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HomeMy WebLinkAboutSubmittal-DREAM-Joseph Blake and Associates Appraisal``• r ` 1©`, , \\‘‘.‘ APPRAISAL REPORT ((MARKET RENT STUDY) Bayshore Landing Marina 2550 South Bayshore Drive Miami, Miami -Dade County, FL 33133 PREPARED FOR Ms. Jacqueline Lorenzo Property Management Representative City of Miami -Department of Real Estate & Asset Management 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 PREPARED BY Joseph J. Blake and Associates, Inc. 4000 Ponce De Leon Boulevard Suite 410 Miami, FL 33146 8 S' E O7'A-1 - Q1 -c- ' 1.2) k k AwAtAii BL JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 4000 Ponce De Leon Boulevard, Suite 410 I Miami, FL 33146 I Phone: (305) 448-1663 I Fax: (305) 448-7077 I www.josephjblake.com July 24, 2017 Ms. Jacqueline Lorenzo Property Management Representative City of Miami -Department of Real Estate & Asset Management 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 Re: Bayshore Landing Marina 2550 South Bayshore Drive Miami, FL 33133 Dear Ms. Lorenzo: As requested, we have prepared an appraisal of the property referenced above presented in the attached Appraisal Report (Market Rent Study). The purpose of the appraisal is to develop an opinion of the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as of July 16, 2017. Briefly described, the subject consists of a marina with on -site restaurant (Monty's Raw Bar) and retail/office building known as Bayshore Landing Marina located in the Coconut Grove neighborhood of the City of Miami that contains upland and submerged land areas. The marina is a privately -operated marina under an existing ground lease from the City of Miami and a submerged land lease from the State of Florida. The restaurant consists of 10,362± SF of interior area. The restaurant also includes 14,047± SF of outdoor Chickee Hut covered patio area that sits adjacent to the marina. The subject's total restaurant area is 24,409± SF. The retail/office building currently contains 28,467± SF of usable SF and 29,319± SF of net rentable area with the remaining 1,200± SF area allocated to the property's maintenance shop. The former dock master's office on site containing 916± SF will be demolished. The submerged portion of the property consists of 96 wet slips, including 27 boat lifts, consisting of 4,734± LF of dock space ranging in size from 22± LF to 88± LF. Upon renovation, the subject's marina will contain 118 wet slips, including 32 boat lifts, consisting of 5,411± LF of dock space ranging in size from 22± LF to 88± LF. The marina offers wet slips, boat lifts, fuel station, dock master's office, ship's store, restrooms/showers, laundry facilities, and on -site restaurant (Monty's Raw Bar) and retail/office building. The subject's site consists of approximately 291,199 SF or approximately 6.69 acres of land, of which 2.14± acres are uplands and 4.55± acres are submerged. The portion of submerged land leased from the City of Miami consists of 1.87± acres. The site is irregular in shape and the uplands are level and at street grade. The site is zoned "CS," Civic Space, under the jurisdiction of City of Miami. Corporate Headquarters: 425 Broad Hollow Road, Suite 429 I Melville, New York 11747 I (516) 827-0222 Regional Offices: Atlanta I Boston I Chicago I Dallas I Los Angeles I Miami I New York City I San Francisco I Washington D.C. Blake & Sanyu Alliance: Tokyo I Osaka I Nagoya I Sendai r • July 24, 2017 Ms. Jacqueline Lorenzo, Property Manager Representative Page 2 of 4 The current ownership is renovating the property. The retail/office building renovation includes updating the exterior facade, reducing the common area lobby, interior common areas and storage, updating the interior finishes, demolition and relocation of dock master building, and parking lot improvements. The marina renovations include installation of 32 mechanical boat lifts, dredging, new fire line, new piles, dock repairs, and adding 22 slips along the south dock of the marina. There is a proposed Fifth Amendment to the lease agreement between the City of Miami and Aligned Bayshore Marina, LLC. The lease will be amended as follows: A. New Section 1C will be added. No Liability for Submerged Lands Lease and State Waiver of Deed Restrictions. B. New Section 2A will be added. Lease Extension Term: The term of the lease agreement shall be extended for a period of thirty-two (32) years, commencing on June 1, 2035 (which is the day following the current expiration date of the lease agreement) and ending on May 13, 2067. C. New Section 2A will be added. Renewal Options: The Company shall have the option to renew the lease Agreement for two (2) additional terms of ten (10) years each. D. Section 6 will be amended. Redevelopment Plans: The company shall be solely responsible for construction and cost of all improvements to the marina, building and restaurant located at the property, including but not limited to labor, supplies, materials, equipment, professional services, any surrounding or adjacent municipal, governmental, regulatory requirements, land development, building, electrical, marine related or similar permits, consents, and approvals or any utility and telecommunications or computer hook-ups. E. Section 13 (IV) will be amended to include for clarification that any pass -through charges such as but not limited to electricity charges or common area maintenance fees collected by the Company or sublessees are included in the definition of Gross Sales and/or Gross Receipts. F. New section 13 (VI) and 13 (VII) will be added. Section 13 (VI) Additional Rent: The Company agrees to pay the City a minimum of the greater of Two Hundred Thousand Dollars ($200,000) per lease year, or 1.75% of Gross Receipts derived from the property as Additional Rent. Section 13 (VII) Along with the payment of the Additional Rent, the Company shall provide the city with a statement of Gross Sales specifically detailing the Gross Sales received for the immediately preceding Lease Year audited by a Certified Public Accountant. G. Section 21 will be amended. Insurance: The company shall maintain during the term of the Lease Agreement the following insurance subject to the approval of the City of Miami, Department of Risk Management (a) Property Insurance (b) Business Interruption Insurance (c) Equipment Breakdown (d) Commercial General Liability Insurance (e) Marine Operators Legal Liability (f) Property Coverage Docks and Piers (g) Automobile Liability (h) Workers Compensation (i) Umbrella (j) Liquor (k) Required Policy Provisions (I) Delivery (m) Right to Amend Insurance Requirements. H. Section 22 will be amended. Indemnification. I. New Section 25A will be added. Capital Improvements: The company will set aside funds to complete major capital improvements and property improvements above and beyond any repairs and maintenance. The company shall set aside at least an amount equal to amount specified or 10% per year of Average Repair Costs into a separate reserve account unit 100% of Average Repair Costs is deposited in order to fund capital improvements for the Property. The amounts required to be set aside and years in which they must be spent are as follows: Lease Year Annual Amount — greater of Total To Be Spent in Lease Year 6 —15 $100,000 10% of Average Repair Costs $1,000,000 16 26 - 35 $100,000 10% of Average Repair Costs $1,000,000 36 51— 58 $125,000 10% of Average Repair Costs $1,000,000 59 61— 68 $125,000 10% of Average Repair Costs $1,000,000 69 Total $4,000,000 July 24, 2017 Ms. Jacqueline Lorenzo, Property Manager Representative Page 3 of 4 J. New Section 31A will be added. Transfer Fee: Should the City consent to any transfer, the City shall be entitled to 1.00% of the Gross Sales Amount, if the Lease Agreement is assigned or otherwise transferred or sold within Lease Years 1 through 5 and the City shall receive 1.50% of the Gross Sales Amount if transferred or sold with Lease Years 6 through 10, and the City shall receive 2.00% of the Gross Sales Amount if transferred or sold within Lease Years 11 through 15, and the City shall receive 3.00% of the Gross Sales Amount is transferred or sold within Lease Year 16 though the end of the Lease Term. The same transfer allocation of 3.00% of the Gross Sales Amount shall apply to the first and second renewal term. K. New Section 318 will be added. Refinancing Fee. If the Company engages in any refinancing with respect to the property, then the City shall have the right to participate in such refinancing in an amount equal to 1% of the Loan Proceeds. The report contains 94 pages plus related exhibits. The appraisal and the attached Appraisal Report (Market Rent Study) have been prepared in conformity with and are subject to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP). In preparing this appraisal, we considered the use of the three most widely recognized approaches to value: the Cost, Income Capitalization and Sales Comparison Approaches. The appraisal is subject to the attached Assumptions and Limiting Conditions and Definition of Market Value. After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as of July 16, 2017, is: $1,500,000 ONE MILLION FIVE HUNDRED THOUSAND DOLLARS The market rent estimate for the subject is calculated as follows: Projected Annual Revenue Revenue Percentage Rent Factor Estimated Rent Rental Dockage $2,400,610 15% $360,092 Restaurant $7,566,790 10% $756,679 Upland Rents $1,780,942 10% $178,094 Total (All Revenues) $11,748,342 $1,294,865 Additional Rent $11,748,342 1.75% $205,596 Estimated Fair Market Rent $1,500,461 Rounded $1,500,000 Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $1,500,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The subject is proposed for renovation of its marina and upland improvements. Therefore, this appraisal is based on the extraordinary assumption the construction will be performed in a workmanlike manner. This appraisal is not based on any hypothetical conditions. July 24, 2017 Ms. Jacqueline Lorenzo, Property Manager Representative Page 4 of 4 The opinion(s) of value are based on reasonably achievable marketing times of 6 to 12 months and exposure times of 6 to 12 months, assuming the property is properly priced and actively marketed. The attached Appraisal Report (Market Rent Study) summarizes the documentation and analysis in support of our conclusions. If you have any questions, please contact the undersigned. We thank you for retaining the services of our firm. Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. 177-411e ewX---_ Ted Allen, MAI, MRICS Matthew Roach, MAI Managing Partner Director Florida -State -Certified General Real Estate Appraiser Florida -State -Certified General Real Estate Appraiser No. RZ426 No. RZ3189 Expires: November 30, 2018 Expires: November 30, 2018 Bayshore Landing Marina 16-091-02 TABLE OF CONTENTS TITLE PAGE TRANSMITTAL LETTER EXECUTIVE SUMMARY 1 PHOTOGRAPHS OF THE SUBJECT 3 CERTIFICATION 7 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 9 PURPOSE OF THE APPRAISAL 11 INTENDED USER AND USE OF THE APPRAISAL 11 PERTINENT DATES OF INSPECTION, Market Rent AND REPORT 11 EXPOSURE TIME 11 SCOPE OF THE APPRAISAL 11 IDENTIFICATION OF THE PROPERTY 13 CURRENT USE OF THE SUBJECT 13 HISTORY OF THE SUBJECT 13 AREA ANALYSIS 16 NEIGHBORHOOD ANALYSIS 21 DESCRIPTION OF THE SITE 28 DESCRIPTION OF THE IMPROVEMENTS 30 ZONING 33 TAXES 34 HIGHEST AND BEST USE 35 MARKET RENT STUDY 37 RECONCILIATION AND FINAL VALUE 94 ADDENDA Most Recent Deed Legal Description Zoning Information Flood Map Tax Information Site Plan Proposed 5th Lease Amendment Appraisal Engagement Contract Replacement Cost New Glossary of Terms Qualifications of the Appraisers JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 EXECUTIVE SUMMARY PROPERTY SUMMARY PROPERTY APPRAISED PROPERTY ADDRESS PARCEL/TAX ID PROPERTY LOCATION PURPOSE OF THE APPRAISAL Bayshore Landing Marina 2550 South Bayshore Drive, Miami, FL 33133 01-4122-001-1631 The subject is located on the south side of Bayshore Landing Drive within the Coconut Grove area of Miami, FL. The purpose of the appraisal is to develop an opinion of the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as of July 16, 2017. PERTINENT DATES DATE OF INSPECTION June 19, 2017 DATE OF REPORT July 24, 2017 DATE OF "AS IS" VALUE June 19, 2017 HIGHEST AND BEST USE AS IMPROVED Renovation of the current improvements similar to the proposed construction plans AS IF VACANT A marina with onsite restaurant and retail/office building PROPERTY DATA IMPROVEMENT DATA Briefly described, the subject consists of a marina with on -site restaurant (Monty's Raw Bar) and retail/office building known as Bayshore Landing Marina located in the Coconut Grove neighborhood of the City of Miami that contains upland and submerged land areas. The marina is a privately - operated marina under an existing ground lease from the City of Miami and a submerged land lease from the State of Florida. The restaurant consists of 10,362± SF of interior area. The restaurant also includes 14,047± SF of outdoor Chickee Hut covered patio area that sits adjacent to the marina. The subject's total restaurant area is 24,409± SF. The retail/office building currently contains 28,467± SF of usable SF and 29,319± SF of net rentable area with the remaining 1,200± SF area allocated to the property's maintenance shop. The former dock master's office on site containing 916± SF will be demolished. The submerged portion of the property consists of 96 wet slips, including 27 boat lifts, consisting of 4,734± LF of dock space ranging in size from 22± LF to 88± LF. Upon renovation, the subject's marina will contain 118 wet slips, including 32 boat lifts, consisting of 5,411± LF of dock space ranging in size from 22± LF to 88± LF. The marina offers wet slips, boat lifts, fuel station, dock master's office, ship's store, restrooms/showers, laundry facilities, and on -site restaurant (Monty's Raw Bar) and retail/office building. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1 Bayshore Landing Marina 16-091-02 EXECUTIVE SUMMARY SITE DESCRIPTION The subject's site consists of approximately 291,199 SF or approximately 6.69 acres of land, of which 2.14± acres are uplands and 4.55± acres are submerged. The portion of submerged land leased from the City of Miami consists of 1.87± acres. The site is irregular in shape and the uplands are level and at street grade. The site is zoned "CS," Civic Space, under the jurisdiction of City of Miami. CURRENT USE As of the date of the value opinion(s), the subject was being used as a marina with onsite restaurant and retail/office building. For the purposes of this report, the subject is valued as a marina with onsite restaurant and retail/office building. ZONING "CS," Civic Space, under the jurisdiction of City of Miami. OCCUPANCY The retail/office building is 97.5% occupied. The restaurant is 100% owner -occupied. The marina is 100% occupied, not including slips under renovation with boat lifts. CENSUS TRACT 12.086.0068.01 After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as of July 16, 2017, is: $1,500,000 ONE MILLION FIVE HUNDRED THOUSAND DOLLARS The market rent estimate for the subject is calculated as follows: Projected Annual Revenue Revenue Percentage Rent Factor Estimated Rent Rental Dockage $2,400,610 15% $360,092 Restaurant $7,566,790 10% $756,679 Upland Rents $1,780,942 10% $178,094 Total (All Revenues) $11,748,342 $1,294,865 Additional Rent $11,748,342 1.75% $205,596 Estimated Fair Market Rent $1,500,461 Rounded $1,500,000 Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $1,500,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The subject is proposed for renovation of its marina and upland improvements. Therefore, this appraisal is based on the extraordinary assumption the construction will be performed in a workmanlike manner. This appraisal is not based on any hypothetical conditions. The opinion(s) of value are based on reasonably achievable exposure times of 6 to 12 months, assuming the property is properly priced and actively marketed. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 2 Bayshore Landing Marina 16-091-02 PHOTOGRAPHS OF THE SUBJECT RETAIL/OFFICE BUILDING FACING EAST MONTY'S RESTAURANT FORMER DOCKMASTER'S OFFICE (TO BE DEMOLISHED) RETAIL/OFFICE BUILDING FACING WEST MONTY'S RESTAURANT CHJCKEE HUT LOADING DOCK JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3 Bayshore Landing Marina 16-091-02 PHOTOGRAPHS OF THE SUBJECT SUSHI MAKI RESTAURANT COMPASS TENANT MONTY'S RESTAURANT SUSHI MAKI OUTDOOR trosr COMPASS TENANT JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 4 Bayshore Landing Marina 16-091-02 PHOTOGRAPHS OF THE SUBJECT NEW DOCKMASTER'S OFFICE OFFICE ELEVATOR LOBBY TYPICAL OFFICE SPACE NEW DOCKMASTER'S OFFICE TYPICAL OFFICE CORRIDOR OFFICE SPACE UNDER CONSTRUCTION JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 5 Bayshore Landing Marina 16-091-02 PHOTOGRAPHS OF THE SUBJECT BETWEEN DOCKS PARKING LOT SOUTH DOCK BAYSHORE DRIVE FACING SOUTH JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 6 Bayshore Landing Marina 16-091-02 CERTIFICATION We, the undersigned, certify that, to the best of our knowledge and belief: • Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Matthew Roach, MAI, has made a personal inspection of the property that is the subject of this report. • As of the date of this report, Ted Allen, MAI, MRICS has completed the continuing education program for Designated Members of the Appraisal Institute and Matthew Roach, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We have no present or prospective interest in the property that is the subject of this report and no personal interest 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. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The Appraisal Report (Market Rent Study) is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. In addition, our engagement was not contingent upon the appraisal producing a specific value and neither engagement, nor employment, nor compensation, is based upon approval of any related loan application. • Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • 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 Standards of Professional Appraisal Practice of the Appraisal Institute. • No one provided significant real property appraisal assistance to the persons signing this certificate. • The 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. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • The appraisers have performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the date of acceptance of this assignment. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 CERTIFICATION After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as ofJuly 16, 2017, is: $1,500,000 ONE MILLION FIVE HUNDRED THOUSAND DOLLARS The market rent estimate for the subject is calculated as follows: Projected Annual Revenue Revenue Percentage Rent Factor Estimated Rent Rental Dockage $2,400,610 15% $360,092 Restaurant $7,566,790 10% $756,679 Upland Rents $1,780,942 10% $178,094 Total (All Revenues) $11,748,342 $1,294,865 Additional Rent $11,748,342 1.75% $205,596 Estimated Fair Market Rent $1,500,461 Rounded $1,500,000 Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $1,500,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The subject is proposed for renovation of its marina and upland improvements. Therefore, this appraisal is based on the extraordinary assumption the construction will be performed in a workmanlike manner. This appraisal is not based on any hypothetical conditions. The opinion(s) of value are based on reasonably achievable exposure times of 6 to 12 months, assuming the property is properly priced and actively marketed. Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. Ted Allen, MAI, MRICS Matthew Roach, MAI Managing Partner Director Florida -State -Certified General Real Estate Appraiser Florida -State -Certified General Real Estate Appraiser No. RZ426 No. RZ3189 Expires: November 30, 2018 Expires: November 30, 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 8 Bayshore Landing Marina 16-091-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS This Appraisal Report (Market Rent Study) is subject to underlying assumptions and limiting conditions qualifying the information contained in the Report as follows: The valuation opinions(s) apply only to the property specifically identified and described in the ensuing Report. Information and data contained in the report, although obtained from public record and other reliable sources and, where possible, carefully checked by us, is accepted as satisfactory evidence upon which rests the final opinion(s) of property value. We have made no legal survey, nor have we commissioned one to be prepared, and therefore, reference to a sketch, plat, diagram or previous survey appearing in the report is only for the purpose of assisting the reader to visualize the property. It is assumed that all information known to the client andjor the property contact and relative to the valuation has been accurately furnished and that there are no undisclosed leases, agreements, liens or other encumbrances affecting the use of the property, unless otherwise noted in this report. Ownership and management are assumed to be competent and in responsible hands. No responsibility beyond reasonableness is assumed for matters of a legal nature, whether existing or pending. We, by reason of this appraisal, shall not be required to give testimony as expert witness in any legal hearing or before any Court of Law unless justly and fairly compensated for such services. By reason of the Purpose of the Appraisal and the Intended User and Use of the Report herein set forth, the value opinion(s) reported are only applicable to the Property Rights Appraised, and the Appraisal Report (Market Rent Study) should not be used for any other purpose. Disclosure of the contents of this Appraisal Report (Market Rent Study) is governed by the By -Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any opinions as to value, our identity, or the firm with which we are connected, or any reference to the Appraisal Institute or to the MAI Designation) shall be reproduced for dissemination to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior consent and written approval. We have not been furnished with soil or subsoil tests, unless otherwise noted in this report. In the absence of soil boring tests, it is assumed that there are no unusual subsoil conditions or, if any do exist, they can be or have been corrected at a reasonable cost through the use of modern construction techniques. This appraisal is based on the conditions of local and national economies, purchasing power of money, and financing rates prevailing at the effective date(s) of value. We are not engineers and any references to physical property characteristics in terms of quality, condition, cost, suitability, soil conditions, flood risk, obsolescence, etc., are strictly related to their economic impact on the property. No liability is assumed for any engineering -related issues. Unless otherwise stated in this report, we did not observe the existence of hazardous materials, which may or may not be present on or in the property. 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 opinion is predicated on the assumption that there is no such material on or in the property that would cause a loss in value or extend their marketing time. No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 9 Bayshore Landing Marina 16-091-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS Toxic and hazardous substances, if present within a facility, can introduce an actual or potential liability that may adversely affect marketability and value. Such effects may be in the form of immediate clean-up expense or future liability of clean-up costs (stigma). In the development of our opinion(s) of value, no consideration was given to such liabilities or their impact on value. The client and all intended users release Joseph J. Blake and Associates, Inc., from any and all liability related in any way to environmental matters. Possession of this report or a copy thereof does not imply right of publication, nor use for any purpose by any other than the client to whom it is addressed, without our written consent. Cash flow projections are forecasts of estimated future operating characteristics and are based on the information and assumptions contained within the Appraisal Report (Market Rent Study). The achievement of the financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may well vary from the projections contained herein. We do not warrant that these forecasts will occur. Projections may be affected by circumstances beyond our current realm of knowledge or control. 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 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 for 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. Unless otherwise stated in this report, we have no direct evidence relating to this issue and we did not consider possible non-compliance with the requirements of the ADA in forming the opinion of the value of the property. EXTRAORDINARY ASSUMPTIONS The subject is proposed for renovation of its marina and upland improvements. Therefore, this appraisal is based on the extraordinary assumption the construction will be performed in a workmanlike manner. HYPOTHETICAL CONDITIONS This appraisal is not based on any hypothetical conditions. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 10 Bayshore Landing Marina 16-091-02 INTRODUCTION PURPOSE OF THE APPRAISAL The purpose of the appraisal is to develop an opinion of the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as of July 16, 2017. INTENDED USER AND USE OF THE APPRAISAL The intended user of this appraisal is the client, City of Miami -Department of Real Estate & Asset Management. The intended use of this appraisal is to assist the client with loan underwriting purposes. This appraisal is not intended to be used by any other parties, for any other reasons, other than those which are stated here. PERTINENT DATES OF INSPECTION, MARKET RENT AND REPORT This Appraisal Report (Market Rent Study), with its analyses, conclusions and final opinions of market value, is specifically applicable to the following pertinent dates: DATE OF INSPECTION June 19, 2017 DATE OF REPORT July 24, 2017 DATE OF "AS IS" VALUE June 19, 2017 DEFINITION OF FAIR MARKET RENT The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (Tls). Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) EXPOSURE TIME To form an opinion of exposure time, we considered the exposure times of properties similar to the subject in the same or similar sub -markets that have recently sold and/or conversations with local market participants. Based on our research, we are of the opinion that 6 to 12 months is a reasonable exposure time, assuming that the property was reasonably priced and actively marketed. PROPERTY RIGHTS APPRAISED The subject is appraised on the basis of a leased fee interest of the upland improvements and the leasehold interest of the submerged land . SCOPE OF THE APPRAISAL The scope of an appraisal assignment is relative to the intended use of the appraisal. The following outlines the extent of property inspection, market data collection, verification and analysis performed for this assignment. Inspection Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Matthew Roach, MAI, has made a personal inspection of the property that is the subject of this report. This inspection included the interior and exterior of the subject. The inspection was visual in nature, to assess the economic condition of the property, in order to effectively compare it to other properties in the market. We are not engineers, and we did not assess the property from the standpoint of its structural integrity, or to determine whether any latent defects (water leaks, plumbing or electrical problems, etc.) were present. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 11 Bayshore Landing Marina 16-091-02 INTRODUCTION Subject Physical and Economic Characteristics The types of information obtained and the sources providing such information are detailed in the following table. Information Sources Information Type Received? Source Total Gross Building Area Yes Owner Most Recent Deed Yes County Legal Description Yes County Zoning Information Yes City Flood Map Yes Public Records Tax Information Yes County Site Plan Yes Owner Proposed 5th Lease Amendment Yes Owner Type of Analysis Applied The client has requested a market rent study be performed on the property for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina. As such the Cost, Sales Comparison Approach and Income Capitalization Approaches to value were not performed as a market value for the subject was not requested. It is noted that the study is to result in specific conclusions regarding the market rent under the previously described scenario. Extent of Data Research General economic data and market data were reviewed. Comparable sales were compiled from published sources including various reliable publications. Market data compiled for this report include a variety of rent comparables and improved property sales. These data are a result of research specific to the market and pertinent to the subject. The data were verified by buyers, sellers, brokers, managers, government officials or other sources regarded as knowledgeable and reliable. A rental survey of competing properties was conducted, and we provide photographs of all the comparable sales and rentals, where available. Information specific to the subject —such as rent roll, income and expenses, building and site dimensions, subject history and legal description —was provided by the client, owner, and/or representatives of the owner, and is assumed to be correct. Other information, such as zoning and tax records, was obtained from governmental sources. Specific estimates concerning market rent, expenses, vacancy, etc., reflect our judgment based on interpretation of the market data. The reasoning behind such estimates is illustrated throughout each of the approaches to value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 12 Bayshore Landing Marina 16-091-02 INTRODUCTION IDENTIFICATION OF THE PROPERTY The property is commonly known as: Bayshore Landing Marina 2550 South Bayshore Drive Miami, FL 33133 The property is also identified by the Miami -Dade County Tax Assessor's Office as tax parcel number(s) 01- 4122-001-1631. The legal description of the property is assumed to be correct. We have not commissioned a survey, nor have we had one verified by legal counsel. Therefore, we suggest a title company, legal counsel, or other qualified expert verify this legal description before it is used for any purpose. CURRENT USE OF THE SUBJECT As of the date of the value opinion(s), the subject was being used as a marina with onsite restaurant and retail/office building. For the purposes of this report, the subject is valued as a marina with onsite restaurant and retail/office building. HISTORY OF THE SUBJECT The subject was leased by Bayshore Properties from the City of Miami in 1985. The lease was later assigned to Grove Marina Market, LTD, with this company subleasing the property to Marina Restaurant, Ltd in March 1986. Marina Restaurant assigned its lease to Bayshore Restaurant Management Corp. in March 1991. Bayshore Restaurant Management then subleased a portion of its space to Terremark Stone Crab, Inc. The lease agreement was further assigned to Bayshore Landing, LLC in August 2004 and then to Aligned Bayshore Marina, LLC in April 2015. The terms of the original lease state a 50-year term commencing from September 30, 1985 and expiring on May 31, 2035. Lease payments are required at 10% on all gross receipts for raw bar sales, 10% of all upland rents (excluding the restaurant) and 15% of gross receipts from rental dockage. There is a proposed Fifth Amendment to the lease agreement between the City of Miami and Aligned Bayshore Marina, LLC. The lease will be amended as follows: A. New Section 1C will be added. No Liability for Submerged Lands Lease and State Waiver of Deed Restrictions. B. New Section 2A will be added. Lease Extension Term: The term of the lease agreement shall be extended for a period of thirty-two (32) years, commencing on June 1, 2035 (which is the day following the current expiration date of the lease agreement) and ending on May 13, 2067. C. New Section 2A will be added. Renewal Options: The Company shall have the option to renew the lease Agreement for two (2) additional terms of ten (10) years each. D. Section 6 will be amended. Redevelopment Plans: The company shall be solely responsible for construction and cost of all improvements to the marina, building and restaurant located at the property, including but not limited to labor, supplies, materials, equipment, professional services, any surrounding or adjacent municipal, governmental, regulatory requirements, land development, building, electrical, marine related or similar permits, consents, and approvals or any utility and telecommunications or computer hook-ups. E. Section 13 (IV) will be amended to include for clarification that any pass -through charges such as but not limited to electricity charges or common area maintenance fees collected by the Company or sublessees are included in the definition of Gross Sales and/or Gross Receipts. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 13 Bayshore Landing Marina 16-091-02 INTRODUCTION F. New section 13 (VI) and 13 (VII) will be added. Section 13 (VI) Additional Rent: The Company agrees to pay the City a minimum of the greater of Two Hundred Thousand Dollars ($200,000) per lease year, or 1.75% of Gross Receipts derived from the property as Additional Rent. Section 13 (VII) Along with the payment of the Additional Rent, the Company shall provide the city with a statement of Gross Sales specifically detailing the Gross Sales received for the immediately preceding Lease Year audited by a Certified Public Accountant. G. Section 21 will be amended. Insurance: The company shall maintain during the term of the Lease Agreement the following insurance subject to the approval of the City of Miami, Department of Risk Management (a) Property Insurance (b) Business Interruption Insurance (c) Equipment Breakdown (d) Commercial General Liability Insurance (e) Marine Operators Legal Liability (f) Property Coverage Docks and Piers (g) Automobile Liability (h) Workers Compensation (i) Umbrella (j) Liquor (k) Required Policy Provisions (I) Delivery (m) Right to Amend Insurance Requirements. H. Section 22 will be amended. Indemnification. I. New Section 25A will be added. Capital Improvements: The company will set aside funds to complete major capital improvements and property improvements above and beyond any repairs and maintenance. The company shall set aside at least an amount equal to amount specified or 10% per year of Average Repair Costs into a separate reserve account unit 100% of Average Repair Costs is deposited in order to fund capital improvements for the Property. The amounts required to be set aside and years in which they must be spent are as follows: Lease Year Annual Amount — greater of Total To Be Spent in Lease Year 6 —15 $100,000 10% of Average Repair Costs $1,000,000 16 26 - 35 $100,000 10% of Average Repair Costs $1,000,000 36 51— 58 $125,000 10% of Average Repair Costs $1,000,000 59 61— 68 $125,000 10% of Average Repair Costs $1,000,000 69 Total $4,000,000 J. New Section 31A will be added. Transfer Fee: Should the City consent to any transfer, the City shall be entitled to 1.00% of the Gross Sales Amount, if the Lease Agreement is assigned or otherwise transferred or sold within Lease Years 1 through 5 and the City shall receive 1.50% of the Gross Sales Amount if transferred or sold with Lease Years 6 through 10, and the City shall receive 2.00% of the Gross Sales Amount if transferred or sold within Lease Years 11 through 15, and the City shall receive 3.00% of the Gross Sales Amount is transferred or sold within Lease Year 16 though the end of the Lease Term. The same transfer allocation of 3.00% of the Gross Sales Amount shall apply to the first and second renewal term. K. New Section 31B will be added. Refinancing Fee. If the Company engages in any refinancing with respect to the property, then the City shall have the right to participate in such refinancing in an amount equal to 1% of the Loan Proceeds. It is noted that the City of Miami leases a portion of the submerged land area associated with the subject from the State of Florida. The lease terms for this portion of the property stipulate an annual rent of $2,487.18, increasing by CPI annually (considered to be included within the subtenant's base rental rate). The lease term is from July 1, 2014 to July 1, 2024 with the lease being renewable. The Lessee is authorized to construct and operate a 34-slip commercial docking facility to be used exclusively for mooring of commercial and recreational vehicles in conjunction with an upland commercial marina and restaurant with fueling facilities, with a sewage pumpout facility. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 14 Bayshore Landing Marina 16-091-02 INTRODUCTION There is a proposed new lease agreement between the State of Florida and the City of Miami. The new lease terms for this portion of the property stipulate an annual rent of $2,602.12, increasing by CPI annually (considered to be included within the subtenant's base rental rate). The lease term is from March 28, 2017 to July 1, 2024 with the lease being renewable. The Lessee is authorized to construct and operate a 31-slip commercial docking facility to be used exclusively for mooring of commercial and recreational vehicles in conjunction with an upland commercial marina and restaurant with fueling facilities, with a sewage pumpout facility. The subject's upland improvements were originally constructed as a 2-story, steel -framed warehouse hanger with aluminum siding. The improvements were completely renovated in 1989 with the main structure transformed into a restaurant with banquet facilities and retail stores. The subject's docks were renovated and upgraded in 2005, with wooden docks re -planked, garbage bins installed, dock boxes added and the slips' electrical systems replaced. Other improvements that were made at the property included upgrading exterior lighting, as well as the resurfacing of the property's surface parking lot, new electrical wiring installed throughout the majority of the structure, new roof installed, new air-conditioning systems, new Chickee huts, and new interior building surfaces, including all restrooms and common areas. The leasehold position of the property was sold to RCI Marine Inc. for $13,500,000, cash to seller. The Miami -Dade County Property Appraiser's Office Appraiser reports a $3,000,000 transfer in August of 2004 between Grove Marina Market Ltd. and Bayshore Landing LLC (c/o RCI Group). This is recorded in OR Book 22606, Page 2412. The leasehold position of the subject is currently owned by Aligned Bayshore Marina, LLC, who purchased the subject from Bayshore Landing, LLC, on May 21, 2015. The Miami -Dade County Property Appraiser's Office shows the transaction to be a partial interest transfer with a purchase price of $6,950,000, as was recorded in Miami -Dade County property records book 29630-2569. According to the property owner, the total purchase price was $26,150,000, cash to seller, of which $150,000 was a contract extension payment. The current ownership is renovating the property. The retail/office building renovation includes updating the exterior facade, reducing the common area lobby, interior common areas and storage, updating the interior finishes, demolition and relocation of dock master building, and parking lot improvements. The marina renovations include installation of 32 mechanical boat lifts, dredging, new fire line, new piles, dock repairs, and adding 22 slips along the south dock of the marina. We are not aware of any listings, real property transactions, or ownership transfers pertaining to the subject in the three years prior to the date of the "as is" value opinion, other than that which is reported here. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 15 Bayshore Landing Marina 16-091-02 AREA ANALYSIS INTRODUCTION The Miami -Fort Lauderdale -West Palm Beach Metropolitan Statistical Area (MSA) encompasses Broward, Miami -Dade, Monroe and Palm Beach counties, The subject is located in Miami -Dade County, Florida. Miami -Dade County is located in the southeast portion of Florida's east coast and is the southernmost county situated on Florida's mainland. Miami is the county seat of Miami -Dade County, which includes many other incorporated areas such as Miami Beach, Key Biscayne, Coral Gables, South Miami, Pinecrest, Aventura, Hialeah and Homestead. Miami -Dade County boasts an excellent geographic location, allowing it to serve as a gateway to the Caribbean and Latin America. A tourist destination in itself, it is also within a day's drive to some of Florida's major tourist destination cities. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 16 Bayshore Landing Marina 16-091-02 AREA ANALYSIS Development and growth in Miami -Dade County are often attributed to the climate, which draws the northern United States tourist trade during the winter months. Miami -Dade County is a recognized banking and finance center, with over 120 financial institutions featuring a growing community of international banks serving Latin America. This international activity has emerged due to the more than 150 multi- national firms that have established their offices in Miami -Dade in order to direct their Latin American, Caribbean and in some cases, worldwide operations. The growth in business relations between Latin America and Miami -Dade County has been accompanied by ongoing growth in tourism from Latin America. Latin American tourists who enjoy shopping in the United States represent a major demand segment in Miami -Dade County's lodging and retail markets. The concurrency provision in the 1985 Growth Management Act requires that all water, sewer, roads, schools, parks and storm water facilities necessary to support existing improvements be in place before new construction is permitted. Thus, if a location is deficient in one or more categories, the affected infrastructure component must be expanded to support any new construction. A developer may choose to provide the various facilities and/or services necessary to support their project. However, in some cases the expense associated with offsite improvements may render a project economically unfeasible. Transportation Miami International Airport is the largest gateway between the United States and Latin America, and is one of the largest airline hubs in the United States, owing to its proximity to tourist attractions, local economic growth, large local Latin American and European populations, and strategic location to handle connecting traffic between North America, Latin America, and Europe. The Port of Miami is a leader in the maritime industry and home to nearly a dozen of the world's most distinguished cruise lines. The port offers more cargo sailings to more destinations in the Western hemisphere than any other port, and offers access to virtually every port in the world. Metrorail is a 21-mile rapid transit system on an elevated railway providing access to Downtown Miami from portions of both south and north Miami -Dade County. It connects with Metromover, a 30-station, five -mile system, that loops through the center of Downtown Miami's CBD. Metrobus provides the feeder system to Metrorail and bus service to all other parts of Miami -Dade County. A network of 5,640 miles of roadway serves Miami -Dade County, of which 1-95, 1-75, Florida's Turnpike, and the Palmetto Expressway (SR-826) are the most utilized north/south highways, while SR-112, SR-826 and SR-836 are the most utilized east/west expressways. US-1 and SR-A1A are also components of this network. Other primary thoroughfares include 1-395 (east/west), 1-195 (east/west), SR-9, SR-94, SR-874, US-27, US-41 and US-441. Education Miami -Dade County is served by more than 900 public and private secondary and elementary schools. Seven colleges and universities are located in the county. Miami -Dade College currently offers more than 175 programs and 1,500 courses, with enrollment of over 160,000 students. The University of Miami in Coral Gables has more than 15,000 degree -seeking students and offers 150 undergraduate and 192 graduate degree programs. Florida International University, with two campuses, 36,000 students and more than 800 full-time faculty, received the nation's fifth largest philanthropic gift in the history of public higher education —the Wolfsonian Museum on Miami Beach, with 70,000 artifacts worth an estimated $75 million. It was donated to the college in 1997 and features a wide array of objects ranging from high art to pop culture. Four-year degree programs are also available at Barry University, St. Thomas University, Florida Memorial College and Miami Christian College. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 17 Bayshore Landing Marina 16-091-02 AREA ANALYSIS Tourism/Recreation Known mainly for its trendy nightclubs and oceanfront resorts, Miami -Dade County is also a recognized center for the fine arts and the performing arts, offering an array of enriching cultural activities. These include the Miami Art Museum, Museum of Contemporary Art, Miami Art Central, Wolfsonian-FIU, and the Lowe Art Museum, which are filled with collections and exhibitions from all parts of the world. Broadway plays, the Repertory Theater, the Philharmonic, the Opera Guild, and a large number of historical attractions and exhibits are also favorites. Every year, numerous art festivals make their homes in Miami, including the world-renowned Coconut Grove Arts Festival and Art Basel. The Miami Beach Symphony Orchestra and the Greater Miami Opera Association both offer top-notch performances throughout the year. In addition, the Coconut Grove Playhouse, the Actor's Playhouse and the Gusman Center features a variety of plays and dance pieces from local, regional and national troupes. Medical According to the Greater Miami Chamber of Commerce, Miami -Dade County boasts two major medical networks: the Jackson Health System and Baptist Health South Florida. Jackson Health System, the largest group of medical services in the Southeastern United States, is assembled in a medical complex just west of Downtown Miami. At its hub is the University of Miami School of Medicine/Jackson Memorial Medical Center, ranked in the top 10 of more than 8,000 hospitals in the nation and situated in the city limits of Miami. In Miami -Dade County alone, there are more than 29,000 health care professionals and 28 hospitals. The extensive network of community hospitals includes: Mount Sinai Medical Center, Columbia Cedars Medical Center, Hialeah Hospital, Baptist Hospital, Jackson Memorial Hospital, Mercy Hospital and Miami Children's Hospital. AREA DEMOGRAPHIC AND INCOME DATA The following data was obtained from MOODY'S ANALYTICS Precis® U.S. Metro South, 2017. The full report is located in the Addenda, and contains additional information about the social, economic, governmental and environmental forces that influence value. Miami -Miami Beach -Kendall, FL 2009 2010 2011 2012 104.8 -6.0 988.6 -5.6 10.4 -4.0 42.1 2,464 1.1 13.4 624 771.0 211 104.2 -0.5 985.1 -0.3 11.1 5.7 41.5 2,509 1.8 31.1 941 2,262.0 196 104.5 0.2 1,007.3 2.3 9.5 7.4 41.3 2,580 2.8 58.1 962 1,656.0 184 2013 2014 INDICATORS 2015 2016 2017 2018 2019 2020 106.6 108.4 111.1 Gross metro product (C$B) 2.0 1.7 2.5 %change 1,031.3 1,056.7 1,087.7 2.4 2.5 2.9 8.4 7.6 6.8 3.8 1.3 6.2 Total employment (ths) % change Unemployment rate (%) Personal income growth (%) 41.7 42.6 42.9 Median household income ($ths) 2,611 2,642 2,663 Population (ths) 1.2 1.2 0.8 17.8 17.8 11.6 1,819 2,266 2,077 3,250.0 8,050.0 5,654.0 187 208 234 % change Net migration (000) Single-family permits Multifamily permits FIFA house price (1995Q1=100) 114.4 119.3 124.4 129.2 132.9 136.0 2.9 4.3 4.3 3.8 2.9 2.3 1,114.6 1,139.3 1,170.1 1,199.5 1,218.6 1,225.1 2.5 2.2 2.7 2.5 1.6 0.5 5.9 5.2 4.8 4.3 4.1 4.2 5.7 6.4 7.6 7.9 6.0 4.7 44.6 46.1 48.2 50.5 52.4 53.8 2,697 2,734 2,773 2,814 2,855 2,897 1.3 1.4 1.4 1.5 1.5 1.5 23.9 26.7 29.4 31.0 31.7 31.9 2,967 4,613 6,584 7,326 7,329 7,243 8,606.4 7,725.4 10,720.4 8,818.6 7,640.6 8,238.3 256 266 270 269 268 271 Source: MOODY'S ANALYTICS Precis® U.S. Metro South, 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 18 Bayshore Landing Marina 16-091-02 AREA ANALYSIS 1,400 1,200 - 1,000 800 - 600 - 400 200 - 0 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% $60 $50 $40 $30 $20 $10 $0 Total Employment (ths) % Change in Employment 4.00% 2.00% 0.00% -2.00% -4.00% - 6.00% - 8.00% 0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,0 ,ti0 0 ,ti0 ,ti0 ,ti0 ,le ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 19 Unemployment Rate Personal Income Growth ,A ,10 ,y'1 ,1'Y0 43. o 6‘ ,y470 ,° Median Household Income (ths) 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% -4.00% -6.00% $300 $250 $200 $150 $100 $50 $0 ,ti0 ,ti0 ,ti0 0 ,ti0 ,ti0 ,ti0 ,0 ,ti0 ,ti0 ,tiOf? Existing Home Price (ths) .10 ,1'1 P' .y'� .ya ,yh .y� .y'� ,ti4 .y�1 ,y0 ,tiCT' 0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,yo ,ti0 ,ti0 ,ti0 ,ti0 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 19 Bayshore Landing Marina 16-091-02 AREA ANALYSIS 2,700 2,650 2,600 2,550 2,500 2,450 2,400 2,350 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Historic Population Growth (ths) ti $ ti ti ti ti Single -Family Permits p) ,y0 ,1'y '0' ti) ,yb ,yh 4) ti^ 11 ti) ,ti0 CY ,y0 ,ti0 ,ti0 ,ti0 ,0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 Projected Population Growth (ths) 2,950 - 2,900 2,850 2,800 2,750 - 2,700 - 2, 650 - 2,600 - 2,550 co O4 ON' ON, ON' ON, 010 ti ti ti ti ti ti Multi -Family Permits 12,000 10,000 8,000 2,000 ■ i000 !!1IIi:IIiIiIIIII1 el. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. .i7, & ii7, ci,7, ci,7, 6,,, .;?.z.z.z.z, CONCLUSION An analysis of South Florida and more specifically, Miami -Dade County, demonstrates that the area has historically been on a path of growth. Previous population growth is primarily due to in -migration, with the majority of the migrants coming from within the state, as well as New York, Georgia and international sources. With the recession receding, the values of the County's office, industrial, commercial and residential properties have recovered substantially, with decreased vacancies appearing in office complexes, industrial neighborhoods, and shopping centers, and homes increasing in value. Despite the effects of the recent recession, many of the factors that led to Miami -Dade County's historical success remain in place. Therefore, the county will likely continue to grow. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 20 W Flagla St e � P e0 Bird Ave �q crie0rout • O Bayshore Landing Marina 16-091-02 MARKET ANALYSIS AGAIN s a Way t, BlocRd ' Brand Ave • Coral Gables a Jruversity of Miami � J4 SW 72nd St .. NW 11th St a NNW7thSt NEIGHBORHOOD MAP CO a g Marlins Park i c R sW82ndSt �' Lr SW gam St Miami a4P at6 Vizcaya a s Museum Gar Map data G2016 Googie JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 21 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS INTRODUCTION A property is an integral part of its surroundings and must not be treated as an entity separate and apart from its surroundings. The value of a property is not found exclusively in its physical characteristics; physical, economic, political and sociological forces in the area interact to give value to a property. In order to determine the degree of influence extended by these forces on a property, their past and probable future trends are analyzed. Therefore, in order to form an opinion of the value of a property, an analysis is made of the area in which the property under study is found. This area is referred to as a neighborhood. A neighborhood can be a portion of a city, a community or an entire town. It is usually an area which exhibits a fairly high degree of homogeneity as to use, tenancy and certain other characteristics. Homogeneity is a state of uniform structure or composition throughout. Therefore, in real estate terminology, a homogeneous neighborhood is one in which the property types and uses are similar. A neighborhood is more or less a unified area with somewhat definite boundaries. As a neighborhood's boundaries serve to limit the physical area that exerts germane influences on a property's value, the boundaries may indeed run concurrent with variations in prevailing land uses or physical characteristics. LOCATION The subject is located on the south side of Bayshore Landing Drive within the Coconut Grove area of Miami, FL. We defined the neighborhood based on the prevailing land uses in the area. Generally, the subject's neighborhood is bordered by South Dixie Highway and Rickenbacker Causeway to the north, Le Jeune Road to the west and Biscayne Bay to the south and east. The neighborhood is easily accessible from all parts of Miami -Dade County through an extensive highway network. US-1, located several blocks north of the subject, is a major north/south thoroughfare through the area and connects with Interstate-95, approximately 2 miles west of the subject and the Palmetto Expressway approximately 6 miles west of the subject. ACCESSIBILITY 1-95 is a major interstate highway that runs along the entire east coast of the United States and provides access to all parts of northern Miami -Dade, Broward, and Palm Beach counties, as well as the entire state through extensive connecting highways. 1-95 also provides access to 1-395, located approximately 4 miles north and 1-195, located approximately 6 miles north of the subject. These thoroughfares provide access to the western portions of Miami -Dade County as well as the area's beaches. The Palmetto Expressway provides accessibility to northern Miami -Dade County as well as 1-75, 1-95 and the Dolphin Expressway. Southern Miami -Dade County is accessible via US-1. US 1 travels along the east coast of Florida, beginning at 490 Whitehead St. in Key West and passing through Miami, Hollywood, Fort Lauderdale, West Palm Beach, Fort Pierce, Melbourne, Cocoa, Titusville, Daytona Beach, Palm Coast, St. Augustine, and Jacksonville. US 1 in Florida is generally a four -lane divided highway. The subject site has access from Bayshore Landing Drive. DEVELOPMENT The Coconut Grove area is primarily an upper-class residential area that is known for its festivals, as well as its art galleries, nightclubs, sports bars, shopping, and wide variety of restaurants. The Coconut Grove Arts Festival is a nationally recognized, juried art show that attracts internationally known artists. Other amenities in the area include: the Wyndham Grand Bay Hotel (a four -star hotel), Cocowalk (a 143,000 SF shopping facility), Mayfair (a hotel and 204,000 SF of shopping), the Coconut Grove Convention Center, the Coconut Grove Playhouse, and the Dinner Key Marina. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 22 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Coconut Grove has numerous restaurants, open air and streetside cafes, and several waterfront restaurants and bars. By night, the Grove becomes a center of nightlife frequented by locals, young professionals, students from the -nearby University of Miami and Florida International University, and tourists. Shopping is abundant in the Grove, with two open-air malls, CocoWalk, the Streets of Mayfair, and many other street shops and boutiques. The Village Center, the three blocks radiating from and focusing on the intersection of Main, McFarland, and Grand Avenues, home to the majority of the retail and restaurant business in the Grove, is also home to three gyms, a multiplex movie house in CocoWalk, several parking garages, a state historic site, an elementary school, a City of Miami fire station, several large condos and residential rental towers, the Coconut Grove Post Office, and two sizable parks. Development and redevelopment continue to redefine and transform the area. The 250-room Ritz Carlton Hotel located at SW 27th Avenue, Tigertail Avenue and Cornilia Drive is one of the newest developments within the neighborhood. This five-star hotel occupies 11 floors of a 20-story building, with the top floors containing luxury condominiums. Grovenor House, located at 2627 South Bayshore Drive, is another new project within the neighborhood. This is a 32-story, luxury high-rise condominium building that was built by the developer of the Santa Maria and Bristol Tower. This project was completed in 2006. The eastern border of Coconut Grove is Biscayne Bay, which lends itself to the local boating and sailing communities. The area features the Coconut Grove Sailing Club, Coral Reef Yacht Club, and a sizable municipal marina, Dinner Key Marina. The US Sailing Center is on the Bay between Kennedy Park and the Coral Reef Yacht Club. Pan Am's seaplane operations were based at Dinner Key, and the Miami City Hall is based in the old Pan Am terminal building. Some of the new government -sponsored projects that, taken together, could reframe the central Grove include: • A new, seven -acre, lawn -like Regatta Park on the bayfront site of the demolished Coconut Grove Convention Center oriented to sailing and paddling. The city is now taking bids for construction. • An ongoing reconstruction of Southwest 27th Avenue, the Grove's principal entrance that will add trees, sidewalks and bike lanes. Buckling, narrow sidewalks on Main Highway will be rebuilt and expanded at the intersection with Grand Avenue and McFarlane Road. Sidewalks on Commodore Plaza have already been rebuilt and widened and new street trees planted. • A planned expansion, revamping or reconstruction of the historic Coconut Grove Playhouse, a village lodestar whose abrupt demise seven years ago produced a string of vacant storefronts next door on Main Highway. Miami -Dade County is about to announce selection of architects to develop a plan. • A planned new restaurant, by the chef at Coral Gables' Eating House, in one half of the Glass House in underused Peacock Park, once the Grove's central gathering spot, and a new community center in the other half. • The planned replacement of the aging Scotty's Landing and Chart House restaurants with three new waterfront dining spots and a refurbishing of the adjacent marina, though the project has been held up by litigation. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 23 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS The redevelopment binge extends to the Tong -neglected, West Coconut Grove, a historic Bahamian community that extends west from the village center along Grand. The nonprofit Coconut Grove Collaborative Development Corporation and affordable -housing developer Pinnacle Housing Group are building a 56-unit apartment complex for people 55 and older, the first new housing on the avenue in decades. Its developers hope Gibson Plaza signals a new start for the West Grove, helping stabilize a community that has been steadily losing population, including much of its middle class. They say the $22 million project ought to persuade Grove business people to invest in the West Grove in a way that ensures its residents participate in the rest of the village's prosperity. Development in the subject's neighborhood consists of high rise office and condominium buildings facing the water, with smaller office, retail, hotel and residential buildings stepping back from the water. Most improvements are well maintained. The improvements in the neighborhood vary widely in age, some were built in the early 1990s and others are brand new. The overall quality and condition of the improvements are considered to be average to good. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 24 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS DEMOGRAPHICS The Site To Do Business is a service that provides demographic data, including historical, current and forecasted population estimates for a specified region. Patterns of development, density and migration are reflected in the population estimates. A survey of the subject area's population and growth rate is summarized in the following charts, followed by a map of the surveyed area. Demographics 2017 2022 Summary 1 mile 3 mile 5 mile 1 mile 3 mile 5 mile Population 18,272 171,293 438,243 19,397 180,350 466,130 Households 8,360 69,480 175,339 8,824 72,901 187,125 Families 4,362 40,984 100,353 4,600 42,960 106,128 Average Household Size 2.18 2.44 2.44 2.19 2.45 2.43 Owner Occupied Housing Units 3,995 25,707 59,517 4,204 26,781 62,282 Renter Occupied Housing Units 4,365 43,773 115,821 4,619 46,121 124,843 Median Age 41.5 42.4 40.6 42.4 43.4 41.4 Population by Age 1 mile 3 mile 5 mile 1 mile 3 mile 5 mile 0 - 4 5.1% 5.0% 5.0% 5.0% 4.9% 5.0% 5 - 9 4.5% 5.0% 5.0% 4.7% 4.8% 4.7% 10 - 14 4.0% 4.8% 4.7% 4.5% 5.0% 4.9% 15 - 19 3.7% 4.7% 5.0% 3.9% 4.9% 5.1% 20 - 24 5.4% 5.9% 6.7% 4.8% 5.3% 6.3% 25 - 34 16.8% 14.2% 15.6% 15.3% 13.2% 15.0% 35 - 44 15.4% 14.0% 14.0% 15.6% 14.0% 14.0% 45 - 54 13.3% 14.1% 13.7% 13.0% 13.2% 12.9% 55-64 13.1% 12.7% 12.0% 12.2% 13.1% 12.5% 65 - 74 10.7% 10.3% 9.6% 11.8% 11.3% 10.5% 75 - 84 5.5% 6.4% 5.9% 6.6% 7.1% 6.5% 85+ 2.5% 3.1% 2.7% 2.6% 3.1% 2.7% Households by Income 1 mile 3 mile 5 mile 1 mile 3 mile 5 mile <$15,000 11.40% 19.10% 20.10% 10.00% 17.60% 18.40% $15,000 - $24,999 8.90% 13.10% 13.40% 7.60% 11.60% 11.80% $25,000 - $34,999 9.40% 11.10% 10.80% 7.60% 9.60% 9.30% $35,000 - $49,999 13.50% 12.40% 12.40% 11.20% 10.90% 10.80% $50,000 - $74,999 15.10% 14.00% 14.30% 15.00% 14.40% 14.60% $75,000 - $99,999 9.40% 7.70% 8.30% 11.10% 9.70% 10.60% $100,000 - $149,999 12.40% 9.80% 9.70% 14.40% 11.70% 11.90% $150,000 - $199,999 6.60% 4.90% 4.30% 7.60% 5.50% 4.90% $200,000+ 13.40% 7.90% 6.90% 15.50% 8.90% 7.70% Median Household Income $59,185 $42,011 $40,933 $71,867 $50,338 $49,565 Average Household Income $103,278 $78,807 $74,300 $120,100 $90,426 $85,790 Per Capita Income $47,246 $32,215 $30,220 $54,615 $36,794 $34,904 Source: Site To Do Business JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 25 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Trends: 2017 - 2022 Annual Rate 1 mile Radius Area State National Population 1.20% 1.36% 0.83% Households 1.09% 1.30% 0.79% Families 1.07% 1.25% 0.71% Owner HHs 1.03% 1.19% 0.72% Median Household Income 3.96% 2.13% 2.12% 3 mile Radius Area State National Population 1.04% 1.36% 0.83% Households 0.97% 1.30% 0.79% Families 0.95% 1.25% 0.71% Owner HHs 0.82% 1.19% 0.72% Median Household Income 3.68% 2.13% 2.12% 5 mile Radius Area State National Population 1.24% 1.36% 0.83% Households 1.31% 1.30% 0.79% Families 1.13% 1.25% 0.71% Owner HHs 0.91% 1.19% 0.72% Median Household Income 3.90% 2.13% 2.12% Source: Site To Do Business Source: Site To Do Business JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 26 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS LIFE CYCLE A neighborhood's life cycle usually consists of four stages: • Growth - a period during which the neighborhood gains public favor and acceptance • Stability - a period of equilibrium without marked gains or losses • Decline - a period of diminishing demand • Revitalization - a period of renewal, redevelopment, modernization, and increasing demand Source: The Appraisal of Real Estate, 14th Edition The neighborhood is currently in its stability stage, a period known as equilibrium without marked gains or losses. This is evidenced by the lack of land available for new development, as the subject's neighborhood is approximately 98% developed with very little vacant land available. CONCLUSION We researched germane influences that could possibly affect the value of the property in the area. This research did not produce any factors that could be negative or undesirable. In fact, just the opposite was found. The subject and the surrounding neighborhood appear to be operating in a stabilized environment with no rapid changes currently taking place. Several factors have combined for the success of the district, of which accessibility and location have had the most positive influence. Finally, we are of the opinion that the neighborhood should experience continued stability building upon the solid foundation it has established as a commercial and residential district. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 27 Bayshore Landing Marina 16-091-02 DESCRIPTION OF THE SITE PARCEL ADDRESS PARCEL NUMBER LOCATION SIZE UPLAND SUBMERGED LAND ZONING ADJACENT PROPERTIES - NORTH ADJACENT PROPERTIES - SOUTH ADJACENT PROPERTIES - WEST ADJACENT PROPERTIES - EAST TRAFFIC COUNT TRAFFIC COUNT YEAR LEGAL DESCRIPTION MAP LATITUDE/LONGITUDE PRIMARY FRONTAGE STREET PRIMARY FRONTAGE STREET LENGTH VIEW ACCESS INGRESS/EGRESS SITE VISIBILITY STREET LIGHTING STREET CONDITION SIDEWALKS CURBS AND GUTTERS LANDSCAPING TOPOGRAPHY SHAPE REQUIRED SITE WORK SOIL CONDITIONS AND DRAINAGE FLOOD ZONE FLOOD ZONE DEFINITION OTHER HAZARDS ENCUMBRANCES AND EASEMENTS ENVIRONMENTAL HAZARDS WETLANDS AND WATERSHEDS 2550 South Bayshore Drive, Miami, Miami -Dade County, FL 33133 01-4122-001-1631 The subject is located on the south side of Bayshore Landing Drive within the Coconut Grove area of Miami, FL 291,199 SF or 6.69 acres 93,218 SF or 2.14 acres 197,981 SF or 4.55 acres The parcel is zoned "CS," under the jurisdiction of City of Miami. Condominium Condominium Parking lot Marina 18,300 2016 See Addenda 25.732157/-80.232371 Bayshore Landing Drive 242 feet Good The subject site has access from Bayshore Landing Drive. The subject site has ingress/egress from Bayshore Landing Drive. Good Good Paved with asphalt Good Good The subject's landscaping is typical for the area. The subject's topography is level and at street grade. The subject site is irregular in shape. Typical clear and grade The soil conditions observed at the subject appear to be typical of the region and adequate to support development. The site lies within Zone V. This information was obtained from the National Flood Insurance Rate Map Number 12086C0746L dated September 11, 2009. Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. No base flood elevations are shown within these zones. In communities that participate in the NFIP, mandatory flood insurance purchase requirements apply to this zone. None There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assumptions. The subject has ocean frontage and submerged land in Biscayne JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 28 Bayshore Landing Marina 16-091-02 DESCRIPTION OF THE SITE ADEQUACY OF UTILITIES PUBLIC ELECTRICITY WATER SUPPLY TYPE SEWER TYPE NATURAL GAS UNDERGROUND UTILITIES POLICE AND FIRE PROTECTION RAIL SPUR/ACCESS SITE IMPROVEMENTS CONCLUSION Bay. The subject's utilities are typical and adequate for the market area. Florida Power and Light City water City sewer City gas Yes City of Miami No Site improvements include asphalt paving, exterior building and concrete pole lighting, landscaping, canopy covered entrance, concrete decking, and marina wet slips. The subject site is considered well -suited to functionally support its current use. AERIAL PHOTOGRAPH JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 29 Bayshore Landing Marina 16-091-02 DESCRIPTION OF THE IMPROVEMENTS Building Summary Building Name/ID Bayshore Landing Marina Number of Gross Building Net Rentable Number of Year Built Condition Floors/Stories Area Area Slips 1989 Good 2 54,928 53,728 96 GENERAL DETAILS DESCRIPTION LAND TO BUILDING RATIO FLOOR AREA RATIO PARKING TYPE PARKING SPACES CONDITION OF PARKING LOT PARKING RATIO PARKING DESCRIPTION TENANT TYPE DEFERRED MAINTENANCE DESIGN AND FUNCTIONAL UTILITY PLANNED CAPITAL IMPROVEMENTS Briefly described, the subject consists of a marina with on -site restaurant (Monty's Raw Bar) and retail/office building known as Bayshore Landing Marina located in the Coconut Grove neighborhood of the City of Miami that contains upland and submerged land areas. The marina is a privately -operated marina under an existing ground lease from the City of Miami and a submerged land lease from the State of Florida. The restaurant consists of 10,362± SF of interior area. The restaurant also includes 14,047± SF of outdoor Chickee Hut covered patio area that sits adjacent to the marina. The subject's total restaurant area is 24,409± SF. The retail/office building currently contains 28,467± SF of usable SF and 29,319± SF of net rentable area with the remaining 1,200± SF area allocated to the property's maintenance shop. The former dock master's office on site containing 916± SF will be demolished. The submerged portion of the property consists of 96 wet slips, including 27 boat lifts, consisting of 4,734± LF of dock space ranging in size from 22± LF to 88± LF. Upon renovation, the subject's marina will contain 118 wet slips, including 32 boat lifts, consisting of 5,411± LF of dock space ranging in size from 22± LF to 88± LF. The marina offers wet slips, boat lifts, fuel station, dock master's office, ship's store, restrooms/showers, laundry facilities, and on -site restaurant (Monty's Raw Bar) and retail/office building. 5.42 to 1 0.18 Parking structure 47 Good 0.87 spaces per 1,000 SF There is a pay parking lot owned by the City of Miami located across the street from the subject that is commonly used by the subject's patrons. Multi -Tenant From an inspection of the property, no visible items of deferred maintenance were noted. The overall layout of the improvements on the parcel is considered to be average. The current ownership is renovating the property. The retail/office building renovation includes updating the exterior facade, reducing the common area lobby, interior common areas and storage, updating the interior finishes, demolition and relocation of dock master building, and parking lot improvements. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 30 Bayshore Landing Marina 16-091-02 DESCRIPTION OF THE IMPROVEMENTS The marina renovations include installation of 32 mechanical boat lifts, dredging, new fire line, new piles, dock repairs, and adding 22 slips along the south dock of the marina. UPLAND BUILDING DETAILS BUILDING NAME Bayshore Landing Marina BUILDING DESCRIPTION Restaurant/retail/office MARSHALL VALUATION SERVICE C CLASS CONSTRUCTION TYPE Concrete Block with Stucco MARSHALL VALUATION SERVICE Average QUALITY YEAR BUILT RENOVATIONS EFFECTIVE AGE TOTAL ECONOMIC LIFE REMAINING ECONOMIC LIFE CONDITION APPEAL AND APPEARANCE NUMBER OF BUILDINGS NUMBER OF STORIES GROSS BUILDING AREA NET RENTABLE AREA CURRENT OCCUPANCY CURRENT VACANCY STABILIZED OCCUPANCY STABILIZED VACANCY BUILDING EFFICIENCY RATIO 1989 2005, 2017 15 45 30 Good Good 3 2 54,928 53,728 97.5% 2.5% 95% 5% 97.82% UPLAND CONSTRUCTION DETAILS CONSTRUCTION TYPE FOUNDATION FRAME EXTERIOR WALLS/FINISH WINDOWS ROOF TYPE ROOF COVER FLOOR PLAN LAYOUT FLOOR COVERING INTERIOR WALLS CEILING COVER INTERIOR LIGHTING RESTROOMS HVAC UTILITIES ELECTRICAL PLUMBING Concrete Block with Stucco Poured concrete slab Masonry Frame Concrete Block Aluminum -framed plate glass Flat Tar and gravel Average Carpet, Linoleum, Tile Painted drywall Suspended Fluorescent fixtures There are separate men's and women's restrooms. The restrooms have tiled floors, tiled or painted walls and contain fixtures that are commercial quality. Package Units All necessary utilities are available to the subject improvements, including public water & sewer, electricity, and telephone. Assumed to be in compliance with prevailing code requirements. Assumed to be in compliance with prevailing code requirements. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 31 Bayshore Landing Marina 16-091-02 DESCRIPTION OF THE IMPROVEMENTS FIRE SPRINKLER NUMBER OF ELEVATORS ENTRANCES AND EXITS LOBBY DESCRIPTION BUILDING COMMENTS Yes One passenger elevator and one freight elevator. Entrances and exits consist of commercial glass panel doors. The lobby and common hallways have ceramic tile and hardwood flooring. The walls are painted drywall. The ceilings are suspended with acoustical ceiling tiles. The subject improvements are considered well -suited to functionally support its current use. MARINA DOCKS DETAIL The submerged portion of the property consists of 96 wet slips, including 27 boat lifts, consisting of 4,734± LF of dock space ranging in size from 22± LF to 88± LF. Upon renovation, the subject's marina will contain 118 wet slips, including 32 boat lifts, consisting of 5,411± LF of dock space ranging in size from 22± LF to 88± LF. The marina offers wet slips, boat lifts, fuel station, dock master's office, ship's store, restrooms/showers, laundry facilities, and on -site restaurant (Monty's Raw Bar) and retail/office building. The marina consists of two concrete docks with concrete and wood piles and wooden finger piers and a wood dock with wood piles. The docks were renovated and upgraded in 2005, with wooden docks re - planked, garbage bins installed, dock boxes added and the slips' electrical systems replaced. The current ownership plans to renovate the property. The marina renovation includes installation of 32 mechanical boat lifts, dredging, new fire line, new piles, dock repairs, and adding 22 slips along the south dock of the marina. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 32 Bayshore Landing Marina 16-091-02 ZONING ZONING The subject is zoned "CS," Civic Space, under the jurisdiction of City of Miami. The civic zone consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent setbacks and landscape. Permitted uses include public and private parks, recreational facilities, educational and cultural facilities, marine and marina facilities, entertainment facilities, social and health related service facilities, public safety, and City of Miami administrative facilities, parkways and scenic corridors. Based on a review of the subject in relation to the CS zoning district, it appears the subject is a legal and conforming use of the site. However, we are not experts in determining if a property is fully in compliance with all aspects of the zoning code. We suggest interested parties obtain a letter of zoning compliance from the City of Miami to determine if the subject is zoning compliant. PERMITS The subject property has a permit from the Florida Department of Environmental Protection, Permit No. 13-0315232-006-EM. The permit authorizes the reconfiguration of an existing docking facility by removing existing finger piers and mooring piles installing four 9.5-foot by 2-foot finger piers. The activities also include the installation of five boatlifts and 40 mooring piles. The docking facility within the marina basin shall accommodate a maximum of 118 vessels. This permit authorizes approximately 25,000 feet (0.57 acres) of impacts to surface waters. The subject also has a permit from the City of Miami Building department, Permit No. BD16-017115-001- B001. The permit authorizes construction of new wet slips along the south dock of the marina. JOSEPH J. BIAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 33 Bayshore Landing Marina 16-091-02 TAXES The subject is assessed by the Miami -Dade County property appraiser's office, and is taxed by the City of Miami and Miami -Dade County. According to public records, it appears there are no unpaid taxes as of the date of this report. The following table summarizes the subject's assessment and taxes: Folio Number 2015 Total Market Value Total Assessed Value Assessed Value Millage Rate Taxes (Assessed Value Millage Rate) Total Tax Rate Ad Valorem Taxes Non Ad Valorem Taxes Total Taxes Taxes with 4% Discount 01-4122-001-1631 $6,200,000 $6,200,000 $14.5036 $89,922 $21.8256 $135,319 $0 $135,319 $129,906 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 34 Bayshore Landing Marina 16-091-02 HIGHEST AND BEST USE In determining the highest and best use of the property, consideration was given to the economic, legal, and social factors that motivate investors to develop, own, buy and sell, manage, and lease real estate. In forming an opinion of the highest and best use of a vacant parcel of land, there are essentially four stages of analysis: • Physically Possible Use: What uses of the site in question are physically possible? • Legally Permissible Use: What uses are permitted by zoning and deed restrictions on the site in question? • Financially Feasible Use: Which possible and permissible uses will produce a gross return to the owner of the site? • Maximally Productive: Among the feasible uses, which will produce the highest return or highest present worth of the site in question? The following tests must be met in estimating the highest and best use of a vacant parcel: the potential use must be physically possible and legally permissible, there must be a profitable demand for such a use, and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject's site and are discussed as follows: PHYSICALLY POSSIBLE The site is on Bayshore Landing Drive, within Miami -Dade County, FL. The underlying site consists of approximately 291,199 SF or approximately 6.69 acres. The subject's topography is level and at street grade. As noted in the Assumptions and Limiting Conditions, we know of no environmental or engineering study that has been conducted on the site to determine subsoil conditions. Upon analysis of all physical aspects, space, size, shape, terrain, location and others the most supportable highest and best use of the site, as it relates to physical properties, is a marina with onsite restaurant and retail/office building. LEGALLY PERMISSIBLE The subject's site is zoned "CS," Civic Space, under the jurisdiction of City of Miami, FL. Reference is made to both the Zoning and Addenda section of this report. Permitted uses include public and private parks, recreational facilities, educational and cultural facilities, marine and marina facilities, entertainment facilities, social and health related service facilities, public safety, and City of Miami administrative facilities, parkways and scenic corridors. Upon analysis of the permitted uses, the most supportable highest and best use of the site, as it relates to what is legally permissible, is a marina with onsite restaurant and retail/office building. FINANCIALLY FEASIBLE Analysis for financially feasible uses for the site, as if vacant, involves consideration of several criteria. Unlike the physically possible and legally permissible aspects of the highest and best use analysis, many external economic factors serve to prove or disprove financial feasibility. The cost of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price forecast, property tax implications and measures of risk and yield are all determinant to this analysis. The above financial measures serve to eliminate the uses that would not provide a reasonable return to the land based on an investor's expectations. The cost of land and its development limits the highest and best use of the site, generally to only those uses that are financially feasible. We conclude that the most financially feasible uses of the site that are physically possible and legally permissible are a marina with onsite restaurant and retail/office building. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 35 Bayshore Landing Marina 16-091-02 HIGHEST AND BEST USE MAXIMALLY PRODUCTIVE We considered those uses, as aforementioned, to meet the physically possible, legally permissible and financially feasible tenets of the highest and best use definition. The final criteria for full compliance within the highest and best use of the subject, as vacant, is that of a maximally productive use. We conclude the maximally productive use of the site is to maximize the utility of the site in relation to the zoning. HIGHEST AND BEST USE, AS IF VACANT A final reconciliation of the analysis leads to the conclusion that the highest and best use of the site, as if vacant, is a marina with onsite restaurant and retail/office building. HIGHEST AND BEST USE, AS IMPROVED We must also determine the highest and best use of the subject, as improved, by analyzing occupancy levels of various surrounding improvements, as well as the general needs within the area. The current ownership is renovating the property. The retail/office building renovation includes updating the exterior facade, reducing the common area lobby, interior common areas and storage, updating the interior finishes, demolition and relocation of dock master building, and parking lot improvements. The marina renovations include installation of 32 mechanical boat lifts, dredging, new fire line, new piles, dock repairs, and adding 22 slips along the south dock of the marina. Based on the current conditions of the subject's market, the highest and best use of the subject, as improved, is renovation of the current improvements similar to the proposed construction plans. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 36 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS MARINA MARKET ANALYSIS The purpose of this discussion is to provide an overview of the economic vitality of the recreational marina marketplace influencing the subject. The industry will be briefly considered on a national basis before detailing the subject's local, competitive market. In the course of the research of the recreational marina marketplace, we interviewed a variety of industry experts, including real estate professionals, marina developers, owners of marinas and local officials. We also consulted with the industry's trade associates and trade publications, including the International Marina Institute, the National Marine Manufacturers Association, and the Boating industry Magazine. Interviews were conducted and factual material was gathered to ascertain historical, current and projected market conditions. Data includes industry revenue figures, slip occupancy and rental rates, availability of financing and environmental concerns. Industry Snapshot The U.S. marina industry includes about 3,800 establishments (single -location companies and units of multi - location companies) with combined annual revenue of about $4 billion. Demand is driven by ownership rates for power boats and sailboats. The profitability of an individual marina depends on location and good marketing. Large companies have the resources to advertise and negotiate better prices with suppliers, builders, and maintenance firms. Small companies can compete by offering customized services or preferred locations. The US industry is highly fragmented: the top 50 companies account for about 15% of industry revenue. More than 90% of US marina operators have only one location. According to FirstResearch the primary driver of revenue at nearly every marina is the slip rentals. The main business of marinas is renting slips (dockside spaces) and moorings (anchored buoys). Marinas also sell fuel and other items and provide maintenance services. About 40% of industry revenue comes from slip and storage fees, 15% from maintenance, and 10% from fuel sales. Other sources of revenue include sales of food (5%) and marine equipment (5%). Revenue by Product - US Census Bureau Slip & storage fees. 40% Maintenance. 15% - Source: FirstResearch JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 37 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS A typical marina has 50 to 150 slips, but some very large marinas, such as Dana Point Marina in Orange County, California, can have more than 1,000 slips. The major operating activities of a marina are similar to those of a hotel, and revolve around managing rentals, managing personnel, maintaining the property, and supplying services. Occupancy rates and rental rates are a constant source of attention for managers. Many marinas use specialized computer programs to manage reservations and billings. Marinas increasingly use websites as marketing and booking tools. According to the 2014 Recreational Boating Statistical Abstract, published by the National Marine Manufacturers Association in 2015, recreational boating continues to be an important factor to the U.S. economy, contributing $35.4 billion in direct sales of products and services in 2014, a 3.5% decrease from 2013. • Of the 242.5 million adults living in the United States in 2014, 35.7% or 87.3 million people participated in recreational boating at least once during the year, relatively unchanged from 2013. Since 2011, boating participation has ranged from 34.8% to 37.8% of the population. • Annual retail sales of new boats, engines & marine accessories in the U.S. totaled $16.4 billion in 2014. • New boat sales were up 0.5% to 534,500 units in 2014. • New traditional powerboat sales increased 6.4% to 171,500 units in 2014. • New sailboats sold at retail increased 33.9% to 7,500 units. • New personal watercraft sales increased 21.6% to 47,900 units. • New boat imports totaled $2.3 billion, up 7.2% in 2014; units were up 17.7% to 794,174. • New boat exports totaled $2.1 billion, down 0.6% in 2014; units were down 6.7% to 208,532. • Total engine sales, including topline, outboard, inboard and sterndrive engines, were 243,200 units, up 3.4% in 2014. • Outboard engines sales were up 4.5% to 218,400 units; retail sales reached $2.5 billion, up 8.6%. • Aftermarket accessory sales totaled $5.6 billion in 2014, an increase of 14.7%. • Americans are taking to the water: 35.7% of the U.S. adult population-87.3 million Americans - participated in recreational boating at least once in 2014. • Boats are uniquely made in America: 94.9% of powerboats sold in the U.S. are made in the U.S. • There were an estimated 12 million registered boats in the U.S. in 2014. • 95% of boats on the water (powerboats, personal watercraft, and sailboats) in the U.S. are less than 26 feet. • An estimated 940,500 pre -owned boats (powerboats, personal watercraft, and sailboats) were sold in 2014. JOSEPH J. BLAKE AND ASSOCIATES, INC. PEAL ESTATE VALUATION AND CONSULTING 38 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Boating Demographics and Participation Boating is primarily a middle-class lifestyle as 71.5% of American boat owners have a household income Tess than $100,000. Of the 242.5 million adults living in the United States in 2014, 35.7% or 87.3 million people participated in recreational boating at least once during the year, relatively unchanged from 2013. Since 2011, boating participation has ranged from 34.8% to 37.8% of the population. NO. OF ADULTS GOING % OF 18+ WHO YEAR BOATING (MIWONS) WENT BOATING 1990 67.4 36 5% 1991 67.2 36.3% 1992 67.9 36.1 % 1993 68.7 362% 1994 69.6 362% 1995 70.0 35.6% 1996 70.7 36.0% 1997 71.3 35.8% 1998 68.0 33.6% 1999 68.2 33.4% 2000 67.5 32.3% 2001 62.1 292% 2002 65.5 30.4% 2003 63.0 28.9% 2004 63.4 28.8% 2005 57.9 26.0% 2006 60.2 26.6% 2007 66.4 292% 2008 70.1 30.5% 2009 65.9 28.3% 2010 75.0 32.4% 2011 82.7 34.8% 2012 87.8 37.8% 88.5 36.6% 2014 17.3 35.711 Source: National Marine Manufacturers Association, Market Statistics Department, 2015 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 39 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS The following chart summarizes the number of adults in the US involved in boating activities: 100 90 80 70 C 60 a 50 40 2 30 20 10 0 so si 12 10 V4 495 16 V7 VO 19 TO '01 TO V3 V4 V5 T6 '07 V8 TS 10 11 12 13 14 ■ % OF 18+ WHO WENT BOATNG ■ NO OF ADULTS GONG BOATNG M1JONS4 Source: National Marine Manufacturers Association, Market Statistics Department, 2015 40% 35% 30% 1 25% I 2 20% IS 1 10%t 5% 0% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 40 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Boating Registrations Boat registrations were up 1.65% in 2014, rising to a total of 12.3 million, compared to 12.1 million the previous year. However, the total number of recreational boats in use during 2014 declined 0.6% to 15.8 million. The following charts summarize the number of registered and non -registered boats: REGISTERED/DOCUMENTED NON -REGISTERED TOTAL YEAR BOATS (MILLIONS) BOATS (MILLIONS) (MILLIONS) 1989 :G 4D. lilr 1990 11.0 5.0 16.0 1991 11.1 5.2 16.3 1992 11 1 5.1 16.3 1993 11.3 4.9 16.2 1994 114 4.8 16.2 1995 11.7 3.6 15.4 1996 121 3.8 15.8 1997 12.4 3.8 16.2 1998 12.7 3.7 16.4 1999 12.8 3.6 16.5 2000 12.9 4.0 16.8 2001 13.0 4.0 17 0 2002 12.9 4.2 172 2003 12.9 4.3 172 2004 12.9 4.5 17.4 2005 130 4.6 17.7 2006 128 4.0 16 8 2007 13.0 4.0 16.9 2008 12.8 3.7 16.5 2009 128 3.8 16.6 2010 12_5 3.7 16.2 2011 12.3 3.7 16.0 2012 122 3.8 16.0 2013 121 3.8 159 2014 est 123 3.6 15.6 Source: National Marine Manufacturers Association, Market Statistics Department, 2014 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 41 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS 18 16 14 12 10 8 6 a4 .o �0 i '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 ■ NON -REGISTERED BOATS ■ RE BOATS Source: National Marine Manufacturers Association, Market Statistics Department, 2014 JOSEPH J. BLAKE AND ASSOCIATES, INC, REAL ESTATE VALUATION AND CONSULTING 42 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Sales by State Consumers spent $16.4 billion on new powerboats, outboard engines, boat trailers and aftermarket accessories collectively in 2014, up 12.3% from 2013. Florida again ranked first in total expenditures for new powerboats, outboard engines, trailers and aftermarket accessories. Spending in Florida increased 22.5% in 2014 compared to 2013. The distribution of new powerboat, engine, trailer and accessory purchases by state are shown on the following chart: 2814 2013 21112 1911 E111 OUTBOARD BOAT AFTERI ARKET TOTAL TOTAL TOTAL TOTAL STATE MWI /11111111IMT1 IMEi TIMM 1106111101W1 EA[111TIIES % iE Ep0101111B 10011110111151 EEOWQINIES Al 11 11943110.103 167163.110 45.292,452 $116202,199 191110111110011 f901 1382,797246 $416536911 130,701731 At 34 114,1112E0 116231,410 11241090 V7.13.011 1101,0119110 13.0E 1139116.596 1133.035,716 1134.661.670 A7 37 10201276 111158212 12112.E6 561,925,416 1172,40519 29.1% 1102.020,712 117.034246 190.91/107 AR 22 11E389.961 163606.112 45911,770 1111947,611 1214.121194 12.8% $262573.016 7776.312,056 $197,00.427 CA 8 1279.194127 86631//01 11.418456 1171540,710 111117/1471 20.9% 1452,107,454 131124/421 1399,723,300 CO 39 swine 110 111161,7E *.M1500 1211.322597 1111016417 22.4% 191,102,363 $97.396992 175.091672 CI 36 21891501 116)52,606 R 426469 839163,011 1175288202 9.5% 1124,449,476 1126016,5211 1117E09.32B 11 9 1470272517 111177,4W 12236332 1001644E4 11807/11017 4.7% /511527,915 4542216,011 1457,610.756 00 51 11234936 11,151,441 $22.56 1179,901 12.115/13 233* 11378406 16,095,078 1.932212 a 1 51271,114311 1346413,711 133.471,966 11 )944,713 82't1.11111j51 725% 11,M$M3,930 s1,1691164,196 11,447,314.111 06 12 119*347 754 119010,903 11. MOM $175294901 $44991t,911 11.4% 1402.704,324 1374.374622 131203.793 1 49 110,721147 18,914,913 V11,471 16.14424 417111j1 -02% 177,120,593 125.549.96 124.036276 O 37 1106535575 $16152,812 11017,170 $31424561 111111141,181 21.1% 5137.061,96 51235312132 11020111214 6 18 1143.762./24 163.613,607 16064.392 $121 1731011,712 4.1% 1319523.9E 1323961,7 o m61912.714 N 25 191,151436 142B06,259 14 747206 19l„: 1233,211281 2.0% 1?M,640,402 1217.340,713 1116511909 6. 30 572,485312 121.637,642 13.494,00 1126,4711467 15% 1171211,471 1111.9172E 11412911536 13 43 534,181623 111.0067E 513193006 124710516 177.116 73 29.3% 167,536246 267297,712 158221G27 a 29 170.015200 S31601.630 61709028 177920,914 11194598/6 66% 1117JEi7,3Q 1175290,132 11421M.713 LA 10 1191,1849E 1112. ,419 113,]E191 $201136,394 111JS11i0 11.0% 5171/1656 451354102/ 1461713516 E 32 1113.751316 119331,435 17.530,721 561906,674 SWA211Q 122% 1149220516 1166.561842 1119,1/..976 50 a 115,924491 136783,225 14.0891081 173.716,376 1M>wc2M 11.8* 1221,426,44 5247962,5W 1209.841166 81 29 51291914677 137525510 14.641,960 156.1100,29 t221171182 14% 9711552,911 V04712,021 1175,976,640 10 3 1322.002.991 1116007,411 116310070 1E1.971407 131112,711,729 111% 1674.152.6E9 V* 113,W13 1410,522406 614 4 5711,915334 $124006124 112.1749116 125606,166 1111,491,M2 19% 4571113,620 4580574704 14 3.7E9.736 06 27 979634111 136511034 54/19192 176E7,416 1111419761 17.1% 1110,515,450 117132/914 Sf36790.013 010 16 1117,747.450 161513.943 1707,100 1143511,514 130,912417 6.4% 53211,741547 1339919,567 1274533.197 13 98 571.050611 116170,45 V074040 134.661911 1127411.122 16.6* S119772,156 56.64,197 101,039.078 11 42 16.131316 $14 1E215 11451361 06/61230 111,279,Z34 1.7% 111211.071 119506,663 171.4E012 41 46 129.349179 16139541 11367,031 $111116,175 164,712.101 31 IL 141539259 146.101,907 140.041614 111 31 197,015.786 11,948.311 CLIC/1774 166220.944 10712771/6 169E $111301,920 1134396.192 $1010Q.517 19 20 1169619.096 128.473568 14 909630 193 di6.402 1M7 7t7A16 11.6% f266A15251V60164406 11240514326 to 50 19601248 13321243 1601.446 s10.ce2,N4 123.178119 11.9E 111402,133 52443569 125729,426 I 5 5302.012016 1115226,561 151.896,403 1200.1E,426 11117.774710 7.3% 1567,306.1116 45417117114 $151212.011 IC 6 52/0319/02 1114600,609 $10397577 1204.813,163 161 ,2M,71/ 119% 1181404,167 4502419,712 1Q2151600 10 35 454,027 49) 030567.625 9*6161309 380.291027 $SQ,071M1 162% 1121,961,731 1124229.531 174.974254 OH 19 1144286619 161631,166 11017,329 11714/9675 13397264/ 9.7% 1298349,902 5301141,767 1246,971.786 06 24 11E,169150 131501153 5459*146 1A19,5111,199 /237461.11411 118% 1200011848 5274.901,671 $209417.646 OR 28 514,797361 146507,411 97561396 152,764712 11/1111927 52* 1171917.070 $110.E1,11,2 1137,011.063 PA 21 1129213.454 151.021,1411 11.641,680 S141.4*186 1211011129 95% 1210.772,931 9791672,0116 1249.V5180 (8 44 516,56611E 11921,799 17311,341 113,912274 552.127, 1% 25.3% 161137,379 164567.041 $44,850961 SC 14 11941391413 176901,417 9*2615.836 116,16,100 S44,71347311 23.1% 5361,19643D 13104,119 1178234096 SD 40 639.802.699 116710,610 11,974667 139230244 417.616541 6.4% 191337,616 196571226 156,111.342 11 16 5169.319102 164246,142 17041666 1140902,604 13111411481 112% 5306429,124 532911/6226 1770.602,117 TX 2 1697204.011 1171547,1111 97i713019 1463,429,014 sumemess 11.9% 11,16992,350 11211413,117 11,021740109 U T 41 149262.671 11946274 1119*912 119,479.310 384`711111 11.3% 184,8111,7811 177.194307 $49,519931 VT 41 V0,158562 1297600 5670.617 $12.112.162 171987.315 193% 130M7210 131470, 41 129313.194 94 17 1162,966175 453112A512 45.666E 1119116428 13 719 960. 13t7373147 1317,06,307 12092941E 19A 13 5231254401 891614,371 17231212 1101207.M 1491.311671 16.1* 1399056,239 21327,176129 1290,126203 114 45 14690121 110./6.129 5129*107 127.91429 1131A694171 42% 162.335.195 S41219124 156474631 IN 7 5711,359300 1103.321,0 3 $11 737,191 SZMUIE9,712 69127 2Q 2.9* 1644666.00 4532961370 136.512.937 14 47 111424.7/1 546172/7 11616271 11229,671 101466/17 21.5% $21974506 136911.511 124.964,194 lllUil VgnStRli'MOW S1M' 0ONS jan SMIBIA13011 12JI1. $1{/111147Aa7M , $1tall,911A0 SIN nleANra'&I ren4,!•ampvaumeaemealTorMirsaebwales Source: National Marine Manufacturers Association, Market Statistics Department, 2014 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 43 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Local Marina Market The State of Florida had a total of 793,113 registered boats as of February 2015. Miami -Dade County had the most registered vessels in the state with 48,754, Monroe County had 22,877, while Broward County had 41,722. The large number of registered vessels provides the basis for the area's marina industry. Boats registered in other states and foreign countries in the winter months join these vessels. However, the total number of vessels has declined over the last few years. In order to determine an appropriate slip value and absorption rate to apply to the subject's slips, we surveyed the following comparables in the subject's market. SUBJECT Name: Location: Slip Rates: Wet Slips - Transient - Additional Live Aboard - Lift Rates Bayshore Landing Marina 2550 Bay Shore Landing Drive, Miami, Florida $30/LF/Month - $54/LF/Month $3.00/LF/Day - $5.00/LF/Day None $1,600 to $2,200 Flat Rate Month Occupancy: 100% Average Boat Length: 56' Maximum Boat Length: 85' Maximum Boat Draft: 9' Dock Style: Concrete and wood Fuel: Yes Gas and Diesel Repair Facilities: •No Amenities: Fuel station, dock master's office, ship's store, restrooms/showers, laundry facilities, and on -site restaurant (Monty's Raw Bar) and retail/office building, located in Coconut Grove Comments: Electric for power boats range from $90.00 for 30 amps to $950.00 for 100 amps triple. Electric for sail boats range from $90.00 for 30 amps to $900.00 for 100 amps triple. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 44 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Name: Location: Slip Rates: Wet Slips - Outside Racks - Transient - Marina Comparable 1 Grove Harbor Marina 2640 South Bayshore Drive, Miami, Florida $35/LF/Month $27.84/LF/Month - $30.73/LF/Month $4.50/LF/Day Occupancy: 100% Average Boat Length: 53' Maximum Boat Length: 150' Maximum Boat Draft: NA Dock Style: Wood and Concrete Fuel: Gas and Diesel Repair Facilities: Yes Amenities: On -site Fresh Market, security, ship's store, showers, laundry facilities, Internet access, located in Coconut Grove Comments: Rates incorporate haul out services. The upland area is improved with a 276-dry slip storage facility (200 outdoor racks and 76 indoor racks), a commercial building with a Fresh Market and retail/office bays. The submerged land area consists of a 58-wet slip marina with concrete docks and concrete pilings. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 45 Bayshare Landing Marina 16-091-02 MARKET ANALYSIS Name: Location: Slip Rates: Wet Slips - Moorings - Transient - Additional Live Aboard - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Dock Style: Fuel: Repair Facilities: Amenities: Comments: Marina Comparable 2 Dinner Key Marina 3400 Pan American Drive, Miami, Florida $19.00/LF/Month $23.36/Day to $322.43/Month $3.00/LF/Day - $36.00/LF/Month $22.70/LF/Month 100% NA 175' 7' Wood and Concrete Gas and Diesel Yes Security, ship's store, showers, laundry facilities, Internet access, US Customs clearing, located in Coconut Grove Dinner Key Marina is the flagship marina of the City of Miami located in Coconut Grove. Dinner Key originally served as base of operations for Pan American Airway's famed flying boats, the Clippers. The original Pan Am terminal building (next door to Dinner Key Marina) now serves as Miami City Hall. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 46 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Name: Location: Slip Rates: Wet Slips - Transient - Marina Comparable 3 MiaMarina at Bayside Marina 401 Biscayne Boulevard, Miami, Florida $19/LF/Month $3.00/LF/Day - $36.00/LF/Month Occupancy: 100% Average Boat Length: NA Maximum Boat Length: 150' Maximum Boat Draft: 7' Dock Style: Wood and Concrete Fuel: Gas and Diesel Repair Facilities: Yes Amenities: Security, ship's store, showers, laundry facilities, Internet access, US Customs clearing, located in Bayside Marketplace Comments: Miamarina is situated within the Bayside Marketplace, a festival mall of over 100 stores, shops, restaurants, and cafes. The marina is located next door to the American Airlines Arena, home of the NBA's Miami Heat. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 47 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Name: Location: Slip Rates: Wet Slips - Outside Racks - Pods - Jet Ski Storage - Transient - Additional Live Aboard - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Dock Style: Fuel: Repair Facilities: Amenities: Comments: Marina Comparable 4 Rickenbacker Marina 3301 Rickenbacker Causeway, Miami, Florida $35.00/LF/Month - $40/LF/Month $30/LF/Month $960/Month $380/Month - $450/Month $5.00/LF/Day - $8.00/LF/Day $145/Month - $545/Month 100% 45' 100' 9' Wood and Concrete Gas, No Diesel No Restaurant, security, ship's store, showers, laundry facilities, Internet access, located on Virginia Key Rates incorporate haul out services. This property is located on Virginia Key near the upscale residential community of Key Biscayne. The property contains Whiskey Joe's restaurant and is adjacent to the Rusty Pelican restaurant. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTINO 48 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Name: Location: Slip Rates: Wet Slips - Transient - Boat Lifts - Occupancy: Average Boat Length: Maximum Boat Length: Maximum Boat Draft: Dock Style: Fuel: Repair Facilities: Amenities: Comments: The property is located in Miami Beach. Marina Comparable 5 Miami Beach Marina 300 Alton Road, Miami Beach, Florida $32.00/LF/Month - $70.00/LF/Month $6.00/LF/Day - $10.00/LF/Day $40/LF/Month - 40-foot min. 100% 42' 250' 12' Wood and Concrete Yes Gas and Diesel No Security, comfort stations with facilities, 24-hour dock attendants restaurant, marine store, dive charters, rentals and brokerage clearing, cable and internet access, in Miami Beach laundry and shower and pump -out services, shop, grocery store, services, US Customs swimming pool, located JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 49 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS SUMMARY The comparable marinas are summarized on the following chart. Annual Seasonal Monthly Transient Rate/LF/Mo. Rate/LF/Mo. Rate/LF/Mo. Rate/LF/Day Subject $30.00 - $40.00 $36.00 - $50.00 $46.00 - $54.00 $3.00 - $5.00 1 $35.00 $35.00 $35.00 $4.50 2 $19.00 $19.00 $19.00 $3.00 3 $19.00 $19.00 $19.00 $3.00 4 $35.00 - $40.00 $35.00 - $40.00 $35.00 - $40.00 $5.00 - $8.00 5 $32.00 $65.00 $70.00 $6.00 - $10.00 The comparables give a good estimate of the rates that are achievable in the market. All the comparables offer similar amenities, with variances from one development to the next. All of the comparables are located in Miami with some of the properties located adjacent to hotels, which adds to their appeal. Adjustments The comparable slips have a wide rental rate range. In order to better determine the rates at which the subject's slips would lease, we adjusted the comparables for the following factors: Location Quality and Condition Draft and Maximum Boat Length Amenities Location The adjustment for location realizes that areas of active growth and development, as well as those easily accessible and well protected from weather and tidal elements usually rent for more per LF than properties in areas that do not offer these attributes, with all other factors held constant. As stated, the subject is located on the south side of South Bayshore Drive, in the Coconut Grove area of Miami. The subject has unobstructed access to Biscayne Bay and the Atlantic Ocean and is in a tourist location with hotels, restaurants and night life. All of the comparables are located within Miami -Dade County and their locations are summarized in the following chart: Comparable Location Access Protection Development Overall Adjustment 1 Coconut Grove Similar Similar Similar Similar None 2 Coconut Grove Similar Similar Similar Similar None 3 Bayside Marketplace Similar Similar Similar Similar None 4 Virginia Key/Key Biscayne Similar Similar Inferior Inferior Upward 5 Miami Beach Similar Similar Similar Similar None In terms of location, Comparable 4 is adjusted upward as it is inferior to the subject in terms of surrounding development. No other adjustments are made to the comparables in terms of location. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 50 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Quality and Condition The subject's submerged improvements are of good quality construction and are in good condition. Each comparable's quality and condition is listed below. Comparable Quality Condition Overall Adjustment Subject Good Good Good None 1 Good Good Good None 2 Good Good Good None 3 Good Good Good None 4 Good Good Good None 5 Good Good Good None Draft and Maximum Boat Length The draft and maximum boat length of each of the comparables is listed below. Comparable Draft Max. Boat Length Overall Adjustment Subject 9' 88' 1 6' 150' Superior Downward 2 7' 175' Superior Downward 3 7' 150' Superior Downward 4 9' 100' Superior Downward 5 12' 250' Superior Downward Amenities The number and quality of available amenities at a marina tend to make it more or Tess desirable to slip patrons. In terms of an amenities adjustment, it is typically found that marinas with higher quality and a greater number of amenities typically rent for more per LF than those which do not offer these features, with all other factors held constant. The subject's amenities include fuel station, dock master's office, ship's store, restrooms/showers, laundry facilities, and on -site restaurant (Monty's Raw Bar) and retail/office building. The comparables' dock and upland amenities were listed in each marina write-up. The chart depicts how each comparable's amenities compare to the subject's. Comparable Dock Amenities Upland Amenities Adjustment 1 Similar Similar None 2 Similar Inferior Upward 3 Similar Superior Downward 4 Similar Similar None 5 Similar Similar None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 51 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS MARINA RENT COMPARABLE CONCLUSION The comparables are adjusted to reflect overall slip rental rates in comparison to the subject. Marina Rent Comparable Adjustment Grid 1 2 3 4 5 Location = = = + = Quality & Condition = = _ = = Draft/Max. Boat Length - Amenities = + = = Overall Adjustment The subject's slip rates are within the range of the comparables' rates. Based on the subject's history, and rates that fall in line with the comparables, we conclude the subject's current rates are reasonable for the current market. Based on the comparables, we conclude to the following average slip fees for the subject, which are the current asking rates: Rate/LF/Mo. Annual Rates Seasonal Rates Monthly Rates Daily Rates $30.00 - $40.00 $36.00 - $50.00 $46.00 - $54.00 $3.00 — $5.00 We only found one comparable, Miami Beach Marina, that offers boat lifts. This comparable is asking similar rates as the subject. Based on the subject's history, and rates that fall in line with the comparables, we conclude the subject's current rates are reasonable for the current market. Based on the comparables, we conclude to the following slip fees for the subject, which are the current asking rates: Rate/LF/Mo. 28K $1,600 32K $1,800 40K $2,200 Occupancy/Business Mix Conclusions The subject's slip occupancy has typically averaged 90% to 100%. The marina is currently 100% occupied, not including slips under renovation with boat lifts. We estimate that the subject's stabilized occupancy should be within the 90% to 100% percentile range based on the historical performance and the comparables in the market. The marina business is very sensitive to the national economy, and typically, when the economy is doing well, marinas also do very well. Currently, the national economy is considered to be stable. However, despite this factor occupancy level amongst marinas is strong. This is the result of the lack of new marina construction within the South Florida area. The permitting process associated with the construction of new marinas is virtually impossible as a result of environmental issues. As such, there is a limited supply of slips available within the area with a continued strong demand for slips as population within the area continues to increase. In consideration of the aforementioned, we have assumed an overall occupancy rate of 95.00% for the entire cash flow. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 52 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS In order to derive an appropriate business mix of annual, seasonal, monthly and daily fees, we analyzed the subject's performance. The subject's rent roll has 83 annual slips, 3 monthly and seasonal slips and no daily slips. Annual Seasonal/Monthly Daily Subject Current Rent Roll 96.55% 3.45% 0% The subject's business mix was relatively consistent over the last several years, especially in terms of annual mix, although some of the other categories showed more volatility. Therefore, in determining an appropriate business mix for the subject, we have placed most reliance on the subject's historical levels. We have concluded to 97% as the annual business mix, 3.00% as the combined seasonal and monthly mix, and 0% as the daily business mix. Annual $35.00 97.00% $33.95 Seasonal $43.00 1.50% $0.65 Monthly $50.00 1.50% $0.75 $35.35 Daily $4.00 0.00% $0.00 The average annual/seasonal/monthly rate is calculated to be $35.35/month. Daily dockage is assumed at $4.00/LF/day. A total of 100% of the slip rental revenue is generated from annual/seasonal and monthly dockage, and 0% from daily dockage. Slips are rented at a minimum of 90% of the length of the slip, or the vessel length, whichever is greater. Typically, the total charge is 90% to 100% of the maximum. Currently, the slips are rented at 97% of the length of the slip. We assume that 95% slip length is charged. As mentioned, occupancy of the marina is projected to be 95%. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 53 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Upon renovation, the subject's marina will contain 118 wet slips, including 32 boat lifts, consisting of 5,411± LF of dock space ranging in size from 22± LF to 88± LF. The slips and their projected revenue for 2017 are summarized below. The slip rental rates are assumed to grow at 3% per year. Max Lift Piers Slips Length Max Weight South Dock 104 58 105 60 109 50 110 97 117 85 118 78 123 70 124 62 125 72 126 80 127 88 128 78 129 63 130 74 131 61 132 64 133 72 134 69 135 60 136 53 137 66 138 63 139 66 200 40 28K 201 40 28K 202 40 28K 203 40 28K 204 40 28K 205 40 28K 206 40 28K 207 40 28K 208 40 28K 209 40 28K 210 40 28K 211 40 28K 212 40 28K T1-A 85 T1-B 70 T1-C 70 T1-D 85 Subtotal 2419 Annual/Seasonal/ Monthly Dockage Daily Dockage Rate: $36.48 $4.12 $25,392 $87,220 $26,267 $90,228 $21,890 $75,190 $42,466 $145,869 $37,212 $127,823 $34,148 $117,296 $30,645 $105,266 $27,143 $93,236 $31,521 $108,274 $35,023 $120,304 $38,526 $132,334 $34,148 $117,296 $27,581 $94,739 $32,397 $111,281 $26,705 $91,732 $28,019 $96,243 $31,521 $108,274 $30,208 $103,762 $26,267 $90,228 $23,203 $79,701 $28,894 $99,251 $27,581 $94,739 $28,894 $99,251 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $37,212 $127,823 $30,645 $105,266 $30,645 $105,266 $37,212 $127,823 Subtotal $1,088,453 $2,855,716 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 54 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Piers Max Slips Length New South Dock 1 50 2 50 3 50 4 50 5 50 6 50 7 50 8 50 9 50 10 50 11 50 12 50 13 50 14 50 15 50 16 50 17 50 18 50 19 50 20 50 21 50 22 50 Subtotal 1100 Piers Max Slips Length Middle Dock 301 45 302 40 303 35 304 35 305 31 306 32 307 43 308 45 309 43 310 40 311 60 Subtotal 449 Annual/Seasonal/ Monthly Dockage Daily Dockage Rate: $36.48 $4.12 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 $21,890 $75,190 Subtotal $481,570 $1,654,180 Annual/Seasonal/ Monthly Dockage Daily Dockage Rate: $36.48 $4.12 $19,701 $67,671 $17,512 $60,152 $15,323 $52,633 $15,323 $52,633 $13,572 $46,618 $14,009 $48,122 $18,825 $64,663 $19,701 $67,671 $18,825 $64,663 $17,512 $60,152 $26,267 $90,228 Subtotal $196,568 $675,206 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 55 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Piers Max Lift Slips Length Max Weight North Dock 401 40 402 50 403 53 404 58 405 50 406 54 407 Space Removed 408 40 28K 409 40 28K 410 40 28K 411 40 28K 412 40 28K 413 70 500 40 501 45 40K 502 45 40K 503 45 40K 504 45 40K 505 45 32K 506 45 32K 507 45 32K 508 45 32K 509 40 28K 510 40 28K 511 40 28K 512 40 28K 513 40 28K 514 40 28K 601 Dead Space 602 26 603 25 604 22 605 30 606 30 607 38 608 40 609 40 610 34 611 33 612 41 613 40 T2-A 70 T2-B 58 T2-C 70 T2-D 80 Subtotal 1892 Annual/SeasonE Monthly Docka Daily Dockage Rate: $36.48 $4.12 $17,512 $60,152 $21,890 $75,190 $23,203 $79,701 $25,392 $87,220 $21,890 $75,190 $23,641 $81,205 $19,776 $19,776 $19,776 $19,776 $19,776 $30,645 $105,266 $17,512 $60,152 $27,192 $27,192 $27,192 $27,192 $22,248 $22,248 $22,248 $22,248 $19,776 $19,776 $19,776 $19,776 $19,776 $19,776 $11,383 $39,099 $10,945 $37,595 $9,631 $33,084 $13,134 $45,114 $13,134 $45,114 $16,636 $57,144 $17,512 $60,152 $17,512 $60,152 $14,885 $51,129 $14,447 $49,625 $17,949 $61,656 $17,512 $60,152 $30,645 $105,266 $25,392 $87,220 $30,645 $105,266 $35,023 $120,304 Subtotal $893,364 $1,642,150 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 56 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Upon completion of the renovations, the subject will have 22 additional docks of 50' each located on the south dock. With the addition of these docks, the subject is projected to generate $2,274,262 in revenue from the marina operation in the second year of the income projection. The slip rental rates are assumed to grow at 3% per year. As Complete Annual/Seasonal/ Daily Monthly Dockage Dockage Potential Revenue $2,659,956 $6,827,252 Percentage Boat Length 95.00% 95.00% Occupancy 95.00% 95.00% $2,400,610 $6,161,595 Business Mix 100% 0% $2,400,610 $0 Dockage Revenue $ 2,400,610 Marina Landing/Miscellaneous Fees Revenue The subject contains some docks for persons to visit the marina, the stores and the restaurant. A landing fee is charged to boaters for use of the docks. Marina landing/miscellaneous fees at the subject were $63,033.54 in 2014/2015, $51,140.69 in 2015/2016 and $65,748.51 annualized based on the eight months from 10/16 to 5/17. Based on the historical revenue, we conclude to $60,000 in annual revenue from Marina Landing/Miscellaneous Fees for the subject. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 57 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS NATIONAL STRIP SHOPPING CENTER MARKET - PWC According to the PwC Real Estate Investor Survey, 2nd Quarter 2017: For the second half of 2017, the primary investment goals of our Survey participants vary greatly in the national strip shopping center market. "We are looking to sell weaker assets and hold our best assets," shares an investor. "We continue to seek off -market opportunities in more urban settings," says another. Clearly, the desire to own strip shopping centers remains strong, which should keep the best assets aggressively priced. In a recent grocery -anchored sale, New Market Properties acquired Castleberry -Southard, an 80,018-squarefoot shopping center anchored by a 45,600-square-foot Publix. Another recent trade included the Promenade Shopping Plaza, a 202,696-squarefoot center anchored by Publix. Investors are also developing new grocery -anchored centers, such as Landstar Marketplace, a 62,222-square-foot shopping center planned in Orlando. This property will be anchored by a 43,865-square-foot Walmart Neighborhood Market. While strip shopping centers without grocery store anchors are also being looked at by investors, many are concerned about the "risk associated with too much in -line space." In such centers, investors are looking for established service -oriented tenants, like dry cleaners and barbers, as well as dining establishments. (pg. 24) Key Survey Stats National Strip Shopping Center Market Second Quarter 2017 Current Quarter Last Quarter Tenant Retention Rate Average 50.0%-100.0% 72.00% 50.0%-100.0% 72.00% Months of Free Rent (10-yr lease) 0-6 0-6 Average 2.00 2.00 % of participants using 44.00% 55.00% Market Conditions Favor Buyers 11.00% 11.00% Sellers 44.00% 44.00% Neither 45.00% 45.00% Source: PwC Real Estate Investor Survey, 2nd Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 58 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS National Market Yield Rates for Real Estate Investments National Strip Shopping Center Market Second Quarter 2017 Current Quarter Last Quarter Year Ago Discount Rate (IRR) Average 5.00%-10.50% 5.00%-10.50% 6.00%-10.75% 7.32% 7.39% 7.54% Overall Cap Rate (OAR) 4.00%-9.50% Average 6.26% 4.00%-9.50% 6.32% 4.50%-9.50% 6.26% Residual Cap Rate 4.75%-9.75% 4.75%-9.75% 4.75%-9.75% Average 6.50% 6.56% 6.50% Market Rent Change Rate 0.00%-3.00% 0.00%-3.00% 0.00%-3.00% Average 1.72% 1.83% 1.89% Expense Change Rate Average 0.00%-3.00% 2.69% 0.00%-3.00% 2.69% 0.00%-3.00% 2.69% Ma rketi ng Time Range 2-18 months 2-12 months 2-12 months Average 6.2 6.3 5.8 Source: PwC Real Estate Investor Survey, 2nd Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 59 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS NATIONAL STRIP SHOPPING CENTER MARKET - REALTYRATES.COM According to the RealtyRates.com Investor Survey, 1st Quarter 2017, the following tables summarize prevailing mortgage terms and resulting built-up overall capitalization rates (OAR's) via debt coverage ratio and band of investment techniques, together with OAR's from consummated transactions as reported by survey respondents based on actual net operating income (NOI) exclusive of reserves and actual sales price exclusive of deferred maintenance. These data are for Class A and B properties nationwide. Mortgage terms and equity dividend rates are likewise national rates as reported by survey respondents. RealtyRates.com Investor Survey Retail - All Types First Quarter 2017 Item Input Minimum Spread Over 10-Year Treasury 0.75% Debt Coverage Ratio 1.05 Interest Rate 3.09% Amortization 40 Mortgage Constant 0.043583 Loan -to -Value Ratio 90% Equity Dividend Rate 7.98% Maximum Spread Over 10-Year Treasury 8.30% Debt Coverage Ratio 2.15 Interest Rate 10.64% Amortization 15 Mortgage Constant 0.133691 Loa n-to-Value Ratio 50% Equity Dividend Rate 18.05% Average Spread Over 10-Year Treasury 3.29% Debt Coverage Ratio 1.40 Interest Rate 5.63% Amortization 25 Mortgage Constant 0.075028 Loan -to -Value Ratio 70.50% Equity Dividend Rate 13.50% OAR DCR Technique 1.05 x 0.043583 x 0.90 = 4.12% Band of Investment Technique Mortgage 90% x 0.043583 = 0.039225 Equity 10% x 0.079841 = 0.007984 OAR 0.039225 + 0.007984 = 4.72% Surveyed Rates 4.48% DCR Technique 2.15 x 0.133691 x 0.50 = 14.37% Band of Investment Technique Mortgage 50% x 0.133691 = 0.066846 Equity 50% x 0.180497 = 0.090249 OAR 0.066846 + 0.090249 = 15.71% Surveyed Rates 14.92% DCR Technique 1.40 x 0.075028 x 71% = 7.41% Band of Investment Technique Mortgage 71% x 0.075028 = 0.052904 Equity 29% x 0.135202 = 0.039867 OAR 0.052904 + 0.039867 = 9.28% Surveyed Rates 10.22% Source: Rea ItyRates.com Investor Survey, 1st Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 60 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS RealtyRates.com Investor Survey Retail - Anchored Centers First Quarter 2017 Item Input Minimum Spread Over 10-Year Treasury 0.75% Debt Coverage Ratio 1.05 Interest Rate 3.09% Amortization 40 Mortgage Constant 0.043583 Loan -to -Value Ratio 90% Equity Dividend Rate 7.98% Maximum Spread Over 10-Year Treasury 7.15% Debt Coverage Ratio 1.90 Interest Rate 9.49% Amortization 15 Mortgage Constant 0.125235 Loan -to -Val ue Ratio 60% Equity Dividend Rate 16.85% Average Spread Over 10-Year Treasury 3.95% Debt Coverage Ratio 1.48 Interest Rate 6.29% Amortization 28 Mortgage Constant 0.076533 Loan -to -Val ue Ratio 75.00% Equity Dividend Rate 11.97% OAR DCR Technique 1.05 x 0.043583 x 0.90 = 4.12% Band of Investment Technique Mortgage 90% x 0.043583 = 0.039225 Equity 10% x 0.079841 = 0.007984 OAR 0.039225 + 0.007984 = 4.72% Surveyed Rates 4.48% DCR Technique 1.90 x 0.125235 x 0.60 = 14.28% Band of Investment Technique Mortgage 60% x 0.125235 = 0.075141 Equity 40% x 0.1685 = 0.067399 OAR 0.075141 + 0.067399 = 14.25% Surveyed Rates 13.54% DCR Technique 1.48 x 0.076533 x 75% = 8.47% Band of Investment Technique Mortgage 75% x 0.076533 = 0.057400 Equity 25% x 0.119736 = 0.029934 OAR 0.057400 + 0.029934 = 8.73% Surveyed Rates 10.39% Source: RealtyRates.com Investor Survey, 1st Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 61 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS RealtyRates.com Investor Survey Retail - Un-Anchored Centers First Quarter 2017 Item Minimum Spread Over 10-Year Treasury Debt Coverage Ratio Interest Rate Amortization Mortgage Constant Loan -to -Value Ratio Equity Dividend Rate Maximum Spread Over 10-Year Treasury Debt Coverage Ratio Interest Rate Amortization Mortgage Constant Loan -to -Value Ratio Equity Dividend Rate Average Spread Over 10-Year Treasury Debt Coverage Ratio Interest Rate Amortization Mortgage Constant Loan -to -Val