Loading...
HomeMy WebLinkAboutMelreese Appraisal BLAKEAPPRAISAL REPORT Miami International Links - Melreese Country Club Land 1802 NW 37th Avenue Miami, Miami -Dade County, FL 33125 PREPARED FOR Ms. Jacqueline Lorenzo Property Management Representative City of Miami -Department of Real Estate and 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 uoi BL JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 4000 Ponce De Leon Boulevard, Suite 410 1 Miami, FL 33146 I Phone: (305) 448-1663 I Fax: (305) 448-7077 I www.josephjblake.com July 2, 2018 Ms. Jacqueline Lorenzo Property Management Representative City of Miami -Department of Real Estate and Asset Management 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 Re: Miami International Links - Melreese Country Club Land 1802 NW 37th Avenue Miami, FL 33125 Dear Ms. Lorenzo: As requested, we have prepared an appraisal of the property referenced above presented in the attached Appraisal Report. The purpose of the appraisal is to develop an opinion of: 1) the market value of the fee simple estate of an unspecified portion of the 131.0738 acres of land underlying the Miami International Links - Melreese Country Club, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, and 2) the rental value of a portion of the underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018. The unit value and rental value conclusions are based on the 131.0738-acre size of the subject. If the size of the parcel sold or leased is different in size, these values may be impacted. Briefly described, the subject of this appraisal consists of the 131.0738 acres or 5,709,575 SF of land underlying the Miami International Links - Melreese Country Club. The portion of this overall site that we are appraising has yet to be specified in regards to exact location or size. The parcel is improved with an 18- hole golf course, with a driving range and practice putting greens. The subject is also improved with four buildings that were constructed from the 1960's to 2000's that are used as a golf learning center, pro shop, full -service restaurant, maintenance building, and other ancillary uses for the operation of a golf course. The site is owned by the City of Miami and leased to the current golf course operator. The site is irregular in shape and is level and street grade. The report contains 100 pages plus related exhibits. The appraisal and the attached Appraisal Report 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 most widely recognized to value vacant land: the Sales Comparison Approach. The appraisal is subject to the attached Assumptions and Limiting Conditions and Definition of Market Value. Corporate Headquarters_ 425 Broad Hollow Road, Suite 429 1 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 j Sendai July 2,2018 Ms. Jacqueline Lorenzo Page 2 of 2 After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the market value of the fee simple estate of the subject, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, on a per square foot basis is: $25.00/SF TWENTY-FIVE DOLLARS PER SQUARE FOOT This unit value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel sold is different in size, the unit value may be impacted. We are of the opinion that the rental value of the subject's underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, on a per square foot basis is: $1.25/SF ONE DOLLAR TWENTY-FIVE CENTS PER SQUARE FOOT This rental value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel leased is different in size, the rental value may be impacted. This rental value should be re-evaluated approximately every five years to take into consideration any change in market value, which would have an effect on the market rental rate. Rental rates for land are typically adjusted every five years in the market. This appraisal is based on extraordinary assumptions that we do not consider any current leases in place. The 'As Rezoned' value estimate in this appraisal is based on the hypothetical condition that the appropriate Special Area Plan (SAP) zoning to build to the property's highest and best use, is in place as of the date of value. The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly priced and actively marketed. This exposure time also assumes the hypothetical condition that the subject has been rezoned to its highest and best use. The attached Appraisal Report 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. zed",,,J Z2Z-,4 J. Michael Phillips Assistant Director Florida -State -Certified General Real Estate Appraiser No. RZ2281 Expires: November 30, 2018 mphillips@josephjblake.com Ted Allen, MAI, MRICS Managing Partner Florida -State -Certified General Real Estate Appraiser No. RZ426 Expires: November 30, 2018 tallen@iosephiblake.com Miami International Links - Melreese Country Club Land 18-114-02 TITLE PAGE TRANSMITTAL LETTER TABLE OF CONTENTS EXECUTIVE SUMMARY 1 PHOTOGRAPHS OF THE SUBJECT 3 CERTIFICATION 5 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 7 PURPOSE OF THE APPRAISAL 9 INTENDED USER AND USE OF THE APPRAISAL 9 PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT 9 EXPOSURE TIME 10 SCOPE OF THE APPRAISAL 10 IDENTIFICATION OF THE PROPERTY 11 CURRENT USE OF THE SUBJECT 11 HISTORY OF THE SUBJECT 11 AREA ANALYSIS 12 NEIGHBORHOOD ANALYSIS 17 NATIONAL RETAIL MARKET ANALYSIS 22 MIAMI RETAIL MARKET ANALYSIS 25 NATIONAL OFFICE MARKET ANALYSIS 39 MIAMI OFFICE MARKET ANALYSIS 44 NATIONAL APARTMENT MARKET ANALYSIS 54 MlAMI APARTMENT MARKET ANALYSIS 59 DESCRIPTION OF THE SITE 76 ZONING 78 TAXES 82 HIGHEST AND BEST USE 83 ANALYSIS OF DATA AND CONCLUSIONS S6 LAND VALUE 88 RECONCILIATION AND FINAL VALUE 100 ADDENDA Boundary Survey Flood Map Zoning Information Tax Information Appraisal Engagement Contract Glossary of Terms Qualifications of the Appraisers JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country Club Land 18.114-02 EXECUTIVE SUMMARY PROPERTY SUMMARY PROPERTY APPRAISED Miami International Links - Melreese Country Club Land PROPERTY ADDRESS 1802 NW 37th Avenue Miami, FL 33125 PARCEL/TAX ID PROPERTY LOCATION PURPOSE OF THE APPRAISAL 01-3132-000-0080 and portion of 01-3132-000-0090 The subject is located along the north side of State Road-836, extending from NW 37th Avenue to NW 42nd Avenue, in the City of Miami, Miami -Dade County, Florida. The purpose The purpose of the appraisal is to develop an opinion of: 1) the market value of the fee simple estate of an unspecified portion of the 131.0738 acres of land underlying the Miami International Links - Melreese Country Club, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, and 2) the rental value of a portion of the underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018. The unit value and rental value conclusions are based on the 131.0738-acre size of the subject. If the size of the parcel sold or leased is different in size, these values may be impacted. PERTINENT DATES DATE OF INSPECTION April 10, 2018 DATE OF REPORT July 2, 2018 DATE OF "AS REZONED TO HEW" VALUE April 10, 2018 HIGHEST AND BEST USE AS IMPROVED AS IF VACANT SITE DESCRIPTION CURRENT USE ZONING The subject site is valued as if vacant To maximize the utility of the site in relation to the zoning PROPERTY DATA Briefly described, the subject of this appraisal consists of the 131.0738 acres or 5,709,575 SF of land underlying the Miami International Links Melreese Country Club. The subject is improved with an 18-hole golf course, with a driving range and practice putting greens. The parcel is also improved with four buildings that were constructed from the 1960's to 2000's that are used as a golf learning center, pro shop, full - service restaurant, maintenance building, and other ancillary uses for the golf course. The site is owned by the City of Miami and leased to the current golf operator. Miami International Links As of the date of the value opinion(s), the subject was being used, as a golf course. For the purposes,„pf this report, the subject is valued as vacant land zoned to the highest and best use of the subject under Miami 21 Special Area Plan (SAP). "CS," Civic Space under the jurisdiction of the City of Miami JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 1 Miami International Links - Melreese Country Club Land 18-114-02 CENSUS TRACT 12-086-0O49.01 VALUE SUMMARY EXECUTIVE SUMMARY "As Rezoned to Highest and Best Use" Value (4/10/2018) Land Value $25,00/5F Final Value Opinion $25.00/SF This unit value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel sold is different in size, the unit value may be impacted. "As Rezoned to Highest and Best Use" Rental Value (4/10/2018) Final Rental Value $1.25/SF This rental value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel leased is different in size, the rental value may be impacted. The 'As Rezoned' value estimates in this appraisal are based on the hypothetical condition that the appropriate Special Area Plan (SAP) zoning to build to the property's highest and best use, is in place as of the date of value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 2 Miami International Links - Melreese Country Club Land 18-114-02 Subject Facing Southeast West Portion of the Subject Facing South East Portion of the Subject Facing North PHOTOGRAPHS OF THE SUBJECT North Portion of the Subject Facing East Subject Facing Northwest South Elevation of the Pro Shop Building JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATIGP! AND CGNSULTIPIG 3 Miami International Links - Melreese Country Club Land 18-114-02 North Elevation of the Restaurant Building Golf Cart Storage Street View of NW 37th Avenue Facing North PHOTOGRAPHS OF THE SUBJECT South Elevation of the Learning Center Building Tennis Courts Street View of NW 37th Avenue Facing South JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL. ESTATE VALUATION AND CONSULTING 4 Miami International Links - Melreese Country Club Land 18-114-02 CERTIFICATION We, the undersigned, certify that, to the best of our knowledge and belief: • J. Michael Phillips, has made a personal inspection of the property that is the subject of this report. Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. • As of the date of this report, J. Michael Phillips has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute. As of the date of this report, Ted Allen, MAI, MRICS 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 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 no 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 5 Miami International Links - Melreese Country Club Land 18-114-02 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 market value of the fee simple estate of the subject, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, on a per square foot basis is: $25.00/SF TWENTY-FIVE DOLLARS PER SQUARE FOOT This unit value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel sold is different in size, the unit value may be impacted. We are of the opinion that the rental value of the subject's underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, on a per square foot basis is: $1.25/SF ONE DOLLAR TWENTY-FIVE CENTS PER SQUARE FOOT This rental value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel leased is different in size, the rental value may be impacted. This rental value should be re-evaluated approximately every five years to take into consideration any change in market value, which would have an effect on the market rental rate. Rental rates for land are typically adjusted every five years in the market. This appraisal is based on extraordinary assumptions that we do not consider any current leases in place. The 'As Rezoned' value estimate in this appraisal is based on the hypothetical condition that the appropriate Special Area Plan (SAP) zoning to build to the property's highest and best use, is in place as of the date of value. The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly priced and actively marketed. This exposure time also assumes the hypothetical condition that the subject has been rezoned to its highest and best use. Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. J. Michael Phillips Assistant Director Florida -State -Certified General Real Estate Appraiser No. RZ2281 Expires: November 30, 2018 mphillips@josephjblake.com Ted Allen, MAI, MRICS Managing Partner Florida -State -Certified General Real Estate Appraiser No. RZ426 Expires: November 30, 2018 tallen@iosephiblake.com JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING b Miami International Links - Melreese Country Club Land 18-114-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS This Appraisal Report 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 and/or 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 should not be used for any other purpose. Disclosure of the contents of this Appraisal Report 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. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 7 Miami International Links - Melreese Country Club Land 18-114-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 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. 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. 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 This appraisal is based on extraordinary assumptions that we do not consider any current leases in place. The use of the aforementioned Extraordinary Assumptions might have affected the assignment results. HYPOTHETICAL CONDITIONS The 'As Rezoned` value estimate in this appraisal is based on the hypothetical condition that the appropriate Special Area Plan (SAP) zoning to build to the property's highest and best use, is in place as of the date of value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 8 Miami International Links - Melreese Country Club Land 18-114-Q2 INTRODUCTION PURPOSE OF THE APPRAISAL The purpose of the appraisal is to develop an opinion of: 1) the market value of the fee simple estate of an unspecified portion of the 131.0738 acres of land underlying the Miami International Links - Melreese Country Club, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, and 2) the rental value of a portion of the underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018. The unit value and rental value conclusions are based on the 131.0738-acre size of the subject. If the size of the parcel sold or leased is different in size, these values may be impacted. INTENDED USER AND USE OF THE APPRAISAL The intended user of this appraisal is the client, City of Miami. We assume any affiliates, successors and assigns noted herein have the same intended use, knowledge and understanding as the original named client. The intended use of this appraisal is to assist the client with asset management purposes. This appraisal is not intended to be used by any other parties, for any other reasons, other than those which are stated here. Non -identified parties are not intended users of this report. PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT This Appraisal Report, with its analyses, conclusions and final opinions of market value, is specifically applicable to the following pertinent dates: DATE OF INSPECTION April 10, 2018 DATE OF REPORT July 2, 2018 DATE OF "AS REZONED TO HBU" VALUE April 10, 2018 DEFINITION OF MARKET VALUE Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.' Source: 12 C.F.R. § 34.42, 225.62, 323.2, 564.2, 722,2 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION ANii CONSULTING 9 Miami International Links - Melreese Country Club Land 18-114-02 INTRODUCTION 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 the property was reasonably priced and actively marketed, as well as assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning. MARKETING TIME In order to form opinions of marketing time, we contacted commercial real estate companies active in the subject's area, specifically those focused on commercial properties. Each broker was asked to estimate the marketing time for a property similar to the subject, used for the same purpose, located in the subject's area, and at or near the subject's value. While careful to state that the marketing time depends on many factors, these brokers were of the opinion that 6 to 12 months was reasonable. It is our opinion that a marketing time of 6 to 12 months is considered reasonable for the subject property. This marketing time assumes the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning. According to the PwC Real Estate Investor Survey, fourth quarter 2017, the quoted marketing time for development land properties on a national basis ranged from 3 to 36 months, and averaged 16 months. PROPERTY RIGHTS APPRAISED The subject is appraised on the basis of a fee simple estate. 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 J. Michael Phillips, has made a personal inspection of the property that is the subject of this report. Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Since the subject of this report is the land underlying the current improvements, this inspection included the exterior of the subject. 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 Flood Map Yes FEMA Zoning Information Yes County Boundary Survey Yes Owner Tax Information Yes County Type of Analysis Applied The Sales Comparison Approach was applied in this valuation analysis. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 10 Miami International Links - Melreese Country Club Land 18-114-02 INTRODUCTION 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 land sales and ground leases. 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. Information specific to the subject 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 land value, market rent, etc., reflect our judgment based on interpretation of the market data. The reasoning behind such estimates is illustrated within the approach to value. IDENTIFICATION OF THE PROPERTY The property is commonly known as: Miami International Links - Melreese Country Club Land 1802 NW 37th Avenue Miami, FL 33125 The property is also identified by the Miami -Dade County Tax Assessor's Office as tax parcel number(s) 01- 3132-000-0080 and portion of 01-3132-000-0090. 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 golf course. For the purposes of this report, the subject is valued as vacant land zoned to the highest and best use of the subject under Miami 21 Special Area Plan {SAP). HISTORY OF THE SUBJECT The subject is currently owned by the City of Miami Department of P&D Asset Management Division, who has owned the property for more than three years prior to the date of value. The subject site is improved with Miami International Links-Melreese County Club. The subject site is leased to the operator of the golf course. We were not provided with the existing lease on the subject. 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 value opinion. Also, we are not aware of the subject being listed for sale or under contract for sale at the time of this appraisal. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 11 Miami International Links MeIrcrseCountry Club Land 18-114-02 ,�endale Lakes. .;.�f Miramar `vrnn*+ Country Club Palro Springs I North AREA MAP -- AREA ANALYSIS 6!�� � Wesi park Hallandale I- Beach Miami Gardens Miami Lakes ~ Opa-ucko Hialeah Gardens Hialeah Medley 7 m|am|5p-inoo ==� Fontainebleau 11 _ Westchester Coral Gables Sunset South Miami ----~~* The Crossings Kendall .�� Palmetto Bay Aventm W North Miami Beach E2D North Miami BmHurbou' ~~ �� Miami Shores rp w''1.~. . surfmde Miami Beach Miami Beach Biscayne Bay Aquaric Preserve `, I �j Virginia Key Key Biscayne INTRODUCTION The Miami -Fort Lauderdale -West Palm Beach Metropolitan Statistical Area (MSA) encompasses 8noward^ Miami'Dude' 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 oast coast and is the southernmost county situated on Florida's mainland. Miami is the county seat ofMiami'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 u 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. |DSEPW J. A| 8KE AND ASSOCIATES. |N[, H[Ai iST4T[ VALUATION AND CONSULTING 12 Miami International Links - Melreese Country Club Land 18-114-Q2 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), I-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. Bi.AKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 13 Miami International Links - Melreese Country Club Land 18-114-02 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 ANALYTIC'S Precis® U.S. Metro South, July 2017. The full report is located in the Addenda, and contains additional information about the social, economic, governmental and environmental forces that influence value. Gross metro product(C09$ bil) % change Total employment (ths) % change Unemployment rate (%) Personal income growth (%) Median household income ($ ths) - Population (ths) %change 5i ngle.fami ly permits (a) Multifamily permits (a) FHFA house price (1995o1=100) 2011 2012 2013 105.0 106.3 108,4 0.2G% 1.20% 1.96% 1,007.3 1,031.3 1,056.5 2.25% 2.38% 2.45% 9.49% 8.27% 7.48% 4.80% 2.60% 0.38% 41.9 42.2 42.6 2,573.4 2,607.6 2,641.7 2.65% 1.33% 1.31% 962.0 1,819.9 2,266.0 1,656,0 3,250.0 8,050.0 $182.72 $185.59 $207.44 Moody's Source for Charts 2014 2015 2016 111.1 115.0 117.1 2.52% 3.57% 1.82% 1,089.3 1,125.8 1,157.7 3.10% 336% 2.83% 6.77% 5.92% 5.42% 7.75% 7.76% 2.77% 43.2 44.6 45.9 2,668.5 2,695.7 2,718.8 1.02% 1.02% 0.85% 2,077.0 2,800.0 2,873.0 5,654.0 9,817.0 5,444.0 $232.86 $255.96 $281.37 2017 2018 2019 2020 2021 2022 120.0 125.9 133.4 136.8 142.9 149.1 2.42% 4.98% 5.90% 2.59% 4.41% 4.36% 1,181.9 1,211.0 1,235.5 1,244.6 1,248.9 1,264.2 2.09% 2.46% 2.02% 0.74% 0.35% 1.22% 4.90% 4.23% 3.85% 4.35% 5.13% 5.32% 4.18% 5.77% 7.22% 5.96% 5.60% 6.01% 47.5 49.5 51.8 53.7 55.2 57.1 2,747.4 2,783.5 2,821.1 2,858.3 2,895.3 2,932.4 1.05% 1.32% 1.35% 1.32% 1.29% 1.28% 2,283.1 3,939.3 5,836.3 6,358.1 7,021.9 7,168.2 7,562.8 3,863.3 4,451.3 5,936.6 6,042.9 6,696.8 $303.33 $307.26 $299.99 $295.69 $294.82 $297.16 Source: MOODY'S ANALYTICS Precis® U.S. Metro South, July 2017 JQSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 14 Miami International Links - Melreese Country Club Land 18-114-02 1,400 1,200 1,000 800 600 400 200 0 Total Employment(ths) 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 'y'Y Y`1' ^, 'ti} `y� '4 'y� h'� ti° ', ,yo 4© 0 y° �o �° 0 fl yo 0 y0 O 10.00% 8.00% 6.00% 4.00% 2.00% $60 $50 Unemployment Rate 10.00% 8.00% 6.00% 4.00% 2.00% °^s(3 °,y3yb Loh AREA ANALYSIS % Change in Employment titi titi ti,r)) tia ticy o N, NY '1, 'V yti 6 '1, , �° �o ti0 y0 LO ti0 �O 1, '-' Personal Income Growth yti y� ti ti� ti� ti^ `b °f tifl titi 0 1, y0 �O �O tiC5 ti0 y0 LD ti0 O „1, Median Household Income (ths) Existing Home Price (ths) $350 $300 - $250 — $200 5150 $100 - - $50 - $0 $40 uuJi!-111L-pli- $30 $20 $10 - $0 tiNytititi^'ti° ti�tio s'ti`�ti°�ti yti CZ) yo yo yo do o yo do yo �o `1, o 2,750 2,700 2,650 2,600 2,550 2,500 Historic Population Growth (ths) flyti °• yL ,yo) ayD ▪ � 2,950 2,900 2,850 2,800 2,750 2,700 2,650 Projected Population Growth (ths) °��b �Oyoi©tio 4oti"r®tiL JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 15 Miami International Links - Meireese Country Club Land 18-114-02 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Single -Family Permits titi yti y"y tit. ti ti� tit ti� cc' yo yy y1 o yo do o yo yo do yo ,yo yo yo yo 12,000 10,000 8,000 6,000 4,000 2,000 0 AREA ANALYSIS Multi -Family Permits 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 16 Miami International Links - Melreese Country Club Land 18-114-02 Virginia Gardens Miami Springs Miami International Airport ara West Miami a iotogIe NEIGHBORHOOD MAP Hialeah {)r FO4 OA woo NEIGHBORHOOD ANALYSIS Gladeview BROWNSVILLE = MODEL al ALLAPATTAH Wynwood I ;' Perez / LITTLE HAVANA el Marlins P; ICJ w Flagter St C Calle Ocf CORAL WAY VI Ma;, data r -2C 18 G000g e 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. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATfOi1 AfiD CONSULTING 17 Miami International Links - Melreese Country Club Land 18-114-02 NEIGHBORHOOD ANALYSIS 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 along the north side of State Road-836, extending from NW 37th Avenue to NW 42nd Avenue, in the City of Miami, Miami -Dade County, Florida. The boundaries for the subject's neighborhood can be distinguished by the prevailing land uses as well as the county's infrastructure. The neighborhood is considered to be State Road-112 (Airport Expressway) to the north, State Road-836 (Dolphin Expressway) to the south, NW 27th Avenue to the east and NW 42nd Avenue (LeJeune Road) to the west. ACCESSIBILITY Access to the area is via Douglas Road (NW 37th Avenue), LeJeune Road (NW 42nd Avenue) and State Road-836 (the Dolphin Expressway), as well as State Road-112 (Airport Expressway). Due to the subject's proximity to the Miami International Airport, there are several expressways located within the neighborhood. The north boundary of the neighborhood is the Airport Expressway, which extends in an east/west direction from Interstate-95 to LeJeune Road. This expressway continues east into Miami Beach where it is known as Interstate-195. The south boundary is the Dolphin Expressway (State Road-836). This limited -access toll road extends east/west adjacent to the south of the subject. This highway commences at Interstate-95 and continues west to NW 137th Avenue and Florida's Turnpike Extension. This roadway also continues east of Interstate- 95, where it is known as Interstate-395, to Miami Beach. Major north/south arterials within the neighborhood include NW 27th Avenue and NW 42nd Avenue (LeJeune Road). NW 27th Avenue is the eastern boundary of the neighborhood and commences south of the neighborhood in Coconut Grove and extends north throughout Miami -Dade County and into Broward County. This roadway has interchanges within State Road-112 and State Road-836. LeJeune Road is the western boundary of the neighborhood and extends north/south throughout much of north and central Miami -Dade County. These roadways also have interchanges with State Road-112 and State Road-836. This roadway runs adjacent to Miami International Airport, providing the main ingress/egress to the airport. The subject's neighborhood has excellent access to the majority of Miami -Dade County and the major intercity expressways, DEVELOPMENT The subject is located in close proximity to Miami International Airport (MIA) and is surrounded by a variety of property types. East of the subject are mostly single-family residences, while areas north of the subject are a variety of commercial and industrial uses. Miami International Airport, is located on 3,230 acres across LeJeune Road from the ubject. This airport was founded in 1928 and offers more flights to Latin America and the Caribbean than any other airport in the United States. MIA is the third busiest airport for international passengers in the US, and is first in regards to international freight. The airport generates approximately $33.7 billion annually in business revenue and welcomes 70% of all international visitors to Florida. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 18 Miami International Links - Melreese Country Club Land 18-114-02 NEIGHBORHOOD ANALYSIS Just north of the subject, along the east side of LeJeune Road, is the Miami Intermodal Center, which is a $2 billion transportation hub containing a rental car center, MIA Mover, as well as Miami Central Station which offers connections to Tri-Rail and Greyhound Services. Also, east of LeJeune Road are several hotels located to the east of LeJeune Road providing accommodations to airline travelers. 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. Summary Population Households Families Average Household Size Owner Occupied Housing Units Renter Occupied Housing Units Median Age Population by Age 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45 -54 55 - 64 65 - 74 75 - 84 85+ Households by Income <$15,000 $15,000 - $ 24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $ 200,000+ Median Household Income Average Household Income Per Capita Income 1 mile 16,761 5,392 3,884 3.09 2,128 3,264 43.6 1 mile 4.8% 5.2% 5.1% 5.0% 5.5% 13,4% 12.9% 15.1% 12.9% 10.6% 6.6% 2.9% 1 mile 19.20% 20.00% 13.10% 15.60% 18.20% 7.10% 4.90% 1.40% 0.50% $32,815 $44,163 $14,497 Demographics 2017 2 mile 3 mile 107,094 261,852 36,861 93,959 25,237 60,780 2.88 2.75 11,753 28,240 25,108 65,719 42.0 41.9 2 mile 3 mile 5.3% 5.4% 5.4% 5.5% 5.1% 5.2% 5.1% 5.0% 5.7% 5.9% 13,9% 13.9% 13.4% 13.2% 14.4% 14.2% 12.4% 12.5% 10.0% 9.9% 6.4% 6.4% 2.8% 2.9% 2 mile 3 mile 23.10% 25.90% 18.40% 17.80% 14.90% 13.90% 15.70% 14.10% 14.90% 13.30% 6.40% 6.10% 4.70% 5.40% 1.10% 1.60% 0.80% 1.80% $29,921 $28,769 $42,073 $45,484 $14,820 $16,709 Source: Site To Do Business 1 mile 17,305 5,540 3,992 3.11 2,182 3,358 44.9 1 mile 4.8% 5.0% 5.5% 2022 2 mile 112,095 38,437 26,285 2.90 12,141 26,296 43.2 2 mile 5.4% 5.2% 5.5% 5.3% 5.3% 4.9% 11.6% 13.2% 13.6% 14.3% 11.6% 7.4% 3.0% 1 mile 17.40% 17.90% 11.90% 14.30% 19.10% 9.80% 7.00% 1.70% 0.70% $37,148 $51,622 $16,818 5.2% 12.3% 13.6% 13.3% 13.5% 11.0% 6.9% 2.9% 2 mile 21.50% 16.60% 13.60% 14.50% 16.00% 8.90% 6.50% 1.40% 1.00% $33,420 $49,209 $17,204 3 mile 274,747 98,282 63,456 2.76 29,225 69,057 43.0 3 mile 5,4% 5.2% 5.4% 5.2% 5.3% 12.7% 13.3% 13.1% 13.3% 11.0% 7.0 % 3.0% 3 mile 24.50% 16.20% 12.60% 13.00% 14.20% 8.20% 7.10% 1.90% 2.20% $ 31,745 $52,813 $19,243 JOSEPH J. BLAME AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 19 Miami International Links - Melreese Country Club Land 18-114-02 Trends: 2017 - 2022 Annual Rate 1 mile Radius Population Households Families Owner HHs Median Household Income 2 mile Radius Population Households Families Owner HHs Median Household Income 3 mile Radius Population Households Families Owner HHs Median Household Income NEIGHBORHOOD ANALYSIS Area State National 0.64% 1.36% 0.83% 0.54% 1.30% 0.79% 0.55% 1.25% 0.71% 0.50% 1,19% 0.72% 2.51% 2.13% 2.12% Area State National 0.92% 1.36% 0.83% 0.84% 1.30% 0.79% 0.82% 1.25% 0.71% 0.65% 1.19% 0.72% 2.24% 2.13% 2.12% Area State National 0.97% 1.36% 0.83% 0.90% 1.30% 0.79% 0.87% 1.25% 0.71% 0.69% 1.19% 0.72% 1.99% 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 20 Miami International Links - Melreese Country Club Land 18-114-02 NEIGHBORHOOD 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 current population within a one -mile ring of the subject consists of 5,392 households with a combined household income of $238 million. The population within a 3-mile ring consists of 36,861 households with $1.55 billion in household income. The population within a 5-mile ring consists of 93,959 households with $4.27 billion in household income. The levels of income surrounding the site, as well as being located across the street from Miami International Airport, suggest that investors of various property types would be very interested in the site for potential redevelopment. The subject's area is considered to be in the stability stage of its neighborhood cycle. NEIGHBORHOOD ANALYSIS CONCLUSION In conclusion, we researched many of the influences that could affect the value of properties in the area. This research showed that the neighborhood is being well maintained and does not illustrate factors that could be classified as negative or undesirable. The subject's location near several expressways, its proximity to Miami International Airport and proximity to places of employment and area support services, appear to be positive influences which will support the subject's future success. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 21 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS MARKET ANALYSIS The following information was compiled from published sources and is used in conjunction with primary and secondary data to analyze the market trends impacting the value of the subject property. NATIONAL STRIP SHOPPING CENTER MARKET - PWC According to the PwC Real Estate investor Survey, 1st Quarter 2018: Once looked at as recession -proof and Internet -proof investments, many owners of strip shopping centers are becoming more anxious about the impact of growth in online shopping and the entry of Amazon into the grocery business with its recent purchase of Whole Foods. "The 'Amazon Effect' will continue to erode brick -and -mortar sales," says an investor. "Amazon's impact is not done, and it's a top concern for us and one we need to adapt to," shares another. Other challenges and concerns for investors in this sector include negative headlines about retailers, the late position of the current cycle, instability of junior anchor stores, the growing number of competitive grocery formats, and the likelihood of overpaying for acquisitions. At the same time, however, investors see bright spots — strong centers performing well, still low interest rates, and opportunities to buy. Varying degrees of unease, however, are slowing the pace of sales activity as investors complete more due diligence prior to closing deals at a time when most surveyed investors view this market as favoring sellers (44.0%). While 42.0% of participants view it as neutral, the fewest portion (14,0%) see it as favoring buyers. (pg. 24) Key Survey Stats National Strip Shopping Center Market First Quarter 2018 Current Quarter Last Quarter Tenant Retention Rate Average 60.0%-100.0% 73.00% 50.0%-100.0% 71.00% Months of Free Rent (10-yr lease) 0-6 0-6 Average 3.00 3.00 %of participants using 44.00% 44.00% Market Conditions Favor Buyers 14.00% 11.00% Sellers 44.00% 44.00% Neither 42.00% 45.00% Source: PwC Real Estate Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 22 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS National Market Yield Rates for Real Estate Investments National Strip Shopping Center Market First Quarter 2018 Discount Rate (IRR) Average Current Quarter Last Quarter Yea r Ago 5.50%-10.50% 5.50%-10.50% 5.00%-10.50% 7.46% 7.50% 7.39% Overall Cap Rate (OAR) 4.00%-9.50% Average 6.36% 4.00%-9.50% 6.38% 4.00%-9.50% 6.32% Residual Cap Rate 4.75%-9.75% 4.75%-9.75% 4.75%-9.75% Average 6.84% 6.80% 6.56% Market Rent Change Rate 0.00%-3.00% 0.00%-3.00% 0.00%-3.00% Average 1.82% 1.82% 1,83% Expense Change Rate Average Marketing Time Range Average 0.00%-3.00% 2.57% 2-18 months 6.8 0.00%-3.00% 2.57% 2-18 months 6.8 0.00%-3.00% 2.69% 2-12 months 6.3 Source: PwC Rea I Estate Investor Survey, 1st Qua rter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 23 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS NATIONAL STRIP SHOPPING CENTER MARKET - REALTYRATES.COM According to the RealtyRates.com Investor Survey, 1st Quarter 2018, 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 8 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 2018 Item Input Minimum Spread Over 10-Yea r Treasury 0.76% Debt Coverage Ratio 1.05 Interest Rate 3.11% Amorti zation 40 Mortgage Constant 0.043722 Loan -to -Value Ratio 90% Equity Dividend Rate 7.95% Maximum Spread over 10-Yea r Treasury 7.66% Debt Coverage Ratio 2.15 Interest Rate 10.01% Amortization 15 Mortgage Constant 0.129026 Loan -to -Value Ratio 50% Equity Dividend Rate 17.97% Average Spread Over 10-Year Treasury 3.13% Debt Coverage Ratio 1.38 Interest Rate 5.48% Amortization 25 Mortgage Constant 0.073392 Loan -to -Value Ratio 70.5% Equity Dividend Rate 13.50% OAR DCR Technique 1.05 x 0.043722 x 0.90 = 4.13% Band of Investment Technique Mortgage 90% x 0.043722 = 0.039350 Equity 10% x 0.079479 = 0.007948 OAR 0039350 + 0.007948 = 4.73% Surveyed Rates 4.49% DCR Technique 2.15 x 0.129026 x 0.50 = 13.87% Band of Investment Technique Mortgage 50% x 0.129026 = 0.064513 Equity 50% x 0.17968 = 0.089840 OAR 0.064513 + 0.089840 = 15.44% Surveyed Rates 14.66% DCR Technique 1.38 x 0.073392 Band of Investment Technique Mortgage 71% x 0.073392 Equity 29% x 0.13459 OAR 0.051751 Surveyed Rates x 71% = 0.051751 = 0.039687 + 0.039687 = 7.16% = 9.14% 9.97% Source: RealtyRates.corn Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATi011 AND CONSULTING 24 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS 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 2018 New Development Acquisitions Recapitalizations Property Type Min. Max. Avg, Min. Max. Avg. Min. Max. Avg. Retail 6.47% 17,06% 12.43% 5.56% 14.67% 10.69% 6.34% 16.72% 12.18% Anchored 6.47% 15.69% 12.51% 5.56% 13.49% 10.76% 6.34% 15.38% 12.26% Un-Anchored 7.23% 17.06% 13.20% 6.22% 14.67% 11.35% 7.09% 16.72% 12.94% Convenience/Gas 7.56% 17.16% 10.93% 6.50% 14.76% 9.40% 7.40% 16.82% 10.71% Free Standing 6.85% 16.68% 13.01% 5.89% 14.34% 11.19% 6.71% 16.34% 12.75% Source: ReaityRates.com Investor Survey, 1st Quarter 2018 RealtyRates.com Investor Survey Retail - Equity Dividend Rates First Quarter 2018 Property Type Min. Max. Avg. Retail 7.95% 17.97% 13.46% Anchored 7.95% 16.77% 11.92% Un-Anchored 8.15% 17.97% 12.57% Convenience/Gas 8.05% 17.37% 12.24% Free Standing 7.90% 17.22% 12.09% Source: RealtyRates.tom Investor Survey, 1st Quarter 2018 MIAMI RETAIL MARKET ANALYSIS According to the CoStar Retail Market Analysis and Forecast, April 2018, strong demand helped the market weather a wave of deliveries throughout the first half of 2017, and vacancies have remained well below the national average. Developers are busy bringing new product to key locations within the metro, focusing on urban -core submarkets as well as high income north suburban ones. The highest -end luxury retail receives a lot of investor attention, particularly in Miami Beach and the new Design District, but assets there are pricey. Demographics are solid, and development is expected to remain very strong for the next few years. KEY INDICATORS Current Quarter RBA Vacancy Rate Asking Rent Availability Rate Net Absorption Deliveries SF Linder SF Construction Mails 17,522,395. 