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Address Owner Name Subdivision Name Folio
111NW1St
Property Information
Folio: 01-3135-087-0010
Sub -Division:
WAGNER SQUARE
Property Address
1455 NW 17 ST
Miami, FL 33125-0000
1463 NW 17 ST
1475 NW 17 ST
1485 NW 17 ST
1495 NW 17 ST
V
Owner
CITY OF MIAMI
C10 DEFT OF PUBLIC FACILITIES
Mailing Address
444 SW 2 AVE
MIAMI, FL 33130
Primary Zone
6100 COMMERCIAL - NEIGHBORHOOD
Primary Land Use
8080 VACANT GOVERN MENTAL : VACANT LAND -
GOVERNMENTAL
Beds l Baths 1 Half 01010
Floors 0
Living Units 0
Actual Area 0
Living Area
Adjusted Area
Lot Size
0
28,963 Sq.Ft
Year Built 0
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Miami -Dade Official Records - Print Document Page 1 of 4
This Instrument was Prepared By and
Record and Return To:
David A. Messinger, Esq.
Stearns Weaver Miller Weissler
Alhadeff & Sitterson, P.A.
150 West Flagler Street
Suite 2200
Miami, Florida 33130
Property Appraiser Identification No: 01-3135-087-0010
1111111111111111111111111111111111111111111
CFN 2012R0684017
DR BR 28287 F'ss 4161 - 4164; (4a
RECORDED 09/26/2012 15:31:56
DEED DOC TAX 0.60
SURTAX 0.45
HARVEY RUVIN, CLERK, OF COURT
MIAlil-DADE COUNTYr FLORIDA
SPECIAL WARRANTY DEED
THiS SPECIAL WARRANTY DEED made this aV day of September, 2012 between DREW
M. DILLWORTH, not individually, but solely as the Chapter 11 Bankruptcy Trustee for the
Substantively Consolidated Bankruptcy Estates of the Debtors, WAGNER SQUARE, LLC, A Florida
limited liability company and WAGNER SQUARE I, LLC, a Florida limited liability company under
Case No, 12-20659-LMI, in the U.S. Bankruptcy Court for the Southern District of Florida, Miami
Division (collectively, the "Grantor") and CITY OF MIAMI, a municipal corporation of the State of
Florida, whose mailing address is City of' Miami c/o Department of Public Facilities, 444 SW 2nd
Avenue, Miami, Florida 33130 (the "Grantee").
WITNESSETH:
That Grantor, for and in consideration of the sum of TEN DOLLARS ($ 10.00) and other good
and valuable consideration, to Grantor in hand paid by Grantee, the receipt and sufficiency whereof is
hereby acknowledged, does hereby grant, bargain, sell, alien, remise, transfer, release, convey and
confirm unto Grantee and Grantee's successors, heirs and assigns the real property (the "Property")
located in Miami -Dade County, Florida, and more particularly described in Exhibit "A" attached hereto
and made a part hereof.
SUBJECT TO:
1. All easements, conditions, covenants, restrictions, reservations, limitations, agreements and
other [natters of record, provided that this instrument shall not reimpose same.
2, Real estate taxes for the year 2012 and all subsequent years.
3. Existing applicable governmental building and zoning ordinances and other governmental
regulations.
4. Matters that would appear on a current and accurate survey of the Property.
TOGETHER with all the tenements, hereditaments and appurtenances belonging or in any way
appertaining to the Property,
TO HAVE AND TO HOLD the same in fee simple forever.
NOTE TO CLERK: This Deed evidences the re -conveyance of the subject property to the City of Miami, a
municipal corporation of the State of Florida, without consideration and the subject property is
unencumbered. Accordingly, minimum documentary stamps and surtax are owed hereon and are being paid
in connection herewith.
Book28287/Page4161 CFN#20120684017 Page 1 of 4
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AND GRANTOR hereby covenants with Grantee that Grantor is lawfully seized of the Property
in fee simple; that Grantor has good right and lawful authority to sell and convey the Property; and that
Grantor does hereby specially warrant the title to the Property and will defend the same against the lawful
claims of all persons claiming by, through or under Grantor, but against none other.
The Property is being conveyed in accordance with the Order Granting Trustee Dillworth's
Motion for Substantive Consolidation dated September 19, 2012, as to the Bankruptcy Estates of the
Debtors, Wagner Square, LLC, a Florida limited liability company and Wagner Square 1, LLC, a Florida
limited liability company under Case No. 12-20659-LMI in the U.S. Bankruptcy Court for the Southern
District of Florida, Miami Division.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
[SIGNATURE AND NOTARY BLOCK ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, Grantor has caused this Special Warranty Deed to be executed on the
day and year first above written,
WITNESSES:
Witness Signature
Sci 2.4-f tc ? -r-
Print Name of Witness
ees, Signature
pp,,� -►l •,,fiess—r
rent Name of Witness
STATE OF FLORIDA
COUNTY OF MIAMi-DADE
GRANTOR:
DREW M. DILLWORTH, not individually, but
solely as the Chapter 11 Bankruptcy Trustee for the
Substantively Consolidated Bankruptcy Estates of
the Debtors, WAGNER SQUARE, LLC, A Florida
limited liability company and WAGNER SQUARE
I, LLC, a Florida limited liability company under
Case No. 12-20659-LMI, in the U.S. Bankruptcy
Court for the Southern District of Florida, Miami
Division
ACKNOWLEDGMENT
The foregoing instrument was acknowledged before me this G2S day of September, 2012, by
DREW M. DILLWORTH, not individually, but solely as the Chapter 11 Bankruptcy Trustee for the
Substantively Consolidated Bankruptcy Estates of the Debtors, WAGNER SQUARE, LLC, A Florida
limited liability company and WAGNER SQUARE I, LLC, a Florida limited liability company under
Case No. 12-20659-LMI, in the U.S. Bankruptcy Court for the Southern District of Florida, Miami
Division. He is personally known to me or presented a driver's license as
identification and did not take an oath.
Notary Stamp/Seal:
SULrIIr:PEREZ
MX COMMISSION # ES 155831
EXPIRES: January 25, 2015
• Bonded Thw Notary Piker, Underwriters
Notary I'trbTib, State of Florida
Print or Stamp Name: Su.Ze.H 6.z-
My Comtnission Expires: i/ S/ t.
Book28287/Page4163 CFN#20120684017 Page 3 of 4
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Miami -Dade Official Records - Print Document - Page 4 of 4
Exhibit "A"
Legal Description
PARCEL 1 - PHASE I
OR E?K 28287 PG 4164
LAST PAGE
A portion of land located in the NW 1/4 of Section 35, Township 53 South, range 41 East, City
of Miami, Miami -Dade County, Florida, more particularly described as follows:
Begin at the Southwest corner of tract "A", WAGNER SQUARE, according to the plat thereof,
as recorded in Plat Book 162, Page 66, of the Public Records of Miami - Dade County, Florida;
thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23 feet;
thence NOO°10'33"W a distance of 65.79 feet to a point; thence N89°49'27"E a distance of
201.77 feet to a point; thence N00°10'33"W a distance of 96.77 feet to a point on the North line
of said Tract "A"; thence N89°57`46"W along and on the North line of said Tract "A" a distance
of 259.25 feet to the NW corner of said tract "A"; thence S00°15'48"E along the West line of
said Tract "A" and the East Right -of -Way of NW 15th Avenue, a distance of 163,33 feet to the
Point of Beginning.
Book28287/Page4164 CFN#20120684017 Page 4 of 4
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Miami -Dade Official Records - Print Document
Page 1 of 5
This Instrument was Prepared By:
Record and Return to:
David A. Messinger, Esq.
Stearns Weaver Miller Weissler
Alhadeff& Sitterson, P.A.
150 West Flagler Street
Suite 2200
Miami, Florida 33130
Property Appraiser Identification No: 01-3135-087-0012
1111111111111111111111111111111111111111111
C- F h I 2012 R ro 6 4- o 2 T
0R 8i; 28287 Pas 4134 - 4188; (5a!
RECORDED 09/26/2012 15:34124
DEED DDC TAX 0.60
SURTAX 0.45
HARVEY RUVINr CLERK OF COURT
MIAMI-DADE COUNTYr FLORIDA
SPECIAL WARRANTY DEED
THIS SPECIAL WARRANTY DEED made this 0(3 day of September, 2012 between the
WAGNER SQUARE 1II, LLC, a Florida limited liability company (the "Grantor"), whose mailing
address is 11098 Biscayne Blvd., Suite 103, Miami, Florida 33161, and the CITY OF MIAMI, a
municipal corporation of the State of Florida (the "Grantee"), whose mailing address is City of Miami c/o
Department of Public Facilities, 444 SW 2nd Avenue, Miami, Florida 33130.
WITNESSETII:
That Grantor, for and in consideration of the sum of TEN DOLLARS ($ 10.00) and other good
and valuable consideration, to Grantor in hand paid by Grantee, the receipt and sufficiency whereof_is_..-.
hereby acknowledged, does hereby grant, bargain, sell, alien, remise, transfer, release, convey and
confirm unto Grantee and Grantee's successors, heirs and assigns the real property (the "Property")
located in Miami -Dade County, Florida, and more particularly described in Exhibit "A" attached hereto
and made a part hereof.
SUBJECT TO:
1. Alt easements, conditions, covenants, restrictions, reservations, limitations, agreements and
other matters of record, provided that this instrument shall not reimpose same,
2. Real estate taxes for the year 2012 and all subsequent years.
3. Existing applicable governmental building and zoning ordinances and other governmental
regulations.
4. Matters that would appear on a current and accurate survey of the Property.
TOGETHER with all the tenements, hereditaments and appurtenances belonging or in any way
appertaining to the Property,
TO HAVE AND TO HOLD the same in fee simple forever.
NOTE TO CLERK: This Deed evidences the re -conveyance of the subject property to the City of Miami, a
municipal corporation of the State of Florida, without consideration and the subject property is
unencumbered. Accordingly, minimum documentary stamps and surtax are owed hereon and are being paid
in connection herewith.
Book28287/Page4184 CFN#20120684027 Page 1 of 5
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AND GRANTOR hereby covenants.with Grantee that Grantor is lawfully seized of the Property
in fee simple; that Grantor has good right and lawful authority to sell and convey the Property; and that
Grantor does hereby specially warrant the title to the Property and will defend the same against the lawful
claims of all persons claiming by, through or under Grantor, but against none other.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
[SIGNATURE AND NOTARY BLOCKS ON FOLLOWING PAGES]
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IN WITNESS WHEREOF, Grantor has caused this Special Warranty Deed to be executed on the
day and year first above written.
WITNESSES:
Witness Signature
'ThaRC\ F50 ((Se n
Print Name of Witness
s Signature
or
Print Name .f Witness
GRANTOR:
WAGNER SQUARE III, LLC, a Florida limited
liability company
e Kolsky Authorized_S1 natory
(CORPORATE SEAL)
ACKNOWLEDGMENT
STATE OF FLORIDA )
COUNTY OF M/aou -J «c4- )
The foregoing instrument acknowledged before me this t / day of September, 2012, by Debra
Sinkle Kolsky as Authorized Signatory of Wagner Square III, LLC, a Florida limited liability company,
on behalf of the limited liability company. She is personally known to me or presented a
driver's license as identification.
Notary Stamp/Seal:
Notary Public, State of Floryd
Print or Stamp Name: 1-16 �( F'�✓
My Commission Expires: 7/6/?.,C2/.$"
Notary Pub0c State of Florid
Jessica Helnecker
My Commission EE104077
Expires 07/05/20 t 5
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WITNESSES:
t 14krL,I
Print Name of Witness
Witness Signature
Print Name of Witness
STATE OF FLORIDA
COUNTY OFV'uto •Q
GRANTOR:
WAGNER SQUARE III, LLC, a Florida limited
liability compa
By.
Joey Ede'"I""rg, Authorized Signatory
(CORPORATE SEAL)
ACKNOWLEDGMENT
)
The foregoing instrument was acknowledged before me this + da of September, 2012, by Joey
Edelsberg, as Authorized Signatory of Wagner Square III Flor',�A�ii�ll ed liability company, on
behalf of the limited liability company, He i , , ena nown to ,' e or presented a
driver's oath.
Notary Stamp/Seal:
1 RIAM. QUINTERO
MY COMMISSION N SE 111544
EXPIRES: July 12, 2015
Bonded MN Bucket Wee Services
u+lic, S o Iorida
int or Stamp Name:
My Commission Expires: 1- I `i5-
Book28287/Page4187 CFN#20120684027 Page 4 of 5
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Page 5 of 5
Exhibit "A"
Legal Description
PARCEL II - PHASE III
OR Br, 28287 PG 4188
LAST PAGE
A portion of land located in the NW 1/4 of Section 35, Township 53 South, Range 41 East, City
of Miami, Miami -Dade County, Florida, more particularly described as follows:
Commence at the southwest corner of Tract "A", WAGNER SQUARE, according to the plat
thereof, as recorded in Plat Book 162, Page 66, of the Public Records of Miami - Dade County,
Florida; thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23
feet to the Point of Beginning; thence N00°10'33"W a distance of 65.79 fee to a point; thence
N89°49'27"E a distance of 201.77 feet to a point; thence S00°10'33"E a distance of 66.46 feet;
thence N89°59'04"W along and on the South line of said Tract "A" and its extension thereof a
distance of 201.77 feet to the Point of Beginning.
112381140 0 37966.0013
Book28287/Page4188 CFN#20120684027 Page 5 of 5
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Wagner Square
T6-8-O Zoned Vacant Site
1455 NW 17 Street
Miami, Miami -Dade County,
Florida 33125
Prepared for:
Jacqueline Lorenzo
Property Management Specialist
Department of Real Estate &
Asset Management
City of Miami
444 SW 2 Avenue, 3rd Floor
Miami, Florida 33130
Appraisal Report — 16-0300
Armada Appraisal & Consulting Company
PO Box 1247
South Miami , FL 33243
Telephone: 305-266-3930
Fax: 305-266-3935
December 19, 2016
Jacqueline Lorenzo
Property Management Specialist
Department of Real Estate &
Asset Management
City of Miami
444 SW 2 Avenue, 3rd Floor
Miami, Florida 33130
RE: Appraisal Report of Wagner Square, T6-8-O Zoned Vacant Site Located at 1455 NW 17
Street, Miami, Miami -Dade County, Florida, 33125.
Dear Ms. Lorenzo:
As requested, the above referenced property has been examined for factors deemed pertinent in
arriving at market value and market rent, at the subject's highest and best use conclusion. The
purpose of this appraisal is to estimate the fee simple, "as is" market value of the property, and
arrive at an estimate of market rent, under its highest and best use; the purpose of the appraisal.
In order to carry out this assignment, a market study of real estate activity in the vicinity of the
subject property has been conducted. This investigation included the collection and analysis of
sales, offerings, and information pertaining to other development that has occurred in the area in
the recent past. The sources of this data included county deed records, our own data bank, other
real estate brokers, appraisers, and knowledgeable individuals active in the area.
Based upon the investigation, the following fee simple market value has been concluded, as well
as the market rent for the subject property based on an extensive analysis of the subject property
characteristics contained herein, at its highest and best use, as follows:
Market Value of Subject Land
MARKET VALUE CONCLUSIONS
Valuation Methodology
As Is
Land Value
$4,020,000
Reconciled Value
$4,020,000
Market Value of Subject Land and Market Rent
MARKET CONCLUSIONS
Valuation Methodology
As Is
Value of Subject Land
$4,020,000
Land Capitalization Rate
6.00%
Market Rent
$241,200
Estimate Summary Market Value and Market Rent as of Effective Day
ESTIMATE SUMMARY
Effective Date
Market Value
Market Rent
December 19, 2016
$4,020,000
$241,200
The opinions of value stated above, as well as every other element of this appraisal, are qualified
in their entirety by the Contingent and Limiting Conditions set forth in another part of this report
which is an integral part of the appraisal. As part of the Contingent and Limiting Conditions, the
value conclusion is subject to completion of an Americans with Disabilities Act (ADA) compliance
survey of the property. It is possible that a compliance survey with a detailed analysis of the
provisions associated with ADA could reveal that the property is not in compliance with one or
more stipulations. If so, this fact could have an effect upon the value of the property. Since I have
no direct evidence relating to the issue, I did not consider possible noncompliance with the
requirements of ADA in estimating the value of the property.
Exposure Time - It is reasonable to conclude that for the subject property to sell at a price equal to
our market value estimate on the appraisal date, it would have been exposed on the market for a
period of 9 to 12 months.
The appraiser(s) certify and agree that:
1. The appraiser(s) have no present or contemplated interest in the property appraised and
that neither the employment to make this appraisal nor the compensation for it is contingent
upon the appraised value of the property.
2. The appraiser(s) 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.
3. He has 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
acceptance of this assignment.
4. Albert J. Armada, MAI, SRA has personally inspected the subject property.
5. According to the best of my knowledge and belief, all statements and information in this
report are true and correct; and the appraiser(s) have not knowingly withheld any
information.
6. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
7. The analyses, opinions, and conclusions were developed, and this report has been
prepared in conformity with the Uniform Standards of Professional Appraisal Practice
(USPAP).
8. I certify that to the best of my knowledge and belief, the reported analyses, opinions, and
conclusions were developed, and this report has been prepared, in conformity with the
requirements of the Code of Professional Ethics and the Standards of Professional
Appraisal Practice of the Appraisal Institute. I certify that the use of this report is subject to
the requirements of the Appraisal Institute relating to review by its duly authorized
representatives.
9. As of the date of this report, Albert J. Armada has completed the requirements of the
continuing education program of the Appraisal Institute.
10. No one provided significant professional assistance to the person signing this report Albert
J. Armada, MAI, SRA has prepared all conclusions and opinions concerning the real estate
that are set forth in the appraisal.
11. My compensation for completing this assignment was not contingent upon the development
of reporting of a predetermined value or direction of value that favors the cause of the
client, the amount of the value opinion, the attainment of a stipulated result, or occurrence
of a subsequent event directly related to the intended use of this appraisal.
12. My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
13. Based on my experience, it is my opinion that I meet the qualifications to provide the
following opinion of the subject property's value.
14. I have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
No changes of any item of the appraisal report shall be made by anyone other than the
appraiser(s), and the appraiser(s) shall have no responsibility for any such unauthorized changes.
This letter of transmittal and the pages that follow constitute my report, including the data and
analyses utilized in forming an opinion of value. Should you have any questions concerning this
report, please do not hesitate to call my office.
Respectfully submitted,
Albert J. Armada, MIB - MAI, SRA
State Certified General
Real Estate Appraiser No. RZ 397
CONTINGENT AND LIMITING CONDITIONS
The certification of the appraisers appearing in this appraisal report is subject to the following
conditions and to such other specific conditions as are set forth by the appraisers in the report.
1. The appraisers assume no responsibility for matters of a legal nature affecting the property
appraised or the title thereto, nor do the appraisers render any opinion as to the title, which
is assumed to be marketable. The property is appraised as though under responsible
ownership.
2. Any sketch in this report may show approximate dimensions and is included to assist the
reader in visualizing the property. The appraisers have made no survey of the property.
3. The appraisers are not required to give testimony or appear in court because of having
made this appraisal with reference to the property in question unless arrangements have
been made therefore.
4. The distribution of the total valuation in this report between land and improvements applies
only under the existing program of utilization. The separate valuations for land and building
must not be used in conjunction with any other appraisal and are invalid if so used.
5. The appraisers assume that there are no hidden or unapparent conditions of the property,
subsoil, or structures which would render it more or less valuable. The appraisers assume
no responsibility for such conditions or for engineering which might be required to discover
the factors.
6. Information, estimates, and opinions furnished to the appraisers and contained in this report
were obtained from sources considered reliable and believed to be true and correct.
However, no responsibility for accuracy of such items furnished the appraisers can be
assumed by the appraisers.
7. Disclosure of the contents of this appraisal is governed by the by-laws and regulations of the
professional appraisal organizations with which the appraisers are affiliated.
8. Neither all nor any part of the contents of this report or copy thereof (including conclusions
as to property value, the identity of the appraisers, professional designations, reference to
any professional appraisal organizations, or the firm with which the appraisers are
connected) shall be used for any purposes by anyone but the client or his assigns without
the previous written consent of the appraisers, nor shall it be conveyed by anyone to the
public through advertising, public relations, news, sales, or other media without the written
consent and approval of the appraisers.
9. On all appraisals involving proposed construction, the appraisal report and value conclusions
are contingent upon completion of the proposed improvements, if any, in accordance with
the plans and specifications.
10. Unless otherwise stated in this report, the existence of hazardous material, including, but
not limited to, asbestos, polychlorinated biphenyls, petroleum leakage or agricultural
chemicals, which may or may not be present on the property, were not called to the
attention of, nor were they observed by the appraisers. The appraisers have no knowledge
of the existence of such materials on or in the property. The appraisers, however, are not
qualified to detect such substances. The presence of substances as listed above, or
substances such as asbestos, urea -formaldehyde foam insulation, chemical or toxic waste,
or other potentially hazardous materials may affect the value of the property. The value
opinion is predicted on the assumption that there is no such material on or in the property,
or on or in adjoining properties that would cause a loss in value to the property being
appraised. No responsibility is assumed for any such conditions or for any expertise or
engineering knowledge required discovering them. The client is urged to retain an expert in
this field, if desired. In the event that a conclusion is reached whereby corrective action will
be required to clean up any environmental contamination, the appraisers will at that time
retain the right to modify and/or change the value conclusions presented herein.
11. The values as concluded herein are entirely contingent upon the subject property not being
within or subject to a federally designated potential Endangered Species area as defined by
the U.S. Fish and Wildlife Service, which, as a result might otherwise limit, restrict, and/or
prevent development of the subject to its highest and best use.
12. The property is appraised free and clear of any or all liens or encumbrances unless
otherwise stated.
13. Responsible ownership and competent property management are assumed.
14. All engineering information, if any, is assumed to be correct.
15. It is assumed that there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless noncompliance is stated, defined, and
considered in the appraisal report.
16. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, unless nonconformity has been stated, defined, and considered in the
appraisal report.
17. It is assumed that all required licenses, certificates of occupancy, consents, or other
legislative or administrative authority from any local, state, or national government or private
entity or organization have been or can be obtained or renewed for any use on which the
value opinion contained in this report is based.
18. It is assumed that the utilization of the land and improvements is within the boundaries or
property lines of the property described and that there is no encroachment or trespass
unless noted in the report.
19. The forecasts, projections, or operating estimates contained herein are based upon current
market conditions, anticipated short-term supply and demand factors, and a continued stable
economy. These forecasts are, therefore, subject to change as a result of variations in the
market.
20. The construction and condition of the improvements mentioned in the body of this report are
based on observations. No engineering study has been provided which would assist in the
discovery of any latent defects. No certification as to any of the physical aspects could be
given unless a proper engineering study was made.
21. Possession of this report or a copy thereof does not carry with it the right of publication. It
may not be used for any purpose by anyone other than the addressee or the Appraisal
Institute without the previous written consent of the appraisers.
TABLE OF CONTENTS
Letter of Transmittal
Title Page
Page
INTRODUCTION 1
SUMMARY OF SALIENT FACTS AND CONCLUSIONS 1
EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT 3
PURPOSE OF THE APPRAISAL 3
INTENDED USE OF THE APPRAISAL 3
MARKET VALUE DEFINED 3
MARKET RENT DEFINED 4
PROPERTY INTERESTS APPRAISED 4
PROPERTY IDENTIFICATION 4
PROPERTY HISTORY 5
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS 5
SCOPE OF THE APPRAISAL 6
FACTUAL DESCRIPTIONS 8
REGIONAL ANALYIS — ECONOMIC OVERVIEW AND OUTLOOK 8
MARKET AREA DESCRIPTION AND ANALYSIS 16
SITE ANALYSIS 23
ZONING 25
AERIAL PHOTO 29
SITE MAP 30
FLOOD MAP 31
REAL ESTATE TAX INFORMATION 32
IMPROVEMENTS DESCRIPTION 32
ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER 33
HIGHEST AND BEST USE ANALYSIS 33
SALES COMPARISON APPROACH — LAND VALUE OPINION 35
INCOME APPROACH — DIRECT CAPITALIZATION — MARKET RENT 46
RECONCILIATION AND FINAL VALUE ESTIMATE 57
ADDENDA 58
SUBJECT PHOTOGRAPHS 58
ENGAGEMENT LETTER 60
APPRAISER'S QUALIFICATIONS 61
INTRODUCTION
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Client: City of Miami
Property Owner: City of Miami
Intended User: City of Miami
Property Address: Wagner Square - 1455 NW 17 Street, Miami, Miami -
Dade County, Florida 33125
Property Type: Land; commercial
Inspection Date: November 18, 2016
Effective Date of Appraisal: November 18, 2016
Report Date: December 19, 2016
Property Rights Appraised: Fee simple estate as to land value; leased fee as to
market rent.
Classification of Report and Appraisal: Appraisal Report
Land Size: 0.971 Acres
Usable Land: 42,309 SF
Building Size: N/A
Highest and Best Use as Vacant: Mixed Use Mid to High Rise Multifamily/Retail
Highest and Best Use as Improved: N/A
Market Value of Subject Land and Market Rent
MARKET CONCLUSIONS
Valuation Methodology
As Is
Value of Subject Land
$4,020,000
Land Capitalization Rate
6.00%
Market Rent
$241,200
Estimate Summary Market Value and Market Rent as of Effective Day
ESTIMATE SUMMARY
Effective Date
Market Value
Market Rent
December 19, 2016
$4,020,000
$241,200
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For the value of the land to materialize from the consummation of the sale of the subject property
(hypothetical) is nine to twelve months. For the market rent to materialize, the exposure time is
dependent upon execution of a long term lease for the express purpose of developing a
multifamily/mixed use building.
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EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT
INSPECTION DATE: November 18, 2016
EFFECTIVE DATE: November 18, 2016
DATE OF THE REPORT: December 19, 2016
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to provide a market value opinion of the Fee simple estate of the
subject property.
INTENDED USE OF THE APPRAISAL
The intended use of this appraisal is to assist the City of Miami in making a business decision
regarding the subject property.
MARKET VALUE DEFINED
Market value, as used in this appraisal report, is defined by the Appraisal Foundation, as:
The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and
assuming the price is not affected by undue stimulus. 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.
This appraisal has been completed in accordance with (a) all Federal banking regulations (primarily
OCC Regulation 12 CFR Part 34, FDIC Regulation 12 CFR Part 323 and Title XI of the Financial
Institution Reform, Recovery Enforcement Act of 1989 ("FIRREA"), and (b) the Uniform Standards of
Professional Appraisal Practices and Conduct ("USPAP") as promulgated by the Appraisal Standards
Board of the Appraisal Foundation.
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MARKET RENT DEFINED
"Market Rent" according to the 14th Edition of The Appraisal of Real Estate, a publication
sponsored by the Appraisal Institute, is defined as:
"Market rent is the rental income a property would probably command in the open
market. It is indicated by the current rents that are either paid or asked for comparable
space with the same division of expenses as of the date of the appraisal. Market rent is
sometimes referred to as economic rent." And further:
"The amount of data needed to support a market rent estimate for a subject property
depends on the complexity of the appraisal problem, the availability of directly
comparable rents, and the extent to which the pattern of adjusted rent indications
derived from the comparables differs from the income pattern of the subject property.
When sufficient, closely comparable rental data is not available, the appraiser should
include other data, preferably data that can be adjusted. If an appraiser uses proper
judgment in making adjustments, a reasonably clear pattern of market rents should
emerge."
PROPERTY INTERESTS APPRAISED
Fee simple as to land value; leased fee as to market rent.
PROPERTY IDENTIFICATION
Folio Numbers: 01-3135-087-0010/0012
Legal Description:
(0010) - WAGNER SQUARE, PORT OF TR A DESC BEG SW COR OF TR A S 89 DEG E 57.23FT
N 00 DEG W 65.79FT N 89 DEG E 201.77FT N 00 DEG W 96.77FT N 89 DEG W 259.25FT S 00
DEG E 163.33FT TO POB, according to plat thereof as recorded in Plat Book 162, Page 66, of the
public records of Miami Dade County.
(0012) - WAGNER SQUARE, PORT TR A DESC BEG 57.23FTE OF SW COR TR A N 00 DEG W
65.79FT N 89 DEG E 201.77FT S 00 DEG E 66.46FT N 89 DEG W 201.77FT TO POB, according to
plat thereof as recorded in Plat Book 162, Page 66, of the public records of Miami Dade County.
This legal description was obtained from the Miami Dade County's Property Appraiser's Office,
Property Cards for the above referenced folio numbers. No survey was provided for review for the
subject property.
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SALES HISTORY
No transfers of title are known to have occurred over the past three years. Subject property is
currently not listed for sale.
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS
Extraordinary Assumption:
This report does not rely on any extraordinary assumption.
For clarification, Extraordinary Assumption is defined as "An assumption, directly related to a specific
assignment, which, if found to be false, could alter the appraiser's opinions or conclusions.
Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or
economic characteristics of the subject property; or about conditions external to the property such as
market conditions or trends; or about the integrity of data used in an analysis. An extraordinary
assumption may be used in an assignment only if:
• It is required to properly develop credible opinions and conclusions;
• The appraiser has a reasonable basis for the extraordinary assumption;
• Use of the extraordinary assumption results in a credible analysis; and
• The appraiser complies with the disclosure requirements set forth in USPAP for
extraordinary assumptions. (USPAP, 2002 ed.)
Hypothetical Condition
This report does not rely on any hypothetical condition.
Hypothetical conditions are contrary to what exists, but the conditions are asserted by the appraiser
for the purpose of analysis. Hypothetical conditions assume conditions 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. A
hypothetical condition may be used in an assignment only if:
• Use of the hypothetical condition is clearly required for legal purposes, for purposes of
reasonable analysis, or for purposes of comparison;
• Use of the hypothetical condition results in a credible analysis; and
• The appraiser complies with the disclosure requirements set forth in USPAP for
hypothetical conditions.(USPAP, 2002 ed.)
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SCOPE OF THE APPRAISAL
The appraisal assignment is to estimate the subject property's Fair Market Value and Fair
Market Rental Value at highest and best use. The appraisal development and reporting process
(the appraisal assignment) was to develop an opinion of the market value of the real property as of
the inspection date. In addition the assignment required development of an opinion of market rent for
the subject property, at its highest and best use.
In preparing this appraisal, the appraiser researched and analyzed data in defining the subject
product -type, competitive product types, and related supply and demand trends from the subject's
immediate market area, as well as the broader geographic area of the city of Miami. Probable buyers
or users of the subject property -type were identified. Locational and physical characteristics and units
of measurements and comparison were identified, defined and tested. In preparing this appraisal,
information was gathered, confirmed, and analyzed from the subject's market area on sales of vacant
land sales in an analysis of the highest and best use of the subject property. A cursory, exterior
physical inspection of the subject property was performed. The body of vacant sales was gathered,
confirmed, and analyzed whenever possible. The most applicable sales were identified and confirmed
with a party to the transaction, when possible; if confirmation was not possible before the report date,
public records were reviewed and relied upon.
To develop the opinion of value, the appraisers performed an appraisal process, as defined by the
Uniform Standards of Professional Appraisal Practice. This report is an appraisal report as defined
under the Standards Section 2-2(a) of the Uniform Standards of Professional Appraisal Practice
(USPAP). This Appraisal Report is a recapitulation of the appraisers' data, analyses, and conclusions;
some supporting documentation is retained in the appraisers' file. The report complies with the
Financial Institutions Reform, Recovery and Enforcement Act of 1989.
Albert J. Armada has appraised numerous similar properties, and is in compliance with the
competency provisions of the Uniform Standards of Professional Appraisal Practice (USPAP). As a
part of the valuation process, the appraiser inspected the subject and surrounding properties, the
market area and the comparables. The highest and best uses were analyzed and determined for the
subject both as vacant and as improved.
A search for comparable land sales was made based upon, but not limited to the following search
criteria: 1) Similarly located land within the general area. 2) Date of sale within the past several years
and 3) Similar potential use. The most comparable sales were then selected from those transactions
which met these criteria. The income and cost approaches were not used for this valuation since they
are not applicable for the product type.
The Sales Comparison Approach relies heavily upon the principle of substitution. Recent sales of
similar properties are gathered, and a meaningful unit of comparison is developed. Then, a
comparative analysis between the sales and the subject involves consideration for differences in
location, time, terms of sale, and physical characteristics. The reliability of the Sales Comparison
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Approach depends, to a large extent, upon the degree of comparability between the sales and the
subject. The major strengths of this approach include the reflection of actual market transactions and
the fact that common denominators are fairly easily determined. The potential weaknesses of this
approach arise from the fact that the data is historical and ideal comparables are usually very difficult
to obtain.
The Income Capitalization Approach to value is predicated upon the relationship between income and
value. Although all of the appraisal principles are involved in this approach, the principle of
anticipation is particularly applicable. This appraisal technique converts anticipated annual net
income into an indication of value. This process is called capitalization, and it involves multiplying the
annual net income by a factor or dividing it by a rate that weighs such considerations as risk, time,
return on investment, and return of investment. The appropriateness of this rate or factor is critical,
and there are a number of techniques by which it may be developed.
The rate (or factor) can be applied when using the direct capitalization approach to arrive at market
rent. The basic formula for direct capitalization which applies in estimating market rent for the subject
property is — Income (Rent) = Rate X Value.
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FACTUAL DESCRIPTIONS
Regional Analysis - Economic Overview and Outlook
FLORIDA - GEOGRAPHY
The most southeastern state in the union is Florida; it juts out as a peninsula thus becoming a
noticeable appendage to the United States mainland. Florida sits on the Floridian plateau, a platform
that is 500 miles long and 250 to 400 miles wide. The Floridian Plateau has a core of metamorphic
rocks buried under 4,000 feet of sedimentary rocks. It separates the deep waters of the Atlantic
Ocean from the deep waters of the Gulf of Mexico. The Floridian Plateau has existed for millions of
years where at times it has been either dry land or covered by shallow waters. This platform is
distinguished as one of the most stable areas in the world. Therefore Florida is almost void of seismic
activity.
Florida's state boundaries are Georgia, directly to the north, and Alabama, to the northeast. The
Atlantic Ocean and the Gulf of Mexico serve as natural boundaries to the east and west respectively.
The state of Florida covers an area of 58,677 square miles of which 4,424 are water. Right in the
middle of the state is Lake Okeechobee the largest freshwater lake located entirely in one state in
forty-eight adjoining states. Recently the State Bureau of Geology discovered land elevated over 345
feet in Walton County thus making this the highest known elevation in the state.
Florida is located in the Tropic of Cancer and is thus blessed with a great climate. Because no part of
Florida is located more than 70 miles from salt water it benefits from the ocean breeze. One of these
breezes is the Trade Winds which is swept from the warm Atlantic ocean. The Gulfstream's water is
also a prevailing factor in Florida's climate. The Gulfstream can best be described as an underwater
river that runs from the island of Cuba through the southeastern part of the United States.
Florida's weather, long known as a haven for northerners in those cold winter months, is seldom out
of the seventy to eighty degree range. The warmest months of July and August sometimes make
southern Florida reach the ninety degree mark. Because of the weather, most Florida homes are
equipped with air-conditioning to alleviate the hotter, humid days.
Rain is plentiful in this peninsular state. The rain falls mainly in a four month period from June through
September. These months are referred to as the rainy season. During these months rain can fall at
any time from a previously clear sky. Even though at times days may start cloudy, it is seldom that
Florida has a day without sunny skies. Because of the annual abundance of sunny days, Florida is
known as the "Sunshine State".
Unfortunately Florida is susceptible to some of nature's destructive powers. Florida has sometimes
fallen prey to tornadoes tropical storms. The latter sometimes reaches hurricane proportion.
Although warning of upcoming hurricanes is given with sufficient time to protect human life, it is
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sometimes impossible to make structures impervious to the high winds. The last major storm to hit
Florida was Hurricane Andrew. Because of the damaged caused by its nearly 200 mile an hour
winds, building codes were made stricter for family dwellings.
Florida's topography is uncomplicated. It is mostly a flat state with few variations. For the most part
Florida is all coastal land. It is difficult to ignore the ocean's influence even in the most inland parts of
the state. The many lakes and inlets make the state an ideal water sport state.
In describing Florida's characteristics one cannot ignore its rich marine resources. The coral reefs
that can be seen just minutes off the coast are considered natural wonders unparalleled. The
estuaries that occur when salt water and fresh water meet thus forming a habitat for many creatures
are magnificent. Florida is also home for various species of bird and plant life that are indigenous to
this state. If there is truly a state that is nature friendly, it is Florida.
SOUTHEAST FLORIDA
Southeast Florida can be divided into two district topographical areas: (1) the Atlantic coastal ridge,
and (2) the Everglades. The Atlantic coastal ridge is where Florida's major cities are situated. These
cities include Ft. Lauderdale, West Palm Beach and, its best known city Miami. West of these major
cities are bedroom communities, some of which are incorporated, such as Coral Spring, Weston and
Pembroke Pines in Broward County, and Doral, Hialeah, and Hialeah Gardens, as well as
unincorporated areas such as Kendall, in Miami -Dade County. Further west of these areas, in both
Broward and Miami -Dade, is the Everglades.
The Everglades which is now considered a national park has been the focus of much development in
the past. A considerable amount of Florida's dry -land has been taken away from the swampy
Everglades region. The Everglades has been eroding through many factors but its recession is
predominantly due to human intervention. It has been known, only recently, that the depletion of this
area may turn out to be very harmful to Florida's future. The Everglade's conservation is being very
closely monitored by scientist and politicians alike. Currently great strides are being made to restore
The Everglades. There are majors programs under way to acquired huge swabs of land, as well as
specific engineering projects to increase water flows.
MIAMI-DADE — (Geography — Climate)
Miami Dade County is physically the largest county in the state of Florida. It is situated in the
southeastern -most corner of the state. Its boundaries hold 1,955 square miles of land, and are
bordered to the east by the Atlantic Ocean, to the west by Florida Everglades, to the north by Broward
County and Monroe County to the south. Miami Dade County has 84 miles of Atlantic coastline, sixty-
seven square miles of inland water areas, and nearly 633 thousand acres of protected national, state,
and local community parks. Miami Dade County has a subtropical climate, with an average
temperature of seventy-five degrees, about 60 inches of rainfall annually, relative humidity ranging
from 80% in the morning to 60% in the early afternoon, and annual sunshine probability of 68%.
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OVERVIEW - (Political — Social — Economic)
Miami -Dade County consists of 33 municipalities and a vast unincorporated area. Each municipality
has its own government and provides city services, such as police and zoning protection. The three
largest cites in Miami -Dade County are Miami (365,204), Hialeah (211,201) and Miami Beach
(94,012).
The county's economy has become increasingly more diversified. The Miami -Dade County economy
has a gross county product exceeding $80 billion. A traditional major economic sector driving the
local economy is the tourism industry.
Another major sector of the area's economic vitality is closely linked to Latin America and the
Caribbean Basin. It is estimated that over 30% of the labor force in the Miami Dade County Area is
directly involved with international trade and commerce. Miami -Dade County is the Business Center of
the Americas, attracting businesses worldwide that choose to open their Latin American headquarters
in South Florida. There are over 1,350 multinational corporations established in South Florida.
Miami Dade County has a disproportional number of Edge Act Banks when compared to the rest of
the country. Florida's increasing trade with Latin America and Europe helps to account for the large
number of Edge Banks in Dade County.
Wholesale and retail trade and services is also one of Miami-Dade's largest business sectors.
Manufacturing is strongly promoted and is another important component of the area's economy. As
Florida's number one manufacturing county, both in employment and number of establishments,
Miami Dade County is home to manufacturers producing a wide array of products. The greatest
concentration is in the apparel, printing and publishing and medical industries.
More than 1.1 million people make up Miami -Dade County's labor force. The employment growth
sectors in Miami -Dade County include professional and business services, health services, wholesale
trade, and construction.
In addition to the tourism industry, another fact that accounts for the local employment picture is the
continued expansion of the Latin American economies is foremost. This has led to record levels of
international trade, fueling the expansion of Miami-Dade's wholesale trade, transportation and
financial activities.
Also, Miami is succeeding in becoming a premiere global leisure travel destination and as the music
and entertainment capital of Latin America. The Miami destination has enjoyed moderate growth with
strong increases in room rates and occupancy levels at hotels and motels. This factor stimulates
retail trade services and other consumer related activities.
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Cost of living
The cost of living in Miami -Dade County is below that of many other major cities such as Manhattan,
Boston, Los Angeles, Washington, Philadelphia, and San Jose. Miami's sales tax is below the
national average and there is no state income tax and no local income tax.
Labor and Education
Miami -Dade County's workforce - its size, diversity and range of skills - is the heartbeat of its
economy. There are several resources for workforce training.
Miami -Dade County Public Schools offer customized training for businesses at minimal cost. Miami -
Dade County has the fourth largest public school district in the United States, with more than 364,000
students. More than 80% of graduating seniors continue their education, and approximately 119,656
residents pursue vocational and adult education studies.
Miami -Dade College (MDC) offers on -site training for businesses in the following areas:
management, supervision, computers, foreign trade, professional development and corporate training,
vocational and occupational training certificate programs and Associate degree programs.
Miami -Dade County has many top private and public universities and the nation's largest community
college. Approximately 113,509 college students are studying at institutions of higher learning.
Tourism/Visitor Industry
More than 10 million Europeans, Latin Americans, North Americans, and Asians flock to Miami -Dade
to savor the region's 15 miles of pristine beaches, and vibrant nightlife.
The visitor industry is the county's number one moneymaker, employing approximately 14 percent of
Miami -Dade County's workforce, and injecting $13.5 billion into the local economy each year.
Countering the nationwide trend, Miami-Dade's tourist figures and dollars continue to rise.
Demographic Data
In June 2003 the U.S. Office of Management and Budget (OMB) announced a number of new
metropolitan statistical areas (MSA) and divisions. The new South Florida metropolitan statistical
area includes Broward, Miami -Dade and Palm Beach counties. The name of this new MSA is Miami -
Fort Lauderdale -Miami Beach. The new Miami -Fort Lauderdale -Miami Beach MSA has over 5.2
million people. The Miami -Fort Lauderdale -Miami Beach MSA population ranks as the fifth largest
MSA in the United States, trailing only Los Angeles, New York, Chicago and Philadelphia.
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Miami -Dade County is a microcosm of America with a large diversity of languages, accents, foods and
cultures. Miami -Dade has the highest percentage of Hispanics of any large county in the nation,
outstripping even Bexar County, Texas - home to San Antonio - which took the title a decade ago.
Immigrants, mostly racial and ethnic minorities, have streamed into Miami -Dade over the past 40
years. As of 2010 the total population was reported to be 2,496,435, a growth of nearly 11 % since
2000, or slightly over 1% per year. The County's growth is mostly because of immigration. That
makes Miami -Dade the second-largest county on the East Coast.