ue Ratio Equity Dividend Rate Input 95.00% 1.30 3.29% 35 0.048146 75% 8.18% 8.30% 2.15 10.64% 15 0.133691 50% 18.05% 4.63% 1.73 6.97% 25 0.084546 62.50% 12.62% OAR DCR Technique 1.30 x 0.048146 x 0.75 = 4.69% Band of Investment Technique Mortgage Equity OAR Surveyed Rates 75% x 0.048146 = 0.036109 25% x 0.081841 = 0.020460 0.036109 + 0.020460 = 5.66% 5.37% DCR Technique 2.15 x 0.133691 x 0.50 = 14.37% Band of Investment Technique Mortgage Equity OAR Surveyed Rates 50% x 0.133691 = 0.066846 50% x 0.180497 = 0.090249 0.066846 + 0.090249 = 15.71% 14.92% DCR Technique Band of Investment Technique Mortgage Equity OAR Surveyed Rates 1.73 x 0.084546 x 63% = 9.12% 63% x 0.084546 = 0.052841 38% x 0.126236 = 0.047339 0.052841 + 0.047339 = 10.02% 11.19% Source: Rea ItyRates.com Investor Survey, 1st Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 62 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS RealtyRates.com Investor Survey Retail - Free -Standing First Quarter 2017 Item Minimum Spread Over 10-Year Treasury Debt Coverage Ratio Interest Rate Amortization Mortgage Constant Loan -to -Value Ratio Equity Dividend Rate Maximum Spread Over 10-Year Treasury Debt Coverage Ratio Interest Rate Amortization Mortgage Constant Loan -to -Value Ratio Equity Dividend Rate Average Spread Over 10-Year Treasury Debt Coverage Ratio Interest Rate Amortization Mortgage Constant Loan -to -Value Ratio Equity Dividend Rate Input 0.75% 1.18 3.12% 40 0.043792 90% 7.93% 6.38% 1.73 10.70% 15 0.134129 60% 17.30% 3.58% 1.45 5.92% 28 0.073715 75.00% 12.15% OAR DCR Technique 1.18 x 0.043792 x 0.90 Band of Investment Technique Mortgage Equity OAR Surveyed Rates = 4.63% 90% x 0.043792 = 0.039413 10% x 0.079341 = 0.007934 0.039413 + 0.007934 = 4.73% 4.93% DCR Technique 1.73 x 0.134129 x 0.60 Band of Investment Technique Mortgage Equity OAR Surveyed Rates = 13.88% 60% x 0.134129 = 0.080477 40% x 0.172997 = 0.069199 0.080477 + 0.069199 = 14.97% 14.23% DCR Technique 1.45 x 0.073715 x 75% = 7.99% Band of Investment Technique Mortgage Equity OAR Surveyed Rates 75% x 0.073715 = 0.055286 25% x 0.121486 = 0.030372 0.055286 + 0.030372 = 8.57% 10.79% Source: Rea ItyRates.com Investor Survey, 1st Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 63 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS RealtyRates.com Investor Survey Retail - Convenience Stores/Gas Stations First Quarter 2017 Item Input Minimum Spread Over 10-Year Treasury 0.85% Debt Coverage Ratio 1.25 Interest Rate 3.19% Amortization 30 Mortgage Constant 0.051830 Loan -to -Value Ratio 75% Equity Dividend Rate 8.08% Maximum Spread Over 10-Year Treasury 7.73% Debt Coverage Ratio 1.50 Interest Rate 10.07% Amortization 15 Mortgage Constant 0.129430 Loan -to -Value Ratio 50% Equity Dividend Rate 17.45% Average Spread Over 10-Year Treasury 4.29% Debt Coverage Ratio 1.32 Interest Rate 6.63% Amortization 23 Mortgage Constant 0.085630 Loan -to -Value Ratio 62.50% Equity Dividend Rate 12.30% OAR DCR Technique 1.25 x 0.051830 x 0.75 = 4.86% Band of Investment Technique Mortgage 75% x 0.051830 = 0.038873 Equity 25% x 0.080841 = 0.020210 OAR 0.038873 + 0.020210 = 5.91% Surveyed Rates 5.61% DCR Technique 1.50 x 0.129430 x 0.50 = 9.67% Band of Investment Technique Mortgage 50% x 0.129430 = 0.064715 Equity 50% x 0.174497 = 0.087249 OAR 0.064715 + 0.087249 = 15.20% Surveyed Rates 14.44% DCR Technique 1.32 x 0.085630 x 63% = 7.08% Band of Investment Technique Mortgage 63% x 0.085630 = 0.053519 Equity 38% x 0.122986 = 0.046120 OAR 0.053519 + 0.046120 = 9.96% Surveyed Rates 8.83% Source: RealtyRates.com Investor Survey, 1st Quarter 2017 The following tables summarize discount and equity dividend rates reported by survey respondents. In all cases, rates were derived from Class A and B properties nationwide and are exclusive of reserves. Note that "Recapitalizations" refers to re -financing under current use. RealtyRates.com Investor Survey Retail - Discount Rates First Quarter 2017 New Development Acquisitions Recapitalizations Property Type Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Retail 6.45% 17.35% 12.69% 5.54% 14.92% 10.92% 6.32% 17.01% 12.44% Anchored 6.45% 16.01% 12.81% 5.54% 13.77% 11.02% 6.32% 15.69% 12.56% Un-Anchored 7.22% 17.35% 13.49% 6.21% 14.92% 11.60% 7.08% 17.01% 13.22% Convenience/Gas 7.54% 17.45% 11.17% 6.49% 15.00% 9.61% 7.39% 17.10% 10.95% Free Standing 6.83% 16.98% 13.30% 5.88% 14.60% 11.44% 6.70% 16.64% 13.04% Source: RealtyRates.com Investor Survey, 1st Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 64 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS RealtyRates.com Investor Survey Retail - Equity Dividend Rates First Quarter 2017 Property Type Min. Max. Avg. Reta i I 7.98% 18.05% 13.52% Anchored 7.98% 16.85% 11.97% Un-Anchored 8.18% 18.05% 12.62% Convenience/Gas 8.08% 17.45% 12.30% Free Standing 7.93% 17.30% 12.15% Source: RealtyRates.com Investor Survey, 1st Quarter 2017 The following table summarizes sales, income, occupancy, and operating expense data, as well as relevant rates and ratios, for class A and B retail properties in the continental U.S. Retail properties are multi -tenant only. Operating expenses do not include reserves for repairs and replacement. Note that the cap rates provided are based solely on average market -wide operating fundamentals and sales prices. As such, while they are analogous to "as is" rates, they should be used with caution. In addition, due to rounding, "% Change" may be slightly positive or negative although no change is indicated. RealtyRates.com Market Survey Nationwide - Class A & B Neighborhood, Community & Strip Retail Centers First Quarter 2017 4Q2016 3Q2016 %Change Anch Un-Anch Anch Un-Anch Anch Un-Anch Operating Data Income Asking Rent Effective Rent Other Income Tota I Income Vacancy Rate Effective Gross Income (EGI) Expenses Total Expenses Expense Ratio Net Operating Income (NO1) Investment Data $18.83 $18.31 $18.75 $18.23 0.4% 0.4% $16.88 $16.48 $16.81 $16.41 0.4% 0.4% $0.84 $0.82 $0.84 $0.82 0.4% 0.4% $17.73 $17.31 $17.65 $17.23 0.4% 0.4% 6.9% 6.6% 7.0% 6.7% -1.3% -1.4% $16.50 $16.16 $16.42 $16.08 0.5% 0.5% $9.03 $8.51 $8.98 $8.47 0.5% 0.5% 54.70% 52.67% 54.69% 52.66% 0.0% 0.0% $7.48 $7.65 $7.44 $7.61 0.5% 0.5% Average Sa le Price $93 $95 $94 $95 -0.7% -0.5% Overall Cap Rate (OAR) 8.0% 8.1% 7.9% 8.0% 1.2% 1.1% Gross Rent Multi plier(GRM) 5.52 5.74 5.58 5.8 -1.1% -1.0% Effective Gross Income Multiplier (EGIM) 5.65 5.86 5.72 5.92 -1.2% -1.1% Source: RealtyRates.com Investor Survey, 1st Quarter 2017 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 65 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS MIAMI RETAIL MARKET ANALYSIS According to the CoStar Retail Market Analysis and Forecast, 2nd quarter 2017, while the Miami retail market is close to its recovery peak, strong demand should help the market weather a wave of supply incoming in early 2017. In a market with low vacancies well below the national average, developers are busy bringing new product to key locations within the metro, focusing principally on downtown submarkets as well as high -income northern and southernmost suburban submarkets. The highest -end luxury retail receives a lot of investor attention, particularly in Miami Beach and the new Design District, but assets here are pricey and may carry risk due to competition for a small share of retail tenants and an outsized portion of demand stemming from foreign countries experiencing economic volatility. Overall, demographic trends are solid, particularly in high -income urban and suburban areas, and returns should outpace the national average. KEY INDICATORS O) Current Quieter RBA (000) Vacancy Rate Asking Rent AvailabiMRaft y RaNet AbanNet Deliveries Under C anaL MO) (000) boot Mal 17,124 5.7% 551.42 102% (20) 0 510 Power Center 3,364 1.7% $34.38 2.7% tl 0 (]_ Nexthborhoad Center 19.447 3.5% 531.48 4.4% 4 12 70 Market 118,164 3.E% S35.29 6.1% 15 39 1286 In Annual Trends Vacancy Net Absorption (000) Nat Deivarias (000) Rent Growth 12 Muth Change Hi . Avg. 0.7% 4.3% 1,014 1,544 1,510 I 1,519 3.9% 2.8% Sales (5 mikes) 5753 Fc,L Avg. 3.5% 1,431 1.418 ( Pea 1Mmi 2006 0.3 200703 Trough 28% (199) 200101 412 2006 44 j -5.3% 5723 I WA 52,029 2015 04 5170 2009 Q4 Mien 2007 04 2009 Q3 201103 1.1% Source: CoStar 52% 3,969 3,518 7.9% 2009 04 Fundamentals The influence of wealthy foreign shoppers has helped to fuel retail spending and employment growth, underpinning the uptick in demand seen since 2014. Employment growth in the leisure and hospitality sector has resulted from the increase in tourists and shoppers, but more recent growth in higher -income sectors such as professional and business services should improve the outlook in demand from local residents as well. Increasing deliveries over the next few years, particularly those in the new Design District, Brickell, and Downtown Miami, may cause fundamentals to soften a bit, but longer -term demographic trends should keep this market healthy. In fact, Miami boasts some of the lowest historical vacancies in the country. So, even with an uptick due to large-scale speculative deliveries, the terminal rate here is still well under both market and national historical averages. Retail space in Miami tends to be productive and high end. In fact, the Shops at Bal Harbour are consistently among the most productive luxury retail spaces in the country. In an effort to capitalize on strong fundamentals and to compete with the developing luxury shops at the Design District, Whitman Family Development (the Bal Harbour owner group) is submitting $400 million expansion plans, although these have yet to be approved by the Bal Harbour Village Council. And as the economic recovery becomes broader based (growth in white-collar industries has just recently picked up), consumption and retail employment are expected to continue to expand, underpinning an improving demand outlook that should drive retail sales in the near term. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 66 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Brickell and Downtown Miami are the primary urban shopping districts that will capture increased demand from white-collar employment growth and high -income tourist spending. Brickell, the epicenter of an emerging live/work/play environment, is brimming with construction of luxury condo and apartment towers. In both Brickell and Downtown Miami, new mixed -use developments are incorporating large quantities of high -end retail space into their plans, including Brickell City Centre, with over 500,000 SF of retail space which delivered in late 2016, and Miami WorldCenter, set to bring 450,000 SF of retail space to the area by the end of 2017. By constructing mixed -use projects in primary business districts, developers seek to target a share of the dense population of high -income spenders while also providing residential opportunities that can create demand within their own space. Retailers have noticed this trend and are moving to be part of the fastest -growing urban neighborhoods in the metro, highlighted by the recent leases of more than 80 retailers and eateries set to open in the new Brickell City Centre. On the other end of the spectrum, the Miami, Miami Lakes, and South Dade submarkets are paving new paths of growth. The Miami Submarket is home to the Design District, where tenants are willing to sign leases for more than four times the metro average rents. Newly developing suburban districts are attracting high -income residents to larger malls and outlet centers. And tenants have noticed, because vacant space in these assets is almost nonexistent in South Dade. NET ABSORPTION, NET DELIVERIES AND VACANCY RATE 2,269 1,816 1,364 912 460 4 Forecast 2011 2012 2013 70 Debrvenea IN Net Abeoipiton -- Vacancy — National vauincy Source: CoStar 6.0°, JOSEPH J. BIAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTINO 67 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Supply Developers are targeting primary submarkets for major mixed -use deliveries. Annual deliveries have been below the metro average since 2008, and while that is expected to continue deliveries are on the rise thanks to the growing focus on creating live/work/play environments in primary submarkets. The Brickell, Miami Airport, and Downtown Miami areas will see the horns share of this growth, including the large- scale, mixed -use project Miami WorldCenter is a mixed -use development with 450,000 SF of retail space as well as office space, convention space, and an 1,800-room hotel. CityPlace Doral is an example of the mixed -use developments becoming more prevalent in the Miami Airport Submarket. By the end of 2017, CityPlace Doral will comprise 250,000 SF of retail space as well as over 300 residential units. Mixed -use projects continue to be a major driver of construction in this cycle, as developers seek to capitalize on strong demographic trends in high -income, primary submarkets and are helping their own cause of attracting retail demand by combining shopping with residential development. Construction will also bring space to developing submarkets. Drawing interest from national tenants and investors alike is the $312 million redevelopment of the Design District in the Miami Submarket, scheduled to finalize the 1.1 million SF of retail space across 51 parcels and about 20 acres over the next few years with phase III. This shopping district will bring a second luxury shopping destination to the metro (after the Shops at Bal Harbour). Looming in the outer years, American Dream Miami, a 200-acre $4 billion shopping mall, has been called one of the most ambitious projects in the world. Now that developer Triple Five has closed on the land, construction may soon begin in the Northeast Dade Submarket. The Miami Lakes and South Dade submarkets are also well positioned to host a large share of new construction, because they are expected to experience outsized median household income growth over the next five years. NET DELIVERIES 2,500 2,000 1,500 1,000 500 e=a 5: 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: CoStar 2021 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 68 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS UNDER CONSTRUCTION PROJECTS Property Name suet % Leased GLA 4rrt Yr. Tuttle Street Biscayne Corridor 0% 1800 Alton Rd 14501 W Dixie Hwy 66 NE 39th St Panorama Tower Retail Miami Worldcenter Siverspot Cinema 17650 NW 2nd Ave 230 Lincoln Rd Publix Bolding 1 SW 147th Ave Shoppes at Hidden Lake Miami Beath 72% Northeast Dade ' 0% Miami (Sttmarket) Brickell Downown Miami Downtown Miami Northeast Dade Miarrr Beach Northeast Dade Mani Airport South Dade Kendal UNDER RENOVATION PROJECTS Property Nene Art Center Of South Flo... PROPOSED PROJECTS Submarket Miami Beach Property Name 1420 S Miami Ave American Dream Miami Edge at Dora! Shoppes of Homestead Plaza Coral Gables SW 3rd Ave Brickell Miami Lakes Miami Airport South Dade Coral Gables Brickell 4041 Ponce De Leon Blv. Coral Gables 1641 NW 13th Court, Mia_. River Landing Shops 3050 Biscayne Blvd Gardens Promenade Brickell World Plaza Ph... Miami (Submarket) Miami (Submarket) l Biscayne Corridor Hialeah Gardens Brickell Waimart Miami (Submarket) Uptown 163 Aventura Downtown Dadeland Proje... Kendal West Dade Marketplace Outlying Miami -Dade City Tstget ,Outlying Name -Dade Cnty NEC Kendall Dr & SW 167... Kendal The Place At HialeahMiami Lakes SoLe Mia Mainstreet Northeast Dade 14401 7th St Pasco County 5611 Skytop Dr Eastern Outlying 34% 8% 3% 0% 0% 64% 0% 88% 98% 38% i 30,000-1 2016 32,491 f 2017 26,000 2017 1 65,000 1 2016 25.000 1 2015 Deer. Yr Center Type 2018 General Retail 2018 General Retail 2018 'General Retail 2018 General Retail 2018 'General Retail 450,000 2016 2017 Mall 113,508 65,000 59.990 Source: CoStar 41,740 32,500 70,020 25200 2015 2017 General Retail 2017 2017 General Retail 2015 2017 2016 2017 2016 2017 2016 2017 2016 2017 Mall Community Center General Retail Neighborhood Center General Retail % Leased GLA Start Yr. 20% 42,044 2017 Source: CoStar Delir. Yr Mall Center Type % Leased GLA 0% 600,000 0% 3,500,000 0% 253,887 0% 157,500 Start Yr. Deka. Yr Center Type WA General Retail WA Mall WA General Retail WA Conenwily Center 0% 137,000 0% 133,000 0% 90,000 0% 80.000 0% 426,000 0% 343,000 0% 300,000 0% 283,868 0% 203,000 0% 200,000 0% 186,925 0% 107,703 0% 100,000 0% 90,000 0% 575,000 I 0% 500,000 3 36,000 1 36,000 Source: CoStar N/A Skip Center N/A General Retail WA General Retail N/A General Retail WA General Retail WA General Retail N/A General Retail N/A General Retail WA General Retail WA General Retail N/A General Retail N/A General Retail WA General Retail WA General Retail N/A 1PowerCenter WA General Retail WA WA JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 69 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Rents Rent growth slowed significantly in 2016, with growth of about 3% over the course of the year. This figure marks the slowest rent growth since 2010, when rents in Miami declined significantly. The Brickell and Miami Beach Submarkets maintained the highest asking rents in the metro over the course of 2016, but several secondary submarkets carried the bulk of the rents growth. Top submarkets for rent growth over the past year included Biscayne Corridor, Downtown Miami, and Northeast Dade. ASKING RENT LEVELS AND ANNUAL GROWTH IForecast $36.25 $31.60 4.0% 2.0% $26.94 $17,62 I�� 11 I nil I 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Rent Growth Y/Y — Asking Rent — National Asking Rent Source: CoStar Sales Sales volume in Miami was lower in 2016 compared to the previous year. Total volume was around $1 billion, compared to about double that number in 2015. Average pricing, however, continued to climb, reaching the highest levels of the cycle. One of the largest transactions of the past year was sale of a TIAA portfolio of retail properties to Weingarten Realty advisors. The transaction, which closed in July 2016, included 13 properties across Miami and Kendall which totaled $133 million. The largest individual transaction of the year was the sale of the Suniland Shopping Center in May. The 4 Star, 82,000 SF shopping center was purchased by Dividend Capital Diversified Property Fund for $66.5 million. The property was 96% leased at the time of sale and generated a 5.2% cap rate. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 70 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS SALES VOLUME AND MEDIAN PRICE $350 $300 $250 $200 $150 $100 $50 $2,500 $2,000 $1,500 $1,000 $500 50 2007 2008 2009 2010 2011 2012 e72013ea20142015 2 2017 MI Volume - Pnce Per SF - National Price Per SF Source: CoStar SUBMARKET INVENTORIES MARKET STATISTICS kwentory No. MOM Bldg* SF (000) 1 Aventtrra I 118 6,388 5.4% 2 Biscayne Corridor - 211 2,177 1.8% 3 Bridtel 72 1,466 12% 4 Coconut Grove 147 1,620 1.4% 5 Coral Gables 355 3,296 2.8% 6 Coral tiA^a, 287 2243 1 1.9% 7 Downtown Miami 149 2,796 2.5% 8 Hialeah Gardens 341 2,744 2.3% 9 Kendal 703 17,019 14.3% 10 Medley/Hialeah 791 12,214 10.5% 11 Miami (Submarket) 2,034 12,956 10.9% 12 kiwi Aiport 548 14,587 124% 13 Miami Beach 609 7,315 62% 14 r Miami Lakes 153 4,173 3.5% 15 Northeast Dade 950 10,005 8.4% 16 Outlying Miami -Dade C... 21 240 02% 17 South Dade 656 10,145 8.5% 18 West Mani 566 6,777 5.7% % Metro Rank 12 Month Deliveries BMus SF (000) 9 2 0 15 0 0 17 i 1 505 16 2 23 11 0 0 14 3 24 12 1 u 13 3 16 1 4 61 4 10 35 3 11 220 2 13 364 7 5 83 10 4 36 6 4 43 18 0 0 5 5 26 8 5 75 Source: CoStar Percent 0.0% 0.0% 34.4% 1.4% 0.0% 1.1% 0.0% 0.6% 0.4% 0.3% 1.7% 25% 1.1% 0.9% 0.4% 0.0% 0.3% 1.1% 1 Under Construction ank Bldus SF (000) Percent Rack 0 2 1 3 4 1 2 34 1.0% 6 7 1 19 0.8% 8 3 573 % 9 2 19 0.7% 10 11 2 34 0.2% 13 12 1 20 02% 14 3 4 120 0.9% 7 2 4 50 0.3% 12 5 3 108 1.5% 4 8 0 0 1 0.0% 0 42 50 7 0.0% 1.9% 3 3.4% 2 0.4% 11 10 5 137 1.4% 5 0 0 0.0% 13 3 74 0.7% 9 6 S 0 0 0.0% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 71 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS SUBMARKET RENTS Gross Asking Rats No. Market Per SF Ra/r turd Index Yr Growth 1 Aventura 563.67 2 642 4.0% 2 Biscayne Corridor 533.06 8 332 2.7% 3 Bridal 541.73 5 41.7 2.6% 4 Coconut Grove 546.83 3 47.0 4.3% 5 Coral Gables 542.09 4 42.3 3.4% 6 Coral W'av 533.92 7 34.0 3.1% 7 Downtown Miami $30.53 12 30.7 4.5% 8 Hialeah Gardens 521.07 18 21.0 3.6% ! 9 Kendal 541.41 6 41.64.2% 10 Medley/Hialeah 527.68 14 27.8 4.0% 11 Miami (Subtnarke $31.76 10 31.9 4.0% 12 Miami Airport $30.82 11 30.9 4.0% 13 Miami Beach 571.31 1 71.6 3.7% 14 Miami Lakes 526.17 15 26.1 3.1% 15 Northeast Dade 525.00 16 25.0 4.7% 16 Outh ni Miami -Dade C... $32.15 9 322 2.9% 17 South Dade 523.58 17 23.5 3.4% 18 West Miami $29.20 13 292 5.2% Source: CoStar SUBMARKET VACANCY AND NET ABSORPTION Rank 8 17 18 4 13 15 3 11 Vacancy No. Market SF (000) Percent Rank SF (000) 1 Aventura 70 1.1% 1 8 2 Biscayne Corridor 109 5.0% 14 33 3 Bridal 317 21.6% 18 199 4 Coconut Grove l 75 4.6% 13 17 5 Coral Gables 53 1.6% 2 24 6 Coral Way 61 2.7% 6 12 7 Downtown Miami 277 9.9% 17 -127 8 Hialeah Gardens 74 2.7% 7 66 9 Kendall 511 3.0% 9 64 10 Medley/Hialeah 257 2.1% 4 27 11 Miami (Submarket) 868 ( 6.7% 16 23 12 MiamiAirport 598 4.1% 11 93 13 Miarm Beach 380 52% 15 106 14 Miami lakes 88 2.1% 5 108 15 Nortlieast Dade 280 2.8% 8 187 16 Outlying Miami -Dade C.. 11 4.5% 12 5 17 South Dade 335 3.3% 10 99 18 West Miami 142 2.1% 3 69 ! 1.0% 12 Month Absorption Percent Share or bistro Rack Cornstret. Rate 0.1% -0.9% 16 0.0 1.5% 0.4% 10 0.0 13.6% 19.6% 1 2.5 1.1% 0.8% 14 1.3 0.7% -1.1% 12 0.0 0.5% -0.7% 15 2.1 -4.5% -1.8% 18 0.0 2A% 1.1% 8 02 0.4% -0.9% 9 0.9 02% 1.0% 11 1.3 02% -0.8% 13 9.4 0.6% 02% 6 3.9 1.5% 0.7% 4 0.8 2.6% 1.0% 3 0.3 1.9% 0.1% 2 02 2.2% 8.3% 17 0.0 1.0% -0.8% 5 Source: CoStar -0.3% 7 0.3 1.1 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 72 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS MARKET FUNDAMENTALS HISTORY AND FORECAST Year Net Absorption Ywentary SF (000) Groh % Growth SF (000) % Growth Conetrct. Ratio 2021 124,766 1,415 . 1.1% 1,237 1.0% 2020 123,351 f 1 1.1% 1,292 1.1% 2019 122,016 1,207 1.0% 1.375 12% 2018 120,809 I 837 i 0.7% 1,466 1.3% 2017 119.972 2 21% 1.789 1.6% 2016 117,498 987 0.8% 899 0.8% 2015 116,511 1.113 1.0% 1,339 12% 2014 115,399 1,282 1.1% 1,632 1.5% 2013 114,116 526 0.5% 511 0.5% 2012 113,590 617 0.5% 668 0.6% 2011 112,972 626 0.6% 1,240 12% 2010 112,347 1,480 1.3% 1,689 1.6% 2009 110,867 1,005 0.9% (52) 0.0% 2008 109,862 2,819 2.6% 1,425 1.4% 20 2007 107,043 2,089 ` 2.0% 3,714 3.7% ' 0.6 2006 I 104,955 1,640 1.6% 1,467 1.5% 1.1 1.1 1.0 0.9 0.6 1.4 1.1 0.8 0.8 10 0.9 0.5 0.9 (000) Vacancy Percent Ppbs ChY 4,258 3.4% 0.1 4,080 3.3% 0.0 4,036 3.3% (0.2} 4,205 3.5% (0.5) 4,833 4.0% 0.5 4,149 3.5% 0.0 4,060 3.5% (0.2) 4,287 3.7% (0.3) 4,636 4.1% 0.0 4,621 4.1% (0.1) 4,671 4.1% (0.6) 5285 4.7% (0.3) 5,494 5.0% 0.9 4,436 4.0% 12 3,043 2.8% (1.6) 4,668 4.4% 0.1 2005 103,315 1,679 1.7%1,908 2.0% _} 0.9 Source: CoStar MARKET RENT HISTORY AND FORECAST 4,496 4.4% Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Per SF Gross Asking Rent Index % Growth Vs ttist Peak S37.19 127 1.8% S36.55 125 1.8%-I 535.91 122 1.5% 535.39 121 0.1% S35.36 121 0.7% 535.12 120 52% 533.39 114 5.5% S31.66 108 5.3% S30.08 103 4.3% S28.84 98 4.1% S27.72 94 1.4% I -21.7% S27.34 93 -1.6% -22.8% S27.78 95 -5.3% -21.5% $29.34 100 -2.0% -17.1% $29.92 102 5.0% -15.5% S28.50 97 7.9% -19.5% S26.43 90 4.5% ( -25.3% 5.0% 32% 1.4% 0.0% -0.1% -0.8% -5.7% -10.6% -15.0% -18.5% Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 73 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS MARKET SALES HISTORY Volume Year Sales SF Volume Tunover Median Per SF 2017 99 2,842,338 $185,911 2.4% $308.69 2016 2400 3,165,432 $1,143,451 2.7% 5307.69 2015 392 5,005,0571 $2,028.993 4.3% 5252.49 2014 362 3,455,915 51,542,166 3.0% 5283.37 Puss 1 coPdes Avg Price Y,dex Overall $4,041,549 150 5.6% 54,824,687-1 148 5.5% $5,353,543 145 5.3% 2013 264 4,280,340 $861.903 3.8% $231.41 2012 268 4,204,654 $1,009,987 t 3.7% $205.36 2011 209 2,582,941 $632,438 2.3% $25257 2010 150 2,898,161 5678,601 I 2.6% S19722 $4,687,435 136 5.3% $3,606,289 I 125 84.741,724 2009 133 1,297,581 6169,736 1.2% 1206.43 2008 1 io 2,183,228 $442,155 2.0% 8237.30 1 2007 232 3,581,035 $815,308 3.3% $271.56 2006 182 ` 3,705,837 $562,542 3.5% $227.94 2005 199 2,490,765 S469,008 2.4% $194.44 MALL SUPPLY AND DEMAND HISTORY AND FORECAST Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Source: CoStar 5.5% 116 5.7% 83,513,542 102 84,917,395 I 87 $1,571,627 84 $2,679,726 100 6.3% 7.3% 7.0% $3,544,818 119 6.3% 5.4% $3,328,650 114 $2,244,056 102 5.7% 6.1% SF (000) 19,927 19.535 19,144 18,744 t 16,813 18,261 16,308 16,022 15,999 15.964 15,910 15,881 15,876 InvelaNy Growth r % Growth 391 2.0% 391 2.0% 400 2.1 % 483 2.6% 1 448 8 f 505 3 1 % 2861 1.8% 24 0.1% 35 02% i 15,692 15,603 15,594 15.594 550.3% 02% 6t- 0.0% 1841 1.2% 891 0.6% 0.1% 0 0.0% 234 1.5% Source: CoStar SF (000) Net Absorption % Growth 361 1.9% 411 2.3% 489 2.8% 631 3.7% 8801 182 271 56, 73, 126 83 (89) 137 97 6701 (518) 5.4% 1.7% 0.4% 0.5% 0.8% 0.5% -0.6% 0.9% 0.6% 4.6% 1.1 1.0 0.8 0.8 1.6 28 1.1 0.4 0.5 0.4 0.3 1.3 0.9 0.0 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 74 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS MALL VACANCY AND RENT HISTORY AND FORECAST Vacancy Asking Rent Year SF (000) Percent Ppt. +fig Per SF laic 2021 950 4.8% 0.1 $56.30 i 2020 920 4.7% P (0.2) 555.05 2019 - 940 4.i1 (0.6) $63.81 2018 1,028 5.5% 1 (1.0) 562.75' 2017 1,177 - 6.4% 2.8 u 552.04 2016 608 3.6% 1.9 $51.18 2015 286 18% I I 0.1 548.78 2014 271 1.7% (0.2) 546.66 2013 304 1.9% (0.2) $44.74 2012 _ 342 21% (0.5) $ 41.S4329 2011 414 2.6% (0.3) 542.14 2010 4681 29% A 0.6 93 2009 373 i 2.4% 0.3 2008 326 2.1% (0.1) 2007 334 2.1% (4.2) 2006 995 6.4% 0.0 2005 01 - 0.0 , Source: CoStar MALL SALES HISTORY 542.40 544.61 545.73 $43.17 126 2.3% 123 2.3% 121 2.0% 118 13% 117 1.7% 115 4.9% 109 4.5% 105 4.3% 100 3.4% 97 _ 27% 94' 05% 94 -1.1% 95 100 -2.4% 103] 5.9% 97 - Year YTD 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Saks Votane Price SF Volume TYtrrUrer 0 0 S0 0.0% 4 481,047 S205,343,689 2.9% 12 874,804 5375,710,480 5.4% 0 _0 S0 0.0% 5 167,701 55,323,E 1.0% Per SF Avg Price 5425.55 $1,874.08 $500.39 6 482,202 $119,127,144 3.0% 7 367.675 $63,404,961 2.3% 561,535 $18,000,000 3.5% 0 0 S0 0.0% $287.66 5173.01 $51,335,920 $31,309, 08 52,661,779 519,854,524 $10,567,493 $4238 , $4,500,000 1 14,815 S0 0.1% 2 10,702 SO 1 0.1% 4 818,959 S0 5.3% 0 0 S0 0.0% Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 75 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS POWER CENTER SUPPLY MID DEMAND HISTORY AND FORECAST Inventory Year SF (000) Growth % Growth 2021 - 3.369 1 0.0% 2020 3.368 1 0.0% 3,366 � 1 0.0% 3,365 1 0.0% 3,364 3.364 3.364 =1 3.364 3,364 3.360 3,360 3,356 3.343 3,163 z784 2,784 2,779 1 0.0% 0 ! 0.0% 0.0% Net Absorption SF (0001 % Growth Construction Ratio (5) -0.2% - 2T 0.1% 0.6 0.0% (6) (22) 5 (3) 0.1% I 0.3 0.1% 0.3 -02% - -0.7% - 02% 0.0 -0.1% 0.1% 0 0.0% 37 0.1% 13 0.4% 180 5.7% 380 13.6% O 0.0% 5 02% O 0.0% Source: CoStar POWER CENTER VACANCY AND RENT HISTORY AND FORECAST (1) 20 56 58 147 329 (19) 268 0.0% 0.6% 0.0 1.7% I 0.1 1.8% , 02 4.8% 12 121% 12 -0.7% I - . 0.0 Year SF (000) 2021 61 2020 55 1.6% 2019 56 1.7% 2018 59 1.7% 2017 52 1.8% 2016 561 1..6% 2015 331 1.0% .2014 38 1.1% 2013 35 1.0% 2012 30 0.9%- 2011 50 1.5% 2010 102 3.0% 2009 147 4.4% 2008 114 3 2007 63 2.3% 2006 45 . 1.6% 2005 Vacancy Patent Ppts Chp 1.8% 1 02 0.0 (0 1) 0.2 A.kfoo Rant Per SF riR %Growth 536.41 126 1.8% S35351 124 1.8% 335.11 122 1 4% 120 05% S34.63 I 534.47 0.7 (02) 0.1 02 (0.6) (1.5) (1.4) 0.8 1.3 0.7 0.0 0.01 534.10 Source: CoStar $32.56 530.91 529.43 528.01 526.92 626.62 118 113 107 102 97 93 92 527.14 94 1.1% 4.7% 5.3% 5.0% 5.1% 4.1% 1.1% -1.9% -5.8% -1.3% 5.0% 528.83 100 $2922 101 527.82 97 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 76 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS POWER CENTER SALES HISTORY Year YTD 2016 2015 2014 2013 2012 Sates 2011 2010 2009 2008 2007 2006 2005 Volum* Price SF Volume Turnover Per SF Avg Price 0I 01 SO 0.0% - - I 0 0 S0 0.0% - - 1 7,956 $5,675,000 02% $713.30 55,675,000 0_i 0 S0 0.0% - t - 2 297,072 $92,000,000 8.8% $381.31 $92,000,000 1 180,0 50 5.4% -1 - 0 0 S0 0.0% - - 0 0 $0 0.0% - - 0 0 S0 0.0% - - 1 7,956 64,850,000 0.3% $609 6060 64,1150,000 1 80,315 ' 615,900,000 2.9% $197.97 $15,900,000 0 0 SO 0.0% - - 0 0 S0 0.0% - - Source: CoStar NEIGHBORHOOD CENTER SUPPLY AND DEMAND HISTORY AND FORECAST bwentory Net Absorption Year SF (000) Growth % Growth SF (000) % Growth Construction Rego =)02 T 20,743 193 1.0% 168 0.9% 1 1.1 2020 243, 149 193 1.0% 167 0.9% 12 2019 19,956 194 1.0% 165 0.9% ' 12 2018 19,762 196 1.0% 219 1 12% 0.9 2017 19,566 171 0 175 G9% 1 1] 2016 19.395 102 0 5% 179 1.0% 0.6 2615 19,293 225 12%1 3721 2.1% 0.6 2614 19,068 163 0.9%' 309 1.7% 0.5 2013 18,905 57 0.3% (27) -0.2% - 211112 18,848 128 0.7% 248 1.4% 0.5 201 ° 18,720 53 0.3% 266 1.5% i 02 2010 18,667 179 4 1.0% 205 _ 12% ( 0.9 2009 18,488 140 0.8% (142) -0.8% - _ 2008 18,348 461 2.6% 61 0.4% 7.6 2007 17,888 424 2.4% j 321 1.9% 1.3 2006 17,464 262 1.5% 1 157 - 1.7 2005 17,202 555 3.3% - - - Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 77 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS NEIGHBORHOOD CENTER VACANCY AND RENT HISTORY AND FORECAST Adidas Obit Year SF (000) Percent Pills Chi( Per IF Wu 2021 771 , 3.8% 0.1 132.98 I 2020 747 3.7% 0.1 S32.44 2019 721 3.6% a.1 $31.92 2018 692 3 5% (0.1) 131.57 2017 714 3 6% (0.1 13151 2016 718 3.7% (04}1 2015 796 4.1% (0 8) 2014 9431 4.9% (0 8) 2013 h 1,088 5.8% 0.4 2012 ) 1,005 5.3% dfl 7) 2011_ I 1,125 6.0%1 f12) 2010 1,338 72% (0.2) 2009 1,364 7.4% 1.5 2008 1,083 5.9% 2.1 2007 683 3.8% ' 0.5 2006 581 3.3% 0.0 2005 - 0.0 Source: CoStar NEIGHBORHOOD CENTER SALES HISTORY 131,16 529.52 127.96 $26.53 S25.26 $24.45 524.15 $24 71 526.15 $26.51 525.35 126 1.7% 124 1.6% 122 ` 1.1% 121 02'% 121 1.1% 119 5.6% 113 5.6% 107 5A% 101 5.1% 97 3.3% 94 1.3% 92 -2.3% 95 -5.5% 100 -1.4% 101 4.6% 97 - Yew YTD 2016 2015 volwne Price Sae. SF volrene Turner Per SF km Price 20 920,418 $90,592,400 4.7% $399.68 _$10,065,822 14 662,589 $144,921,600 3.4% 5223.71 $11,147,816 31 878,704 $196,837.479 4.6% $245.65 56,561,250 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 27 803,155 S202,269,196 42% $320.44 $8.427,883 35 1,168,214 $178,069,153 6.2% $20028 $7.419,548 - 982,025 $165,595,810 5.2% 5251.57 $8,279,791 19 378,586 $74,947,411 2.0% $313.73 $5,353,387 15 548,457 i $119,247,215 2.9% S178.18 $9,172,863 6 . 199,734 534,785,553' 1.1% $206.62 $5,797,592 12 272,586 566,192,574 1.5% $286.47 $6,619,257 15 826,608 $70,318,398 4.6% $162761 $6,392,582 22 843,026 5170,809,006 4.8% $268.15 $7,117,042 14 429,529 $103,094,704 2.5% $304.02 $5,426,037 Source: CoStar SUBMARKET ANALYSIS In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. For CoStar analysis, the subject is located within the Coconut Grove submarket. Key indicators and annual trends for the submarket are shown on the following tables. JOSEPH J. BLAKE AND ASSOCIATES, INC, REAL ESTATE VALUATION AND CONSULTING 78 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS KEY INDICATORS Current Quarter RBA (000) Vacancy Rate tsrwRent dog Availability Rate Net Absorption Net Deliveries Under Corrst f000l (000) l000l 4 & 5 Star 621 18.1% $40.91 21.3% 5 — 0 3 Star 1,268 6.1% $39.20 10.0% (5) 0 1 & 2 Star 337 2.5% $34.26 9.2% 1 0 SUBMARKET 2,227 8.9% $38.75 13.1% 1 — 0 Annual Trends 12 Month Change Hist. Avg. Fcst. Avg. Peak When Trough When Vacancy 1.6% 8.9% 8.7% 14.7% 2010 Q1 1.1% 2000 Q2 Net Absorption (000) 63 2 11 104 2011 Q1 = 12y 2007 Q2 Net Deliveries (000) 106 9 16 106 2017 Q1 0 2007 Q3 Rent Growth 3.8% 3.1% 1.8% 8.9% 2007 Q3 -5.7% 2009 Q4 Sales ($ millions) $2 $41 N/A $146 2006 Q2 $1 2001 Q3 Source: CoStar Historical and forecast net absorption, net deliveries and vacancy rates are shown on the following chart. NET ABSORPTION, NET DEUVERIES AND VACANCY RATE 117 92 68 44 20 I5 It—. 1 1 r I 1.°t 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Forecast 15.7% 13.7% 11.6% 9.6% 7.5% IIIII Deliveries r Net Absorption Source: CoStar Vacancy — Market Vacancy JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 79 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS BUILDINGS BY VACANCY Buildings by Vacancy Rate • 0%-5% • 5%-10% 10%-15% • 15% - 20% • 20%-100% Source: CoStar Historical and forecast net deliveries are shown on the following chart. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 80 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS NET DELIVERIES 120 100 80 60 40 20 1 Forecast 1 01 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CCOSTRUCTION ACTIVITY Source: CoStar Construction Status and Size in SF Proposed l� Recently Delivered Under Rerwaban O 2200 - 42,000 0 42,000 - 75,000 O 75,000 -110,000 Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 81 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS UNDER RENOVATION PROJECTS No. Property Name 7 5 GI. Traver Coconut Grove Bank DBJVERED PROJECTS Addison Stein SF 2900 SW 211111 Tar I 7 I 32.000 2701 S Bayshore D► 7 I 70,000 No. Prapeny None Stan Yr. Dells. Yr 2016 2016 Address Stories SF 1 Mercy Medical Arts Building 3683 S Miami Ave 8 3439 Main Hwy 6 Key Biscayne Medical Building PROPOSED PROJECTS No. Property Name 3 One Cocowalk 4 2 27@Lincoln Mary St. 3439 Main Hwy 580 Crandon Blvd 4 106,000 2015 2017 2 2,200 2009 2010 4 52,000 2009 2010 Address Stories SF 3001 Virginia St 5 77,850 3151 SW 27th Ave 73,000 3310 Mary St 7 95,000 Source: CoStar Oveter1Devetopsr A 8 M Global Solutions... Tenn Group Siert Yr. Deity. Yr Owner/Developer HCA Management Service... St Stephens Epis Churc... SR Douglas LLC Stan Yr. Deliv. Yr Owner/Developer N/A N/A LointerHame WA Terra Grasp Rents Historical and forecast rent levels and annual growth are shown on the following chart. ASKING RENT LEVELS AND ANNUAL GROWTH ;45.91 $41.52 $37.12 $32.73 $28.33 23.93 i t t Forecast 6.0% 4.0% 2.0% MIME 0.0% 2011 2012 2013 2014 2015 2016r2017r201Br2019r20202021 120°` = Rent Growth Y/Y — Asking Rent — Market Asking Rent Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 82 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Sales Historical and forecast sales volume and median price are shown on the following chart. SALES VOLUME AND MEDIAN PRICE $500 $100 $400 $80 $300 $60 $200 ,r $40 $100 $20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0 Volume Price Per SF - Metro Price Per SF Source: CoStar SUBMARKET STATISTICS SUBMARKET SUPPLY AND DEMAND HISTORY AND FORECAST Yea 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Inventory SF (000) Grower Vim) x Growth 2.251 10 0.4% 2.241-1 8 0.4% 2,233 6 0.3% 2,227 0 0.0% 2,227 106 5.0% 2.121 0 0.0% 2,121 0 0.0% 2,121 0 0.0% 2,121 0 0.0% 2,121 0 0.0% 2,121 0 0.0% 2,121 54 2.6% 2,066 0 0.0% 2,066 0 0.0% 2,066 0 0.0% 2,066 0 0.0% 2,066 5 0.2% Source: CoStar SF Wo) Net AWorption % Growth Construction Raba 4 0.2% 2.5 5 0.2% 1.7 13 0.7% 0.5 18 0.9% 0.0 29 1.4% 3.7 (4) -0.2% - 11 0.5% 0.0 33 1.7% 0.0 21 1.1% 0.0 56 2.9% 0.0 46 2.5% 0.0 55 3.1% 1.0 (n) -4.2% 2 0.1% 0.0 (12) -0.6% - (51) -2.7% - 26 1.4% 02 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 83 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS SUBMiARKET VACANCY AND RENT HISTORY AND FORECAST Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vacancy Gross Asking Rent SF (000) Percent Pots Ckp Par SF lillkex 195 8.7% 02 190 8.5% 0.1 186 8.3% (0.3) 193 8.7% (0.8) 211 9.5% 32 134 6.3% 02 130 6.1% (0.5) 140 6.6% (1.6) 174 82% (1.0) 194 92% (2.6) 249 11.7% (2.2) 295 13.9% (0.4) 296 14.3% 3.7 219 10.6% t."'ry 221 10.7% 0.6 2006 2005 SUBMARKET SALES HISTORY 2091 10.1% 2.5 $41.74 121 1.0% $41.31 120 $40.64 118 $39.76 115 $39.12 114 538.20 111 $36.73 107 $34.51 100 $32.931 96 4.0% S31 67 92 3.4% $30:� 89 -1.996 $31.23 91 -3.9% $32.49 94 -5.7% $34.46 100 2.0% $33.79 98 8.6% $31.12 90 7.1% 1.6% 2.2% 1.7% 2.4% 4.0% 6.4% 4.8% 158 L 7.6% (1.0) I $29.07� 84 52% Source: CoStar Year YTD 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 21106 2005 Vokane No. of Saks SF 1 6 14 8 7 6 7 7 3 8 5 11 Nolan 2,500 $1,000,000 28,376 $10,680,000 297,132 $86,120,300 326,449 $40,330,002 97,330 $59,887,299 180,192 $30,046,484 129,490 $28,425,100 329,654 $5,574,000 15.5% 127,796 $69,553,001 13,721 Price Turnover Medan Per SF Avg Price 0.1% $400.00 $1,000,000 1.3% $376.17 $1,780,000 14.0% 15.4% 4.6% 8.5% 6.1% 179,069 $2,965,998 $61,259,323 62% 0.7% 8.7% 278,388 $88,591,301 13.5% 482,222 $73,239,998 23.314 $370.64 $6,624,639 $311.73 $6,721,667 $256.19 S8,555,329 $146.96 $6,009,297 $209.84 $4,737,517 $17620 S2,787,000 $365.22 $7,728,111 $398.78 1494,333 $446.06 14,375,666 $382.64 $7,382,609 $266.17 $8,137,778 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 84 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Conclusion Miami, one of the nation's more active markets for retail development, bears watching for the several major mixed -use projects moving forward. The community neighborhood center market should continue to tighten. Year-end 2016 vacancy for the submarket was 6.3%. Year-end 2016 rental rate for the submarket was $38.20 NNN. Rent growth in 2016 for the submarket was 4.0%. Increases in vacancy and lower rates of rent growth are expected for 2017. The subject consists of a good quality marina with on -site restaurant and retail/office building located in the Coconut Grove neighborhood of the Coconut Grove submarket. The area is expected to see continued interest due to the recent and ongoing construction of rental apartment and condominium units nearby. RESTAURANT RENT COMPARABLES The subject has a restaurant tenant, in addition to retail/office space on both the first and second floor. The subject's restaurant is on a waterfront location, adjacent to a popular marina, and within walking distance of high end condominium units, office buildings, luxury residences, and open park space. The neighborhood is considered to be one of the more popular in Miami, and is very popular with locals and tourists alike. We searched for restaurant rent comparables within the subject's immediate neighborhood, but we were only able to find a few spaces available for rent. Therefore, we searched within a comparable neighborhood that is also popular with tourists. We found several restaurant spaces in Miami Beach. Like Coconut Grove, Miami Beach is popular with tourists, has a significant number of luxury condominiums, has a waterfront location, and is popular with restaurants and other lifestyle type businesses. Information on the following pages summarizes our findings. Restaurant Rent Comparable 1 Location: 3120 Commodore Plaza, Coconut Grove, Florida Net Rentable Area - 4,242± SF Available Asking Rental Rate/SF - $45.00 Lease Structure - Net Comments - Restaurant/Bar space Restaurant Rent Comparable 2 Location: 2982 Grand Avenue, Coconut Grove, Florida Net Rentable Area - 2,475± SF Available Asking Rental Rate/SF - $50.00 Lease Structure - Net Expenses/SF - $12.82 Comments - Restaurant/Bar space Restaurant Rent Comparable 3 Location: 81 Washington Avenue, Miami Beach, Florida Net Rentable Area - 5,000± SF Available Asking Rental Rate/SF - $85.68 Lease Structure - Net Comments - Restaurant space JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 85 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Restaurant Rent Comparable 4 Location: 835 Alton Road, Miami Beach, Florida Net Rentable Area - 9,900± SF Available Asking Rental Rate/SF - $75.00 Lease Structure - Net Comments - Restaurant space The properties were indicating an asking rental rate range of $45.00/SF to $85.68/SF for restaurant space, with the low end of the market in the Coconut Grove area. However, these are not waterfront restaurants like the subject. The higher end of the rental range ($85.68/SF) is represented by a restaurant located in South Beach. Considering the asking rental rates at competing properties within the area we conclude to a rental rate range of $40.00/SF to $60.00/SF for the subject on a net basis. Considering the subject's waterfront location, in an area that is popular with tourists and locals alike, as well as the size, age and condition of the space, as well as the outdoor patio area, we have concluded to a rental rate of $55.00/SF for the subject's restaurants. We have concluded to the lower end of the range due to the subject's larger size than the comparables. This rate is assumed to be on a net basis with a full pass through of expenses. Restaurant Gross Sales Revenue Illustrated below are the average restaurant sales figures for 14 full -service sit-down facilities as detailed within by the Franchise Finance Corporation of America. These restaurants represent chains that increased their presence within the marketplace by adding new restaurants. The presented restaurants reflect casual dining facilities, as well as several fine dining establishments. Current figures are not available as this publication is no longer active. Expansion Approx. Expansion Approx. Restaurants Size -SF Sales/SF Restaurants Size -SF Sales/SF PF Changs 7,300 $726.03 Roadhouse Grill 6,500 $384.62 Morton's 8,000 $500.00 Red Robin 6,750 $380.00 TGI Friday's 6,800 $507.35 Casa Ole 4,500 $288.89 Logan's Roadhouse 6,500 $507.69 Hops 6,125 $408.16 Chili's 5,600 $4.64.29 Texas Steakhouse 6,200 $362.90 Applebee's 5,000 $443.00 Ground Round 5,400 $388.89 Texas Roadhouse 6,600 $477.27 Famous Dave 5,000 $363.00 Monty's Raw Bar Gross Sales Revenue Typically, the Miami MSA tends to have retail sales above national averages due to the influx of revenue from tourists. We were not provided with the sales revenue at the subject's existing restaurants. Monty's Raw Bar has achieved gross sales of $314.88/SF in 2014/2015, $311.28/SF in 2015/2016, and $348.60/SF in annualized based on the eight months from 10/16 to 5/17. Based on the restaurant comparables, we estimate that the subject's restaurants would achieve sales of $310 per SF. Monty's Raw Bar contains approximately 24,409 SF. Therefore, gross sales for Monty's Raw Bar is projected to be $310.00/SF, or $7,566,790 per year. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTINO 86 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS RETAIL/OFFICE RENT COMPARABLES The subject's upland building contains the restaurant, with indoor and waterfront dining. The remainder of the building is finished as retail/office space. Current tenants include Starbucks while the remainder consists of a restaurant, a real estate brokerage office, boat brokerage offices, a law office and a yoga studio. The building has two floors, with an elevator allowing for access to the second floor. The lease stipulates the use of the building must be for an "essential service" to encourage public enjoyment, use and participation of the facility. Essential services are defined as: Restaurant, retail facilities, a marina, as well as refreshment stand, boat rentals, bait and tackle shop, convenience food store for the benefit of the marina tenants, marine supply store, outboard motor sale and service, marine clothing sales, marine furniture sales, boat tours, fishing areas, sporting goods stores, antique store, art galleries, book stores, bakery, bicycle sales and repair, china and crockery, confectionery or ice cream store, clothing, photographic sales, gift shop, hobby shop, jewelry and watch sales, leather goods, lounges, news stand or sundry, travel agency, sail maker, arts and crafts, office for management of the property, marine fuel pumps, and any related or allied use if approved by the City Manager. The rental rates charged at the subject's upland building would be most similar to other retail/office buildings within the subject's neighborhood. We researched the asking rates at retail and office facilities in the subject's Coconut Grove neighborhood. These retail and office rental comparables are shown below: Subject Retail Name: Bayshore Landing Location: 2550 S Bayshore Drive, Coconut Grove, Florida Net Rentable Area - 915± SF Year Built - 1989 Rental Terms: Rental Rate/SF - $35.00 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Bayshore Drive Subject Office Name: Bayshore Landing Location: 2550 S Bayshore Drive, Coconut Grove, Florida Net Rentable Area - 1,685± SF Year Built - 1989 Rental Terms: Rental Rate/SF - $35.00 - $40.00 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Bayshore Drive JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 87 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Retail Rent Comparable 1 Name: Commodore Plaza Location: 3162 Commodore Plaza, Coconut Grove, Florida Net Rentable Area - 1,391± SF Year Built - 1985 Rental Terms: Rental Rate/SF - $44.85 - $56.07 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Commodore Plaza Retail Rent Comparable 2 Name: Oak Avenue Plaza Retail Location: 2800-2860 Oak Avenue, Coconut Grove, Florida Net Rentable Area - 2,317± SF Available Year Built - 1981 Rental Terms: Rental Rate/SF - $60.00 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Crandon Boulevard Retail Rent Comparable 3 Name: Harbor Plaza Location: 51-99 Harbor Drive, Key Biscayne, Florida Net Rentable Area - 3,000± SF Year Built - 1957 Rental Terms: Rental Rate/SF - $60.00 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Harbor Drive JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 88 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Office Rent Comparable 1 Name: One Cocowalk - Proposed Location: 3001 Virginia Street, Coconut Grove, Florida Net Rentable Area - 77,851± SF Available Year Built - 2019 Rental Terms: Rental Rate/SF - $38.00 - $40.00 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Virginia Street Office Rent Comparable 2 Name: Mary Street - Proposed Location: 3310 Mary Street, Coconut Grove, Florida Net Rentable Area - 28,000± SF Available Year Built - 2018 Rental Terms: Rental Rate/SF - $38.00 Lease Terms - 3 to 5 years Lease Structure - Net Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Mary Street Office Rent Comparable 3 Name: Mayfair in the Grove Location: 3390 Mary Street, Coconut Grove, Florida Net Rentable Area - 7,784± SF Available Year Built - 1977 Rental Terms: Rental Rate/SF - $38.00 Lease Terms - 3 to 5 years Lease Structure - Modified Gross Tenant Finish - As Is Rent Escalation - CPI or Steps Concessions - Negotiable Comments: Street frontage on Mary Street JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 89 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Name: Location: Net Rentable Area - Year Built - Rental Terms: Rental Rate/SF - Lease Terms - Lease Structure - Tenant Finish - Rent Escalation - Concessions - Comments: Office Rest Comparable 4 2486 SW 27th Terrace 2486 SW 27th Terrace, Coconut Grove, Florida 3,045± SF Available 1999 $38.50 3 to 5 years Modified Gross As Is CPI or Steps Negotiable Street frontage on SW 27th Terrace Rental rates for retail space within the subject's immediate neighborhood range from $44.85/SF to $60.00/SF. Rental rates for office space within the subject's immediate neighborhood range from $38.00/SF to $40.00/SF. Although the rental rates for similar properties are important variables in the determination of market rental rates, the subject's actual leases have also been taken into account. The subject is judged to be under good management and the recent leases which currently encumber the subject are considered to be reflective of actual market rents. The terms of the subject's leases reflect actual negotiated rental rates which in turn reflect the specific trend of the property, (i.e. location, finish -out, tenant mix). As a result, the terms of the recent lease agreements within the subject have been given some weight in estimating the level of market rent which will likely be achieved by the property. The subject's current office/retail leases were analyzed as illustrated in the following chart. The lease details of each tenant are confidential. Therefore, the leases have been summarized as follows. Tenant Name Lease Lease Start Expiration Base Rental Base Rental Suite NRA Date Date Revenue Revenue/SF CAM CAM/SF Tntal Monty's Starbucks Florida Yacht International Sushi Maki Sushi Maki Outdoor Compass Vacant by Elevators Southern Apex Marine Body Belly Baby Citi marine Grande Yachts International Hatteras Latin America Prime Marina Group David Avellar Neblett Performance Yacht Sales Confidential Total 53,729 $2,078,369 $768,739 $2,847,088 Average perSqFt $38.68 $14.31 $52.99 The rental rates of the subject's 1st floor leases have an average of $42.68/SF, on a triple net basis. The rental rates of the subject's 2nd floor leases range have an average of $31.85/SF, on a triple net basis. The subject is currently asking $35.00/SF for vacant retail and office space. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTINO 90 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Based on the subject's location, adjacent to a marina, and parking availability, we conclude the market rent for the subject's space is in the range of $30.00/SF to $45.00/SF net. Based on the comparables, as well as the location, visibility, and occupancy restrictions, we conclude the subject's market rent would be approximately $42.00/SF net for first floor space and $32.00/SF net for second floor space. UPLAND EXPENSE REIMBURSEMENT REVENUE Upland expense reimbursement revenue incorporates upland CAM and tax reimbursements. The total historical upland revenue for the subject is shown on the chart below, along with our projections: Expense Reimbursement Revenue Subject - 2012 Subject - 2013 Subject - 2014 Subject - 2015 Subject -July 2017 Rent Roll Amount: $203,677 $258,734 $310,078 $440,680 $768,719 Per SF: $3.79 $4.82 $5.77 $8.20 $14.31 The subject's ownership is currently charging $14.50/SF for expense reimbursement revenue. Therefore, we concluded to upland expense reimbursement revenue of $14.50/SF. Upland Vacancy and Collection Loss Vacancy and collection loss reflects the fact that most income -producing properties have a certain amount of vacancy and rental income loss. The vacancy factor is determined primarily by current market. The subject's retail/office building is currently 97.50% occupied. The subject's retail submarket has a current vacancy rate of 6.3% for non -anchored retail. We estimate a 5.00% stabilized vacancy and collection loss for the subject's retail/office building. Upland Revenue Pro Forma The pro forma for the upland revenue is shown below. SF Rent/SF Base Rent Restaurant Revenue (Sushi Maki) 3,240 $55.00 $178,200 Retail Revenue 9,758 $42.00 $409,836 Office Revenue 15,862 $32.00 $507,584 Expense Reimbursement 53,728 $14.50 $779,056 Potential Gross Revenue $1,874,676 General Vacancy - 5% ($93,734) Effective Gross Revenue $1,780,942 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 91 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS Percentage Rent With regards to the rental rate for the subject's restaurants, it is noted that a number of marina and restaurant facilities in Miami -Dade County are leased with the property's rental rate stipulated on a base amount, base amount plus percentage rent, percentage rent or the greater of percentage rent or base rent. Detailed below is information regarding several marina/restaurant comparables within the market: Comparable Base Rent % Rent Confidential Miami Yacht Club Miami Outboard Club Coconut Grove Sail Club Grove Harbour Marina Rickenbacker Bayside Marketplace Subject — Monty's $320,000 10% of gross receipts $49,080 9.0% of gross revenue in excess of $380,000 $35,004 10.0% of Gross revenue in excess of $120,000 for restaurant $30,000 or 7.5% of gross revenues $550,000 or 15% of gross revenue for marina 10% of gross revenue for boatyard 10% of gross revenue for restaurants 5% of gross revenue for service/fuel $360,000 15.00% of gross revenues for wet slips 12.00% of gross revenues for dry slips $1,540,000 NA 10% of gross receipts for raw bar sales 10% of all upland rents (excluding raw bar) 15% of gross receipts from rental dockage In addition, the Rusty Pelican's lease stipulates that it will pay rent of $360,000/year plus a variable percentage rate, starting at 2.5% and rising to a maximum of 8% of gross revenues over sales of $12,000,000. The subject's original lease state lease payments are required at 10% on all gross receipts for raw bar sales, 10% of all upland rents (excluding the restaurant) and 15% of gross receipts from rental dockage. The subject's original lease percentage rent structure appears market oriented based on the comparable lease structures and has been utilized in this analysis. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 92 Bayshore Landing Marina 16-091-02 MARKET ANALYSIS CONCLUSION Bayshore Landings market rent estimate is calculated as follows: Projected Annual Revenue Revenue Percentage Rent Factor Estimated Rent Rental Dockage $2,400,610 15% $360,092 Monty's Raw Bar $7,566,790 10% $756,679 Upland Rents $1,780,942 10% $178,094 Total (All Revenues) $11,748,342 $1,294,865 Additional Rent There is a proposed Fifth Amendment to the lease agreement between the City of Miami and Aligned Bayshore Marina, LLC. The portion of the proposed lease that mentions Additional Rent is shown below. F. New section 13 (VI) and 13 (VII) will be added. Section 13 (VI) Additional Rent: The Company agrees to pay the City a minimum of the greater of Two Hundred Thousand Dollars ($200,000) per lease year, or 1.75% of Gross Receipts derived from the property as Additional Rent. Section 13 (VII) Along with the payment of the Additional Rent, the Company shall provide the city with a statement of Gross Sales specifically detailing the Gross Sales received for the immediately preceding Lease Year audited by a Certified Public Accountant. The Additional Rent percentage rent of 1.75% of gross revenues equates to $205,596 based on our projected gross revenue estimate of $11,748,342. This is above the minimum additional rent threshold of $200,000 per lease year. Therefore, the additional rent to the city is $205,596. CONCLUSION The market rent estimate for the subject is calculated as follows: Projected Annual Revenue Revenue Percentage Rent Factor Estimated Rent Rental Dockage $2,400,610 15% $360,092 Restaurant $7,566,790 10% $756,679 Upland Rents $1,780,942 10% $178,094 Total (All Revenues) $11,748,342 $1,294,865 Additional Rent $11,748,342 1.75% $205,596 Estimated Fair Market Rent $1,500,461 Rounded $1,500,000 Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $1,500,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 93 Bayshore Landing Marina 16-091-02 RECONCILIATION AND FINAL VALUE After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the fair market rent of the subject for the proposed Fifth Amendment to the Lease Agreement between the City of Miami and Aligned Bayshore Marina as of July 16, 2017, is: $1,500,000 ONE MILLION FIVE HUNDRED THOUSAND DOLLARS The market rent estimate for the subject is calculated as follows: Projected Annual Revenue Revenue Percentage Rent Factor Estimated Rent Rental Dockage $2,400,610 15% $360,092 Restaurant $7,566,790 10% $756,679 Upland Rents $1,780,942 10% $178,094 Total (All Revenues) $11,748,342 $1,294,865 Additional Rent $11,748,342 1.75% $205,596 Estimated Fair Market Rent $1,500,461 Rounded $1,500,000 Based on our fair market rent conclusion, the minimum base rental rate for the subject should be $1,500,000, with annual CPI escalations. The annual rental rate due to the City of Miami is the greater of the minimum base rent or percentage rent. This market rent should be re-evaluated every five years to take into consideration any change in market rent. Rental rates for ground leases are typically adjusted every five years in the market. The subject is proposed for renovation of its marina and upland improvements. Therefore, this appraisal is based on the extraordinary assumption the construction will be performed in a workmanlike manner. This appraisal is not based on any hypothetical conditions. The opinion(s) of value are based on reasonably achievable exposure times of 6 to 12 months, assuming the property is properly priced and actively marketed. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 94 Bayshore Landing Marina 16-091-02 ADDENDA JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING CFN: 20150335262 BOOK 29630 PAGE 2569 DATE:05/27/2015 09:06:27 AM DEED DOC 41,700.00 SURTAX 31,275.00 HARVEY RUVIN, CLERK OF COURT, MIA-DADE CTY This Instrument prepared by and after recording return to: Suzanne Amaducci-Adams. P.A. Bilzin Sumberg Baena Price & Axelrod LLP 1450 Brickell Avenue. 23rd Floor Miami. Florida 33131 Tax Parcel I.D. No. 01-4122-001-1631 (For Recorder's Use Only) SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED, is made effective as of May 21. 2015, by BAYSHORE LANDING, LLC, a Florida limited liability company with an address at c/o RCI Group. 300 Alton Road, Suite 303, Miami Beach. Florida 33139, Attention: Robert W. Christoph, Jr. ("Grantor") in favor of ALIGNED BAYSHORE MARINA LLC, a Florida limited liability company. with an address at 2550 South Bayshore Drive, Suite 204A, Miami. Florida 33133. Attention: Jose Hevia and Stefan Johansson ("Grantee"). Grantor, for and in consideration of the sum of $10.00 and other good and valuable consideration paid by Grantee. receipt of which is acknowledged. grants. bargains, sells, remises. releases, conveys and confirms unto Grantee and its successors and assigns forever, all of the improvements located on the parcel of land. situate. lying and being in the County of Miami - Dade, State of Florida. and more particularly described on the attached Exhibit A (the "Property") which improvements include but arc not limited to all buildings. awnings, docks, dock lifts. moorings. piers, fences, chickee huts. signage, light fixtures. parking areas, walkways. or paved pedestrian and vehicular accessways and all other improvements now or hereafter located on the Property. whether below or above grade level. as well as all the fixtures and appurtenances thereto (collectively the "Improvements"). TO HAVE AND TO HOLD, the Improvements herein granted unto the Grantee. the heirs or successors, and assigns of the Grantee. subject to the terms and provisions of that certain Lease Agreement between the City of Miami ("Landlord") and Bayshore Properties, Inc. ("BPI") dated September 20, 1985, as (i) assigned to Grove Marina Market, Ltd. ("GMM") by virtue of that certain Assignment of Lease dated March 16, 1986. that certain Acceptance of Assignment of Lease dated March 14. 1986. and that certain Consent by and between Landlord and BPI dated March 13. 1986: (ii) as amended by that certain Memorandum of Understanding dated August 30, 1991. that certain Memorandum of Understanding dated September 10. 1993. as modified by Correction of Scrivener's Error, recorded on February 24, 1994, in Official Records Book 16258, at Page 494 of the Public Records of Miami -Dade NOTE TO RECORDER: DEED IS ONLY FOR IMPROVEMENTS WHICH ARE VALUED AT $6,950,000.00; FEE IS NOT OWNED BY GRANTOR OR GRANTEE; FEE SUBJECT TO LEASE REFERENCED IN DEED. MIAMI 4453508.3 76565/43914 CFN: 20150335262 BOOK 29630 PAGE 2570 County, Florida and that certain Amendment to Lease Agreement dated November 14, 2001; (iii) as further assigned by G M M to Bayshore Landing, LLC ("Landing") by that certain Assignment and Assumption of Master Lease dated August 20, 2004 and that certain Consent to Assignment dated August 23, 2004; (iv) as further amended by that certain Second Amendment to Lease Agreement between the Landlord and Landing, dated August 20, 2004, that certain Memorandum of Lease dated August 20, 2004 recorded in Official Records Book 22606 at Page 2426 of the Public Records of Miami -Dade County, Florida, that certain Third Amendment to Lease between Landlord and Landing dated December 27, 2004 and that certain Fourth Amendment to Lease between Landlord and Landing dated as of February 26, 2015; and (v) as further assigned by Grantor to Grantee of even date herewith (herein called the "Master Lease"). SUBJECT TO any and all easements, covenants and restrictions of public record without reimposing the same. AND Grantor covenants with Grantee that: (i) Grantor is lawfully seized of a leasehold interest in and the owner of the Improvements on the Property; (ii) that Grantor has good right and lawful authority to sell and convey the Improvements pursuant to the terms and conditions of the Master Lease; (iii) Grantor warrants the title to the Improvements that there are no liens against any of the Improvements arising by or through Grantor; and (iv) Grantor will defend the same against all persons who make a claim by or through Grantor. SIGNATURE PAGE FOLLOWS MIAMI 4453508.3 76565/43914 2 M CFN: 20150335262 BOOK 29630 PAGE 2571 Grantor has executed this Special Warranty Deed as of the date indicated above. GRANTOR: BAYSHORE LANDING, LLC, a Florida limited liability company Robert W. Christop , Jr., Manager Prin I A it2 iJ Print Name of Witness STATE OF FLORIDA COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me this day of May, 2015, by Robert W. Christoph, Jr., Manager of BAYSHORE LA •ING, LLC, 'da limited liability company, on behalf of the limited liability company, i o is perso ;,(• wn t1 or who produced a Florida driver's license as identification. My Commission Expires: r:N. SUZ�IYIE ADAUS +c�'"•••,. uY (�IAtISSA �!� 160106 « EXPIRES: October 12, 2018 trpM1dP Banded lhNBu09etMary Bents [EXECUTION PAGE TO SPECIAL WARRANTY DEED] MIAMI 4453508.3 76565/43914 CFN: 20150335262 BOOK 29630 PAGE 2572 EXHIBIT A PROPERTY The land referred to herein below is situated in the County of Miami -Dade, State of Florida, and is described as follows: PARCEL 1: Lots 20, 21 and 22 and the Northeasterly half of Lot 23, Block 43, of "SAMUEL RHODES PLAT OF NEW BISCAYNE", according to the plat thereof, as recorded in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida; LESS the Northwesterly 4 feet thereof, as right-of-way dedicated to The City of Miami. PARCEL 2: A parcel of submerged land being more particularly described as follows: Commence at the Northerly corner of Lot 20, Block 43, of " SAMUEL RHODES PLAT OF NEW BISCAYNE ", according to the plat thereof, recorded in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida; thence South 40°23'32" East along the Northerly line of said Lot 20 and its Southeasterly prolongation thereof for 691.46 feet, more or less, to a point of intersection with the Miami -Dade County bulkhead line (U.S. Harbor line) as recorded in Plat Book 74, at Page 3 (sheet 5), of the Public Records of Miami -Dade County, Florida, said point being the Point of Beginning of the following described parcel of submerged land; thence continue South 40°23'32" East along the said Southeasterly prolongation of the Northeasterly line of Lot 20 for 270.0 feet; thence South 49°33'29" West for 166.94 feet, more or less, to the point of intersection with the Southeasterly prolongation of the Southwesterly line of the Northeasterly 1/2 of said Lot 23, Block 43; thence North 40°23'32" West along the Southeasterly prolongation of the Southwesterly line of the Northeasterly 1/2 of said Lot 23 for 183.76 feet, more or less, to a point of intersection with the said Miami -Dade County bulkhead line; thence North 21 °41'51" East along said Miami -Dade County bulkhead line (U.S. Harbor line) for 184.53 feet, more or less; thence North 49°33'29" East along said Miami -Dade County bulkhead line for 3.87 feet, more or less, to the Point of Beginning. PARCEL 3: Lot 24 and the Southwesterly half of Lot 23, Block 43, of "SAMUEL RHODES PLAT OF NEW BISCAYNE", according to the plat thereof, recorded in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida; LESS the Northwesterly 4 feet thereof, as right-of-way dedicated to The City of Miami. PARCEL 4: MIAMI 4453508.6 76565/43914 CFN: 20150335262 BOOK 29630 PAGE 2573 A parcel of submerged land in Biscayne Bay in Section 22, Township 54 South, Range 41 East, Miami -Dade County, Florida, lying Southeasterly of and abutting Lot 24 and the Southwesterly one-half of Lot 23 (LESS the Northerly 4 feet thereof) of Block 43, of "SAMUEL RHODES AMENDED MAP OF NEW BISCAYNE", as recorded in Plat Book "B", Page 16, of the Public Records of Miami -Dade County, Florida, being more particularly described as follows: Begin at the Southwesterly corner of said Lot 24, said corner being in the mean high water line of Biscayne Bay; thence South 40°23'32" East along the Southeasterly extension of the Southwesterly line of said Lot 24, a distance of 538.57 feet to a point in the bulkhead line established for this area as shown on map in Plat Book 74, Page 3 (sheet 5), of the Public Records of Miami -Dade County, Florida; thence North 21°41'51" East along said bulkhead line a distance of 84.87 feet to the intersection with the Southeasterly extension of Northeasterly line of the said Southwesterly one-half of Lot 23; thence North 40°23'32" West along said Southeasterly extension a distance of 497.47 feet to the mean high water line of Biscayne Bay; thence Southwesterly along said mean high water line boundary of said Southwesterly one-half of Lot 23 and of said Lot 24, a distance of 75.00 feet, more or less, to the Point of Beginning. PARCEL 5: A parcel of submerged land more particularly described as follows: Beginning at the intersection of the Southeasterly extension of the Southwesterly line of Lot 24, Block 43, of the plat of "NEW BISCAYNE AMENDED", as shown in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida, with the Miami -Dade County bulkhead line as shown in Plat Book 74, at Page 3, (sheet 5), of the Public Records of Miami -Dade County, Florida; thence run North 21°41'51"East along said bulkhead line for a distance of 84.87 feet, to its intersection with the Southeasterly extension of the Northeasterly line of the Southwesterly 1/2 of Lot 23, Block 43, of the aforesaid plat of "NEW BISCAYNE AMENDED"; thence run South 40°23'32" East along the Southeasterly extension of said Northeasterly line of the Southeasterly 1/2 of Lot 23 for a distance of 283.73 feet (285.72 feet calculated) to a point; thence run South 49°36'28" West for a distance of 115.68 feet (114.64 feet calculated) to a point; thence run North 40°23'32" West for a distance of 225.0 feet to a point on the Miami -Dade County bulkhead line; thence North 21 °41' 51" East along said bulkhead line for a distance of 44.86 feet to the Point of Beginning of the herein described tract of submerged land. (See Deed 19448, recorded in Deed Book 3130, Page 260). PARCEL 6: A parcel of submerged land in Biscayne Bay in Section 22, Township 54 South, Range 41 East, Miami -Dade County, Florida, lying Southeasterly of Lots 20, 21, 22 and the Northeasterly half of Lot 23, Block 43, "RHODES NEW BISCAYNE AMENDED", according to the plat thereof, recorded in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida, more particularly described as follows: Commence at the Southwest corner of the Southeast 1/4 of Section 15, Township 54 South, Range 41 East, Miami -Dade County, Florida; thence North 87°30'21" East, along the South line of the Southeast 1/4 of said Section 15, for a distance of 34.46 feet to a point on the monument 2 \74183\20912\ # 682252 v 3 CFN: 20150335262 BOOK 29630 PAGE 2574 line of Kirk Street, as established by the City of Miami, Florida; thence South 38°09'56" East, along the said monument line of Kirk Street, for a distance of 128.73 feet to a point on the monument line of South Bayshore Drive, as established by the City of Miami, Florida; thence South 51°56'48" West, along the said monument line of South Bayshore Drive, for a distance of 1,528.96 feet to the intersection thereof with the prolongation Northwesterly of the Northeasterly line of Lot 20, Block 43 of "RHODES NEW BISCAYNE AMENDED", Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida; thence South 40°23'32" East, along the prolongation Northwesterly of the Northeasterly line of the said Lot 20 and along the Northeasterly line of the said Lot 20 for a distance of 724.46 feet to the intersection thereof with the Miami -Dade County bulkhead line, as established by the Board of County Commissioners of Miami -Dade County, Florida (Point of Beginning); thence South 49°33'29" West, along the said Miami -Dade County bulkhead line for a distance of 3.97 feet; thence South 21°41'51" West, along the said Miami -Dade County bulkhead line, for a distance of 184.49 feet to the intersection with the prolongation Southeasterly of the Southwesterly line of the Northeasterly half of Lot 23 of said Block 43; thence North 40°28'32" West, along the prolongation Southeasterly of the Southwesterly line of the Northeasterly half of the said Lot 23 for a distance of 497.6 feet, more or less, to the face of an existing concrete bulkhead; thence Northeasterly along the face of an existing concrete bulkhead line, for a distance of 10 feet more or less; thence Southeasterly, along the face of an existing bulkhead for a distance of 82 feet, more or less; thence Northeasterly along the face of an existing bulkhead for a distance of 53.9 feet, more or less; thence Southeasterly along the face of an existing bulkhead for a distance of 74.3 feet, more or less; thence Northeasterly along the face of an existing bulkhead for a distance of 12 feet, more or less; thence Northwesterly, along the face of an existing bulkhead for a distance of 52 feet, more or less; thence Northeasterly, along the face of an existing bulkhead, for a distance of 17 feet, more or less; thence Southeasterly, along the face of an existing bulkhead, for a distance of 156.75 feet, more or less; thence Northeasterly, along the face of an existing bulkhead, for a distance of 31 feet, more or less; thence Northwesterly, along the face of an existing bulkhead, for a distance of 19 feet, more or less; thence Northeasterly for a distance of 33 feet, more or less, to a point in the prolongation Southeasterly of the Northeasterly line of the said Lot 20; thence South 40°23'32" East, along the prolongation Southeasterly on the Northeasterly line of the said Lot 20 for a distance of 164.4 feet, more or less, to the Point of Beginning. PARCEL 7: A parcel of sovereignty land, now filled, lying in Biscayne Bay in Section 22, Township 54 South, Range 41 East, Miami -Dade County, Florida, being more particularly described as follows: Commence at the Southwest corner of the Southeast 1/4 of Section 15, Township 54 South, Range 41 East, Miami -Dade County, Florida; thence North 87°30'21" East, along the South line of the Southeast 1/4 of the said Section 15, for a distance of 34.46 feet to a point on the monument line of Kirk Street, as established by the City of Miami, Florida; thence South 38°09'56" East, along the said monument line of Kirk Street, for a distance of 128.73 feet to a point on the monument line of South Bayshore Drive, as established by the City of Miami, Florida; thence South 51 °56'48" West, along the said monument line of South Bayshore Drive, for a distance of 1,528.96 feet to the intersection thereof with the prolongation Northwesterly of 3 \74183\20912\ t$ 682252 v 3 CFN: 20150335262 BOOK 29630 PAGE 2575 the Northeasterly line of Lot 20, Block 43, of "RHODES NEW BISCAYNE AMENDED", Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida; thence South 40°23'32" East, along the prolongation Northwesterly of the Northeasterly line of the said Lot 20 and along the Northeasterly line of the said Lot 20 for a distance of 323 feet more or less to a point on the original high tide line of Biscayne Bay as said high tide line is shown on the said plat of "RHODES NEW BISCAYNE AMENDED", (Point of Beginning); thence continue South 40°23'32" East along the prolongation Southeasterly of the Northeasterly line of the said Lot 20, for a distance of 237 feet, more or less, to the existing high tide line of Biscayne Bay; thence Southwesterly, meandering the high tide line of Biscayne Bay for a distance of 33 feet, more or less, to a point on the face of an existing bulkhead; thence Southeasterly along the face of an existing bulkhead for a distance of 19 feet, more or less; thence Southwesterly along the face of an existing bulkhead for a distance of 31 feet, more or less; thence Northwesterly, along the face of an existing bulkhead for a distance of 156.75 feet, more or less; thence Southwesterly along the face of an existing bulkhead for a distance of 17 feet, more or less; thence Southeasterly along the face of an existing bulkhead for a distance of 52 feet, more or less; thence Southwesterly along the face of an existing bulkhead for a distance of 12 feet, more or less; thence Northwesterly along the face of an existing bulkhead for a distance of 74.3 feet, more or less; thence Southwesterly along the face of an existing bulkhead for a distance of 53.9 feet, more or less; thence Northwesterly along the face of an existing bulkhead for a distance of 82 feet more or less to a point on the original high tide line of Biscayne Bay as shown on the said plat of "NEW BISCAYNE AMENDED"; thence Northeasterly meandering the said original high tide line of Biscayne Bay for a distance of 157 feet, more or less, to the Point of Beginning. AND all lands also described in Warranty Deed dated April 17, 1968 and Filed in Official Records Book 5913, at Pages 253 and 254 of the Public Records of Miami -Dade County, Florida. The aforesaid parcels are to be used as an easement for ingress egress for the following parcels of submerged land: PARCEL A2: A parcel of submerged land in Biscayne Bay being in Section 22, Township 54 South, Range 41 East, Miami -Dade County, Florida, being more particularly described as follows: Commence at the Northerly corner of Lot 20, Block 43, "RHODES AMENDED PLAT OF NEW BISCAYNE", according to the plat thereof, as recorded in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida; thence South 40°23'32" East along the Northerly line of said Lot 20 and its Southeasterly prolongation thereof for 691.46 feet, more or less, to a point of intersection with the Miami -Dade County bulkhead line (U.S. Harbor line) as recorded in Plat Book 74, at Page 3 (sheet 5), of the Public Records of Miami -Dade County, Florida; thence continue South 40°23'32" East along the said Southeasterly prolongation of the Northeasterly line of Lot 20 for 270.0 feet; thence South 49°33'29" West for 41.09 feet, more or less to the Point of Beginning of the herein described submerged parcel of land; thence South 39°25'15" East, 90.15 feet; thence South 50°34'45" West, 92.00 feet; thence North 39°25'15" West, 88.51 feet; thence North 49°33'29" East, 92.01 feet to the Point of Beginning. PARCEL B2: 4 \74183\20912\ M 682252 v 3 CFN: 20150335262 BOOK 29630 PAGE 2576 A parcel of submerged land in Biscayne Bay being in Section 22, Township 54 South, Range 41 East, Miami -Dade County, Florida, more particularly described as follows: Commencing at the intersection of the Southeasterly extension of the Southwesterly line of Lot 24, Block 43, of the plat of "NEW BISCAYNE AMENDED", as shown in Plat Book "B", at Page 16, of the Public Records of Miami -Dade County, Florida, with the Miami -Dade County bulkhead line as shown in Plat Book 74, at Page 3 (Sheet 5), of the Public Records of Miami -Dade County, Florida; thence run South 21 °41'51" West along said bulkhead line for a distance of 44.86 feet to the Point of Beginning of the herein described parcel of submerged land; thence South 40°23'32" East, 225.00 feet; thence North 49°36'28" East, 92.14 feet; thence South 40°23'32" East, 63.39 feet; thence South 49°36'28" West, 120.25 feet; thence North 40°23'32" West, 273.50 feet to a point on the aforesaid Miami -Dade County bulkhead line; thence North 21 °41'51" East on said bulkhead line, 31.81 feet to the Point of Beginning. PARCEL C2: A parcel of submerged land in Biscayne Bay being in Section 22, Township 54 South, Range 41 East, Miami -Dade County, Florida, lying Southeasterly of Lot 24, Block 43, of "SAMUEL RHODES PLAT OF NEW BISCAYNE", as recorded in Plat Book "B", Page 16, of the Public Records of Miami -Dade County, Florida, being more particularly described as follows: Begin at the Southwesterly corner of said Lot 24, said corner being the mean high water line of Biscayne Bay; thence South 40°23'32" East along the Southeasterly extension of the Southwesterly line of said Lot 24, for 538.57 feet to a point in the Miami -Dade County bulkhead line established for this area as shown on map in Plat Book 74, Page 3 (Sheet 5), of the Public Records of Miami -Dade County, Florida; thence South 21 °41'51" West along said bulkhead line, 67.75 feet to a point on the Southeasterly line extension of the Southwesterly right-of-way line of Aviation Avenue; thence North 40°23'32" West, along said Southeasterly extension line of said Southwesterly right-of-way line, 88.93 feet; thence North 49°36'18" East, 25.98 feet; thence North 40°23'32" West, 460.24 feet; thence South 57°28'54" West, 26.23 feet to a point on the aforementioned Southeasterly extension of the Southwesterly right-of-way line of Aviation Avenue; thence North 40°23'32 West on the aforementioned extension of the aforesaid right-of- way line, 25.24 feet to the face of an existing concrete bulkhead; thence North 57°28'54" East along the face of an existing concrete bulkhead for a distance of 60.57 feet to the Point of Beginning. 5 \74183\20912\ # 682252 v 3 City of Miami Zoning Information Civic Space Zone CS Miami 21 Zoning Code Notice: This is a reference manual only. For official information, please refer to the Miami 21 Code, as amended, the Zoning Ordinance of the City of Miami. Additional regulations may be applicable. All applications require zoning review and referral prior to commencement. Revised April 2013 MIAM! 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - APRIL 2013 3.4 3.4.1 Lot Area, inclusive of any dedications, is used for purposes of Density and Intensity calculation. j. 22nd Avenue 1. Boundary: 22nd Avenue from NW 1st Street to SW 8th Street. 22nd Ave Setback: Zero (0) feet with Arcade k. Central Coconut Grove 1. Boundary: • All properties Adjacent to Grand Avenue between Margaret Street and Mary Street. • All properties Adjacent to Commodore Plaza between Grand Avenue and Main Highway • All properties Adjacent to Fuller Street between Grand Avenue and Main Highway. • All properties Adjacent to Main Highway between Charles Avenue to Grand Avenue. • All properties Adjacent to McFarlane Road between Grand Avenue and South Bayshore Drive. • All properties Adjacent to Virginia Street between Oak Avenue and Grand Avenue. • All properties Adjacent to Florida Avenue between Virginia Street and Mary Street. • All properties Adjacent to Rice Street between Oak Avenue and Florida Avenue. • All properties on the west side of Mary Street between Oak Avenue and Grand Avenue. • All properties on the south side of Oak Avenue between Matilda Street and Tigertail Avenue. Central Coconut Grove Setback (on the streets listed above): Five (5) feet. DENSITY AND INTENSITY CALCULATIONS 3.4.2 Density shall be calculated in terms of units as specified by Article 4, Tables 3 and 4. The referenced tables provide the maximum allowable Densities. Intensity shall be calculated in terms of Floor Lot Ratio. The buildable Density or Intensity on any particular site will be affected by other regulations in this Code and thus the stated maximums of this Miami 21 Code may exceed the actual Capacity that a site can sustain when other regulations of this Code are applied to the site. The inability to reach the maximum Density or Intensity because of the necessity to conform to the other regulations of this Code shall not constitute hardship for purposes of a Variance. 3.4.3 Lodging Units shall be considered as equivalent to one-half (0.50) of a Dwelling Unit. 3.4.4 The allowable Transect Zone Density may be increased as provided by the Future Land Use Element of the Miami Comprehensive Plan (Residential Density Increase Areas), as illustrated in Article 4, Diagram 9. 3.5 MEASUREMENT OF HEIGHT 3.5.1 Unless otherwise specified herein, the Height of Buildings shall be measured in Stories. The height of Fences and walls shall be measured in feet. The Height of Buildings, Fences and walls shall be measured from the Average Sidewalk Elevation or, where no sidewalk exists, the average of the 111.8 MIAMI 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - APRIL 2013 record profile grade elevation of the street Abutting the Principal Frontage of the Building, as detE mined by the Public Works Department. In the event that the base flood elevation, as established by FEMA, is higher than the sidewalk or grade elevations, the Height of the first Story but not the height of Fences and walls shall be measured from the base flood elevation. 