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HomeMy WebLinkAboutBack-Up DocumentsFLOFOIL Roman Wunderlich co -Founder MonkiBiz, LLC 2027 SE 10th ave, ste 701 Ft. Lauderdale, FL 33316 roman.wunderlich@gmail.com +1.617.515.5181 07/12/2024 City of Miami Department of Real Estate & Asset Management 444 SW 2nd Ave Miami, FL 33130 Dear Gabriela, I am writing to provide an updated Letter of Intent for leasing a space at the Marine Stadium Marina. We are excited about the opportunity to expand our water sports and recreational activities to this vibrant location and contribute positively to the marina community. We would like to propose a starting rent of $3,500 per month for a 12-month lease term, with the option to extend. We understand that month -to -month leases are commonly used for waterfront properties. However, we are open to a month -to -month agreement if a 12-month term is not possible. Additionally, we are willing to incorporate a 3% annual rent increase to align with market changes and demonstrate our commitment to a long-term partnership. Our vision for the space remains aligned with our original proposal, including the following activities: 1. Electric Hydrofoil Lessons, Tours, and Rentals 2. Wing Foiling Lessons 3. Paddleboarding Tours FLOFOIL 4. Kitesurfer Boat Taxi Service 5. Retail Store for Water Sports Equipment 6. Food and Beverage Offerings Our space will serve as a central hub for our lessons and activities, which will take place at Marine Stadium and Hobie Beach. Additionally, we envision it as a lifestyle meeting point, where cyclists, kitesurfers, and other outdoor enthusiasts can gather, watch water sports videos, and participate in small shop events. We would like to have a few tables outside for customers to sit and socialize, fostering a sense of community. Currently, we operate our business successfully out of the back of a truck, and a physical location would significantly enhance our operations by increasing gear sales and lesson volume. The proposed space will only require minimal renovations, which will not necessitate any permitting. Please let us know if this proposal aligns with the City's vision for the Marine Stadium Marina. We are available to discuss further details or make any necessary adjustments. Thank you for your time and consideration. Sincerely, Roman Wunderlich co -Founder Monkibiz, LLC Titg of 41Fliami ARTHUR NORIEGA V City Manager September 19, 2024 Mr. Roman Wunderlich MonkiBiz, LLC. E-mail: roman.wunderlich@gmail.com RE: City -owned Property located at: 3501 Rickenbacker Causeway, Miami, FL 33149 (Property) Folio Number 01-4217-000-0030 Dear Mr. Wunderlich: I wish to take this opportunity to convey the interest of the City of Miami (City), in leasing the Property referenced above at the Marine Stadium Marina to MonkiBiz, LLC (Licensee). This letter summarizes our recent discussions to lease the above Property; it is not intended to be contractual in nature. This letter is intended to outline initial terms for consideration only and is no manner intended to obligate any party contractually and no such obligation shall arise until a mutually satisfactory agreement is fully executed by, and delivered to, all parties. This offer is subject to final approval of the City and execution of a mutually agreed upon agreements under the following terms and conditions: Landlord: City of Miami Licensee: MonkiBiz, LLC Premises: ± 1,096 square feet of City -owned Property located at: 3501 Rickenbacker Causeway, Miami, FL 33149 Term: 12 months Options: One (1) renewal option for One (1) year at the City's option. Use: The property shall be used as a retail store selling exclusively equipment for non -motorized watersports and outdoor activities. Termination: At the request of either party without cause by providing thirty (30) days written notice to prior to the effective date of the revocation. DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT 444 S.W. 2nd Avenue, 3rd Floor, Miami, Florida 33130 Assignment or Transfer: Licensee cannot assign or transfer its privilege of occupancy and use granted unto it by this Agreement. Monthly Rent Fee: $4,500 Annual Escalation: 3% Sales Tax: Licensee shall pay the applicable sales tax equivalent to 3% in Miami Dade County. Security Deposit: $9,000 Utilities: Licensee shall pay for all utilities within the