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HomeMy WebLinkAboutExhibit EMARKET RENT ESTIMATE OF WAREHOUSE/STORAGE/GARAGE BUILDING 3501 RICKENBACKER CSWY, MIAMI, FLORIDA 33149 FEE OWNER: CITY OF MIAMI EFFECTIVE DATE OF APPRAISAL DECEMBER 1, 2023 PREPARED FOR MS. ASHLEY MCGREGOR SPECIAL PROJECT ASST. DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT CITY OF MIAMI 444 SW 2ND AVENUE, 3RD FLOOR MIAMI, FLORIDA 33130 1`h URBAN r{gutp MLCSECIIR MI ERA cocirmin The URBAN miliiCrroup lAU 1 1E L Mgt Cammills REAL ESTATE ADVISORS I PROGRAM MANAGERS I REAL ESTATE APPRAISERS December 14, 2023 Ms. Ashley McGregor Special Project Asst. Department of Real Estate and Asset Management City of Miami 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 Re: Estimate of Market Rent Warehouse/Storage/Garage Building And Vacant Boat Rack Area 3501 Rickenbacker CSWY, Miami, Florida 33149 Folio: 01-4217-000-0030 Dear Mr. McGregor: Per your request, we have reviewed the above captioned property for the purpose of providing you with a market rent estimate for the 638 square foot CBS warehouse/storage/garage building on a reported 1,368 square feet located in the City of Miami Marina on Rickenbacker Causeway. The site actually measures 2,690 square feet thus the boat rack area would consist of 2,052 square feet of land area. This appraisal assignment involved the preparation of an appraisal report which summarizes the appraiser's analysis and rationale for the conclusions. The purpose of this appraisal is to form an opinion of the market rent for this building and the boat rack land area. The property rights appraised will be based on the fee simple ownership by the City of Miami, as landowner. The intended users of the report are the City of Miami, and their legal counsel and representatives. This appraisal assignment pertains to the lands owned by the city and the building is part of a larger building. The market rent estimate assumes full access via the interior driveways to the site. I have prepared the attached Appraisal Report, which contains a recapitulation of the data utilized to form an opinion of the market rent as of December 1, 2023. If any additional data is required, please advise. 150 SE 12th Street • Suite 100 • Fort Lauderdale • Florida 33316 Telephone: 954-522-6226 • Fax: 954-522-6422 • www: theurbangroup.com Ms. McGregor, December 14, 2023 Based upon our inspection of the property and market data analysis, it is our opinion the market value under the identified valuation as of December 1, 2023, is as follows: Warehouse/Storage/Garage Building $25,500 annually or $2,125 monthly Vacant Boat Rack Area $21,560 Annually or $1,796.67 monthly Sincerely, Robert D. Miller, ASA State Certified General R.E. Appraiser No. RZ1270 The URBAN iniiGrti,uup mgJiSR# l T [FTE CrtertATJWS CERTIFICATION OF VALUE The undersigned hereby certifies that, to the best of our knowledge and belief: 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. 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. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. We have appraised the subject property and are providing additional rental rate analysis. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 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 rental rate analysis. Furthermore, the assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. The reported analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice and the American Society of 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. Robert D. Miller has made a personal inspection of the subject property. John Zink has provided research, analysis and report assistance, but the valuation conclusions are those of the signatory appraisers. Robert D. Miller, ASA State Certified General R.E. Appraiser No. RZ1270 1 ADDENDA TO CERTIFICATE(S) OF VALUE Supplemental to the foregoing Certificate(s) of Value is the following certificate. We certify that, to the best of my knowledge and belief, except otherwise noted in this report: • We certify that, to the best of my knowledge and belief, 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 American Society of Appraisers • The use of this report is subject to the requirements of the American Society of Appraisers and to review by its duly authorized representatives. In addition, the report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Board. • Robert D. Miller, ASA, State Certified General Real Estate Appraiser RZ1270 (expires 11/30/2024) A list of the Qualifying and Limiting Conditions in the report follows and made part hereof by reference thereto. COMPETENCY PROVISION Appraisers This assignment is being performed for the purpose of estimating a fair market rental rate of the subject. The appraiser has complied with the Competency Provision and has the knowledge and expertise necessary to complete the assignment competently. Mr. Miller certifies that he has completed these types of rental analysis for more than 40 years in the State of Florida. December 14, 2023 Date Robert D. Miller, ASA 2 TABLE OF CONTENTS INTRODUCTION AND PREMISES OF THE APPRAISAL Letter of Transmittal Certificate of Value 1 Addenda to the Certificate of Value 2 Table of Contents 3 Qualifying and Limiting Conditions 4 Summary of Salient Facts and Conclusions 6 Type of Report Format 7 Purpose, Intended Use, Intended User of the Appraisal 7 Definition of Market Rent, Easements and Market Value 8 Property Rights (Interest) Appraised 8 Scope (Extent of Process of Collecting, Confirming and Reporting Data) 9 PRESENTATION OF DATA Identification of Property and Legal Description 10 Description of Area and Neighborhood 10 Description of Property, Photographs and Sketches 12 Zoning, Land Use Plan, Concurrency 22 Assessed Value, Taxes and Special