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HomeMy WebLinkAboutCRA-R-24-0001 Exhibit BExhibit "B" APPRAISAL REPORT UNIT 358 IN TOWN PARK PLAZA NORTH CONDOMINIUM LOCATED AT: 491 N.W. 19TH STREET MIAMI, FLORIDA PREPARED FOR: CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST COMMUNITY REDEVELOPMENT AGENCY 819 N.W. SECOND AVENUE MIAMI, FLORIDA As OF: OCTOBER 30, 2023 PREPARED BY: QUINLIVAN APPRAISAL, P.A. 7300 NORTH KENDALL DRIVE - SUITE 530 MIAMI, FLORIDA 33156 QUINLIVAN APPRAISAL A PROFESSIONAL ASSOCIATION 7300 NORTH KENDALL DRIVE, SUITE 530 MIAMI, FLORIDA 33156 Thomas F. Magenheimer, MAI State Certified General Appraiser RZ 553 November 1, 2023 Brian Zeltsman, RA Director of Architecture & Development City of Miami Southeast Overtown Park West Community Redevelopment Agency 819 N.W. Second Avenue Miami, Florida 33136 Dear Mr. Zeltsman: Telephone (305) 663-6611 Fax (305) 670-4330 tmagmai@aol.com In accordance with your request, I have prepared an Appraisal of the following described property: Unit 358 in Town Park Plaza North Condominium, located at 491 N.W. 19th Street, Miami, Florida The purpose of this Appraisal is to estimate the "as is" Market Value of the described property as of October 30, 2023, being one of the dates of personal inspection. The Appraisal Report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. This report is not based on any hypothetical conditions or extraordinary assumptions. The report was prepared in accordance with the requirements of and in compliance with the most current Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Standards Board of the Appraisal Foundation. Mr. Brian Zeltsman November 1, 2023 Page 2 Based on the inspection of the property and the investigation and analyses undertaken, I have formed the opinion that, as of October 30, 2023, the subject property had a Market Value of: Two HUNDRED TWENTY-THREE THOUSAND DOLLARS $223,000 Respectfully submitted, Thomas F. Magenheimer, MAI State Certified General Appraiser Certification Number: RZ 553 TFM/dm (23-070) TABLE OF CONTENTS PAGE COVER PAGE TRANSMITTAL LETTER TABLE OF CONTENTS CERTIFICATION OF VALUE 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 3 INTRODUCTION 9 INTRODUCTION 10 IDENTIFICATION OF THE PROPERTY 10 LOCATION 10 PURPOSE AND DATE OF APPRAISAL 10 INTENDED USE AND USER OF APPRAISAL 10 LEGAL DESCRIPTION 10 PROPERTY RIGHTS APPRAISED 10 DEFINITION OF MARKET VALUE 11 ASSESSMENT AND TAXES -2023 12 OWNER OF RECORD AND ADDRESS 12 THREE-YEAR HISTORY OF TITLE 12 ESTIMATED EXPOSURE TIME 13 ESTIMATED MARKETING PERIOD 13 SCOPE OF THE APPRAISAL 14 LOCATIONANALYSIS 16 COUNTY DATA 17 NEIGHBORHOOD DATA 26 SITE DATA 29 ZONING 33 HIGHEST AND BEST USE 36 DESCRIPTION OF IMPROVEMENTS 40 THE APPRAISAL PROCESS 44 SALES COMPARISON APPROACH 47 RECONCILIATION & VALUE CONCLUSION 52 ADDENDA 64 ASSUMPTIONS AND LIMITING CONDITIONS QUALIFICATIONS CLIENT LIST CERTIFICATION OF VALUE The undersigned hereby certifies that, to the best of my knowledge and belief: (A) The statements of fact contained in the report are true and correct. (B) The reported analyses, opinions and conclusions are limited only by the assumptions and limiting conditions set forth, and are my personal, unbiased professional analyses, opinions and conclusions. (c) I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. (D) I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. (E) My engagement in this assignment is not contingent upon developing or reporting predetermined results. (F) The appraiser's compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Furthermore, the appraisal assignment is not based on a requested minimum valuation, a specific valuation or the approval of a loan. (G) The appraiser's analyses, opinions and conclusions are developed, and this report is prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the State of Florida for state -certified appraisers. (x) Use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. Thomas F. Magenheimer has made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person signing this report. QUINLIVAN APPRAISAL 1 (K) The reported analyses, opinions, and conclusions are developed, and this report is prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. (L) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. (M) The undersigned has not performed appraisal services for the subject property during the three year period immediately preceding the acceptance of this assignment. As of the date of this report, Thomas F. Magenheimer has completed the requirements under the continuing education program for The Appraisal Institute. 41;4., THOMAS F. MAGENHEIMER, MAI State Certified General Appraiser Certification Number: RZ 553 QUINLIVAN APPRAISAL 2 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal Market Value Property Rights Appraised Fee Simple Address 491 N. W. 19th Street Miami, Florida Improvements A two- and three-story apartment complex with a total of 169 units. Building Age 1973 Unit Size 782 square feet Zoning T5-O, Urban Center Zone, Open Highest and Best Use Existing apartment complex Indications of Market Value: Cost Approach Income Approach Sales Comparison Approach Not Applicable Not Applicable $ 223,000 Final Estimate of Market Value $ 223,000 Date of Value Estimate October 30, 2023 Date of Inspection October 30, 2023 Date of Report November 1, 2023 QUINLIVAN APPRAISAL 3 LOOKING NORTHEASTERLY AT SUBJECT PROJECT FROM N. W. 19TH STREET LOOKING NORTHWESTERLY AT SUBJECT PROJECT FROM N. W. 19TH STREET QUINLIVAN APPRAISAL 4 LOOKING EASTERLY AT SUBJECT UNIT LOOKING WESTERLY AT SUBJECT UNIT QUINLIVAN APPRAISAL 5 INTERIOR VIEW INTERIOR VIEW QUINLIVAN APPRAISAL 6 INTERIOR VIEW INTERIOR VIEW QUINLIVAN APPRAISAL 7 LOOKING WESTERLY ON N.W.19TH STREET — SUBJECT TO RIGHT LOOKING EASTERLY ON N.W. 191n STREET — SUBJECT TO LEFT QUINLIVAN APPRAISAL 8 INTRODUCTION QUINLIVAN APPRAISAL 9 INTRODUCTION IDENTIFICATION OF THE PROPERTY Unit 358 in Town Park Plaza North Condominium. LOCATION 491 N. W. 19th Street Miami, Florida. PURPOSE AND DATE OF APPRAISAL The purpose of this Appraisal is to estimate the Market Value of the property as of October 30, 2023, being one of the dates of personal inspection. INTENDED USE AND USER OF APPRAISAL The intended use of this appraisal is to estimate the Market Value of the subject property for a possible sale of the property. The intended user is the City of Miami Southeast Overtown Park West Community Redevelopment Agency.. LEGAL DESCRIPTION Unit 358 and an undivided interest in the common elements thereof, in TOWN PARK PLAZA NORTH CONDOMINIUM, according to Declaration of Condominium thereof, recorded in Official Records Book 21368, Page 384, of the Public Records of Miami -Dade County, Florida. PROPERTY RIGHTS APPRAISED The property is appraised in fee simple: a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power and taxation, as well as utility easements of record. QUINLIVAN APPRAISAL 10 DEFINITION OF MARKET VALUE Market Value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised and acting in what they consider their own best interest; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75, No. 237, Page 77472 QUINLIVAN APPRAISAL 11 ASSESSMENT AND TAXES — 2023 The subject property is assessed under the jurisdiction of the City of Miami, Florida. The assessment for the property is established each year as of January 1st by the Miami -Dade County Property Appraiser's Office at 100% of "Just Value." Just Value has been equated to Market Value less closing costs. While the State of Florida requires real estate to be assessed at 100% of Just Value, in reality the ratio of the assessed value to sales price is generally below 100%. Folio Number: 01-3136-083-0910 County Market Value: $121,300 Assessed Value: $92,525 Millage Rate: $20.6152 per $1,000 Taxes: $1,04138 OWNER OF RECORD AND ADDRESS Sheila Marshall P. O. Box 11668 Miami, FL 33101 THREE-YEAR HISTORY OF TITLE According to a search of the Public Records of Miami -Dade County, there have no sales of the subject units during the past three years. QUINLIVAN APPRAISAL 12 ESTIMATED EXPOSURE TIME Exposure