The population of this culturally diverse community is 21 percent non -Hispanic white, 21.6 percent
black, and 57 percent Hispanic. While the Hispanic culture in Miami -Dade has traditionally been of
Cuban background, significant changes have occurred. While Cubans remain by far the largest
group, they are increasingly living alongside other Latin Americans. Since 1990, in Miami -Dade,
immigrants from Paraguay increased 161 percent; Venezuelans were up by 119 percent; and
Mexicans 65 percent. By comparison, Miami-Dade's Cuban population grew 15 percent. All told, the
number of non -Cuban Hispanics in Miami -Dade is now roughly equal to the number of those with
Cuban ancestry.
Changes have affected South Florida's coastal retirement communities, turning them into family cities,
as the median age dropped and the number of families with children rose sharply. The push to the
suburbs continues as once isolated edges of Miami -Dade become sprawling suburbs in areas such as
Aventura in the northeast and West Kendall and Doral to the West.
International Trade
Miami -Dade stands at the intersection of the Americas and the world, and is the meeting ground for
more than 1,000 multinational corporations including Apple, Oracle Corp., IBM, Clorox, Burger King
and Porsche. Miami-Dade's enviable proximity to Latin America and the Caribbean has made it the
uncontested center of international trade with those pivotal regions.
High percentages of all U.S. trade with Central America, the Caribbean and South America flowed
through the Miami Customs District. The Miami Customs District is made up of all Florida seaports
and airports south of Tampa. Miami International Airport, the Port of Miami and the city's highways
and railways make up the infrastructure that feeds the region's thriving international trade. The top
exports flowing out of the Miami Customs District were electrical and electronic machinery and
equipment, aircraft parts and medical equipment, bound for Latin American or Caribbean countries.
Top imports include accessories and apparel.
Leisure
Miami -Dade is one of the most multiethnic and multicultural areas in the world, bringing with it the
music of the many languages that are spoken here. This is a melting pot in the truest, most wonderful
sense of the word - no matter where you come from, you will feel not just accepted, but embraced.
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Leisure opportunities such as year-round sports, entertainment, cultural activities, and shopping are
often mentioned as key reasons for being based here. The possibilities are endless — sunning on the
white sands along the coast; an airboat ride through the Everglades; taking the kids biking at a
waterfront park in Coconut Grove; visiting galleries in Coral Gables or Miami Beach; hitting those
unbelievably chic stores in Bal Harbour; a romantic dinner for two; or golfing and fishing. With an
average annual temperature of 75 degrees (23 degrees Celsius), a low cost of living, a diverse and
welcoming population, wonderful neighborhoods, excellent schools, an endless array of leisure and
cultural activities, and easy access to and from Latin America and the Caribbean, it is no surprise that
so many call Miami -Dade home.
Transportation
Miami -Dade County has a comprehensive transportation network, designed to meet the needs of
residents, travelers and area businesses. A public mass transportation system, known as the
Metrorail is a 20.5 mile elevated rapid transit system. Presently, and nearing completion, a new leg to
the Metrorail system is under construction. The Metrorail Extension Project is a 2.4 mile extension
that will run from the exiting Earlington Heights station to the Miami Intermodal Center (MIC). At a
cost of $506 million, this project will provide connections between the Miami International Airport and
rapid transit.
The Metromover is a free and convenient way to get around downtown Miami -Dade County. Riding
on rubber tires, the automated trains cover a 4.4 mile loop around downtown Miami, the Brickell
financial district and Biscayne Bay. Passengers are treated to a scenic view from the elevated height
of the single car train as it winds past the business districts. The Metromover connects with the
Metrorail at two stations, taking passengers on a 21.5 mile aboveground route northwest to Hialeah
and south through Coconout Grove and Coral Gables to Kendall.
The extensive Metrobus network connects all corners of the County. Amtrak trains run out of Miami,
while the 65 mile Tri-Rail connects Miami International Airport to Hollywood, Fort Lauderdale, Boca
Raton and West Palm Beach.
With the third highest international passenger traffic in the United States, Miami International Airport is
commonly known as the "Hub of the Americas," serving as a vital gateway between the United States
and Latin America. More than 100 airlines fly passengers each year. The bustling airport is in the
process of billions of dollars in expansion programs to accommodate more passengers.
Massive cruise ships leisurely make their way out to the sea from Florida's largest port, the Port of
Miami, which saw 3.3 million passengers last year. Approximately 8 million tons of cargo passes
through the busy port each year, and a five-year, $171 million capital improvement program has
resulted in the renovation of existing structures and facilities and the construction of new ones.
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Summary and Conclusion
Over the last four decades, Miami Dade County's growth has been explosive in comparison with the
nation as a whole. With time the area has matured, its economy has diversified and gained
importance as an international trade and finance center. This diversification and increased
independence from tourism is a trend which can be expected to continue in the long term.
The national economy as of late experienced an intense and widely visibly recession. Recovery
began slowly and over time. The residential real estate market suffered significant declines in the
volume of transactions and in many in prices (values). The commercial real estate markets also
experienced a similar slow down in volume and in more isolated cases declines in prices (values) —
albeit at a slower pace than residential product types.
The slowdown, correction and reversion in the real estate markets were widespread, coupled with the
credit crunch. This is was due to the financial credit markets exhibiting a significant decrease in the
amount of capital available for real estate transaction both in the residential and commercial sectors.
In particular Miami Dade County experienced a significant correction in the real estate market for all
product types — but especially for the housing sectors — generally considered more acute than in most
parts of the country. Miami was at one point reported to be the most oversupplied housing market in
the nation, by the National Association of Realtors; most of the vacant inventory consisted of
condominiums. Miami was also reported to suffer from one of the highest foreclosure rates in the
nation.
Miami and Miami Dade County, it must be noted are very resilient. Before the great recession, the
area experience incredible changes, both natural and man-made, but it still continued to thrive. Major
employers in the area such as Eastern Airlines and Pan Am have ceased to exist, yet Miami and
Miami Dade County maintained relative strength. Hurricanes have taken their toll in the past, and yet
the area bounces back.
It is widely recognized that Miami and Miami Dade, ultimately fared better than most national
economic/populations hubs as a result of its ties to the Caribbean and South America. The area will
likely continue to benefit from international trade and tourism. Also, the sustained population growth
over the last four decades can only continue to force economic growth.
Today all real estate product types have begun to illustrate increased strengths. Property values for
commercial income producing properties are stable to increasing, with the housing market currently
experiencing an ever increasing resurgence. The broad strength is palpable in most markets, defined
by property types and geographic areas, with continued reasonable gains into the future expected.
Property values for commercial properties first showed signs of movement towards stabilization
commencing in 2012. Now with increased demand, pricing (value) is in the increase. Commercial
rental rates for all product types have also increased but they have been followed with mixed signs on
vacancy levels.
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Given the economic, social, governmental, environmental and locational influences at play, Miami and
Miami Dade County are poised to benefit from steady and continued strength — albeit somewhat more
tempered. The long term economic future of Miami Dade County, and most communities, remains
relatively strong. A growing population base, an excellent climate, a constantly diversifying economic
base, and an extensive, expanding and improving transportation system all contribute to the
desirability of the area. Miami -Dade County and Miami will continue to illustrate strength in the long
term.
This is attributed in particular to the area being the recipient of considerable influx of capital flight from
South America; a phenomenon that has assisted the entire South Florida area in its economic revival.
These trends are expected for all property types in the area. Nevertheless, into the future particular
attention must be given to the impact on the recovery on mid income, local populations, with less
emphasis on the higher income, high price, international buyers/investors.
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MARKET AREA DESCRIPTION AND ANALYSIS
The subject property is located within the Allapattah neighborhood. The boundaries of Allapattah are
not easily defined. When looking at the area as extracted from a map of Miami, its form resembles a
deep skillet with a thin handle. Its boundaries can best be described in sections. The following map
serves as an overview of the entire geographic area which is Allapattah.
Allapattah Map 1 Overview
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g��l♦r"irriw��rr �� �Isii�����
lire
11
At its furthest northwest point of Allapattah's boundaries, commencing with the intersection of NW
36th Street with NW North River Drive, it makes up the handle moving easterly until NW 27th Avenue
where the boundaries shift north to NW 38th street. This northern border continues until NW 19th
Avenue where it again shifts one block further north to NW 39th Street. There the northern border
remains until its end on Interstate 95 (1-95) which serves continuously as Allapattah's border to the
east.
Allapattah's border on the south is State Road 836, at its connection with 1-95, until it overpasses NW
North River Drive at approximately NW 14th Avenue. NW North River Drive serves as its southern
boundary until it intersects NW 27th Avenue. NW 27th Avenue is Allapattah's west border until NW
36th Street which as previously described makes up our imaginary skillet's handle.
The map on the next page is a more detailed geographic description of the area of Allapattah,
illustrating intersecting streets and avenues and major boundaries such as Interstate 95 (1-95) and
State Road 836 (SR-836).
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Allapattah Map 2 Detailed
NW 451h St
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Grapeland Water Park
NW 11th St
NW 78th St
ALLAPATTAH
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Background
Allapattah is considered as one of Miami's original neighborhoods. The earliest settlements date back
to the late 19th century. The Allapattah name can be traced to its Seminole Indian origins. Allapattah
is the Seminole Indian word for alligator. Early development occurred close to the major
transportation routes near NW 17th Avenue and 20th Street, NW 17th Avenue and 28th Street and
NW 17th Avenue and 36th Street. The area began to develop with wood -frame single family
structures built on stilts on forty and fifty foot wide lots. Most of the population was concentrated
between 22nd and 25th Avenues. Allapattah experienced further growth after World War II.
Agricultural land was quickly replaced by housing developments.
The fifties was the decade in which Allapattah could be classified into a suburban residential area with
a viable commercial district. The commercial district ran along NW 36th Street and along 17th
Avenue. In the sixties, Allapattah was the subject of rapid change. With the construction of 1-95, the
Airport Expressway and 836, the East-West Expressway, the area became physically separate and
isolated into a smaller geographic unit.
17RPage
Latin American migrations composed principally of Cuban and Puerto Rican heritage, in the early
sixties settled into an area. Allapattah was favorable due to its proximity to the Hialeah and Miami
factory districts. Today the area is over 70% Hispanic with Spanish being the predominant language
spoken. The 1980s brought influxes of Dominican Americans, Nicaraguans, Hondurans, and Haitians
in the aftermath of various refugee crises in those nations. Now, a melting pot of residents from all
across the Caribbean, Central America, and Latin America reside in the area. Currently among those
of Hispanic background with greater presence in the area, notably are from the Dominican Republic.
The neighborhood was nicknamed Little Santo Domingo in 2003. Most businesses in the area are
owned and operated by Hispanics. There is definitely a Latin flavor in Allapattah.
Retail, Businesses, and Fashion District
Although relatively small in geography, there are many components to the Allapattah
economic/business districts, tightly compacted. Many of the businesses and educational institutions
in the neighborhood are generally, traditionally located on Northwest 36th Street (US 27). A factor
that greatly benefits the area is that NW 20th Street is still considered the fashion district of Miami.
Over 60% of the businesses in Allapattah are directly or indirectly associated with the fashion
industry. A thriving textiles market is located along Northwest 20th Street between Northwest 17th
and 27th Avenues, with several garment manufacturing and wholesale outlets from Latin America and
the Caribbean makers along the row.
Produce Market
The Produce Market, the largest open-air food distribution center in Miami, serves local supermarkets
and bodegas with the freshest variety of South Florida produce, tropical fruits and many other
products.
Industrial District
The industrial district of the city of Miami is located in an area straddling the Civic Center, north of NW
20 Street. The Allapattah industrial area (submarket-district) is part of a broader industrial market
known as the Central West industrial market sector, as defined by the Commercial Industrial
Association of South Florida (CIASF). The Central West industrial market sector encompasses an
industrial area located from NW 12 Street on the south to NW 103 Street on the north and from NW
37 Avenue on the west to Interstate 95 (1-95) on the east. It is has seen very little expansion in
growth, and in new industrial construction in the last decade.
18RPage
Trades
Trades in the area range from clothing manufacturers, auto repair, carpentry and upholstery shops.
Wholesale trade is the primary enterprise with 70% of the businesses in Allapattah selling for resale.
Retail sales are a distant second with only 20% of total sales. Manufacturing comes in third with less
than 10%. Many of the clothing items bought in other stores around Miami were previously bought
wholesale in Allapattah. In Allapattah most of the businesses are small having between 1 and 5
employees.
Shipyards
Additionally, several shipyards and dry docks located along the neighborhood's banks of the Miami
River.
Civic Center Area
Jackson Memorial Hospital is the primary presence in a sub -area of Allapattah which is known as the
Civic Center Area. The Civic Center area is identified by a concentration of Hospital complexes,
including Cedars of Lebanon Hospital and the V.A. Hospital, and ancillary uses such as apartment
buildings, hotels, medical office buildings, as well as a grouping of governmental uses such as the
Dade County public health department, courts, detention centers and police department and State
Attorney's offices. This sub -area is identified by its expanses on both sides of NW 12th Avenue and
on both sides of NW 14th Street at their intersection. However its boundaries have expanded beyond
the immediate areas of NW 12th Avenue and NW 14th Street towards the northeast and east. This is
where the Miami Dade Community College Medical Campus, the Lindsey Hopkins technical school
and the recently completed University of Miami Medical/Technical Research Center are located, and
where identifiable tracts of land continue to be sought and purchased to expand such existing uses as
well as to supplement these uses. The Civic Center sub -section of Allapattah is an important element
of the Allapattah neighborhood.
The Civic Center then is a concentration of medical/hospital and governmental services, with ancillary
uses ranging from apartment buildings, hotels and offices. In the Civic Center area Allapattah does
have some massive hospital complexes and ancillary uses, lead by the Jackson Memorial Hospital,
and also governmental buildings, including courts, detention centers etc.
Demographics
Allapattah is moderately populated, with1.72% of Miami Dade County's population. Income levels
within surrounding areas of the immediate subject market are generally considered to be at low to
moderate levels. The subject property is inside census track 30.04 pursuant to the map on the next
page. Others census tracts that are closely associated with Allapattah and which abut the subject's
census tract to the east, west and north are 30.01, 30.03, 24.02, 29, 24.03, 24.04, 25.01 and 25.02.
These census tracts are illustrated in the map presented in the next page.
19RPage
Census Map Illustrating Relevant Tracts for Allapattah
Demographic and Economic Data from all of the tracts associated with Allapattah is presented in the
table on the following page.
20RPage
Demographic and Economic Data for Census Tracts for Overtown
Subject
30.04
30.01
30.03
29
24.02
24.03
24.04
25.01
25.02
SUM
MD County
SUM/MD
POPULATION
Total Population
4,450
2,705
6,315
5,752
5,323
4,173
5,386
5,388
3,421
42,913
2,496,435
1.72%
POPULATION, HISPANIC OR LATINOORIGIN
Not Hispanic or Latino
1,205
1,426
578
1,070
596
269
772
1,227
1,121
8,264
872,576
0.95%
Hispanic or Latino
3,245
1,279
5,737
4,682
4,727
3,904
4,614
4,161
2,300
34,649
1,623,859
2.13%
POPULATION, RACE
White alone
2,849
1,584
5,047
3,778
4,026
3,128
3,535
2,932
1,787
28,666
1,841,887
1.56%
Black or African American alone
1,166
814
528
1,256
688
507
1,155
1,527
1,226
8,867
472,976
1.87%
American Indian and Alaska Native alone
22
13
69
28
28
29
20
46
9
264
5,000
5.28%
Asian alone
76
106
43
7
4
2
23
27
23
311
37,669
0.83%
Native Hawaiian and Other Pacific Islander alone
2
3
1
0
0
0
1
2
1
10
675
1.48%
Some Other Race alone
207
103
411
451
401
357
449
611
258
3,248
79,351
4.09%
Two or More Races
128
82
216
232
176
150
203
243
117
1,547
58,877
2.63%
POPULATION, SEX
Male
2,702
1,408
3,226
2,968
2,773
2,153
2,692
2,743
1,760
22,425
1,208,364
1.86%
Female
1,748
1,297
3,089
2,784
2,550
2,020
2,694
2,645
1,661
20,488
1,288,071
1.59%
POPULATION, AGE (18YEARS)
18years and over
3,831
2,297
4,931
4,333
4,052
3,221
4,378
4,061
2,565
33,669
1,950,707
1.73%
Under18years
619
408
1,384
1,419
1,271
952
1,008
1,327
856
9,244
545,728
1.69%
MEDIAN AGE BY SEX
Both sexes
39.7
43.9
37.2
34
34.8
36.4
43.5
33.9
36.1
37.72
38.2
98.75%
Male
37
43
35.5
34.4
35.1
35.6
42.6
33.6
35.9
36.97
36.9
100.18%
Female
44.8
44.8
39.2
33.6
34.5
37.2
45.1
34.1
36.4
38.86
39.4
98.62%
HOUSEHOLDS
Total Households
1,639
987
2,203
1,764
1,675
1,239
2,171
1,530
1,080
14,288
867,352
1.65%
HOUSING UNITS
Total Housing Units
1,907
1,176
2,437
1,862
1,847
1,346
2,346
1,698
1,179
15,798
989,435
1.60%
HOUSING UNITS, OCCUPANCY STATUS
Occupied
1,639
987
2,203
1,764
1,675
1,239
2,171
1,530
1,080
14,288
867,352
1.65%
Vacant
268
189
234
98
172
107
175
168
99
1,510
122,083
1.24%
HOUSING UNITS, OCCUPIED, TENURE
Owned with a mortgage or a loan
90
196
338
250
325
312
232
366
275
2,384
360,923
0.66%
Owned free and clear
25
43
183
99
102
145
80
162
97
936
122,951
0.76%
Renter occupied
1,524
Low
748
Mid
1,682
Mod
1,415
1,248
782
Mod
1,859
Low
1,002
Mod
708
Low
10,968
Average
of Census
Tracts
383,478
% of
2.86%
Family Income
Mod
Mod
2010 MSA/MD/Statewide non-MSA/MD Median Family Income
$50,065
Actual 2010
2016 MSA/MD/Statewide non-MSA/MD Median Family Income
$48,100
56.39%
2010Tract Median Family Income
$24,707
$43,625
$26,770
$26,209
$25,286
$25,780
$21,612
$27,314
$22,821
$27,125
Estimated 2016
2016Tract Median Family Income
$23,733
$41,910
$25,719
$25,176
$24,291
$24,767
$20,760
$26,239
$21,924
$26,058
54.17%
21IPage
The subject market area — Allapattah - contains a total of 42,913 people, 33,669 — 78.5% - over 18
years of age and with a median age of 38 years. There are a total of 15,798 total housing units, with
a total of 14,288 occupied households and 1,510 vacant units. From the total households units,
3,320 are owner occupied with 10,968 rented; 21% are owner occupied, 69.4 are rentals, and 9.6%
are vacant. Median family income levels for the area in 2016 ranged from $20,760 (24.04) to $41,910
(30.01) with an average of $26,058; the average for Allapattah is 54.17% of the average for Miami
Dade County.
Summary and Conclusions
Allapattah
As such the Allapattah neighborhood/market can be best described as scattered collection of office
buildings, light industry and manufacturing, wholesale outlets, warehousing and small retail
establishments. Allapattah is devoid of skyscraper office edifices but has a business district which is
considered an integral part of the community. NW 20th street, regarded as Allapattah's main street, is
considered Miami's fashion district. The business districts in Allapattah - which incorporates primarily
retail activity as its motivating force - is supported by light industry and manufacturing, as well as
wholesale and warehousing activities. The retail activity is a tremendous force in Allapattah in view
of the increasing prices paid for improved strip shopping centers, the perceivable international
character of the goods sold, the sustained occupancy rates in these storefronts and the comparative
high rents.
Allapattah then is in an interesting situation in that there are two diverse but tremendously motivating
forces at work in this market. This can only result in continued growth and expansion of opportunities
for business and development in Allapattah. Allapattah is therefore one important pocket of
commerce and development in the Miami and greater Miami area.
Another important element of Allapattah is its proximity to the heart of Miami. The major highways
that run through it put Allapattah in easy reach from anywhere in Miami. It is just north of the Miami
Downtown-Brickell Area, the Central Business District. Just to the west of Allapattah is the Miami
International Airport, which ranks second in the United States as far as size and number of
international passengers.
Allapattah is also greatly helped by the mass transit system in Miami, with three metro rail stops in the
area: Santa Clara, Allpattah, and Earlington Heights. Metrorail consists of 21.5 miles of elevated
guide way running from the city of Hialeah to the Dadeland area in South Dade County. Metrorail's
northern most stop is the Hialeah Station that also connects it to the TriRail system which can take
passengers all the way up to West Palm Beach. Allapattah is strategically located between Miami
and Hialeah. This Miami -Hialeah connection makes it a formidable place for future expansion.
Allapattah stands in the center of Miami as Miami looks to merge itself to a global community.
22RPage
SITE ANALYSIS
Address:
Folio Numbers:
Land Area:
Gross Land Area:
Usable Land Area:
Primary Road Frontage:
Secondary Road Frontage:
Average Depth:
Access:
Shape:
Corner Lot:
Visibility:
Paved Street:
Sidewalk:
Curb And Gutter:
Storm Sewer:
Utilities
Public Electricity:
Water Supply:
Public Sewer:
Natural Gas:
Underground Utilities:
Adequacy of Utilities:
Street Lighting:
Traffic Count:
Landscaping:
Topography:
Rail Access:
Port Access:
Flood Plain:
1455 NW 17 Street
Miami, Miami -Dade, Florida 33125
01-3135-087-0010, 01-3135-087-0012,
42,309 SF
42,309 SF
0.971 Acres
174 '- NW 15 Avenue
N/A
259 Ft
Direct by NW 15 Avenue
Rectangular
No
Visibility from NW 15 Avenue and surrounding
development is rated as average.
Yes
Yes
Yes
Yes
Yes
Municipal Public
Yes
Yes
Yes
Average
Yes
Not available for 2015
Fair
Basically Level
No
No
The Flood Insurance Rate Maps, published by
the Federal Emergency Management Agency
panel number 12086C0311L dated September
11, 2009, indicate the following: Flood Zone
AE. Special flood hazard areas subject to
inundation by the 1 % annual chance flood.
The 1 % annual flood (100-year), also known
as the base fold, is the flood that has a 1
chance of being equaled or exceed in any
given year. The Special Flood Hazard is the
231Page
Earthquake Zone:
Irrigation Water:
Easements/Encumbrances:
Environmental Issues:
Topography Studies:
Functional Utility:
area subject to flooding by the 1 % annual
chance flood. Areas of Special Flood Hazard
include Zone AE. The Base Flood Elevation is
the water -surface elevation of the 1% annual
chance flood.
No
No
No
No
While it is beyond the appraiser's expertise to
determine the presence or extent of any
environmental contamination within the site, it
is incumbent upon us to comment as to any
visible evidence of contamination or any
apparent source of potential contamination.
Upon the normal course of inspection of the
site, the appraiser found no readily visible
evidence of contamination. Should
contamination be discovered in the future,
such discovery could materially affect the
value of the subject property and the
undersigned reserves the right to reconsider
his value conclusion.
No
A topographical survey was not provided;
however, the land appeared to be relatively
level and at grade with the adjoining public
right-of-ways. We have no data on subsurface
conditions, but due to improvements on this
and adjoining parcels, it is apparent that the
load bearing capacity of the site is sufficient to
support improvements to the site.
Utilities -
All utilities were present at the suject site.
Electricity is provided by Florida Power and
Light. Water service is provided by Miami
Dade County Water and Sewer. Telephone
service is provided by AT&T.
Conclusion:
The subject land tract contains a total site area of 0.971 acres, or 42,309 square feet. There are no
site improvements. The shape of the property is rectangular and benefits from having direct access to
and from NW 15 Avenue. Visibility to the site is considered fair.
24RPage
ZONING
Zoning:
Legally Conforming:
Zoning Change
Requested:
Likely:
T6-8-O, Urban Core - Open
Yes
No
No
Map of Subject Property's Miami 21 Zoning
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25IPage
Miami 21 Zoning Class Legend
PROPOSED ATLAS
lit T1 NATURAL
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TB-B' URBAN COIRL
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T3FS' LRDANCORE
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The subject property is located within the incorporated area of the city of Miami, and therefore its uses are
limited by the city's prevailing zoning code. It is zoned T6-8-O, Urban Core - Open. This zoning
classification allows a density of 150 dwelling units per acre, with a corresponding intensity, Floor Lot Ratio
(FLR), of 5. This zoning classification is interpreted to allow development of mid to high levels of density
and intensity; permitting mixed use properties, with primarily residential uses in the upper floors, plus a
relatively broad variety of commercial uses on the ground or lower floors.
26RPage
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Boxes with no designation signify Use prohibited.
271Page
Miami 21 Building Disposition for T6 Zones
Specific to T6 Zones
BUILDING DISPOSITION
Building disposition describes where the building sits in relation to the lot or parcel. The following are the specific regulations that apply to
building disposition in a T6 zone. The diagrams below explain building setback requirements specific to each T6 zone. These regulations ensure
that transitions occur between transects—creating a natural separation between buildings of incrementing capacity.
T6-8 ZONE BUILDING DISPOSITION Note: This Building Placement applies to all T6
Zones.
LOT OCCUPATION
a. Lot Area
b. Lot Width
c. Lot Coverage
1-8
Above
d. Floor Lot Ratio (FLR)
e. Frontage at front setback
f. Open space Requirements
g. Density
BUILDING SETBACK
a. Principal Front
b. Secondary Front
c. Side
d. Rear
e. Abutting T5
Abutting T4
Abutting T3
f. Across street from T3
Principal
Secondary front
5000 sq.ft min.; 40,000 sq ft.
max
50 ft. min
stories 80% max.
8 story 15,000 sq. ft. max. floor plate
for Residential & Lodging
30,000 sq. ft. max. floor plate
for Office & Commercial
5/ 25% additional Public
Benefit
70% min.
10% lot area min.
150 du/acre max.
10 ft. min.
10 ft. min.
0 ft. or 30 ft. min. above 8th
story
0 ft. or 30 ft. min. above 8th
story
0 ft. min. lrst through 5th
story
10 ft. min. 6th through 8th
story
30 ft. min above 8th story
6 ft. min. lrst through 5th
story
26 ft. min. above 5th story
6 ft. min. lrst through 3rd
story
26 ft. min. 4th through 5th
story
46 ft. min. above 5th story
front 10 ft. lrst through 3rd story
20 ft. min. above 3rd story
BUILDING PIA EMENT
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28RPage
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31IPage
REAL ESTATE TAX INFORMATION
A summary of the assessment of the subject is provided in the following tables. The subject property
is government owned and therefore tax exempt.
ASSESSMENT & TAXES - TAX YEAR 2016
Parcel 1 Parcel 2
01-3135-087-0010 01-3135-087-0012
Tax Parcel #.
Market Value
Assessed Land Value
Assessed Building Value
Other Value
$1 ,158,720
$0
$0
Total Assessed Land Value
Total Estimated Building Value
Total Estimated Other Value
Total Assessment
$2,295,725
$0
$0
$533,640
$0
$0
City Tax Rate
County Tax Rate
Other Tax Rate
0.00000%
0.00000%
0.00000%
$2,295,725
Assessment Ratio 0.00%
Total Estimated Tax Amount $0
Total Estimate/GBA $0.00
Total Estimate/Acre $0
Combined Rate 0.00000%
GENERAL IMPROVEMENTS DESCRIPTION
The subject property was vacant as of the date of the last inspection. There are no improvements on
the subject site.
321Page
ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER
HIGHEST AND BEST USE ANALYSIS
Four criteria are examined in order to determine the highest and best use of the subject property. The
criteria and their applicability to the subject, both "as vacant" and "as improved" are as follows:
Physically Possible: the size, shape and topography affect the uses to which land may be
developed. The utility of a parcel is dependent on its frontage and depth. Sites with irregular
shapes may be more expensive to develop, and topography or subsoil conditions may make
utilization too costly or restrictive. Highest and best use as improved also depends on physical
characteristics such as condition and utility.
Legally Permissible: a legally permissible use is determined primarily by current zoning
regulations. However, other considerations such as long-term leases, deed restrictions, and
environmental regulations may preclude some possible highest and best use.
Financially Feasible: the use of the property is analyzed to make a determination as to the
likelihood that the property is capable of producing a return which is greater than the combined
income needed to satisfy operation expenses, debt service, and capital amortization. Any use that
is expected to produce a positive return is classified as financially feasible.
Maximally Productive: the use that provides the highest rate of return among financially feasible
uses is the highest and best use. The use of the land must yield a profitable net return, and the
quantity of land devoted to any specific use must be limited to that quantity which will yield a
maximum return to each owner.
Highest and Best as Vacant
Physically Possible
Physical uses are limited by the size and configuration of the site. The subject property consists of two
adjacent lots. The total net land area consists of 42,309 square feet. The subject site is rectangular in
shape. It is an interior site. The site has approximately 174 feet of frontage along NW 15 Avenue, along
the subject's western boundary, with approximately 259 feet of depth. The resulting rectangular figure is
calculated to consist of 45,066 square feet of total net land area — for purposes of this valuation we will use
the square footage as reported in the records of the Miami Dade County's Property Appraiser's Office.
Physically, there should be no impediment for development of a medium to high density mixed used
residential building.
An analysis of the subsoil conditions was not provided to the appraiser; however, it is presumed the site
could support most building types, given the existing improvements currently on the site as well as those on
the immediately surrounding properties. The site is serviced by all public utilities.
331Page
Legally Permissible
The property is located in the incorporated city of Miami, and therefore its use is limited by the city's
prevailing zoning code. It is zoned T6-8-O, Urban Core - Open. This zoning classification is interpreted to
allow development of mixed use properties, with primarily residential uses up to 65 units per acre plus a
relatively broad variety of commercial uses. Its density is limited by its Floor Lot Ratio (FLR) which is 5,
resulting in a maximum building area of 211,545 square feet, and by height 8 floors.
Details of Calculations:
42,309 X 5 = 211,545
Financially Feasible
After considering the possible legal and physical uses of the site, a financial measure is used to determine
the feasibility of the use. Financial feasibility can be determined by comparing the economic value of a
legal use to the cost of creating that use. If the cost to purchase the land, develop it and market the finished
product is less than the value of that finished product, then the use is considered to be financially feasible.
The uses of surrounding properties are generally the strongest indication of the uses the market deems to
be feasible.
Within the immediate area of the subject, in addition to the existing older stock of apartment buildings
constructed in the past 50 years, there are a variety of mixed use medium density multifamily/retail
buildings of recent construction — since the mid 2000s. The subject's location is suitable for uses that don't
require high levels of visibility exposure. It is our conclusion that most mixed use medium density
multifamily/retail buildings that would be legal and physically possible, would be uses of the site that would
reasonably be considered feasible. Particularly with maximum attention given to the mid income, local
population, instead of the higher income, high price, international buyers/investors, where signs of softening
in that high to luxury market are becoming more visible.
Maximally Productive
Of the financially feasible uses the highest residual land value, consistent with the rate of return warranted
by the market for that use, is the highest and best use. The residual land value can be found by estimating
the value of the propose use (land and improvements) and subtracting the cost of the labor, capital and
coordination expense to create the improvements. Given the estimated value of the land based on
comparable land sales, and in view of the estimated residual value of the subject site, it is evident that the
highest and best use of the site as if vacant is for the development of a mixed use mid to high rise
multifamily/retail building
AS VACANT: Mixed Use Mid to High Rise Multifamily/Retail
Highest and Best as Improved
AS IMPROVED: Not Applicable
34IPage
LAND VALUE OPINION
There are several methods appraisers can employ when developing an opinion land value. The six
basic procedures are the Sales Comparison Approach, Allocation Method, Extraction, Subdivision
Development Method, the Land Residual Technique, and the Ground Rent Capitalization Method. All
six methods are derived from the three basic approaches to value. Sales Comparison and income
capitalization (i.e. Ground Rent Capitalization) can be directly applied to land valuation. Allocation
and Extraction procedures reflect the influence of the Sales Comparison and Cost approaches; the
Land Residual Technique is based on the income capitalization and the Cost Approach. Subdivision
Development draws on elements of all three approaches.
Sales Comparison Approach (Land Valuation)
The Sales Comparison Approach is a process of comparing actual comparable property sales. This
approach to value is based upon the Principle of Substitution, which holds that "the value of a property
tends to be set by the price that would be paid to acquire a substitute property of similar utility and
desirability within a reasonable amount of time. This principle implies that the reliability of the Sales
Comparison Approach is diminished if substitute properties are not available in the market."
This approach is based upon the collection of similar sales and offering data for comparison. Market -
derived adjustments for relevant factors can sometimes be extracted from these and other sales. The
sales data is compared to the subject on the basis of those elements of comparison which include real
property rights conveyed, financing terms, conditions of sale, and date of sale. Location and other
physical characteristics are then considered. Physical characteristics typically used in comparison are
shape, topography, utilities, zoning, frontage, and flood plain. Because adjustments for these relevant
factors are market derived, the desires and actions of typical buyers and sellers are reflected in the
comparison process. Listed on the following pages are sales, which were considered to be the most
comparable to the subject property.
Units of Comparison
Two units of comparison can be used to analyze the subject property, and arrive at an estimate of
value. One unit of comparison is the sales price per maximum building area, resulting from applying
the Floor Lot Ratio (FLR) multiplier against the usable (net) land. Utilizing this unit of comparison
allows consideration due to density, as well as intensity. It is less commonly used in the market.
A second unit of comparison is both commonly used and is readily available. This is the sales price
per square foot of net usable land area. This particular unit of comparison allows for other factors —
elements of comparison - affecting value such as location and situs (corner versus interior) to be
considered. It is less useful when considering such factors that are perceived to affect value like
density, emanating from zoning differences. This unit of comparison will be utilized in analyzing the
subject property given that there was ample data in the market of similarly zoned comparable
properties (lands), with similar density as well as intensity.
35IPage
Land Sale 1
Location Data
Location:
County:
Folio Nos:
Market Type:
Physical Data
1313 NW 8 Ave/803 NW 12
Street
Miami, FL 33136
Miami Dade
01-3135-019-
1270/1280/1290/1300/1310/3
580/3570/3590/3600
Suburban
Type:
Land Area Acres:
Land Area SF:
Topography:
Shape:
Corner:
Utilities
Telephone:
Electricity:
Water:
Sewer:
Gas:
Off -site Costs:
Zoning:
Flood Plain:
Adverse Esmnts:
Environmental:
Imprvmts. At Sale:
Proposed Use:
Confirmation Source:
Confirmed By:
Comments
Land
1.049
45,686
Basically Level
Rectangular
Yes
Yes
Yes
Yes
Yes
No
$0
T6-8-L,
No
No
U/K
Vacant
Mixed Use
Deed/Broker-A.Jaramillo
AJA
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No:
Sale Price:
Financing:
Cash Eq. Price:
Price Per Acre:
Price Per SF of Land:
Price Per Front Feet:
Price Per Unit:
Sale
August 25, 2016
Days
Health Tower II, LLC
Central District Miami
Redevelopment Group, LLC
30220-3264/3622
$5,450,000
Cash
$5,450,000
$5,196,384
$119.27
N/A
N/A
Spoke in detail with listing broker — Alfonzo Jaramillo. These two parcels — land masses - are part of an
assemblage in the area by the buyer. They are not contiguous to one another. The buyer has the intention of
building a mini -city in the area. More properties are to be acquired; one parcel with 6,562 square feet already
has been purchased as of 11/1/2016 for $136.85 per square feet. The buyers perceived this area very superior
given its close proximity to the Culmer Metro Rail Station, and thus Brickell. The presence of the proposed
soccer stadium was secondary.
36'Page
Land Sale 2
Location Data
Location:
County:
Folio Nos:
Market Type:
Physical Data
1170/80 NW 11 St.,
1035 NW 11 Ct.
Miami, FL 33136
Miami Dade
01-3135-026-0310/0200/0080
Suburban
Type:
Land Area Acres:
Net Land Area SF:
Topography:
Shape:
Corner:
Utilities
Telephone:
Electricity:
Water:
Sewer:
Gas:
Off -site Costs:
Zoning:
Flood Plain:
Adverse Esmnts:
Environmental:
Imprvmts. At Sale:
Proposed Use:
Confirmation Source:
Confirmed By:
Comments
Land
2.543
110,753
Basically Level
Irregular
Yes
Yes
Yes
Yes
Yes
No
$0
T6-8-0/T5-O
No
No
U/K
Vacant
Mixed Use / High Rise
CoSta r/Deed/Broker-J. Fried
AJA
FOR4 SALE
Aztec Group. Iresatsooh
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No:
Sale Price:
Financing:
Cash Eq. Price:
Price Per Acre:
Price Per SF of Land:
Price Per Front Feet:
Price Per Unit:
Sale
December 11, 2015
4 Years
Miami River House Assocs, LTD
Riverhouse Dev LLC
29887-4130
$11,500,000
Construction
$11,500,000
$4,523,038
$103.83
$50,000.00
$38,246
This property consists of three separate sites. One, the largest is zoned T6-8-O, while the other two are zoned
T5-O. All face NW 11 Street. Listing broker indicated that property had been offered in the open market for four
years. Sellers were off -shore investors and did not want to accept offers until market rebounded.
37IPage
Land Sale 3
Land
Location Data
Location:
County:
Folio Nos:
Market Type:
Physical Data
3401 NW 17 Avenue
Miami, FLorida 33142
Miami Dade
01-3126-038-
0240/0230/0220/0320/0330
Suburban
Type:
Land Area Acres:
Net Land Area SF:
Topography:
Shape:
Corner:
Utilities
Telephone:
Electricity:
Water:
Sewer:
Gas:
Off -site Costs:
Zoning:
Flood Plain:
Adverse Esmnts:
Environmental:
Imprvmts. At Sale:
Proposed Use:
Confirmation Source:
Confirmed By:
Comments
Land
1.050
45,728
Basically Level
L-shaped
Yes
Yes
Yes
Yes
Yes
$0
T6-8-0/T3-O
No
No
U/K
Need to add yes/no
Multifamily
Seller
AJA
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No:
Sale Price:
Financing:
Cash Eq. Price:
Price Per Acre:
Price Per SF of Land:
Price Per Front Feet:
Price Per Unit:
Sale
August 14, 2015
N/A
Norman Egozi
Allapattah Trace Apartments, Lt
29739-2817
$2,850,000
Includes Construction
$2,850,000
$2,714,879
$62.31
$11, 974.79
$23,313
Seller was approached by prospective buyer. Property was not listed in the open market at time of sale. Seller
reported an arm's length transaction. Buildings demolished at a cost of $130,000 according to buyer. Proposed
use is for housing - low income. Construction is underway.
38RPage
Land Sale 4
Land
Location Data
Location:
County:
Folio Nos:
Market Type:
Physical Data
2210 NW N. River Drive
Miami, Florida 33125
Miami Dade
01-3134-027-
0020/0031 /0030/0040/0050
Suburban
Type:
Land Area Acres:
Net Land Area SF:
Topography:
Shape:
Corner:
Utilities
Telephone:
Electricity:
Water:
Sewer:
Gas:
Off -site Costs:
Zoning:
Flood Plain:
Adverse Esmnts:
Environmental:
Imprvmts. At Sale:
Proposed Use:
Confirmation Source:
Confirmed By:
Comments
Land
1.023
44,572
Basically Level
Rectangular
No
Yes
Yes
Yes
Yes
No
$0
T6-8-O,
Yes
No
U/K
Yes/Demolition
Multifamily
Attorney/Jose E. Castro, Esq.
AJA
Sale Data
Sale Status:
Date:
Marketing Time:
Grantor:
Grantee:
Document No:
Sale Price:
Financing:
Cash Eq. Price:
Price Per Acre:
Price Per SF of Land:
Price Per Front Feet:
Price Per Unit:
Sale
April 14, 2015
N/A
1920 River Corp/1622
Investment Corp/River Condo
Stec No 15-4407 LLC
29580-1507-1516
$4,147,500
Cash
$4,147,500
$4,053,332
$93.07
$27,650
$27,022
This sale consisted of four separate transactions; seller was the same with different name entities. The buyer
was the same in all instances. The expected use of the property is for multifamily. This transaction confirmed on
December 15, 2015.
39IPage
Land Sales Analysis
Land Sales Location Map
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5I
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NW 17E1 3'.
NW 111h SI
NV.. 15th S.
41z St ,GF? h SI
sr1M St
1: St
5
4
� � : ;tyre 5
3 80 NE .✓d 1
3 m NE 32r3 51
.3 NE Olt. S
NE h SI JE 3Ih
1t--29tt0 St
NE Nth SE
it x51h 51'
NE Solt, 71
NE U-d NE 31e's.
1 22ES 51
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cem„
74317
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2 Nicer.1ernial
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NE 101h
Listed on the preceding pages are those sales, deemed to be the most comparable as compared to
the subject. In order to arrive at a value conclusion for the subject, it is necessary to adjust the
comparable sales prices for characteristics (Elements of Comparison) that are dissimilar from those of
the subject property. The characteristics that may require adjustments include transactional such as
real property rights conveyed, financing terms (cash equivalency), conditions of sale (motivation),
expenditures immediately after purchase, market conditions (time), and property characteristics such
as location, physical characteristics, available utilities, and zoning.
Differences in elements of comparison may be expressed as percentage or dollar adjustments.
Isolated percentage or dollar adjustments, if such measurable adjustments can be extracted or
derived from differences in elements of comparison between sales and/or listings, would result in the
application of quantitative analysis. The source of dollar or percentage adjustment must be readily
understood by the reader of the appraisal report.
We have analyzed the selected sales, and although there were some noted differences among the
sales and between the sales and the subject property, no adjustment was able to be reliably isolated
through quantitative techniques. We were not able to isolate percentage or dollar adjustments that
could be readily illustrated quantitatively through the techniques applied.
40IPage
Whenever differences in elements of comparison between sales are unable to be isolated and
measured, resulting in a percentage or dollar adjustment, qualitative analysis is undertaken. In
comparison to the subject, superior characteristics in the sales are adjusted downward and inferior
characteristics are adjusted upward. The conclusions of qualitative analysis may be described in
terms that clearly convey the direction and often the magnitude of the difference between the
comparable property and the subject in regard to each element of comparison.
After careful analysis of the sales presented, through the use of both quantitative and qualitative
techniques, we have presented the relevant sales in the adjustment grid on the following page. We
have made percentage adjustments to the comparables reported based on noted differences between
them and the subject property. However, while the direction of the adjustments is generally supported
by trend analysis, from among the comparables reported and from competitive markets, the
magnitude of the adjustment was not extracted from the market with a reasonable degree of
confidence and as such it is founded in judgment; therefore what at first may be construed as a
quantitative analysis, is in fact qualitative.
