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Home My WebLink Aboutexhibit 2- appraisal report 5R.-2 Two -Family Residential. Intent and Scale: Areas designated as two-family or duplex residential allow the construction of up to a two -unit residential structure (either attached or detached) on a typical lot. The typical lot size has minimum dimensions of fifty (50) feet of frontage by one hundred (100) feet of depth. This category allows a maximum density of eighteen (18) units per net acre or approximately two'h thousand five hundred (2,500) square feet per unit. Allowed within this district, and subject to apecific limitations, are supporting services such as places of worship, primary and secondary schools, daycare and community based residential facilities. Intensity: Minimum lot size: Five thousand (5,000) square feet. Setbacks: Front - twenty (20) feet; side - five (5) feet; rear - twenty (20) feet for principal use structures and ten (10) for accessory use structures. Minimum lot width: Fifty (50) feet. Height: Maximum of twenty-five (25) feet from flood level or average sidewalk elevation, whichever is higher. Floor area ratio: Maximum of six -tenths (0.60) times the gross lot area. Building footprint: Maximum of four -tenths (0.40) times the gross lot area. Green space: Minimum of fifteen -hundredths (0.15) times the gross lot area. Permitted Principal Uses: 1. One (1) dwelling unit per lot of record or two (2) dwelling units per lot of record. 2. Community based residential facilities, licensed by FHRS, for six (6) or fewer clients (not including drug, alcohol or correctional rehabilitation facilities and dangerous mentally ill persons) when located at least one thousand (1,000) feet from any existing J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 44 - • similar facility measured from the nearest point of theiiite` bf thy' the nearest point of the'sita of the propoqed 1a4ility, provided they are r the planning, building and zoning department pursuant to section 994 .1. 3. Community based residential facilities, licensed by FHRS, with from seven (7) to a maximum of fourteen (14) clients (not including drug, alcohol or correCticnal rehabil- itation facilities and dangerous mentally i11 persons)'wh n located It least,one ''f.4. 'n �a ill, a�N 7+JJ['"S.ii 7� a least. thousand two hundred (1,200) feet from any existing similar facility, at le ltve4 ,, hundred (500) feet from any R-1,district,__£neasured frem the neartit pint on; zoning district boundary or from the nearest point of the site of the e g facility to the nearest point of the site of the proposed facility, provided they are re4istered with the planning, building and zoning department pursuant to section 934.1. 4. Occupancy of private pleasure craft as living quarters, and housebar'g are prohib- ited except those private pleasure craft and housebargds specifically II! ittod on the Miami River, by section 941 as listed in Attachment A,j Ordinance Na o1 s 32, adopted October 24, 1991. . fi Permitted Accessory Uses: i Uses and structures which are customarily incidental and subordinate to permitted principal uses and structures, including specifically: Same as for R-1 Single -Family Residen- tial. Conditional Principal Uses: Same as for R-1 Single -Family Residential. Conditional Accessory Uses: Same as for R-1 Single -Family Residential. Offstreet Parking Requirements: Dwellings: Same as for R-1 Single -Family Residential. Child care centers: Same as for R-1 Single -Family Residential. Community based residential facilities: Same as for R-1 Single -Family Residential. Places of worship: As for GII. A reduction of up to twenty-five (25) percent in required offstreet parking shall be permissible by Special Exception, provided findings are made that clearly show such reduction is reasonable based on such factors as facility proximity to mass transit, facility visitation policy, possible negative impact on the neighborhood, and the like. Sign Regulations: Same as for R-1 Single -Family Residential. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 45 - 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 - 47 - SELF-CONTAINED APPRAISAL REPORT OF REAL PROPERTY (JOB NO: A-2233 / GROUP 17) LOCATED AT 1691 N.W. 58TH TERRACE (MHZ-282) MIAMI, FLORIDA DATE OF VALUATION: JULY 16, 2002 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 J.B. ALHALE & ASSOCIATES, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 3121 COMMODORE PLAZA, SUITE 200 COCONUT GROVE, FLORIDA 33133-5846 JOZEF ALHALE, MAI STATE CERTIFIED GENERAL APPRAISER NO. RZ0001557 July 26, 2002 Ms. Laura Billberry Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue Miami, Florida 33130 Re: Job .No: A2233 / 17th Group RFQ No: 99-00-271 MHZ-282: 1691 N.W. 58th Terrace, Miami, Florida Dear Ms. Billberry TEL: (786) 552-0960 FAX: (786) 552-0970 E-Mall: Jbalhale@aol.com Pursuant to your request for an appraisal of the above referenced property, I sgbmi native appraisal report: I have made a physical inspection of the subject property, and performed market :research to provide - an estimate of the. Highest and: Best Use, and the Market Value of the. Fee,' Simple Interest in the subject property in its current"as is".condition, as of July 16, 2002. t ts: my estimate that the Market Value ._of the Fee Simple. Interest hi the subject property in •current "as is". condition,, as of July 16, 2002, was: 1691 N.W. 58TH TERRACE,' MIAMI (MI Z`'282) MARKET VALUE OF FEE, SIMPLE INTEREST IN "AS' IS" CONDITION FOUR.THOUSAND iiTVE:.HUNDREID DOLLARS TABLE OF CONTENTS PAGE NO. SUMMARY OF SALIENT FACTS AND CONCLUSIONS 1 PHOTOGRAPHS OF SUBJECT PROPERTY 2 PURPOSE/FUNCTION OF THE APPRAISAL 3 SCOPE OF THE APPRAISAL PROPERTY RIGHTS APPRAISED 3 DATE OF VALUATION 3 STATEMENT OF OWNERSHIP AND HISTORY 3 ESTIMATED MARKETING PERIOD 4 DEFINITION OF MARKET VALUE 4-5 NEIGHBORHOOD ANALYSIS 5 DESCRIPTION OF THE SITE 5-6 UTILITIES 6 FLOOD ZONE 6 ZONING 6-7 ASSESSMENT AND REAL ESTATE TAXES 7 MARKET OVERVIEW $-19 THE VALUATION PROCESS 20 THE SALES COMPARISON APPROACH (LAND VALUATION) 21-23 RECONCILIATION AND FINAL VALUE ESTIMATE 24 CONTINGENT AND LIMITING CONDITIONS 25-26 CERTIFICATION 27 ADDENDA 28 LAND SALES 29-35 LETTER OF ENGAGEMENT 36 CONTINUING APPRAISAL EDUCATION (Jozef Alhale, MAI) 37 QUALIFICATIONS (Jozef Alhale, MAI) 38 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Sulte 200 • Coconut Grove, Florida 33133 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Location: Address: Folio No: Owner of Record: Legal Description: Site Area: Description: Flood Zone: Zoning: Highest and Best Use: Approximately 158.80 feet east of the northeast corner of N.W. 17th Avenue and N.W. 58th Terrace, Miami, Florida MHZ-282 1691 N.W. 58th Terrace, Miami, Florida 01-3114-035-2600 Willette Brown 17211 N.W. 47th Court Miami, Florida 33055 The western 1/2 of Lot 10, Block 14, Orange Heights, as recorded in Plat Book 14, Page 62 of the Public Records of Miami -Dade County, Florida 2,650 SF The subject property consists of a 2,650 SF vacant site. The subject property is level at street grade, with 25 feet of frontage along N.W. 58th Terrace, and a depth of 106 feet. Flood Zone "X" - Areas determined to be outside 500-year flood plain; National Flood Insurance Program, Community Panel Number 12025C-0180J, as revised March 2, 1994. R-3 Multi -Family Medium Density Residential District The Highest and Best Use of the subject site, as vacant, would be for its assemblage with the adjacent site(s) for the development of a multi -family apartment building, under an affordable housing program, within the constraints of the applicable zoning criteria. Property Rights Appraised: Fee Simple Interest Date of Appraisal, Inspection and Valuation: July 16, 2002 MARKET VALUE ESTIMATES IN "AS IS" CONDITION: Sales Comparison Approach to Value: $4,500 Reconciled Market Value: $4,500 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -1- 1 View of the subject property (MHZ-282) 1691 N.W. 58th Terrace - July 16, 2002 J.B. ALHALE & ASSOCIATES, INC. Seal Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 2 - 1 PURPOSE/FUNCTION OF THE APPRAISAL The purpose of this appraisal report is to provide an estimate of the Highest and Best Use, and the Market Value of the Fee Simple Interest in the subject property in its current "as is" condition, as of July 16, 2002. The function of this appraisal report is to assist the client (City of Miami) in executive decision