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HomeMy WebLinkAboutexhibit 2- appraisal report 2MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) The overall average monthly rent for apartments in mature rental developments in Dade County increased by $18.00 to $823 from November 1999 to February 2000. The February 2000 overall average rent is 7.4% higher than the $766 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 8.8%. During the most recent three month period, one -bedroom rents increased by $18 to $719, two -bedroom rents increased by $17 to $907 and three -bedroom rents increased by $18 to $1,142. Efficiency unit rents increased by $28 to $587. Condominium Apartment Market According to the 1st Quarter 2001 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 883 new condominium units were sold in Dade County during the 4th Quarter of 2000. The 4th quarter sales were 8.9% greater than the 811 units sold in the 3rd Quarter of 2000. New condominium sales during 2000 have totalled 3,079 units, up 8.1 % from the 2,848 units sold during 1999. According to the 4th Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 811 new condominium units were sold in Dade County during the 3rd Quarter of 2000. The 3rd quarter sales were 28.3 % greater than the 632 units sold in the 2nd Quarter of 2000. New condominium sales through September 2000 have totalled 2,196 units, down 3.5 % from the 2,276 units sold during the same period in 1999. According to the 3rd Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 632 new condominium units were sold in Dade County during the 2nd Quarter of 2000. The 2nd quarter sales were 16.1 % less than the 753 units sold in the 1st Quarter of 2000. New condominium sales through June 2000 have totalled 1,385 units, down 5.7% from the 1,468 units sold during the first half 1999. According to the 2nd Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 753 new condominium units were sold in Dade County during the 1st Quarter of 2000. The 1st quarter sales were 31.6% greater than the 572 units sold in the 4th Quarter of 1999. New condominium sales during 1999 have totalled 2,848 units, down 17.7% from the 3,459 units sold during 1998. According to the 1st Quarter 2000 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 572 new condominium units were sold in Dade County during the 4th Quarter of 1999. The 4th quarter sales were 29.2% less than the 808 units sold in the 3rd Quarter of 1999. .I.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 41 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Condominium Apartment Market - Continued According to the 4th Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 808 new condominium units were sold in Dade County during the 3rd Quarter of 1999. The 3rd quarter sales were 3.3% less than the 836 units sold in the 2nd Quarter of 1999. New condominium sales during the first nine months of 1999 have totalled 2,276 units, down 17.5% from the 2,578 units sold during the same period in 1998. According to the 3rd Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 808 new condominium units were sold in Dade County during the 3rd Quarter of 1999. The 3rd quarter sales were 3.3% less than the 836 units sold in the 2nd Quarter of 1999. New condominium sales through September 1999 have totalled 2,276 units, down 17.5 % from the 2,758 units sold during the same period in 1998. According to the 2nd Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 632 new condominium units were sold in Dade County during the lst Quarter of 1999. The 1st quarter sales were 9.8% less than the 701 units sold in the 4th Quarter of 1998. New condominium sales during 1998 have totalled 3,459 units, down 11.4% from the 3,906 units sold during 1997. According to the 1st Quarter 1999 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 701 new condominium units were sold in Dade County during the 4th Quarter of 1998. The 4th Quarter sales were 35.8% less than the 1,092 units sold in the 3rd Quarter of 1998. According to the 4th Quarter 1998 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 1,092 new condominium units were sold in Dade County during the 3rd Quarter of 1998. The 3rd Quarter sales were 27.1 % more than the 859 units sold in the 2nd Quarter of 1998. New condominium sales through September 1998 have totalled 2,758 units, down 3.2% from the 2,850 units sold during the same period in 1997. According to the 3rd Quarter 1998 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 859 new condominium units were sold in Dade County during the 2nd Quarter of 1998. The 2nd Quarter sales were 6.4% more than the 807 units sold in the lst Quarter of 1998. New condominium sales through June 1998 have totalled 1,666 units, down 19.9% from the 2,080 units sold during the same period in 1997. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 42 - THE VALUATION PROCESS The valuation process is defined in the 1993 Edition of the Dictionary of Real Estate Appraisal which was sponsored by the Appraisal Institute as follows: A systematic procedure employed to provide the answer to a client's question about the value of real property. In order to estimate the Market Value of the Fee Simple Interest in the subject properties in their current "as is" condition, as of April 23, 2001, the Income Capitalization and Sales Comparison Approaches to Value has been utilized. The Income Approach to Value is typically based upon the projected income and expense characteristics used within a Discounted Cash Flow model or direct capitalization method. The analysis of the subject properties in a continued rental apartment use is based on the income and expense characteristics applicable to the subject buildings. Income producing properties are generally purchased on the basis of their