HomeMy WebLinkAboutexhibit 2- appraisal report 1SELF-CONTAINED APPRAISAL REPORT
OF RENTAL APARTMENT BUILDINGS
LOCATED AT
PROPERTY 1 - 6091 N.W. 15TH AVENUE
PROPERTY 2 - 1400 N.W. 61ST STREET
PROPERTY 3 - 1425 N.W. 60TH STREET
PROPERTY 4 - 1435 N.W. 60TH STREET
PROPERTY 5 - 1520 N.W. 61ST STREET
PROPERTY 6 - 1519 N.W. 60TH STREET
PROPERTY 7 - 1341 N.W. 61ST STREET
PROPERTY 8 - 1371 N.W. 61ST STREET
PROPERTY 9 - 1250 N.W. 60TH STREET
PROPERTY 10 - 1600 N.W. 59TH STREET
PROPERTY 11 - 1256 N.W. 58TH TERRACE & 1255 N.W. 58TH STREET
PROPERTY 12 - 1238 N.W. 58TH TERRACE
MIAMI, FLORIDA
DATE OF VALUATION:
APRIL 23, 2001
J.S. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
J.B. ALHALE 8[ 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
May 23, 2001
Ms. Laura Billberry
Director
Office of Asset Management
City of Miami
444 S.W. 2nd Avenue
Miami, Florida 33130
Re: Job No: A2120
RFQ No: 99-00-271
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
1 (MHZ-82) -
2 (MHZ-92) -
3 (MHZ-95) -
4 (MHZ-96) -
5 (MHZ-106) -
6 (MHZ-109) -
7 (MHZ-34) -
8 (MHZ-36) -
9 (MHZ-178) -
10 (MHZ-269)
11 (MHZ-357)
Property 12 (MHZ-358) -
Dear Ms. Billberry:
Pursuant to your request for an
narrative appraisal report.
Legal Description:
Property 1 - Lots 1 and 2, Block 9, Orange Heights, as recorded in Plat Book 14, Page
62 of the Public Records of Miami -Dade County, Florida
Property 2 - Lot 13, Block 9, Orange Heights, as recorded in Plat Book 14, Page 62 of
the Public Records of Miami -Dade County, Florida
TEL:` (786) 552-0960
FAX: (786) 552-0970
E-Mail: Ibalhale@aol.com
6091 N.W. 15th Avenue, Miami, Florida
1400 N.W. 61st Street, Miami, Florida
1425 N.W. 60th Street, Miami, Florida
1435 N.W. 60th Street, Miami, Florida
1520 N.W. 61st Street, Miami, Florida
1519 N.W. 60th Street, Miami, Florida
1341 N.W: 61st Street, Miami, Florida
1371 N.W. 61st Street, Miami, Florida
1250 N.W. 60th Street, Miami, Florida
1600 N.W. 59th Street, Miami, Florida
1256 N.W. 58th Terrace and
1255 N.W. 58th Street, Miami, Florida
1238 N.W. 58th Terrace, Miami, Florida
appraisal of the above referenced properties, 1 submit this
Ms. Laura Billberry
May 23, 2001
Page Two
Property 3 Lots 16 to 18, Block 9, Orange Heights, as recorded in Plat Book 14, Page
62 of the Public Records of Miami -Dade County, Florida
Property 4 - Lots 19 and 20, Block 9, Orange Heights, as recorded in Plat Book 14, Page
62 of the Public Records of Miami -Dade County, Florida
Property 5 - Lots 21 and 22, Block 12, Orange Heights, as recorded in Plat Book 14, Page
62 of the Public Records of Miami -Dade County, Florida
Property 6 - Lot 16, Block 12, Orange Heights, as recorded in Plat Book 14, Page 62 of
the Public Records of Miami -Dade County, Florida
Property 7 - Lot 32, Block 1, Orchard Villa Extension, as recorded in Plat Book 17, Page
55 of the Public Records of Miami -Dade County, Florida
Property 8 - Lot 37, Block 1, Orchard Villa Extension, as recorded in Plat Book 17, Page
55 of the Public Records of Miami -Dade County, Florida
Property 9 - Lot 6, Block 6, Orchard Villa Extension, as recorded in Plat Book 17, Page
55 of the Public Records of Miami -Dade County, Florida
Property 10 - Lot 25, Block 14, Orange Heights, as recorded in Plat Book 14, Page 62
of the Public Records of Miami -Dade County, Florida
Property 11 - Lots 5, 6, 23 and 24, Block 10, Orchard Villa Extension, as recorded in Plat
Book 17, Page 55 of the Public Records of Miami -Dade County, Florida
Property 12 - Lots 7 and 8, Block 10, Orchard Villa Extension, as recorded in Plat Book
17, Page 55 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 April 23, 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 April 23, 2001, was:
PROPERTY ONE - 6091 N.W. 15TH AVENUE (MHZ-82)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
TWO HUNDRED FIVE THOUSAND DOLLARS
($205,000)
n
J.B. ALHALE sT ASSOCIATES, INC.