Property. Delivery Conditions: The Licensee accepts the Premises as it currently stands, "as is," acknowledging that it comes without any guarantees from the City concerning its condition, and irrespective of any latent or obvious defects. It is the Licensee's sole responsibility, at its own expense, to maintain the Property in good condition, factoring in reasonable wear and tear. Improvement Allowance: None Alterations: The Licensee must obtain the City's written approval, which may be conditioned, denied, or approved in its sole discretion, prior to making any alterations, additions, or improvements (collectively referred to as "alterations") to the Property. If you have further questions, please contact Gabriela Alfonsin, Lease Manager, with the City of Miami, Department of Real Estate and Asset Management at (305) 416-1461. Should you accept this offer, please sign and return this letter of interest within three (3) working days, upon receipt, the City shall prepare an agreement document incorporating the provisions herein and other such provisions acceptable to both parties. Sincerely, By: Luis Padrino Sign: Andrew Frey, Director Date: 09/19/2024 DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT 444 S.W. 2nd Avenue, 3rd Floor, Miami, Florida 33130 Page 2 BLAKE Market Rental Study 3501 Rickenbacker Cswy - Marina Space 3501 Rickenbacker Causeway Miami, Miami -Dade County, FL 33149 Job # L-07-24-015 PREPARED FOR Mr. Danny Lozano Property Management Specialist City of Miami, Department of Real Estate & Asset Management 444 SW 2nd Avenue, Third Floor Miami, FL 33130 PREPARED BY Joseph J. Blake and Associates, Inc. 5201 Blue Lagoon Drive Suite 270 Miami, FL 33126 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 5201 Blue Lagoon Drive, Suite 270 I Miami, FL 33126 I Phone: (305) 448-1663 I Fax: (305) 448-7077 I www.josephjblake.com September 13, 2024 Mr. Danny Lozano Property Management Specialist City of Miami, Department of Real Estate & Asset Management 444 SW 2nd Avenue, Third Floor Miami, FL 33130 Re: 3501 Rickenbacker Cswy - Marina Space 3501 Rickenbacker Causeway Miami, FL 33149 Dear Mr. Lozano: As requested, we have prepared a market rent study, presented in the attached report. The purpose of the report is to develop an opinion of the market rent for the marina space. Value Date of Value Interest Appraised Value Type "Market Rent Monthly" 8/29/24 Fee Simple Estate Market Rent "Market Rent Annual" 8/29/24 Fee Simple Estate Market Rent Briefly described, the subject consists of an average quality 1-story repair shop/ancillary building in average overall condition, containing approximately 1,096 SF of net rentable area, constructed in 1980. The property is currently vacant. Within this report we are concluding to a market rent, as such, this report is considered an appraisal as per the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal and the attached Appraisal Report have been prepared in conformity with and are subject to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP). In preparing this appraisal, we considered the use of the three most widely recognized approaches to value: the Cost, Income Capitalization and Sales Comparison Approaches. The appraisal did not use or rely upon unsupported conclusions relating to bias, such as characteristics relating to race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, disability, group homogeneity, or any other prohibited basis. Based on the analysis of pertinent physical and economic factors, we have arrived at the following value opinions: Market rent breakdown for Marina Space: 1,096 SF x $40.00 per SF (gross) = $43,840 or rounded to $45,000 annually or $3,750 monthly Value Date of Value Interest Appraised Value Opinion "Market Rent Monthly" 8/29/24 Fee Simple Estate "Ma rket Rent Annua I" 8/29/24 Fee Simple Estate $3,750 $45,000 EXTRAORDINARY ASSUMPTIONS This appraisal is not based on any extraordinary assumptions. HYPOTHETICAL CONDITIONS This appraisal is not based on any hypothetical conditions. Regional Offices: Atlanta 1 Boston I Chicago I Dallas I Los Angeles I Miami I Orlando I Phoenix 1 New York City I San Antonio San Francisco I Washington D.C. Blake & Sanyu Alliance: Tokyo I Osaka I Nagoya I Tohoku September 13, 2024 Mr. Danny Lozano Page 2 of 2 The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly priced and actively marketed. The attached market rent study summarizes the documentation and analysis in support of our opinions. If you have any questions, please contact the undersigned. We thank you for retaining the services of our firm. Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. Ted Allen, MAI Managing Partner Florida -State -Certified General Real Estate Appraiser No. RZ426 Expires: November 30, 2024 tallen@josephjblake.com Orlando Santos Associate Appraiser Florida -State -Certified General Real Estate Appraiser No. RZ4535 Expires: November 30, 2024 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 TABLE OF CONTENTS TITLE PAGE TRANSMITTAL LETTER EXECUTIVE SUMMARY 1 PHOTOGRAPHS OF THE SUBJECT 2 CERTIFICATION 4 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 6 INTENDED USER AND USE OF THE APPRAISAL 8 PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT 8 PURPOSE OF THE APPRAISAL AND PROPERTY RIGHTS APPRAISED 8 DEFINITION OF VALUE 8 EXPOSURE TIME 8 MARKETING TIME 8 SCOPE OF THE APPRAISAL 9 IDENTIFICATION OF THE PROPERTY 10 CURRENT USE OF THE SUBJECT 10 HISTORY OF THE SUBJECT 10 AREA ANALYSIS 11 NEIGHBORHOOD ANALYSIS 20 NATIONAL MARKET ANALYSIS 25 DESCRIPTION OF THE SITE 27 DESCRIPTION OF THE IMPROVEMENTS 29 ZONING 30 TAXES 31 HIGHEST AND BEST USE 33 ANALYSIS OF DATA AND CONCLUSIONS 35 ADDENDA Replacement Cost for Insurance Purposes Total Gross Building Area Legal Description Zoning Information Flood Map Tax Information Appraisal Engagement Contract Glossary of Terms Qualifications of the Appraisers JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 EXECUTIVE SUMMARY PROPERTY SUMMARY PROPERTY APPRAISED 3501 Rickenbacker Cswy - Marina Space PROPERTY ADDRESS 3501 Rickenbacker Causeway Miami, FL 33149 PARCEL/TAX ID 01-4217-000-0030 PROPERTY LOCATION The subject is located along the Rickenbacker Causeway, with the Key Biscayne neighborhood. PURPOSE OF THE APPRAISAL Value Date of Value Interest Appraised Value Type "Market Rent Monthly" 8/29/24 Fee Simple Estate Market Rent "Market Rent Annual" 8/29/24 Fee Simple Estate Market Rent PERTINENT DATES DATE OF INSPECTION August 29, 2024 DATE OF REPORT September 13, 2024 DATE OF "MARKET RENT" August 29, 2024 HIGHEST AND BEST USE AS IMPROVED The current improvements AS IF VACANT Commercial uses that takes advantage of the subject's location within a marina. PROPERTY DATA IMPROVEMENT DATA Briefly described, the subject consists of an average quality 1- story repair shop/ancillary building in average overall condition, containing approximately 1,096 SF of net rentable area, constructed in 1980. The property is currently vacant. SITE DESCRIPTION The subject's site contains 2,690 SF or 0.06 acres of land. CURRENT USE As of the date of the value opinion(s), the subject was being used as marina space. For the purposes of this report, the subject is valued as marina space. ZONING "CS," Civic Space Zone under the jurisdiction of the City of Miami. CENSUS TRACT 12-086-9804.00 VALUE SUMMARY Marina Space Market Rent Market Rent Monthly $3,750 Market Rent Annually $45,000 Market rent breakdown: 1,096 SF x $40.00 per SF (gross) = $43,640 or rounded to $45,000 annually or $3,750 monthly JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 1 3501 Rickenbacker Cswy - Marina Space 24-237-02 PHOTOGRAPHS OF THE SUBJECT Subject Front Subject Interior Subject Interior Subject Interior Subject Interior Subject Interior JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 2 3501 Rickenbacker Cswy - Marina Space 24-237-02 PHOTOGRAPHS OF THE SUBJECT JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 3 3501 Rickenbacker Cswy - Marina Space 24-237-02 CERTIFICATION We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. • We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • Ted Allen, MAI, has not made a personal inspection of the property that is the subject of this report. Orlando Santos, has made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the persons signing this certificate. • As of the date of this report, Ted Allen, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. • The Appraisal Report is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. In addition, our engagement was not contingent upon the appraisal producing a specific value and neither engagement, nor employment, nor compensation, is based upon approval of any related loan application. • The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • We are professionally competent to perform this appraisal assignment by virtue of previous experience with similar assignments and/or appropriate research and education regarding the specific property type being appraised. