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Home My WebLink Aboutexhibit 2- appraisal report 3J. MARX QUIBTLIVAN, MAI Srwra•Caarttaa 0aloawt. Arrammtaa Sz 000002 May 15, 2001 QuINLIvAN APPRAISAL A PsoPSSSIOIw. AssoCIA.7Iou REAL ESTATE APPRAISERS & CONSULTANTS 6700 S.W. 741II STRUM. SUS'=E 000 Sotri FLORIDA 00148 TEI.EPEONE (0061 660-6611 FAX (a05) 665-4091 Laura Billberry, Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue, 3rd Floor Miami, Florida 33130 TsomAs F. M4.crim tsocss. I►LAI 9rwa-CiaTtr as asaaam. Arrsaims sz 0000550 Dear Ms. Billberry: In accordance with Purchase Order No. 212858, I have prepared Complete, Summary Appraisal Reports of the following multifamily residential properties. The purpose of the Appraisals is to estimate the Market Value in Fee Simple Title, in order to determine the compensation for the Total Taking of the properties. The Summary Appraisal Reports that follows set forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject properties, and comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. A separate Data Book contains the detailed information on each sale property. Laura Bitlberry, Director Office of Asset Management May 15, 2001 Page 2 Based on the inspection of :the properties and the investigation and analyses undertaken, I have formed the opinion that, as of May 12, 2001, the total compensation due was: Type Page Designation Address Property Vag of Value MHZ 34 1341 N.W. 61st St. Multifamily $ 92,500 Volume IV, Page 3 MHZ 36 1371 N.W. 61st St. Multifamily $ 85,000 Volume IV, Page 3 MHZ 80 1387 N.W. 60th St. Triplex $ 90,000 Volume IV, Page 3 MHZ 82 6091 N.W. 15th Ave. Multifamily $200,000 Volume IV, Page 3 MHZ 92 - 1400 N.W. 61st St. Multifamily $100,000 Volume IV, Page 3 MHZ 95 1425 N.W. 60th St. Multifamily $300,000 Volume IV, Page 3 MHZ 96 1435 N.W. 60th St. Multifamily $150,000 Volume IV, Page 3 MHZ 106 1520 N.W. 61st St. Multifamily $245,000 Volume IV, Page 3 MHZ 109 1519 N.W. 60th St. Multifamily $ 83,500 Volume IV, Page 3 MHZ 150 1459 N.W. 59th St. Duplex $ 88,000 Volume IV, Page 3 MHZ 178 1250 N.W. 60th St. Multifamily $ 85,000 Volume IV, Page 3 MHZ 269 1600 N.W. 59th St. Multifamily $ 95,000 Volume IV, Page 3 MHZ 357 1255 N.W. 58th St. Multifamily $390,000 Volume IV, Page 3 MHZ 358 1238 N.W. 58th Terr. Multifamily $135,000 Volume IV, Page 3 Respectfully submitted, ■ J. Mark Quinlivan, MAI State Certified General Appraiser Certification Number: RZ0000112 JMQ/lh (01-051) ltrmfam LOCATED AT: 1341 N.W. 61sT STREET MIAMI, FLORIDA PREPARED FOR: CITY OF MIAMI 444 S.W. 2ND AVENUE, 3RD FLOOR MIAMI, FLORIDA 33130 As OF: MAY 12, 2001 PREPARED By: QUINLIVAN APPRAISAL, P.A. 5730 S.W. 74TH STREET - SUITE 300 SOUTH MIAMI, FLORIDA 33143 QuINLIVAN APPRAISAL A FROFSIMITOWAL Aasocunow REAL ESTATE APPRAISERS & CONSULTANTS 6700 S.W. 74TH STREET, SUITE 000 SOUTH MIAD[I. FLORIDA 130148 J. MARK QumLIVAN, MAI .STATD•CIISMIPlmD OZNHRAL APP Ar aar RZ 0000112 May 15, 2001 Laura Billberry, Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue, 3rd Floor Miami, Florida 33130 TELEPHONE (306) 080-9011 FAX (906) 665-4021 THOMAS F. MAOENH8IMRR. MAI STATE-Citirrryzan Gamma. Arr*s=aa 312 0000660 Dear Ms. Billberry: In accordance with your request and authorization, I have prepared this Appraisal Report covering the following described property: A two-story apartment building located at 1341 N.W. 61 st Street, Miami, Florida. The purpose of this Appraisal is to estimate the Market Value of the described property as of May 12, 2001, being one of the dates of personal inspection. The narrative Appraisal Report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. Laura Billberry, Director Office of Asset Management May 15, 2001 Page 2 Based on the inspection of the property and the investigation and analyses undertaken, I have formed the opinion that, as of May 12, 2001, the subject property had a Market Value of: NINETY-TWO THOUSAND FIVE HUNDRED DOLLARS ($92,500) Respectfully submitted, J.1. Mark Quinlivan, MAI State Certified General Appraiser Certification Number: RZ0000112 JMQ/lh (01 -051MHZ34) TABLE OF CONTENTS, TRANSMITTAL LETTER CERTIFICATION OF VALUE SUMMARY OF SALIENT FACTS AND CONCLUSIONS 3 INTRODUCTION Identification of the Property 4 Location 4 4 4 4 4 5 Owner of Record and Address 5 History of Title 5 Estimated Exposure Time 6 Estimated Marketing Period 6 SITE DATA Dimensions and Shape 7 Area 7 Topography and Drainage 7 Flood Zone 7 Soil and Subsoil 7 Utilities 8 Street Improvements 8 ZONING 8 HIGHEST AND BEST USE 8 DESCRIPTION OF IMPROVEMENTS 9 Purpose and Date of Appraisal Intended Use and User of Appraisal Legal Description Property Rights Appraised Assessment and Taxes QUINLIVAN APPRAISAL TABLE OF CONTENTS SCOPE OF THE APPRAISAL 11 INCOME APPROACH TO VALUE 13 SALES COMPARISON APPROACH TO VALUE 16 RECONCILIATION AND VALUE CONCLUSION 18 i►DDENDUM Assumptions and Limiting Conditions 20 Qualifications 22 QUINLIVAN APPRAISAL fi CERTIFICATION OF VALUE rf%x:'S::e:?.::%J; ,yu.:�::g5n:jx vo;r:.y;.;.nL }:q.,y�.�.,.#'?i�:�:%C:;i'L,'•i.4�ai?:'S#f�f.�•,•.,t'' �,o-'''S:" 'r:, f•�' :': °,f :=:`i ', r - u o c4 o�,, i2. `.S o¢,tC¢ lx.:•:.,.yt n t• ••.� :' '.,d;, �.... : •.. r: t i.... .< <Y ti,...... r...�ri <;,w: .