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Is it at all persuasive to mention geographic ties to the area as a reason for seeking to transfer to a school? I'm from an area just outside the city where the school is and went to undergrad nearby as well. I figured I could go through the school website and find a couple reasons for the school or I could just be honest and say "I want to practice in XXX you provide me the best opportunity to do so."

Any thoughts?

I'm pretty sure "ties" means things like family in the area, not things like low cost of living, open spaces, and good tapas restaurants. Not sure how you can research your way to ties.

I have a related question - is it better to roll this in to the PS or to highlight it in an addendum, or does it matter?

I just re-read your post and I get it now. I would mention your history with the area and just be honest about why you want to go. I think it is easy to be too obvious when pulling stats and facts for that kind of thing.