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Home My WebLink Aboutexhibits 4• THE SALES COMPARISON APPROACH -- Continued -- Corgparable Sale Number $ix Address: 5842 N.W. 12th Avenue, Miami, Florida Legal Description: Lots 15 and 16, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Grantee: Mario and Theresa Forrester Grantor: Joyce O. Jackson Walker O.R. Book/Page: 19092/1003 Total Number of Units: 4 Adjusted Building Area: 3,019 SF Building Type: 2-story Site Size: 6,150 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1968 Condition: Average Land -to -Building Ratio: 2.04:1 Date of Sale: April 19, 2000 Sale Price: $115,000 Financing: Cash to the seller Cash Equivalent Sale Price: $115,000 Cash Equivalent Sale Price/SF: $38.09 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 THE SALES COMPARISON APPROACH Comparable Sale Number Six (Continued) Cash Equivalent Sale Price/Unit: $28,800 Potential Gross Income Multiplier: 6.39 SALE PRICE PER UNIT TYPE Unit -- Indicated Type Sale BR -BA Price/Unit 4 x 2-1 $28,800 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 67 - THE SALES COMPARISON APPROACH Comparable Sale Number Seven Address: Legal Description: Grantee: Grantor: O.R. Book/Page: Total Number of Units: Adjusted Building Area: Building Type: Site Size: Zoning: Year Built: Condition: Land -to -Building Ratio: Date of Sale: Sale Price: Financing: Cash Equivalent Sale Price: Cash Equivalent Sale Price/SF: -- Continued -- 1299 N.W. 60th Street, Miami, Florida Lots 25 to 28, Block 3, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Robert Simpson Evelyn J. House. 18414/2709 12 8,820 SF 2-story 21,200 SF R-3 Medium Density Multi -Family Residential District 1960 Average 2.40:1 September 25, 1998 $175,000 Cash to the seller $175,000 $19.84 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 f Coconut Grove, Florida 33133 - 68 - THE SALES COMPARISON APPROACH Comparable Sale Number Seven (Continue) Cash Equivalent Sale Price/Unit: $14, 600 Potential Gross Income Multiplier: 3.35 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 6 x 1-1 $13,100 6 x 2-1 $16,100 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 69- THE SALES COMPARISON APPROACH -- Continued -- Comparable Sale Number Eight Address: 816-818 S.W. 1st Street, Miami, Florida Legal Description: Lot 3, less the northern ten feet for street, Block 1, Brickells Riverview, as recorded in Plat Book 5, Page 43 of the Public Records of Miami -Dade County, Florida Grantee: Cirys Investments, Inc. Grantor: Yolanda C. Perez O.R. Book/Page: 17516/514 Total Number of Units: 26 Adjusted Building Area: 5,455 SF Building Type: 2-story Site Size: 7,000 SF Zoning: C-1 Restricted Commercial District Year Built: 1927 Condition: Average Land -to -Building Ratio: 1.28:1 Date of Sale: January 14, 1997 Sale Price: $230,000 Financing: $210,000 purchase money mortgage at 10.0% Cash Equivalent Sale Price: $230,000 Cash Equivalent Sale Price/SF: $42.16 Cash Equivalent Sale Price/Unit: $8,800 J.S. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 _70_ THE SALES COMPARISON APPROACH Comparable Sale Number Eight (Contngd) Potential Gross Income Multiplier: 3.81 SALE PRICE PER UNIT TYPE Note: Unit Indicated Type Sale BR -BA Price/Unit ' 26 x Rooms $8,800 -- Continued — The property has been currently on the market for sale for $260,000, reflecting an asking price of $10,000 per room for this 26-room boarding house with seven bathrooms. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 71 - THE SALES COMPARISON APPROACH Comparable Listing For Sale Number Nine Address: Legal Description: Grantee: 'Grantor: O.R. Book/Page: -- Continued -- 542 North Miami Avenue, Miami, Florida Northern 50 feet of Lots 1 and 2, Block 64, Miami North, as recorded in Plat Book B, Page 41 of the Public Records of Miami -Dade County, Florida 532-538 North Miami Avenue LLC Charitable Elvera 19552/25 Total Number of Units: 23 Adjusted Building Area: 10,375 SF Building Type: Site Size: Zoning: Year Built: Condition: Land -to -Building Ratio: Date of Sale: Sale Price: Financing: Cash Equivalent Sale Price: Cash Equivalent Sale Price/SF: Cash Equivalent Sale Price/Unit: 2-story 5,000 SF C-1 Restricted Commercial District 1920 Average .48:1 March 15, 2001 $412,000 Cash to the seller $412,000 $39.71 $15,800 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 72 - THE SALES COMPARISON APPROACH Comparable. Sale Number Nine (Continued) SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 23 x Rooms $15,800 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33I33 - 73 - THE SALES COMPARISON APPROACH -- Continued -- Comparable Listing For Sale Number Teri Address: Legal Description: Owner: 1259 N.W. 58th Terrace, Miami, Florida Lot 24, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Home Equity Mortgage Corporation Total Number of -Units: 6 Adjusted Building Area: 2,976 SF Building Type: Site Size: Zoning: Year Built: Condition: 2-story 5,300 SF R-3 Medium Density Multi -Family Residential District 1959 Average Land -to -Building Ratio: 1.78:1 Asking Price: Asking Price/SF: Asking Price/Unit: Potential Gross Income Multiplier: $99,900 $33.57 $16,700 5.05 SALE PRICE PER UNIT TYPE Unit Type OR -BA 6 x 1-1 Indicated Sale Price/Unit $16,700 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 74 - THE SALES COMPARISON APPROACH -- Continued -- Comparable Listing For Sale Number Eleven Address: 1245 N.W. 58th Terrace and 1238 N.W. 58th Street, Miami, Florida Legal Description: Owner: Lots 7, 8, 21 and 22, Block 10, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Jerry Evans and Scott Evans Total Number of Units: 24 Adjusted Building Area: 11,908 SF Building Type: 2-story Site Size: 21,200 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1964 Condition: Average Land -to -Building Ratio: 1.78:1 Asking Price: $295,000 Asking Price/SF: $24.77 Asking Price/Unit: $12,300 Potential Gross Income Multiplier: 3.72 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price Unit 4 x Efficiency 20 x 1-1 $11,200 $12,500 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 75 - THE SALES COMPARISON APPROACH -- Continued -- Cowlrt*le Listing For Sale Number Twelve Address: Legal Description: 1231 N.W. 61st Street, Miami, Florida Lots 31 and 32, BIock 2, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Owner: Model City Investment Corporation Total Number of Units: 24 -- Adjusted Building Area: 10,308 SF Building Type: 3-story Site Size: 10,600 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1959 Condition: Average Land -to -Building Ratio: 1.03:1 Asking Price: $329,000 Asking Price/SF: $31.92 Asking Price/Unit: $13,700 Potential Gross Income Multiplier: 3.54 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 21 x 1-1 $13,200 3 x 2-1 $17,400 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 76 - THE SALES COMPARISON APPROACH -- Continued -- Comparable Listing For Sale Number Thirtreen Address: 1190 N.W. 67th Street, Miami, Florida Legal Description: Lots 26 and 27, Block 1, Woodmere, as recorded in Plat Book 14, Page 11 of the Public Records of Miami -Dade County, Florida Owner: Royce and Rosa Moore Total Number of Units: 12 Adjusted Building Area: 4,788 SF Building Type: 2-story Site Size: 8,950 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1957 Condition: Average Land -to -Building Ratio: 1.87:1 Asking Price: $174,900 Asking Price/SF: $36.53 Asking Price/Unit: $14,600 Potential Gross Income Multiplier: 3.98 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 12 x 1-1 $14,600 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 77 - w w SUMMARY OF M13LT4FAMRY RENTAL APARTMENT SALES Sale Sale Sale Sale Sale Sale yak 1� Us ▪ as Ns Sale Sae 1Jalglp iilig listing Lidding 6 men s hm Eleven Tr'elre Tha hakea Address 1601 N.W. 1575 1251 N.W. 1251 K.W. 6301 N W. 62+Wd Skeet 39er N.W.01 W. 5942 M.W. 1299 M.W. 318 S.W. 542 Npryl 5961 Skeet 6lat SWIM 17e1 Avenue t21h Avenue 6001 Street 1st Seca! /6%T N.W. 1245 N 36 5991 1231 N.W. 11e0 SSW. areal e Mimi Mimi Miami Mima Miry Miami Mai Mane Avenue 56L7 Terrace SI.111Ter ce 61Miami She and Miami 5Da1 Torreon Miami Wand Building Muni Type 2-Story 2-Story 2-Story 2-Smy 2-Story 2-Sb7 2- " evan� Area (SF) n) m.ue 5.950 �`'' 2-Story 2-�7 2-Story 2s,h7 sStary 2-51sy 2,779 2.791 2.003 3.019 8.820 5.455 10.375 Sim Area (SF) 13.600 10.600 5,300 2.976 11,908 10,306 4.7DD 5,300 3,600 6,150 21200 7.000 5.000 5,30p 21.200 t1030 117 Land-b-Buadeg Ra1W0 1.30 1.79 1.91 191 1 &1 2,04 2.40 1.28 0.48 7.78 L7D f.p3 Density (UrwJAue) 89.7 452 32.9 32.0 46.4 1 4 28.3 24.7 5fit8 200,4 44.3 a9.3 Number of Unite 26 11 4 4 4 NB 5 UM Min 4 12 26 23 6 2412 24 12 Rooming Units Efficiency 2 1 BM BEM 28 9 - ?- 23 - 1 BR11.5 Bath _ 6 4 2 HR/1.S Bast 4 4 4 4 5 _ B 21 12 2 BAl2 Onlh - - - - _ - 3 3 13Rf1 Bath _ - 3 BRY2 Bath Beading ArealUn4(SF) 372 541 695 695 501 755 Year Bull 1953 1962 1965 1964 7942 735 210 45� 496 496 430 399 1968 1960 1927 1922 1959 1961 1959 1967 Condition Avenge Avenge +Reef age Avenge Average Average Average Average Avenge A„e rage Average Average Average Zoning C I p 3 q 3 R 3 R 3 R 3 R-3 C- i C-1 R.3 R-3 Ft-3 Der et Sale 1/5/2005 1511412000 12+8+2000 1016R000 61250000 4110/2000 Lipid 9l25f1996 UlU}p97 ]f15R0.�7 Lugo toted Coa renoo 3320.000 $98.500 9115.000 3118,000 390,0p0 2000 Lieled S115A00 3175,000 3230A00 5412.000 399,900 Financing 172.000 Cann b � �� 3329,000 3174,900 Cash l PMM Me Seger the Saber Vie Seller le the Seller Ore Sellleer thCash Steller 3210000 84 KW a Se m titled LiaNd at Markel the seller UMW WW1 Cash Equivalent Sale Prior Cash Equivalent Sale Pnce/SF 330.69 316.55 341 38 542.43 34493 $38.09 C� RW 319.04 342.16 $39.71 533.57 324.77 33102 $3631 Und. (Average) 311.400 39.000 029.900 329.500 522.500 32a.600 314,600 • s,7,{,pp 372,300 f1i,7a0 SNlt00 Unadjusted Sale '� 316 700 Puce ink Type Rooming Units Efficiency 1 BW1 Bath i7,Da8 _ 36,600 31J,90a 311,4I 39,200 _ - _ - 2 BRr1 oath 323,300 329,50026▪ 0 314.iD0 siajaa 2 BRft.S Oath 322.500 329,606 316,106 - 31t,706 311,300 *Italie 2 BR12 1111111 - - - - - - SiJ+s08 3 BRl1 Bath - - _ 3 BRl2 Bath - - Grass Intone Mtrlliplier 3320.000 196,500 3115,000 5118.000 390,000 $115.000 5175.1100 5230000 3412,003 399900 5295,000 3>21000 3174.900 2.93 239 5.32 5.99 4.69 6.33 3.35 3.11 (1)' Adjusted heading area al reflected by Me Public Records of Miami -Dade County, Florida. 