�:.: .o:::::.x�::. rF .wc w.� c� .G. ,.... The undersigned hereby certifies that, to the best of my knowledge and belief: (A) The statements of fact contained in the report are true and correct. (a) The reported analyses, opinions and conclusions are limited only by the assumptions and limiting conditions set forth, and are my personal, unbiased professional analyses, opinions and conclusions. (c) I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. (D) I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. (E) My engagement in this assignment was not contingent upon developing or reporting predetermined results. (F) The appraiser's compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Furthermore, the appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. (G) The appraiser's analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the State of Florida for state -certified appraisers. (H) Use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. (I) J. Mark Quinlivan has made a personal inspection of the property that is the subject of this report. (7) Laneen Harrison provided professional assistance to the person signing this report. QUINLIVAN APPRAISAL 1 (K) The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. (I.) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, J. Mark Quinlivan has completed the requirements under the continuing education program for The Appraisal Institute. Based on the inspection of the property and the investigation and analyses undertaken, subject to the assumptions and limiting conditions set forth in the Addendum of this report, I have formed the opinion, as of May 12, 2001, the subject property had a Market Value of: NINETY-TWO THOUSAND FIVE HUNDRED DOLLARS ($92,500) 1 J. MARK QUINLIVAN, MAI STATE CERTIFIED GENERAL APPRAISER CERTIFICATION NUMBER: RZ0000I12 QUINLIVAN APPRAISAL 2 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Type Appraisal Complete Type Report Summary Purpose of Appraisal Market Value Property Rights Appraised Fee Simple Location 1341 N.W. 61 st Street Miami, Florida Land Size 5,300 square feet Improvements Age Zoning Highest and Best Use Two-story apartment building containing six 2 bedroom/1 bathroom units 1957 R-3, Multifamily Medium -Density Residential Existing multifamily residential use Indications of Value: Cost Approach Not Applicable Income Approach $92,500 Sales Comparison Approach $92,500 Final Estimate of Value $92,500 Date of Value Estimate May 12, 2001 Date of Report May 15, 2001 QUINLIVAN APPRAISAL 3 1341 N.W. 61"T STREET (MHZ 34) 1341 N.W. 615T STREET (MHZ 34) INTRODUCTION IDENTIFICATION OF THE PROPERTY A two-story apartment building containing six 2 bedroom/I bathroom units. LOCATION 1341 N.W. 61 st Street Miami, Florida PURPOSE AND DATE QY APPRAISAL The purpose of this Appraisal is to estimate the Market Value of the property as of May 12, 2001, being one of the dates of personal inspection. INTENDED USE AND USER OF THE APPRAISAL The intended use of this appraisal is to assist the client in determining an acquisition price. The intended user is the City of Miami. LEGAL DESCRIPTION Lot 32, Block 1, ORCHARD VILLA EXT., according to the Plat thereof, as recorded in Plat Book 17, Page 55, of the Public Records of Miami -Dade County, Florida. Source: Miami -Dade County tax records. PROPERTY RIGHTS APPRAISED The property is appraised in fee simple: a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power and taxation, as well as utility easements of record. QUINLIVAN APPRAISAL 4 ASSESSMENT AND TAXES - 2000 The subject property is assessed under the jurisdiction of the City of Miami. The assessment for the property is established each year as of January 1st by the Miami -Dade County Property Appraiser's Office at 100% of "Just Value." Just Value has been equated.to Market Value less closing costs. While the State of Florida requires real estate to be assessed at 100% of Just Value, in reality the ratio of the assessed value to sales price is generally below 100%. Folio Number: 01-3114-043-0190 Assessed Value: Land $ 9,779 Improvements $30.000 Total $39,779 Millage Rate: $27.384 per $1,000 Tax Amount: $1,539.32 OWNER OF RECORD AND ADDRESS Mr. and Mrs. Coley Williams, Jr. 1742 N.W. 49th Street Miami, Florida 33142-4072 FIVE-YEAR HISTORY OF TITLE Investigation of the Public Records of Miami -Dade County, Florida indicates no sale transfer of title to the subject property during the past five years. QUINLIVAN APPRAISAL 5 ESTIMATED EXPOSURE TIME Exposure time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. In estimating a reasonable exposure time for the subject property, the appraiser has taken the following steps: Discussion with buyers, sellers and brokers of apartment buildings in the area related to historic marketing periods. Based on the above sources, exposure time is estimated to have been six months for the subject property. ESTIMATED MARKETING PERIOD The estimated value of the subject is predicated upon a normal marketing period. A normal marketing period is generally defined as the most probable amount of time necessary to expose and actively market a property on the open market to achieve a sale. Implicit in this definition are the following assumptions: (A) The