Assessments 23 History of Property 23 Exposure Time 24 Public and Private Restrictions 24 ANALYSIS OF DATA AND CONCLUSION Highest and Best Use Analyses 25 Highest and Best Use Conclusion 25 Market Rental Rate Analysis 26 Estimate of Market Rent 30 ADDENDA Area Map Neighborhood Map Comparable Rental Data Area and Neighborhood Analysis Qualifications of Appraisers 3 QUALIFYING AND LIMITING CONDITIONS The legal description furnished to the appraisers is assumed to be correct. The appraisers assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. All existing liens and encumbrances have been considered; however, the property is appraised as though free and clear with the exception of the historical designation of the existing improvement and under responsible ownership and competent management. The information, estimates and opinions identified in this report as being furnished to the appraiser by others is believed to be reliable; however, the appraisers assume no responsibility for its accuracy. We have not inspected or tested the soil or subsoil, and therefore unable to report that any such part of the subject property is free from defect or in such condition as to render the subject property less valuable. 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. 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. 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. Also, it is assumed that the utilization of the land any improvements are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. The distribution, if any, of the total valuation in this report between land and any 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. 4 QUALIFYING AND LIMITING CONDITIONS (Continued) Possession of this report, or 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 appraisers, and in any event, only with proper written qualifications and only in its entirety. The appraisers herein by reason of the appraisal are not required to give further consultation, testimony, or be in attendance in court with reference to the property in questions unless arrangements have been previously made. Neither all, nor part of the contents of this report, especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are 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 appraisers. 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. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraisers have no knowledge of the existence of such materials on, or in the property. The appraisers are not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate 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. 5 SUMMARY OF SALIENT FACTS AND CONCLUSIONS PROPERTY LOCATION: OWNER's NAME/ADDRESS: INSPECTION DATES: NAMES OF PERSONS WHO ACCOMPANIED APPRAISER AT INSPECTION: EXTENT OF INSPECTION: FOLIO NUMBER: TYPE OF PROPERTY: PROPERTY SIZE: BUILDING SIZES: ZONING/FUTURE LAND USE: HIGHEST AND BEST USE: VALUE CONCLUSIONS Garage Building Market Rent Estimate: Boat Rack Area Market Rent Estimate: Date of Value: 3501 Rickenbacker Causeway Miami, Florida 33149 The City of Miami -Dept of P&D Asset Management Division 444 SW 2nd Avenue Ste. #325 Miami, Fl. 33130 November 14 and December 1, 2023 On site physical exterior inspection was completed by appraisers, Robert Miller. The appraiser was accompanied by the property manager during the inspection. Site inspection of the fee simple lands and existing improvements. 01-4217-000-0030-Part of larger folio One story CBS storage/warehouse/garage building containing 638 square feet. 2,690 square feet of land area 638 Square Feet The City of Miami 21 zoning for the subject is CS Civic Space Zone; Land Use: Recreation. As improved $25,500 annually or $2,125 monthly $21,560 Annually or $1,796.67 monthly December 1, 2023 6 TYPE OF REPORT FORMAT The market rental rate analysis is prepared in an Appraisal Report format in accordance with the Uniform Standards of Appraisal Practice Standards. Certain discussions are brief, and some information considered is not included in this report and is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of USPAP. This appraisal assignment involved the preparation of a market rent estimate for a one story, 638 square foot building as part of a larger building. The analysis summarizes the appraiser's analysis and rational for the conclusions. The assignment pertains to forming an opinion of the subject's market rent and includes a land area of 2,052 square feet for the boat rack area. PURPOSE, INTENDED USE, INTENDED USER OF THE APPRAISAL The purpose of this assignment is to determine the subject's market rental rate. The intended use is for negotiations between the City of Miami and a potential tenant. The function of this report is to provide our estimate of the market rent for consideration in the future lease of the property. The intended users of the report are the City of Miami and with their legal counsel and representatives. 