Property Rights - The transaction price of a sale is always based on the real property interest
conveyed. In this instance, an adjustment for this attribute was not considered necessary.
Financing Terms - Prices paid in acquiring property may differ significantly due to the financing
involved, if any. Cash or cash equivalencies are the basis of value, whereas extended, above market
interest rate and/or leverage investor terms sales, generally represent the higher portion of a sales
price range. Therefore, some methods of converting these financing terms to cash must occur so that
the adjustment process may be applied to the sales. In reviewing the comparables, an adjustment
was not required for atypical financing.
Conditions of Sale - Adjustments made for conditions of sale usually reflect atypical motivations of the
buyer and seller at the time of conveyance. A sale may be transacted at a below market price if the
seller needs cash in a hurry. A financial, business, or family relationship between the parties may
also affect the price of property. Interlocking corporate entities may record a sale at a non -market
price to serve their business interest. When non -market conditions of sale are detected in a
transaction, the sale must be thoroughly researched before an adjustment is made. Within the
confirmation process, detailed attention was made to ensure the conditions of each sale. Based upon
the research performed, it is believed that all of the comparable sales involved regular arms -length
transactions without the presence of duress or adverse market influence. As such, no adjustments
were warranted.
Market Conditions/Time - Market conditions may change between the time of sale of a comparable
property and the date of the appraisal of the subject property. Changed market conditions often result
from various causes, such as inflation, changing demand, and changing supply. Time itself is not the
cause for the adjustment.
41IPage
The market has been fairly stable over the period in which the sales took place. In this instance, a
market condition adjustment was not made.
Location - Location considerations include such factors as proximity to surrounding land use plus
accessibility to supporting development and transportation routes. When reviewing the sales, it was
determined that comparable land sales 1 and 4 had locational characteristics that were superior to the
subject property, and therefore did require downward adjustments.
Corner/Frontage - Corner located commercial properties generally bring a premium in the
marketplace due to increased visibility and ease of access. The subject is a non corner located
property. Comparable land sales 1, 2 and 5 are corners. We were unable to extract or identify any
particular difference in price among those sales which were corner and those that were internal sites.
The sales analyzed herein were considered comparable to the subject property therefore no
adjustments were deemed necessary.
Zoning - The subject is zoned T6-8-O. Although all of the sales reported had a maximum of their land
mass zoned similarly as the subject, Sales 2 through 3 did have inferior zoning on part of their overall
site. The zoning of the sales analyzed are rated similar to the subject, thus negating the need for
adjustment.
Demolition — Two of the comparables were reported to have improvements at the time of sale. We
estimated costs of demolition using estimates provided via Marshal and Swift Valuation Services. The
cost of demolition for Class B structures is report to currently range from $6.89 to $9.47 pr square foot
of building area. We were able to confirm that the costs associated with the demolition of the
buildings present at the time of sale for Sale 3 were $130,000 or approximately $7.26 per square foot.
42RPage
SUMMARY OF LAND SALES WITH ADJUSTMENTS
Comp No. Subject 1 2
3 4
Property Name
Address
City
Date of Sale
Sale Price
Land Area (Acre)
Land Area (SF)
Front Feet
Price/Square Feet
Property Rights
Financing
Conditions of Sale
Zoning
Wagner
Square
1455 NW 17
Street
Miami
---
---
0.971
42,309
174
---
---
---
---
T6-8-O
Land
1313 NW 8
Ave/803 NW
12 Street
Miami
08/25/16
$5,450,000
1.049
45,694
0
$119.27
Fee Simple
0
Arm's Length
T6-8-L
Land
1170/1080
NW 11 St
Miami
12/1 1 /15
$11,500,000
2.543
110,773
230
$103.82
Fee Simple
0
Arm's Length
T6-8-O/T5-O
Land
3401 NW 17
Avenue
Miami
08/14/15
$2,850,000
1.050
45,738
238
$62.31
Fee Simple
101 % PMM
Arm's Length
T6-8-O/T3-O
Land
2210 NW N.
River Drive
Miami
04/14/15
$4,147,500
1.023
44,562
150
$93.07
Fee Simple
0
Arm's Length
T6-8-O
QUANTITATIVE ADJUSTMENTS
Property Rights
I Financing Terms
Conditions of Sale
Months Elapsed
Market Conditions/Time
0.00%
0.00%
0.00%
3.87
0.00%
0.00%
0.00%
0.00%
12.47
10.00%
0.00%
0.00%
0.00%
16.43
10.00%
0.00%
0.00%
0.00%
20.50
10.00%
Adj Price/Square Feet
$119.27
$114.20
$68.54
$102.38
Location
Corner/Frontage
Zoning
Demolition
-20.00%
0.00%
0.00%
0.00%
-20.00%
0.00%
0.00%
0.00%
40.00%
0.00%
0.00%
4.50%
-10.00%
0.00%
0.00%
1.00%
Total Net Adjustments
Net Percent Adjustment
($23.85)
-20.00%
($22.84)
-20.00%
$30.50
44.50%
($9.21)
-9.00%
Total Adj. Price/Square Feet
$95.42
$91.36
$99.04
$93.17
43RPage
Conclusion
After making adjustments the comparables have a value range of $91.36 to $99.04 per square feet
with an adjusted mean of $94.75. The appraiser's estimate after reviewing the land sales and
considering the current market conditions is represented in the following table.
LAND SALES ANALYSIS
ADJUSTED PRICE/SQUARE FEET ANALYSIS
Sale No.
Subject
Sale 1
Sale 2
Sale 3
Sale 4
Price/Square Feet Net Adjustment
$119.27
$103.82
$62.31
$93.07
($23.85)
($12.46)
$36.73
$0.09
Adj. Price/Square Feet
$95.42
$91 .36
$99.04
$93.17
STATISTICAL ANALYSIS
Minimum
$91 .36
Average
Maximum
$94.75
$99.04
MARKET VALUE ESTIMATE
Estimated Price/Square Feet Square Feet
$95.00 42,309.00
Less Adjustment:
Land Value As Is:
A Estimated Value
$4,020,000
$0
$4,020,000
44IPage
INCOME APPROACH TO VALUE
The Income Approach to value presumes that no prudent buyer will pay more for the right to receive
the future income stream for the subject property than an amount for which he can obtain the rights to
a substitute future income stream, assuming similar quality, quantity, and durability of the income
streams. The quality of the future benefits affects investment risk and the buyer's ability to receive a
return on his initial investment, as well as, a return of his investment. The quantity of the future
benefits reflects the amount of the future income stream plus potential appreciation or depreciation
over the buyer's term of ownership. Durability relates to the amount of time that an investment will
continue to provide positive benefits of ownership adequate to meet the investor's criteria.
There are two accepted forms of the Income Approach, which can be employed for a project similar to
the subject property. These methods are the Direct Capitalization and Discounted Cash Flow
Analysis. The Discounted Cash Flow Analysis is used when multiple tenants are in -place and/or the
income stream will vary throughout the holding period. Alternatively, the Direct Capitalization
Technique is most often used when a property is currently operating at or near a stabilized occupancy
level or when a property is projected to have a relatively level income stream.
The valuation of land rent can involve several possible methods of valuation, including (1) direct rental
comparison, (2) rental extraction, (3) rental allocation, (4) land rent residual method, (5) subdivision
development analysis and (6) direct capitalization. Each approach should be considered to determine
whether it is appropriate and can lead to credible results. Support for elimination of any of the
approaches should be cited in the work file. In the case of the subject property the most appropriate
application is considered to be through the use of direct capitalization.
Direct capitalization
The basic formula for the application of Direct Capitalization is Value = Income/Rate. The other
derivations of this formula are Rate = Income/Value and Income = Rate X Value.
The formula for direct capitalization which applies in estimating market rent for the subject property is
— Income (Rent) = Rate X Value.
To arrive at market rent by means of the direct capitalization approach to land valuation (Rent = Rate
X Value) requires implementation of the following steps:
1.) The market value of the land (fee simple) is estimated. This has been accomplished and
reported earlier under the heading of Sales Comparison Approach (Land Valuation) on
page 53
2.) A market land capitalization rate is extracted from market rent data and market sales
data. In addition capitalization rates can be obtained through secondary sources of data
(surveys are generally used as support rather than as primary evidence of a capitalization
45IPage
rate). The following discussion is centered on this particular subject matter, with the intent
of concluding upon a land capitalization rate.
3.) The subject's estimated land market value is multiplied by the land capitalization rate
(market -derived) to arrive at an indication of its market rent. This is simply an algebraic
procedure.
Land Capitalization Rate
Market Derivation
Prices and rents are facts that are verifiable by market participants. Rates are the
relationship between rents and values. Rates must be ascertained by judgment.
The most credible way of determining the market rate for the land would be to do the following:
1.) Look at the contracted land rent and adjust it for specific conditions of the contract to arrive at
an indication of market rent at the time the rent was set.
2.) Determine by a direct market comparison approach the market value of the underlying land as
of the date the rent was set.
3.) Divide the indicated rent by the indicated market value to arrive at an indicated capitalization
rate for the land.
The resulting land capitalization rate would then be supported by market data. Using market data to
derive indicated land capitalization rates, allows more credible results.
Given the highest and best use of the subject property, every effort was undertaken in order to realize
a land capitalization rate from an identified sale of land subject to a lease, where the rents were
known. We were unable to identify a possible (anticipated) land capitalization rate for a property of
comparable use as the subject property - Mixed Use High Rise Multifamily — within the immediate
market of the subject property.
We expanded the market area and researched the expanded market in order to isolate a land
capitalization rate especially for land developed and built along similar uses to that use considered the
highest and best for the subject property. In other words, to identify sales of land subject to a lease —
leased fee estates - and where the existing improvements are multifamily and the rent to the owner of
record (landlord) is known. Again these types of transactions are few and far in between. Although it
is widely known that land leases for the development of multifamily projects in Miami Dade County do
exist — the City of Miami was one of the initial participants in this type of endeavor with the
development of the Park West residential buildings in the mid 1980s — we were able to only identify
one transaction where some of the parts were available or known.
46RPage
We have focused on the land lease agreement(s) for the land surrounding the Miami Dade County
North Dadeland Metrorail Station. It is our understanding that there was a lease agreement which
encompassed various parcels of land executed in 1994 between Miami Dade County (MDT) and
Green Dadeland Station LTD. Under the master lease agreement — commonly known as the
Dadeland North Joint Development Lease - the largest portion of land governed therein was
developed into what is known as the Dadeland Station shopping center; a multistory box retail center.
In addition, under the master lease, other parcels of land similarly encumbered by said lease were as
well developed, however the nature of the development consisted of multifamily or mixed use
developments.
Via a Memorandum of Resolution No. R-224-15, presented to the Board of County Commissioners, a
third amendment to the Dadeland North Joint Development Lease, between Miami -Dade County and
Pellmore Dadeland LP as it relates to Phase III, was approved on March 3rd 2015. The third
amendment states that Pellmore is proposing to construct a 25 stories, 265,960 SF, 272 unit, luxury,
multi -family, market -rate, and residential rental apartment building on 0.87 acres land (37,746 SF <30-
4035-038-0030>). The third amendment essentially increased the participatory rent (rent received
from the gross receipts emanating from the development) to 5.75% for the first five years and to
5.35% for all of the lease years thereafter and in addition — as understood — extended the life of the
term, under the third amendment to the master lease, to 90 years.
Two factors can be estimated that would ultimately result in the development of a land capitalization
rate. The value of the land governed under the third amendment and the potential gross receipt which
is subject to the 5.75% participatory rent (the participatory rent would render minimum rent
guarantees irrelevant).
Value of land. - Within 800 ft of Dadeland North Joint Development Lease a property of 71,573 SF of
net land area sold in December 4, 2015 for $13,000,000, or $181.63. In addition we have the sale of
an apartment building — currently being demolished and thus treated as a land indicator — in
December 2014 for $26,000,000 or $120.75 per square foot of land area. The site consists of 4.94
acres.
We estimate $150/SF for the value of the land governed under the third amendment, or $5,665,200.
Participatory Rent. - The proposed building will be similar to the building immediately west of it, which
is also part of the master lease of Dadeland North Joint Development Lease. The first floor area is
designated for retail, all of the subsequent floors are multi -family residential. Given that the building
size is reported to be 265,960 and the height is 25 floors, it is reasonable for the footprint of building to
have 10,600 +/- SF; this is ground coverage of 30%. The first floor would roughly have 10,000 SF of
retail area. Current market rents are estimated at $30/SF NNN, generating a gross income of
$300,000 to the leaseholder of the land. At 95% occupancy gross income would be $285,000 thus
generating $16,388 per year in income for Miami Dade County (MTD) once stabilized. We can also
estimate that there will 267 multi -family residential units — the balance from the 272 is attributed to the
retail units in the first floor. Residential rents are estimated at $1,350 average rent per unit. At 97%
47IPage
occupancy gross income would be $4,195,638 to the leaseholder thus generating $241,249 per year
in income for Miami Dade County (MDT) once stabilized. Once stabilized, the expected income
generated for Miami Dade County (MDT) will be $257,637 yearly from both the retail and the
residential income streams.
These to estimated factors would allow us to arrive at a land capitalization rate of 4.55%. This rate is
the results of anticipated income generated to the land owner to be received from the development of
mixed use (multifamily/retail) on vacant land. Please see the table below for illustration of the
calculations discussed above.
Table Summarizing Land Capitalization Rate Calculations
Based on the Third Amendment Approval
Granted on March 3rd, 2015 by the Miami Dade County Commission
Units
Average Rent
Gross
Income
O ocupancy at
97 /0 and 95 /o
5.75% of GI
267
Res.
$1,350
$4,325,400
$4,195,638
$241,249
10000
SF
$30.00
$300,000
$285,000
$16,388
$257,637
Assumption
Acres
0.87
$150
$257,637
Cap Rate
Land Value -
$150/SF
SF
37768
$5,665,200
$5,665,200
4.55%
Land
Capitalization Survey
particularly significant
and Stan and
from NNNEX
All are from
The uses
of 5.22% and a
be skewed because
ground leases -
that no data was
development
convenience store,
important location
report lower rates
secondary
Johnson. Please
(Table 1) incorporates
the year 2016 and
range from retail
median of 5%.
of this reason.
as would be operationally
available from
per se. The
bank branch,
significantly
than say convenient
sources of net land
refer to the tables
listings for
are reflective of
to office uses. The
This appears more typical
The significance of
similar expected
these secondary sources
property types ranged
industrial and shopping
affects net lease rates
stores/gas
capitalization
presented in
the sales of
this particular
OARs range
of retail
this group is
for the
on the
from fast
center.
reported.
stations and
48IPage
We have obtained data from two
rates; NNNEX, net leases exchange
the following pages. The first table
operations subject to ground leases.
market's activity throughout the country.
from 1% to 11 % with an average
uses and we interpret the data to
that they are clearly delineated as
subject property. It is recognized
sale or listings of net leases for multifamily
food retail, drug stores, box retail,
Generally, use, brand and no less
Fast food and drug store retail
automotive stores.
NNNEX - Ground Lease - Overall Rates
Date/Year Tenant/Use City State Years Asking Price OAR
11/22/2016 Max & Ernras Restaurant Washington PA 12 $3,995,000 8.13%
11/22/2016 CHRISTUS ER New Braunfels TX 21 $4,350,000 4.65%
11/22/2016 CVS Southgate MI $2,711,000 6.75%
11/22/2016 CVS Southgate MI $2,711,000 6.75%
11/22/2016 CHRISTUS ER New Braunfels TX 21 $4,350,000 4.65%
11/22/2016 Max & Ernras Restaurant Washington PA 12 $3,995,000 8.13%
11/21/2016 SuperAmerica/Northern Tier Retail Bloomington MN 18 $3,895,000 5.86%
11/18/2016 Sonic Drive -In Gainesville GA 20 $1,600,000 6.00%
11/18/2016 Sonic Drive -In Gainesville GA 20 $1,600,000 6.00%
11/16/2016 Chick-fd-A Gainesville GA 14 $2,300,000 3.91%
11/16/2016 Chick-fil-A Gainesville GA 14 $2,300,000 3.91%
11/11/2016 Taco Bell Laredo TX 23 $2,929,280 5.00%
11/11/2016 Taco Bell Laredo TX 23 $2,929,280 5.00%
11/10/2016 Charleston Spine Center N. Charleston SC $580,000 11.00%
11/10/2016 Single -Tenant Panda Express Perris CA $2,400,000 3.75%
11/10/2016 Single -Tenant Fopeyes Ferris CA $2,625,000 4.00%
11/10/2016 Single -Tenant Wendy's Ferris CA $2,125,000 4.00%
11/8/2016 Land for Assisted Living Facility Grayson KY $950,000 1.00%
11/8/2016 Chase Bank Ground Lease Houston TX 15 $3,960,000 4.00%
11/7/2016 McDonald's Mableton GA 11 $2,375,000 4.00%
11/6/2016 Taco Bell Ground Lease North Conway NH $1,333,333 4.50%
11/3/2016 Sutter Health Surgery Center Oakland CA 19 $4,400,000 4.99%
11/1/2016 Starbucks Portland OR 10 $1,363,700 4.40%
11/1/2016 ModSpace Saint Charles MO $2,800,000 7.25%
10/31/2016 Fifth Third Bank Munster IN $2,673,000 5.35%
10/31/2016 Wendys Minster IN $1,915,789 4.75%
10/31/2016 BJs Wholesale Gas Station Quincy MA 19 $3,800,000 5.00%
10/31/2016 Fifth Third Bank Minster IN $2,673,000 5.35%
10/28/2016 Burger Kng Atlanta GA 6 $1,498,000 5.90%
10/28/2016 Burger Kng Atlanta GA 6 $1,498,000 5.90%
10/25/2016 Aldi Ground Lease Sun Prairie WI 19 $2,595,000 4.62%
10/20/2016 Bank of America Arlington TX 10 $4,705,000 4.50%
10/17/2016 Aldi Tullahoma TN 20 $1,889,000 4.50%
10/17/2016 Beshoff Infinit San Jose CA 12 $10,400,000 4.50%
10/12/2016 Jack In The Box Hayw ard CA 11 $3,300,000 4.27%
10/12/2016 Taco Bell Addison IL 25 $1,080,000 5.00%
10/10/2016 Rookies Ground Lease Rochester NY 9 $1,273,080 7.50%
10/6/2016 Thorntons Waukegan IL 20 $4,342,857 5.25%
10/3/2016 In-N-Out Burger San Antonio TX $4,478,000 3.35%
9/29/2016 Wawa Sun City FL Winraunra FL 21 $4,111,111 4.50%
9/27/2016 The Ground Round Greensburg PA 1 $1,140,000 7.75%
9/27/2016 Dollar Bank Greensburg PA 9 $2,565,217 5.75%
9/27/2016 Applebee's Greensburg PA 8 $2,204,167 6.00%
9/22/2016 Socorro Retail Socorro NM $400,000 1.55%
9/21/2016 CVS Ground Lease Wauchula FL 17 $2,400,000 4.75%
9/19/2016 Stop & Shop Gas Narragansett RI 9 $3,692,308 6.50%
9/19/2016 Burger King Lawrence MA 9 $1,616,667 6.00%
9/19/2016 South Florida Billboard Pompano Beach FL $1,056,000 5.00%
9/19/2016 Stop & Shop Gas Narragansett RI 9 $3,692,308 6.50%
8/29/2016 Panera Bread (St Louis MSA) Festus MO 15 $2,754,000 4.75%
8/23/2016 CBS/Outfront Media Benton FL 7 $2,500,000 6.67%
8/18/2016 Arbys Ground Lease OFallon MO 8 $1,115,000 6.00%
8/17/2016 100% Critical Use Fiber Optic Facility Woodbridge NJ 7 $818,683 6.00%
8/17/2016 CVS Watertown CT 22 $4,553,000 4.70%
8/16/2016 Wendys Acworth GA 5 $790,642 5.30%
7/22/2016 AutoZone Ground Lease Irvington NJ 16 $4,250,000 5.18%
7/21/2016 Arby's Springfield OH 10 $1,304,348 5.75%
7/18/2016 Auto Zone Ground Lease Brownsville TX 7 $970,000 4.60%
7/14/2016 Wawa Hanpton VA 10 $4,840,000 4.75%
7/14/2016 Wawa Hampton VA 10 $4,840,000 4.75%
7/12/2016 American Chartered Bank Mundelein IL 18 $3,275,000 5.25%
6/15/2016 Taco Bell Ground Lease Laredo TX 23 $2,929,820 5.00%
6/8/2016 Whole Foods Ground Lease Menphis TN 17 $23,712,000 3.85%
6/1/2016 Chipotle Ground Lease Hadley MA 12 $1,880,000 4.25%
2E116/2016 B Polio Loco I Grand Prairie TX 15 $2,334,000 4.50%
5/13/2016 Polio Tropical I Trophy Location I Dallas TX 20 $3,895,000 4.75%
3/26/2016 Kohls Ground Lease Cedar Rapids IA 18 $2,850,000 5.00%
3/21/2016 Texas Roadhouse Belton MO 15 $2,200,000 5.00%
3/8/2016 Chevron & Extra Mle Service Station Rancho Cordova CA 9 $2,500,000 7.28%
2/24/2016 Taco Bell Sussex WI 20 $1,079,454 4.40%
Low 1.00% Average 5.22%
High 11.00% Median 5.00%
49RPage
We have provided a second table, from Stan Johnson (Table 2), which is understood as rates
emanating from triple net leases, and some are ground leases. All of the properties however are
located within the State of Florida. The OARs range from 4.35% to 9.64% with an average of 6.94%
and a median of 6.52%.
50RPage
Table 2
Stan Johnson Company- NNN Lease terms - Florida - Current '
Tenant/Use
City
Use
Land
Bldg
NOI
NOI/Land
NOI/Bldg
Asking
OAR
Cal/OAR
BJ's Wholesael Club/7651 W. Waters Ave
12.45
Tampa/Hillsborough County
Tampa
Retail
542322
119884
$1,212,744
$2.24
$10.12
$17,966,578
6.75%
6.75%
AT&T/5312 SW 6 Place
19.88
Ocala
Ocala
Office
865973
102400
$1,024,000
$1.18
$10.00
$13,500,000
7.59%
7.59%
Alorica Business Solutions/5031 Commerce Park Circle
13.74
Pensacola
Pensacola
Office
598514
57000
$794,047
$1.33
$13.93
$8,823,000
9.00%
9.00%
Mattress Firm/PeiWeiNitamin Shoppe/11200 San Jose Blvd
1.14
0
Jacksonville
Jacksonville
Retail
49658
9257
$402,987
$8.12
$43.53
$6,716,450
6.00%
6.00%
CVS Pharmacy/ 1696 South Fiske Boulevard
1'39
Rockledge
Rockledge
Retail
60548
10878
$212,058
$3.50
$19.49
$3,500,000
6.06%
6.06%
Navy Federal Credit Union
7'2
Pensacola
Pensacola
Office
313632
80000
$312,754
$1.00
$3.91
$3,500,000
8.93%
8.94%
Burger King/3788 S Orlando Drive
1.51
0
Sanford
Sanford
Retail
65776
3861
$87,450
$1.33
$22.65
$2,010,350
4.35%
4.35%
Captain D/2404 US 90
0.52
Lake City
Lake City
Retail
22651
2804
$83,000
$3.66
$29.60
$1,747,368
4.75%
4.75%
Hamburger Mary/2901 Tyrone Boulevard North
0.74
0
St. Petersburg
St. Petersburg
Retail
32234
5740
$96,000
$2.98
$16.72
$1,524,000
6.30%
6.30%
Mattress Frim / 3708 US 1
Cocoa
Retail
0.6
10500
9.64%
Cocoa
26136
$84,000
$3.21
$8.00
$871,600
7.75%
Low
4.35%
Average
6.94%
High
9.64%
Median
6.52%
51 1
Peer Discussion
We have had discussion with other appraiser — colleagues - on this matter. Over the years interviews
have been had with a number of market participants with regard to land lease rates as a percentage of
land values.
The rate of return demanded by the market is a function of the relative risk of an investment, liquidity
and potential for appreciation.
Return rates from net leased properties generally ranged from 5% to near 9% depending on the credit
worthiness of the tenant. This is a confirmation of the data reflected on the tables above.
However, the research and surveys have allowed for the formulation that there is a distinct difference
between return rates available from existing net leases in the market (second generation) and returns
on investment demanded in new lease agreements (first generation). Buyers purchasing net leased
properties benefit from the packaged transaction; the building is in place, the lease agreement is
signed and, in most cases, the lessee has already established a pattern of consistent rent payments.
In a new lease negotiation, none of those elements is present.
The valuation scenario being considered here is the subject site, as vacant land and subject to the
potential of a long-term lease agreement. Therefore the valuation is not of a seasoned net leased
investment packaged for resale, but of an anticipated new land lease agreement.
As an example, in early 2011 an amendment to lease a big box retailer in north Miami -Dade County
was signed, setting a minimum rent at $675,000 per year, payable monthly at $56,250. An appraisal
of that site at that time indicated a value of $7.5 million. The rate of return to the land — the land
capitalization rate — was 9% ($675,000 = $7.5 million = 9.0%).
The research and surveys (interviews) referenced to above have been with commercial real estate
brokers, but have included as well a developer of net leased government facilities and a
representative of a national restaurant company. The market has consistently indicated lease rates
in the range of 9% to 10% for newly created land leases.
Page
52
MARKET RENT ESTIMATE
Summary and Conclusion
The purpose of this valuation report is to estimate a current market rent for the subject site.
When utilizing direct capitalization to estimate an indication of market rent, the formula is a
derivation of Value = Income/Rate. The formula for direct capitalization which applies in estimating
market rent for the subject property is in fact Income = Rate X Value. We have previously focused
the discussion on this particular subject matter, with the intent of concluding upon a land capitalization
rate. The various manners discussed and within which we attempted to resolve this appraisal
problem is summarized in the following table.
Market Rate Derivation
4.55%
NNNEX
5.00%
5.22%
Stan Johnson
6.52%
6.94%
Peer Discussion
9.00%
The market rent for the subject site is expressed as a percentage return on the fee simple value of the
land. Estimation of that rate appears reasonable at 6% for the subject property in view of its highest
and best use. This conclusion is based on a number of reasons, most of which tend to overlap. First
of all is the fact that the utilization of land for multifamily (mixed use) development under a leasehold
estate is not common, both locally and nationwide, thus reducing the pool — it appears more common
when the land is publicly owned. Secondly, and closely related to the first, is the fact that there is
limited data both market derived and through published data about land rental information and land
return rates (capitalization rates), when the use is multifamily. Third, the data that is available on net
lease capitalization rates appear to be more towards second generation lease transactions — return
rates available from existing net leases in the market. However in this instance we have reported
rates that are clearly defined as ground leases, and so more likely first generation. Fourth, those
ground lease arrangements where the returns on investment demanded involve new lease
agreements (first generation), the ultimate use of the land is not multifamily. Fifth, and finally, is the
location of the subject property. The subject property is located in the area of Allapattah which has
seen less demand for high rise mixed used multifamily development, than in other areas within the
city of Miami.
All of these factors tend to point towards an investment return expectation on the part of the land
owner that both ought to be tempered but sufficient to warrant development; for a landowner of
unimproved (vacant) land for multifamily (mixed use) at its highest and best use who wants to remain
in an ownership position when demand for said use is limited to minimal.
Apartment buildings are generally considered safe investments. In fact we have continually seen
overall capitalization rates for multifamily properties among the lowest when competing with other
Page
53
property types. That having been said, the capitalization rate of return on a land lease for multifamily
(mixed use) development has to be below to be competitive with overall rates for apartment buildings
(multifamily/retail — mixed use). So while apartment buildings illustrate strong demand among other
property types and are considered safe investments, when coupled with the limited demand for land
for rent for multifamily development, it stands to reason that the return on the land — to maintain
ownership - has to be moderate. This conclusion is considered appropriate notwithstanding the
strength of the product type in the immediate market where the subject is located.
We have applied, therefore, a 6% capitalization rate to the estimated fee value of the subject land to
determine market rent.
Value of Subject Land
$4,020,000
Return Rate
6.00%
Market Rent
$241,200
Based upon the preceding information, it is the appraiser's opinion that the market rental rate for the
subject should be $241,200 annually. This translated into monthly payments of $20,100.
The concluded market rent for the subject property on a dollar per square foot basis is $5.70 for the
total square footage of the subject site. These figures appear to be within the range ($1.00 to $8.12,
with an average of $2.86) when compared to the rental rates per square foot reported in Table 2
above based on the Stan Johnson data, but certainly towards the upper end of that range. When the
concluded market rent for the subject property is analyzed on the basis of FLR-SF (maximum building
size) it results in an indication of $1.14 per FLR-SF.
Details of Calculations:
$241,200 / 211,545 = $1.14
Test of Reasonableness — Feasibility of Leasehold Development and Market Rent
We have conducted a second test of reasonableness. This time it is undertaken to measure the
feasibility for the development of a multifamily/mixed use structure on land leased — long term — from
the City of Miami, and to measure if the project's feasibility would accommodate a rental rate at the
concluded level. The tables, presented on following page, illustrate that at the concluded rental level
- $241,200 per year, or 6% of the land value - such use of the land is marginally feasible, with a gross
profit margin of $2,627,718, or 7% of gross profit margin over value.
Page
54
Market Rent to Lease Fee Interest (Cty of Miami)
Land Value
$4, 020, 000
Mx -Bldg
Units
Land Cap Rate
6.00%
$19.00
$27,534
Lease Peayments
$241,200
$1.14
$1,652
Replacement Cost New to Lease
Maximum Bldg Size
211545
RCN
$165
Total RCN
$34, 904, 925
$165.00
$239,075
Direct Capitalization
146
Residential Units
$1,500
$2, 628, 000
$12.42
$18, 000
9,000
Retail
$25
$225,000
$1.06
Potential Gross Income
$2, 853, 000
Residential V & C
3.00%
$78,840
$0.37
$540
Retail V & C
5.00%
$11,250
$0.05
Potential Gross Income
$2, 762, 910
$13.06
$18,924
Operating Expenses
60%
Taxes
6.83%
$188,707
$0.89
$1,293
Lease Payment
8.73%
$241,200
$1.14
$1,652
Insurance
7.32%
$202,245
$0.96
$1,385
Licenses
0.08%
$2,210
$0.01
$15
Legal/Actng/Coll
2.37%
$65,481
$0.31
$448
Waste
1.55%
$42,825
$0.20
$293
Water
3.84%
$106,096
$0.50
$727
Electricity
0.63%
$17,406
$0.08
$119
Repairs & Maint.
1.43%
$39,510
$0.19
$271
Elevator Maint.
1.09%
$30,116
$0.14
$206
Management @
5.00%
$138,146
$0.65
$946
OER
Total Expenses
38.87%
$1,073,941
$5.08
$7,356
Net Operating Income
$1, 688, 969
$7.98
$11, 568
Overall Cap Rate
4.50%
Indicated Leasehold Value
$37, 532, 643
$177.42
$257,073
Statistical Analysis
GPM from Construction
$2, 627, 718
V - Cst = GPM
% GPM from Construction
7.00%
GPM + V
Profit Margin of Construction
7.53%
GPM + Cst
GPM from Const + NOI
$4, 316, 687
(GPM + NOI)
% GPM from Const +NOI
11.50%
(GPM + NOI) + V
Profit Margin of Construction + NOI
12.37%
(GPM + NOI) + Cst
Page
55
RECONCILIATION AND FINAL VALUE ESTIMATE
In this section of the report, the appraiser(s) bring together all of the data gathered during the
appraisal, culminating with their opinion of the most probable value. It is in this section, they
summarize their thoughts about the property to reconcile the value indicators into a final conclusion.
Your attention is directed to the following which summarizes the value estimates presented
throughout this report.
Market Value of Subject Land and Market Rent
MARKET CONCLUSIONS
Valuation Methodology
As Is
Value of Subject Land
$4,020,000
Land Capitalization Rate
6.00%
Market Rent
$241,200
Estimate Summary Market Value and Market Rent as of Effective Day
ESTIMATE SUMMARY
Effective Date
Market Value
Market Rent
December 19, 2016
$4,020,000
$241,200
Exposure Time - For the value of the land to materialize from the consummation of the sale of the
subject property (hypothetical) is nine to twelve months. For the market rent to materialize, the
exposure time is dependent upon execution of a long term lease for the express purpose of
developing a multifamily/mixed use building.
Page
56
ADDENDA
Subiect Photographs
Subject Photo Front View Looking Northeast
Subject Photo Front View Looking Southeast
Page 157
Subject Photographs
NW 15 Avenue Looking North Subject at Right
NW 15 Avenue Looking South Subject at Left
Page
58
Visit ourwebsite for business opportunities at: www miamigov.comfprocurement
City Of MiamiPURO
Purchase Order
Department of Purchasing
P.O. Box 330708 Miami, Florida 33233-0708
(305) 416-1922 Fax - (305) 415-1925
HASE711 t]t7DERIRELEASE NUMBER
Maw lids numIxr on all pactogen. Invoices, and shipping papers.
CNumber
0
Cate Change
Oil OF
t F
Page No. Order Date BiontractNumber
1 of 2 11/0812016
Buyer:
Anthony Hansen
Taxpayer ID
Supplier No.
Telephone No.
City of Miami -PF
- Asset Management
3rd Floor
650383554
2908
305-266-3930
444 SW 2nd Ave.,
Muni, FL 3313D
Armada Appraisal Company
P.O. Box 1247
South Miami, FL 33243
City of Miami -Finance
444 SW 2nd Ave,
Miami, FL 3313D
- General Accounting
fith Floor
Email - payablesemiamigov_com
Customer Account Number
Fax - (305) 416-1987
Effective Start Date
Effective End Date
Total Agi lent Limit
Line
Commodity
Code
Description/Delivery Date
Oty
Unit
Unit Price
Extended Price
1
94615-00
Appraisal of the property located at 1455 NW 17th Street, Miami, FL
2350
Dollar
1.00
2,350.00
Total Amount:
Pursuant to RFO 132102(15) as authorized by Resolution 10-0330.
2,350.00
FOB:
Destination
Requisition Number:
144631
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 Terns:
Net 30
Contact Person:
!Hernandez, Yvonne
reverse side hereof are incorporated herein by reference become
part of this order
Telephone Number.
(305)416-1429
11108C2016
Annie Per CPPO, DireetorofProcurement
Date Approved
C FN/PC 506 Rev_ 12105
Page59
Appraiser's Qualifications Document
Albert J. Armada, MAI, SRA
PO Box 1247
South Miami, Florida 33243
Phone (305) 266-3930 Fax (305) 266-3935
albert@armadaappraisal.com
EDUCATION FLORIDA INTERNATIONAL UNIVERSITY
Master of International Business, 1984
UNIVERSITY OF MIAMI
Certificate of Middle Management, 1979
UNIVERSITY OF FLORIDA
Bachelor of Arts, with Honors, 1974
MIAMI DADE JUNIOR COLLEGE
Associate of Arts, 1972
LASALLE HIGH SCHOOL
High School Diploma, 1970
EMPLOYMENT ARMADA APPRAISAL CO. (12-92/Present), Miami, Florida
Position: Principal/Appraiser/Consultant
Established and managed residential (simple to complex) and commercial
(owner occupancy to investment grade) appraisal business. Promoted
and marketed real estate appraisal business to banks, lenders, mortgage
brokers, developers, investors/owners, attorneys and accountants.
Conducted and performed inspections, researched and analyzed (sales,
rents, operating expenses, rates, yields, highest and best use and
feasibility studies), valuations and appraisal reports. Prepared/update
regional and market/neighborhood analysis. Trained, supervised and
reviewed appraisal work of subordinated staff appraisers, including
certified and trainees.
CITY OF MIAMI (5-77/5-93), Miami, Florida
Position: Property & Lease Manager
Property & Lease Management Division
G.S.A. Department, 11/92 — 5/1993
Department of Development, 1990
G.S.A. Department, 1986
Finance Department, 6/84 -1985
Position: Acting Assistant Director
Treasury Management Division
Finance Department, 6/83 — 6/84
Position: Lease Manager
Property & Lease Management Division
Finance Department, 1982
Page
60
LATERAL
EMPLOYMENT
Position: Projects Supervisor
Administration Division
Community Development Dept., 1980
Position: Administrative Assistant
Administration Division
Community Development Dept., 1979
Position: Personnel Officer
Employment & Training Division
Human Resources Dept., 1977
DECOR INTERNATIONAL (10-76/9-77)
Miami, Florida
Position: Sales Representative
MIAMI-DADE COUNTY (10-75/1-77)
Miami, Florida
Position: Program Director / Unit Supervisor
Department of Health & Human Resources
STATE OF FLORIDA (10-74/10-75)
Miami, Florida
Position: Youth Counselor
Department of Health & Human Resources
VALUE ADJUSTMENT BOARD (2008 to 2014/2016 to Present)
Circuit and County Courts
Miami -Dade County, Florida
Position: Special Magistrate
HEDG-PETH & GALLAHER, INC., (1997/2001)
Miami, Florida
Position: Staff Appraiser
BLAZEJACK & COMPANY (1-88/7/89)
Miami, Florida
Position: Staff Appraiser
THE REPUBLIC APPRAISAL CO. (9-86/12-87)
Miami, Florida
Position: Staff Appraiser
REAL ESTATE CCIM INSTITUTE
APPRAISAL Investment Analysis, C-104, 2010
FINANCIAL User Decision Analysis, C-103, 2008
INVESTMENT Market Analysis, C-102, 2006
TRAINING Financial Analysis, C-101, 2006
APPRAISAL INSTITUTE
Advanced Income Capitalization, 2001
Standard of Professional Practice C, 1999
Report Writing and Valuation Analysis, 1996
Advanced Sales Comparison & Cost Approaches, 1994
Page61
(Continued)
Standard of Professional Practice B, 1994
Standard of Professional Practice A, 1994
Case Studies in Real Estate Valuation, 1990
Basic Valuation Procedures, 1989
Capitalization Theory & Technique B, 1987
Capitalization Theory & Technique A, 1986
Real Estate Appraisal Principles, 1986
NATIONAL SOCIETY OF FEE APPRAISERS, 1980
Miami Dade Community College
Residential Appraisal, 1980
BERT ROGERS SCHOOL OF REAL ESTATE
Real Estate Brokers License Course, 1987
Real Estate License Course, 1983
HEAVENER, OGIER SCHOOL OF REAL ESTATE
Principles and Practice of Real Estate, 1982
NORTHWEST CENTER
Leasing Commercial Real Estate, 1986
COMMUNITY US DEPARTMENT OF HUD & FLORIDA COMMUNITY
DEVELOPMENT DEVELOPMENT EDUCATION CONSORTIUM
TRAINING Florida Community Development Administration
Curriculum, 1981
HUMAN
RESOURCES
TRAINING
INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION
Job Analysis, 1984
DUN & BRADSTREET
Effective Supervisors, 1980
Effective Techniques for Personnel, 1978
UNIVERSITY OF MIAMI / NIDA
Training for Trainers, 1976
STATE OF FLORIDA HRS/DYS
Public Relations, 1975
Interviewing Techniques, 1975
REAL ESTATE APPRAISAL INSTITUTE
APPRAISAL Business Practices & Ethics, 2016
SEMINARS Developing a Supportable Work -file, 2016
Tightening the Appraisal, 2016
USPAP-Florida Law/Update, 2016
Analyzing Operating Expenses, 2014
Fundamentals of Separating Real Property,
Personal Property and Intangible Business Assets, 2012
Valuation for Financial Reporting, 2009
Real Estate Finance Statistics & Valuation Modeling, 2009
Uniform Appraisal Standards for Federal Acquisitions, 2003
Page 1 62
PROFESSIONAL
ASSOCIATIONS
BUSINESS
VENTURES/
EXECUTIVE
POSITIONS
LICENSES
Case Studies in Commercial Highest & Best Use, 2001
Understanding & Testing DCF Valuation Models, 2001
Apartment Buildings, 1999
Small Hotel/Motel Valuation, 1998
Alternative Residential Reporting Forms, 1997
Dynamics of Office Building Valuation, 1995
Understanding Limited Appraisals — General, 1994
Introduction to Revised URAR (FNMA 1004), 1993
Appraisal Reporting of Complex Residential Properties, 1993
Condemnation, Legal Rules and Appraisal Practices, 1991
Rates, Ratios, and Reasonableness, 1990
APPRAISAL INSTITUTE
Member Appraisal Institute,
MAI, SRA Member No. 11838
AMERICAN SOCIETY OF APPRAISERS,
ASA, Urban, relinquished - 2012
CERTIFIED COMMERCIAL INVESTMENT MEMBER
CCIM, No. 18488, relinquished - 2016.
Miller Ludlam LLC - 2001-2008
Shopping Center - Partner
4-B Warehouses, LLC — 2006-2012
Multitenant Warehouse — Managing Partner
Collins Tower Condominium — 2006-2014
President
Appraisal Institute
South Florida Chapter President 2015
Vice President — 2014
Secretary 2012 and 2013
Treasurer 2011
Director — 2009 — 2010
Candidate for Miami Dade County Appraiser
August 26, 2014 - (3rd place)
State of Florida
Certified General
Real Estate Appraiser No. RZ — 0000397
State of Florida
Real Estate Broker No. BK — 01411206
State of Florida
General Real Estate
Appraiser Instructor No. GA — 1000073 — (Relinquished 2013)
Page
63
Page 1 64
APPRAISAL REPORT
WAGNER SQUARE SITE
LOCATED AT:
1455 N.W. 17TH STREET
MIAMI, FLORIDA
PREPARED FOR:
CITY OF MIAMI
444 S.W. 2ND AVENUE
MIAMI, FLORIDA
As OF:
NOVEMBER 20, 2016
PREPARED BY:
QUINLIVAN APPRAISAL, P.A.
7300 NORTH KENDALL DRIVE- SUITE 530
MIAMI, FLORIDA 33156
J. Mark Quinlivan, MAI
State Certified General Appraiser
RZ 0000112
November 28, 2016
QUINLIVAN APPRAISAL
A PROFESSIONAL ASSOCIATION
7300 NORTH KENDALL DRIVE, SUITE 530
MIAMI, FLORIDA 33156
Telephone (305) 663-6611
Fax (305) 670-4330
jmgmai@aol.com
Jacqueline Lorenzo
City of Miami
Real Estate & Asset Management Department
444 S. W. 2nd Avenue, Third Floor
Miami, Florida 33130
Dear Ms. Lorenzo:
Thomas F. Magenheimer, MAI
State Certified General Appraiser
RZ 0000553
In accordance with Purchase Order No. 1700712, I have prepared this Appraisal Report covering
the following described property:
A 42,309 square foot land parcel known as the
Wagner Square Site, located at 1455 N.W. 17th
Street, Miami, Florida.