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 4 3501 Rickenbacker Cswy - Marina Space 24-237-02 CERTIFICATION JOSEPH J. BLAKE AND ASSOCIATES, INC. Ted Allen, MAI Orlando Santos Managing Partner Associate Appraiser Florida -State -Certified General Real Estate Appraiser Florida -State -Certified General Real Estate Appraiser No. RZ426 No. RZ4535 Expires: November 30, 2024 Expires: November 30, 2024 tallen@josephjblake.com JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 5 3501 Rickenbacker Cswy - Marina Space 24-237-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS This Appraisal Report is subject to underlying assumptions and limiting conditions qualifying the information contained in the Report as follows: The valuation opinion(s) apply only to the property specifically identified and described in the ensuing Report. Information and data contained in the report, although obtained from public record and other reliable sources and, where possible, carefully checked by us, is accepted as satisfactory evidence upon which rests the final opinion(s) of property value. We have made no legal survey, nor have we commissioned one to be prepared, and therefore, reference to a sketch, plat, diagram or previous survey appearing in the report is only for the purpose of assisting the reader to visualize the property. It is assumed that all information known to the client and/or the property contact and relative to the valuation has been accurately furnished and that there are no undisclosed leases, agreements, liens or other encumbrances affecting the use of the property, unless otherwise noted in this report. Ownership and management are assumed to be competent and in responsible hands. No responsibility beyond reasonableness is assumed for matters of a legal nature, whether existing or pending. We, by reason of this appraisal, shall not be required to give testimony as expert witness in any legal hearing or before any Court of Law unless justly and fairly compensated for such services. By reason of the Purpose of the Appraisal and the Intended User and Use of the Report herein set forth, the value opinion(s) reported are only applicable to the Property Rights Appraised, and the Appraisal Report should not be used for any other purpose. Disclosure of the contents of this Appraisal Report is governed by the By -Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any opinions as to value, our identity, or the firm with which we are connected, or any reference to the Appraisal Institute or to the MAI Designation) shall be reproduced for dissemination to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior consent and written approval. We have not been furnished with soil or subsoil tests, unless otherwise noted in this report. In the absence of soil boring tests, it is assumed that there are no unusual subsoil conditions or, if any do exist, they can be or have been corrected at a reasonable cost through the use of modern construction techniques. This appraisal is based on the conditions of local and national economies, purchasing power of money, and financing rates prevailing at the effective date(s) of value. We are not engineers and any references to physical property characteristics in terms of quality, condition, cost, suitability, soil conditions, flood risk, obsolescence, etc., are strictly related to their economic impact on the property. No liability is assumed for any engineering -related issues. Unless otherwise stated in this report, we did not observe the existence of hazardous materials, which may or may not be present on or in the property. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials, may affect the value of the property. The value opinion is predicated on the assumption that there is no such material on or in the property that would cause a loss in value or extend their marketing time. No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 6 3501 Rickenbacker Cswy - Marina Space 24-237-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS Toxic and hazardous substances, if present within a facility, can introduce an actual or potential liability that may adversely affect marketability and value. Such effects may be in the form of immediate clean-up expense or future liability of clean-up costs (stigma). In the development of our opinion(s) of value, no consideration was given to such liabilities or their impact on value. The client and all intended users release Joseph J. Blake and Associates, Inc., from any and all liability related in any way to environmental matters. Possession of this report or a copy thereof does not imply right of publication, nor use for any purpose by any other than the client to whom it is addressed, without our written consent. Cash flow projections are forecasts of estimated future operating characteristics and are based on the information and assumptions contained within the Appraisal Report. The achievement of the financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may well vary from the projections contained herein. We do not warrant that these forecasts will occur. Projections may be affected by circumstances beyond our current realm of knowledge or control. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements for the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Unless otherwise stated in this report, we have no direct evidence relating to this issue and we did not consider possible non-compliance with the requirements of the ADA in forming the opinion of the value of the property. EXTRAORDINARY ASSUMPTIONS This appraisal is not based on any extraordinary assumptions. HYPOTHETICAL CONDITIONS This appraisal is not based on any hypothetical conditions. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 INTRODUCTION INTENDED USER AND USE OF THE APPRAISAL The intended user of this appraisal is the client, City of Miami, Department of Real Estate & Asset Management. We assume any affiliates, successors and assigns noted herein have the same intended use, knowledge and understanding as the original named client. The intended use of this appraisal is to assist the client with determining market rent, including a highest and best use analysis. This appraisal is not intended to be used by any other parties, for any other reasons, other than those which are stated here. Non -identified parties are not intended users of this report. PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT The date of the report is September 13, 2024. The date of the inspection was August 29, 2024. This Appraisal Report, with its analyses, conclusions and final opinions of market value, is specifically applicable to the following date(s) of valuation: Value Date of Value "Market Rent Monthly" 8/29/24 "Market Rent Annual" 8/29/24 PURPOSE OF THE APPRAISAL AND PROPERTY RIGHTS APPRAISED Value "Market Rent Monthly" "Market Rent Annual" Value Date of Value 8/29/24 8/29/24 Interest Appraised Fee Simple Estate Fee Simple Estate DEFINITION OF VALUE Value Definition Value Type Market Rent Market Rent Value Source Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the execution of a lease as of a specified date under conditions whereby • Lessee and lessor are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and • The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (Tls). EXPOSURE TIME Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) To arrive at an estimate of exposure time, we reviewed exposure periods of comparable sales and listings. We are of the opinion that 6 to 12 months is a reasonable exposure time, assuming the property was reasonably priced and actively marketed. MARKETING TIME To arrive at an estimate of marketing time, we reviewed marketing periods of comparable sales and listings. It is our opinion that a marketing time of 6 to 12 months is considered reasonable for the subject property. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 8 3501 Rickenbacker Cswy - Marina Space 24-237-02 INTRODUCTION SCOPE OF THE APPRAISAL The scope of an appraisal assignment is relative to the intended use of the appraisal. The following outlines the extent of property inspection, market data collection, verification and analysis performed for this assignment. Inspection Ted Allen, MAI, has not made a personal inspection of the property that is the subject of this report. Orlando Santos, has made a personal inspection of the property that is the subject of this report. This inspection included the interior and exterior of the subject. The inspection was visual in nature, to assess the economic condition of the property, in order to effectively compare it to other properties in the market. We are not engineers, and we did not assess the property from the standpoint of its structural integrity, or to determine whether any latent defects (water leaks, plumbing or electrical problems, etc.) were present. Subject Physical and Economic Characteristics The types of information obtained and the sources providing such information are detailed in the following table. Information Sources Information Type Received? Source Total Gross Building Area Yes Owner Legal Description Yes County Zoning Information Yes County Flood Map Yes FEMA Tax Information Yes County Appraisal Engagement Contract Yes Client Type of Analysis Applied A rental analysis of marina related spaces and a land value analysis of the subject's boat rack area was applied in this valuation analysis. Extent of Data Research General economic data and market data were reviewed. Comparable sales were compiled from published sources including various reliable publications. Market data compiled for this report include a variety of rent comparables and improved property sales. These data are a result of research specific to the market and pertinent to the subject. The data were verified by buyers, sellers, brokers, managers, government officials or other sources regarded as knowledgeable and reliable. A rental survey of competing properties was conducted, and we provide photographs of all the comparable sales and rentals, where available. Information specific to the subject was provided by the client, owner, and/or representatives of the owner, and is assumed to be correct. Other information, such as zoning and tax records, was obtained from governmental sources. Specific estimates concerning market rent, reflect our judgment based on interpretation of the market data. The reasoning behind such estimates is illustrated throughout the rental comparable analysis. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 9 3501 Rickenbacker Cswy - Marina Space 24-237-02 INTRODUCTION IDENTIFICATION OF THE PROPERTY The property is commonly known as: 3501 Rickenbacker Cswy - Marina Space. The property address and tax parcel numbers as identified by the Miami -Dade County Property Appraiser/Tax Collector's Office are as follows: Address City County 3501 Rickenbacker Causeway Miami Miami -Dade State Zip Parcel ID/Tax ID FL 33149 01-4217-000-0030 We received a legal description of the subject property and it can be found in the addenda section. The legal description of the property is assumed to be correct. We have not commissioned a survey, nor have we had one verified by legal counsel. Therefore, we suggest a title company, legal counsel, or other qualified expert verify this legal description before it is used for any purpose. CURRENT USE OF THE SUBJECT As of the date of the value opinion(s), the subject was being used as follows. For the purposes of this report, the subject is valued as follows. Current Use Appraised Use Marina related office/retail space Marina related office/retail space HISTORY OF THE SUBJECT We are not aware of any listings, real property transactions, or ownership transfers pertaining to the subject in the three years prior to the date of the value opinion, other than that which is reported here. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 10 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS D C. 4+i N T C fl I LIIAMI Dod '' fs++ r nJ _* Miami AREA MAP �I cif __�I wyHWOOD L_Al- I—AFI1 nr" WEST FLAGLER 1.�53 LITTLE HAVANA 1 Coral Cables OCi3NUt {ROVE SOUTHWEST COCONUT GROVE CJCOPLUNE SOU —.I DCAC•C rLACa11NGO / _LMMUE Fisher island Virginia Kay `713 Ivey Biscayne Map data ©2024 Gdogle INTRODUCTION To evaluate the factors that influence a property's income potential over the projection term, we analyze economic indicators at the macro or citywide level and work down to the more specific micro or subject property level. The subject property is located in the City of Miami, within Miami -Dade County and the State of FL. Reference is made to the area map identifying the location of the subject property above. The following analysis includes an overview of the region, as