7 DEFINITION OF MARKET RENT Market rent is the rent that a comparable property would command in a given real estate rental market. It is based on the supply and demand of that kind of property and the willingness of tenants and landlords to lease the property. Market rent assumes that both parties are well-informed and under no pressure to make a deal. DEFINITION OF MARKET VALUE The following market value definition is found in Florida case law, (Florida State Road Department vs. Stack, 231 So.2d 859 Fla., 1st DC,A 1969) and is the acceptable and preferred definition of market value: "Value means amount which would be paid for property on assessing date to willing seller not compelled to sell, by willing purchaser, not compelled to purchase, taking into consideration all uses to which property is adapted and might reasonably be applied." Property Interest Appraised: The property interest is based on a lease of the 638 square foot warehouse/storage/garage space within a larger building with a 638 square foot site and a 2,052 square foot site designated as a boat rack area within the City of Miami Marina operation on the Rickenbacker Causeway. Real Property Interest Previously Conveyed: We are not aware of any other interests, encumbrances or easements which negatively affect the market value. Encumbrances: None that we are aware of. Non -Realty Items Appraised: None 8 SCOPE (EXTENT OF PROCESS OF COLLECTING, CONFIRMING AND REPORTING DATA) We have compiled all the necessary data to formulate an opinion of a market rental rate for the subject building. We have presented the applicable data in this report. Any additional supporting data can be found in our working file. The scope of the appraisal involved inspections of the subject property and surrounding area to develop a better understanding of the growth patterns, property types and economic uses of the subject neighborhood. In preparing this report, We have reviewed and relied upon the following data. 1. We reviewed various listings and executed lease for rental rates within the immediate subject neighborhood and comparable locations. 2. Review of real estate records for all pertinent rental rate data including county property appraiser's records. We retrieved rental rate data from CoStar, LoopNet, MLS, internet, and local contacts. In addition, conversations were held with local real estate brokers and agents concerning local conditions, development activity and a review of rental rates. 3. Review of Miami Dade County and the City of Miami neighborhood trends. 4. Inspection of neighborhood and analysis of land use patterns and trends in the City of Miami. 5. Physical inspection of subject property and all rental rate comparable utilized in this report. Furthermore, the data relied upon was confirmed through knowledgeable parties to the transactions. The data relied upon is believed to be accurate, but the appraisers assume no responsibility for its accuracy. Analysis and review of the market revealed data considered to be reliable to arrive at an opinion of market rental rate which is supportable for the subject building type and location. 6. Reviewed and relied on sketches and legal descriptions as of the inspection date for this report for the size and descriptions of the subject property. The subject property was field inspected, and we have reviewed sketches and aerials for the subject parcel. A Market Rental Rate Estimate was considered in the analysis. Based on our review, the existing subject land and improvements were considered in the development of the fair market rental rate. The property appears to have been used as a storage or showroom type facility for a boat repair or sales business. Most of the neighborhood is improved with 9 commercial developments focused on the boating industry. To complete the Market Rent Analysis, we have reviewed listings and executed leases for rental rates within the subject neighborhood and on Key Biscayne and expanded that search as there were limited rental data considered comparable to the subject property. Our analysis of Florida and Miami Dade County as well as the City of Miami, were considered factors affecting real estate, which forms the basis of our analysis of the area real estate market. This rental rate analysis was prepared and includes the data relied upon together with the analysis and conclusions. IDENTIFICATION OF PROPERTY AND LEGAL DESCRIPTION The whole property legal description is as follows: LEGAL DESCRIPTION 171854428AC A PORTION OF CITY OF MIANlI OWNED LAND ON VIRGINIA KEY AND LEASED TO MARINE STADIUM ENTERPRISES INC IDENTIFIED AS LEASE AREAS 1-A1-B 1-C AND PARCEL B F'AAU 30-4217- 000-0110 The subject property land area is only 2,690 square feet of land area and this property as further identified on the sketches and aerials. DESCRIPTION OF AREA AND NEIGHBORHOOD The Description of Area and Neighborhood as well as additional information regarding Florida's economy and market analysis is included in the addendum. 10 NEIGHBORHOOD MAP [_111tr raryetik m es., tt,tr•y a la mode, irIC: iami z ; -- -1' t. . WYNWO OD i! Wynwood Walls 9 9 Lock & Load Miami: 0 Machine Gun... NW 20' SI Margaret Pace Park rd TOWN SQUARE KL clip.Philiiia &PatnCia Frost Museum of Science OVERTOWN 0 tri 3ING GARDEN a a Skyviews Miami NW &HIST a Observation Wheel ci 1- Gesu Church 9 , 0 P.... 6 Bayirdnt Park IDE 0 391 1.1FT1ns Go 9Ie - CV DOWNTOWN NtIAMI 0 0 BRICK ELL VENETIAN ISLANDS STAR, PALM AND HIBISCUS ISLANDS Dodge stand SUBJE-CT 3501 Rickenbacker CSWY Miami, FL 33149 Ho ie island Beach Park Miam SeaqUarIUM Mount Sinai Medic VirginiaKey North Point Trails Virginia Key Historic Virginia Key Beach Park 9 Map data g2023 Google 2000ft •3e,rnE 11 THE DESCRIPTION OF PROPERTY, PHOTOGRAPHS AND SKETCHES PROPERTY TYPE / EXISTING USE: One story CBS building as part of a larger building with a use as warehouse/garage/storage building. PROPERTY LOCATION: SITE SIZE: SHAPE: INGRESS/EGRESS: TOPOGRAPHY: DRAINAGE: 3501 Rickenbacker Causeway, Miami, Florida 33149 The subject site contains a total or 2,690 square feet of land area. Basically rectangular The subject site has access through the Marina property from a driveway entrance from the north side of Rickenbacker Causeway and the site is accessible by interior driveways on site. Based upon a physical inspection of the site as well as adjacent properties, the soil conditions are considered adequate. Based on our inspection, the drainage appears adequate under normal observed typical conditions on the day of the appraiser's inspection. SOIL CHARACTERISTICS: No soil samples were taken or analyzed by the appraiser as this