REAL ESTATE APPRAISERS AND CONSULTANTS
' Ms. Laura Billberry
May 23, 2001
Page Three
PROPERTY TWO - 1400 N.W. 61ST STREET (MHZ-92)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
NINETY SEVEN FIVE HUNDRED THOUSAND DOLLARS
($97,500)
PROPERTY THREE - 1425 N.W. 60TH STREET (MHZ-95)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
TWO HUNDRED SEVENTY THOUSAND DOLLARS
($270,000)
PROPERTY FOUR - 1435 N.W. 60TH STREET (MHZ-96)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS
($175,000)
PROPERTY FIVE - 1520 N.W. 61ST STREET (MHZ-106)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
TWO HUNDRED EIGHTY FIVE THOUSAND DOLLARS
($285,000)
PROPERTY SIX - 1519 N.W. 60TH STREET (MHZ-109)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
EIGHTY ONE THOUSAND DOLLARS
($81,000)
PROPERTY SEVEN - 1341 N.W. 61ST STREET (MHZ-34)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
EIGHTY FIVE THOUSAND DOLLARS
($85,000)
PROPERTY EIGHT - 1371 N.W. 61ST STREET (MHZ-36)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
EIGHTY THOUSAND DOLLARS
($80,000)
PROPERTY NINE - 1250 N.W. 60TH STREET (MHZ-178)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
EIGHTY THOUSAND DOLLARS
($80,000)
PROPERTY TEN - 1600 N.W. 59TH STREET (MHZ-269)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
EIGHTY FIVE THOUSAND DOLLARS
($85,000)
J.B. ALHALE at ASSOCIATES, INC.
REAL ESTATE APPRAISERS AND CONSULTANTS
Ms. Laura Bilberry
May 23, 2001
Page Four
PROPERTY ELEVEN - 1256 N.W. 58TH TERRACE AND 1
1255 N.W. 58th STREET: (MHZ-357)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
FOUR HUNDRED FIFTY THOUSAND DOLLARS
($450,000)
PROPERTY TWELVE - 1238 N.W. 58TH TERRACE (MHZ-358)
MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION
ONE HUNDRED FORTY TWO THOUSAND FIVE HUNDRED DOLLARS
($142,500)
Jozef Alhale, MAI
State Certified General Appraiser
License No. RZ 0001557
101-03-12.apt
J.B. ALHALE 8 ASSOCIATES, INC.
REAL ESTATE APPRAISERS AND CONSULTANTS
TABLE OF CONTENTS
PAGE NO.
