Order No.: 116743050F-X49
LEGAL DESCRIPTION
PARCEL A:
LOTS 1 TO 6 INCLUSIVE OF TRACT 28165, IN THE CITY OF LOS ANGELES, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 814 PAGES 66 TO 69
INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY,
TOGETHER WITH THAT PORTION OF TRENTON STREET SOUTH BETWEEN FIGUEROA
STREET AND PICO BOULEVARD AS SHOWN AND DEDICATED ON THE MAP OF TRACT
28165, NOW VACATED BY (COUNCIL FILE NO. 82-1136 OF THE CITY OF LOS ANGELES)
RESOLUTION NO. 83-01558 OF THE CITY OF LOS ANGELES, ON FILE IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY CLERK OF SAID CITY, AND RECORDED JUNE 5,
1990 AS INSTRUMENT NO. 90-1003283, AS SAID VACATION IS SHOWN IN VOLUME 23 PAGE
89 OF STREET VACATION MAPS ON FILE IN THE OFFICE OF CITY CLERKS OF SAID CITY
AND TOGETHER WITH ALL OF NAGOYA STREET AND TRENTON STREET SHOWN AS
TRENTON STREET NORTH ON THE MAP OF SAID TRACT 28165, BOUNDED AS FOLLOWS:
BOUNDED SOUTHEASTERLY BY A STRAIGHT LINE CONNECTING THE NORTHEASTERLY
TERMINUS OF THAT CERTAIN COURSE IN THE SOUTHEASTERLY LINE OF LOT 1 OF SAID
TRACT, SHOWN AS HAVING A BEARING AND LENGTH OF SOUTH 37° 41' 37" WEST, 187.38
FEET WITH THE SOUTHWESTERLY TERMINUS OF THAT CERTAIN COURSE IN THE
SOUTHEASTERLY LINE OF LOT 3 OF SAID TRACT, SHOWN AS HAVING A BEARING AND
LENGTH OF SOUTH 37° 41' 37" WEST, 363.89 FEET; AND BOUNDED NORTHERLY BY A LINE
DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEASTERLY TERMINUS OF THAT CERTAIN CURVE IN THE
NORTHERLY LINE OF SAID LOT 1, SHOWN AS HAVING A RADIUS OF 651 FEET, AND AN
ARC LENGTH OF 256.90 FEET; THENCE CONTINUING EASTERLY ALONG SAID CURVE
THROUGH A CENTRAL ANGLE OF 1° 59' 47", AN ARC DISTANCE OF 22.68 FEET; THENCE
SOUTH 86° 28' 08" EAST, 99.75 FEET TO THE NORTHERLY LINE OF LOT 2, SAID TRACT
28165, NOW VACATED BY (COUNCIL FILE NO. 82-1136 OF THE CITY OF LOS ANGELES)
RESOLUTION NO. 90-01558 OF THE CITY OF LOS ANGELES, ON FILE IN THE OFFICE OF THE
CITY CLERK OF SAID CITY, AND RECORDED AUGUST 16, 1990 AS INSTRUMENT NO. 90-
1426183, OFFICIAL RECORDS.
CLTA Preliminary Report
Form -
Modified
(J
1-17-06)
Page 3
Order No.: 116743050F-X49
LEGAL DESCRIPTION
(continued)
EXCEPTING THEREFROM:
THOSE PORTIONS OF LOTS 1, 2 AND 3 AND TRENTON STREET NORTH, 82 FEET AND 97
FEET WIDE, NOW VACATED BY (COUNCIL FILE NO, 82-1136 OF THE CITY OF LOS
ANGELES) RESOLUTION NO, 90-01558 OF THE CITY OF LOS ANGELES, ON FILE IN THE
OFFICE OF THE CITY CLERK OF SAID CITY, AND RECORDED AUGUST 16, 1990 AS
INSTRUMENT NO, 90-1426183, OFFICIAL RECORDS, AS SHOWN ON TRACT NO, 28165, IN
THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER
MAP RECORDED IN BOOK 814 PAGES 66 PAGES 66 TO 69 INCLUSIVE OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS A WHOLE AS
FOLLOWS:
BEGINNING AT A POINT ON THE NORTHEASTERLY LINE OF LOT 1, DISTANT THEREON
SOUTH 61 DEGREES 51 MINUTES 21 SECONDS EAST 652.41 FEET FROM THE
NORTHWESTERLY TERMINUS OF SAID LINE SHOWN AS SOUTH 61 DEGREES 51 MINUTES
43 SECONDS EAST 666,02 FEET ON SAID TRACT NO, 28165 THEREOF; THENCE SOUTH 28
DEGREES 08 MINUTES 39 SECONDS WEST 44.47 FEET TO THE BEGINNING OF A CURVE
CONCAVE NORTHERLY AND HAVING A RADIUS OF 105,00 FEET; THENCE
SOUTHWESTERLY, WESTERLY AND NORTHWESTERLY 138,02 FEET ALONG SAID CURVE
THROUGH A CENTRAL ANGLE OF 75 DEGREES 18 MINUTES 41 SECONDS; THENCE NORTH
76 DEGREES 32 MINUTES 40 SECONDS WEST 33,23 FEET TO THE BEGINNING OF A CURVE
CONCAVE SOUTHERLY AND HAVING A RADIUS OF 43,00 FEET; THENCE WESTERLY 29,66
FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 39 DEGREES 31 MINUTES 13
SECONDS; THENCE ON A NON-TANGENT LINE SOUTH 61 DEGREES 32 MINUTES 47
SECONDS EAST 162,17 FEET; THENCE NORTH 28 DEGREES 27 MINUTES 13 SECONDS EAST
31.50 FEET; THENCE SOUTH 61 DEGREES 32 MINUTES 47 SECONDS EAST 34,73 FEET;
THENCE SOUTH 28 DEGREES 27 MINUTES 13 SECONDS WEST 31.50 FEET; THENCE SOUTH
61 DEGREES 32 MINUTES 47 SECONDS EAST 32,62 FEET; THENCE 28 DEGREES 25 MINUTES
47 SECONDS WEST 269.35 FEET; THENCE SOUTH 61 DEGREES 48 MINUTES 26 SECONDS
EAST 63,37 FEET; THENCE NORTH 73 DEGREES 31 MINUTES 42 SECONDS EAST 60.45 FEET,
TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE WESTERLY, HAVING A
RADIUS OF 161.60 FEET AND TO WHICH BEGINNING A RADIAL LINE BEARS NORTH 72
DEGREES 37 MINUTES 32 SECONDS EAST; THENCE SOUTHWESTERLY 100.58 FEET ALONG
SAID CURVE THROUGH A CENTRAL ANGLE OF 35 DEGREES 39 MINUTES 46 SECONDS;
THENCE ON A NON-TANGENT LINE; SOUTH 61 DEGREES 37 MINUTES 19 SECONDS EAST
377.64 FEET TO THE NORTHWESTERLY RIGHT OF WAY LINE OF FIGUEROA STREET, 112
FEET WIDE, AS SHOWN ON SAID MAP, THENCE NORTH 37 DEGREES 41 MINUTES 47
SECONDS EAST 61.43 FEET ALONG SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF
FIGUEROA STREET, 112 FEET WIDE, TO THE NORTHEASTERLY TERMINUS OF THAT
CERTAIN COURSE IN THE MOST SOUTHEASTERLY LINE OF SAID LOT 1 SHOWN AS SOUTH
37 DEGREES 41 MINUTES 37 SECONDS WEST 187,38 FEET; THENCE ON A DIRECT LINE
NORTH 42 DEGREES 20 MINUTES 09 SECONDS EAST 123,63 FEET TO THE EASTERLY
TERMINUS OF THAT CERTAIN COURSE IN THE MOST SOUTHEASTERLY LINE OF SAID LOT
CLT A Preliminary Report Fonn - Modified (11-17-06)
Page 4
OrderNo.: 116743050F-X49
LEGAL DESCRIPTION
(continued)
3; SHOWN AS SOUTH 78 DEGREES 04 MINUTES 11 SECONDS WEST 22.85 FEET; THENCE
NORTH 37 DEGREES 41 MINUTES 47 SECONDS EAST 545.94 FEET ALONG THE
NORTHWESTERLY RIGHT-OF-WAY LINE OF FIGUEROA STREET, 102 FEET WIDE, AS
SHOWN ON SAlD MAP TO THE MOST EASTERLY CORNER OF LOT 2; THENCE NORTH 15
DEGREES 32 MINUTES 53 SECONDS WEST 17.90 FEET ALONG THE EASTERLY LINE OF
SAID LOT 2 TO A POINT ON THE SOUTHERLY RIGHT-OF-WAY LINE OF SAID ELEVENTH
STREET, 102 FEET WIDE, AS SHOWN ON SAID MAP, SAID RIGHT-OF-WAY LINE BEING A
NON-TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 549.00 FEET TO
WHICH BEGINNING A RADIAL LINE BEARS NORTH 20 DEGREES 09 MINUTES 57 SECONDS
EAST; THENCE WESTERLY 159.32 FEET ALONG SAID CURVED RIGHT-OF-WAY THROUGH
A CENTRAL ANGLE OF 16 DEGREES 37 MINUTES 40 SECONDS; THENCE NORTH 86
DEGREES 27 MINUTES 43 SECONDS WEST 235.98 FEET ALONG SAID SOUTHERLY RIGHT-
OF-WAY LINE OF ELEVENTH STREET, TO THE NORTHEASTERLY TERMINUS OF THAT
CERTAIN COURSE IN THE NORTHERLY LINE OF SAID LOT 2; SHOWN AS NORTH 50
DEGREES 01 MINUTES 32 SECONDS EAST 21.76 FEET ON SAlD MAP; THENCE NORTH 86
DEGREES 16 MINUTES 08 SECONDS WEST 122.45 FEET ALONG A DIRECT LINE TO THE
EASTERLY TERMINUS OF THAT CERTAlN CURVE IN THE SOUTHERLY LINE OF SAID
ELEVENTH STREET, 102 FEET WIDE, AS SHOWN ON SAlD MAP, HAVING A RADIUS OF 651
FEET, SAID POINT ALSO BEING THE BEGINNING OF A NON-TANGENT CURVE CONCAVE
NORTHEASTERLY AND HAVING A RADIUS OF 651.00FEET, AND TO WHICH BEGINNING A
RADIAL LINE BEARS SOUTH 5 DEGREES 31 MINUTES 37 SECONDS WEST; THENCE
WESTERLY AND NORTHWESTERLY 256.98 FEET ALONG SAID CURVE THROUGH A
CENTRAL ANGLE OF 22 DEGREES 37 MINUTES 03 SECONDS; THENCE NORTH 61 DEGREES
51 MINUTES 21 SECONDS WEST 13.62 FEET ALONG THE SOUTHEASTERLY RIGHT-OF-WAY
OF ELEVENTH STREET, 102 FEET WIDE TO THE POINT OF BEGINNING.