5.06 l.n 344 348 THE SALES COMPARISON APPROACH -- Continued -- ANALYSIS OF COMPARABLE SALES The Sales Comparison Approach to Value is based upon a comparison between recently sold properties in the subject neighborhood and the subject properties. The comparable sales, as well as three listings have been analyzed on the basis of the Potential Gross Income Multiplier and price/SF (for the smaller four -plea and rooming house facilities) and price/unit (for the larger rental apartment buildings) methods of comparison. The following discussion illustrates the basis for our adjustments in the comparable sales analysis. .FinamLng The sales represent "arm's length" transactions with typical terms of purchase. The purchase money and conventional mortgages involved in the comparable sales were at market interest rates and terms at the time of sale, thereby requiring no adjustment for financing. litagaLsak The current listings, as well as the comparable apartment sales under analysis have occurred between January 1997 (currently listed for sale) and January 2001, and reflect current market conditions in the subject area. Accordingly, no quantitative time adjustment was required. Age/Condition The comparable properties were condition. The subject properties condition. With the exception of a total reported cost of $125,000 the subject properties in terms of Lo in built between 1920 and 1968, and are in average were built between 1927 and 1979, and are in average Properties One and Six which have been renovated at in recent years, the comparable sales were similar to condition and appeal. Investors nvsors in this type of income producing property, such as rental apartment buildings, typically pay a sales price based upon certain investment criteria. In the analysis of the comparable sales, location is not considered as critical as the net income flow. The comparable rental apartment sales are located within the same neighborhood, and were considered similar to the subject properties in terms of overall location. The rooming house sales were located closer to the downtown Miami area; however, they were similar to Property Eight in terms of overall locational and demographical characteristics. r. B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 79 - THE SALES COMPARISON APPROACH ANALYSIS OF COMPARABLE SALES - Continued Unit Mix and Size -- Continued — The comparable rental apartment sales have been analyzed relative to their unit mix. The respective unit types command different rental rates and account for different portions of the income stream and therefore, have an affect on the purchase price associated with income generation potential. Investors purchasing income producing apartment facilities would typically pay more for those buildings which contain greater numbers of two - bedroom and three -bedroom units, as compared to the smaller efficiency and one - bedroom units. Potential Gross Income Multiplier Method An analysis of the Potential Gross Rental Income and resultant Potential Gross Rental Income Multiplier was utilized in order to estimate the Market Value. The comparable sales reflected Potential Gross Rental Income Multipliers of 2.93, 2.59, 5.32 (four-plex), 5.99 (four-plex), 4.69 (four-plex), 6.39 (four-plex), 3.35, 3.81 (effective gross income multiplier for a rooming house), 5.05, 3.72, 3.54 and 3.98. Based on the preceding analysis, a Potential Gross Rental Income Multiplier (PGIM) of 3.50 to 3.75 is reasonable for the subject properties which are utilized as rental apartment buildings; a Potential Gross Rental Income Multiplier (PGIM) of 5.50 is reasonable for the 4-unit Properties 2, 3, 4, 5 and 7; and an Effective Gross Rental Income Multiplier (EGIM) of 3.75 to 4.00 is reasonable for the 16-room boarding house at Property Eight. We have utilized the effective gross income multiplier for Property Eight due' to the typically higher vacancy rates experienced in a weekly rented motel/boarding house use, as compared to a typical rental apartment use. Therefore: Potential Gross Income (PGI) x PGIM = Value Estimate Property 1: $104,040 PGI x 3.50 = $364,140 $104,040 PGI x 3.75 = $390,150 Market Value of the Fee Simple Interest in Property 1 in "as is" Condition (Rounded) $375,000 Property 2: $22,800 PGI x 5.50 = $125,400 Market Value of the Fee Simple Interest in Property 2 in "as is" Condition (Rounded) $125,400 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 0 Coconut Grove, Florida 33133 - 80 - THE SALES COMPARISON APPROACH -- Continued -- Potential Gross Income Multiplier MethQ J - Continued Property 3: $22,800 PGI x 5.50 = $125,400 Market Value of the Fee Simple Interest in Property 3 in "as is" Condition (Rounded) $125,400 Property 4: $22,800 PGI x 5.50 = $125,400 Market Value of the Fee Simple Interest in Property 4 in "as is" Condition (Rounded) $125,400 Property 5: $22,800 PGI x 5.50 = $125,400 Market Value of the Fee Simple Interest in Property 5 in "as is" Condition (Rounded) $125,400 Property 6: $92,880 PGI x 3.50 = $325,080 $92,880 PGI x 3.75 = $348,300 Market Value of the Fee Simple Interest in Property 6 in "as is" Condition (Rounded) $335,000 Property 7: $21,600 PGI x 5.50 = $118,800 Market Value of the Fee Simple Interest in Property 7 in "as is" Condition (Rounded) $118,800 Property 8: $37,860 EGI x 3.75 = $141,975 $37,860 EGI x 4.00 = $151,440 Market Value of the Fee Simple Interest in Property 8 in "as is" Condition (Rounded) $145,000 +ems J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 81 - THE SALES COMPARISON APPROACH -- Continued -- Price/Unit Method Analysis of sale price/unit has also been utilized to estimate Market Value. The comparable sales reflect sale price/unit of: - $8,800 (now asking $10,000) and $15,800 per room for boarding houses; - $7,800 and $11,200 (asking price) for efficiency units; - $11,400, $9,200, $13,100, $16,700 (asking price), $12,500 (asking price), $13,200 (asking price) and $14,600 (asking price) for one bedroom -one bathroom units; and - $28,800, $29,500, $22,500 and $28,800 for two bedroom -one bathroom units within four-plex buildings; and sale price/SF of 41.38, $42.43, $44.93 and $38.09; - $16,100 and $17,400 (asking price) for two bedroom -one bathroom units within larger rental apartment buildings. Based on the preceding market analysis, $9,000 for efficiency units, $12,500 for one - bedroom units and $17,500 for two -bedroom units would be reasonable for the upgraded Properties 1 and 6. In addition, $42.50/SF and $27,500 for two -bedroom units at four- plex buildings would be reasonable for Properties 2, 3, 4, 5 and 7; while $9,000 per room would be reasonable for the 16-room boarding house at Property 8. Property 1: $12,500 x 24 + $17,500 x 3 = $352,500 Market Value of the Fee Simple Interest in Property 1 in "as is" Condition (Rounded) $352,500 Property 2: $27,500 x 4 = $110,000 $42.50/SF x 2,779 SF = $118,108 Market Value of the Fee Simple Interest in Property 2 in "as is" Condition (Rounded) $114,000 Property 3: $27,500 x 4 = $110,000 $42.50/SF x 2,762 SF = $117,385 Market Value of the Fee Simple Interest in Property 3 in "as is" Condition (Rounded) $114,000 .LB. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 82 - THE SALES COMPARISON APPROACH -- Continued -- Price/Unit Method - Continued Property 4: $27,500 x 4 = $110,000 $42.50/SF x 2,762 SF = $117,385 Market Value of the Fee Simple Interest in Property 4 in "as is" Condition (Rounded) $114,000 Property 5: $27,500 x 4 = $110,000 $42.50/SF x 2,853 SF = $121,253 Market Value of the Fee Simple Interest in Property 5 in "as is" Condition (Rounded) $115,000 Property 6: $12,500 x 21 + $17,500 x 3 = $315,000 Market Value of the Fee Simple Interest in Property 6 in "as is" Condition (Rounded) $315,000 Property 7: $27,500 x 4 = $110,000 $42.50/SF x 3,232 SF = $137,360 Market Value of the Fee Simple Interest in Property 7 in "as is" Condition (Rounded) $123,500 Property 8: $9,000 x 16 = $144,000 Market Value of the Fee Simple Interest in Property 8 in "as is" Condition (Rounded) $144,000 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 83 - THE SALES COMPARISON APPROACH -- Continued -- RECONCILIATION Value Via Value Via Reconciled G.I.M Method Price/Uni( Value Property 1 $375,000 $352,500 $360,000 Property 2 $125,400 $114,000 $120,000 Property 3 $125,400 $114,000 $120,000 Property 4 $125,400 $114,000 $120,000 Property 5 $125,400 $115,000 $120,000 Property 6 $335,000 $315,000 $325,000 Property 7 $118,800 $123,500 $120,000 Property 8 $145,000 $144,000 $144,500 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 84 - THE SALES COMPARISON APPROACH LAND VALUATION In order to estimate the value of Site Nine, the land is analyzed as if vacant and available to be put to its Highest and Best Use. There are several different techniques which can be utilized in the valuation of land. The technique selected must relate to the specific factors inherent in the appraisal problem at hand. The land valuation technique selected must reflect the prudent and rationale behavior of the most probable, typically informed purchaser/investor. In addition, the availability of reliable and verified market data further leads to the selection of the applicable land valuation technique. 1. The Sales Comparison Approach analyzes the sales of similar vacant parcels of land -With comparison and adjustment made from these sales to Site Nine. 2. The Abstraction Method analyzes the sales of improved properties with an allocation made between land and improvement value. The indicated allocation may establish a typical ratio of land value to total value or to derive from the portion of the sales price allocated to land an estimate of land value for use as a comparable land sale. 3. The Cost of Development Method provides an estimate of the value of undeveloped land based upon the creation of aplatted subdivision, development and sale of said parcel. The method assumes that the most probable purchaser of the land would be a developer/investor who plans to dispose of the developed sites at a profit. The costs of development are subtracted from the estimated proceeds of sale resulting in a net income projection which is discounted over the market absorption period. 