SUMMARY OF .SALIENT FACTS AND CONCLUSIONS 1-9
PHOTOGRAPHS OF SUBJECT PROPERTY 10-31
PURPOSE/FUNCTION OF THE APPRAISAL 32
SCOPE OF THE APPRAISAL 32
PROPERTY RIGHTS APPRAISED 32
DATE OF VALUATION 32
STATEMENT OF OWNERSHIP AND HISTORY 33
ESTIMATED MARKETING PERIOD 33
DEFINITION OF MARKET VALUE— 33-34
NEIGHBORHOOD ANALYSIS 34
DESCRIPTION OF THE SITES 34-35
UTILITIES 35
FLOOD ZONE 35
ZONING ... ... 35-36
ASSESSMENT AND REAL ESTATE TAXES 36
MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW 37-42
THE VALUATION PROCESS 43
THE INCOME CAPITALIZATION APPROACH 44-69
THE SALES COMPARISON APPROACH 70-89
RECONCILIATION AND FINAL VALUE ESTIMATE 90-92
CONTINGENT AND LIMITING CONDITIONS 93-94
CERTIFICATION 95
ADDENDA 96
LETTER OF ENGAGEMENT 97
CONTINUING APPRAISAL EDUCATION (Jozef Alhale, MAI) 98
QUALIFICATIONS (Jozef Alhale, MAI) 99
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: Property 1 - Southeast corner of N.W. 61st Street and N.W. 15th Avenue,
Miami, Florida
Property 2 - Southwest corner of N.W. 61st Street and N.W. 14th Avenue,
Miami, Florida
Property 3 - 108 feet west of the northwest corner of N.W. 60th Street and
N.W. 14th Avenue, Miami, Florida
Property 4 - 300 feet east of the northeast corner of N.W. 60th Street and
N.W. 15th Avenue, Miami, Florida
Property 5 - 100 feet west of the southwest corner of N.W. 61st Street and
N.W. 15th Avenue, Miami, Florida
Property 6 - 100 feet west of the northwest corner of N.W. 60th Street and
N.W. 15th Avenue, Miami, Florida
Property 7 - 350 feet east of the northeast corner of N.W. blst Street and
N.W. 14th Avenue, Miami, Florida
Property 8 - 100 feet east of the northeast corner of N.W. 61st Street and
N.W. 14th Avenue, Miami, Florida
Property 9 - 250 feet east of the southeast corner of N.W. both Street and
N.W. 13th Avenue, Miami, Florida
Property 10 - 300 feet west of the southwest corner of N.W. 59th Street and
N.W. 15th Avenue, Miami, Florida
Property 11 - 200 feet east of the southeast corner of N.W. 58th Terrace and
N.W. 13th Avenue, Miami, Florida
Property 12 - 223 feet west of the southwest corner of N.W. 58th Terrace
and N.W. l2th Avenue, Miami, Florida
Address: Property 1 - 6091 N.W. 15th Avenue, Miami, Florida
Property 2 - 1400 N.W. 61st Street, Miami, Florida
Property 3 - 1425 N.W. 60th Street, Miami, Florida
Property 4 - 1435 N.W. 60th Street, Miami, Florida
Property 5 - 1520 N.W. 61st Street, Miami, Florida
Property 6 - 1519 N.W. 60th Street, Miami, Florida
Property 7 - 1341 N.W. 61st Street, Miami, Florida
Property 8 - 1371 N.W. 61st Street, Miami, Florida
Property 9 - 1250 N.W. 60th Street, Miami, Florida
Property 10 - 1600 N.W. 59th Street, Miami, Florida
Property 11 - 1256 N.W. 58th Terrace and
1255 N.W. 58th Street, Miami, Florida
Property 12 - 1238 N.W. 58th Terrace, 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-82
Property 2 - MHZ-92
Property 3 - MHZ-95
Property 4 - MHZ-96
Property 5 - MHZ-106
Property 6 - MHZ-109
Property 7 - MHZ-34
Property 8 - MHZ-36:
Property 9 - MHZ-178
Property 10 - MHZ-269
Property 11 - MHZ-357
Property 12 - MHZ-358
Folio No: Property 1 - 01-3114-035-1450
Property 2 - 01-3114-035-1550
Property 3 - 01-3114-035-1580
Property 4 - 01-3114-035-1610
Property 5 - 01-3114-035-2250
Property 6 - 01-3114-035-2220
Property 7 - 01-3114-043-0190
Property 8 - 01-3114-043-0240
Property 9 - 01-3114-043-0980
Property 10 - 01-3114-035-2730
Property 11 - 01-3114-043-1800
Property 12 - 01-3114-043-1810
Owner of
Record: Property 1 - ZBG, Inc.