making and potential purchase of the subject property. SCOPE OF THE APPRAISAL I have made a physical inspection of the subject property, and performed market research to provide an estimate of the Highest and Best Use, and the Market Value of the Fee Simple Interest in the subject property in its current "as is" condition, as of July 16, 2002. The scope of the appraisal involves the research and analysis of factual data relative to the subject property, as well as market data necessary for the development of the Sales Comparison Approach to Value. The subject property is a vacant site and therefore, the Income Capitalization and Cost Approaches to Value have not been utilized. The data and information used in developing our findings, projections and valuation estimates have been derived from published information, direct interviews, analysis of similar properties and other sources which were considered appropriate, as of the date of this report. PROPERTY RIGHTS APPRAISED This appraisal report assumes marketable and insurable fee simple title. The appraisal is made with the understanding that the present ownership of the property includes all the rights that may be lawfully held under a fee simple estate. Fee simple is defined in The Dictionary of Real Estate Appraisal, 1984 Edition, which was sponsored by the American Institute of Real Estate Appraisers as follows: Absolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain, escheat, police power and taxation. DATE OF VALUATION July 16, 2002. STATEMENT OF OWNERSHIP AND HISTORY The last transfer of title was from Adella Wilson to Willette Brown for $100 through a quit -claim deed on June 23, 1996, as recorded in Book 17274, Page 4551 of the Official Public Records of Miami -Dade County, Florida. There was no other arm's-length transfer of ownership at the subject property within the last five years, as per the Public Records of Miami -Dade County, Florida. J.B. ALHAt E & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -3- ESTIMATED MARKETING PERIOD Based on my analysis of the market, it is my opinion that if the subject property was listed for sale with an experienced Realtor, the marketing period would be approximately six to twelve months. This marketing period is considered to represent the most probable amount of time necessary to expose and actively market the subject property to achieve a sale consistent with the Market Value. DEFINITION OF MARKET VALUE Market Value is defmed in The Appraisal of Real Estate, Tenth Edition, by the Appraisal Institute as follows: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest and assuming that neither is under undue duress. Fundamental assumptions and conditions presumed in this definition are: 1. Buyer and seller are motivated by self-interest. 2. Buyer and seller are well informed and are acting prudently. 3. The property is exposed for a reasonable time on the open market. 4. Payment is made in cash, its equivalent, or in specified financing terms. 5. Specified fmancing, if any, may be the financing actually in place or on terms generally available for the property type in its locale on the effective appraisal date. 6 . The effect, if any, on the amount of Market Value of atypical fmancing, services, or fees shall be clearly and precisely revealed in the appraisal report. Market Value is defmed as per current Federal regulatory agency criteria as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. J.B. ALHALE E & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -4- DEFINITION OF MARKET VALUE -- Continued -- Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and acting in what they consider their own best interests; c. a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in U.S, dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. NEIGHBORHOOD ANALYSIS The subject property is located along N.W. 58th Terrace, between N.W. 15th Avenue and N.W. 17th Avenue, in the City of Miami. The major roadways serving the area include Interstate 95, N.W. 17th Avenue (just west of the subject property), N.W. 12th Avenue, N.W. 54th Street (four blocks south of the subject property) and N.W. 62nd Street (four blocks north of the subject property). The subject neighborhood is a compatible mixture of single-family dwellings, duplexes, fourplexes, rental apartments and vacant lots, as well as service establishments situated along, N.W. 54th Street, N.W. 17th Avenue and N.W. 62nd Street. The condition of properties in the subject neighborhood are poor to average. DESCRIPTION OF THE SITE The 2,650 SF subject interior site has 25 feet of frontage along the north side of N.W. 58th Terrace, with a depth of 106 feet. The site is level at street grade, and does not have any apparent drainage or other problems which would restrict or limit the use of the site. No soil boring tests or engineering reports were submitted to the appraiser; however, the site is assumed to have stable subsoil conditions as do most properties in the immediate area. We have not been informed of an adverse subsoil condition revealed by an environmental assessment conducted by a firm with experience in identifying such substances, nor are we qualified to detect such substances that may exist. For valuation purposes, we have assumed that the subject site would be typical for properties located in the subject area with no apparent soil problems which would restrict or limit the usage of the site. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -5- DESCRIPTION OF THE SITE -- Continued -- If any adverse subsoil conditions are identified and do exist, these conditions would have a material affect on the Market Value of the subject property. Our analysis assumes the property to be free of any adverse subsoil conditions, and is subject to the satisfactory removal of any existing contaminating materials in accordance with technical, environmental and governmental guidelines. UTILITIES The public utilities available to the subject site include electricity, water, sewer, and telephone service. Police and fire protection services are provided by the City of Miami. FLOOD ZONE Flood Zone "X" - Areas determined to be outside 500-year flood plain; National Flood Insurance Program, Community Panel Number 12025C-0180J, as revised March 2, 1994. ZONING The subject property is located within R-3 Multi -Family Medium Density Residential. The intent of the R-3 zoning classification is to allow for a variety of multi -family uses including low to mid -rise apartment structures with a maximum density of 65 units/acre and a maximum floor area ratio of .75. Uses permitted within the R-3 District include, but are not limited to, two-family buildings, multi -family buildings, hotels/motels (limited areas), adult -care facilities, churches, and child-care facilities. Minimum lot size: 5,000 SF Minimum Lot Width: 50 feet Maximum Density: Floor Area Ratio: Building Footprint: Green Space: Maximum Height: Setback: 65 units/acre .75 times the gross lot area .40 times the gross lot area .15 times the gross lot area 50 feet from the flood level or average sidewalk elevation, whichever is higher Front - 20 feet Side - 10 feet Rear - 10 feet, except when abutting R-1 and R-2 districts, in which case it will be 20 feet J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -6- ZONING -- Continued -- Off-street Parking: One parking spacel300 SF of office area; one parking space per efficiency and 1-BR units and two spaces per 2-BR units. The 2,650 SF subject vacant site does not meet the minimum site area requirement, and would typically be assembled with adjacent site(s) to create a viable site for development. ASSESSMENT AND REAL ESTATE TAXES The subject property is located within the City of Miami and is subject to both the City of Miami and Miami -Dade County ad valorem taxes on real and personal property. The subject property is assessed at $6,001, with resultant real estate taxes of $487.27. J.S. ALHA E & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -7- MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW Rental Apartment Market According to the Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., the vacancy rate in mature (18 months and older) rental apartment complexes in Dade County was 4.0% in February 2002; 3.1 % in November 2001; 2.4% in August 2001; 2.0 % in May 2001; 2.2% in February 2001; 2.1 % in November 2000; 1.8% in August 2000; 2.49% in May 2000; 1.9 % in February 2000; 2.8% in