anticipated net income. The Direct Capitalization Method converts an estimate of a single year's income expectancy into an indication of value either by dividing the income estimate by an appropriate income rate or by multiplying the income estimate by an appropriate factor. The rate or factor selected represents the relationship between income and value observed in the market. The Sales Comparison Approach to Value is based upon a comparison between recently sold rental apartments in the subject neighborhood and the subject properties, utilizing the price/unit and Gross Income Multiplier methods of comparison. The Cost Approach as applied to improved properties, requires an estimate of the value of the land, as if vacant. An estimate of the Replacement Cost New of the improvements is then estimated, as derived by the national cost data supplied by Marshall & Swift Valuation Services. From the total Replacement Cost New, an estimate of physical depreciation, functional obsolescence and external obsolescence, if applicable, is deducted. The resultant figure represents the depreciated cost of the improvements, plus the land value. The Cost Approach to Value does not take into consideration the income generation potential of a property, whereas the Income Capitalization and Sales Comparison Approaches do. Informed and rational investors of income producing properties typically pay a sales price based on net income flow. The total cost of land and improvements to create a new building and/or renovate or rehabilitate an existing building does not necessarily equal value, as the amount of contribution of the existing improvements is measured in terms of their utility in the market, as well as its benefit/return to an investor (net income -flow). 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. J.R. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 43 - THE INCOME CAPITALIZATION APPROACH TO VALUE The Income Capitalization Approach to Value is based upon the principle of anticipation with value reflected as the present worth of the right to future benefits. The future benefits which accrue to ownership consist of an annual income stream and reversionary capacity of the real estate. The Income Capitalization Approach to Value is defined in The Dictionary of Real Estate Appraisal, Third Edition (Chicago: Appraisal Institute, 1993) as follows: A set of procedures through which an appraiser derives a value indication for an income - producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment and change in the value of the investment. Alternately, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate. The process of income capitalization requires the following analysis: 1. An estimate of potential gross income based upon market (economic rents). 2. An estimate and deduction reflecting vacancy and collection losses resulting in an estimate of effective gross income. 3. An estimate and deduction of the operating and fixed expenses as well as a reserve for replacements in order to arrive at the net operating income (net income before recapture or debt service.) 4. An estimate of the duration of the projected income stream. 5. The development and selection of an appropriate capitalization rate and technique. 6. Application of the derived capitalization rate to the estimate of net income in order to provide an indication of value. ANALYSIS OF MARKET RENTAL RATES The terms market rent and economic rent are traditionally synonymous in appraisal practice. Market rent is defined in The Dictionary of Real Estate Appraisal, Third Edition (Chicago: Appraisal Institute, 1993) as follows: The rental income that a property would most probably command on the open market; indicated by current rents paid and asked for comparable space as of the date of the appraisal. An analysis of comparable rental apartment buildings was performed to provide market rental rates and vacancy levels. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - L4 THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- Comparable Rental Apartment One Address: 1601 N.W. 62nd Street Miami, Florida Type: 2-story rental apartment building Year Built: 1953 Condition: Average No. of Units: 28 Rental Rates: Unit Rental Type Rate 1 BR-1 BATH $325 Lease Terms: Month -to -month Occupancy: 100% Comments: This property was sold for $320,000 or $11,400/unit in January 2001, with a Potential Gross Income Multiplier of 2.93. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 45 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- Comparable Rental Apartment Two Address: 1575 N.W. 59th Street Miami, Florida Type: 2-story rental apartment building Year Built: 1962 Condition: Average No. of Units: 11 Rental Rates: Unit Rental Type Rate Efficiency $250 1 BR-1 BATH $285-$300 Lease Terms: Month -to -month Occupancy: 81.8% Comments: This property was sold for $98,500 or $9,000/unit in November 2000, with a Potential Gross Income Multiplier of 2.59. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 46 - THE INCOME CAPITALIZATION APPROACH TO VALUE Comparable Rental Apartment Three Address: 1251 N.W. 59th Street Miami, Florida Type: 2-story rental apartment building Year Built: 1965 Condition: Average No. of Units: 4 Rental Rates: Unit Rental Type Rate -- Continued -- 2 BR-1 BATH $400 Lease Terms: Month -to -month Occupancy: 100% Comments: This property was sold for $115,000 or $28,800/unit in December 2000, with a Potential Gross Income Multiplier of 5.99. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 47 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- Comparable Rental Apartment Four Address: 1245 N.W. 58th Street Miami, Florida Type: 2-story rental apartment building Year Built: 1964 Condition: Average No. of Units: 24 Rental Rates: Unit Rental Tvgg Rate Efficiency $250 1 BR-1 BATH $275 Lease Terms: Month -to -month Occupancy: 100% Comments: This 24-unit property (with 1238 N.W. 58th Terrace) is listed for sale at $295,000 or $12,300/unit, with an effective Potential Gross Income Multiplier of 3.72, based on the reported income in 1999. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 48 - THE INCOME CAPITALIZATION APPROACH TO VALUE — Continued -- Comparable Rental Apartment Five Address: 6091 N.W. 15th Avenue Miami, Florida Type: 2-story rental apartment building Year Built: 1957 Condition: Average No. of Units: 15 Rental Rates: Unit Rental Tyne Rate 1 BR-1 BATH $225 2 BR-1 BATH $285 3 BR-2 BATH $450 Lease Terms: Month -to -month Occupancy: 95% Comments: This U-shaped two-story 15-unit CBS apartment building 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. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 49 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- Comparable Rc110.1 Apartment Six Address: 1520 N.W. 61st Street Miami, Florida Type: 3-story rental apartment building Year Built: 1957 Condition: Average No. of Units: 18 Rental Rates: Unit Rental Type Rate 1 BR-1 BATH $325 2 BR-1 BATH $425 Lease Terms: Month -to -month Occupancy: 100% Comments: This L-shaped three-story 18-unit CBS apartment building 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. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 50 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- SUMMARY OF RENTAL RATES FOR RENTAL APARTMENTS Total Monthly Year Built/ No. of Unit Rent Address (.ct«uoamy Condition VNis Lys Rise 1) 1601 N.W. 62nd Street 100.0% 1953 28 1 / 1 $325 $325 Miami, Florida Average 2) 1575 N.W. 59th Street 81.8% 1962 9 Efficiency $250 $250 Miami, Florida Average 2 1 / 1 $285 $300 3) 1251 N.W. 59th Street 100.0% 1965 4 2 / 1 $400 $400 Miami, Florida Average 4) 1245 N.W. 58th Street Miami, Florida 100.0% 1964 20 Efficiency $250 $250 Average 4 111 $275 $275 5) 6091 N.W. 15th Avenue 95.0% 1957 8 1 / 1 $225 $225 Miami, Florida Average 6 2 / 1 $285 $285 1 3 / 2 $450 $450 6) 1520 N.W. 61st Street Miami, Florida 100.0% 1957 12 1 / 1 $325 $325 Average 6 2 / 1 $425 $425 Lea[ High Efficiency $250 $250 1 / 1 $225 $325 2 / 1 $285 $425 3 / 2 $450 $450 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 51 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- MARKET RENTAL RATE ANALYSIS AND CONCLUSIONS A survey of comparable rental apartments was made in order to analyze the existing rents at the subject properties, and to provide an indication of market rental rates and occupancy levels which would be applicable to the subject properties in a continued rental use. The unadjusted monthly rental rates within the competitive facilities were: $250 for efficiency apartments; $225 to $325 for one bedroom -one bathroom apartments; $285 to $425 for two bedroom -one bathroom apartments; and $450 for three bedroom -two bathroom apartments. The comparable rental apartments are located within the subject neighborhood, and were considered somewhat similar to the subject properties in terms of condition, appeal, age, amenities, parking and location. ESTIMATE OF GROSS INCOME The preceding market analysis of rental apartment facilities has served as a basis to project the rental rates applicable to the subject properties, and to estimate the potential rental income. ANCILLARY INCOME The ancillary income typically includes coin -operated laundry income, key deposits, late rent fees, forfeited deposits, etc. There was no ancillary income applicable to the subject properties. VACANCY AND COLLECTION LOSS Based on the size, condition and number of units which require rehabilitation prior to occupancy, we have estimated the vacancy and collection loss factor at 20% at Property 3 (four vacant units at the time of inspection) and Property 7 (two vacant units at the time of inspection; requires renovation work), and 8.33% (an average of one month per year vacancy; tenant turn -over or collection loss at a stabilized operation) at the remaining subject properties. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 52 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- OPERATING EXPENSES The landlord is responsible for real estate taxes, insurance, management, .common area electricity (if applicable), water and sewer (with the exception of the subject properties at 6091 N.W. 15th Avenue and 1341 N.W. 61st Street); gas (if applicable), waste removal, repairs and maintenance, Iegal and professional fees, miscellaneous expenses, and reserves for replacement. We have interviewed the property owners, reviewed the operating expenses at the subject properties, and analyzed the operating expense data on a per unit and per square foot basis. The following is an explanation of the estimated operating expenses under typical stabilized operations. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 53 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- PROPERTY EIGHT (1371 N.W. 61st Street, Miami) Gross Income The Potential Gross Income was estimated at $21,600, with an Effective Gross Income of $19,800. Operating Expenses The actual real estate taxes are $2,619.38, with an assessment of $30.42/SF of building area which is unusually higher than comparable properties. Based on an assessment of $15.00/SF (similar to the rest of the subject properties), the real estate taxes are estimated at $1,069.62 or $1,027 after a 4.0% discount for prompt payment. The insurance expense was estimated to be $1,700. Management reflects the cost of overseeing and coordinating the operations at the rental apartment facility during the projected holding period. The management fee is estimated to be 5.0% of the effective gross rental income or $990. The subject apartment units are individually metered for electricity. The expense for the