is beyond the scope of the appraiser's duties. UTILITIES: All utilities are readily available to the subject and surrounding properties. SITE IMPROVEMENTS: Asphalt paved and concrete area in front of the building. No landscaping. EASEMENTS, ENCROACHMENTS OR RESTRICTIONS AND THEIR EFFECT OR LIMITATION: We have not been provided with a title report and are not aware of any other encumbrances on the existing subject site. 12 Building Improvement: The site is improved with a 1-story CBS building of 638 square feet with a metal overhead door and is a portion of a 2,661 square foot building, built in 1980. FLOOD ZONE: e Js`and Bead rk: ; I Fynrd CPouplo MAP DATA FEMA Special Flood Hazard Area: Yg® M.apNurlaFxw- 120911C€48 L {floc At Map Dale- Septcrrr.her 11, 2099 FOPS' 12986 Subject is in Zone AE, Map Number 12086C0481L, Date September 11, 2009 FLOOD MAP 51J EJECT 3591 Rickenbalcker C`SWY Miami, FL 33119 MAP LEGEND Areal! inundated by 5 D yearfloodin9 Ar.a. lnun4aiod isr l'6P-yr.aarTlnesdlrwrJ I I. Va10411:y lti.2ar4 13 M6.ST.Aeaderrly -ZIckeattiacker Cau G'lb. cker'v ustorne G rviCC parFlA1 Powlrad by Cn-eLczg 'r• Pi-otevbed Amiss FlnncdwaY C. -) ac.aie ,Area DESCRIPTION OF PROPERTY, PHOTOGRAPHS AND SKETCHES SUBJECT PHOTOGRAPHS View of front of building View of boat rack area in front of building 14 SUBJECT PHOTOGRAPHS Interior of building Interior of building 15 SUBJECT PHOTOGRAPHS Interior of building Ceiling in building 16 SUBJECT PHOTOGRAPHS View of front of building and overhead entrance Driveway with subject building on right 17 SUBJECT PHOTOGRAPHS Entrance from Rickenbacker Causeway View of driveway looking westerly 18 AERIAL MAP 19 Subject Aerial Sketch Supplied by the City of Miami #4.1%04:44.2 lotb-ERrlare Vrapmf Worn. Owima omumwe lemipm-,o.711 VA Minn Erna V.4.15 ittiedi Mow. Una c. 3114J &Ma Vtii 11.1111611 ittelct 1.1VbsUriPla AvkliP thou kri. COI L IV19) Pal I Mild./ &no PM5 FL Lai Ma ,IVar1411.1 rpo E-3.14,1re.) EXHIBIT "C" SUBJECT PROPERTY 20 hairmgis .10.+4 041 Sketch of Building and Land Area Boat Rack Repair Area Shop 638 SF I rA-I %.1 11.44Vena, 13.1.J bad rwidirgiAkr,r mom 21 Location Map 2 18 rlitide, inc: .em.lr- le 0—le 0‘89.1.rrNrfilier LQIIIL u Ij ALLAPAf-TAH M111.1.215411 S1 - -7 Pnrk (;) .E HAVANA 0 u _yj F laglo 0- RI VFIre.F.IIIF Dornm 0 Pork C.-Of:AL Y- VI2Ck MLL1IL;0 tS, Cardens Dayirl T KerlFedy Paik. :CONur 9 i ROVE LITTLE HAITI LJP LAS! LR MO'n121C,IS • ...1/41,b0.1 noel 8. TT g, Pa Lrsc:a '.11-0 inolivri r,"! nrc• Er, OFF., D'rVIAINT cw MIMI Mial fi- 35431 kickenilm2ekeT C,Art Mi-ni,..1 sI2n�Bch VirginiaKy 1-11B1041C V ir'ni KF1V fir.;Aull Pick Lxcin I dila' - ^ Key Eliscayn P.! la 0 1. Mor-id I) AVENUE SOUTH 12.E.A:e IFLAMING6 LUMNIUS Half Opoo Orlde.r.etv.ter ...1".r.hrinofdryir4 PrEerve Map clam Cari2 &ogle moo ft 22 ZONING, LAND USE PLAN Zoning The subject zoning code with the Property Appraiser is CS Civic Space Zone Existing/Future Land Use Future Land Use; Recreation Jurisdiction: City of Miami ASSESSED VALUE, TAXES AND SPECIAL ASSESSMENTS The subject property is assessed as part of the larger folio number 01-4217-000-0030. The fee parcel is owned by the City of Miami. ASSESSMENT INFORMATION Year 2023 2022 2021 Land Value $12,721.590 312,721,500 S12,721,5410 Building Value 3294,879 $296,974 $261,044 Extra Feature Value S190,632 $193,620 $196,608 Market Value $13,207,011 313,212,094 S13,179,152 Assessed Value $4,660,477 $4,236,798 $3,851,635 There are no taxes due on this parcel based on the City of Miami ownership. HISTORY OF PROPERTY There have been no sales of the subject property within the past 10 years. The subject is wholly owned by the City of Miami. Property Owner Name and Address: City of Miami 444 S.W. 2nd Avenue, 3rd Floor Miami, Florida 33130 23 EXPOSURE TIME Exposure Time may be defined as follows: 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 . Source: The Dictionary of Real Estate Appraisal, 5th Edition, Appraisal Institute. Based on the type of property being appraised, it is our opinion that the subject market is active with a normal or typical exposure time for this type of property. The subject building is considered a desirable asset, and the market would reflect a marketing and exposure time of between 2 to 3 months. PUBLIC AND PRIVATE RESTRICTIONS We have not been provided a title report and public or private restrictions were considered in this assignment. Other typical restrictions affecting the subject property include utility easements, zoning & land use, and are not considered to adversely affect the use or demand for the subject property. 24 HIGHEST AND BEST USE ANALYSES The current use of the subject property is an existing one-story building on a small site and the building was constructed in 1980 and is still in good useable condition. DEFINITION OF HIGHEST AND BEST USE Highest and Best Use may be defined as follows: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria of the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Source: The Dictionary of Real Estate Appraisal, 5th Edition, Appraisal Institute, 2010, page 93. Implied within this definition is that the determination of the highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from the analysis represents an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of probable selling price (Market Value), another appropriate term to reflect highest and best use would be "most probable use". In the context of investment value, an alternative term would be "most profitable use". Highest and Best Use "As Vacant" Physically Possible Uses The overall size and dimensions of the subject site containing 1,368 square feet of land area is small for most uses, but considering the assignment, the size is physically possible for the use proposed. Legally Permissible Uses The