The purpose of this Appraisal is to estimate the Market Value of the fee simple interest and
Market Rent of the described property as of November 20, 2016, being one of the dates of
personal inspection.
To the best of my knowledge, the opinions and conclusions were developed and this Appraisal
Report was prepared in accordance with the standards and reporting requirements of the most
current Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal
Standards Board of the Appraisal Foundation. This appraisal is not based on any hypothetical
conditions, extraordinary assumptions, limiting conditions or legal instructions.
The narrative Appraisal Report that follows sets forth the identification of the property, the
assumptions and limiting conditions, pertinent facts about the area and the subject property,
comparable data, the results of the investigations and analyses, and the reasoning leading to the
conclusions set forth.
Ms. Jacqueline Lorenzo
City of Miami
November 28, 2016
Page 2
Based on the inspection of the property and the investigation and analyses undertaken, I have
formed the opinion that, as of November 20, 2016, the subject property had a Market Value and
Market Rent of:
MARKET VALUE OF LAND SITE
$5,075,000
ANNUAL MARKET RENT OF LAND SITE
$380,625
Respectfully submitted,
Thomas F. Magenheimer, MAI
State -Certified General Appraiser
Certification Number: RZ0000553
TFM/jb
(16-096)
TABLES OF CONTENTS
PAGE
COVER PAGE
TRANSMITTAL LETTER
TABLE OF CONTENTS
CERTIFICATION OF VALUE 1
SUMMARY OF SALIENT FACTS AND CONCLUSIONS 3
INTRODUCTION 7
INTRODUCTION 8
IDENTIFICATION OF THE PROPERTY 8
LOCATION 8
PURPOSE AND DATE OF APPRAISAL 8
INTENDED USE AND USER OF APPRAISAL 8
LEGAL DESCRIPTION 8
PROPERTY RIGHTS APPRAISED 9
DEFINITION OF MARKET VALUE 9
DEFINITION OF MARKET RENT 9
ASSESSMENT AND TAXES - 2016 11
OWNER OF RECORD AND ADDRESS 11
THREE-YEAR HISTORY OF TITLE 11
ESTIMATED EXPOSURE TIME 12
ESTIMATED MARKETING PERIOD 12
SCOPE OF THE APPRAISAL 13
LOCATION ANALYSIS 15
COUNTY DATA 16
NEIGHBORHOOD DATA 25
SITE DATA 28
ZONING 31
HIGHEST AND BEST USE 34
THE APPRAISAL PROCESS 37
LAND VALUE ANALYSIS 39
ESTIMATE OF MARKET RENT 57
ADDENDA 66
ASSUMPTIONS AND LIMITING CONDITIONS
QUALIFICATIONS
CLIENT LIST
ENGAGEMENT LETTER
CERTIFICATION OF VALUE
The undersigned hereby certifies that, to the best of my knowledge and belief:
(A) The statements of fact contained in the report are true and correct.
(B) The reported analyses, opinions and conclusions are limited only by the
assumptions and limiting conditions set forth, and are my personal,
unbiased professional analyses, opinions and conclusions.
(c) I have no present or prospective interest in the property that is the subject
of this report, and I have no personal interest or bias with respect to the
parties involved.
(D) I have no bias with respect to the property that is the subject of this report
or to the parties involved with this assignment.
(F) My engagement in this assignment is not contingent upon developing or
reporting predetermined results.
(F) The appraiser's compensation for completing this assignment is not
contingent upon the reporting of a predetermined value or direction in
value that favors the cause of the client, the amount of the value estimate,
the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this appraisal. Furthermore,
the appraisal assignment is not based on a requested minimum valuation,
a specific valuation or the approval of a loan.
(G)
The appraiser's analyses, opinions and conclusions are developed, and
this report is prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice, and the requirements of the State of
Florida for state -certified appraisers.
(H) Use of this report is subject to the requirements of the State of Florida
relating to review by the Real Estate Appraisal Subcommittee of the
Florida Real Estate Commission.
Thomas F. Magenheimer has made a personal inspection of the property
that is the subject of this report.
No one provided significant professional assistance to the person signing
this report.
The reported analyses, opinions, and conclusions are developed, and this
report is prepared, in conformity with the requirements of the Code of
Professional Ethics and the Standards of Professional Appraisal Practice
of the Appraisal Institute.
QUINLIVANAPPRAISAL
1
(L) The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
(M) The undersigned performed an appraisal review of a market value
appraisal of the property prepared by Waronker & Rosen, Inc. for the U.
S. Department of Veterans Affairs. dated March 23, 2016.
As of the date of this report, J. Mark Quinlivan and Thomas F. Magenheimer have completed the
requirements under the continuing education program for The Appraisal Institute.
Based on the inspection of the property and the investigation and analyses undertaken, subject to
the assumptions and limiting conditions set forth in the Addendum of this report, I have formed
the opinion, as of date of valuation, the subject property had a Market Value and Market Rent of:
MARKET VALUE OF LAND SITE
$5,075,000
ANNUAL MARKET RENT OF LAND SITE
$380,625
THOMAS F. MAGENHEIMER, MAI
STATE -CERTIFIED REAL ESTATE APPRAISER
CERTIFICATION NUMBER: RZ0000553
QUINLIVAN APPRAISAL
2
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Purpose of Appraisal Market Value & Market Rent
Property Rights Appraised Fee Simple
Location 1455 N.W. 17th Street,
Miami, Florida
Legal Description
A portion of Tract "A", WAGNER SQUARE,
according to the Plat thereof as recorded in
Official Records Book 162, Page 66 of the
Public Records of Miami -Dade County,
Florida.
Land Size 42,309 Square Feet
Improvements None
Zoning T6-80, Urban Core Zone, Open
Highest and Best Use: Office, civic or multiple family residential
use
Land Value Indication $ 5,075,000
Final Estimate of Market Value $ 5,075,000
Estimated Annual Market Rent $ 380,625
Date of Inspection November 20, 2016
Date of Value Estimate November 20, 2016
Date of Report November 28, 2016
QUINLIVANAPPRAISAL
3
LOOKING NORTHEASTERLY AT SUBJECT FROM N. W. 15TH AVENUE
LOOKING SOUTHEASTERLY AT SUBJECT FROM N. W. 15TH AVENUE
QUINLIVANAPPRAISAL
4
LOOKING WESTERLY ACROSS THE INTERIOR OF SUBJECT SITE
LOOKING EASTERLY ACROSS THE INTERIOR OF SUBJECT SITE
QUINLIVAN APPRAISAL
5
LOOKING NORTHERLY ON N. W. 15TH AVENUE - SUBJECT TO RIGHT
LOOKING SOUTHERLY ON N. W. 15TH AVENUE - SUBJECT TO LEFT
QUINLIVAN APPRAISAL
6
INTRODUCTION
QUINLIVANAPPRAISAL
7
INTRODUCTION
IDENTIFICATION OF THE PROPERTY
A 42,309 square foot site known as the Wagner Square Site. The site is presently vacant.
LOCATION
1455 N.W. 17th Street,
Miami, Florida
PURPOSE AND DATE OF APPRAISAL
The purpose of this Appraisal is to estimate the Market Value and Market Rent of the property as
of November 20, 2016, being one of the dates of personal inspection.
INTENDED USE AND USER OF APPRAISAL
The intended use of this appraisal is to estimate the Market Value for asset evaluation for a
possible sale or rental of the property. The intended user is the City of Miami, Florida.
LEGAL DESCRIPTION
A portion of land located in the NW 3/4 of Section 35, Township 53 South, range 41 East, City of
Miami, Miami -Dade County, Florida, more particularly described as follows:
Begin at the Southwest corner of Tract "A", WAGNER SQUARE, according to the plat thereof,
as recorded in Plat Book 162, Page 66, of the Public Records of Miami Dade County, Florida;
thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23 feet;
thence N00°10'33"W a distance of 65.79 feet to a point; thence N89°49'27"E a distance of
201.77 feet to a point; thence N00°10'33"W a distance of 96.77 feet to a point on the North line
of said Tract "A"; thence N89°57'46"W along and on the North line of said Tract "A" a distance
of 259.25 feet to the NW corner of said tract "A"; thence S00°15'48"E along the West line of
said Tract "A" and the East Right -of -Way of NW 15th Avenue, a distance of 163.33 feet to the
Point of Beginning.
AND
A portion of land located in the NW 3/4 of Section 35, Township 53 South, Range 41 East, City of
Miami, Miami -Dade County, Florida, more particularly described as follows:
QUINLIVANAPPRAISAL
8
Commence at the southwest corner of Tract "A", WAGNER SQUARE, according to the plat
thereof, as recorded in Plat Book 162, Page 66, of the Public Records of Miami - Dade County,
Florida; thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23
feet to the Point of Beginning; thence NOO°10'33"W a distance of 65.79 fee to a point; thence
N89°49'27"E a distance of 201.77 feet to a point; thence SOO°10'33"E a distance of 66.46 feet;
thence N89°59'04"W along and on the South line of said Tract "A" and its extension thereof a
distance of 201.77 feet to the Point of Beginning.
PROPERTY RIGHTS APPRAISED
The property is appraised in fee simple: a fee without limitations to any particular class of heirs
or restrictions, but subject to the limitations of eminent domain, escheat, police power and
taxation, as well as utility easements of record.
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 interest;
(3) a reasonable time is allowed for exposure to 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 a normal consideration for the property sold
unaffected by special or creative financing or sales concessions
granted by anyone associated with the sale.
Source: Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75, No.
237, Page 77472
DEFINITION OF MARKET RENT
Market Rent is the most probable rent that a property should bring in a competitive and open
market reflecting all conditions and restrictions of the specified lease agreement including term,
rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations; the
lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a
QUINLIVAN APPRAISAL
9
lease contract as of a specified date and the passing of the leasehold form lessor to lessee under
conditions whereby:
1. Lessee and lessor are typically motivated
2. Both parties are well informed or well advised, and acting in what they
consider their best interests.
3. A reasonable time is allowed for exposure on the open market.
4. The rental payment is made in terms of cash in U.S. Dollars, and is expressed
as an amount per time period consistent with the payment schedule of the
lease contract.
5. The rental amount represents the normal consideration for the property leased
unaffected by special fees or concessions granted by anyone associated with
the transaction.
Source: The Dictionary of Real Estate Appraisal, Fourth Edition
QUINLIVANAPPRAISAL
10
ASSESSMENT AND TAXES — 2016
The subject property is assessed under the jurisdiction of the City of Miami, Florida.
The assessment for the property is established each year as of January 1st by the Miami -Dade
County Property Appraiser's Office at 100% of "Just Value." Just Value has been equated to
Market Value less closing costs. While the State of Florida requires real estate to be assessed at
100% of Just Value, in reality the ratio of the assessed value to sales price is generally below
100%.
Folio Numbers: 01-3135-087-0010
01-3135-087-0012
County Market Value: Land $ 1,692,360
Improvements $ 0
Total $ 1,692,360
Assessed Value: $844,696
Millage Rate: $21.8256 per $1,000
Tax Amount: $0.00 tax exempt
OWNER OF RECORD AND ADDRESS
City of Miami
444 S. W. 2nd Avenue
Miami, FL 33125
THREE-YEAR HISTORY OF TITLE
According to a search of the Public Records of Miami -Dade County there have been no sales
transactions of the subject property during the past three years.
QUINLIVANAPPRAISAL
11
ESTIMATED EXPOSURE TIME
Exposure time is defined as the estimated length of time the property interest being appraised
would have been offered on the market prior to the hypothetical consummation of a sale at
market value on the effective date of the appraisal; a retrospective estimate based upon an
analysis of past events assuming a competitive and open market.
The overall concept of reasonable exposure encompasses not only adequate, sufficient and
reasonable time but also adequate, sufficient and reasonable effort.
In estimating a reasonable exposure time for the subject property, the appraiser has taken the
following steps:
Discussion with buyers, sellers, brokers and/or a review of the multiple listings of
vacant sites in the area related to historic marketing periods.
Based on the above sources, exposure time is estimated to have been six months for the subject
property.
ESTIMATED MARKETING PERIOD
The estimated value of the subject is predicated upon a normal marketing period. A normal
marketing period is generally defined as the most probable amount of time necessary to expose
and actively market a property on the open market to achieve a sale. Implicit in this definition
are the following assumptions:
(A) The property will be actively exposed and aggressively marketed to
potential purchasers through marketing channels commonly used
by sellers and buyers of similar type properties.
(B) The property will be offered at a price reflecting the most probable
markup over market value used by sellers of similar type properties.
(C) A sale will be consummated under the terms and conditions of the
definition of Market Value required by the regulation.
In order to estimate the marketability of this property, the sales activity in this market area was
reviewed over the past three years, multiple listings were reviewed and real estate brokers who
operate in this area were interviewed.
Based on the above sources, the subject property could be sold within a six-month time period.
QUINLIVANAPPRAISAL
12
SCOPE OF THE APPRAISAL
QUINLIVANAPPRAISAL
13
SCOPE OF THE APPRAISAL
The scope of the assignment relates to the extent and manner in which research is conducted,
data is gathered and analysis is applied, all based upon the following problem -identifying factors
stated elsewhere in this report.
This appraisal of the subject has been presented in the form of an Appraisal Report, which is
intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the
USPAP.
The value of a site can be estimated by various methods which include Direct Sales Comparison,
Allocation, Extraction, Development Approach, Land Residual or Ground Rent Capitalization.
However, the Direct Sales Comparison Approach is the most preferred and utilized technique
when sales of comparable sites are available. The other methodologies are indirect techniques
which are generally used when an area is mostly developed and sales of comparable sites are
scarce.
The Direct Sales Comparison Method was utilized in valuing the subject property due to the
availability of recent sales. In the Direct Sales Comparison Method, sales of similar recently
sold properties with a similar highest and best use as the subject property are analyzed, compared
and adjusted by time, property characteristics and location to indicate the Market Value of the
subject property. The reliability of this approach is dependent upon the availability of
comparable sales data, the verification of the sales data, the degree of comparability and the
absence of non -typical conditions affecting the sale.
Data related to the subject property was derived from various sources including but not limited to
the Miami -Dade County Property Appraiser's Office, Miami -Dade County plats, FEMA flood
zone maps, Land Development Regulations of the Miami -Dade County, and tax roll information
provided by the Miami -Dade County Property Appraiser's Office.
Comparable sale sources include the Miami -Dade County Property Appraiser's Office, Board of
Realtors' Multiple Listing Services, the Public Records of Miami -Dade County as maintained by
the Miami -Dade County Clerk of the Courts, IMAPP sales service, and LoopNet. Sales prices
are typically confirmed with a party to the transaction, i.e., buyer, seller, real estate agent or
attorney to the transaction. A legal description and survey was provided by the client. The size
and dimensions of the site are estimated based on information available on the survey.
A search for land sales and listings in the subject market area and the suburban areas of Miami -
Dade County was conducted. The initial sales period researched were from January of 2014
through the date of valuation. The sales all have similar zoning classifications and highest and
best uses as the subject property. Several other sales were considered, but were not included
because there was too wide a difference in physical factors, location and time.
QUINLIVANAPPRAISAL
14
LOCATION ANALYSIS
QUINLIVAN APPRAISAL
15
COUNTY DATA
Miami -Dade County - Location and Size
Miami -Dade County, which comprises the metropolitan area of Miami, is situated on the
southeast tip of the state of Florida. It is bordered on the east by the Atlantic Ocean, on the west
by Monroe and Collier Counties, on the north by Broward County, and on the south by Monroe
County (the Florida Keys).
Miami -Dade County, the largest county in area and population in the state of Florida, covers an
area of 2,054 square miles with an altitude ranging from sea level to 25 feet. Water covers 354
square miles of the County.
Although the County is relatively large, approximately half of the total area is comprised of the
Everglades, which is a natural area that will not be developed. Therefore, only the eastern
section of Miami -Dade County encompasses the area which is currently developed or available
for future development.
Miami -Dade County's location, its southern latitude and proximity to the Gulf Stream provide
for mild winters and pleasant summers.
Population
The state of Florida has increased rapidly in population from 9,740,000 in 1980 to 12,937,926 in
1990 and 15,982,378 in 2000. The 2010 population of Florida was 18,801,310, an increase of
17.6% over the 2000 population.
Miami -Dade County's population increased from 1,626,000 in 1980 to 1,937,094 in 1990,
reflecting an average annual compounded growth rate of 1.77%, compared with 2.88% for the
state of Florida. By 2000, Miami -Dade County's population increased to approximately
2,253,362. The population grew to 2,496,435 by the Year 2010, an increase of 10.8% over the
2000 population. By the Year 2014 the population increased to 2,604,265, an increase of 4.3%
over the 2010 population.
Miami -Dade County's population growth during the last four decades has been dramatic
especially in relation to national trends. From 1950 to 1990 the United States population
increased by 60% while the population of Miami -Dade County has almost quadrupled from
495,084 to 1,937,000. During this period, the state of Florida was elevated from the 20th most
populous state to the 4th in 1990 and continues to be the fourth most populous state.
During the 1960s, the major increase in Miami -Dade County's population was due to the large
immigration of Cubans. Today, Cuban and other Spanish speaking people comprise
approximately 62% of Miami -Dade County's population. The increase in Hispanic population
has had favorable effects on the local economy and has helped to create a multi -national cultural
environment in the area.
QUINLIVAN APPRAISAL
16
The overall population of Miami -Dade County is well dispersed throughout the entire area, yet
has several key areas of concentration. During the 1960s, several sub -areas accounted for
approximately 70% of the growth. These areas include Hialeah, northern Miami -Dade County,
the Beach area, the Miami River area, the area southwest of Miami International Airport, as well
as the Kendall and Cutler Ridge areas. In the first half of the 1970s, population growth
continued in an uneven fashion especially in the urban fringes.
Since 1970, approximately three -fourths of the total population growth for the County has
occurred in the unincorporated areas. The older centrally located cities such as Miami, Miami
Beach and Coral Gables have grown at modest rates from 1970 to 1990. Unincorporated Miami -
Dade County has evidenced the most rapid growth which continues to occur in areas in northeast
Miami -Dade County (Aventura), as well as the currently expanding southwest area, especially in
sections of Flagler Street, S.W. 8th Street, North Kendall Drive and Homestead.
Population trends indicate that most of the population growth in Miami -Dade County between
2010 and 2015 will occur in outlying areas such as North Miami Beach, the Kendall area west of
the Florida Turnpike, the S.W. 8th Street area west of the Florida Turnpike, the Hialeah -Miami
Lakes area, as well as those areas both east and west of U.S. Highway 1 between Cutler Ridge
and Florida City.
Employment Trends
The dominant characteristic of Miami -Dade County is that it is primarily trade and service based.
Personal, business and repair services have had a substantial increase in importance in the
economic base over the last decade. The major sectors of the economy include services,
wholesale and retail trade, transportation, communications, public utilities, government and
manufacturing. The most dominant industries which form the County's economic base are
construction and tourism.
Tourism is Miami -Dade County's biggest industry with an estimated 13.9 million visitors in
2012 contributing to more than 50 percent of the area's economy. Aviation and related industries
are responsible for another large segment of the economy.
The largest employer in Miami -Dade County is the Miami -Dade County School Board, followed
by Miami -Dade County, Federal Government, State of Florida, Jackson Health System,
American Airlines, University of Miami, Baptist Health Systems of South Florida, AT&T, and
Florida Power and Light. Assuming additional importance is the growing prominence of Miami -
Dade County as a center for international trade, finance and tourism. The establishment of
Miami as the "Gateway of the Americas" should provide the area with a much needed degree of
economic diversification. This should enable Miami -Dade County to weather slowdowns in the
national economy by an increase of trade through the Port of Miami, growth of international
arrivals at the airport, the Free Trade Zone, and the substantial foreign investment in the local
economy, particularly in real estate.
In October of 2015, Florida's unemployment rate was 5.1 percent, down from 13.7 percent in
November of 2014 and a high of 10.7 percent in March of 2011. The unemployment rate for
Miami -Dade County in October of 2015 was 6.2 percent, down from 8.1 percent a year earlier.
QUINLIVAN APPRAISAL
17
TABLE 1
ESTIMATES OF MIAMI-DADE COUNTY TOURIST TRENDS
INTERNATIONAL
DOMESTIC
TOTAL
2008
6,169,043
6,662,546
12,831,589
2009
5,684,400
6,251,564
11,935,964
2010
6,060,100
6,544,000
12,604,100
2011
6,461,900
6,908,600
13,370,600
2012
6,801,200
7,102,032
13,903,232
2013
7,131,700
7,087,200
14,218,900
2014
7,260,000
7,303,200
14,563,200
Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures
Figures for 2014 indicate 14,563,200 overnight visitors came to Miami -Dade County, a 2.4%
increase from 2013. In 2013, the total overnight visitors increased to 14,218,900, an increase of
2.2% over 2012.
TABLE 2
ESTIMATES OF DOMESTIC VISITORS BY REGION
DOMESTIC MARKET
2010
2011
2012
2013
2014
NEW YORK
25.5%
25.3%
25.5%
25.9%
26.0%
CHICAGO
5.9%
5.9%
5.8%
5.9%
5.9%
5.8%
5.7%
5.7%
5.6%
6.0%
PHILADELPHIA
BOSTON
4.3%
4.3%
4.3%
4.3%
4.3%
ATLANTA
3.7%
3.8%
3.9%
3.9%
3.9%
WASHINGTON, DC
2.8%
2.8%
2.8%
2.8%
2.8%
DALLAS
2.6%
2.6%
2.7%
2.7%
2.7%
DETROIT
2.1%
2.1%
2.1%
2.0%
1.9%
LOS ANGELES
1.9%
2.0%
1.9%
2.1%
2.1%
HOUSTON
1.7%
1.8%
1.8%
1.8%
1.8%
Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures
QUINLIVANAPPRAISAL
18
Table 2 indicates that the bulk of domestic visitors to Miami -Dade County originate from the
New York (26%), Chicago (5.9%) and Philadelphia (6.0%) market areas. Of the top ten
domestic market visitors, the majority (48.2%) are from northeastern market areas.
TABLE 3
ESTIMATES OF INTERNATIONAL VISITORS BY REGION
REGION
2010
2011
2012
2013
2014
EUROPEAN COUNTRIES
21.6%
20.2%
20.0%
19.2%
19.7%
CARIBBEAN COUNTRIES
11.4%
10.8%
10.5%
10.0%
10.4%
CENTRAL AMERICAN
COUNTRIES
8.7%
8.3%
8.0%
7.8%
8.2%
SOUTH AMERICAN
COUNTRIES
46.8%
49.2%
50.3%
52.1%
50.4%
CANADA
9.7%
9.7%
9.4%
9.2%
9.5%
1.8%
1.8%
1.8%
1.7%
1.8%
OTHER COUNTRIES
TOTAL
100%
100%
100%
100%
100%
Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures
Table 3 shows that the bulk of international visitors to Miami -Dade County originate from
Central and South American Countries (58.6%), followed by European Countries (19.7%) and
Caribbean Countries (10.4%). England and Germany accounted for the largest proportion of
European visitors.
In 2014 there were a total of 4.939 million passengers passing through the Port of Miami. During
2014, the number of Port of Miami passengers increased 21.1% from 2013. The passenger count
for 2015 is expected to increase to nearly 5.0 million with the introduction of three new ships to
the port. Through June of 2015 approximately 11,051,259 passengers arrived through Miami
International Airport. The passengers arriving at the airport increased 6.2% from the same
period the previous year. The arrivals at the airport are fairly evenly distributed between
international and domestic passengers. Through June 2015, domestic arrivals totaled 5,732,473
and international arrivals totaled 5,318,786.
There are approximately 50,901 motel and hotel rooms in 392 lodging facilities in Greater
Miami and the Beaches. The area had an occupancy rate of 80.8 percent in 2015, down 0.2%
from 2014. The airport area had the highest occupancy rate as of June 2015 at around 90.2%.
The average room rate for hotel rooms in Miami -Dade County was $217.62 in 2015, up from
$202.20 in 2014. Therefore, the average hotel room rates in 2015 indicate an increase of 7.6%
over the 2014 rate.
QUINLIVAN APPRAISAL
19
The first in a series of new luxury properties opened in February 2004 when the 380-room Ritz
Carlton opened in Miami Beach. In May of 2005, the 210-room Le Meridian opened in Sunny
Isles Beach. Three other new hotels with a total of 271 rooms opened in Miami Beach during
2005. In 2014, new hotel openings included the Courtyard Cadillac Miami Beach Hotel (93-
rooms) in Miami Beach, EB Hotel Miami (133-rooms) in Miami Springs, and the Grand Beach
Hotel (268-rooms) in Surfside. New hotels expected to open in 2015 include Aloft South Beach
(235-rooms) in Miami Beach, East Hotel (263-rooms) in the Brickell Financial District, The
Feena Hotel (169-rooms) in Miami Beach, the Nautilus (251-rooms) in Miami Beach, and
Langford (126-rooms) in downtown Miami.
Miami -Dade Financial Resources
Over the course of the last decade, Greater Miami has evolved into a major international
financial center. Domestic and international businesses find convenient access to a full array of
services provided by locally -based state and national commercial banks, savings and loan
associations, foreign banks, non -depository credit institutions, securities and commodities
brokers and insurance companies.
Greater Miami has the largest concentration of domestic and international banks south of New
York City. With more than 90 percent of the state's foreign banks operating offices in Miami,
this market dominates international banking in Florida.
Overall, about 150 domestic banks, foreign banks and Edge Act banks operate in Greater Miami.
The greatest concentration is located along Brickell Avenue in downtown Miami.
Transportation
Miami -Dade County has an extensive expressway system with access to all points in the County.
However, due to the rapidly increasing population, some of the expressways, especially
Interstate 95, are becoming overburdened. In 1985 Miami -Dade County completed a 20.5 mile
elevated rapid transit system. This system originally extended southward from downtown Miami
to Dadeland, paralleling U.S. Highway 1 and northwesterly from downtown Miami to Hialeah.
In 1999, the system was extended about a mile from Hialeah to the Palmetto Expressway at NW
74th Street. An expansion to the Miami International Airport opened in 2013. In conjunction
with this system, there is a Downtown People Mover Automated Transit system which encircles
the central business district of Miami and extends south to the Brickell area and north to the
Omni area.
Miami -Dade County is served by the CSX and Florida East Coast Railroads for freight and
Amtrak Rail, Greyhound and Trailways Interstate bus lines for passenger service.
Miami International Airport, one of the nation's largest and busiest, had 307,503 aircraft arrivals
and departures through September 2015, an increase of 2.14% over the previous year. The
airport is currently undergoing a $5.4 billion expansion. A South Terminal has recently been
completed and a North Terminal completed in 2013 and a fourth runway has been constructed.
QUINLIVAN APPRAISAL
20
Miami has become a port of embarkation for airlines and ships bound for Central and South
American Countries. The Port of Miami, besides being the largest passenger port in the nation, is
also important as a cargo center with a 2014 annual tonnage of approximately 7.7 million, down
3.5% from 7.981 million in 2013. The port's traditional customer base has been Europe, China,
Latin America and the Caribbean, accounting for 65% of the port's total volume.
Miami's comprehensive transportation system and its strategic location have enabled it to
become an important international transportation center, providing commercial access to Latin
America and the Caribbean.
Government
Miami -Dade County is comprised of unincorporated areas, as well as 36 municipalities, the
largest of which is the city of Miami.
Miami -Dade County is governed under a modified two-tier metropolitan government. The
purpose of this type government was to establish one governing body for the county, and to
establish one supply of services such as fire, police, etc. for the county. The upper tier is the
County, which provides broad "regional" or county functions, such as metropolitan planning,
welfare, health and transit services. The thirty-six municipalities represent the lower tier of
government, providing a varying array of services within their jurisdictional boundaries. The
County also maintains lower tier functions, such as the provision of municipal -type services,
including police and fire, to the unincorporated areas and certain municipalities on a negotiated
basis.
The County operates under the Commission -Manager form of government. Legislative and
policy -making authority is vested in the elected thirteen -member Board of County
Commissioners; the Commission appointed County Manager is the chief administrator. Miami -
Dade County has operated under the metropolitan form of government since 1957, when the
Home Rule Charter was passed by the local electorate. Prior to Home Rule, the County had to
rely on the State Legislature for the enactment of its laws.
County government had not been able to respond to the tremendous demand for municipal
services in this rapidly urbanizing area, which is larger than the State of Rhode Island or
Delaware. The need to combine services duplicated by the County and numerous cities was also
clearly evident. The Charter permitted the limited County government to reorganize into a
general purpose "municipal -type" government capable of performing the full range of public
functions into an area wide operation.
Real Estate
The Miami -Dade County Office Market contains approximately 47.337 million square feet of
office space. Approximately 31.0% of this space is located in the Miami central business district
and adjacent Brickell Avenue, 25% in the Airport West area, and 15% in Coral Gables. The
vacancy rate of office buildings in Miami -Dade County declined during the second quarter of
2015 to about 12.8%, down from 14% in 2013. During 2015, 804,359 square feet of office space
is under construction in Miami -Dade County. During the second quarter of 2015, 328,500 square
QUINLIVANAPPRAISAL
21
feet of office space was absorbed. Through the second quarter of 2015 a total of 804,360 square
feet was absorbed in the market.
Office rental rates in new buildings typically range from $23.00 to $43.00 per square foot. The
low end of the range is for office space in the suburban markets. The upper end of the range is
for first class office space in Downtown Miami, Brickell Avenue, Coconut Grove and Coral
Gables.
The Greater Miami Industrial Market consists of approximately 230.11 million square feet of
industrial space in 8,808 buildings.
The approximate percentage location of this space is as follows:
MARKET AREA
% OF TOTAL MARKET SPACE
AIRPORT WEST
29.6%
HIALEAH
25.6%
MEDLEY
16.7%
MIAMI LAKES
3.3%
NORTHEAST DADE
4.8%
NORTHCENTRAL DADE
14.9%
SOUTH DADE
5.1%
TOTAL
100%
The county's vacancy rate for the overall Miami -Dade County industrial market as of the end of
2015 was 4.7%. The county's overall vacancy rate has fallen from a high of 10% in 2008.
Airport West, the largest industrial area, had a vacancy rate of 5.3% as at the end of 2015.
Industrial rental rates generally average $8.77 per square foot in the fourth quarter of 2014, up
from an average of $8.39 per square foot in 2014. New industrial space under constructed in the
third quarter of 2015 totaled 599,946 square feet, down from the 761,879 square feet under
construction in the fourth quarter of 2014.
Miami-Dade's single-family home sales increased 1.0% in August of 2015 in comparison with
August of 2014 according to the Miami Association of Realtors. A total of 1,145 homes were
reported sold in August of 2015. Through August of 2015, 9,599 homes sold in the county,
which is on pace to exceed the 13,521 homes sold in 2014. In August of 2015, the median sales
price for single-family units was $260,500, up 6.3% from the previous year.
Existing condo sales showed an increase of 6.5% in August of 2015 from August of 2014
according to the Miami Association of Realtors. A total of 1,334 condo units were reported sold
in August of 2015. The median sales price for condos increased to $204,000 or an increase of
11% during the same period.
QUINLIVAN APPRAISAL
22
Marcus & Millichap Apartment Research Market Report shows a vacancy rate of 2.8% for rental
apartment buildings in the Fourth Quarter of 2015, 30 basis points lower than in 2013. The
vacancy rate had been declining steadily since 2006 due to the reduction of inventory caused by
the large amount of condominium conversions. Since 2007 many ownership housing units,
including both condominiums and single family houses, were placed into the rental market by
developers and individual owners. Apartment rents in Miami -Dade County indicated an increase
of 3.6% during 2015. New apartment construction during 2014 was nearly 2,500 units. New
apartment construction during 2015 is expected to reach nearly 8,900 units.
The Miami -Dade County retail market contains approximately 125.98 million square feet in
10,003 buildings. The major retail markets in Miami -Dade County include Hialeah, Coral
Gables/South Miami -Dade, Aventura and Kendall. Rental rates typically range from $15.25 to
$48.76 per square foot with rates in the $80 to $120 per square foot on South Beach. The overall
Miami -Dade County vacancy rate for the third quarter of 2015 was approximately 3.4%, which
is marginally up from 3.3% in the third quarter of 2014. As of the third quarter of 2015,
1,749,313 square feet of retail space was under construction.
Conclusions
In the future, one of the principal growth areas for Miami -Dade County is expected to be the
international sector. Miami -Dade County, because of its geographic location and excellent
transportation facilities, is well -suited to attract both business individuals and tourists from Latin
America. It is already one of the principal shopping markets for Central and South Americans
visiting the United States and one of the principal export points for goods and services destined
for Latin America.
The existence of major financial institutions, retail outlets, corporations and other business
entities, coupled with its geographic location, transportation systems and planned international
trade centers give Miami -Dade County an excellent opportunity for continued growth as an
international center.
During the next 12 months all segments of the commercial real estate market should continue to
experience decreasing vacancy rates and increasing rental rates. With decreasing inventories for
both single family residences ad condominium apartment units, sales activity is expected to rise
during the next 12 months.
QUINLIVAN APPRAISAL
23
LOCATION MAP
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SUBJECT PROPERTY
1455 N.W. 17 Street
Miami
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QUINLIVANAPPRAISAL
24
NEIGHBORHOOD DATA
The subject property is located in an area known as the Civic Center/Hospital District in the City
of Miami, approximately two miles northwest of the Central Business District of Miami.
The subject property may be further identified as being located on the east side of N. W. 15th
Avenue, between N. W. 17th Street and N. W. 20th Street.
The subject property is located in eastern periphery of the Civic Center/Hospital District. The
boundaries of the neighborhood would be N.W. 20th Street to the north, the Don Shula
Expressway (State Road 836) and the Miami River to the south, Interstate 95 to the east and
N.W. 17th Avenue to the west.
Interstate 95 is a major north/south artery in Miami -Dade County. Interstate 95 is a limited
access freeway which extends northerly throughout the state from U.S. Highway 1 south of the
central business district of Miami.
The Don Shula Expressway (Highway 836) is a major east/west artery in Miami -Dade County.
The Don Shula Expressway, a limited access freeway, extends westerly from Interstate 95 in the
subject area to the Florida Turnpike Extension in Western Miami -Dade County. Access to the
Don Shula Expressway from the subject area is provided by an interchange at N.W. 17th Avenue.
There is also a mass transit system known as the Metrorail which runs through the middle of the
Civic Center. This system extends from the Kendall area in the southwest region of the county
to the Downtown area in the east, and then northwesterly into Hialeah. There are two stations
within this neighborhood, the closest to the subject site being the Civic Center station located at
N. W. 12th Avenue at N. W. 14th Street.
Three major hospitals which generated the development of other medical and institutional
growth are Jackson Memorial Hospital, University of Miami Hospital, and the Veterans
Administration Hospital. All three hospitals are located within a five block radius of the subject
property.
Other medical and institutional buildings which evolved from these three major hospitals include
but are not limited to the following: The Miami -Dade Community College Medical Center
Campus, Lindsey -Hopkins Technical School, Jackson Manor Nursing Home, Highland Park
General Hospital, Bascom Palmer Eye Institute, John Elliott Blood Bank, Louis Calder
Memorial Library, National Parkinson Foundation, McLamore Children's Center, University of
Miami M.R.I. Center, University of Miami Cancer Foundation Center, University of Miami
Children's Cardiac Hospital, University of Miami Medical Research building, Mental
Retardation Center, Ronald McDonald House of South Florida, United Cerebral Palsy Center,
Rehabilitation Center for Crippled Children and Adults, etc.
Governmental uses in the subject area include the City of Miami Municipal Shops, Miami -Dade
County Health Department, County Jail, County Public Safety Department, Florida State
Employment Center.
QUINLIVANAPPRAISAL
25
The area north of N.W. 20th Street is zoned for industrial use and is primarily improved with
older warehouse properties. There are also single family residences to the north which range in
age from the 1920s to the 1970s.
The Miami River and the nearby Port of Miami are the centers of maritime commerce in Miami -
Dade County. The Port of Miami is located on Dodge Island, immediately east of the Central
Business District of Miami. The Port of Miami primarily services passenger vessels and large
container ships. The Miami River extends northwesterly from Biscayne Bay to approximately
N.W. 42nd Avenue. From N.W. 42nd Avenue, the Miami River connects to the Miami Canal. At
its mouth, the Miami River is the southern boundary of the Central Business District of Miami.
Northwesterly of the Central Business District properties fronting on the Miami River include
single family residences, residential condominiums, maritime cargo terminals, shipyards and
marinas.
In summary, the subject neighborhood, known as the Civic Center/Hospital District, is a fully
developed area with hospital, governmental, public service uses and ancillary commercial uses.
QUINLIVAN APPRAISAL
26
NEIGHBORHOOD MAP
Sewell Park
SUBJECT PROPERTY
1455 N.W. 17 Street
QUINLIVANAPPRAISAL
Cents-* iv-
Stati o 7
27
SITE DATA
QUINLIVAN APPRAISAL
28
SITE DATA
Dimensions and Shape:
The site is basically rectangular.
The site fronts for 163.33 feet on the east right-of-way line of N.W. 15th Avenue. The north
property line thence extends easterly for 259.25 feet. The east property line thence extends
southerly for 162.56 feet. The south property line thence extends easterly for 259.0 feet.
Source: Survey
Area:
42,309 square feet or 0.97 acres
Source: Survey.
Topography and Drainage:
The site is level at an average elevation equivalent to the abutting streets.
Flood Zone:
Map No. 12086C0311L
"AE" Special flood hazard areas subject to inundation by the 1% annual chance flood;
base flood elevation nine feet.
Soil and Subsoil:
The immediate area of the subject site appears to have no unusual soil or subsoil conditions.
Unusual conditions would be brought out by test borings.
Utilities:
Water: Miami -Dade Water and Sewer Department
Sewer: Miami -Dade Water and Sewer Department
Electricity: Florida Power & Light Company
Telephone: AT&T
Street Improvements:
N.W. 15th Avenue is asphalt paved with a dedicated width of 50 feet. N. W. 15th Avenue
contains one northbound lane and one southbound lane.
QUINLIVAN APPRAISAL
29
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QUINLIVAN APPRAISAL
i
30
ZONING
QUINLIVAN APPRAISAL
31
ZONING
Under Ordinance of the City of Miami, Florida.
Classification: T6-8-O URBAN CORE ZONE - OPEN
The urban core zone is comprised 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.
Permitted Principal Uses allowed by right include single family residences, duplexes,
multifamily housing, community residences, home offices, bed & breakfasts, inns, hotels,
offices, entertainment establishments, food service establishments, general commercial, places of
assembly, recreational facilities, religious facilities, learning centers, and research facilities. Uses
permitted by waiver include auto related establishments, marine related facilities, open air retail,
infrastructure and utilities, community support facilities, marinas, public parking, transit
facilities, childcare, colleges, schools, and vocational training. Uses permitted by exception
include alcohol service establishments.
Development Regulations
Minimum Lot Size: 5,000 square feet
Maximum Lot Size: 40,000 square feet
Minimum Lot Width: 50 feet
Maximum Lot Coverage: 80%
Floor Lot Ratio: 5
Minimum Green Space: 10%
Maximum Density: 150 dwelling units per acre
Setbacks:
Front (principal) 10 feet
Front (secondary) 10 feet
Side 0 feet
Back 0 feet
Minimum Height: Two stories
Maximum Height: Eight stories
QUINLIVANAPPRAISAL
32
Minimum Offstreet Parking:
Principal Dwelling
Community Residence
Lodging
Office
Commercial
Civic
Educational
1.5 spaces per unit
1 space per staff member in addition to required parking
1 space per 2 lodging units
3 spaces per 1,000 square feet
3 spaces per 1,000 square feet
1 space per every 5 seats of assembly area
2 spaces per every 1,000 square feet of educational use
QUINLIVANAPPRAISAL
33
HIGHEST AND BEST USE
QUINLIVANAPPRAISAL
34
HIGHEST AND BEST USE
Fundamental to the concept of value is the theory of highest and best use. Land is valued as if
vacant and available for its highest and best use.
The Appraisal Institute in The Dictionary of Real Estate Appraisal, Fourth Edition, defines
highest and best use as follows:
The reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and results in the highest value.
Land has limited value unless there is a present or anticipated use for it; the amount of value
depends on the nature of the land's anticipated use, according to the concept of surplus
productivity. Among all reasonable, alternative uses, the use that yields the highest present land
value, after payments are made for labor, capital, and coordination, is generally regarded as the
highest and best use of the land as though vacant.
The highest and best use of a property as improved refers to the optimal use that could be made
of the property including all existing structures. The implication is that the existing improvement
should be renovated or retained as so long as it continues to contribute to the total market value
of the property, or until the return from a new improvement would more than offset the cost of
demolishing the existing building and constructing a new one.
In estimating the highest and best use there are essentially four stages of analysis:
1. Possible Use. What uses of the site being appraised are physically possible?
2. Permissible Use (Legal) What uses are permitted by Zoning and Deed
Restriction, if any?
3. Feasible Use. Which possible and permissible uses will produce a net return to
the owner of the site?
4. Maximally Productive. Among feasible uses, which use will produce the highest
net return to the owner of the site?
The highest and best use of the land (or site), if vacant and available for use, may be different
from the highest and best use of the improved property. This is true when the improvements are
not an appropriate use, but make a contribution to the total property value in excess of the value
of the site.
The following four point test is required in estimating the Highest and Best Use. The use must
be legal. The use must be probable, not speculative or conjectural. There must be a profitable
demand for such use and it must return to the land the highest net return for the longest period of
time.
QUINLIVAN APPRAISAL
35
These tests have been applied to the subject property. In arriving at the estimate of Highest and
Best Use, the subject site is analyzed as vacant and available for development.
Possible Use
The site fronts for 163 feet on N.W. 15th Avenue, a secondary street in the subject neighborhood.
The site is a middle block location with adequate access and exposure.
The site is rectangular, with sufficient street frontage and depth for for good functional utility.
Public utility services are available in the abutting street right-of-way. The site is at an elevation
suitable for development.
The site contains 42,309 square feet, which equates to 0.97 of an acre. The size of the subject
site would allow a modest scale development or a subdivision into several sites.
The physical characteristics of the site would allow a moderate scale development of the site.
Permissible Use
Permissible or legal uses are those uses that are permitted by zoning or deed restrictions. There
are presently no known private deed restrictions of record.
The subject site is zoned for mixed residential and commercial uses. The maximum residential
density permitted is 150 dwelling units per acre. The maximum building density is five times the
lot area. The maximum building height is eight stories.
Feasible Use/Maximally Productive Use
The physical characteristics and zoning of the subject property permit a wide range of potential
uses. The possible and permissible uses of the subject site include stores, offices, apartments,
banks, hotels, and residential uses.