common area electricity was estimated to be $340. The water and sewer expense was estimated to be $1,350. The gas expense was estimated to be none. The waste removal expense was estimated to be $900. The repairs, maintenance and contract services was estimated to be $1,650 (excluding reserves for replacement of short-lived items). Based on the size of the property, the legal and professional fees were estimated to be $750. The miscellaneous expenses were estimated to be $25/unit or $150. The landlord would be responsible for the replacement of short-lived items which were estimated to be $840. Refer to the facing page. Net Operating Income The total operating expenses were estimated to be $9,697 or $1,616/unit or 49.0% of the effective gross income. The net operating income before debt service was estimated to be $10,103 or $1,684/unit or 51.0 % of the effective gross income. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 61 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- RATES OF RETURN An investor's expected return consists of (1) full recovery of the amount invested or the return of capital and (2) a profit or return on capital. Rates of return can be categorized either as yield rates or income rates. The interest rate, discount rate, internal rate of return and equity yield rate are yield rates. The overall capitalization rate and equity dividend rate are income rates. The Discount Rate is a rate of return on capital used to discount future payments or receipts to present value and represents the annual rate of return necessary to attract investment capital. Discount rates are influenced by many considerations, including degree of risk, market attitudes with respect to future inflation, prospective rate of return earned by comparable investments and supply/demand for mortgage funds. We have reviewed rate of return data which is considered indicative of alternative investment vehicles available in the capital markets. Rate selection requires appraisal judgment and knowledge concerning prevailing market attitudes and prevailing economic indicators. According to the most recent survey of real estate portfolio managers as provided by the Valuation Magazine published by the Appraisal Institute, the discount rates for rental apartments ranged from 10.00% to 15.00% in the 4th Quarter of 2000, with an average of 11.41 %. The overall capitalization rates ranged from 7.0% to 9.5 % in the 4th quarter of 2000, with an average of 8.57%. The residual capitalization rates ranged from 7.5% to 10.5% in the 4th quarter of 2000, with an average of 9.04%. The discount rates for rental apartments ranged from 10.00% to 15.00% in the 3rd Quarter of 2000, with an average of 11.45 %. The overall capitalization rates ranged from 7.0% to 9.0% in the 3rd quarter of 2000, with an average of 8.63%. The residual capitalization rates ranged from 7.5 % to 10.5% in the 3rd quarter of 2000, with an average of 9.1 %. The discount rates for rental apartments ranged from 10.00% to 15.00% in the 2nd quarter of 2000, with an average of 11.50%. The overall capitalization rates ranged from 7.50% to 11.0% in the 2nd quarter of 2000, with an average of 8.82%. The residual capitalization rates ranged from 8.00% to 10.50% in the 2nd quarter of 2000, with an average of 9.19%. The discount rates for rental apartments ranged from 10.00% to 15.00% in the 1st quarter of 2000, with an average of 11.50%. The overall capitalization rates ranged from 7.50% to 11.0% in the 1st quarter of 2000, with an average of 8.83%. The residual capitalization rates ranged from 8.00% to 10.50% in the 1st quarter of 2000, with an average of 9.21 %. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 66 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued — Direct Capitalization Method The estimated of the Market Value of the subject properties were provided by utilizing the Direct Capitalization Method which converts an estimate of a single year's income expectancy into an indication of value either by dividing the income estimate by an appropriate income rate or by multiplying the income estimate by an appropriate factor. The rate or factor selected represents the relationship between income and value observed in the market and is derived through comparable sales analysis. The Net Operating Income utilized within the Direct Capitalization method was based upon the estimates of the Year One Gross Rental Income, less vacancy and collection loss, fixed and variable operating expenses, as well as the estimated reserves. The derivation of an Overall Rate via derivation from comparable sales is the preferred technique of deriving a capitalization rate and requires that sufficient recent sales information on comparable properties is available. The comparable properties used should reflect risk, income and expenses, location and physical characteristics similar to that of the subject properties. In Direct Capitalization Method, no precise allocation is made between the return on and return of capital because this method does not simulate investor assumptions and forecasts concerning holding periods, income patterns or value changes in the original investment. Under this capitalization method a satisfactory rate of return for the investor and recapture of the capital invested is considered implicit within the rate used due to the fact that it is derived from similar investment properties. Based on the preceding analysis and taking into account the age, condition, location and rates of return required by investors purchasing this type of properties, as well as the net operating income ratio and gross income multiplier of comparable sales, a "going -in" capitalization rate of 12.0% would reflect investor expectations within the subject competitive market. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 67 - THE INCOME CAPITALIZATION APPROACH TO VALUE -- Continued -- Direct Capitalization Method - Continued Property 7: $9,645 NOI / .12 = $80,375 Market Value of the Fee Simple Interest in Property 7 in "as is" Condition (Rounded) $80,400 Property 8: $10,103 NOI / .12.= $84 192 ft Market Value of the Fee Simple Interest in Property 8 in "as is" Condition (Rounded) $84,200 Property 9: $9,803 NOI / .12 = $81,692 Market Value of the Fee Simple Interest in Property 9 in "as is" Condition (Rounded) $81,700 Property 10: $11,316 NOI / .12 = $94,300 Market Value of the Fee Simple Interest in Property 10 in "as is" Condition (Rounded) $94,300 Property 11: $51,495 NOI / .12 = $429,125 Market Value of the Fee Simple Interest in Property 11 in "as is" Condition (Rounded) $429,100 Property 12: $17,310 NOI / .12 = $144,250 Market Value of the Fee Simple Interest in Property 12 in "as is" Condition (Rounded) $144,250 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 69 - THE SALES COMPARISON APPROACH INTRODUCTION The Sales Comparison Approach to Value is based on the principle of substitution; that is, when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property assuming no costly delay in making the substitution. The Sales Comparison Approach to Value is based on a comparison between recently sold similar properties in the subject neighborhood and the subject properties. These comparable sales are then adjusted for the differences between them and the subject property, utilizing the price/unit and Potential- Gross Income Multiplier methods of comparison. n'• J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 70 - THE SALES COMPARISON APPROACH Comparable Sale Number QIN Address: 1601 N.W. 62nd Street, Miami, Florida -- Continued -- Legal Description: Lots 2, 3, 4 and 5, Block 6, East Liberty City Section A, as recorded in Plat Book 39, Page 19 of the Public Records of Miami -Dade County, Florida Grantee: GND Property Management, Inc. Grantor: Dalea Apartment, Inc. O.R. Book/Page: 19451/1628 Total Number of Units: 28 Adjusted Building Area: 10,428 SF Building Type: 2-story Site Size: 13,600 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1953 Condition: Average Land -to -Building Ratio: 1.30:1 Date of Sale: January 5, 2001 Sale Price: $320,000 Financing: $72,000 purchase money mortgage at 10% for fifteen years Cash Equivalent Sale Price: $320,000 Cash Equivalent Sale Price/SF: $30.69 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -71 - THE SALES COMPARISON APPROACH Comparable Sale Number One (Continued) Cash Equivalent Sale Price/Unit: $11,400 Potential Gross Income Multiplier: 2.93 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 28 x 1-1 $11,400 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 72 - THE SALES COMPARISON APPROACH Comparable Sale Number Two Address: 1575 N.W. 59th Street, Miami, Florida Legal Description: -- Continued -- Lots 25 and 26, Block 13, Orange Heights, as recorded in Plat Book 14, Page 62 of the Public Records of Miami -Dade County, Florida Grantee: Willie Bryant Grantor: - Leonzie Jones O.R. Book/Page: 19380/1780 Total Number of Units: 11 Adjusted Building Area: 5,950 SF Building Type: 2-story Site Size: 10,600 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1962 Condition: Average Land -to -Building Ratio: 1.78:1 Date of Sale: November 14, 2000 Sale Price: Financing: Cash Equivalent Sale Price: Cash Equivalent Sale Price/SF: $98,500 Cash to the seller $98,500 n•• ° $16.55 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 73 - THE SALES COMPARISON APPROACH Comparable Sale Number Two (Continued) Cash Equivalent Sale Price/Unit:. $9,000 Potential Gross Income Multiplier: 2.59 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 2 x Efficiency $7,800 9 x 1-1 $9,200 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 74 - THE SALES COMPARISON APPROACH -- Continued -- Comparable Sale Number Three Address: 1251 N.W. 59th Street, Miami., Florida Legal Description: Lots 23, Block 6, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Grantee: John and Gwendolyn Johnson Grantor: Heavenly Properties, Inc. O.R. Book/Page: 19405/197 Total Number of Units: 4 Adjusted Building Area: 2,779 SF Building Type: 2-story Site Size: 5,300 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1965 Condition: Average Land -to -Building Ratio: 1.91:1 Date of Sale: December 8, 2000 Sale Price: $115,000 Financing: Cash to the seller Cash Equivalent Sale Price: $115,000 Cash Equivalent Sale Price/SF: $41.38 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 + Coconut Grove, Florida 33133 - 75 - THE SALES COMPARISON APPROACH Comparable Sal; Number Three (Continued) Cash Equivalent Sale Price/Unit: $28,800 Potential Gross Income Multiplier: 5.99 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 4 x 2-1 $28,800 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 76 - THE SALES COMPARISON APPROACH Comparable Sale Number Four Address: 1251 N.W. 61st Street, Miami, Florida Legal Description: -- Continued -- Lot 34, Block 2, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Grantee: Cardenal Coleman, Sr. Grantor: Gateway Real Estate, Inc. O.R. Book/Page: 19346/126 Total Number of Units: 4 Adjusted Building Area: 2,781 SF Building Type: 2-story Site Size: 5,300 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1964 Condition: Average Land -to -Building Ratio: 1.91:1 Date of Sale: October 18, 2000 Sale Price: $118,000 Financing: Cash to the seller Cash Equivalent Sale Price: $118,000 Cash Equivalent Sale Price/SF: $42.43 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 77 - THE SALES COMPARISON APPROACH Cggiparable Sale Number Four (Continued) Cash Equivalent Sale Price/Unit: $29,500 Potential Gross Income Multiplier: 5.99 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 