EXCEPT FROM THAT PORTION OF SAlD LAND INCLUDED WITHIN LOTS 13 AND 14, BLOCK
2 OF SAID SENTOUS TRACT, ALL GAS, OIL AND MINERAL BELOW A DEPTH OF 500 FEET,
WITHOUT RIGHT OF SURFACE ENTRY, AS GRANTED TO ROBERT W.P. MONTGOMERY, A
MARRIED MAN, BY DEED RECORDED JULY 18, 1967 IN BOOK D3706 PAGE 541, OFFICIAL
RECORDS, AS INSTRUMENT NO. 3015.
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITHIN LOT 70 OF SAlD
KINCAID'S TRACT AND THE SOUTHWESTERLY 6 FEET OF THE ALLEY ADJOINING SAlD
LOT 70; LOTS 42 AND 43 OF SAID FORMAN'S SUBDIVISION OF THE WEST 20 ACRES OF LOT
8, BLOCK 36 OF HANCOCK'S SURVEY, ALL GAS, OIL AND MINERALS BELOW A DEPTH OF
500 FEET WITHOUT RIGHT OF SURFACE ENTRY AS GRANTED LOT JAMES A. HENDERSON,
A MARRIED MAN BY DEED NOVEMBER 16, 1966 IN BOOK D3483 PAGE 677, OFFICIAL
RECORDS, AS INSTRUMENT NO. 2050.
ALSO EXCEPT FROM THAT PORTION OF SAlD LAND INCLUDED WITHIN LOT 16 OF SAID
KUGHEN AND CASTERLINE'S SUBDIVISION OF THE WARD TRACT, AN UNDIVIDED ONE-
HALF INTEREST AND TO ALL CARBONS, MINERALS HYDROCARBONS AND OIL AND GAS
APPURTENANT TO SAID LAND AS GRANTED TO CAROLE
L.
BENSON BY DEED RECORDED
MARCH 29, 1968 IN BOOK D3955 PAGE 794, OFFICIAL RECORDS.
BY AN INSTRUMENT DATED JUNE 6,1968 EXECUTED BY CAROLE
L.
BENSON, ALL RIGHTS
TO ENTER UPON THE SURFACE OF SAID LAND WERE QUITCLAlMED TO THE CITY OF LOS
ANGELES RECORDED JUNE 28,1968 AS INSTRUMENT NO. 2969.
CLTA Preliminary Report Form" Modified (11-17-06)
Page 5
Order No.: 116743050F·X49
LEGAL DESCRIPTION
(continued)
ALSO EXCEPT FROM THAT PORTION OF SAlD LAND INCLUDED WITHIN LOT 38 OF SAlD
KINCAID'S TRACT, ALL OF THE OIL, GAS, GOLD, SILVER AND OTHER PRECIOUS METALS,
MINERALS AND MINERAL SUBSTANCES AND OTHER HYDROCARBON SUBSTANCES, AS
GRANTED TO SAHARA APTS., INC., A CORPORATION, BY DEED RECORDED IN BOOK 56379
PAGE 119, OFFICIAL RECORDS, BUT WITHOUT THE RIGHT OF SURFACE ENTRY AND
QmTCLAlMED BY SAID SAl-IARA APTS., INC., IN DEED RECORDED IN BOOK D1492 PAGE
847, OFFICIAL RECORDS. A DEED TO THE CITY OF LOS ANGELES FURTHER RECITES, "IT IS
FURTHER UNDERSTOOD THAT ALL DIRECTIONAL DRILLING SHALL BE CONDUCTED IN
SUCH A MANNER THAT THE WELLS, HOLE, SHAFT OR OTHER MEANS OF REACHING OR
REMOVING SUCH OIL, GAS OR OTHER HYDROCARBON SUBSTANCES DOES NOT
PENETRATE ANY PART OR PORTION OF SAlD REAL PROPERTY WITHIN 500 FEET OF THE
SURFACE THEREOF".
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITHIN THAT LOT
PORTION OF LOT 3, BLOCK 4 OF SAID SENTOUS TRACT, ALL MINERALS, OILS, GASES AND
OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN THAT MAY BE WITHIN OR
UNDER SAlD PORTION OF LOT 3, WITHOUT, HOWEVER THE RIGHT TO DRILL, DIG OR
MINE THROUGH THE SURFACE OF SAlD LAND AS RESERVED BY STATE OF CALIFORNIA,
IN DEED RECORDED SEPTEMBER 24,1958 AS INSTRUMENT NO. 3651 IN BOOK D225 PAGE
376, OFFICIAL RECORDS.
ALSO EXCEPT FROM THAT PORTION OF SAlD LAND INCLUDED WITHIN LOTS 2, 3 AND 14,
BLOCK 4 OF SAID SENTOUS TRACT, ALL GAS, OIL AND MINERALS BELOW THE DEPTH OF
500 FEET, WITHOUT THE RIGHT OF SURFACE ENTRY AS GRANTED TO COMERA TYPE,
INC., A CORPORATION BY DEED RECORDED DECEMBER 19, 1967 AS INSTRUMENT NO.