3.5.2 A Story is a Habitable level within a Building of a maximum fourteen (14) feet in Height from finished floor to finished floor. Basements are not considered Stories for the purposes of determining Building Height. A ground level retail Story may exceed this limit up to a total height of twenty-five (25) feet. A single floor level exceeding fourteen (14) feet, or twenty-five (25) feet at ground level retail, shall be counted as two (2) Stories; except for T6-36, T6-48, T6-60, T6-80, and D1, where a single floor level exceeding fourteen (14) feet may count as one (1) story if the building height does not exceed the maximum height, including all applicable bonuses, allowed by the transect at fourteen (14) feet per floor. Where the first two stories are retail, their total combined Height shall not exceed thirty-nine (39) feet and the first floor shall be a minimum of fourteen (14) feet in Height. Mezzanines may not exceed thirty-three percent (33%) of the Habitable Space Floor Area, except for D1, where mezza- nines may not exceed fifty percent (50%) of the Habitable Space Floor Area. Mezzanines extending beyond thirty-three percent (33%) of the Floor Area, or fifty percent (50%) of the Floor Area in D1, shall be counted as an additional floor. The Height of a Parking Structure concealed by a Liner may be equal to the Height of the Liner; this may result in a Liner Story concealing more than one level of Parking. 3.5.3 Except as specifically provided herein, the Height limitations of this Code shall not apply to any roof Structures for housing elevators, stairways, tanks, ventilating fans, solar energy collectors, or similar equipment required to operate and maintain the Building (provided that such Structures shall n� cover more than twenty percent (20%) of roof area for T4 and T5); nor to church spires, steeple belfries, monuments, water towers, flagpoles, vents, or similar Structures, which may be allowed to exceed the maximum Height by Waiver; nor to fire or parapet walls, which shall not extend more than five (5) feet above the maximum Height in T4 and T5 and ten (10) feet in T6 and Districts. 3.5.4 No Building or other Structure shall be located in a manner or built to a Height which constitutes a hazard to aviation or creates hazards to persons or property by reason of unusual exposure to avia- tion hazards. In addition to Height limitations established by this Code, limitations established by the Miami -Dade County Height Zoning Ordinance as stated in Article 37 of the Code of Miami -Dade County (Miami International Airport) shall apply to Heights of Buildings and Structures. A letter authorizing clearance from the Miami -Dade Aviation Department or the Federal Aviation Administration (FAA) may be required by the Zoning Administrator prior to the issuance of any Building permit. Construction of an Educational facility within the delineated Miami International Airport Critical Ap- proach Area as defined by the Miami -Dade County Code shall only be granted by Exception. Con- struction of such facility is subject to the approval by the Miami -Dade County Aviation Department or any other agencies authorized by law to approve the construction. 3.5.5 Height limitations for Properties Abutting and in Proximity to National Historic Landmarks a. All properties designated a National Historic Landmark (NHL) which include a Designed Land- scape that is an integral part of the documented significance supporting the NHL designation shE be protected by height limitations throughout the entire Civic Institution zoned property of whit.. the NHL is a part, so as to protect the Designed Landscape from the potentially adverse effects 111.9 MIAM! 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - APRIL 2013 of an undertaking that may diminish the integrity of the NHL property's location, design, setting, materials, workmanship, association or qualities that qualified it for NHL designation. Examples of adverse effects which diminish the integrity of the NHL property include those which: cause physical destruction of or damage to all or part of the NHL property; or change the character of the NHL property's use or physical features within the NHL property's setting that contribute to its historic significance; or introduce visual, atmospheric or audible elements that diminish the integrity of the NHL property's significant historic features; or alter the NHL property in a way that is not consistent with the federal standards for the treatment of historic properties and applicable guidelines, as published by the United States Department of the Interior. b. The height of structures throughout the entire Civic Institution zoned property of which the NHL is a part shall not exceed that established by a six (6) degree vertical plane which is measured beginning from the ground floor elevation of the principal historic building at the facade that over- looks the Designed Landscape, which plane shall extend in a one hundred eighty (180) degree arc facing the Designed Landscape and measured at grade from the midpoint of the building facade. The ground floor elevation shall be measured according to the 1929 N.G.V.D. of Mean Sea Level supplied by the City of Miami. Structures existing on affected properties at the time of the effective date of this Miami 21 Code shall not be considered nonconforming structures. c. Should the height limitations for structures located in such Civic Institution zoned property as of the effective date of this Miami 21 Code be more restrictive than that created by this section, the most restrictive height shall apply. In the event of a rezoning of all or part of the Civic Institution property, either by successional zoning or by Special Area Plan, the height limitations specified in this Section 3.5.5 shall be incorporated in all subsequent rezonings. d. For purposes of this Section 3.5.5., the following definitions shall apply: 1. Designed Landscape is one or more of the following: • a landscape that has significance as a design or work of art; • a landscape consciously designed and laid out by a master gardener, landscape archi- tect, architect, or horticulturalist to a design principle, or an owner or other amateur using a recognized style or tradition in response or reaction to a recognized style or tradition; • a landscape having a historical association with a significant person, trend, event, etc. in landscape gardening or landscape architecture; or • a landscape having a significant relationship to the theory or practice of landscape ar- chitecture. 2. National Historic Landmark is a nationally significant historic place designated by the Secretary of the Interior because it possesses exceptional value or quality in illustrating or interpreting the heritage of the United States, and defined in Title 36, Section 65.3 of the Code of Federal Regulations. 3.5.6 See Chapter 23 of the City Code, titled Historic Preservation, for regulations and additional height requirements. 111.10 MIAMI 21 AS ADOPTED - APRIL 2013 3.13 ARTICLE 3. GENERAL TO ZONES 2. Portions of SD-2, originally adopted by Ord. No. 12651, January 27, 2005; and 3. SD 18, originally adopted by Ord. No. 10863, March 28, 1991; and 4. SD 18.1, originally adopted by Ord. No. 11240, March 27, 1995. The Coconut Grove NCD is hereby adopted and codified in Appendix A.3 to this Code. SUSTAINABILITY 3.13.1 General a. Landscape requirements are as required in Article 9 of this Code and the City of Miami Tree Protection regulations of Chapter 17 of the City Code, except that where this Code is more re- strictive than the Tree Protection regulations, this Code shall apply. b. All new Buildings of more than 50,000 square feet of Habitable Rooms and Habitable Space in the T5, T6, CI and CS zones shall be at a minimum certified as Silver by the United States Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) standards or equivalent standards adopted or approved by the City. 1. At the time of Building Permit application, the owner shall submit: c. Proof of registration with the Green Building Certification Institute, or equivalent agency; d. A signed and sealed affidavit from a LEED Accredited Professional, or applicable designation, stating that the proposed Building is designed to achieve the required certification; and e. A LEED Scorecard, or equivalent document, identifying anticipated credits to be achieved. 2. At the time of Certificate of Occupancy application, the owner shall submit: f. Proof of certification by the Green Building Certification Institute, or equivalent agency; g. A bond posted in a form acceptable to the City, in the amount indicated below; i. Two percent (2%) of the total cost of construction for a 50,000 -100,000 square feet Building; ii. Three percent (3%) of the total cost of construction for a 100,001 - 200,000 square feet Build- ing; iii. Four percent (4%) of the total cost of construction for any Building greater than 200,000 square feet; or h. Proof of partial compliance from the Green Building Certification Institute, or applicable agenc" which demonstrates the credits presently achieved. In addition, a prorated portion of the ft bond amount, as indicated in subsection 2(b) above, shall be posted based on the number uT 111.25 MIAMI 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - APRIL 2013 remaining credits needed to meet minimum certification requirements. The bond amount to be posted shall be calculated as follows: (credits remaining for certification / credits required for certification) x full bond amount = prorated bond amount 3. Forfeiture of Bond A bond under this Section 3.13.1 shall be forfeited to the City in the event that the Building does not meet the for LEED Silver certification or applicable certification. The City will draw down on the bond funds upon failure of the owner to submit proof of LEED Silver certification in a form acceptable to the City within one (1) year of the City's issuance of the Certificate of Occupancy for the Building. If required certification is not achieved but a majority of the credits have been verified, the owner shall forfeit a portion of the bond based on any outstanding credits which shall be calculated as follows: (credits remaining for certification / credits required for certification) x full bond amount = bond amount forfeited If the amount to be forfeited is greater than fifty percent (50%) of the full bond amount, the bond shall be forfeited in its entirety. Funds that become available to the City from the for- feiture of the bond shall be placed in the Miami 21 Public Benefits Trust Fund established by this Code. i. Affordable Housing Developments that qualify under Section 3.15, may elect to comply with the sustainability requirements promulgated by the Florida Housing Finance Corporation, or its suc- cessor agency, in lieu of the requirements set forth in Section 3.13.1.b above. J. The preservation of Natural Features of land such as trees, vegetation, geological, and other characteristics and the preservation of features of archaeological significance are declared to be in the public interest. Said preservation may justify the relaxation of Setbacks or required Off-street Parking by Waiver. The Zoning Administrator shall determine that the trees, vegetation, geological and other natural characteristic, or archaeological features are in the Buildable Area of the Site and not in Setback areas required for the development of the site. 3.13.2 Heat Island Effect The intent of this section is to reduce the heat island effect in the City of Miami and to consequently reduce energy consumption and bills for buildings within the City. a. Applicability In all Transect Zones, except T3, the provisions of this section are applicable to all new construc- tion and to repair or replacement greater than fifty percent (50%) by area of existing roofs or site Hardscape. All repairs or replacement of existing roofing or Hardscape shall be reviewed by the Zoning Department for compliance with this section. The following portions of new or existing roofs are exempted from the requirements of section 3.13.2: 1. The portion of the roof acting as a substructure for and covered by a rooftop deck, vegetation associated with an extensive or intensive green roof as defined by the U.S. Environmental 111.26 MIAMI 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - APRIL 2013 Protection Agency, or any area of a roof utilized by photovoltaic and solar equipment. 2. A rooftop deck covering a maximum of 1/3 of the rooftop total gross area. 3. Existing roofs where less than fifty percent (50%) of existing roof area is repaired or replaced are exempt from the requirements of 3.13.2.c. 4. Existing Hardscapes where Tess than fifty percent (50%) of existing Hardscape area is being repaired or replaced are exempt from the requirements of 3.13.2.d. b. Solar Reflectance 1. For roofing materials, all roof exterior surfaces and building materials used to comply with this section, shall have a minimum Solar Reflectance as specified in sections 3.13.2.c and 3.13.2.d when (i) tested in accordance with ASTM E903 or ASTM E1918, (ii) tested with a portable reflectometer at near ambient conditions, (iii) labeled by the Cool Roof Rating Council, or (iv) labeled as an Energy Star qualified roof product. Any product that has been rated by the Cool Roof Rating Council or by Energy Star shall display a label verifying the rating of the product. 2. For paving materials, all paving materials used to comply with this section shall have a mini- mum solar reflectance as specified in sections 3.13.2.d when (i) tested in accordance with ASTM E903 or ASTM E1918, (ii) tested with a portable reflectometer at near ambient condi- tions, or (iii) default values of Solar Reflectance for listed materials may be used as follow Material Solar Reflectance Typical new gray concrete 0.35 Typical weathered gray concrete 0.20 Typical new white concrete 0.40 Typical weathered white concrete 0.40 New asphalt 0.05 Weathered asphalt 0.10 c. Roof 1. Requirements for Low Sloped Roofs Roofing materials used in roofs with slopes of a rise of zero (0) units in a horizontal length (0:12 pitch) up to and including roofs with slopes of a rise of two (2) units in a horizontal length of 12 units (2:12 units) ("low -sloped") shall meet the following requirements: a. Low -sloped roofs constructed as part of a new building shall utilize roofing products that meet or exceed an initial reflectance value of 0.72 or a three-year installed reflectance value of 0.5 as determined by the Cool Roof Rating Council or by Energy Star. b. Exception. Where more than 50% of the total gross area of the low -sloped roof is covered with vegetation associated with an extensive or intensive green roof as defined by the US EPA, tt remainder of the roof shall have a reflectance value of a minimum of 0.30 and the rooftop deg.. 111.27 MIAMI 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - APRIL 2013 exception in section 3.13.2.a.1 applies. c. Exception. Ballasted roofs with a minimum of 15 Ibs/sq. ft. or ballast over the entire roof surface may have a reflectance value of a minimum of 0.30. For the purposes of this section, "ballast" shall mean river rock aggregate or larger, pavers or other means of weighing down a roofing membrane over a substrate to resist wind uplift. 2. Requirements for Steep Sloped Roofs Roofing materials used in roofs with slopes of a rise greater than two (2) units in a horizontal length (2:12 pitch) ("steep -sloped") shall meet the following requirements: (a) Steep sloped roofs shall have an initial Solar Reflectance of 0.15 or greater. 3. Requirements for Roofs with Multiple Slopes Roofs with multiple slopes shall be subject to those requirements applicable to the slope which covers the largest area of the building footprint. d. Non -roof Requirements 1. Provide any combination of the following strategies for fifty percent (50%) of the site Hard- scape: (a) Shade from solar panels or roofing materials with a Solar Reflectance of at least 0.30. (b) Shade from trees within five (5) years of occupancy. (c) Paving materials with a Solar Reflectance of at least 0.30. (d) Pervious Pavement System. OR 2. Place a minimum of fifty -percent (50%) of parking spaces under cover (defined as under- ground, under deck, under roof, or under building). Any roof used to shade or cover parking must have a Solar Reflectance of at least 0.30. 3.14 PUBLIC BENEFITS PROGRAM The intent of the Public Benefits Program established in this section is to allow bonus Building Height and FLR in T6 Zones and bonus Building Height in D1 Zones in exchange for the developer's con- tribution to specified programs that provide benefits to the public. 3.14.1 The bonus Height and FLR shall be permitted if the proposed Development contributes toward the specified public benefits, above that which is otherwise required by this Code, in the amount and in the manner as set forth herein. The bonus shall not be available to properties in a T6 Zone if the property abuts a T3 Zone or in a T6-8 Zone if the property abuts a CS Zone. 111.28 MIAMI 21 AS ADOPTED - APRIL 2013 THE NATURAL ZONE consists of lands approximat- ing a wildemess condition, permanently set aside for conservation in an essentially natural state. 2 THE RURAL ZONE consistsoflandsinopenorcultivated state or sparsely settled. These include woodland, grassland and agricultural land. THE SUB -URBAN ZONE consists of tow -Density areas, primarily comprised of Single -Family and Two Family residential units with relatively deep Setbacks, Streetscapes with swales, and with or without Side- walks. Blocks may be large and the roads may be of irregular geometry to accommodate natural and historic conditions. THE GENERAL URBAN ZONE consists of a Mixed -Use but primarily residential urban fabric with a range of Budding types including rowhouses, small apartment Buildings, and bungalow courts. Setbacks are short with an urban Streetscape of wide Sidewalks and trees in planters. Thoroughfares typically define medium- sized blocks. THE URBAN CENTER ZONE consists of higher Density Moved -Use Building types that accommodate retail and office Uses, rowhouses and apartments. A network of small blocks has Thoroughfares with wide Sidewalks, steady street tree planting and Buildings set dose to the Frontages with frequent doors and windows. THE URBAN CORE ZONE consists of the highest Density and greatest variety of Uses, including Civic Buildings of regional importance. A network of small blocks has Thoroughfares with wide Sidewalks, with steady tree planting and Buildings set close to the Frontage with frequent doors and windows. THE CIVIC ZONE consists of pubic use space and fealties that may contrast in use to their surroundings while reflecting adjacent Setbacks and landscape. THE DISTRICT ZONE consists of the least regulated Building and accommodates commercial and industrial Uses of a scale and with a Streetscape that facilitate vehicular access. ARTICLE 4. TABLE 1 TRANSECT ZONE DESCRIPTIONS t .rm 117' .4:f,.`ig i 'f z y i e R I i + _ rd : ems j. J W+ tj � = _ . , i IL 4r , fi r' MN. -Iwr,• 11 ilff • fS 'Nil !r 1 • Mr II • PO, — 411 SiM. I. Jodi. g r-, , - - A, i ilk a- ■sal 6 , ! if -4 rs r rR LIti1LI; am BIM 11111111.L Y.rrr Yf♦f• _tom u t6 r♦ • 1111 II r , MI Ili MI ! r �r■w.nrw� S ' WM F- 6 ' F a1 • J ii Eft. ME -s / ' —: -1r -411k,-,— „iih ii '' , rre, r.r. 1 Mr $ 1 jj • •Ir j41 I i i �. N.5 MIAMI 21 AS ADOPTED - APRIL 2013 DENSITY (W(f$ PER ACRE) RESIDENTIAL 9NQE FPMLY RES CEICE /N ZILLPRY LNT 1%0 FPMLY FES6]ECE Mill FPMLY HOUSING DORTMTTORY FCAE OFFICE LIVE -WOW VCRK-LAZE LODGING BED & BREAKFAST INN HO7a OFFICE CONNERCULL AUTO -MATED CCIWARCIAL ESTAB. ENTERTAIN ENT ESTPBJS 4vEdT ENTT32TPIMENT ESTPB, - ACLU FOOD SERVICE EST/ELEMENT ALCOHOL ESERA E SERVICE ESTAB GENERAL COMWERCIN- MARINE RELATED COMMERCIAL ESTPB R RETAIL ASSEMBLY . MO*/ ESTABJ9-be4T CIVIC CGIA&NN FACUTY RECFEATIO L FACILITY REJGIOUS FACILITY REGIONAL ACTIVITY COWLI C CIVL SUPPORT CCU IILNTYSUTCRTFACLITY IIFRASIRLICTUREAID UoUTIES M410R FACILITY VARNA PUBJC PARKING RESOLE MSSICN TRANSIT FACILITES EDUCATIONAL CHILDCARE COLLEGE LNVEP91Y ELENEJTARf SCHOOL L5 RIK3 CENTER MfttE/ NG 193-CM PRESCHOOL RESEPRCHFPCILTfY SPECIAL TRAINING/ VOCATICFNL INDUSTRIAL AUTO-REAIED IN:USIRL6L ESTBL M NFPCTIRNG/ND PRCCESSINIG — RELATED INZUSIRIAL PSTB- :TS AND SERVICES _E/ DISTRIBUTION FACILITY T3 SUBURBAN S I IS R R R R R R R R R R R E E E E E E W W W E E E E E E E E E T4 URBAN GENERAL L 0 66 36 R R R R R R R R R R R R R R E E R R R R VV R R R R R R E R R VV VV E R R E R R VV VV W VV VV E VV W W VV VV VV E W VV E E E E E E E E E E R R E V Hosed By Moat AQTt165 a Roma - (Co011Ealed RE1ieN arro lee) E Aimed By E cepScn Rift Hearing-9a Ley nif9. Dortg&Appee6 Bowl Boas YANI no OsIglaSoi spy Use prdebSee! ARTICLE 4. TABLE 3 BUILDING FUNCTION: USES T5 URBAN CENTER 66 66 R R R R R R R R R R R R R R R R R R R E R R R R R R VV VV R R R E E R R VV VV W VV R R R R W VV E R R E R R VV VV W W VV E w w E VV VV E VV W E VV VV VV VV E W VV R R E VV W E R R R R W VV T6 URBAN CORE 1w Iir R R R R R R R R R R R R R R R R R R R E R R E R R R R VV VV R R VV R R E E VV R R VV W VV W E R R R R VV W E R R E R R E VV W VV VV W E VV w E VV VV E VV W W VV VV VV VV E VV W R R E VV VV E R R R R VV W CI CI -HD sr 'Mr R R E R R R R R R R D DISTRICTS Di J2 x NIA NIA _-_ -- ©-_ E R R R W W E R E E E E R w E R E E E R E W E VV E R E E E E E W E R R E E R E R E R E E R E R E R E R E R E R E R E R R R R R R E R E VV E R R VV R R R R R VV R R W R R W R R R R R R VV R R VV VV R W E E E R R R R R VV E W W R R VV E E E E E E R MIAMI 21 AS ADOPTED - APRIL 2013 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED) c - civic CS - CIVIC SPACE CI - CIVIC INSTITUTION CI -ND - CIVIC INSTITUTION HEALTH DISTRICT DEliBfIY t�Mi NIA OEMITY OF ABUTTING ZONE 1901Nill PER ACRE RESIDENTIAL AIIIIMISITti SIIIIMIIMIS1111.11911.11111bMS11111$ offbeat,* leAldt lgaele - Pahang (equtenur1 IT be felted alr0l kg bilk Shared Pdlgrg Sandal, Adele 4. Teethe 5. - Mnrmmd1 flettbigallaieflaresea2lve IA. Uses are parried* as listed in Tale 3, tinted by carplisnetnitt • Da>aty andel irdereity, pokahtgend koadro ngu latims b meth that d the rrod restrictive Abudino zone. • MNmm d 1 pelting apaoefar every ECO sewn afReadertalUse. • Loadrg - Seektide 4, Title 5 LODGING. • Mr*nmd 1 patdrg space for every 803 squarefeet d Residential Uee • Loadrg- SeeArtide4, Title 5 OFFICE ape Uses are perms itle s listed in Table 3. • Mrid 3 patdrg spaces Tar miry 1,000 aquae num feet dadm U. • ti ninmdaneEikeapacefarevery23whia/aspaces re4rtred (before any nsducliae). • Parking ratio may be reared aomcing b the shared pricing aterdeni • Parfvo may be provided of fears in CI, 13,13 aTBuithin • Mr ion n d 1 poncho specs for eery 803 square fed dQ� Use. • Loadrg- See Met 4, Title 5 500 feet tittasgh a pricing nenagerrent parttme. COMMERCIAL 031lsflllilllie0iepell =BdISIT 3. • Painted 3paligspacee:faereyt,amram. atrial space • pg tep�M EMI ragged (Were any redidiors). - Par101g ratio any be neared atxaerg to the tN■edl paling sandal • Lashio- SaeArti.'le 4 Table5 •Loseirgneeds, kdnglfaheareirg:s11Rbemorn nod3ed an sae ' • Mrimmd 1 perlaro spice far every 803 same fed ctCamedelLlea • Loadrg - Seektide 4, Tale 5 Camercial Uees are perrisside as listed in Table 3, rotted bymrrPiasoevath • Biking area allowed for Oannercial Use meads lot shall beleestttarh25°�9ildngAoaareabfaf. • Mrimm of 3 patarg spaces for every 1,000 d d can- racial sPece • Minimal 1 par drg spite for every 7 seals is a Major Smife Faddy •Mrimmdate9lerspaoefarwey�vetialaspeo°s required tiseticre ary was). • Feting ratio nay be nixed a000ndng to the shared perking startled • Parking ratio nelr be reared for Major Spats Faddy vier 1 mleda Natraal, Macrame( Staticn, arms toed fadity by up b 10% • Loadrtg- SeeArtide4, Title 5 • Loafing reeds, inddrg rreneserirg, shall be exam modeled m site. CIVIC Chic Uses are pertrissitle 860ded I1Tabke 3. CiAc Uses are pe1Tisebe as listed in Table 3. -MinasdtpM� dtgipecefbresey5sdtin amently•Niumof1Paldnaspaoefoeey5sealdas sserty uses uses • Mirundlparlugtpaoebtevey1tmsktehihbm • Mrirnmaf1padangspeceforevery1,030sfdektititim or Ieefer i0n space, am palig spaces ICE CON LlseS or reaeetion space, and perking spares for other Uees as regained. as reedited • Mnmm d Veiling spaeefa every staff rrerrbe Ix • Mrirrund 1 arlimg space fa every stdf neater far recrearonsi Sees. recreations! s! asps -'Anntmdl padagspaeetrevey5mact 9Rig • Mrirnmdl Wag Elating area Sr maims! uses. area fa reaeetimal uses •MUinundone0t9peoebteveljaleatecl8 spares•MrirrumdmeSterspecebrevey20vehialaspezes regietl (setae sly feddias} required timbre ay reducbae). • Palau ea" bepafdelesBlletnCl CI, 75or76ea11il • ParlarSmay beprovicedesilena,13,75aT6Altai 503 fed tea* a psalm nenonereOEM= 503 feet tlxagh a parting management pentane. • Mrirrun d 1 Warn specs far sway 800 sane fed dCivic Use • Loafing- See *tide 4, Table CIVIL SUPPORT Ovi Support Lis ale pearled)* s )Stec in Table 3, tinted try arlp3tx graft Civil Support Uses are permeaible as fsted in Table 3, )mild by aarpianas vita •F CiilSrppat,anirirnmdlaarkdrgspesoebevey 1,000 91 • Far Assetbly use a mrimm d 1 Parting space Tar every 5 seals. • FarilebeLbekanirimmdlponQospeaefawey 5 sips • Mrinun of 1 perlang space fa sway 803 sgae feet of Civil Support Use. •Loadrg-SeePrtide4,Table 5 -FarCivi &ppmanWWUT1Oi parking cicala even 1. TO S • Far P ire 1 , arrititiMaillpillIgraplailtiatiatiV 5 gPs • Alt Et are - Mrimm d 1 space per staff renter and 1 space for arser. EDUCATIONAL E .c Bernal Lees are peened* as Weld m Table 3, Itrilel by ootpia1oe cells • Mrimre of 2 inking £saes ex every 1,000 d tx edbalaaMtptce «titilriqtioullateSlattillabefinteemill itee>tp i Mititirledfefeeliny • asidare Facilites - Mrinun Of 1 space per 0. manta, 1 space AY corner ail 1 thief SpIte Sri evey 1000e1Staedla Edralicnal Uses are penriseible as listed in Tale 3, united by carder=mitre • Mrimm d 2 paling speeoes far way 1,000 sf d edsatiahal spears •S Saba -iririmmdl parking sperm forminfealya • Mrtinm d 1 pelting space far every 833 aquae fad d Edratimel Use • Loadrg-SeeMde4, Tables staff wafter, 1 visits linking space per 100 stisderas, 1 parking space per 5 skelents in graders 11 ad 12 a CdfegarLbve ilT- • aild are Fadlities - Mrttmm of 1 space per staff member, 1 space fa owner and 1 ciapdf space fa every 10 dents cared for. • Mrimnsione spescefarevery23veNa/aspeoes required (setae ay r are). IV.18 MIAMI 21 AS ADOPTED - APRIL 2013 ARTICLE 4. TABLE 5 BUILDING FUNCTION: PARKING AND LOADING SHARED MOW MADAM NORM FACTOR The shaed Paling Stadads Table provides the method for calalating shared paling for xildngs with more that are Use type. It refes to the parking redirerreris that appear in Table 4. The parting regiired for ay two Fuxticns cn a Lot is calculated by cividng the rurber of spaces rec}ired by the lesser of the two uses by the apprapridte factor from this Telle and ailing the result to the Beater Lse perking regcirenert. Fa instaxe fa a building with a Residential Use requiring 100 spaces axi a Cormlerdal Use raqur- ing 20spaoes, the 20 spaces chided by the shaing factor of 1.2 would reduce the total requirenat to 100 pus 17 spaces For uses not indcated in this chat on a nosed use lot a sharing factor of 1.1 shall be allowed. Addtianal sharing is allowed by Wrrant. OFNITREErPANta10BTANDMDI ANGLE OF PARING ACCESS AISLE WIDTH ONE WAY TRAFFIC SNGLE LOADED ONE WAY TRAFFIC DOUBLE LOADED 1WO WAY TRAFFIC DOUBLE LOADED 90 23ft 23ft 23ft 80 128 ft 11.8ft 19.3 ft 45 10.8 ft 9.5 ft 18.5 ft Parallel 10ft 10ft 20 ft Staxisrdstall: a5ftx 18ft nirirrlrn LOADING BERTH STANDARDS LODGING OFFICE COMMERCIAL" INDUSTRIAL'" TS, TO, Bluth -HD & CI From 25,000 sf to 500,000 sf Berth Size 420 sf 20) sf • Criveweiysshal haw a rri imunot10feet dpavedwdih of a>e•weydtead 20feet for a two-way dive for parting area prowcing 10 cr nue stabs. • Pedestrian entrances shall beat least 3 feet tan stall, driveney or access aisle. • Allowable slopes, paving, and derive as per Flaida Building Code. • Ctf Parking fadities shall have a nirimm vertical clearance of 7 feet. lAte a sill a faslity is to be used by thuds cr baring Uses, the nirimm dearaioe shall be 12 fleet Residettial and 15 feet Cameral anti Industrial. • Ingress vdialer control devices shall be located so as to provide a nirinu divewey of 20 fleet in length between the Base ailing Line and disperser. • For req iram is of parking Ids, refer to Arnie 9 and the City of Iviarri Off-street Parking aides axi Staxiardls. Loading Berths 1 per Jet 100 obits 1 per each ad:ha lal 100 Lnts or fraction of 100. Graeber than 500,000 sf Berth Size Loading Berths 580 sf 1 per Jet 100 urns 203 sf 1 per each addtimat 100 wits or fraction cf 100. From 25,000 of to 500,000 el Berth Sae 420 sf 2c0 sf Loading Berths 1 per 303 ronrrs 1 per 100roars Greater then 500,000 sf Berth Size Lading Berths 580 sf 1 pa 303 morns 203 sf 1 per 100 mars From 25,000 sf to 500,000 el Berth Size Loading Berths 423d 1st 420 sf 2nd 420 sf 3rd 423 sf 4th Area 29(g- 53Kg 50Ksf-103(sf 100(sf-250(g 21Ksf-500(sf Greater than 500,000 sf Berth Size 860 sf Lading Berths Area 1 / 500(sf DISTRICT From 25,000 sf to 500,000 el Berth Sae Lading Berths 420sf 1par 300morns 20Dsf 1 pa1o0rccrs Greater than 500,000 sf Berth Sae Loading Berths 580sf 1 per 303morns 2D0 sf 1 pa 100 roars From 25,000 el to 500,000 of Berth Size Loading Berths 423sf 1st 423sf 2rd 420sf 3rd 423sf 4th Greater than 500,000 sf Berth Sae Losing Berths Area eeosf 1 / 500Ksf Berth Types Residential•: 200sf=10ftx20ftx 12ft Cannerdal": 420 sf = 12 ft x 35ft x 15 ft Indstriar*: 660sf= 12ftx55ftx 15ft Residential leading baths shall be set back a distance equal to their length " 1 Cornrerdal berth nhahr be substituted by 2 Residential baths "' 1 Industrial berth may be substituted by 2 Cormterdal berths. A required Irduatrial or Cannerdal loafing berth nay be substituted by a Cormeral cr Residential loafing berth, by Waiver, if the sae, dhaacter, and operation of the Use is food t0 nct require the dirrtasiors spewed and the required loading berth dlnensicn coid not dherwise be provided aocrndng to the regulators of this Cade. IV.22 MIAMI 21 ARTICLE 4. TABLE 6 FRONTAGES AS ADOPTED - APRIL 2013 a. Common Lawn: a Frontage wherein the Fade is set back sUr stanhially from the Frontage Line. The frat yard created remains unfenced arcs isviarallyomtinucuswith a1aoert yards, sapporling a carmen landscape. The Setback can bedensely landscaped to buffer from higher speed Thoroughfares. b. Porch & Fence: a Frontage wherein the Facade is set balk fran the Frontage Line with an attached Porch perrritted to encroach. A fence at the Frontage Line maintains the de s ra tiai cite yard while not docking view irto the frort yard. c. Terrace or Light Court: a Frontage wherein the Facade is set beck from the Frontage Line by an elevated tenace a a surte?n light cart This type buffers residential use fran urban sidewalks and rernohes the private yard fran public errocrcrrfrrr:11i. The raised tenaoe is suitable for outdoor cafes. d. Forecourt: a Front gewherein a potion cite Facade is dose to the Frontage Line with a portion set back The faecc rt with a large tree offers visual and errirc mental variety to the Urbai She tscepe. The Forecourt Tray ci.W1111uk e a vehicular drcp Off. e. Stoop: a Frontage wherein the Facade is aligned dose to the Frontage Line with the eat Story elevated from the sidewalk s.kpently to secure privacy for the windows. The entrance is usually an e>teria stair and lancing This type is recommended for grouxhtor Residental Use. f. Shopfront: aFratagewhereinthe Fa;adeisaligned doeetothe Frontage Line with the !liking entrance at sidewalk gale This type is cornren irnal for retail Use. It has slbsta iial glazing at the sidewalk level and an Awning that may overhang the sidewalk g. Gallery: a Frc tape wherein the Facade is aligned dose to the Frontage Line with an attached cantilevered a a lightweight cdornade overlapping the sidewalk This type is ccn animal for retail Use. The Gallery shall be no less thal 15 feet wide and rrey overlap the wihdewidth tithe sidewalk tovvithin 2 feet cite alb. Pemitted by Special Area Ran. h. Arcade: a Frontage wherein the Fariade irdudes a cdanadethet overlaps the sidewalk, while the Facade at sidetnrak lead remains at the Frontage Line. This type is oahveriiaral for retail Use The arcade shall be no less than 15 feet wide and rrey overlap the while width of the sidewalk to within 2 feet ci the alb. Perrnitted by Special Area Plan. SECTION LOT R.O.W. PRIVATE ► 4 PUBLIC Fr• a Frontage IIE PLAN R.O.W. 4 PUBLIC Fron IV.23 MIAMI 21 AS ADOPTED - APRiL 2013 ARTICLE 4. TABLE 7 CIVIC SPACE TYPES This table describes the standards fa areas zoned as Mt Space (CS) and fa Rdic Paris and Open Space provided by the Rdic Beneeys R warn t Civic Space Types should beat the grad level, landscaped axVor pored, open to the sky and shed! be open to the plbiic Civic Space Types maybe pltlidy a privately owned. Open Space reairemen s fa eat zone are desaibed in Artide 5. a. Park: A ratiral preserve available for unstructured aid strut .red recreation progars. A Park may be irrde{>e ndert of surrouxing Bulking Frontages. Its landscape may be natualistic aid consist of pats and trails, rrneadows, woodand, sports delds and open shelters. Paris may be Conservation Areas, preserving nahral condticrs and their size may vary. b. Green: M Open Space, available fa ustnrdued recreation pagans. A Glean may be spatially defined by landscaping ralherthan Bulking Frontages. Its landscape shall consist of lann and tees, natualistidty asposed. The mirimun size shall be one ale and the nnadnvn shall be 4 as s. c. Square: MOpen Space avalablefaunstructured reaeafienprogarsaid civicpuposes. Asquare is spatially defined by Bulking Frontages with steels on at least ane Frontage. Its landscape shad! consist of pauerrent, lams ax1 trees, faunally deposed. Squares shall be located at the into sectien of irrportartlitra ghfar s. The minimum sme shall be 1/3 aye and the n-aamum shall be 2 acres. d. Plaza: M Open Space availade fa dvic puposes and prug2rmied activities. A Plaza shall be spatially dewed by Blildng Adayraa and rrsy indude street Frata{ges. Its landscape shall casist prirrlariyofpauaxrentaxibees Razes shall [mimed ante intersedticnofirripulatThora,ifares. The mirimm size shall be 1/8 acre and the rrxasdmm shall be 2 acres. e. Courtyard 1 Garden: M Open Space spatially defined by Blildngs and street wells, and visually accessible on one side to the street f. Playground: M Open Space designed far the A Playground and equipped recreation of children. shad befenoedand nnayindudeanopa shelter. Playg oundsshallbeinterspersedwithinresidential areas and may be paced within a Block Playgrounds may be included within Pals and (beers. There shall be no rririmm or madnvn size. g. Pedestrian Passage: M Open Space connecting other public spaces, that is restricted to pedes- trian use ad limited vehialar access, of a mirinun width of 20 feet &ildrg walls affronting a Pedestrian Passage shall have irequerit doors and windows. In T636, T6-48, T6-60 and T680, a Pedestrian Passage may be roofed h. Community Garden: A grapng of garden plds araiade fa srrnal-scale aitiva ion, gerr&alty to residents of apatrrrennts and diner dweltirg types vithat private ganders. Cornruity gardens ...a , - :...z:....4.,..._...........1„ oak • 1.4 r ". _ a II • • IV.24 MIAMI 21 AS ADOPTED - APRIL 2013 a. THOROUGHFARE & FRONTAGES ARTICLE 4. TABLE 8 DEFINITIONS ILLUSTRATED Private Lot tltiafaLams Rtic 1 Biking Thoroughfare (R.O.W.) 1 Private Lot b. TURNING RADIUS d. LOT LAYERS Layer 1st Layer t 3' 1J '}1 ►� 2�ya rys f. SETBACK DESIGNATIONS c. BUILDING DISPOSITION 1- Rindpal Slaking 2- Badtlalring 3- Ql6liking e. FRONTAGE & LOT LINES 1-Frontage Line 2-Lot line 3-Facades 4-9evaticns 5-Streetsaeen g. VISIBILITY TRIANGLE Fig 1. Fig Fig3 Atlinn4 faeiier- Al intersections of At Thoroughfare in- sectiorsvWh Biking aHvaneys with Thor- tersectims with no Setbacks oughfare with no B.ikirg Setbacks Rikirg Setbacks IV.25 MIAMI 21 AS ADOPTED - APRIL 2013 5.7 ARTICLE 5. SPECIFIC TO ZO ES CIVIC SPACE ZONES (CS)AND CIVIC INSTITUTION ZONES (CI) 5.7.1 Civic Space Zones (CS) 5.7.1.1 Development in a Civic Space Zone should have a minimum of fifty percent (50%) of its perimeter enfronting a Thoroughfare. Civic Space sites shall be entered directly from a Thoroughfare. 5.7.1.2 Development in Civic Space Zones shall be consistent with the standards in Article 4, Tables 3, 4, and 7. 5.7.1.3 One or more Buildings may be built in each Civic Space. Building floor area shall not exceed twenty- five percent (25%) of the lot area of the Civic Space, and shall support the principal use of the Civic Space. 5.7.1.4 In Civic Spaces, Buildings, Fences and walls shall conform to regulations of the most restrictive Abutting Transect Zone, except as shown by City of Miami's Parks and Public Spaces Master Plan. Other adjustments to the regulations shall be approved by process of Exception. 5.7.1.5 All Community facility and Recreational Facility Uses shall be government owned or operated only. 5.7.2 Civic Institution Zones (CI) 5.7.2.1 Development in a Civic Institution Zone shall have a minimum of one (1) Frontage enfronting a Thoroughfare and should have its primary entrance from a Thoroughfare. 5.7.2.2 Development in Civic Institution Zones shall be consistent with the standards in Article 4, Tables 3 and 4. 5.7.2.3 A Civic Institution Lot may have one (1) or more Buildings. 5.7.2.4 Civic Institution Development shall be permitted by process of Exception and shall conform to the following regulations: a. Any property located within a CI Zone may be developed according to the regulations of the most restrictive Abutting Transect Zone with all Frontage Setbacks considered a minimum. b. Development in a CI Zone shall follow the regulations of the Abutting Transect Zone, except that Height restrictions shall be as follows: 1. A CI Zone entirely Abutting T3 shall be developed to no more than the maximum Height al- lowed by T4. 2. A CI Zone predominantlyAbutting T3 or T4, shall be developed to no more than the maximum Height allowed by T5. 3. A CI Zone predominantly Abutting T5, T6-8, D1, D2 or D3, shall be developed to no more than the maximum Height of T6-8. 4. A CI Zone entirely Abutting T6-8 or higher, may conform to the maximum Height of any higher Abutting Transect Zone. V.43 MIAMI 21 ARTICLE5. SPECIRCTOZONES. AS ADOPTED - APRIL 2013 c. A CI Zone may seek higher than Abutting successional Transect Zoning through the process of Special Area Plan. d. Adjustments to Building Disposition Requirements, with the exception of Setbacks, shall be al- lowed by process of Waiver. 5.7.2.5 The expansion of any existing Civic Institution Use by less than twenty percent (20%) may be per- mitted By Right. 5.7.2.6 In the event that a Civic Institution Zone ceases to be used for Civic Institution Uses, it shall be de- veloped either in accordance with the regulations of the most restrictive Abutting Transect Zone or by process of rezoning, subject to the limitations of the Comprehensive Plan. 5.8 CIVIC INSTITUTION ZONES — HEALTH DISTRICT (CI -HD) a. All Development in the CI -HD zone for a structure that exceeds ten thousand dollars ($10,000.00) in cost and affects the Scale of the street or block front, or that affects the location, relocation or enlargement of vehicular ways or parking areas outside public Rights -of -Way shall be approved by Warrant except that any Development exceeding the following thresholds shall be approved by Exception. 1. Development involving in excess of five hundred thousand (500,000) square feet of Floor Area excluding parking and loading. 2. For hospital buildings, any development in excess of eight hundred thousand (800,000) square feet of Floor Area excluding parking and loading. 