legally permissible uses would include civic and recreational uses and the use with some type of storage or showroom use with a marina related use would be a legally allowed and permitted use. 25 Financially Feasible Uses The subject whole property is located on the Rickenbacker Causeway, on Biscayne Bay between the City of Miami and Key Biscayne and is also accessible by water with a use as a Marina with ancillary uses. After considering the physically possible, legally permissible uses and the financially feasible, the highest and best use of the subject is estimated to be for marine related use of the site. Maximally Productive Use The maximally productive use is the use which is financially feasible and produces the highest rate of return to the land. The maximally productive use of the property, given the physical and legally permissible uses and financial criteria, is for marine related use of the site. HIGHEST AND BEST USE CONCLUSION Land as Vacant In conclusion, based on the four criteria for the estimation of the highest and best use, it is our opinion that the subject property would have the highest and best use for a marine related use. As Improved The subject property is improved with a one-story CBS building. The building is in good condition and has been used as a storage or showroom type facility in the past. The current improvements would be considered the highest and best use as improved. 26 MARKET RENTAL RATE ANALYSIS In order to arrive at the market rental rate value for the property, special attention must be given to the typical Lessee who might have an interest in a particular property. Market Value is the most probable rental rate analysis which a property will bring, and this rental rate depends upon the typical tenant's reaction to the various supply and demand factors that affect the market value. The appraisal assignment is to estimate the potential lease rate of the subject land and building area. The Comparison Approach was considered as the most applicable method of valuation for the subject market rental rate estimate. We have reviewed listings and executed leases for similar type buildings after reviewing lease rates on Virginia Key and Key Biscayne and then expanded that to include other areas in the Miami -Dade County area. A summary chart and map of the comparable rental rates follows. The rental rate per square foot of a unit area is analyzed and is based on a triple net analysis with the lessee paying all real estate taxes, insurance, utility and maintenance costs. After the map and summary table, we will complete the rental rate comparison approach to arrive at a market rent estimate for the subject property. The individual data sheet for each comparable is included in the addendum. 27 Lease Comps Summary Deals Asking Rent Per SF Lease Comps Report Starting Rent Per SF Avg. kIcarithe On Market 13 $31.20 $30.04 4 LEASE COMPAR.A13 LES Miarni Lakes Lorka Execuil.if Airport 9 I. kMELf »1ITR- Eprgartpark lea, 02, den a Hialeah tley 5E1%010 LA 1113 Bundle Park Golden Glades Opa-locka ' F Tall, 61 Miarni Springs Miami Virginia Irgerrintour;e1 Getrlens A, i.p.ori 9 sto w West Little River Gladevew 0 er....) 1rlPi Jlovsr Pnr.: North Mi am Pinewood rni ShOre3 -2- El Portal NO1 tl I Buy ViIIii rnsiitute of non por re 9 , Miami Brownsville Ctio All.% PAT 1,111 , LEE. COrmpaiattio-a Bel harbour Surrside. Miami each &I" SUMMARY STATISTICS Pant Aeking Rent Pet SF Starling Rent Pei SF- Effeceve Rent Per SF Asking Refit Oterltra Ti Iowanca Months Flee Rani boats Leff Jeer ir Nein% 1$22.00 131.213 $26.513 4 423.03 $30.04 .$29.00 _ 3 S23.00 #20.04 /28.00 4 0.0% 162% EL8% $.45.04 $46.00 $43.60 21.1% 1 2 2 2 2 Lame Alizikaiss Donk Lim Ammo nth Monte on Pitarkei 13 1 4 1 i S _ Deal Size 13 1,100 4,462 I i,sail $3.4an Lease Died el Months 7 12.0 —2270 24.0 I 36.0 Roor Number 13 1 1 1 I 3 2 8 Lease COMpS Su rnmary Pr warty Mama . Addasas RaunB 534I NW 75th St 113 1-1321 NE1MPI Spareapace Storage ssa-se. mei 3CSih St Warehouse 164 2251-2299 NE1S4hSI 9. 253 NE 73re 5t i 4964515NW 54th St 2035 937 NW 1st pl 255-275 NE lath 9t Interama 19-21-1g.2S NE 159th St 23.0-2326 NW Rh Ct 7779MMM7thA/a 596245662 NE 4th Ave 11,1 296 NE 92nd * * * * * * * * * * # ** * * * ***.fir * * tir * *1 *** * ilr Lc no SP Lamm! Fluor Sign Oita +OAS 2,S77 2,iSQ 2,861) O 460 1,41.5 13,909 S AN 1,1623 7,50 lsl 111213[202'2. New Leese 1at 14121$123 New. Leese 1,3 1 1 [12d23 New+ Leese 191 751 g,'1.r2023 3r252023 Ney,[ Lease Nei Leese iel Sn.2[12:3 New. Lease lei lei lit 712412E123 61.12923 New Leese New Lease 3122/2023 New. Lease 31712023 New Leese 3r2[1`2023 New Lease iat 1/1{02023 New. Lease 29 1al 11312ti23 New Lease Lease Comps Report rapt: pent 522.99/mg 523.0{1tm® 330. 0img $22A6 Inn s2A.00a inn $25.C] 643 D.1nrtn %3OJ irtnn 52S,C0innn 123.00inn s38 nnn 52a boinnn sty .50.[Yinn Flint Typo Effective Asking Asking Asking Asaig Efiedhre 91ertrig Askeig Effective Asking Asking Asking Analysis of Market Rent Estimate GARAGE/REPAIR BUILDING MARKET RENT ESTIMATE The table reflects some of the data reviewed in our analysis. In addition, we also reviewed some older rental rates for retail and office properties on Key Biscayne. There were no comparable rentals of small industrial type buildings noted in our review of the Co - Star data source located on Virgina Key or Key Biscayne. These rentals ranged from a low of 1,100 square feet to a high of 13,000 square feet of building area. The subject property is much smaller in size at 638 square feet of building area. Further, the site is much smaller than the comparables with a land to building ratio of 2.14 to 1. One of the comparables was a mini storage facility as this could be utilized with that use for someone needing storage space at this location. The rentals had varying