44073 Sierra Hwy
Lancaster, CA 93534

The subject property consists of a 2.12 acre commercially zoned site leased to the University of Antelope Valley, a private college. The lease was initially executed in 1964 and has been transferred and renewed and currently has an expiration date in 15 years. Upon expiration of the lease, the building improvements revert to the lessor. The current (March 2019) appraised value of the property is $4,300,000. This value was computed as the present value of the income stream from the ground lease, plus the present value of the land and the improvements upon expiration of the lease. The improvements consist of a motel property that has been converted to a ballroom and offices for the college. The improvements are reported at 37,248 square feet and consist of 2 two-story buildings, in average condition with nominal deferred maintenance. The front building is a two-story building that contains offices in the front and a ballroom, divisible into 3 individual rooms). The second floor consists of administrative offices. The building has a porte-cochere on its north side. The building is in average condition with no deferred maintenance. The carpet is dated. The rear building consists of a 3-story motel property that consists of administrative offices on the first 2 floors and the offices of the Athletic Department on the top floor. The building appears to be of average condition and average quality construction. The third floor has modern flooring however the first 2 floors have dated flooring. Exterior painting is required on the north side of the building but generally, the deferred maintenance is nominal.