3. Any single use or combination of uses requiring or proposing to provide in excess of a net increase of one thousand (1,000) off-street parking spaces. 5.8.1 Building Disposition (CI -HD) a. Newly platted Lots shall be dimensioned according to Illustration 5.8. b. Lot coverage by any Building shall not exceed that shown in Illustration 5.8. c. Buildings shall be disposed in relation to the boundaries of their Lots according to Illustration 5.8. A CI -HD lot may have more than one building. d. Principal pedestrian entrances shall generally be along Principal Frontages and vehicular en- trances on streets of less intensity. e. It is recommended that Facades be built parallel to the Principal Frontage Line. f. It is recommended at the first Story, Facades along a Frontage Line have frequent doors and windows. g. Setbacks for Buildings shall be as shown in Illustration 5.8. Frontage Setbacks may be adjuste.. V.44 MIAMI 21 ARTICLE 6. TABLE 13 SUPPLEMENTAL REGULATIONS (CONTINUED) AS ADOPTED - APRIL 2013 C-CMC CI - CiVIC INSTITUTION CI -HD - CIVIC INSTITUTION HEALTH DISTRICT DINtSiTY(IIPA) j DENSITY OF ABUT71NG ZONE BOATS HOUSEBOAT HOUSE BARGE Occupancy d Pf pyre cuts wind hametala, Gbaperto/ d pieta peaeue wafts and tnuaatoets a hue bags Steil not bearmed except fa those a hose barges seal riot be slimed woad fa those specrdaly ga faltered d rageded by (Warne specidarlly garlatered and migrated by Ordrerne #10, atlopedatober 24.1931. #10932, alcpted October 24,1991. 150 UNiT! PER ACRE Oeare ry d mete pees re oats and housed:Os a house barges shall not be atoned except fa those spedyyahy g rats hared ad re stied by Ordrer= #10932, akpia Ocid:er 24, 1991. DOCKS PIERS OPEN AIR RETAIL ADULT DAYCARE Stellar d Mee aid Piers WM gyre Bey ate tinted to 35 feel However, by Fxepim a COD hart neodrrtm emersion of dodo ad Peers trio BLer,3yrie Bay rtay beabvved. E tecem d dads ad Piers trio drier wilemeys is Intel to 10feet a 10KdEeeriftflidlie velermey, Wictlever is less However, by Eieeptim triter etellikn eybeepprowe4stttjectbanima km* Ware* Extension of dads and Res into 6e ayre 13ay are lirrihed b 35 feet I-bnaer, by Eiceer tin a 600 feet neirrun ectensm of dads ad Ors into dyne Bay may be abned. Extension d dais and Res into drier vrelaveys is lintel to 10 few a 10%of the vwdh cf the meteviey, vehichever is Iess Pincer, by Ewoeptim futer extension rreybeappro.eeci anent toapproval fiend applicable varies Beta -aim d dads ad Res into Escayne Bay ae limited to 35 feat Home err, by Eiroeptim a 600 feet niardmm emersion of dais and pas ion Efe:ayne Bay may beamed Extesim of dais and Ras into otia v alley:eye is tinted b 10 feet a 10%d the Width d the waterway, ofidiever is less Honever, by Exception further elusion nay be appoked, sitjeed to apparel from all applicable ages. SldjectbthefabAkgaldlataregire arts Axes b gle nibt be Irma !Mei1ho0UgMae. Cistaice separation of any open a retai sties be a silt un d 75 feet deemed lumen/ propeerty otter TS T4-R T5R, a lei-RZone Operam Intro to wael ends wind lewd heilsys fa a nmbrun of 3 cansectlive days barmen tte tars d T03PMarrt7:013PM Provisfm d paving striping fa stab and preMfg Patella' dmale reamanIz le Sebect to tte foloktng aditicnei resirerrents PCIMSE4 to site mat be firma nsja 1houijfae. Cisterns separation d ay Open Ai Retail shall be a nirirrun of 75 feet rreasued frommkt pcpety within T3, T4-R T5-I3, a T6R Zoe Oration limited to vweet axis ad legal holdhys fa a n®rimm of 3 mrseative drys between the flaws d 7:OOAMand 7:03 PM Provision of paving striping kr stalls and paling Provisiorn cf a -site resboankidtities SAW to the requirements dSedum6.3.4 For 6 to 9 edits: Mrirrimcf 350 souse feet d irdoa activity area Fa 10arroeedits Mrimmd 35 aware feet d idxr aciviy wee per actin For 6 b 9 edits: Mrimm of 350 sgiare feet d irdcio aiMty ate. For 10 or more otitis Mrimm of 35 owe tart d iridoa a tvity wee per ads COMMUNITY SUPPORT FACH.ITY PERSONAL VIREEtEE$ SERVICE FACILITY HELICOPTER LANDING SITE Assisted Living Fatties: Alined by 5oeptim a i madded deed to the timing addtima new i mails: Mrimm distance recuie rat of 2,5D0 feet betvveai poposed facility ad anther along fatty. Minion draance rat kaTst of 1000 feet barb eel ptposed fa:My and any T3 a T4-R Zane. Sited tots regirensisd Sedai6.4. Skied bite indite arise Sediim6.4. FaccptrtaidngsiiesasregrraledtyIota =Vale taw rreybeparritiedtHWotan sego -note fdbmfrg axitimA regFwenaiat: Mryariybeisedtatielandrgadtaaeceothdiooplers clopping albatpig►pP andcarp, aril nay not include being, rear, a lag term wimp a singe d hefcaplas liiess used bins age cy operations (poke de. a d hosplan Iaxirgs ad lawns stet be restricted b Maly EtaghFridayfamD DAMb5PMaFpaters AMR) T3< T4, TSit rot T6RZares G rc ndleversttlsstill bebcaladaneyiomBtfldrgs Pees, a sgiva1 feral beam to acid possble air tubiterre Fbolcp site, stet be givers p sty over gland level *sin wan Hell operlaxirgsilesasregddedbyfederal aidstale eyrie/ be perrrittad by Warrant sitjert tone kiloAi rg aiitiael regierrais Meyaiybeu sedfateladngardtaedfdheicgters dcWprg elf ad piddrg cp passengers aid cargo, ad nay rut irdude furring, reel, or lag tam paring or 'dbe' LYiess used for errergatry %salais (pd10e, de, aril hospital) tarring; and teams stet be melded b Marxtey tYoigi Fridayfno n900AMb5 PMm paces Abutting T3, T4, T5•R, and T6R Zaies and level sires shall be boated array fromBeikirgs, trees, or sgiilat terrain features to acid possible ar turt*te car. Rodbp sites shell be Oven piaity wain grand laved sites in congested areas Helicopter la erg sitesas regrew] byfedaal ad sine law nay be permitted byVl9nai sidjecttothefdberg a :boned restrerais: Nbyatybeiaedfathelaidrigadteteoffofhempen dtgproff adpicking upP - sadcag4ad may rut irdide fueling, repair, or lag tern parking a' stormed herioopter tittles used fa a ergerxy operations Un ice de, ad hoopla) landrgs ad tele ifs stall be restrl]ed b; Mrxtbytrougi Friday from90DAMto5 PMm paces Abufirg T3, T4, T5•R, and T6R Zass and lad sites shall be located amey iron Buildings, trees, or agiiifat terrain teaGres to accid possible arturbulence Rooftcp sites stall be given priority oder gourd laved' sites in congested seas CHILDCARE Maalinc535squaelletdaa IeiirdcorAaorspoe peretwaniaeree. MMninaP150gulaekrtdmfAleotakorplay a110 Pam A ritrrirun atdmr pay area stall be x c10i far ale raidIbetsecaperay. broletsirswry oildocr one be less Man 450 siutmefBti The rnnmsn standarddoFtttea pay area does rid apply for ctitiren ISM meyeerlage Mrimmd 35 muse feet of !wile irdoorko space per dild on fosse MrRrun of 45 square feet d ssabk cUcbo play ara per child A niri run c*. decr pay ate aaal be presided fin one haf d fosse aperity. In no east stall any ate cr play aea be less item 450 nested_ The rmirun sanded d cub= payees dates rat aptlykr chicken udeaeyeadage Vaiataetratoemat bewittin333feadataia road Mrimmd 35 swan few of usable iredcorka space par crikl an liaise Mrimm of 45 aware feet cf usable oitdaa play area , per child A mire -run n outcba play wee stet be pervided fame tent d hoarse acuity. In roared shall ay ourcbo play are be less than 450 aware feet The r ininm standard cf outdca pay area dates rut apply fa children under one yea d age 1,teiaiaertranemetbewlhin300feetdatredal rued MAJOR SPORTS MadgatiasinSelbadseptoarr®dmmdellyperoart FACILITY (50o/a) d the rewired Sabads nay be armed by Wirer when Lute uses ae paced along peering Structues. CamnadaLisesrreye eedtneriy-jvepetet(25 o) dthe Willing area byVVrrat MIAMI 21 AS ADOPTED - APRIL 2013 ARTICLE 6. TABLE 13 SUPPLEMENTAL REGULATIONS (CONTINUED) c - CIVIC CS -CIVIC SPACE CI - CIVIC INSTITUTION CI•HD - CIVIC INSTITUTION HEALTH DISTRICT DENSITY (UPA) NIA DENSITY OF ABUTTING ZONE 150 UNITS PER ACRE REGIONAL ACTIVITY COMPLEX Regional Activity Qxrploc Allaned by Exception Hith City Corrrrission approval and are srtject to the foaming aiiticnal requirements: Mrimm distance requirement of 1,000 feet between proposed facility and any T3 a T4 Zares. Regional Activity Qxrpoc Aimed by Deception tuth City Corrrrission approval and are scttect to the folloMrg adcitiaial regrirerLilts: Mrirnrn distance re .irerrent cf 1,000 feet bebneen proposed facility and any T3 a. T4 Zares. VI.18 MIAMI 21 ARTICLE 7. PROCEDURES AND NONCOI'FOFRMI 1ES AS ADOPTED - APRIL 2013 PERMITTING PROCESS DIAGRAM Applicant Zoning Office Referral By Right Builtting Pemnit DIAGRAM 14 PERMITTING PROCESS PD Planning Department CRC Coordinated Review Committee PZAB Planning Zoning and Appeals Board Waiver Preapplication Submit to Zoning Office' PD Zoning Office Dedsbn Appeal PZAB Building Permit Warrant (Uses Only) Preepplicgbn Submit to Planning Departmenr CRC Planning Department Decision APPeai PZAB tkintout COY CO,Irri Building Permit Exception Preappliation Submit b Planning Department' CRC Planning Department Certification Fie with Hearing Boards' APPeai City Comm. Sdkfing Petrrlt Variance Preapplfcatbn Submit to Planning Department' Planning Department Certification File with Hearing Boards' Appeal City Comm. Building Permit Zoning Change Preapplcallon Submit to Planning Department' Planning Deportment Codification Fla with Romig Boards' PZAB City Commission Building Permit VII.5 STDB MAP DATA Map Number Panel Date 11,2009 FIPS Code : 12086C0476L : September : 12086 You are currently logged in as: (CUSTID_14905) on 11.Mar-2016 2550 South Bayshore Drive, Miami, FL 2550 S BAYSHORE DR, MIAMI, FL Subject fitt Census Tract : 0068.01 Geo Result : S8 (Most Accurate) - single valid address match, point located at a single known address point candidate (Parcel) r.tr,r,..d PO,i Flood XorCZone ■ ■ ozone ❑ D Zone ❑ Area Not Mapped © 2015 - STDB. All rights reserved This Report is for the sole benefit of the Customer that ordered and paid for the Report and is based on the property information provided by that Customer. That Customer's use of this Report is subject to the terms agreed to by that Customer when accessing this product. No third party is authorized to use or rely on this Report for any purpose. THE SELLER OF THIS REPORT MAKES NO REPRESENTATIONS OR WARRANTIES TO ANY PARTY CONCERNING THE CONTENT, ACCURACY OR COMPLETENESS OF THIS REPORT, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The seller of this Report shall not have any liability to any third party for any use or misuse of this Report. plicate public_user 03/11/2016 Miami -Dade County, Florida 2015 Real Estate Property Taxes Notice of Ad Valorem Tax and Non -Ad Valorem Assessments SEE REVERSE SIDE FOR IMPORTANT INFORMATION FOLIO NUMBER 01-4122-001-1631 CITY OF MIAMI (LESSOR) ALIGNED BAYSHORE MARINA LLC 2550 S BAYSHORE DR STE 204 A MIAMI, FL 33133 Miami -Dade School Board School Board Operating School Board Debt Service State and Other Florida Inland Navigation Dist South Florida Water Mgmt Dist Okeechobee Basin Everglades Construction Proj Childrens Trust Authority Miami -Dade County County Wide Operating County Wide Debt Service Library District Municipal Goveming Board Miami Operating Miami Debt Service MUNICIPALITY MIAMI Save Time. Pay Online. www.miamidade.gov 2015 Real Estate Property i Taxes FOLIO NUMBER 01-4122-001-1631 PROPERTY ADDRESS 2550 S BAYSHORE DR LEGAL DESCRIPTION THE FOLLOWING DESC PARCEL ON A LEASE AGREEMENT BETW CITY OF MIAMI & BAYSHORE PROPERTIES IN Property Address 2550 S BAYSHORE DR Exemptions: 6,200,000 7.41300 6,200,000 0.19900 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 0.03200 0.14590 0.15860 0.05060 0.50000 4.66690 0.45000 0.28400 4,059,696 7.64650 4,059,696 0.68860 6,200,000 6,200,000 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 4,059,696 * RETAIN FOR YOUR RECORDS MILL CODE 0100 45,960.60 1,233.80 129.91 592.31 643.87 205.42 2,029.85 18,94620 1,826.86 1,152.95 31,042.47 2,795.51 iCombined taxes and assessments $106,559.75 DETACH HERE AND RETURN TH S PORTION WITH YOUR PAYMENT CITY OF MIAMI (LESSOR) ALIGNED BAYSHORE MARINA LLC 2550 S BAYSHORE DR STE 204 A MIAMI, FL 33133 III 111 111111 11 I 11 HL 11 I I 11 1 I II III II * 7+ 0 4 '1 2 2 0 0 '1 '1 6 3 -,-2015* Make checks payable to M'am -Dade Tax Collector (in U.S. funds drawn on U.S. banks) Amount due May be Subject to Change Without Notice Mail payments to: 200 NW 2nd Avenue, Miami, FL 33128 Du•licate blic user 03/11 2016 PAY ONLY ONE AMOUNT If Paid By Please Pay Nov 30, 2015 $102,297.36 Dec 31, 2015 $103,362.96 Jan 31, 2016 $104,428.55 Feb 29, 2016 $105,494.15 Mar 31, 2016 $106,559.75 100 00 0 000000000000014 1220 0116 31 201 500 0106 55 975000000000 009 ALTAIACSM LAND TIT]LE SURVEY .14021.0 MAO AVIATION AVENUE • / 1 Y°. ..n1w•..r.rr w.II••••e.••••I•. rnemin°a"".re •n°"v.n..aw :m.".m ":rs`:`_-ae°4: w7rm":.en °ir•r. r�r""rw.rl.`,n• ItITV.nhOTT1. .sue . :In.n.w..'y.:efo n...wrlAw....ol.ffo....r la 1. 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SCALE 1' - 10 GRARNC SCALE POJI 00.11, r�I•.r••rwYr.....r...+r.rrwr..asa..w.....w+•• r.l.........mowru.......ne nor T. r r.�L.Y.�r•mr�.rY. .rr...rr. ..rr�rr. � rerrYYr_w�r.n.+rr rr.r•rrew. sir 2.0.=Mrrruri71.1 ls...w.rnr. r.+w..� rYr..ws • .-w. a_bf V.I.... r�rr=w =4rrWfwslw.rirYwri�i r1:1. 2,0•. f. v ItirwYSYsrrrasw.Il.trxr[rll.n�r.avi...rl�iiY m.vr. rw^wr;....srrxerwnsa.rrYs�r.r.r.r. rr.r...w..r.rL=r. �.rs.Yw. MEMO i• :m..rrrasww aw ▪ •r•••• ••rr.v .Ir•rw�•n.rw• srrrv.re• .w �: rr. BISCAYNE BAY WEN y / mics irk% //�'�%/illrig 10CATION SKETCH NTS Vpi1YMAY c• L•- r.rnC Nowa ..vaRLw10 A is wssmv.•s f.errr.•rIL.I U13IN IL IIigns. .1.1ea 212•=11 r17.s•Ir. r NT 11 MI. In OEM rnem __olve wYrlpw.r.aC 190LLr.r.r•.r.• r .nn rlssrlr.. wr.�......ir �N .(lopolwlrs.a....oC.rvvG'I.b.I llf nem.ev JMa t�vp.ws..•en.s•..Ywe....s n ms..r.rn11 ITl Valledl.•r• 22.2. 0221. )I L MO 14il I Or 11 .v . A•� m.i.n4.M..rna mr.wwlp•IA all os.Romse I0•rSr L"'r•� ors .•..ar erN. *me* hewn ..rsr. rre •er.rNNru.IP.wrMprra.r[.r..d ••WnOvtIm1s�dowR eIbm•••101 gwl•r+et MONA wirsvr iw4rfmnswdes.v 22v211•71VEa, •INfoolffeatie• lTram. o sny nm.orOlo AAA admit. eica aar"rr"`®""rrreewan.2 ...ee.ro e.npqenrtleaxew>ew.m rrrre W an Tr �I•rere _tlaMrr mraa.L.... • rm• Y.Yphrw V...I Awl n..n.)f.w.Iel ..Ivrpet w.}•r llu Atr.il... �Nv ISArm •.H.rr•L.r.. 11.m.w f.1glYy. nx ere )k NSW 17(26pcISD 4.kmDMgw- To �5 FIFTH AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF MIAMI AND ALIGNED BAYSHORE MARINA LLC This Fifth Amendment to Lease Agreement (this "Fifth Amendment"), effective as of the day of April, 2017, by and between the City of Miami, a municipal corporation of the State of Florida (the "City" and Landlord), and Aligned Bayshore Marina LLC, a Florida limited liability company (the "Company"), for purposes of amending that certain Lease Agreement between the City and the Company, entered into as follows: RECITALS WHEREAS, that certain Lease Agreement, was originally entered between the City and Bayshore Properties, Inc. ("BPI"), on September 20, 1985, and authorized by City Commission Resolution No. 85-717, adopted July 18, 1985, with related ballot language approved by referendum of voters on August 13, 1985; and WHEREAS, that certain Lease Agreement was assigned to Grove Marina Market, Ltd. ("GMM") by virtue of that certain Assignment of Lease dated March 16, 1986, that certain Acceptance of Assignment of Lease dated March 14, 1986, and that certain Consent by and between Landlord and BPI dated March 13, 1986; and WHEREAS, that certain Lease Agreement was amended by that certain Memorandum of Understanding dated August 30, 1991, that certain Memorandum of Understanding dated September 10, 1993, as modified by Correction of Scrivener's Error, recorded on February 24, 1994, in Official Records Book 16258, at Page 494 of the Public Records of Miami -Dade County, Florida and that certain Amendment to Lease Agreement dated November 14, 2001; and WHEREAS, that certain Lease Agreement was further assigned by GMM to Bayshore Landing, LLC ("Landing") by that certain Assignment and Assumption of Master Lease dated August 20, 2004 and that certain Consent to Assignment dated August 23, 2004; and WHEREAS, that certain Lease Agreement was further amended by that certain Second Amendment to Lease Agreement between the Landlord and Landing, dated August 20, 2004; that certain Memorandum of Lease dated August 20, 2004 recorded in Official Records Book 22606 at Page 2426 of the Public Records of Miami -Dade County, Florida; that certain Third Amendment to Lease between Landlord and Landing dated December 27, 2004; and that certain Fourth Amendment to Lease between Landlord and Landing dated as of February 26, 2015; and Page 1 of 18 WHEREAS. that certain Lease Agreement was further assigned by Landing to the Company by that certain Assignment and Assumption of Master Lease dated April 8, 2015 and that certain Consent to Assignment dated April 15, 2015. NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and in consideration of other valuable consideration, the parties covenant and agree as follows: 1. Incorporation of Recitals: The recitals and findings set forth above are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Amendment. Amendment Effective Date: The effective date of this Amendment shall be the first day of the first full calendar month following the date upon which the last of all the conditions precedent to the Amendment Effective Date in Section 5 of this Amendment have occurred (the "Amendment Effective Date.). The date the Amendment Effective Date is achieved shall be memorialized in the form attached as Exhibit A-1. 3. The Lease Agreement is hereby amended as follows: A. A new Section 1C is hereby added to the Lease Agreement as follows: Section 1C. No Liability for Submerged Lands Lease and State Waiver of Deed Restrictions: Pursuant to the Lease Agreement, the City has leased part of the Property's submerged land ("Submerged Lands Lease") from the State of Florida (the "State"') and subleased such land to the Company with the State's approval ("Submerged Lands Sublease"). Additionally. the City acquired the other parcel of the Property's submerged lands pursuant to a deed which carries a Waiver of Deed Restriction from the State relating to the Company's uses of such submerged City parcel ("Waiver of Deed Restriction"). The State may renew the Submerged Lands Lease and Waiver of Deed Restriction at its sole option: furthermore. the State may consent to and approve the Submerged Lands Sublease at its option. Should the State opt to not renew the Submerged Lands Lease and Waiver of Deed Restrictions. or not consent to and approve renewal of the Submerged Lands Sublease. or otherwise cancel such Submerged Lands Lease and Waiver of Deed Restrictions. or otherwise cancel such consent to and approval of the Submerged Lands Sublease. then the City shall not be liable to the Company for any losses, liabilities. costs. expenses, or damages which may occur as a result thereto unless the State cancels the Submerged Lands Lease and the Waiver of Deed Restrictions as a result of a default thereunder by the City which is not caused by a default by the Company under the Lease Agreement. The Company shall be responsible for securing all submerged lands fees, costs. permits, consents and approvals from the State. Notwithstanding the foregoing. the City shall use best efforts to assist the Company in pursuing the Submerged Lands Lease, Waiver of Deed Restrictions, and Submerged Lands Sublease provided the City shall not be I'age 2 of 18 deemed a guarantor of the Company in any liabilities and costs related to the Submerged Lands Lease. Waiver of Deed Restrictions, or Submerged Lands Sublease. B. A new Section 2A is hereby added to the Lease Agreement as follows: Section 2A. Lease Extension Term: The term of this Lease Agreement shall be extended for a period of thirty-two (32) years, commencing on June 1, 2035 (which is the day following the current expiration date of the Lease Agreement: May 31. 2035) and ending on May 31, 2067. C. A new Section 2B is hereby added to the Lease Agreement as follows: Section 2B. Renewal Options: Subject to approval of this Amendment by a majority of the voters of the City in the Referendum set forth in Section 4 below: and further provided the Company is not in Default of the Lease as amended or any other Agreement with the City or indebted to the City for moneys, the Company shall have the option to renew the Lease Agreement for two (2) additional terms of ten (10) years each. Each renewal term shall be subject to the same terms and conditions as provided for during the initial term of the Lease Agreement. except that no additional referendum shall be required for the exercise of the renewal terms. The Company shall provide written notification to the City, no less than six (6) months prior to the commencement of either of the two (2) renewal terms and failure to timely provide such written notification shall effectuate an automatic waiver of such renewal. D. Section 6 is hereby amended and restated as follows: Section 6. Redevelopment Plans: The Company shall be solely responsible for the construction and cost of all improvements to the marina, building, and restaurant located at the Property, including but not limited to labor, supplies, materials. equipment, professional services. any surrounding or adjacent municipal, governmental, regulatory requirements, land development. building, electrical, marine related or similar permits. consents, and approvals or any utility and telecommunications or computer hook-ups. The improvements are more particularly described in Exhibit A-3, attached hereto. All improvements described in Exhibit A-3 shall be performed at the Company's sole cost, expense, and risk. E. Section 13(IV) is amended to include for. clarification. that any pass through charges such as but not limited to electricity charges or common area maintenance fees collected by the Company or sublessees are included in the definition of Gross Sales and/or Gross Receipts. F New Section 13(VI) and 13(VI1) are hereby added to the Lease Agreement as follows: Page 3or18 Section 13(V1). Additional Rent: Notwithstanding the Consideration detailed in paragraphs I — III, above, the Company also agrees to pay the City a minimum of the greater of Two Hundred Thousand Dollars ($200,000) per Lease Year, or one and three quarters percent (1.75%) of Gross Receipts derived from the Property as Additional Rent due to the City. Additional Rent shall not be subordinated by, pledged, or encumbered by any other fees or expenses related to the Property or Lease Agreement. Additional Rent shall be paid first, prior to those rents detailed in paragraphs I — III. above. The Company shall commence with Additional Rent on the one year anniversary of the Amendment Effective Date. Section 13(VII). Additional Rent Report. Along with the payment of the Additional Rent, the Company shall provide the City with a statement of Gross Sales specifically detailing the Gross Sales received for the immediately preceding Lease Year audited by a Certified Public Accountant. G. Section 21 of the Lease is hereby amended to read as follows: Section 21. Insurance: The Company shall maintain during the term of this Lease Agreement the following insurance subject to the approval of the City of Miami, Department of Risk Management: (a) Property Insurance: "Special Form" property insurance form with extended coverage against loss or damage by earth movement. named storm. windstorm, hail. and flood. Amounts: Such coverage shall be in the following amounts: Replacement cost on the building. leasehold improvements (exclusive of foundation and excavation costs), lessee's alterations, improvements. fixtures. equipment, trade fixtures and floor coverings. including the expense of removal of debris as a result of damage by an insured peril (collectively. the "insured property") on the property with a maximum deductible of one percent (I %) of the insured value on all perils other than windstorm and five percent (5%) of the insured value for the peril of windstorm and hail, earth movement. flood and named storm, and other sub limits or coverage enhancements as applicable. Such perils. including windstorm and flood insurance, is to be provided to the extent commercially available. Notwithstanding the foregoing, the parties acknowledge and agree that coastal properties are often precluded from being insured by private insurers and that any casualty and windstorm insurance may have to be written through the Florida Joint Underwriters Association and/or other governmental or other insurance pool which may include certain prohibitions such as no replacement cost coverage. Pagc 4 of 18 (b) Business Interruption Insurance: "Special Form" coverage with limits not less than the minimum annual rent, remuneration or ordinary payroll and the debt service payments with 180 days extended period of indemnity. City shall be listed as loss payee on this coverage. (c) Equipment Breakdown (Boiler and Machinery): Insurance covering repair and replacement of all boilers and machinery serving or benefiting the leasehold improvements. The policies of insurance shall be endorsed to provide use and occupancy coverage for the leasehold improvements in such amount as may be reasonably acceptable to the City. The City shall be listed as loss payee on this coverage. (d) Commercial General Liability Insurance: Commercial General Liability insurance on a commercial general liability coverage form with "broad form" coverage. or its equivalent, including contingent and contractual liability. products and completed operations. personal and advertising injury. and premises/operations coverage, including parking lot coverage against sums adjudicated to be payable by the insured on account of bodily injury, death or property damage occurring in or about the property. This coverage should be written on a primary and non- contributory basis. Amounts: The limits of such coverage shall not be less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000.000) aggregate single limit for bodily injury and property damage. The City must be listed as an additional insured on this coverage. (e) Marine Operators Legal Liability: Insurance with limits not less than One Million Dollars (1,000.000). The City must be included as an additional insured and loss payee. (f) Property Coverage Docks and Piers: All Risk including Windstorm, bail. and Flood subject to replacement cost with a maximum deductible of five percent (5%) on all perils to the extent and as commercially available. Notwithstanding the foregoing. the parties acknowledge and agree that coastal properties are often precluded from being insured by private insurers and that any casualty and windstorm insurance may have to be written through the Florida Joint Underwriters Association and/or other insurance markets. City should be listed as loss payee on this coverage. (g) Automobile Liability: Automobile Liability insurance covering all owned automobiles, including hired and non -owned auto exposures used in connection with operations covered by this lease. The policy or policies of insurance shall contain limits not less than Five Hundred Thousand ($500.000) combined single limit for bodily injury and property damage. Page 5 of 18 The City shall be named as an additional insured on this coverage. The requirements of this provision in terms of owned autos will be waived upon submission of a written statement from the Company that no automobiles are used to conduct business. (h) Worker's Compensation: Statutory Worker's Compensation and occupational disease coverage in the amounts and types required by Chapter 440, of the Florida Statutes. (i) Umbrella: The Company shall further maintain an umbrella policy with limits of Three Million Dollars ($3,000,000) per occurrence and policy aggregate. This coverage should be in excess over all applicable liability policies contained herein, including liquor. (j) Liquor: The Company shall further maintain liquor liability coverage with limits of $1,000.000 per occurrence. The City shall be listed as an additional insured on this Coverage. (k) Required Policy Provisions: All policies of insurance required to be provided and obtained may not be amended, cancelled, or materially changed. unless such actions shall be required by the insurance carrier, without thirty (30) days written notice to the City of Miami. Said notice should be delivered to the City of Miami, Division of Risk Management, Attention: Director, 444 S.W. 2"d Avenue, 9th Floor, Miami, Florida 33130, with a copy to City of Miami, Department of Real Estate and Asset Management, 444 S.W. 2"d Avenue, Miami, Florida 33130, or such address that may be designated from time to time. (1) Delivery: Current evidence of insurance coverage shall be supplied to the City of Miami Department of Risk Management with a copy to City of Miami Department of Real Estate and Asset Management at the commencement of this Agreement. and a new evidence of insurance coverage shall be supplied at least twenty (20) days prior to the expiration of each such policy. Insurance policies required above shall be issued by companies authorized to do business under the laws of the State of Florida, with the following qualifications as to management and financial strength: the company should be rated "A" as to management and no less than class "V" as to financial strength, in accordance with the latest edition of Best's Key Rating Guide, or the company holds a valid Florida Certificate of Authority issued by the State of Florida, Department of Insurance, and be a member of the Florida Guarantee Fund. Receipt of any documentation of insurance by the City or by its representatives, which indicates less coverage than required, does not constitute a waiver of the Company's obligation to fulfill the insurance requirements hereof. The insurance coverage required shall include those classifications as listed in standard liability insurance manuals which most nearly reflect the operations of the Company. Page 6 of 18 (m) Right to Amend Insurance Requirements: The City reserves the right to reasonably amend the insurance requirements according to usual and customary standards in the insurance industry as circumstances dictate in order to protect the interest of the City in this Lease Agreement, provided that such requirements are uniformly imposed on comparable City -owned waterfront properties. H. Section 22 is hereby amended and restated as follows: Section 22. Indemnification: The Company shall indemnify, defend (at the Company's sole cost and expense), save and hold harmless the City. its officials, employees, instrumentalities, agencies and agents, from and against any and all claims, actions. causes of action. protests, proceedings, damages, liabilities. expenses or proceedings of any nature arising by virtue of this Fifth Amendment; in connection with the approval, granting or recommendation for approval of the Fifth Amendment; in connection with compliance with any applicable laws, codes, ordinances, rules or regulations; in connection with the loss of life, personal injury or damage, loss to or destruction of property arising from or out of any occurrence in. upon or at the Property, or the occupancy or use by the Company, its agents, servants, representatives, and concessionaires and subtenants of the Property, or any part thereof: in connection with any claims related to equipment. material, supplies, services, furnishings, labor, services, or materials for any improvements or modifications to the Property made by the Company or its agents, contractors, servants and representatives: in connection with any ad valorem. income, sales, use, or any other tax, other governmental levy. or imposition made by virtue of occupancy of the Company; in connection with any occurrence in. upon or at the Property by virtue of the occupancy of the Company; or by virtue of any workers compensation. labor, employment, wage, benefit, payroll. or similar claims made by any employee of the Company; or any claim relating to any environmental violation, hazardous or toxic materials attributable to the Company or for any violation of any law. codes, rules. regulations, resolutions or order attributable to the Company. its representatives. agents or employees, excluding only claims. actions. damages, liability or expenses arising solely and exclusively from the gross negligence or willful misconduct of the City, its officials. or employees. Each party shall pay all costs. expenses and bear their own reasonable attorneys' fees that may be incurred or paid by each party in any action between them to enforce these provisions, providing, however that the court may award court costs to the prevailing party'. The indemnification shall commence from the time the Company is recommended for award and shall continue to through the entire term of the Lease, as amended. and shall survive the cancellation or expiration of the Lease. This indemnification is inclusive of administrative. quasi-judicial, regulatory. litigation, bankruptcy and appellate proceedings. Page 7 of 18 A new Section 25A is hereby added to the Lease Agreement as follows: Section 25A. Capital Improvements: The Company shall set aside funds to complete major capital improvements and property improvements above and beyond any repairs and maintenance as more specifically described in Section 25. As the Lease is on municipal property all improvements shall be bonded as required by section 255.05, Florida Statutes and the City Code, as amended. The City shall be named an additional obligee on all such bonds which shall always be maintained on file and be subject to the review and approval of the City Risk Management Director and City Attorney as to legal form. The amounts required to be set aside and the years in which they must be spent are as follows: Lease Year Annual Amount - greater of: Total To Be Spent In Lease Year 6 through 15 $100,000 1000 of Average Repair Costs $1,000,000 16 26 through 35 $100,000 10°,0 of Average Repair Costs $1,000,000 36 51 through 58 $125,000 I 0°,0 of Average Repair Costs $1,000.000 59 61 through 68 $125,000 10° 0 of Average Repair Costs $1,000,000 69 Total $4,000,000 The Company shall set aside. at least. an amount equal to amount specified above or ten percent (10%) per year of Average Repair Costs' into a separate reserve account (until 100% of Average Repair Costs is deposited). in order to fund capital expenditures for the Property ("CapEx Fund"). which is required to be capitalized as an improvement to the Property. The CapEx Fund shall be applied toward major repairs and improvements to both upland components and submerged land marina components, including but not limited to: substantial mechanical and structural repairs, "Average Repair Costs" shall mean the average of the previous five (5) years' "repair and maintenance" line -item costs. Average Repair Costs shall be calculated in order to determine the annual amount due to the CapEx Fund. The Average Repair Cost is subject to being reviewed, inspected, and audited by the City. its agents or representatives as requested. but in no event shall the total amount of CapEx reinvested in the Property in each of the Lease Years sixteen (16), thirty-six (36). fifty-nine (59). and sixty-nine (69) be less than S1.000,000. Page 8 of 18 structural improvements, purchases, upgrades, and commercially standard general improvements, and/or repairs. The CapEx Fund shall not be applied to minor repairs due to regular wear and tear. The CapEx Fund for each period specified above must be spent in the manner required in the preceding paragraph during the specified Lease Year. The CapEx Fund for Lease Years 51 through 58 and 61 through 68 are subject to the Company exercise of its First and Second Renewal Terms, respectively. From and after the Amendment Effective Date, each "Lease Year" shall be deemed to commence on the Amendment Effective Date and on each anniversary thereof. The Company shall maintain financial accounting and "scope of work"' records together with any corresponding documentation of amounts placed and amounts used from the CapEx Fund, which shall be subject to review by the City. The Company agrees to maintain the Property in a "best -in -class" condition as compared to comparable marina properties in the City of Miami, Florida, and to consider capital improvements to the Property on a regular basis, but no less than the manner specified herein. J. A new Section 31A is hereby added to the Lease Agreement as follows: Section 31 A. Transfer Fee: Should the City consent to any Transfer, the City shall be entitled to one percent (1.00%) of the Gross Sale Amount (as hereinafter defined), if the Lease Agreement is assigned or otherwise transferred or sold within Lease Years one (1) through five (5): and, the City shall receive one and one half percent (1.50%) of the Gross Sale Amount if Transferred or sold within Lease Years six (6) through ten (10): and the City shall receive two percent (2.00(Yo) of the Gross Sale Amount if Transferred or sold within Lease Years eleven (1 1) through fifteen (15), and the City shall receive three percent (3.00%) of the Gross Sale Amount if Transferred or sold within Lease Year sixteen through the end of the Lease Term ("Transfer Fee'-). The same Transfer Fee allocation of three precent 2 "Transfer" means: I. Any total or partial sale. or assignment of the Company's business or leasehold estate or any contract. including by entering into a sublease. assignment. transfer agreement. concession agreement. etc. ?. Any transfer of more than forty-nine percent (49%) of the stock of the Company or of the stock of any owner. other than an owner whose shares are publicly traded. if the transfer results in a transfer of more than forty-nine percent (49%) of the beneficial ownership of the Company: Transfers by non -sponsor investors shall be excluded. 3. Any merger, consolidation or sale or lease of all or substantially all of the assets of the Company or of any owner, other than an owner whose shares are publicly traded. Page 9 of 18 (3.00%) of the Gross Sale Amount shall apply to the First Renewal Term and the Second Renewal Term. The Transfer Fee shall apply to all transfers other than those made to affiliated or subsidiary business entities. For purposes hereof, and as is provided in the City's other waterfront leases, the Gross Sale Amount shall mean the gross sale proceeds actually received by the Company upon the consummation of any Transfer. The Company shall furnish to the City a copy of a financial statement, a closing statement, a Transfer document, or other similar documentation in connection therewith as shall reasonably demonstrate the Gross Sale Amount. The City reserves the right to examine the Company's books and records in connection with determining the Transfer Fee. The Company additionally agrees to the applicability of the audit, inspection and resolution of contract dispute provisions set forth in Sections 18-101, 18-102, and 18-105 of the City Code, as amended. which are deemed as supplemental provisions to this Section and as being incorporated by reference herein. The Transfer Fee shall be perpetual and shall apply to any successive Transfer procured by the terms of the Lease Agreement for as long as the Lease Agreement is active, including modifications and extensions, if any. K. A new Section 31B is hereby added to the Lease Agreement as follows: Section 31B. Refinancing Fee: if the Company engages in any refinancing with respect to the Property, then the City shall have the right to participate in such refinancing in an amount equal to one percent (1%) of the Loan Proceeds (as hereinafter defined). For purposes of this Section 31B. the "Loan Proceeds" shall mean the net proceeds available to the Company from any refinancing after deduction of (i) all third party costs and expenses incurred by the Company in connection with the refinancing transaction, including, without limitation. all fees. costs and expenses imposed by the Company's lender and any rating agencies. as well as title and survey costs, escrow fees, appraisal costs, consultant costs and attorneys' fees and costs and (ii) all amounts required to repay then -existing debt being refinanced. The Company shall furnish to the City a copy of a closing statement or other similar documentation in connection therewith as shall reasonably demonstrate the amount of the Loan Proceeds. The refinancing fee shall be perpetual and shall apply to all refinancings consummated for as long as the Lease Agreement is active, including modifications and extensions, if any. Notwithstanding contrary provisions, this Section 31B shall not apply to the Company's first refinancing following the Amendment Effective Date. 4. Grants of mortgage hens and security interests or any transfer by foreclosure or in lieu of foreclosure are excluded. l'age 10 of 18 4. Referendum: Pursuant to Sections 29-B and 3(f)(iii) of the City Charter, this Amendment requires approval by a majority of the voters of the City and the written finding by the City Manager dispensing with the competitive bidding requirement pursuant to Section 18-179 of the City Code. If the Amendment is rejected or the proposed transaction does not satisfy the requirements set forth in Section 29-B, and/or 3(f)(iii), this Amendment shall be automatically terminated without the requirements of any further action. In the event of such a termination, the Company shall not have any vested, legal. property, commercial, contractual, or equitable rights, or title or interest or claims in the Property - other than those conferred by the existing Lease - or a claim or recourse upon the City, its officials, or employees for any expenses, costs, fees, or other liabilities or debts incurred in this process. The Company hereby covenants not to sue the City and releases the City, its agencies, instrumentalities. officials and employees from any such claims or actions. 