locations with the majority east of I-95 in the eastern portion of Miami with the majority in or near the downtown Miami development area. Overall, the comparables were considered to have inferior locations on a general basis and a conclusion above the average starting rents of $30.04. The rents ranged in unit rental rates from a low of $22.00 on a triple net basis to a high of $43.60 per square foot of building area. The majority and the average for these was around $30.00 per square foot, however none of the comparables had a similar unique location on Virginia Key. Based on our review of the rental rates, market values and other market data, it was our opinion that the subject location reflected a $10 per square foot premium. Therefore, it is our opinion that a market rent at the upper end of the overall rental rate range of $22.00 to $43.60 per square foot is applicable. We have considered each of the listing and rental rates as they relate to the subject property. As noted, a locational adjustment was considered in our analysis. The comparable rental rates reflect similar characteristics to the subject property with varying locations and the location was adjusted for in our analysis. Therefore, we concluded that the opinion of the market rental rate to be equal to a unit rental rate of $40 per square foot of the building area as of December 1, 2023. The calculation follows: 638 S.F. X $40 per S.F. $25,520 SAY $25,500 annually OR $ 2,125 monthly 30 Analysis of Market Rent Estimate (Continued) BOAT RACK AREA -MARKET RENT ESTIMATE In this instance, the land area of 2,052 square feet would be valued and an appropriate rate of return would be applied to the land area to arrive at a market rent. In this instance, the subject property is zoned with governmental use and thus land sales of this type of property are limited. We have reviewed sales of marina type properties along the Miami River and found the sales to be in the range of $70 to well over $300 per square foot of land area. The higher end of the range is reflective of properties with an alternate highest and best use and were not considered applicable in this analysis. We relied more on marina type uses and considered the location on Rickenbacker Causeway and estimated the land value at $150.00 per square foot of land area. This indicates an underlying land value at $308,000 ($150 per square foot x 2,052 SF = $307,800 say $308,000) The next step in this process is to determine an appropriate land rental rate. For this purpose, we reviewed two sources, Co -Star and realtyrates.com, as well as our office files for land leases that are confidential data. The review of these sources reflects a range of 3.5% to 7.5% for various property types. The majority of the land leases reviewed were for low risk fast food and bank leases and these were generally in the 4.5 to 5.5% range. This lease would seem to be riskier based on the supply and demand of similar spaces. As a result, we considered a 7% return to be more applicable for this type of lease. Therefore, the market rent for the boat rack area of vacant land would be calculated as follows: $308,000 x 7% = $21,560 Annually or $1,796,67 monthly 31 ADDENDUM rffre4- rt,0 Oaf; AREA MAP nre • - -.`", • 11111115111M -MOM - • ,71111,-veurWirrizimi EINcrliEmsy: Jar PrirrSK br• hmrri-nr 33 !`..X ••• 5.191. r Biscayne Bay CET ia51,,,..•• FM? Do! ph% General Highway Map of MIAMI-DADE COUNTY FLORIDA • x x amp .111 =In EPU11 MAP' Ca, r, manAuinevALE menimuitommou Wm 7 ,041.1011,! ••• c.J 7 'Mut BIAGI/ l'AEDEEY DOEcAL HIALEAH MIRMI SPR IRO viRcinA CIAAtti6 IFIPDRT WEST foillitAPEOLEALI B WE 1,5609f1 I .. --• WORTH KEST !JULE WW1 SHOR1Z. I RIVER \ •• ....... __..:__I —1. If %.:',... ' Nr.ifie 1511_4 I 1 -- ' I L n ''',..,..._,---" 211, _' LITTLE MILICE ,(irt if NrApt 1 1) I I I BAY I I WILLUE 1.1 i .. 1 11 r) 1 il IIEH ,,, ELAN'. II II 11 il SOUTH il BEACH I'' I [HST 'FLArELVA I I 11 NOP NSW! LL PALPMEli LAKE GRAP ELAND HELPINS IUT MOM (. 1K WESTCHESTER CORAL TERRACE MIRACLE CORAL MY MILE PLUEF COPAL EUoLit.fi GAMES OMAN HEY:1413 / GROVE ILEMCW CITY .16?..0E UPPER .3/17LE HA ITIo EfiST SIDE BUENA !"r11113711 • VISTA 1:11G14-1 71m mi-oym --- ILL ;TR A LLAPATTRN / z • ;. CIVIC I I 21 CENTER E g IP'"7 MSTI oat , UtTLE 'INLVivret0 HAVNA, L.... SOON . _ REAM ECCOPLUM 34 WM' emir 'MEM" MIMS /IILH.L ADS CITY OF MIAMI NEIGHBORHOODS WORM / KEY COMPARABLE RENTAL DATA MIAMI-DADE COUNTY AREA ALALYSIS Physical Features Miami -Dade County is located along the southern tip of the Florida peninsula and bounded by the Atlantic Ocean to the east and Everglades National Park to the west. Miami -Dade County is the largest county in the State and encompasses an area of 1,998 square miles including land and water. Miami -Dade County, Broward County and Palm Beach County are lst, 2nd, and 3rd most populous counties in Florida. They are called the "Gold Coast" and contain 6,137 square miles. Most of the development is clustered along the eastern coastal area radiating north, south, and west from the coastal hub. Miami -Dade County is flat with an average elevation being 12 feet and the highest elevation not exceeding 25 feet above sea level. The soil is generally shallow over a porous bedrock of limestone. The areas along the coastal ridge have sandy soil while the western area of the county is predominately made up of peat and muck. Climate Characteristics The climate is humid subtropical with an average annual temperature of 75.5 degrees; an average low temperature of 68.7 degrees; and an average high temperature of 87.6 degrees. The average annual probability of 72% and humidity of 84% and rainfall of 67.6 inches. Demographics Miami -Dade County is the most populous county in Florida with a population of 2,792,176 people as of 2021. Miami -Dade County is the 7th most populous county in the United States. There are 34 incorporated cities within the county. Housing units within Miami - Dade County totaled 1,097,924. The number of households in 2021 is 873,292 with 2.83 persons per household. The median household income was $43,129 per house in 2015. Employment The total employment in 2021 is 1,346,487. The most common occupations were: 32% management/professional, 30% sales/office, 18% service, 11% construction extraction, maintenance/repair, 9 % production, transportation, and material moving occupations. 