2531 IN BOOK 03862 PAGE 920, OFFICIAL RECORDS.
ALSO EXCEPT FROM THAT PORTION OF SAlD LAND INCLUDED WITHIN LOTS 1 TO 19 OF
SAID KINCAID'S TRACT, ALL OIL, GAS AND HYDROCARBON SUBSTANCES LYING
BENEATH A DEPTH OF 500 FEET FROM THE PRESENT SURFACE OF SAlD LAND AND
WITHOUT ANY RIGHT OF ENTRY UPON THE SURFACE OF SAlD LAND ABOVE SAID 500
FOOT DEPTH, TOGETHER WITH ANY AND ALL LEASES AFFECTING SUCH OIL AND GAS,
ETC., WHETHER OF RECORD OR NOT, AS RESERVED TO THE GRANTOR THEREIN IN DEED
EXECUTED BY R. LESLIE KELLEY, A MARRIED MAN RECORDED APRIL 1, 1966 IN BOOK
D3257 PAGE 809, OFFICIAL RECORDS, AS INSTRUMENT NO. 1580.
ADEED TO THE CITY OF LOS ANGELES FURTHER RECITES; "IT IS FURTHER UNDERSTOOD
THAT ALL DIRECTIONAL DRILLING SHALL BE CONDUCTED IN SUCH A MANNER THAT
THE WELL, HOLE SHAFT OR OTHER MEANS OF REACHING OR REMOVING SUCH OIL, GAS
OR OTHER HYDROCARBON SUBSTANCES DOES NOT PENETRATE ANY PART OR PORTION
OF SAID REAL PROPERTY WITHIN 500 FEET OF THE SURFACE THEREOF".
CLTA Preliminary Report
Form -
Modified (11-17-06)
Page 6
OrderNo.: 1167430S0F-X49
LEGAL DESCRIPTION
(continued)
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITHIN PORTIONS OF LOT
8, BLOCK 36, HANCOCK'S SURVEY SPECIFICALLY DESCRIBED IN DECREES OF
DISTRIBUTION RECORDED IN BOOK D4172 PAGE 989, OFFICIAL RECORDS, IN BOOK D4330
PAGE 949, OFFICIAL RECORDS, IN BOOK D4275 PAGE 35, OFFICIAL RECORDS AND IN
BOOK D4038 PAGE 742, OFFICIAL RECORDS (CITY PARCELS 50, 51, II, 12 AND 13). THE
EASTERLY 25 FEET OF LOT 25 AND ALL OF LOTS 26, 30, 31, 41, 42, 59, 62, 63 AND 64. THE
SOUTHWESTERLY 25 FEET OF LOT 53 ALL IN FORMAN'S SUBDIVISION OF THE WEST 20
ACRES OF LOT 8 BLOCK 36 OF HANCOCK'S SURVEY, PORTIONS OF LOTS 12 AND 13 OF
KUGHEN AND CASTERLINE'S SUBDIVISION, OF THE WARD TRACT RECORDED IN BOOK
D4330 PAGE 975, OFFICIAL RECORDS (CITY PARCEL 52); LOTS 39, 45 (44 PORTIONS OF 46
AND 48, RECORDED IN BOOK D4337 PAGE 756, OFFICIAL RECORDS), (ALL OF LOT 47 AND
PORTION OF LOT 49 RECORDED OCTOBER 28, 1969 AS INSTRUMENT NO. 7262 IN BOOK
M3334 PAGE 145, OFFICIAL RECORDS). LOTS 51, 68, 69, 27 AND 29 ALL IN KINCAID'S TRACT
AND ALL OF THE FIRESTONE TRACT, ALL CRUDE OIL, PETROLEUM, GAS, ASPHALTUM
AND ALL KINDRED SUBSTANCES AND OTHER MINERALS OF WHATEVER NATURE IN,
UNDER, AND RECOVERABLE FROM THE REAL PROPERTIES, WITHOUT THE RIGHT TO
ENTER, DRILL OR PENETRATE IN OR UPON THE SURFACE OF SAID REAL PROPERTIES, OR
WITHIN 500 FEET THEREOF FOR THE PURPOSE OF RECOVERING CRUDE OIL, PETROLEUM,
GAS, ASPHALTUM AND ALL KINDRED SUBSTANCES AND OTHER MINERALS OF
WHATEVER NATURE AS EXCEPTED IN THE FINAL ORDERS OF CONDEMNATION, A
CERTIFIED COPY OF WHICH, WERE RECORDED IN VARlOUS INSTRUMENTS OF RECORD.
