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Home My WebLink Aboutexhibits 5The unit prices of Sales 1, 2, 5, 7 and 9, which are considered most comparable to the subject property, range as follows: Sale No. 1 2 5 7 9 Price/S.F. $19.84 $17.63 $16.55 $18.58 $25.40 Price/Room $3,646 $2,538 $3,127 $2,500 $3,265 Price/Unit $14,583 $9,444 $8,955 $10,625 $11,429 GIM 3.35 1.98 2.59 2.83 2.93 Based on a careful analysis of the comparable sales, the subject property is estimated to have a value as follows: Price Paid/S.F. 10,308 S.F. x $25.00 per S.F. = $257,700 Price Paid/Room 76.5 rooms x $3,500 per room = $267,750 Price Paid/Unit 21 units x $13,000 per unit = $273,000 GIM $81,720 x 3.25 GIM = $265,590 Value Range $257,700 - $273,000 Most Probable Price S270,000 Q UINLIVAN APPRAISAL 17 ....,..,.,.».,-...,..,:....,........:...............:..........r.............: .`_.. ...pAj}iiT....it..................:}......v.:.:.::.:...C-:i.:t.....v..:.xi..r,.r:.s.:.. .i.:v.:fi.�...... ::..:.- :l .,..,.xrhx ........xx.../.... r5 5}Y..Afi..r.4...r ��;:.A...t. 4• :!W`..r.4.'tt.% r �.�V4i. f_ r'...i.vW rw.>.= .f%aa 'yyvyCb'c"... -.vmrc�xe',:v�tr a:;;.;::� :W ':rq.:.: 3^�a:Af..} � , ' ::' :56i :t.:r $�.. ,f\`/.*.1_? _`:.J DATE OF SALE 09/25/98 01/23/00 11/14/00 12/01/00 01/05/01 SALE PRICE 5175,000 $170,000 S98,500 S85,000 5320,000 ADDRESS 1520 N.W. 61 SL 1299 N.W. 60 St. 750 N.W. 56 St. 1575 N.W. 59 S. 1319 N.W. 60 St. 1601 N.W. 62 St. LAND SIZE (S.F.) 10,600 21,200 11,000 10,600 7,800 13,600 BUILDING SIZE (S.F.) 8,164 8,820 9,644 5,950 4,574 10,428 UNITS 18 12 18 11 8 28 BUILDING AGE 1957 1960 1966 1962 1958 1953 CONDITION Average Average Good Average Fair Average ZONING R-3 R-3 R-3 R-3 R-3 C-1 OVERALL RATE 13.7% 19.0% 17.0% 14.8% 15.5% GIM 3.35 1.98 2.59 2.83 2.93 PRICE/S.F.-OF BLI)G. $19.84 $17.63 516.55 $18.58 530.69 PRICE/ROOM $3,646 $2,538 $3,127 52,500 53,265 PRICE/UNIT $14,583 59,444 $8,955 _510,625 $11,429 RECONCILIATION AND VALJA CONCLUSION The reconciliation of the data and indicated value estimates is the final step in the appraisal process. Sufficient data has been assembled and analyzed for the purpose of judging the reactions of typical purchasers in the market place. In this report, the three accepted appraisal techniques were utilized. The value estimates indicated by these approaches resulted in the following: Cost Approach to Value Not Applicable Income Approach to Value $295,000 Sales Comparison Approach to Value $270,000 Cost Approach tQ Value The Cost Approach has the most applicability and will generally result in a truer estimate of value when the building improvements are new. Since the subject improvements have an actual age of 42 years, a large degree of judgement was required to estimate an effective age of improvements, hence the determination of depreciation is subject to error. Considering the above factors, the value indication from the Cost Approach was not developed for use in the final analysis. Income Approach to Value The data in this approach as to the quality, quantity and durability of the income was considered very good. The income and expenses were based on the actual income and expenses of the subject building and on comparable buildings. Net Income was capitalized by means of a direct capitalization method with an overall rate derived from market sales. Because this is an income producing property, this approach to value is given primary emphasis in the final analysis. QUINLIVAN APPRAISAL 18 $ales Comparison Approach to Value In reference to the Sales Comparison Approach, consideration has been given to sales that have taken place in the real estate market. These sales were analyzed and adjusted to the subject to reflect a market value estimate of the subject. The quality of the market sales in this approach to value was considered good. All of the sales are in the general location of the subject property and have similar income streams. Considering the quality of these sales, this approach to value was also given primary emphasis in the final analysis. Final Conclusion In the reconciliation process, the greatest weight should be given to the approach or approaches which produce the highest degree of confidence and which has been processed with a minimum of assumptions. Of equal importance is the reasonableness of the data and the reliability of the data. In consideration of the above, and for the reasons and conclusions contained herein, it is estimated that the Market Value of the subject property as of August 2, 2001 was: $285,000 QUINLIVAN APPRAISAL 19 ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. If no survey has been furnished to the appraiser, all measurements have been confirmed either in the field, in the plat book or by other reliable sources and are presumed to be accurate. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the Appraisal Report. 9. It is assumed, unless a study has been provided otherwise, that no hazardous material such as asbestos, urea formaldehyde or other toxic waste exists in the property. The existence of a potentially hazardous material could have a significant effect on the value of the property. QUINLIVAN APPRAISAL 20 10. In reference to proposed construction, the real estate taxes and other expenses are estimated. These amounts are not guaranteed. 11. It is assumed in the valuation of the subject land site, unless a compliance letter has been furnished to us, that the State of Florida Growth Management Act does not prevent the issuance of a building permit. 12. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 13. It is assumed that the utilization of the land and improvements is within the boundaries of property lines of the property described and that there is no encroachment or trespass unless noted in the report. This Appraisal Report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation of this report between land and improvements applies only under the stated program of utilization. The separate allocations for Iand and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety. 3. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance•in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. QUINLIVAN APPRAISAL 21 QUALIFICATIONS OF THE APPRAISER J. MARK QUINLIVAN Experience: Engaged in the field of real estate appraising since 1972. Associated with F. Robert Quinlivan, MAI, from 1972 to 1985. Currently President of Quinlivan Appraisal, P.A., a Real Estate Appraising and Consulting Firm, established in 1964. Graduate: University of Notre Dame BBA - Bachelor of Business Administration (Major in Finance and Business Economics) University of Maryland MBA - Master of Business Administration (Concentration in Finance) University of Miami Law School JD - Juris Doctor (Concentration in Real Estate and Taxation) Florida International University MSM - Master of Science in Management (Major in Real Estate) University of Miami MALS - Master of Arts in Liberal Studies (Humanities) Professionaljffiliationg: Member of the Appraisal Institute (MAI N° 5791) Member of the Florida Bar (N2 239992) Real Estate Broker, State of Florida (N° 0125264) Certified General Appraiser, State of Florida, License N9 RZ0000112 QUINLIVAN APPRAISAL 22 Qualified as an Expert Witness in the Following Courts: Miami -Dade, Broward, Palm Beach and Monroe County Circuit Courts United States Bankruptcy Court United States District Court Other Activities: Appraiser Special Master (1978 - 1980), Miami -Dade County Property Appraisal Adjustment Board Past President - Miami Chapter N° 71, Society of Real Estate Appraisers (1983 - 1984) Past President - South Florida Chapter N° 24, Appraisal Institute (1988) Past Governing Councilor of the American Institute of Real Estate Appraisers (1990) Young Advisory Council of Society of Real Estate Appraisers (1979 and 1980) Editorial Review Board (1981 - 1991) THE REAL ESTATE APPRAISER AND ANALYST published quarterly by the Society of Real Estate Appraisers Recent Publications: "Non -Conforming Use Properties: The Concept of Positive Economic Obsolescence", The Appraisal Journal, January 1981, Pages 45-51. (Arthur A. May Memorial Award 1982). QUINLIVAN APPRAISAL 23 Quinlivan Appraisal has prepared Appraisal Reports for the following: Institutions and Corporations: American Savings of Florida Archdiocese of Miami Atlantic Security Bank The Bank of Coral Gables Banco Atlantic° Banco Industrial de Venezuela Banco Santander International Barnett Bank Barry University Ben Franklin Savings Bessemer Trust Company Capital Bank Central Bank Chevron Oil Company Chase Manhattan Bank Chase Federal Bank Chemical Bank Citibank Citicorp Savings City National Bank of Miami Consolidated Bank Coral Gables Federal Savings and Loan Association County National Bank Crown Life Insurance Company Eagle National Bank East Little Havana Development Corporation Eastern National Bank Equibank of Pittsburgh Espirito Santo Bank First Nationwide Bank First Union Bank Florida Power and Light Company Hemisphere National Bank Intercontinental Bank International Bank of Miami, N.A. Jefferson Bank Jewish Home for the Aged, Inc. QUINLIVAN APPRAISAL 24 Marine Midland Bank McCaughan Mortgage Company, Inc. McDonalds Corp. Mega Bank Miami -Dade Water and Sewer Authority NationsBank Northern Trust Bank of Florida Ocean Bank Pacific National Bank Ready State Bank Resolution Trust Corporation Savings of America Shell Oil Company Skylake State Bank SunTrust Bank Swire Properties Texaco Terremark Totalbank Trade National Bank Trust for Public Lands UniBank Universal National Bank University of Miami Governmental Agencies: City of Coral Gables City of Hialeah City of Miami City of Miami Beach City of Miramar City of North Miami Beach Miami -Dade County Aviation Department Miami -Dade County Department of Development & Facilities Management Miami -Dade County HUD Miami -Dade County Property Appraisal Adjustment Board Miami -Dade County Public Schools Miami -Dade County Public Works Department Miami -Dade County Transportation Administration Federal Deposit Insurance Corporation (FDIC) QUINLIVAN APPRAISAL 25 Miami -Dade Water & Sewer Department South Florida Water Management District State of Florida, Department of Community Affairs State of Florida, Department of Corrections State of Florida, Department of Environmental Protection State of Florida, Department of Insurance State of Florida, Department of Rehabilitation and Liquidation State of Florida, Department of Transportation Town of Golden Beach United States Army Corps of Engineers United States Department of Commerce United States Department of the Interior United States General Services Administration Village of Key Biscayne Law Firms: Cole, Davidson, Carter, Smith, Salter & Barkett, P.A. Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. Dubbin, Berkman, Bloom & Karan Floyd, Pearson, Richman, Greer, Weil, Brumbaugh & Russomanno, P.A. Shutts & Bowen Kelley, Drye & Warren Blackwell & Walker Steel, Hector & Davis Mershon, Sawyer, Johnston, Dunwody & Cole Sullivan, Admire & Sullivan, P.A. Types of Properties Appraised: Single Family Residences Apartment Buildings Office Buildings Retail Stores Shopping Centers Condominium Apartment Buildings Golf Courses Residential Subdivisions Automobile Dealerships Vacant Land Hotel/Motels Warehouses Nursing Homes Mobile Home Parks Schools Service Stations Marinas Wetlands QUINLIVAN APPRAISAL 26 SELF-CONTAINED APPRAISAL REPORT OF REAL PROPERTY LOCATED AT mtFE 46 PROPERTY 2 - 1251 N.W. 59TH STREET PROPERTY 3 - 1275 N.W. 59TH STREET PROPERTY 4 - 1260 N.W. 59TH STREET PROPERTY 5 - 1254 N.W. 59TH STREET PROPERTY 6 - 1231 N.W. 61ST STREET PROPERTY 7 - 1202 N.W. 61ST STREET PROPERTY 8 - 1613 N.W. 54TH STREET PROPERTY 9 - 1241 N.W. 58TH TERRACE PROPERTY 10 - 1492 N.W. 62ND STREET PROPERTY 11 - 1625 N.W. 54TH STREET MIAMI, FLORIDA DATE OF VALUATION: JUNE 22, 2001 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 J.B. ALHALE 8L ASSOCIATES, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 3121 COMMODORE PLAZA, SUITE 200 COCONUT GROVE, FLORIDA 33133-5846 JOZEF ALHALE, MAI STATE CERTIFIED GENERAL APPRAISER NO. RZ0001557 July 17, 2001 Ms. Laura Billberry Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue Miami, Florida 33130 Re: Job No: A2122 RFQ No: 99-00-271 Property Property Property Property Property Property Property Property Property Property Property 1 (MHZ-40) - 2 (MHZ-190) 3 (MHZ-192) 4 (MHZ-199) 5 (MHZ-200) 6 (MHZ-45) - 7 (MHZ-58) - 8 (MHZ-749) 9 (MHZ-209) 10 (MHZ-9) - 11 (MHZ-750) TEL: (786) 552-0960 FAX: (786) 552-0970 • rMail: Jbalhale@aol.com 1250 N.W. 62nd Street, Miami, Florida 1251 N.W. 59th Street, Miami, Florida 1275 N.W. 59th Street, Miami, Florida 1260 N.W. 59th Street, Miami, Florida 1254 N.W. 59th Street, Miami, Florida 1231 N.W. 61st Street, Miami, Florida 1202 N.W. 61st Street, Miami, Florida 1613 N.W. 54th Street, Miami, Florida - 1241 N.W. 58th Terrace, Miami, Florida 1492 N.W. 62nd Street, Miami, Florida 1625 N.W. 54th Street, Miami, Florida Dear Ms. Billberry: Pursuant to your request for an appraisal of the above referenced properties, I submit this narrative appraisal report. Legal Description: Property 1 - Lots 13 through 16, less the northern ten feet for right-of-way, Block 2, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 2 - Lot 23, Block 6, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida I Ms. Laura Billberry July 17, 2001 Page Two Property 3 - Lot 26, Block 6, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 4 - Lot 5, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 5 - Lot 6, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 6 - Lots 31 and 32, Block 2, Orchard Villa Extension, as recorded in PIat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 7 - Lots 11 and 12, Block 3, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 8 - Lot 16, less the southern ten feet for street, Block 36, Floral Park First Amendment, as recorded in Plat Book 8, Page 5 of the Public Records of Miami -Dade County, Florida Property 9 - Lot 23, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 10 - Portion of Lots 1 and 2, Block 10, described as beginning at the southeast corner of Lot 2, northerly for 98.71 feet, westerly for 17.20 feet, southwesterly for 34.27 feet, southerly for 79.07 feet to the point of beginning, Orange Heights, as recorded in Plat Book 14, Page 62 of the Public Records of Miami -Dade County, Florida Property 11 - Lot 15, less the southern five feet for street, Block 36, Floral Park First Amendment, as recorded in Plat Book 8, Page 5 of the Public Records of Miami -Dade County, Florida I have made a physical inspection of the subject properties, reviewed the income and expense data, and performed market research to provide estimates of the Highest and Best Use, and the Market Value of the Fee Simple Interest in the subject properties in their current "as is" condition, as of June 22, 2001. It is my estimate 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: 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) J.B. ALHALE 8t ASSOCIATES, INC. REAL ESTATE APPRAISERS AND CONSULTANTS I Ms. Laura Billberry July 17, 2001 Page Three PROPERTY TWO - 1251 N.W. 59TH STREET (MHZ-190) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED TWENTY ONE THOUSAND DOLLARS ($121,000) PROPERTY THREE - 1275 N.W. 59TH-STREET (MHZ-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 (MHZ-199) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION ONE HUNDRED TWENTY ONE THOUSAND DOLLARS ($121,000) 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 IS" 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) J.B. ALHALE 8t ASSOCIATES, INC. REAL ESTATE APPRAISERS AND CONSULTANTS • Ms. Laura Billberry July 17, 2001 Page Four 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) Sincerely, Jozef Alhale, MAI State Certified General Appraiser License No. RZ 0001557 w1.os-09 J.B. ALHALE ST ASSOCIATES, INC. REAL ESTATE APPRAISERS AND CONSULTANTS • •titer TABLE OF CONTENTS RECONCILIATION AND FINAL VALUE