The subject site is located on the western periphery of the Civic Center/Hospital District of
Miami. This area is comprised of hospital, institutional and judicial uses. The Civic Center is a
fully developed area with few vacant sites available for development. Many of the sites located
west of N.W. 14th Avenue in the Civic Center area are improved with small office buildings and
apartment buildings. The site is located adjacent to the parking lot for the VA Hospital. A civic
or government use would be a likely use of the site.
Conclusion
Based on the above factors, the highest and best use of the site would be for an apartment, office
or civic use related to the Civic Center or assemblage with abutting sites to create a larger site.
QUINLIVAN APPRAISAL
36
THE APPRAISAL PROCESS
QUINLIVANAPPRAISAL
37
THE APPRAISAL PROCESS
The value of a site can be estimated by various methods which include Direct Sales Comparison,
Allocation, Extraction, Development Approach, Land Residual or Ground Rent Capitalization.
However, the Direct Sales Comparison Approach is the most preferred and utilized technique
when sales of comparable sites are available. The other methodologies are indirect techniques
which are generally used when an area is primarily built-up and sales of comparable sites are
scarce.
The Direct Sales Comparison Method was utilized in valuing the subject property due to the
recent sales. In the Direct Sales Comparison Method, sales of similar recently sold properties
with a similar highest and best use as the subject site are analyzed, compared and adjusted by
time, property characteristics and location to indicate the Market Value of the subject site
property. The reliability of this approach is dependent upon the availability of comparable sales
data, the verification of the sales data, the degree of comparability and the absence of non -typical
conditions affecting the sale.
Data related to the subject property is derived from various sources including but not limited to
the Miami -Dade County Property Appraiser's Office, Miami -Dade County plats, FEMA flood
zone maps, Land Development Regulations of the City of Miami and tax roll information
provided by the Miami -Dade County Property Appraiser's Office.
Comparable sale sources include the Miami -Dade County Property Appraiser's Office, Board of
Realtors' Multiple Listing Service, Tri-County Clipping Service and Loopnet. Sale prices are
typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent or attorney
to the transaction.
In this report, sales of vacant land zoned for commercial use in the subject and competitive
locations are gathered and analyzed. Comparable locations are considered to be the Civic Center
region of Miami -Dade County.
The sales were confirmed with the buyer, seller, broker or other person having knowledge of the
price, terms, and conditions of the sale.
QUINLIVANAPPRAISAL
38
LAND VALUE ANALYSIS
QUINLIVANAPPRAISAL
39
LAND VALUE
A value estimate is concluded by comparing the subject site to comparable land sales.
Generally, the comparable land sales are adjusted by time, property, and location to indicate the
Market Value of the subject site as though unimproved. This process is known as the Direct
Sales Comparison Method.
The Direct Sales Comparison Method is a process of analyzing sales of similar recently sold land
parcels in order to derive an indication of the most probable sales price of the site being
appraised. The reliability of this approach is dependent upon the availability of comparable sales
data, the verification of the sales data, the degree of comparability and the absence of non -typical
conditions affecting the sale.
The following pages contain sales of similar land sites which have recently sold. Several other
sales were considered, but were not included because there was too wide a difference in physical
factors, location and time.
Various analytical techniques may be used to identify and measure adjustments. The techniques
of comparative analysis can be grouped into two categories: quantitative and qualitative.
When quantitative analytical techniques are applied, mathematical processes are used to identify
which elements of comparison require adjustment and to measure the amount of these
adjustments.
The primary quantitative techniques, Paired Data Analysis, is a process in which two or more
market sales are compared to derive an indication of the size of the adjustment for a single
characteristic. Ideally, the sales being compared will be identical in all respects except for the
element being measured.
Although paired data analysis is a theoretically sound method, it is sometimes impractical
because only a narrow sampling of sufficiently similar properties may be available and it is
difficult to quantify the adjustments attributable to all the variables.
The primary qualitative techniques, Relative Comparison Analysis, is the study of the
relationship indicated by market data without recourse to quantification. This technique is
utilized because it reflects the imperfect nature of real estate markets. To apply the technique,
the appraisers analyze comparable sales to determine whether the comparables' characteristics
are inferior, superior, or equal to those of the subject property.
A search is made of real estate market for all sales within the subject or competitive locations.
While many sales were reviewed, the sales contained herein are considered most comparable to
the subject properties as to all major factors of comparison.
A detailed breakdown of each sale, a summary of the sales, a sales map and a value conclusion
follows herein.
QUINLIVANAPPRAISAL
40
LAND SALE 1
DATE: June 6, 2014
PRICE: $925,000
TYPE INSTRUMENT: Warranty Deed
RECORDATION: O. R. Book 29183, Page 3388
FOLIO NUMBER: 01-3135-010-0570
GRANTOR: Larry S. Sazant, Trustee
GRANTEE: American Business Continuity Domes, Inc.
LEGAL: Lots 1 & 2, GRAND VIEW PARK, Plat Book 5, Page
58 of the Public Records of Miami -Dade County,
Florida.
LOCATION: 1428 N.W. 14th Avenue
Miami, Florida
SITE DESCRIPTION:
Dimensions: Irregular
Size: 14,186 Square Feet
0.33 Acres
Zoning: T6-8-0, Urban Core Zone
Use at Sale: Vacant
UNIT PRICE: $65.21 per square foot of land
FINANCING: Cash
REMARKS: The site is a corner location.
QUINLIVANAPPRAISAL
41
SALE 1
QUINLIVANAPPRAISAL
42
DATE:
PRICE:
TYPE INSTRUMENT:
RECORDATION:
FOLIO NUMBER:
GRANTOR:
GRANTEE:
LEGAL:
LOCATION:
SITE DESCRIPTION:
Dimensions:
Size:
Zoning:
Use at Sale:
UNIT PRICE:
FINANCING:
REMARKS:
LAND SALE 2
June 18, 2014
$1,100,000
Special Warranty Deed
O. R. Book 29204, Page 924
01-3135-013-0040
University of Miami
American Business Continuity Domes, Inc.
Lot 5, Block "A", L.C. BRANNING'S
RESUBDIVISION OF LOTS 45-49 ST. JOHN PARK,
Plat Book 9, Page 35 of the Public Records of
Miami -Dade County, Florida.
1390 N.W. 14th Avenue
Miami, Florida
Irregular
9,638 Square Feet
0.22 Acres
T6-80, Urban Core Zone
Abandoned five story office building
$114.13 per square foot of land
Conventional first mortgage from
$1,500,000.
The seller considered the existing
contributed no value to the site.
QUINLIVAN APPRAISAL
Cl Bank of
improvement
43
SALE 2
QUINLIVANAPPRAISAL
44
DATE:
PRICE:
TYPE INSTRUMENT:
RECORDATION:
FOLIO NUMBER:
GRANTOR:
GRANTEE:
LEGAL:
LOCATION:
SITE DESCRIPTION:
Dimensions:
Size:
Zoning:
Use at Sale:
UNIT PRICE:
FINANCING:
REMARKS:
LAND SALE 3
February 10, 2015
$2,023,000
Warranty Deed
O. R. Book 29515, Page 3016
01-3135-024-0020
01-313 5-024-003 0
1501 NW 13 Ct., LLC
HTG Miami -Dade 5, LLC
Lots 1 & 2, GOLFVIEW PARK, Plat Book 11, Page
71 of the Public Records of Miami -Dade County,
Florida.
1501 N.W. 13th Avenue
Miami, Florida
Irregular
18,870 Square Feet
0.43 Acres
CI -HD, Civic Zone
Vacant
$107.21 per square foot of land
Conventional first mortgage from Citicorp of
$1,210,000.
The site is a corner location.
QUINLIVANAPPRAISAL
45
SALE 3
QUINLIVANAPPRAISAL
46
DATE:
PRICE:
TYPE INSTRUMENT:
RECORDATION:
FOLIO NUMBERS:
GRANTOR:
GRANTEE:
LEGAL:
LOCATION:
SITE DESCRIPTION:
Dimensions:
Size:
Zoning:
Use at Sale:
UNIT PRICE:
FINANCING:
REMARKS:
LAND SALE 4
December 11, 2015
$11,500,000
Special Warranty Deed
O. R. Book 29887, Page 4130
01-3135-026-0310
01-3135-026-0200
01-3135-026-0080
Miami River House Associates, Ltd.
Riverhouse Development, LLC
Lots 1-B, 2-B, 3-B, 4-B, 5-B, 6-B, 1-M, 2-M, 3-M
& 4-M, COUNTRY CLUB ADDITION, Plat Book 8,
Page 72 of the Public Records of Miami -Dade
County, Florida.
1170 N.W. 11th Street
1035 N.W.11th Court
1080 N.W. 11th Street
Miami, Florida
Irregular
110,753 Square Feet
2.54 Acres
T6-80, Urban Core Zone
T5-0, Urban Center Zone
Vacant
$103.83 per square foot of land
Construction loan from Citizens Bank of
$52,408,000.
This sale is the assemblage of three adjacent sites in
two transactions. The sites will be developed with
mixed use commercial and residential project.
QUINLIVANAPPRAISAL
47
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SALE 4
QUINLIVANAPPRAISAL
48
LAND SALE 5
DATE: August 25, 2016
PRICE: $2,725,000
TYPE INSTRUMENT: Warranty Deed
RECORDATION: O. R. Book 30220, Page 3622
FOLIO NUMBERS: 01-3135-019-3570
01-3135-019-3580
01-3135-019-3590
01-3135-019-3600
GRANTOR: Health Tower I, LLC
GRANTEE: Central District Miami Redevelopment Group, LLC
LEGAL: Lots 1, 2 & 3, Block "F", HIGHLAND PARK, Plat
Book 2, Page 13 of the Public Records of Miami -
Dade County, Florida.
LOCATION: 1217 N. W. 8th Court
Miami, Florida
SITE DESCRIPTION:
Dimensions: Irregular
Size: 19,686 Square Feet
0.45 Acres
Zoning: T6-8L, General Urban Zone
Use at Sale: Vacant
UNIT PRICE: $138.42 per square foot of land
FINANCING: Cash.
REMARKS: This site is most of a city block.
QUINLIVAN APPRAISAL
49
SALE 5
QUINLIVANAPPRAISAL
50
LAND SALE 6
DATE: August 25, 2016
PRICE: $2,725,000
TYPE INSTRUMENT: Warranty Deed
RECORDATION: O. R. Book 30220, Page 3624
FOLIO NUMBERS: 01-3135-019-1270
01-3135-019-1280
01-3135-019-1290
01-3135-019-1300
01-3135-019-1310
GRANTOR: Health Tower II, LLC
GRANTEE: Central District Miami Redevelopment Group, LLC
LEGAL: Lots 7, 8, 9 & 10, Block 7, HIGHLAND PARK, Plat
Book 2, Page 13 of the Public Records of Miami -
Dade County, Florida.
LOCATION: 1313 N. W. 8th Avenue
Miami, Florida
SITE DESCRIPTION:
Dimensions: 100 feet x 260 feet
Size: 26,000 Square Feet
0.60 Acres
Zoning: T6-8L, General Urban Zone
Use at Sale: Vacant
UNIT PRICE: $104.81 per square foot of land
FINANCING: Cash.
REMARKS: This site is end of a city block.
QUINLIVAN APPRAISAL
51
SALE 6
QUINLIVANAPPRAISAL
52
P]th S
LAND SALES MAP
r-
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ci
st
SUBJECT PROPERTY
1455 N.W. 17 Street
SALE 3
1501 N.W. 13 Court
MeiMIA!
Center
4Statio
SALE 2 x T
1390 N.W. 14 Avenue
SALE 4
If-;1170&1080N.W.11
eJ Street 1035 N.W. 11 Court
r
SALE 5
—vwdis
Pai
QUINLIVANAPPRAISAL
53
SUMMARY OF LAND SALES
CHARACTERISTICS
SUBJECT
SALE 1
SALE 2
SALE 3
SALE 4
SALE 5
SALE 6
DATE OF SALE
6/6/14
6/18/14
2/10/15
12/11/15
8/25/16
8/25/16
SALE PRICE
$925,000
$1,100,000
$2,023,000
$11,500,000
$2,725,000
$2,725,000
O.R. BOOK/PAGE
29183/3388
29204/924
29515/3016
29887/4130
30220/3622
30220/3624
ADDRESS
1455 N.W.17 St.
1428 N.W. 14
Ave.
1390 N.W. 14
Ave.
1501 N.W. 13 Ct.
1170 & 1080
N.W. 11 St.,
1035 N.W. 11 Ct.
1217 N.W. 8 Ct.
1313 N.W. 8
Ave.
LOCATION
1/4Mile SE
'A Mile SE
1/4 Mile SE
2/ Miles SE
7/8 Miles SE
7/8 Miles SE
LAND SIZE (SF)
42,309
14,186
9,638
11,070
110,753
19,686
26,000
LAND SIZE (ACRES)
0.97
0.33
0.22
0.43
2.54
0.45
0.60
ZONING
T6-8-O
T6-8-O
T6-8-O
CI -HD
T6-80/T5-O
T6-8L
T6-8L
USE AT SALE
Vacant
Vacant
Gutted Office
Building
Vacant
Vacant
Vacant
Vacant
PRICE PAID/SF
$65.21
$114.13
$107.21
$103.83
$138.42
$104.81
ANALYSIS OF SALES
The land sales range in unit price from $65.21 to $138.42 per square foot of land area. The sales
range in time from June of 2014 to August of 2016.
Property Rights
The fee simple interest is the property right of the subject property being valued. The comparable
sales involved the same type of property rights.
Financing
The sales were all financed with cash. The financing of the sales does not indicate any
adjustments of their prices for favorable/below market financing.
Conditions of Sale
All of the sales were arm's-length transactions. An arm's-length transaction is defined as a
transaction freely arrived at in the open market unaffected by abnormal pressure or by the
absence of normal competitive negotiation as might be true in the case between related parties.
Date of Sale (Market Conditions)
The sales occurred between June of 2014 and August of 2016. An upward trend in price for land
sites in the subject market area is evident over this time period. The unit prices of the sales,
especially Sales 1, 2, 3 and 4, require upward adjustment for increasing market conditions
Location
The subject site is located in the Civic Center area of the city of Miami. The sale sites are located
within a one mile radius of the subject. The locations of the sale sites are considered similar to
the location of the subject site.
Land Size
The sale sites range in size from 9,638 to 110,753 square feet. The subject site at 42,309 square
feet is within the range of sizes of the sale properties. The sales indicate no difference in unit
price based on site size.
Zoning
The subject site is zoned in a T6-80 zone in the City of Miami that permits mixed commercial
and residential uses. The Sale 1, 2, and 4 sites are similarly zoned in a T6-80 zone. The zonings
of the Sale 1, 2, and 4 sites are similar to the zoning of the subject site.
The Sale 3 site is zoned in a civic zone that permits mixed commercial and residential uses at a
similar density to the T6-80 zoning. The zoning of the Sale 3 site is fairly similar to the zoning
of the subject site.
QUINLIVAN APPRAISAL
55
The Sale 5 and 6 sites are zoned in a T6-8L zone that permits residential uses and commercial
that are fairly similar to the T6-80 zone. The zonings of the Sale 5 and 6 sites are similar to the
zoning of the subject site.
Conclusion
The land sales range in unit price from $65.21 to $138.42 per square foot of land area. The sales
range in time from June of 2014 to August of 2016.
A summary of the adjustments is as follows:
Sale No.
1
2
3
4
5
6
Price/Square Foot
$65.21
$114.13
$107.21
$103.83
$138.42
$104.81
Adjustments
Property Rights
Conditions of Sale
Financing
Market Conditions
+
+
+
+
Location
=
_
+
Land Size
Zoning
Site Conditions
Total Adjustments
+
+
+
+
The unit prices of Sales 1, 2, 3, and 4, ranging from $65.21 to $114.13 per square foot, are
considered lower limits for the value of the subject site. The unit prices of Sales 1, 2, 3, and 4
require upward adjustments for increasing market conditions.
The unit prices of Sales 5 and 6 are considered fairly indicative of the value of the subject site.
Sales 5 and 6 are fairly recent sales. The unit prices of Sales 5 and 6 require no adjustments.
Based on careful analysis of the land sales, the fee simple interest of the subject site is estimated
to have a market value of $120.00 per square foot of land area.
42,309 Square Feet x $120.00 per Square Foot = $5,077,080
Land Value Indication (Rounded) $5,075,000
QUINLIVAN APPRAISAL
56
ESTIMATE OF MARKET RENT
QUINLIVAN APPRAISAL
57
MARKET RENT
Market rent is defined as the rental income that a property would most probably command on the
open market as indicated by current rentals being paid for comparable properties.
Since most land parcels are sold and not leased, there is an absence of land rentals which can be
utilized to directly estimate the market rent of a land parcel. In the absence of comparable land
rentals, the market rent for a land parcel is generally estimated as a percentage of land value.
After the estimation of the land value (which has been estimated at $5,075,000), a return on land
value typical in the real estate marketplace must be established.
Small sites for bank branches, service stations and fast food restaurants have historically been
leased in the range of 5.0% to 10.0% of the land value. The rates of return on land value from
the convenience type sites would typically establish an upper range of a rate applicable to the
subject property. These are small sites to be improved with a relatively small building that only
has a useful life of approximately 20 to 25 years before it is functionally obsolete.
The land capitalization rate was based on analysis of leased fee sales, real estate rates of return,
rates of return on long-term security investments and mortgage interest rates. Typically, the
longer the lease and the greater the spread between market and contract rent, the greater the
margin of safety and hence, the lower the overall rate.
In estimating an appropriate overall rate, current rates of return on security investments have
been reviewed. A summary of alternative rates of return as September 2016 were as follows:
6 months Treasury Bills
3 month CDs
Prime Rate
Conventional Home Mortgage Rates
U.S. Treasury Bonds - 30 Years
Corporate Bonds (Aaa)
Corporate Bonds (A)
Corporate Bonds (Baa)
0.47%
0.70%
3.50%
3.60%
2.50%
3.41%
3.68%
4.31%
Rates of return on real estate are typically higher than security rates due to illiquidity of the
investment and higher cost of sale.
Due to the lack of sales of land parcels subject to land leases in the subject area, sales of leased
land parcels throughout Miami -Dade County were analyzed. A summary of the overall rates
from leased fee land sales is on the following page.
QUINLIVAN APPRAISAL
58
OVERALL RATES FROM LEASED FEE LAND SALES
No.
Date
Of Sale
Tenant
Location
Sale
Price
Recordation
Year
Built
Overall
Rate
Lease
Term
1
4/11
Bank of America
3050 N.E. 43 Avenue,
Homestead
$2,450,000
27662/135
2005
5.8%
10% rent increases every five
years
2
5/11
Chase
13701 S.W. 288 Street,
Miami -Dade County
$2,692,400
27702/4825
2010
6.5%
20 years with four, five year
options. 10% rent increase
every five years
3
8/11
Chase
14290 S.W. 8 Street,
Miami -Dade Co.
$2,915,000
27795/3465
2005
5.5%
20 years with two, five year
options. 15% rent increase
every five years
4
5/12
Burger King
701 N.W. 37 Avenue,
Miami
$2,050,000
28098/1733
1980
5.0%
15 years with six, five year
options. 8% rent increase
every five years
5
6/12
Chase
801 S.W. 27 Avenue,
Miami
$5,960,000
28160/344
2010
4.95%
20 years with five, five year
options. rent increase every
five years
6
12/12
TD Bank
10603 N.W. 12 Street,
Doral
$6,400,000
28424/4278
2008
5.0%
20 years with rent increase
every five years
7
2/13
KFC
13801 Biscayne Blvd.,
North Miami
$1,850,000
28484/1652
1991
4.5%
20 years with two, ten year
options. rent increase every
five years
8
1/15
McDonald's
2880 N. E. 8 St.,
Homestead
$2,525,000
29461/450
2006
4.3%
20 years with four, ten year
options. rent increase every
five years
9
5/16
TD Bank
801 West 49 St.,
Hialeah
$8,845,400
30086/94
2008
4.8%
20 years with two, ten year
options, rent increase in option
years
10
8/16
CVS
1802 N. University Dr.,
Plantation
$6,200,000
113845405
2013
4.7%
25 years with options.
SALE 1
SALE 2
QUINLIVAN APPRAISAL
60
SALE 3
SALE 4
QUINLIVAN APPRAISAL
61
SALE 5
SALE 6
QUINLIVAN APPRAISAL
62
SALE 7
QUINLIVAN APPRAISAL
63
SALE 9
SALE 10
QUINLIVAN APPRAISAL
64
Market Rent Conclusion
The leased land parcels for bank branches, drug stores, auto parts stores and fast food restaurants
have recently sold with overall capitalization rates in the range of 4.3% to 6.5%. These rates
represent the relationship between sale price of the leased fee interest and annual land rental
rates. These overall capitalization rates may vary depending on quality of tenant and the
expectation of future value at the termination of the lease. These overall capitalization rates of
leased fee ground lease sales tend to indicate lower rates than the land rates of return due to the
security offered by high credit tenants and existence of an improvement on the site. National
tenants such as Walgreen's, Bank of America, or McDonalds, typically do not default on lease
and abandon an existing improvement they built. The potential tenant for subject ground lease
would not likely have the high credit rating of Chase or Bank of America. The overall rates of
the ground lease sales with high credit tenants should be a lower limit for the overall rate
applicable to subject property.
The Realty Rates.com Investor Survey — Third Quarter 2016 indicates overall rates for land
leases for office properties ranging from 2.26% to 10.10.5%, with the average being 6.68%. The
survey indicates overall rates for land leases for apartment properties ranging from 1.91% to
10.50%, with the average being 6.03%. The survey indicates overall rates for land leases for
retail properties ranging from 1.96% to 11.87%, with the average being 6.56%. The survey
indicates overall rates for land leases for all property types ranging from 1.91% to 15.90%, with
the average being 7.23%.
Considering the above sources of rates of return, with consideration given to the capitalization
rates from long term ground leases and rates indicated on investor surveys, a 7.5% rate of return
on land value is considered appropriate.
Estimated Market Value of Land Site in Fee Simple
Land Rate of Return
Estimated Annual Land Rental
Final Estimate of Annual Market Rent (Rounded)
$ 5,075,000
x 0.075
$ 380,625
$ 380,625
QUINLIVAN APPRAISAL
65
ADDENDA
QUINLIVAN APPRAISAL
66
ASSUMPTIONS AND LIMITING CONDITIONS
This Appraisal Report has been made with the following general assumptions:
1.
No responsibility is assumed for the legal description or for matters
including legal or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. The property is appraised free and clear of any or all liens or
encumbrances unless otherwise stated.
3. Responsible ownership and competent property management are
assumed.
4. The information furnished by others is believed to be reliable.
However, no warranty is given for its accuracy.
5. All engineering is assumed to be correct. The plot plans and
illustrative material in this report are included only to assist the
reader in visualizing the property.
6. If no survey has been furnished to the appraisers, all measurements
have been confirmed either in the field, in the plat book or by other
reliable sources and are presumed to be accurate.
7
It is assumed that there are no hidden or unapparent conditions of the
property, subsoil, or structures that render it more or less valuable.
No responsibility is assumed for such conditions or for arranging for
engineering studies that may be required to discover them.
8. It is assumed that there is full compliance with all applicable federal,
state and local environmental regulations and laws unless
noncompliance is stated, defined and considered in the Appraisal
Report.
9. It is assumed, unless a study has been provided otherwise, that no
hazardous material such as asbestos, urea formaldehyde or other
toxic waste exists in the property. The existence of a potentially
hazardous material could have a significant effect on the value of the
property.
10. In reference to proposed construction, the real estate taxes and other
expenses are estimated. These amounts are not guaranteed.
QUINLIVAN APPRAISAL
67
11.
It is assumed in the valuation of the subject land site, unless a
compliance letter has been furnished to us, that the State of Florida
Growth Management Act does not prevent the issuance of a building
permit.
12. It is assumed that all required licenses, certificates of occupancy,
consents, or other legislative or administrative authority from any
local, state or national government or private entity or organization
have been or can be obtained or renewed for any use on which the
value estimate contained in this report is based.
13. It is assumed that the utilization of the land and improvements is
within the boundaries of property lines of the property described and
that there is no encroachment or trespass unless noted in the report.
This Appraisal Report has been made with the following general limiting conditions:
1.
The distribution, if any, of the total valuation of this report between
land and improvements applies only under the stated program of
utilization. The separate allocations for land and buildings must not
be used in conjunction with any other appraisal and are invalid if so
used.
2. Possession of this report, or a copy thereof, does not carry with it the
right of publication. It may not be used for any purpose by any
person other than the party to whom it is addressed without the
written consent of the appraisers, and in any event, only with proper
written qualification and only in its entirety.
3. The appraisers herein by reason of this appraisal is not required to
give further consultation, testimony, or be in attendance in court with
reference to the property in question unless arrangements have been
previously made.
4. Neither all nor any part of the contents of this report (especially any
conclusions as to value, the identity of the appraisers, or the firm
with which the appraisers are connected) shall be disseminated to
the public through advertising, public relations, news, sales, or other
media without the prior written consent and approval of the
appraisers.
QUINLIVAN APPRAISAL
68
QUALIFICATIONS OF THE APPRAISER
THOMAS F. MAGENHEIMER
Experience:
11/84 - Present QUINLIVAN APPRAISAL, P.A.
7300 N. Kendall Drive, Suite 530
Miami, Florida 33156
Education:
University of Richmond, Richmond, Virginia
BA - Bachelor of Arts in History (1982)
Professional Affiliations:
Member of the Appraisal Institute (MAI No. 09166)
Real Estate Salesman - State of Florida - Certificate No. 0344882
Certified General Appraiser, State of Florida, License No. RZ0000553
Member Sigma Alpha Epsilon Fraternity
Qualified as an Expert Witness in the Following Courts:
Miami -Dade County Circuit Court
Broward County Circuit Court
U.S. Bankruptcy Court
Other Activities:
Admissions Committee - South Florida -Caribbean Chapter of the Appraisal Institute - (1992 -
1993)
Newsletter Editor - South Florida -Caribbean Chapter of the Appraisal Institute - (1991 - 1995)
President - South Florida -Caribbean Chapter of the Appraisal Institute - (1996)
Board of Trustees - Palmer -Trinity School (1989 - 1993)
QUINLIVAN APPRAISAL
69
Quinlivan Appraisal has prepared Appraisal Reports for the following:
Institutions and Corporations:
AT&T
Archdiocese of Miami
Atlantic Security Bank
The Bank of America
Bank United
Barry University
Bessemer Trust Company
California Bank and Trust
Chevron Oil Company
Chase Manhattan Bank
Chemical Bank
Citibank
Citrus Bank
City National Bank of Miami
Coamerica Bank
Coconut Grove Bank
Commerce Bank
Commercial Bank of Florida
Consolidated Bank
County National Bank
Eagle National Bank
Eastern National Bank
Equitable Bank
Espirito Santo Bank
Farm Credit of South Florida
Fidelity Bank
First International Bank
First National Bank of South Miami
Florida International University
First Nationwide Bank
Florida Memorial College
Florida Power and Light Company
Florida Rock Industries
Great Eastern Bank of Florida
Greyhound Lines
HSBC
Hemisphere National Bank
Intercontinental Bank
International Bank of Miami, N.A.
QUINLIVAN APPRAISAL
70
LaSalle National Bank
Marine Midland Bank
McDonalds Corp.
Mellon United National Bank
Metro Bank
Miami -Dade County Community College
Miami -Dade Water and Sewer Authority
Northern Trust Bank of Florida
Ocean Bank
Pacific National Bank
Pan American Bank
Shell Oil Company
South Trust Bank
SunTrust Bank
TotalB ank
Trade National Bank
Trust for Public Lands
UniBank
Union Planters National Bank
University of Miami
Wachovia
Wal-Mart
YMCA
Governmental Agencies:
City of Aventura
City of Coral Gables
City of Doral
City of Florida City
City of Hialeah
City of Homestead
City of Miami
City of Miami Parking Authority
City of Miami Beach
City of Miramar
City of North Bay Village
City of North Miami
City of North Miami Beach
City of South Miami
City of Sunny Isles Beach
Miami -Dade County Aviation Department
Miami -Dade County Department of Development & Facilities Management
Miami -Dade County HUD
QUINLIVAN APPRAISAL
71
Miami -Dade County Property Appraisal Adjustment Board
Miami -Dade County Public Schools
Miami -Dade County Public Works Department
Miami -Dade County Transportation Administration
Miami -Dade Water & Sewer Department
South Florida Water Management District
State of Florida, Attorney General's Office
State of Florida, Department of Community Affairs
State of Florida, Department of Corrections
State of Florida, Department of Environmental Protection
State of Florida, Department of Insurance
State of Florida, Department of Rehabilitation and Liquidation
State of Florida, Department of Transportation
Town of Golden Beach
United States Army Corps of Engineers
United States Department of Justice
United States Department of Commerce
United States Department of the Interior
United States General Services Administration
Village of Islamorada
Village of Key Biscayne
Village of Pinecrest
Law Firms:
Akerman Senterfitt
Greenberg, Traurig
Daniels, Kashton, Downs and Robertson
Holland and Knight, LLP
Shutts & Bowen
Ruden McClosky, LLP
Steel, Hector & Davis, LLP
Weiss, Serota, Helfman, Pastoriza, Guedes, Cole and Boniske, P.A.
Types of Properties Appraised:
Single Family Residences
Apartment Buildings
Office Buildings
Retail Stores
Shopping Centers
Condominium Apartment Buildings
Golf Courses
Residential Subdivisions
Automobile Dealerships
Vacant Land
Hotel/Motels
Warehouses
Nursing Homes
Mobile Home Parks
Schools
Service Stations
Marinas
Wetlands
QUINLIVAN APPRAISAL
72
PURCHASE ORDER
QUINLIVAN APPRAISAL
73
Visit our website for business oDDortunities at: www.miamioov.comlDrocurement
y u-
ti��
, _
City of Miami
Purchase Order
Depament of Purchasing
PO. Box330708Miami, Florida 33233-0708r:
(305)416-1922Fax-(305)416-1925ony
PURCHASE ORDER/RELEASE NUMBER
1700712
number on all packagesinvoicesand shipping papers.
Change
Number
0
Change
Date
No_ OrderDate Bid/Contract Number
11/08/2016
Hansen
Taxpayer ID Supplier No.
Telephone N o.City
jhs
of Miami - PF - Asset Management
444 SW 2nd Ave., 3rd Floor
Miami, FL 33130
592168811 1026
305-663-6611
Quinlivan Appraisal PA
7300 North Kendall Drive
Suite 530
Miami, FL 33156
City of Miami - Finance - General Accounting
444 SW 2nd Ave, 6th Floor
Miami, FL 33130
Fax - (305) 416-1987 Email - payables@miamigovcom
Customer Account Number
Effective Start Date
Effective End Date
Total Agreement Limit
Line
Commodity
Code
Description/Delivery Date
Qty
Unit
Unit Pnce
Extended Price
1
94615-00
2nd appraisal of the property located at 1455 NW 17th Street, Miami, FL
Dollar
1.00
Total Amount:
Pursuant to RFQ 132102(15) as authorized by Resolution 10-0330.
FOB:
Destination
'equisition Number:
144632
Vendor Instructions
1 Florida Tax Exempt ID:
Ship Via'.
Department:
►21090 - 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
PaymentTerms
Net 30
ontact Person
ernandez, Yvonne
reverse side hereof are incorporated herein by reference become
part of this order
elephone Number.
305)416-1429
___.5
11/08/2016
Annie Perez, CPPO, Director of Procurement
Dale Approved
C EN/PC 506 Rev. 12/05
QUINLIVAN APPRAISAL
74
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, tine CITY will assume the VENDOR accepts tine order as written and will make delivery as specified on tine 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. MODIFICATIONS 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 tine 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 0 D or freight collect
without the CITY'S written consent will not be accepted and will, at VENDOR'S risk and expense be retumed 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 matenals 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 matenals, 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, constnvction, 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 forinfnngement 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 prces set out and giving the correct Purchase Order Number must be sent to tine address shown on the
face of this order, othennrise 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 anytime, 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 govemed 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 wnting 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 procunng supplies and
equipment. awarding sub -contracts, and employing workmen_
22. PAYMENT CHANGES. Payments will 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, Elorida 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
(1006Y0 of the Purchase Order total, upon award or at such time deemed necessary by CITY.
QUINLIVAN APPRAISAL
75
CBRE, Inc.
STANDARD 3-APPRAISAL REVIEW
Properties with Appraised Values of over $1, 000, 000
(For ISI Professional Services)
Date: June 24, 2016
To: Name:
Company:
Address:
City/State:
From: Name:
Company:
Address:
City/State:
Re:
Christopher J. Lefebvre, President & CEO
ISI Professional Services
1201 15th Street, NW, Suite 200
Washington, DC 20005
Stuart J. Lieberman, MAI
CBRE, Inc.
777 Brickell Avenue, Suite 910
Miami, FL 33131
CBRE FILE # 16-397MI-1165
PROPERTY INFORMATION:
Property Name:
Address:
City, State:
APPRAISAL INFORMATION:
Appraiser(s) Name:
Firm:
State Certified/Licensed:
Date of Report:
Report Format/Type:
Engaged By:
Wagner Square Site
1455 NW 17th Street
Miami, Miami -Dade County, Florida 33125
Josh L. Rosen, MAI & Alejandro C. Puente
Waronker & Rosen, Inc.
Yes
April 1, 2016
Comprehensive Appraisal Report
Mr. Richard Banchoff, Legal Counsel
ISI Professional Services
1201 15th Street, NW Suite 200
Washington, DC 20005
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
1of11
EFFECTIVE DATES AND VALUE CONCLUSIONS
Appraiser
Type of Value
Effective Date
of Value Appraiser's
Conclusions
Reviewer's
Conclusion
Accept/Rejected
Josh L. Rosen, MAI &
Alejandro C. Puente
Market Value
As Is
February 24, 2016 $5,300,000
Rejected
Stuart J. Lieberman, MAI
Approved
Market Value June 23, 2016 $3,600,000 Independent Value
As Is
The review appraiser has observed several deficiencies with regards to the Uniform Standards of
Professional Appraisal Practice (USPAP) and the Uniform Appraisal Standards of Federal Land
Acquisitions (UASFLA) requirements including a lack of research & analysis of public records with
regards to declarations of restrictions, reverter and unity of title covenants for a municipal owned
site that was previously mandated for affordable housing. The review appraiser also found fault with
the definition of market value utilized and a flawed sales comparison approach to value as detailed in
the following review appraisal document.
Therefore, the review appraiser has rejected the appraisal and developed an independent market
value As Is of the subject land, as of June 23, 2016.
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
2 of 11
SPECIFIC COMMENTS RELATING TO THE REPORT:
Description/Significant Assumptions/Comments: The appraiser indicates that the appraisal is an As Is
opinion of market value of the fee simple interest in the subject land. The subject property is described as
two (2) contiguous parcels totaling 0.97-acres.
Extraordinary Assumptions: The following is a condensed version of the appraisers Extraordinary
Assumptions as indicated in the report. For more specific details, see appraisal report.
• No extraordinary assumptions or limiting conditions noted in appraisal.
Hypothetical Conditions: No hypothetical conditions were employed.
APPRAISAL REPORTING REQUIREMENTS:
1. Contains statement that appraisal in accordance with UASFLA:
2. Contains statement that appraisal in accordance with USPAP:
3. Includes assumptions and limiting conditions that appear standard:
4. Extraordinary assumptions, if any, are clearly disclosed:
5. Hypothetical conditions, if any, are clearly disclosed:
6. Identifies Client and Intended Use/Users:
7. Identifies type of report:
8. Identifies real estate appraised :
9. Identifies real property interest appraised:
10. States purpose of appraisal:
11. States definition of Market Value (UASFLA):
12. States effective date(s) of appraisal:
13. States date of report:
14. Appropriately describes scope of work:
15. Appraiser competency to perform assignment:
16. Includes ADA statement:
17. Includes prior services statement:
18. Explains exclusion of any valuation approach:
19. Includes "as is" value estimate:
20. Includes appraiser's state certification and license number:
21. Includes appraiser(s) qualifications:
22. Includes appraiser's statement regarding inspection in certification:
23. Includes signed certification:
Included/Adequate
YES NO N/A
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
The client scope of work (SOW) specifically requests the appraisal shall conform to the Uniform
Appraisal Standards for Federal Land Acquisitions (UASFLA) and referred to as the Yellow Book.
However, the appraisal fails to disclose any extraordinary assumptions & limiting conditions and fails
to provide the appropriate definition of market value in accordance with UASFLA requirements.
According to the Declaration of Restrictions; the Declaration of Restrictions & Reverter; the
Declaration of Restrictions In Lieu of Unity of Title; and all amendments to said documents, as
recorded in Miami -Dade Public Records, there is an Easement & Operating Agreement for
perpetual, non-exclusive access, utility and maintenance; an affordable housing requirement; and, a
construction commencement requirement that runs with the land and can only be amended or
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
3 of 11
modified by a written agreement approved by the City Commission. The appraiser failed to disclose
any of these publicly recorded declarations & restrictions and did not publish an extraordinary
assumption & limiting condition as it may or may not impact the market value As Is.
In addition, the Jurisdictional Exception Rule of USPAP Standards Rule 1-2(c) should have been
invoked when defining the appropriate definition of market value in accordance with UASFLA
requirements by excluding the exposure time estimate from the definition of market value. As such,
Section A-9 of the UASFLA Standards provides that the appraiser shall not link an estimate of market
value for federal land acquisition purposes to a specific exposure time. This is contrary to USPAP
Standards Rule 1-2 and Standards Rule 2-2, and is considered a jurisdictional exception.
The definition of market value required and adopted by the Uniform Appraisal Standards for
Federal Land Acquisitions (UASFLA), that should have been used, is 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.
PROPERTY IDENTIFICATION AND OWNERSHIP:
YES
NO
N/A
1. Legal description included:
2. Property History included:
3. Any subject sales transactions within past three (3) years detailed:
4. Current sale contract detailed and appropriately analyzed:
5. Appraiser notes if current listing:
6. Provided analysis if sale or contract is significantly different from MV estimate:
I X
X
Comments: Overall, property identification and ownership is sufficiently documented. However, there is no
mention or discussion relating to the interest in the subject property by the U.S. Department of Veterans
Affairs (VA). In addition, the appraiser failed to research or present the mandated & approved affordable
housing development by the prior ownership leading to the bankruptcy. Finally, the appraiser did not
mention the sell-off of the abutting site in September 2012 for $7,200,000 or $68.49-PSF for the 2.413-acres
within the same plat as the subject and part of the same bankruptcy history as the subject property.
Included/Adequate
PROPERTY DESCRIPTION:
YES NO N/A
1. Location/market description analysis (considering scope of assignment): X
2. Site description: X
3. Improvement description:
4. Flood Plain Information: X
5. Real Estate Tax Information: X
6. Zoning: Includes statement regarding conformance with zoning:
X
X
Comments: Overall, the property description and site description is sufficiently documented. However,
there was no mention of City of Miami ownership and the requisite declaration of restrictions; declaration of
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
4 of 11
restrictions & reverter; and/or, the declaration of restrictions in lieu of unity of title that have impact &
bearing on zoning and permissible highest & best uses.
HIGHEST & BEST USE:
YES NO N/A
1. HBU "As Vacant" adequately analyzed: X
2. HBU "As Improved" adequately analyzed: X
3. Improvements are consistent with highest and best use: X
Comments: Highest and Best use of the subject property as vacant is high density mixed -use residential,
office, retail & lodging, which is consistent with and supported by the majority of comparable land sale
transactions analyzed in the Land Valuation section of this report. However, the HBU As Vacant under
Legally Permissible stated "no deed restrictions are known which would legally limit the allowable uses on
the subject site." The review appraiser researched the public records of Miami -Dade County and was able to
analyze the municipal ownership and requisite declaration of restrictions; declaration of restrictions &
reverter; and, the declaration of restrictions in lieu of unity of title that could have impact & bearing on the
legally permissible highest & best uses.
Included/Adequate
SALES COMPARISON APPROACH:
YES NO N/A
1. Sales are chosen for comparison appear appropriate: X
2. Appropriate units of comparison are analyzed: X
3. Data and/or adjustments (sales analysis) appears adequate: X
4. Value conclusion appears to be adequately supported: X
Comments: The appraiser included a Comparable Sales Analysis beginning on Page 44 through 57 of the
appraisal under review. The comparable sale dates range from February 2015 through December 2015 and
were conveyed fee simple to multi -family residential developers and investor speculators.
The reviewer has identified Comparable Sales 1, 4 & 5 as the most similar to the subject property with
regards to location and zoning density. These three comparables produced an unadjusted value indicator
range of $93.05 to $107.21 per square foot of site area. However, only a qualitative adjustment grid was
presented with plus (+) and minus (-) differences, which was reportedly utilized because of insufficient data
for paired sales analysis. Furthermore, the appraiser considered and weighed a pending sale list price of
$119.28-PSF of a property located at 1670 NW North River Drive with Miami River frontage and concluded
with an estimated land value indicator of $125.00-PSF based on the pending list price and Comparable Land
Sale 2 that is located outside of the subject submarket. Comparable Land Sale 2 produced a value indicator
of $147.69-PSF and is located east of Interstate 95 and within the very speculative Wynwood submarket.
More importantly, no analysis was attributed to price per unit or buildable FLR (Floor -Lot -Ratio), which are
the most critical & primary elements when valuing high density, residential and mixed -use land within a
dense submarket.
As such, the review appraiser has developed an independent market value of the land as vacant via the sale
comparison approach utilizing Comparable Sales 1, 4 & 5; by eliminating Comparable Sales 2, 3 & 6 for
different locations outside of the subject Civic Center/Health District submarket, and for different zoning
when compared to the subject property. We replaced those three (3) comparable sales with two (2) from
within the subject Civic Center/Health District and considered similar when employing the more relevant
direct sales comparison approach based on the zoning & FLR analysis, and presented in the following
analysis by the reviewer appraiser.