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITHIN THE REMAINING
LOTS ACQUIRED BY THE CITY OF LOS ANGELES, BY VARIOUS DEEDS OF RECORD (BUT
NOT INCLUDING THOSE PORTIONS OF SENTOUS STREET, ELEVENTH STREET, GEORGIA
STREET DESCRIBED IN DEEDS RECORDED APRIL 9, 1885, IN BOOK 137 PAGE 390 OF DEEDS,
IN BOOK 137 PAGE 391 OF DEEDS, IN BOOK 137 PAGE 392 OF DEEDS, IN BOOK 137 PAGE 393
OF DEEDS, RELINQUISHMENT RECORDED APRIL 22, 1964 IN BOOK R1896 PAGE 67,
OFFICIAL RECORDS AND LOT 17 OF KUGHEN AND CASTERLINE'S SUBDIVISION OF THE
WARD TRACT):
ALL OIL, GAS AND OTHER CARBON SUBSTANCES IN, UNDER AND RECOVERABLE FROM
SAID HEREINBEFORE DESCRIBED PROPERTY, TOGETHER WITH THE RIGHT TO DRILL FOR
AND PRODUCE SUCH OIL, GAS AND OTHER HYDROCARBON SUBSTANCES BY
DIRECTIONAL DRILLING CONDUCTED FROM SURFACE LOCATIONS ON LAND OTHER
THAN THE LANDS HEREINABOVE MENTIONED; IT BEING UNDERSTOOD THAT SUCH
EXCEPTION AND RESERVATION SHALL NOT OPERATE TO CREATE ANY RIGHT TO
CONDUCT DRILLING OPERATIONS FROM ANY PORTIONS OF THE SURFACE OF SAID
ABOVE DESCRIBED LAND. IT IS FURTHER UNDERSTOOD THAT ALL DIRECTIONAL
DRILLING, SHALL BE CONDUCTED IN SUCH A MANNER THAT THE WELL, HOLE SHAFT OR
OTHER MEANS OF REACHING OR REMOVING SUCH OIL, GAS OR OTHER HYDROCARBON
SUBSTANCES DOES NOT PENETRATE ANY PART OR PORTION OF SAID REAL PROPERTY
WITHIN 500 FEET OF THE SURFACE THEREOF, AS RESERVED BY VARIOUS DEEDS OF
RECORD.
CLTA Preliminary Report Form - Modified (11-1 7-06)
Page 7
Order No.: 1167430S0F-X49
LEGAL DESCRIPTION
(continued)
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITillN THE LAND
DESCRIBED IN THE FINAL ORDER OF CONDEMNATION, A CERTIFIED COPY OF WHICH
WAS RECORDED APRIL 25,1969 AS INSTRUMENT NO. 3171 ALL CRUDE OIL, PETROLEUM,
GAS, ASPHALTUM AND ALL KINDRED SUBSTANCES AND OTHER MINERALS OF
WHATEVER NATURE IN, UNDER AND RECOVERABLE FROM THE SAID REAL PROPERTIES
WITHOUT THE RIGHT TO ENTER, DRILL OR PENETRATE IN OR UPON THE SURFACE OF
SAID REAL PROPERTIES, OR WITHIN 500 FEET THEREOF, FOR THE PURPOSES OF
RECOVERING CRUDE OIL, PETROLEUM, GAS, ASPHALTUM AND ALL KINDRED
SUBSTANCES AND OTHER MINERALS OF WHATEVER NATURE. AS EXCEPTED IN THE
FINAL ORDER CONDEMNATION, A CERTIFIED COPYOF wmCH WAS RECORDED APRIL 25,
1969 IN BOOKD4350 PAGE 624, OFFICIAL RECORDS AS INSTRUMENT NO. 3171.
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITillN THE LAND
DESCRIBED IN THE FINAL ORDER OF CONDEMNATION, A CERTIFIED COPY OF wmcn
WAS RECORDED JUNE 10, 1969 AS INSTRUMENT NO. 2600 ALL CRUDE OIL, PETROLEUM,
GAS, ASPHALTUM AND ALL KINDRED SUBSTANCES AND OTHER MINERALS OF
WHATEVER NATURE IN, UNDER AND RECOVERABLE FROM THE SAID REAL PROPERTIES
WITHOUT THE RIGHT TO ENTER, DRILL OR PENETRATE IN OR UPON THE SURFACE OF
SAID REAL PROPERTIES, OR WITHIN 500 FEET THEREOF, FOR THE PURPOSES OF
RECOVERING CRUDE OIL, PETROLEUM, GAS, ASPHALTUM AND ALL KINDRED
SUBSTANCES AND OTHER MINERALS OF WHATEVER NATURE, AS EXCEPTED IN THE
FINAL ORDER OF CONDEMNATION, A CERTIFIED COpy OF WHICH WAS RECORDED JUNE
10,1969 IN BOOK D4397 PAGE 132, OFFICIAL RECORDS, AS INSTRUMENT NO. 2600.
ALSO EXCEPT FROM THAT PORTION OF SAID LAND INCLUDED WITillN THE LAND
DESCRIBED IN THE FINAL ORDER OF CONDEMNATION, A CERTIFIED COPY OF wmcn
WAS RECORDED JANUARY 23, 1970 AS INSTRUMENT NO. 2758 ALL CRUDE OIL,
PETROLEUM, GAS, ASPHALTUM AND ALL KINDRED SUBSTANCES AND OTHER MINERALS
OF WHATEVER NATURE IN, UNDER AND RECOVERABLE FROM THE SAID REAL
PROPERTIES WITHOUT THE RIGHT TO ENTER, DRILL OR PENETRATE IN OR UPON THE
SURFACE OF SAID REAL PROPERTIES, OR WITillN 500 FEET THEREOF, FOR THE PURPOSES
OF RECOVERING CRUDE OIL, PETROLEUM, GAS, ASPHALTUM AND KINDRED
SUBSTANCES AND OTHER MINERALS OF WHATEVER NATURE, AS EXCEPTED IN THE
FINAL ORDER OF CONDEMNATION, A CERTIFIED COpy OF WHICH WAS RECORDED
JANUARY 23,1970 IN BOOK D4615 PAGE 229, OFFICIAL RECORDS.
PARCELB:
PARCELS 1 AND 2 OF OFFICIAL MAP NO.2, IN THE CITY OF LOS ANGELES, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA, RECORDED ON JUNE 14, 1989 AS INSTRUMENT NO.
89-958587, IN BOOK 5 PAGES 38 TO 40 OF OFFICIAL MAPS.