4 x 2-1 $29,500 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 78 - THE SALES COMPARISON APPROACH -- Continued -- Comparable Sale Number Five Address: 6301 N.W. 17th Avenue, Miami, Florida Legal Description: Lot 3, less the southern five feet for street, Jenkins Addition to Liberty City, as recorded in Plat Book 39, Page 10 of the Public Records of Miami -Dade County, Florida Grantee: Harvell Castleberr Grantor: Rogers Jones, Jr. O.R. Book/Page: 19206/4422 Total Number of Units: 4 Adjusted Building Area: 2,003 SF Building Type: 2-story Site Size: 3,600 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1942 Condition: Average Land -to -Building Ratio: 1.80:1 Date of Sale: June 26, 2000 Sale Price: $90,000 Financing: Cash to the seller Cash Equivalent Sale Price: $90,000 Cash Equivalent Sale Price/SF: $44.93 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 79 - THE SALES COMPARISON APPROACH Comparable Sale Number Five (Continued) Cash Equivalent Sale Price/Unit: $22,500 Potential Gross Income Multiplier: 4.69 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 4 x 2-1 $22,500 -- Continued -- J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 80 - THE SALES COMPARISON APPROACH Comparable Listing For Sale Number Six Address: 1259 N.W. 58th Terrace, Miami, Florida Legal Description: Lot 24, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Owner: Home Equity Mortgage Corporation -- Continued -- Total Number of Units: 6 Adjusted Building Area: 2,976 SF Building Type: 2-story Site Size: 5,300 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1959 Condition: Average Land -to -Building Ratio: 1.78:1 Asking Price: $99,900 Asking Price/SF: $33.57 Asking Price/Unit: $16,700 Potential Gross Income Multiplier: 5.05 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 6 x 1-1 $16,700 .i.8. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 81 - THE SALES COMPARISON APPROACH Comparable Listing For Sale Number Seven Address: 1245 N.W. 58th Terrace and 1238 N.W. 58th Streit, Miami; Florida -- Continued — Legal Description: Lots 7, 8, 21 and 22, Block 10, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Owner: Jerry Evans and Scott Evans Total Number of Units: 24 Adjusted Building Area: 11,908 SF Building Type: 2-story Site Size: 21,200 SF Zoning: R-3 Medium Density Multi -Family Residential District Year Built: 1964 Condition: Average Land -to -Building Ratio: 1.78:1 Asking Price: $295,000 Asking Price/SF: $49.55 Asking Price/Unit: $12,300 Potential Gross Income Multiplier: 3.72 SALE PRICE PER UNIT TYPE Unit Indicated Type Sale BR -BA Price/Unit 4 x Efficiency $11,200 20 x 1-1 $12,500 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 82 - THE SALES COMPARISON APPROACH -- Continued -- SUMMARY Of MULTIFAMILY RENTAL APARTMENT SALES FOR SUBJECT PROPERTIES IN EXHIBIT 2 UN Safe Bale Sale Sale tJeling Using 0n1 Twa Three Four 4ye EIS limn Address 1601 N.W. 1573 N.W. 1251 N.W. 1251 N.W. 6301 N.W. 1239 N.W. I245N.W- 9817t 62nd Street 691h Streit 5911i Weal 61e151nel 171h Avenue Seth Temm 81, &1238 N. W. Miami Miami Miami Miami Mond SAWN 58th Telsace Mleml Bu61815 Type 2-Story 2-Story 2-Story 2-Story 2-&ory 2-211ay 2•1310ry Building Area (SF) (1) 10.425 5,950 2,779 2,781 2,003 2,976 11408 Site Ana (23) 13,600 10,600 5.300 5,300 3,600 5,300 21,200 Lad•lo•Buedlrg Rath 1.30 1.76 1.01 1.91 1.60 1.78 1.76 Density (Un9UAcn) 40.7 45,2 32.9 32.9 46.4 40.3 49,3 Number of Unis 28 11 4 4 4 6 24 Unit Mix 1 BEB W1 Bilh 28 4 1 BR/1,6 Bath - ; 6 20 2 BRM BIM 4 4 4 2 BR/1.5 Bath ' 2 BR/2 Bath 3 BRn Bath - 3 BAR Bath Building Area/Une (5F) 372 541 595 895 501 498 496 Year Bing 1953 1962 1985 1964 1942 1959 1964 Condition Average Average • Average Average Average Average Average Zoning C-1 R-3 R•3 R-3 R.3 R.3 Rq Dale o1 Bate 11512001 11/1412000 12l8 2009 1071am000 6r2en000 Listed Listed Consideration 6320,000 986.500 1115.000 $116,000 160,900 $00,000 3205,000 Financing 172,000 Cash to Cash to Cash la Cash to LNled Listed PMM the Seller the Seller the Seiler the Sager Cosh Equhralenl Sale Price 2320,000 $98,500 9115.000 $116,000 $90.000 399,990 $295,000 Cash Equivaler4 Bale Pnc&SF 130.69 516.55 241.38 $42.43 144.93 133.57 924.77 Cash EquivMNn1 Sale Pricer Unit (Average) 381,400 $9.000 328,600 129,500 322,500 346,700 212,300 Unadjusted Sala Prica/Un8 Type E61cieney $7,800 - 311,269 1 BR/1 Bath 641,400 16,100 . 918,700 212,400 2 0501 Bath 926,660 321,500 $22,500 2 BR/1.5 Bath - 2 ERR Bath - - - 3 BR/1 Bath ' 3 BRR Bath Grass Income Muhipiler 2.93 2.59 5,99 9.99 4,69 6.05 3.72 (1): MJusted 6u90ing ores as nlNgad by the Pubic Records of Mtaris-Dade County, Floods. .LB. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 83 - THE SALES COMPARISON APPROACH ANALYSIS OF COMPARABLE SALES The Sales Comparison Approach to Value is based upon a comparison between recently sold properties in the subject neighborhood and the subject properties. The comparable sales, as well as two listings have been analyzed on the basis of the Potential Gross Income Multiplier and sale price/unit units of comparison. The following discussion illustrates the basis for our adjustments in the comparable sales analysis. Financing The sales represent "arm's length" transactions with typical terms of purchase. The purchase money and conventional mortgages involved in the comparable sales were at market interest rates and terms at the time of sale, thereby requiring no adjustment for financing. Time of Sale -- Continued -- The current listings, as well as the comparable apartment sales under analysis have occurred between June 2000 and January 2001, and reflect current market conditions in the subject area. Accordingly, no quantitative time adjustment was required. Age/Condition The comparable properties were built between 1942 and 1965, and are in