November 1999; 3.0 % in August 1999; 4.1 % in May 1999; 4.3 % in February 1999; 4.7 % in November 1998; 4.9% in August 1998; 5.2% in May 1998; 5.5% in February 1998; 5.5% in November 1997; and 2.8% in August 1997. It appears that after a period of declining vacancy rates, the vacancy rate in Miami -Dade County has been steadily increasing in the four quarters from 2.2% in February 2001 to 4.0% in February 2002. The Northwest Miami sub -market had a vacancy rate of 1.8% in August 2000 for 1,304 units; 1.8% in November 2000 for 2,223 units; 2.7% in February 2001 for 2,223 units; 1.5 % in May 2001 for 1,304 units; 2.4 % in August 2001 for 1,304 units; 3.2 % in November 2001 for 1,304 units; and 8.7% in February 2002 for 1,304 units. At the end of December 2001, there were 754 new never before occupied rental units available throughout Dade County. This is slightly more than the 682 units available in September 2001. This inventory represents 5.3 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 5,500 new apartment units in Dade County, the inventory could total 2,750 units without being excessive. At the end of September 2001, there were 682 new never before occupied rental units available throughout Dade County. This is considerably more than the 459 units available in June 2001. This inventory represents 8.9 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 3,964 new apartment units in Dade County, the inventory could total 1,982 units without being excessive. At the end of June 2001, there were 459 new never before occupied rental units available throughout Dade County. This is considerably more than the 126 units available in March 2001. This inventory represents only 7.1 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,955 new apartment units in Dade County, the inventory could total 2,478 units without being excessive. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -8- MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) At the end of March 2001, there were 126 new never before occupied rental units available throughout Dade County. This is more than twice the 57 units available in December 2000. This inventory represents only .8 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,380 new apartment units in Dade County, the inventory could total 2,190 units without being excessive. At the end of December 2000, there were 57 new never before occupied rental units available throughout Dade County. This is notably less than the 164 units available in September 2000. This inventory represents only .2 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,004 new apartment units in Dade County, the inventory could total 2,002 units without being excessive. At the end of September 2000, there were 164 new never before occupied rental units available throughout Dade County. This is notably less than the 310 units available in June 2000. This inventory represents only .7 month of supply at the rate of absorption of new units over the past six months. At the end of June 2000, there were 310 new never before occupied rental units available throughout Dade County. This is somewhat more than the 120 units available in March 2000. This inventory represents only 2.5 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,004 new apartment units in Dade County, the inventory represents less than one month of supply. At the end of March 2000, there were 231 new never before occupied rental units available throughout Dade County. This is somewhat more than the 120 units available in December 1999. This inventory represents only 2.8 month of supply at the rate of absorption of new units over the past six months. Based on the estimated annual demand for 4,004 new apartment units in Dade County, the inventory represents less than one month of supply. According to the first quarter 2002 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the fourth quarter of 2001, a total of 528 new rental apartment units were absorbed in Dade County. This is 61.5 % more than the 327 units absorbed in the preceding quarter, but 23.9% less than the 694 units absorbed in the fourth quarter of 2000. During 2001, the 1,245 new apartment units absorbed was 48.2% less than the 2,404 units absorbed during 2001. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 ' Coconut Grove, Florida 33133 -9- MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) According to the fourth quarter 2001 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the third quarter of 2001, a total of 324 new rental apartment units were absorbed in Dade County. This is 2.4 times more than the 135 units absorbed in the preceding quarter, but 66.9% less than the 980 units absorbed in the third quarter of 2000. Through September 2001, a total of 714 new apartment units were absorbed, 58.2% less than the 1,710 units absorbed during the same period in 2000. According to the third quarter 2001 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the second quarter of 2001, a total of 135 new rental apartment units were absorbed in Dade County. This is 47.1 % less than the 255 units absorbed in the preceding quarter. During the first half of 2001, a total of 390 new apartment units were absorbed, 46.6 % less than the 730 units absorbed during the first half of 2000. According to the second quarter 2001 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the first quarter of 2001, a total of 255 new rental apartment units were absorbed in Dade County. This is 63.3 % less than the 694 units absorbed in the preceding quarter. During 2000, a total of 2,404 new apartment units were absorbed, 2.1 times the 1,139 units absorbed during 1999. According to the first quarter 2001 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the fourth quarter of 2000, a total of 694 new rental apartment units were absorbed in Dade County. This is 2.8 times the 246 units absorbed in the preceding quarter. According to the fourth quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the third quarter of 2000, a total of 980 new rental apartment units were absorbed in Dade County. This is almost the twice as the 485 units absorbed in the preceding quarter, and is 3.5 times greater than the 281 units absorbed in the third quarter of 1999. Through September 2000, a total of 1,710 new apartment units were absorbed, 91.5 % more than the 893 units absorbed during the same period in 1999. According to the third quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the second quarter of 2000, a total of 485 new rental apartment units were absorbed in Dade County. This is almost the twice as the 245 units absorbed in the preceding quarter, and is 55.9 % greater than the 311 units absorbed in the second quarter of 1999. Through June 2000, a total of 730 new apartment units were absorbed, 19.3 % more than the 612 units absorbed during the same period in 1999. S.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 10- MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) According to the second quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the first quarter of 2000, a total of 245 new rental apartment units were absorbed in Dade County. This is almost the same as the 246 units absorbed in the preceding quarter, and is 18.6% less than the 301 units absorbed in the first quarter of 1999. During 1999, a total of 1,139 new apartment units were absorbed, 19.6% less than the 1,416 units absorbed in 1998. According to the first quarter 2000 Housing Report prepared by Reinhold P. Wolff Economic Research, Inc., during the fourth quarter of 1999, a total of 246 new rental apartment units were absorbed in Dade County. This is 12.5 % less than the 281 units absorbed in the preceding quarter, and is 43.1 % less than the 432 units absorbed in the fourth quarter of 1998. A total of 600 new apartment units were completed in Dade County during the fourth quarter of 2001, while only 157 new units were under construction. New apartment starts during 2001 totaled 1,697 units, down 56.2% from the 3,878 units started during 2000. New unit completions totaled 1,980 units during 2001, down 15.4% from the 2,341 units completed during 2000. A total of 547 new apartment units were completed in Dade County during the third quarter of 2001, while no new units were under construction. New apartment starts during the first three quarters of 2001 were 1,540 units, down 45.5% from the 2,825 units started during the same period in 2000. A total of 509 new apartment units were completed in Dade County during the second quarter of 2001, while 485 new units were under construction. New apartment starts during the first half of 2001 were 1,540 units, down 2.7% from the 1,583 units started during the first half of 2000. A total of 324 new apartment units were completed in Dade County during the first quarter of 2001, while 1,055 new units were under construction. New apartment starts in 2000 were 3,878 units, 3.3 times the 1,183 units started during 1999. New unit completions totaled 2,341 units in 2000, 2.8 times the number of units completed in 1999. A total of 587 new apartment units were completed in Dade County during the fourth quarter of 2000, while 1,053 new units were under construction. A total of 834 new apartment units were completed in Dade County during the third quarter of 2000, while 1,242 new units were under construction. New apartment starts through September 2000 were 2,825 units, 4.7 times the 595 units started during the same period in 1999. New unit completions totaled 1,754 units through September 2000, 3.3 times the number of units completed in the same period in 1999. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 11 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) A total of 564 new apartment units were completed in Dade County during the second quarter of 2000, while 525 new units were under construction. New apartment starts through June 2000 were 1,583 units, 9.5 times the 166 units started in the first half of 1999. New unit completions totaled 920 units through June 2000, 2.8 times the number of units completed in the same period in 1999, A total of 356 new apartment units were completed in Dade County during the first quarter of 2000, while 1,058 new units were under construction. New apartment starts during 1999 were 1,183 units, 52.9% less than started in 1998. New unit completions totaled 834 units in 1999, down 43.7% from the 1,481 units completed in 1998. For the six month period ending with December 2001, an average of 143 new rental units were absorbed each month. A total of 754 new units were available at the end of December 2001, and this represented 5.3 month of supply at the pace of absorption over the past six months. During the six month period, an average of 191 units were being completed each month, while 81 units were started each month. For the six month period ending with September 2001, an average of 77 new rental units were absorbed each month. A total of 682 new units were available at the end of September 2001, and this represented 8.9 month of supply at the pace of absorption over the past six months. During the six month period, an average of 176 units were being completed each month, while 81 units were started each month. For the six month period ending with June 2001, an average of 65 new rental units were absorbed each month. A total of 459 new units were available at the end of June 2001, and this represented 7.1 month of supply at the pace of absorption over the past six months. During the six month period, an average of 139 units were being completed each month, while 257 units were started each month. For the six month period ending with March 2001, an average of 158 new rental units were absorbed each month. A total of 126 new units were available at the end of March 2001, and this represented .8 month of supply at the pace of absorption over the past six months. During the six month period, an average of 152 units were being completed each month, while 351 units were started each month. For the six month period ending with December 2000, an average of 279 new rental units were absorbed each month. A total of 57 new units were available at the end of December 2000, and this represented .2 month of supply at the pace of absorption over the past six months. During the six month period, an average of 237 units were being completed each month, while 383 units were started each month. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 12 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) For the six month period ending with September 2000, an average of 244 new rental units were absorbed each month. A total of 164 new units were available at the end of September 2000, and this represented .7 month of supply at the pace of absorption over the past six months. During the six month period, an average of 233 units were being completed each month, while 295 units were started each month. For the six month period ending with June 2000, an average of 122 new rental units were absorbed each month. A total of 310 new units were available at the end of June 2000, and this represented 2.5 months of supply at the pace of absorption over the past six months. At the estimated annual demand level for apartments in Dade County, the inventory represents less than one month of supply. During the six month period, an average of 153 units were being completed each month, while 264 units were started each month. For the six month period ending with March 2000, an average of 82 new rental units were absorbed each month. A total of 231 new units were available at the end of March 2000, and this represented 2.8 months of supply at the pace of absorption over the past six months. At the estimated annual demand level for apartments in Dade County, the inventory represents less than one month of supply. During the six month period, an average of 110 units were being completed each month, while 274 units were started each month. For the six month period ending with December 1999, an average of 88 new rental units were absorbed each month. A total of 120 new units were available at the end of December 1999, and this represented 1.4 months of supply at the pace of absorption over the past six months. At the estimated annual demand level for apartments in Dade County, the inventory represents .4 month of supply. During the six month period, an average of 84 units were being completed each month, while 170 units were started each month. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $17.00 to $938 from November 2001 to February 2002. The February 2002 overall average rent is 4.87 % higher than the $895 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 7.4%. During the most recent three month period, one -bedroom rents increased by $8 to $824, two -bedroom rents increased by $13 to $1,029 and three -bedroom rents increased by $6 to $1,232. Efficiency unit rents increased by $17 to $672. Changes in projects participating in the surveys from one period to another can result in considerable fluctuations for efficiency and three -bedroom units where the supply is more limited. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 13 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) The overall average monthly rent for apartments in mature rental developments in Dade County increased by $9.00 to $921 from August 2001 November 2001. The November 2001 overall average rent is 5.1 % higher than the $876 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 4.0 % . During the most recent three month period, one -bedroom rents increased by $6 to $817, two - bedroom rents remained unchanged at $1,016 and three -bedroom rents declined by $30 to $1,226. Efficiency unit rents declined by $17 to $656. Changes in projects participating in the surveys from one period to another can result in considerable fluctuations for efficiency and three -bedroom units where the supply is more limited. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $5.00 to $912 from May 2001 to August 2001. The August 2001 overall average rent is 5.6% higher than the $864 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 4.2 %. During the most recent three month period, one -bedroom rents increased by $21 to $811, two -bedroom rents increased by $9 to $1,016 and three -bedroom rents increased by $17 to $1,256. Efficiency unit rents increased by $2 to $673. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $12.00 to $907 from February 2001 to May 2001. The May 2001 overall average rent is 7.7 % higher than the $842 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 5.2%. During the most recent three month period, one -bedroom rents increased by $7 to $790, two -bedroom rents increased by $16 to $1,007 and three -bedroom rents increased by $19 to $1,239. Efficiency unit rents increased by $14 to $671. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $19.00 to $895 from November 2000 to February 2001. The February 2001 overall average rent is 8.7 % higher than the $823 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 8.8%. During the most recent three month period, one -bedroom rents increased by $22 to $783, two -bedroom rents increased by $19 to $991 and three -bedroom rents increased by $16 to $1,220. Efficiency unit rents increased by $10 to $657. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $12.00 to $876 from August 2000 to November 2000. The November 2000 overall average rent is 8.8% higher than the $805 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 5.6%. During the most recent three month period, one -bedroom rents increased by $2 to $761, two -bedroom rents increased by $24 to $972 and three -bedroom rents increased by $3 to $1,208. Efficiency unit rents increased by $16 to $647. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 14- 1 MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Rental Apartment Market (Continued) The overall average monthly rent for apartments in mature rental developments in Dade County increased by $22.00 to $864 from May 2000 to August 2000. The August 2000 overall average rent is 8.7 % higher than the $795 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 10.4%. During the most recent three month period, one -bedroom rents increased by $23 to $759, two - bedroom rents increased by $21 to $948 and three -bedroom rents increased by $27 to $1,205. Efficiency unit rents increased by $25 to $631. The overall average monthly rent for apartments in mature rental developments in Dade County increased by $19.00 to $842 from February 2000 to May 2000. The May 2000 overall average rent is 7.4% higher than the $787 average rent found a year earlier. The annualized rate of increase in rents over the past three months is 9.2%. During the most recent three month period, one -bedroom rents increased by $17 to $736, two -bedroom rents increased by $20 to $927 and three -bedroom rents increased by $32 to $1,174. Efficiency unit rents increased by $19 to $606. 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. For the Northwest Miami sub -market, the overall average monthly rent was $689 or $1.038/SF for 476 one -bedroom apartments with an average size of 664 SF; $828 or $.895/SF for 784 two -bedroom apartments with an average size of 924 SF; and $1,008 or $.909/SF for 42 three -bedroom apartments with an average size of 1,108 SF in February 2002. For the Northwest Miami sub -market, the overall average monthly rent was $689 or $1.028/SF for 476 one -bedroom apartments with an average size of 670 SF; $822 or $.918/SF for 784 two -bedroom apartments with an average size of 896 SF; and $1,008 or $.9091SF for 42 three -bedroom apartments with an average size of 1,108 SF in November 2001. For the Northwest Miami sub -market, the overall average monthly rent was $675 or $1.007/SF for 476 one -bedroom apartments with an average size of 670 SF; $802 or $.894/SF for 784 two -bedroom apartments with an average size of 896 SF; and $918 or $.829/SF for 42 three -bedroom apartments with an average size of 1,108 SF in August 2001. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 a Coconut Grove, Florida 33133 - 15 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW --- Continued -- Rental Apartment Market (Continued) For the Northwest Miami sub -market, the overall average monthly rent was $676 or $1.009/SF for 476 one -bedroom apartments with an average size of 670 SF; $802 or $.895/SF for 784 two -bedroom apartments with an average size of 896 SF; and $918 or $.829/SF for 42 three -bedroom apartments with an average size of 1,108 SF in May 2001. For the Northwest Miami sub -market, the overall average monthly rent was $664 or $.991/SF for 476 one -bedroom apartments with an average size of 670 SF; $770 or $.859/SF for 784 two -bedroom apartments with an average size of 896 SF; and $904 or $.815/SF for 42 three -bedroom apartments with an average size of 1,108 SF in February 2001. For the Northwest Miami sub -market, the overall average monthly rent was $651 or $.972/SF for 476 one -bedroom apartments with an average size of 670 SF; $756 or $.843/SF for 784 two -bedroom apartments with an average size of 896 SF; and $889 or $.802/SF for 42 three -bedroom apartments with an average size of 1,108 SF in November 2000. For the Northwest Miami sub -market, the overall average monthly rent was $647 or $.965/SF for 476 one -bedroom apartments with an average size of 670 SF; $743 or $.829/SF for 784 two -bedroom apartments with an average size of 896 SF; and $859 or $.775/SF for 42 three -bedroom apartments with an average size of 1,108 SF in August 2000. Based on this analysis, the rental rates within the subject sub -market appear to be lower than the Miami -Dade County average figures. J.B. ALIIALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 16- MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Condominium Apartment Market According to the 1st Quarter 2002 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 1,640 new condominium units were sold in Dade County during the 4th Quarter of 2001. The 4th quarter sales were 2.5 times the 665 units sold in the 4th Quarter of 2000. New condominium sales during 2001 have totalled 3,730 units, up 21.1 % from the 3,079 units sold during 2000. According to the 4th Quarter 2001 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 665 new condominium units were sold in Dade County during the 3rd Quarter of 2001. The 3rd quarter sales were 18.2% less than the 813 units sold in the 3rd Quarter of 2000. New condominium sales during the nine months of 2001 have totalled 2,090 units, down 4.8 % from the 2,196 units sold during the same period in 2000. According to the 3rd Quarter 2001 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 813 new condominium units were sold in Dade County during the 2nd Quarter of 2001. The 2nd quarter sales were 32.8 % more than the 612 units sold in the 2nd Quarter of 2000. New condominium sales during the first half of 2001 have totalled 1,425 units, up 2.9% from the 1,385 units sold during the first half of 2000. According to the 2nd Quarter 2001 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research, Inc., a total of 612 new condominium units were sold in Dade County during the 1st Quarter of 2001. The 1st quarter sales were 30.7% less than the 883 units sold in the 1st 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 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. 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. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 17 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Condominium Apartment Market - Continued 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. 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 1st Quarter of 1999. The 1st quarter sales were 9.8% less than the 701 units sold in the 4th Quarter of 1998. New condominium sales during 1998 have totalled 3,459 units, down 11.4% from the 3,906 units sold during 1997. According to the lst 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. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Conunodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 18 - MULTI -FAMILY RESIDENTIAL MARKET OVERVIEW -- Continued -- Condominium Apartment Market - Continued 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. In the Miami Shores/Northwest Miami sub -markets, 38 units were sold in the 4th quarter of 2001, no units were sold in the 3rd quarter of 2001, 21 units were sold in the 2nd quarter of 2001, 12 units were sold in the 1st quarter of 2001, no units were sold in the 4th quarter of 2000, 4 units were sold in the 3rd quarter of 2000, 9 units were sold in the 2nd quarter of 2000, 14 units were sold in the 1st quarter of 2000, no units were sold in the 4th quarter of 1999, 3 units were sold in the 3rd quarter of 1999, no units were sold in the 2nd quarter of 1999 and 2 units were sold in the 1st quarter of 1999. J.B. Ai HALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 19 - THE VALUATION PROCESS The valuation process is defined in the 1993 Edition of the Dictionary of Real Estate Appraisal which was sponsored by the Appraisal Institute as follows: A systematic procedure employed to provide the answer to a client's question about the value of real property. The 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 vacant residential sites in the subject neighborhood and the subject property. These comparable sales are then adjusted for the differences between them and the subject property, utilizing the sale price/SF method of comparison. Refer to the Addenda section, for the comparable sales. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 20 - THE SALES COMPARISON APPROACH LAND VALUATION In order to estimate the value of the subject site, the land is analyzed as if vacant and available to be put to its Highest and Best Use. There are several different techniques which can be utilized in the valuation of land. The technique selected must relate to the specific factors inherent in the appraisal problem at hand. The land valuation technique selected must reflect the prudent and rationale behavior of the most probable, typically informed purchaser/investor. In addition, the availability of reliable and verified market data further leads to the selection of the applicable land valuation technique. 1. The Sales Comparison Approach analyzes the sales of similar vacant sites of land with comparison and adjustment made from these sales to the subject site. 2. The Abstraction Method analyzes the sales of improved properties with an allocation made between land and improvement value. The indicated allocation may establish a typical ratio of land value to total value or to derive from the portion of the sales price allocated to land an estimate of land value for use as a comparable land sale. 3. The Cost of Development Method provides an estimate of the value of undeveloped land based upon the creation of a platted subdivision, development and sale of said parcel. The method assumes that the most probable purchaser of the land would be a developer/investor who plans to dispose of the developed sites at a profit. The costs of development are subtracted from the estimated proceeds of sale resulting in a net income projection which is discounted over the market absorption period. 4. The Land Residual Method treats the net income available to support the investment in the site as a residual. The income required to cover the investment in new improvements that represent the Highest and Best Use of the site is deducted from the Net Operating Income resulting in an estimate of the net income to the land which is then capitalized to estimate the land value. The Sales Comparison Approach has been selected as the most applicable method to provide an indication of the Market Value of the subject site. This method is based on the principle of substitution which states that a prudent purchaser/investor would pay no more for a given site than the cost of acquiring an alternative site with the same utility. The validity of this approach is very much dependent on the availability or quantity, as well as the relevancy or quality of the data. The Sales Comparison Approach is based on a comparison between recently sold comparable sites and the subject site, utilizing the price/SF method of comparison. The sales data sheets (refer to the Addenda) and the accompanying chart illustrate some of the characteristics of the sales. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -21 - THE SALES COMPARISON APPROACH TO VALUE LAND VALUATION - Continued -- Continued -- Subject 2190e613 Address Folk No Site Btu (6F) BIM Ellie (Acre) Zoning Floor Area Ratio (FAR) Su9dable Aran Date o1 Bak Consideration Financing Sale Price Bak Price/6F Bele Pdo5/6F o1 Base Buildable Area Tana Adjustment Time Adjusted Sale Price Time Adjusted Bete Prim Sale PrttNSF of Base Buldeda Area ADJUSTMENTS; Location: Frontage/Exposure: Bile / Scale: Coatlguretkn: Development Potanla Total: Adjusted Prlca Adjusted Prise/SP of Lard Area: Adjusted Pdce/6F of Buildable Ana: 1001 N.W. 66th Terrace MINN 01.9114-035-2600 MHZ-262 2.650 0.06 R-3 0.75 1,955 Land Bala 1 COMPARABLE VA -CANT RESIDENTIAL LAND 6ALE6 Land Land Land 11011..1 6010 4 Lend 6a1.5 Land I LE Land Bala..L 1436 N.W. 1241 N.W. 5551 N.W. 5552 N.W. 1656 N.W. 1200 N.W. 16wr N.W. 61 at Street 561h Tone 7th Court Oth Avenue 651h Street 50th Street 001h 61reet MINN Miami Miami Mlaml Mleml Miami MIamFOede Co. 01.3114-035.1520 01-3114-043-1310 01.3114-030.0070 01-3114-030-0370 01-3114-016-0230 01.3114-043-1170 30-3115.005-6430 5,300 6,900 4,050 4,365 3,600 5,300 4,000 0.12 0.12 0.09 O.10 0.05 0.12 0.09 R-3 R•3 R-2 19-2 R-2 R-3 RIl-2 0.75 0.76 0.50 0.60 0.60 0.75 0.50 3,975 3,975 2,446 2,619 2,160 3,976 2,400 3/012002 3/6/2002 2/20/2002 111101200/ 10/30/2001 2/16/2002 6/4/2001 00,500 $9,500 56,300 59,500 37,000 310,000 $5,200 Cash to Cash to Cash 10 Cuh to Cash to Cuh to Cuh to the Behr 0te Sala the Beler the Baler the Baler the Seller the Seller 19,600 $9,500 S6,300 $0.600 $7,000 910,000 $1.70 11.79 11.30 92.11 $1.94 81.59 15,200 31.30 62.31 12.39 12.17 93,43 $3.24 / 12.e2 $2.17 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19,600 $1.70 31.39 $0,500 55,300 31,500 0.7,000 $10,000 $1.79 31.30 32.16 51.94 91.69 $335 $2.17 43.13 $3.24 $3.52 55,200 $1.30 $2.17 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.014 0.0% 5.0% 5.0% 0.0% 5.0% 0.0% 6.0% 0.0% 0.0% 0.0% 0.0% 0,0% 0.0% 0.0% 0.0% dA,Oli -16.0% :LDS .10_0% :3R% , digs :.66 -10.0% -10.0% -5.0% •5.0% •5.0% -10.0% -6.0% 1e.909 11,e00 45,000 39,000 11,700 99,000 14,100 11.e3 31.13 41.23 92.01 11.59 31.70 11.23 12.11 13.19 12.04 13.44 $3.10 12.29 13,04 J.B. Ai HALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 22 - THE SALES COMPARISON APPROACH TO VALUE -- Continued -- MHZ-282 - 1691 N.W. 58TH TERRACE, MIAMI The comparable land sales are considered similar to the subject site in terms of zoning, location, physical characteristics, topography and buildable utility. The sales represent bona -fide "arm's length" transactions which represent prevailing market values. Our analysis has taken into account those differentials relative to financing, time of sale, location, size, zoning and developmental potential of the sites as they compare to the subject site. Based on the preceding analysis (refer to the summary chart), $2.25/SF to $2.50/SF of buildable area (comparable sales indicate an adjusted average of $2.46/SF) and $1.50/SF to $1.75/SF of site area (comparable sales indicate an adjusted average of $1.62/SF) are reasonable value estimates: 1,988 SF x $2.25/SF = 1,988 SF x $2.50/SF = 2,650 SF x $1.50/SF = 2,650 SF x $1.75/SF = $4,473 $4,970 $3,975 $4,638 Market Value of Fee Simple Interest $4,500 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 23 - RECONCILIATION AND FINAL VALUE ESTIMATE MARKET VALUE ESTIMATES IN "AS IS" CONDITION: Sales Comparison Approach to Value: $4,500 Reconciled Market Value: $4,500 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 vacant residential sites in the subject neighborhood and the subject property. These comparable sales are then adjusted for the differences between them and the subject property, utilizing the sale price/SF method of comparison. Refer to the Addenda section, for the comparable sales. It is my estimate that the Market Value of the Fee Simple Interest in the subject property in its current "as is" condition, as of July 16, 2002, was: 1691 N.W. 58TH TERRACE, MIAMI (MHZ-282) MARKET VALUE OF FEE SIMPLE INTEREST IN "AS IS" CONDITION FOUR THOUSAND FIVE HUNDRED DOLLARS ($4,500) J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 -- 24 - CONTINGENT AND LIMITING CONDITIONS We assume no responsibility for matters legal in nature, nor do we render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership and management. When applicable, the sketch in this report is included to assist the reader in visualizing the property, and we assume no responsibility for its accuracy. We have made no survey of the property. We are not required to give testimony or appear in court because of having made this appraisal, with reference to the property in question, unless arrangements have been previously made thereof. Additional professional valuation services rendered would require further compensation under a separate contractual agreement. Where applicable, the distribution of the total valuation in this report between land and improvements applies only under the existing program of utilizations. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. We assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. We assume no responsibility for such conditions or for engineering which might be required to discover such factors. Information, estimates and opinions furnished to us and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by us. Neither all nor any part of the contents of this report, or copy thereof, shall be used for any purpose by any but the client without the previous written consent of the appraiser, and/or the client; nor shall it be conveyed by any including the client to the public through advertising, publications, news, sales or other media, without the written consent and approval of the author, particularly the valuation conclusions, identity of the appraiser, or any reference to any professional society or institute or any initialed designation conferred upon the appraiser. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of Florida for state certified real estate appraisers, as well as current Federal regulatory agency criteria. No one other than the undersigned prepared the analyses, conclusions and estimates concerning the real estate set forth in this appraisal. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 25 - CONTINGENT AND LIMITING CONDITIONS -- Continued -- The existence of hazardous materials, which may or may not be present on the property, was not observed. We have no knowledge of the existence of such materials on or in the property, nor are we qualified to detect such substances. The presence of potentially hazardous materials and/or substances may affect the value of the property. The value estimate reflected in this appraisal report is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the "ADA". It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the "ADA" could reveal that the property is not in compliance with one or more of the requirements of the Act. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirement of "ADA" in estimating the value of the property. J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 26 - CERTIFICATION The undersigned do hereby certify that, to the best of our knowledge and belief, except as otherwise noted in the appraisal report: The statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and correct. - The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, unbiased professional analyses, opinions and conclusions. - We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. The amount of our compensation is not contingent upon an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. - Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of Florida for state certified real estate appraisers, as well as current Federal regulatory agency criteria. - The appraisal assignment has not been based on a required minimum valuation, a specific valuation, or the approval of a loan. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives, as well as the Florida Real Estate Appraisal Board. As of the date of this report, Jozef Alhale has completed the requirements of the continuing education program of The Appraisal Institute. The appraiser has personally inspected the subject property which is described in this report. No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report, nor provided significant professional assistance to the persons signing this report. It is the opinion of the undersigned that the Market Value of the Fee Simple Interest in the subject property in its current "as is" condition, as of July 16, 2002, was as described herein. Jozef Alhale, MAI State Certified General Appraiser License No. RZ 0001557 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 27 - J.B. AL,HALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 28 - Comparable Residential Land Sale One Location: 1436 N.W. 61 st Street, Miami, Florida Legal Description: Lot 9, Block 9, Orange Heights, as recorded in Plat Book 14, Page 62 of the Public Records of Miami - Dade County, Florida Folio No: Grantee: Grantor: O.R. Book/Page: Site Size: Zoning: Floor Area Ratio: Maximum Buildable Area: Date of Sale: Consideration: Financing: Cash Equivalent Sale Price: Cash Equivalent Sale Price/SF of Site Area: Cash Equivalent Sale Price/SF of Buildable Area: 01-3114-035-1520 City of Miami Harry Franzus 20265/3189 5,300 SF (.12 acre) R-3 City of Miami - Medium Density Multi -Family Residential District .75 3,975 SF March 8, 2002 $9,500 Cash to the seller $9,500 $1.79 $2.39 J.E. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 29 - Comparable Residential Land Sale Two Location: 1241 N.W. 58th Terrace, Miami, Florida Legal Description: Lot 23, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Folio No: 01-3114-043-1310 Grantee: City of Miami Grantor: Word of Life Community Development Corporation O.R. Book/Page: 20265/3064 Site Size: 5,300 SF (.12 acre) Zoning: R-3 City of Miami Medium Density Multi -Family Residential District Floor Area Ratio: .75 Maximum Buildable Area: 3,975 SF Date of Sale: March 6, 2002 Consideration: $9,500 Financing: Cash to the seller Cash Equivalent Sale Price: $9,500 Cash Equivalent Sale PricelSF, of Sid Area: $1.79 as Cash Equivalent -Sale Price/SF of Buildable Area: $2.39 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 30 - Comparable Residential Land Sale Three Location: 5561 N.W. 7th Court, Miami, Florida Legal Description: Lot 9, Block 1, Westdale 2nd Amended Plat, as recorded in Plat Book 11, Page 30 of the Public Records of Miami -Dade County, Florida Folio No: 01-3114-030-0070 Grantee: At Homes of Miami Grantor: Mia Daley O.R. Book/Page: 20224/2779 Site Size: 4,080 SF (.09 acre) Zoning: R-2 City of Miami - Low Density Multi -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 2,448 SF Date of Sale: February 20, 2002 Consideration: $5,300 Financing: Cash to the seller Cash Equivalent Sale Price $5,300 Cash Equivalent Sale Price/SF of,Site Area: e-• Cash Equivent Sale Price/SF of fundable Area: $1f30 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 31 - Comparable Residential Land Sale Four Location: 5552 N.W. 9th Avenue, Miami, Florida Legal Description: Lot 1, Block 5, Westdale 2nd Amended Plat, as recorded in Plat Book 11, Page 30 of the Public Records of Miami -Dade County, Florida Folio No: 01-3114-030-0370 Grantee: Better Homes Development Corporation Grantor: Pamela L. Givans O.R. Book/Page: 20058/1221 Site Size: 4,365 SF (.10 acre) Zoning: R-2 City of Miami - Low Density Multi -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 2,619 SF Date of Sale: November 19, 2001 Consideration: $9,500 Financing: Cash to the seller Cash Equivalent Sale Price: $9,500 Cash Equivalent Sale u, Price/SF of Site Area: 2,1$. Cash Equivalent Sale. Price/SF of Buildable Area: $3.63 L.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Coaumodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 32 - Comparable Residential Land Sale Six Location: 1290 N.W. 59th Street, Miami, Florida Legal Description: Lot 1, Block 7, Orchard Villa Extension, as recorded in Plat Book 17, Page 55 of the Public Records of Miami -Dade County, Florida Folio No: 01-3114-043-1170 Grantee: City of Miami Grantor: Emma M. Brassfield O.R. Book/Page: 20226/1687 Site Size: 5,300 SF (.12 acre) Zoning: R-3 City of Miami - Medium Density Multi -Family Residential District Floor Area Ratio: .75 Maximum Buildable Area: 3,975 SF Date of Sale: February 18, 2002 Consideration: $10,000 Financing: Cash to the seller Cash Equivalent Sale Price: $10;0 Cash Equivalent Sale Price/SF of Site Area: ' $1.89 Cash Equivalent Sale Price/SF of Buildable Area: $2.5 • J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 34 - Comparable Residential Land Sale Seven Location: 18xx N.W. 69th Street, Miami -Dade County, Florida Legal Description: Lot 35, Block 22, Liberty City, as recorded in Plat Book 7, Page 79 of the Public Records of Miami -Dade County, Florida Folio No: 30-3115-005-6430 Grantee: Citywide Development Corporation Grantor: R. Bush O.R. Book/Page: 19718/3485 Site Size: 4,000 SF (.09 acre) Zoning: RU-2 Miami -Dade County - Two -Family Residential District Floor Area Ratio: .60 Maximum Buildable Area: 2,400 SF Date of Sale: June 4, 2001 Consideration: $5,200 Financing: Cash to the seller Cash Equivalent Sale Price: $5,200 Cash Equivalent Sale Price/SF of Site Area: $1.30 Cash Equivalent Sale Price/SF of Buildable Area: $2.17 J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 35 - C.,itv 4ttmi LAURA t3ILLBFRRY Director June 28, 2002 Mr. Joseph B. Alhale, MAI J.B. Alhale and Assoc., Inc. 3121 Commodore Plaza, Ste. 200 Miami, FL 33133 RE: Job Number A2233 - 17th Group See attached exhibit for subject properties. Dear Mr. Alhale: CARLOS A. GIMENEZ City Manager Sent via Facsimile This will be your authorization to provide appraisal reports for the subject properties described above in accordance with your response to our solicitation. Please provide this office with the Market Value under the highest and best use of the fee simple interest in accordance with the scope of work attached hereto. You are encouraged to review City of Miami files for any pertinent data regarding the analysis. It is understood and agreed that you will furnish the City of Miami two (2) copies of your analysis and estimate of the "Market Value". Your fee will not exceed your quote in response to our Request for Appraisal Quote dated October 1. 