time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. In estimating a reasonable exposure time for the subject property, the following steps have been taken: Discussion with buyers, sellers, brokers and/or a review of multiple listings of similar properties in the area related to historic marketing periods. Based on the above sources, exposure time is estimated to have been 12 months for the subject property. ESTIMATED MARKETING PERIOD The estimated value of the subject is predicated upon a normal marketing period. A normal marketing period is generally defined as the most probable amount of time necessary to expose and actively market a property on the open market to achieve a sale. Implicit in this definition are the following assumptions: (A) The property will be actively exposed and aggressively marketed to potential purchasers through marketing channels commonly used by sellers and buyers of similar type properties. (B) The property will be offered at a price reflecting the most probable markup over market value used by sellers of similar type properties. (C) A sale will be consummated under the terms and conditions of the definition of Market Value required by the regulation. In order to estimate the marketability of this property, the sales activity in this market area was reviewed over the past three years, multiple listings were reviewed and real estate brokers who operate in this area were interviewed. Based on the above sources, the subject property could be sold within a 12-month time period. QUINLIVAN APPRAISAL 13 SCOPE OF THE APPRAISAL QUINLIVAN APPRAISAL 14 SCOPE OF THE APPRAISAL The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied, all based upon the following problem -identifying factors stated elsewhere in this report. This appraisal of the subject has been presented in the form of an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (a) of the USPAP. Data related to the subject property was derived from various sources including but not limited to the Miami -Dade County Property Appraiser's Office, Miami -Dade County, FEMA flood zone maps, Land Development Regulations of the City of Miami, Hopkins Plats, and tax roll information provided by Miami -Dade County Property Appraiser's Office. Comparable sale sources include Miami -Dade County Property Appraiser's Office, Board of Realtors' Multiple Listing Services, CoStar, and LoopNet. Sales prices are typically confirmed with a party to the transaction, i.e., buyer, seller, real estate agent or attorney to the transaction. A Cost Approach to Value is not applicable to the valuation of a partial interest in a condominium since condominium units include ownership of a percentage of the common elements of the condominium. It is not practical to divide the value of the common elements and allocate the value of the common area to the individual units. The subject property is a single apartment unit in a condominium with multiple units. This type of property is typically purchased by owner/users rather than as rental investments. An Income Approach to Value is therefore not considered applicable for the valuation of the subject property. A search for condominium apartment units in the subject market area was conducted. The initial sales period researched are January of 2021 through the date of valuation. The sales all have similar highest and best uses as the subject property. Several other sales were considered, but were not included because there was too wide a difference in physical factors, location and time. QUINLIVAN APPRAISAL 15 LOCATION ANALYSIS QUINLIVAN APPRAISAL 16 COUNTY DATA Miami -Dade County - Location and Size Miami -Dade County, which comprises the metropolitan area of Miami, is situated on the southeast tip of the state of Florida. It is bordered on the east by the Atlantic Ocean, on the west by Monroe and Collier Counties, on the north by Broward County, and on the south by Monroe County (the Florida Keys). Miami -Dade County, the largest county in area and population in the state of Florida, covers an area of 2,054 square miles with an altitude ranging from sea level to 25 feet. Water covers 354 square miles of the County. Although the County is relatively large, approximately half of the total area is comprised of the Everglades, which is a natural area that will not be developed. Therefore, only the eastern section of Miami -Dade County encompasses the area which is currently developed or available for future development. Miami -Dade County's location, its southern latitude and proximity to the Gulf Stream provide for mild winters and pleasant summers. Population The state of Florida has increased rapidly in population from 9,740,000 in 1980 to 12,937,926 in 1990, 15,982,378 in 2000, and 18,801,310 in 2010. The 2020 population of Florida was 21,538,226, an increase of 14.6% over the 2010 population. In 2022, the population of the state was 22,244,823 persons, a 3.3% increase over 2020. Miami -Dade County's population increased from 1,626,000 in 1980 to 1,937,094 in 1990, reflecting an average annual compounded growth rate of 1.77%, compared with 2.88% for the state of Florida. By 2010, Miami -Dade County's population increased to approximately 2,496,435. The population grew to 2,701,762 by the Year 2020, an increase of 8.2% over the 2010 population. By the Year 2022 the population decreased to 2,673,837, a decrease of 1.03% over the 2020 population. Miami -Dade County's population growth during the last four decades has been dramatic especially in relation to national trends. From 1950 to 1990 the United States population increased by 60% while the population of Miami -Dade County has almost quadrupled from 495,084 to 1,937,000. During this period, the state of Florida was elevated from the 20th most populous state to the 4th in 1990 and continues to be the fourth most populous state. During the 1960s, the major increase in Miami -Dade County's population was due to the large immigration of Cubans. Today, Cuban and other Spanish speaking people comprise approximately 62% of Miami -Dade County's population. The increase in Hispanic population has had favorable effects on the local economy and has helped to create a multi -national cultural environment in the area. QUINLIVAN APPRAISAL 17 The overall population of Miami -Dade County is well dispersed throughout the entire area, yet has several key areas of concentration. During the 1960s, several sub -areas accounted for approximately 70% of the growth. These areas include Hialeah, northern Miami -Dade County, the Beach area, the Miami River area, the area southwest of Miami International Airport, as well as the Kendall and Cutler Ridge areas. Since 1970, approximately three -fourths of the total population growth for the County has occurred in the unincorporated areas. The older centrally located cities such as Miami, Miami Beach and Coral Gables have grown at modest rates from 1970 to 1990. Unincorporated Miami - Dade County has evidenced the most rapid growth which continues to occur in areas in northeast Miami -Dade County (Aventura), as well as the currently expanding southwest area, especially in sections of Flagler Street, S.W. 8th Street, North Kendall Drive and Homestead. Population trends indicate that most of the population growth in Miami -Dade County between 2010 and 2020 occurred in outlying areas such as North Miami Beach, the Kendall area west of the Florida Turnpike, the S.W. 8th Street area west of the Florida Turnpike, the Hialeah -Miami Lakes area, as well as those areas both east and west of U.S. Highway 1 between Cutler Ridge and Florida City. Employment Trends The dominant characteristic of Miami -Dade County is that it is primarily trade and service based. Personal, business and repair services have had a substantial increase in importance in the economic base over the last decade. The major sectors of the economy include services, wholesale and retail trade, transportation, communications, public utilities, government and manufacturing. The most dominant industries which form the County's economic base are construction and tourism. Tourism is Miami -Dade County's biggest industry with an estimated 22.5 