3.9% 559.38 8.1% 12.851 0 450,090 Power Center 3,363,733 3.0% $37.88 4.7% (5,000) 0 0 Neighborhood Center 34.611,628 3.6% $31.44 5.1% 42,063 14,129 6.304 Strip Center 12.396,986 3.5% $30.08 5.1% (5,384) 0 3,004 General Retail 66.632.836 3.7% 535.44 5.9% 10,216 0 1,553.414 Other 664,805 0.8% 537,19 0,8% 2,500 0 0 Market 135,192,383 3.6% $37.13 5.9% 57,246 14,129 2,012,714 Historical Forecast Annual Trends 12 Month Average Average Peak When Trough When Vacancy Change (YOY) 4.2% 3.9% 3.5% 5.1% 2006 03 2.8% 2007 04 Net Absorption SF 1 M 1,479,149 1,495,374 4,599,273 2007 03 269.119 2010 01 Delivenes SF 1.5 M 1,583,450 101t2 4,008,895 2009 01 412,271 2011 03 Rent Growth 2.2% 2.7% ! 11.i ; 7.9% 2007 01 -4.6% 2009 04 Sales Volume $756 M $1.0 B ;IN/ I''; $2.3 B 2415 04 $228.4 M 2009 04 Source: CoStar JOSEPH J. BLAKE AND ASSOCIATk' . INC. REAL ESTATE VALUATION AND CONSULTING 'I 25 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Fundamentals Wealthy foreign shoppers have helped fuel retail spending and employment growth. Overall employment gains in the leisure and hospitality sector have resulted from an increase in tourists and shoppers in Miami's favorite districts. In the next few years, escalating deliveries, particularly in the Downtown Submarket and Wynwood Art District, may soften those submarkets' fundamentals a bit, but longer -term demographic trends should continue. In fact, Miami boasts some of the lowest historical vacancies in the country. So, even with an uptick in large-scale speculative deliveries, vacancy is ultimately expected to stay well below both market and national historical averages. Retail space in Miami tends to be productive and high end. In fact, Bal Harbour Shops are consistently among the best -performing luxury retail spaces in the country, with sales of over $3,000/SF. In an effort to capitalize on strong fundamentals and to compete with the developing luxury shops in the Design District, Whitman Family Development (the Bal Harbour owner group) has recently obtained financing to expand the shops and begin the build -out of an additional 340,000 SF of retail. As the economic recovery broadens, consumption is expected to continue to expand, underpinning an improving demand outlook that should drive near -term retail sales and employment. 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. New mixed -use developments are incorporating large quantities of high -end retail space into their plans. Some recent examples include Brickell City Centre, with over 500,000 SF of retail space that delivered in late 2016, and Miami World Center, which is set to bring 450,000 SF of retail space to the area in 2018. By constructing mixed -use projects in primary business districts, developers are targeting 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 intend to be part of the metro's fastest - growing urban neighborhoods, highlighted by the recent leases of more than 80 retailers and eateries set to open in the new Brickell City Centre. NET ABSORPTION, NET DELIVERIES & VACANCY .200 .000 800 600 400 200 0 200 -400 600 � I o 1: i ; 1 2012 2913 2014 2015 2016 2017 2018 2019 2020 2021 III Net Absorption • Net rtel+venes • Vacancy Untied States'JarArmy Source: CoStar 70'to 6.5 % 6.0 % 5.5 'n 5.0°lo 4.5 LY% 40� 3.5 % 3.0 % 2 5 % JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 26 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Construction Developers are targeting primary submarkets for major mixed -use deliveries, which remain a major driver of construction in this cycle. Developers are benefiting their own retail projects by combining them with adjacent residential development. Annual deliveries are on the rise thanks to growing focus on creating live/work/play environments in primary submarkets. The Downtown Miami Submarket will enjoy most of this growth, which is being driven by plans for the Miami World Center, a mixed -use development that will include 450,000 SF of retail space. Construction will also bring space to developing submarkets. The $312 million redevelopment of the Design District in the Miami Submarket is drawing interest from national tenants and investors. Currently in its third phase of development, the district is expected to house more than 120 luxury retailers, a boutique hotel, 15-20 restaurants and cafes, and luxury condominiums, This shopping complex will bring another luxury destination to the metro, potentially competing with Bal Harbour Shops. It has even lured some tenants away from Bal Harbour. Another notable development underway is the Gardens Promenade, a 300,000 SF shopping center which is in the Hialeah Gardens submarket and is expected to deliver in 2018. While several years out, it is worth mentioning the American Dream Miami development, a 200-acre $4 billion shopping mall and entertainment complex Now that developer Triple Five has closed on the land, construction may begin in the next couple of years in the Northeast Dade Submarket. DELIVERIES & DEMOLITIONS .200 1 .000 800 600 400 200 0 - 200 - 400 -6001 2012 2013 2014 2015 2016 Forecast ° ' 1 ' I I 2017 201E 2019 • Deliver es • Derrioi shed • Net Deliveries Source: CoStar 2020 t I 2021 } JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION ANO CONSULTING 27 Miami International Links - Melreese Country Club Land 18-114-02 UNDER CONSTRUCTION MARKET ANALYSIS Property Name?Address Rating Bldg SF Stories Start Complete rreveloper(Owner Miami Wetldcenter Miami Worldcenter Associates, LLC 1 NE 1st Ave * * * * * 450,000 3 Mar-2016 Jun-2019 The Taubman Company 2 Gardens Promenade IMC Equity Group * 18000 NW 27th Ave * * * 300,000 1 Aug-2017 Jul-201$ IMC Equity Group 3 MiamiCentsal Re€ail 200 NW 1st Ave * * * * * 180,000 Apr-2016 May-2018 All Aboard Florida 4 Met Square- Silverspot C... * * * * 113,608 1 Aug-2015 Sep-2018 300 SE 3rd Ave MDM Development, LLC 5 2525 NW 82nd Ave * * * * 90,000 Oct-2016 Jan-2019 Easton Group 6 66-70 NE 39th St * * * * * 65,000 3 Dec-2016 May-2018 1 7 17321 NW 7sh Ave * * * 65,000 1 Feb-2017 May-2018 Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULT#NG 28 Miami International Links - Melreese Country Club Land 18-114-02 UNDER CONSTRUCTION MARKET ANALYSIS Property t1 Tn'Address Rating Bldg SF Stories Start Complete Developer/Owner Wynwood Walk e 2800 NW 2nd Ave * * * * 83,000 2 Nov-2017 Nov-2018 Coral Town Plaza 9 * * * 50,000 May-2017 May-2018 26401 S Dude Hwy - 10 101 NW 8th St _ * * * * 55,070 2 Jan-2018 Nov-2018 City of Miami 1800 Alton _ 11 1800-1824 Alton Rd * * * * 32,491 4 Mar-2017 Jun-2018 Saber Real Estate Advisors 12 ShopPes at Hidden Lake * * * * 31,580 2 Jul-2017 May-2018 12750 SW 128th $t _ 13 Shopper at Hidden Lake * * * * 31,500 2 Jul-2017 May-2018 12700 5W 128th St The Aura 14 1501 SW 37th Ave * * * * 30.527 14 Dec-2015 Jul-201$ Greystone Funding Corporation Tuttle Street 15 299 NE 38th St * * * 30,000 1 Aug-2016 Jul-2018 Flocs Realty, Inc. 16 5988 NW 7th Cl * * * 28.080 Aug-2017 Jan-2019 7865 NE 1 Oth Ave 17 * * * 20.400 Jan-2018 Dec-20113 18 14541 W Dixie Hwy * * * ,* 28,000 Jan-2017 Jun-2018 19 Panorama * * * * * 25.000 1 Mar-2015 May-2018 Florida East Coast Realty, LLC 1101 Brickell Bay Dr Florida East Coast Realty, LLC 2140 NE 2nd Ave 20 * * * 20,412 Dec-2017 Jun-2018 21 River Plaza 11 * * *- _ 20,000 4 Jul-2010 Jul-2018 a Melt? Group 40 SW North River Dr The Melo Group 22 SLS Lux -Retail 899 S Miami Ave * * * * 20,000 2 Oct-2014 May-2018 23 2750 Coral Way * * * * 19,030 2 Sep-2016 May-2018 Abe Resnick Associates 2201 NW 27th Ave 24 ir * * 17,800 1 Apr-2017 May-2018 Super Gold 25 17 West * * * * 17,000 1 Elion Partners 169$ Alton Rd Apr-2017 May-2018 Ekon Partners 1119 NE 125th St 26 * * * ' 10,0DD 1 Dee-2017 Oct-2018 Cambridge Capital Corp Inc 27 Sunset Harbour * * * * 15,500 2 Feb-2016 Aug-2019 1700 Alton Rd Modani Furniture 28 Square Station 1424 NE Miami ?1 * * * 15,000 1 Sep-2 0 i0 May-2018 Source: CoStar Rents Miami does very well in terms of retail, and consistently ranks among the top five metros for highest gross asking rents —thanks primarily to the exceptionally high rents in wealthy and tourist -heavy submarkets like Miami Beach, Aventura, Brickell, and Coconut Grove. The Miami Submarket is home to the Design District, where some tenants are willing to sign leases that are more than four times as costly as the metro's average. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 29 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Even though asking rents in Miami are generally high, rent growth has continued to slow throughout 2017 and early 2018. However, the decline has simply ended the phenomenal rate of growth that occurred in 2015, mirroring a nationwide trend. Regardless, rent growth in Miami is still expected to remain positive and to continue to outpace the national average. As of early 2018, the submarket with the highest rate of rent growth is West Miami. This is primarily because high rates of supply have finally put the brakes on rent growth in premier submarkets like Brickell and Miami Beach, while more moderately priced submarkets like West Miami and Coral Way, which have fewer deliveries, are experiencing relatively steadier and less dramatic decreases. ASKING RENT GROWTH (YOY) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ▪ Kul,. !' Ne,ghl,nncoarl Center ! General Ret.3il • Lather • I.iuvn • ! J^rter! ; tareF, • POWfle C:enta' -, i p Center Source: CoStar ASKING RENT PER SQUARE FOOT ;i`C� $60 $50 $40 $30 $20 Forecast $10 ' r I ' lit i_ r ) .) r i,{ i r ) r , 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • MAIIS • Neighborhood Center • General Retail / Other • Miami • Urateo Slates • Powei Conte: Strip Center Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTIIIC 30 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Sales Sales volume has cooled dramatically from its 2015 peak, when nearly 5% of inventory changed hands. Average sales price has also been decreasing. Many of the largest sales are occurring in the Kendall Submarket, which has the advantages of a dense population and higher median incomes. It is also one of the largest submarkets for office space, creating demand for quality retail and restaurant space. On deals that exceeded $5 million, most reported cap rates for well -leased retail properties have ranged from 5% to 6% over the past several quarters. Toronto -based Northbridge Investment Management's Kendall Pointe (a 75,000 SF neighborhood center built in 2008) recently sold for $219/SF at a 5.6% cap rate, and Old Cutler Towne Center (a 100,000 SF community center built in 1987 in the South Dade Submarket) sold at a 5.2% cap rate. One of the largest recent sales includes Doral Commons, a 130,000 SF neighborhood center that was sold by Terra Group to Jamestown Properties for $71 million. Dora! is home to 250 corporate headquarters and 100 multinational corporations, creating a strong demand base. It also maintains strong retail occupancy and was 98% occupied at the time of sale. SALES VOLUME & MARKET SALE PRICE PER SF S500 S450 $400 $350 S300 S250 S200 5150 5100 Forecast 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■ Sates Volume ■ Miami Price;SF a Unrted dates PriceISF Source: CoStar S1,600 S1.400 $1,200 51,000 S800 3600 S400 S200 So JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 31 Miami International Links - Melreese Country Club Land 18-114-02 MARKET STATISTICS SUBMARKET INVENTORY MARKET ANALYSIS Inventory 12 Month Deliveries Under Construction No. Subrnarket Bldgs SF (000) % Market Rank Bilge SF (000) Percent Rank Bidgs SF (000) Percent Rank 1 Aventura 128 6,664 4.9% 9 8 388 5-8% 1 0 - - 2 Biscayne Corridor 229 2,499 1.8% 15 2 43 1.7% 8 4 57 2.3% 9 3 Bnckell 74 1,781 1.3% 17 3 28 1.5% 12 2 45 2.5% 11 4 Coconut Grove 153 1,833 1.4% 16 0 0 0% 0 5 Coral Gables 386 4,483 3.3% 11 1 6 0.1% 14 0 - 6 Coral Way 346 2,662 2.0% 14 0 0 0% 2 50 1.9% 10 7 Downtown Miami 146 2,870 2.1% 13 0 0 0% 5 808 28.1% 1 8 Hialeah Gardens 456 3,116 2.3% 12 5 37 1.2% 9 1 300 9.6% 2 9 Kendall 871 19,690 14.6% 1 3 34 0.2% 10 5 74 0.4% 8 10 Medley/Hialeah 969 13,317 9.9% 4 8 84 0.6% 5 2 26 0.2% 12 11 Miami 2,452 15,081 11.2% 3 7 73 0.5% 7 12 266 1.8% 3 12 Miami Airport 742 16,417 12.2% 2 10 243 1.5% 3 4 111 0.7% 5 13 Miami Beach 632 8,643 6.4% 7 2 75 0.9% 6 5 76 0.9% 7 14 Miarrii Lakes 192 4,908 3.6% 10 2 11 0.2% 13 0 - 15 Northeast Dade 1,173 12,470 9.2% 5 5 377 3.0% 2 5 112 0.9% 4 16 Outlying Miami -Dade Cnty 25 306 0.2% 18 0 0 0% - 1 3 1.0% 13 17 South Dade 840 11,683 8.6% 6 7 115 1.0% 4 5 84 0.7% 6 18 West Miami 627 6,695 5.0% 8 3 32 0.5% 11 1 3 0% 14 Source: CoStar The subject is located in the Miami Airport submarket, which includes 742 buildings, and 16,417,000 SF of space. There have been 10 deliveries of new retail buildings in the submarket, for an increase of 243,000 SF. There are four buildings under construction, to have a total of 111,000 SF. With 12.2% of the total Miami inventory, the subject's subrnarket is the second largest in the area. SUBMARKET RENT Asking Rent 12 Month Asking Rent Annualized Ouarterly Rent No. Submarket Per SF Rank Growth Rank Growth Rank 1 Aventura $72.65 2 2.7% 3 0% - 2 Biscayne Corridor $33.86 10 1.5% 17 1.5% 1 3 Brickell $58.75 3 2.9% 2 -0.7% 12 4 Coconut Grove $46.51 4 2.0% 10 -0.2% 10 5 Coral Gables $42.51 5 1.5% 16 -0.6% 11 6 Coral Way $36.87 7 2.0% 12 0% - 7 Downtown Miami 536.39 8 2.4% 5 -0.1% 8 8 Hialeah Gardens $22.23 18 1.9% 14 0.1% 3 9 Kendall $37.70 6 2.1% 7 0% 4 10 Medley/Hialeah $28.97 14 2.2% 6 0% 5 11 Miami $34.85 9 1.7% 15 -0.2% 9 12 Miami Airport $31.04 13 2.1% 8 0% - 13 Miami Beach $78.79 1 2.6% 4 0% 7 14 Miami Lakes $26.40 15 2.0% 9 0% - 15 Northeast Dade $25.75 16 2.0% 11 0.4% 2 16 Outlying Miami -Dade Cnty $31.33 12 0.6% 18 0% 17 South Dade $24.27 17 1.9% 13 0% 18 West Miami $31.87 11 2.9% 1 0% 6 Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATIOPI AND CONSULTING 32 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS The subject submarket's average asking rent of $31.04/SF represents an increase of 2.1% over the prior year. The rents are relatively affordable, by local standards. SUBMARKET VACANCY & NET ABSORPTION Vacancy 12 Month Net Absorption No. Snbmarket SF Percent Rank SF % of Inv Rank Construct. Ratio 1 Aventura 76,307 1.1% 1 289,110 4.3% 3 0.9 2 Biscayne Corridor 302,397 12.1 % 18 (99,100) -3.6% 16 3 Bnckell 204,372 11.5% 17 (10,820) -0.6% 13 4 Coconut Grove 87,716 4.8% 13 1,685 0.1% 10 - 5 Coral Gabies 120,026 2.7% 9 (34,306) -0.8% 14 6 Coral Way 32,589 1.2% 2 17,034 0.6% 9 7 Downtown Miami 248,432 8.7% 16 27,670 1.0% 7 8 Hialeah Gardens 72,524 2.3% 5 43,720 1.4% 6 0.6 9 Kendall 516,927 2.6% 7 90,460 0.5% 5 0.4 10 Medleyillialeah 220,337 1.7% 3 125,375 0.9% 4 0.4 11 Miami 1,062,114 7.0% 15 (44,446) -0.3% 15 - 12 Miami Airport 316,916 1.9% 4 481,891 2.9% 1 0.2 13 Miami Beach 447,855 5.2% 14 (4,055) 0% 12 14 Miami Lakes 217,615 4.4% 12 (96,751) -2.0% 18 - 15 Northeast Dade 328,512 2.6% 8 313,158 2.5% 2 0.1 16 Outly}nr1 fvliami-Dade Cnty 11,909 3.9% 10 {3,197) -1.0% 11 17 South Dade 489,311 4.2% 11 (90,296) -0.8°/ 17 18 West Miami 160,496 2.4% 6 20,818 0.3% 8 0.6 Source: CoStar The subject's submarket has a vacancy factor of just 1.9%, which is the fourth lowest in Miami -Dade County. The lowest submarket, Aventura, has a 1.1% vacancy. The subject's submarket has absorbed 481,891 SF of newly constructed retail space; almost all new space is immediately absorbed as it is constructed, in the subject's submarket. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 33 Miami International Links - Melreese Country Club Land 18-114-02 MARKET FUNDAMENTALS HISTORY AND FORECAST MARKET ANALYSIS Inventory 'let Absorption Vacancy Year SF (000) Growth % Growth SF 1000) °%. Growth Constrct. Ratio SF (000) Percent Ppts Chg 2022 129.906 1,366 11% 1,324 1.1% 1.0 4,671 3.6% 0-0 2021 128,540 1,356 1.1% 1,261 1.0% 1.1 4.629 3.6% 0.0 2020 127.184 1,258 1.0% 1,273 1.0% 1.0 4.535 3.61)/0 0.0 2019 125.926 1,105 0.9% 1,257 1.0% 0.9 4,549 3.6% (0.2) 2018 124.921 1,080 0.9% 1.332 1.1% 0.8 4,701 3.8% (0.2) 2017 123.741 2,587 2.1% 1,924 1.6% 1.3 4.953 4.0% 0.5 2016 121,154 996 0.8% 899 0.8% 1.1 4,290 3.5% 0.1 2015 120,158 1,112 0-9% 1,311 1.1% 0.8 4,193 3.5% (0.2) 2014 119.046 1,304 1.1% 1,636 1,4% 0_8 4.392 3.7/° (0.3) 2013 1'17,742 483 0.4% 499 0.4% 1.0 4.725 4.0% 0.0 2012 117,258 611 0.5% 632 0-6% 1.0 4,741 4.0°/0 0,0 2011 116,647 630 0.5% 1,300 1.2% 0.5 4,762 4.1% (0.6) 2010 116,018 1,470 1.3% 1,725 1,6% 0.9 5,433 4-7% (0.3) 2009 114,547 1,750 1.6% 631 0.68'0 2.8 5,687 5.0% 0.9 2008 112,798 2,814 2_6% 1,412 1,3% 2.0 4.568 4.0% 1.2 2007 109,984 2,277 2.1% 3,886 3.8% 0.6 3,166 2.9% (1.6) 2006 107,708 1,668 1.6% 1,506 1,5% 1.1 4,776 44% 0.1 2005 106.040 1,683 1-6% 1,919 1.9% 0.9 4.614 4.4% (0.3) Source; CoStar The Miami retail inventory has grown slowly over the last few years, primarily due to the limited amount of land available for new construction. The vacancy factor has remained at less than 5% since 2005, except for one year (2009 - during the height of the recession) where the rate peaked at 5%. Vacancy is projected to remain at less than 4% for the next five years. Rents have grown steadily since 2005 as shown below. Rents are projected to continue to increase over the next few years. MARKET RENT HISTORY AND FORECAST Asking Rent Year Per Sf Index % Growth Vs Hist Peak 2022 $37.90 129 1.8% 2.7% 2021 $37.21 127 1.5% 0.8%° 2020 $36-66 125 1.2% -0.7% 2019 - $36.23 123 0.3% -1.8% 2018 $36.12 123 -1.2% -2-1 % 2017 $36.54 124 1.5% -1.0% 2016 $36.00 123 3.1 % -2.5% 2015 $34.90 119 5.7% -5 4% 2014 $33.02 112 7.0% --I 0.5% 2013 $30.86 105 4.6% -16-41)/0 2012 529-50 100 5.4% -20.1% 2011 528.00 95 2.2% -24.1% 2010 $27.40 93 -1.69/ -25.8% 2009 $27.85 95 -5_'I% -24-5% 2008 $29.36 100 -2.7% -20.4% 2007 $30.16 103 5.0% -18.3% 2006 $28.72 98 9.5% -222% 2005 $26.22 89 4.5% -29.0% Source; CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 34 Miami International Links - Melreese Country Club Land 18-114-02 MARKET SALES HISTORY Year 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Sales MARKET ANALYSIS Volume Price Cap Rates SF Volume Turnover Median Per SF Avg Price Index Overall 188 3.495.723 $400,300 2.8% 5299.06 53.308.265 156 5.4% 242 3.183.515 $1,142,430 2.6% $302.84 54,840,807 150 5.4% 392 5,003,667 $2,007,885 4.2% 5254-59 $5,340,120 145 5.3% 359 3,438,709 $1.537,029 2.9% $283.37 $4.700.395 135 5.3% 263 4,311,834 $861,210 3.7% $228.16 53,618.531 124 5.5% 267 4,262.262 $1,006,487 3.6% $205.87 54,747.581 115 5.7% 209 2,585,588 $632,476 2.2% $250.12 $3,513.755 101 6.3% 150 2,893,474 $678,601 2.5% $197.22 $4,917.395 87 7.3% 133 1,298,304 $169,736 1.1% $206.43 $1,571,627 84 7.0% 176 2,185,573 $442,155 1.9% $237.30 $2,679.726 100 6.3% 232 3,583.474 $815,308 3.3% $271.56 53,544,818 119 5.4% 182 3.702.318 $562,542 3.4% 5228.39 $3,328,650 114 5.7% 197 2,447,507 5465,908 2.3% $208.17 $2,250,762 103 6.1% Source: CoStar POWER CENTER SUPPLY AND DEMAND HISTORY AND FORECAST Inventory tiel Absorption Year SF 1000) Growth % Growth SF (000) % Growth Construction Ratio 2021 3.368 1 0.0% (3) -0.1% -- 2020 3,367 1 0.0% 3 0.1% 0.4 2019 3,366 1 0.0% 6 0.2% 0.2 2018 3,365 1 0.0% 2 0.1% 0.5 2017 3.364 0 0.0% (19) -0.6% -- 2016 3,364 0 0.0% (44) -1.3% -- 2015 3.364 0 0.0% 5 0.23'% 0.0 2014 3,364 0 0.0% (3) -0.1% -- 2013 3,364 4 0.1% (1) 0.0% -- 2012 3,360 0 0.0Te 20 0.6% 0.0 2011 3,360 3 0.1% 55 1.7% 0.1 2010 3,356 13 0.4% 58 1.8% D.2 2009 3,343 180 5.7% 147 4.8% 1.2 2008 3.163 380 13.6% 329 12.1% '1.2 2007 2,784 0 0.0% (19) -0.7% -- 2006 2,784 5 0.2% 268 .. 0.0 2005 2.779 0 0.0% - -- -- Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. PEAL ESTATE VALUATION AND CONSULTING 35 Miami International Links - Melreese Country Club Land 18-114-02 POWER CENTER VACANCY AND RENT HISTORY AND FORECAST Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 SF (OM MARKET ANALYSIS Vacancy Arcking Rent Percent Ppte Chg Per SF Index % Growth 93 2.8% 0.1 $35.76 124 1.1% 89 2.6% 0.0 $35.36 123 0.8% 90 2.7% (0.1) 535-08 122 0.0% 95 2.8% 0.0 $35.09 122 -1.0% 96 2.8% 0.6 $35.43 123 2.6% 77 2.3% 1.3 $34.54 120 3.5% 33 1.0% (0,2) $33.38 116 5.3% 38 1.1% 0.1 $31,69 110 6.5% 35 1.0% 0.2 $29.76 103 5.2% 30 0.9% (0.6) $28.30 98 5,0% 50 1.5% (1.5) $26.95 93 14% 102 3.0% (1.4) $26.59 92 -2.2% 147 4.4% 0.8 $27.20 94 -5.7% 114 3.6% 1.3 $28.85 100 -1,8% 63 2.3% 0.7 $29.38 102 4.9% 45 1.6% 0.0 528.02 97 -- 0 -- 0.0 -- - POWER CENTER SALES HISTORY Year 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Source: CoStar Volume Price SF Volume Tumover Per SF Avg Price O 0 $0 0.0% -- O 0 $0 0.0% - -- 1 7,956 $5,675,000 0.2% $713,30 $5,675.000 0 0 $0 0-0% -- 2 297,072 $92,000,000 8.8% 5381.31 $92.000.000 1 180,000 $0 5A% -- 0 0 $0 0.0% -- 0 0 $0 0.0% 0 0 $0 0.0% -- -- 1 7,956 $4,850,000 0.3% $609.60 54,850,000 1 80.315 $15.900,000 2.9°/a $197.97 $15,900,000 O 0 $0 0.0% -- -- 0 0 $0 0.0% Source:CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AI10 CONSULTING 36 Miami International Links - Melreese Country Club Land 18-114-02 NEIGHBORHOOD CENTER SUPPLY AND DEMAND HISTORY AND FORECAST Year SF (000) 2021 21,143 2020 20,908 2019 20,673 2018 20,437 2017 20,253 2016 19,689 2015 19,587 2014 19,362 2013 19,198 2012 19,142 2011 19,020 2010 18,963 2009 18,784 2008 18,645 2007 18,118 2006 17,695 2005 17,433 MARKET ANALYSIS Inventory Net Absorption Growth % Growth SF (000► %Growth Construction Ratio 235 1.1% 204 1.0% 1.2 235 1.1% 199 1.0% 1.2 236 1.2% 198 1.0% 1.2 184 0.9% 215 1.1% 0.9 564 2.9% 595 3.1% 0.9 102 0.5% 209 1.1% 0.5 225 1.2% 384 2.1% 0.6 163 0.9% 280 1.5% 0.6 57 0.3% 13 0.1% 4.2 122 0.6% 234 1.3% 0.5 57 0-3% 262 1.5% 0,2 179 1.0% 226 1.3% 0.8 140 0.7% {147) -0.8% -- 526 2.9% 102 0.6% 5.1 424 2.4% 298 1.7% 1.4 262 1.5% 174 1.5 555 3.3% -- - Source: CoStar NEIGHBORHOOD CENTER VACANCY AND RENT HISTORY AND FORECAST Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 SF (000) Vacancy Percent Ppts Chg Per SF 748 3.5% 0.1 $32.21 716 3.4% 0.1 $31.85 679 3.3% 0.1 $31.60 642 3.1% (0.2) $31.64 672 3.3% (0.3) $31.98 703 3.6% (0.6) $31.28 811 4.1% (09) $29.99 970 5.0% (0.7) $28.48 1,086 5.7% 0.2 $26.78 1,043 5.4% {0.6) $25.45 1,155 6.1% {1.1) $24.43 1.360 7.2% (0.3) $24.12 1,407 7.5% 1.5 $24.90 1,121 6.0% 2.2 $26.39 697 3.8% 0.6 $26.90 571 3.2% 0.0 $25.80 0 - 0.0 -- Source: CoStar Asking Rent Index % Growth 122 1.1% 121 0.8% 120 -0_'1 e/ 120 -1.1% 121 2.2% 119 4.3% 114 5.3% 108 6.4% 101 5.2% 96 4.1% 93 1-3% 91 _'1 % 94 -5.7% 100 -1.9% 102 4.3% 98 - JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 37 Miami International Links - Melreese Country Club Land 18-114-02 NEIGHBORHOOD CENTER SALES HISTORY Year 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Sales MARKET ANALYSIS Volume Price SF Volume Turnover Per SF Avg Price 22 1,041,801 $129,239,929 5.1% $219.39 $9,941,533 14 662,589 $144,921,600 34% $223.71 $11,147,816 31 878,704 5196,837,479 4.5% S245.65 $6.561.250 27 803,155 $202,269,196 4.1% $320.44 S8,427,883 35 1,201,214 $178,069,153 6.3% S200.28 S7,419,548 29 982,025 $165,595,810 5.1% $251.57 $8.279.791 19 378,586 574,947,411 2.0% $313.73 $5.353,387 15 548,457 $119,247,215 2-9% $178.18 $9,172,863 6 199,734 $34,785,553 1.1% $206.62 $5,797,592 12 273,558 $66,192,574 1.5% $286.47 $6,619,257 15 826,608 570.318,398 4.6% $162.75 $6.392,582 22 843,026 $170,809,006 4.8% $268.15 $7,117,042 14 429,529 $103,094,704 2.5% $304.02 $5,426.037 Sou rce: CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 38 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS MARKET ANALYSIS The following information was compiled from published sources and is used in conjunction with primary and secondary data to analyze the market trends impacting the value of the subject property. NATIONAL SUBURBAN OFFICE MARKET - PWC According to the PwC Rea! Estate Investor Survey, lst Quarter 2018: Quarterly shifts in the national suburban office market's Survey results suggest that most investors are optimistic about its performance for 2018, but in a low-key manner. "2018's performance should be flat compared to 2017, which is better than being down," surmises a participant. "We see a steady outlook with improving occupancy, but slower rent growth in the short term," says another investor. As a whole, the U.S. suburban office sector reported an overall vacancy rate of 13.6% at year-end 2017, equal to the rate for year-end 2016 but below the average of 14.6% for 2015, as per Cushman & Wakefield. Our surveyed investors note that underlying fundamentals vary greatly from location to location. For 2017, suburban areas that posted some of the lowest overall vacancy rates included El Paso, San Francisco, and Nashville. On the other hand, suburban areas that posted some of the highest overall vacancy rates included Cincinnati, Northern Virginia, and Houston. Some surveyed investors feel that there will be good buying opportunities in certain suburban markets for 2018 since "a few owners are opting to sell suburban office assets in order to better solidify an all -cash position now in anticipation of rising interest rates and capricious lender decisions." (pg. 26) Key Survey Stats National Suburban Office Market First Quarter 2018 Current Quarter Last Quarter Tenant Retention Rate Average 40.0%-75.0% 63.00% 40.0%-75.0% 63.00% Months of Free Rent (10-yr lease) 2-15 0-15 Average 7.0 6.0 %ofparticipants using 88.00% 88.00% Market Conditions Favor Buyers 43.00% 43.00% Sellers 29.00% 0.00% Neither 28.00% 57.00% Source: PwC Real Estate Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 39 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS National Market Yield Rates for Real Estate Investments National Suburban Office Market First Quarter 2018 Discount Rate (I RR) Average Current Quarter Last Quarter Year Ago 6.00%-12.00% 6.00%-12.00% 6.00%-10.50% 8.32% 8.34% 7.88% Overall Cap Rate (OAR) 4.35%-10.00% 4.20%-10.00% 5.00%-9.50% Average 6.61% 6.72% 6.61% Residual Cap Rate 6.00%-11.50% 6.00%41.50% 6.00%-10.50% Average 7.59% 7.61% 7.39% Ma rket Rent Change Rate 0.00%-5.00% 0.00°%-5.00% 0.00%-5.00% Average 1.86% 1.86% 2.03% Expense Change Rate Average Ma rketi ng Time Range Average 0.00%-4.00% 2.68% 1-12 months 6.5 0.00%-4.00% 2.68% 1-12 months 6.5 0.00%-4.00% 2.75% 1-12 months 6.0 Source: PwC Real Estate Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 40 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS NATIONAL SUBURBAN OFFICE MARKET - REALTYRATES.COM According to the RealtyRates.com Investor Survey, lst Quarter 2018, 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 Office - All Types First Quarter 2018 Item Input Minimum Spread Over 10-Year Treasury 1.02% Debt Coverage Ratio 1.15 Interest Rate 3.37% Amortization 40 Mortgage Constant 0.045556 Loan -to -Value Ratio 90% Equity Dividend Rate 7.56% Maximum Spread Over 10-Year Treasury 6.29% Debt Coverage Ratio 2.15 Interest Rate 8.64% Amortization 15 Mortgage Constant 0.119156 Loan -to -Value Ratio 50% Equity Dividend Rate 16.03% Average Spread Over 10-Year Treasury 3.16% Debt Coverage Ratio 1.65 Interest Rate 5.51% Amortization 30 Mortgage Constant 0.068172 Loan -to -Value Ratio 72.5% Equity Dividend Rate 12.22% OAR DCR Technique 1.15 x 0.04556 x 0.90 = 4.72% Band of Investment Technique Mortgage 90% x 0.045556 = 0.041000 Equity 10% x 0.075619 = 0.007562 OAR 0.041000 + 0.007562 = 4.86% Surveyed Rates 4.61% DCR Technique 2.15 x 0.11916 x 0.50 = 12.81% Band of Investment Technique Mortgage 50% x 0.119156 = 0.059578 Equity 50% x 0.160325 = 0.080163 OAR 0.059578 + 0.080163 = 13.97% Surveyed Rates 13.28% DCR Technique 1.65 x 0.068172 x 0.725 = 8.16% Band of Investment Technique Mortgage 73% x 0.068172 = 0.049425 Equity 28% x 0.122207 = 0.033607 OAR 0.049425 + 0.033607 = 8.30% Surveyed Rates 9.67% Source: Rea ItyRates.corn Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 41 Miami international Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS RealtyRates.com Investor Survey Office - Suburban First Quarter 2018 item Input Minimum Spread Over 10-Year Treasury 1.02% Debt Coverage Ratio 1.15 Interest Rate 3.37% Amortization 40 Mortgage Constant 0.045556 Loa n-to-Va I ue Ratio 90% Equity Dividend Rate 7.56% Maximum Spread Over 10-Year Treasury 5.14% Debt Coverage Ratio 1.90 Interest Rate 7.49% Amortization 15 Mortgage Constant 0.111173 Loan -to -Value Ratio 60% Equity Dividend Rate 14.83% Ave rage Spread Over 10-Year Treasury 3.08% Debt Coverage Ratio 1.53 Interest Rate 5.43% Amortization 28 Mortgage Constant 0.070101 Loan -to -Value Ratio 75% Equity Dividend Rate 10.83% OAR DCRTechnique 1.15 x 0.045556 x 0.90 = 4.72% Band of Investment Technique Mortgage Equity OAR Surveyed Rates 90% x 0.045556 = 0,041000 10% x 0.075619 = 0.007562 0.041000 + 0.007562 = 4.86% 4.61% DCR Technique 1.90 x 0.111173 x 0.60 Band of Investment Technique Mortgage Equity OAR Surveyed Rates 60% x 0.111173 40% x 0.148325 0.066704 = 12.67% = 0.066704 = 0.059330 + 0.059330 = 12.60% 11.97% DCRTechnique 1.53 x 0.070101 x 0.75 = 8.02% Band of Investment Technique Mortgage Equity OAR Surveyed Rates 75% x 0.070101 25% x 0.108337 0.052576 Source: RealtyRates.com Investor Survey, 1st Quarter 2018 = 0.052576 = 0.077084 + 0.027084 = 7.97% 8.97% 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 Office - Discount Rates First Quarter 2018 Property Type Office Suburba n CBD Medical New Development Min. Max. 6.51% 15.47% 6.51% 14.22% 7.52% 15.47% 7.66% 15.47% Avg. 11.82% 11.14% 10.99% 10.99% Min. 5.66% 5.66% 6.66% 6.66% Acquisitions Max. 13.46% 12.37% 13.46% 13.46% Avg. 10.28% 9.69% 9.56% 9.56% Recapitalizations Min. 6.44% 6.44% 7.58% 7.58% Max. 15.31% 14.08% 15.31% 15.31% Avg. 11.70% 11.02% 10.88% 10.88% Source: Rea ItyRates.com Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 42 Miami International Links - Melreese Country Club Land 18-114-02 RealtyRates.com Investor Survey Office - Equity Dividend Rates First Quarter 2018 Property Type Min. Max. Avg. Office 7.56% 16.03% 12.22% Suburban 7.56% 14.83% 10.83% CBD 7.76% 16.03% 11.48% Medical 7.66% 15.43% 11.16% Source: Rea ItyRates.com Investor Survey, 1st Quarter 2018 MARKET ANALYSIS The following tables summarize sales, income, occupancy, and operating expense data, as well as relevant rates and ratios, for class A and B office properties in the continental U.S. Office 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 Office Buildings First Quarter 2018 4Q2017 3Q2017 %Change CBD Suburb CBD Suburb CBD Suburb 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 {NOi) Investment Data $27.58 $23.74 $27.22 $23.46 1.3% 1.2% $22.58 $19.41 $22.28 $19.17 1.4% 1.2% $1.13 $0.97 $1.11 $0.96 1.4% 1.2% $23.71 $20.38 $23.40 $20.13 1.4% 1.2% 11.8% 11.9% 11.9% 12.1% -0.8% -1.8% $20.91 $17.96 $20.61 $17.69 1.5% 1.5% $10.63 $9.46 $10.58 $9.42 0.5% 0.5% 50.84% 52.70% 51.31% 53.21% -0.9% -1.0% $10.28 $8.49 $10.04 $8.28 2.4% 2.6% Average Sale Price $114 $97 $112 $95 1.5% 1.8% Overall Cap Rate (OAR) 9.0% 8.8% 8.9% 8.7% 1.0% 0.7% Gross Rent Multiplier (GRM) 5.05 4.98 5.04 4.95 0.1% 0.6% Effective Gross Income Multiplier (EGIM) 5.45 5.38 5.45 5.36 0.0% 0.4% Source: ReatyRates.corn Market Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL (STATE VALUATION ANO CONSULTING 43 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS MIAMI OFFICE MARKET ANALYSIS According to the CoStar Office Market Report, the Miami office market continues to benefit from steady demand via strong growth in office -using employment. Specifically, job growth in the Financial Activities and Professional and Business Services sectors outpaced the national average in 2017. Due to years of limited development and strong demand, vacancies have remained near cyclical lows. Developers were active in 2017, delivering almost 750,000 square feet of new office space. Even with the uptick in development, vacancies remain flat, leaving Miami in a good spot to tackle another wave of deliveries set to hit the market the next few years. Due to strong fundamentals this cycle, rent growth reached almost 8% in early 2016 but has since declined, mirroring a nationwide trend. Sales volume has dipped off recently after peaking to almost $2,2 billion in 2016, but it is still in line with the historical average. KEY INDICATORS Current Quarter RBA Vacancy Rate Gross Asking Availability Rate Net Absorption Deliveries SF Under Rent SF Construction 4 & 5 Star 34.923,444 12.8% $43.18 19.7% 62.812 100.000 1.604,838 3 Star 45.282.612 74% $32.02 10.3% i36,786) 0 280.133 1& 2 Star 24,521,386 4.4% 528.49 6-3% 33,853 0 0 Market 104,727,442 8.5% $35.03 12.8% 59,879 100,000 1,884,971 Annual Trends 12 Month Historical ForPeak When Trough When Average Average Vacancy Change (YOY) 0.2% 10.1 % 9.0% 14.3% 2010 03 6-0% 2006 01 Net Absorption SF 668 K 1,053,994 493,533 3,836.925 2006 01 (935.709) 2009 02 Deliveries SF 1 M 1,367,600 945,051 3,290,594 2008 02 85.475 2015 02 Rent Growth 2.2% 3.0% 1.6% 12.9% 2007 02 -8.9% 2009 04 Sales Volume $1 B $1.0 B NIA 524 B 2016 02 $253.8 M 2009 04 Source; CoStar Leasing Office -using employment has been driven by financial services related to international banking and the housing recovery, and professional and business services catering to wealthy retirees. Absorption reached the highest levels of the cycle in 2014 and 2015 but has decelerated since. While most of the recent leases are for 30,000 SF or fewer, there have been a few notable lease deals that have occurred over the last few quarters. In late 2017, FEMA signed a lease for over 90,000 square feet of 3 Star office space, followed by Florida Blue, who is taking over 50,000 square feet. Employment within the healthcare industry has been robust enough to support continued medical office leasing. Further supporting this trend is the rapid employment growth within the outpatient subsector of the healthcare industry, which reflects the increasing patient preference for medical services outside of the traditional hospital setting. These medical tenants typically favor 3 Star product in medical office buildings and locations within the premier suburban submarkets near wealthy residences and the University of Miami. Submarkets such as Kendall, South Miami, and Aventura see the lion's share of this activity, and as the population ages and demand for healthcare grows, medical office leasing should further drive demand, particularly in these submarkets. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 44 Miami international Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Strong demand has finally made an impact on top-quality asset fundamentals. For a large portion of the recovery, 4 & 5 Star product remained stubbornly vacant due to the supply wave that hit the market during the recession years. However, the strong absorption has helped bring down Miami's 4 & 5 Star vacancy rate by almost 800 basis points since the beginning of the cycle. Two and Three Brickell City Centre have recently hit the market and multiple 4 & 5 Star buildings are set to deliver over the next few quarters, some of which have major availability, but Miami's pattern of strong demand is expected to continue to keep vacancies under control in the near term. NET ABSORPTION, NET DELIVERIES 8 VACANCY 800 600 400 200 -200 -400 Forecast 8 % -600 1 I i 1 E E 1 E: E 1 I 1 u, # r } 1 f E E 17 °ro 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 is Net Absorption Net Deln,erres Ill Vacancy Untied States Vacant, Source: CoStar Supply Office construction has returned in force to the Miami metro. The supply pipeline was relatively empty leading up to 2016, when over 500,000 square feet delivered and has since maintained the momentum. Nearly one million square feet of new office space came on line metro wide in 2017, including 800 Waterford, a nearly 250,000 square foot office building which delivered in August. Additionally, Two MiamiCentral and Three MiamiCentral, the office phases of the mixed -use development centered on the future All Aboard Florida passenger rail station, added more than 300,000 square feet of office space to Downtown Miami. Aside from major mixed -use projects that incorporate office components, few large office projects have broken ground recently. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION ANTI CONSULTING 45 1 2 4 5 6 7 Miami International Links - Melreese Country Club Land 18-114-02 DELIVERIES & DEMOLITIONS MARKET ANALYSIS 1.000 800 600 400 200 0- -200 -400 -600 -800 t 2012 UNDER CONSTRUCTION 2013 l 1 1 2014 2015 2016 1 1 2017 Forecast I 1 2018 2019 2020 2021 Dehver.es • Demol:shed • Net Deliveries Source: CoStar 1 1 '-1 Property Name/Address The Plaza Coral Gables -... 2811 Ponce de Leon Blvd Two Miami(enii] 700 NW Miamicentral Ave 5707 Blue Lagoon Dr Panorama Tower Office 1101 Brickell Ave Fortmi Avetttura 19790 W Dixie Hwy Mary St. 3310 Mary CUDE Wynwd 227 NW 24th St Rating Bldg SF Stories Start Complete Developer/Owner 289,998 13 Mar-2018 Apr-2020 194,352 10 May-2015 Jun-2018 150,000 5 Nov-2016 0c1-2018 100,000 19 Mar-2015 Sep-2018 96,000 13 Jan-2016 Sep-2018 95,000 7 5ep-2017 Nov-2018 89,705 8 Jan-2018 Oct-2018 - Source: CoStar All Aboard Florida Florida East Coast Industries, Inc. The Hogan Group Allianz Real Estate of America LLC Florida East Coast Realty, LLC Florida East Coast Realty, LLC Prive Consulting Group Prive Consulting Group Terra Group David Marlin Jonathan Bernstein Consltng JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 46 2950 NE 207th St 20 * * * 40,000 10 Jun-2017 Aug-2018 21 15020 SW 136th St * * * 35,340 3 `k * * ik 30.000 8 'ik * * 28,283 5 2801 SW 3rd Ave 24 * * * 20,900 3 Oct-2017 Jun-2018 Colonnade Doral 25 2501 NW 1 t2th Ave * * * * 19,523 2 Aug-2017 Aug-2018 Miami International Links - Melreese Country Club Land 18-114-02 UNDER CONSTRUCTION MARKET ANALYSIS Property Namehlodresa Rating Bldg SF 7150 SW 62nd Ave 9 10 11 GiraIda Place -West Tower 7722 Ponce de Leon Blvd Sunset Office Center 1515 Sunset Dr 1900 NE Miami Ct 12 10450 NW 33rd St 13 14 15 16 17 Park Square @ Aventura NE 29th Ave HIVE 5855-5855 NW 171st St Office - Building 2 2976-2998 NE 207th St Wynwood 25 Annex 215-219 NW 24th St 3480-3484 Main Hwy 82,000 71,582 Stories Start Complete rleveloperlOwner 5 Oct-2015 May-2018 9 Apr-2016 May-2018 60,799 5 Feb-2014 May-2018 60,000 56,407 3 Feb-2018 Dec-2018 5 May-2016 Sep-2018 The Richard Brandon Company South Miami Hospital, Inc, Giralda Complex, LLC. Transamerica Holding Corp. Catherine Lone Integra Rea! Estate, LLC 54,832 4 May-2016 May 2018 Integra Real Estate, LLC * * *** 50.577 2 Aug-2017 Aug-2018 * * 'fir * 46,702 10 * * 46,000 8 * * * * 44,293 5 18 Little Havana Activities a... 700-740 SW 8th St * * ** 41,117 4 19 Aria on the Bay Conimer_.. 1770 N Bayshore Dr Integra Real Estate, LLC Jan-2016 May-2018 Norwich Aventura Park LLC Jul-2017 Jan-2019 East End Capital Partners, LLC Sep-2017 Dec-2018 Aug-2016 Jun-2018 40,000 2 Jun-2015 May-2018 The Wynwood Garage 2660 NW 3rd Ave 23 78 NW 37th St Optimum Development USA Little Havana Activities & Nutritio... The Melo Group The Melo Group Jan-2017 Jun-2018 Gaumard Scientific Jun-2017 Oct-2018 Wynwood Realty Goldman Development, LLC Jari-2017 Aug-2018 Phillip Sylvester 26 * * * 12,000 2 Jan-2015 Jun-2018 27 * * * 9,130 9 Jan-2016 Sep-2018 Norwich Aventura Park LLC Bldg 2 13411 SW 184th St Aventura Parksquare 2940 NE 207th St 28 127-145 E 49th St * * * * 8,000 1 Jun-2010 Jun-2018 Source: CoStar International Health & Beauty Francisco Dieguez Md Pa Rents Rent growth hit a cyclical high at the beginning of 2016 but has since decelerated, partially due to one of the strongest years of deliveries this cycle. Even so, rent growth in Miami is almost double the national average, and rents are among the highest in the southeast. The combination of consistent, healthy rent increases of 4 & 5 Star rents, which are already among the highest in the National Index, brightens the outlook in Miami. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 47 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS The bulk of rent growth in the metro was carried by the Miami Airport and Kendall submarkets. While the highest overall asking rents are still commanded by Brickell and Aventura, the growth in areas like Kendall and Miami Airport has proven that there is growing demand for suburban office space in Miami. With Brickell becoming price -prohibitive for an increasing number of potential tenants, the prospects in secondary office hubs, such as downtown Dadeland and the emerging CityPlace Dora!, have gained significant attention. ASKING RENT GROWTH (YOY) -2% l ' I ' ' 1 ' ' I- I 1' I i 2012 2013 2014 2015 2016 2017 2018 2019 202D 2021 ■ Miami 3 Star r Miami 4-5 Star • Miami United States Source: CoStar GROSS ASKING RENT PER SQUARE FOOT $50 $45 $40 $35 $30 $20 -� If 1 I I 2012 2013 2014 2015 2016 2017 Forecast 2018 2019 2020 2021 • Mrami 3 Star • Morn 4-5 Star • Miami - United States Source: CoStar JOSEPH J. DLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 48 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Sales Due to surging land costs, ground -up opportunities are pricey, and investments in existing buildings have become more common in Miami. After seven consecutive years of sales volume increase, total sales volume dropped off in 2017. The largest trade of 2017 was in June, when a major transaction occurred with CBRE Global Investors' acquisition of 1111 Lincoln Rd. The 4 Star, nearly 150,000 SF office building was purchased for more than $160 million. The property sold as part of a portfolio sale that included the adjacent 300-space parking garage and specialty building, as well as two lots of land. Another significant transaction in the city core was the sale of 1221 Brickell which traded to Rockpoint Group LLC for $155 million or $379 per square foot. Even in suburban submarkets, high -quality assets are trading for a premium. For example, One Park Square at Doral was purchased in September 2017 by TA Realty for $96.1 million or $341 per square foot. At the time of sale, the property was approximately 80% leased with asking rents over $36 per square foot. This was a strong gain from what the seller, New Boston Fund, paid for the property in 2010, when the property was almost fully vacant. SALES VOLUME & MARKET SALE PRICE PER SF $360 $340 $320 5300 $280 S260 $240 $220 Forecast 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • Sales Volume • Miami Pnce/SF 1 United States Price(SF Source: CoStar Si.400 $1.200 $1.000 $800 S600 $400 $200 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 49 Miami International Links - Melreese Country Club Land 18-114-02 MARKET STATISTICS SUBMARKET INVENTORY MARKET ANALYSIS Inventory 12 Month Deliveries Under Construction No. Subn rket Bldgs SF (000) % Market Rank Bldgs SF (000) Percent Rank Bldgs SF (000) Percent Rank 1 Aventura 48 2,089 2.0% 15 2 174 8.3% 2 4 151 7.2% 5 2 Biscayne Corridor 125 2,860 2.7% 11 0 0 0% 1 40 1.4% 12 3 Bnckell 72 9,599 9.2% 5 1 92 1.0% 6 1 100 1.0% 8 4 Coconut Grove 101 2,247 2.1% 14 0 0 0% 2 139 6.2% 6 5 Coral Gables 438 11,087 10.6% 4 2 130 1,2% 4 3 422 3.8% 1 6 Coral Way 224 2,366 2.3% 13 1 14 0.6% 11 2 62 2.6% 10 7 Downtown Miami 84 12,154 11.6% 2 1 132 1.1% 3 1 194 1.6% 4 8 Hialeah Gardens 62 436 0.4% 17 1 7 1.6% 12 0 - - 9 Kendall 532 11,675 11.1% 3 2 48 0.4% 8 2 117 1.0% 7 10 Mediey/Hialeah 336 4,324 4.1% 9 0 0 0% 1 8 0.2% 14 11 Miami 579 7,371 7.0% 6 3 96 1.3% 5 5 254 3.4% 2 12 Miami Airport 421 19,389 18.5% 1 1 246 1.3% 1 3 226 1.2% 3 13 Miami Beach 167 4,775 4.6% 8 0 0 0% 0 - - 14 Miami Lakes 141 3,570 3.4% 10 2 53 1.5% 7 1 51 1.4% 11 15 Northeast Dade 506 6,326 6.0% 7 1 16 0.3% 9 1 96 1.5% 9 16 Outlying Miami -Dade Crary 8 182 0.2% 18 0 0 0% 0 - 17 South Dade 224 2,443 2.3% 12 1 15 0.6% 10 2 18 0.8% 13 18 West Miami 311 1,834 1.8% 16 0 0 0% 1 6 0.3% 15 Source: Costar The subject is located in the Miami Airport submarket, which includes 421 buildings, and 19,389,000 SF of space. There has been delivery of one new office building in the submarket, for an increase of 246,000 SF. There are three buildings under construction, to have 226,000 SF. With 18.5% of the total Miami inventory, the subject's submarket is the largest in the area. SUBMARKET RENT Gross Asking Rent 12 Month Asking Rent Annualized Quarterly Rent No. Submarket Per SF Rank Growth Rank Growth Rank 1 Aventura $45.97 2 1.6% 13 -0.5% 16 2 Biscayne Corridor $36.06 8 0.7% 18 0% 12 3 Bricker $46.50 1 15% 14 0.7% 4 4 Coconut Grove $38.88 5 1.9% 12 5.1% 1 5 Coral Gables $40.75 3 1.2% 16 0.7% 3 6 Coral Way $30.56 11 2.5% 6 0% 10 7 Downtown Miami $38.86 6 1.3% 15 -0.4% 15 8 Hialeah Gardens $29.35 13 2.5% 7 0.1% 9 9 Kendall $29.78 12 4.0% 1 0.7% 5 10 Medley/Hialeah $28.77 14 2.4% 9 0.4% 8 11 Miami $33.62 9 3.0% 3 -0.2% 14 12 Miami Airport $31.29 10 3.3% 2 0.6% 7 13 Miami Beach $40.39 4 2.0% 11 -2_91, 17 14 Miami Lakes $27.74 16 2.3% 10 1.7% 2 15 Northeast Dade $28.67 15 2.6% 4 0-6% 6 16 Outlying Miami -Dade Only $37,93 7 0.9% 17 0% 17 South Dade $27.04 18 2.6% 5 -0.1 % 13 18 West Miami $27.63 17 2.5% 8 0% 11 Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 50 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS The subject submarket's average asking rent of $31.29/SF represents an increase of 3.3% over the prior year. The rents are relatively affordable, by local standards. SUBMARKET VACANCY & NET ABSORPTION Vacancy 12 Month Net Absorption No. Submarket SF Percent Rank SF V. of Inv Rank Construct. Ratio 1 Aventura 246,263 11.8% 14 37,773 1.8% 5 4.0 2 Biscayne Corridor 358,156 12.5% 15 (8,300) -0.3% 15 3 Enckell 944,771 9.8% 12 120,631 1.3% 3 0.8 4 Coconut Grove 222,220 9.9% 13 (3,627) -0.2% 14 5 Coral Gables 865,079 7.8% 11 86,280 0.8% 4 1.3 6 Coral Way 80,577 3.4% 4 7,720 0.3% 9 1.9 7 Downtown Miami 2,091,655 17.2% 17 (78,350) -0.6% 18 8 Hialeah Gardens 2,177 0.5% 2 5,008 1.1% 11 1.4 9 Kendall 685,385 5.9% 6 232,620 2.0% 2 0 10 Medley/Hialeah 137,098 3.2% 3 4,146 0.1% 12 11 Miami 295,327 4.0% 5 20,770 0.3% 7 3.8 12 Miami Airport 1,483,631 7.7% 9 242,258 1.2% 1 1.0 13 Miami Beach 280,436 5.9% 7 (31,871) -0.7% 17 14 Miami Lakes 540,920 15 2% 15 5,813 0.2% 10 - 15 Northeast Dade 484,168 7.7% 10 28,131 0.4% 6 16 Outlying Miami -bade linty - 0 0% 17 South Dade 178,443 7.3% 8 (10,585) -0.4% 16 18 West Miami 6,315 0.3% 1 9,742 0.5% 8 Source: CoStar The subject's submarket has a vacancy factor of 7.7%, which is the ninth lowest in Miami -Dade County. The lowest submarket, West Miami, has less than 1% vacancy. The subject's submarket has absorbed 242,258 SF of newly constructed office space; almost all new space is immediately absorbed as it is constructed, in the subject's submarket. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAI ESTATE VALUATION AN8 CONSULTING 51 Miami International Links - Melreese Country Club Land 18-114-02 MARKET FUNDAMENTALS HISTORY AND FORECAST MARKET ANALYSIS Inventory Net Absorption Vacancy Year SF {000) Growth % Growth SF (000) °4 Growth Constrd. Ratio SF (0001 Percent Ppte Chg 2022 108.411 1,317 1.2% 764 08% 1.7 10,319 9.5% D.4 2021 107,093 1,175 1.1% 656 0.7% 1.8 9.765 9.1% D.4 2020 105,919 918 0.9% 626 0.7% 1.5 9.247 8.7% D.2 2019 105,001 157 0.1% 683 0.7% 0.2 8,956 8.5% (0.5) 2018 104,844 1,069 1.0% 719 0.8% 1.5 9,482 9.0% 0.2 2017 103,775 1,446 1.4% 1.495 1.6% '1.0 9.132 8.8% (0.2) 2016 102,330 568 0.6% 947 1.0% 0.6 9,182 9.0% (0.4) 2015 101.761 (639) -0.6% 1,514 1.7% (0.4) 9,560 9.4% (2.0) 2014 102.400 401 0.4% 1,661 1.9% 0.2 11,713 114% (1-3) 2013 101,999 105 0.1% 945 1.1% 0.1 12,973 12.7% (0.8) 2012 101,894 278 0.3% 937 1.1% 0.3 13,813 13.6% (0.7) 2011 101,616 1,212 1.2°% 958 1.1% 1.3 14.471 14.2% 0.1 2010 100,404 2,211 2.3% 821 1.0% 2.7 14,218 14.2% 1.1 2009 98,193 2,266 2.4% (650) -0.8% - 12,827 13.1% 2.7 2008 95,927 2,245 2.4% 278 0.3% 8.1 9.911 10.3% 1.9 2007 93.681 2,600 2.9% 904 1.1% 2.9 7.943 8.5% 1.6 2006 91.082 2,331 2.6% 1,946 2.3% '1.2 6,247 6.9% 0.3 2005 88,751 1,313 1.5% 3,121 3.9% 0.4 5.862 6.6% (2.2) Source; Costar The Miami office inventory has grown slowly over the last few years, primarily due to the limited amount of land available for new construction. The vacancy factor has remained at Tess than 10% since 2014. Vacancy is projected to remain at Tess than 10% for the next five years. Rents have grown steadily since 2005 as shown below. Rents are projected to continue to increase over the next few years. MARKET RENT HISTORY AND FORECAST Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Per SF $37.34 $36.92 $36.45 $35 80 $35.05 $34.35 $33,54 $31.74 $29.56 $28.02 $27.51 $26.74 $26.83 $28.27 $30.98 $30.98 $27.89 $25.19 Gross Asking Rent Index 121 119 118 116 113 111 108 102 95 90 89 86 87 91 100 100 90 81 Source; CoStar % Growth Vs Hist Peak 1.1% 8.7% 1-3% 7.5% 1.8% 6.1% 2.1% 4.2% 2.0% 2.0% 2.4% 0.0% 5.7% -24% 7.4% -7.6% 5.5% -14.0% 1.9% -18.4% 2.9% -19.9% -0.3% -22.2% -5.1%-2.1.9% -17.7% 0.0% -9.8% 11.1% -9.8% 10.7% -18.8% 6.1 °/ -26.7% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 52 Miami International Links - Melreese Country Club Land 18-114-02 MARKET SALES HISTORY MARKET ANALYSIS Volume Price Cap Rates Year Sales SF Volume Turnover Median Per SF Avg Price Index Overall 2017 145 4,514,653 $965,488 4.4°% $216.51 $8.323,175 152 5.0% 2016 247 8,430,777 $2.367.132 8.2% $265.00 $7.916.830 144 5 0% 2015 310 6,949,451 $1,982,155 6.8% $247.60 55,864 364 136 5.2% 2014 289 8.768,958 $1,625,831 8.6% $206.52 $5.194,360 128 5.3% 2013 243 5,413,764 $1.188.564 5.3% $200.00 $4,502.136 117 5.7% 2012 238 4.638,879 5716,733 4.6% $169.02 53,062,962 106 6.3% 2011 177 4,980.734 $640,200 4.9% $143.70 $3.596,629 93 7.2% 2010 152 4,175,102 $536,996 4.2% 5161,25 $3,628,351 84 7.9% 2009 108 1,929,588 $373,337 2.054 $236.42 $3,274,889 85 7.9% 2008 171 6,022,492 $1.322,072 6.3% $323.49 $5,246,316 100 7.054 2007 196 6,922,807 51,135,436 7.4% $298.31 $4,596,908 120 5.7% 2006 199 8,814,776 $1,930,564 9.754 $256.88 $8,696,233 114 5.6% 2005 202 7,649,842 $1,169,324 8.6% 5204.00 $4,772.753 98 6.354 Source: CoStar JOSEPH 1, BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 53 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS MARKET ANALYSIS The following information was compiled from published sources and is used in conjunction with primary and secondary data to analyze the market trends impacting the value of the subject property. NATIONAL APARTMENT MARKET - PWC According to the PwC Real Estate Investor Survey, 1st Quarter 2018: The consensus among surveyed investors is that the national apartment market will remain strong in 2018; however, oversupply concerns exist for high -end product and certain geographies. "Fundamentals will be sturdy outside the luxury segment, and we expect downward pressure on rents at the top of the market," says a participant. Another remarks, "There is some room for solid rent growth, but certain areas are struggling with new supply." Trends show that this sector is showing signs of softening. At yearend 2017, the overall vacancy rate sat at 4.5%, up from 4.2% in 2016, as per Reis. At the same time, its average effective rent growth dipped from 3.9% to 3.6%. By the end of this year, Reis forecasts vacancy to rise to 5.0% and effective rent growth to slip to 3.3% amid the delivery of 265,088 new units. "We're expecting performance to vary by city as new supply is delivered," states an investor. The increase in this market's average overall cap rate and the decline in its average initial -year market rent change rate this quarter emphasize participants' watchful outlook for apartments. Over the next six months, 58.0% of investors foresee cap rates holding steady while the balance expects cap rate increases of as much as 50 basis points. {pg. 49} Key Survey Stats National Apartment Market First Quarter 2018 Current Quarter Last Qua rter Total Vacancy Assumption 3.0%-10.0% 3.0%-10.0% Average 6.00% 6.00% Months of Free Rent (1-yr lease) 0-2 0-2 Average LO 1.0 % of participants using 83.00% 78.00% Market Conditions Favor Buyers 0.00% 0.00% Sellers 50.00% 33.00% Neither 50.00% 67.00% Source: PwC Real Estate Investor Survey, lst Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 54 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS National Market Yield Rates for Real Estate Investments National Apartment Market First Quarter 2018 Discount Rate (I RR) Average Overall Cap Rate (OAR) Average Residual Cap Rate Average Market Rent Change Rate Average Expense Change Rate Average Ma rketi ng Time Range Average Current Quarter Last Quarter Year Ago 5.25%-10.00% 5.50%-10.00% 5.50%-10A0% 7.23% 7.36% 7.30% 3.75%-8.50% 5.33% 4.00%-8.50% 5.66% (2.00%)-5.00% 2.42% 2.0O%-3.00% 2.71% 1-9 months 3.6 3.50%-7.50% 5.32% 4.25%-7.75% 5.74%© 3.50%-7.50% 5.26% 4.25%-7.50% 5.71%© (1.00%)-5.00% 0.00%-5.00% 2.58% 2.85% 2.00%-3.00% 2.72% 1-9 months 3.8 2.00%-4.00% 2.78% 1-9 months 3.8 Source: PwC Rea I Estate Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES. INC. AEA. ESTATE VALUATION AND CONSULTING 55 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS NATIONAL APARTMENT MARKET - REALTYRATES.COM According to the RealtyRates.com Investor Survey, 1st Quarter 2018, 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 (NOl) 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 Apartments - Ali Types First Quarter 2018 Item Input Minimum Spread Over 10-Year Treasury 0.72% Debt Coverage Ratio 1.10 Interest Rate 3.07% Amortization 40 Mortgage Constant 0.043444 Loan -to -Value Ratio 90% Equity Dividend Rate 6.41% Maximum Spread Over 10-Year Treasury 6.29% Debt Coverage Ratio 1.86 Interest Rate 8.64% Amortization 15 Mortgage Constant 0.119156 Loan -to -Value Ratio 50% Equity Dividend Rate 15.58% Average Spread Over 10-Year Treasury 2.66% Debt Coverage Ratio 1.43 Interest Rate 5.01% Amortization 26 Mortgage Constant 0.068933 Loan -to -Value Ratio 73.2% Equity Dividend Rate 11.45% OAR DCR Technique 1.10 x 0.043444 x 0.90 = 4.30% Band of Investment Technique Mortgage 90% x 0.043444 = 0.039099 Equity 10% x 0.064055 = 0.006405 OAR 0.039099 + 0.006405 4.55% Surveyed Rates 4.32% DCR Technique 1.86 x 0.119156 x 0.50 = 11.08% Band of Investment Technique Mortgage S0% x 0.119156 = 0.059578 Equity 50% x 0.155760 = 0.077880 OAR 0.059578 + 0.077880 13.75% Surveyed Rates 13.06% DCR Technique 1.43 x 0.068933 x 0.73 = 7.22% Band of Investment Technique Mortgage 73% x 0.068933 = 0.050462 Equity 27% x 0.114493 = 0.030678 OAR 0.050462 + 0.030678 = 8.11% Surveyed Rates 8.55% Source: RealtyRates.com Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. PEAL ESTATE VALUATION AND CONSULTING 56 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS RealtyRates.com Investor Survey Apartments - Garden/Suburban Townhouse First Quarter 2018 Item Input Minimum Spread Over 10-Year Treasury 0.72% Debt Coverage Ratio 1.10 interest Rate 3.07% Amortization 40 Mortgage Consta nt 0.043444 Loan -to -Value Ratio 90% Equity Dividend Rate 6.41% Maximum Spread Over 10-Year Treasury 5.14% Debt Coverage Ratio 1.61 Interest Rate 7.49% Amortization 15 Mortgage Constant 0.111173 Loan -to -Value Ratio 60% Equity Dividend Rate 14.38% Average Spread Over 10-Year Treasury 2.93% Debt Coverage Ratio 1.31 Interest Rate 5.28% Amortization 28 Mortgage Constant 0.069006 Loan -to -Value Ratio 75.00% Equity Dividend Rate 9.99% OAR DCR Technique 1.10 x 0.043444 x 0.90 = 4.30% Band of Investment Technique Mortgage 90% x 0.043444 = 0.039099 Equity 10% x 0.064055 = 0.006405 OAR 0.039099 + 0.006405 = 4.55% Surveyed Rates 4.32% DCR Technique 1.61 x 0.111173 x 0.60 = 10.74% Band of Investment Technique Mortgage 60% x 0.111173 = 0.066704 Equity 40% x 0.143760 = 0.057504 OAR 0.066704 + 0.057504 = 12.42% Surveyed Rates 11.80% DCR Technique 1.31 x 0.069006 x 0.75 - 6.75% Band of Investment Technique Mortgage 75% x 0.069006 = 0.051754 Equity 25% x 0.099922 = 0.024981 OAR 0.051754 + 0.024981 = 7.67% Surveyed Rates 7.82% Source: RealtyRates.com Investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 57 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS RealtyRates.com Investor Survey Apartments - Hi-Rise/Urban Townhouse First Quarter 2018 Item Input Minimum Spread Dver 10-Year Treasury 0.92% Debt Coverage Ratio 1.35 Interest Rate 3.27% Amortization 30 Mortgage Constant 0.052357 Loan -to -Value Ratio 75% Equity Dividend Rate 6.41% Maxim um Spread Over 10-Year Treasury 6.29% Debt Coverage Ratio 1.86 Interest Rate 8.64% Amortization 15 Mortgage Constant 0.119156 Loan -to -Value Ratio 50% Equity Dividend Rate 15.58% Average Spread Over 10-Year Treasury 3.61% Debt Coverage Ratio 1.61 Interest Rate 5.96% Amortization 23 Mortgage Constant 0.080773 Loan -to -Value Ratio 68% Equity Dividend Rate 10,53% OAR DCR Technique 1.35 x 0.052357 x 0.75 = 5.30% Band of Investment Technique Mortgage Equity OAR Surveyed Rates 75% x 0.052357 = 0.039267 25% x 0.064055 = 0.016014 0.039267 + 0.016014 = 5.53% 5.25% DCR Technique 1.86 x 0.119156 x 0.50 Band of Investment Technique Mortgage Equity OAR Surveyed Rates = 11.08% 50% x 0.119156 = 0.059578 50% x 0.155760 = 0.077880 0.059578 + 0.077880 = 13.75% 13.06% DCR Technique 1.61 Band of Investment Technique Mortgage Equity OAR Surveyed Rates x 0.080773 x 68% x 0.080773 = 33% x 0.105322 = 0.054522 + Source; RealtyRates.com Investor Survey, 1st Quarter 2018 0.68 = 8.75% 0.054522 0.034230 0.034230 = 8.88% 8.78% 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 Apartments - Discount Rates First Quarter 2018 Property Type Apa rtments Garden/Suburban Hi-Rise/Urban TH Student Housing New Development Min. Max. Avg. 6.22% 6.22% 7.04% 6.79% 15.51% 14.31% 15.51% 15.11% 10.75% 10.04% 10.85% 11.16% Min. 5.41% 5.41% 6.12% 5.91% Acquisitions Max. 13.49% 12.45% 13.49% 13.15% Avg. 9.36% 8.73% 9.44% 9.71% Recapitalizations Min. 6.16% 6.16% 6.97% 6.72% Max. 15.35% 14.17% 15.35% 14.96% Avg. 10.65% 9.94% 10.74% 11.05% Source: RealtyRates.com investor Survey, 1st Quarter 2018 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 58 Miami International Links - Melreese Country Club Land 18-114-02 RealtyRates.com Investor Survey Apartments - Equity Dividend Rates First Quarter 2018 Property Type Min. Max. Avg. Apartments 6.41% 15.58% 11.45% Garden/Suburban TH 6.41% 14.38% 9.99% Hi-Rise/Urban TH 6.41% 15.58% 10.53% Student Housing 6.41% 14.98% 10.26% Source: RealtyRates.com Investor Survey, 1st Quarter 2018 MARKET ANALYSIS The following table summarizes sales, income, occupancy, and operating expense data, as well as relevant rates and ratios, for class A and 8 apartment properties in the continental U.S. Apartment properties are typically garden style, 90-300 units; however, mid- and high-rise buildings are included in some markets, e.g., New York and San Francisco. 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 Apartments - 90+ Units First Quarter 2018 4Q2017 3Q2017 % Change Operating Data Income Asking Rent $1,334 $1,320 1.0% Effective Rent $1,231 $1,218 1.1% Other Income $4 $4 1.0% Total Income $1,235 $1,222 1.0% Vacancy Rate 5.0% 4.9% 1.5% Effective Gross Income (EGI) $1,173 $1,162 1.0% Expenses Total Expenses $468 $466 0.4% Expense Ratio 39.89% 40.06% -0.4% Net Operating Income (NOI) $705 $697 1.2% Investment Data Average Sale Price Overall Cap Rate {OAR) $101,855 $101,339 8.3% 8.2% Gross Rent Multiplier (GRM) 6.9 6.93 Effective Gross Income Multiplier (EGFM) 7.23 7.27 Source: RealtyRates.com Market Survey, 1st Qua rter 2018 0.5% 0.7% -0.5 % -0.4% MIAMI APARTMENT MARKET ANALYSIS According to the CoStar Multi -Family Market Report, Miami is starting to experience softening fundamentals after several years of growth. Construction has escalated in the past several years, and vacancies have increased every year since 2013. Miami currently has almost 15,000 units under construction and around 9,000 units set to deliver in 2018. More units will have been delivered in the last three years than the last 15 years combined. Despite this remarkable supply pipeline, demand has done a good job of keeping pace, and many of these new units have been absorbed. Rent growth has stayed positive, though it has decelerated from the record - breaking highs seen in early 2015. Annual growth closer to the historical average may become the new normal in the face of Miami's ongoing supply additions. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 59 Miami International Links - Melreese Country Club Land 18-114-02 KEY INDICATORS MARKET ANALYSIS Current runner Units Vacancy Rate Asking Rent Effective Rent Absorption Unite Delivered Unite Under Conetr Units 4 8 5 Slar 33,067 12-6% $2.022 $1,975 703 610 13,427 3 Star 31.178 4.4% $1,435 51,410 104 0 263 1 8 2 Star 79,281 4.1% $1,061 $1.050 3 0 D Market 143,526 6.1% S1,517 S1,489 810 610 13,690 Annual Trends 12 Month Peak Forecast peak When Trough When Average Average vacancy Change (YOY) 0% 5 2% , 7.4 7.1% 2000 02 3.0% 2006 02 Absorption Units 3,950 1,315 1 jp,0 3,918 2016 04 {1,115) 2007 02 Delivered Units 4,244 1,603 3,465 5,689 2017 01 48 2002 04 Demolished Units 17 264 2 1,082 2012 02 0 2002 04 Asking Rent Growttl {YOYI 1.8% 2.0% 1.4% 7.2% 2007 01 -5.716 200c1 02 Effective Rent Growth (YOYI 1.6% 2-0% 1.5% 7.1% 2007 01 -5.8% 2009 02 Sales volume $1.5 B 5573.4 M N/A $1.7 B 2016 04 1137.5 M 2008 04 Source: CoStar Fundamentals The overall vacancy for the metro has increased about 100 basis points in the last two years, and is currently hovering around 6%. This is higher than the metro's historical average but to be expected considering the amount of new supply being delivered. It should be noted that for the majority of the expansion, Miami's vacancy has trended under the national average. However, it is expected to surpass the nation toward late 2018. Miami has seen more deliveries come on line in the last three years than in the prior 15 years combined, and there is no sign of a slowdown in the immediate future. The new projects in Miami have been predominantly rated as 4 & 5 Star, with condo -style finishes, and increasingly robust amenities. The concentrated construction of similar product has not surprisingly pushed vacancy higher within the top tier. Vacancy in 4 & 5 Star properties is dramatically higher than in lower -rated properties, peaking at around 15% in early 2017 and more recently settling down to around 13%. This is about 3% higher than the national average for 4 & 5 Star product, which is also seeing an elevated vacancy rate for this class compared to 3 Star and below product. Considering the amount of new supply that is being added to the metro, the metro is seeing very reasonable lease -up. In 2017, apartment communities were leasing up at an average of 20 units a month with two weeks of concessions. This is comparable to 2016 vintage projects, for which units leased at a rate of about 21 units a month and concessions were closer to three weeks. This stable demand can be partially attributed to a late surge in job growth in the metro. Year -over -year job growth in Miami is currently outpacing the national average and is expected to continue to do so for the foreseeable future. Employment growth in the professional and business and health and education sectors has been good and is actually expected to moderately outpace the national average through the forecast period. Considering these types of jobs are generally higher paying than the metro's median wage, there may be enough demand to keep apartment vacancy from spiking to levels that would require a reversal of rents. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 60 Miami International Links - Melreese Country Club Land 18-114-02 ABSORPTION, NET DELIVERIES & VACANCY MARKET ANALYSIS 3.500 3.000 2.500 2.000 1.500 1.000 500 0 -500 Forecast 8.5 1 8.0 % 7.5 To 7.0 % 6.5 % 6.0 % 5.5 % 5.0 % 4.5 % 1.000 flu I '11'11' 1' '1 1 "1" 1 .11 "1' 4.0°ro 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■ Absorption ■ Net De vanes ■ 'Vacancy s United States Vacancy Source: CoStar Supply Units under construction equal 10% of the current inventory in Miami, versus 4% for the nation as a whole. The majority of new buildings have been 4 & 5 Star luxury apartments, with the majority going up in Downtown Miami, Wynwood, South Miami, and Doral. A small cluster near the intersection of Highway 1 and the Palmetto Expressway popped up in 2017. Development for 2018 is again concentrated in downtown, and there are also a few projects on North Beach and in the Coral Way neighborhood. Supply in Miami is still going strong. Over 5,500 units delivered in 2017, setting a new historic high for the metro, and 2018 is expected to be supply -heavy as well, with around 9,000 units underway. Three of these will include over 500 units. These include Sae Mia, a high-rise tower near the Oleta River State Park in North Miami that will include both condos and apartments; Square Station, a new high-rise in the heart of the Arts and Entertainment District; and the apartment portion of the 64-story Panorama Tower development in Brickell. Panorama Tower, which will be Florida's tallest building when it is complete, may not hold the title for long. Florida East Coast Realty intends to follow up the project with the even more massive One Bayfront Plaza, a mixed -use tower expected to break ground in 2019. Under the current plans, One Bayfront Plaza would rise more than 1,000 feet and include as many as 900 apartment units. Needless to say, the vast majority of projects of this scale are concentrated in the Brickell/Downtown Miami Submarket, where rents are typically high enough to justify such high -end construction. JOSEPH J. BLAKE AND ASSOCIATES. INC.. REAL ESTATE VALUATION AND CONSULTING 61 Miami International Links - Melreese Country Club Land 18-114-02 DELIVERIES & DEMOLITIONS MARKET ANALYSIS 3,000 2,500 2.000 500 ,000 500 0 Forecast Mi. 2012 2013 2014 2015 2016 2017. 2018 2019 2020 2021 • Deliveries i Demolished • Net Deliveries Source: CoStar UNDER CONSTRUCTION Pi c p=rty Name/Address Rating SoLe Mia 1 15045 Biscayne Blvd * * * * 2 Panorama Tower Apartm.., 1101 Brickell Ave 3 Park Line Towers ***** 250 NW 1stS1 4 5 6 7 Square Station 1424 NE Miami PI Art Plaza 58 NE 14th St River Landing 1400 North River Dr Varadora Residential 18801 Collins Ave Units Stories Start Complete 878 20 Sep-2017 Sep-2018 821 64 Mar-2015 Apr-2018 816 33 Oct-2017 Oct-2019 710 34 Sep-2016 Oct-2018 657 36 Jan-2018 Mar-2019 507 5 Jul-2017 Jun-2019 490 - Oct-2017 Sep-2018 Source: CoStar DeveloperlOwner Turnberry Associates Turnberry Associates Florida East Coast Realty, LLC Florida East Coast Realty, LLC All Aboard Florida Florida East Coast Industries, Inc. The Melo Group The Melo Group The Melo Group Hollinger Penabad Companies Hellinger Penabad Companies Chateau Group Chateau Group JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 62 B 9 10 11 12 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Miami International Links - Melreese Country Club Land 18-114-02 UNDER CONSTRUCTION MARKET ANALYSIS Property Nameraorhew X Miami 230 NE 4th St Seventh Street Apartments 58 NE 7th St Midtown 6 3101 NE lstAve LUMA at Miami Woridce. 129 NE 8th Ave Modern Metro Oadeland... 8215 SW 72nd Ave 13 Solitair Brickelr Apartme.._ * # 86SWBthSt 14 World Trade Center Of T... * * * * 340 Biscayne Blvd Midtown 8 2901 NE 1st Ave 214.5 NE 164th St Biscayne 27 2701 Biscayne Blvd Soleste Blue Lagoon 5375 NW 7th St The Wave 659-737 Alton Rd Park View 9420-9500 SW 174th St Modern Edgewater 410NE25thSt Motion at Dadeland 6800 SW 84th St Wynwood25 215-339 NW 24th St The Gallery at West Brio._ 201 SW 10th Ave Village at Deering Groves 25640 SW 137th Ave Oasis at Blue Lagoon 6700 NW 7th St Atlantic Palmetto Bay 17945 SW 97th Ave Masson at Brie -lien 1100SW2ndAve Rating units Stories **** - 464 31 * * * * 450 43 ***** 447 32 tt * * * 429 44 **** 422 25 420 48 400 77 ***** 387 28 * * * * * 349 8 * **** 330 36 'Ar * * * 330 8 * * * * 321 50 * * * * • 308 6 **** . 