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
5 of 11
E l l 11111M=111111111..F
E E
mitimelZ1
Sale 3
2210 NW North River
Dr
Miami, FL 33125
Subject Property
1455 NW 17th 5t
Miami, FL 33125
Sale 1
1501 NW 13th Ct
Miami, FL 33125
Sale 5
1170 NW 11th St
Miami, FL 33136
Sale 4
1850 NW 7th Ave
Miami, FL 33136
SUMMARY OF COMPARABLE LAND SALES
No. Property Location
Transaction
Type Date
Zoning
Actual Sale Adjusted Sale Size Size Price
Price Price 1 (Acres) (SF) PSF
1
2
3
4
5
Miami, FL
Miami, FL
1501-1511 NW 13th Court, Sale Feb-15 CI -HD, Civic Institution $2,023,000 $2,023,000 0.43 18,870 $107.21
Health District
1310 Northwest 8th Court, Sale Mar-15 T6-8 L, Urban Core $950,000 $950,000 0.29 12,498 $76.01
Limited
2210 NW North River Drive, Sale Apr-15 T6-8 0, Urban Core, $4,147,500 $4,147,500 1.02 44,572 $93.05
Open
Miami, FL
1850-1890 NW 7th Avenue, Sale May-15 CI -HD, Civic Institution $3,500,000 $3,500,000 0.81 35,445 $98.74
Miami, FL Health District
1170 NW llth Street 1035 Sale Dec-15 T6-8 0, Urban Core & $11,500,000 $11,500,000 2.54 110,753 $103.83
NW llth Court, Miami, FL T5 0, Urban Center
Subj. 1455 NW 17th Street,
T6-8 0, Urban Core 0.97 42,309
Miami, Florida Transect Zone
Adjusted sale price for cash equivalency and/or development costs (where applicable)
Compiled by CBRE
SUMMARY OF ADJUSTMENTS
Based on the review appraisers comparable sale selection & analysis, the following chart summarizes the
adjustments warranted to each comparable in direct comparison to the subject property. It is important to
note, the subject buildable FLR is estimated based on the Miami 21 zoning regulation and comparable
market analysis of similar zoned sites with proposed and/or approved development densities.
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 171h Street, Miami, Florida 33125
6 of 11
LAND SALES ADJUSTMENT GRID
Comparable Number
Transaction Type
Transaction Date
Zoning
1
Sale
Feb-15
CI -HD, Civic
Institution Health
District
2
Sale
Mar-15
T6-8 L, Urban
Core Limited
3
Sale
Apr-15
T6-8 0, Urban
Core, Open
4
Sale
May-15
CI -HD, Civic
Institution
Health District
5
Sale
Dec-15
T6-8 0, Urban
Core & T5 0,
Urban Center
Actual Sale Price
$2,023,000
$950,000
$4,147,500
$3,500,000
$11,500,000
Adjusted Sale Price 1
$2,023,000
$950,000
$4,147,500
$3,500,000
$11,500,000
Size (Acres)
0.43
0.29
1.02
0.81
2.54
Size (SF)
18,870
12,498
44,572
35,445
110,753
Density (UPA)
169 du/ac
139 du/ac
150 du/ac
---
115 du/ac
Allowable Units
73 Units
40 Units
153 Units
---
292 Units
Allowable Bldg. Area (SF)
---
73,826 SF
222,860 SF
---
---
Indicated FAR
---
5.91
5.00
---
---
Price PSF of Site
$107.21
$76.01
$93.05
$98.74
$103.83
Price Per FLR
---
$12.87
$18.61
---
---
Price Per Dwelling Unit
$27,712
$23,750
$27,023
---
$39,384
Price ($ PSF)
$107.21
$76.01
$93.05
$98.74
$103.83
Property Rights Conveyed
0%
0%
0%
-10%
0%
Financing Terms'
0%
0%
0%
0%
0%
Conditions of Sale
0%
0%
0%
0%
0%
Market Conditions (Time)
5%
5%
5%
5%
0%
Subtotal
$112.57
$79.81
$97.70
$93.31
$103.83
Size
-10%
-15%
0%
0%
10%
Shape
0%
0%
0%
0%
0%
Corner
0%
0%
0%
0%
0%
Frontage
0%
0%
-10%
-10%
0%
Topography
0%
0%
0%
0%
0%
Location
0%
5%
0%
0%
-25%
Zoning/Density
-5%
5%
0%
0%
0%
Utilities
0%
0%
0%
0%
0%
Highest & Best Use
0%
0%
0%
0%
0%
Total Other Adjustments
-15%
-5%
-10%
-10%
-15%
Value Indication PSF of Site
$95.68
$75.82
$87.93
$83.98
$88.26
Value Indication PSF of FAR
$12.84
$17.59
Value Indication Per Unit
$24,733
$23,691 $25,537
$33,476
1 Adjusted sale price for cash equivalency and/or development costs (where applicable)
Compiled by CBRE
Subject
T6-8 0, Urban Core
Transect Zone
0.97
42,309
150 du/ac
146 Units
211,545 SF
13.14
CONCLUSION
Based on the preceding presentation and comparable sale analysis, all of the comparable sales were
representative of the subject site, and warranted equal consideration because of recent sale transaction dates,
mixed -use residential & retail densities, and close proximity to the subject property within the Civic
Center/Health District submarket.
In conclusion, a price per square foot of site area, price per dwelling unit and price per FLR (Floor -Lot -
Ratio) within the overall unadjusted and narrow adjusted range is considered most appropriate for valuing the
subject property, calculated as follows:
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
7 of 11
CONCLUDED LAND VALUE
$ PSF of Site Site SF Total
$75.00 x 42,309 = $3,173,175
$95.00 x 42,309 = $4,019,355
$ PSF of FLR Zoning FLR (SF) Total
$13.00 x 211,545 SF = $2,750,085
$18.00 x 211,545 SF = $3,807,810
$ Per Unit Residential Unit Density Total
$24,000 x 146 Units = $3,496,612
$30,000 x 146 Units = $4,370,764
Indicated Value As Is: $3,600,000
Indicated Value PSF of Site Area: $85.09
Indicated Value PSF of FLR $17.02
Compiled by CBRE
The review appraiser's independent analysis and methodology utilizing value per square foot of site area,
FLR and per dwelling unit is considered to be most relevant when valuing high density, mixed -use zoned
land, such as the subject property.
RECONCILIATION:
YES NO N/A
1. Value Estimate "As Is" is appropriately analyzed: X
2. Any other value estimates (i.e. liquidation, prospective) included and analyzed: X
3. Final conclusions and analyses appears to be reasonable: X
4. If included, exposure time estimate appears appropriate: X
Comments: The appraisers concluded a market value As Is as of February 24, 2016 of $5,300,000 on Page
58 of the report. Overall, the value conclusion performed in the report is above the review appraisers
independent approach and conclusions of value. In addition, the selection of comparable sales and weighted
emphasis on a pending sale list price is a flawed methodology when valuing land via the sales comparison
approach.
The review appraiser independently reconciled the subject property land value via the Sales Comparison and
estimated the market value As Is, as of June 23, 2016 of $3,600,000.
Included/Adequate
Reviewer's Conclusions & Recommendations:
YES NO N/A
1. Appraisal appears to conform to FIRREA Regulations: X
2. Appraisal appears to conform to Uniform Standards of Professional Appraisal Practice: X
3. Appraisal appears to conform to Uniform Appraisal Standards of Federal Land Acquisitions: X
4. Appraisers value conclusions are adequately supported X
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
8 of 11
Considering the Scope of Work which this review is made — Appraisal 1:
Included/Adequate
YES NO N/A
1. Completeness of the materials under review: X
2. The adequacy and relevance of the data used: X
3. The propriety of the adjustments: X
4. The methods and techniques SR 3-1 (0: X
5. Appropriateness and reasonableness of the analysis, opinions, and conclusions SR 3-1(g): X
Review Appraiser Recommendations:
1. Accept appraisal, as is:
2. Accept appraisal, as corrected by the appraiser:
3. Accept appraisal, as revised by the appraiser:
4. Accept appraisal, as revised by the reviewer:
5. Appraised Value not substantiated -recommend that additional appraisal be prepared:
6. Reject appraisal due to significant errors and inconsistencies (as described below):
X
Comments: Based on the data and analysis provided by the appraiser, the appraised value of the subject
property is overstated, and not supportable or credible. Therefore, the review appraiser has developed an
independent and recommended for the intended use & users.
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
9 of 11
CLIENT AND INTENDED USER OF THE REVIEW: ISI Professional Services and the U.S. Department of
Veterans Affairs (VA).
INTENDED USE AND PURPOSE OF REVIEW: The intended use and purpose of this review is to evaluate and
determine the appraisal report's compliance to USPAP and UASFLA standards. The report was also reviewed to
determine the adequacy of the appraisal report, including its scope, methododologies, accuracy, and assess the
credibility of the conclusions. This review document is intended for use by ISI Professional Services and the U.S.
Department of Veterans Affairs (VA).
SCOPE OF THE REVIEW: In compliance with the Uniform Standards of Professional Practice (USPAP Standards
Rules 3-1 and 3-2) and the Uniform Appraisal Standards for Federal Land Acquisitions, the following disclosure
regarding the review process conducted regarding the appraisal prepared on the subject property, in addition to reporting
the results of the review included the following:
1. Analyze appropriate areas and information furnished in the appraisal report; thus, the reviewer is able to
provide an opinion on the appraisal's reasonableness and its conformity to the regulating bodies based upon
the data presented.
2. Quality control and bank compliance with appraisal review regulations.
3. Appropriateness of market data, techniques, and accuracy in the appraisal.
4. Checking reasonableness of analysis and conclusions.
5. Checking for conformity to USPAP and UASFLA standards;ensuring that report is credible.
6. This review is based only on the information contained in the appraisal unless otherwise noted.
7. This is a desk review only; no physical inspection of the subject property or comparables was made.
8. This review assignment does require my own opinion of value. If there are errors found in the report or
questionable methodologies were used, they will be reported in this review with appropriate comments and
recommendations.
CERTIFICATION SR3-6
I certify that, to the best of my knowledge and belief:
• the facts and data 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 my personal, impartial and unbiased professional analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of the work under review and no personal
interest with respect to the parties involved.
• The reviewer has not provided any appraisal -related services on this property in the three years prior to accepting this
assignment.
• I have no bias with respect to the property that is the subject of the work under review or to the parties involved with
this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in this
review or from its use.
• My compensation for completing this assignment is not contingent upon the development or reporting of
predetermined assignment results or assignment results that favors the cause of the client, the attainment of a stipulated
result, or the occurrence of a subsequent event directly related to the intended use of this appraisal review.
• My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the
Uniform Standards of Professional Appraisal Practice and the Uniform Appraisal Standards for Federal Land
Acquisitions.
• I have not made a personal inspection of the subject of the work under review.
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
10 of 11
• No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the person signing this
certification.
• The use of this review report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.
• As of the date of this review, I have completed the requirements of the continuing education program of the Appraisal
Institute.
• The reviewer has indicated in his review those parts found acceptable or satisfactory in addition to those found
deficient (if any)
Date: 6/23/2016
Stuart J. Lieberman, MAI
State of Florida Certified General Real Estate Appraiser
License #RZ1074; Expiration 11/16
My signature on this review and/or my approval or rejection of the appraisal report, which is the subject of this review,
does not in any way signify my agreement as a cosigner to the appraisal report nor does it signify my approval of the
concluded value. My conclusions in this review are based on an analysis of the appraiser's work product, of the
appraiser's assumptions, and the appraisal's compliance with USPAP rand UASFLA requirements.
Assumptions and Limiting Conditions
This review has been made with the following general assumptions:
1. This review report is intended to provide an opinion of the appraisal's conformance in accordance with regulations,
standards and guidelines, and to determine the appraisal's acceptability with regard to adequate support of the value
conclusion.
2. This review report is based on information and data contained in the appraisal report which is the subject of this
review.
3. It is specifically assumed that the data included in the report is the most applicable data available, as of the date of
this report, for determining the valuation for the subject.
4. This review was made in the context of market conditions as of the effective date of the report/value.
5. It is also assumed that the data used in the analysis of the appraisal report is factual and accurate.
6. All of the assumptions and limiting conditions (typical and otherwise) contained in the appraisal report, by
reference, are made part of this review, unless otherwise stated herein.
7. No responsibility is assumed for the legal description or for matters that pertain to legal title considerations including
easements, encroachments or encumbrances. I have not reviewed a title policy and I am not an expert in this area. Legal
counsel should be retained to verify these aspects of the subject property.
8. If a discounted cash flow is included, it is assumed that the appraiser modeled the Argus lease -by -lease analysis
program properly. The Argus computer disks have not been provided to the reviewer and this should not be considered
an audit of the lease -by -lease analysis. This type of audit is beyond the scope of this review.
9. I reserve the right to consider any new or additional information or data, which may subsequently become available and
may revise the opinions or conclusions of the review if such data and information indicates the need for required
change(s).
10. The reviewer and CBRE make no express or implied representation or warranty of any kind, and expressly disclaim
any liability to any person or entity with respect to the appraisal report that is the subject of this review.
Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125
11of11
APPRAISAL REVIEW
PROPERTY:
A 42,309 SQUARE FooT LAND PARCEL
PROJECT No.: 2342.061
1455-1495 N. W. 17TH STREET, 1700 N.W. 14TH AVENUE
& 1700-1799 N.W. 15TH AVENUE
MIAMI, FLORIDA
PREPARED FOR:
U.S. DEPARTMENT OF VETERANS AFFAIRS
RICHARD BANCHOFF
ISI PROFESSIONAL SERVICES
REVIEW OF APPRAISAL PREPARED BY:
WARONKER & ROSEN
5730 S.W. 74TH STREET, SUITE 200
SOUTH MIAMI, FLORIDA 33143
DATE OF REVIEW:
MARCH 30, 2016
PREPARED BY:
QUINLIVAN APPRAISAL, P.A.
7300 N. KENDALL DRIVE - SUITE 530
MIAMI, FLORIDA 33156
QUINLIVAN APPRAISAL
A PROFESSIONAL ASSOCIATION
7300 NORTH KENDALL DRIVE, SUITE 530
MIAMI, FLORIDA 33156
J. Mark Quinlivan, MAI
State Certified General Appraiser
RZ 0000112
April 1, 2016
Richard Banchoff, Legal Counsel
ISI Professional Services
1201 l5th Street, NW
Suite 200
Washington, DC 20005
RE: Appraisal Review of
Telephone (305) 663-6611
Fax (305) 670-4330
jmqmai@aol.com
Josh L. Rosen, MAI
Alejandro C. Puente
Waronker & Rosen, Inc.
5730 S. W. 74`h Street, Suite 200
South Miami, Florida 33143
Dear Mr. Banchoff:
Thomas F. Magenheimer, MAI
State Certified General Appraiser
RZ 0000553
In accordance with Purchase Order No. 1109, I have prepared this Appraisal Review on an
appraisal report prepared by the above referenced appraisal firm. This Appraisal Review was
prepared to conform to the requirements of the Uniform Standards of Professional Appraisal
Practice (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisitions.
The subject property is a 0.97 acre parcel of land located at 1455-1495 N.W. 17th Street, 1700
N.W. 14th Avenue & 1700-1799 N.W. 15th Avenue, Miami, Miami -Dade County, Florida. The
property is currently vacant land.
I hereby certify that I have no present or contemplated future interest in the subject of this
Appraisal Review. I have investigated all of the factors affecting the Market Value and all
information used was true and correct to the best of my knowledge.
To the best of my knowledge, the opinions and conclusions were developed and this Appraisal
Review was prepared in accordance with the standards and reporting requirements of the
Uniform Appraisal Standards for Federal Land Acquisitions.
The scope of the Appraisal Review involved a desk review of the Appraisal Report and the
completion of the following review analysis. The review appraiser has not inspected the subject
property, nor the sales utilized in the appraisal.
Richard Banchoff, Legal Counsel
ISI Professional Services
April 1, 2016
Page 2
As a result of my investigation, I have concluded that the appraisal is in compliance with the
Uniform Standards of Professional Appraisal Practice (USPAP). The reviewer agrees with the
appraisal methods and techniques utilized in the Appraisal Report and mathematical calculations
in the reports were checked and found to be accurate. The market value estimate is considered
supported and reasonable. The appraisal requires a few minor revisions to be technically
compliant with the Uniform Appraisal Standards for Federal Land Acquisitions. The
requirements not addressed in the appraisal are as follows:
Section A-4 -
The appraisers' certification did not include a statement reporting if the property
owner or representative was given an opportunity to accompany the appraiser
on the property inspection;
Section A-6 - The appraisal did not include a statement identifying the person taking the
photographs of the subject property;
Section A-13a - The appraisal did not include a statement concerning the existence or non-
existence of commercially valuable mineral deposits;
Section A-13e - The appraisal did not include a ten-year record of all sales of the property under
appraisal. The appraisal did include a recent sales history, but did not state if
there had been any additional sales in the ten year period immediately preceding
the acceptance of the assignment.
The exclusion of the aforesaid requirements of the Uniform Appraisal Standards for Federal
Land Acquisitions is considered minor and would not significantly impact the credibility of the
appraisal report. Therefore, I would recommend that the intended users of the appraisal accept
the appraisal report for its intended use, after the revision of the few minor technical issues stated
herein.
Respectfully submitted,
Thomas F. Magenheimer, MAI
State -Certified General Appraiser
Certification Number: RZ0000553
TFM/jb
(16-011)
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
Executive Summary
TO:
FROM:
Appraisers Under Review:
Richard Banchoff, Legal Counsel
ISI Professional Services
1201 l5th Street, NW
Suite 200
Washington, DC 20005
Thomas F. Magenheimer, MAI
7300 N. Kendall Drive, Suite 530
Miami, Florida 33156
305-663-6611
Waronker & Rosen, Inc.
Josh L. Rosen, MAI
Alejandro C. Puente
Project Name: VA Land Acquisition
Project Number: 2342.061
Special Limiting Conditions: None
Hypothetical Conditions: None
Effective Date of Appraisal: February 24, 2016
Date of Report: March 23, 2016
Property Address: 1455-1495 N.W. 17th Street, 1700 N.W. 14th Avenue
& 1700-1799 N.W. 15th Avenue, Miami, Florida
Owner:
City of Miami
c/o Department of Public Facilities
444 S. W. 2nd Avenue
Miami, FL 33130
Property Description: Vacant land parcel
Land Size: 0.97 acres
Present Use: Vacant
Interest Appraised: Fee Simple
Final Estimate of Value: $5,300,000
1
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
S.R. 3-2-a
Client
The client is U. S. Department of Veterans Affairs (VA) and ISI Professional Services.
Intended Users
U. S. Department of Veterans Affairs (VA) and ISI Professional Services are the intended users
of this appraisal review report.
Intended Use
The intended use of this appraisal review is for the selection of an appraisal for a possible
acquisition of the property.
Purpose of the Assignment
The purpose of this appraisal review is to determine if the content, analysis, and conclusions
contained within the appraisal report being reviewed is in compliance with all applicable
standards and contract requirements. The purpose does not include the development of a separate
opinion of value about the subject property of the work under review.
S.R. 3-2-b
Subject of the Appraisal Review Assignment - s.R.3-1(b)(i)
The subject of this review is a 0.97 acre vacant land parcel located at 1444-1495 N.W. 17th
Street, 1700 N.W. 14th Avenue & 1700-1799 N.W. 15th Avenue, Miami, Miami -Dade County,
Florida, prepared by:
Josh L Rosen, MAI
State Certified General Appraiser #RZ395
Alejandro C. Puente
State Certified General Appraiser #RZ3697
Waronker & Rosen, Inc.
5730 S.W. 74th Street -Suite 200
South Miami, FL 33143
Date of the Review - S.R.3-1(b)(ii)
The date of this review assignment is April 1, 2016.
2
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
Property and Ownership Interest Appraised (if any) in the Work Under
Review- S.R.3-1(b)(iii)
The appraisers estimated the market value of the fee simple interest of the property subject to no
hypothetical conditions.
Date of the Work Under Review - S.R.3-1(b)(iv)
The date of the report that is the subject of this assignment is March 23, 2016.
Effective Date of the Opinion in the Work Under Review - s.R.3-1(b)(iv)
The effective date of the opinion (date of valuation) of the work under review is February 24,
2016.
Appraiser Who Completed the Work Under Review - S.R.3-1(b)(v)
The appraisers who completed the work under review are Josh L. Rosen, MAI, State Certified
General Appraiser RZ395 and Alejandro C. Puente, State Certified General Appraiser RZ3697.
Their business office is 5730 S.W. 74t1i Street, South Miami, Florida, 33143.
S.R. 3-2-c
State the Nature, Extent, and Detail of the Review (Scope)
As previously stated, the purpose of this appraisal review is to determine if the content, analysis,
and conclusions contained within the appraisal report being reviewed is in compliance with all
applicable standards and contract requirements. The purpose does not include the development
of a separate opinion of value about the subject property of the work under review.
The Appraisal Review consists of a desk review of the appraisal report. The subject property
and the sale properties were not inspected for this assignment: however, the review appraiser is
familiar with the subject property and the sale properties.
Within the Appraisal Review the compliance of the appraisal with the Uniform Standards of
Professional Appraisal Practice (USPAP) was considered as well as compliance with the
standards and reporting requirements of the Uniform Appraisal Standards for Federal Land
Acquisitions.
Standard Rule 3 of the Uniform Standards of Professional Appraisal Practice (USPAP) has been
carefully considered and applied in the development and communication of this Technical
Review Memorandum.
3
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
S.R. 3-2-d
Completeness of the Material Under Review- S.R.3-1(d)
The material under review is considered complete within the scope of the work applicable to this
assignment.
The reviewer noted four minor technical issues required by the Uniform Appraisal Standards for
Federal Land Acquisitions that were not addressed in the appraisal. The requirements not
addressed in the appraisal are as follows:
Section A-4 —
The appraisers' certification did not include a statement reporting if the property
owner or representative was given an opportunity to accompany the appraiser
on the property inspection;
Section A-6 - The appraisal did not include a statement identifying the person taking the
photographs of the subject property;
Section A-13a - The appraisal did not include a statement concerning the existence or non-
existence of commercially valuable mineral deposits;
Section A-13e - The appraisal did not include a ten-year record of all sales of the property under
appraisal. The appraisal did include a recent sales history, but did not state if
there had been any additional sales in the ten year period immediately preceding
the acceptance of the assignment.
The exclusion of the above stated requirements of the Uniform Appraisal Standards for Federal
Land Acquisitions from the appraisal are considered minor and would not significantly impact
the credibility of the appraisal. However, these items should be corrected in the appraisal to be
compliant with the Uniform Appraisal Standards for Federal Land Acquisitions.
Adequacy and Relevance of the Data & Propriety of Adjustments- S.R.3-1(e)
The data summarized in the appraisal report under review was adequate. In the Sales
Comparison Approach, the appraiser made adjustments to denote the comparability of each sale
to the subject property. The quality of the data of the land sales was as good as can be expected
based on the location and physical characteristics of the subject site. The sale sites are located in
the same market area as the subject property.
The appraiser analyzes and adjusts the sales considering the location, physical characteristics and
regulatory issues impacting the subject property. Six sales of properties with similar
characteristics to the subject property are presented and analyzed. The appraiser made
qualitative adjustments to denote the comparability of each sale to the subject property.
4
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
For the most part, the adjustment process of the appraiser was logical and appropriate. It should
be understood that the sales occurred in a period with increasing market conditions and the unit
prices of the sales do not form a tight pattern. The sales are adequately analyzed and adjusted to
form a credible opinion of value.
The methodology utilized to estimate the value of the site is considered appropriate. The number
of sales utilized and the quality of the sales appear to be the best available.
Appropriateness of the Appraisal Methods - s.R.3-1(0
The appraiser utilized the Sales Comparison Approach to value the subject property. The
appraisal employs a direct sales comparison methodology, which is appropriate since comparable
sales are available in the market area. The property is not improved with a building, so a Cost
Approach to value is not appropriate. The property is reported to not be leased and is located in
an area where vacant land sites are typically not rented. Therefore, an Income Approach to value
is not considered appropriate. The appraisers applied the appraisal methods relied upon by
market participants.
The appraisal methods and techniques used in the development and communication of the
estimate of market value are appropriate.
Reasonableness of Analysis, Opinions and Conclusions - S.R.3-1(g)
In this report, one of the three accepted appraisal techniques was utilized. The value estimates
indicated by these approaches are as follows:
Income Approach Not applicable
Sales Comparison Approach $5,300,000
Cost Approach Not Applicable
Final Estimate of Value $,000
The reviewer agrees with the appraisal methods and techniques utilized in the Appraisal Report
and mathematical calculations in the report were checked and found to be accurate. The
presentation and analysis of the market data is considered to adequate to form a credible opinion
of market value.
S.R. 3-2-e
Other Known Pertinent Information
N/A
5
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
Recommendation
The appraisal under review is complete; the analyses and conclusions are adequate, relevant,
appropriate, and reasonable. The report complies with USPAP. The report requires four minor
revisions to be compliant with the Uniform Appraisal Standards for Federal Land Acquisitions.
The appraisal under review is recommended for use by the intended users for the stated intended
use after the addition of the four minor revisions noted.
LIMITING CONDITIONS
1. Possession of this Technical Review Memorandum, or a copy thereof, does not carry with
it the right of publication.
2. This Technical Review Memorandum is intended solely for the use of the Marquis Bank.
Neither all nor any part of the contents of this Technical Review Memorandum shall be
disseminated to the public through advertising, public relations, news, sales, or other media
without the prior written consent and approval of the reviewer.
3. The reviewer, by reason of this Technical Review Memorandum is not required to give
further consultation or testimony, or to be in attendance in court with reference to the
properties that are the subject of this review, unless arrangements have been previously
made.
4. This Technical Review Memorandum constitutes a limited assignment and should not be
construed as an appraisal. The assignment did not include the reviewer to form an opinion
of value about the subject properties of the work reviewed.
5. The analysis, opinions and conclusions in the Technical Review Memorandum are based
solely on the data, analysis, and conclusions contained in the appraisal reports under
review. It is assumed that these data are representative of existing market data. No attempt,
unless otherwise stated, has been made to obtain additional market data for this review.
6. All analysis and conclusions expressed by the reviewer are limited by the scope of the
review process as defined herein.
6
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
S.R. 3-2(f)
CERTIFICATION
I certify that, to the best of my knowledge and belief:
- the facts and data reported by the reviewer and used in the review process
correct.
are true and
- the analyses, opinions, and conclusions in this review report are limited only by the
assumptions and limiting conditions stated in this review report and are my personal,
impartial, and unbiased professional analyses, opinions, and conclusions.
- I have no present or prospective interest in the properties that are the subject of this report
and no personal interest with respect to the parties involved.
- I have no bias with respect to the properties that are the subject of this report or to the
parties involved with this assignment.
- my engagement in this assignment was not contingent on developing or reporting
predetermined results.
- my compensation is not contingent on an action or event resulting from the analyses,
opinions, or conclusions in this review or from its use.
- my analyses, opinions, and conclusions were developed and this review report was
prepared in conformity with the Uniform Standards of Professional Appraisal Practice and
the Uniform Appraisal Standards for Federal Land Acquisitions.
- I have not made a personal inspection of the subject property of the work under review.
- no one provided significant appraisal, appraisal review, or appraisal consulting assistance
to the person signing this certification.
- the reported analyses, opinions and conclusions were developed, and this report has been
prepared, the use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
- as of the date of this report, I have completed the requirements of the
education program of the Appraisal Institute.
Thomas F. Magenheimer, MAI
State -Certified General Appraiser
Certification Number: RZ0000553
continuing
7
Last Update: December2011
Page 3 of 4
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
SCOPE OF WORK - REVIEW APPRAISAL
Land Acquisition Due Diligence
For 0.97 acres of land in Miami -Dade County, Miami, FL
"EXHIBIT A"
CERTIFICATION OF APPRAISER
The undersigned hereby certifies to the United States of America and the U.S. Department of
Veterans Affairs:
1. That on Nu\ , I visually inspected the property and comparable sales
selected, analyzed and described in the attached appraisal. I am not aware of any
additional sales data or additional information that may impact the value of the subject
property.
2. That I have no direct or indirect present or contemplated future personal interest in the
property described therein or in any benefit from the acquisition, and I have no personal
interest or bias with respect to the parties involved.
3. That the facts and data reported by the review appraiser and used in the review process
are based on that information provided by the author of the attached appraisal report and any
specialty reports, and that this information is considered true and correct. No one has provided
significant professional assistance to the person signing this review report.
4. That the analyses, opinions, and conclusions in this review report are limited only by the
assumptions and limiting conditions stated in this review report, and are my personal, unbiased
professional analyses, opinions and conclusions. I have no bias with respect to the property that
is the subject of this review or the parties involved.
S. That my determination has been reached independently based on the appraisal without
any collusion or direction, and my compensation is not contingent on an action or event
resulting from the analyses, opinions, or conclusions in, or the use of, this review report. This
review report is based on the data and information provided in the actual appraisal report and
any specialty reports used therein.
6. That my analyses, opinions, and conclusions were developed and this review report
has been prepared in conformity with the Uniform Standards of Professional Appraisal
Practice and are based on the scope of work described herein.
7. That I have given consideration in this review to the value of the part taken, and
damages and/or benefits to the remainder, if any, to the extent allowed under Federal or state
statutes; and that as near as can be determined noncompensable items of damage under
8
Last Update: December 2011
Page 4 of 4
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
SCOPE OF WORK - REVIEW APPRAISAL
Land Acquisition Due Diligence
For 0.97 acres of land in Miami -Dade County, Miami, FL
Federal or state law have not been included in appraisal.
8. In the event that I have completed my own independent research of the subject
property and any additional information and data or I have documented the attached appraisal,
this will be so stated in the accompanying review appraisal report. Otherwise, this review has
been based on only the data and information provided by the appraiser of record for this
appraisal report.
Name: Thomas F. Magenheimer, MAI
Title: Quinlivan Appraisal, P. A.
Date: 3/30/16
9
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
QUALIFICATIONS OF THE APPRAISER
THOMAS F. MAGENHEIMER
Experience:
11/84 - Present QUINLIVAN APPRAISAL, P.A.
7300 N. Kendall Drive, Suite 530
Miami, Florida 33156
1/07 — Present
Education:
T. F. MAGENHEIMER APPRAISAL, INC.
7300 N. Kendall Drive, Suite 530
Miami, Florida 33156
University of Richmond, Richmond, Virginia
BA - Bachelor of Arts in History (1982)
Professional Affiliations:
Member of the Appraisal Institute (MAI No. 09166)
Real Estate Salesman - State of Florida - Certificate No. 0344882
Certified General Appraiser, State of Florida, License No. RZ0000553
Member Sigma Alpha Epsilon Fraternity
Qualified as an Expert Witness in the Following Courts:
Miami -Dade County Circuit Court
Broward County Circuit Court
U. S. Bankruptcy Court
Other Activities:
Admissions Committee - South Florida -Caribbean Chapter of the Appraisal Institute - (1992)
Newsletter Editor - South Florida -Caribbean Chapter of the Appraisal Institute - (1991 - 1995)
President - South Florida -Caribbean Chapter of the Appraisal Institute - (1996)
Board of Trustees - Palmer -Trinity School (1989 - 1993)
10
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
Thomas F. Magenheimer in affiliation with Quinlivan Appraisal P.A. has prepared
Appraisal Reports for the following:
Institutions and Corporations:
AT&T
Archdiocese of Miami
Atlantic Security Bank
The Bank of America
Bank United
Barry University
Bessemer Trust Company
California Bank and Trust
Chevron Oil Company
Chase Manhattan Bank
Chemical Bank
Citibank
Citrus Bank
City National Bank of Miami
Coamerica Bank
Coconut Grove Bank
Commerce Bank
Commercial Bank of Florida
Consolidated Bank
Colonial Bank
County National Bank
Eagle National Bank
Eastern National Bank
Equitable Bank
Espirito Santo Bank
Farm Credit of South Florida
Fidelity Bank
First International Bank
First National Bank of South Miami
Florida International University
First Nationwide Bank
Florida Memorial College
Florida Power and Light Company
Florida Rock Industries
Great Eastern Bank of Florida
Greyhound Lines
HSBC
Hemisphere National Bank
Intercontinental Bank
International Bank of Miami, N.A.
11
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
LaSalle National Bank
Marine Midland Bank
McDonalds Corp.
Mellon United National Bank
Metro Bank
Miami -Dade County Community College
Miami -Dade Water and Sewer Authority
Northern Trust Bank of Florida
Ocean Bank
Pacific National Bank
Pan American Bank
Pointe Bank
Shell Oil Company
South Trust Bank
SunTrust Bank
TotalBank
Trade National Bank
Trust for Public Lands
UniBank
Union Planters National Bank
University of Miami
Wachovia
Wal-Mart
YMCA
Governmental Agencies:
City of Aventura
City of Coral Gables
City of Hialeah
City of Miami
City of Miami Parking Authority
City of Miami Beach
City of Miramar
City of North Bay Village
City of North Miami Beach
City of South Miami
City of Sunny Isles Beach
Miami -Dade County Aviation Department
Miami -Dade County Department of Development & Facilities Management
Miami -Dade County HUD
Miami -Dade County Property Appraisal Adjustment Board
Miami -Dade County Public Schools
Miami -Dade County Public Works Department
Miami -Dade County Transportation Administration
12
QUINLIVAN APPRAISAL, P.A.
REAL ESTATE APPRAISAL
TECHNICAL REVIEW
Miami -Dade Water & Sewer Department
South Florida Water Management District
State of Florida, Attorney General's Office
State of Florida, Department of Community Affairs
State of Florida, Department of Corrections
State of Florida, Department of Environmental Protection
State of Florida, Department of Insurance
State of Florida, Department of Rehabilitation and Liquidation
State of Florida, Department of Transportation
Town of Golden Beach
United States Army Corps of Engineers
United States Department of Justice
United States Department of Commerce
United States Department of the Interior
United States General Services Administration
Village of Islamorada
Village of Key Biscayne
Village of Pinecrest
Law Firms:
Akerman Senterfitt
Greenberg, Traurig
Daniels, Kashton, Downs and Robertson
Holland and Knight, LLP
Shutts & Bowen
Ruden McClosky, LLP
Steel, Hector & Davis, LLP
Weiss, Serota, Helfman, Pastoriza, Guedes, Cole and Boniske, P.A.
Types of Properties Appraised:
Single Family Residences
Apartment Buildings
Office Buildings
Retail Stores
Shopping Centers
Condominium Apartment Buildings
Golf Courses
Residential Subdivisions
Automobile Dealerships
Vacant Land
Hotel/Motels
Warehouses
Nursing Homes
Mobile Home Parks
Schools
Service Stations
Marinas
Wetlands
13
Appraisal Report
Prepared for
The U.S. Department of Veterans Affairs (VA)
Mr. Richard Banchoff, Legal Counsel
ISI Professional Services
Property Appraised
Vacant Mixed -Use Zoned Land
Folio Nos. 01-3135-087-0010 and -0012
1455-1495 NW 17th Street, 1700 NW 14th Avenue
and 1700-1799 NW 15th Avenue
Miami, FL 33130
P.O. # 1108/ISI
Project # 2342.061
Task Order # VA101F-16-J-2522
Date of Valuation
February 24, 2016
Prepared by
Waronker & Rosen, Inc.
5730 SW 74t1 Street, Suite 200
South Miami, Florida 33143
JOSH L. ROSEN, MAI
ALEJANDRO C. PUENTE, APPRAISER
File # 8398
Waronker & Rosen, Inc.
Real Estate Appraisers and Consultants
Miami -Dade County Office
5730 SW 74th Street, Suite 200
South Miami, Florida 33143
Broward / Palm Beach County Office
10191 W. Sample Road, Suite 211-A
Coral Springs, Florida 33065
Lee H. Waronker, MAI, SRA Phone: (305) 665-8890 / Fax: (305) 665-5188 Josh L. Rosen, MAI
lee@waronkerandrosen.com
www.waronkerandrosen.com josh@waronkerandrosen.com
March 11, 2016
Mr. Richard Banchoff, Legal Counsel
ISI Professional Services
1201 15th Street, NW, Suite 200
Washington, DC 20005
Re: Vacant Mixed -Use Zoned Land
1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW 15th Avenue
Miami, FL 33130
WRI File No. 8398
PO# 1108 / ISI
Project # 2342.061
Task Order # VA101F-16-J-2522
Dear Mr. Banchoff:
We have prepared an appraisal report of the above referenced property for the purpose of
estimating the As Is market value of the fee simple interest as of February 24, 2016. The terms
market value and fee simple interest are defined in the pages of this report. This report has been
prepared based on the scope of work which is detailed on a following page. The reader of the
appraisal is strongly advised to read the scope of work so as to understand the scope of this
appraisal.
This report is intended for use only by the client and intended users as noted herein. No additional
intended users are identified or intended. Use of this report by others is not intended by the
appraiser. No one else, or any other entities, should rely on this appraisal other than those noted
herein.
The subject property is comprised of two parcels located along the east side of NW 15th Avenue,
at approximately NW 18th Street in the city of Miami, Miami -Dade County, Florida. This area is
known as the Civic Center, and is home to three major hospitals (Jackson Memorial Hospital, the
Veterans Administration (VA) Hospital and the University of Miami Medical Center) as well as
numerous Government Buildings. The site consists of 42,309 square foot (0.97 acres). The Miami -
Dade County Folio tax numbers are 01-3135-087-0010 and 01-3135-087-0012; and the property
has multiple addresses (1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW
15th Avenue). Zoning on this site is T6-8-O, Urban Core Open Transect Zone by the city of Miami,
FL.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants I
Mr. Richard Banchoff, Legal Counsel
ISI Professional Services
March 11, 2016
Although requested, neither a survey nor any other items were provided for the valuation. Two
surveys were located in the Miami -Dade County Public Records, within the deeds transferring
ownership of the subject property. They are shown within this appraisal. Any deviation from the
assumptions used herein will likely result in a change of value.
As a result of our investigation, it is our opinion that the As Is market value of the fee simple
interest as of February 24, 2016, is in the amount of
FIVE MILLION THREE HUNDRED THOUSAND DOLLARS
($5,300,000)
Following the table of contents is the scope of work and the certification. The reader is advised to
review the assumptions and conditions which follow the certification to understand the limitations
applicable to this appraisal.
Very truly yours,
MAI
'fled G- eral Real Estate Appraiser
e No. RZ395
'1J
1
Alejandro ' i ;i to
State-Certifi a General Real Estate Appraiser
License No. RZ3697
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 2
Table of Contents
LETTER OF TRANSMITTAL 1
TABLE OF CONTENTS 3
SCOPE OF WORK 4
CERTIFICATION 5
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 7
INTRODUCTION 9
SUMMARY OF PERTINENT DATA 10
MIAMI-DADE COUNTY MAP 1 1
PLAT MAP 12
AERIAL PHOTOGRAPH 13
AERIAL PHOTOGRAPH (CLOSE-UP) 14
SURVEY 15
SURVEY 16
SUBJECT PHOTOGRAPHS 17
DESCRIPTION & ANALYSES 25
PURPOSE OF THE APPRAISAL 26
CLIENT, INTENDED USER AND USE OF THE APPRAISAL 26
DEFINITION OF REAL PROPERTY INTEREST APPRAISED 26
DEFINITION OF MARKET VALUE 27
LOCATION AND ADDRESS 28
LEGAL DESCRIPTION 28
OWNER OF RECORD 28
HISTORY OF THE SUBJECT PROPERTY 28
SITE DATA 29
ZONING 29
FLOOD ZONE 29
REAL ESTATE ASSESSMENT AND TAXES 30
CITY OF MIAMI DESCRIPTION 32
NEIGHBORHOOD OVERVIEW 35
DESCRIPTION OF THE SITE IMPROVEMENTS 35
SUPPLY AND DEMAND / MARKET CONDITIONS 36
TYPICAL PURCHASER OF THE SUBJECT 37
HIGHEST AND BEST USE 38
APPRAISAL PROCESS 40
COST APPROACH 41
INCOME CAPITALIZATION APPROACH 42
SALES COMPARISON APPROACH 43
RECONCILIATION OF VALUE 59
ADDENDA 60
COUNTY AREA DESCRIPTION 61
FLOOD ZONE MAP 67
ENGAGEMENT LETTER 69
APPRAISER LICENSES 74
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 3
Scope of Work
The appraisal problem herein is to estimate the As Is market value of the fee simple interest of the
subject property. The only approach used in this appraisal is the sales comparison approach. The
income capitalization approach and the cost approach are not applicable to the valuation of the
subject property.
All appraisals begin by identifying the appraisal problem. Data on the subject property can be
derived from various sources including but not limited to, the property owner, the county property
appraiser' s office, recorded plats and surveys. When possible, more than one source is utilized to
confirm data and the data sources are acknowledged. Land size is based on surveys (when
available), public records and recorded plats. Land measurements are not performed.
Valued herein is vacant land which can be valued by the following methods:
1. Sales Comparison Approach
2. Market Extraction
3. Allocation
4. Land Residual
5. Ground Rent Capitalization
6. Subdivision Analysis
The sales comparison approach was used herein and was considered the most applicable method
in the valuation of the subject property. A search was performed for the sale of properties
considered comparable to the subject property. Research of comparable sales and market data
include, but is not limited to using the following data sources:
CoStar
Imapp
Newspaper clippings
Board of Realtors' Multiple Listing Service
National Multiple Listing Service
Loopnet. com
Comparable sales are inspected and the transactional information is reported. Sale prices are from
public records and are typically confirmed with a party to the transaction, i.e. buyer, seller, real
estate agent, or closing attorney. All information is analyzed in processing the appraisal report and
as support for the estimated value.
The scope of work for this assignment has been described above and is to be typical for an
assignment of the nature of the subject appraisal problem.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 4
Certification
The undersigned does hereby certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
3. I 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.
4. I have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6. My 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.
7. My analyses, opinions and conclusions were developed, and this report has been prepared,
in conformity with the following requirements.
• Uniform Standards of Professional Appraisal Practice (USPAP)
• The Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute
• The State of Florida requirements for state -certified appraisers
• Uniform Appraisal Standards for Federal Land Acquisitions
8. I have complied with the USPAP Competency Rule.
9. This appraisal report sets forth all of the limiting conditions imposed by the terms of this
assignment or by the undersigned affecting the analyses, opinions and conclusions
contained in this report.
10. No one provided significant real property appraisal assistance to the person signing this
certification.
11. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives. Additionally, it is subject to review by the
state of Florida relating to review by the real estate appraisal subcommittee of the Florida
Real Estate Commission.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 5
12. As of the date of this report Josh L. Rosen, MAI has completed the continuing education
program of the Appraisal Institute.
13. As of the date of this report, Alejandro C. Puente has completed the Standard and Ethics
Education Requirements for Candidates of the Appraisal Institute.
14. I, Josh L. Rosen, MAI have made a personal inspection of the property that is the subject
of this report.
15. I, Alejandro C. Puente have made a personal inspection of the property that is the subject
of this report.
16. The estimated As Is market value of fee simple interest as of February 24, 2016, is in the
amount of $5,300,000.
17. Neither the undersigned, nor Waronker & Rosen, Inc. have performed any valuation or
professional services involving the subject property in any capacity, nor have we been
involved with the management, leasing, disposition, nor any similar service regarding the
subject property in the past three years.
Jo•
State
+w,F, os:'l, MAI
ertified eneral Real Estate Appraiser
ense No. RZ395
l
Alejandro ' Y4 me
State-Certifi d General Real Estate Appraiser
License No. RZ3697
Date of Report March 11, 2016
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 6
General Assumptions and Limiting Conditions
This appraisal report has been made with the following general assumptions:
1. No responsibility is assumed for the legal description or for matters pertaining to legal or
title considerations. Title to the property is assumed to be good and marketable unless
otherwise stated.