EXCEPT FROM SAID PARCEL 1 THAT PORTION THEREOF DESCRIBED AS "PARCEL S-I AND
S-3" IN GRANT DEED TO THE STATE OF CALIFORNIA RECORDED MARCH I, 1994 AS
INSTRUMENT NO. 94-415105, OF OFFICIAL RECORDS.
CLTA Preliminary Report
Form ~
Modified
(l1-17~06)
Page 8
Order No.: 116743050F-X49
LEGAL DESCRIPTION
(continued)
PARCELC:
PARCEL 1:
A PARCEL OF LAND, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, BEING THAT PORTION OF THE AIRSPACE OVER PICO BOULEVARD, 102 FEET
WIDE, AS SHOWN ON THE MAP OF TRACT 28165, AS PER MAP RECORDED IN BOOK 814
PAGES 66 PAGES 66 TO 69 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY, BOUNDED NORTHWESTERLY BY A LINE PARALLEL WITH
AND DISTANT 280 FEET NORTHWESTERLY MEASURED AT RIGHT ANGLES FROM THE
SOUTHEASTERLY LINE AND ITS PROLONGATION OF LOT 5, DENNIS AND STEWART'S
ADDITION, AS PER MAP RECORDED IN BOOK 6 PAGE 440 OF MISCELLANEOUS RECORDS,
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND BOUNDED
SOUTHEASTERLY BY A LINE PARALLEL WITH AND DISTANT 10 FEET NORTHWESTERLY
MEASURED AT RIGHT ANGLES FROM THE SOUTHEASTERLY LINE AND ITS
PROLONGATION OF SAID LOT 5, SAID AIRSPACE LYING ABOVE A HORIZONTAL DATUM
PLANE AT AN ELEVATION WHICH IS 15 FEET 0 INCH ABOVE THE MAXIMUM TOP OF CURB
ELEVATION BELOW SAID AIRSPACE ON THE NORTHERLY SIDE OF SAID PICO
BOULEVARD AS SAID CURB IS SHOWN ON PLAN NO. P-25905 ON FILE IN THE OFFICE OF
THE CITY ENGINEER OF THE CITY OF LOS ANGELES.
PARCEL 2:
A PARCEL OF LAND, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF
CALIFORNlA, BEING THAT PORTION OF THE AIRSPACE OVER PICO BOULEVARD, 102 FEET
WIDE, AS SHOWN ON SAID MAP OF TRACT 28165, BOUNDED NORTHWESTERLY BY A LINE
PARALLEL WITH AND DISTANT 7 FEET THE NORTHWESTERLY MEASURED AT RIGHT
ANGLES FROM THE NORTHWESTERLY LINE AND ITS PROLONGATION OF LOT 4, BLOCK 1,
WRIGHT'S SUBDIVISION OF THE SISTER OF CHARlTY TRACT, AS PER MAP RECORDED IN
BOOK 5 PAGE 431 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY, AND BOUNDED SOUTHEASTERLY BY A LINE PARALLEL
WITH AND DISTANT 28 FEET SOUTHEASTERLY MEASURED AT RIGHT ANGLES FROM
SAID NORTHWESTERLY LINE AND ITS PROLONGATION OF LOT 4, SAID AIRSPACE LYING
ABOVE A HORIZONTAL DATUM PLANE AT AN ELEVATION WHICH IS 15 FEET 0 INCH
ABOVE THE MAXIMUM TOP OF CURB ELEVATION BELOW SAID AIRSPACE ON THE
NORTHERLY SIDE OF SAID PICO BOULEVARD AS SAID CURB IS SHOWN ON PLAN NO. P-
25905 ON FILE IN THE OFFICE OF THE CITY ENGINEER OF THE CITY OF LOS ANGELES.
CLTA Preliminary Report
Form -
Modified (11-17-06)
Page 9
Order No.:
J
16743050F-X49
LEGAL DESCRIPTION
(continued)
PARCEL D: (STAPLES CENTER)
THOSE PORTIONS OF LOTS 1, 2 AND 3 AND TRENTON STREET NORTH, 82 FEET AND 97
FEET WIDE, NOW VACATED BY (COUNCIL FILE NO. 82-1136 OF THE CITY OF LOS
ANGELES) RESOLUTION NO. 90-01558 OF THE CITY OF LOS ANGELES, ON FILE IN THE
OFFICE OF THE CITY CLERK OF SAID CITY, AND RECORDED AUGUST 16, 1990 AS
INSTRUMENT NO. 90-1426183, OFFICIAL RECORDS, AS SHOWN ON TRACT NO. 26165, IN
THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER
MAP RECORDED IN BOOK 814 PAGES 66 TO 69 INCLUSIVE OF MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS A WHOLE AS FOLLOWS:
BEGINNING AT A POINT ON THE NORTHEASTERLY LINE OF LOT 1, DISTANT THEREON
SOUTH 61 DEGREES 51 MINUTES 21 SECONDS EAST 652.41 . FEET FROM THE
NORTHWESTERLY TERMINUS OF SAlD LINE SHOWN AS SOUTH 61 DEGREES 51 MINUTES
43 SECONDS EAST 66.02 FEET ON SAID TRACT NO. 28165 THEREOF; THENCE SOUTH 28
DEGREES 08 MINUTES 39 SECONDS WEST 44.47 FEET TO THE BEGINNING OF A CURVE
CONCAVE NORTHERLY AND HAVING A RADIUS OF 105.00 FEET; THENCE
SOUTHWESTERLY, WESTERLY AND NORTHWESTERLY 138.02 FEET ALONG SAlD CURVE
THROUGH A CENTRAL ANGLE OF 75 DEGREES 18 MINUTES 41 SECONDS; THENCE NORTH