1497 N.W. 7th Street
Miami, Florida 33125-3640
Property 2 - Coley and Inell Williams
1742 N.W. 49th Street
Miami, Florida 33142-4072
Property 3 - Neal A. Smith
3198 N.W. 169th Terrace
Miami, Florida 33056-4322
Property 4 - Coley and Inell Williams
1742 N.W. 49th Street
Miami, Florida 33142-4072
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
-2-
SUMMARY" OF SALIENT FACTS AND CONCLUSIONS -- Continued --
Owner of
Record
(Continued): Property 5 - By Properties, Inc.
P.O. Box 630576
Miami, Florida 33163
Property 6 - Coley and Inell Williams
1742 N.W. 49th Street
Miami, Florida 33142-4072
Property 7 - Coley and Inell Williams
1742 N.W, 49th Street
Miami, Florida 33142-4072
Property 8 - Joseph and Barbara Wiggins
20230 N.W. 9th Drive
Pembroke Pines, Florida 33029
Property 9 - 59th Street Corporation
1497 N.W. 7th Street
Miami, Florida 33125-3640
Property 10 - G.M. Schweitzer and S. Zimbleman
1497 N.W. 7th Street
Miami, Florida 33125-3640
Property 11 - Orchard Villas Apartments, Inc.
2840 S.W. 3rd Avenue
Miami, Florida 33129-2317
Property 12 - Jerry H. Evans and Scott R. Evans
845 North Oak Court
Chandler, Arizona 85226
Legal
Description: Property 1 - Lots 1 and 2, Block 9, Orange Heights, as recorded in
Plat Book 14, Page 62 of the Public Records of Miami -Dade County,
Florida
Property 2 - Lot 13, Block 9, Orange Heights, as recorded in Plat
Book 14, Page 62 of the Public Records of Miami -Dade County,
Florida
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 3 -
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
-- Continued --
Legal
Description
(Continued): Property 3 - Lots 16 to 18, Block 9, Orange Heights, as recorded in
Plat Book 14, Page 62 of the Public Records of Miami -Dade County,
Florida
Property 4 - Lots 19 and 20, Block 9, Orange Heights, as recorded in
Plat Book 14, Page 62 of the Public Records of Miami -Dade County,
Florida
Property 5 - Lots 21 and 22, Block 12, Orange Heights, as recorded
in Plat Book 14, Page 62 of the Public Records of Miami -Dade
County, Florida
Property 6 - Lot 16, Block 12, Orange Heights, as recorded in Plat
Book 14, Page 62 of the Public Records of Miami -Dade County,
Florida
Property 7 - Lot 32, Block 1, Orchard Villa Extension, as recorded
in Plat Book 17, Page 55 of the Public Records of Miami -Dade
County, Florida
Property 8 - Lot 37, Block 1, Orchard Villa Extension, as recorded
in Plat Book 17, Page 55 of the Public Records of Miami -Dade
County, Florida
Property 9 - Lot 6, Block 6, Orchard Villa Extension, as recorded in
Plat Book 17, Page 55 of the Public Records of Miami -Dade County,
Florida
Property 10 - Lot 25, Block 14, Orange Heights, as recorded in Plat
Book 14, Page 62 of the Public Records of Miami -Dade County,
Florida
Property 11 - Lots 5, 6, 23 and 24, Block 10, Orchard Villa
Extension, as recorded in Plat Book 17, Page 55 of the Public Records
of Miami -Dade County, Florida
Property 12 - Lots 7 and 8, Block 10, Orchard Villa Extension, as
recorded in Plat Book 17, Page 55 of the Public Records of Miami -
Dade County, Florida
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
-4-
SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued --
Site Area:
Property 1 - 10,600 SF
Property 2 - 6,119 SF
Property 3 - 15,900 SF
Property 4 - 10,600 SF
Property 5 - 10,600 SF
Property 6 - 5,300 SF
Property 7 - 5,300 SF
Property 8 - 5,300 SF
Property 9 - 5,300 SF
Property 10 - 5,300 SF
Property 11 - 21,200 SF
Property 12 - 10,600 SF
Improvements: Property One consists of a U-shaped two-story 15-unit CBS apartment
building which was built in 1957, and contains an adjusted building
area of 7,414 SF, as per the Public Records of Miami -Dade County,
Florida. The building contains a Gross Building Area of 7,800 SF
and the unit mix is comprised of eight one bedroom -one bathroom, six
two bedroom -one bathroom and one three bedroom -two bathroom
units. The unit features include window/wall-mounted A/C units;
security entrance and on -site parking. The property appears to be
adequately maintained, with no signs of notable deferred maintenance.