well as historical and projected trends of income, population and employment for the subject's area. LOCATION The subject is located in Miami -Dade County, FL . Our regional, demographic, and economic analyses are based on data extracted from Site To Do Business/ESRI, U.S. Bureau of Labor Statistics, and the U.S. Census Bureau. This data has been extrapolated from various databases and are the most current available. The combined databases include various economic and demographic variables for the subject's respective area. The Site To Do Business/ESRI database includes population estimates, households, household income, home value, employment by industry and related data. This data is based on 2024 populations with projections through 2029. The U.S. Bureau of Labor Statistics provided area unemployment trends. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 11 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS POPULATION Population within Miami -Dade County, FL is currently indicated at 2,732,925 and is expecting an increase to 2,763,248 within five years, an increase of approximately 1.11% over the five-year period, or 0.22% per year. Comparatively, the national population is projected to increase annually by 0.38% over the same period. The current population is higher than the population indicated at the 2020 census, which was 2,701,767. Population at the previous census in 2010 was 2,496,435, indicating a long-term growth rate from 2010 to 2024 of 0.68% per year. 2,850,000 2,800,000 2,750,000 2,700,000 2,650,000 2,600,000 2,550,000 2,500,000 2,450,000 2,400,000 2,350,000 2,300,000 2,496,435 POPULATION 2,701,767 2010 2020 247.63,248 2,732,925 - 2024 2029 (Est.) Households are expected to follow a similar trend, with total households within Miami -Dade County, FL increasing from 995,737 in 2024 to 1,035,943 in 2029, with a current 2.70 persons per household. The national average household size in 2024 is 2.53. There were 867,352 households in 2010 and 967,414 households in 2020, indicating a long-term growth rate of 1.06% from 2010 to 2024. 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 HOUSEHOLDS 967,414 995,737 867.352 . 1,035,943 2010 2020 2024 2029 (Est.) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 12 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS The median age in Miami -Dade County, FL is currently indicated at 41.7 years, up from 2010, when the median age was 38.1 years. The population is expected to increase in 2029, with the median age projected as 42.4 years. The median age nationally in 2024 is 39.3. 13.60%411 12.30% 2020 POPULATION BY AGE 2024 6.60% 1 13.00% 13.20% 13.80% 14.00% 11.40% 5.00% 4.70% o 2029 (Est.) ■ 85+ ■ 75-84 65 - 74 ■ 55-64 ■ 45-54 ■ 35-44 ■ 25-34 ■ 15-24 ▪ 10 - 14 ■ 5-9 ■ 0-4 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 13 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS POPULATION (25+) BY EDUCATION ■ Less than 9th Grade: 7.0% ■ 9th - 12th Grade, No Diploma: 7.7% ■ High School Graduate: 23.7% ■ GED/Alternative Credential: 2.6% ■ Some College, No Degree:12.3% ■ Associate Degree: 10.6% Bachelor's Degree: 22.5% Graduate/Professional Degree: 13.5% INCOME Site To Do Business/ESRI reports current median household income at $73,352, which is forecasted to increase to $88,447 by 2029, an increase of 20.58%. Similarly, per capita income is expected to increase from its current level of $38,417 to $47,134 by 2029, an increase of 22.69%. In 2024, the national median household income is $79,068 and the national per capita income is $43,829. According to ESRI, Miami -Dade County, FL has a wealth index of 85, indicating less wealth when compared to the national average of 100. $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 HOUSEHOLD INCOME $73,352 $105,339 $88,447 $125,628 2024 2029 (Est.) ■ Median ■ Average JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 14 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 PER CAPITA INCOME $38,417 2024 $47,134 2029 (Est.) 1,200,000 1,000,000 800,000 600,000 400,000 HOUSEHOLDS BY INCOME 11.60% 16.10% 13.20% 11.40% 10.80% .90% 2024 ■ 14.30% 18.60% 13.50% 10.70% 9.00% 7.10% 6.50% 8.50% 2029 (Est.) ■ $200,000+ $150,000 - $199,999 ■ $100,000 - $149,999 ■ $75,000 - $99,999 ■ $50,000 - $74,999 ■ $35,000 - $49,999 ■ $25,000 - $34,999 ■ $15,000 - $24,999 ■ <$15,000 HOUSING According to