ESTIMATE 102-10 10 CONTINGENT AND LIMITING CONDITIONS -104 CERTIFICATION 105-106 ADDENDA 107 LETTER OF ENGAGEMENT 108 ZONING ORDINANCE 109 CONTINUING APPRAISAL EDUCATION (Jozef Alhale, MAI)110-111 QUALIFICATIONS (Jozef Alhale, MAI) 112 113 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 1-8 PHOTOGRAPHS OF SUBJECT PROPERTY 9-19 PURPOSE/FUNCTION OF THE APPRAISAL 20 SCOPE OF THE APPRAISAL 20 PROPERTY RIGHTS APPRAISED 20 DATE OF VALUATION 20 STATEMENT OF OWNERSHIP AND HISTORY 21 ESTIMATED MARKETING PERIOD 21 DEFINITION OF MARKET VALUE 22-23 NEIGHBORHOOD ANALYSIS 23 DESCRIPTION OF THE SITES 23 UTILITIES FLOOD ZONE 23 ZONING 24 ASSESSMENT AND REAL ESTATE TAXES 24-226 MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW THE VALUATION PROCESS 27-32 THE INCOME CAPITALIZATION APPROACH 33 THE SALES COMPARISON APPROACH 34-84 THE SALES COMPARISON APPROACH (LAND VALUATION) 85-99 THE COST APPRnarH J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Location: Address: Property 1 - Property 2 - Property 3 - Property 4 - Property 5 - Property 6 - Property 7 - Property 8 - Property 9 - Property 10 - Property 11 - • Property 1 - 223 feet west of the southwest corner of N.W. 62nd Street and N.W. 12th Avenue, Miami, Florida Property 2 - 250 feet east of the northeast corner N.W. 59th Street and N.W. 13th Avenue, Miami, Florida Property 3 - 100 feet east of the northeast corner of N.W. 59th Street and N.W. 13th Avenue, Miami, Florida Property 4 - 200 feet east of the southeast corner of N.W. 59t1i Street and N.W. 13th Avenue, Miami, Florida Property 5 - 250 feet east of the southeast comer of N.W. 59th Street and N.W. 13th Avenue, Miami, Florida Property 6 - 223 feet west of the northwest corner of N.W. 61st Street and N.W. 12th Avenue, Miami, Florida Property 7 - Southwest comer of N.W. 61st Street and N.W. 12th Avenue, Miami, Florida Property 8 - 140 feet east of the northeast corner of N.W. 54th Street and N.W. 17th Avenue, Miami, Florida Property 9 - 250 feet east of the northeast corner of N.W. 58th Terrace and N.W. 13th Avenue, Miami, Florida Property 10 - 11.3 feet south of the southeast corner of N.W. 62nd Street and N.W. 15th Avenue, Miami, Florida Property 11 - 90 feet east of the northeast corner of N.W. 54th Street and N.W. 17th Avenue, Miami, Florida 1250 N.W. 62nd Street, Miami, Florida 1251 N.W. 59th Street, Miami, Florida 1275 N.W. 59th Street, Miami, Florida 1260 N.W. 59th Street,. Miami, Florida 1254 N.W. 59th Street, Miami, Florida 1231 N.W. 61st Street, Miami, Florida 1202 N.W. 61st Street, Miami, Florida 1613 N.W. 54th Street, Miami, Florida 1241 N.W. 58th Terrace, Miami, Florida 1492 N.W. 62nd Street, Miami, Florida 1625 N.W. 54th Street, Miami, Florida J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued -- Property Code: Property 1 - MHZ-40 Property 2 - MHZ-190 Property 3 - MHZ-192 Property 4 - MHZ-199 Property 5 - MHZ-200 Property 6 - MHZ-45 Property 7 - MHZ-58 Property 8 - MHZ-749 Property 9 - MHZ-209 Property 10 - MHZ-9 Property 11 - MHZ-750 Folio No: Property 1 - 01-3114-043-0290 Property 2 - 01-3114-043-1120 Property 3 - 01-3114-043-1140 Property 4 - 01-3114-043-1210 Property 5 - 01-3114-043-1220 Property 6 - 01-3114-043-0291 Property 7 - 01-3114-043-0530 Property 8 - 01-3122-052-6570 Property 9 - 01-3114-043-1310 Property 10 - 01-3114-035-1690 Property 11 - 01-3122-052-6560 Owner of Record: Property 1 - Property 2 - Property 3 - Property 4 - Model City Investment Corporation 13899 Biscayne Boulevard Suite 310 Miami, Florida 33181 John H. Jr. and Gwendolyn Johnson 1251 N.W. 59th Street Miami, Florida 33142 John H. Jr. and Gwendolyn Johnson 1701 N.W. 187th Street Opa Locka, Florida 33056 John H. Jr. and Gwendolyn Johnson 1260 N.W. 59th Street Miami, Florida 33142 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 Legal Description: SUMMARY OF SALIENT FACTS AND CONCLUSIONS Owner of Record (Continued): Property 5 - John H. Jr. and Gwendolyn Johnson 1254 N.W. 59th Street Miami, Florida 33142 Property 6 - Model City Investment Corporation 13899 Biscayne Boulevard Suite 310 Miami, Florida 33181 Kimberly S. Termer 1202 N.W. 61st Street Miami, Florida 33142 Mack Barkley, Jr. 15770 N.W. 17th Court Miami, Florida 33054-2102 Word of Life Community Development Corporation 4646 N.W. 17th Avenue Miami, Florida 33142 Greenland Realtors, Inc. 6970 N.W. 17th Avenue Miami, Florida 33147 Mack Barkley, Jr. 15770 N.W. 17th Court Miami, Florida 33054-2102 Property 1 - Lots 13 through 16, less the northern ten feet for right-of-way, Block 2, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 2 - Lot 23, Block 6, recorded in Plat Book 17, Page Miami -Dade County, Florida Property 3 - Lot 26, Block 6, recorded in Plat Book 17, Page Miami -Dade County, Florida Property 7 - Property 8 - Property 9 - Property 10 - Property 11 - -- Continued — Orchard Villa Extension, as 55 of the Public Records of Orchard Villa Extension, as 55 of the Public Records of J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -1- SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued -- Legal Description (Continued): Property 4 - Lot 5, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of ' Miami -Dade County, Florida Property 5 - Lot 6, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 6 - Lots 31 and 32, Block 2, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 7 - Lots 11 and 12, Block 3, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 8 - Lot 16, less the southern ten feet for street, Block 36, Floral Park First Amendment, as recorded in Plat Book 8, Page 5 of the Public Records of Miami -Dade County, Florida Property 9 - Lot 23, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Property 10 - Portion of Lots 1 and 2, Block 10, described as beginning at the southeast corner of Lot 2, northerly for 98.71 feet, westerly for 17.20 feet, southwesterly for 34.27 feet, southerly for 79.07 feet to the point of beginning, Orange Heights, as recorded in Plat Book 14, Page 62 of the Public Records of Miami -Dade County, Florida Property 11 - Lot 15, less the southern five feet for street, Block 36, Floral Park First Amendment, as recorded in Plat Book 8, Page 5 of the Public Records of Miami -Dade County, Florida Site Area: Property 1 - Property 2 - Property 3 - Property 4 - Property 5 - Property 6 - Property 7 - 11,200 SF 5,300 SF 5,300 SF 5,300 SF 5,300 SF 10,600 SF 6,888 SF J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 4 - Description: SUMMARY OF SALIENT FACTS AND CONCLUSIONS Site Area (Continued): Property 8 - 6,000 SF Property 9 - 5,300 SF Property 10 - 4,950 SF Property 11 - 6,000 SF Property One consists of a U-shaped three-story 27-unit CBS apartment building which was built in 1958, and contains an adjusted building area of 11,186 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 12,033 SF and the unit mix is comprised of twenty-four one bedroom -one bathroom and three two bedroom -one bathroom units. The unit features include window/wall-mounted A/C units; security entrance and on -site parking for ten cars. The property appears to have undergone a moderate renovation program at a reported cost of $125,000, after its purchase in January 2000 with Property Six. The property appears to be adequately maintained, with no signs of notable deferred maintenance. Property Two consists of a rectangular -shaped two-story 4-unit CBS apartment building which was built in 1965, and contains an adjusted building area of 2,779 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 2,890 SF and the unit mix is comprised of four two bedroom -one bathroom units. The unit features include window/wall-mounted A/C units and on - site parking for four cars. The property appears to be adequately maintained, with no signs of notable deferred maintenance. 400. -- Continued -- Property Three consists of a rectangular -shaped two-story 4- unit CBS apartment building which was built in 1965, and contains an adjusted building area of 2,762 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 2,890 SF and the unit mix is comprised of four two bedroom -one bathroom units. The unit features include window/wall-mounted A/C units and on - site parking for four cars. The property appears to be adequately maintained, with no signs of notable deferred maintenance. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 r Coconut Grove, Florida 33133 .61 SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued — Description (Continued): Property Four consists of a rectangular -shaped two-story 4-unit CBS apartment building which was built in 1965, and contains an adjusted building area of 2,762 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 2,890 SF and the unit mix is comprised of four two bedroom -one bathroom units, The unit features include window/wall-mounted A/C units and fenced on -site parking for four cars. The property appears to be adequately maintained, with no signs of notable deferred maintenance. Property Five consists of a rectangular -shaped two-story 4-unit CBS apartment building which was built in 1964, and contains an adjusted building area of 2,853 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 2,890 SF and the unit mix is comprised of four two bedroom -one bathroom units. The unit features include window/wall-mounted A/C units and fenced on -site parking for four cars. The property appears to be adequately maintained, with no signs of notable deferred maintenance. Property Six consists of a U-shaped three-story 24-unit CBS apartment building which was built in 1959, and contains an adjusted building area of 10,308 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 9,543 SF and the unit mix is comprised of twenty-one one bedroom -one bathroom and three two bedroom -one bathroom units. The unit features include window/wall-mounted A/C units; security entrance and on -site parking for ten cars. The property appears to have undergone a moderate renovation program at a reported cost of $125,000, after its purchase in January 2000 with Property One. The property appears to be adequately maintained, with no signs of notable deferred maintenance. Property Seven consists of a rectangular -shaped two-story 4- unit CBS apartment building which was built in 1979, and contains an adjusted building area of 3,232 SF, as per the Public Records of Miami -Dade County, Florida. The building contains a Gross Building Area of 3,300 SF and the unit mix is comprised of four two bedroom -one bathroom units. The unit features include window/wall-mounted A/C units and fenced on -site parking for four cars. The property appears to be adequately maintained, with no signs of notable deferred maintenance. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued -- Description (Continued): Property Eight consists of two detached two-story residential dwellings which were built in 1927, and contains an adjusted building area of 3,107 SF, as,r the Public Records of Miami - Dade County, Florida. The property is utilized as a rooming house, and contains a total Gross Building Area of 3,388 SF and the unit mix is comprised of nine rooms with two common bathrooms in the southern (front) building and seven rooms with four bathrooms at the northern (rear) building. The property appears to be adequately maintained, with no signs of notable deferred maintenance. Property Nine consists of a rectangular site with 5,300 SF, as per the Public Records of Miami -Dade County, Florida. The site has 50 feet of frontage along the north side of N.W. 58th Terrace and a depth of 106 feet. The site is level at street grade, with no vegetation. Property Ten consists of a rectangular one-story CBS building which contains a Gross Building Area of ± 435 SF. The features include a wall -mounted A/C unit (not installed; currently boarded -up); vinyl tile floors; plaster ceilings; painted concrete walls; and a restroom. The building is currently vacant. Flood Zone: Zoning: Property Eleven consists of a rectangular site with 6,000 SF, as per the Public Records of Miami -Dade County, Florida. The site has 50 feet of frontage along the north side of N.W. 54th Street and a depth of 120 feet. The fenced site is level at street grade, with no vegetation. Flood Zone "X" - Areas determined to be outside 500-year flood plain; National Flood Insurance Program, Community Panel Number 12025C-0180J, as revised March 2, 1994. R-3 Multi -Family Medium Density Residential District for Properties 1, 2, 3, 4, 5, 6, 7 and 9 C-1 City of Miami - Restricted Commercial District for Properties 8 and 11 SD-1 City of Miami - Martin Luther King Boulevard Commercial District for Property 10 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 7 - SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued -- Highest and Best Use: Property Rights Appraised: Date of Appraisal, Inspection and Valuation: The Highest and Best Use of the subject sites, as vacant, would be for their assemblage with adjacent sites, for the development of multi -family apartment buildings, under an affordable housing program, within the constraints of the applicable zoning criteria. The Highest and Best Use of the subject residential properties, as improved, would be for their continued use as multi -family apartment buildings, since the market value as improved is higher than the market value of the site, as if vacant. Fee Simple Interest June 22, 2001 MARKET VALUE ESTIMATES IN "AS IS" CONDITION: Property 1 Property 2 Property 3 Property 4 Property 5 Property 6 Property 7 Property 8 Property 9 Property 10 Property 11 Income Approach $400,600 $122,500 $122,500 $121,600 $122,400 $360,400 $103,300 $144,100 n/a n/a n/a Sales Comparison Approach $360,000 $120,000 $120,000 $120,000 $120,000 $325,000 $120,000 $144,500 $9,500 $14, 000 $10,300 Reconciled Value $380,000 $121,000 $121,000 $121,000 $121,000 $340,000 $110,000 $144,250 $9,500 $14,000 $10,300 J.S. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 _8- View of Property 1 (MHZ-- View of Property 1 Mil 3121 I'Ditim, N.W. ', 2001 N • tLE Apprai,, ite View of Property 2 (MHZ- 9ft 1251 N 59Th June 22, 2001 • View of Property 2 (M 2001 3121 l'otIT . , I View of Property 3 (MHZ-192; 12.75 .‘,fW 59ftI Sir. \iinn View of Property A H L92 J.Q. ALBA. Real Estate t=:T..=:. 3f2i •Triliotinre Pla7a. 22, 2001 •2001 View of Property 4 (MHZ-.199. 1260 59th Street, Miami) - June 22, 2001 rld 4'orvoiltar.r• View of Property 5 (MHZ-200; 1254 N. W, 59th Street. Miami) - June 22, 2001 200; 1F F .c• ii 1`,'E_". I\I. !2• ,, r;t I, r 44441 c `oncicltauuk I View of Property 6 (MHZ-4 _-' y.' . 61st Street. Miami) June 22, 2001 View of Property 6 (MI17 312 ( :PI t„ 1 .. Miami) - June ai%ers and oli5ultants ';a1 • r ' ,. , f ,rove. Florida 3313 View of Property 7 (MHZ-58; 1202 N.W. 6lst Street, Miami) - June 22, 2001 View of Property 7 (MHZ-58: 1202 N.W. 61st Streei. - June ALHALE & ASSOCIATES INC. Real Estate Appraisers and Consultants 31-21 Commodore Plaza. Suite 200 • Coconut Grove. Florida 3313 1 5 View of Property 8 (MHZ_749; 1613 N.W View of Property .., r i '-49 : r, ; . °: 1.11. A1.1-1_.LF !teal Estate Appr. «,,{•r Miami) ' ri.e 22, 2001 .'_: 2001 View of Property 8 (MHZ-749; 161 View of Property \III/ 74Q• 1 Ai._ Real ,.untriodore ih Stre7. Miami) - June 22, 2001 \lianii.) June 22, 2001 6%. 1-1.44A4 33133 View of Property 9 (MHZ-209; 1241 N.W. 58th Terrace, Miami) - June 22, 2001 View of Property 10 .(MHZ-9; 1492 N.W. 62nd Street, Miami) - June L2, 2001 J.8, ALHALE & ASSOCIATES, LrC. Real Estate Appraisers and Consultants 3121 Commodore Plaza. Suite 200 • Coconut Grove, Florida 33133 P ;4 View of Property 10 (MHZ-9; 1492 N.W. 62nd Street, Miami) - June 22, 2001 View of Property 1 i i MHL- ;cif: 1625 ;N. \ 54th Street, Miami) - June 22, 2O01 J•1;• ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconui Grove, Florida 33133 1� - PURPOSE/FUNCTION OF THE APPRAISAL The purpose of this appraisal report is to provide estimates of the Highest and Best Use, and the Market Value of the Fee Simple Interest in the subject properties in their current "as is" condition, as of June 22, 2001. The function of this appraisal report is to assist the client (City of Miami) in executive decision making and potential purchase of the subject properties. .. SCOPE OF THE APPRAISAL, I have made a physical inspection of the subject properties, reviewed the income and expense data, and performed market research to provide estimates of the Highest and Best Use, and the Market Value of the Fee Simple Interest in the subject properties in their current "as is" condition, as of June 22, 2001. 