Property Two consists of a U-shaped two-story 6-unit CBS apartment
building which was built in 1959, and contains an adjusted building
area of 3,357 SF, as per the Public Records of Miami -Dade County,
Florida. The building contains a Gross Building Area of 3,632 SF
and the unit mix is comprised of four two bedroom -one bathroom and
two three bedroom -two bathroom units. The unit features include
window/wall-mounted A/C units and on -site parking. The property
appears to be adequately maintained, with no signs of notable deferred
maintenance.
Property Three consists of a U-shaped two-story 22-unit CBS
apartment building which was built in 1958, and contains an adjusted
building area of 9,484 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
9,550 SF and the unit mix is comprised of twenty-two one bedroom -
one bathroom units. The unit features include window/wall-mounted
A/C units and on -site parking. There are reportedly four vacant units;
and there were signs of water leak from the second floor to the first
floor apartment (Apartment No. 5) at the time of inspection.
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 5 -
SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued --
improvements
(Continued): Property Four consists of an L-shaped two-story 12-unit CBS
apartment building which was built in 1958, and contains an adjusted
building area of 5,546 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
5,700 SF and the unit mix is comprised of ten one bedroom -one
bathroom and two two bedroom -one bathroom units. The unit features
include window/wall-mounted A/C units and on -site parking. The
property appears to be adequately maintained, with no signs of notable
deferred maintenance.
Property Five consists of an L-shaped three-story 18-unit CBS
apartment building which was built in 1957, and contains an adjusted
building area of 8,164 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
8,829 SF and the unit mix is comprised of twelve one bedroom -one
bathroom and six two bedroom -one bathroom units. The unit features
include window/wall-mounted A/C units; security entrance and on -site
parking. Pursuant to its purchase in March 1999, the property has
reportedly undergone a rehabilitation program at a cost of $20,000.
The property appears to be adequately maintained, with no signs of
notable deferred maintenance.
Property Six consists of a rectangular two-story 4-unit CBS apartment
building which was built in 1961, and contains an adjusted building
area of 2,573 SF, as per the Public Records of Miami -Dade County,
Florida. The building contains a Gross Building Area of 2,675 SF
and the unit mix is comprised of three one bedroom -one bathroom and
one three bedroom -two bathroom units. The unit features include
window/wall-mounted A/C units and on -site parking. The property
appears to be adequately maintained, with no signs of notable deferred
maintenance.
Property Seven consists of a rectangular two-story 6-unit CBS
apartment building which was built in 1957, and contains an adjusted
building area of 3,409 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
3,500 SF and the unit mix is comprised of six two bedroom -one
bathroom units. The unit features include window/wall-mounted A/C
units and on -site parking. There are two vacant units°which require
renovation before they can be rented. The owners are not planning to
renovate, if the building is being purchased.