million visitors in 2022 contributing to more than 50 percent of the area's economy. Aviation and related industries are responsible for another large segment of the economy. The largest employer in Miami -Dade County is the Miami -Dade County School Board, followed by Miami -Dade County, University of Miami, Baptist Health Systems of South Florida, American Airlines, Jackson Health System, Florida International University, City of Miami, Mount Sinai Medical Center, and Florida Power and Light. Assuming additional importance is the growing prominence of Miami -Dade County as a center for international trade, finance and tourism. The establishment of Miami as the "Gateway of the Americas" should provide the area with a much needed degree of economic diversification. This should enable Miami -Dade County to weather slowdowns in the national economy by an increase of trade through the Port of Miami, growth of international arrivals at the airport, the Free Trade Zone, and the substantial foreign investment in the local economy, particularly in real estate. In April of 2023, Florida's unemployment rate was 2.3 percent, down from 4.5 percent in November of 2021 and a high of 14.2 percent in May of 2020. The unemployment rate for Miami -Dade County in April of 2023 was 1.8 percent, down from 3.5 percent in December of 2021. QUINLIVAN APPRAISAL 18 TABLE 1 ESTIMATES OF MIAMI-DADE COUNTY TOURIST TRENDS INTERNATIONAL DOMESTIC TOTAL 2016 7,624,200 8,100,000 15,724,200 2017 7,798,200 8,061,800 15,860,000 2018 5,779,000 10,730,000 16,509,000 2019 5,337,000 10,986,000 16,323,000 2020 1,842,000 6,036,000 7,878,000 2021 3,747,000 8,719,000 15,915,000 2022 4,743,000 14,426,000 19,169,000 Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures Figures for 2022 indicate 19,169,000 overnight visitors came to Miami -Dade County, a 20.5% increase from 2021. In 2021, the total overnight visitors were 15,915,000, an increase of 102% over 2020. TABLE 2 ESTIMATES OF DOMESTIC VISITORS BY REGION DOMESTIC MARKET 2018 2019 2020 2021 2022 NEW YORK 28.5% 28.4% 34.4% 36.6% 36.0% ATLANTA 7.6% 7.9% 10.9% 10.7% 10.9% CHICAGO 8.0% 8.0% 10.7% 10.1% 9.0% PHILADELPHIA 7.2% 7.3% 7.5% 7.0% 7.2% LOS ANGELES 6.4% 6.3% 6.4% 4.9% 7.2% BOSTON 4.2% 4.3% 6.5% 6.0% 6.7% WASHINGTON, DC 6.2% 6.2% 6.2% 6.2% 6.5% DALLAS 4.8% 4.6% 6.8% 7.3% 7.2% HOUSTON 3.9% 4.0% 5.7% 6.7% 5.7% DETROIT 3.5% 2.9% 4.9% 4.6% 4.5% Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures QUINLIVAN APPRAISAL 19 Table 2 indicates that the bulk of domestic visitors to Miami -Dade County originate from the New York (36.6%), Atlanta (10.7%) and Chicago (10.1%) market areas. Of the top ten domestic market visitors, the majority (49.6%) are from northeastern market areas. TABLE 3 ESTIMATES OF INTERNATIONAL VISITORS BY REGION REGION 2018 2019 2020 2021 2022 EUROPEAN COUNTRIES 31% 32.9% 15.6% 14.1% 13.7% CARIBBEAN COUNTRIES 10% 10.3% 18.6% 15.1% 21.9% CENTRAL AMERICAN COUNTRIES 10% 10.2% 17.5% 16.3% 19.4% SOUTH AMERICAN COUNTRIES 35% 31.0% 29.2% 40.2% 31.5% CANADA 6% 6.6% 8.1% 2.7% 5.3% OTHER COUNTRIES 8% 9.0% 11.0% 11.3% 8.2% TOTAL 100% 100% 100% 100% 100% Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures Table 3 shows that the bulk of international visitors to Miami -Dade County originate from Central and South American Countries (50.9%), followed by Caribbean Countries (21.9%) and European Countries (13.7%). England and Germany accounted for the largest proportion of European visitors. In 2022 there were a total of 3,677,176 passengers passing through the Port of Miami. During 2022, the number of Port of Miami passengers decreased 745.6% from 2021, but 31.9% less than 2019. In 2022 approximately 25,269,260 passengers arrived through Miami International Airport. The passengers arriving at the airport increased 35.9% from the previous year. The domestic arrivals at the airport far outpaced international passengers. In 2022, domestic arrivals totaled 14,648,800 and international arrivals totaled 10,621,100. As of December 2022, there were 61,973 motel and hotel rooms in 564 lodging facilities in Greater Miami and the Beaches. In 2022, the number hotels increased 41 and the number of rooms increased by 4,393 rooms. The majority of the hotels, 38.5%, are located in Miami Beach, followed by the airport area at 11.7%. The Miami area had an occupancy rate of 72.1 percent in 2022, an increase of 8% from 2021. The airport area had the highest occupancy rate in 2022 at around 84%. QUINLIVAN APPRAISAL 20 Average room rate for hotel rooms in Miami -Dade County was $289.74 in 2022, down from $312.74 in 2021. Therefore, the average hotel room rates in 2022 indicate a decrease of 7.4% over the 2020 rate. In 2021, the new hotels opening in the county included Tru by Hilton (72-rooms) and Home 2 Suite (145-room) in the airport area, and citizen M (351-rooms), AC Hotel (156-rooms), and Tru by Hilton (141-rooms) in the downtown market. In 2022, the new hotels in the county included Arlo Wynwood (217-rooms) in the Wynwood district, The Elser Hotel (646-rooms) in Downtown, Pelican Hotel (32-room) in Miami Beach, Esme (145-rooms) in Miami Beach, Loews Coral Gables (219-rooms), and citizen M Miami World Center (351-rooms) in the Brickell area. Miami -Dade Financial Resources Over the course of the last decade, Greater Miami has evolved into a major international financial center. Domestic and international businesses find convenient access to a full array of services provided by locally -based state and national commercial banks, savings and loan associations, foreign banks, non -depository credit institutions, securities and commodities brokers and insurance companies. Greater Miami has the largest concentration of domestic and international banks south of New York City. With more than 90 percent of the state's foreign banks operating offices in Miami, this market dominates international banking in Florida. Overall, about 150 domestic banks, foreign banks and Edge Act banks operate in Greater Miami. The greatest concentration is located along Brickell Avenue in downtown Miami. Transportation Miami -Dade County has an extensive expressway system with access to all points in the County. However, due to the rapidly increasing population, some of the expressways, especially Interstate 95, are becoming overburdened. In 1985 Miami -Dade County completed a 20.5 mile elevated rapid transit system. This system originally extended southward from downtown Miami to Dadeland, paralleling U.S. Highway 1 and northwesterly from downtown Miami to Hialeah. In 1999, the system was extended about a mile from Hialeah to the Palmetto Expressway at NW 74th Street. An expansion to the Miami International Airport opened in 2013. In conjunction with this system, there is a Downtown People Mover Automated Transit system which encircles the central business district of Miami and extends south to the Brickell area and north to the Omni area. Miami -Dade County is served by the CSX and Florida East Coast Railroads for freight and Amtrak Rail, TriRail and Brightline for passenger service, and Greyhound bus lines for passenger service. Miami International Airport, one of the nation's largest and busiest, had 458,478 aircraft arrivals and departures during 2022, an increase of 18.2% from 2021. As of March 2023, the airport had 41,062 aircraft arrivals and departures, a decrease of 2.4% from the same period in 2022. QUINLIVAN APPRAISAL 21 Miami has become a port of embarkation for ships bound for Central and South American Countries. The Port of Miami, besides being the largest passenger port in the nation, is also important as a cargo center with a 2021 annual tonnage of approximately 11.149 million, up 16% from 9.725 million in 2019. The port's traditional customer base has been Europe, China, Latin America and the Caribbean, accounting for 65% of the port's total volume. Miami's comprehensive transportation system and its strategic location have enabled it to become an important international transportation center, providing commercial access to Latin America and the Caribbean. Government Miami -Dade County is comprised of unincorporated areas, as well as 36 municipalities, the