2. The property is appraised free and clear of any or all liens or encumbrances unless
otherwise stated.
3. Responsible ownership and competent property management are assumed.
4. The information furnished by others is believed to be reliable but, no warranty is given for
its accuracy.
5. All engineering studies are assumed to be correct. Any plot plans or illustrative material in
this report are included only to help the reader visualize the property.
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such
conditions or for obtaining the engineering that may be required to discover them. The
values estimated herein are subject to typical inspections such as roof, structural, and
termite, if applicable.
7. It is assumed that the property is in full compliance with all applicable federal, state and
local environmental regulations and laws unless the lack of compliance is stated, described
and considered in the appraisal.
8. It is assumed that the property conforms to all applicable zoning and use regulations and
restrictions unless a non -conformity has been identified, described and considered in the
appraisal.
9. It is assumed that all required licenses, certificates of occupancy, consents, and other
legislative or administrative authority from any local, state or national government or
private entity or organization have been or can be obtained or renewed for any use on which
the opinion of value contained in this report is based.
10. It is assumed that the use of the land and improvements is confined within the boundaries
or property lines of the property described and considered in the appraisal.
11. Unless otherwise stated in this report, the existence of hazardous materials, which may or
may not be present on the property, was not observed by the appraiser. The appraiser has
no knowledge of the existence of such materials on or in the property. The appraiser,
however, is not qualified to detect such substances. The presences of substances such as
asbestos, ureaformaldehyde foam insulation or other potentially hazardous materials may
affect the value of the property. The value estimated is predicated on the assumption that
there is no such material on or in the property that would cause a loss in value. No
responsibility is assumed for any such conditions, or for any expertise or engineering
knowledge required to discover them. The intended user is urged to retain an expert in this
field, if desired.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 7
12. The physical condition of the improvements, if any, described herein was based on visual
inspection. No liability is assumed for the soundness of structural members, since no
engineering tests were made of same.
13. Neither all nor any part of this appraisal report shall be disseminated to the general public
using the appraiser' s name or appraisal designation, without prior written consent of the
appraisers signing this appraisal report.
14. Authorization is not allowed for the out -of -context quoting from, or partial reprinting of,
this appraisal report.
15. By reason of the report, there is no requirement to testify with reference to the property
herein appraised, unless arrangements have been previously made.
16. The reader should be advised that our employment was not contingent on the appraisal
providing a minimum valuation, a specific calculation or the approval of a loan.
Additionally, we have complied with the USPAP Competency Rule.
Limiting Conditions:
1. The allocation of total value between land and improvements applies only under the
described utilization. The separate valuations for land and improvements must not be used
in conjunction with any other appraisal and are invalid if so used.
2. The Americans with Disability Act (ADA) became effective January 26, 1992. The
appraiser has not made a specific compliance survey and analysis of this property to
determine whether or not it is in conformity with the various detailed requirements of the
requirements of the ADA. It is possible that a compliance survey of the property and a
detailed analyses of the requirements of the ADA, could reveal that the property is not in
compliance with one or more of the act. If so, this fact could have a negative impact upon
the value of the property. Since the appraiser has no direct evidence relating to this issue,
possible noncompliance with the requirements of ADA was not considered in estimating
the value of the property.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 8
Introduction Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Introduction
Vtar
r
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at,t,ralaara
as
raaa ill sr -s
osen
I N IC"1,1 R PO R A T E D
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 9
Introduction Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Summary of Pertinent Data
Location:
Address:
Type of Use:
Zoning:
Census Tract:
Flood Zone:
Land Area:
Land Value:
Value by Cost Approach:
Value by Income Capitalization Approach:
Value by Sales Comparison Approach:
As Is Market Value Estimate of
the Fee Simple Interest:
Date of Valuation:
Date of Inspection:
Date of Report:
Along the east side of NW l5th Avenue, at
approximate NW 18th Street in the City of Miami,
Miami -Dade County Florida. This area is known as
the Civic Center, and is home to three major
hospitals (Jackson Memorial Hospital, the
Veterans Administration (VA) Hospital and the
University of Miami Medical Center) as well as
numerous Government Buildings.
1455-1495 NW 17th Street, 1700 NW 14th Avenue
and 1700-1799 NW 15th Avenue
Miami, FL 33130
Vacant mixed -use land
T6-8-O, Urban Core Open Transect Zone by the
city of Miami, FL
30.04
AE (Map 12086C0311L)
42,309 square feet (0.97 acres)
$5,300,000 ($125 per square foot)
Not applicable
Not applicable
$5,300,000
$5,300,000
February 24, 2016
February 24, 2016
March 11, 2016
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 10
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
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Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 11
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Plat Map
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 12
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Aerial Photograph
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 13
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Aerial Photograph (Close-up)
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 14
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Survey
(Folio 01-3135-087-0010)
TO ACCOMPANY LEGAL pt3C.R.'1ON
Scc lc = 100 —
PrA5t1
51C. ) mr.Fsm 5.C9t7'4iT.
'50.„]'
CI RTIFIEO TO: .
Wegner Square 1, LLC
Cittaanli NA.
la sue:tenors andlar aesgns, AT1I A
City of Miami
Blaxarg, Grayson, Kukoff d Strauss
First America" het
A portion of land meted in the N.W. St of Sermon 35, Toam1hip 53
Smith, Range 41 Ent,. Gty of Marna, Miami -Dade County, Flandao nW►e
Particularly deserted as follows;
LW i tf 51-REF
Begin at the Southwest carrier of Tract "A`, WAGNER SQUARE,
atmrdky tEl tr- plat thereinto as recorded in Plat Book 162, Page 66, of
the Public Records of faarnr-Pacts Comity, Florida, thence S 69059104" E
along and nn the South line of said Tract "A" a distance of 57.23 Beet;
thence N 00' 1R'33" 1h' a di antor of 65.79 feet to pout; thence N
69649.27'• E a distance of 201,77 feat is a wont tierce c N no°1O 33' W
a Stance of 96.77 Feet toe point on the North ke of said Tied h";
therm N B9457'46" W ak all and an the North fine of saw Tl t "A" a
distance of 259.25 feet t6 the N.W. corner of said Tract "A'; thence 5
00' 1 S'48" E along the West 'the of said Traex "A" and the East Rigtrt of
way or t+.W. 15tts Avenue, a distant Cf 163.33 feet to the Point of
Be9anIny, sad lands containing 2 968 so. ft. more or Prigs.
•
WIT 9 WrYZI.
I1,6 REEIY CERTIFY: era VI Woe/MOBSte
alnenuu I{thn r Wndrd1 ei leI tar try the
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SUFFER d1317 .. drAdogneeaara
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A VES 090E11107
Pl- ESS ■ SURVEYOR AND
PPER No. 127. 6tate of Fb1 da
Arvarez. Aiaruanhae andAasoattae. Int
LB. Na 61967
551rweyvrs, Mappers ane Lad Planners
6701 [i.W. 107th Ayenu x?ag, Mawr- i ft 33173
Prole 905-220-2424 Farr 345 552-0191
Book259321Page2891 CFN#20070918434 Page 3 of 3
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants
15
Introduction Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Survey
(Folio 01-3135-087-0012)
SKETCH 10 AtvCOMPAWY LrGA1 Pr3CFJr TTOt4
5c,a1e 1 _ I rQ'
PI iik51 t I
P.P.- Y.,c
EOPAI 3t6 a 1171t1R6L:
.1e7.207141 1Z7Gerr k-n°�."9.65719:
h. N' I + [h .57al.frf
A partkm of land Waal M the N.W. 1,4t of Seccan 35, ToKssshp 53 South,
Ranee 41 East, Clty of Keret, Means DaE* Couray, Hoatda, more
ceolfeuterk described essMows:
Corfnerice et the Southwest career of Tree "A", WAGNER SQUARE,
araorang too the pi t thereof, as rsysrded in flat Book 112, Page 66, ex the
Pupsc Recurs 41 MIar 4.D s Fits da; thence S B9999134'` E alma
and on the South bed said Tract "A" a Stars 411723 N the Point
of Beglrerrtrirr thence fi 049.0133" W s dlsltenoe ce 61.79 feet to a pAnU
theme N 18 4 Z7 E d dEstange ct 2171.77 feet to a point; O1ence S
0C°1133* E s dbtance of lg.,* feet theme N 9! 53'l I4 W atop and on
the Seri be et said Tract `A" enc! Zs a:derasion theiant sa dtstrince rcf
201.77 feet to the Point of Beginning, "MI lents moth:V*113.341 mt. ft.
more or *es,
Alva+ee, Aiguesvivee ■ndAsaodrlx Inc
L & We. 3887
Surveyors, Mappers and tarriptanners
etsl Wet Was. {>fuh►e) UAant Yt+7a Ss
Plo7 346-21iu4241.a 7454b1$191
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 16
Introduction Vacant Land at 1455 NW 17` Street, Miami, FL 33125
Subject Photographs
(All photographs were taken on February 24, 2016)
1. Looking east across the site (Front/west elevation)
2. Looking west across the site (Rear/east elevation)
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 17
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
3. Looking southeasterly across the site
from the northwest corner
5. Looking west along the north side
of the subject property
4. Looking south along the west side
(street frontage) of the subject property
6. Looking southwesterly across the site
from the northeast corner
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 18
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
7. Looking south along the east side
of the subject property.
VA parking lot to the left.
9. Looking northwesterly across the site
from the southeast corner
8. Looking west along the south side
of the subject property
10. Looking northeasterly across the site
from the southwest corner
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 19
Introduction Vacant Land at 1455 NW 17' Street, Miami, FL 33125
11. Looking north along NW 15th Avenue.
The subject property is to the right.
12. Looking south along NW 15th Avenue.
The subject property is to the left.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 20
Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125
Appraiser Qualifications
JOSH L. ROSEN, MAI
Education: The University of Florida, Gainesville, Florida. School of Business
Administration.
Major in Real Estate and Urban Analysis. Awarded degree of Bachelor of
Business Administration, May 1983.
Affiliations: MAI Designation (No. 11800) awarded by the Appraisal Institute in 2001.
State -Certified General Real Estate Appraiser, State of Florida, License
Number RZ395, May 1990.
Experience: Appraised various types of properties, including:
Office Buildings
Warehouses
Shopping Centers
Apartment Bldgs.
Restaurants
Residences
Hotels and Motels
Amusement Park
Golf Courses
Industrial Buildings
Vacant Land
Residential Condominiums
Office Condominiums
Service Stations
Marinas
Special Purpose Facilities
Churches and Synagogues
Dockominiums
Vice President/Principal, Waronker & Rosen, Inc., Miami, Florida, from 1987
to present
Appraiser, Property Consultants, Inc., Miami, Florida, from 1983 to 1987.
Course Work: Appraisal Institute:
Course 1A-1
Course 1A-2
Course 1B-A
Course 1B-B
Course 2-1
Course 2-2
Courses 410, 420 & 430
Litigation Valuation
Appraising Non -Conforming Uses
Partial Interest Valuation — Undivided
Appraising Distressed Commercial Real Estate
Hotel Appraising — New Techniques for Today' s Uncertain Times
Fundamentals of Separating Real and Personal Property
from Intangible Business Assets
Evaluating Commercial Construction
Other:
Real Estate Appraisal Principles
Basic Valuation Procedures
Capitalization Theory and Techniques, Part A
Capitalization Theory and Techniques, Part B
Case Studies in Real Estate Valuation
Report Writing and Valuation Analysis
Standards of Professional Practice, Parts A, B & C
Past Regional Representative for Region X of the Appraisal Institute
Past Director of the South Florida Chapter of the Appraisal Institute
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 21
Introduction Vacant Land at 1455 NW 17th Street, Miami, FL 33125
Appraiser Qualifications
ALEJANDRO C. PUENTE
Education:
Affiliations:
Experience:
Master of Business Administration, St. Thomas University, 2010
Bachelor of Arts Degree, Business Studies, St. Thomas University, 2007
Associate in Arts Degree, Miami -Dade Community College, 2003
State -Certified General Real Estate Appraiser, State of Florida, RZ3697
Staff Appraiser
April 2010 to present
Assistant
June 2004 to April 2008
Assisted in the appraisal and in the research of various types of properties,
including:
Apartment buildings
Vacant land
Office/industrial/commercial condominium units
Warehouses
Commercial property
Industrial property
Marinas
Restaurants
Hotels
Waronker & Rosen, Inc.
Capital Mortgage, LLC
Course Work: Gold Coast School of Real Estate
Course Basic Appraisal Principles
Course Basic Appraisal Procedures
Course Residential Report Writing
Course State of Florida Law and Appraisers
Course 15 Hour National USPAP Course
The Appraisal Institute
400: General Appraiser Market Analysis and Highest & Best Use
401: General Appraiser Sales Comparison Approach
402: General Appraiser Site Valuation and Cost Approach
403: General Appraiser Income Approach/Part 1
404: General Appraiser Income Approach/Part 2
405: General Appraiser Report Writing and Case Studies
500: Advanced Market Analysis and Highest & Best Use
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 22
Introduction
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Partial Client List
LENDERS
1st United Bank
Amerasia Bank
Apollo Bank
BAC Bank
BNY Mellon Bank
BankUnited
Bank of America
Bank of Coral Gables
Bank Leumi
Bessemer Trust
Branch Banking and Trust (BB&T)
Bridgelnvest, LLC
C1 Bank
CNL Bank
Capital Bank
Cigna Investments, Inc.
Citibank and Citicorp
City National Bank of Florida
Coconut Grove Bank
Comerica Bank
Credit Suisse First Boston Mortgage
Capital, LLC
Espirito Santo Bank of Florida
Executive National Bank
Fifth Third Bank
First Bank of Miami
First National Bank of South Miami
FirstBank Florida
Florida Community Bank
Gibraltar Private Bank and Trust
HSBC Bank, N.A.
Holliday Fenoglio Fowler, LP
Intercredit Bank, N.A.
International Finance Bank
Israel Discount Bank of New York
JP Morgan Chase Bank
Live Oak Bank
Lloyds Int'l. Bank (Lloyds of
London)
Lutheran Brotherhood
Marquis Bank
Morgan Stanley Mortgage Capital
Northern Trust Bank
Ocean Bank
OptimumBank
Popular Community Bank
Professional Bank
Regions Bank
Sabadell United Bank
Space Coast Credit Union
Stonegate Bank
SunTrust Bank
Terrabank, N.A.
TD Bank, N.A.
Totalbank
U.S. Century Bank
Wells Fargo Bank
Zions First National Bank
LIFE INSURANCE COMPANIES
Allstate Insurance Company
American General Life Insurance Co.
Equitrust Life Insurance Co.
Fortis Capital Corp. & Life Insurance
Company
Franklin Life Insurance Company
General American Life Insurance Co.
Independent Order of Foresters
John Alden Life Insurance Company
Kansas City Life Insurance Company
Lumberman's Life Insurance Company
Omaha Woodmen Life Ins. Society
Standard Life Insurance Company
State Farm Insurance Company
Sun Life Insurance Co. of America
CORPORATIONS
Church of Jesus Christ of the
Latter -Day Saints
Florida Power and Light Corp. (FPL)
JC Penny Corporation
The Wendy's Company
Chevron U.S.A., Inc.
Johnson and Johnson Company
DEVELOPERS AND INVESTORS
Berkowitz Development Group
Bristol Group, Inc.
Fifteen Group, Inc.
Franklin Street Properties
Flagler Development Corporation
Goldman Properties
Hampshire Real Estate Companies
Lennar Corporation
MDM Development, Inc.
Napolitano Realty and Harnap Corp.
Noble House Resorts and Hotels
Ocean Properties, Ltd.
Panther Real Estate
PLC Investments, LLC
R.K. Associates, Inc.
The Scott Robins Companies
Wometco Enterprises, Inc.
GOVERNMENT AGENCIES
Broward County School Board
Broward County Public Works Dept.
City of Coral Gables
City of Miami Beach
City of Miami General Services
Administration
Federal Deposit Insurance Corp.
(FDIC)
Federal Home Loan Mortgage Corp.
(FHLMC)
Florida Dept. of Environmental
Protection
Florida Department of Transportation
Florida Keys Aqueduct Authority
Miami -Dade Water and Sewer
Authority
Miami -Dade Co. -Aviation Authority
Miami -Dade Co. - County Attorney's
Office
Miami -Dade Co. - General Serv. Admin
Miami -Dade Co. - Housing & Urban Dev
Miami -Dade Co. - Public Works Dept.
Miami -Dade Co. - School Board
Miami Parking Authority
Nature Conservancy, Florida Chapter
South Florida Water Management Distric
United States Department of Justice
United States General Serv. Admin
United States Postal Services
Village of Pinecrest
LAW FIRMS
Akerman, Senterfitt & Eidson
Arnstein & Lehr, LLP
Barranco & Associates, P.A.
Berger Singerman
Berman, Wolfe Rennart Vogel &
Mandler, P.A.
Carlton Fields
Colson Hicks Eidson, P.A.
Greenberg Traurig, P.A.
Holland & Knight
Kirkpatrick and Lockhart
Kutner and Associates
Richman Greer
Shutts & Bowen, LLP
Stearns, Weaver, Miller, Weissler,
Alhadeff & Sitterson, P.A.
Steel Hector and Davis
Tabas, Freedman, Soloff, Brown &
Rigali, P.A
Tripp Scott
Weiss Scrota Helfman Pastoriza Cole &
Boniske, P.A.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants
23
Introduction Vacant Land at 1455 NW 17th Street, Miami, FL 33125
Notable Properties Appraised
Miami Seaquarium
Miami International Airport
City of Miami Correctional Facility
Country Club of Miami Golf Course
Mel Reese Golf Course
Burger King Headquarters — Waterford
Doctors Hospital
Beacon Centre Development
FBI Headquarters
Gables Waterway Executive Center
Joe's Stone Crab restaurant
Doral Ocean Beach Resort (formerly)
Metro -Dade Bus Facility
Miami Dade County
Virginia Key
Miami
Miami
Miami
Miami
Miami
Coral Gables
Miami
Miami
Coral Gables
Miami Beach
Miami Beach
Miami
Miami Free Zone — Global Trade Cntr
Metropolitan Hospital of Miami
Spinnaker Marina
Virginia Key & Rickenbacker Marinas
Waterways Yacht Basin
Porto Vita Club and Spa
Ocean Steps Entertainment Center
Indian Creek Country Club
BIV Tower
Courthouse Tower
South Shore Hospital
SouthCom Headquarters
Fort LauderdaleBroward County
Florida Medical Center (Hospital)
Jackson Marine Center
Las Olas Centre Office Building
Martha's Restaurant
Various Luxury Single Family Homes
Seneca Industrial Park
Monroe County/Florida Keys
Marriott Key Largo Bay Beach Resort
Islander Resort
Hawk's Cay Resort, Marina and DRI
Westin, formerly Hilton Resort and Sunset Key Island
Little Palm Island
Louis' Backyard Restaurant
Ocean Key Resort
Sloppy Joe's Bar
Truman Annex - Navy Base
Other Florida Counties
Jupiter Beach Resort
La Playa Beach Resort
Sheraton Four Points
Spring Hill Suites
Hilton Carillon Park
Outside of the United States
Various Single Family Homes
Single Family Home
Sapphire Beach Resort
Hotel Site
Montego Beach Resort
Botany Bay Subdivision (400 acres)
Ocean Club Resort
Land lease under Ritz Carlton
Various Land Holdings
Vacant Land
Buccaneer Hotel and Golf Course
Ft. Lauderdale
Ft. Lauderdale
Ft. Lauderdale
Hollywood
Fort Lauderdale
Pembroke Park
Key Largo
Islamorada
Duck Key
Key West
Little Torch Key
Key West
Key West
Key West
Key West
Miami
Miami
North Miami
Key Biscayne
Miami
Aventura
S. Miami Beach
Indian Creek
Miami
Miami
Miami Beach
Miami
Jupiter, Palm Beach County
Naples, Collier County
Orlando, Orange County
Tampa, Hillsborough County
St. Petersburg, Pinellas County
Cat Cay, Bahamas
Casa de Campo, Dominican Republic
St. Thomas, U.S. Virgin Islands
Grand Turks and Caicos Islands
Montego Bay, Jamaica
St. Thomas, U.S. Virgin Islands
Grand Turks and Caicos Islands
San Juan, Puerto Rico
St. Croix, U.S. Virgin Islands
West End, Grand Bahama Island
St. Croix, U.S. Virgin Islands
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 24
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Description & Analyses
I N
aronker
oxe
tann��
PO R AT E D
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 25
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Purpose of the Appraisal
The purpose of this appraisal is to estimate the As Is market value of the fee simple interest as of
February 24, 2016. The term fee simple interest is defined below and the term market value is
defined on the following page.
Client, Intended User and Use of the Appraisal
The intended user of this appraisal is The U.S. Department of Veteran Affairs (VA) and ISI
Professional Services (client). The intended use of this appraisal is for a possible land acquisition.
No purchaser or seller of the subject property, nor any borrower are intended users of this appraisal
and no such parties should use or rely on this appraisal for any purpose. All such parties are advised
to consult with appraisers or other professionals of their own choosing. No additional intended
users are identified or intended.
Definition of Real Property Interest Appraised
The real property interest appraised herein is that of the fee simple interest, defined as follows:
Fee Simple Interest: an absolute fee without limitations to any particular class of heirs, but
subject to the limitations of eminent domain, escheat, police power and taxation. An
inheritable estate.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 26
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Definition of Market Value
Market Value is the major focus of most real property appraisal assignments. Both economic and
legal definitions of market value have been developed and refined.' The Uniform Standards of
Professional Appraisal Practice (USPAP) states Market Value is "a type of value, stated as an
opinion, that presumes the transfer of 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 the appraisal".2 This requires the appraiser to identify the definition
of market value and its authority.
The definition that follows is the basis of the valuation in this appraisal and the source is the
Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume
75 Number 237, Page 77472.
Market Value is defined as "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 are 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."3
This market value definition is referenced within the appraisal regulations of the following
governmental agencies:
• Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of
1989
• Department of the Treasury
• The Federal Reserve System (FRS)
• Federal Deposit Insurance Corporation (FDIC)
• Office of Comptroller of the Currency (OCC)
1 Appraisal of Real Estate, 14th Edition, page 58
z USPAP 2014-2015, page U-3
3 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,
Page 77472
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 27
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Location and Address
The subject property is comprised of two parcels located along the east side of NW 15th Avenue,
at approximately NW 18th Street in the city of Miami, Miami -Dade County, Florida. This area is
known as the Civic Center, and is home to three major hospitals (Jackson Memorial Hospital, the
Veterans Administration (VA) Hospital and the University of Miami Medical Center) as well as
numerous Government Buildings.
Address: 1455-1495 NW 17th Street, 1700 NW 14th Avenue
and 1700-1799 NW 15th Avenue
Miami, FL 33130
Legal Description
A copy of the legal description is within the Addenda.
Source: www.miamidade.gov
Owner of Record
City of Miami
c/o Department of Public Facilities
444 SW 2nd Avenue
Miami, FL 33130
Source: www.miamidade.gov
History of the Subject Property
In September 2012, the subject property (folio 01-3135-087-0012) was deeded from Wagner
Square III, LLC to the City of Miami, c/o Department of Public Facilities as recorded in official
record book 28287 at page 4184. At the same time, Folio 01-3135-087-0010 was deeded from
Drew M. Dillworth as the Chapter 11 Bankruptcy Trustee for the Substantively Consolidated
Bankruptcy Estates of the Debtors, Wagner Square, LLC and Wagner Square I, LLC to the City
of Miami, c/o Department of Public Facilities as recorded in official record book 28287 at page
4161. The recorded consideration is $10 per parcel, however, the price on the closing statement
was $7,200,000 or $170 per square foot. This price is not representative of the actual transaction
amount, as the City was a creditor of the debtor along with other parties. The transaction also
involved prior loans from HUD which the City was involved in as well as another parcel and
payments to the City long with the City allowing release of escrow funds to the bankruptcy estate.
As a result, this transaction was not considered to be arms -length and market related.
Based on review of various real estate publications, the subject property is not under contract nor
listed for sale.
Source: www.miamidade.gov
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 28
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Site Data
The subject site is almost rectangular. There is frontage of approximately 164 feet along the east
side of NW 15th Avenue, a two lane asphalt paved road in average condition. Depth is
approximately 259 feet. Per the public records and the surveys in the deeds, the total area of the
parcel is 42,309 square feet (0.97 acres). The subject property is accessible from the east side of
NW 15th Avenue. The site slopes various ways, and is at approximate street grade in most areas,
to slightly below grade. Utilities available to the site are:
Electric: Florida Power and Light
Telephone: AT&T
Water: Miami -Dade Water and Sewer
Sewer Disposal: Miami -Dade Water and Sewer
Zoning
The subject property is zoned T6-8-O, Urban Core Open Transect Zone by the city of Miami,
FL.This zoning district allows the highest density and greatest variety of uses, including civic
buildings of regional importance. It is characterized by a network of small blocks, thoroughfares
with wide sidewalks, steady tree planting and buildings set close to the frontage with frequent
doors and windows. The allowable residential density in this zoning is 150 to 1,000 units per acre.
The allowed uses under the open zoning include, but are not limited to residential, lodging, office,
commercial, civic, civil support and educational. For a detailed listing of allowable uses and
restrictions, refer to the zoning code of Miami, FL.
Flood Zone
The subject is within Flood Zone AE, areas subject to a one percent or greater annual chance of
flooding in any given year. Base flood elevations are shown as derived from detailed hydraulic
analyses. This flood zone requires mandatory purchase of flood insurance in participating
communities. This identification was located on Flood Insurance Rate Map, Community Panel No.
12086C0311L, revised September 11, 2009. For insurance purposes, a surveyor should be
contacted to verify the exact zone by a flood elevation certificate, as well as its impact on
insurance. A copy of the flood zone map is located in the Addenda to this report.
Source: www.miamidade.gov and www.imapp.com
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 29
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Real Estate Assessment and Taxes
Taxing Authority:
Assessment Year:
School Board Millage Rate:
City, County, Region Millage Rate:
Total Millage Rate:
Folio Numbers:
Miami -Dade County
2015
07.6120
14.6231
22.2351
01-3135-087-0010
01-3135-087-0012
The Miami -Dade Property Appraiser reports two values; Assessed Value and Market (Just) Value,
also referred to as Just Value. Millage rates are multiplied times the respective values to calculate
real estate taxes.
Nonresidential properties are subject to the Non Homestead Cap which limits increases in the
assessed value to 10% annually. Single family residences are subject to the Save Our Homes
Amendment which limits the increase for a home to 3% annually, or the Consumer Price Index
(CPI), whichever is less. A change in ownership resets the base year of the cap to the following
year. When this occurs the assessed value will be equal to the market (just) value. There is no cap
on the increase in market value. Following is a summary of the reported market (just) and assessed
values.
TYPE OF VALUE
VALUE
SQ.FT.
SIZE'
VALUE
PER SQ.FT.
Land Value
$1,480,815
42,309
$35.00
Building Value
$0
42,309
$0.00
Extra Features Value
$0
Market (Just) Value
$1,480,815
42,309
$35.00
Assessed Value
$767,907
42,309
$18.15
To calculate real estate taxes, the school board millage rate is multiplied times the market (just)
value. In addition, the county, city and regional millage rate is multiplied times the assessed value.
The results of each are added together to indicate the total real estate taxes.
1 This is the size per the Miami -Dade County Property Appraiser's records.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 30
Description & Analyses
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
The real estate taxes are estimated as follows:
TAXING AUTHORITY
MILLAGE
VALUE
(B)
TAXES
(A x B)
(A)
School Board
.0076120
$1,480,815
$11,272
City, County & Regional
.0146231
$767,907
$11,229
Estimated Real Estate Taxes
$22,501
Taxes Per Square Foot
$0.00
There is a 4% discount given for early (November) payment of taxes which would reduce the
estimated real estate taxes to $21,601, ($22,501 minus 4%).
As per the public records, the subject property is exempt from real estate taxes, as it is owned
by the City of Miami, c/o Department of Public Facilities.
Florida Statutes require assessments to be at 100% of market (just) value with an allowable
adjustment to indicate net proceeds that would be derived from a sale. This adjustment varies
dependent on the taxing authority with the Miami -Dade County Property Appraiser's office
typically designating in the range of 15%. Based upon the value estimated in this appraisal the
assessment is less than what is appropriate.
An assessment at 15% below the market value of $5,300,000 estimated in this appraisal would be
$4,505,000, resulting in taxes of $100,169.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 31
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
City of Miami Description
The city of Miami, incorporated in 1896, covers a total of six islands and 55.25 square miles on
the southeast tip of Florida. The concept of "Greater Miami" is a generalized term referring to the
combination of the City and Miami -Dade County, Florida.
The city of Miami is irregular in shape. Biscayne Bay is the eastern boundary, N.E. 87th Street is
the northernmost boundary, S.W. 87th Avenue is the westernmost boundary, and Prospect Drive
(approx. S.W. 68th St.) is the southernmost boundary. Within this area is Coral Gables, its own
city.
The prime coastline location lends itself to activities and businesses supporting tourism,
residential, commercial, industrial and recreational uses.
City government is by a city commission composed of a mayor and elected -at -large
commissioners. The city of Miami has developed Neighborhood Enhancement Team (NET)
Service Centers. The NET centers are neighborhood "mini -hall" government centers that on a more
personalized level coordinates interaction of police, fire, zoning, public works, solid waste, code
enforcement, clerical support, job placement, housing assistance, and information on all services
offered by the city of Miami.
The primary major employer for the city of Miami is the Miami -Dade County Public Schools,
followed by the Miami -Dade County Government with the third largest being Florida Power and
Light Company.
As well as the traditional school structure, the city of Miami participates in the Miami -Dade
County Public Schools Magnet School program. Magnet schools, with unique and specialized
training and unique instructional programs offered to academically qualified students, attract
students from the total school population throughout Miami -Dade County. Miami -Dade College
Downtown Campus provides higher education.
The city of Miami has a multitude of city -owned parks, two golf courses, public pools, tennis
courts and day care centers. Other recreational facilities include water -related sports and recreation
as well as cultural and social activities that support local residents as well as the tourist industry.
The two largest public parks, Bayfront and Bicentennial, flank the entry to the Port of Miami with
675 acres on two islands. The south part of Bicentennial has been sold and is home to the American
Airlines Arena, home of basketball's Miami Heat. The north part was approved for construction
of two museums and is named Museum Park, consisting of 21 acres of upland and 7 acres of
submerged land. Completed is The Perez Art Museum Miami and the Frost Museum of Science
under construction. The Port of Miami, with 75 acres on two islands, is a major seaport in the city.
Steamship lines also actively use the Port of Miami. A tunnel under the bay from downtown by
McArthur Causeway to the Port has also been completed to alleviate the downtown Miami truck
traffic.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 32
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
For the northwest portion of Watson Island, a mixed -use project is to be constructed based on an
RFP that was submitted many years ago. A developer was chosen and construction was to take
place with two hotels, a retail and entertainment center and a world class mega -yacht marina. The
developer defaulted on the agreement several times, with some modifications being made and most
recently a mega -yacht marina has been completed; with hotels and retail to be constructed. In
addition, approved for another developer in this area is a waterfront facility for a seaplane terminal
and accessory uses. Completed on the northeast side of Watson Island is a facility for the
entertainment venue Parrot Jungle Islands and Gardens. Across the street is the Miami Children' s
Museum.
To the north of Interstate No. 395 on Biscayne Boulevard, construction of a world class Performing
Arts Center has been completed. The Performing Arts Center has a symphony hall, ballet facility
and a theater for shows and plays.
The Miami Civic Center area is considered Miami's largest employment center. The area is home
to Jackson Memorial Hospital, University of Miami Medical Center, Veterans Administration
Hospital, Richard E. Gerstein Justice building including court facilities and a jail facility as well
as numerous other accessory health and municipal facilities. Many projects are being developed
in the area or are in the planning stages with the most notable being River Landing Shops and
Residences at 1400 NW North River Drive with two million square feet of retail and residences
on 8.14 acres. At 1501 to 1511 NW 13th Court (Sale 5 within the Sales Comparison Approach) are
plans for a 73-unit mixed -income development called Wagner Creek Apartments. The Civic
Center area has a Metrorail station located at 1501 NW 12th Avenue which connects the area to
other transportation services.
In downtown Miami, transportation systems include Metrorail, an elevated rail rapid transit system
running north and south through portions of Miami -Dade County. The Metromover automated
people mover system is located in downtown Miami and is an off -shoot of the Metrorail system.
There are also Metrobus buses, most of which are in service daily throughout the county. The
Metromover system includes the Brickell Avenue financial district and also runs north to the Omni
area. These systems connect to other transportation services in Miami -Dade County such as
Amtrak, Tri-Rail, railroads and taxicabs.
Major thoroughfares cross the city in a grid -like fashion with many major arteries that channel
traffic throughout the city. The Florida Turnpike, U.S. Highway No. 1 (S. Dixie Hwy. a/k/a
Biscayne Boulevard and Brickell Avenue) and Interstate-95 accommodate traffic through and
around Miami -Dade County to and from the Florida Keys and north out of Miami -Dade County.
Four causeways extend from the mainland, joining the city to the barrier islands that include Miami
Beach. Metrorail and Metromover, overhead monorail rapid transit systems, connect to each other
as well as numerous stations.
State Road No. 836 (East-West Expressway) and the Airport Expressway (State Road No. 112)
runs basically east -west into Interstate-95 and the Palmetto Expressway (State Road No. 826),
which collects traffic running north and south. South Dixie Highway (Biscayne Boulevard and
U.S. Highway No. 1) stretches in a diagonal manner north and south and is a major artery. Le
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 33
Description & Analyses Vacant Land at 1455 NW 17` Street, Miami, FL 33125
Jeune Road (42nd Ave.), 37th Avenue, 27th Avenue, 17th Avenue and 7th Avenue are also major
arteries traveling north -south, connecting with South Dixie Highway and State Road Nos. 836 and
112 (excludes 7th Avenue). Flagler Street (dividing the street grid into north and south), S.W. 8th
Street, N.W. 7th Street and Coral Way (S.W. 3rd Ave., S.W. 13th Street, S.W. 22nd St. and S.W. 24th
St.) facilitate east -west traffic as major arteries.
The city of Miami completely overhauled the city's zoning code to create what government says
is a more efficient regulation. This was made through a project known as "Miami 21", which
represents "Miami in the 21' Century" as stated in the Miami 21 fact sheet. According to the fact
sheet, the current zoning regulation is based on the "use" (commercial, residential, industrial, etc.)
and "density" (housing units per acre) of a property. Miami 21 was expected to provide a clear and
specific guideline for the relationships of buildings to each other, to streets and to open spaces,
rather than emphasis on its "use". "The core of Miami 21 was the development of a new code that
replaced the existing zoning ordinance, an outdated ordinance which emphasizes "use" and
"density". The old code was focused on what is allowed, rather than what was desired." The
Miami 21 code is to provide a long term vision emphasizing "the form", which focuses on urban
design, including neighborhood centers, urban parks and a successful coordination of standards
for urban design, architecture, landscape, thoroughfare and use. The core of Miami 21 is divided
into four quadrants. Miami 21 was initially approved in May 2010 and has had subsequent
amendments
The city of Miami is part of the South Florida area that creates a highly mobile and transient
atmosphere that offsets the well established businesses and residents. The subject is a well -located
site within the municipality due to its being in the Civic Center area near significant government
and health facilities with a renewed demand for residential, retail and commercial uses. This is
primarily due to its ease of accessibility to Interstate 95, State Road No. 836, the Brickell Avenue
Financial District, Downtown Miami, the Miami River, Miami International Airport and the
PortMiami.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 34
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Neighborhood Overview
General Neighborhood Data
Location:
Built Up:
Growth Rate:
Property Values:
Demand/Supply:
Present Land Use:
Change in Present Land Use:
Predominant Use:
Property Compatibility:
General Appearance of Properties:
Appeal to Market:
Adj acent Uses
East:
West:
South:
North:
Linkages
Public Transportation:
Employment Centers:
Expressway Access:
Miami International Airport:
Urban
90% to 100%
Increasing
Increasing
In balance
Mixed -uses including residential, health related
facilities, government buildings and vacant land
Likely
Mixed -uses including residential, health related
facilities, government buildings and vacant land
Average
Below average to good
Above average
Parking lot for VA
Multi -family residential and vacant land
Multi -family residential
Multi -family residential
Distance Access
Within a few blocks
Within a few blocks
One mile
Three to five miles
Description of the Site Improvements
Very good
Excellent
Very good
Good
The subject property appears at or near grade level. It is not flat, but rather sloped in some areas
and appears to be slightly below grade. The subject property does have five catch basins throughout
the site and a manhole cover. It is also fenced -in with a six-foot high chain link fence.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 35
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Supply and Demand / Market Conditions
Overall Market Conditions
The real estate market in South Florida and most of the nation continues to be in a recovery phase
from the deepest recession in decades, and a severe financial crisis. This bust followed a boom
period of unprecedented construction and redevelopment that occurred during 2005 to 2007. The
recession caused significant erosion in the fundamentals that drove demand for commercial real
estate (in particular, employment and household income). Compounding the effect of weakened
demand, the financial crisis caused considerable turmoil in the commercial credit markets,
resulting in a significant tightening of lending standards, making credit for real estate investments
more difficult to obtain. At the same time, the boom in construction and redevelopment delivered
large amounts of new product to the market, at a time when demand was sharply declining, leading
to a significant oversupply of most property types.
These dramatic changes resulted in widespread uncertainty in the market for real estate, with most
investors sharply modifying their assumptions about the risks of their real estate acquisitions. The
residential market was the first to soften due to significant speculation in construction and
purchasing for re -sales. However, by 2009 all sectors of commercial and industrial real estate,
which had until then suffered less than the residential market from the downturn, were being hit
hard by the overall economic decline. Sharp increases in vacancy rates were observed as the weak
economy resulted in many business closings, and as businesses and consumers both scaled back
their spending due to declining confidence. Many of the largest projects conceived and begun
during the height of the boom reached completion precisely as demand had sharply dropped,
resulting in widespread real estate failures, as many new residential, office, retail and industrial
developments struggled to sell out or lease up.
Throughout most of 2009 and in 2010, the investment climate for most property types remained
very gloomy. Beginning in 2011 and improving in 2012 through 2015, the market experienced
increased activity in purchases of improved property and parcels for development. This has
continued into 2015 and 2016 with the more desirable parcels selling quicker and at higher prices,
and the less desirable parcels having less activity but still selling.
The Market for Land
Conditions in the market for land were characterized by rapid growth in demand during the several
years leading up to late-2007, due mainly to a land rush driven by a large wave of residential
condominium, commercial and mixed -use development. After three to four years of booming
growth, which fueled intense condominium conversions, new construction and redevelopment
activity of all types, the market took an abrupt turn for the worse between the latter part of 2007
and early 2008 as a result of the changing market conditions as noted earlier. These changes led to
the worst oversupply conditions ever experienced in the region, with millions of square feet of new
product (most notably residential condominiums) being delivered to the market just as demand
had dropped off sharply. Even well into the recession, a significant amount of product was still
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 36
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
under construction or was nearly completed and remained to be sold. This had brought virtually
all proposed new development activity to a standstill and resulted in a significant amount of vacant
land which had been purchased for development during the boom being placed back on the market,
depressing values for land overall.
These conditions improved throughout 2012, 2013, 2014, 2015 and into 2016 with significant
acquisitions of vacant land parcels acquired for new development. Most of the activity has been
for land zoned for multi -family residential or mixed use, followed by commercial and industrial
land. This activity level has been mainly in Miami -Dade County submarkets considered desirable
locations. Second and third tier locations have seen improved conditions, however not nearly to
the extent of the primary location.
The subject property is comprised of 42,309 square feet with street frontage along the east side of
NW l5th Avenue at approximately NW 18th Street in the city of Miami. More specifically, it is
located just outside the Civic Center or Health District area. The Health District or Civic Center
area is considered to be NW 20th Street to the north, SR 836 to the south, Interstate 95 to the east
and NW 17th Avenue to the west. For the most part, the search was limited to sales within this area
and slightly beyond. The subject is comprised of two parcels and is surrounded by commercial,
government uses, multi -family residential and vacant land. As previously stated, there has been
increased demand for vacant land and the Civic Center area is reaping the benefits as vacant land
in prime locations becomes more and more scarce. Multiple brokers stated that the area is "hot"
with many potential purchasers.
In addition to the increased demand in the Civic Area, land on or near the Miami River has also
seen an increase in demand where prices have nearly doubled in the last two to three years. Many
projects for multi -family residential and mixed -use properties are under way or in the planning
stages.
Typical Purchaser of the Subject
The subject is a large vacant site in desirable area. There is demand for new construction in this
area. Therefore, the typical purchaser would be a developer with experience building a new
structure to completion.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 37
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Highest and Best Use
The site is valued for its highest and best use, which may be defined as follows:
That reasonable and probable use that will support value
as defined as of the effective date of the appraisal.
In analyzing the highest and best use, the following four questions are answered:
1. Legally Permissible. What uses are legally permitted on the subject site with
respect to zoning ordinances and deed restriction.
2. Physically Possible. What uses of those legally allowed are physically possible on
the subject site?
3. Financially Feasible. Of those uses determined to be physically possible and
legally permissible, which ones will produce a positive return?
4. Maximally Productive. Of those that are feasible, legally permissible, and
physically possible, which will produce the highest rate of return or value?
The above four questions are answered in order.
Legally Permissible:
The subject property is zoned T6-8-O, Urban Core Open Transect Zone by the city of Miami, FL.
This zoning district allows the highest density and greatest variety of uses, including civic
buildings of regional importance. It is characterized by a network of small blocks, thoroughfares
with wide sidewalks, steady tree planting and buildings set close to the frontage with frequent
doors and windows. The allowable residential density in this zoning is 150 to 1,000 units per acre.
The allowed uses under the open zoning include, but are not limited to residential, lodging, office,
commercial, civic, civil support and educational.
Zoning District
Requirement
Construction Setbacks
Front:
Side:
Side Street:
Rear:
10 feet
0 feet
10 feet
0 feet
Minimum Lot Frontage
50 feet
Minimum Lot Area:
5,000 sq. ft.
Height:
2 stories minimum
8 stories maximum with bonuses,
this can be increased
Parking:
1 space per 1.5 dwelling unit
3 spaces per 1,000 sq. ft. of office use
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 38
Description & Analyses Vacant Land at 1455 NW 17th Street, Miami, FL 33125
No deed restrictions are known which would legally limit the allowable uses on the subject site.
For a detailed listing of these requirements, please consult the Miami Zoning Code or contact their
zoning information office.