average condition. The subject properties were built between 1957 and 1967, and are in average condition. The comparable sales were similar to the subject properties in terms of condition and appeal. Location Investors in this type of income producing property, such as rental apartment buildings, typically pay a sales price based upon certain investment criteria. In the analysis of the comparable sales, location is not considered as critical as the net income flow. The comparable sales are located within the same neighborhood, and were considered similar to the subject properties in terms of overall location. Unit Mix and Size The comparable rental apartment sales have been analyzed relative to their unit mix. The respective unit types command different rental rates and account for different portions of the income stream and therefore, have an affect on the purchase price associated with income generation potential. Investors purchasing income producing apartment facilities would typically pay more for those buildings which contain greater numbers of two - bedroom and three -bedroom units, as compared to the smaller efficiency and one - bedroom units. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -84- THE SALES COMPARISON APPROACH Potential Gross Income Multiplier Method - Continued Property 6: $21,000 PGI x 3.75 = $78,750 Market Value of the Fee Simple Interest in Property 6 in "as is" Condition (Rounded) $78,800 Property 7: $25,200 PGI x 3.25 = $81,900 Market Value of the Fee Simple Interest in Property 7 in "as is" Condition (Rounded) $81,900 Property 8: $21,600 POI x 3.75 = $81,000 Market Value of the Fee Simple Interest in Property 8 in "as is" Condition (Rounded) $81,000 Property 9: $21,600 PGI x 3.75 = $81,000 Market Value of the Fee Simple Interest in Property 9 in "as is" Condition (Rounded) $81,000 Property 10: $20,400 PGI x 3.75 = $76,500 Market Value of the Fee Simple Interest in Property 10 in "as is" Condition (Rounded) $76,500 Property 11: $126,000 PGI x 3.75 = $472,500 Market Value of the Fee Simple Interest in Property 11 in "as is" Condition (Rounded) $472,500 Property 12: $39,600 PGI x 3.75 = $148,500 Market Value of the Fee Simple Interest in Property 12 in "as is" Condition (Rounded) $148,500 -- Continued — J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 86 - THE SALES COMPARISON APPROACH -- Continued — Price/Unit Method - Continued Property 6: $11,000 x 3 + $40,000 x 1 = $73,000 Market Value of the Fee Simple Interest in Property 6 in "as is" Condition (Rounded) $73,000 Property 7: $17,500 x 6 = $105,000 Market Value of the Fee Simple Interest in Property 7in "as is" Condition (Rounded) $66,000 Property 8: $11,000 x 6 = $66,000 Market Value of the Fee Simple Interest in Property 8 in "as is" Condition (Rounded) $66,000 Property 9: $11,000 x 6 = $66,000 Market Value of the Fee Simple Interest in Property 9 in "as is" Condition (Rounded) $66,000 Property 10: $17,500 x 4 = $70,000 Market Value of the Fee Simple Interest in Property 10 in "as is" Condition (Rounded) $70,000 Property 11: $9,000 x 2 + $11,000 x 21 + $17,500 x 13 = $476,500 Market Value of the Fee Simple Interest in Property 11 in "as is" Condition (Rounded) $476,500 Property 12: $11, 000 x 12 = $132,000 Market Value of the Fee Simple Interest in Property 12 in "as is" Condition (Rounded) $132,000 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 88 - THE SALES COMPARISON APPROACH RECONCILIATION Property 1 Property 2 Property 3 Property 4 Property 5 Property 6 Property 7 Property 8 Property 9 Property 10 Property 11 Property 12 Value Via Value Via PGIM Method Price/Unit $178,200 $220,500 $103,500 $99,000 $278,900 $220,000 $182,250 $145,000 $283,500 $237,000 $78,800 $73,000 $81,900 $105,000 $81,000 $66,000 $81,000 $66,000 $76,500 $70,000 $472,500 $476,500 $148,500 $132,000 Reconciled Value $220,000 $100,000 $250,000 $165,000 $260,000 $77,500 $90,000 $75,000 $75,000 $74,000 $475,000 $140,000 -- Continued - J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 89 - RECONCILIATION AND FINAL VALUE ESTIMATE 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 In order to estimate the Market Value of the Fee Simple Interest in the subject properties in their current "as is" condition, as of April 23, 2001, the Income Capitalization and Sales Comparison Approaches to Value has been utilized. The Income Approach to Value is typically based upon the projected income and expense characteristics used within a Discounted Cash Flow model or direct capitalization method. The analysis of the subject properties in a continued rental apartment use is based on the income and expense characteristics applicable to the subject buildings. Income producing properties are generally purchased on the basis of their anticipated net income. The Direct Capitalization Method converts an estimate of a single year's income expectancy into an indication of value either by dividing the income estimate by an appropriate income rate or by multiplying the income estimate by an appropriate factor. The rate or factor selected represents the relationship between income and value observed in the market. d.