property will be actively exposed and aggressively marketed to potential purchasers through marketing channels commonly used by sellers and buyers of similar type properties. (B) The property will be offered at a price reflecting the most probable markup over market value used by sellers of similar type properties. (C) A sale will be consummated under the terms and conditions of the definition of Market Value required by the regulation. In order to estimate the marketability of this property, the sales activity in this market area is reviewed over the past three years, multiple listings are reviewed and real estate brokers who operate in this area are interviewed. Based on the above sources, the subject property could be sold within a six month time period. QUINLIVAN APPRAISAL 6 SITE DATA pimensions and Shape: The site is rectangular. The site fronts 50 feet, more or less, along the north side of N.W. 60th Street with a depth of 106 feet, more or less. Source: No survey of the site was furnished. The dimensions of the site are calculated from the legal description and the Hopkins Plat Book. Area: 5,300 square feet or .122 acres Source: No survey of the site was furnished. The size of the site based on the Transamerica Intellitect print out of the Miami -Dade County tax roll. Topographyd Drainage: The site is level and approximately at street grade. Flood Zone: Map N2 12025C0180J (Effective March 2, 1994) Areas determined to be outside 500-year flood plain. Soil and Subsoil: The immediate area of the subject site appears to have no unusual soil or subsoil conditions. Unusual conditions would be brought out by test borings. QUINLIVAN APPRAISAL 7 ( Utilities: Water: Miami -Dade Water and Sewer Authority Sewer: Miami -Dade Water and Sewer Authority Electricity: Florida Power & Light Company Telephone: BellSouth Telephone Company Street Improvements: N. W. 61st Street is an asphalt paved road with a dedicated width of 50 feet. N.W. 61st Street contains one east bound and one west bound lane. ZONING Under Ordinance of the City of Miami. Classification: R-3, MULTIFAMILY MEDIUM -DENSITY RESIDENTIAL HIGHEST AND BEST USE: The subject property is improved with a two-story apartment building. The existing apartment building is considered the Highest and Best Use of the site. QUINLIVAN APPRAISAL 8 6 AO SITE MAP (MHZ 34) N. WO 60 0 14 frJN /11 611 SO 61' Z NA, IS0D1-1" 10% 1059 A'0 1121. 0 Z2 it 0N w6105 80s1 to flZ18 1.t s 5 C=I MEE kW. s 44 0 0 00° $0° are \ (' a#D 6.662800 1110 0 0. 0//01.11 ILO 1 0 (RV " [Si Ete so tr) 0I 0: 4 r7.48,1 11 0 0 DI 1:11 TER. a 31 00 it tt " I 5•0 NO 11 22 000 Fri 11,0114., 2 IALL4V!, mER.: 0 At 58 QUINL1VAN APPRAISAL DESCRIPTION OF IMPROVEMENTS Age and Condition According to the Public Records of Miami -Dade County, the building improvements were constructed in 1957. From personal inspection of the property, the improvements appear to be in fair to average condition. Description The apartment building contains six 2 bedroom/1 bathroom units. Each unit contains a living room, kitchen, two bedrooms and one bathroom with an average size of 583 square feet. Size 2 (25' x 70') = 3,500 square feet Details of Construction Foundation: Steel reinforced poured concrete spread footings in excavation trench Exterior Walls: 8" concrete block stucco - painted Windows: Glass jalousie Roof: Flat, built-up tar and gravel Interior Walls: Plaster - painted Ceilings: Plaster - painted Floors: Vinyl Lighting: Incandescent QUINLIVAN APPRAISAL 9 Equipment and Fiaturgs Window security bars Sjte'or Yard Improvements Landscaping Parking (4 spaces) QUINLIVAN APPRAISAL 10 TWO—STORY 25' 1341 N.W. 61st Street 70' SCOPE OF THE APPRAISAL The appraisal of real estate is generally valuated by means of one or more of the following approaches: The Cost Approach The Income Approach The Sales Comparison Approach The Cost Approach In the Cost Approach, land and building are valued as though they were separate entities. The land value is first estimated as if vacant. Then, by consulting various cost services, local building contractors and by knowledge of construction costs, an estimate of the replacement cost new of the building is determined. Accrued depreciation from all sources including physical deterioration, functional and economic obsolescence must be deducted from this cost. The estimated land value is then added to the depreciated cost of the building to give the "depreciated replacement cost" of the property. The Cost Approach is based on the premise that the value of a commodity tends to be set by the cost of acquiring an equally desirable substitute. Applied to real estate, the assumption is that a person would not likely pay more for a property than it would cost him to acquire a suitable site and place an equally desirable building upon it. Costs would include direct cost of construction, indirect costs such as financing costs, land and developer's profit. The Cost Approach has most applicability when building improvements are new. With older properties, the estimate of depreciation becomes difficult and is subject to error, affecting the reliability of this approach. Accordingly, considering the age of this property, it is the appraiser's opinion that