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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 - 33 - 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 - 34 - 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 - 39 - 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 -