3.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
-6-
SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued --
Improvements
(Continued): Property Eight consists :.of a rectangular two-story 6-unit CBS
apartment building which was built in 1958, and contains an adjusted
building area of 2,604 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
2,700 SF and the unit mix is comprised of six two bedroom -one
bathroom units. The unit features include window/wall-mounted A/C
units and on -site parking. The property appears to be adequately
maintained, with no signs of notable deferred maintenance.
Property Nine consists of a rectangular two-story 6-unit CBS
apartment building which was built in 1958, and contains an adjusted
building area of 2,819 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
2,675 SF and the unit mix is comprised of six one bedroom -one
bathroom units. The unit features include window/wall-mounted A/C
units and on -site parking. The property appears to be adequately
maintained, with no signs of notable deferred maintenance.
Property Ten consists of a rectangular two-story 4-unit CBS apartment
building which was built in 1967, and contains an adjusted building
area of 2,431 SF, as per the Public Records of Miami -Dade County,
Florida. The building contains a Gross Building Area of 2,600 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. The property appears to be adequately maintained,
with no signs of notable deferred maintenance.
Property Eleven consists of two L-shaped three-story 18-unit CBS
apartment buildings which were built in 1959, and contain a total
adjusted building area of 15,896 SF, as per the Public Records of
Miami -Dade County, Florida. The 36-unit building contain a total
Gross Building Area of 18,390 SF and the unit mix is comprised of
two efficiency, twenty-one one bedroom -one bathroom and thirteen
two bedroom -one bathroom units. The unit features include
windowlwall-mounted A/C units and on -site parking. The property
appears to be adequately maintained, with no signs of notable deferred
maintenance, There was one vacant unit which needed to be prepared
for tenancy at the time of inspection.
J.S. 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 —
Improvements
(Continued): Property Twelve consists of a U-shaped two-story 12-unit CBS
apartment building which was built in 1964, and contains an adjusted
building area of 5,954 SF, as per the Public Records of Miami -Dade
County, Florida. The building contains a Gross Building Area of
6,290 SF and the unit mix is comprised of twelve one bedroom -one
bathroom units. The unit features include window/wall-mounted A/C
units and on -site parking. The property appears to be adequately
maintained, with no signs of notable deferred maintenance.
Flood Zone:
Zoning:
Existing Use:
Highest and
Best Use:
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
Rental apartment buildings
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 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.
Property Rights
Appraised: Fee Simple Interest
Date of Appraisal,
Inspection and
Valuation: April 23, 2001
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
-8-
SUMMARY OF SALIENT FACTS AND CONCLUSIONS -- Continued --
MARKET VALUE ESTIMATES IN "AS IS" CONDITION:
Income Sales Comparison Reconciled
Approach Approach Value
Property 1 $211,000 $200,000 $205,000
Property 2 $94,200 $100,000 $97,500
Property 3 $288,500 $250,000 $270,000
Property 4 $189,000 $165,000 $175,000
Property 5 $332,750 $240,000 $285,000
Property 6 $84,000 $77,500 $81,000
Property 7 $80,400 $90,000 $85,000
Property 8 $84,200 $75,000 $80,000
Property 9 $81,700 $75,000 $80,000
Property 10 $94,300 $74,000 $85,000
Property 11 $429,100 $475,000 $450,000
Property 12 $144,250 $140,000 $142,500
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 9 -
E�a�v
41,44
View of Prt p rty 8 (MHZ-36; 1371 N.W. 61st Street, Miami) - April 23, 2O01
View of Property 8 (MHZ-36; 1371 N.W. 61st Street, Miami) - April 23, 2001
J.R. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 22 -
View of Property 8 (MHZ-36; 13 N.W. 61st Street, Miami) - April 23, 2001
View of Property 8 (MHZ-36; 137 N.W. 61st Street, Miami) - April 23, 2001
J.B. Ai,i 111.E & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaz.i, !;Lute 200 • Coconut Grove, Florida 33133
- 23 -
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 April 23, 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 April 23, 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. The subject
properties were built between 1957 and 1967, and reflect legal non -conforming
structures. The Cost Approach to Value was not applicable in the valuation of the
subject properties, and have not been utilized in this report.