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. Properties 1, 2, 3, 4, 5, 6, 7 and 8 were built between 1927 and 1979, and reflect legal non -conforming structures and therefore, the Cost Approach to Value was not applicable and has not been utilized. The data and information used in developing our findings, projections and valuation estimates have been derived from published information, direct interviews, analysis s of similar properties and other sources which were considered appropriate, as of the date of this report. PROPERTY RIGHTS APPRAISED This appraisal report assumes marketable and insurable fee simple title. The appraisal is made with the understanding that the present ownership of the property includes all the rights that may be lawfully held under a fee simple estate. Fee simple is defined in T e Dictionaryof Real Es to A raisal 1984 Edition, which was sponsored by the American Institute of Real Estate Appraisers as follows: Absolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain, escheat, police power and taxation. DATE OF VALUATION June 22, 2001. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 _ �n STATEMENT OF OWNERSHIP AND HISTORY Refer to the summary of ownership. Properties One and Six were purchased for $435,000 on June 30, 2000 from Turnberry Bank out of foreclosure, as recorded in Book 19186, Page 3538 of the Official Public Records of Miami -Dade County, Florida. Property One has been listed for sale at $449,000, while Property Six has beenU,s,ted for sale at $379,000. Property Two was purchased for $115,000 on December 8, 2000 from Heavenly Properties, Inc., as recorded in Book 19405, Page 197 of the Official Public Records of Miami -Dade County, Florida. Property Three was purchased for $115,000 on November 2, 2000 from Heavenly Properties, Inc., as recorded in Book 19354, Page 4606 of the Official Public Records of Miami -Dade County, Florida. Property Four was purchased for $115,000 on November 1, 2000 from Heavenly Properties, Inc., as recorded in Book 19354, Page 4581 of the Official Public Records of Miami -Dade County, Florida. Property Five was purchased for $115,000 on December 8, 2000 from Heavenly Properties, Inc., as recorded in Book 19413, Page 2248 of the Official Public Records of Miami -Dade County, Florida. Property Seven was purchased for $90,000 on October 16, 1996 from John E. Jackson, Jr., as recorded in Book 17400, Page 130 of the Official Public Records of Miami -Dade County, Florida. Property Nine was purchased for $5,800 on January 23, 2001 from Clinton Marabel through a quit -claim deed, as recorded in Book 19602, Page 1446 of the Official Public Records of Miami -Dade County, Florida. Property Ten was purchased (with other properties) for $90,000 on December 19, 1996 from Mohammed Hamdeh, as recorded in Book 17478, Page 2663 of the Official Public Records of Miami -Dade County,_ Florida. There was no arm's-length transfer of ownership at the remaining subject properties within the last five years, as per the Public Records of Miami -Dade County, Florida. ESTIMATED MARKETING PERIOD Based on my analysis of the market, it is my opinion that if the individual subject properties were listed for sale with an experienced Realtor, the marketing period would be approximately six months to one year. This marketing period is considered to represent the most probable amount of time necessary to expose and actively market the subject properties to achieve a sale consistent with the Market Value. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33I33 DEFINITION OF MARKET VALUE Market Value is defined in Te Appraisal of Real Fs ts, Tenth Edition, by the Appraisal Institute as follows: PP teal The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest and assuming that neither is under undue duress Fundamental assumptions and conditions presumed in this definition are: Buyer and seller are motivated by self-interest. 2. Buyer and seller are well informed and are acting prudently. 3. The property is exposed for a reasonable time on the open market. 4. Payment is made in cash, its equivalent, or in specified financing terms. 5. Specified financing, if any, may be the financing actually in place or on terms generally available for the property type in its locale on the effective appraisal date. 1. • 6. The effect, if any, on the amount of Market Value of atypical financing, services, or fees shall be clearly and precisely revealed in the appraisal report. Market Value is defined as per current Federal regulatory agency criteria as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and acting in what they consider their own best interests; c. a reasonable time is allowed for exposure in the open market; J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 22 - DEFINITION OF MARKET VALUE — Continued -- d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the pwperty sold unaffected by special or creative financing or sales concessitins granted by anyone associated with the sale. NEIGHBORHOOD ANALYSIS The subject properties are located between N.W. 12th Avenue and N.W. 17th Avenue, and between N.W. 54th Street and N.W. 62nd Street, in the City of Miami. The major roadways serving the area include Interstate 95, N.W. 17th Avenue, N.W. 12th Avenue, N.W. 54th Street and N.W. 62nd Street. The subject neighborhood is a compatible mixture of duplexes, four-piexes, rental apartments and vacant lots, as well as service establishments situated along, N.W. 54th Street, N.W. 17th Avenue and N.W. 62nd Street. The condition of properties in the subject neighborhood are very poor (vacant and vandalized buildings) to average. DESCRIPTION OF THE SITES Refer to the Summary of Salient Facts, for size. The subject sites are level at street grade, and do not have any apparent drainage or other problems which would restrict or limit the use of the sites. No soil boring tests or engineering reports were submitted to the appraiser; however, the sites are assumed to have stable subsoil conditions as do most properties in the immediate area. We have not been informed of an adverse subsoil condition revealed by an environmental assessment conducted by a firm with experience in identifying such substances, nor are we qualified to detect such substances that may exist. For valuation purposes, we have assumed that the subject sites would be typical for properties located in the subject area with no apparent soil problems which would restrict or limit the usage of the sites. If any adverse subsoil conditions are identified and do exist, these conditions would have a material affect on the Market Value of the subject properties. Our analysis assumes the property to be free of any adverse subsoil conditions, and is subject to the satisfactory removal of any existing contaminating materials in accordance with technical, environmental and governmental guidelines. UTILITIES The public utilities available to the subject sites include electricity, water, sewer, and telephone service. Police and fire protection services are provided by the City of Miami. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 23 - FLOOD ZONE Flood Zone "X" - Areas determined to be outside 500-year flood plain; National Hood Insurance Program, Community Panel Number 12025C-0180.I, as revised March 2, 1994.