largest of which is the city of Miami. Miami -Dade County is governed under a modified two-tier metropolitan government. The purpose of this type government was to establish one governing body for the county, and to establish one supply of services such as fire, police, etc. for the county. The upper tier is the County, which provides broad "regional" or county functions, such as metropolitan planning, welfare, health and transit services. The thirty-six municipalities represent the lower tier of government, providing a varying array of services within their jurisdictional boundaries. The County also maintains lower tier functions, such as the provision of municipal -type services, including police and fire, to the unincorporated areas and certain municipalities on a negotiated basis. The County operates under the strong mayor form of government. Legislative and policy -making authority is vested in the elected thirteen -member Board of County Commissioners; the mayor appointed County Manager is the chief administrator. Miami -Dade County has operated under the metropolitan form of government since 1957, when the Home Rule Charter was passed by the local electorate. Prior to Home Rule, the County had to rely on the State Legislature for the enactment of its laws. County government had not been able to respond to the tremendous demand for municipal services in this rapidly urbanizing area, which is larger than the State of Rhode Island or Delaware. The need to combine services duplicated by the County and numerous cities was also clearly evident. The Charter permitted the limited County government to reorganize into a general purpose "municipal -type" government capable of performing the full range of public functions into an area wide operation. Real Estate The Miami -Dade County Office Market contains approximately 97.613 million square feet of office space. Approximately 22% in the Airport West area, 15% of this space is located in the Miami central business district and adjacent Brickell Avenue, 12% in Kendall, and 11% in Coral Gables. The vacancy rate of office buildings in Miami -Dade County decreased during the first quarter of 2023 to about 10.1%, down from 10.3% in the first quarter of 2022. During the first quarter of 2023, 4,724,300 square feet of office space was is under construction in Miami -Dade County. The absorption of office space during the first quarter of 2023 was a 204,400 square QUINLIVAN APPRAISAL 22 feet. Office rental rates in new buildings average approximately $51.70 per square foot. The low end of the range is for office space in the suburban markets. The upper end of the range is for first class office space in Downtown Miami, Brickell Avenue, Coconut Grove and Coral Gables. The Greater Miami Industrial Market consists of approximately 231.26 million square feet of industrial space in 5,433 buildings. The vacancy rate of industrial buildings in Miami -Dade County decreased in the first quarter of 2023 to about 1.8%, down from 2.7% in the first quarter of 2022. During the first quarter 2023, 9,882 thousand square feet is under construction in Miami -Dade County. The absorption of industrial space as of the first quarter of 2023 was 1,086 thousand square feet. Rental rates in new buildings average approximately $14.61 per square foot. The approximate percentage location of this space is as follows: MARKET AREA % OF TOTAL MARKET SPACE AIRPORT WEST 29.6% HIALEAH 25.6% MEDLEY 16.7% MIAMI LAKES 3.3% NORTHEAST DADE 4.8% NORTHCENTRAL DADE 14.9% SOUTH DADE 5.1% TOTAL 100% Miami-Dade's single-family home sales decreased 29.6% in the first quarter of 2023 in comparison with the first quarter of 2022 according to the Miami Association of Realtors. A total of 2,413 homes were reported sold in the first quarter of 2023, compared to 3,426 homes sold in the first quarter of 2022. In 2022 a total of 12,250 homes sold, compared to 15,705 homes in 2021. In the first quarter of 2023, the median sales price for single-family homes was $560,000, up 5.1% from the previous year. Existing condominium and townhouse sales showed a decrease of 46.5% in the first quarter of 2023 from in the first quarter of 2022 according to the Miami Association of Realtors. A total of 3,194 condominium and townhouse units were reported sold in the first quarter of 2023, compared to 5,972 condo units sold in the first quarter of 2022. In 2022 a total of 19,377 townhomes and condominium units sold, compared to 23,689 townhomes and condominiums in 2021. In the first quarter of 2023, the median sales price for condominium and townhouse units was $400,000, up 5.3% from the previous year. According to the Marcus & Millichap Multifamily Market Report Second Quarter 2023, the vacancy rate was 4.6% for rental apartment buildings in the Miami market area, which was a 110 basis points increase from the previous year. Apartment rents in Miami -Dade County averaged $2,631 per month, indicating an increase of 18% from the previous year. New apartment construction during 2022 will be nearly 8,800 units, indicating an increase of 2.7%. QUINLIVAN APPRAISAL 23 The Miami -Dade County retail market contains approximately 108.65 million square feet in 2,582 properties. The major retail markets in Miami -Dade County include Hialeah, Coral Gables/South Miami -Dade, Aventura and Kendall. Rental rates typically range from $23 to $78 per square foot with highest rates in the $70.00 per square foot range in the Wynwood District. The overall Miami -Dade County vacancy rate for the first quarter of 2023 was 3.3%, which is 10 basis points less than the first quarter of 2023. As of the first quarter of 2023, 3.17 million square feet of retail space was under construction. Conclusions In the future, one of the principal growth areas for Miami -Dade County is expected to be the international sector. Miami -Dade County, because of its geographic location and excellent transportation facilities, is well -suited to attract both business individuals and tourists from Latin America. It is already one of the principal shopping markets for Central and South Americans visiting the United States and one of the principal export points for goods and services destined for Latin America. The existence of major financial institutions, retail outlets, corporations and other business entities, coupled with its geographic location, transportation systems and planned international trade centers give Miami -Dade County an excellent opportunity for continued growth as an international center. During the next 12 months all segments of the commercial real estate market should continue to experience decreasing vacancy rates and increasing rental rates. With increasing inventories for both single family residences and condominium apartment units, sales activity is expected to continue to be strong during 2023. QUINLIVAN APPRAISAL 24 LOCATION MAP Hialeah Gard Pi-hmnnr1 Hai —1.992 ,,jChapman Field Park Miami 853 Dept of Public Facilities Biscayne Bay Aquatic Preserve Biscayne Bay 856 -unny Isle al Harbour Surfside mi Beach Virginia Key Key Biscayne ¢Key Biscayne Biscayne National Park QUINLIVAN APPRAISAL 25 NEIGHBORHOOD DATA The subject property is located northwest of the Central Business District of Miami in an area known as Overtown. The subject property is more specifically located on the south side of N. W. 20th Street, between N. W. 4th Court and N. W. 5th Place. The Overtown area, west of N. W. 1St Avenue to Interstate 95 and north of N. W. 5th Street to N. W. 20th Street, is characterized by a large number of small apartment buildings. These buildings were constructed primarily in the late 1940s and 1950s. These buildings generally are in poor to fair condition, with virtually no new private construction in recent years. There are two 30-story high-rise apartment buildings located just north of the former Miami Arena site at N.W. 8th Street and N.W. 1st Avenue. These buildings were constructed on City of Miami land by private developers. The south building, Bayview Towers, was constructed in 1989 and contains 356 units. The north building, Park Place by the Bay, was constructed in 1990 and contains 