the Cost Approach has little applicability in this situation and was not utilized. Income Approach The Income Approach is based on the premise that the value of a property may be determined by the amount of net income it can reasonably produce over its remaining economic life. The rationale of the approach is that the present worth of a future income stream is equivalent to the value of the property which produces that income. QUINLIVAN APPRAISAL 11 Four basic steps comprise the Income Approach: Estimate the reasonable expectable annual gross income the property will likely produce. Deduct an allowance for vacancy and collection loss to arrive at the effective gross income. Deduct the annual expense of operation from the effective gross income to arrive at the annual net income. Capitalize the annual net income into an indication of value. The Sales Comparison Approach The Sales Comparison Approach is an attempt to measure the reactions of typical buyers and sellers. In this approach, a direct comparison is made between the property being appraised and comparable properties which have sold recently. These sales are compared for degrees of comparability such as location, size, age, zoning, time, the conditions of sale, financing and other pertinent data which would affect value. Adjustments are made for these factors in order to arrive at a reliable estimate of value. In this report, sales of apartment buildings in the same neighborhood are gathered and analyzed. Reconciliation After applying the three approaches, three separate indications of value are available for analysis. The indicated values obtained from each approach must be correlated into one final conclusion of value. Usually one approach will be considered more significant than the rest, either because of the reliability of the data, or because of the type of property involved. Reconciliation is the process by which each approach is objectively weighted according to its importance. QUINLIVAN APPRAISAL 12 INCOME APPROACH TO VALUE This approach to value is a technique in which the anticipated net income is processed to indicate the capital amount of the investment which produces the net income. The capital amount, called the capitalized value, in effect, is the sum of the anticipated annual rents less the Toss of interest until the time of collection. Income 6 2 BR/1 BA units @ $350 per month x 12 mos. = $25,200 Less: Vacancy & Collection Loss (10%) - 2.520 Effective Gross Annual Income $22,680 Expenses Management $ 1,360 Real Estate Taxes 1,539 Insurance 1,050 Water/Sewer Tenants Pay Repairs & Maintenance 2,400 Gas 1,734 Waste Removal 1,621 Miscellaneous 500 Total Net Operating Income $12,476 Capitalized @ 13.5% _ Value Indication by Income Approach (RD) $10,204 - 10,204 $12,476 $92,415 $92,500 QUINLIVAN APPRAISAL 13 Rental 1110e Analysis The subject units are rented as follows: 2 Bedroom/1 bath units $260 - $350 A summary of the comparable rentals is contained on a following page. Based on a careful analysis of the comparable rentals, the market rent for the subject units without Section 8 subsidies are estimated as follows: 2 Bedroom/1 bath units $350 Vacancy and Collection Loss A vacancy and collection loss allowance is a reduction in potential rental income due to space not leased or rents not collected. This allowance is generally expressed as a percentage of Potential Gross Income. The vacancy rates of the comparable rentals range from 0% to 25%. The subject building currently has two vacancies. The vacancy rates are reflective of the vacancy at the time of the rental survey and are not stabilized annual rates. Based on the above, a vacancy and collection loss allowance of 10% is considered applicable for the subject. Operating Expense Analysis The expenses were based on expense information obtained from the subject building and similar buildings. A summary of expense comparables is contained on a following page. QUINLIVAN APPRAISAL 14 $election of CapitalizationRgte Capitalization is a process which translates an income projection into an indication of value. The connecting link is a rate which reflects the return necessary to attract investment capital. Hence, the selection of an appropriate rate represents a critical factor in the capitalization process. sr,.. i ry w. •f i • 1 1299 N.W. 60 St. 09/25/98 $175,000 13.7% 4 1506 N.W. 69 Terr. 07/19/00 $111,000 12.3% 6 925 N.W. 69 St. 11/21/00 $ 85,000 10.6% 7 1319 N.W. 60 St. 12/01/00 $ 85,000 14.8% 9 1601 N.W. 62 St. 01/05/01 $320,000 15.5% QUINLIVAN APPRAISAL 15 COMPARABLE RENTALS Number Unit Adm of Units Ago Breakdown Rental Rates 1 1238 NW 58 Terr. 12 1964 10 —1/1 1/1—S275 2 Eff. Eff. — $250 2 1255 NW 58 St. & 36 1959 21--1/1 1/1--5285 13 --- 2/1 2/1— $315 2 --- Eff. Eff. -- $210 3 1600 NW 59 St. 4 1967 4 — 2/1 2/1— $300 4 1250 NW 60 St. 6 1958 6 —1/1 1/1 —$270 5 1425 NW 60 St. 22 1958 22 — 1/1 1/1 — $350 1256 NW 58 St. 6 6091 NW 15 Ave. 15 1957 8 —1/1 1/1 -- $225 6-2/1 2/1--$285 1 —3/2 3/2—$450 7 1435 NW 60 St. 12 1958 10 — 1/1 1/1— $495 (1) 2-2/1 1/1—$250 1/1— $350 2/1 — $675 (1) 2/1 — $675 (1) 8 1519 NW 60 St. 4 1961 2 — 1/1 1/1— $475 (1) 2 — 3/2 1/1— $350 3/2—$775 (1) 9 1341 NW 61 St. 6 1957 6 — 2/1 2/1 — $260 1/1 — $300 1/1 — $350 