Physically Possible:
The subject site has 42,309 square feet (0.971 acres). The size and shape are such that construction
would not be hindered. No soil conditions are known that would restrict construction on the subject
site. Therefore, any of the allowable uses would be physically possible on the subject property site.
Financially Feasible:
Of those uses which are legally permissible and physically possible, a determination must be made
as to which uses are most financially feasible. The current zoning allows a multitude of uses. These
include both commercial and residential. The area as noted also has a multitude of uses including
multi -family residential being both rental and condominium product, as well as health care uses
and government facilities. The government facilities and health care facilities all appear to have a
need for expansion, therefore lending the subject site as feasible for these type uses. Multi -family
housing is also in demand, but there is planned product throughout the area at present. Given the
market strength and demand for a multitude of uses from various developers and institutions, it is
likely financially feasible to construct a mixed -use complex, possible in a different building for
health care and multi -family. Additionally, a government facility may be feasible as the builder
and occupant of this type facility is not typically concerned with profit on real estate unless it is
being constructed by a developer for lease to a government entity.
Maximally Productive:
This is the use of all those that meet the previous criteria which yields the highest rate of return or
value. Give that the subject is a large site allowing high density development, a building would be
constructed to near the highest density possible to yield the highest return to the land. Of note is
that the City of Miami allows for payments that could increase density and height as well as for
the purchase of transferable development rights (TDR' s) at favorable prices which can also
increase height and allowable densities.
Conclusion of the Highest and Best Use
As Vacant
The subject location is desirable and the market continues to strengthen with values high enough
to feasibly construct on the site. Therefore, the highest and best use as though vacant, would be to
construct a mixed -use building on the site.
As Improved
The subject property is vacant land and therefore an analysis of the highest and best use as
improved is not applicable.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 39
Description & Analyses Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Appraisal Process
An analysis of three separate approaches to value; sales comparison approach, cost approach, and
income capitalization approach, will be considered to estimate the value of the subject property.
Although these three approaches to value are considered within every appraisal report, they may
not be applicable to each and every property being appraised.
The cost approach is based on the principle of substitution which states that an informed purchaser
would not pay more for a property than the cost of reproducing a property with the same utility.
The cost approach can often yield reliable estimates of value for new construction. This approach
entails estimating the cost of producing the improvements, deducting an estimate of depreciation,
then adding the value of the site as if vacant. To this value an entrepreneurial incentive is added to
arrive at the estimated value by the cost approach.
The income capitalization approach is based on the concept that value is created by the
expectations of future benefits and higher earnings should result in higher values. Income
producing real estate is purchased for the right to receive future income. The income capitalization
approach consists of methods to analyze a property's capacity to generate income, and a reversion,
and convert these monetary benefits into an estimate of value.
The sales comparison approach is based on the principle of substitution which suggests that, within
competitive markets, similar products will realize similar prices. Inherent in this concept is the
premise that a purchaser would not pay more for a property than the cost to acquire another
property with the same amenities and utility.
The fmal steps in the appraisal process are review and reconciliation of the data and conclusions.
In reaching a final conclusion of value, the entire process involving the approaches that were
estimated must be reviewed for accuracy, completeness and consistency. After analysis, evaluation
and reconciliation of the indications a value is estimated. The essence of this final reconciliation
should be a defensible and rational conclusion of value.
The only approach used in this appraisal is the sales comparison approach. The income
capitalization approach and the cost approach are not applicable to the valuation of the subject
property.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 40
Cost Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Cost Approach
The basis of the cost approach is the principle of substitution. This principle suggests that a prudent
buyer would not pay more for a property than the cost to acquire a similar site and construct
comparable improvements.
Following are the procedures for preparing the cost approach.
1. Estimate the value of the land as though vacant and available to be developed to its highest
and best use.
2. Determine which cost basis is most applicable to the assignment: reproduction cost or
replacement cost.
3. Estimate the direct (hard) and indirect (soft) costs of the improvements as of the effective
appraisal date.
4. Estimate an appropriate entrepreneurial profit or incentive from analysis of the market.
5. Add estimated direct costs, indirect costs, and the entrepreneurial profit or incentive to
arrive at the total cost of the improvements.
6. Estimate the amount of depreciation in the structure and, if necessary, allocate it among
the three major categories: physical deterioration, functional obsolescence, and external
obsolescence.
7. Deduct the estimated depreciation from the total cost of the improvements to derive an
estimate of their depreciated cost.
8. Estimate the contributory value of any site improvements that have not already been
considered. (Site improvements are often appraised at their contributory value - i.e.,
directly on a depreciated -cost basis - but may be included in the overall cost calculated in
Step 3 and depreciated, if necessary).
9. Add land value to the total depreciated cost of all the improvements to develop the market
value of the property.
10. Adjust for personal property (e.g., furniture, fixtures, and equipment) or intangible assets
that are included in the appraisal.
11. Adjust the value conclusion, which reflects the value of the fee simple estate, for the
property interest being appraised to arrive at the indicated value of the specified interest in
the property. 1
As the subject property is unimproved vacant land, the cost approach is not applicable.
1 The Appraisal of Real Estate, 14th Edition, 2013, Pages 568 and 569
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 41
Income Capitalization Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Income Capitalization Approach
Income producing real estate is typically purchased as an investment, and from an investor' s point
of view earning power is the critical element affecting property value. One basic investment
premise holds that the higher the earnings, the higher value, provided the amount of the risk
remains constant. An investor who purchases income -producing real estate is essentially trading
present dollars for the expectation of receiving future dollars. The income capitalization approach
to value consists of methods, techniques, and mathematical procedures that an appraiser uses to
analyze a property' s capacity to generate benefits (i.e., usually the monetary benefits of income
and reversion) and convert these benefits into an indication of present value.'
In the income capitalization approach, an appraiser analyzes a property' s capacity to generate
future benefits and capitalizes the income into an indication of present value. The principle of
anticipation is fundamental to the approach.
An income capitalization approach was not applied as it was not within the scope of this appraisal.
Since this approach is typically not considered by purchasers of this property type, not using it
does not limit the reliability of the value estimated herein.
' Appraisal of Real Estate, 14th Edition, 2013, Page 439
2 Ibid., 439
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 42
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Sales Comparison Approach
The sales comparison approach is based on the principle of substitution. The principle of
substitution holds that the value of property tends to be set by the cost of acquiring a substitute
or alternative property of similar utility and desirability within a reasonable amount of time.'
In the Sales Comparison Approach, an opinion of market value is developed by comparing
properties similar to the subject property that have recently sold, are listed for sale, or are under
contract (i.e., for which purchase offers and a deposit have been recently submitted). A major
premise of the sales comparison approach is that an opinion of the market value of a property
can be supported by studying the market' s reaction to comparable and competitive properties.
Qualitative analysis is a relative comparison process without mathematics. Sales are ranked
based upon their desirability as compared to the subject. Comparisons can be expressed as plus
or minus as opposed to dollar or percentage adjustments.
Quantitative analysis is the process of applying mathematical techniques. Sales are adjusted to
the subject property on a dollar or a percentage basis. One method of supporting adjustments is
through paired data analysis. This method analyzes two sales and attributes the difference in
their sales prices to the characteristic which is different. This analysis requires an abundance of
sales data which is frequently not available. Only in ideal conditions it is advisable to use
quantitative adjustments. This would require sales that could be paired to extract adjustments
for the differences from the sales to the subject property. This type data is not available in the
market.
Qualitative analysis is used herein to estimate a value by the sales comparison approach.
Characteristics of the sales considered superior to the subject are given a minus (-) adjustment.
Those characteristics of the sales considered inferior to the subject are given a plus (+)
adjustment. Each sale is given an overall adjustment indicating how it compares to the subject.
On the following page is a grid of the sales used for comparison to the subject property.
1 The Appraisal of Real Estate 14th Edition, 2013, page 379
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 43
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Vacant Land Sales Grid
Following is a grid of the comparable sale properties used for comparison to the subject property.
Sale
Sale
Date
Location
Zoning
Sale
Price
Sq. Ft.
Size
Price/
Sq.Ft.
1
12/15
1170 NW llth Street
1035 NW llth Court
1080 NW llth Street
Miami
T6-8-O
$11,500,000
110,753
$103.83
2
9/15
1950 NW 1st Avenue
Miami
T6-8-0
$16,000,000
108,334
$147.69
3
5/15
710-720 and
750-760 NW North River Drive
Miami
T4-R
$3,950,000
52,000
$75.96
4
4/15
1622 NW 22nd Avenue
Miami
T6-8-0
$4,147,500
44,572
$93.05
5
2/15
1501-1511 NW 13th Court
Miami
Cl-HD$2,023,000
18,870
$107.21
6
2/15
641 NW 12th Avenue
Miami
T6-8-0
$2,574,100
33,075
$77.83
7
Pending
Sale
1670-1690 NW North River Drive
Miami
T6-8-0
$12,350,000
103,540
$119.28
Subject
9/12
1455 NW 17th Street, et al
Miami
T6-8-O
$7,200,000
42,309
$170.18
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 44
Sales Comparison Approach
Vacant Land at 1455 NW 17th Street, Miami, FL 33125
Vacant Land Sales Map
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Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 45
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 1
Property Location
1170 NW l lth Street
1035 NW llth Court
1080 NW l lth Street
Miami, FL 33136
Miami -Dade County
Property Identification
Tax ID: 01-3135-026-0310, -0200
and -0080
WRI No: 303922
Units of Comparison
Price/Sq.Ft.: $103.83
Price/Acre: $4,527,559
Property Description
Square Feet: 110,753
Acres: 2.54
Topography: Grade level
Shape: Irregular
Zoning: T6-8-O, Urban Core Open Transect Zone by the city of Miami, FL
Recording Information
Sale Price: $11,500,000
Sale Date: December 2015
ORB/Page: 29887/4130 in a special warranty deed
Grantor: Miami River House Associates, LTD, Miami River House II Associates, LTD and
Miami River House III, LTD
Grantee: Riverhouse Development, LLC
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Jim Fried, broker with Aztec Group, LLC (305-773-6300)
Comments
This is the purchase of three parcels located along the south side of NW I lth Street, between NW 12th
Avenue and NW loth Court. The parcels are separated by streets and are one block north of the Miami
River with the largest parcel being adjacent to the NW 12th Avenue bridge. The buyer, Mill Creek is a
significant developer in Miami -Dade County and has since closed on a $52,480,000 construction loan on
the site. The highest and best use of this property is mixed -use commercial and residential development.
Legal Description
Lots 1-B, 2-B, 3-B, 4-B, 5-B, 6-B, 1-M, 2-M, 3-M, 4-M, 17-E, 18-E, 19-E, 20-E, 21-E, 1-E, 2-E, 49-S and
50-S, COUNTRY CLUB ADDITION, according to the Plat thereof, as recorded in Plat Book 8, Page 72
of the Public Records of Miami -Dade County, Florida
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 46
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 2
Property Location
1950 NW 1st Avenue
Miami, FL 33136
Miami -Dade County
Property Identification
Tax ID: 01-3136-072-0010 and
-0020
WRI No: 303926
Units of Comparison
Price/Sq.Ft.: $147.69
Price/Acre: $6,425,703
Property Description
Square Feet: 108,334
Acres: 2.49
Topography: Grade level
Shape: Rectangular
Zoning: T6-8-O, Urban Core Open Transect Zone by the city of Miami, FL
Recording Information
Sale Price: $16,000,000
Sale Date: September 2015
ORB/Page: 29775/1663 in a special warranty deed
Grantor: A-1 Management Corp.
Grantee: MSP 1031 2015
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Keitiane Silva at West Avenue Realty, current listing agent (786-838-3687)
Comments
This is the sale of an entire block made up of two parcels. It has four street frontages along NW 1st Court,
NW 1st Avenue, NW 20th Street and NW 21st Street. It was purchased in September 2015 for $16,000,000
or $148 per square foot. It has since been approved with plans for a mixed -use project prepared by Kobi
Karp. It was placed back on the market with an asking price of $26,000,000 or $240 per square foot. This
is the southernmost portion of the Wynwood Arts and Entertainment District with development beginning
to reach this area. The highest and best use of this property is mixed -use commercial and residential
development.
Legal Description
Tract A and B, NATIONAL LINEN PROPERTIES, according to the Plat thereof, as recorded in Plat Book
115, Page 24 of the Public Records of Miami -Dade County, Florida
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 47
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 3
Property Location
710-720 and 750-760 NW North River Drive
Miami, FL 33136
Miami -Dade County
Property Identification
Tax ID: 01-3135-027-1190, -1200,
-1220 and -1230
WRI No: 303924
Units of Comparison
Price/Sq.Ft.: $75.96
Price/Acre: $3,319,328
Property Description
Square Feet: 52,000
Acres: 1.19
Topography: Grade level
Shape: Irregular
Zoning: T4-R, General Urban Restricted Transect Zone by the city of Miami, FL
Recording Information
Sale Price: $3,950,000
Sale Date: May 2015
ORB/Page: 29686/4126 in a warranty deed and 29619/1977 in a special warranty deed
Grantor: Miami Riverfront Development Group, LLC and Miami River Lots, LLC
Grantee: 750-760 Spring Gardens, Inc.
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Marta Santiago, Listing agent with J R Sosa Properties, LLC, (786-344-1955)
Comments
This is two separate purchases by one buyer from two sellers, within two months with each property
consisting up of two parcels containing 26,000 square feet, along the south side of NW North River Drive
with frontage along the Miami River. The first purchase was for 750-750 NW North River Drive in May
2015 for $1,800,000 or $69 per square foot. The second purchase was for 710-720 NW North River Drive
for $2,150,000 or $83 per square foot, bringing the total purchase to $3,950,000 or $76 per square foot. The
highest and best use is for multi -family residential development.
Legal Description
Lots 4, 5, 7 and 8, Block 12, SPRING GARDEN, according to the Plat thereof, as recorded in Plat Book 5,
Page 38 of the Public Records of Miami -Dade County, Florida
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 48
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 4
Property Location
1622 NW 22nd Avenue
Miami, FL 33125
Miami -Dade County
Property Identification
Tax ID: 01-3134-027-0020; 01-
3134-027-0040; 01-3134-
027-0031; 01-3134-027-
0050; 01-3134-027-0030
WRI No: 303884
Units of Comparison
Price/Sq.Ft.: $93.05
Price/Acre: $4,066,176
Property Description
Square Feet: 44,572
Acres: 1.02
Topography: Grade level
Shape: Irregular
Zoning: T6-8-O, Urban Core Open Transect Zone by the city of Miami, FL
Recording Information
Sale Price: $4,147,500
Sale Date: April 2015
ORB/Page: Book 29580; Pages 1507 (parcel 1), 1512 (parcel 2), 1514 (parcel 3) and 1516 (parcel
4); all in warranty deeds
Grantor: 1622 Investment Corp. (parcels 1 and 3); River Condominium Corp. (parcel 2); 1920
River Corp. (parcel 4)
Grantee: STEC NO. 15-4407, LLC
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Jose E. Castro (attorney), 305-444-7500
Legal Description
Lots B, C and D, less the east 10 feet of WASHBURN' S SECOND ADDITION as recorded in plat book 6
at page 1 of the public records of Miami -Dade County, Florida and
Lot E, less the East 10 feet thereof, WASHBURN' S 2nd EDITION and lying southerly of the Right -of -Way
on street on Florida State Road Depaitiiient Right -of -Way Map as recorded in plat book 79 at page 61 of
the public records of Miami -Dade County, Florida and
Lot F, of WASHBURN, A SUBDIVISION of that part of the East Half of the East Half of the Northwest
1/4 of Section 34, Township 53, Range 41 East as recorded in plat book 6 at page 1 of the public records of
Miami -Dade County, Florida
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 49
Sales Comparison Approach Vacant Land at 1455 NW 17th Street, Miami, FL 33125
Comments
This parcel is located on the south side of NW North River Drive, along the west side of an elevated segment
of NW 22nd Avenue on the north bank of the Miami River. It has river frontage on its south side, with
additional water frontage on a small inlet that runs along its west side. The transaction occurred on four
separate deeds between a single buyer and separate but related entities. The improvements consist mainly
of several small, older residential structures that are not considered to contribute value. The buyer's plans
for the site could not be confirmed, but the zoning permits a wide variety of uses. Adjoining waterfront
parcels to the west are multi -family, with parcels on the east side of NW 22nd Avenue and across it on the
south bank of the river being marine industrial. The highest and best use is for multi -family residential
development.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 50
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 5
Property Location
1501-1511 NW 13th Court
Miami, FL 33125
Miami -Dade County
Property Identification
Tax ID: 01-3135-024-0020 and
-0030
WRI No: 303921
Units of Comparison
Price/Sq.Ft.: $107.21
Price/Acre: $4,704,651
Property Description
Square Feet: 18,870
Acres: 0.43
Topography: Grade level
Shape: Irregular
Zoning: CI -HD, Civic Institution Health District by the City of Miami, FL
Recording Information
Sale Price: $2,023,000
Sale Date: February 2015
ORB/Page: 29515/3016 in a warranty deed
Grantor: 1501 NW 13 CT, LLC
Grantee: HTG Miami -Dade 5, LLC
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Various publications, Costar and MLS
Comments
This is the purchase of two vacant parcels located along the north side of NW 15th Street, where NW 13th
Court intersects. The buyers are building a 73-unit affordable housing project. The highest and best use is
for multi -family residential development.
Legal Description
Lots 1 and 2, Block 1, GOLFVIEW PARK, according to the Plat thereof, as recorded in Plat Book 11, Page
71 of the Public Records of Miami -Dade County, Florida
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 51
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 6
Property Location
641 NW 12th Avenue
Miami, FL 33136
Miami -Dade County
Property Identification
Tax ID: 01-4102-005-0140, -0160,
-0130 and -0120
WRI No: 303923
Units of Comparison
Price/Sq.Ft.: $77.83
Price/Acre: $3,386,974
Property Description
Square Feet: 33,075
Acres: 0.76
Topography: Grade level
Shape: Rectangular
Zoning: T6-8-O, Urban Core Open Transect Zone and D-1, Work Place District Zone by the
city of Miami, FL
Recording Information
Sale Price: $2,574,100
Sale Date: February 2015
ORB/Page: 29502/2640 in a warranty deed
Grantor: Alves S. and Cynthia Lopez Cambridge
Grantee: Broward Havana, LLC
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Carlos Miranda, Listing agent with Fausto Commercial Realty (305-431-2258)
Comments
This is the sale of four adjoining parcels located at the southeast corner of NW 12th Avenue and NW 7th
Street. The agreed upon sales price was $2,680,000 or $81 per square foot, but the property had
contamination and sold for $2,574,100 or $78 per square foot. The buyers intend to build a self -storage
facility. The highest and best use is for mixed -use development to include light industrial and commercial.
Legal Description
Lots 6, 7, 8, 9, 10, less the North 10 feet of Lots 6, 7, and 8, and Less the West 7.5 feet of Lots 8, 9 and 10,
Block 2, LAWRENCE ESTATE LAND COS SUBDIVISION, according to the Plat thereof, as recorded
in Plat Book 2, Page 46 of the Public Records of Miami -Dade County, Florida
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 52
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Comparable Land Sale 7
Property Location
1670-1690 NW North River Drive
Miami, FL 33125
Miami -Dade County
Property Identification
Tax ID: 01-3135-011-0010 and
-0020
WRI No: 303925
Units of Comparison
Price/Sq.Ft.: $119.28
Price/Acre: $5,189,076
Property Description
Square Feet: 103,540
Acres: 2.38
Topography: Grade level
Shape: Irregular
Zoning: T6-8-O, Urban Core Open Transect Zone by the city of Miami, FL
Recording Information
Sale Price: $12,350,000
Sale Date: Pending Sale
ORB/Page: Not yet recorded
Grantor: Mapocho Development, LLC and National Organization of the New Apostolic Church
of North America
Grantee: Not yet recorded
Financing: All cash to the seller
Prior Sale: None in the past five years
Verification: Mario Fernandez, Listing Agent (786-344-4544)
Legal Description
Lots 2 and 3 of ST. JOHN PARK according to the plat there of as recorded in Plat Book 5 at Page 19, of
the Public Records of Miami -Dade County, Florida, except those portions previously conveyed to the city
of Miami by deed dated October 31, 1929 and recorded in Deed Book 1348, Page 289, of the Public Records
of Miami -Dade County, Florida, and by deed dated November 14, 1930, as recorded May 2, 1932 under
clerk's file number H-6658, of the Public Records of Miami -Dade County, Florida.
Less a portion of lots 2 and 3 of ST. JOHN PARK, according to the plat thereof recorded in Plat Book 5 at
Page 19 of the Public Records of Miami -Dade County, Florida, more particularly described as follows:
Begin at northwest corner of said lot 2, thence run southeasterly along the northeasterly line of said lots 2
and 3 for a distance of 174.4 feet to the northeast corner of said lot 3, thence run southerly along the east
line of said lot 3 for a distance of 3.25 feet to a point of intersection with a line which is 3.25 feet south of
and parallel to the northeasterly line of said lot 3; thence run northwesterly along the line which is 3.25 feet
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 53
Sales Comparison Approach Vacant Land at 1455 NW 17th Street, Miami, FL 33125
south of and parallel to the northeasterly line of said lot 3 for a distance of 12.33 feet; thence deflecting to
the left for an angle of 1 *40'45" run northwesterly for a distance of 95.05 feet to the point of curvature of a
circular curve to the left; thence run northwesterly to southwesterly along the arc of said circular curve to
the left, having a radius of 50.00 feet, through a central angle of 80* 13"57 for an arc distance of 70.02 feet
to the point of intersection with the west line of said lot 2; thence run northerly along the west line of said
lot 2 for a distance of 53.04 feet to the point of beginning; less that portion thereof, previously conveyed to
the city of Miami by warranty deed dated October 31, 1929 and recorded in Deed Book 1348, at Page 289,
of the Public Records of Miami -Dade County, Florida and.
Lot 4, less the north 3.25 feet for right-of-way, ST. JOHN PARK, as recorded in plat book 5 at page 19 of
the Public Records of Miami -Dade County, Florida.
Comments
This is two adjoining vacant parcels located at the southeast corner of NW 17th Avenue and NW North
River Drive with frontage along the Miami River. They abut the NW 17th Avenue bridge. The parcels are
owned by two separate entities with an asking price of $12,350,000 or $119 per square foot. The listing
agent confirmed the properties are under contract for the asking price. The highest and best use is for multi-
family residential development.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 54
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Adjustment Grid
Below is a grid which illustrates qualitative adjustments used to compare the comparable sales to
the subject property. Percentage adjustments were not utilized. In order to utilize percentage
adjustments, it would be necessary to pair (compare) sales to extract value differences. This is
difficult as there is normally insufficient data to provide pairings for all value differences. Below
is a grid which illustrates the adjustments made. A plus (+) sign indicates the unit of comparison
of the sale must be adjusted upward as that characteristic is inferior to the subject. A minus (—)
sign indicates the unit of comparison of the sale must be adjusted downward since the characteristic
is superior to the subject. An equal (=) sign indicates the comparable sale characteristic is similar
to the subject.
Sale
1
2
3
4
5
6
7
Price Per Square Foot
$103.83
$147.69
$75.96
$93.05
$107.21
$77.83
$119.28
Property Rights Conveyed
Financing
Conditions of Sale
Market Conditions (Time)
_
_
+
+
+ +
+ +
_
Location
+
- - -
+
+
_
+ +
-
Zoning
=
_
+ +
_
+
Size
++
++
_
_
- -
_
++
Shape
+
_
+
_
+
Overall Adjustment
+
-
+ +
+
+
+ +
+
After considering the individual differences, either a plus (+), minus (—) or equal (_) sign has been
placed in the "Overall" column. This indicates the overall adjustment that the sale would require
as compared to the subject property.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 55
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Analysis of Sales
Following is the discussion and comparison of various characteristics of the sales as compared to
the subject property.
Financing:
The financing of the sales did not indicate any adjustments of their sale prices are warranted for
favorable fmancing. The sales were all financed with loans at or near market rates, or purchased
for all cash.
Conditions of Sale:
This category considers if the comparable sales were arm's length. An arm's length sale means the
buyer and seller each acted prudently, knowledgeably, and were under no necessity to buy or sell,
i.e., a sale that is other than a forced or liquidation sale. Also considered are if any of the sales
were purchased by an adjoining owner, whereby a premium was paid. None of the sales required
adjustment for this category.
Market Conditions (Time):
This adjustment considers current market conditions as compared to market conditions in place at
the time of the respective sale. Sales 1 and 2 occurred in late 2015 and Pending Sale 7 is current;
hence no adjustments were required. Sales 3 to 6 had contracts signed in late-2015 and early 2015.
Land values have increased since that time; therefore, adjustments to these sales was applied
accordingly.
Location:
Sales considered superior to the subject were adjusted downward. Sales considered inferior to the
subject were adjusted upward. Those sales considered similar did not require an adjustment. Sales
1, 3, 4 and 6 were considered inferior in location due to being further from the Civic Center area;
Sale 2 and Pending Sale 7 were considered superior in that they were directly on the river or in
Wynwood and Sale 5 was considered similar in location.
Zoning:
Sales 1, 2, 4, 6 and Pending Sale 7 have the same zoning as the subject property with no adjustment
necessary. Sales 3 and 5 have inferior zonings allowing less uses and/or lower densities and were
adjusted accordingly.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 56
Sales Comparison Approach Vacant Land at 1455 NW 17th Street, Miami, FL 33125
Size and Shape:
The size adjustment is based on the principle of economies of scale whereby larger sites tend to
sell for less per square foot. Smaller sites were considered superior and adjusted downward, larger
sales were considered inferior and adjusted upward and those sales similar in size were not
adjusted. The subject property is 42,309 square feet. Sales 1, 2 and Pending Sale 7 (103,540
square feet to 110,753 square feet) were larger by a high enough margin with positive adjustments
necessary, while Sale 5 (18,870 square feet) was smaller by a big enough margin with a negative
adjustment necessary. Sales 3, 4 and 6 (33,075 square feet) are close enough in size with no
adjustment necessary.
The shape adjustment relates to the sales being of a similar shape to the subject which is rectangular
and one contiguous. Sales which are irregular in shape where construction can be impeded or
costlier and/or not a single contiguous parcel are inferior and would be adjusted upwards. Sales 2,
4, 6 and Pending Sale 7 are similar in shape with no adjustment necessary. Sales 1 and 3 consist
of two or more non-contiguous parcels, which is considered to be inferior and required positive
adjustments. Sale 5 is irregular in shape and was also adjusted upwards.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 57
Sales Comparison Approach Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Conclusion of Land Value by the Sales Comparison Approach
The sales comparison approach compared similar properties to the subject property and
adjustments were made for the pertinent characteristics. Based on these comparisons a value was
estimated for the subject property. Sale prices per square foot (including Pending Sale 7) range
from $75.96 to $147.69 with a mean of $103.55 per square foot and a median of $103.83 per
square foot.
After adjustment on a cumulative basis a cumulative basis Sales 1, 3, 4, 5, 6 and Pending Sale 7
($75.96 to $119.28 per square foot) were considered inferior and required positive (upward)
adjustments. Sale 2 ($147.69 per square foot) was considered superior and required a negative
(downward) adjustment. Therefore, the subject property should have a value greater than $119.28
per square foot and less than $147.69 per square foot. Considering six of the seven sales have sales
prices less than $107.21 per square foot and Pending Sale 7 is under contract for $119.28 per
square foot, a value at the top of the range of the majority of the sales is considered to be
appropriate. The analysis considers the high demand in the area and the increasing prices with
significant activity.
Also considered are the following listings:
Listing
Address
Asking
Price
Land
Size
Price/
Sq.Ft.
Zoning
1
1625 NW 20t' Street
$5,950,000
73,442
$81
T6-8-O
2
1991 NW 27' Avenue
$2,800,000
31,147
$90
T6-8-O
The listings are $81 per square foot and $90 per square foot. They are considered inferior in
location to the subject property as they are further from the Civic Area and set the low end of larger
parcels with similar zoning to the subject property. No listings were available in the immediate
area as when properties are placed on the market in this location they are purchased if properly
priced.
After considering the sales data available and the factors influencing value described, it is
concluded that the subject land has a value, as if vacant, of $125 per square foot. The estimated
land value equals 42,309 square feet times $125 per square foot, equal to $5,300,000 (rounded).
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 58
Reconciliation of Value Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Reconciliation of Value
The reconciliation process considers the approaches which were utilized in this report. Each
approach to value is analyzed as to its reliability and applicability. These approaches indicated the
following values:
Cost Approach Not applicable
Income Capitalization Approach Not applicable
Sales Comparison Approach $5,300,000
The cost approach estimates the land value and adds the depreciated value of the improvements.
As the land being appraised is vacant, this approach is not applicable and was not applied herein.
The income capitalization approach analyzes the projected income and expenses of a property and
capitalizes the net income into a value estimate. Typically, vacant land is not purchased based on
its ability to generate income. This approach is not applicable and was not applied herein.
The sales comparison approach compares sales of similar properties to the subject property and is
the only applicable approach to value. These sales were analyzed for differences such as conditions
of sale, financing, market conditions, location, zoning, shape/size, and other characteristics. The
strength of this approach relies on the quality of the comparable sales. Sales which closely
resemble and can be compared easily with the subject are most desirable. The sales utilized were
considered comparable and make the sales comparison approach the only reliable indication of
value.
As the subject property is vacant land total reliance was placed on the sales comparison approach.
The subject property has an indicated As Is market value of the fee simple interest as of February
24, 2016 in the amount of $5,300,000.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 59
Addenda Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Addenda
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Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 60
Addenda Vacant Land at 1455 NW 17th Street, Miami, FL 33125
County Area Description
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 61
FRED
Addenda Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Miami -Dade County and Area Description
General Overview
Miami -Dade County, often referred to as "Miami" is known internationally for its weather,
beaches, banking, fine art, shopping, and Latin culture. While many pass through the Cruise
Capital of the World, 2.5 million people call it home.
Miami -Dade County is at the southeastern tip of Florida and is the south -easternmost state in the
continental United States. Its land area is approximately 1,946 square miles and is bordered by
Broward, Collier, and Monroe Counties to the north, southwest, and south, respectively. The
county is bordered by the Atlantic Ocean to the East and Everglades National Park to the West.
Demographics
As of the 2013 Census report, Miami -Dade County has 2,496,435 residents. Over half of those
were born outside the United States; 70 percent fall between the ages of 25 and 55. As depicted
in the following graph, the county's population has risen steadily since 1970.
2,600
2,600
2,400
2,200
2.000
1,800
1,600
1,400
1,200
M cr i Fs;�;ri ...non rh Mrnrnp-Dade County, FL (Fi.MIAM6PCP)
Source: U.S. DeparVn nt cif Commerce, Census Bureau
EP
_.a 1
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Shaded areas indicate US recessions.
2014 research.sUordsikd.arg
Miami -Dade County Population Projections
2015 Projection
based on 2011
Estimate
Percentage change
2011 to 2015
2020 Projection
based on 2011
Estimate
Percentage change
2011 to 2020
2,591,790
3.8%
2,717,631
4.9%
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 62
Addenda Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Miami has a positive reputation for international business, and developers are marketing their new
projects to those individuals. Therefore, the county's population is expected to increase at an even
greater rate approaching the year 2020.
Miami is the largest city in the County. Other populous municipalities include Hialeah, Miami
Gardens, Miami Beach, and unincorporated land. Actively growing are some new cities since 2000
such as Cutler Bay and Doral.
Brief History
Miami was founded in 1866 after the end of Spanish rule in Florida. Before the turn of the century,
prominent figures such as William and Mary Brickell and Henry Flagler established a community
and connected the young city to the rest of the United States. Island people moved here for work.
In 1910, John Collins discovered fresh water on Miami Beach, and within a decade, the population
soared, and businessmen bought up the land. The city quickly became a popular spot for tourists,
but it crumbled under the hurricane of 1926. During the decades of war, parts of Miami -Dade
County became training grounds for military. Residents then slowly built back up the tourism
industry.
The early 1960's marked the beginning of the arrival of large numbers of Cuban Refugees into
Miami -Dade County and South Florida. In the years following, significant numbers of immigrants
have come from Haiti, Cuba and other Latin American countries.
Government
Miami -Dade County has a strong mayor form of government, with nine elected individuals (one
mayor and eight commissioners) making up the Miami -Dade County Board of Commissioners.
The mayor appoints a professional administrator to manage the daily activities of the county
government and a county attorney to handle its legal matters.
Some governmental activities, services and functions previously handled by individual
municipalities are now handled by the county. Among these are real property assessment and
valuation, health and welfare, most water and sewers, traffic engineering, public libraries, public
transportation, public housing, urban renewal, seaport, airport, regional parks and air and water
pollution control. In addition to these, Miami -Dade County provides services to the unincorporated
areas of the county such as: police and fire protection, building and zoning regulation, trash and
garbage collection and disposal, parks and recreation, consumer protection and corrections and
rehabilitation of adults and youth offenders.
Waronker & Rosen, Inc. 0 Real Estate Appraisers & Consultants 63
Addenda Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Economic Base
The primary industries that support Miami -Dade County's economy through employment are
trade, transportation and utilities, followed by education/health services and government. The most
known is tourism, a major industry for Miami -Dade County. The following chart reflects the
county's demographics by trade, with tourism ranking the highest number of companies, followed
by retail and finance, insurance and real estate.
Miami -Dade County
Demographics by Trade
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
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Source: The Beacon Council
A year-round growing season allows the agricultural industry to be the top vegetable supplier and
producer in the country. The industry employs more than 20,000 people and produces more than
$2.7 billion in economic benefits each year. As a result, agritourism has sprouted an industry
throughout the agricultural area where visitors can sample and purchase locally grown products.
Transportation
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Miami International Airport (MIA) and its linkages are considered to be the driving force for
growth behind its surrounding area. Airport traffic in 2013 included over 40 million passengers, 2
million tons of freight, and 2 million tons of cargo. Other airports within the county include
Kendall-Tamiami Airport and Opa-locka Executive Airport. The aviation industry directly and
indirectly contributes $26.7 billion and 282,043 jobs to the local economy.
PortMiami annual activity includes 4.3 million cruise passengers and 7.4 millions of tons of cargo.
The port contributes more than $27 billion annually to the South Florida economy and helps
provide direct and indirect employment for more than 207,000 individuals. It had been undergoing
construction for a two-way underwater tunnel between the port and downtown Miami. The Deep
Dredge Project, set to deepen the channel from its current 42-foot depth to minus 50 feet in order
to accommodate super cargo ships has been completed in 2015.
Within Miami -Dade County, major roads include the Palmetto Expressway (State Road No. 826),
a major north/south expressway; the Dolphin Expressway (State Road No. 836), a major east/west
expressway; Interstate 95 and the Florida Turnpike. All of these represent Miami's expressway
network and make almost any destination in Miami -Dade County within 30 to 45 minutes driving
time.
Transportation systems include a Busway in south Miami -Dade County linking to Metrorail, an
elevated rail rapid transit system connecting portions of Miami -Dade County. In July 2012, a new
Metrorail station in MIA links south Miami -Dade County, downtown Miami and the entire
elevated rail line. The enables seamless connections to the Metromover systems and to a web of
transportation arteries in neighboring counties leading to the rest of Florida.
The Miami Intermodal Center (MIC) links the airport, East/West Rail, Amtrak, Tri-Rail,
Airport/Seaport Connector and Metrorail mainline rail. Located near the State Road No. 836/State
Road 112 Connector, it presently contains the bulk of the rental car agencies. East of the airport
in the future it will contain retail, commercial, residential and tourist -designed development.
The Metromover automated people mover system is located in downtown Miami and is an off-
shoot of the Metrorail system. There are also Metrobus buses, most of which are in service daily
throughout the county. The Metromover system includes the Brickell Avenue financial district and
also runs north to the Omni area. Other transportation services in Miami -Dade County include Tri-
Rail, railroads and taxicabs. Railroad service by Amtrak is accessible in northwest Miami -Dade.
Tri-Rail is South Florida's commuter train system which services Miami -Dade, Broward and Palm
Beach Counties.
Education
Based upon student population, the Miami -Dade County School system is the fourth largest public
school system in the nation with 415 institutions including elementary, middle, high, K-8, charter,
alternative and magnet schools. Many private institutions exist as well.
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Several colleges and universities located in the county are University of Miami, Barry University,
Florida International University, Miami -Dade Community College, St. Thomas University,
Florida Memorial College and Johnson & Wales University.
Medical
Miami -Dade County has the largest concentration of medical facilities in Florida. The largest
institution is Jackson Memorial Medical Center, the second largest public hospital in the nation
which shares many teaching, treatment and research capacities with the University of Miami.
Private hospitals include Baptist Health System, Mercy, Miami Children' s, and Mount Sinai.
Sports
Professional, college and even local neighborhood sports draw spectators, participants and
investors to a high degree and create a positive atmosphere. Professional football (Miami
Dolphins), basketball (Miami Heat), baseball (Miami Marlins) and ice hockey (Florida Panthers)
are continual draws. As of January 2014, business negotiations are currently underway to bring
Major League Soccer to Miami. There are two horse tracks and a dog track. Several of these tracks
have been approved for slot gambling or table gambling, depending upon location in a municipality
or Indian reservation. Also offered are golf, tennis, as well as the numerous water sports, given the
significant bodies of water.
Arts and Culture
Known for the wealth of ethnic diversity and heritage, Miami -Dade County has a cultural mix of
festivals, concerts, theater, and dance performances. Adrienne Arsht for the Performing Arts of
Miami -Dade County opened in 2006 and is home to the Concert Association of Florida, Florida
Grand Opera, Miami City Ballet, and the New World Symphony. The county is also home to
several museums and wildlife attractions.
Summary
During its history, Miami -Dade County and the Greater Miami area have experienced significant
changes and growth. Trends indicate that the growth will continue with Miami -Dade County
rapidly becoming an international city with a diverse culture. The economic base and the bilingual
population should continue to attract new residents and businesses into Greater Miami.
Sources including, but not limited to:
United States Census Bureau (Jan. 2014). http://quickfacts.census.gov/gfd/states/12/12086.html
Miami -Dade County Portal (Jan. 2014). www.miamidade.gov
The Beacon Council (Jan. 2014). www.beaconcouncil.com
Federal Reserve Economic Data (Jan. 2014). http://research.stlouisfed.org/fred2/
Miami Herald (various articles). http://www miamiherald.com/
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Flood Zone Map
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Flood Zone Map
flrvation 1111
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Engagement Letter
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SCOPE OF WORK - APPRAISAL
Land Acquisition I)ue Diligence For the 0,97 acres of raw land in Ma'am 1•Dade County
Miami, Florida
Task Order Ai: VA101.16-F-0003
Date:
Background and Proposed Action
The U. S. Department of Veterans Affairs (`VA.,) seeks to acquire land in or around Miami -Dade County,
Florida. VA is presently exploring a site which can be found at www.miarnidade.gov using property
search Folio numbers; 01-3135.087-0010 and 01-3135-087-0012 and both parcels cornbine for the 0.97
acres.
Vendor shalt perform work for the site described in Appendix A. Ail work shall be conducted in
compliance with the Property Access Agreement ottoched to this SOW as Appendix 8.
Deliverable Format
All items shall be delivered to VA in the form of high resolution electronic PDF. tf the File is larger than
5Megs, please include a QD or DVD containing such files. VA will not accept paper or hard -copy
documents.
Linked title commitments are preferred.
h OWE CT1VE
The objective of this Scope of Work (SOW) is to obtain appraisal services for the
acquisition of a real property interest by the United States of America (acquiring agency is the
U.S. Department of Veterans Affairs (VA)).
11. APPRAISAL
A licensed appraiser shall prepare and deliver a complete, self-contained narrative appraisal
report for the site in accordance with the Code of Ethics of the Appraisal institute and the
Uniform Standards of Professional Appraisal Practice- The appraisal shall also conform to the
Uniform Appraisal Standards for Federal Land Acquisitions (also referred to as the yellow Bonk),
a copy of which is attached as Appendix C. If the appraisal fails to meet the Yellow Book
requirements, it will be returned for correction. Appraisal methods shall involve the application
of standard approaches to real property value; namely the cost, income and market
comparable approaches.
The appraisal report shall be completed and provided to the VA PM in electronic format, nD
later than 30 days following the date of acceptance of the contract,
11.
A. Confidentiality & Conflict of Interest
The Contractor shall sign a confidentiality agreement and will not engage a transaction
in which the company, and principles, or persons working directly with the transaction, have a
financial interest in the real estate contemplated herein. The Contractor shall immediately
notify Government of any potential conflicts that may arise.
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Last Update; Nov, 2014
Page 2 of 5
SCOPE OF WORK — APPRAISAL
Land Acquisition Due Diligence For the 0.97 acres of raw Land in M iarr i- I l th County
Miami, Florida
R. Adherence to Applicable Laws and Regulations
The °rig-ITractor agrees to comply with all federal and state laws and reguLations that are
api,iirabie
IST OF APPENDICES:
Appe i rJut A: Site Description/Map
Appe 1 dix B; Property Access Agreement
Appe 7 dux C: U n itorm Appraisal Standards eiWeiluw Book}
Appc 1 dix D: Canfidenttality arid Conflict of lnteres(
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Addenda
Vacant Land at 1455 NW 17' Street, Miami, FL 33125
Last Update: Nov. 201.4
Page 3 of 5
SCOPE OF WORK — APPRAISAL
Land Acquisition Due Diligence For the 0_97 acres of raw land in Miami -Dade County
Miami, Florida
APPENDIX A
SITE OVERVIEW
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Last update: Nov. 2014
Page 4 of 5
SCOPE OF WORK - APPRAISAL
Land Acquisition Due Diligence For the 0.97 acres of raw land in Miami -Dade County
Miami, Florida
APPENDIX
ACCESS AGREEMENT
APPENDIX C
www.justico.govl /legacyf2D Oil litB/UnIforrn-Appraisal-Standards pet
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Appraiser Licenses
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RICK SCOTT, GOVERNOR
KEN LAWSON SECRETARY
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
FLORIDA REAL ESTATE APPRAISAL BD
The CERTIFIED GENERALAPPRAISER
Named below IS CERTIFIED
Under the provisions of Chapter 475 FS
Expiration date- NOV 30 2016
ROSEN- JOSH LAWRENCE
5730 SW 74TH ST
SOUTH MIAMI FL 33142
RICK SCOTT, GOVERNOR
KEN LAWSON, SI:CHt:IARY
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
FLORIDA REAL ESTATE APPRAISAL SD
LICENSE Numse t
�23697
The CERTIFIED GENERALAPPfv;ISER
Named below 15 CERTIFIED
Under the provisions of Chapter 475 FS.
Expiration date NOV 30, 2016
PUENTE. ALEJANDRO CARLOS
10033 SW 77TH COURT
MIAMI FL 33156•' ---
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