5. Conditions Precedent: Conditions Precedent to the Amendment Effective Date, as such terms are referenced herein shall be (i) the written finding of the City Manager dispensing with the competitive bidding requirement pursuant to Section 18-179 of the City Code. (ii) the prior approval of this Amendment by the City Commission, (iii) the referendum approval by the majority of the electors of the City voting in that election. (iv) the execution of this Amendment by the City and the Company. and (v) the expiration of any appeal period(s) associated with the approval and referendum so that the extension is final and non -appealable. Failure of any Condition Precedent to occur will automatically void and nullify this Amendment without the necessity of further action. The Company shall have no recourse against the City relative to the failure of any Condition Precedent. Approval by the City Commission. including time for signing and implementing the formal agreement, shall be at the discretion of the City Commission. The City Commission may withhold, delay, or condition such approval at its discretion. 6. Cancellation for Convenience: The City Manager may administratively cancel this Amendment prior to the earlier of the City Commission approving this Amendment or approval by a majority of the electors of the City of Miami for any or no cause or for convenience by giving the Company thirty (30) days written notice of its intent to cancel. The Company shall have no recourse as to such cancellation. 7. No Implied Modifications: Except as specifically provided herein. all the terms and provisions of the Lease Agreement, as amended to date, shall remain in effect. Page 11of18 IN WITNESS HEREOF, the parties hereto have executed this Fifth Amendment to the Lease Agreement on the day and year first above written. [Remainder of page intentionally left blank: signature page to follow.] 1'agc 12 of 18 CITY OF MIAMI, a municipal corporation of the State of Florida By: Daniel J. Alfonso City Manager ATTEST: By: Todd B. Hannon City Clerk APPROVED AS TO INSURANCE APPROVED AS TO LEGAL FORM & REQUIREMENTS: CORRECTNESS: By: By: Ann -Marie Sharpe, Director Risk Management Department Page 13 of 18 Victoria Mendez City Attorney ALIGNED BAYSHORE MARINA LLC, a Florida limited liability company, acting by and through its Manager, to wit: By: ALIGHNED BAYSHORE HOLDINGS LLC, a Florida limited liability company, acting by and through its Manager, to wit: By: ALIGNED BAYSHORE MANAGING MEMBER LLC, a Florida limited liability company by and through its Manager, to wit: By: HJK FIFTH AVENUE LLC, a Florida limited liability company By: Jose Hevia, Managing Member Signature: Name: Signature: Name: Attest: Company Secretary Page 14 of 18 EXHIBIT A-3 Improvements. The planned capital improvements and operating improvements totaling minimum of $7,500,000 (seven million and five hundred thousand dollars) are generally categorized to the marina, building and Property, and restaurant. Below is a bullet point summary within each of the three (3) categories. Please note that some of these improvements have already been completed or are currently in progress. Referenced rental rates are not a guarantee of future rental rates. Rental rates vary up or down according to market conditions. I. Marina A. Capital Improvements i. Dredging the westerly portion of the marina to allow for re -activation of wet slips, further expanding the use by transient visitors and customers to the Property ii. Demolition of existing marina. not designed, nor equipped to deal with anticipated sea level rise. Demolition will include, but not limited to, removal of antiquated concrete fixed in -place docks, piers. and support piles, obsolete and inefficient metal pedestal units, ridged fixed utilities including water, electrical. and fire suppression distribution, lighting, and dock surfaces iii. Installation of a new "state of the art- floating concrete dock and pier system that is corrosion resistant, environmentally friendly, engineered for durability and the strength to meet the challenges of stronger king tides and rising water levels. New concrete floating dock and pier system will minimize impact to sensitive bay habitat by allowing the installation of concrete support piles that are shorter in length. and fewer in quantity iv. Installation of new "flexible" utilities infrastructure including water. electrical, and fire suppression distribution systems. utilizing the latest material and technology, allowing utilities to "float"' in unison with the new concrete floating dock and pier system v. Installation of new. individually metered power pedistals that are UL Rated, and meet ADA. NEC, NFPA and NEMA codes. New power pedestal will be built of non -rusting, non-conductive, UV protected poly -carbonate cases. enhancing safety and efficiency vi. Installation of new "green" renewable energy solar powered dock lighting, efficient gate and security monitoring systems. vi i. viii. Installation of 19 new electrical boat lifts of 28.000 lbs., 32,000 lbs.. and 40.000 lbs., which will increase specific per -slip income to the City by approximately 20%, offering greater docking choices to marina customers. and proactively enhance water quality by minimizing boat -bottom surface area in contact with water.Installation of 44 new piles to allow for 22 new "stern -to" docking positions. offering greater docking choices to marina customers. and increase dockage income to the City in this area by approximately 40% B. Operating Improvements i. Working with State of Florida to achieve Clean Marina designation in 2017. including implementation of best management practices that address waste management, storm water control, and emergency preparedness ['age 16 of 18 ii. Implementation and use of the new innovative and sustainable " Seabin ' water born debris removal system iii. Mark to market marina slip rental rates for an overall increase of income to the City of approximately 11 % iv. Implement "slip size pricing" versus "length of vessel pricing" discipline (a 36 foot vessel occupying a 40 foot slip will pay based on the slip size rather than the vessel size), to better optimize the potential of every lineal foot of dockage II. Building & Property A. Capital lmprovements i. Complete remodeling of building interior common areas ii. Design and reconstruction of new elevator lobby for increased efficiency iii. Demolition of monumental staircase and new construction of first floor and second floor rentable area, which will increase net rentable area approximately 1,500 square feet with no change to the existing building's footprint. iv. Design and construction of new building facade, main building entrance, new building lobby. signage. and lighting v. Design and new construction of new building Paseo Terrace along the southerly facade of the building approximately 25 feet wide. which will activate the 45 foot wide Paseo with uninterrupted views from South Bayshore Drive to Biscayne Bay vi. Demolition of the existing Dockmaster building in order to provide uninterrupted views of Biscayne Bay. increase public access, and provide for greater waterfront walking area vii. Remodeling and reconditioning of parking lot surfaces, lighting. signage and landscape B. Operating Improvements i. Mark to market ground floor rental rates, and second floor new tenancy and renewals to be more in line with market rental rates in the general area ii. Implement discipline of charging common area factor (" CAF') on all building leases of 8% on the ground floor and 15% on the second floor iii. Implement consistency of across the board operating expense charges allocated amongst all tenants iv. Introduce new customer dining options via the introduction of new tenant. Sushi - Maki, which is set to open in April 2017. III. Monty's Restaurant A. Capital lmprovements i. Install new Micros/ME POS system ii. Remove and replace exterior flooring surfaces iii. Remove and replace new exterior table tops iv. Remodel and reconfigure interior restaurant area to accommodate new catering initiative B. Operating Improvements i. Hire new Purchasing Manager ii. Hire new Director of Restaurant Operations iii. Implementation new cash management systems and procedures iv. Streamline menu and introduce new offerings including "farm to table" items and multiple "health wise" salad choices Page 17 of 18 I'age 18 of 18 Ted Allen —rom: Lorenzo, Jacqueline ent: Friday, June 16, 2017 12:47 PM o: Ted Allen Cc: Bums, Mark; Rotenberg, Daniel Subject: RE: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Importance: High Good afternoon Ted Please be advised if you have not already done so that Mark has indicated that , rthorized to proceed i h appraisal. Please note that any visits hould o cur Monday thru Wednesday of next w he tenant will be not be ' al at Thursday or Friday The tenant and a City representative would like to be present „ring he site visit for the appr As such, please advise oon you nit nc when ' intend tc isit hr c t , r b Regards petcrelege 40 aria Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2nd Avenue liami, Florida 33130 (305) 416-1426 F: (305) 400-5197 E: jlorenzo@miamigov.com From: Ted Allen[mailto:tallen@josephjblake.comj Sent: Wednesday, June 14, 2017 12:12 PM To: Lorenzo, Jacqueline Cc: Bums, Mark Subject: RE: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Jackie/Mark Before I quote I need to give disclosure that I appraised the facility in March of 2016 for City National Bank. The appraisal was for the construction loan City National was considering providing. I have done no work for Prime Marina Group or any of their affiliated companies and do not believe I have any conflict but wanted to make you aware of my prior work on the facility. The fee would be $4,900 with a normal 3 week delivery. Please let me know if you have any questions. Regards 1 11- aaa oa Ted Allen, MAI, MRICS State -Certifies Gene t pl r &er N . F Managing Partner BLA E Joseph J. Blake and As i ites Inc 4000 Ponce de Leon Blvd , Suite 410 Miami, FL 33146 Office: (305) 448-1663 Direct: (305) 448-1065 Fax: (305) 448 7077 tallen@JosenhJBiake.com www.JosephJBlake.com National Valuation nq Serv►cc y ar From: Lorenzo, Jacqueline [mailto:iloren, Sent: Wednesday, June 14, 2017 7:43 AM To: Ted Allen Cc: Bums, Mark Subject: FW: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Importance: High Good morning Ted, When you have a chance, please also provide a quote and estimated time of completion for an appraisal of Aligned Bayshore d/b/a Monty's (2546 5 BAYSHORE DRIVE). Please note it is a mixed use development. Additional details may be provided by Mark. Regards,�►l � 4pe€c ce -eQ 1,4 Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2nd Avenue Miami, Florida 33130 P: (305) 416-1426 F: (305) 400-5197 E: jlorenzo@miamigov.com From: Burns, Mark Sent: Tuesday, June 13, 2017 6:54 PM To: Lorenzo, Jacqueline Subject: FW: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Jackie, 2 As discussed plea r• a rest appraisals for Mot •y s which are to be paid by the iant Once the tuote r II forw•d , 1Ncr S Fr la '1 , hank you /lark Burn Lease Manager Dept. of Real Estate and Asset Management 444 SW 2nd Avenue 3rd Fl. Miami, FL 33130 305-416-1471 MburnsPmia From: Jose Hevia [ + heviappru Sent: Sunday, lune 11, 2017 11:41 AM To: Burns, Mark <t (aim € rrugo > Cc: Rotenberg, Daniel < Roter Jergc_wr 1 ,>; Melissa Tapanes Llahues < > Subject: Aligned Bayshore Marina, LLC J Two (2) Appraisals - Fair Market Value Mark, As per our discussion, the purpose of the email is to formally request the City to immediately proceed with obtaining Two (2) Appraisals of the proposed Fifth Amendment to the Lease between the City and Aligned Bayshore Marina, LLC in order to determine Fair Market Value. The primary objective is to complete the Two referenced appraises in time for the current ommission date of June 22, 2017. If not, we will default to the next commission date of Duly 13, 2017. We stand ready to furnish any required date and or information to the City to facilitate completion of the appraisals. Thank You jh Jose Hevia Principal Aligned Bayshore Marina, LLC 2550 South Bayshore Drive Suite 208 Miami, FL 33133 0: 305-858-9895 C: 305-710-4302 www.PrimeMarina.com Prime Marina Grou ' 3 Ana Moya-Diaz From: Ted Allen Sent: Friday, June 16, 2017 1:50 PM To: Ana Moya-Diaz Subject: FW: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Importance: High Ted Allen, MAI, MRICS State -Certified General Real Estate Appraiser No. RZ426 Managing Partner BILAfi Joseph J. Blake and Associates, Inc. 4000 Ponce de Leon Blvd., Suite 410 Miami, FL 33146 Office: (305) 448-1663 Direct: (305) 448-1065 Fax: (305) 448-7077 tallen@Joseph1Blake.com wwwJoseohJBlake.com National Valuation and Consulting Services for over 70 years rnis a-maii message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. From: Lorenzo, Jacqueline [mailto:jlorenzo@ miamioov.coml Sent: Friday, June 16, 2017 12:47 PM To: Ted Allen Cc: Bums, Mark; Rotenberg, Daniel Subject: RE: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Importance: High Good afternoon Ted, Please be advised, if you have not already done so, that Mark has indicated that you are authorized to proceed with the appraisal. Please note that any site visits should occur Monday thru Wednesday of next week as the tenant will be not be available Thursday or Friday. The tenant and a City representative would like to be present during the site visit for the appraisal. As such, please advise as soon as you can if and when you intend to visit the site. Thank youl Regards, % do a Zoveoya Property Management Specialist Department of Real Estate & Asset Management 1 City of Miami 444 SW 2nd Avenue "Miami, Florida 33130 : (305) 416-1426 r: (305) 400-5197 E: jlorenzo@miamigov.com From: Ted Allen [mailto:talleni osephiblake.com] Sent: Wednesday, June 14, 2017 12:12 PM To: Lorenzo, Jacqueline Cc: Burns, Mark Subject: RE: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Jackie/Mark Before I quote I need to give disclosure that I appraised the facility in March of 2016 for City National Bank. The appraisal was for the construction loan City National was considering providing. I have done no work for Prime Marina Group or any of their affiliated companies and do not believe I have any conflict but wanted to make you aware of my prior work on the facility. The fee would be $4,900 with a normal 3 week delivery. Please let me know if you have any questions. Regards ed Ted Allen, MAI, MRICS State -Certified General Real Estate Appraiser No. RZ426 Managing Partner BLCE Joseph J. Blake and Associates, Inc. 4000 Ponce de Leon Blvd., Suite 410 Miami, FL 33146 Office: (305) 448-1663 Direct: (305) 448-1065 Fax: (305) 448-7077 tallent®JosephiBiake.com www.JosephJBlake.com National Valuation and Consulting Services for over 70 years This e-mail message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient please contact the sender by reply e-mail and destroy ail copies of the original message. om: Lorenzo, Jacqueline [mailto:ilorenzoamiamiaov.com] ent: Wednesday, June 14, 2017 7:43 AM To: Ted Allen 2 Cc: Burns, Mark Subject: FW: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Importance: High Good morning Ted, When you have a chance, please also provide a quote and estimated time of completion for an appraisal of Aligned Bayshore d/b/a Monty's (2546 5 BAYSHORE DRIVE). Please note it is a mixed use development. Additional details may be provided by Mark. Regards, %4C -deltedep Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2' Avenue Miami, Florida 33130 P: (305) 416-1426 F: (305) 400-5197 E: jlorenzo(miamigov.com From: Burns, Mark Sent: Tuesday, June 13, 2017 6:54 PM To: Lorenzo, Jacqueline Subject: FW: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Jackie, As discussed, please request appraisals for Monty's which are to be paid by the tenant. Once the quote is given, I will forward for approval by Aligned. We need this done ASAP to make the July agenda. Thank you, Mark Burns Lease Manager Dept. of Real Estate and Asset Management 444 SW 2nd Avenue, 3rd FI. Miami, FL 33130 305-416-1471 Mburns@miamigov.com From: Jose Hevia [mailto:ihevia@primemarina.coml Sent: Sunday, June 11, 2017 11:41 AM To: Burns, Mark <MBurns@miamigov.com> Cc: Rotenberg, Daniel <DRotenberg@miamigov.com>; Melissa Tapanes Llahues <mtapanesPbrzoninglaw.com> Subject: Aligned Bayshore Marina, LLC / Two (2) Appraisals - Fair Market Value Mark, As per our discussion, the purpose of the email is to formally request the City to immediately proceed with obtaining Two (2) Appraisals of the proposed Fifth Amendment tc the Lease between the City and Aligned Bayshore Marina, LLC in order to determine Fair Market Value. 3 The primary objective is to complete the Two referenced appraises in time for the current 'ommission date of June 22, 2017. If not, we will default to the next commission date of July 13, 2017. We stand ready to furnish any required date and or information to the City to facilitate completion of the appraisals. Thank You jh Jose Hevia Principal Aligned Bayshore Marina, LLC 2550 South Bayshore Drive Suite 208 Miami, FL 33133 0: 305-858-9895 C: 305-710-4302 www.PrimeMarina.com Prime Marina GroulT 4 Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Aggregate of Retail Values The sum of the separate and distinct market value Appraisal Institute, The opinions for each of the units in a condominium, Dictionary of Real subdivision, development, or portfolio of properties, as Estate Appraisal, 5th of the date of valuation. The aggregate of retail values Ed. (Chicago: Appraisal does not represent an opinion of value; it is simply the Institute, 2010) total of multiple market value conclusions. Also called the sum of the retail values, aggregate retail value, or aggregate retail selling price. Air Rights The right to undisturbed use and control of designated Appraisal Institute, The air space above a specific land area within stated Dictionary of Real elevations. Such rights may be acquired to construct a Estate Appraisal, 5th building above the land or building of another or to Ed. (Chicago: Appraisal protect the light and air of an existing or proposed Institute, 2010) structure on an adjoining lot. As Complete The value of a property upon its completion. Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) As Is The value of specific ownership rights to an identified Appraisal Institute, The parcel of real estate as of the effective date of the Dictionary of Real appraisal; relates to what physically exists and is legally Estate Appraisal, 5th permissible and excludes all assumptions concerning Ed. (Chicago: Appraisal hypothetical market conditions or possible rezoning. Institute, 2010) As Stabilized The value of a property after it reaches a normal Appraisal Institute, The occupancy rate and operating expenses. Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Band of Investment A technique in which the capitalization rates attributable Appraisal Institute, The to components of a capital investment are weighted and Dictionary of Real combined to derive a weighted -average rate attributable Estate Appraisal, 5th to the total investment. Ed. (Chicago: Appraisal Institute, 2010) Condominium 1. A form of ownership in which each owner Appraisal Institute, The possesses the exclusive right to use and occupy Dictionary of Real an allotted unit plus an undivided interest in Estate Appraisal, 5th common areas. Ed. (Chicago: Appraisal 2. A multiunit structure, or a unit within such a Institute, 2010) structure, with a condominium form of ownership. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service Appraisal Institute, The (DCR = NOI/Inn), which measures the relative ability of a Dictionary of Real property to meet its debt service out of net operating Estate Appraisal, 5th income; also called debt service coverage ratio (DSCR). A Ed. (Chicago: Appraisal larger DCR indicates a greater ability for a property to Institute, 2010) withstand a downturn in revenue, providing an improved safety margin for a lender. Deferred Maintenance Depreciation is the difference between the market value Appraisal Institute, The of an improvement and its reproduction or replacement Appraisal of Real cost at the time of appraisal. The depreciated cost of the Estate, 14th Ed. improvement can be considered an indication of the (Chicago, Illinois: improvement's contribution to the property's market Appraisal Institute; value. 2010) Effective Gross Income (EGI) "The anticipated income from all operations of the real Appraisal Institute, The property after an allowance is made for vacancy and Dictionary of Real collection losses. Effective gross income includes items Estate Appraisal, 5th Ed. constituting other income, i.e., income generated from (Chicago: Appraisal the operation of the real property that is not derived Institute, 2010) from space rental (e.g., parking rental or income from vending machines)." Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property Appraisal Institute, The and its effective gross income; a single year's EGI Dictionary of Real expectancy or an annual average of several years' EGI Estate Appraisal, 5th Ed. expectancies (EGIM = V/EGI). (Chicago: Appraisal Institute, 2010) Entrepreneurial Profit "1) A market -derived figure that represents the amount Appraisal Institute, The an entrepreneur receives for his or her contribution to a Dictionary of Real project and risk; the difference between the total cost of Estate Appraisal, 5th Ed. a property (cost of development) and its market value (Chicago: Appraisal (property value after completion), which represents the Institute, 2010) entrepreneur's compensation for the risk and expertise associated with development." In the cost approach, expected profit is reflected as entrepreneurial profit. "2) In economics, the actual return on successful management practices often identified with coordination, the fourth factor of production following land, labor and capital; also called entrepreneurial return or entrepreneurial reward." Equity Capitalization Rate (RE) An income rate that reflects the relationship between Appraisal Institute, The one year's equity cash flow and the equity investment; Dictionary of Real also called the cash on cash rate, cash flow rate, or Estate Appraisal, 5th equity dividend rate. (RE = Pre -Tax Cash Flow/Equity Ed. (Chicago: Appraisal Invested) Institute, 2010) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Equity Ratio The ratio between the down payment paid on a property Appraisal Institute, The and its total price; the fraction of the investment that is Dictionary of Real unencumbered by debt. Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Excess Land Land that is not needed to serve or support the existing Appraisal Institute, The improvement. The highest and best use of the excess Dictionary of Real land may or may not be the same as the highest and best Estate Appraisal, 5th use of the improved parcel. Excess land may have the Ed. (Chicago: Appraisal potential to be sold separately and is valued separately. Institute, 2010) Exposure Time The estimated length of time the property interest being Statement on Appraisal appraised would have been offered on the market prior Standards No. 6 (SMT- to the hypothetical consummation of a sale at market 6), Uniform Standards value on the effective date of the appraisal; a of Professional retrospective opinion based upon an analysis of past Appraisal Practice, events assuming a competitive and open market. 2012-2013 Ed. External Obsolescence An element of depreciation; a diminution in value caused Appraisal Institute, The by negative externalities and generally incurable on the Dictionary of Real part of the owner, landlord, or tenant. Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Extraordinary Assumption An assumption, directly related to a specific assignment, USPAP, 2012-2013 Ed. which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. Fee Simple Estate Absolute ownership unencumbered by any other interest Appraisal Institute, The or estate, subject only to the limitations imposed by the Dictionary of Real governmental powers of taxation, eminent domain, Estate Appraisal, 5th police power, and escheat. Ed. (Chicago: Appraisal Institute, 2010) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed Appraisal Institute, The areas, measured from the exterior of the walls of the Dictionary of Real above -grade area. This includes mezzanines and Estate Appraisal, 5th basements if and when typically included in the region. Ed. (Chicago: Appraisal Institute, 2010) Gross Leasable Area (GLA) Total floor area designed for the occupancy and Appraisal Institute, The exclusive use of tenants, including basements and Dictionary of Real mezzanines; measured from the center of joint Estate Appraisal, 5th partitioning to the outside wall surfaces. Ed. (Chicago: Appraisal Institute, 2010) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Highest and Best Use The reasonably probable and legal use of vacant land or Appraisal Institute, The an improved property, which is physically possible, Dictionary of Real appropriately supported, financially feasible, and that Estate Appraisal, 5th results in the highest value. Ed. (Chicago: Appraisal Institute, 2010) Highest and Best Use of Land or a Site as though Vacant "Among all reasonable, alternative uses, the use that Appraisal Institute, The yields the highest present land value, after payments are Dictionary of Real made for labor, capital, and coordination. The use of a Estate Appraisal, 5th property based on the assumption that the parcel of land Ed. (Chicago: Appraisal is vacant or can be made vacant by demolishing any Institute, 2010) improvements." Highest and Best Use of Property, as Improved "The use that should be made of a property as it exists. Appraisal Institute, The An existing improvement should be renovated or Dictionary of Real retained as is so long as it continues to contribute to the Estate Appraisal, 5th total market value of the property, or until the return Ed. (Chicago: Appraisal from a new improvement would more than offset the Institute, 2010) cost of demolishing the existing building and constructing a new one." Hypothetical condition A condition, directly related to a specific assignment, USPAP 2012-2013 which is contrary to what is known by the appraiser to Edition, The Appraisal exist on the effective date of the assignment results, but Foundation, page U-3 is used for the purpose of analysis. Insurable Value A type of value for insurance purposes. Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Internal Rate of Return (IRR) The IRR is the rate of return on invested capital that is The Internal Rate of generated, or is capable of being generated, in an Return in Real Estate investment during the period of ownership. In other Investments, A.S.R.E.C, words, it is a rate of profit (or loss) or a measure of Chicago, Illinois, 1978 performance. It is literally, an interest rate. The effective interest rate on a real estate investment is the equity investor's IRR. The yield to maturity on a bond is the bond holder's IRR, when the bond is held for its full term. The IRR is the rate of return on capital expressed as a ratio per unit of time; for example, 10 percent per annum. Leased Fee Estate "An ownership interest held by a landlord with the right Appraisal Institute, The of use and occupancy conveyed by lease to others. The Dictionary of Real rights of lessor (the leased fee owner) and lessee are Estate Appraisal, 5th specified by contract terms contained within the lease." Ed. (Chicago: Appraisal Institute, 2010) JOSEPH J. BIAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Leasehold Interest The tenant's possessory interest created by a lease. Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Loan -to -Value Ratio (M) The ratio between a mortgage loan and the value of the property pledged as security, usually expressed as a percentage; also called loan ratio. Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Market Rent "The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations." Appraisal Institute, The Dictionary of Real Estate Appraisal, 5`h Ed. (Chicago: Appraisal Institute, 2010) Marketing Time The reasonable marketing time is an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Advisory Opinion 7(AO- 7), Uniform Standards of Professional Appraisal Practice, 2012-2013 Ed. Mortgage Capitalization Rate (RM) The capitalization rate for debt; the ratio of the annual debt service to the principal amount of the mortgage loan. The mortgage capitalization rate (RM) is equivalent to the periodic (monthly, quarterly, annually) mortgage constant times the number of payments per year on a given loan on the day the loan is initiated. RM = Annual Debt Service / Mortgage Principal Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Mortgage Debt Service (IM) The periodic payment for interest on and retirement of the principal of a mortgage loan; also called total mortgage debt service. Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Net Income Multiplier (NIM) The relationship between price or value and net operating income expressed as a factor; the reciprocal of the overall capitalization rate. Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Net Operating Income (NOI) The actual or anticipated net income that remains after Appraisal Institute, The all operating expenses are deducted from effective gross Dictionary of Real income but before mortgage debt service and book Estate Appraisal, 5th depreciation are deducted. Note: This definition mirrors Ed. (Chicago: Appraisal the convention used in corporate finance and business Institute, 2010) valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). Net Rentable Area (NRA) The floor area of a building that remains after the square Appraisal Institute, The footage represented by vertical penetrations, such as Dictionary of Real elevator shafts, etc., has been deducted. Common areas Estate Appraisal, 5th and mechanical rooms are included and there are no Ed. (Chicago: Appraisal deductions made for necessary columns and projections Institute, 2010) of the building. Overall Capitalization Rate (Po) An income rate for a total real property interest that Appraisal Institute, The reflects the relationship between a single year's net Dictionary of Real operating income expectancy and the total property Estate Appraisal, 5th price or value. Ed. (Chicago: Appraisal Institute, 2010) Prospective Value A value opinion effective as of a specified future date. Appraisal Institute, The The term does not define a type of value. Instead, it Dictionary of Real identifies a value opinion as being effective at some Estate Appraisal, 5th specific future date. An opinion of value as of a Ed. (Chicago: Appraisal prospective date is frequently sought in connection with Institute, 2010) projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Replacement Cost The estimated cost to construct, at current prices as of Appraisal Institute, The the effective appraisal date, a building with utility Dictionary of Real equivalent to the building being appraised, using modern Estate Appraisal, 5th Ed. materials and current standards, design, and layout. (Chicago: Appraisal Institute, 2010) Reproduction Cost The estimated cost to construct, at current prices as of Appraisal Institute, The the effective date of the appraisal, an exact duplicate or Dictionary of Real replica of the building being appraised, using the same Estate Appraisal, 5th Ed. materials, construction standards, design, layout, and (Chicago: Appraisal quality of workmanship and embodying all the Institute, 2010) deficiencies, superadequacies, and obsolescence of the subject building. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Bayshore Landing Marina 16-091-02 GLOSSARY OF VALUATION TERMS Term Definition Source Retrospective Value A value opinion effective as of a specified historical date. Appraisal Institute, The The term does not define a type of value. Instead, it Dictionary of Real identifies a value opinion as being effective at some Estate Appraisal, 5th specific prior date. Value as of a historical date is Ed. (Chicago: Appraisal frequently sought in connection with property tax Institute, 2010) appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion. Sandwich Lease A lease in which an intermediate, or sandwich, Appraisal Institute, The leaseholder is the lessee of one party and the lessor of Dictionary of Real another. Estate Appraisal, 5th Ed. (Chicago: Appraisal Institute, 2010) Surplus Land Land that is not currently needed to support the existing Appraisal Institute, The improvement but cannot be separated from the Dictionary of Real property and sold off. Surplus land does not have an Estate Appraisal, 5th independent highest and best use and may or may not Ed. (Chicago: Appraisal contribute value to the improved parcel. Institute, 2010) Terminal Capitalization Rate (RN) The rate used to convert income; e.g., NOI, cash flow, The Internal Rate of into an indication of the anticipated value of the subject Return in Real Estate real property at the end of an actual or anticipated Investments, A.S.R.E.C, holding period. The terminal capitalization rate is used to Chicago, Illinois, 1978 estimate the resale value of the property. Also called reversionary capitalization rate or going -out capitalization rate. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING Bayshore Landing Marina Error! No document variable supplied. QUALIFICATIONS OF THE APPRAISER TED ALLEN, MAI Mr. Allen currently holds the position of Managing Partner with the Miami office of Joseph J. Blake and Associates, Inc., at 4000 Ponce de Leon Boulevard, Suite 410, Miami, Florida. Previous positions include Principal (1986 to 2011), Regional Manager Southeast Region (1984 to 1986), Senior Appraiser (1982 to 1983) and Associate Appraiser (1979 to 1981). FORMAL EDUCATION University of Texas - Austin, Texas Bachelor of Business Administration PROFESSIONAL AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser Georgia State -Certified General Real Property Appraiser Appraisal Institute, Designated Member Royal Institution of Chartered Surveyors CURRENT RESPONSIBILITIES No. RZ 426 No. CG 1855 No. 6949 No. 6329062 Responsibilities include the preparation and direction of a variety of full narrative real estate appraisals and consulting studies prepared on a national basis. Mr. Allen supervises all staff appraisers and consultants and directs all major assignments throughout the southeastern United States and the Caribbean. APPRAISAL EXPERIENCE Mr. Allen has prepared and directed numerous appraisal and consulting assignments which include mixed - use properties, multifamily developments, proposed and existing condominiums and conversions, office buildings, motels, hotels, industrial properties, regional malls, shopping centers, mobile home parks, market studies, feasibility studies, and investment analyses on a variety of institutional and non - institutional grade real property in over 15 states and 10 Caribbean nations. He has appraised and has supervised appraisals, as well as prepared consulting studies of properties for a variety of public pension funds, large institutional investors, pension fund advisors, insurance companies and banks. Mr. Allen has qualified as an expert witness for Federal Bankruptcy Court in the State of Florida and the State of Georgia and has given oral and written testimony in each. He has also been qualified in Florida State and County Courts. LEADERSHIP AND ADDITIONAL EXPERIENCE Mr. Allen is currently one of three executive committee members managing the operations of Joseph J Blake and Associates. This position oversees all aspects of the firms operations throughout the US. His duties including accounting oversight, IT oversight, marketing, short and long range planning, personnel staffing and budgeting. Positions held at the Appraisal Institute include: former service on Chapter Admissions Committee Member, former service on National Admissions Committee, and former service on National Ethics Committee. Additional real estate activities include NCREIF and Mortgage Bankers Association functions and service as Special Magistrate Miami Dade County Value Adjustment Board for the 2014 tax year. Bayshore Landing Marina Error! No document variable supplied. QUALIFICATIONS OF THE APPRAISER CERTIFICATION RICK ac0Tr o ^_ KEN LAWSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under Lhe provisions of Chapter 475 F S. Expiration data NOV 30.2018 ALLEN, TED EUGENE 4000 PONCE DE LEONMF 410 CORAL GABLES r ISSUED 10112/201e DISPLAY AS REQUIRED BY LAW .;464(ITI"k- ''' Alvit SEO s L1610120002579 Bayshore Landing Marina Error! No document variable supplied. QUALIFICATIONS OF THE APPRAISER MATTHEW J. ROACH, MAI Mr. Roach holds the position of Director with the Miami office of Joseph J. Blake and Associates, Inc., at 4000 Ponce de Leon Boulevard, Suite 410, Miami, Florida. > FORMAL EDUCATION Florida Atlantic University — Boca Raton, Florida Masters in Business Administration/Finance University of Florida — Gainesville, Florida Bachelor of Science in Advertising Minor in Business Administration REAL ESTATE AND APPRAISAL EDUCATION Course Name Provider Real Estate Appraisal I/A.B.I Finance, Statistics and Valuation Basic Income Capitalization Advanced Income Capitalization General Market Analysis and Highest and Best Use Advanced Cost and Sales Comparison Approaches Advanced Applications Report Writing and Valuation Analysis Business Practices and Ethics Gold Coast School of Real Estate Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute Appraisal Institute PROFESSIONAL AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser No. RZ 3189 Appraisal Institute, Designated Member APPRAISAL EXPERIENCE Responsibilities include preparation of full narrative appraisal and market study reports for a wide variety of property types and purposes, including but not limited to business parks, office buildings, industrial buildings, shopping centers, multi -family projects, hotels and land. Bayshore Landing Marina Error! No document variable supplied. RICKSCOTr 13OVERNOR LICENSE NUMBER QUALIFICATIONS OF THE APPRAISER CERTIFICATION KEN LAWSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORJDA REAL ESTATE APPRAISAL BD The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date NOV 30, 2018 ROACH, MATTHEW JOSEPH 4000 PONCE DE LEON BARD SUITE 410 ..��- CORAL GABLES f1.33021 ISSUED 10I1312016 DISPLAY AS REQUIRED BY LAW SEC) 11:16161300 f)19VI