` ZONING Properties 1, 2, 3, 4, 5, 6, 7 and 9 are located within the jurisdiction of the City of Miami and classified as R-3 Multi -Family Medium Density Residential District. The intent of this zoning classification is to allow for a variety of multi -family uses including low to mid -rise apartment structures with a maximum density of 65 units/acre and a maximum floor area ratio of .75. Uses permitted within the R-3 District include, but are not limited to, two-family buildings, multi -family buildings, hotels/motels (limited areas), adult -care facilities, churches, and child-care facilities. The following are some of the requirements for the R-3 zoning: Minimum lot size: Minimum Lot Width: Maximum Density: Floor Area Ratio: Building Footprint: Green Space: Maximum Height Limitation: Setback: Off-street Parking: 5,000 SF 50 feet 65 units/acre .75 times the gross lot area .40 times the gross lot area .15 times the gross lot area 50 feet from the flood level or average sidewalk elevation, whichever is higher Front - 20 feet Side - 10 feet Rear - 10 feet, except when abutting R-1 and R-2 districts, in which case it will be 20 feet One parking space/300 SF of office area; one parking space per efficiency and 1-BR units and two spaces per 2-BR units. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 24 - ZONING -- Continued -- Properties 8 and 11 are located within the C-1 Restricted Commercial District, while Property 10 is located within the SD-1 Martin Luther King Boulevard Commercial District (refer to the Addenda, for the zoning ordinance. The specifications in the SD-1 District are same as the C-1 District). The C-1 District allows structures used as any type of residential facility except for rescue missions, to a maximum density equivalent to R-4, subject to the same limiting conditions; any activity included in the office designation, commercial marinas and living quarters on vessels with specific limitations, and mixed -use or commercial activities which generally serve the daily retailing and service needs of the public, typically requiring easy access by pedestrians and private automobiles. This category is located preferably in areas directly served by arterial or collector roadways, or directly accessible via mass transportation system. Minimum lot size: 5,000 SF Minimum Lot Width: 50 feet Floor Area Ratio: Building Footprint: Green Space: Maximum Height Limit: Setback: Off-street Parking: 1.72 times the gross lot area .40 times the gross lot area .10 times the gross lot area Unlimited; however, the maximum height of a building at the base line is equal to the sum of the right -of --way, plus the two front setbacks on either side of the right-of-way, or 120 feet, whichever is greater. Front - 10 feet Side - No setback required, or the same as the abutting district, whichever is greater Rear - 10 feet, or the same as the abutting district, whichever is greater. One parking space per 300 SF of office area; • one parking space per 50 SF of gross building area for meeting halls and places of general assembly; one parking space per 100 SF of gross building area for restaurants, private clubs, lodges and banquet halls; one parking space per 250 SF of gross building area for discount membership merchandisers; one parking space per 300 SF of gross building area for all other non-residential uses. One parking space per efficiency and 1-BR units and two spaces per 2-BR units. The subject properties are legal non -conforming uses (lack of up -to -code off-street parking) which are compatible with the subject neighborhood. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 ASSESSMENT AND REAL ESTATE TAXES The subject properties are located within the City of Miami and are subject to both the City of Miami and Miami -Dade County ad valorem taxes on real and personal property. Property.4,is assessed at $165,315, with resultant real estate taxes of $8,576.99. Property 2 is assessed at $61,784, with resultant real estate taxes of $2,291.89. Property 3 is assessed at $61,876, with resultant real estate taxes of $2,294.41. Property 4 is assessed at $65,078, with resultant real estate taxes of $2,382.10. Property 5 is assessed at $62,193, with resultant real estate taxes of $2,303.10. Property 6 is assessed at $154,628, with resultant real estate taxes of $7,384.32. Property 7 is assessed at $110,838, with resultant real estate taxes of $3,335.18. Property 8 is assessed at $50,049, with resultant real estate taxes of $2,914.53. The real estate taxes are reported to be delinquent. Property 9 is assessed at $5,867, with resultant real estate taxes of $160.66. The real estate taxes are reported to be delinquent. Property 10 is assessed at $5,976, with resultant real estate taxes of $163.66. Property 11 is assessed at $8,025, with resultant real estate taxes of $219.74. The real estate taxes are reported to be delinquent. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 1 Coconut Grove, Florida 33133 -'76- MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW Rental Apartment Market According to the Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., the vacancy rate in mature (18 months and older) rental apartment complexes in Dade County was 2.2% in February 2001; 2.1 % in November 2000; 1.8% in August 2000; 2.49% in May 2000; 1.9 % in February 2000; 2.8% in November 1999; 3.0% in August 1999; 4.1 % in May 1999; 4.3 % in February 1999; 4.7 % in November 1998; 4.9% in August 1998; 5.2% in May 1998; 5.5% in February 1998; 5.5% in November 1997; and 2.8 % in August 1997. At the end of December 2000, there were 57 new never before occupied rental units available throughout Dade County. This is notably less than the 164 units available in September 2000. This inventory represents only .2 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,004 new apartment units in Dade County, the inventory could total 2,002 units without being excessive. At the end of September 2000, there were 164 new never before occupied rental units available throughout Dade County. This is notably less than the 310 units available in June 2000. This inventory represents only .7 month of supply at the rate of absorption of new units over the past six months. At the end of June 2000, there were 310 new never before occupied rental units available throughout Dade County. This is somewhat more than the 120 units available in March 2000. This inventory represents only 2.5 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,004 new apartment units in Dade County, the inventory represents less than one month of supply. At the end of March 2000, there were 231 new never before occupied rental units available throughout Dade County. This is somewhat more than the 120 units available in December 1999. This inventory represents only 2.8 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,004 new apartment units in Dade County, the inventory represents less than one month of supply. According to the first quarter 2001 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the fourth quarter of 2000, a total of 694 new rental apartment units were absorbed in Dade County. This is 2.8 times the 246 units absorbed in the preceding quarter. During 2000, a total of 2,404 new apartment units were absorbed, 2.1 times the 1,139 units absorbed during 1999. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) According to the fourth quarter 2000 Housing Report prepared by Reinhold P. Wolff w Economic Research, Inc., during the third quarter of 2000, a total of 980 new rental apartment units were absorbed in Dade County. This is almost the twice as the 485 units absorbed in the preceding quarter, and is 3.5 times greater than the 281 units absorbed in the third quarter of 1999. Through September 2000, a total of 1,710 new apartment units were absorbed, 91.5 % more than the 893 units absorbed during the same period in 1999. According to the third quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the second quarter of 2000, a total of 485 new rental apartment units were absorbed in Dade County. This is almost the twice as the 245 units absorbed in the preceding quarter, and is 55.9% greater than the 311 units absorbed in the second quarter of 1999. Through June 2000, a total of 730 new apartment units were absorbed, 19.3% more than the 612 units absorbed during the same period in 1999. According to the second quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the first quarter of 2000, a total of 245 new rental apartment units were absorbed in Dade County. This is almost the same as the 246 units absorbed in the preceding quarter, and is 18.6% less than the 301 units absorbed in the first quarter of 1999. During 1999, a total of 1,139 new apartment units were absorbed, 19.6% less than the 1,416 units absorbed in 1998. According to the first quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the fourth quarter of 1999, a total of 246 new rental apartment units were absorbed in Dade County. This is 12.5 % less than the 281 units absorbed in the preceding quarter, and is 43.1 % less than the 432 units absorbed in the fourth quarter of 1998. A total of 587 new apartment units were completed in Dade County during the fourth quarter of 2000, while 1,053 new units were under construction. New apartment starts in 2000 were 3,878 units, 3.3 times the 1,183 units started during 1999. New unit completions totaled 2,341 units in 2000, 2.8 times the number of units completed in 1999. A total of 834 new apartment units were completed in Dade County during the third quarter of 2000, while 1.242 new units were under construction. New apartment starts through September 2000 were 2,825 units, 4.7 times the 595 units started during the same period in 1999. New unit completions totaled 1,754 units through September 2000, 3.3 times the number of units completed in the same period in 1999. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 2R - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) A total of 564 new apartment units were completed in Dade County during the second quarter of 2000, while 525 new uni„were under construction. New apartment starts through June 2000 were 1,583 units', 9.5 times the 166 units started in the first half of 1999. New unit completions totaled 920 units through June 2000, 2.8 times the number of units completed in the same period in 1999. A total of 356 new apartment units were completed in Dade County during the first quarter of 2000, while 1,058 new units were under construction. New apartment starts during 1999 were 1,183 units, 52.9% less than started in 1998. New unit completions totaled 834 units in 1999, down 43.7% from the 1,481 units completed in 1998. For the six month period ending with December 2000, an average of 279 new rental units were absorbed each month. A total of 57 new units were available at the end of December 2000, and this represented .2 month of supply at the pace of absorption over the past six months. During the six month period, an average of 237 units were being completed each month, while 383 units were started each month. For the six month period ending with September 2000, an average of 244 new rental units were absorbed each month. A total of 164 new units were available at the end of September 2000, and this represented .7 month of supply at the pace of absorption over the past six months. During the six month period, an average of 233 units were being completed each month, while 295 units were started each month. For the six month period ending with June 2000, an average of 122 new rental units were absorbed each month. A total of 310 new units were available at the end of June 2000, and this represented 2.5 months of supply at the pace of absorption over the past six months. At the estimated annual demand level for apartments in Dade County, the inventory represents less than one month of supply. During the six month period, an average of 153 units were being completed each month, while 264 units were started each month. For the six month period ending with March 2000, an average of 82 new rental units were absorbed each month. A total of 231 new units were available at the end of March 2000, and this represented 2.8 months of supply at the pace of absorption over the past six months. At the estimated annual demand level for apartments in Dade County, the inventory represents less than one month of supply. During the six month period, an average of 110 units were being completed each month, while 274 units were started each month. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 29 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) For the six month period ending with December 1999, an average of 88 new rental units were absorbed each month. A total of 120 new units were available at th. end of December 1999, and this represented 1.4 months of supply at the pace of absorption over the past six months. At the estimated annual demand level for apartments in Dade County, the inventory represents .4 month of supply. During the six month period, an average of 84 units were being completed each month, while 170 units were started each month. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $19.00 to $895 from November 2000 to February 2001. The February 2001 overall average rent is 8.7% higher than the $823 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 8.8 %. During the most recent three month period, one -bedroom rents increased by $22 to $783, two -bedroom rents increased by $19 to $991 and three -bedroom rents increased by $16 to $1,220. Efficiency unit rents increased by $10 to $657. Changes in projects participating in the surveys from one period to another can result in considerable fluctuations for efficiency and three -bedroom units where the supply is more limited. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $12.00 to $876 from August 2000 to November 2000. The November 2000 overall average rent is 8.8% higher than the $805 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 5.6%. During the most recent three month period, one -bedroom rents increased by $2 to $761, two -bedroom rents increased by $24 to $972 and three -bedroom rents increased by $3 to $1,208. Efficiency unit rents increased by $16 to $647. Changes in projects participating in the surveys from one period to another can result in considerable fluctuations for efficiency and three -bedroom units where the supply is more limited. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $22.00 to $864 from May 2000 to August 2000. The August 2000 overall average rent is 8.7% higher than the $795 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 10.4%. During the most' recent three month period, one -bedroom rents increased by $23 to $759, -two- bedroom rents increased by $21 to $948 and three -bedroom rents increased by $27 to $1,205. Efficiency unit rents increased by $25 to $631. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $19.00 to $842 from February 2000 to May 2000. The May 2000 overall average rent is 7.4% higher than the $787 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 9.2%. During the most recent three month period, one -bedroom rents increased by $17 to $736, two -bedroom rents increased by $20 to $927 and three -bedroom rents increased by $32 to $1,174. Efficiency unit rents increased by $19 to $606. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 a Coconut Grove, Florida 33133 MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) The overall average monthly rent for apartments in mature rental developments in Dade County increased by $18.00 to $823 from November 1999 to February 2000. The February 2000 overall average rent is 7.4% higher than the $766 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 8.8%. During the most recent three month period, one -bedroom rents increased by $18 to $719, two -bedroom rents increased by $17 to $907 and three -bedroom rents increased by $18 to $1,142. Efficiency unit rents increased by $28 to $587. Condominium Apartment Markel According to the 1st Quarter 2001 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 883 new condominium units were sold in Dade County during the 4th Quarter of 2000. The 4th quarter sales were 8.9% greater than the 811 units sold in the 3rd Quarter of 2000. New condominium sales during 2000 have totalled 3,079 units, up 8.1 % from the 2,848 units sold during 1999. According to the 4th Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 811 new condominium units were sold in Dade County during the 3rd Quarter of 2000. The 3rd quarter sales were 28.3% greater than the 632 units sold in the 2nd Quarter of 2000. New condominium sales through September 2000 have totalled 2,196 units, down 3.5% from the 2,276 units sold during the same period in 1999. According to the 3rd Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 632 new condominium units were sold in Dade County during the 2nd Quarter of 2000. The 2nd quarter sales were 16.1 % less than the 753 units sold in the lst Quarter of 2000. New condominium sales through June 2000 have totalled 1,385 units, down 5.7 % from the 1,468 units sold during the first half 1999. According to the 2nd Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 753 new condominium units were sold in Dade County during the 1st Quarter of-2000. The 1st quarter sales were 31.6% greater than the 572 units sold in the 4th Quarter of 1999. New condominium sales during 1999 have totalled 2,848 units, down 17.7% from the 3,459 units sold during 1998. According to the lst Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 572 new condominium units were sold in Dade County during the 4th Quarter of 1999. The 4th quarter sales were 29.2% less than the 808 units sold in the 3rd Quarter of 1999. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 31 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Condominium Apartment Market - Continued According to the 4th Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 808 new,r.ondominium units were sold in Dade County during die 3rd Quarter of 1999. The 3rd quarter sales were 3.3% less than the 836 units sold in the 2nd Quarter of 1999. New condominium sales during the first nine months of 1999 have totalled 2,276 units, down 17.5 % from the 2,578 units sold during the same period in 1998. According to the 3rd Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 808 new condominium units were sold in Dade County during the 3rd Quarter of 1999. The 3rd quarter sales were 3.3% less than the 836 units sold in the 2nd Quarter of 1999. New condominium sales through September 1999 have totalled 2,276 units, down 17.5 % from the 2,758 units sold during the same period in 1998. According to the 2nd Quarter 1999 Dade County Housing Market Report prepared by. Reinhold P. Wolff Economic Research, Inc., a total of 632 new condominium units were sold in Dade County during the 1st Quarter of 1999. The 1st quarter sales were 9.8% less than the 701 units sold in the 4th Quarter of 1998. New condominium sales during 1998 have totalled 3,459 units, down 11.4% from the 3,906 units sold during 1997. According to the 1st Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 701 new condominium units were sold in Dade County during the 4th Quarter of 1998. The 4th Quarter sales were 35.8% less than the 1,092 units sold in the 3rd Quarter of 1998. According to the 4th Quarter 1998 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 1,092 new condominium units were sold in Dade County during the 3rd Quarter of 1998. The 3rd Quarter sales were 27.1 % more than the 859 units sold in the 2nd Quarter of 1998. New condominium sales through September 1998 have totalled 2,758 units, down 3.2% from the 2,850 units sold during the same period in 1997. According to the 3rd Quarter 1998 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 859 new condominium units were sold in Dade County during the 2nd Quarter of 1998. The 2nd Quarter sales were 6.4% more than the 807 units sold in the lst Quarter of 1998. New condominium sales through June 1998 have totalled 1,666 units, down 19.9% from the 2,080 units sold during the same period in 1997. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 32 - • THE VALUATION PROCESS The valuation process is defined in the 1993 Edition of the Dictionary of Real Estate Appraisal which was sponsored by the Appraisal Institute as follows: A systematic procedure employed to provide the answer to a client's question about the value of real property. 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. The Sales Comparison Approach to Value is based on a comparison between recently sold similar properties in the subject neighborhood and the subject properties. These comparable sales are then adjusted for the differences between them and the subject properties, utilizing the Potential Gross Income Multiplier and price/SF (for the smaller 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 value 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 Marshall & Swift Valuation Services. From the total Replacement Cost New, an estimate of physical depreciation, functional obsolescence and external obsolescence, if applicable, is deducted. The resultant figure represents the depreciated cost of the improvements, plus 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 Sales Comparison Approaches do. Informed and rational investors of income producing properties typically pay a sales price based on net income flow. The total cost of land and improvements to create a new building and/or renovate or rehabilitate an existing building does not necessarily equal value, as the amount of contribution of the existing improvements is measured in terms of their utility in the market, as well as its benefit/ return to an investor (net income flow). Properties 1, 2, 3, 4, 5, 6, 7 and 8 were built between 1927 and 1979, and reflect legal non -conforming structures and therefore, the Cost Approach to Value was not applicable and has not been utilized. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 THE INCOME CAPITALIZATION APPROACH TO VALUE The Income Capitalization Approach to Value is based upon the principle of anticipatiot with value reflected as the present worth of the right to future benefits. The future benefits which accrue to ownership consist of an annual income stream and reversionary capacity of the real estate. The Income Capitalization Approach to Value is defined in The Dictionary of Real Estate Appraisal, Third Edition (Chicago: Appraisal Institute, 1993) as follows: A set of procedures through which an appraiser derives a value indication for an income - producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment and change in the value of the investment. Alternately, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate. The process of income capitalization requires the following analysis: 1. An estimate of potential gross income based upon market (economic rents). 2. An estimate and deduction reflecting vacancy and collection losses resulting in an estimate of effective gross income. 3. An estimate and deduction of the operating and fixed expenses as well as a reserve for replacements in order to arrive at the net operating income (net income before recapture or debt service.) 4. An estimate of the duration of the projected income stream. 5. The development and selection of an appropriate capitalization rate and technique. 6. Application of the derived capitalization rate to the estimate of net income in order to provide an indication of value. ANALYSIS OF MARKET RENTAL RATES The terms market rent and economic rent are traditionally synonymous in appraisal practice. Market rent is defined in The Dictionary of Real Estate Appraisal, Third Edition (Chicago: Appraisal Institute, 1993) as follows: The rental income that a property would most probably command on the open market; indicated by current rents paid and asked for comparable space as of the date of the appraisal. An analysis of comparable rental apartment buildings was performed to provide market rental rates and vacancy levels. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 34 -