463 units. The rental rates area relatively reasonable in these buildings. There has been little redevelopment in this area. The stimulus to speculation has been the Performing Arts Center on Biscayne Boulevard at N.E. 13th Street. The construction was completed in 2007. In addition to the speculation related to the Performing Arts Center, the establishment of the Park West Entertainment District by the City in April of 2000 had a positive affect on the property values. The intent of the Ordinance was to eliminate the distance requirements between nightclubs and to actually encourage establishment of clubs in close proximity to one another. It also provides for 24-hour liquor licenses within the district. The Park West Entertainment District is bounded by S. R. 836/I-395 to the north, Biscayne Boulevard to the east, N.E. 7th Street to the south, and North Miami Avenue to the west. Motivated by the liberal provisions of the Park West Entertainment District, in conjunction with greater restrictions being placed on nightclub operators on South Beach, club owners have acquired a number of older industrial buildings and vacant sites in the area - primarily along N. E. 1lth Street and N. E. loth Streets. The older buildings have been totally renovated and opened as nightclubs, reportedly with tremendous success. Although no new buildings have been built on vacant sites, several are reportedly planned. The Central Business District of Miami is located just southeast of the Overtown area. The Central Business District is defined with Biscayne Boulevard at the east boundary, N.W./S.W. 1st Avenue to the west, N.E. 5th Street to the north and the Miami River to the south. The Central Business District is comprised of offices, hotels and retail stores. The older buildings were constructed primarily in the period between 1920 and 1940. The newer buildings were constructed primarily in the 1960s and 1970s. Flagler Street is the primarily retail/office street in the Central Business District of Miami. There are a variety of retail stores, department stores and offices fronting along Flagler Street in the Central Business District. QUINLIVAN APPRAISAL 26 The Overtown Station of Miami -Dade County's Rapid Transit System, known as Metrorail, is located at N.W. 8th Street and N.W. 1st Avenue, approximately one mile southeast of the subject property. The Metrorail is an elevated track train system which extends north and west through the City of Hialeah to the Palmetto Expressway at N. W. 74th Street, and south to the Dadeland area. The Downtown Metromover emanates from the Government Center Station. The Metromover is an elevated track, remote controlled vehicle system which provides local transportation in the Central Business District. The Metromover track extends southerly to S.E. and S.W. 4th Street, easterly to Biscayne Boulevard, northerly to N.E. and N.W. 5th Street and westerly to N.E. and N.W. 2nd Avenue. The Metromover has nine stations throughout the Central Business District of Miami. Extensions of the Downtown Metromover have been constructed that run to the Omni and Brickell Avenue areas. In summary, the subject property is located northwest of the Central Business District of Miami, in an older multi-family/commercial area known as Overtown. QUINLIVAN APPRAISAL 27 NEIGHBORHOOD MAP SUBJECT PROPERTY 491 N.W. 19 Street QUINLIVAN APPRAISAL 28 SITE DATA QUINLIVAN APPRAISAL 29 SITE DATA Dimensions and Shape: The site is comprised of two adjacent rectangular sites. The west site is located on the southwest comer of N.W. 20th Street and N.W. 5th Place. The north property line of the east site fronts for 514.53 feet on the south right-of-way line of N.W. 20th Street to a 25-foot radius curve to the left along an arc length of 39.11 feet. The west property line thence extends southerly for 494.34 feet along the east right-of-way line of N.W. 5th Place to a 75-foot radius curve to the left along an arc length of 116.94 feet. The south property line thence extends easterly for 463.62 feet along the north right-of-way line of N.W. 19t Street to a 25-foot radius curve to the left along an arc length of 39.49 feet. The east property line thence extends northerly for 552.96 feet along the west right-of-way line of N.W. 4th Place to a 25-foot radius curve to the left along an arc length of 39.5 feet. The north property line of the west site fronts for 166.4 feet on the south right-of-way line of N.W. 20th Street to a 25-foot radius curve to the right along an arc length of 39.43 feet. The east property line thence extends southerly for 475.0 feet along the west right-of-way line of N.W. 5th Place. The south property line thence extends westerly for 191.52 feet. The west property line thence extends northerly for 500.0 feet. Area: East Site 335,752 square feet or 7.71 acres West Site 95,640 square feet or 2.20 acres Total 431,392 square feet or 9.91 acres Topography and Drainage: The site is level at elevations equivalent to the abutting streets. Flood Zone: Map No. 12086C00312 L "X" Areas determined to be outside the 0.2% annual chance flood plain. Soil and Subsoil: The immediate area of the subject site appears to have no unusual soil or subsoil conditions. Unusual conditions would be brought out by test borings. Utilities: Water: Miami -Dade Water and Sewer Department Sewer: Miami -Dade Water and Sewer Depailiuent Electricity: Florida Power & Light Company QUINLIVAN APPRAISAL 30 Telephone: ATT Street Improvements: N.W. 5th Place is asphalt paved with a northbound lane and one southbound lane. N. W. 4111 Court is asphalt paved with a northbound lane and one southbound lane. N.W. 19th Street is asphalt paved with a eastbound lane and one westbound lane. N. W. 20th Street is asphalt paved with a eastbound lanes and two westbound lanes dedicated width of 60 feet. N.W. 5th Place has one dedicated width of 60 feet. N.W. 4th Court has one dedicated width of 60 feet. N.W. 19th Street has one dedicated width of 90 feet. N.W. 20th Street has two divided by a median. QUINLIVAN APPRAISAL 31 k Jf rrACr N° J v .Yam a>r {R 'e•�zlaa T-Yl�/6 SITE SKETCH ` 1 "1 y eiv rh'AL l tf/4 MA/ 1 7 P43❑JF. CT Nd' / F.L.e1. .E'-/K. PLAYt N.` / F,q.e ae AG. .35 rr.+� r ere we 4 rzA c r NI % M TRA C r N,. .g _.a' ,- —1' +�'s�E' b� Sec .. ra/sr4 err X6dliVA'£ FA0a4— M . c -,1rs' Nrr.44` Rct Sr,. 36-59-4/ 4/...A0 dame :Sr, ep-7,e'EB- r- MOO' TRACT 8 , 3.37Z _-SP Ft 7. r/'Ac. • SY A•T/l'' AW'" 9f 3a' aY! 9 -.... at JH•Z ' i1 JcT 4 QUINLIVAN APPRAISAL 32 ZONING QUINLIVAN APPRAISAL 33 ZONING Under Ordinance of the City of Miami, Florida. Classification: T5-O URBAN CENTER ZONE - OPEN The urban center zone consists of higher density mixed -use building types that accommodates retail and office uses, rowhouses, and apartments. A network of small blocks has thoroughfares with wide sidewalks, steady street tree planting and buildings set close to the frontages with frequent doors and windows. Permitted Principal Uses allowed by right include single family residences, duplexes, multifamily housing, dormitory, community residences, home offices, bed & breakfasts, inns, hotels, entertainment establishments, food service establishments, general commercial, offices, recreational facilities, religious facilities, learning center, pre-school, and research facilities. Uses permitted by warrant (administrative process) include auto related facilities, marine related facilities, open air retail, community facilities, infrastructure and utilities, community support facilities, marinas, public parking, transit facilities, childcare, universities, schools, and vocational training. Uses permitted by exception include alcohol beverage service establishments. Development Regulations Minimum Lot Size: 1,200 square feet Maximum Lot Size: 40,000 square feet Minimum Lot Width: 16 feet Maximum Lot Coverage: 60% Floor Lot Ratio: None Minimum Green Space: 10% Maximum Density: 65 dwelling units per acre Setbacks: Front 10 feet Side 0 feet Back 0 feet Maximum Building Height: Five stories Minimum Building Height: Two stories QUINLIVAN APPRAISAL 34 Minimum Offstreet Parking: Principal Dwelling Community Residence Lodging Office Commercial Civic Educational 1.5 spaces per unit 1 space per staff member in addition to required parking 1 space per 5 lodging units 3 spaces per 1,000 square feet 3 spaces per 1,000 square feet 3 spaces per 1,000 square feet of exhibition area 2 spaces per 1,000 square feet QUINLIVAN APPRAISAL 35 HIGHEST AND BEST USE QUINLIVAN APPRAISAL 36 HIGHEST AND BEST USE Fundamental to the concept of value is the theory of highest and best use. Land is valued as if vacant and available for its highest and best use. The Appraisal Institute in The Dictionary of Real Estate, Sixth Edition, defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and results in the highest value. Land has limited value unless there is a present or anticipated use for it; the amount of value depends on the nature of the land's anticipated use, according to the concept of surplus productivity. Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination, is generally regarded as the highest and best use of the land as though vacant. The highest and best use of a property as improved refers to the optimal use that could be made of the property including all existing structures. The implication is that the existing improvement should be renovated or retained as so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. In estimating the highest and best use there are essentially four stages of analysis: 1. Possible Use. What uses of the site being appraised are physically possible? 2. Permissible Use (Legal) What uses are permitted by Zoning and Deed Restriction, if any? 3. Feasible Use. Which possible and permissible uses will produce a net return to the owner of the site? 4. Maximally Productive. Among feasible uses, which use will produce the highest net return to the owner of the site? The highest and best use of the land (or site), if vacant and available for use, may be different from the highest and best use of the improved property. This is true when the improvements are not an appropriate use, but make a contribution to the total property value in excess of the value of the site. QUINLIVAN APPRAISAL 37 The following four point test is required in estimating the Highest and Best Use. The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject property. In arriving at the estimate of Highest and Best Use, the subject site was analyzed as vacant and available for development, and as improved. Possible Use The site fronts on N. W. 19th Street, N. W. 20th Street, N. W. 4th Court and N. W. 5th Place. N. W. 20th Street is a traffic artery. N. W. 19th Street, N. W. 4th Court and N. W. 5th Place are secondary streets in a residential district. Therefore, the site has adequate exposure and access. The site is comprised of two sites separated by the right-of-way of N.W. 5th Place. Each site has sufficient street frontage and depth for good functional utility. All necessary utility services are available along the abutting street right-of-ways. The sites have a total size of 431,392 square feet in size, which equates to 9.91 acres. The size and shape and available utilities of the site would allow many uses. The size of the site would indicate a fairly large scale use of the site or a subdivision into several sites. Permissible Use (As if Vacant) Permissible or legal uses are those uses which are permitted by zoning and deed restrictions. The site is zoned in a residential zoning district. The permissible uses of the site include single family residences, duplexes, multifamily housing, dormitory, community residences, home offices, bed & breakfasts, inns, hotels, entertainment establishments, food service establishments, general commercial, offices, recreational facilities, religious facilities, learning center, pre- school, and research facilities. Uses permitted by warrant (administrative process) include auto related facilities, marine related facilities, open air retail, community facilities, infrastructure and utilities, community support facilities, marinas, public parking, transit facilities, childcare, universities, schools, and vocational training. Based on an analysis of the zoning, the maximum permitted residential density would be 65 dwelling units per acre. The maximum building height would be five stories. Feasible Use/Maximally Productive Use The physical characteristics and zoning of the subject site would permit single family houses, duplexes, townhouses, and apailments. The site is located in a fully developed residential district comprised of single family houses, townhouses, and garden style apail,nent buildings. QUINLIVAN APPRAISAL 38 Conclusion (As if Vacant) Based on the possible, permissible and feasible uses of the site, the Highest and Best Use of the subject site is considered to be for a multiple family residential building. Highest and Best Use as Improved The subject site is developed with 20 garden style apartment buildings. The buildings were constructed in 1973. The buildings have a total of 169 residential units. The existing improvements appear to comply with zoning and are in conformity with surrounding uses. The subject apartment unit is part of a condominium apartment project known as the Town Park Plaza North Condominium. The subject unit is a two bedroom, one bathroom floor plan. The Unit is 782 square feet in size. The buildings appear to be in average condition. A apaittnent use is permitted by the zoning of the site. The subject buildings are similar in design and construction quality to other condominium projects in the market area. The existing multi -family residential use is considered to represent the highest and best use of the site. QUINLIVAN APPRAISAL 39 DESCRIPTION OF IMPROVEMENTS QUINLIVAN APPRAISAL 40 DESCRIPTION OF IMPROVEMENTS Age and Condition According to the Public Records of Miami -Dade County, the subject complex was constructed in 1973. The complex went through a $13.5 million renovation in the past five years. From personal inspection the improvements appear to be in average condition. Description The site is improved with 20, two- and three-story apartment buildings containing a total of 169 units. The building structures are masonry construction. The buildings are two-story mostly townhouse style apartment buildings. The apartment units are all accessed from exterior hallways. The interiors of the apartment units have average quality finishes with formica cabinetry, electric appliances, tile floors, drywall ceilings service, and painted drywall. Each unit has a balcony on the exterior of the building. The subject unit is a townhouse style apartment. The floor plan is comprised of a living room and kitchen on the ground floor and two bedrooms and a bathroom on the second floor. The second floor is accessed by an interior stairway. A walled courtyard is located on the west side of the exterior of the unit. The complex has grade level asphalt paved parking lots adjacent to the buildings. The parking appears adequate. The site is enclosed by a metal fence. The complex has a common area clubhouse building on the east site. The clubhouse has not been renovated and is boarded up. The site has playgrounds and sports court throughout the complex. Size 782 square feet Details of Construction Foundation: Steel reinforced poured concrete footings. Frame: Poured concrete Exterior Walls: Eight inch concrete block with stucco finish -painted Windows: Metal frame sliding Roof: Gable end style, asphalt shingles over wood deck on truss system Interior Walls: Painted drywall on metal studs Ceilings: Textured stucco on drywall. QUINLIVAN APPRAISAL 41 Floors: Ceramic tile on concrete slab Lighting: Fluorescent and incandescent Equipment and Fixtures (Each Unit) Central air conditioning Kitchen appliances to include refrigeration/freezer and oven/range Site or Yard Improvements Landscaping Asphalt paved parking lots Playground Sports courts Clubhouse Metal fence QUINLIVAN APPRAISAL 42 BUILDING SKETCH QUINLIVAN APPRAISAL 43 THE APPRAISAL PROCESS QUINLIVAN APPRAISAL 44 THE APPRAISAL PROCESS The appraisal of real estate is generally valuated by means of one or more of the following approaches: (1) The Cost Approach (2) The Income Approach (3) The Sales Comparison Approach The Cost Approach In the Cost Approach, land and building are valued as though they are separate entities. The land value is first estimated as if vacant. Then, by consulting various cost services, local building contractors and knowledge of construction costs, the replacement cost new of the building is estimated. Accrued depreciation from all sources including physical deterioration, functional and economic obsolescence must be deducted from this cost. The estimated land value is then added to the depreciated cost of the building to give the "depreciated replacement cost" of the property. The Cost Approach is based on the premise that the value of a commodity tends to be set by the cost of acquiring an equally desirable substitute. Applied to real estate, the assumption is that a person would not likely pay more for a property than it would cost him to acquire a suitable site and place an equally desirable building upon it. Costs would include direct cost of construction, indirect costs such as financing costs, land and developer/builder's profit. The unit being valued is a portion of a larger condominium. The Cost Approach is not applicable to individual condominium units, only to the total condominium; accordingly, the Cost Approach was not utilized. Income Approach The Income Approach is based on the premise that the value of a property may be determined by the amount of net income it can reasonably produce over its remaining economic life. The rationale of the approach is that the present worth of a future income stream is equivalent to the value of the property which produces that income. Four basic steps comprise the Income Approach: (1) Estimate the reasonable expectable annual gross income the property will likely produce. (2) Deduct an allowance for vacancy and collection loss to arrive at the effective gross income. QUINLIVAN APPRAISAL 45 Deduct the annual expense of operation from the effective gross income to arrive at the annual net income. Capitalize the annual net income into an indication of value. The subject property is a single apartment unit in a condominium with multiple units. This type of property is typically purchased by owner/users rather than as rental investments. An Income Approach to Value is therefore not considered applicable for the valuation of the subject property. The Sales Comparison Approach The Sales Comparison Approach is an attempt to measure the reactions of typical buyers and sellers. In this approach, a direct comparison is made between the property being appraised and comparable properties which have sold recently. These sales are compared for degrees of comparability such as location, size, age, zoning, time, conditions of sale, financing and other pertinent data which would affect value. Adjustments are made for these factors in order to arrive at a reliable estimate of value. In this report, sales of condominium apartment units in the subject project are gathered and analyzed. Reconciliation After applying the three approaches, three separate indications of value are available for analysis. The indicated values obtained from each approach are correlated into one final conclusion of value. Usually one approach will be considered more significant than the rest, either because of the reliability of the data, or because of the type of property involved. Reconciliation is the process by which each approach is objectively weighed according to its importance. QUINLIVAN APPRAISAL 46 SALES COMPARISON APPROACH QUINLIVAN APPRAISAL 47 SALES COMPARISON APPROACH TO VALUE This approach to value is a technique in which the Market Value estimate is predicated upon prices paid in actual market transactions of similar properties. These similar, or comparable, transactions (sales) are adjusted to indicate a value to the subject. The Sales Comparison Approach is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. On the following pages there are sales of similar condominium units which have recently sold. Several other sales were considered, but were not included because there was too wide a difference in physical factors, location and time. In comparing the sales to the subject unit, consideration was given to factors of time, location, physical characteristics and terms and conditions of the sale. The sales were analyzed based on a price paid per square foot of unit area. QUINLIVAN APPRAISAL 48 SUMMARY OF COMPARABLE CONDOMINIUM UNIT SALES No. Unit No. Date of Sale Recordation Sale Price Seller Buyer BR/BA Size (S.F.) Price/S.F. 1 365 8/24/22 33355/4089 $225,000 Eltressa D. Spencer Mafra LLC 4/1'/2 1,114 $201.97 2 273 10/24/22 33447/4021 $290,000 AMH Investing LLC 1994 NW 5 PL LLC 3/11 1,056 $274.62 3 349 11/15/22 33514/4280 $210,000 ABRS Marketing & Consulting LLC Juliana Ortiz 2/1 782 $269.54 4 314 3/10/23 33638/1450 $245,000 Thelma Reese Harriet C. Daphins 3/1'/2 1,026 $238.79 5 362 3/22/23 33667/525 $215,000 Keep the Conglomerate Strong Parrod Invest LLC 2/1 782 $274.94 6 323 6/28/23 33814/4408 $233,000 Fly Away 2012 LLC Sabina Palms Inc. 2/1 782 $297.95 ANALYSIS OF SALES The sales range in unit price from $201.97 to $297.95 per square foot of building area. The sales range in time from August of 2022 to June of 2023. All of the sales are condominium apaitment units in the Town Park Plaza North Condominium. Property Rights The fee simple interest is the property right being appraised. The comparable sales involved the same or similar type of property rights. Conditions of Sale All of the sales were arm's-length transactions. An arm's-length transaction is defined as a transaction freely arrived at in the open market unaffected by abnormal pressure of by the absence of normal competitive negotiation as might be true in the case between related parties. Financing The financing of the sales does not indicate any adjustments of their prices for favorable/below market financing. Dale of Sale (Market Conditions) The sales range in time from August of 2022 to June of 2023. There appears to have been no change in sale prices in this market area over this period of time. Location The sale properties are all located in the same condominium as the subject unit. The locations of sales are considered similar to the location of the subject. Unit Size The sales range in unit size from 782 to 1,114 square feet in size. The size of the subject unit, 782 square feet, is within the range of the sizes of the sale units. The sales indicate no difference in price per square foot based on unit size. Building Age/Condition The subject condominium was constructed in 1973 and has been renovated. The sale properties have the same building age as the subject. The ages and conditions of the sale properties are considered similar to the subject. QUINLIVAN APPRAISAL 50 Conclusion The sales range in unit price from $201.97 to $297.95 per square foot of building area. The sales range in time from August of 2022 to June of 2023. The sales are all located in the same condominium as the subject unit. The sales occurred in 2022 and 2023. The sales do not require any major adjustments. Sales 5 and 6 were given primary emphasis in the final analysis. Sales 5 and 6 are the most recent sales and are the same size and floor plan as the subject unit. Based on the above analysis, the subject property is estimated to have a value of $285.00 per square foot of adjusted building area. 782 Square Feet x $285.00 per Square Foot $222,870 Market Value Indication (Rounded) $223,000 QUINLIVAN APPRAISAL 51 RECONCILIATION & VALUE CONCLUSION QUINLIVAN APPRAISAL 52 RECONCILIATION AND VALUE CONCLUSION The reconciliation of the data and indicated value estimates is the final step in the appraisal process. Sufficient data has been assembled and analyzed for the purpose of judging the reactions of typical purchasers in the market place. In this report, the three accepted appraisal techniques were considered. The value estimates indicated by these approaches resulted in the following: Cost Approach to Value Not Applicable Income Approach to Value Not Applicable Sales Comparison Approach to Value $223,000 Cost Approach to Value The Cost