76 DEGREES 32 MINUTES 40 SECONDS WEST 33.23 FEET TO THE BEGINNING OF A CURVE
CONCAVE SOUTHERLY AND HAVING A RADIUS OF 43.00 FEET; THENCE WESTERLY 29.66
FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 29 DEGREES 31 MINUTES 13
SECONDS; THENCE ON A NON-TANGENT LINE SOUTH 61 DEGREES 32 MINUTES 47
SECONDS EAST 162.17 FEET; THENCE SOUTH 28 DEGREES 27 MINUTES 13 SECONDS WEST
31.50 FEET; THENCE SOUTH 61 DEGREES 32 MINUTES 47 SECONDS EAST 34.73 FEET;
THENCE SOUTH 28 DEGREES 27 MINUTES 13 SECONDS WEST 31.50 FEET; THENCE SOUTH
61 DEGREES 32 MINUTES 47 SECONDS EAST 32.62 FEET; THENCE 28 DEGREES 25 MINUTES
47 SECONDS WEST 269.35 FEET; THENCE SOUTH 61 DEGREES 48 MINUTES 26 SECONDS
EAST 63.37 FEET; THENCE NORTH 73 DEGREES 31 MINUTES 42 SECONDS EAST 60.45 FEET,
TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE WESTERLY, HAVING A
RADIUS OF 161.60 FEET AND TO WHICH BEGINNING A RADIAL LINE BEARS NORTH 72
DEGREES 37 MINUTES 32 SECONDS EAST; THENCE SOUTHWESTERLY 100.58 FEET ALONG
SAID CURVE THROUGH A CENTRAL ANGLE OF 35 DEGREES 39 MINUTES 46 SECONDS;
CLTA Preliminary Report
Form -
Modified (11-17-06)
Page 10
Order No.: 116743050F-X49
LEGAL DESCRIPTION
(continued)
THENCE ON A NON-TANGENT LINE; SOUTH 61 DEGREES 37 MINUTES 19 SECONDS EAST
377.64 FEET TO THE NORTHWESTERLY RlGHT OF WAY LINE OF FIGUEROA STREET, 112
FEET WIDE, AS SHOWN ON SAID MAP, THENCE NORTH 37 DEGREES 41 MINUTES 47
SECONDS EAST 61.43 FEET ALONG SAID NORTHWESTERLY RlGHT-OF-WAY LINE OF
FIGUEROA STREET, 112 FEET WIDE, TO THE NORTHEASTERLY TERMINUS OF THAT
CERTAIN COURSE IN THE MOST SOUTHEASTERLY LINE OF SAlD LOT 1 SHOWN AS SOUTH
37 DEGREES 41 MINUTES 37 SECONDS WEST 187.38 FEET; THENCE ON A DIRECT LINE
NORTH 42 DEGREES 20 MINUTES 09 SECONDS EAST 123.63 FEET TO THE EASTERLY
TERMINUS OF THAT CERTAIN COURSE IN THE MOST SOUTHEASTERLY LINE OF SAlD LOT
3; SHOWN AS SOUTH 78 DEGREES 04 MINUTES 11 SECONDS WEST 22.85 FEET; THENCE
NORTH 37 DEGREES 41 MINUTES 47 SECONDS EAST 545.94 FEET ALONG THE
NORTHWESTERLY RlGHT-OF-WAY LINE OF FIGUEROA STREET, 102 FEET WIDE, AS
SHOWN ON SAlDMAP TO THE MOST EASTERLY CORNER OF LOT 2; THENCE NORTH 15
DEGREES 32 MINUTES 53 SECONDS WEST 17.90 FEET ALONG THE EASTERLY LINE OF
SAlD LOT 2 TO A POINT ON THE SOUTHERLY RlGHT-OF-WAY LINE OF SAID ELEVENTH
STREET, 102 FEET WIDE, AS SHOWN ON SAID MAP, SAID RlGHT-OF-WAY LINE BEING A
NON-TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 549.00 FEET TO
WHICH BEGINNING A RADIAL LINE BEARS NORTH 20 DEGREES 09 MINUTES 57 SECONDS
EAST; THENCE WESTERLY 159.32 FEET ALONG SAID CURVED RIGHT-OF-WAY THROUGH
A CENTRAL ANGLE OF 16 DEGREES 37 MINUTES 40 SECONDS; THENCE NORTH 86
DEGREES 27 MINUTES 43 SECONDS WEST 235.98 FEET ALONG SAID SOUTHERLY RlGHT-
OF-WAY LINE OF ELEVENTH STREET, TO THE NORTHEASTERLY TERMINUS OF THAT
CERTAlN COURSE IN THE NORTHERLY LINE OF SAID LOT 2; SHOWN AS NORTH 50
DEGREES 01 MINUTES 32 SECONDS EAST 21.76 FEET ON SAID MAP; THENCE NORTH 86
DEGREES 16 MINUTES 08 SECONDS WEST 122.45 FEET ALONG A DIRECT LINE TO THE
EASTERLY TERMINUS OF THAT CERTAIN CURVE IN THE SOUTHERLY LINE OF SAID
ELEVENTH STREET, 102 FEET WIDE, AS SHOWN ON SAID MAP, HAVING A RADIUS OF 651
FEET, SAID POINT ALSO BEING THE BEGINNING OF A NON-TANGENT CURVE CONCAVE
NORTHEASTERLY AND HAVING A RADIUS OF 651.00 FEET, AND TO WHICH BEGINNING A
RADIAL LINE BEARS SOUTH 5 DEGREES 31 MINUTES 27 SECONDS WEST; THENCE
WESTERLY AND NORTHWESTERLY 256.96 FEET ALONG SAID CURVE THROUGH A
CENTRAL ANGLE OF 22 DEGREES 37 MINUTES 03 SECONDS; THENCE NORTH 61 DEGREES
51 MINUTES 21 SECONDS WEST 13.62 FEET ALONG THE SOUTHEASTERLY RlGHT-OF-WAY
OF ELEVENTH STREET, 102 FEET WIDE TO THE POINT OF BEGINNING.