81 % of the people employed were Private wage and salary workers, 12% Federal, state, or local government workers and 7% were self- employed. Hundreds of multi -national companies operate facilities in Greater Miami. Nearly one hundred Fortune 500 affiliates operate with 36 Miami -Dade County. The region features thousands of small and median sized firms, reflecting a positive ongoing spirit of entrepreneurship. The largest employers are Miami -Dade County Public Schools, Metropolitan Miami -Dade County, Federal Government, State of Florida, Publix Supermarkets, Inc., Jackson Memorial Hospital, University of Miami, etc. Education cities and municipalities. A truly global community, district students speak 56 different languages and represent 160 countries. Miami -Dade College, Barry, Miami, and Florida International Universities serve Miami Dade County. Health Care Health Care services are a major component of the economy. Miami - Dade County has a relatively high capacity to provide health care services with proportionally more positions and hospital beds than the majority of competitors. In addition to the hospitals there are many home/convalescence centers offering skilled nursing care. Economy Many indicators point toward the fact that Miami -Dade County's economy is flourishing. Construction of new home developments within the western part of the County has boosted the local economy. Also, Miami -Dade County's economic base of tourism, trade services, retail, banking, real estate, and manufacturing continue with increasingly international flavor to support the overall county's economy. The Port of Miami is the global gateway for a new era of commerce and tourism. Capital improvements in excess of $lbillion dollars are now completed. The Port of Miami is ready for the new generation of containerized cargo. The Port of Miami processed 113,835 Twenty - Foot Equivalent Units (TEUs) in January 2021, an increase of 21.02 percent from 04,064 TEUs processed in January 2020, the most active month ever recorded. The Port of Miami is also known world-wide as the "Cruise Capital of the World." Port of Miami is the global headquarters for five leading cruise lines consisting of 18 cruise brands and berthing 42 ships. More than 110 million overnight visitors in 2019 visited the Port of Miami. However, the cruise industry was closed during the 2020-2021 coronavirus. Port of Miami Florida East Coast Railroad connection offers the fastest access to Southeastern United States consumer markets and beyond 37 Transportation Miami International Airport is among the busiest airports in the world. There are over 100 airlines serving MIA to approximately 150 destinations around the globe. 44,584,603 passengers went thru the airport in 2019 and 2,220,733 tons of cargo also went thru the airport in 2019. Miami -Dade County contains 24 miles of metro rail solely in the county area. Tri-Rail provides a service thru Miami -Dade County with connections to Broward and Palm Beach Counties. The Florida East Coast Railway system provides cargo shipment out of the Port of Miami. All Aboard Florida is a new proposed rail serving Orlando Florida. Foreign Trade Zone (FTZ) FTZ allows businesses within the zone to receive, warehouse, and re-export products duty-free, thus reducing costs and helping businesses become more globally competitive. Thousands of businesses each year use foreign trade zones to coordinate foreign and domestic shipments. In addition to assisting U.S. companies improve their competitive position, the FTZ program allows U.S. based companies to defer, reduce or even eliminate customs duties on products admitted to the zone. Miami -Dade County is home to four Foreign Trade Zones, Port of Miami Foreign Trade Zone 281, Miami Free Zone, Homestead Foreign Trade Zone 166 and Greater Miami Foreign Trade Zone 32. Miami -Dade County represents the center of a highly active and unusual Customs District. On a per capita basis, the Miami -Customs District ranks near the top of all U.S. Customs Districts in international trade as measured by value. Miami -Dade County exports 1.5 times the value of imports. Miami -Dade County is commonly referred to as the "shopping cart of Americas" Warehouses serve as the principal suppliers of many industrial and consumer goods for the Caribbean, Central America, and parts of South America. Business A favorable tax structure as well as business incentive programs have helped encourage many companies and corporations to relocate or expand their operations to Miami -Dade County. Florida's as a "right to work" is an additional asset when recruiting or relocating labor to Miami -Dade County. Businesses and individuals pay no state personal income taxes. The state imposes a low corporate income tax, has no inventory tax, no unitary tax and provides several sales tax exemptions. Compared to 38 other major metropolitan areas, Miami -Dade County has a competitive tax structure. Businesses located in Miami -Dade County also benefit from no corporate tax on franchise stock, as well as no state ad valorem taxes on goods -in -transit. Foreign source dividends are also exempt from corporate income tax. In conclusion Miami -Dade County