Approach has the most applicability and will generally result in a truer estimate of value when the building improvements are new and accrued depreciation need not be estimated. Since the subject property is a condominium unit that includes a percentage of common elements, the Cost Approach is not considered applicable for the valuation of the subject. Income Approach to Value The data in this approach as to the quality, quantity and durability of the income is considered good. The income and expenses are based on the income and expenses of the subject property and from information from comparable properties. Net Income is capitalized by means of a direct capitalization method with an overall rate derived from market sales, market surveys and a Band of Investment Technique. Condominium apartment units in the subject market area are generally owner occupied and not purchased as rental investments. Because the subject property is a condominium unit in a market area of primarily owner occupied units, this approach to value is not considered applicable for the valuation of the subject. Sales Comparison Approach to Value In reference to the Sales Comparison Approach, consideration has been given to sales that have taken place in the real estate market. These sales are analyzed and adjusted to the subject to reflect a market value estimate of the subject. QUINLIVAN APPRAISAL 53 The quality of the market sales in this approach to value is considered good. The comparable sale properties are all condominium apartment units in the same condominium as the subject unit. Considering the quality of these sales, this approach to value is given primary emphasis in the final analysis. Final Conclusion In the reconciliation process, the greatest weight should be given to the approach or approaches which produce the highest degree of confidence and which has been processed with a minimum of assumptions. Of equal importance are the reasonableness of the data and the reliability of the data. In consideration of the above, and for the reasons and conclusions contained herein, the Market Value of the subject property as of October 30, 2023 was estimated at: Two HUNDRED TWENTY-THREE THOUSAND DOLLARS $223,000 QUINLIVAN APPRAISAL 54 ADDENDA QUINLIVAN APPRAISAL 64 ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. If no survey has been furnished to the appraiser, all measurements have been confirmed either in the field, in the plat book or by other reliable sources and are presumed to be accurate. 7 It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the Appraisal Report. 9. It is assumed, unless a study has been provided otherwise, that no hazardous material such as asbestos, urea formaldehyde or other toxic waste exists in the property. The existence of a potentially hazardous material could have a significant effect on the value of the property. QUINLIVAN APPRAISAL 65 10. In reference to proposed construction, the real estate taxes and other expenses are estimated. These amounts are not guaranteed. 11. It is assumed in the valuation of the subject land site, unless a compliance letter has been furnished to us, that the State of Florida Growth Management Act does not prevent the issuance of a building permit. 12. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 13. It is assumed that the utilization of the land and improvements is within the boundaries of property lines of the property described and that there is no encroachment or trespass unless noted in the report. This Appraisal Report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation of this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety. 3. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. QUINLIVAN APPRAISAL 66 QUALIFICATIONS OF THE APPRAISER THOMAS F. MAGENHEIMER Experience: 11/84 - Present QUINLIVAN APPRAISAL, P.A. 7300 N. Kendall Drive, Suite 530 Miami, Florida Currently president of Quinlivan Appraisal, P.A., a Real Estate Appraising and Consulting Firm, established in 1964. Education: University of Richmond, Richmond, Virginia BA - Bachelor of Arts in History (1982) Professional Affiliations: Member of the Appraisal Institute (MAI No. 09166) Real Estate Salesman - State of Florida - Certificate No. 0344882 Certified General Appraiser, State of Florida, License No. RZ 553 Member Sigma Alpha Epsilon Fraternity Qualified as an Expert Witness in the Following Courts: Miami -Dade and Broward County Circuit Courts United States Bankruptcy Court Other Activities: Admissions Committee - South Florida -Caribbean Chapter of the Appraisal Institute - (1992) Newsletter Editor - South Florida -Caribbean Chapter of the Appraisal Institute - (1991 - 1995) President - South Florida -Caribbean Chapter of the Appraisal Institute - (1996) Board of Trustees - Palmer -Trinity School (1989 - 1993) QUINLIVAN APPRAISAL 67 Quinlivan Appraisal has prepared Appraisal Reports for the following: Institutions and Corporations: AT&T Archdiocese of Miami Atlantic Security Bank The Bank of America Bank United Barry University Bessemer Trust Company California Bank and Trust Chevron Oil Company Chase Manhattan Bank Chemical Bank Citibank Citrus Bank City National Bank of Miami Coamerica Bank Coconut Grove Bank Commerce Bank Commercial Bank of Florida Consolidated Bank County National Bank Eagle National Bank Eastern National Bank Equitable Bank Espirito Santo Bank Farm Credit of South Florida Fidelity Bank First International Bank First National Bank of South Miami Florida International University First Nationwide Bank Florida Memorial College Florida Power and Light Company Florida Rock Industries Great Eastern Bank of Florida Greyhound Lines HSBC Hemisphere National Bank Intercontinental Bank International Bank of Miami, N.A. QUINLIVAN APPRAISAL 68 LaSalle National Bank Marine Midland Bank McDonalds Corp. Mellon United National Bank Metro Bank Miami -Dade County Community College Miami -Dade Water and Sewer Authority Northern Trust Bank of Florida Ocean Bank Pacific National Bank Pan American Bank Shell Oil Company South Trust Bank SunTrust Bank TotalBank Trade National Bank Trust for Public Lands UniBank Union Planters National Bank University of Miami Wachovia Wal-Mart YMCA Governmental Agencies: City of Aventura City of Coral Gables City of Doral City of Florida City City of Hialeah City of Homestead City of Miami City of Miami Parking Authority City of Miami Beach City of Miramar City of North Bay Village City of North Miami City of North Miami Beach City of South Miami City of Sunny Isles Beach Miami -Dade County Aviation Department Miami -Dade County Department of Development & Facilities Management Miami -Dade County HUD QUINLIVAN APPRAISAL 69 Miami -Dade County Property Appraisal Adjustment Board Miami -Dade County Public Schools Miami -Dade County Public Works Department Miami -Dade County Transportation Administration Miami -Dade Water & Sewer Department South Florida Water Management District State of Florida, Attorney General's Office State of Florida, Department of Community Affairs State of Florida, Depaittnent of Corrections State of Florida, Depailnuent of Environmental Protection State of Florida, Department of Insurance State of Florida, Department of Rehabilitation and Liquidation State of Florida, Department of Transportation Town of Golden Beach United States Army Corps of Engineers United States Department of Justice United States Department of Commerce United States Depaitinent of the Interior United States General Services Administration Village of Islamorada Village of Key Biscayne Village of Pinecrest Law Firms: Akerman Senterfitt Greenberg, Traurig Daniels, Kashton, Downs and Robertson Holland and Knight, LLP Shutts & Bowen Ruden McClosky, LLP Steel, Hector & Davis, LLP Weiss, Serota, Helfman, Pastoriza, Guedes, Cole and Boniske, P.A. Types of Properties Appraised: Single Family Residences Apailinent Buildings Office Buildings Retail Stores Shopping Centers Condominium Apailuient Buildings Golf Courses Residential Subdivisions Automobile Dealerships Vacant Land Hotel/Motels Warehouses Nursing Homes Mobile Home Parks Schools Service Stations Marinas Wetlands QUINLIVAN APPRAISAL 70