The data and information used in developing our findings, projections and valuation
estimates have been derived from published information, direct interviews, analysis 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 The
Dictionary of Real Estate Appraisal 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.
The subject properties are rented on a month -to -month basis.
DATE OF VALUATION
April 23, 2001.
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 32 -
•
STATEMENT OF OWNERSHIP AND HISTORY
Refer to the summary of ownership. Property Three was purchased for $145,000 on
September 1, 1996 from Leonzie and Flonnie Mae Jones, as recorded in Book 17355,
Page 4571 of the Official Public Records of Miami -Dade County, Florida. Property Five
was purchased for $195,000 on March 2, 1999 from 4190 N.W. 32nd Avenue Properties
Trust, Inc., as recorded in Book 18516, Page 4881 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. Property Twelve is listed for sale at $296,000 with an
adjacent 12-unit apartment building located at 1245 N.W. 58th Street.
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.
DEFINITION OF MARKET VALUE
Market Value is defined in The Appraisal of Real Estate, Tenth Edition, by the Appraisal
Institute as follows:
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:
1. 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.
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
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DEFINITION OF MARKET VALUE
-- Continued --
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;
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 property sold unaffected
by special or creative financing or sales concessions granted by anyone
associated with the sale.
NEIGHBORHOOD ANALYSIS
The subject properties are located between N.W. 12th Avenue and N.W. 16th Avenue,
and between N.W. 58th Street and N.W. 61st Street, in the City of Miami. The major
roadways serving the area include Interstate 95, N.W. 17th Avenue and N.W. 62nd
Street. The subject neighborhood is a compatible mixture of duplexes, rental apartments
and vacant lots, as well as service establishments situated along 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.
.I.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
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DESCRIPTION OF THE SITES
-- Continued --
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.
FLOOD ZONE
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.
ZONING
The subject properties 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: 5,000 SF
Minimum Lot Width: 50 feet
Maximum Density: 65 units/acre
Floor Area Ratio: .75 times the gross lot area
Building Footprint: .40 times the gross lot area
Green Space: .15 times the gross lot area
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 35 -
ZONING -- Continued --
Maximum Height
Limitation: 50 feet from the flood level or average -sidewalk
elevation, whichever is higher
Setback:
Off-street Parking:
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,
The subject properties are legal non -conforming uses (lack of up -to -code off-street
parking) which are compatible with the subject neighborhood.
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 1 is assessed at $101,319, with resultant real estate taxes of $3,974.52.
Property 2 is assessed at $87,610, with resultant real estate taxes of $2,999.10.
Property 3 is assessed at $144,243, with resultant real estate taxes of $5,599.94.
Property 4 is assessed at $63,882, with resultant real estate taxes of $2,649.35.
Property 5 is assessed at $186,840, with resultant real estate taxes of $6,466.43. The
real estate taxes for 1999 are reported to be delinquent.
Property 6 is assessed at $64,936, with resultant real estate taxes of $2,078.21.
Property 7 is assessed at $39,779, with resultant real estate taxes of $1,539.32.
Property 8 is assessed at $79,221, with resultant real estate taxes of $2,619.38.
Property 9 is assessed at $84,467, with resultant real estate taxes of $2,763.05.
0.
Property 10 is assessed at $81,2237, with resultant real estate taxes of $2,524.58.
Property 11 is assessed at $252,925, with resultant real estate taxes of $8,276.10.
Property 12 is assessed at $82,890, with resultant real estate taxes of $3,197.25.
J.B. ALHALE & ASSOCIATES, INC.
Real Estate Appraisers and Consultants
3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133
- 36 -
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
- 37 -
MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued .--
Rental Apartment Market (Continued)
According to the fourth quarter 2000 Housing Report prepared by Reinhold P. Wolff
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
- 38 -
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 units 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
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MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW
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 the. 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.
-- Continued --
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 • Coconut Grove, Florida 33133
- 40 -