4. The Land Residual Method treats the net income available to support the investment in the site as a residual. The income required to cover the investment in new improvements that represent the Highest and Best Use of the site is deducted from the Net Operating Income resulting in an estimate of the net income to the land which is then capitalized to estimate the land value. The Sales Comparison Approach has been selected to estimate the Market Value of the subject sites. This method is based on the principle of substitution which states that a prudent purchaser/investor would pay no more for a given site than the cost of acquiring an alternative site with the same utility. The Sales Comparison Approach is based on a comparison between recently sold sites and Site Nine, utilizing the price per square foot of buildable area unit of comparison. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 85 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- LAND VALUATION - Continued Comparable Land dale One Location: 1336 N.W. 45th Street, Miami, Florida Legal Description: Lot 5, Block 14, North Miami Estates, as recorded in Plat Book 5, Page 48 of the Public Records of Miami - Dade County, Florida Folio No: 01.3123-037-0890 Grantee: Joe T. Jones, Sr. Grantor: Billy J. Lewis O.R. Book/Page: 19454/3787 Site Size: 5,000 SF (.11 acre) Zoning: R-2 City of Miami - Medium Density Multi -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 3,000 SF Date of Sale: January 12, 2001 Consideration: $8,000 Financing: Cash to the seller Cash Equivalent Sale Price: $8,000 Cash Equivalent Sale Price/SF of Site Area: $1.60 Cash Equivalent Sale Price/SF of Buildable Area: $2.67 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 86 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- LAND VALUATION - Continued Comparable Land Sale Two Location: 6700 N.W. 23rd Place, Miami -Dade County, Florida Legal Description: Lot 7, Block 3, Northwest Highlands, as recorded in Plat Book 22, Page 23 of the Public Records of Miami -Dade County, Florida Grantee: Peaceful Zion Missionary Baptist Church Grantor: lensie Dorsey O.R. Book/Page: 19128/3669 Site Size: 4,964 SF (.11 acre) Zoning: RU-2 Miami -Dade County - Two -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 2,978 SF Date of Sale: March 12, 2000 Consideration: $7,500 Financing: Cash to the seller Cash Equivalent Sale Price: $7,500 Cash Equivalent Sale Price/SF of Site Area: $1.51 Cash Equivalent Sale Price/SF of Buildable Area: $2.52 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 87 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- LAND VALUATION - Continued Comparable Land Sale Three Location: 1529-1547 N.W. 69th Street, Miami, Florida Legal Description: Lot 12 and 15, Block 6, North Liberty City, as recorded in Plat Book 39, Page 77 of the Public Records of Miami -Dade County, Florida Folio No: 01-3114-015-0890 and -0920 �. Grantee: Mount Olive Primitive Baptist Church Grantor: County of Miami -Dade O.R. Book/Page: 18998/3158 Site Size: 6,000 SF (.14 acre) Zoning: R-2 City of Miami - Medium Density Multi -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 3,600 SF Date of Sale: February 25, 2000 Consideration: $8,000 Financing: Cash to the seller Cash Equivalent Sale Price: $8,000 Cash Equivalent Sale Price/SF of Site Area: $1.33 Cash Equivalent Sale Price/SF of Buildable Area: $2.22 • J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 88 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- LAND VALUATION - Continued Comparable Land Sale Four Location: 1442 N.W. 58th Terrace, Miami, Florida Legal Description: Lot 19, Block 6, Orange Heights, as recorded in Plat Book 14, Page 62 of the Public Records of Miami - Dade County, Florida Folio No: 01-3114-035-0920 Grantee: New Jerusalem in Its Power Holiness Grantor: County of Miami -Dade O.R. Book/Page: 18958/1308 Site Size: 5,300 SF (.12 acre) Zoning: R-2 City of Miami - Medium Density Multi -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 3,180 SF Date of Sale: January 24, 2000 Consideration: $11,000 Financing: Cash to the seller Cash Equivalent Sale Price: $11,000 Cash Equivalent Sale Price/SF of Site Area: $2.08 Cash Equivalent Sale Price/SF of Buildable Area: $3.46 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 89 - THE SALES COMPARISON APPROACH TO VALUE -- Continued — LAND VALUATION - Continued Address Folio No Site Size (SF) Site Size (Acre) Zoning Floor Area Ratio (FAR) Buildable Area Date of Sale Consideration Financing Sale Price Sale Price/SF Sale Price/SF of Base Buildable Area COMPARABLE VACANT RESIDENTIAL LAND SALES Land Sale 1 Land Sale 2 Land Sale 3 Land Sale 4 1336 N.W. 6700 N.W. • 1529-1547 N.W. 1442 f t.. W. 45th Street 23rd Place 69th Street 58th Terrace Miami Miami -Dade Co. Miami Miami 01-3123-037-0890 30-3115-036-0261 01-3114-015-0890 01-3114-035-0920 01-3114-015-0920 5,000 4,964 6,000 5,300 0.11 0.11 0.14 0.12 R-2 RU-2 R-2 R-2 0.60 0.60 0.60 0.60 3,000 2,978 3,600 3,180 1 / 12/2001 3/12/2000 2/25/2000 1/24/2000 $8,000 $7,500 $8,000 $11,000 Cash to the Seller $8,000 $1.60 Cash to the Seller $7, 500 $1.51 52.67 $2.52 Cash to the Seller Cash to the Seller $8,000 $11,000 $1.33 $2.08 $2.22 $3.46 .1.13. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 90 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- ANALYSIS OF COMPARABLE LAND SALES The comparable land sales are considered similar to Site Nine in terms of zoning, Location, physical characteristics, topography and buildable utility. The sales represent bona -fide "arm's length" transactions which represent prevailing market values. Our analysis has taken into account those differentials relative to financing, time of sale, location, size, zoning and developmental potential of the sites as they compare to Site Nine. Financing The comparable land sales are "cash to the seller" transactions and therefore, no adjustment for favorable financing was required. Time The comparable sales have occurred between January 2000 and January 2001, and are considered to reflect the prevailing market conditions in the subject area and no time adjustment was applied. Location The comparable land sales were considered similar to Site Nine in terms of location. Size / Scale The comparable land sales range from 4,964 SF to 6,000 SF, while Site Nine has 5,300 SF, thereby not requiring a significant size/scale adjustment. Zoning. Floor Area Ratio (FAR) and Developmental Potential Site Nine is zoned as R-3 Residential Districts. The comparable land sales are located within RU-2 and R-2 multi -family residential districts and were analyzed subject to their Floor Area Ratio (FAR) and resultant buildable area. The size and configuration of Site Nine and the comparable sales as it relates to their development potential were also taken into account. Summary and Land Value Correlation Prior to the adjustments discussed herein, the sale price per square foot of land area for the comparable land sales were $1.60, $1.51, $1.33 and $2.08mr an average of $1.63. Prior to the adjustments discussed herein, the sale price per square foot of buildable area for the comparable land sales were $2.67, $2.52, $2.22 and $3.46, or an average of $2.72. • J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -91 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- Summary and Land Value Correlation - Continued Based on the preceding analysis, $2.25 to $2.50 per square foot of buildable area is a reasonable value range for Site Nine: Site 9: 3,975 SF x $2.25/SF = $8,944 3,975 SF x $2,50/SF = $9,938 Reconciled Market Value of Site Nine (Rounded) $9,500 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 92 - THE SALES COMPARISON APPROACH LAND VALUATION In order to estimate the value of Sites Ten and Eleven, the land is analyzed, as if vacant and available to be put to its Highest and Best Use. There are several different techniques which can be utilized in the valuation of land. The technique selected must relate to the specific factors inherent in the appraisal problem at hand. The land valuation technique selected must reflect the prudent and rationale behavior of the most probable, typically informed purchaser/investor. In addition, the availability of reliable and verified market data further leads to the selection of the applicable Iand valuation technique. 1. The Sales Comparison Approach analyzes the 'sales of similar vacant parcels of land with comparison and adjustment made from these sales to Sites Ten and Eleven. 2. The Abstraction Method analyzes the sales of improved properties with an allocation made between land and improvement value. The indicated allocation may establish a typical ratio of land value to total value or to derive from the portion of the sales price allocated to land an estimate of land value for use as a comparable land sale. 3. The Cost of Development Method provides an estimate of the value of undeveloped land based upon the creation of a platted subdivision, development and sale of said parcel. The method assumes that the most probable purchaser of the land would be a developer/investor who plans to dispose of the developed sites at a profit. The costs of development are subtracted from the estimated proceeds of sale resulting in a net income projection which is discounted over the market absorption period. 4. The Land Residual Method treats the net income available to support the investment in the site as a residual. The income required to cover the investment in new improvements that represent the Highest and Best Use of the site is deducted from the Net Operating Income resulting in an estimate of the net income to the land which is then capitalized to estimate the land value. The Sales Comparison Approach has been selected to estimate the Market Value of the subject sites. This method is based on the principle of substitution which states that a prudent purchaser/investor would pay no more for a given site than the cost of acquiring an alternative site with the same utility. The Sales Comparison Approach is based on a comparison between recently sold sites and Sites Ten and Eleven, utilizing the price per square foot of buildable area unit of comparison. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 93 - THE SALES COMPARISON APPROACH TO VALUE LAND VALUATION - Continued Comparable Land Sale One Location: Legal Description: Folio No: Grantee: Grantor: O.R. Book/Page: Site Size: Zoning: Floor Area Ratio: Maximum Buildable Area: Date of Sale: Consideration: Financing: Cash Equivalent Sale Price: Cash Equivalent Sale Price/SF of Site Area: Cash Equivalent Sale Price/SF of Buildable Area: -- Continued -- 1105-1131 N.W. 62nd Street, Miami, Florida Lots 16 through 22, Block 5, less the southern 15 feet for right of way, Woodmere, as recorded in Plat Book 14, Page 11 of the Public Records of Miami -Dade County, Florida 01-3114-021-1030 through -1090 Nationwide Holiness Church of Brotherly Love, Inc. Hollis and Maria Rucker 18681/2745 16,275 SF (.37 acre) C-1 (City of Miami - Restricted Commercial District) 1.72 27,993 SF June 16, 1999 $35,000 $25,200 purchase money mortgage at 7.0% for five years with monthly principal and interest payments of $500 $35,000 $2.15 $1.25 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 94 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- LAND VALUATION - Continued Comparable Land Sale Two Location: 1700 N.W. 68th Street, Miami, Florida Legal Description: Lot 22, Block 6, less the eastern 10 feet for right of way, Liberty City, as recorded in Plat Book 7, Page 79 of the Public Records of Miami -Dade County, Florida Folio No: 01-3115-005-1560 Grantee: Mount Tabor Baptist Church, Inc. Grantor: Vernon L. Lovejoy O.R. Book/Page: 18523/3753 Site Size: 3,816 SF (.09 acre) Zoning: C-1 (City of Miami - Restricted Commercial District) Floor Area Ratio: 1.72 Maximum Buildable Area: 6,564 SF Date of Sale: March 17, 1999 Consideration: $5,300 Financing: Cash to the seller Cash Equivalent Sale Price: $5,300 Cash Equivalent Sale Price/SF of Site Area: $1.39 Cash Equivalent Sale Price/SF of Buildable Area: $.81 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 95 - THE SALES COMPARISON APPROACH TO VALUE LAND VALUATION - Continued Co l d ee Location: Legal Description: Folio No: Grantee: Grantor: O.R. Book/Page: Site Size: Zoning: Floor Area Ratio: Maximum Buildable Area: Date of Sale: Consideration: Financing: Cash Equivalent Sale Price: -- Continued -- 5880 N.W. 17th Avenue, Miami, Florida Lots 3 and 4, Block 2, Normandy Park, as recorded in Plat Book 25, Page 15 of the Public Records of Miami -Dade County, Florida 01-3115-004-0110 Ak Media Group, Inc. Ruth Meyer, Trustee 18395/4068 6,500 SF (.15 acre) C-1 (City of Miami - Restricted Commercial District) 1.72 11,180 SF October 30, 1998 $16,000 Cash to the seller $16,000 Cash Equivalent Sale Price/SF of Site Area: $2.46 Cash Equivalent Sale Price/SF of Buildable Area: $1.43 d.8. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 96 - THE SALES COMPARISON APPROACH TO VALUE LAND VALUATION - Continued -- Continued — Address Folio No Site Size (SF) Site Size (Acre) Zoning Floor Area Ratio (FAR) Buildable Area Date of Sale Consideration Financing Sale Price Sale Price/SF Sale Price/SF of Base Buildable Area Time Adjustment Time Adjusted Sale Price Time Adjusted Sale Price Sale Price/SF of Base Buildable Area COMPARABLE LAND SALES FOR VACANT LAND Land Sale 1 Land Sale 2 Land Sale 3 1105-1131 N.W. 1700 N.W. 5880 N.W. 62nd Street 68th Street 17th Avenue Miami Miami Miami 01-3114-021-1030 01-3115-005-1560 01-3115-004-0110 to 01-3114-021-1090 16,275 3,816 6,500 0.37 0.09 0.15 C-1 C-1 C-1 1.72 1.72 1.72 27,993 6,564 11,180 6/16/1999 3/17/1999 10/30/1998 $35,000 $5,300 $16,000 $25,200 PMM at Market Rate and Terms 535,000 Cash to the Seller Cash to the Seller $5,300 $16,000 $2.15 $1.39 $2.46 $1.25 0.0% $35,000 $2.15 $1.25 $0.81 $1.43 0.0% $5,300 $1.39 $0.81 0.0% $16,000 $2.46 $1.43 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 97 - THE SALES COMPARISON APPROACH TO VALUE -- Continued — ANALYSIS OF COMPARABLE LAND SALES The comparable land sales are considered similar to Sites Ten and Eleven in terms of zoning, Location, physical characteristics, topography and buildable utility. The sales represent bona -fide "arm's length" transactions which represent prevailing market values. Our analysis has taken into account those differentials relative to financing, time of sale, location, size, zoning and developmental potential of the sites as they compare to Sites Ten and Eleven. Financing With the exception of Comparable Land Sale Number One which involved a 5-year purchase money mortgage, the comparable land sales are "cash to the seller" transactions and therefore, no adjustment for favorable financing was required. Time The comparable sales have occurred between October 1998 and June 1999, and are considered to reflect the prevailing market conditions for commercially zoned land in the subject area and no time adjustment was applied. Location Sites Ten and Eleven are located along N.W. 62nd Street and N.W. 54th Street, respectively, and were similar to the comparable land sales in terms of location and frontage/exposure along a commercial corridor. Size / Scale The comparable land sales range from 3,816 SF to 16,275 SF, while Sites Ten and Eleven have 4,950 SF and 6,000 SF, respectively. Comparable Land Sale Number Three was similar to Sites Ten and Eleven. Comparable Sale Number One required a positive adjustment for size/scale, as larger sites reflect a discount on a per square foot basis (however, a negative adjustment was made for superior configuration and physical development potential). Comparable Land Sale Number Two was smaller than Sites Ten and Eleven, and required a negative adjustment for size/scale (however, a positive adjustment was made for inferior configuration and physical development potential). Zoning. Floor Area Ratio (FAR) and Developmental Potential Sites Ten and Eleven are zoned as SD-1 and C r The comparable land sales are zoned as C-1 District and were analyzed subject to their Floor Area Ratio (FAR) and resultant buildable area. As stated above, the size and configuration of Sites Ten and Eleven and the comparable sales as it relates to their development potential were taken into account. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 98 - TIiIE SALES COMPARISON APPROACH TO VALUE -- Continued -- Summary and Land Value Correlation Prior to the adjustments discussed herein, the sale price per square foot of land area for the comparable land sales were $2.15, $1.39 (required a positive adjustment for configuration/size and physical development potential) and $2.46, or an average of $2.00. Prior to the adjustments discussed herein, the sale price per square foot of buildable area for the comparable land sales were $1.25, $.81 (required a positive adjustment for configuration/size and physical development potential) and $1.43, or an average of $1.16. Based on the preceding analysis, $1.00 per square foot of buildable area is a reasonable value estimate for Sites Ten and Eleven: Site 10: Site 11: 8,514 SF x $1.00/SF = $8,514 Reconciled Market Value of Site 10 (Rounded) $8,500 10,320 SF x $1.00/SF = $10,320 Reconciled Market Value of Site 11 (Rounded) $10,300 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 312E Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 99 - THE COST APPROACH TO VALUE IMPROVEMENT VALUATION After the value of Site Ten, as if vacant, has been determined the next step in the Cost Approach to Value is to estimate the cost of the improvements at the time of appraisal. The estimated value of Property Ten by means of the Cost Approach is based on the estimated reproduction cost new of the building improvements, less depreciation, plus the estimated value of the vacant land, plus developer's profit. The Cost Approach is founded on the principle of substitution which holds that a prudent investor would pay no more for the property than the cost of construction or acquiring an equally desirable substitute property without undue delay in time. Replaceme.rtr Cost New In estimating the replacement cost of the subject improvements, we have relied on: (1) cost information obtained pursuant to the appraisal of similar commercial buildings in Miami and (2) information obtained in the Marshall & Swift Valuation Service Cost Manual. The Replacement Cost New for the existing subject improvements was estimated to be $9,900. Refer to the facing page. Physical Depreciation Physical depreciation can be the result of curable and incurable items. The curable items are those that can be corrected at a cost which is equal to or below the value increase after the repairs, The physical incurable depreciation was estimated by using the economic age/life method (20 years effective age, with a 45 year economic life). The incurable physical depreciation was estimated to be $4,400. Depreciated Improvement Cost Based on the preceding analysis, the depreciated cost for the existing subject improvements was $5,500. Site Value The Market Value of Site Ten, as if vacant was estimated at $8,500. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 100 - THE COST APPROACH TO VALUE -- Continued — IMPROVEMENT VALUATION - Continued SUMMARY OF THE COST APPROACH PROPERTY TEN Total Replacement Cost New (Rounded) $9,900 Less: Estimated Depreciation Physical Incurable $4,400 Physical —Curable -0- Functional Obsolescence -0- Economic/ExternalObsolescence -0- Total Depreciation 4 400 Depreciated Improvement Cost $5,500 Plus: Estimated Site Value, as if Vacant $14,000 Market Value of Property Ten in "as is" condition via the Cost Approach to Value (Rounded) $14,000 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 =i01- RECONCILIATION AND FINAL VALUE ESTIMATE MARKET VALUE ESTIMATES IN "AS IS" CONDITION: Income Sales Comparison Reconciled Approach Approach Value Property 1 $400,600 $360,000 $380,000 Property 2 $122,500 $120,000 $121,000 Property 3 $122,500 $120,000 $121,000 Property 4 $121,600 $120,000 ' $121,000 Property 5 $122,400 $120,000 $121,000 Property 6 $360,400 $325,000 $340,000 Property 7 $103,300 $120,000 $110,000 Property 8 $144,100 $144,500 $144,250 Property 9 nla $9,500 $9,500 Property 10 Na $14,000 (1) $14,000 Property 11 nla $10,300 $10,300 (1): Via the sales comparison (land valuation) and cost approaches to value. The scope of the appraisal involves the research and analysis of factual data relative to the subject properties, as well as market data necessary for the development of the Income Capitalization and Sales Comparison Approaches to Value for Properties 1, 2, 3, 4, 5, 6, 7 and 8; the Sales Comparison Approach to Value (land valuation) for Properties 9 and 11; and the Cost Approach to Value for Property 10. The Income Approach to Value is typically based upon the projected income and expense characteristics used within a Discounted Cash Flow model or direct capitalization method. The analysis of the subject properties in a continued rental apartment use is based on the income and expense characteristics applicable to the subject buildings. Income producing properties are generally purchased on the basis of their anticipated net income. The Direct Capitalization Method converts an estimate of a single year's income expectancy into an indication of value either by dividing the income estimate by an appropriate income rate or by multiplying the income estimate by an appropriate factor. The rate or factor selected represents the relationship between income and value observed in the market. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 102 - RECONCILIATION AND FINAL VALUE ESTIMATE -- The Sales Comparison Apporoach -- Continued sold similar properties inp he subject neighborhood and alue is based on athe subject properties. recently comparable sales are then adjusted for the differences between them and the subject subject properties. These properties, utilizing the Potential Gross Income Multiplier and price/SF (for the smallert four-plex and rooming house facilities) and price/unit (for the larger rental apartment buildings) methods of comparison. The Cost Approach as applied to improved properties, requires an estimate of the of the land, as if vacant. An estimate of the Replacement Cost New of the improvements is then estimated, as derived by the national cost data supplied by value Valuation Services. From the total Replacement Cost New, an estimateP ements depreciation, functional obsolescence and external ohs Marshall & Swift deducted. The resultant figure represents the depreciated cost of t of physical obsolescence, o f the, if improvements,applicable, is the land value. The Cost Approach to Value does not take into consideration the income generation potential of a property, whereas the Income Capitalization and nme Comparison Approaches do. Informed and rational investors of income r properties typically Sales and improvement ytpay ate sales new buildingce based oand/ornetincome flow. producing and does not necessarilyae equal value, as te arenovate The total cost of land or rehabilitate an existing improvement is measured in terms of their utility in the market, as tw ll of as�its existing return to an investor (net income flow). esbenefit/ between 1927 and 1979, and reflect legal non -conforming ' structures an and 8 were built Cost Approach to Value was not applicable and has not been utilized, d therefore, the It is my estimate that the Market Value of the Fee Simple Interest in the su properties in their current "as is" condition, as of June 22, 2001, was: eject PROPERTY ONE - 1250 N.W. 62ND STREET (MHZ-40) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION THREE HUNDRED EIGHTY THOUSAND DOLLARS ($380,000) PROPERTY TWO - 1251 N.W. 59TH STREET MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS CONDITIO ONE HUNDRED TWENTY ONE THOUSAND DOLLARS N ($121,000) PROPERTY THREE - 1275 N.W. 59TH STREET Z-192) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED TWENTY ONE THOUSAND DOLLARS ($121,000) PROPERTY FOUR - 1260 N.W. 59TH STREET MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED TWENTY ONE THOUSAND DOLLARS ($121,000) J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 103 - RECONCILIATION AND FINAL VALUE ESTIMATE -- Continued -- PROPERTY FIVE - 1254 N.W. 59TH STREET (MHZ-200) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED TWENTY ONE THOUSAND DOLLARS ($121,000) PROPERTY SIX - 1231 N.W. 61ST STREET (MHZ-45) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS LS" CONDITION THREE HUNDRED FORTY THOUSAND DOLLARS ($340, 000) PROPERTY SEVEN - 1202 N.W. 61ST STREET (MHZ-58) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED TEN THOUSAND DOLLARS ($110,000) PROPERTY EIGHT - 1613 N.W. 54TH STREET (MHZ-749) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED FORTY FOUR THOUSAND TWO HUNDRED FIFTY DOLLARS ($144,250) PROPERTY NINE - 1241 N.W. 58TH TERRACE (MHZ-209) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION NINE THOUSAND FIVE HUNDRED DOLLARS ($9,500) PROPERTY TEN - 1492 N.W. 62ND STREET (MHZ-9) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION FOURTEEN THOUSAND DOLLARS ($14,000) PROPERTY ELEVEN - 1625 N.W. 54TH STREET (MHZ-750) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION TEN THOUSAND THREE HUNDRED DOLLARS ($10,300) J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 104 - CONTINGENT AND LIMITING CONDITIONS We assume no responsibility for matters legal in nature, nor do we render any opinion as to the title, which is assumed to be marketable. The properties are appraised as though under responsible ownership and management. When applicable, the sketch in this report is included to assist the reader in visualizing the property, and we assume no responsibility for its accuracy. We have made no survey of the property. We are not required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made thereof. Additional professional valuation services rendered would require further compensation under a separate contractual agreement. Where applicable, the distribution of the total valuation in this report between land and improvements applies only under the existing program of utilizations. valuations for land and building must not be used in conjunction with any other ape praisal aisal and are invalid if so used. We assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. We assume no responsibility for such conditions or for engineering which might be required to discover such factors. Information, estimates and opinions furnished to us and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by us. Neither all nor any part of the contents of this report, or copy thereof, shall be used for any purpose by any but the client without the previous written consent of the appraiser, and/or the client; nor shall it be conveyed by any including the client to the public through advertising, publications, news, sales or other media, without the written consent and approval of the author, particularly the valuation conclusions, identity of the appraiser, or any reference to any professional society or institute or any initialed designation conferred upon the appraiser. This appraisal report has been made in conformity with and is subject to the re uirem of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of Florida for state certified real estate appraisers, as well as current Federal regulatory agency criteria. No one other than the undersigned prepared the analyses, conclusions and estimates concerning the real estate set for; :-iii this appraisal. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -IQ5- CONTINGENT AND LIMITING CONDITIONS -- Continued — The existence of hazardous materials, which may or may not be present on the property, was not observed. We have no knowledge of the existence of such materials on or in the property, nor are we qualified to detect such substances. The presence of potentially hazardous materials and/or substances may affect the value of the property. The value estimate reflected in this appraisal report is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No re is assumed for any such conditions, or for any expertise or engineering sponslbilge required to discover them. The client is urged to retain an expert ithis , ififknowledge ired. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine. whether or not it is in conformity with the various detailed requirements of the "ADA". It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the Act. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirement of "ADA" in estimating the value of the property. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 106 - CERTIFICATION The undersigned do hereby certify that, to the best of our knowledge and belief, except as otherwise noted in the appraisal report: - The statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and correct. - The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, unbiased professional analyses, opinions and conclusions. - We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. • - The amount of our compensation is not contingent upon an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of Florida for state certified real estate appraisers, as well as current Federal regulatory agency criteria. The appraisal assignment has not been based on a required minimum valuation, a specific valuation, or the approval of a loan. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives, as well as the Florida Real Estate Appraisal Board. As of the date of this report, Jozef Alhale has completed the requirements of the continuing education program of The Appraisal Institute. The appraiser has personally inspected the subject properties which are described in this report. No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report, nor provided significant professional assistance to the persons signing this report. It is the opinion of the undersigned that the Market Value of the Fee Simple Interest in the subject properties in their current "as is" condition, as of June 22, 2001, was as described herein. • Jozef Alhale, MAI State Certified General Appraiser License No. RZ 0001557 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 107 - ADDENDA J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 108 - City of Miami Department of Piirchastng P 0, Box 330708 Miami. Florida 33233.070o (305) 416.190011922 FAX (305) 416.1925 Telephone No 11 l 1{ iyl.i1ALh k d itilil:. , 1 I d:. r1 T l 1,1 :S1 IIJ SILL`;CI Fl llril.f: 9iiJ 3121 l:I11l1'IlifJlJhl: I I11,r'rlJl. f i ;I PURCHASEORDER NO: 213670 package Shaw this number on all s, invoices and shipping papas Page No: Bid/Contract No: 1 0 RFU 99--00-271 Buyer: .CI 43 Order Date: ;12/Ot J'AMEL.r'; EUI,NE CFF'E l;UJI1LJNLTf DEVELOPMENT "i=14 :;W 2 hi''1 AVENUE 2N1) FLUOR t'IiAH[. FI. 3313o City ul Miami Accounting Division , Accounts Payable DepanmenlofFinance /Accts, l''ayatlia P•O. Box 330708 _ _ Miami, Florida 33233-0706 ntni Dapanl c;LlI9;11JrJ1 i Y ! l_tJkL1Jl`I'li:'II —� _._..__ �_ CUM:ICI Person 4ei4 SW :'ND AVENUE 2NG i i lJul: L�r]�Iik-lr'i Whi Efill I ICI l ld Commodity. Cade Description 944-15 t+LAI'JYJ=f i'tJA;CHil:_ Ui'ilii:ai NA P1(IJl:i±lih_ v,,ri 11'IW; Lila:.: ri J i ili:H; !i I_ is i ?N ,'.IL:t', f 1;1 i{IL•iIJiFSI::II. Al..l- Wl:ilrJ: !si'Iri1.L CONOI Il II? a I'I-JI?511i'ifal TO Exl:l::u ILL' LIJNI RAC I ,, Ia1+1J1 0I.i IC ON ALL fl I II:'; `-ai,'-il, L. 1:ri:. 1:LIpl-LULL, t.4 LATI_Ji IIJ rl,l ; 1:44LENDAk OAP; AFTER KELEWf J ORI:>-IALL r]h:[iLN. i'U[:::Ur'Ir1T iU kEO 9'--0G'•2-21 AND Jfl::f:ii)LIJriCN f;U. ;Iij-. ., f1111:; W.ANY.l:T PL ;;I:FlA E Uf•`liE(: Jlii,l 4171 I ::CFA::.1) Ili.f!; Fel'l(lilf4i IJIJJiOui F,If'I JIUi i L1 I1 CHANGE 1:HroEii E:Y 7'Ili 1'tJI:1.;HAEN G UJ::F'iIlINI Nr. T111:'. Ci Y 11ILI. hli;T OE L IA Lt_ FHA: Lj;r"fsLil:E; I:Id I.Jt Jif:= AI'1L'JI.INi Ar'I'i•:ljVi:::lJ. Tax ID or S/S No: 65. 