is still a major tourist destination accompanied by a growing international trade and global financial center. The future outlook is positive and major economic growth is high. Summary The growth of Miami -Dade County from one million in 1970 to over 2.7 million has caused two major concerns within the county area. They are the need of transportation infrastructure and the scarcity of affordable workforce housing. Miami -Dade Transportation Planning Organization board is committed to prioritizing and implementing the proposed Strategic Miami Area Rapid Transit (SMART) plan, which would expand the mass transit system by about 80 miles. The county commission is working with developers to implement well -located affordable workforce housing. Overall, Miami -Dade County and the City of Miami are moving in the right direction of addressing the current problems and is still a major destination city due to its climate, attractions, no personal income taxes, economic/business resources, etc. CITY OF MIAMI Miami is the youngest major city in the U.S. Miami and was started with the work of visionaries who predicted decades in advance what this land would become. Julia Tuttle arrived in Miami from Cleveland in 1891 owner of 640 acres of land. Other visionaries moved to Miami such as the Brickells, the Flaglers, the Merricks and the Fishers. Julia Tuttle pledged half her land to Henri Flagler in order to get him to extend his railway to Miami and start building a city from scratch. The first train reached Miami in 1896 soon after the new city was incorporated. In the 20's Miami was attracting the wealthiest people who were willing to be part of a great adventure. George Merrick, the legendary real estate developer created the first planned communities. Carl Fisher developed luxurious hotels and all the required playgrounds including polo and golf courses to please the rich residents. 39 When Castro came to power in Cuba and wave of immigrants reached the shores, Miami's profile change. It is estimated that from the 60's to the 80's over a half million Cubans moved to Miami. With the mass movement of Latin's created Spanish community which was instrumental in transforming Miami into a truly international city. Nowadays, Miami is a multicultural city that has a growing economy based mostly on the tourism industry. Miami's travel services like Miami concierge services are flourishing. Miami's attractions such the wonderful beaches, major basketball team, Seaquarium and MetroZoo. Another big part of Miami's economy is importing/exporting and warehousing. The city's proximity to South America and the Caribbean ensures this as well as the large number of airports and seaports. The commercial industry is also a major contributor to the growth of Miami. The schools and colleges in Miami provide countless jobs for the community. The colleges bring in thousands of new residents every year. The climate and temperature are also a major attraction for people who live in Miami. Overall, the City's economy is growing and a desirable place to call home. 40 QUALIFICATIONS OF APPRAISERS EDUCATION: PROFESSIONAL AFFILIATION: LICENSED: EXPERIENCE: QUALIFIED AS EXPERT WITNESS FOR: HAS COMPLETED: QUALIFICATIONS ROBERT D. MILLER, ASA Appraisal Institute Courses SSP Standards of Professional Practice I -A Fundamentals of Real Estate Appraisal I-B Capitalization Theory and Techniques 8 Appraising a Single -Family Residence 2-1 Case Studies in Real Estate Valuation 2-2 Report Writing Business Valuation Seminar Litigation Valuation Other Appraisal Courses Mass Appraisal of Residential Properties Florida State Law and USPAP Factory Built Housing Automated Valuation Models Senior Member of American Society of Appraisers - South Florida Chapter No. 82 — Accredited Senior Appraiser (ASA) Real Property Urban Certified General Real Estate Appraiser #RZ1270- State of Florida 1993-Present 1995-2022 1978-1993 1987 Vice President -The Urban Group, Inc. Owner Appraisal Firm Real Property Analysts, Inc., Fort Lauderdale, Florida, Executive Vice President Involved in United States Senate Study Right - of -Way Acquisition Procedures Condemnation proceeding in Broward, Miami -Dade, Monroe, Palm Beach and Duval Counties, Florida and Lake, Kankakee, Cook and DuPage Counties, Illinois. Testified in Bankruptcy Court in Florida and Texas and Federal Court in Miami, Florida Appraisal Assignments Commercial, vacant, and improved Condemnation proj ects Industrial, vacant, and improved Multi -family residential, Mobile Home Parks Office, vacant and improved Special purpose properties 42 Counseling Acquisiti on proj ects Income tax analysis Investment analysis Tax assessments ROW Cost Analysis Special assessments Review Services VARIOUS CLIENTS OVER THE PAST TEN YEARS GOVERNMENT PRIVATE ATTORNEY BROWARD COUNTY BROWARD COUNTY AVIATION DEPARTMENT BROWARD COUNTY SCHOOL BOARD CHARLOTTE COUNTY CITY OF BOYNTON BEACH CITY OF CORAL SPRINGS CITY OF DELRAY BEACH CITY OF FORT LAUDERDALE CITY OF FORT MYERS CITY OF HALLANDALE BEACH CITY OF HOLLYWOOD CITY OF LAUDERDALE LAKES CITY OF KEY WEST CITY OF MARGATE CITY OF MIAMI CITY OF MIAMI SPRINGS CITY OF NORTH LAUDERDALE CITY OF POMPANO BEACH CITY OF SUNRISE CITY OF WEST PALM BEACH FEDERAL AVIATION ADMINISTRATION FLORIDA DEPARTMENT OF TRANSPORTATION MIAMI-DADE COUNTY PALM BEACH COUNTY PALM BEACH COUNTY SCHOOL BOARD SOUTH FLORIDA WATER MANAGEMENT TOWN OF DAVIE US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT ALTMAN DEVELOPMENT CORPORATION BELLSOUTH MOBILITY CLEAR CHANNEL OUTDOOR CLEVELAND CLINIC LENNAR HOMES SBA TOWERS INC. WAL-MART CORPORATION ACKERMAN SENTERFITT BECKER & POLIAKOPF BRUSCHI LP COKER AND FEINER BRIAN PATCHEN PA HOLLAND & KNIGHT GREENSPOON MARDER TEW CARDENAS GOREN CHEROF DOODY & EZROL PA WEISS-SEROTA-HELFMAN 43