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Compar- Sale Sales Adj. price
able No. Location date price Acres per sq. ft.1
1 Intersection of 12/99 $2,918,158 9.3 $7.20
Scholls-Sherwood Rd.
and Pacific Highway,
Sherwood, Oregon
2 20260 Pacific Highway,8/00 4,473,194 24.35/ 4.22/
Sherwood, Oregon (3,723,194(12.18 (7.02
adjusted) usable) adjusted)2
3 NW 12th Ave. and 9/96 1,097,705 7.3 3.81
Pacific Highway,
Sherwood, Oregon
4 T-S Road and 6/96 3,353,310 15.46 5.54
SW 90th Ave.,
Tualatin, Oregon
1 Because comparables 3 and 4 were sold 40 months and 43 months before
the valuation date, respectively, Mr. Kelley adjusted the sales prices upward
by 10.5 percent and 11.25 percent to account for inflation. No such
adjustments were made to comparables 1 and 2.
2 Only a portion of comparable 2 was suitable for commercial
development. Mr. Kelley determined that “approximately 50 percent” of the
site was zoned for exclusive farm use, which prohibited commercial
development. The seller of the property retained an option to repurchase that
portion of the land for $400,000, though the option was never exercised. The
seller also retained and exercised an option to repurchase a pad site on the
property for $350,000. In order to get an “apples-to-apples” comparison, Mr.
Kelley deducted $750,000, the total of the option prices, from the original
sales price to get an adjusted sales price for the portion of usable land that
was sold to and retained by the buyer.
Mr. Kelley determined that comparables 1 and 2 were high
indicators of value because they were located on Pacific Highway,
had superior exposure to traffic (exposure) than Phase 5, and
were better configured for commercial development.7 He
determined that comparable 3 was a low indicator due to the older
sales date and inferior configuration. Finally, he determined
7 Both experts used the phrase “high indicator of value” to
describe a comparable with a value greater than the property
being valued and the phrase “low indicator of value” to describe
a comparable with a value lower than the property being valued.
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Last modified: May 25, 2011