297 8 * * * * 294 25 * *** 289 8 • *** 287 - **** 281 3 * 'lit * * 272 8 *** 271 * * * * 262 23 Source: CoStar Jun-2016 Dec-2016 Sep-2017 Jul-2017 Dec-2017 Jun-2015 Aug-2016 Jan-2017 Oct-2017 Jul--2017 Jan-2018 Mar-2017 Feb-2018 Feb-2018 Aug-2016 Jul-2017 Apr-2017 Jan-2018 Dec-2017 Nov-2017 Jun-2017 start Complete Developer/Owner Property Markets Group, Inc. Property Markets Group, Inc. Falcone Group Falcone Group Magellan Development Group, Ltd. Magellan Development Group, Ltd. Sep-2018 Aug-2018 Dec-2019 Feb-2020 Oct-2019 Apr-2018 Aug-2019 Apr-2018 Aug-2018 Dec-2018 Jun-2019 ZOM Florida. Inc. Mill Creek Residential Trust LLC Mill Creek Residential Trust LLC ZOM, Inc. ZOM, Inc. Regalia Developers Regalia Developers Wood Partners Wood Partners Eden Multifamily Dba Eden-Mag Rivergate Companies TRG IV Member, LLC Sakor Development Estate Investments Group Estate Investments Group Dec-2018 Crescent Freights Jan-2019 The Pugliese Corporation Apr-2019 Sep-2018 Jan-2019 Apr-2018 Dec-2018 Jun-2019 Sep-2018 Jun-2019 Mill Creek Residential Trust LLC Mill Creek Residential Trust LLC Adler Realty Services, LLC Adler Realty Services, LLC East End Capital Partners, LLC City of Miami Community Devela... AHS Development Group AHS Development Group Pinnacle Housing Group Pinnacle Housing Group Fanjul Corp Fanjul Corp ZRS Management ZOM, Inc. JOSEPH J. BLAKE AND ASSOCIATES. INC.. REAL ESTATE VALUATION ANO CONSULTING 63 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS Rents The overall rate of rent growth has decelerated significantly in the last two years. If we look specifically at 4 & 5 Star properties, rent growth has actually been cooling off since 2012. Vacancies for 4 & 5 Star properties hit an all-time peak of 13% in 2016 and are expected to remain high for the next couple years due to the wave of properties working through lease -up. Correspondingly, overall rent growth is forecast to slow to its historical average of roughly 2%, while growth among 4 & 5 Star product is expected to decelerate to half of that rate. This is in line with nationwide trends. Miami is currently in the top 15 of the most expensive metros in the nation. Asking rents per unit are at a 20%premium over the national average. Since Miami's median household income is more than $10,000 below the national average, purchasing a single-family home can be difficult for many residents. In the past five years, average incomes in the metro have increased about 9%, while rents have cumulatively risen more than 20%. According to data from the American Community Survey, both renter and owner households of all ages in Miami are considered overburdened. Nationwide, over 30% of households spend more than 30% of their incomes toward gross housing costs. In Miami, households are spending nearly 50% of their incomes towards gross housing costs. Millennials particularly feel the squeeze, as a higher share of them are renters than owners in Miami, and they are also more likely to be living with a parent or relative than Millennials elsewhere in the nation. Miami experiences the most job growth in the leisure and hospitality industry and is also currently experiencing significantly higher growth in trade, transportation, and utilities. These are typically lower - paying, blue-collar jobs. The rapid rise of rent earlier in the cycle created a large gap between incomes and rents for most of Miami's citizens. In the near term, rents are likely to continue to grow more slowly as even more construction in the pipeline will keep competition alive and well. ASKING RENT PER UNIT & RENT GROWTH $1 700 51.600 51.500 51.400 51, 300 $1.200 51,100 Si 000 Forecast 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■ Rent Growth WY Asking Renl Per Unit • Effective Rent Pcr Unit United States Asking Rent Per tine Source; CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 64 Miami International Links - Melreese Country Cub Land 18-114-02 ASKING RENT PER UNIT BY BEDROOM MARKET ANALYSIS S2,200 52,000 S 1,800 Si ,600 51.400 $1.200 S 1.000 S800 1 I i 1 2012 2013 2014 2015 2016 2017 • Studio 1 Bed ■ 2 Bed 3 Berl Source: CoStar Sales Investment in Miami has been elevated the last three years, with 7% of inventory turning over on average. And despite continuously climbing vacancies and slowing rent growth, pricing has climbed to about $180,000 per door. The leading submarket for investment volume in 2017 was Brickell/Downtown Miami, followed closely by Coral Gables. One of the largest trades in the metro during the last year was the sale of the Manor at Cityplace Doral in the Miami Springs/Doral Submarket, In August, the 4 Star 398-unit property was purchased by TA Realty for$135 million. The previous owner was a joint venture of PGIM Real Estate and the Related Companies. The property represents the rental portion of the larger mixed -use center known as CityPlace Doral, which includes more than 300,000 SF of retail space. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 65 Miami International Links - Melreese Country Club Land 18-11i4-02 SALES VOLUME 8 PRICE PER UNIT INDEX MARKET ANALYSIS $200.000 $180.000 $160.000 $140 000 - S120 000 $100.000 $80 000 S60 000 $40.000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales Volume ■ Pnce/Uni • 'United States Prrce'Urut Source;Costar MARKET STATISTICS SUBMARKET INVENTORY S800 $700 $600 $500 $400 $300 $200 $100 $0 Inventory 12 Month Deliveries Under construction No. Submarket Badge Units % Market Rank Bldg Units Percent Rank Bldg Units Percent Rank 1 Aventura 18 2,147 1.5% 11 0 0 0% 1 490 22.8% 7 2 Bal Harbor/South Beach 860 15,497 10,8% 6 0 0 0% 4 362 2.3% 9 3 Coconut Grove 111 1,900 1.3% 12 1 15 0.8% 9 2 272 14.3% 10 4 Coral Gables 307 7,075 4.9% 9 2 640 9.0% 3 2 381 5A% 8 5 Downtown Miami 1,498 24,843 17.3% 1 4 726 2.9% 2 21 7,816 31.5% 1 6 HiaieahfMiami Lakes 699 18,282 12.7% 2 1 100 0.5% 8 1 226 1.2% 11 7 1ornesteadfSouth Dade 175 7,359 5.1% 8 2 571 7.8% 4 6 1,124 16.3% 2 8 Kendall 80 13,443 9.4% 7 3 548 4.1% 5 3 866 6.4% 4 9 Miami GardensJOpa-Locka 689 17,571 12.2% 3 3 485 2.8% 6 2 659 3.8% 5 10 Miami Springs/Dora) 350 16,502 11.5% 4 3 838 5.1% 1 3 616 3.7% 6 11 North Miannr Beach 738 15,717 11,0% 5 0 0 0% - 1 878 5.6% 3 12 Outlying Miami -Dade Co. 3 539 0.4% 13 2 323 59.9% 7 0 0 0% - 13 Westchesterl7amiami 36 2,593 1.8% 10 0 0 0% - 0 0 0% Source;Costar The subject is located in the Miami Springs/Loral submarket, which includes 350 buildings, and 16,502 units. There has been delivery of three new apartment buildings in the submarket, for an increase of 838 units. There are three buildings under construction, to have 616 units. With 11.5% of the total Miami inventory, the subject's submarket is the fourth largest in the area JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 66 Miami International Links - Melreese Country Club Land 18-114-02 SUBMARKET RENT MARKET ANALYSIS Asking Rents Effective Rents No. Submarket Per Unit Per SF Rank Yr. Growth Per Unit Per SF Rank Yr. Growth Concession Rank 1 Aventura $1,818 $1.75 8 4.0% $1,809 $1.74 7 5.4% 0.5% 13 2 Bal Harbor/South Beach $1,496 $2.02 4 -04% $1,485 $2.00 4 -0.1% 0.79% 12 3 Coconut Grove $1,632 $2.18 2 2.2% $1.535 $2.04 3 2.7% 6-0% 1 4 Coral Gables $1,856 $2.19 1 -3.1% $1,786 $2.10 1 -5.4% 3.8% 2 5 Downtown Miami $1,869 $2.11 3 1.7% $1,833 $2.06 2 1.9% 1.9% 6 6 HialeahlMiami Lakes $1,310 $1.50 11 2.7% $1,289 $1.47 11 2.0% 1.7% 7 7 Homestead/South Dade $1.196 S1.34 13 3.4% $1,170 $1.31 13 1.8% 2.1% 5 8 Kendall $1,584 $1.72 9 1.5% $1,559 $1.70 9 1.6% 1.6% 8 9 Miami GardenslOpa-Locka $1,182 $1.46 12 3.0% $1,168 $1.44 12 2.5% 1.1% 10 10 Miami SpnngslDorat $1,720 $1.81 6 2.2% $1,674 $1.76 6 2.2% 2.7% 4 11 North Miami Beach $1,239 $1-53 10 2.5% $1,227 $1.51 10 3.2% 1.0% 11 12 Outlying Miami -Dade Co. $1,950 $1.84 5 13.2% $1,926 $1.81 5 11.8% 1.2% 9 13 Westchester/Tarr/lam $1,356 $1.76 7 5.2% $1,316 $1.71 8 4.3% 2.9% 3 Source: Costar The subject submarket's average asking rent of $1,720 or $1.81/SF represents an increase of 2.2% over the prior year. The rents are relatively affordable, by local standards. SUBMARKET VACANCY & ABSORPTION Vacancy 12 Month Absorption No. Submarket Units Percent Rank Units % of Inv Rank Constnrct. Ratio 1 Aventura 142 6.6% 7 205 9.5% 8 2 Bal Harbor/SotA Beach 857 5_5% 4 282 1.8% 5 3 Coconut Grove 130 6.9% 8 52 2.8% 11 4 Coral Gables 801 11.3% 12 238 3.4% 7 2.7 5 Downtown Miami 1,875 7.5% 11 711 2.9% 2 0.7 6 HialeahJMiamr Lakes 400 2.2% 1 54 0.3% 10 1.9 7 Homestead/South Dade 277 3.8% 3 531 7.2% 4 1.1 8 Kendall 926 6.9% 9 650 4.8% 3 0.7 9 Miami Gardens/Opa-Locka 1,021 5.8% 5 96 0.5% 9 5.1 10 Miami Spnngs/Dural 1,228 7.4% 10 1,147 7.0% 1 0.7 11 North Mrarsi Beach 939 6.0% 6 (279) -1.8% 13 - 12 Outlying Miami -Dade Co. 65 12.0% 13 258 47.9% 6 1.3 13 Westchester/Tamrami 67 2.6% 2 31 1.2% 12 - Source: Costar The subject's submarket has a vacancy factor or 7.4%, which is the fourth highest in Miami -Dade County. The lowest submarket, Hialeah/Miami Lakes, has a vacancy rate of 2.2%, while the highest vacancy rate of 12.0% is located in Outlying Miami -Dade County. The subject's submarket has absorbed 1,147 units over that past 12 months. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALLIAT#011 A 10 CONSULTING 67 Miami International Links - Melreese Country Club Land 18-114.02 MARKET FUNDAMENTALS HISTORY AND FORECAST MARKET ANALYSIS Inventory Net Absorption Vacancy Year Unite Growth % Growth Unite % Growth Constrct. Ratio Units Percent Ppts Chg 2022 141,200 1,264 0.9% 1,126 0.8% 1.1 7,557 5.4% 0.1 2021 139,936 973 0.7% 828 0,6% 1.2 7,419 5.3% 0.1 2020 138,963 1,020 0.7"% 1,217 0.9% 0.8 7.274 5.2% (0.2) 2019 137,943 3,282 2.4% 4,054 3.2% 0.8 7,471 5.4% (0.7) 2018 134,661 5.720 4.4% 6,128 5.1% 0.9 8,244 6.1% (0.6) 2017 128,941 4,465 3.6% 3,247 2.8% 1.4 8,652 6.7% 0.7 2016 124,476 5.064 4.2% 3,766 3.3% 1.3 7,434 6.0% 0.8 2015 119,412 3,676 3.2% 3,039 2.8% 1.2 6.136 5.1% 0.4 2014 115,736 2,933 2.6% 2,496 2.3% 1.2 5,499 4.8% 0.3 2013 112,803 '1,609 1.4% 2,297 2.2% 0.7 5,062 4.5% (0.7) 2012 111,194 1,004 0.9% 621 0.6% 1.6 5,750 5.2% 0.3 2011 110,190 797 0.7% 746 0.7% 1.1 5.366 4.9% 0.0 2010 1.09,393 635 0.6% 1,407 1.4% 0.5 5.315 4.9% (0.7) 2009 108,758 1.193 1.1% 1.476 1.5% 0.8 6,088 5.6% (0.3) 2008 107,565 560 0.5% (469) -0.5% - 6,370 5.9% 0.9 2007 107.005 1,743 1.7% (153) -0.2% - 5,341 5.D% 1.7 2006 105,262 149 0.1% 53 0.1% 2.8 3,445 3.3% 0.1 2005 105.113 173 0.2% 2,12E 2.1°% 0.1 3.348 3.2% (1.9) Source: CoStar The Miami -Dade County apartment inventory has grown slowly over the last few years, primarily due to the limited amount of land available for new construction. The vacancy factor has remained at less than 7% since 2005. Vacancy is projected to remain at less than 6.5% for the next five years. Rents have grown steadily since 2005 as shown below. Rents are projected to continue to increase over the next few years. MARKET RENT HISTORY AND FORECAST Asking RerU Year Per Unit Per SF 2022 $1.630 $1.96 2021 81,598 $1.92 2020 $1,566 $1.89 2019 $1,531 $1.84 2018 $1,495 $1.80 2017 51,461 $1.76 2016 $1,445 $1.72 2015 $1,412 $1.70 2014 $1,355 $1.64 2013 $1,316 $1.61 2012 $1,271 $1.56 2011 $1,227 $1.51 2010 $1,212 $1.49 2009 51,191 $1.47 2008 $1,234 $1.53 2007 $1,279 $1.58 2006 $1.247 $1.57 2005 S1,165 $1.46 Index Effective Rent % Growth Per Unit Per SE % Growth Concessions 132 2.0% $1.607 $1.94 2.0% 1.5% 129 2.1% 51,575 $1.90 2.0% 1.4% 127 2.3% , $1,544 $1.86 2.3% 1.4% 124 2.4% $1,509 $1.82 2.7% 1.5% 121 2.3% $1,468 $1.77 2.6% 1.8% 118 1.1% $1,43I $1.72 1.7% 2.1% 117 2.4% $1,408 $1.67 1.5% 2.6% 114 4.2% $1,387 $1.67 3.8% 1.7% 110 3.0% $1,337 51.62 2.8% 1.4% 107 3.6% $1.300 $1.59 3.9% 1.3% 103 3.6% $1,252 $1.53 3.6% 1.5% 99 1.3% $1,208 $1.48 13% 1.6% 98 1.7% $1,193 $1.47 1.8% 1.6% 97 -3.5% $1,172 $1.44 -3.5% 16% 100 -3.5% $1,214 $1.50 -4_1% 1.6% 104 2.6% $1,266 $1.57 2.4% 1.0% 101 7.0% 51,236 $1.55 7.0% 0.8% 94 4.6% $1,156 $1.45 4.8% 0.8% Source: CoStar JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION At(D CONSULTING 68 Miami International Links - Melreese Country Club Land 18-114-02 MARKET SALES HISTORY MARKET ANALYSIS Volume Price Cap Rates Year Sales Units Volume Turnover Median Per Unit Avp Price Index Overall 2017 185 9,086 $1,423,354 7.0% $131,250 $9,065,948 153 5.2% 2016 363 15.412 51,927,1099 12.4% $118,750 $5,443,812 154 5.0% 2015 378 18,585 $1.185,163 15.6% $100.295 53,301,290 146 5-1% 2014 447 16,030 $944,499 13.9% $91,671 $2,146,590 138 5.3% 2013 376 10,615 $854,451 9.4% $85,333 $2,527,962 128 5.5% 2012 325 13,871 $841,917 12.5% S75,000 $2.943,765 114 5.9% 2011 243 9,918 $386,998 9.0% S63.125 $1,869,558 97 6.7% 2010 189 44,786 $447,020 40.9% $59.250 $2,776,522 85 7.5% 2009 174 8,660 5350,374 8,0% S66,667 $2,231.682 86 7.5% 2008 149 105,578 $258,137 98.2% $72,500 $1,805,153 100 7.2% 2007 138 9,075 $606,632 8.5% $87,987 54,427,971 119 6.4% 2006 258 12.917 $1,427.891 12.3% 5100,000 $5,711,564 131 5,6% 2005 368 17,407 $1,880,227 16.613ti $95.000 $5,137.232 126 5.3% Source: CoStar CONCLUSION The subject is located in a submarket that has seen steady rent growth as well as low vacancy for the last 12+ years. A limited amount of land for new development has prevented any large-scale competition in the area. Most of the new inventory has been constructed in the Doral area of the subject's submarket. The low vacancy rate has allowed property owners to increase rental rates, with rents increasing steadily over the period analyzed. The new construction that has taken place has been immediately absorbed by the market, indicating the submarket is healthy. The population in the area continues to grow, as some suburban areas are being redeveloped with higher density apartment buildings, condominiums and townhomes. The increasing population is a positive sign for retail tenants. Overall, the factors that have led to the subject's success appear to be in place and are projected to remain in place for the foreseeable future. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 69 Miami international Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS CASE STUDIES We provided case studies of several mixed -use developments located throughout Miami -Dade County in order to determine the best proposed development mix for the subject property. Downtown Doral Downtown Doral is a master planned 250-acre community. When completed, the $1 billion project will include Doral City Hall 2,840 residential units, eight condo towers, a charter school, a 3-acre park, and Main Street, which will have more than 70 retail stores and restaurants with 180,000 square feet of retail and more than 1 million square feet of office space. The developer, Codina Partners, completed 5252 Paseo, a 203-unit 20-story tower at Downtown Doral, about a year ago. Codina Partners also sold out 5300 Paseo, a 219-unit building, the second condo tower in Codina's Downtown Doral mixed -use development, for $88 million. According to The Real Deal published 1/27/2016: The developer said mast buyers at 5300 Paseo were looking for second homes. The representative of the developer said that because of the project's charter school, they leave a portion of the building at the end to try to push local buyers. Those units require only 20 percent deposits, pending bank approval. 5300 Paseo was completed in October. Coding broke ground on a 231-unit apartment tower and a second, 52,000-square-foot phase of retail at the beginning of April 2017. A 50,000-square-foot Publlx is also underway, and the developer's representative said it's also likely that a public library will be incorporated into community. Sieger Suarez Architects designed 5300 Paseo and 5252 Paseo. Amenities at 5300 Paseo include a gym, yoga and aerobics studio, sauna and treatment areas, social room, playroom and meeting room, an infinity pool and resort -style pool deck. Next in the pipeline is 5350 Park, which is about 50 percent sold. Codina will break ground on that tower sometime during the second quarter of this year and complete it about 18 months from then. Interest at 5350 Park is coming from Ecuador, Bolivia and Peru, the developer said. Downtown Doral's roots lie in the former Koger Office Park, a series of 32 squat office buildings built in the 1.70s that housed mostly government workers. The original developer, Ira Koger, built such projects as Real Estate Investment Trusts, or REITs, all over the country, using the same model: buy cheap land in the middle of nowhere and build cheap office buildings, aiming to be the lowest -cost bidder for government tenants. That formula worked until Sept. 11, 2001. In the wake of the terrorist attacks, the U.S. government decided it no longer wanted its employees concentrated in one place, so as not to be an easy target. In one of the priciest land deals in Miami -Dade County history, Codina Partners and Lennar Corp. closed on a joint purchase of the White Course in Doral, with plans to redevelop the golf course into a mixed - use project. Codina and Lennar are the winning bidders in the sale of the 130-acre property, beating out developer and presidential hopeful Donald Trump, Shoma Group's Masoud Shojaee and others. The seller is GIC, the sovereign fund of the government of Singapore, which obtained the property through bankruptcy actions. "The property is in very high demand," said Robert Given, vice chairman of investment sales for CBRE, which marketed the property on behalf of the seller. He declined to disclose the number of bidders, but said that more than 100 investment groups had requested investment packages. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 70 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS The White Course, located in the northeast quadrant of Northwest 41st Street and Northwest 87th Avenue, is contiguous to the Trump National Dora! Resort and Codina's 120-acre Downtawn Doral mixed -use project. "It was a complicated transaction," Given told TRD. "Its use has been a golf course for a very long time and we are very sensitive in selecting a buyer that is complementary to the city of DoraL" Codina Partners and Lennar will split the acreage 50/50. Codina said he plans to build, with longtime partner Jim Carr, about 390 single-family homes and about 90 townhouses. "We're going to build something to complement Downtawn Doral," Codina said. The $1 billion mixed - use development will include 2,840 residential units spread between condominium towers, townhouses and rental units, as well as office buildings, a charter school and government center. Codina and Lennar are also partnering together on the retail and restaurants component of that project. "The Doral submarket is a very dynamic market in this real estate cycle," Given said. "And there is increasing housing demand in Doral in direct result of the redevelopment of the Trump Doral and Mr. Codina's Downtown Dora! development." White Course The 130-acre White Course's zoning allows for 2,709 residential units, 160,748 square feet of retail, 850,805 square feet of office space, 164,790 square feet of civic/municipal square feet, a school and amphitheater, according to CBRE's offering memorandum. Bids were due on July 15, 2014. The property's zoning parameters were set forth in a master development agreement between the property's predecessor owner, MSR Resort Hotel, in 2012. The agreement is in place for 20 years, and development must begin within 10 years, according to the CBRE offering. The agreement was part of a court settlement between the former owner and the city. CityPlace Doral Doral is in the midst of transforming with new construction. In addition to Downtown Doral, other projects include Shoma and the Related Group's mixed -use project Another example of development in the subject's area is CityPlace Doral, which will consist of a mix of 300,000± SF of retail space. in addition to the commercial properties, living at CityPlace Doral is in the works with shopping, upscale dining, outdoor cafes, and entertainment that includes a movie theatre. The CityPlace Apartments is the first phase of the residential portion of this new urban community. Slated to be completed by this summer, the plans show that there will be 398 apartments. The second phase of rental apartments, CityPlace Flats, will sit atop the enormous retail project. There will be 300 units in a seven - story midrise that is tentatively slated to start construction this summer. Mana Wynwood One of the largest developments planned for the Wynwood area is the Mana Wynwood SAP, located east of 1-95 and west of NW 2"d Avenue and south of NW 29th Street, The Mana Wynwood SAP would consist of a group of 24-story towers on three blocks running along Interstate 95 at the district's western border. The towers would house a contemplated international trade center that has attracted investment interest. The Mana special area plan, one of the largest ever seen in the city of Miami, represents a massive up - zoning for his holdings, with 10 million square feet of planned development — 2.5 million more square feet than would be permitted under existing Wynwood (NRD-1) zoning. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 71 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS According to The Real Deal published 4/5/2017: Developer Moishe Mana revealed that he's moving forward with the Mana Wynwood Americas Asia Trade Center & International Financial Center, a massive trade hub set to break ground by mid-2018. The trade center will have more than 10 million square feet and is aimed at facilitating trade between China and Asia, Latin America, North America and the Caribbean, according to a press release. Phase one will have 4.68 million square feet of Class A office space, showrooms, retail, hotels and public space spread across 8.5 acres, and is part of Mana's big plan for Wynwood. Mana's Special Area Plan spans more than 40 acres in the artsy neighborhood. Overall, Mana Wynwood encompasses 51,146 square feet of civic space, 3,487 residential units, 8,483 parking spaces, and a 2.5 acre privately owned park dubbed "Mana Commons." The trade center is expected to house importers and exporters, logistics companies, and trade and export agencies, and would be located along 1-95, according to its website. The developer estimates that it could create about 20,000 indirect and direct jobs in South Florida. Miami's trade industry already includes organizations like World Trade Center Miami. The Miami City Commission approved the SAP in September. The Wynwood Business Improvement District and Mana agreed to split the developer's 25-acre project into two phases. His trade -oriented towers along Northwest Fifth Avenue can only be built after receiving building permits for a large portion of the culture and education -centric eastern half on Northwest Second Avenue, which includes the Mana Commons. Kendall Town Center Property records show an entity tied to INAI Miami just paid $41.8 million for a large development site near West Kendall Baptist Hospital. Kendall Town Center is fully entitled and infrastructure has been completed with the Phase 1 development of Baptist Hospital. The Town Center will link new medical office buildings, a community center with an open-air retail center, two major department store anchors as well as a sports anchor, and numerous specialty retail tenants and restaurants. The project DRI allows for more than 731,000 SF of additional development. West Kendall Holdings, a subsidiary of the Howard Hughes Corporation, sold the nearly 70-acre parcel at the southeast corner of Southwest 88th Street and Southwest 162nd Avenue for about $14 per square foot. Previous transaction information was not available in property records. Plans for the parcel are to be determined, Eckstein said, adding that the owners intend to ask local community members what they want to see built on the site before beginning construction. "We had someone say they would love to see a Whole Foods," Eckstein said. Development of a larger mixed -use project at the site, previously called Kendall Town Center, has been stagnant. The first phase of the project, being delivered by multiple developers, was the West Kendall Baptist Hospital that opened in 2011. More than half a decade later, Gertz Builders and Developers Inc. scored a construction loan for an adjacent 53,185-square-foot retail development called The Pointe at Kendall Town Center. The West Kendall suburban area has recently been experiencing additional development and activity. In September, CVS Pharmacy bought a nearby office building for $7.5 million with plans to construct a new store and a BB&T Bank. Last month, an entity of Blackstone Group's real estate investment trust bought an apartment complex in southwest Miami -Dade for about $139 million. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 72 Miami International Links - Melreese Country Club Land 1s-114-02 MARKET ANALYSIS MidTown Miami In 2005, construction began on the "Midtown Miami" development between North 29th and 36th Street and Miami Avenue and the Florida East Coast Railway (FEC) on what was historically an FEC rail yard. The project is a large-scale, urban development that was planned with 8 high-rise residential buildings, a hotel, two parks, and a major urban shopping area, "The Shops at Midtown". Due to the collapse of the real estate bubble in 2007, only two residential buildings, and about 2/3 of "The Shops at Midtown" were built. In July 2011, plans were announced to begin construction on a new entertainment center at Midtown, including a hotel, and shops on the site of the current temporary park in the center of Midtown. Critics of Midtown state the lack of parks as a major issue. Situated in the heart of the Midtown section of Miami, the 1.2 million -square foot urban, mixed -use development is visible from the Julia Tuttle Parkway leading to Miami Beach. The Shops of Midtown Miami brings 630,000 square feet of an ideal blend of lifestyle and value retail combined with a mix specialty shops and restaurants. Once home to a rail yard and registered as brownfield property, this urban space spans three blocks near Miami's Design District. The Shops at Midtown Miami continues to be recognized as the industry's foremost example of transforming an extremely challenging site into a vibrant mix of retail, dining, residential and office uses, all contained within an urban design environment. The project was awarded the 2008 Urban Design Award by the Miami Chapter of AIA. Located in the Midtown market will be a new Hampton Inn, which will likely serve the needs of the near -by Wynwood, Design District and Midtown neighborhoods, all of which were not in their current state just 10 years ago. The construction of the new hotel speaks to the rapid transformation that has taken place in the last decade in the area. With a design that appears to be a bit of an upgrade for Hampton Inns everywhere, the new Hampton Inn on Biscayne Boulevard, designed by Kobi Karp is projected to be complete within the year. Developed by Mayan Properties, the 151-key hotel will have retail on the ground level and an eight - story parking garage in the back. It is replacing the 14-room Midtown Inn, which was demolished earlier this year. Hyde Midtown is currently under construction on the west side of the railroad tracks that run along NE 2nd Avenue. Hyde Midtown is located at Midtown Avenue and 34t" Street. When completed during the second quarter of 2018, Hyde Midtown will include 60 hotel rooms and 410 luxury condominiums. Arquitectonica designed the building, while Rockwell Group will finish the lobby, amenity floors, elevator corridors and the 60 designer suites at the development, which will have an additional 410 condos, a seventh -floor pool terrace and tennis court, and a private screening center. Hyde Midtown will also feature food and beverage outlets, a pool and deck, spa and fitness center facilities, and meeting and event spaces. Available units start at $359,000 and go up to $2 million. AMLI Residential, a Chicago -based developer of luxury apartments, bought the 6.6 acres of vacant property for $55,000,000 ($191/SF; $79,000/unit), which was the former site of a Chiquita Banana shipping facility. This site sits on the west side of NE 2" Avenue just north of NE 29th Street, south of the subject. AMLI has approved plans to develop about 700 apartments on the site, between 2900 to 3010 Northeast Second Avenue in Miami. AMLI plans two rental building, designed by Zyscovich Architects. The north building would have 485 units in 12 stories. The south building would have 215 units in eight stories, according to a release. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 73 Miami International Links - Melreese Country Club Land 18-114-02 MARKET ANALYSIS RAM Development There was a recent sale of 80 acres from the University of Miami to RAM, a South Florida developer, RAM acquired 80 acres in southwest Miami -Dade County, just west of the Homestead Extension of Florida's Turnpike. After approximately 3 years of getting approvals, this site is slated for the construction of 900 residential units, and 300,000 SF of commercial space, plus restaurants, and possibly other uses. The first phase will include 408 rental apartments plus a WalMart anchored shopping center. Leases have been signed with LA Fitness, Panera, Chick-fil-A and Chili's. Further lease negotiations are underway with other national retail tenants. The second phase of the retail development will include 50,000 SF. 30% of the land is to be set aside as a preserve. Biscayne Landing Another example is Biscayne Landing. Biscayne Landing is a 193± acre master -planned community located in North Miami. The entire project calls for more than 4,000 residences, 37 acres of parks and recreation space and more than 800,000 square feet of retail space at Northeast 151' Street and Biscayne Boulevard. Biscayne Landing is the result of a partnership between the City of North Miami and Boca Developers. The city has leased the former superfund landfill to Boca Developers for two hundred years. As part of the partnership agreement with the city, Boca Developers will match the construction of new residences at Biscayne Landing with an equal number of new or rehabilitated affordable housing units on brown field sites within the city. In addition, Boca Developers has also committed up to $25 million toward the renovation and expansion of North Miami's library, the construction of an Olympic training facility, and construction of the David Lawrence, Jr. K-8 School. Case Study Conclusion We analyzed four developments of which we have information on the total buildout. We looked at multifamily density and intensity of retail and office properties. We analyzed each property in relation to the subject's size and determined the average density of each property type. We used a multiplier in comparison to the subject's size and determined based upon the intensity of use, what the subject could be developed with, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning. Development Downtown Doral Biscayne Landing RAM White Course Averages Apartments 2,840 4,000 900 2,709 2,612 Reta i I 180,000 800,000 300,000 160,748 360,187 Office 1,000,000 0 0 850,805 462,701 Acres 250 193 80 130 163 Subject 131 131 131 131 Multiplier 0.52 0.68 1.64 1.01 0.96 Apartments 1,488 2,715 1,474 2,730 2,102 Reta i I 94,320 543,005 491,250 161,985 322,640 Office 524,000 0 0 857,350 345,337 Downtown Doral is a,,,250-acre, mixed use develo me t with 2,840 multifamil units, 180,000 SF of retail and 1,000,000 SF of office. Assuming an average unit size of 1,000 SF includi g all common areas for the multifamily units, this equates to 2,840,000 SF. The total buildable square feet for this property is 4,020,000, which equates to an FAR of 0.37. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 74 Miami International Links - Melreese Country Club Land 18-114-42 MARKET ANALYSIS The subject's parcel is 52% of the Downtown Doral Parcel. We applied this multiplier to the Downtown Doral development and concluded that the subject can be built with 1,488 multifamily units, 94,320 SF of retail and 524,000 SF of office. Biscayne Landing is a 193-acre mixed use development with 4,000 multifamily units and 800,000 SF of retail. Assuming an average unit size of 1,000 SF including all common areas for the multifamily units, this equates to 4,000,000 SF. The total buildable square feet for this property is 4,800,000, which equates to an FAR of 0.57. The subject's parcel is 68% of the Biscayne Landing Parcel. We applied this multiplier to the Biscayne Landing development and concluded that the subject can be built with 2,715 multifamily units and 543,005 SF of retail. RAM Development is an 80-acre mixed use development with 900 multifamily units and 300,000 SF of retail. Assuming an average unit size of 1,000 SF including all common areas for the multifamily units, this equates to 900,000 SF. The total buildable square feet for this property is 1,200,000, which equates to an FAR of 0.34. The subject's parcel is 164% of the RAM Development Parcel. We applied this multiplier to the RAM Development and concluded that the subject can be built with 1,474 multifamily units and 491,250 SF of retail. White Course is a 130-acre mixed use development with 2,709 multifamily units, 160,748 SF of retail and 850,805 SF of office. Assuming an average unit size of 1,000 SF including all common areas for the multifamily units, this equates to 2,709,000 SF. The total buildable square feet for this property is 3,720,553, which equates to an FAR of 0.66. The subject's parcel is 101% of the White Course Parcel. We applied this multiplier to the White Course development and concluded that the subject can be built with 2,730 multifamily units, 161,985 SF of retail and 857,350 SF of office. The averages for all four developments equates to 163 acres with 2,612 multifamily units, 360,187 SF of retail and 462,701 SF of office. The subject's parcel is 96% of the total averages. We applied this multiplier to the total averages and concluded that the subject can be built with 2,102 multifamily units, 322,640 SF of retail and 345,337 SF of office. The average density for multifamily equates to 16 units per acre for the subject's parcel. Based upon an average of 1,000 SF per unit including all common areas, the average FAR equates to roughly 0.37 for the total parcel. The retail/office space equates to roughly 0.12 FAR for the total parcel. The total buildable square feet for the total property equates to 2,769,977. This equates to an FAR of 0.4851. Each of the developments analyzed may also have common areas, as well as some community development, such as schools, parks and municipal buildings. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 75 Miami international Links - Melreese Country Club Land 18-114-02 DESCRIPTION OF THE SITE Land Summary Gross Land Gross Land Parcel ID/Tax ID Area (Acres) Area {SF) Topography Type Shape Type 01-3132-000-0080 and portion of 01-3132-000-0090 131.07 5,709,575 Level and at street grade Generally rectangular in shape SITE DETAILS ADDRESS 1802 NW 37th Avenue, Miami, Miami -Dade County, FL 33125 PARCEL NUMBER 01-3132-000-0080 and portion of 01-3132-000-0090 LEGAL DESCRIPTION Lengthy, see Boundary Survey included in the Addenda. LOCATION The subject is located along the north side of State Road-836, extending from NW 37th Avenue to NW 42nd Avenue, in the City of Miami, Miami -Dade County, Florida. LOCATION TYPE Urban MAP LATITUDE/LONGITUDE 25,7910554/-80.2568305 CENSUS TRACT 12-086-0049,01 SIZE 5,709,575 SF or 131.07 acres ZONING The parcel is zoned "CS," under the jurisdiction of the City of Miami. PRIMARY FRONTAGE STREET NW 37th Avenue {Douglas Road) PRIMARY FRONTAGE COMMENTS NW 37th Avenue is a four -lane, asphalt -paved roadway that extends north/south along the east boundary of the subject. SECONDARY FRONTAGE STREET NW 14th Street SECONDARY FRONTAGE COMMENTS NW 14th Street is a two-lane, asphalt -paved roadway that extends east/west along the south boundary of the subject. ADJACENT PROPERTIES - NORTH Hotel and office building ADJACENT PROPERTIES - SOUTH State Road-836 (Dolphin Expressway) ADJACENT PROPERTIES - WEST NW 42nd Avenue (LeJeune Road) ADJACENT PROPERTIES - EAST Single-family Residential VIEW Good ACCESS Access to the area is via Douglas Road (NW 37th Avenue), LeJeune Road (NW 42nd Avenue) and State Road-836 {the Dolphin Expressway). INGRESS/EGRESS The subject contains one point of ingress/egress along the west side of NW 37th Avenue. SITE VISIBILITY Good STREET LIGHTING Yes STREET CONDITION Paved with asphalt SIDEWALKS Yes CURBS AND GUTTERS Yes LANDSCAPING The subject's landscaping is typical for the area. TOPOGRAPHY The subject's topography is level and at street grade. SHAPE The subject site is generally rectangular in shape. REQUIRED SITE WORK Typical clear and grade SOIL CONDITIONS AND DRAINAGE The soil conditions observed at the subject appear to be typical of the region and adequate to support development. FLOOD ZONE The site lies within Zone AE. This information was obtained from the National Flood Insurance Rate Map Number 12086CO292L dated September 11, 2009. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 76 Miami International Links - Melreese Country Club Land 18-114-02 DESCRIPTION OF THE SITE FLOOD ZONE DEFINITION The base floodplain where base flood elevations are provided. AE Zones are now used on new format FIRMs instead of Al-A30 Zones. In communities that participate in the NFIP, mandatory flood insurance purchase requirements apply to this zone. AREA IN FLOOD ZONE Yes OTHER HAZARDS None known ENCUMBRANCES AND EASEMENTS There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. ENVIRONMENTAL HAZARDS There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assumptions. WETLANDS AND WATERSHEDS No wetlands were observed during our site inspection. ADEQUACY OF UTILITIES The subject's utilities are typical and adequate for the market area. PUBLIC ELECTRICITY FPL WATER SUPPLY TYPE City water SEWER TYPE City sewer UNDERGROUND UTILITIES Yes POLICE AND FIRE PROTECTION City of Miami CONCLUSION The subject site is considered well -suited to functionally support its proposed use. AERIAL PHOTOGRAPH JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 77 Miami International Links - Melreese Country Club Land 18-114-02 The subject is zoned "CS," Civic Space, under the jurisdiction of the City of Miami. ZONING ZONE DETAILS ZONING AUTHORITY City of Miami ZONING CODE CS ZONING DESCRIPTION Civic Space PERMITTED USES Marina is the only use allowed by right. Food service establishment, open air retail, community facility, recreational facility, infrastructure and utilities are allowed by warrant: administrative process. General commercial, marine related commercial, childcare, and learning center are allowed by exception: public hearing. COMMENTS The Civic Zone consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent setbacks and landscape. 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. The subject is also classified as Public Parks and Recreation under the City of Miami and Miami -Dade County Land Use Plan. Therefore, any use of the site would have to comply with the underlying land use classification, which typically includes active and passive recreational uses, nature preserves, environmentally sensitive areas, etc. City of Miami Interpretation of the 2020 Future Land Use Map October 2015 II NW 2I ST S -- ._j" T 1•■irII 1111=■■- W d 0 z The subject's underlying land use currently would prohibit development of the site with uses that are not permitted under the Public Parks and Recreation land use designation. If the subject site were offered for sale, potential purchasers would consider this fact, but also consider the possibility of having the designation changed in the future. There are many instances of the land use being modified to consider additional needs in the community. In order for the subject to be developed to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, a Zoning Hearing would be required, Zoning Hearings are required for approval of all new proposals, and all development plans for a proposed use of land or a proposed structure that have been disapproved by staff. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 78 Miami International Links - Melreese Country Club Land 18-114-02 ZONING Most large site developments require some sort of modification to the future land use map, or approvals based on the type of development contemplated. Issues that are addressed in the process include adequacy of service to the site, environmental impacts, traffic issues, availability of utilities, etc. Under the Miami 21 Zoning Code, a Special Area Plan is as follows: 3.9 SPECIAL AREA PLANS The purpose of a Special Area Plan is to allow parcels greater than nine (9) Abutting acres in size to be master planned so as to allow greater integration of public improvements and Infrastructure, and greater flexibility so as to result in higher or specialized quality building and Streetscape design within the Special Area Plan. The purpose of a Special Area Plan further is to encourage the assembly and master planning of parcels greater than nine (9) Abutting acres in size, in order to provide greater integration of public and private improvements and Infrastructure; to enable Thoroughfare connectivity; to encourage a variety of Building Heights, massing and Streetscape design, and to provide high quality design elements, all in order to further the intent of this Code expressed in Article 2. 3.9.1 General a) The single or multiple owner(s) of Abutting properties in excess of nine (9) acres may apply for a rezoning to a Special Area Plan. b) A Special Area Plan shall be approved by the process of rezoning with or without Transect changes. c) A Special Area Plan shall assign Thoroughfares, Transect Zones and Civic Space Types, with appropriate transitions to Abutting areas. Guidelines for Thoroughfares and Public Frontages may be adjusted to the particular circumstances of the Special Area Plan. d) A Special Area Plan shall include a map of the Thoroughfares and Transect Zones, and the standards that deviate from the requirements of Article 5. e) A Special Area Plan shall assign at least five percent (5%) of its aggregated Lot Area to a Civic Space Type. Civic Building sites are to be located within or adjacent to Civic Space Types or at the axial termination of significant Thoroughfares. The developer shall be responsible for constructing the public improvements within the Special Area Plan, including but not limited to the Civic Space Types and Thoroughfares. f) Development within the Special Area Plan shall be pursuant to a recorded development agreement that will establish the allocation of Thoroughfares and Civic Space Types and Building Area among the Building sites, and the creation and retention of the public benefits. g) Unless a Building is specifically approved as part of the Special Area Plan, any Building shall be reviewed by the Planning Director, after referral to and recommendation from the CRC for conformance to the Plan, prior to issuance of the Building Permit. h) A Special Area Plan may include: 1. A differentiation of the Thoroughfares as a Primary -Grid (A -Grid) and a Secondary -Grid (B-Grid). Buildings along the A -Grid shall be held to the highest standard of this Code in support of pedestrian activity. Buildings along the B-Grid may be more readily considered for automobile -oriented standards allowing surface parking lots, unlined parking decks, and drive-throughs. The Frontages assigned tolthe B -Grid shall not exceed thirty percent (30%) of thielltbtal �engthwilin a Special Area Plan. For Frontages on the B-Grid, parking areas may be allowed in the Second Layer. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 79 Miami International Links - Meireese Country Club Land 18-114-02 ZONING 2. Retail Frontage requiring that a Building provide a Commercial Use at sidewalk level along the entire length of the Frontage. The Commercial Use Building shall be no less than seventy percent (70%) glazed in clear glass and provided with an Awning overlapping the sidewalk as generally illustrated in Article 4, Table 6. The first floor should be confined to Retail Use through the depth of the Second Layer. 3. Gallery or Arcade Frontage, requiring that a Building provide a permanent cover over the sidewalk, either cantilevered or supported by columns. The Gallery or Arcade Frontage may be combined with a Retail Frontage as shown in Article 4, Table 6. Gallery or Arcade Frontage within the First Layer may apply towards Open Space requirements. 4, Build -to -lines that differ from Transect Zone Setback requirement. 5. A Terminated Vista location, requiring that the Building be provided with architectural articulation of a Type and character that responds to the location. 6. A Pedestrian Passage, requiring a minimum ten (10) foot wide pedestrian access be reserved between Buildings. 7. A preservation plan acceptable to the Historic and Environmental Preservation Board for any historic resources in the area of the Special Area Plan. 8. Area Design Guidelines. 9. A parking management program that enables shared parking among public and private Uses. 10. Flexible allocation of development capacity and Height, excluding Density on individual sites within the Special Area Plan shall be allowed so long as the capacity or Height distribution does not result in development that is out of Scale or character with the surrounding area, and provides for appropriate transitions. An example of the approval process is the recent sale of 80 acres from the University of Miami to RAM, a South Florida developer. RAM acquired 80 acres in southwest Miami -Dade County, just west of the Homestead Extension of Florida's Turnpike. After approximately 3 years to obtain approvals, this site is slated for the construction of 900 residential units, and 300,000 SF of commercial space, plus restaurants, and possibly other uses. The first phase will include 408 rental apartments plus a WalMart anchored shopping center. Leases have been signed with LA Fitness, Panera, Chick-fil-A and Chili's. Further lease negotiations are underway with other national retail tenants. The second phase of the retail development will include 50,000 SF. 30% of the land is to be set aside as a preserve. In the Market Analysis section of this report, we analyzed four developments of which we have information on the total buildout. We looked at multifamily density and intensity of retail and office properties. We analyzed each property in relation to the subject's size and determined the average density of each property type. We used a multiplier in comparison to the subject's size and determined based upon the intensity of use, what the subject could be developed with, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, JOSEPH J. BEAKE AND ASSOCIATES. INC. PEAL ESTATE VALUATION AND CONSULTING 80 Miami international Links - Melreese Country Club Land 18-114-02 ZONING Development Downtown Dora! Biscayne Landing RAM White Course Averages Apartments 2,840 4,000 900 2,709 2,612 Reta i I 180,000 800,000 300,000 160,748 360,187 Office 1,000,000 0 0 850,805 462,701 Acres 250 193 80 130 163 Subject 131 131 131 131 Multiplier 0.52 0.68 1.64 1.01 0.96 Apartments 1,488 2,715 1,474 2,730 2,102 Retail 94,320 543,005 491,250 161,985 322,640 Office 524,000 0 0 857,350 345,337 The averages for all four developments equates to 163 acres with 2,612 multifamily units, 360,187 SF of retail and 462,701 SF of office. The subject's parcel is 96% of the total averages. We applied this multiplier to the total averages and concluded that the subject can be built with 2,102 multifamily units, 322,640 SF of retail and 345,337 SF of office. The average density for multifamily equates to 16 units per acre for the subject's parcel. Based upon an average of 1,000 SF per unit including all common areas, the average FAR equates to roughly 0.37 for the total parcel. The retail/office space equates to roughly 0.12 FAR for the total parcel. The total buildable square feet for the total property equates to 2,769,977. This equates to an FAR of 0.4851. Each of the developments analyzed may also have common areas, as well as some community development, such as schools, parks and municipal buildings. Based on a review of the existing land use, as well as the land uses on surrounding sites, we estimate that potential purchasers of the subject site would anticipate some time would pass before they could successfully modify the future land use map to allow for development. JOSEPH J. BLAME AND ASSOCIATES. INC. REAL ESTAIE VALUATION AND CONSULTING 81 Miami International Links - Melreese Country Club Land 18-114-02 TAXES The subject is assessed by the Miami -Dade County property appraiser's office, and is taxed by the City of Miami, Miami -Dade County, and the Miami -Dade County school district. The following table summarizes the subject's assessment and taxes: Parcel ID 01-3132-000-0080 Portion of 01-3132-000-0090 Totals Assessment Year 2017 2017 2017 Total Assessed Value $2,523,656 $5,813,626 $8,337,282 Total Tax Rate $0.0000 $0.0000 $0.0000 Taxes $0 $0 $0 Taxes with Special Assessments $0 $0 $0 Early Payment Discount Percentage 4% 4% 4% Total Taxes $0 $0 $0 The subject is exempt from paying taxes since it is owned by the City of Miami. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTINI 82 Miami International Links - Meireese Country Club Land 18-114-02 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 subject is located along the north side of State Road-836, extending from NW 37th Avenue to NW 42nd Avenue, in the City of Miami, Miami -Dade County, Florida. The underlying site consists of 5,709,575 SF or 131.07 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 uses of the site, as it relates to physical properties, are mixed use multifamily, retail and office. LEGALLY PERMISSIBLE The subject's site is zoned "CS," Civic Space, under the jurisdiction of the City of Miami, FL. Reference is made to the Zoning section of this report. A marina is the only permitted use allowed by right. Food service establishments, open air retail, community facilities, recreational facilities, infrastructure and utilities are allowed by warrant: administrative process. General commercial, marine related commercial, childcare, and learning center are allowed by exception: public hearing. Upon analysis of the permitted uses, the most supportable highest and best uses of the site, as it relates to what is legally permissible if rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, is a mixed use multifamily, retail and office development that takes advantage of the subject's location adjacent to State Road-836 and the Miami International Airport. Due the subject's proximity to the airport, any development would also be subject to height restrictions by the Federal Aviation Administration (FAA). JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 83 Miami International Links - Melreese Country Club Land 18-114-02 HIGHEST AND BEST USE 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 financially feasible uses of the site that are physically possible and legally permissible are to maximize the utility of the site in relation to the zoning. 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 to maximize the utility of the site in relation to the zoning. HIGHEST AND BEST USE, ASSUMING THE HYPOTHETICAL CONDITION THAT THE SUBJECT HAS BEEN REZONED TO ITS HIGHEST AND BEST USE UNDER MIAMI 21 SPECIAL AREA PLAN ZONING We must also determine the highest and best use of the subject by analyzing occupancy levels of various surrounding improvements, as well as the general needs within the area. Based on the current conditions of the subject's market, the highest and best use of the subject, as improved, is the redevelopment of the existing improvements with a more intensive use. In order to determine the subject's highest and best use, we researched the decisions made by investors in other properties similar to the subject. We presented a Market Analysis for office, retail and residential uses, since those would be the most likely uses at the subject. Office uses could include a campus type setting of buildings to take advantage of the location adjacent to State Road-836 and the Miami International Airport. Residential uses could include standard market rate apartments for the surrounding general population. Commercial uses could also be for the surrounding population. As discussed in the Market Analysis section, the averages for the four case study developments equates to 163 acres with 2,612 multifamily units, 360,187 SF of retail and 462,701 SF of office. The subject's parcel is 96% of the total averages. We applied this multiplier to the total averages and concluded that the subject can be built with 2,102 multifamily units, 322,640 SF of retail and 345,337 SF of office. The average density for multifamily equates to 16 units per acre for the subject's parcel. Based upon an average of 1,000 SF per unit including all common areas, the average FAR equates to roughly 0.37 for the total parcel. The retail/office space equates to roughly 0,12 FAR for the total parcel. The total buildable square feet for the total property equates to 2,769,977. This equates to an FAR of 0.4851. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 84 Miami International Links - Melreese Country Club Land 18-114-02 HIGHEST AND BEST USE Each of the developments analyzed may also have common areas, as well as some community development, such as schools, parks and municipal buildings. Therefore, based on the actions of developers in the region, we conclude that if the subject site were available for development, it would be purchased for mixed -use development that would likely include a retail component, a residential component and perhaps an office component, if demand existed from a particular tenant or group of tenants. The composition and timing of the components could be changed based upon future market conditions. This development would have to meet the requirements of the Special Area Plan (SAP) zoning, as well as height restrictions from the Federal Aviation Administration (FAA). JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 85 Miami International Links - Melreese Country Club Land 18-114-02 ANALYSIS OF DATA AND CONCLUSIONS IDENTIFICATION OF A LIKELY BUYER The most likely buyer of a property such as the subject, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, would be a large regional or national investor who would recognize the long-term economic potential of the property. These factors will be considered in the valuation of the subject. VALUATION METHODOLOGIES In appraising a property, there are three traditional valuation methodologies that can be applied: the Cost, Income Capitalization and Sales Comparison Approaches. Selection of one or more of the approaches in the appraisal of a property rests primarily upon the property type and its physical characteristics, as well as the quality and quantity of available market data. In the Land Value section, market data is presented along with an analysis of the data and reasoning that lead to the land value opinion. The Cost Approach is based on the premise that an informed purchaser will not pay more for a property than it would cost him or her to construct a property of similar utility. This approach is most applicable when the subject is of new or nearly new construction and the improvements represent the highest and best use of the site. This approach is also particularly useful when appraising unique or special purpose properties where there are few, if any, comparable sales or leases. The Income Capitalization Approach is based on the fundamental investment premise that the higher a property's earnings, the higher its value. Investment in an income -producing property represents the exchange of present dollars for the right to receive future dollars. In this approach, a value indication for an income -producing property is derived by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways: one year's income expectancy can be capitalized at a market -derived capitalization rate, or alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate. The Income Capitalization Approach typically provides the most meaningful estimate of value for income -producing properties. The Sales Comparison Approach involves delineating appropriate units of measurement from comparable sales, in order to apply them to the subject's property. Adjustments are then made to the sales prices of the comparable properties based on various shared elements. This methodology may be used to value many different types of improved properties and vacant land, as long as there is a sufficient quantity of good - quality market data available. It becomes less reliable as the quantity and magnitude of adjustments increases, and it is generally not applicable to unique or special purpose properties. The final step in the valuation process is the reconciliation or correlation of the value indications. In the reconciliation or correlation, we consider the relative applicability of each of the approaches used, examine the range between the value indications, and place major emphasis on the approach that appears to produce the most reliable and credible result. VALUATION METHODOLOGIES APPLICABLE TO THE SUBJECT PROPERTY Since we are valuing the underlying land, the approach applicable in the valuation of the fee simple estate of the subject is the Sales Comparison Approach. We did not use the residual technique to value the subject. Within the Market Analysis we summarized current large mixed -use developments in Miami -Dade County. From this data, we were able to provide a rough estimate of.wha.t market participants could develop on a large site in an +n-fill Ipgatipn. However, that conclusion does not provide the level of detail that would be required to complete a valuation using the residual technique. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION ANO CONSULTING 86 Miami International Links - Melreese Country Club Land 18-114-02 ANALYSIS OF DATA AND CONCLUSIONS The subject is currently CS zoned and does not have any specific plans. In order to credibly value the subject using a land residual technique we would need to have a specific develop plan, with cost estimates, allowable densities, property types, open space requirements, public use requirements, etc. We are of the opinion that using residual technique would be unreliable, in the absence of more specific development data. JOSEPH J. BLAKE AND ASSOCIATES, INC, REAL ESTATE VALUATION AND CONSULTING 87 Miami International Links - Melreese Country Club Land 18-114-02 LAND VALUE LAND VALUATION The land, as if vacant, is valued by direct sales comparison, in which sales of comparable sites within the subject's area are analyzed in context with the subject's site. Adjustments are made to compensate for differences between the submitted sales data and the subject for such factors as location, size, shape, topography, utility, and marketability, etc. Land sales are presented to arrive at a $/SF for the subject. In an effort to locate comparable land sales, a search throughout the subject's area was conducted. The presented sales are valid indicators of land values in the subject's area. Information pertaining to these sales has been verified by the buyer, seller, broker or other sources considered reliable and having knowledge of the particular transaction when available. Briefly described, the subject of this appraisal consists of the 131.0738 acres or 5,709,575 SF of land underlying the Miami International Links - Melreese Country Club. The portion of this overall site that we are appraising has yet to be specified in regards to exact location or size. The parcel is improved with an 18- hole golf course, with a driving range and practice putting greens. The subject is also improved with four buildings that were constructed from the 1960's to 2000's that are used as a golf learning center, pro shop, full -service restaurant, maintenance building, and other ancillary uses for the operation of a golf course. The site is owned by the City of Miami and leased to the current golf course operator. The site is irregular in shape and is level and street grade. The subject is zoned "CS," Civic Space, under the jurisdiction of the City of Miami, Florida. This zoning designation permits a wide variety of uses; however, a marina is the only use permitted by right. Other commercial uses could possibly be permitted after a public hearing. The purpose of the appraisal is to develop an opinion of: 1) the market value of the fee simple estate of an unspecified portion of the 131.0738 acres of land underlying the Miami International Links - Melreese Country Club, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, and 2) the rental value of a portion of the underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018. In order to determine the 'As Rezoned' value estimate of the subject based on its highest and best use, this appraisal is based on the hypothetical condition that the appropriate Special Area Plan (SAP) zoning to build to the property's highest and best use, is in place as of the date of value. The following land sales are located in Miami -Dade County and represent the actual actions of developers who purchased sites similar to the subject, that allow for many types of development. These market participants' actions are considered to be representative of a potential purchaser of the subject. Since the the projected highest and best use of the subject is for a mixed -use development, we have included an array of land sales which reflect different planned uses. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE V LUATION Alin CONSULTING 88 Miami International Links - Melreese Country Club Land 18-114-02 Name City State Price Grantor Recordation Land Comparable 1 Nrcjr LAND VALUE Transaction Kendall Town Center Address 15955 SW 96th Street Miami County Miami -Dade FL Zip 33196 $41,837,000 Date 12/29/17 West Kendall Holdings, LLC Grantee KTC SW 88th Street, LLC 30509-2922 Tax Parcel ID 30-5905-029-0020 Property Rights Fee Simple Estate Financing Cash to Seller Conditions of Sale Arm'slength Verification Broker Price Per Land SF $13.75 Price Per Acre $598,955 Price Per FAR $57.23 Price Per Proposed Unit NA Site Land SF 3,042,624 Land Acres 69.85 Topography Level and at street grade Shape Irregular Required Site Work Typical Clear and Grade Utilities All Available Zoning BU-2 Proposed Use Mixed -Use Development Zoning Type Commercial Zoned Density NA Buildable SF 731,000 Allowable FAR 0.24 No. of Proposed Units NA Proposed Unit Type NA Comments Development ofa larger mixed -use project at the site, previously called Kendall Town Center, has been stagnant. The first phase of the project, which was delivered by multiple developers, was the West Kendall Baptist Hospital that opened in 2011. More than halfa decade later, Gertz Builders and Developers Inc. scored a construction loan for a n adjacent 53,185- squa re -foot retail development called The Pointe at Kendall Town Center. Reportedly, the project DRI allows for 731,000 SF of development on the site. The site includes two submerged tracts, which have not been included within the ca lculation of the price/acre and price/SF. JOSEPH 1. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 89 Miami International Links - Meireese Country Club Land 18-114-02 LAND VALUE Land Comparable 2 Transaction Name Gateway Commerce Park Site Address 21001 NW 27th Avenue City Miami Gardens County Miami -Dade State FL Zip 33056 Price $26,500,000 Date 11/8/16 Grantor Calder Race Course, Inc. Grantee Eastgroup Properties, L.P. Recordation 30302-3608 Tax Parcel ID 34-1134-014-0010 Property Rights Fee Simple Estate Financing Cash to Seller Conditions of Sale Arm's length Verification Broker Price Per Land 5F $9.97 Price Per Acre $434,426 Price Per FAR $31.18 Price Per Proposed Unit NA Site Land SF 2,657,160 Land Acres 61.00 Topography Level and at street grade Shape Irregular Required Site Work Typical Clear and Grade Utilities All Available Zoning AU Proposed Use Industrial Park Zoning Type Agricultural Zoned Density NA Buildable SF 850,000 Allowable FAR 0.32 No. of Proposed Units NA Proposed Unit Type NA Comments According to the Eastgroup Properties, the site was purchased for the construction of Gateway Commerce Park, an 850,000 SF industrial park comprised offive buildings. The site was formerly owned by Calder Race Course and was utilized as horse stables. A seven -acre outparcel was purchased by the buyer in a separate transaction, which is reportedly listed for sale. The site, which was originally zoned for agricultural use, was rezoned subsequent to purchase to accommodate hotel, retail, commercial, and office use. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 90 Property Rights Conditions of Sale Price Per Land SF Price Per FAR Land SF Topography Required Site Work Zoning Zoning Type Buildable SF No. of Propose Miami International Links - Melreese Country Club Land 18-114-02 Land Comparable 3 r Transaction Name White Course Site Address NWC of NW 41st Street & NW 87th Avenue City Doral County Miami -Dade State FL Zip 33166 Price $96,000,017 Date 4/25/16 Grantor GWC Miami Property, LLC Grantee White Course Lennar, LLC & Recordation 30053-1186, 30083-1154, Tax Parcel ID 35-3022-000-0011, 35-3022- 30083-1170 000-0110, 35-3022-001-0010, 35-3022-000-0018, 35-3022- Fee Simple Estate Financing Cash to Seller Assemblage, REO Sa le Verification KnowledgeableThird Party $18.33 Price Per Acre $798,669 NA Price Per Proposed Unit NA LAND VALUE Site 5,235,912 Land Acres Level and at street grade Shape Typical Clear and Grade Utilities DMU Proposed Use Commercial Zoned Density NA Allowable FAR NA Proposed Unit Type Comments This sale is rec.rded in three separate transactions to White Course Lennar LLC, CC Homes at Doral, and CC-WCD TIC - subsidiaries of odi a Partners and Lennar Homes. The buyers will reportedly split the property 50/50. The golf course is contiguous to t e Tr mp National Dora Resort and Codina's 120-acre Downtown Doral mixed -use prpjgct.-The developers have submitte. pla to'the Icityof Doral for 2,209 residential units, 30,000 square fee of retail space 4nd 150,000 square feet of office s.ace !according to a spokesperson for Codina. As planned, 7 acres it be set asiddfor) civic use to be determined by he c ty, 4s wL II as'a school for grades 6-12 that will complement the K cl}arter school 4t Downtown Doral. The property's oni parameters were set forth in a master development agreement etween the property's predecessor owner, MSR Re ort I otl, in 2012. The agreement is in place for 20 years, and devdl pment,must begin Illwithin 10 years, accordingtoth=,CB ciff�!erirg.Theagreementwaspartof1a;cpprtsettlementbelweg the formerc�w t,andthe city. The seller is GWC is Pr y LLC, an affiliate of GIC, the soveIreign fund of the govern ent of'Singapor i. GIC acquired the property throu=h bailiff ptc\ actions. The gross land area of this sale is 132.20, with a proximately 12 acres of this parcel consisting ofsui me ged lands. Therefore, we have utilized the net land area of 120.2 dcres in calculating the unit price for this sale. 120.20 Irregular All Available Mixed -Use NA N NAA JOSEPH J. BRAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 91 Miami International Links - Melreese Country Club Land 18-114-02 Name City State Price Grantor Recordation Property Rights Conditions of Sale Price Per Land SF Price Per FAR Land SF Topography Required Site Work Zoning Zoning Type Buildable SF No. of Proposed Units Land Comparable 4 Transaction Royal Garden Estates Site Miami Lakes FL $74,400,000 F71-1 LLC 29918-1484 Fee Simple Estate Arm's length $ 23.39 NA 3,181,187 Level and at street grade Typical Clear and Grade RU-3M Multifamily NA 505 Address County Zip Date Grantee Tax Parcel ID Financing Verification Price Per Acre Price Per Proposed Unit Site Land Acres Shape Utilities Proposed Use Zoned Density Allowable FAR Proposed Unit Type LAND VALUE NEC of 1-75 & NW 154th Street Miami -Dade 33018 1/7/16 Lennar Homes, LLC 32-2016-000-0040 Cash to Seller Knowledgeable Third Party $1,018,759 $147,327,00 73.03 Irregular All Available Multi -Family Development 3.54 du/acre NA Single Family Residences Comments The total gross land area ofthis development is 142.67 acres. However, this size includes a 69.64 acre lake that is located in the center ofthe stie. We have utilized the net land area of 73.03 acres in calculating the unit price ofthis sale. The gross acreage was included in calculating the density for this project. This site is being developed with Royal Gardens Estates, which will reportedly consist of 505 single-family homes - 267 single-family homes, and 238 townhouses, according to the South Florida Business Journal. This sale has been verified via public record. The development is being built around this lake. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 92 Miami International Links - Melreese Country Club Land 18-114-02 LAND SALES SUMMARY LAND VALUE Comp Address Price Zoning Land SF Price per Land SF City Date Zoning Type Land Acres Price per Acre 1 15955 SW 96th Street $41,837,000 BU-2 3,042,624 $13.75 Miami 12/29/2017 Commercial 69.85 $598,955 2 21001 NW 27th Avenue $26,500,000 AU 2,657,160 $9.97 Miami Gardens 11/08/2016 Agricultural 61.00 $434,426 3 NWC of NW 41st Street & NW $96,000,017 DMU 5,235,912 $18.33 Dora! 04/25/2016 Commercial 120.20 $798,669 4 NEC of 1-75 & NW 154th Street $74,400,000 RU-3M 3,181,187 $23.39 Miami Lakes 01/07/2016 Multifamily 73.03 $1,018,759 Francis S. Taylor Wildlife CI Google LAND SALES COMPARISON MAP East Coast Buffer Water Preserve Area Pembroke Pines It Miramar Mlarn. makes -'} Hialeah Dora! I74) Kendall Hollywood Hallandale Beach Aventura Miami Beach Miami Coral Gables Key Biscayne Biscayne Bay Aquatic Map data C=J2C18 Gam; LAND SALES ANALYSIS To derive an estimated value of the site, as if vacant, we analyzed the land comparables and have made adjustments for varying characteristics. Property Rights Conveyed The property rights conveyed for each sale are shown in the adjustment grid. The subject is valued in this report on the basis of a fee simple estate. No adjustments for property rights conveyed were made to the sales. Financing Terms The financing terms for each sale are shown in the adjustment grid. The subject is valued in this report on the basis of a cash to seller transaction. No adjustments for financing terms were made to the sales. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION ANO CONSULTING 93 Miami International Links - Meireese Country Club Land 18-114-02 LAND VALUE Conditions of Sale The conditions of sale for each sale are shown in the adjustment grid. The subject is valued in this report on the basis of an arm's length transaction. No adjustments for conditions of sale were made to the sales. Market Conditions In terms of an adjustment for market conditions, from the sales shown, it is somewhat subjective to determine an exact adjustment. We have applied a 3% adjustment to each comparable, annualized from the date of each sale to April 10, 2018. Location The adjustment for location reflects the trend that properties in areas of active growth and development, as well as those which offer good accessibility in terms of frontage on major thoroughfares, should sell for a higher price per SF than properties which do not offer these attributes, with all other factors held constant. The subject is located along the north side of State Road-836, extending from NW 37th Avenue to NW 42nd Avenue, in the City of Miami, Miami -Dade County, Florida. Sale 1 is located in the West Kendall area at SW 160th Avenue and SW 96`h Street. This location is considered inferior to the subject. Therefore, this sale is adjusted upward. Sale 2 is located in northwest Miami -Dade County, adjacent to the Calder Racetrack, east of NW 27th Avenue, with visibility from Florida's Turnpike. While the parcel is along an expressway, it is considered inferior to the subject. Therefore, this sale is adjusted upward. Sale 3 is located in the heart of Doral as part of the Doral Resort and Golf Club. This location is in the western suburbs of Miami -Dade County and is considered to be inferior to the subject's. Therefore, this sale will be adjusted upward for this factor. Sale 4 is located along I-75 at NW 154 Street in Miami Lakes, While visibility is good, this parcel has inferior accessibility. Therefore, this sale is considered inferior to the subject. Thus, this sale is adjusted upward for location. Size In terms of size, it is noted that smaller parcels typically sell for a higher price per SF than larger parcels, with all other factors held constant. The subject contains a total of approximately 131.0738 acres or 5,709,575 SF. Sales 1 and 2 are smaller than the subject and will be adjusted downward. Sales 3 is similar in size to the subject, with no adjustment necessary for this factor. The gross land area of Sale 4 is similar to the subject; however, this sale contains a large lake located in the center of the parcel. The residential development that is being constructed on this site is being built around the lake. Therefore, the net land area of this sale is smaller than the subject's, and will be adjusted downward. Zoning The subject's site as rezoned should be for a mixed -use development based on an approved Special Area Plan (SAP), under the jurisdiction of City of Miami, FL. Based upon the subject's highest and best use, we determined each of the sales zoning are considered inferior to the subject. Therefore, upward adjustments are made for zoning to each of the subject parcels. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 94 Miami International Links - Melreese Country Club Land 18-114-02 Topography The subject's site is level and at street grade. No adjustments are made for topography to the sales. Required Site Work The subject is valued as if vacant and available for development. No adjustments are made for required site work to the sales. LAND VALUE Shape The shape of the subject's site is generally rectangular in shape. No adjustments are made for shape of the site to the sales. Utility of Site The subject consists of a 131.0738- acre site that is currently being used as a golf course. The site contains some water hazards located throughout the golf course that could be filled in prior to any development. Therefore, the entire subject is considered to be usable. Sales 1 and 2 have similar utility as the subject, with no adjustment necessary. Sale 3 contains approximately 12 acres of submerged land that is considered to be undevelopable. Therefore, this sale will be adjusted downward. Sale 4 contains a 69.64-acre lake located in the middle of the site. The single-family development that is being constructed will be built around the lake. Overall, the utility of this site is considered to be inferior to the subject's and will be adjusted downward. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 95 Miami International Links - Melreese Country Club Land 18-114-02 LAND VALUE LAND SALES ANALYSIS CONCLUSION The previously described adjustments are summarized in the following grid. The percentage adjustments are used to show the emphasis placed on each adjustment, and are not based on a paired sales analysis LAND SALES ADJUSTMENT GRID Land Analysis Grld Comp 1 Comp 2 Comp 3 Comp 4 Name Miami International Links - Address 1802 NW 37th Avenue City Miami State FL Date Price Land SF 5,709,575 Price per 5F Kendall Town Center 15955 SW 96th Street Miami FL 12/29/2017 $41,837,000 3,042,624 $13.75 Gateway Commerce Park 21001 NW 27th Avenue Miami Gardens FL 11/8/2016 $26,500,000 2,657,160 $9.97 White Course Site NWC of NW 41st Street & Doral FL 4/25/2016 $96,000,017 5,235,912 $18.33 Royal Garden Estates Site NEC of 1-75 & NW 154th Miami Lakes FL 2/7/2016 $74,400,000 3,181,187 $23.39 Transaction Adjustments Property Rights Fee Simple Estate Financing Cash to Seller Conditions afSale Arm's Length Fee Simple Estate 0% Cash toleller 0% Arm's length 0% Fee Simple Estate 0% Cash to Seller 0% Arm's length 0% Fee Simple Estate 0% Cash to5eller 0% Assemble , REOSale 0% Fee Simple Estate 0% Cash to Seller 0% Arne's length 0% Adjusted Price per SF $13.75 $9.97 $18.33 $23.39 Market Trends Through 4/10/2018 3% 0.83% 4.28% 5.96% _ 6.90% Adjusted Price per SF $13.85 $10.40 $19.43 $25.00 Location %Adjustment $ Adjustment Good Inferior 20% Inferior 25% Similar 10% Inferior 10% 131.07 $2.77 69.85 -5% $2 60 61.00 -5% $1.94 120.20 0% $2.50 73.03 -5% Land Acres %Adjustment $ Adjustment SAP ($0.$9) BU-2 15% ($0.52) AU 25% _ $0.00 LMU 15% ($1.25) RU-3M 15% Zoning %Adjustment $ Adjustment Level and at street grade $2.08 Level and at street grade 0% $2.60 Level and at street grade 0% $2.91 Level and et street grade 0% $3.75 Level and at streetgrade 0% Topography %Adjustment $ Adjustment Typical clear and grade $0.00 Typical Clear and Grade 0% $0.00 Typical Clear and Grade 0% $0.00 Typical Clear and Grade 0% $0.00 Typical Clear and Grade 0% Required Site Work %Adjustment $ Adjustment Generally rectangular in $0.00 Irregular 0% $0.00 Irregular 0% $0.00 Irregular 0% $0.00 Irregular 0% Shape %Adjustment $ Adjustment Good $0.00 Similar 0% $0.00 Similar 0% $0.00 Inferior -5% $0.00 Inferior -10% Utility of Site %Adjustment $ Adjustment $0.00 $0.00 ($0.97) ($2.50) Adjusted Price per SF - $18.02 $15.08 $23.31 $2750 Net Adjustments Gross Adjustments 30.01% 39.96% 45% 55.0% 19.97% 29.96% 10% 40% Net Adjustments Gross Adjustments. 31.08% 41.12% 51.21% 61.64% 27.12% 37.7% 1759% 49.66% LAND VALUE CONCLUSION The comparables show a price/SF range of $15.08/SF to $27.50/SF on an adjusted basis, an average of $20.98/SF. Sales 3 and 4 have the lowest percentage of net adjustments. The adjusted prices of these sales are $23.31/5F and $2750/SF, respectively. Sale 3 is most similar to the subject in regards to land size. The adjusted price of this sale is $23.31/SF. This sale also has the lowest percentage of gross adjustments. The subject is a well -located infill property located in close proximity to the Miami International Airport and the Dolphin Expressway. Considering the location of the site, an appropriate unit value for the subject should be within the upper end of the range of the sales cited. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 96 Miami International Links - Melreese Country Club Land 18-114-02 LAND VALUE Based on the comparables and the adjustments made to them, we conclude to a value in the range of $22.50/SF to $27.50/5F. We conclude to the middle of this range at $25.00/SF. Since the client will possibly lease an undetermined portion of the subject, we have not been provided an exact size. Therefore, we have not calculated an overall value. Land Value Conclusion Indicated Land Value $25.00 /SF $25.00/SF This unit value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel sold is different in size, the unit value may be impacted. In addition to the land sales greater than 50 acres included in the previous adjustment chart, we have also researched other commercially zoned land sales ranging from 20 to 50 acres located in Miami -Dade County, illustrated in the chart below: Comp Address Price Zoning Land SF Price per Land 5F City Date Zoning Type Land Acres Price Per Acre A 10300 NW 121st Way $35,700,000 M-3 1,531,000 523.32 Medley 01/11/2018 Industrial 35.15 $1,015,736 B 7777 NW 41st Street $40,268,000 I 1,032,436 $39.00 Doral 12/26/2017 Industrial 23.70 $1,698,966 C 13220 NW 17th Street $31,098,500 iu-1 1,323,933 $23.49 Miami 07/20/2016 Industrial 30.39 $1,023,202 D SWC NW 25th Street & NW $22,154,600 IU-1 930,647 $23.81 117th Place Miami 02/08/2016 Industrial 21.36 $1,036,971 These sales are indicating unit prices ranging from $23.32/SF to $39.00/SF, with an average unit price of $27.41/SF. Comparable B is considered to be superior than these other comparables being located in the City of Doral and having direct frontage and exposure to the Palmetto Expressway. Our unit value conclusion for the subject is slightly above the range indicated by Comparables A, B, and D. These three comparables are considered to be inferior in location to the subject since they are located in the western areas of Miami -Dade County. The subject is located adjacent to State Road-836 and the Miami Intenational Airport in an in -fill area. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTINF 97 Miami International Links - Melreese Country Club Land 18-114-02 LAND RENT DETERMINATION OF LAND RENT The subject of this appraisal consists of the 131.0738 acres or 5,709,575 SF of land underlying the Miami International Links - Melreese Country Club. The portion of this overall site that we are appraising has yet to be specified in regards to exact location or size. The parcel is improved with an 18-hole golf course, with a driving range and practice putting greens. The subject is also improved with four buildings that were constructed from the 1960's to 2000's that are used as a golf learning center, pro shop, full -service restaurant, maintenance building, and other ancillary uses for the operation of a golf course. The site is owned by the City of Miami and leased to the current golf course operator. We have been requested by the client to project a market rental rate for the subject's site, as if vacant and zoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning. In order to calculate the market rent, we have researched market capitalization rates for land in Miami -Dade County to determine the subject's market lease rental rate. The following comparable sales represent the purchase of parcel of land where the tenant was completely responsible for the construction and maintenance of the structure subsequently constructed on the sites. The sales presented are all located in Miami -Dade County, and have all transpired over the period January of 2015 through April of 2017. Therefore, the comparable sales are considered to be similar in terms of market conditions. Comp 1 2 3 4 5 6 7 Address City 15715 SW 72nd Street Miami 3750 NW 87th Ave Dora I 1177 SW 8th Street Miami 14180 SW 8th Street Miami 2151 NW 79th St Miami 561 NE 79th St Miami 524 Jefferson Avenue Miami Beach Recordation Land SF Price NRA Year Built LTB Ratio Date Price per SF 30555-3840 15,670 $3,480,000 2,132 2016 7.35 '04/28/2017 $1,632.27 30387-3336 47,530 $7,100,000 16,252 2016 2.92 01/17/2017 $436.87 30161-3315 95,396 $13,100,000 22,335 2012 4.27 07/21/2016 $586.52 30098-4409 30,971 $2,000,000 3,191 2004 9.71 05/26/2016 $626.76 29887-0029 41,033 $2,457,000 9,741 2013 4.21 12/04/2015 $252.23 29534-2485 61,294 $9,770,000 15,945 2015 3.84 01/01/2015 $612.73 29987-2683 33,598 $6,750,000 14,258 1995 2.36 03/03/2016 $473.42 Price per Land SF NOI/SF $222.08 $ 69.3 7 $149.38 $21.27 $137.32 $7.54 $64.58 $27.15 $59.88 $18.26 $159.40 $27.57 $200,90 $22.33 Cap Rate 4.25% 4.87% 5.49% 4.33% 7.24% 4.50% 4.72% The comparable sales noted above range from 4.25% to 7.24% with an average of 5.06%. We also considered national investor's survey data before reaching a capitalization rate conclusion for the subject site. The following table summarizes prevailing land lease capitalization and discount rates. The former reflects initial rates of return on appraised values for vacant land proposed for development. They do not address increases in land lease payments or the reversion but may include percentage rent. The latter are internal rates of return being achieved by landowners on improved properties. As such, they include changes in land lease payments, percentage rent where applicable, and the reversion of the entire property at the termination of the lease. Total lease terms range from 40 to 99 years, while fixed rent periods range from one to 10 years. Generally, short-term (1-3 years) fixed rent periods auto -adjust based on a national reference rate such as the Consumer Price Index, while long-term (5-10 years) fixed rent periods are based on appraised values but are often subject to negotiation and/or arbitration. JOSEPH J. •BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING 98 Miami International Links - Melreese Country Club Land 18-114-02 LAND RENT RealtyRates.com Investor Survey Land Leases First Quarter 2018 Property Type Capita I ization Rates Discount Rates Min. Max. Avg. Min. Max. Avg. Apartments 2.47% 10.64% 6.51% 5.07% 11.14% 7.51% Golf 2.97% 16.30% 8.90% 5.57% 16.80% 9.90% Health Care/Senior Housing 2.99% 12.01% 7.20% 5.59% 12.51% 8.20% Industrial 2.59% 10.64% 6.87% 5.19% 11.14% 7.87% Lodging 2.99% 15.93% 7,47% 5.59% 16.43% 8.47% Mobile Home/RV Park 2.79% 13.15% 7.84% 5.39% 13.65% 8.84% Office 2.77% 10.64% 7.01% 5.37% 11.14% 8.01% Restaurant 3.15% 15.39% 8.35% 5.75% 15.89% 9.35% Retail 2.51% 12.01% 6.98% 5.11% 12.51% 7.98% Self -Storage 2.81% 10.64% 7.99% 5.41% 11.14% 8.99% Special Purpose 3.25% 16.10% 8.75% 6,34% 18.72% 9.45% All Properties 2.47% 16.30% 7.62% 5.07% 16.80% 8.51% Source: Rea ItyRates.com investor Survey, 1st Qua rter 2018 The capitalization rates for land leases for apartment use range from 2.47% to 10.64% with an average of 6.51%. The rates for retail use range from 2.51% to 12.01% with an average of 6.98%. The rates for office use range from 2.77% to 10.64% with an average of 7.01%. The highest and best use of the subject site is for mixed -use residential/retail/office development. The subject is located within the northwest quadrant of the interchange of State Road-836 and LeJeune Road, having good visibility and exposure. We placed primarily weight on the sales in the local market, since they consider the current economic condition of Miami -Dade County, the amount of commercial land available (on a relative basis), and the competition for mixed -use development sites. As previously mentioned, the comparable sales noted a range from 4.25% to 7.24% with an average of 5.06%. Comparable 5 is in an inferior location compared to the other comparables, and has a capitalization rate well above the range. Excluding this sale, the range of cap rates is 4.25% to 5.49%, with an average of 4.69%. Based on the comparables, as well as the chart above, we are of the opinion that an appropriate overall rate for the subject, assuming that it has been rezoned to its highest and best use, should be between 4.50% to 5.50%. Therefore, we have concluded to an overall rate in the middle of this range of 5.00%. The annual rental rate for the subject's site, as if vacant and rezoned to its highest and best use, is calculated as follows: LAND VALUE CONCLUSION $25.00/SF MULTIPLIED BY CAPITALIZATION RATE 0.05 INDICATED RENTAL RATE $1.25/SF This rental value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel leased is different in size, the rental value may be impacted. The market rental rates presented are expressed as a net rental rate with all expenses associated with the property; real estate taxes, insurance, maintenance, repairs, payroll, management, etc. borne by the lease. JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 99 Miami International Links - Melreese Country Club Land 18-114-02 RECONCILIATION AND FINAL VALUE The Sales Comparison Approach was employed in the valuation of the subject. The values derived via these methods are shown below: "As Rezoned to Highest and Best Use" Value (4/10/2018) Land Value $25.00/SF Final Value Opinion $25.00/SF "As Rezoned to Highest and Best Use" Rental Value (4/10/2018) Final Rental Value $1.25/SF In the approach utilized, we have attempted to summarize all the input data and have briefly explained our methodology in processing and/or analyzing this data. Insofar as we have been able to determine, this data has been obtained from reliable sources and was accepted as being accurate. We give full recognition to the inherent weaknesses of this approach. It should be acknowledged that because the appraisal of real property is not an exact science, professional judgment on our part becomes a component of each of the recognized approach. The Sales Comparison Approach is dependent on a direct comparative technique of the sale, or offering of, similar properties. Since no two properties are ever identical, it is necessary to analyze and determine the degree of comparability between the subject and the sale properties for differences. The primary unit of comparison utilized in the valuation of the subject was the price per SF. A number of recent sales of comparable properties were uncovered, and after the adjustment process, we concluded to a value/price per SF for the subject. After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the market value of the fee simple estate of the subject, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, on a per square foot basis is: $25.00/SF TWENTY-FIVE DOLLARS PER SQUARE FOOT This unit value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel sold is different in size, the unit value may be impacted. We are of the opinion that the rental value of the subject's underlying land, assuming the hypothetical condition that the subject has been rezoned to its highest and best use under Miami 21 Special Area Plan (SAP) zoning, as of April 10, 2018, on a per square foot basis is: $1.25/SF ONE DOLLAR TWENTY-FIVE CENTS PER SQUARE FOOT This rental value conclusion is based on the 131.0738-acre size of the subject. If the size of the parcel leased is different in size, the rental value may be impacted. This rental value should be re-evaluated approximately every five years to take into consideration any change in market value, which would have an effect on the market rental rate. Rental rates for land are typically adjusted every five years in the market. This appraisal is based on extraordinary assumptions that we do not consider any current leases in place. The use of the aforementioned Extraordinary Assumptions might have affected the assignment results. The 'As Rezoned' value estimate in this appraisal is based on the hypothetical condition that the appropriate Special Area Plan (SAP) zoning to build to the property's highest and best use, is in place as of the date of value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 100 Miami International Links - Meireese Country Club Land 18-114-02 ADDENDA JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING lwb'Iw do uio :EIO sacs-ccs(sof) Vei LLLE-Iss Me) 731 suee vaIN013 ream ocz 3erns '133211S Isla MN GINOI smeXan,ns puo seeaui6v3 60Rinsuo3 S9L91 6"1 '04101913089Y PuV ueweIV'ad A SEE DETAIL A -A eA BOUNDARY SURVEY (avail 3N'13h71! , 'maw WZ4 (o4'Oki Sv ra r✓J1 3113Av WILE AN !I - (avoid mown) 312E31616 WZ4 'MN ri xc wuia $ II neon •av:�Yoi=i as gp Rau s VI a) LL w J CO N CO 2 0 0 c 0 CO Z 25°47'45.15"N Without Base Flood Elevation (BFE) Lane n. VA901. With BFE or Depth +e AL AO. AH, VF. AR Regulatory Floodw Ca Et) 0 w LL Ja cc Cl.W ¢j6.1 Area with Flood Risk due to Lev Area of Minimal Flood Hazard Effective LOMRs Digital Data Available No Digital Data Available ❑E MAP PANELS 25°47' 12.75"N MN IVO City of Miami Zoning Information Civic Space Zone CS Miami 21 Zoning Code 421 oar uyovr�iu• 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 MIAMI 21 AS ADOPTED - APRIL 2013 3.4 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. • Alf 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 3.4.1 Lot Area, inclusive of any dedications, is used for purposes of Density and Intensity calculation. 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 MIAMI 21 AS ADOPTED - APRIL 2013 record profile grade elevation of the street Abutting the Principal Frontage of the Building, as deter- 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 not cover more than twenty percent (20%) of roof area for T4 and T5); nor to church spires, steeples, 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 shall be protected by height limitations throughout the entire Civic Institution zoned property of which the NHL is a part, so as to protect the Designed Landscape from the potentially adverse effects MIAMI 21 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 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 AppendixA.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 agency, which demonstrates the credits presently achieved. In addition, a prorated portion of the full bond amount, as indicated in subsection 2(b) above, shall be posted based on the number of 111.25 MIAMI 21 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 rooting 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 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 less than fifty percent (50%) of existing Hardscape area is being repaired or replaced are exempt from the requirements of 3.13.2.d. 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 follows: 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, the remainder of the roof shall have a reflectance value of a minimum of 0.30 and the rooftop deck 111.27 MIAMI 21 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 ARTICLE 4. TABLE 1 TRANSECT ZONE DESCRIPTIONS AS ADOPTED - APRIL 2013 THE NATURAL ZONE consists of lands approximat- ing a wilderness condition, permanently set aside for conservation in an essentially natural state. THE RURALZONE consists of lands in open orcultivated state or sparsely settled. These include woodland, grassland and agricultural land. THE SUB -URBAN ZONE consists of low -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 ofa Mixed -Use but primarily residential urban fabric with a range of Building types including rowhouses, small apartment Buildings, and bungalow courts. Setbacks are short with an urban Streetscape ofwide Sidewalks and trees in planters. Thoroughfares typically define medium- sized blocks. THE URBAN CENTER ZONE consists of higher Density Mixed -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 close 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 public use space and facilities that may contrast in use to their surroundings while reflecting adjacent Setbacks and landscape, THE DISTRICT ZON consists o the lea t regulated Building and accommodates commercial and industrial Uses of a scale and with a Streetscape that facilitate vehicular access. UMW O 11 a▪ i . i' s all r.43 .1111.2111 ■ i R NNE ■ ■1 ti .® .,—i■ ws .m ■ 1 11. In mu MOM 'A t IV.5 MIAMI 21 AS ADOPTED - APRIL 2013 T3 SUB -URBAN T4 URBAN GENERAL T5 URBAN CENTER ARTICLE 4. TABLE 3 BUILDING FUNCTION: USES T6 URBAN CORE c CIVIC 0 DISTRICTS R L 0 R L 0 R L 0 R L 0 CS CI Cl•HD Di D2 D3 DENSITY {UNITS PER ACRE) 9 9 18 36 36 36 65 65 65 150* 150` 150' NIA AZ" 150' 36 N/A NIA RESIDENTIAL SINGLE FAMILY RESIDENCE R R R R R R R R R R R R COMMUNITY RESIDENCE R R R R R R R R R R R R R ANCILLARY UNIT R R R R TWO FAMILY RESIDENCE R R R R R R R R R R MULTI FAMILY HOUSING R R R R R R R R R R DORMITORY E E R R R R E R HOME OFFICE R R R R R R R R R R R R R LIVE - WORK R R R R R R R WORK - LIVE R R LODGING BED & BREAKFAST W R R E R R E R R R R INN R R R E R R R R HOTEL R R R R R OFFICE OFFICE R R R R R R E R R R W COMMERCIAL AUTO -RELATED COMMERCIAL ESTAB, W W W R R ENTERTAINMENT ESTABLISHMENT R W R R R R R ENTERTAINMENT ESTAB. - ADULT R FOOD SERVICE ESTABLISHMENT R R R R W R R W E R R R W ALCOHOL BEVERAGE SERVICE ESTAB. E E E E E E E E E E GENERAL COMMERCIAL R R R R W R R E E R R R W MARINE RELATED COMMERCIAL ESTAB, W W W W E R R R OPEN AIR RETAIL W W W W W E R R R W PLACE OF ASSEMBLY R R E R R E E R R W RECREATIONAL ESTABLISHMENT R R R R E R R R W CIVIC COMMUNITY FACILITY W W W W W W W E W R R RECREATIONAL FACILITY E E E E R R E R R E R R W E W R R RELIGIOUS FACILITY E E E E R R E R R E R R W E R R R W REGIONAL ACTIVITY COMPLEX E E E CIVIL SUPPORT COMMUNITY SUPPORT FACILITY W W W W W W E E R R W INFRASTRUCTURE AND UTILITIES W W W W W W W W W W W W W E W W R W MAJOR FACILITY E R E E E MARINA E W W E W W E W W R E R R R PUBLIC PARKING W W E W W E W W E R R R W RESCUE MISSION E R E W W TRANSIT FACILITIES W W E W W E W W E R R R W EDUCATIONAL CHILDCARE E W W E W W W W W E E R E COLLEGE / UNIVERSITY W W W W E R E ELEMENTARY SCHOOL E E E E E E E W W E W W E R E LEARNING CENTER E E R R R R E E R E MIDDLE /HIGH SCHOOL E E E E E E E W W E W W E R E PRE-SCHOOL E E E E E E E R R E R R E R E RESEARCH FACILITY R R R R R R E R R R W SPECIAL TRAINING I VOCATIONAL E W W W W E R R R W INDUSTRIAL AUTO -RELATED INDUSTRIAL ESTBL. R R W MANUFACTURING AND PROCESSING R R W MARINE RELATED INDUSTRIAL ESTBL. R R R PRODUCTS AND SERVICES R R W STORAGE/DISTRIBUTION FACILITY R R W tt Anowe a Uy Rrgnt WAllowed By Warrant: Administrative Process - CRC (Coordinated Review Committee) E Allowed By Exception: Public Hearing- granted by PZAB (Planning, Zoning & Appeals Board) Boxes with no designation signify Use prohibited. Uses may be further modified by Supplemental Regulations, State Regulations, or other provisions of this Code. See City Code Chapter 4 for regulations related to Alcohol Beverage Service Estab. * Additional densities in some T6 zones are illustrated in Diagram 9. **AZ: Density of lowest Abutting Zone IV.8 MIAMI 21 AS ADOPTED - APRIL 2013 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED) c - civic CS — CIVIC SPACE CI — CIVIC INSTITUTION CI -HD — CIVIC INSTITUTION HEALTH DISTRICT DENSITY (UPA) N/A DENSITY OF ABUTTING ZONE 150 UNITS PER ACRE RESIDENTIAL All intensity, parking and loading regulations to match that of the most restrictive Abutting zone. • Parking requirement may be reduced according to the Shared Parking Standard, Article 4, Table 5. • Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces required. Uses are permissible as listed in Table 3, limited by compliance with: • Density and all intensity, parking and loading regulations to match that of the most restrictive Abutting zone. • Minimum of 1 parking space for every 800 square feet of Residential Use. • Loading - See Article 4, Table 5 LODGING • Minimum of 1 parking space for every 800 square feet of Residential Use. • Loading - See Article 4, Table 5 OFFICE Office Uses are permissible as listed in Table 3. • Minimum of 3 parking spaces for every 1,000 square feet of Office Use. • Minimum of one Bike space for every 20 vehicular spaces required (before any reductions). • Parking ratio may be reduced according to the shared parking standard. • Parking may he provided offsite in CI, D, T5 or T6 within 500 feet through a parking management plan/zone. • Minimum of 1 parking space for every 800 square feet of Office Use. • Loading - See Article 4, Table 5 COMMERCIAL Commercial Uses are permissible as listed in Table 3. • Minimum of 3 parking spaces for every 1,000 sf of com- mercial space. • Minimum of one Bike spaceforevery 20 vehicular spaces required (before any reductions). • Parking ratio may be reduced according to the shared parking standard. • Loading - See Article 4, Table 5. • Loading needs, including maneuvering, shall be accom- modated en site. Commercial Uses are permissible as listed in Table 3, limited by compliance with: • Building area allowed for Commercial Use on each lot shall be less than 25°/ Building Boor area total. • Minimum of 3 parking spaces for every 1,000 sf of com- mercial space • Minimum of 1 parking space for every 7 seats in a Major Sports Facility ` Minimum done Bike space for every 20vehicular spaces required (before any reductions). • Parking ratio may be reduced according to the shared parking standard. • Parking ratio may be reduced for Major Sports Facility within 1 mile of a Metrorail, Metramover Station, or mass transit facility by up to 10%. • Loading - See Article 4, Table 5 • Loading needs, including maneuvering, shall be accom- modated on site. • Minimum of 1 parking space for every 800 square feet of Commercial Use. • Loading - See Article 4, Table 5 CIVIC Civic Uses are permissible as listed in Table 3. • Minimum of 1 parking spaceforevery 5seats of assembly uses. • Minimum of 1 parking spaceforevery 1,000 sfof exhibition or recreation space, and parking spaces for other Uses as required. • Minimum of 1 parking space for every staff member for recreational uses. • Minimum of 1 parking space for every 500 sf of Building area for recreational uses. • Minimum of one Bike space for every 20 vehicular spaces required (before any reductions), • Parking may be provided offsite in Cl, D, T5 or T6 within 500 feel through a parking management plan/zone. Civic Uses are permissible as listed in Table 3. • Minimum of1parking space for every 5seats ofassembly uses, • Minimum of 1 parking space forevery1,000 sf of exhibition or recreation space, and parking spaces for other Uses as required, • Minimum of 1 parking space for every staff member for recreational uses. • Minimum of 1 parking space for every 500 sf of Building area for recreational uses. •Minimum ofone Bike space for every 20vehicular spaces required (before any reductions). • Parking may be provided offsite in CI, 0, T5 or T6 within 500 feet through a parking management plan/zone. • Minimum of 1 parking space for every 800 square feet efCivicUse. • Loading - See Article 4, Table 5 CIVIL SUPPORT Civil Support Uses are permissible as listed in Table 3, limited by cempliance with: • For Civil Support, a minimum of 1 parking space forevery 1,000 sf. • For Marine Uses, a minimum of 1 parking space for every 5 slips. Civil Support Uses are permissible as listed in Table 3, limited by compliance with: • For Civil Support, a minimum of 1 parking space for every 1,000 sf. • For Assembly uses, a minimum of 1 parking space for every 5 seats. • For Marine Uses, a minimum oft parking spacefor every 5 slips. • Adult Daycare - Minimum of 1 space per staff member and 1 space for owner. • Minimum of 1 parking space for every 800 square feet of Civil Support Use. • Loading - See Article 4, Table 5 EDUCATIONAL Educational Uses are permissible as fisted in Table 3, hmiled by compliance with: • Minimum of 2 parking spaces for every 1,000 sf of educational space • Minimum chore Bike Space for every 20vehicular spaces required (before any reductions). • Childcare Facilities - Minimum of 1 space per staff member, 1 space for owner and 1 drop-off space for every 10 clients cared for. Educational Uses are permissible as fisted in Table 3, limited by compliance with: • Minimum of 2 parking spaces for every 1,000 sf of educational space • Schools — Minimum ol1 parking space for each faculty or staff member. 1 visitor parking space per 100 students, 1 parking space per 5 students in grades 11 and 12 or College/University. • Childcare Facilities - Minimum of 1 space per staff member, 1 space for owner and 1 drop-off space for every 10 clients cared for. • Minimum ofone Bike space for every 20 vehicular spaces required (before any reductions). • Minimum of 1 parking space for every 800 square feet of Educational Use. • Loading - See Article 4, Table 5 (V.18 MIAMI 21 AS ADOPTED - APRIL 2013 ARTICLE 4. TABLE 5 BUILDING FUNCTION: PARKING AND LOADING SHARED PARKING STANDARDS SHARING FACTOR Function with Function RESIDENTIAL LODGING OFFICE COMMERCIAL The shared Parking Standards Table provides the method for calculating shared parking for buildings with more than one Use type. It refers to the parking requirements that appear in Table 4. The parking required for any Iwo Functions an a Lot is calculated by dividing the number of spaces required by the lesser of the two uses by the appropriate factor from this Table and adding the result to the greater use parking requirement. For instance: for a building with a Residential Use requiring 100 spaces and a Commercial Use requir- ing 20 spaces, the 20 spaces divided by the sharing factor of 1.2 would reduce the total requirement to 100 plus 17 spaces. For uses not indicated in this chart on a mixed use lot a sharing factor of 1.1 shall be allowed. Additional sharing is allowed by Warrant. OFF•STREET PARKING STANDARDS ANGLE OF PARKING ACCESS AISLE WIDTH ONE WAY TRAFFIC SINGLE LOADED ONE WAY TRAFFIC DOUBLE LOADED TWO WAY TRAFFIC DOUBLE LOADED 90 23 ft 23ft 23 ft 60 12.8 ft 11.8 ft 19.3 ft 45 10.8 ft 9.5 ft 18.5 ft Parallel 10ft 10ft 20 ft Standard stall: 8.5 ft x 18 ft minimum • Driveways shall have a minimum of 10 feet of paved width of a one-way drive and 20 feet for a two-way drive for parking area providing 10 or more stalls. • Pedestrian entrances shall be at least 3 feet from stall, driveway or access aisle. • Allowable slopes, paving, and drainage as per Florida Building Code. • Off-street Parking facilities shall have a minimum vertical clearance of 7 feet. Where such a facility is to be used by trucks or loading Uses, the minimum clearance shall be 12 feet Residential and 15 feet Commercial and Industrial. • Ingress vehicular control devices shall be located so as to provide a minimum driveway of 20 feet in length between the Base Building Line and dispenser. • For requirements of parking lots, refer to Article 9 and the City of Miami Off-street Parking Guides and Standards. LOADING BERTH STANDARDS T5, T6, CS, CI•HD & CI DISTRICT NOTES RESIDENTIAL* From 25,000 sf to 500,000 sf Berth Size Loading Berths 420 sf 1 per first 100 units 200 sf 1 per each additional 100 units or fraction of 100. Greater than 500,000 sf Berth Size Loading Berths 660 sf 1 per first 100 units 200 sf 1 per each additional 100 units or fraction of 100, Berth Types Residential*: 200 sf = 10 ft x 20 ft x 12 ft Commercial**: 420 sf = 12 ft x 35 ft x 15 ft Industrial***: 660 sf= 12 ft x 55 ft x 15 ft esidential loading berths shall be set back a distance equal to their length. ** 1 Commercial berth may be substituted by 2 Residential berths *** f Industrial berth may be substituted by 2 Commercial berths. A required Industrial or Commercial loading berth may be substituted by a Commercial or Residential loading berth, by Waiver, if the size, character, and operation of the Use is found to not require the dimensions specified and the required loading berth dimension could not otherwise be provided according to the regulations of this Code. LODGING From 25,000 sf to 500,000 sf Berth Size Loading Berths 420 sf 1 per 300 rooms 200 sf 1 per 100 rooms Greater than 500,000 sf Berth Size Loading Berths 660 sf 1 per 300 rooms 200 sf 1 per 100 rooms From 25,000 sf to 500,000 sf Berth Size Loading Berths 420 sf 1 per 300 rooms 200 sf 1 per 100 rooms Greater than 500,000 sf Berth Size Loading Berths 660 sf 1 per 300 rooms 200 sf 1 per 100 rooms OFFICE COMMERCIAL'* lNDl1STRIAL**` From 25,000 sf to 500,000 sf Berth Size Loading Berths Area 420sf 1st 25Ksf-50Ksf 420sf 2nd 50Ksf-100Ksf 420sf 3rd 100K sf - 250K sf 420sf 4th 250K sf - 500K sf Greater than 500,000 sf From 25,000 sf to 500,000 sf Berth Size Loading Berths Area 420sf 1st 25Ksf-50Ksf 420sf 2nd 50Ksf-100Ksf 420sf 3rd 100Ksl-250Ksf 420sf 41h 250Ksf-500Ksf Greater than 500,000 sf Berth Size Loading Berths Area 660 sf 1 / 500K sf Berth Size Loading Berths Area 660 sf 1 / 500K sf IV.22 MIAMI 21 ARTICLE 4. TABLE 6 FRONTAGES AS ADOPTED - APRIL 2013 a. Common Lawn: a Frontage wherein the Facade is set back sub- stantially from the Frontage Line. The front yard created remains unfenced and is visually continuous with adjacent yards, supporting a common landscape. The Setback can be densely landscaped to buffer from higher speed Thoroughfares. b. Porch & Fence: a Frontage wherein the Facade is set back from the Frontage Line with an attached Porch permitted to encroach. A fence at the Frontage Line maintains the demarcation of the yard while not blocking view into the front yard. c. Terrace or Light Court: a Frontage wherein the Facade is set back from the Frontage Line by an elevated terrace or a sunken light court. This type buffers residential use from urban sidewalks and removes the private yard from public encroachment. The raised terrace is suitable for outdoor cafes, d. Forecourt: a Frontage wherein a portion of the Facade is close to the Frontage Line with a portion set back. The forecourt with a large tree offers visual and environmental variety to the urban Streetscape. The Forecourt may accommodate a vehicular drop off. e. Stoop: a Frontage wherein the Facade is aligned close to the Frontage Line with the first Story elevated from the sidewalk sufficiently to secure privacy for the windows. The entrance is usually an exterior stair and landing. This type is recommended for ground -floor Residential Use. f. Shopfront: a Frontage wherein the Facade is aligned close to the Frontage Line with the Building entrance at sidewalk grade. This type is conventional for retail Use. It has substantial glazing al the sidewalk level and an Awning that may overhang the sidewalk. g. Gallery: a Frontage wherein the Facade is aligned close to the Frontage Line with an attached cantilevered or a lightweight colonnade overlapping the sidewalk. This type is conventional for retail Use. The Gallery shall be no less than 15' feet wide and may overlap the whole width of the sidewalk to within 2 feet of the curb. Permitted by Special Area Plan. h. Arcade: a Frontage wherein the Facade includes a colonnade that fi,I overlaps the sidewalk, while the Facade at sidewalk level remains at the Frontage Line. This type is conventional for retail Use. The arcade shall be no less than 15' feet wide and may overlap the whole width of the sidewalk to within 2 feet of the curb. Permitted by Special Area Plan. SECTION LOT PRIVATE ► Frontage PLAN R.O.W. 41 PUBLIC Frontage • ,Ins III IV.23 MIAMI 21 AS ADOPTED - APRIL 2013 ARTICLE 4. TABLE 7 CIVIC SPACE TYPES This table describes the standards for areas zoned as Civic Space (CS) and for Public Parks and Open Space provided by the Public Benefits Program. Civic Space Types should be at the ground level, landscaped and/or paved, open to the sky and shall be open to the public. Civic Space Types may be publicly or privately owned. Open Space requirements for each zone are described in Article 5. a. Park: A natural preserve available for unstructured and structured recreation programs. A Park may be independent of surrounding Building Frontages. Its landscape may be naturalistic and consist of paths and trails, meadows, woodland, sports fields and open shelters. Parks may be Conservation Areas, preserving natural conditions and their size may vary. b. Green: An Open Space, available for unstructured recreation programs. A Green may be spatially defined by landscaping rather than Building Frontages. Its landscape shall consist of lawn and trees, naturalistically disposed. The minimum size shall be one acre and the maximum shall be 4 acres. c. Square: An Open Space available for unstructured recreation programs and civic purposes. Asquare is spatially defined by Building Frontages with streets on at least one Frontage. Its landscape shall consist of pavement, lawns and trees, formally disposed. Squares shall be located at the intersection of important Thoroughfares. The minimum size shall be 113 acre and the maximum shall be 2 acres. d. Plaza: An Open Space available for civic purposes and programmed activities. A Plaza shall be spatially defined by Building Frontages and may include street Frontages. Its landscape shall consist primarily of pavement and trees. Plazas shall be located at the intersection of importantThoroughfares. The minimum size shall be 1/8 acre and the maximum shall be 2 acres. e. Courtyard 1 Garden: An Open Space spatially defined by Buildings and street walls, and visually accessible on one side to the street. f. Playground: An Open Space designed and equipped for the recreation of children. A Playground shall be fenced and may include an open shelter. Playgrounds shall be interspersed within residential areas and may be placed within a Block. Playgrounds may be included within Parks and Greens. There shall be no minimum or maximum size. g. Pedestrian Passage: An Open Space connecting other public spaces, that is restricted to pedes- trian use and limited vehicular access, of a minimum width of 20 feet. Building walls entreating a Pedestrian Passage shall have frequent doors and windows. In T6-36, T6-48, T6-60 and T6-80, a Pedestrian Passage may be roofed. h. Community Garden: A g{puping of garden plots available for small-scale cultivation, generally to 1 residents of apartments and other dwelling types without private gardens. Community gardens should accommodate individual storage sheds. WU° oqi r. o 05, 0.