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 90 - RECONCILIATION AND FINAL VALUE ESTIMATE -- Continued -- The Sales Comparison Approach to Value is based upon a comparison between recently sold rental apartments in the subject neighborhood and the subject properties, utilizing the price/unit and Gross Income Multiplier methods of comparison. The Cost Approach as applied to improved properties, requires an estimate of the value of the land, as if vacant. An estimate of the Replacement Cost New of the improvements is then estimated, as derived by the national cost data supplied by Marshall & Swift Valuation Services. From the total Replacement Cost New, an estimate of physical depreciation, functional obsolescence and external obsolescence, if applicable, is deducted. The resultant figure represents the depreciated cost of the improvements, plus the land value. The Cost Approach to Value does not take into consideration the income generation potential of a property, whereas the Income Capitalization and Sales Comparison Approaches do. Informed and rational investors of income producing properties typically pay a sales price based on net income flow. The total cost of land and improvements to create a new building and/or renovate or rehabilitate an existing building does not necessarily equal value, as the amount of contribution of the existing improvements is measured in terms of their utility in the market, as well as its benefit/return to an investor (net income flow). 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. 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) 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) J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -91 - RECONCILIATION AND FINAL VALUE ESTIMATE -- Continued -- 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) ° y 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) PROPERTY ELEVEN - 1256 N.W. 58TH TERRACE AND 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) J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 92 - 3121 Commodore Pima, Suite 200, Coconut Breve. Bahia 33133 TN: PSI 852-0900 Past (704) 552-0070 COHTUMMNO ED11C.A1IOM FOR Ram ESTATP APPRAISAL r1 QAIC f'ftlIAgF/RPYINAR TIT1 P `. one 10284000 Florida Slate Law and USPAP Review for Rsal Estate A b Appraisers ACE988338522 7.0 972R009 Partial Intern' Valuation - Undivided ACE1I37154600 7.0 3/8R000 Repression Analysis In ApprWal Pradios: Conapls and Applcalons ACE980843506 2/O12000 7.0 Fegeral Appraisal ReglatrraerNs AC012123876801 SA 10/15.18/1999 Course 330 Apryr»ry Appraisak Concepts and Applications ACE8288 18.0 10/7./1699 Attacking and DIMndalp an Appraisal ACE2180 3.5 8/13/1999 Partial Wrest Valuaaon • Divided ACE7003 7.0 7124/1999 The Good, the pad and the Appraisal Board' ACE2171 3.0 5111999 An inside vim/ of ethics and standards ACE2203 3.0 8/14/1999 7 Hour USPAP More' Lew Ron Appraisers ACE1201 7.0 71161998 The Impact of Co, arnint yca on Real Estate Value ACE2143 ],p 6/12-13/1998 Standards of Pro/animal Practice, Pan C ACE1959 18.0 5121199a Loss Prevention for Appraisers ACE2070 3.0 4/3/1998 Small H}olerISA N Valuation ACE3069 2/20/1990 AppraMal Office Management 7.0 snagemenl ACE2044 7.0 1/31/1998 Non -conforming Uses ACE2048 1.0 9/811997 Appraisal of Transferable Development Rights ACE1985 3.0 7/8/1997 NAIFA Fak Lending Caine 504 7.0 11/18/1998 Appraisal of Nursing Home Famibes ACE1875 7.0 7/13/1990 The'98 Data Exchange/Roundtable for Income Properties ACE1825 3.0 2/3/1998 Inlsrnet and the Appraiser ACE1750 3.0 8/18/1995 The Appraiser as Expert Wines/ ACE1531 7.0 2/4/1995 Raal Estate EvaNuIorls and to Appraisal industry ACE1812 3.0 10/14/1904 Seven Hour USPAP'Care Law Far Appraisers ACE1281 7.0 6/5/1994 Linked Appraisals and Reporting Options ACE1557 7.0 7/13-18/1994 Standards of Professional Radice, Pans A and B 410 & 420 27.0 0/11/1994 Verification of Merkel Data ACE1532 3.0 4/18/1994 Payer Una Easements and EMF Seminar ACEI495 3.0 2/1211994 Americans with Disabilities Ad (ADA) Seminar ACE1402 4.0 9/11/1993 Hotel Valuation ACE1085 3.0 4/17/1993 44hy the Cep Rale Is Always -10' 7 ACE1283 3.0 9/28/1992 Education: The New Generation ACE1207 3.0 9117.161902 Hot.YMotst Market Study. Valuation 5 Investment ACEt25e 14.0 2/1/1992 Practical Approach's lo Appraising Troubled Properties ACE292 3.4 W15(1991 Overview N Recant Changes to Standards ACE881 3.0 1V11/1990 Subdivision Analysis ACE990 7.0 N24.30/1990 Report Writing and Valuation Analysis EXAM2.2 ta.Q 2/24-3/31 1990 Casa Studies in Real Estate Valuation E1fAM2'1 30.0 9/23-11f4 teas Capitalisation Theory and Techniques, Pan B E7UM113-B 39.0 5I7.11/ 1989 Standards of Professional Practices SPP 24.5 2/4.3/16 1989 Capitalisation Theory and Techniques, Pan A E%AM1&A 39.0 9/17-10/221908 Real Estate Appraisal Principles E(AM1A• 1 38.5 9/10-10/15 1988 Basin Valuation Procedures ('): AY courses/seminars sponsored and gluon by the Appraisal Institute. EXAM1A-2 39.5 TOTAL 460.0 J.S. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 s Coconut Grove, Florida 33133 - 98 - JOZEF ALHALE, MAI 3121 Commodore Plaza, Suite 200 Miami, Florida 33133 QUALIFICATIONS Experience: Thirteen years in the field of real estate appraisal, consultation, economic research and market analysis. Membership: Appraisal Institute, MAI Miami Society of Commercial Realtors Professional Experience: J.B. Alhale & Associates, Inc., Miami, Florida President, May 1994 to present Dixon and Friedman, Inc., Miami, Florida Senior Appraiser, October 1991 - May 1994 R.G. Davis & Associates, Inc., Miami, Florida Fee Appraiser, January 1991 - October 1991 Izenberg Appraisal Associates, Inc., Parsippany, New Jersey Staff Appraiser, July 1988 - December 1990 Academic Education: Master of Science, Computer Science Rensselear Polytechnic Institute, Troy, New York Bachelor of Arts, Cum Laude, Computer Science New York University, New York, New York Licensed: State Certified General Real Estate Appraiser - State of Florida Certification Number RZ 0001557 Real Estate Salesman - State of Florida Assignments: Appraisals - Vacant land, industrial facilities, shopping centers, office buildings, rental and condominium apartment buildings, hotel and motel facilities, adult congregate living facilities and other special-purpose properties. Consulting - Economic research, market analysis and feasibility analysis pertaining to commercial and residential properties. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 99 -