2 vacant units 10 1400 NW 61 St. 6 1959 4 — 1/1 1/1— $495 (1) 2-3/2 3/2—$775(1) 11 1371 NW 61 St. 6 1958 6 — 1/1 1/1 — $300 12 1520 NW 61 St. 18 1957 12 — 1/1 1/1 — $325 6-2/1 2/1—$425 (1) Section 8 Apt-ren.grd OPERATING EXPENSES (PER UNIT) ADDRESS 1238 NW S8 Tert 1255 NW 58 St 1600NW59St. 1258NW60St. 1425NW6ASt. 6091 NW IS Are. 1435NW60Si. 1519NW60St. 1341NW61St. 14NNW61S4 1371NW6ISL 1529114W61SL. (l) 1256 NW 58 St. No. of Units 24 36 4 6 22 15 FIXED EXPENSES: Roar Estate Taxes 5263 S230 S631 $461 5255 S265 Insurance 5166 536 5229 5225 S68 5240 VARIABLE OPERATING EXPENSES: Management Common Area Ekctricity 5200 525 564 Water & Seater 5225 5464 5301 5194 S245 Gas 5156 S255 S352 Waste Removal S92 5204 5179 SI31 557 5119 Repairs & Maintenance 5417 $363 $150 S300 S199 Legal & Prof_ Fees S52 S14 Miscellaneous 558 575 550 S20 (1) With the building located at 1245 N.W. 58th Street 12 4 6 6 S221 $ 169 S399 5155 5152 S520 S257 5500 5437 S200 S169 5169 S283 S56 5221 Te nen Pay S243 5289 5408 S270 5250 S392 5300 5306 i30R'' 5400 5159 OPERATING EXPENSES ADDRESS 1238 NW 58 Terr. 1255 NW 58 St. 1600 NW 59 St. 1258 NW 60 St. 1425 NW 60 SI. 6891 NW 15 Are. 1435 NW 68 St. 1519 NW 60 St 1341 NW 61 S1. 14N NW 61 St. 1371 NW 61 St. ISIW NW 61 St, (1) 1256NW58St No. of Units 24 36 4 6 22 15 12 4 6 6 6 18 FIXED EXPENSES: Real Estate Taxes 56,312 58276 S2,525 S2,763 55,600 S3,975 52,649 52.078 51339 $2,999 32,619 Insurance S3,990 S1,295 S915 $1.350 51.500 53,600 54,062 (2) $800 54,052'(2) 54.052 (2) S1,700 VARIABLE OPERATING EXPENSES: Management Common Arca Electricity 54,800 S897 S255 S336 Water & Sewer S5,400 $16,693 51,203 $1,164 55.400 S4,789 5882 Tenants Pay 52,518 $1,800 Gas S3,744 59,184 52.109 51.854 S970 S1.734 S1,134 Waste Removal 52.200 57,334 5714 5786 SI,260 S1.788 S1,825 51,630 S1,621 SI.497 52352 Repairs & Maintenance 510,000 S 13,050 5600 S 1,800 52.985 S8,000 (3) S8.000 (3) S8,000 (3) 58,000 (3) S2.400 Legal & Prof_ Fees 51,237 5512 Miscellaneous S1,400 S300 S300 S300 (1) With the building located at 1245 N.W. 581h Street (2) For 3 of 4 Williams' Buildings (3) For all 4 Williams' Buildings S5,000 SALES COMPARISONMMYROACH TO VALUE This approach to value is a technique in which the Market Value estimate is predicated upon prices paid in actual market transactions of similar properties. These similar, or comparable, transactions (sales) are adjusted to indicate a value to the subject. The Sales Comparison Approach is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. The following page contains a summary of sales of similar apartment buildings which have recently sold. Several other sales were considered by the appraiser, but were not included because there was too wide a difference in physical factors, location and time. In comparing the sales to the subject, consideration was given to factors of time, location, physical characteristics and terms and conditions of the sale. In this approach to value, four units of comparison were considered: the price paid per square foot, the price paid per room, the price paid per unit and the gross income multiplier. A Gross Income Multiplier (GIM) is a factor reflecting the relationship between gross annual income of real estate and its sale price or value. The rationale of the GIM Analysis is that both the sale price or value and the gross income of an income property are subject to the same market influences. They presumably move in the same direction and essentially the same proportion in response to market conditions, locational/environmental influences and amenities and functions offered by the property itself. The principal advantage of this technique is that the reflection of rental income is direct. Therefore, differences between properties, which could involve adjustments based on judgement estimates, have been resolved by the free action of the rental market. QUINLIVAN APPRAISAL 16 The unit prices of Sales 1, 4, 6, 7 and 9, which are considered most comparable to the subject property, range as follows: Sale No. 1 4 6 7 9 Price/S.F. $19.84 $24.76 $30.07 $18.58 $25.40 Price/Room $3,646 $3,472 $3,700 $2,500 $3,265 Price/Unit $14,583 $15,625 $18,500 $10,625 $11,429 GYM 3.35 3.72 4.51 2.83 2.93 Based on a careful analysis of the comparable sales, the subject property is estimated to have a value as follows: Price Paid/S.F. 3,409 S.F. x $25.00 per S.F. = $85,225 Price Paid/Room 27 rooms x $3,500 per room = $94,500 Price Paid/Ujit 6 units x $16,500 per unit = $99,000 $25,200 x 3.50 GIM = $88,200 Value Range $85,225 - $99,000 Most Probable Price $92,500 QUINLIVAN APPRAISAL 17 ....................... -.--...............,.... _- . .- -.. ...........................:::::. �:::::: - ............._..... _......................... .-.. ....... _................::.::r.,:.v.v::•:...::: --.. ............. ..::::: :v :. :.i:.ivtt::.:'s: .:::::.vw:. .:- -r::: -..;am s�?l:o:xbrxa:._?.._... r :nv :^.: Iv- .. .. ....... .... .:. v:: n4v u..G::j�;'+.,. r• :! n'b'::+i' .c :�:.i�.:Y:. a A.;L ::';::.. w:...+w : :.,::...+J-�o>........... .:3:. -vim.-F; �y, �� : � %77�$-::�E::s ..:c�yr: �� . rr.w�-.^........}+: `•JY'-:nlY\QN: $: �. � �---' . ... .