�0 4 000 o'o !---\ Jr 1L = ��000 ' L. A o - 4-4 o 000,o.. 1 r i r J P 0 s &OOOC O • O 15 11if tp �J u -OO G ti it- 4 tL - n [ B .d 1 ri 1 1s= IV.24 MIAMI 21 ARTICLE 4. TABLE 8 DEFINITIONS ILLUSTRATED AS ADOPTED - APRIL 2013 a. THOROUGHFARE & FRONTAGES Building Private Frontage Public Frontage Vehicular Lanes Public Frontage Private Frontage Building Private Lot TURNING RADIUS \ Thoroughfare( R.O.W.) 1-Radius at the Curb 2-Effective Turning Radius d. LOT LAYERS I. .1 3"Layer grayer 7^Layer f. SETBACK DESIGNATIONS 3 i 2 i i i i i i i £ i i � i ! V- 2 1 n 1 214 1 i 1 7/ 1-Front Setback 2-Side Setback 3-Rear Setback c. BUILDING DISPOSITION Private Lot e. FRONTAGE & LOT LINES 11 I I 5i 4 g. VISIBILITY TRIANGLE Fig 1. Fig 2. AtThoroughfare inter- sections with Building Setbacks At intersections of driveways with Thor- oughfare with no Building Setbacks 1- Principal Building 2- Backbuilding 3- Outbuilding 1-Frontage Line 2-Lot Line 3-Facades 4-Elevations 5-Streetscreen 1 Cr-0" Fig 3. At Thoroughfare in- tersections with no Building Setbacks IV25 MIAMI 21 AS ADOPTED - APRIL 2013 5.7 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 predominantly Abutting 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. ACI Zone entirely Abutting T6-8 or higher, may conform to the maximum Height of any higher Abutting Transect Zone. V.43 MIAMI 21 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 adjusted V.44 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) WA DENSITY OF ABUTTING ZONE 150 UNITS PER ACRE BOATS HOUSEBOAT HOUSE BARGE Occupancy of private pleasure crafts and houseboats or house barges shall not be allowed except for those specifically grandfathered and regulated by Ordinance #10932, adopted October 24, 1991. Occupancy of private pleasure crafts and houseboats or house barges shall not be allowed except for those specifically grandfathered and regulated by Ordinance #10932, adopted October 24, 1991. Occupancy of private pleasure crafts and houseboats or house barges shall rot be allowed except for those specifically grandfathered and regulated by Ordinance #10932, adopted October 24, 1991. DOCKS PIERS Extension of docks and Piers into Biscayne Bay are limited to 35 feet. However, by Exception a 600 feet maximum extension of docks and Piers into Biscayne Bay may be allowed. Extension of docks and Piers into other waterways is limited to 10 feet or 10% of the width of the waterway, whichever is less. However, by Exception further extension may be approved, subject to approval from all applicable agencies. Extension of docks and Piers into Biscayne Bay are limited to 35 feet. However, by Exception a 600 feet maximum extension of docks and piers into Biscayne Bay may be allowed. Extension of docks and Piers into other waterways is limited to 10 feet or 10% of the width of the waterway, whichever is less. However, by Exception further extension May be approved, subject to approval from all applicable agencies. Extension of docks and Piers into Biscayne Bay are limited to 35 feet. However, by Exception a 600 feet maximum extension of docks and piers into Biscayne Bay may be allowed. Extension of docks and Piers into other waterways is limited to 10 feet or 10% of the width of the waterway, whichever is less. However, by Exception further extension may be approved, subject to approval from all applicable agencies. OPEN AIR RETAIL Subject to the following additional requirements: Access to site must be from a major Thoroughfare. Distance separation of any open air retail shall be a minimum of 75 feet measured from any property within T3, T4-R, T5-R, or 76-R Zone. Operation limited to weekends and legal holidays for a maximum of 3 consecutive days between the hours of 7:00 AM and 7:00 PM, Provision of paving striping for stalls and parking spaces, Provision of on -site restroom facilities, Subject Access Distance minimum T3, Operation maximum 7:00 Pr4i, spgt.es,' Pro to to separation of T4-R, AM and km ii lion the following additional requirements: site must be from a major Thoroughfare. of any Open Air Retail shall be a 75 feet measured from any property within T5-R, or T6-R Zone. limited to weekends and legal holidays for a of 3 consecutive days between the hours of 7:00 PM. 1 paving striping for stalls and parking on -site restroom facilities. Subject to the requirements of Section 6.3.4 ADULT DAYCARE Fri' Minimum Fo Minimum adult. 6 to 9 adults: of 350 square feet of indoor activity area. 10 or more adults: of 35 square feet of indoor activity area per For 6 to 9 adults: Minimum of 350 square feet of indoor activity area. For 10 or more adults: Minimum of 35 square feet of indoor activity area per adult. COMMUNITY SUPPORT FACILITY Assisted Living Facilities: Allowed by Exception and are subject to the following additional requirements: Minimum distance requirement of 2,500 feet between proposed facility and another existing facility. Minimum distance requirement of 1000 feet between proposed facility and any T3 or T4-R Zone. PERSONAL WIRELESS SERVICE FACILITY 'Subject 10 the requirements of Section 6.4. Subject 10 the requirements of Section 6.4. Subject to the requirements of Section 6.4. HELICOPTER LANDING SITE Helicopter landing sites as regulated by federal and state law may be permitted by Warrant subject to the following additional requirements: May only be used forihelanding and takeoflofhelicopters dropping off and picking up passengers and cargo, and may not include fueling, repair, or long term parking or storage of helicopters, Unless used for emergency operations (police, fare, and hospital) landings and takeoffs shall be restricted to Monday through Friday from 9:00AM to 5 PM on parcels Abutting T3, T4, T5-R, and T6-R Zones. Ground level sites shall be located away from Buildings, trees, or significant terrain features to avoid possible air turbulence. Rooftop sites shall be given priority over ground level sites in congested areas. Helicopter landing sites as regulated by federal and state law may be permitted by Warrant subject to the following additional requirements: May only be used forthe landing and takeoff of helicopters dropping off and picking up passengers and cargo, and may not Inc#ude fueling, repair, or long term parking or storage of helicopters. Unless used for emergency operations (police, fire, and hospital) landings and takeoffs shall be restricted to Monday through Friday from 9:00 AM to 5 PM on parcels Abutting T3, T4, T5-R, and T6-R Zones. Ground level sites shall be located away from Buildings, trees, or significant terrain features to avoid possible air turbulence. Rooftop sites shall be given priority over ground level sites in congested areas. Helicopter landing sites as regulated by tederal and state lawmay be permitted by Warrant subject to the following additional requirements: Mayonlybeused forthelanding and takeoftofhelicopters dropping off and picking up passengers and cargo, and may not include fueling, repair, or long term parking or storage of helicopters. Unless used for emergency operations (police, fire, and hospital) landings and takeoffs shall be restricted to Monday through Friday from 9:00AM to 5 PM on parcels Abutting T3, T4, T5-R, and T6-R Zones. Ground level sites shall be located away from Buildings, trees, or significant terrain features to avoid possible air turbulence. Rooftop sites shall be given priority over ground level sites In congested areas. CHILDCARE Minimum of 35 square feet of usable indoor floor space per child on license. Minimum 0145 square feet of usable outdoor play area per child. A minimum outdoor play area shall be provided for one half of license capacity. In no event shall any outdoor play area be less than 450 square feet. The minimum standard of outdoor play area does not apply for children under one year of age. Minimum of 35 square feet of usable indoor floor space , per child on license. Minimum of 45 square feet of usable outdoor play area per child. A minimum outdoor play area shall be provided for one half of license capacity. In no event shall any outdoor play area be less than 450 square feet. The minimum standard of outdoor play area does not apply for children under one year of age. Vehicularentrancemust bewithin 300feetofarterial road. Minimum of 35 square feet of usable indoor Floor space per child on license. Minimum of 45 square feel of usable outdoor play area per child. A minimum outdoor play area shall be provided for one hall of license capacity. In no event shall any outdoor play area be less than 450 square feet. The minimum standard of outdoor play area does not apply for children under one year of age. Vehicularentranccmustbewithin 300feetofarterial road. MAJOR SPORTS FACILITY Modifications inSetbacks up to a maximum of fifty percent (50%) of the required Setbacks may be approved by Waiver when Liner Uses are provided along parking Structures. Commercial Uses may exceed twenty-five percent (25%) of the Building area by Warrant. ' 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 CFSTRICT DENSITY BUPA) NIA DENSITY OF ABUTTING ZONE 150 UNITS PER ACRE REGIONAL ACTIVITY COMPLEX Regional Activity Complex: Allowed by Exception with City Commission approval and are subject to the following additional requirements: Minimum distance requirement of 1,000 feet between proposed facility and any T3 or T4 Zones. Regional Activity Complex: Allowed by Exception with City Commission approval and are subject to the following additional requirements: Minimum distance requirement of 1,000 feet between proposed facility and any T3 or T4 Zones. VI.18 MIAMI 21 AS ADOPTED - APRIL 2013 PERMITTING PROCESS DIAGRAM Applicant Zoning Office Referral DIAGRAM 14 PERMITTING PROCESS PD Planning Department CRC Coordinated Review Committee PZAB Planning Zoning and Appeals Board By Right Building Permit Waiver Preapplication Submit to Zoning Office' PD Zoning Office Decision Building Permit Appeal PZAB Warrant (Uses Only) Preapplication Submit to Planning Department' CRC Planning Department Decision Appeal PZAB Appeal City Comm. Building Permit Exception Preapplication submit to Planning Department' 1 CRC Planning Department Certification Appeal City Comm. Bui ding Permit Variance Preapplication Submit to Planning Department' Planning Department Certification File with Hearing Boards' PZAB Appeal City Comm. Building Permit Zoning Change Preapplication Submit to Planning Department' Planning Department Certification File with Hearing Boards" PZAB City Commission Building Permit VIL5 MIAMI 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED • JANUARY 2018 Visibility Triangles shall be maintained to include an area bounded by the first ten (10) feet along the intersecting edges of the Base Building Line, projected where rounded, and a line running across the Lot and connecting the ends of such ten -foot lines. See Article 4, Table 8. 3.8.4.2. Variances prohibited. No Variances from the provisions of Section 3.8.4 are permitted. 3.9 SPECIAL AREA PLANS The purpose of a Special Area Plan is to allow parcels greater than nine (9) Abutting acres in size to be master planned so as to allow greater integration of public improvements and Infrastructure, and greater flexibility so as to result in higher or specialized quality building and Streetscape design within the Special Area Plan. The purpose of a Special Area Plan further is to encourage the assembly and master planning of parcels greater than nine (9) Abutting acres in size, in order to provide greater integration of public and private improvements and Infrastructure; to enable Thoroughfare connectivity; to encourage a variety of Building Heights, massing and Streetscape design, and to provide high quality design elements, all in order to further the intent of this Code expressed in Article 2. 3.9.1 General a. The single or multiple owner(s) of Abutting properties in excess of nine (9) acres may apply for a rezoning to a Special Area Plan. b. A Special Area Plan shall be approved by the process of rezoning with or without Transect changes. c. A Special Area Plan shall assign Thoroughfares, Transect Zones and Civic Space Types, with appropriate transitions to Abutting areas. Guidelines for Thoroughfares and Public Frontages may be adjusted to the particular circumstances of the Special Area Plan. d. A Special Area Plan shall include a map of the Thoroughfares and Transect Zones, and the standards that deviate from the requirements of Article 5. e. A Special Area Plan shall assign at least five percent (5%) of its aggregated Lot Area to a Civic Space Type. Civic Building sites are to be located within or adjacent to Civic Space Types or at the axial termination of significant Thoroughfares. The developer shall be responsible for con- structing the public improvements within the Special Area Plan, including but not limited to the Civic Space Types and Thoroughfares. f. Development within the Special Area Plan shall be pursuant to a recorded development agree- ment that will establish the allocation of Thoroughfares and Civic Space Types and Building Area among the Building sites, and the creation and retention of the public benefits. g. Unless a Building is specifically approved as part of the Special Area Plan, any Building shall be reviewed by the Planning Director, after referral to and recommendation from the CRC for 111.19 MIAMI 21 ARTICLE 3. GENERAL TO ZONES AS ADOPTED - JANUARY 2018 conformance to the Plan, prior to issuance of the Building Permit. h. A Special Area Plan may include: 1. A differentiation of the Thoroughfares as a Primary -Grid (A -Grid) and a Secondary -Grid (B-Grid). Buildings along the A -Grid shall be held to the highest standard of this Code in support of pedestrian activity. Buildings along the B-Grid may be more readily considered for automobile -oriented standards allowing surface parking Tots, unlined parking decks, and drive-throughs. The Frontages assigned to the B-Grid shall not exceed thirty percent (30%) of the total length within a Special Area Plan. For Frontages on the B-Grid, parking areas may be allowed in the Second Layer. 2. Retail Frontage requiring that a Building provide a Commercial Use at sidewalk level along the entire length of the Frontage. The Commercial Use Building shall be no less than seventy percent (70%) glazed in clear glass and provided with an Awning overlapping the sidewalk as generally illustrated in Article 4, Table 6. The first floor should be confined to Retail Use through the depth of the Second Layer. 3. Gallery or Arcade Frontage, requiring that a Building provide a permanent cover over the sidewalk, either cantilevered or supported by columns. The Gallery or Arcade Frontage may be combined with a Retail Frontage as shown in Article 4, Table 6. Gallery or Arcade Front- age within the First Layer may apply towards Open Space requirements. 4. Build -to -lines that differ from Transect Zone Setback requirement. 5. ATerminated Vista location, requiring that the Building be provided with architectural articula- tion of a Type and character that responds to the location. 6. A Pedestrian Passage, requiring a minimum ten (10) foot wide pedestrian access be reserved between Buildings. 7. A preservation plan acceptable to the Historic and Environmental Preservation Board for any historic resources in the area of the Special Area Plan. 8. Area Design Guidelines. 9. A parking management program that enables shared parking among public and private Uses. 10. Flexible allocation of development capacity and Height, excluding Density on individual sites within the Special Area Plan shall be allowed so long as the capacity or Height distribution does not result in development that is out of Scale or character with the surrounding area, and provides for appropriate transitions. 3.10 HISTORIC PRESERVATION STANDARDS See Chapter 23 of the City Code, titled Historic Preservation, for regulations and additional height requirements. 111.20 plicate public_user 04119/2018 Miami -Dade County, Florida 2017 Real Estate Property Taxes Notice of Ad Valorem Tax and Non -Ad Valorem Assessments SEE REVERSE SIDE FOR IMPORTANT INFORMATION FOLIO NUMBER MUNICIPALITY MILL CODE 01-3132-000-0080 CITY OF MIAMI-DEPT OF P&D ASSET MANAGEMENT DIVISION 444 SW 2 AVE STE #325 MAW, FL 33130-1910 MIAMI Property Address 1400 NW 37 AVE Exemptions: 80 - STATE 0100 AD VALOREM TAXES 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 Prof Childrens Trust Authority Miami -Dade County County Wide Operating County Wide Debt Service Library District Municipal Governing Board Miami Operating Miami Debt Service 2,523,656 6.77400 2,523,656 0.22000 2,523,656 2,523,656 2,523,656 2,523,656 2,523,656 2,523,656 2,523,656 2,523,656 0.03200 0.12750 0.13840 0.04410 0.46730 4.66690 0.40000 0.28400 2,523,656 7.43650 2,523,656 0.59350 NON -AD VALOREM ASSESSMENTS 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Save Time. Pay Online. www.miamidade.gov t RETAIN FOR YOUR RECORDS t (Combined taxes and assessments $0.00 2017 Real Estate Property 4, DETACH HERE AND RETURN THIS PORTION WITH YOUR PAYMENT 4- Taxes FOLIO NUMBER 01-3132-000-0080 PROPERTY ADDRESS 1400 NW 37 AVE LEGAL DESCRIPTION 32 53 41 130.33 AC MIL PT OFNE1/4WOFR/W&NOFLINE RUNNING 302FTS OF CANAL IN SEC 29 CITY OF MIAMI-DEPT OF P&D ASSET MANAGEMENT DIVISION 444 SW 2 AVE STE #325 MIAMI, FL 33130-1910 * 1+ 0 1 3 1 3 2 0 0 6 0 0 8 0+ 2 0 1 7 Make checks payable to Miami -Dade Tax Collector (In U.S. funds drawn on U.S. banks) Amount due May be Subject to Change Without Notice Mail payments io: 200 NW 2nd Avenue, Miami, EL 33128 Du .licate +ublic user 04/1912018 PAY ONLY ONE AMOUNT If Received By Please Pay Apr 30, 2018 $0,00 1000000000000000000131320000080201700000000000000000000009 plicate public_user 04/19/2018 Miami -Dade County, Florida 2017 Real Estate Property Taxes Notice of Ad Valorem Tax and Non -Ad Valorem Assessments SEE REVERSE SIDE FOR IMPORTANT INFORMATION FOLIO NUMBER MUNICIPALITY MILL CODE 01-3132-000-0090 CITY OF MIAMFDEPT OF PRO ASSET MANAGEMENT DIVISION 444 SW 2 AVE STE #325 MIAMI, FL 33130-1010 Property Address 1550 NW 37 AVE MIAMI Exemptions: 80 - STATE 0100 AD VALOREM TAXES Miami -Dade School Board School Board Operating School Board Debt Service State and Other Florida Inland Navigation Dist South Florida Water M imt Dist Okeechobee Basin Everglades Construction Proi Childrens Trust Authority Miami -Dade County County Wide Operating County Wide Debt Service Library District Municipal Governing Board Miami Operating Miami Debt Service 5,840,494 6.77400 5,840,494 0.22000 5,813,626 5,813,626 5,813,626 5,813,626 5,813,626 5,813,626 5,813,626 5,813,626 0.03200 0.12750 0.13840 0.04410 0.46730 4.66690 0.40000 0.28400 5,813,626 7.43650 5,813,626 0.59350 NON -AD VALOREM ASSESSMENTS 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Save Time. Pay Online. www.miamidade.gov t RETAIN FOR YOUR RECORDS t (Combined taxes and assessme nts $0.00 2017 Real Estate Property 4. DETACH HERE AND RETURN THIS PORTION WITH YOUR PAYMENT 4- Taxes FOLIO NUMBER 01-3132-000-0090 PROPERTY ADDRESS 1550 NW 37 AVE LEGAL DESCRIPTION 32 53 41 48.42 AC PT OFNE1/4WOFSAL RYR/W& LESS 8-33 AC DESC AS PT OF NE1l4W OF SAL R CITY OF MIAMI-DEPT OF P&D ASSET MANAGEMENT DIVISION 444 SW 2 AVE STE #325 MIAMI, FL 33130-1910 + 0 1 3 3 2 0 0 0 0 0 9 0+ Make checks payable to Miami -Dade Tax Collector (in U.S. funds drawn on U.S. banks) Amount due May be Subject to Change Without Notice Mail payments 1o: 200 NW 2nd Avenue, Miami, FL 33128 71 Du •licate .ublic user 04/19/2018 PAY ONLY ONE AMOUNT If Received By Please Pay Apr 30, 2018 $0.00 1000000000000000000131320000090201700000000000000000000000 Visit our website for business opportunities at: www.miamigov.com `T' of r>,",t 4 . r if la` .c ` " F �` co., F��'�° Cityof Miami Purchase Order Department of Purchasing P.O. Box 330708 Miami, Florida 33233-0708 (305) 416-1922 Fax - (305) 416-1925 PURCHASE ORDER/RELEASE NUMBER 1804038 Show this number on all packages. invoices, and shipping papers. Change Number 0 Change Date Page No. 1 of 3 Order Date 04/03/2018 Bid/Contract Number Buyer: Richard McLaren Taxpayer ID Supplier No. Telephone No. City of Miami - PF - Asset Management 2nd Ave., 3rd Floor FL 33130 112004892 2113 305-448-1663 I2 444 SW Joseph J Blake & Associates, Inc 4000 Ponce De Leon Blvd Suite 410 Coral Gables, FL 33146 Miami, co City of 0 444 SW I Miami, Miami - Finance - 2nd Ave, 6th Floor FL 33130 416-1987 Email also forward a copy General Accounting - payables@miamigov com above. Customer Account Number m Fax - (305) Please of the invoice to the Ship To address Effective Start Date Effective End Date Total Agreement Limit Line Commodity Code Description/Delivery Date Qty Unit Unit Price Extended Price 1 94615-00 Appraisal of the property located at 1400 NW 37 Avenue & 1550 NW 37 Avenue. 7400 Dollar 1.00 7,400.00 Total Amount: Pursuant to RFQ 498330 as authorized by Resolution 16-505 7,400.00 FOB: Destination Requisition Number: 170872 Vendor Instructions 1. Florida Tax Exempt ID: Ship Via: Department: 221090 - DREAM - Knight Center Managerial 2. Invoices: Direct Invoices in Duplicate to the address shown above. 3. Terms and conditions set forth in our Bid or Quotation and on the Payment Terms: Net 30 Contact Person: Hernandez, Yvonne reverse side hereof are incorporated heroin by reference become part of this order Telephone Number: (305)416-1429 04/03/2018 �� Annie Perez, CPPO, Director of Procurement Date Approved C FN/PC 506 Rev. 12/05 BY ACCEPTING THIS ORDER, VENDOR AGREES TO THE FOLLOWING TERMS AND CONDITIONS 1. ACCEPTANCE OF PURCHASE ORDER: A Purchase Order is given for immediate acceptance by the VENDOR. Unless promptly notified to the contrary, the CITY will assume the VENDOR accepts the order as written and will make delivery as specified on the document. 2. ENTIRE AGREEMENT: All specifications, drawings, and data submitted to the VENDOR with this order or the solicitation for this order are hereby incorporated herein and made a part hereof. This contract contains the entire agreement of the parties. No charge in quantities, prices, specifications, terms, or shipping instructions will be allowed except on written authority of the CITY of Miami Purchasing Department. Any additional or different terms and conditions proposed by VENDOR are objected to and hereby rejected unless specifically agreed to by the CITY. 3. INDEMNIFICATION: The VENDOR hereby agrees to indemnify, save, and hold harmless the CITY from all claims, demands, liabilities, and suits of any nature whatsoever arising out of, because of, or due to the breach of the Agreement by the VENDOR, its agents or employees, or due to any act or occurrence of omission or commission of the VENDOR, its agents employees. It is specifically understood and agreed that this indemnification agreement does not cover or indemnify the CITY for its own negligence or breach of contract. 4. MODIFICATION: The CITY may by written Order, make changes in the specifications if such changes are within the general scope of the Contract. If such changes cause an increase or decrease in the VENDOR'S costs or in time required for performance of the Contract: (a) the VENDOR shall promptly notify the CITY and assert its claim for adjustment and an equitable adjustment shall be made by the CITY and the Contract modified accordingly. Nothing in this clause shall excuse the VENDOR from performing. 5. DEFAULT: Time is of the essence of this contract and if delivery of acceptable items or rendering of services is not completed by the time promised, the CITY reserves the right without liability, in addition to its other rights and remedies, to terminate this contract by notice effective when received by VENDOR; as to stated items not yet shipped or services not yet rendered, and to purchase substitute items or services elsewhere and charge the VENDOR with any and all losses incurred. 6. TRANSPORTATION CHARGES: Transportation expenses for all shipments shall be prepaid to destination. Shipments sent C.O.D. or freight collect without the CITY'S written consent will not be accepted and will, at VENDOR'S risk and expense be returned to VENDOR. No charges will be allowed by the CITY for transportation, packing, cartage or containers unless otherwise authorized in the Purchase Order. 7. UNAVOIDABLE DELAY: If the VENDOR is delayed in the delivery of goods purchased under the Purchase Order by a cause beyond its control, VENDOR must immediately upon receiving knowledge of such delay, give written notice to the CITY and request an extension of time. The CITY shall examine the request and determine if the VENDOR is entitled to an extension. 8. QUANTITY: Quantities furnished in excess of those specified in the Purchase Order will not be accepted and will be held at VENDOR'S risk and expense. 9. INSPECTION: Materials or equipment purchased are subject to inspection and approval at the CITY'S destination. The CITY reserves the right to reject and refuse acceptance of items which are not in accordance with the instructions, specifications, drawings, or data of VENDOR'S warranty (expressed or implied). Rejected materials or equipment shall be removed by, or at the expense of, the VENDOR promptly after rejection. 10. WARRANTY: The VENDOR warrants that all goods and services furnished hereunder will conform in all respects to the terms of this order, including any drawings, specifications, or standards incorporated herein, and that they will be free from latent and patent defects in materials, workmanship and title, and will be free from such defects in design. In addition, VENDOR warrants that said goods and services are suitable for, and will perform in accordance with, the purpose for which they are purchased, fabricated, manufactured and designed or for such other purposes as are expressly specified in this order. The CITY may return any nonconforming or defective items to the VENDOR or require correction or replacement of the item at the time the defect is discovered, all at the VENDOR'S risk and expense . Acceptance shall not relieve the VENDOR of its responsibility. 11, REGULATORY COMPLIANCE: VENDOR represents and warrants that the goods or services furnished hereunder (including all labels, packages, and containers for said goods) comply with all applicable standards, rules and regulations in effect under the requirements of Federal, State and local laws, including the Occupational Safety and Health Act as amended, with respect to design, construction, manufacture or use for their intended purpose of said goods or services. VENDOR shall furnish "Material Safety Data Sheets" in compliance with the Florida Right To Know Law, Florida Statutes, Chapter 442. 12. ROYALTIES AND PATENTS: VENDOR shall pay all royalties and license fees. VENDOR shall defend all suits or claims for infringement of any patent, copyright or trademark rights and shall save the CITY harmless from loss on account thereof. 13. PAYMENT: Payments will be made in accordance with the terms on the face of this order, or the VENDOR'S invoice, whichever are more favorable to the CITY and payment date therefor shall be calculated from the receipt of invoice or final acceptance of the goods, whichever is later. 14. IDENTIFICATION: Invoices in duplicate with prices set out and giving the correct Purchase Order Number must be sent to the address shown on the face of this order, otherwise payment of VENDOR'S account may be delayed. The Purchase Order Number shall appear on all invoices, boxes, packages, shipping documents and correspondence, and the list of contents shall be enclosed in each box or package. 15. TERMINATION: CITY may, at any time, terminate this order in whole or in part by written or telegraphic notice or verbal notice confirmed in writing. Upon termination for convenience of Buyer, the Buyer will assume responsibility for specific contractual or scheduled financial commitments made prior to notice of termination. Any and all services, property, publications, or materials provided during or resulting from the Contract shall become the property of the Buyer. If, however, termination is occasioned by the VENDOR'S breach of any condition hereof, including breach warranty, or by VENDOR'S delay, except due to circumstances beyond the VENDOR'S control and without VENDOR'S fault or negligence, VENDOR shall not be entitled to any claim or costs or to any profit referred to in said clause, and Buyer shall have against VENDOR all remedies provided by law and equity. 16. TAXES: CITY of Miami is exempt from State and local taxes. Exemption number is printed on the reverse side hereof. This Order shall serve as the exemption certificate. 17. LAW GOVERNING: This contract shall be governed by and construed according to the laws of the State of Florida. 18. ASSIGNMENT: Any assignment of this Purchase Order, including any performance of work hereunder, in whole or in part, or monies due hereunder, shall be void unless consented to by CITY in writing and CITY shall have no obligations to any assignee of VENDOR under any assignment not consented to in writing by THE CITY. 19. TERMS: The order total shall be paid by the CITY upon receipt of invoice from VENDOR which shall be subject to verification as to quantities and quality of goods delivered or services performed, 20. TAX: VENDOR doing business with the CITY shall not be exempt from paying sales tax to their suppliers for materials to fulfill contractual obligations with the CITY, nor shall any VENDOR be authorized to use the CITY Tax Exemption Number in acquiring such materials. 21. LOCAL RESOURCES: VENDOR shall give first priority to utilizing resources in the disaster area, including but not limited to procuring supplies and equipment, awarding sub -contracts, and employing workmen. 22. PAYMENT CHANGES: Payments wit only be made to the company and address as set forth on Purchase Order unless the VENDOR has requested a change thereto on official company letterhead, signed by an authorized officer of the company. 23. UNIFORM COMMERCIAL CODE: The Uniform Commercial Code (Chapter 672, Florida Statutes) shall prevail as the basis for contractual obligations between the VENDOR and CITY for any terms and conditions not specifically stated in this Purchase Order. 24. INSURANCE: In the event that insurance is required by the CITY in connection with this Purchase Order, VENDOR shall provide an Insurance Certificate, in a form acceptable to the CITY, naming the CITY as an additional insured, as proof of compliance therewith which said certificate shall constitute part of this Purchase Order. 25. BONDING: The CITY reserves the right to require the VENDOR to post a performance and payment bond in the amount of One Hundred percent (100%) of the Purchase Order total, upon award or at such time deemed necessary by CITY. 26. NON -APPROPRIATION OF FUNDS: In the event no funds or insufficient funds are appropriated, allocated, and budgeted or are otherwise unavailable for any reason in any fiscal period or at any time for payments due under this contract/purchase order, then the City Manager or Procurement Director, upon written notice to the VENDOR of such occurrence, shall have the unqualified right to terminate the contract without any penalty or expense to the City. The Vendor shall have no recourse from such termination except to receive undisputed payments due prior to the effective date of the termination. City of 4liattti REVISED RE()IiEST FOR APPRAISAI, OliOTl? Vint are invited to :'ulituit a quote to prepare an .appraisal report based on tlic Appraisal Assignment [attached herewith a' 1'sxhil�it "A". Pk'isc complete the intormatuin requested at the bottom of this page. The quote and below ialorination must lie r ct. k-c l lay th t)glartment or Real I:,tatc and Asset Management by 2:OOL.an.. Wednesday, N1. rcb 21. 