05'02663 Terms: (Prompt payment OIsceunt) N1: T 3 0 Purchase Order No: 213670 Delivery Date FIWPC 506 Rev. 7/97 w u O TIJTC--;L: XXXxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxXxxx xxxxxxxxxxxxxxxxx XXXxxxxxxmoo Xxx xXxxaxxxxxxX XX x%xx XXXXXXXY JJ44XX1XXXX)C x XXxXxx)i"xe.axxxu;t�x xxxXXXxXXXxXxxXxxxxxxxXXXxXXxxxxxxxxxxxxx xxxxxxxcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxX XxxxxxxxxxxxxxxxxxxxxxxxxxxxjxxxxxxxxxxxxxX xxxxxxxxxxxxxxxxxxxxxxxxxxxxxX.xxxxxxxxxx XXxxxxxxxXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xXxxXXXxxXXxxxxxxxxxxxxxxxxxxxxxxx' XXX " xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx'xxxx ,1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 'xxx x!t xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx x' Distribution: Whrte Vendor Green Accounts Payable Darker City Telephone No: 30 -q1E, 191 Unit Price Vendor Instructions CD-1-41510' Extended Price I1500.00 11500.05 1. Florida Tax Exempt ID 123-08.330380.54c. 2. Invoices: Direct Invoices in Duplicate to the address shown above 3. Terrns and conditions sel lonh in our Bid or ouolalion on the reverse side hereof or incorporated herein by reference become a part of this order. F.O.B. DESTINATION lJy�v Oi l- Specified p raved sing Dept. Plnx Requesting Depl.Goidenrod Receiving Record. of Mia J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 109 - Sec. 60I. SD•1 Martin Luther King Boulevard Coultnerefdl District. (Ord. No. 10771, § 1, 7-26.90; Ord. No. 10863, § I. 3.28.911 Sec. 601.1. Intent. This district is of special and substantial public interest because of the need to develop and redevelop in a manner improving amenity, efficiency and security. These regulations are intended to encourage concentrations of commercial and service facilities at intersections of arterial streets, encourage residential development uhove such facilities and in areas away from such intersections and to provide the development and design opportunities inherent in larger site areas. (Ord. No. 10771, § 1, 7.26.90; Ord. No. 10803, § 1, 3-28.011 See. 601.2. Effect of SD-1 district designation. The effect of these SD-1 regulations shall be to modify regulations within portions of other zoning districts included within the SD boundaries to the extent indicated herein. (Ord. No. 10771, § 1, 7-26•00; Ord. No. 10863, § 1, 3•28.011 Sec. 601.3. Class II Special Permit. 601.3.1. When required. A Class II Special Permit shall be required prior to approval of any permit {except special permits pursuant to article 131 affecting the height, hulk, location or exterior configuration of any existing building visible frwn the right-of-way; or for the erection of any new building; or for the location, relocation or alteration of any structure, parking area or vehicular way visible from a public street. 601.3.2. Considerations in making Class II Special Permit determinations. The purpose of the Class II Special Permit shall he to ensure conformity of the application with the expressed intent of this district, with the general considerations listed in section 1305, and with the special considerations liu._•d hulu�ti. 1. All signs, awnings and storefront renovations shall he of a style and/or size which is consistent with the existing or adjacent building styles and/or storefront designs. 2. Wherever feasible, lot frontage along Martin Luther King Boulevard and N.W. 7th Avenue should be developed in accord with design standards and guidelines in the ,City of Miami Primary Pedestrian Pathway Design Guides and Standards." (Ord. No. 10771, § 1, 7-26.90; Ord. No. 10863, § 1, 3-28.911 Sec. 601.4. Principal uses and structures. Except as required in section 601.4.1, permitted principal uses and structures shall be as required for C.I. 601.4.1. Limitation on uses. 601.4.1.1. Limitations on uses near specified intersections of arterial streets. Lots with frontage on Martin Luther King Boulevard, where the front abutting lot line is entirely within three hundred (300) feet from the intersections with 7th, 12th or 17th Avenues North, at least fifty (50) percent of ground level frontage on the boulevard shall be used for retail or office uses. J.B. ALRALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 110 - secting Martin Luther King Boulevard in the area described at section 001.4.1.1. All such yards shall bu landscaped and shall not be uMe d fur offstreet parking, but drive- ways equal in maximum width to twenty -live f25, percent of the width of the lot (or depth where such yards adjoin at the side/ may be permitted to cross such yards. (Ord. No. 10771, § 1, 7.26.90; Ord. No. 10863, fi 1, 3-28-911 Sec. 601.9. Reserved. Sec, 601.I0. Minimum offstreet parking. Minimum offstreet parking shall be as'required fur C-1. .(1rcl. No. 10771, § 1, 7-26-90; Ord. No. 10863, § 1, 3-28.91t 601.41.1.2. Limitation., un outdoor uses. All eununa•rcial, sales, display and service activities shall be within completely enclosed buildings except for plant nurseries; outdoor dining areas; arts and crafts exhibits, including demonstrations and performances; flowers; plants and shrubs; objects of art; alai handier -:ills; mass-produced items under certain conditions; and by Class 1 Special Permit, produce and foods. 601.4,2. Permitted only by spe(.•ial permit. Uses and structures permitted shall be as for C-1. lit addition' 1. By Class I Special Permit only, establishments I'a,r sale of'sccondhand merchandise n By Special Exception only, bars, saloons, taverns, private clubs, lodges, supper clubs, nightclubs, fraternity or sorority houses• pool antlrur billiard halls. 3. By Class I Special Permit only, parking garages and commercial parking lots and temporary revival churches. 4. By Special Exception only, rescue missions. 5. I3y Class II Special Permit only, open air sales and other- uses not covered in 601.4.1.2. 6. By Class !Special Permit, mass-produced items. [Ord. No. 10771, § 1, 7-26-90; Ord. No. 10863, § 1, 3-28-01 r See, 601.5, Reserved, Sec. 601.6. Minimum lot requirements. Minimum lot requirements shall be as follows: 1. Fur residential uses only, not involving mixture, with Other uses, minimum lot width and area shall be as required for the 1 -1 district. 2. For other uses, as required for C-I. (Ord. No, 10771, § 1, 7.26.90; Ord. No. 10863, § I, 3.28•91i Sue. 601.7. Floor area limitations. Limitations in floor area shall be as required lie• C-1. (Ord. No. 10771, § 1, 7.26.90; Ord. No. 10863, § 1, 3•28-91 Sec. 601.8. Minimum open space requirements. Within the SD•1 district, minimum open space r•cyuirurrierrt, shall be as follows: 1. For residential uses, without mixtures of other uses, as required for R-1. 2. For nonresidential or mixed uses: front yard, street side yards: Front and side street yards shall be ten (101 feet, except adjacent to Martin Luther King Boulevard where a front yard nut less than ten (101 nor more than twenty 120) feet in depth shall be irruvirl+•d. Similar yards .shall Ise reytiit•er1 whw•e sidt's of lets ;tdjoin streets intur- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 111 - PI- AN eoursesheminars aponsorad and given by the Appraisal Insalul.. 3421 Conynodp,a J. Suits 200, Coconut Greve, .OZEF ALHALLF, 51AI TO: P O 552.0940 Fax: (7Jfi5} 6.0 701ariM 33133 SIATEAESMISSLCJ 0AIE CQUILICIS LTLE 10//Br2000 Fonda State taw and USPAP Rvee rw furRealACE9Real Estate Appraisers H��$$ 687365Z2 7.0 972/2000 Pow lrarraal Valuation . Undivided ACE143745459d 7.0 31312000 Repression Anarysw n A ppwal Pruuar Curtdpts and Applications ACE950649585 2/200 Faunal Appraisal RWtaramonu 7.0 9i20 ACE1421236711501 3.0 1W1S.1a/1989 Cause 330Apartnwn1 Appraisal: Coxrpts aiW AppveaYuns 1002/1999 AC@5288 10.0 AtIMUeg and Defending an Appraisal ACE2150 8/1307999 Partial Intrust Valwaort- Divided 3-5 ACE7003 7.0 7/24/1999 The Good, the Bad and the Appraisal Bv,vu' ACE2174 3.0 511/1999 An aside view of ethics and srandaws ACE2203 3.0 8114/1998 7 H0Ur USPAP'Core' Lew Mr A PPratiera ACE1281 - 7.0 7/18/1998 The! mpaet of Canlamwtion on Real Lay:,ld Value ACE2143 lit •7371996 3.0 Standards of profraaortal PraWcr. Pan C ACE1959 15.0 5/ /1996 Lou Prevention for Appraisers ACE2070 3.0 4/3/1998 Small HotWrMotal Valuation ACE20d9 7.0 2/20/1999 Appraisal Oilier Man:pwnenl ACE204: 1/3111095 Non•ccrdonnalfl Uses 7.0 ACE2048 3.0 9l8/1997 Appraisal of Transferable Development Rants ACE1985 3.0 7/8/1997 NAIFA Fair Landing Course 504 7.0 11115/1898 Appraisal of Nuratn0 Homy Facilities ACE1875 70. 7/13/1995 The'98 Data Eschatlpa/Roundlabtr lot Mum. Prapenies ACE1625 70 2/3/1990 Internet and the Appraisal ACE1750 30 6/10/1995 The Appraiser as Evan Witness 2r414985 ACE1531 7.0 Raid Estate Evaluations and the Appraisal Industry ACEi812 3.0 10114/1994 Seven Nour USPAP'Core' Law For Appraisers ACE 1201 8/5/1994 Limited Appraisals and Reporting Options. 7.0 _ 7/13.10/1994 ACE1557 7.0 Standards of Professional Practice, parts A and B 410 & 420 27.0 el/11/1994 Verification of Market Oat& ACE1532 3.0 4/18/1994 Power Lind Easements and EMF Ceminar ACE1495 3.0 2/12/1991 Amrneana'Mtn Disabilities Act (ADA) Seminar ACE7482 4.0 9/41/1993 Motel Valuation ACE1005 30 4/17/1993 Why We Cap Rale is Always'10" 7 ACE1283 3.0 9/28/1992 Education: The New Generation ACE1203 3.0 9/17-Ior1992 HogYMatal Markel Study, Valuation it Investment ACE1258 14.0 2/111992 Practical Approaches to Appraising Troubled prapdnias ACE282 3.0 6/15/1991 Overview of Recent Charges to SlarWertlt ACE691 3.0 9/11/1000 SutWbAaion Analysts ACE990 7.0 0 24.30/19B0 Ripon Wilting and Valuation Analysis EXAM24 18.0 2024.3/31 1990 Casa Studios in RNEI Estate Valuation EXAM2.1 30.0 0/23-11/1 1989 Capitalization Theory and Techniques, Part B L'7(AM1B-B 39.0 5/7.1i/ 1989 Standards of Pr0fasslonal Practice SPP 24.5 2/4.3116 1959 Capitalization Theory and T enniquis, Pan A EXAM113A 39.0 9/17.70/22 198E Real Estate Appraisal Principles EXAM1A-1 35.5 9/10-10/15 1988 Basic Valuation procedures EXAMIA-2 29.5 TOTAL 460.0 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 o Coconut Grove, Florida 33133 - 112 - JOZEF ALHALE, MAI 3121 Comrnodore Plaza, Suite 200 Miami, Florida 33133 QUALIFICATIONS Experience: Thirteen years in the field of real estate appraisal, consultation, economic research and market analysis. Membership: Appraisal Institute, MAI Miami Society of Commercial Realtors Professional Experience: J.B. Athale & Associates, Inc., Miami, Florida President, May 1994 to present Dixon and Friedman, Inc., Miami, Florida Senior Appraiser, October 1991 - May 1994 R.G. Davis & Associates, Inc., Miami, Florida Fee Appraiser, January 1991 - October 1991 Izenberg Appraisal Associates, Inc., Parsippany, New Jersey Staff Appraiser, July 1988 - December 1990 Academic Education: Master of Science, Computer Science Rensselear Polytechnic Institute, Troy, New York Licensed: Bachelor of Arts, Cum Laude, Computer Science New York University, New York, New York State Certified General Real Estate Appraiser - State of Florida Certification Number RZ 0001557 Real Estate Salesman - State of Florida Assignments: Appraisals - Vacant land, industrial facilities, shopping centers, office buildings, rental and condominium apartment buildings, hotel and motel facilities, adult congregate living facilities and other special-purpose properties. Consulting - Economic research, market analysis and feasibility analysis pertaining to commercial and residential properties. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 113 - MENNIIIMMEmiimmoniiimm LOCATED AT: 1231 N.W. 61sT STREET MIAMI, FLORIDA PREPARED FO$: CITY OF MIAMI 444 S.W. 2ND AVENUE, 3RD FLOOR MIAMI, FLORIDA 33130 As OF: AUGUST 2, 2001 PREPARED BY: QUINLIVAN APPRAISAL, P.A. 5730 S.W. 74TH STREET - SUITE 300 SOUTH MIAMI, FLORIDA 33143 J. Kum is QUINLIVAN, MAI STATe•CssTITI ID Arraassses RZ 0000ua August 2, 2001 QumLIVAN APPRAISAL A P OPSSIoNAL ASSOCIATION REAL ESTATE APPRAISERS & CONSULTANTS 5700 S.W. 74TH STRRET, SUITE C00 SOUTH MIAMI, FLORIDA 03143 TSLRPXONE (305) eau-eeit FAX (305) 865.4021 Laura Billberry, Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue, 3rd Floor Miami, Florida 33130 Dear Ms. Billberry: THOMAS F. MAGENNEIMBR, MAI STA7s-Cssrq,sn Gsxeswr. Arrawasss RZ 0000550 In accordance with your request and authorization, I have prepared this Appraisal Report covering the following described property: A three-story apartment building located at 1231 N.W. 61st Street, Miami, Florida. The purpose of this Appraisal is to estimate the Market Value of the described property as of August 2, 2001, being one of the dates of personal inspection. The narrative 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. Laura Billberry, Director Office of Asset Management August 2, 2001 Page 2 Based on the inspection of the property and the investigation and analyses undertaken, I have formed the opinion that, as of August 2, 2001, the subject property had a Market Value of: Two HUNDRED EIGHTY-FIVE THOUSAND DOLLARS ($285,000) Respectfully submitted, J. Mark Quinlivan, MAI State Certified General Appraiser Certification Number: RZ0000112 .JMQ/lh (01-101 MHZ45) TAB.LF OF CONTENTS TRANSMITTAL LETTER CERTIFICATION OF VALUE 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 3 INTRODUCTION Identification of the Property 4 Location 4 Purpose and Date of Appraisal 4 Intended Use and User of Appraisal 4 Legal Description 4 Property Rights Appraised 4 5 Owner of Record and Address 5 History of Title 5 Estimated Exposure Time 6 Estimated Marketing Period 6 SITE DATA Dimensions and Shape 7 Area 7 Topography and Drainage 7 Flood Zone 7 Soil and Subsoil 7 Utilities 8 Street Improvements 8 ZONING 8 HIGHEST AND BEST USE 8 DESCRIPTION OF IMPROVEMENTS 9 Assessment and Taxes QUINLIVAN APPRAISAL TABLE OF CONTENTS �Y. :7 Y ...bekh' 1e'..- .,_.tett,:...4 e\.e,Iidke t.111 S.cc r1 SCOPE OF THE APPRAISAL 11 INCOME APPROACH TO VALUE 13 SALES COMPARISON APPROACH TO VALUE 16 RECONCILIATION AND VALUE CONCLUSION 18 ADDENDUM Assumptions and Limiting Conditions 20 Qualifications 22 QUINLIVAN APPRAISAL ....�'rt:• �;iti ;n� ,..; .sib... . CERTIFICATION OF VALUE ..:1.�1+.:iy?: :.: 4..: ?;. �..:..:.. tiY:r:}S i?Syi .;.1:'u :::.}+ :.}:.}•..;y..;:.i:.: ii:d:i;:.:::i i':� •.:•. 'it ^` .f5i,:::..: •<>it�iti�i' �' r;:a.:::y. ,€,..,}.r. s.r ..rr:� <2`�r'�}r�c:k, . '�o-y:v a:.; •<�.... :r.`;•i. :;r .?`<!�:..: E.... :•Ru : ;r;dx;.v:'s;:. .:h:rx.: .f,.:;,:'st2i o $''::i':. .i.,, Yi:etr:y?r,o:::o};S::S�:....:.:....:., ::.,. .u.: . f'.: ..d. y�' i. �.i.. W. r.+.. :::.<..�v.• �.t .f .; :<::...., t�:,.�v:ti....,.i,::°.:p.:;:..:. }:i3':....:.r:c.Y.:..y.,. :�.ax::r :.:,:.�. a• ... f�6R�. 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. (s) 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 was 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 was not based on a requested minimum valuation, a specific valuation or the approval of a loan. (G) The appraiser's analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the State of Florida for state -certified appraisers. (u) 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. (I) J. Mark Quinlivan has made a personal inspection of the property that is the subject of this report. (i) Laneen Harrison provided professional assistance to the person signing this report. QUINLIVAN APPRAISAL I (K) The reported analyses, opinions, and conclusions were developed, and this report has been 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. As of the date of this report, J. Mark Quinlivan has completed the requirements under the continuing education program for The Appraisal Institute. Based on the inspection of the property and the investigation and analyses undertaken, subject to the assumptions and limiting conditions set forth in the Addendum of this report, I have formed the opinion, as of August 2, 2001, the subject property had a Market Value of Two HUNDRED EIGHTY-FIVE THOUSAND DOLLARS ($285,000) J. MARK QUINLIVAN, MAI STATE CERTIFIED GENERAL APPRAISER CERTIFICATION NUMBER: RZ0000112 QUINLIVAN APPRAISAL 2 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Type Appraisal Complete Type Report Summary Purpose of Appraisal Market Value Property Rights Appraised Fee Simple Location 1231 N.W. 61st Street Miami, Florida Land Size 10,600 square feet Improvements Age Zoning Highest and Best Use Three-story apartment building containing 21 apartment units 1959 R-3, Multifamily Medium -Density Residential Existing multifamily residential use Indications of Value: Cost Approach Not Applicable Income Approach $295,000 Sales Comparison Approach $270,000 Final Estimate of Value $285,000 Date of Value Estimate August 2, 2001 Date of Report August 2, 2001 QUINLIVAN APPRAISAL 3 MHZ 45 MHZ 45 QUINLIVAN APPRAISAL INTRODUCTION IDENTIFICATION OF THE PROPERTY A three-story apartment building containing 21 apartment units. LOCATION 1231 N.W. 61st Street Miami, Florida PURPOSE AND DATE OF APPRAISAL The purpose of this Appraisal is to estimate the Market Value of the property as of August 2, 2001, being one of the dates of personal inspection. INTENDED USE AND USER OF THE APPRAISAL The intended use of this appraisal is to assist the client in determining an acquisition price. The intended user is the City of Miami. LEGAL DESCRIPTION Lots 31 & 32, Block 2, ORCHARD VILLA EXT., according to the Plat thereof, as recorded in Plat Book 17, Page 55, of the Public Records of Miami -Dade County, Florida. Source; Miami -Dade County tax records. 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 4 ASSESSMENT AND TAXES - 2000 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% ofJust Value, in reality the ratio of the assessed value to sales price is generally below 100%. Folio Number: 01-3114-043-029! Assessed Value: Land $ 10,668 Improvements $ 143,960 Total $154,628 Millage Rate: $27.384 per $1,000 Tax Amount: $4,234.33 OWNER OF RECORD AND ADDRESS Model City Investment Corp. 13899 Biscayne Boulevard, Suite 310 Miami, Florida 33181 'IV -YEAR HISTORY OF TITLE The property sold in conjunction with an adjacent 27-unit apartment building in June of 2000 for $435,000. This transaction is recorded at Official Records Book 19186, Page 3538. The buyer was Model City Investment Corp. and the seller was Turnberry Bank. The property previously sold, with other parcels, in May of 1996 for $356,500. This transaction is recorded at Official Records Book 17214, Page 1360. The buyer was Darian Enterprise, Inc. and the seller was Iri Management Co. Inc. There have been no other sale transfers of title to the subject property over the past five years. QUINLIVAN APPRAISAL 5 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 appraiser has taken the following steps: Discussion with buyers, sellers and brokers of apartment buildings in the area related to historic marketing periods. Based on the above sources, exposure time is estimated to have been six 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 is reviewed over the past three years, multiple listings are reviewed and real estate brokers who operate in this area are interviewed. Based on the above sources, the subject property could be sold within a six month time period. QUINLIVAN APPRAISAL 6 SITE DATA Dimensions and Shape: The site is rectangular in shape. The site fronts 100 feet, more or less, along the north side of N.W. 61 st Street with a depth of 106 feet, more or less. So Ice: No survey of the site was furnished. The dimensions of the site are calculated from the Iegal description and the Hopkins Plat Book. Area: 10,600 square feet or .243 acres Source: No survey of the site was furnished. The size of the site based on the Transamerica Intellitect print out of the Miami -Dade County tax roll. Topography and Drainage: The site is level and approximately at street grade. Flood Zone: Map N4 12025C0180.1 uxti Soil and Subsoil: (Effective March 2, 1994) Areas determined to be outside 500-year flood plain. 