2001. This report must be completed within 30 days from the date of this letter. City staff will review the appraisal and submit comments as necessary. Should you have any questions please contact Dirk Duval, Pr6perty Management Representative at (305) 416-I458. Sincerely, uBil erry, $hector Office of Asset Management 12lmavlmv/ddapp46:AulboA2233-1 T.doc OFFICE OF ASSET MANAGEMENT 444 S.W. 2nd Avenue, 3rd Floor/Miami, Florida 33136/(305) 416-1450/Fax: (305) 416.2156 Mailing Address: P.O. Box 330708/Miami, Florida 33233-0708 J.B. ALHAi E & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 36 - JO2EF ALHALE, MA1 3121 Commodore Plana, Suit. 200, Coocnul Grow, Florida 33133 TaI:1786165243920 Fix: 17861552-0970 WE (:0LIRFFr4FMIIJAR TIT! F CODE EiClOaa 5/21-22/2002 Coupe 800: Saparatln8 Real Property from InningWW. Bushes Muts ACE01.13 15.0 7/302001 Caaa Studio; In Comman:la! Highest and Oast Use ACE402008311428 7.0 10/2612000 Florida Blahs Law and USPAP Review for Real Eslata Appraisers ACE986338522 7.0 9/27/2000 Padiel Inlaresl Valuation • Undlvidsd ACE1437464596 7.0 3/3/7000 Rsoression Analysis In Apprelul Practice: Concepts and Applications ACE050643585 7.0 2/29/2000 Federal Appraisal Requirernand ACEN2123675501 3.0 1W15-16/1990 Course 330ApaftrnentAppraisal: ConceptsandApplications ACE5268 16,0 10.4/1992 Madding sad Defending an Appraisal ACE2160 3.5 W13/1229 PartiallntareaiValuation- Divided ACE7003 7,0 7/24/1990 The Good, Mrs Bad and Ina Appraisal Board' ACE2174 3.0 6/1/1998 M Maids Wewaf sulks and alandards ACE2203 3.0 W14/1006 7 How USPAP'Cora" Law for Appraisan ACE1281 7.0 7/10/1906 Tha impact ofContaminalion an Roe Estella Value ACE2143 3.0 6/12-13/1988 MandarW of Profassional Predict, Part C ACE1o59 16.0 6/2/1506 Loss Prawn9ah foe Appraisers ACE2070 3,0 4/3/1995 Small Hotal/Molef Vauaton ACE2080 7.0 2/20/1998 Appra1u/ Mu Management ACE2044 7.0 1131/1806 Non-awdumMg Una ACE2048 3.0 9/6/1097 Appralnt cf Traaslr .We Dsvalopmenl Rights ACE1965 3.0 7/8/1997 NAIFA Fair Landing Coma 504 7.0 11/18/1906 Awaits] o(Burials Nome Faclti5u ACE1675 7.0 7/13/1906 The'08 Data Eadrangs/RoundyW. for Income Prop.Nes ACE1S25 3.0 2/3/1908 Internal and BnApprdur ACE1750 3.0 WIWI025 Tha Appralnr ss Doan %%eu ACE1631 7.0 2/4/1695 Real Estata EvaivaBanl and the Appraisal Induauy ACE1612 3.0 10/14/1994 Bevan Hour USPAP "Core' Law ForAppraisers ACE1261 7.0 6/6H894 UMW Appraisals and R,pnrling Opdona ACE1567 7.0 7/13.16/1894 Blanden/a al Prolesaional Practice, Parts A and B 4108.420 27.0 811/1804 Vul6catiw of Marka1 Data ACE1532 3,0 , 4/16/1994 Power Una Enameled and EMF Seminar ACE1465 3,0 2/12/1094 Americana *la Diubi9un Ad IADAj +laminar ACE1482 4.0 Wit/1993 Holed Valuation ACEI006 3.0 4/17/1993 Why the CROW' isAlways 'I0'7 ACE1263 3.0 0i2191692 Education: TM Now Osneratlon ACEI203 3,0 9117.10/1092 HolsifMolel Mulct !Rudy, Valuation 6 155aimar5 ACE1250 14.0 2/1/1092 Practical Approaches ta Appraising Troubled PrepuOas ACE292 W16/1951 Overview of Recall Changes Changes m 8tarduds ACE091 3.0 WII/1900 SubrivfsionAnaysis • ACE9S0 7.0 6124-30/1590 Raped Writilp and Valua5gr Analysts EXA142.2 11.0 2/24.3/31 1990 Casa Studies in RBI baste Valuation EXAM2-1 39,0 0/23-11/4 1g15 Caplla8ra8on Theory and Tedinkfues, Put B EXMI11041 39.0 salt/ 10611 Standards ofProlusionalPre i 6PP 24.6 2/44/161609 Capitalization Thworyand Techniques, Parl A EJWMIB.A 30.0 0/17.10/221055 Real Estate Appraisal Prim/piss EMMIM1 36A 9Y10.1W161nns Basic VaklalanProcessions EXAMI1A-2 SSE e): A6 nwuw&samYwa eponwrad and riven by ear Appraisal kutiWWa. TOTAL ABZO ].�. ALHALE se ASSOCIATES, INC. Real Estate Appraisers and Consultants J.B. ALHALE & ASSOCIATES, INC. Real Estate Appraisers and Consultants 3121 Commodore Plaza, Suite 200 • Coconut Grove, Florida 33133 - 37 - JOZEF ALHALE, MAI 3121 Commodore Plaza, Suite 200 Miami, Florida 33133 QUALIFICATIONS Experience: Fourteen 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 - 38 - LOCATED AT: 1691 N.W. 58TH TERRACE MIAMI, FLORIDA PREPARED FOR: CITY OF MIAMI 444 S.W. 2ND AVENUE, 3RD FLOOR MIAMI, FLORDA 33130 AS OF;. JULY 17, 2002 FREPAREP BY: QUINLIVAN APPRAISAL, P.A. 5730 S.W. 74TH STREET - SUITE 300 SOUTH MIAMI, FLORIDA 33143 Ouma ivAN. APPRAISAL A Paopa.NIoIAL AeeocuTiox REAL ESTATE APpRAISMIN & CONeuLTANTe 5700 S.W. 74TH STREET, SurrB 800 SOUTH MIAD3I, FLoaIDA 08148 J. MARK QUnvxaVAN, MAI STATE•CZNITIPIND GIINENAL Arrrwrsair az 0000112 July 17, 2002 Laura Billberry, Director Office of Asset Management City of Miami 444 S.W. 2nd Avenue, 3rd Floor Miami, Florida 33130 Dear Ms. Billberry: TELEPHONE (805) 888-8811 FAX (005) 885.4921 Txo) .AS F. MAGENEBmruu, MAI S?AI-C=r1Tma 071171A1. APIMAK0-- aZ 0000550 In accordance with your request and authorization, we have prepared this Appraisal Report covering the following described property: Land parcel containing 2,650 square feet located at 1691 N.W. 58th Terrace, Miami, Florida. The purpose of this Appraisal is to estimate the Market Value of the described property as of July 17, 2002, 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 July 17, 2002 Page 2 Based on the inspection of the property and the investigation and analyses undertaken, we have formed the opinion that, as of July 17, 2002, the subject property has a Market Value of: FOUR THOUSAND TWO HUNDRED FIFTY DOLLARS tfully sub ark Quin van, MAI to Certified General Appraiser ertifiga io umber: RZ0000112 LO"n en F. Harrison State Registered Assistant Appraiser Certification Number: RI0007253 JMQ/lh (02-124MHZ282) ($4,250) 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 Assessment and Taxes . 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 QUINLIVAN APPRAISAL CERTIFICATION OF VALUE Y+ 6ay:�qu.i4'g•.:fr:•�;; 'SfMCv {d.;.;..•r, 'y ,'yr{ .,vr.v,, , ..6s''.<c';. c: S 1,11..00: •S.of psi:; `;C �d, � �•'td akv yr � N�.�: r ux% as: The undersigned hereby certifies that, to the best of our knowledge and belief: (A) The statements of fact contained in the report are true and correct. (B) 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) We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. (D) We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. (E) Our engagement in this assignment was not contingent upon developing or reporting predetermined results. (F) The appraisers' 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) (H) (i) (1) The appraisers' 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. 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. J. Mark Quinlivan and Laneen F. Harrison have made a personal inspection of the property that is the subject of this report. No one other than the undersigners provided professional assistance to the persons 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, we have formed the opinion, as of July 17, 2002, the subject property has a Market Value of: FOUR THOUSAND TWO HUNDRED FIFTY DOLLARS ($4,250) ARIL QUIN IVAN, MAI TE CERTIFIED GENERAL APPRAISER ERTIFICATION NUMBER: RZ0000112 LANEEN F. HARRISON STATE REGISTERED ASSISTANT APPRAISER CERTIFICATION NUMBER: RZ0007253 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 Address 1691 N.W. 58th Terrace Miami, Florida Location North side of N.W. 58th Terrace between N.W. 15th Avenue and N.W. 17th Avenue Legal W%2 of Lot 10, Block 14, Orange Heights, Plat Book 14, Page 62, of the Public Records of Miami -Dade County, Florida. Land Size 2,650 Square Feet Zoning R-3, Multifamily Medium -Density Residential Highest and Best Use Residential usage Estimated Land Value $4,250 Final Estimate of Value $4,250 Date of Value Estimate July 17, 2002 Date of Inspection July 17, 2002 Date of Report July 17, 2002 QUINLIVAN APPRAISAL 3 SUBJECT PROPERTY SUBJECT PROPERTY QUINLIVAN APPRAISAL