CLTA Preliminary Report Form" Modified (11-17-06)
Page 11
OrderNo.: 116743050F-X49
LEGAL DESCRIPTION
(continued)
EXCEPT THEREFROM, ALL OIL, CRUDE OIL, GAS, PETROLEUM, ASPHALTUM,
HYDROCARBONS, CARBONS, MINERALS, AND MINERAL SUBSTANCES, GOLD, SILVER
AND OTHER PRECIOUS METALS, AND OTHER KINDRED SUBSTANCES AND MINERALS OF
WHATEVER NATURE, IN, UNDER AND RECOVERABLE FROM THE HEREINBEFORE
DESCRIBED LAND, TOGETHER WITH THE RIGHT TO DRILL FOR AND PRODUCE SUCH OIL,
GAS AND OTHER HYDROCARBON SUBSTANCES BY DIRECTIONAL DRILLING
CONDUCTED FROM SURFACE LOCATIONS ON LAND OTHER THAN THE LANDS
HEREINABOVE MENTIONED, SUCH EXCEPTION AND RESERVATION SHALL NOT OPERATE
TO CREATE ANY RIGHT TO CONDUCT DRILLING OPERATIONS FROM ANY PORTION OF
THE SURFACE OF SAID ABOVE DESCRIBED LAND, ALL DIRECTIONAL DRILLING SHALL
BE CONDUCTED IN SUCH A MANNER THAT THE WELL, HOLE SHAFT OR OTHER
HYDROCARBON SUBSTANCES DOES NOT PENETRATE ANY PART OR PORTION OF SAID
REAL PROPERTY WITHIN 500 FEET OF THE SURFACE THEREOF, AS EXCEPTED AND
RESERVED IN VARIOUS INSTRUMENTS OF RECORD, THREE OF WHICH RECORDED
JANUARY 10, 1958 AS INSTRUMENT NO. 2914, IN BOOK 56379, PAGE 119, OCTOBER 23,1968
AS INSTRUMENT NO. 2933, IN BOOK D4172 PAGE 989 AND JANUARY 23, 1970 AS
INSTRUMENT NO. 2758 IN BOOK D4615 PAGE 229, ALL OF OFFICIAL RECORDS.
PARCEL E: (PICO BOULEVARD)
A PARCEL OF LAND, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, BEING THAT PORTION OF PICO BOULEVARD, 102 FEET WIDE, AS SHOWN ON
THE MAP OF TRACT 28165, AS PER MAP RECORDED IN BOOK 814 PAGES 66 PAGES 66 TO 69
INCLUSIVE OF MAPS BOUNDED AS FOLLOWS:
ON THE WEST BY THE SOUTHERLY PROLONGATION OF THE NORTHWESTERLY LINE OF
LOT 1 OF THE AFOREMENTIONED TRACT 28165 HAVING A BEARING OF NORTH 28° 21' 02"
EAST AND A DISTANCE OF 927.29 FEET;
ON THE EAST BY THE NORTHERLY PROLONGATION OF THE SOUTHEASTERLY LINE OF
PARCEL 1 OF OFFICIAL MAP NO.2, IN THE CITY OF LOS ANGELES, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, RECORDED ON JUNE 14, 1989 AS INSTRUMENT NO. 89-
958587, IN BOOK 5 PAGES 38 TO 40 OF OFFICIAL MAPS, HAVING A BEARING OF NORTH
2T
57' 40" EAST AND A DISTANCE OF 1,245.85 FEET.
PARCEL F: (SENTOUS STREET)
A PARCEL OF LAND, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, BEING THAT PORTION OF SENTOUS STREET, 102 FEET WIDE, AS SHOWN ON
THE MAP OF TRACT 28165, AS PER MAP RECORDED IN BOOK 814 PAGES 66 PAGES 66 TO 69
INCLUSIVE OF MAPS BOUNDED AS FOLLOWS:
ON THE NORTH BY THE SOUTHEASTERLY PROLONGATION OF A LINE IN THE
NORTHERLY LINE OF LOT 5 OF SAID TRACT 28165, I-IAVING A BEARING OF SOUTH 7° 24'
08" WEST AND A DISTANCE OF 29.20 FEET, AND ON THE SOUTH BY THE WESTERLY
PROLONGATION OF THE SOUTHERLY LINE OF LOT 1 OF SAID TRACT 28165 HAVING A
BEARING OF 61° 33' 15" WEST, AND A DISTANCE OF 920.18 FEET.
CLT A Preliminary Report
Form -
Modified (l1-17-06)
Page 12