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. QUINLIVAN APPRAISAL 7 Utilities: Water: Miami -Dade Water and Sewer Authority Sewer: Miami -Dade Water and Sewer Authority Electricity: Florida Power & Light Company Telephone: BellSouth Telephone Company Street Improvements: N.W. 61st Street is an asphalt paved road with a dedicated width of 50 feet. N.W. 61st Street contains one east bound and one west bound lane. ZONING Under Ordinance of the City of Miami. Classification: R-3, MULTIFAMILY MEDIUM -DENSITY RESIDENTIAL See Data Book for complete description of the zoning. HIGHEST AND BEST USE: The subject property is improved with a three-story apartment building. The existing apartment building is considered the Highest and Best Use of the site. QUINLIVAN APPRAISAL 8 DESCRIPTION OF IMPROVEMENTS Age and Condition According to the Public Records of Miami -Dade County, the building improvements were constructed in 1959. From personal inspection of the property, the improvements appear to be in average condition. Description The apartment building contains eighteen 1 bedroom/1 bathroom units and three 2 bedroom/1 bathroom units. The one bedroom unit contains a living room, kitchen, bedroom and bathroom with an average size of 436 square feet. The two bedroom unit contains an average size of 525 square feet. Size 3 (21' x 62.25') 3 (21' x 62.25') 3 (21' x 25.00') Total = 3,922 square feet = 3,922 square feet 1.575 square feet 9,419 square feet Details of Construction Foundation: Exterior Walls: Windows: Roof: Interior Walls: Ceilings: Floors: Lighting: Steel reinforced poured concrete spread footings in excavation trench 8" concrete block stucco - painted Aluminum single hung and glass jalousie FIat, built-up tar and gravel Plaster - painted Plaster - painted Carpet, vinyl and/or tile over poured concrete slab Incandescent QUINLIVAN APPRAISAL 9 Equipment and Fixtures None (appliances owned by tenants) Site or Yard Improvements Wrought iron fence Landscaping Asphalt paving (10 spaces) QUINLIVAN APPRAISAL 10 THREE-STORY 21' 62.6' MHZ 45 1231 A.W. 6lat Street THREE-STORY 21' 62.6' N.W. 6lst Street SCOPE OF THE APPRAISAL 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 were separate entities. The land value is first estimated as if vacant. Then, by consulting various cost services, local building contractors and by knowledge of construction costs, an estimate of the replacement cost new of the building is determined. 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 cast" 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's profit. The Cost Approach has most applicability when building improvements are new. With older properties, the estimate of depreciation becomes difficult and is subject to error, affecting the reliability of this approach. Accordingly, considering the age of this property, it is the appraiser's opinion that the Cost Approach has little applicability in this situation and 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. QUINLIVAN APPRAISAL 11 Four basic steps comprise the Income Approach: (1) Estimate the reasonable expectable annual gross income the property will likely produce. Deduct an allowance for vacancy and collection loss to arrive at the effective gross income. 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 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, the 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 apartment buildings in the same neighborhood 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 must be 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 weighted according to its importance. QUINLIVAN APPRAISAL 12 INCOME APPROACH TO VALUE This approach to value is a technique in which the anticipated net income is processed to indicate the capital amount of the investment which produces the net income. The capital amount, called the capitalized value, in effect, is the sum of the anticipated annual rents less the loss of interest until the time of collection. Income 3-2 BR/1 BA units @ $410 per month x 12 mos. = $ 14,760 18-1 BR/1 BA units @ $310 per month x 12 mos. W $ 66.960 Potential Gross Annual Income $ 81,720 Less: Vacancy & Collection Loss (7%) - 5.720 Effective Gross Annual Income $ 76,000 expenses Management $ 5,320 Real Estate Taxes 4,234 Insurance 2,160 Electricity (Common Areas) 480 Water/Sewer 9,600 Repairs & Maintenance 4,800 Gas 1,800 Waste Removal 1,992 Miscellaneous 1.200 Total $31,586 = 31.586 Net Operating Income $ 44,414 $44,414 Capitalized @ 15% = $296,093 Value Indication by Income Approach (RD) $295,000 QUINLIVAN APPRAISAL 13 Bents! Rate Analysis The subject units are rented as follows: 2 Bedroom/1 bath units $410 1 Bedroom/1 bath units $310 A summary of the comparable rentals is contained on a following page. Based on a careful analysis of the comparable rentals, the market rent for the subject units are estimated as follows: 2 Bedroom/1 bath units $410 1 Bedroom/1 bath units $310 Vacancy and Collection Loss A vacancy and collection loss allowance is a reduction in potential rental income due to space not leased or rents not collected. This allowance is generally expressed as a percentage of Potential Gross Income. The vacancy rates of the comparable rentals range from 0% to 25%. The vacancy rates are reflective of the vacancy at the time of the rental survey and are not stabilized annual rates. Based on the above, a vacancy and collection loss allowance of 7% is considered applicable for the subject. Operating Expense Analysis The expenses were based on expense information obtained from the subject building and similar buildings. A summary of expense comparables is contained on a following page. QUINLIVAN APPRAISAL 14 Selection of Capitalization Rate Capitalization is a process which translates an income projection into an indication of value. The connecting link is a rate which reflects the return necessary to attract investment capital. Hence, the selection of an appropriate rate represents a critical factor in the capitalization process. -. .. {¢ yk Fp}a°)rZ,A Y> ...Mk 1s ` :•..* s 'C.{�:. 'q/.Ai }}. _..i i Y :C;:f i:::'r,': v:[.rr.Y' ].•.Y v :•YT..; :'r` ;;i.}`: v$•t:? [:vE... :':�:✓::: .J.f: 4 .. �:.; �i4?.r: 1 4:•l'Li::yY�w� }f::T:• ::'��'�,'gS ?`•%r•:I:'%S'7.•°r: 4"•:<t<<:,•.: a•.�t 'i?:'F.:T'.:J:.: v: Y J .:a]� p; • r?r.i�•r}��p. 1299 .r_-•'•' 'i• .•,.< �3,..•W.,...". i' ^ i' P:• yy�ii J;y," ::T. i 1 �) `: ;• eH :`"' :srry:' ?c%: ?:?f�: :.: C`+:,}:: Y:Y ;?k)'"?: �:.''}2'J: "•r�� r:$•:,''21'{ :: �k ]::.. � .''! v^• `S . `i 0:.,.,Sl .}r: ::,Ci, r S 8..'.;A4°o #u,. . •: '.p�,•..,:y{2i'F;?i:%�:}Ac.1WARk: N.W. 60 St. _- t .:;. a�Q�ik. y:,. Y 2 < ' ,' ' f �VyD•�•f' 1�`. F.4<` :k'ry.:. 4y� " '..:..r,'e•:Y::: Sd';;.: " .'ro. Y :Cy.:. :;e°.t:�'.}yk•:.' .:?�; VV •'.<- . ' :c ` iJ:{ T u4: '�.>Y. yv �J: :.•. •]}% .'?[�$C^.{i{$ ;.v, . :Tv,a h4 T. ,• J;•. : 3 ` '� ' .t..04,�( vtt:r %a.. , . • i??.. auTJp r< 09/25/98 $175,000 13.7% 2 750 N.W. 56 St. 01/23/00 $170,000 19.0% 5 1575 N.W. 59 St. 11/14/00 $ 98,500 17.0% 7 1319 N.W. 60 St. 12/01/00 $ 85,000 14.8% 9 1601 N.W. 62 St. 01/05/01 $320,000 15.5% QUINLIVAN APPRAISAL 15 COMPARABLE RENTALS Number Unit Acisirgp of Units A Breakdown Renjal Rates 1 1238 NW 58 Terr. 12 1964 10 —1/1 1/1 — $275 2 Eff. Eff. — $250 2 1255NW58St. & 36 1959 21-1/1 1/1-5285 1256 NW 58 St. 13 --- 2/1 2/1 -- $315 2 — Eff. Eff. — $210 3 1600 NW 59 St. 4 1967 4 — 2/1 2/1 — $300 4 1250 NW 60 St. 6 1958 6 —1/1 1/1— $270 5 1425 NW 60 St. 22 1958 22 — 1/1 1/1 — $350 6 6091 NW 15 Ave. 15 1957 8 — 1/1 1/1 — $225 6 — 2/1 2/1 — $285 1 — 3/2 3/2 — $450 7 1435 NW 60 St. 12 1958 10 —1/1 1/1 — $495 (1) 2 — 2/1 1/1 — $250 1/1 — $350 2/1 ---- $675 (1) 2/I — $675 (1) 1519 NW 60 St. 9 1341NW61St. 4 1961 2-1/1 1/1-5475(1) 2 —3/2 1/1 — $350 3/2 — $775 (1) 6 1957 6 — 2/1 2/1 — $260 1/1 — $300 1/1 — $350 2 vacant units 10 1400 NW 61 St. 6 1959 4 —1/1 1/1 — $495 (1) 2-3/2 3/2—$775 (1) 11 1371 NW 61 St. 6 1958 6 ---- 1/1 1/1 — $300 12 1520 NW 61 St. 18 1957 12 — 1/1 1/1 — $325 6-2/1 2/1 —$425 (1) Section 8 Apt-ren.grd OPERATING EXPENSES ADDRESS 1234NW54Tnr. 1255NW5*51. 1614NW5951. 1754 NW 64 St. 1425 NW 61 St. 691NW15AM. 143516W64SL 151914W6154. 1341 NW 61 54. Her NWL151. 1371NW41St. 1524NW6134„ (1) 1256 NW 5154. Nu. of Unna 24 36 4 6 22 13 12 4 6 6 6 11 FIXED EXPENSES: Real EstateTaxcs 56.312 $1.276 12,525 52.763 35,600 53,975 52.649 52071 51339 $2,999 $2,619 56.466 Insurance 53.990 51,295 5915 31350 51.500 33.600 54.062 (2) 1100 54.052 (2) 54,852 (2) 51,700 55,000 VARIABLE OPERATING EXPENSES: Management Common Area Ekclncily $4.800 3497 5255 $336 3540 Wager ASe'"'n' 55.400 516.693 51,203 51.164 55.400 S4,719 1*42 Tennis ray 52,51E SLING 54300 Gas $3.744 59.114 $2.109 $1,454 5970 51.734 51,134 Waste Removal 52.200 57.334 5714 1746 51,260 S1,714 51.125 51.430 51.621 51.497 -32352 32.8316 Repairs k Maintenance S10.000 $13,050 5600 51.800 $2,985 54,000 (3) 51,000 (3) 51000 (3) 51,000 (3) 52,440 51.00 Legal A Prof. Fees 51237 5512 Miscellaneous 11.400 1300 5300 5300 (1) With she building located al 1245 N.W. 58th Street (2) For 3 of Williams Buildings (3) For all 4 Williams'Buildi4gs OPERATING EXPENSES (PER UNIT) ADDRESS 1232NWS1Tarr. 1255NWSiSt. 1661NW59St_ 1236NW60St. 1425NW66St. 6MINW1SAre. 1435NW0IST. 1319NW44SL 1341NW61S6 1414NW61SC. 1371NW61SL ISMNW61SIf. i1) 1256NW Si St. No of Untta 24 36 4 6 22 15 12 4 6 6 6 11 FIXED EXPENSES: Real Estate Taxes 5263 S230 S631 5461 S255 S265 $221 5520 5237 5500 S437 S359 Insurance 5166 S36 S229 S225 566 S240 S169 S200 S169 1169 S213 S271 VARIABLE OPERATING EXPENSES: Management Comment Arca EkcariuIY $200 525 564 S56 570 Water& Stater S225 5464 S301 5194 5245 5399 ST,ZI TewtuRs h7 5420 5316 1290 (gas S156 S255 S352 S155 5243 S269 3119 Waste Removal S92 S204 5179 S131 557 5119 S152 S401 S270 1230 S392 5159 Repairs & Maintenance S417 S363 S150 S300 5199 5306 S301 S301 S301 S400 567 Legal & Ptc4. Foes S52 S14 Miscellaneous S34 S75 S50 520 (11 W uh the building located ?1 1245 N. W. 51t6 Street 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. The following page contains a summary of sales of similar apartment buildings which have recently sold. Several other sales were considered by the appraiser, but were not included because there was too wide a difference in physical factors, location and time. In comparing the sales to the subject, consideration was given to factors of time, location, physical characteristics and terms and conditions of the sale. In this approach to value, four units of comparison were considered: the price paid per square foot, the price paid per room, the price paid per unit and the gross income multiplier. A Gross Income Multiplier (GIM) is a factor reflecting the relationship between gross annual income of real estate and its sale price or value. The rationale of the GIM Analysis is that both the sale price or value and the gross income of an income property are subject to the same market influences. They presumably move in the same direction and essentially the same proportion in response to market conditions, locational/environmental influences and amenities and functions offered by the property itself. The principal advantage of this technique is that the reflection of rental income is direct. Therefore, differences between properties, which could involve adjustments based on judgement estimates, have been resolved by the free action of the rental market. QUINLIVAN APPRAISAL 16