�` 12/01/00 .. C::_ti4:;: �i-"v ' `3 s ��,.,R��:;-��s�, ,., �+ 01/05/01 :....... ,:'�]�1��::::. �::;..:�:::::......::: DATE OF SALE 09/25/98 07/19/00 11/21/00 SALE PRICE S175,000 $62,500 S111,000 S85,000 5320,000 r ADDRESS 1341 N.W. 61 St- 1299 N.W. 60 Si, 1506 N.W. 69 Terr. 925 N.W. 69 St. 1319 N.W. 60 St 1601 N.W. 62 SL LAND SIZE (S.F.) 5,300 21,200 4,500 7,150 7,800 13,600 BUILDING SIZE (S.F.) 3,409 8,820 2,524 3,691 4,574 10,428 UNITS 6 12 4 6 8 28 BUILDING AGE 1957 1960 1962 1963 1958 1953 CONDITION Fair/Average Average Good Average Fair Average ZONING R-3 R-3 R-3 R-3 R-3 C-1 OVERALL RATE 13.7% 12.3% 10.6% 14.8% 15.5% GIM 3.35 3.72 4.51 2.83 2.93 PRICE/S.F. OF BLDG. $19.84 $24.76 $30.07 $18.58 530.69 PRICE/ROOM $3,646 $3,472 $3,700 52,500 53,265 PRICE/UNIT $14,583 $15,625 518,500 SI0625 S11,429 n..,x RECONCILIATION AND VALUE CONCLUSION The reconciliation of the data and indicated value estimates is the final step in the appraisal process. Sufficient data has been assembled and analyzed for the purpose of judging the reactions of typical purchasers in the market place. In this report, the three accepted appraisal techniques were utilized. The value estimates indicated by these approaches resulted in the following: Cost Approach to Value Not Applicable Income Approach to Value $92,500 Sales Comparison Approach to Value $92,500 Cost Approach to Value The Cost Approach has the most applicability and will generally result in a truer estimate of value when the building improvements are new. Since the subject improvements have an actual age of 44 years, a large degree of judgement was required to estimate an effective age of improvements, hence the determination of depreciation is subject to error. Considering the above factors, the value indication from the Cost Approach was not developed for use in the final analysis. Income Approach to Value The data in this approach as to the quality, quantity and durability of the income was considered very good. The income and expenses were based on the actual income and expenses of the subject building and on comparable buildings. Net Income was capitalized by means of a direct capitalization method with an overall rate derived from market sales. Because this is an income producing property, this approach to value is given primary emphasis in the final analysis. QUINLIVAN APPRAISAL 18 Sales Comparison Approach to Value In reference to the Sales Comparison Approach, consideration has been given to sales that have taken place in the real estate market. These sales were analyzed and adjusted to the subject to reflect a market value estimate of the subject. The quality of the market sales in this approach to value was considered good. All of the sales are in the general location of the subject property and have similar income streams. Considering the quality of these sales, this approach to value was also given primary emphasis in the final analysis. Final Conclusion In the reconciliation process, the greatest weight should be given to the approach or approaches which produce the highest degree of confidence and which has been processed with a minimum of assumptions. Of equal importance is the reasonableness of the data and the reliability of the data. In consideration of the above, and for the reasons and conclusions contained herein, it is estimated that the Market Value of the subject property as of May 12, 2001 was: $92,500 QUINLIVAN APPRAISAL 19 ASSUMPTIONS AND LIMITING CONDITIONS v n. <P. M.l ,f.a PP+ This Appraisal Report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. If no survey has been furnished to the appraiser, all measurements have been confirmed either in the field, in the plat book or by other reliable sources and are presumed to be accurate. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the Appraisal Report. 9. It is assumed, unless a study has been provided otherwise, that no hazardous material such as asbestos, urea formaldehyde or other toxic waste exists in the property. The existence of a potentially hazardous material could have a significant effect on the value of the property. QUINLIVAN APPRAISAL 20 10. In reference to proposed construction, the real estate taxes and other expenses are estimated. These amounts are not guaranteed. 11. It is assumed in the valuation of the subject land site, unless a compliance letter has been furnished to us, that the State of Florida Growth Management Act does not prevent the issuance of a building permit. .' 12. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 13. It is assumed that the utilization of the land and improvements is within the boundaries of property lines of the property described and that there is no encroachment or trespass unless noted in the report. This Appraisal Report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation of this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety. 3. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. QUINLIVAN APPRAISAL 21 QUALIFICATIONS OF THE APPRAISER J. MARK QUINLIVAN Experience: Engaged in the field of real estate appraising since 1972. Associated with F. Robert Quinlivan, MAI, from 1972 to 1985. Currently President of Quinlivan Appraisal, P.A., a Real Estate Appraising and Consulting Firm, established in 1964. Graduate: University of Notre Dame BBA - Bachelor of Business Administration (Major in Finance and Business Economics) University of Maryland MBA - Master of Business Administration (Concentration in Finance) University of Miami Law School JD - Juris Doctor (Concentration in Real Estate and Taxation) Florida International University MSM - Master of Science in Management (Major in Real Estate) University of Miami MALS - Master of Arts in Liberal Studies (Humanities) Professional Affiliations: Member of the Appraisal Institute (MAI N2 5791) Member of the Florida Bar (N2 239992) Real Estate Broker, State of Florida (N2 0125264) Certified General Appraiser, State of Florida, License No RZ0000112 QUINLIVAN APPRAISAL 22 Qualified as an Expert Witness in the Following Courts: Miami -Dade, Broward, Palm Beach and Monroe County Circuit Courts United States Bankruptcy Court United States District Court Other Activities: Appraiser Special Master (1978 - 1980), Miami -Dade County Property Appraisal Adjustment Board Past President - Miami Chapter Ns 71, Society of Real Estate Appraisers (1983 - 1984) Past President - South Florida Chapter N4 24, Appraisal Institute (1988) s Past Governing Councilor of the American Institute of Real Estate Appraisers (1990) Young Advisory Council of Society of Real Estate Appraisers (1979 and 1980) Editorial Review Board (1981 - 1991) THE REAL ESTATE APPRAISER AND ANALYST published quarterly by the Society of Real Estate Appraisers Recent Publications: "Non -Conforming Use Properties: The Concept of Positive Economic Obsolescence", The Appraisal Journal, January 1981, Pages 45-51. (Arthur A. May Memorial Award 1982). QUINLIVAN APPRAISAL 23 Quin!Ivan Appraisal has prepared Appraisal Reports for the following: Institutions and Corporations: American Savings of Florida Archdiocese of Miami Atlantic Security Bank The Bank of Coral Gables Banco Atlantico Banco Industrial de Venezuela Banco Santander International Barnett Bank Barry University Ben Franklin Savings Bessemer Trust Company Capital Bank Central Bank Chevron Oil Company Chase Manhattan Bank Chase Federal Bank Chemical Bank Citibank Citicorp Savings City National Bank of' Miami Consolidated Bank Coral Gables Federal Savings and Loan Association County National Bank Crown Life Insurance Company Eagle National Bank East Little Havana Development Corporation Eastern National Bank Equibank of Pittsburgh Espirito Santo Bank First Nationwide Bank First Union Bank Florida Power and Light Company Hemisphere National Bank Intercontinental Bank International Bank of Miami, N.A. Jefferson Bank Jewish Home for the Aged, Inc. QUINLIVAN APPRAISAL 24 Marine Midland Bank McCaughan Mortgage Company, Inc. McDonalds Corp. Mega Bank Miami -Dade Water and Sewer Authority NationsBank Northern Trust Bank of Florida Ocean Bank Pacific National Bank Ready State Bank Resolution Trust Corporation Savings of America Shell Oil Company Skylake State Bank SunTrust Bank Swire Properties Texaco Terremark Totalbank Trade National Bank Trust for Public Lands UniBank Universal National Bank University of Miami Governmental Agencies: City of Coral Gables City of Hialeah City of Miami City of Miami Beach City of Miramar City of North Miami Beach Miami -Dade County Aviation Department Miami -Dade County Department of Development & Facilities Management Miami -Dade County HUD Miami -Dade County Property Appraisal Adjustment Board Miami -Dade County Public Schools Miami -Dade County Public Works Department Miami -Dade County Transportation Administration Federal Deposit Insurance Corporation (FDIC) QUINLIVAN APPRAISAL 25 Miami -Dade Water & Sewer Department South Florida Water Management District State of Florida, Department of Community Affairs State of Florida, Department of Corrections State of Florida, Department of Environmental Protection State of Florida, Department of Insurance State of Florida, Department of Rehabilitation and Liquidation State of Florida, Department of Transportation Town of Golden Beach United States Army Corps of Engineers United States Department of Commerce United States Department of the Interior United States General Services Administration Village of Key Biscayne Law Firms: Cole, Davidson, Carter, Smith, Salter & Barkett, P.A. Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. Dubbin, Berkman, Bloom & Karan Floyd, Pearson, Richman, Greer, Weil, Brumbaugh & Russomanno, P.A. Shuns & Bowen Kelley, Drye & Warren Blackwell & Walker Steel, Hector & Davis Mershon, Sawyer, Johnston, Dunwody & Cole Sullivan, Admire & Sullivan, P.A. Types of Propertie. Appraised: Single Family Residences Apartment Buildings Office Buildings Retail Stores Shopping Centers Condominium Apartment Buildings Golf Courses Residential Subdivisions Automobile Dealerships Vacant Land Hotel/Motels Warehouses Nursing Homes Mobile Home Parks Schools Service Stations Marinas Wetlands QUINLIVAN APPRAISAL 26 ( LOCATED AT: 1440 N.W. 61sT STREET MIAMI, FLORIDA PREPARE° FOR: CITY OF MIAMI 444 S.W. 2ND AVENUE, 3RD FLOOR MIAMI, FLORIDA 33130 As OF: MAY 12, 2001 PREPARED BY: QUINLIVAN APPRAISAL, P.A. 5730 S.W. 74TH STREET - SUITE 300 SOUTH MIAMI, FLORIDA 33143 J. MAUX QULN IVAN, MAI STATa•CaRTlllan GswNw. ArraAuaar RZ 0000112 May 15, 2001 QUINLIVAN APPRAISAL A PWOFI.SION*L ASSOCIATION