21118. Yon may submit your proposal via entail to: Jacqueline Lorenzo Project \f:aii ,.ni'ut Specialist D.:p ariment of Real [:State and Asset 'Management Cat'`' of NIialni 444 S\444 SW 2 Ascntts:a. 3.' Floor �13:inli, I'l. 33130 (305i 41(,-1•126 ADDRESS F01.10 140O N tt" 37 AVE 1550 Nit' 37 AVE` O 1- 3132-000-00S0 01-3132-000 -0090 JOIl No. *sec survey attache[ he ctn Comprehensive total fee to perform appraisal/s: Hourly fee in the event expert testimony is required: Appraisal Company: TelephnneiI i s tens ion: 13y: Ted Allen f Slott: A-03-18-007 $ 7,400 $ 275 Joseph J Blake & Assoc Inc. 305 448.1663/'110 Date: 3119/2018 NOTE: When sending a quote, your company must comply with the completion flue dale. If selected, our company must provide a Certificate of insurance in the manner prescribed in Exhibit "B" below. Pnt:c 1 of :1t..201 (. tfV of Miami I xIlI IT "A" .!1'PRAISAL ASSI ;N1ILNI ,soh Number: A 113-114-f107 1-ise:tI Year: 2017-201 Location: 1400 NW 37 AVE. k portion of 1550 NW' 37 AVE tsce surt cy} folio to.: 01-31 ?2-0tifl-Ofi40 (4, 01- + 1.:2-{IUN0-0f11/0 Laci Size; AnpreiziIweIy fevl Ilnprotmews: \ A t-,:e purpose below I'llrpuse of .11ir:6,411 1'ti determine Maur:xhir.et Va]ue and 1tcitt:Y1 Value al highest ;mil hest tNe, Please note the City's purpose is to determine the value to lease: a vacant portion of the property to a third party. As such. we are requesting the value he pros iJ 1 etn a per square foot basis. Property Rights :Appraised- Fee Simple. subject to existing restrictions Curren! Zoning: (.'S Civic Space Zone (under 21 Zoning Code). "fvpc of Appraisal: Nan-aiivc Sclit'oittained Report Time to Complete: hmr (4) weeks from authorization. Number or bound copies: Mawr. (signed and certified). City Contact Person: Jacqueline Lorenzo. Property Managcntcnt Specialist T: (05) 416-1426 le rn:ill: jlurenr&Y.`at mal:ilingo%.eoiI) Resolution Reference: Nome. Date of the Valnat iom Date of the appraisal report. Fee: Full payment upon completion of the :tssienment. subject to revisions by the City of xliamti and any- other review appraiser should there be any discrepancies in the appraisal reports. THE APPRAISAL R1PO1t'I IOULD INCLUDE THE I-OLL()W1N(i: 1. The appraisal report shall be performed in compliance with the professional services agreement with the City for appraisal soviets as applicable. The appraisal report must consider ail three approaches to value and provide ait cxplau:ltion to the weight given to each approach in arriving at the final reconciliation of value. In the event an Pap: 2 of 5 In?UIN C ilk oIMiattti approach is not iced. pleas i pro\ idc tustilicaitun Please pro\ ide c\ idencc tin' not using the ('o,t 1pproach. III calculating the Market 1)ata. the appraiser should ;malvii and pri idc current local maiket data and %nhnnt Ail{IIi .CMint t ibLCs of comparable.. •l. II' tnilliinc a rand ales Comparable fable to calculate Sales Price per Square loot. please pro\ idc Into itch adjustments in a matrix Iormat tier a bitter understanding of the Summary' and !sand Value C'<irrehition conclusion. 5. Pro idc source and proof lir eapitalciaunni rate rot the income approach to \aluc in local 'nuke! �er.tth other market t\lten applicable. 14. I'ro\ idc Market I tata :1•4 if taxable propert, ate appi;usaI report .houlcl be in compliance \ti all the current l'ittti,riit Siaudatrd of Professional Appraisal Praetic f l:SP; P) aecortiiug to Section d`', lint lI. of the Florida Slattitcs. The Cite of Miami resci \c the right to re\ le \ the appraisal report auul submit its comments. the final report will be due live days after the appraisal is reviewed by ('itv's staff. \ote' :11t caiculalioii Hoist he explicit. Show all steps used to arm c at any conclusions pro\idcd. .111 data in this ,heel must he \crilied b4 the appraiser. If an\ discrepancy. please call this office at m5-41 f i-142fi Page 3 on EXHiBIT "B" INSURANCE It1•:ot;IItI•:NII•:\I-s (1) ( citnmerrial 1;rncral Liability (Primal'` & Non Contributory ) .1. I.itni!, of I.iaallility Bodily injury and I'rnperty I)ant.tgc Liability I rlcln f lccurrcnce S 1.00It,ft01) General .\,iq - 'ate I.frnit 's2 000,000 !'r+$duCtS,(.01npIc;1ed (l1let:t[itttts S I.(I00.fll10 f'L:r.ura,al .and _Id%ertising Injury` 1.(1(t(}.00O ii. 1'nalt:rcemenis Retiuirccd ('Inc- art ,iliaint included as an additional insured ( anlingertt Lulu lit y (Independent ( ( 'at .';aty.ea ( ont;:u_tu:at i. ak}itiit Preii.ises & Operations i_i;rlailil. Presal:iry Int.u:luec ("lapse (11I 13aa,iraess Automobile I.iability A. moils of Liability I3crtlity Injury and Property I)aan:ag.Liability Combined Single Limit Any ,Iuto-( h ncd Amos Scheduled Including I fired. 13orrowed or Non -Owned Autos An. One Accident S I,(1(!(t,0()O 13, Endorsementsequired (.'ity of Miami included as an Additional Insured (III) Worker's Compensation A. Limits of Liability Statutory -State of Florida Waiver of subrogation (IV) Empioyer's Liability A. Limits of Liability `I00.4.100 for bodily injury caused by an accident. each accident. SIO0,000 for bodily iniury caused by disease. each employee S50o,000 fir bodily injury caused by disease, policy limit (17) Professional Liability/Error's & Omissions A Limits of 1.i.lbility ('ombirtcd Single I.ii13-I 1::1 i1(-l:aicnn SI,000,00f) General Augregatc I.iinit S 1.00(!.D(!(I Retro [hate included P.agraof5 ('itt. or 3 ]n 'ul,v City of Miami BENDERS ARE UN. \ CC'El) i .\BI.E•:. 'I he aht,\ c policies shall prn4:de t he City of Miami m illi tvritten notice' of cancellatictri or Ill;lterizi l ct':u1Le h'tonl the insurer in accordance to polio- prt)\ b ions. C't1nip;1nics authorized to do business i11 the State of Florida. 44itlt the following lltialiticn.titlllr. shall issue• all insurance ludic ics required ;ibo4e. and nitist lttcct the following requirement`: The conlpam must he rated no less than —A-- as to management. and no less than "Class V" as to Financial Strength. by the latest edition of 13Lst's Insurance Guide. published hv" .\..M. Best Company. (lld.v°ick. Nev4 Jersey. or its equivalent. All policies and or certificates of itltiln":ItliLsirs'sttbicc1tit rev lt'44:Masivcriliration bykick 11an;11_t mentpritor to insurance approval. ( ertrlicaics will indicate no in. ttltfieation or change in insurance 4aall he made without llln'ly (.(11 days written ally;dice uc)lie•L it, il1L l crlille:0e 'whiff.. i-he Bidder shall be responsible fi)r;issitilin2 that the insurance certificates 1- y tireLl in conjunction 4v ith this Section remain in force tier file duration oldie co1m,l '1nal pest includinpg. any mid all option lei ins that may he granted to the I tidt1er. In the 0'011 dolt expired certificates arc not replaced 1.4'411 Ife44 or renewed ccrtilte: res which cover the contractual period, the CM shall have the option to: I I i StisNiul the contract until such tulle :11 the new. or renewed certificate, are received by the City- in the manner prescribed in the EZLLILIC i1 tt)r t\ppraixlls (nntl: tlr (2} 1 lie City may. at its ::ale discretion. terminate this contract for cause and reel; re -procurement damages from the Bidder in contlulclion with the General and Special Terms and Conditions ;If the i3id. The insurance coverage required shall include those classifications .is listed in standard liability insurance manuals. 44hich most nearly reflect the operations of the bidder. Compliance with the foregoing requirements shall not relieve the bidder of his liability" and obligation under thus. section or under any other s¢citon of this Agreement. Ngc 5 c)f5 AC-C-)RL) JOSEJBL-01 CERTIFICATE OF LIABILITY INSURANCE CAROLMELLET DATE IIAM-nn,`ri'vY1 1/23/2018 THIS CERTIFICATE 15 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT; If the certificate holder is an ADDITIONAL INSURED. the pDlicy(iesj must Nava ADDITIONAL INSURED provisions or he endorsed. if SUBROGATION IS WAIVED, subject to the terms and conditions of the policy. certain policies may require an endorsement. A statement on • this certificate does not confer rights to the certificate holder in lieu of suchendorsement(s). ( PRODUCER j COgN rAC" — _-- _ I NFP Properly & Casualty Services. Inc. ( PHON FAX 45 Excculivo Drive �tA c Na r =rI (516) 327-2700 1 IA•C, Nn]- Plainview" NY 11803 • I.MArL — 1 AoneEss I':4Vur-r• Joseph J. Blake & Associates. Inc 425 Broad Hollow Rd,Ste 429 Melville, NY 11747 COVERAGES CERTIFICATE NUMBER I I.F H1h-V THAT 1HE POLICIES or INS I".rll.µ':[ ,T7TPAITIISTANDINC ANY HI-`)tJIRI-t.11 1-1':,a IL '.1AY BE ISSUED UR MA',' PERTAIN t xt.i I t•Fth tkr: AN) LONDITIONS QF SUCH I',JLICIES , qu I. Fk L,,PE OF INSURANCEA AI)DL$taUR X LflMA'kCIAI GFNFRAI IIABIIITY x1 A A intr r_, - AUTOMOFIILE LIABII. ITY IL' I c I I i i x 1 �ifi ,`rIt- i I i x 1 MORELLAIIAU i rt f,: LA 1 EXCESS LIAR (`; ,I;tr,.ylArr _ I • I X n: �t: I.;IJ 3 10,000 A LVORXERa COMPENSATION AND EMPLOYERS' LIABILITY d I LP `.rl-1J- ER %rr_:LIDED" I N NIA Ifdandaiary InHl _ _.. L'Phu,.;I:;;r,s CeJxv INSURENSIATFOROING COVERAGE NAM'a_ 1 IN susrTA - Mitsui Sumitolno Ins Co of Amer reisuRE+T n INSURER C : INSURER[: INSURER E insu rn - — REVISION NUMBER: U-'ANCF I tS`Ff) liF€ OW HAVI- IiF �N I'z4 I«-t: 1;,T T F4i, INctrR%F) NAAFI) ABOVi= FOR TN' POLICY PERIOD h: IERNA OR CONDETICiN CIF ANY CONiRACTOROrIuRDorrJr'.f_NTWITH RE.SFE:C.I Tr) 4^,fIICHTRY; -11 INSURANCE m-r:oNt,EEi BY :HE: POLIcies O'ESCRIBFtt r-wszialmrsSUHJECTTOALI TI,W IER'.IF :l',11TS SHOWN MAY €tZVF BEEN HFi;I+`CW BY PAID CtAIMS POLICY NUMBER 'Of ICY FEE POLICY EXP oLLIOEFYYYY IMNIZONYYYL IlMrt9tl '20362 ( PKG3126559 0211012018 02/10/2019 BVR8406231 ;UMB5700103 I1NI�_ CP9112775 PF. SCRIPTION Or oPERAn0Ns + LOCATIONS I VEHICLES IACORD TAT Adddinnal Remarks Schedule. may be attached I1 more spaee Is reetdredl City of Miami is Included as additional insured as respects to General Liability and Auto Liability Policies arising out of operations of the Named Insured DII primary and rron-contributory basis. • 02/1012018 I ES 1.004.000' 1,000.000 10,oa0 1,00fi;ol o' 2,000,000 2,000,000 02110/2019 ' L`,.0,14.,17 . • 02/1012018 02/1012019 EACI c, I. ,eRR_."i.•E 12/1012017 ' 12110/2018 r _L 1.00U.00ol 4 5,000,000 L. SE E.d C'SE:sL-''aLliitt 5,000,000 1,000,000 1,000,000f s 1,000,000 CERTIFICATE HOLDER City of Miami, Public Facilities Dept. Asset Managomont 444 SW 2nd Avenue, 3rd Floor Miami, FL 33130 ACORD 25 (2016/03I CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTIIORf7FD REPRESENTATIVE t✓,a..i .mow .cs !) 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD JOSEJBL-01 JOANNAMUELLER ,a` oRL) CERTIFICATE OF LIABILITY INSURANCE DATEIM"`°°`"Y�'' 11/2J2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER_ THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT. If the certificate holder is an ADDITIONAL INSURED. the poiicyties) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement_ A statement on _ this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER -'— --_. _CONTACT INFP Property & Casualty Services, Inc. PANE 45 Executive Drive PHONE FA'rG. No r,<r {516}327-2700 Plainview, NY 11803 0I5LIREn Joseph J, Blake & Associates. Inc 425 Broad Hollow Rd.$Ie 429 fllelviFle. NY 11747 COVERAGES CERTIFICATE NUMBER: Nib It —1 r Ii Y REVISION NUMBER; F IF THAT THr PO! tCit-S 0I INSUPAr cr E :SIFD BELOW HAW f F r tr :SS EEi' TO THE ItiTtJR TF N+ F,"=1) ALCOVE }OR FFIE- Pot ICY l rt ll • NITiCAI I N 3T%.9.9 HSrAllll)INo ANY RIJTJ.REMEN€, 'LRM OR CONIXrI .N uE ANY T't)NTQ:.t:fOR(911fFHDOCUMENT t1TFiM SPFCA TO4"JI-1rCHTE-!T: FRTf CAI MAY BE ISSUED OR MAY f NTAIN T•ii- INSUNANCE= A.FF{TRZTFLI iW T!rI- Pi_ILRAES OESCBfRFr HF.i2FINF' StE13JEC.TTOAII THE IE-Ft.t,'_• M'. 1 I`,,p11NSANL'C(}NI)1EIONS EV SUCH 1CILS L TS SF 10V4.1 MAY HAVE. BEEN TH-D€le..FDHYI'AfDCLAlkis 1'ifre SR ARIA MIRK I e TYPE OF INSURANCE I+,s YrVTI POLICY fU FAHER 1POLiCY SCE POLICY EX. COMMERCIAI GENERAL LIABILITY IMM'DWYYYY� IUAr.'OD'YYY Y). ADDR ADORES: FAX talc Nal INSUriERIS1 AFrORD1NG COVERAGE run p INSURER Indfan Harbor Insurance Co 36940 INSURER a • AU TOMOBlLL l SARILIry "...PA .L'Ot:IN. N UMBRELLA LIAR EXCESS trAa •1 _..._ r In' :TIITTIS r"3 d9{I'S r1 A!..°t WORKERS COMPENSA TIOON AND E :1PI FIVERS' LIABILITY -.- r I;lk,r ARTIER D'FrIr vF r :•zlydu!r- {19 NHj I A E8o?Professiona[ Lia YIN N+A MPP002947508 ix/SURER C • INSURER O INsuRrR F . INSURER r _.._ LIMITS 1; • rr:'a;J.': 'Fv '.i- a n n1 •>,.,JI •�. .rms," 5 '.fa M,r.l'I.; L:A.0-Cl"^ IRAr-Hc,,E 1.111, StarJlt. r` 1 FA:lt ACCIETENT 5 EL trsrAss .r, FR.!C°Yrr S 11l02/2017 11l42121318 Limta A L1;yt'thtr g DESCRIPTION OF OPERATIONS /LOCATIONS 1 PERICLES (AcORee tot_ Adddk/nl Re.na.t Scar -Milo, may he atta€bed el -more spare 15 required} Evidence et lnsuranto CERTIFICATE MOLDER City of Miami Public Facilities Dept. Asset Management 444 SW 2nd Avenue 3rd Floor Miami, FL ACORD 25 (2015103} CANCELLATION I] AUTHORIZER REPR.SINFATIUE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED EIEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVFS1ONS, el 1988-2015 ACORD CORPORATION. AN rights reserved. The ACORD name and facto arc registered marks of ACORD Ana Moya-Diaz From: Ted Allen Sent: Thursday, March 22, 2018 10:47 AM To: Lorenzo, Jacqueline Cc: Ana Moya-Diaz Subject: RE: Request for Quotes - Melreese Appraisal Acknowledged. We will get started immediately. Ted Alien, MAI, MRICS State -Certified General Roil Estate Appraiser N,. Managing Port npr SLAKE Joseph J. Blake anti A!,sociate , liic. 4000 Ponce de Leon Mil., Suite 410 Miami, FL 33146 Office: (305) 448 1663 Direct: (305) 448-1065 Fax: (305) 448-7077 tallen@JosephJBlake.com www.JosephiBlake.com National Valuation and Consulting Services for over TO years From: Lorenzo, Jacqueline <jlorenzo@miamigov.con1> Sent: Thursday, March 22, 2018 7:54 AM To: Ted Allen <tallen(a iosephiblake.com> Subject: RE: Request for Quotes - Melreese Appraisal Good morning Ted, Please allow this to serve as Notice to Proceed with the appraisal of the Melreese Golf Course. The appraisal shall be due on or before Thursday, April 19, 2018. Please advise if you have any questions or concerns. Thank you! Regards, %a:pe&ire Zotteoga Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2"'l Avenue, 3"' Floor Miami, Florida 33130 P: (305) 416-1426 F: (305) 400-5197 E: jlorenzo@miamigov.com i From: Ted Allen (, . r>}all)I tkE t,rr;] Sent: Monday, March 19, 2018 6:36 PM To: Lorenzo, Jacqueline Cc: Rotenberg, Daniel; Maichel, Hans Subject: RE: Request for Quotes - Melreese Appraisal Jacqueline Attached is the completed bid request. Please contact me should you have any questions. Regards Ted Allen, MAI, MRICS prtifiecl General Real Estate Appraiser No 4'�7Y7{dl1d1)q l'rirmer BL 4,' iCE Joseph J. Blake and Associates, Inc. 4000 Ponce de Leon Blvd., Suite 410 Miami, FL 33146 Mu:- (305) 448-1663 Direct: (305) 448-1065 Fax: (305) 448-7077 tallen@JosephJBlake.com www.JosephJBlake.com National Valuation and Consulting Services for over 70 years From: Lorenzo, Jacqueline <l orenzo@miamigov.com> Sent: Friday, March 16, 2018 1:20 PM To: albert@armadaappraisal.com; ira5730@aol.com; SJMIAMI@aol.com; talien@JosephJBlake.com Cc: Rotenberg, Daniel <DRotenbejg miamigov.com>; Maichel, Hans <HMaichel@miamigov.corn> Subject; RE: Request for Quotes - Melreese Appraisal Good afternoon Appraisers, As a follow up, please note the Melreese Appraisal time to complete has been revised to 4 weeks from Notice to Proceed. Please see attached. Thank you. Regards, 94C1rcLe 4clwery4 Property Management Specialist 2 fetal trnc nr „+ [teal Estate & Asset Martai_',ernen1 Cit -lour L ilorenzo__rniamigov.com From; Lorenzo, Jacqueline Sent: Friday, March 16, 2018 11:16 AM To: ' ; i,, 3 ; ! . . Cc: Rotenberg, Daniel; Maichel, Hans Subject: Request for Quotes - Melreese Appraisal Good morning Appraisers, 'tallen@JosephjBlake-com' Attached please find a Request for Quotes for the appraisal of Melreese Golf Course. Please note that the deadline to submit your quote is Wednesday, March 21, 2018 at 2:00PM, and that the deadline for the appraisal itself will be three (3) weeks from authorization. Please carefully read the requirements of the attached Request for Quotes. Should you have any questions or concerns, please do not hesitate to contact me. Thank you. Regards, Zoireoga Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2nd Avenue, 3`d Floor Miami, Florida 33130 P: (305) 416-1426 F: (305) 400-5197 E: ilorenzo@miamieov.com 3 Miami international Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source 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. Air rights may be acquired to construct a Estate Appraisal, 6th building above the land or building of another or to Ed. (Chicago: Appraisal protect the light and air of an existing or proposed Institute, 2015) structure on an adjoining lot. Air rights do not always include development rights. See also transferable development right (TDR). As Is Market Value The estimate of the market value of real property in its Appraisal Institute, The current physical condition, use, and zoning as of the Dictionary of Real appraisal date. (Interagency Appraisal and Evaluation Estate Appraisal, 6th Guidelines) Note that the use of the "as is" phrase is Ed. (Chicago: Appraisal specific to appraisal regulations pursuant to FIRREA Institute, 2015) applying to appraisals prepared for regulated lenders in the United States. The concept of an "as is" value is not included in the Standards of Valuation Practice of the Appraisal Institute, Uniform Standards of Professional Appraisal Practice, or International Valuation Standards. Band of Investment A technique in which the capitalization rates attributable Appraisal Institute, The to components of an investment are weighted and Dictionary of Real combined to derive a weighted -average rate attributable Estate Appraisal, 6th to the total investment (i.e., debt and equity, land and Ed. (Chicago: Appraisal improvements). Institute, 2015) Condominium A multiunit structure, or a unit within such a structure, Appraisal Institute, The with a condominium form of ownership. Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service Appraisal Institute, The (DCR = NO1/IM), which measures the relative ability of a Dictionary of Real property to meet its debt service out of net operating Estate Appraisal, bth income; also called debt service coverage ratio (DSCR). A Ed. (Chicago: Appraisal larger DCR typically indicates a greater ability for a Institute, 2015) property to withstand a reduction of income, 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. 2013) JOSEPH J. BLAKE AND ASSOCIATES, INC. PEAL ESTATE VALUATION AND CONSULTING Miami International Links - TVlelreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy , and collection losses and an addition is made for any other income. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Effective Gross The ratio between the sale price (or value) of a property Appraisal Institute, The Income Multiplier and its effective gross income. Dictionary of Real (EGIM) Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Entrepreneurial Profit 1. A market -derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. 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. See also entrepreneurial incentive. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Equity Capitalization Rate (RE) An income rate that reflects the relationship between one year's equity cash flow and the equity investment; also called the cash -on -cash rate, cash flow rate, cash throw -off rate, or equity dividend rate. (RE = IE/VE, or Pre - Tax Cash Flow/Equity Invested) Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Equity Ratio The ratio between the down payment paid on a property and its total price; the fraction of the investment that is unencumbered by debt. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION ANO CONSULTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Excess Land Land that is not needed to serve or support the existing Appraisal Institute, The use. The highest and best use of the excess land may or Dictionary of Real may not be the same as the highest and best use of the Estate Appraisal, 6th improved parcel. Excess land has the potential to be sold Ed. (Chicago: Appraisal separately and is valued separately. Institute, 2015) Exposure Time Estimated length of time that the property interest being Uniform Standards of appraised would have been offered on the market prior Professional Appraisal to the hypothetical consummation of a sale at market Practice, 2016-2017 Ed. value on the effective date of the appraisal. External Obsolescence A type of depreciation; a diminution in value caused by Appraisal Institute, The negative external influences and generally incurable on Dictionary of Real the part of the owner, landlord, or tenant. The external Estate Appraisal, 6th influence may be either temporary or permanent. Ed. (Chicago: Appraisal Institute, 2015) Extraordinary Assumption An assumption, directly related to a specific assignment, Uniform Standards of as of the effective date of the assignment results, which, Professional Appraisal if found to be false, could alter the appraiser's opinions Practice, 2016-2017 Ed. or conclusions. Comment: 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, 6th police power, and escheat. Ed. (Chicago: Appraisal Institute, 2015) Gross Building Area (GBA) 1. Total floor area of a building, excluding Appraisal institute, The unenclosed areas, measured from the exterior of Dictionary of Real the walls of the above -grade area. This includes Estate Appraisal, 6th mezzanines and basements if and when typically Ed. (Chicago: Appraisal included in the market area of the type of Institute, 2015) property involved. 2. Gross leasable area plus all common areas. 3. For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically, does not include garage space. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country dub Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source 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, 6th partitioning to the outside wall surfaces. Ed. (Chicago: Appraisal Institute, 2015) Highest and Best Use 1. The reasonably probable use of property that Appraisal Institute, The results in the highest value. The four criteria that Dictionary of Real the highest and best use must meet are legal Estate Appraisal, 6th permissibility, physical possibility, financial Ed. (Chicago: Appraisal feasibility, and maximum productivity. Institute, 2015) 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) Hypothetical Condition 1. A condition that is presumed to be true when it Appraisal Institute, The is known to be false. (SVP) Dictionary of Real 2. A condition, directly related to a specific Estate Appraisal, 6th assignment, which is contrary to what is known Ed. (Chicago: Appraisal by the appraiser to exist on the effective date of Institute, 2015) the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts 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. (USPAP, 2016-2017 ed.) Insurable Value A type of value for insurance purposes. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLARE AND ASSOCIATES, INC. REAL ESTATE VALUATION AN1 CUNSi1LTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Internal Rate of Return (IRR) The annualized yield rate or rate of return on capital that Appraisal Institute, The is generated within an investment or portfolio over a Dictionary of Real period of ownership. Alternatively, the indicated return Estate Appraisal, 6th on capital associated with a projected or pro forma Ed. (Chicago: Appraisal income stream. Institute, 2015) Leased Fee Interest The ownership interest held by the lessor, which includes Appraisal Institute, The the right to receive the contract rent specified in the Dictionary of Real lease plus the reversionary right when the lease expires. Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Leasehold Interest The right held by the lessee to use and occupy real estate Appraisal Institute, The for a stated term and under the conditions specified in Dictionary of Real the lease. Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Loan -to -Value Ratio (M) The ratio between a mortgage loan and the value of the Appraisal Institute, The property pledged as security, usually expressed as a Dictionary of Real percentage; also called loan ratio or LTV. Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Marketing Time An opinion of the amount of time it might take to sell a Appraisal Institute, The real or personal property interest at the concluded Dictionary of Real market value level during the period immediately after Estate Appraisal, 6th the effective date of an appraisal. Ed. (Chicago: Appraisal Institute, 2015) Market Rent The most probable rent that a property should bring in a Appraisal Institute, The competitive and open market reflecting the conditions Dictionary of Real and restrictions of a specified lease agreement, including Estate Appraisal, 6th the rental adjustment and revaluation, permitted uses, Ed. (Chicago: Appraisal use restrictions, expense obligations, term, concessions, Institute, 2015) renewal and purchase options, and tenant improvements (Tls). JOSEPH J. BLAKE AND ASSOCIATES. INC, REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Market Value "A type of value that is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined, such as the following. 1. The most widely accepted components of market value are incorporated in the following definition: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under duress. 2. Market value is described, not defined, in the Uniform Standards of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. Comment: Forming an opinion of market value is the purpose of many real property appraisal assignments, particularly when the client's intended use includes more than one intended user. The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories: 1. the relationship, knowledge, and motivation of the parties (i.e., seller and buyer); 2. the terms of sale (e.g., cash, cash equivalent, or other terms); and 3. the conditions of sale (e.g., exposure in a competitive market fora reasonable time prior to sale). Appraisers are cautioned to identify the exact definition of market value, and its authority, applicable in each appraisal completed for the purpose of market value. (USPAP, 2016-2017 ed.) USPAP also requires that certain items be included in every appraisal report. Among these items, the following are directly related to the definition of market value: • Identification of the specific property rights to be appraised. • Statement of the effective date of the value opinion. • Specification as to whether cash, terms equivalent to cash, or other precisely described financing terms are assumed as the basis of the appraisal. • If the appraisal is conditioned upon financing or other terms, specification as to whether the financing or terms are at, below, or above market interest rates and/or contain unusual conditions or incentives. The terms of above- or below -market interest rates Appraisa! Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source and/or other special incentives must be clearly set forth; their contribution to, or negative influence on, value must be described and estimated; and the market data supporting the opinion of value must be described and explained. 3. The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (12 C.F.R, Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994) 4. The International Valuation Standards Council defines market value for the purpose of international standards as follows: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. (IVS) 5. The Uniform Standards for Federal Land Acquisitions defines market value as follows: Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal. (Uniform Appraisal Standards for Federal Land Acquisitions)" JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Mortgage Capitalization Rate (RM) The capitalization rate for debt; the ratio of the annual Appraisal Institute, The debt service to the principal amount of the mortgage Dictionary of Real loan. The mortgage capitalization rate (RM) is equivalent Estate Appraisal, 6th to the periodic (monthly, quarterly, annual) mortgage Ed. (Chicago: Appraisal constant times the number of payments per year on a Institute, 2015) given loan on the day the loan is initiated. RM = Annual Debt Service/Mortgage Principal Mortgage Debt Service (IM) The periodic payment for interest on and retirement of Appraisal Institute, The the principal of a mortgage loan; also called total Dictionary of Real mortgage debt service. Generally, the abbreviation IM Estate Appraisal, 6th refers to the total debt service, whereas mortgage debt Ed. (Chicago: Appraisal service can be used to refer to either the periodic Institute, 2015) payment or the total of the payments made in a year. Net Income Multiplier (NIM) The relationship between price or value and net Appraisal Institute, The operating income expressed as a factor; the reciprocal of Dictionary of Real the overall capitalization rate. Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Net Operating Income (NOI or lo) 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, 6th depreciation are deducted. Note: This definition mirrors Ed. (Chicago: Appraisal the convention used in corporate finance and business Institute, 2015) valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization), Net Rentable Area (NRA, Rentable Area) For office or retail buildings, the tenant's pro rata portion Appraisal Institute, The of the entire office floor, excluding elements of the Dictionary of Real building that penetrate through the floor to the areas Estate Appraisal, 6th below. The rentable area of a floor is computed by Ed. (Chicago: Appraisal measuring to the inside finished surface of the dominant Institute, 2015) portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice. Overall Capitalization Rate (Ro) The relationship between a single year's net operating Appraisal Institute, The income expectancy and the total property price or value Dictionary of Real (Ro = lo /V0). Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Prospective Market Value "As Completed" and "As Stabilized" A prospective market value may be appropriate for the valuation of a property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value —as completed —reflects the property's market value as of the time that development is expected to be completed. The prospective market value —as stabilized —reflects the property's market value as of the time the property is projected to achieve stabilized occupancy. For an income -producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. (See USPAP Statement 4* and Advisory Opinion 17.) (Interagency Appraisal and Evaluation Guidelines) Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with 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. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Replacement Cost The estimated cost to construct, at current prices as of a Appraisal Institute, The specific date, a substitute for a building or other Dictionary of Real improvements, using modern materials and current Estate Appraisal, 6th standards, design, and layout. Ed. (Chicago: Appraisal Institute, 2015) Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design, and layout for insurance coverage purposes guaranteeing that damaged property is replaced with new property (i.e., depreciation is not deducted). Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING Miami International Links - Melreese Country Club Land 18-114-02 GLOSSARY OF VALUATION TERMS Term Definition Source Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax 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." Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Sandwich Lease A lease in which an intermediate, or sandwich, leaseholder is the lessee of one party and the lessor of another. The ❑wner of the sandwich lease is neither the fee owner nor the user of the property; he or she may be a leaseholder in a chain of leases, excluding the ultimate sublessee. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Sum of the Retail Values The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. Also called the aggregate of the retail values or aggregate retail selling price. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) Terminal Capitalization Rate (RN) The capitalization rate applied to the expected net income for the year immediately following the end of the projection period to derive the resale price or value of a property. Also called a going -out, exit, residual, or reversionary capitalization rate. Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th Ed. (Chicago: Appraisal Institute, 2015) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Miami international Links - Melreese Country Club Land 18-114-02 QUALIFICATIONS OF THE APPRAISER QUALIFICATIONS OF THE APPRAISER J. MICHAEL PHILLIPS Mr. Phillips holds the position of Assistant 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 State University -Tallahassee, Florida Bachelor of Science in Real Estate Miami Dade College - Miami, FL Associate in Arts in Business Administration REAL ESTATE AND APPRAISAL EDUCATION Course Name Real Estate Principles and Practices Real Estate Law Real Estate Feasibility Real Estate Finance Real Estate Appraisal Real Estate Market Analysis Real Estate Appraisal Principles Business Practices and Ethics Highest & Best Use and Market Analysis Report Writing and Valuation Analysis Standards of Professional Practice, Part A, B & C Appraisal Procedure Advanced Income Capitalization Advanced Sales Comparison and Cost Approaches Advanced Applications General Comprehensive Examination Provider Florida State University Florida State University Florida State University Florida State University Florida State University Florida State University Appraisal Institute Appraisal Institute 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 2281 APPRAISAL EXPERIENCE Clients served by Mr. Phillips include banks, savings and loans, institutional investors, development companies, real estate syndicators and various other entities. 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, traditional and low-income multi -family projects and vacant land. CERTIFICATION QUALIFICATIONS OF THE APPRAISER KLN L-HYVbUN. StLKt I P KY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD LiC!NS! NUMBER The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS Expiration date NOV 30. 2018 PHILLIPS. J MICHAEL 4000 PONCE DE LEON BLVD STE 410 CORAL GABLES FL 33146 ISSUED SO/3112016 DISPLAY AS REQUIRED BY LAW SEG01 LIE103IOC 4JCi+ 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). University of Texas - Austin, Texas Bachelor of Business Administration FORMAL EDUCATION PROFESSIONAL: AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser No. RZ 426 Georgia State -Certified General Real Property Appraiser No. CG 1855 Appraisal Institute, Designated Member No. 6949 Royal Institution of Chartered Surveyors No. 6329062 CURRENT RESPONSIBILITIES 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 mails, 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. CERTIFICATION RICK SCOTT. GOVERNOR QUALIFICATIONS OF THE APPRAISER KEN LAWSON. SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD pk1T4ITT T Ong '1 T.Al rtZa2�, The CERTIFIED GENERALAPPRAISER Named below IS CERTIFIED Under the prowsions of Chapter 475 FS. Exprration date NOV 30. 2018 ALLEN TED EUGENE 4000 PONCE DE LEON BLVD STE 410 CORAL GABLES FL33148 ISSUED 40/12/2016 DISPLAY AS REQUIRED BY LAW SEC li 1.1610120002579