IRRAL ESTATE APPRAISERS & CONSULTANTS 57130 S.W. 74T71 STREET, SUITE 300 SOUTH MIAiiI, FLORIDA 33143 TELEPHONE (1305) 6813.6611 FAX (305) 685-4921 Laura Billberry, Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue, 3rd Floor Miami, Florida 33130 Dear Ms. Billberry: THOMAS F. MAo$NHEIMBR, MAI Sews CaaTiraen (}aesaAz. ArraAisBaa RZ 0000650 In accordance with your request and authorization, I have prepared this Appraisal Report covering the following described property: Land parcel containing 5,300 square feet located at 1440 N.W. blst Street, Miami, Florida. The purpose of this Appraisal is to estimate the Market Value of the described property as of May 12, 2001, being one of the dates of personal inspection. The narrative Appraisal Report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. Based on the inspection of the property and the investigation and analyses undertaken, I have formed the opinion that, as of May 12, 2001, the subject property has a Market Value of: SEVEN THOUSAND TWO HUNDRED DOLLARS ($7,200) Respectfully submitted, Mark Quin van, MAI State Certified General Appraiser Certification Number: RZ0000112 JMQ/1h (01-051.88) TABLE OF CONTENTS TRANSMITTAL LETTER CERTIFICATION OF VALUE 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 3 INTRODUCTION Identification of the Property 4 Location 4 Purpose and Date of Appraisal 4 Intended Use and User of Appraisal 4 Legal Description 4 Property Rights Appraised 4 5 Owner of Record and Address 5 History of Title 5 Estimated Exposure Time 6 Estimated Marketing Period 6 SITE DATA Dimensions and Shape 7 Area 7 Topography and Drainage 7 Flood Zone 7 Soil and Subsoil 7 Utilities 7 Street Improvements 8 ZONING 8 HIGHEST AND BEST USE 8 SCOPE OF THE APPRAISAL 9 LAND VALUE 10 ADDENDUM Assumptions and Limiting Conditions 11 Qualifications 13 Assessment and Taxes QUINLIVAN APPRAISAL CERTIFICATION OF VALUE The undersigned hereby certifies that, to the best of my knowledge and belief: (A) (B) The statements of fact contained in the report are true and correct. The reported analyses, opinions and conclusions are limited only by the assumptions and limiting conditions set forth, and are my personal, unbiased professional analyses, opinions and conclusions. (c) I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. (D) I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. (E) My engagement in this assignment was not contingent upon developing or reporting predetermined results. (F) The appraiser's compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Furthermore, the appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. (G) The appraiser's analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the State of Florida for state -certified appraisers. (u) Use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. (i) J. Mark Quinlivan has made a personal inspection of the property that is the subject of this report. (J) Laneen Harrison provided professional assistance to the person signing this report. QUINLIVAN APPRAISAL 1 (K) The reported analyses, opinions? and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. (L) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, J. Mark Quinlivan has completed the requirements under the continuing education program for The Appraisal Institute. Based on the inspection of the property and the investigation and analyses undertaken, subject to the assumptions and limiting conditions set forth in the Addendum of this report, I have formed the opinion, as of May 12, 2001, the subject property has a value as follows: SEVEN THOUSAND TWO HUNDRED DOLLARS ($7,200) J. MARK QUINLIVAN, MAI STATE CERTIFIED GENERAL APPRAISER CERTIFICATION NUMBER: RZ0000112 QUINLIVAN APPRAISAL 2 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Type Appraisal Type Report Purpose of Appraisal Property Rights Appraised Location Legal Complete Self -Contained Market Value Fee Simple 1440 N.W. 61st Street Miami, Florida Lot 8, Block 9, Orange Heights, Plat Book 14, Page 62, of the Public Records of Miami -Dade County, Florida. Land Size 5,300 Square Feet Improvements None Zoning R-3, Multifamily Medium -Density Residential Highest and Best Use Single family residence, duplex or multifamily residential Estimated Land Value $7,200 Final Estimate of Value $7,200 Date of Value Estimate May 12, 2001 Date of Report May 15, 2001 Remarks This site is vacant. QUINLIVAN APPRAISAL 3 1440 N.W. 619` Street (MHZ 88) INTRODUCTION IDENTIFICATION OF THE PROPERTY Land parcel containing 5,300 square feet. LOCATION 1440 N.W. 61st Street Miami, Florida PURPOSE AND DATE OF APPRAISAL The purpose of this Appraisal is to estimate the Market Value of the property as of May 12, 2001, being one of the dates of personal inspection. INTENDED USE AND USER OF APPRAISAL The intended use of this appraisal is to assist the client in determining an acquisition price. The intended user is the City of Miami. LEGAL DESCRIPTION Lot 8, Block 9, ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Miami -Dade County, Florida. PROPERTY RIGHTS APPRAISED The property is appraised in fee simple: a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power and taxation, as well as utility easements of record. QUINLIVAN APPRAISAL 4