Site To Do Business/ESRI, there were approximately 989,435 housing units in Miami -Dade County, FL as of the 2010 census. That figure increased to 1,074,685 housing units as of the 2020 census. Current estimates indicate 1,107,719 housing units, an increase of 3.07% from the 2020 census. Housing units are forecasted to grow to 1,153,812 units in 2029, indicating a growth rate of 4.16% over the five-year period. Owner -occupied units comprise the majority of the housing stock in the area. Current estimates indicate that approximately 46.2% of total housing units are owner -occupied, with 43.7% of units occupied by renters. The balance of the units, 10.1%, are vacant. In 2029, the mix is expected to shift to 46.6% owner -occupied units and 43.2% renter -occupied units. Nationally in 2024, 57.90% are owner -occupied, 32.10% are occupied by renters, and 10.00% are vacant. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 15 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS The ESRI Housing Affordability Index (HAI) has a base of 100, representing an area where median income is sufficient to qualify for a loan on a home valued at the median home price and not be cost -burdened, defined as spending more than 30 percent of income on housing -related costs. The higher the index is over 100, the more affordable the housing is in the area. An index of below 100 indicates housing is less affordable and a typical resident cannot purchase a home in the area without being cost -burdened. Miami -Dade County, FL has a Housing Affordability Index of 60, indicating that the median income is not sufficient for a typical resident to purchase a median value home in the area. The national Housing Affordability Index in 2024 is 85, indicating Miami -Dade County, FL is less affordable than the national average. Assuming the national average effective mortgage rate from the Federal Housing Finance Agency (FHFA), a 30-year mortgage, and a 20% down payment, the typical resident in Miami -Dade County, FL spends 41.3% of their household income on mortgage payments. Nationally, the percent of income used for a mortgage is 28.20%. 600,000 500,000 400,000 OWNER OCCUPIED HOUSING UNITS BY VALUE 2024 14.30% 2029 (Est.) ■ $2,000,000+ ■ $1,500,000- $1,999,999 ■ $1,000,000- $1,499,999 ■ $750,000 - $999,999 ■ $500,000 - $749,999 $400,000 - $499,999 ■ $300,000 - $399,999 ■ $250,000 - $299,999 ■ $200,000 - $249,999 ■ $150,000 - $199,999 ■ $100,000 - $149,999 In 2024, the median home value is $484,215. It is expected to increase to $546,075 by 2029, indicating an annual home appreciation rate of 2.56%. The median home value nationally in 2024 is $355,577. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 16 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 $484,215 HOME VALUE $611,515 $546,075 $678,432 2024 2029 (Est.) • Median • Average EMPLOYMENT Miami -Dade County, FL currently employs 1,487,871 workers according to Site To Do Business/ESRI. The U.S. Bureau of Labor Statistics currently reports unemployment at 2.2%, as of May 2024, which is lower than the long-term average of 4.7% since January 2014. Unemployment peaked in May 2020 at 12.0%. Year to date, unemployment has averaged 1.9%, up from last year's 1.8% average. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 6.8% 6.1% UNEMPLOYMENT 5.6% 4.8% 3.7% i 2.9% 8.3% 5.6% 2.6% 1.9% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 17 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS EMPLOYED POPULATION (16+) BY INDUSTRY 3.6% 0.6% 4.5% 2.8% 1.7% • Agriculture/Mining: 0.6% • Construction: 8.5% • Manufacturing: 4.5% • Wholesale Trade: 2.8% • Retail Trade: 10.5% • Transportation/Utilities: 8.9% • Information: 1.7% Finance/Insurance/Real Estate: 8.3% • Services: 50.7% • Public Administration: 3.6% EMPLOYED POPULATION (16+) BY OCCUPATION ■ White Collar: 60.4% • Management/Business/Financial: 18.9% ■ Professional: 20.1% ■ Sales: 10.7% ■ Administrative Support: 10.7% ■ Services: 18.8% ■ Blue Collar: 20.8% Farming/Forestry/Fishing: 0.4% • Construction/Extraction: 6.0% • Installation/Maintenance/Repair: 3.0% • Production: 3.0% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 18 3501 Rickenbacker Cswy - Marina Space 24-237-02 AREA ANALYSIS 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% EMPLOYMENT/UNEMPLOYMENT BY AGE 10.0% 2.7% 16-24 65.5% 17.8% 1.4% 1.4% 25-54 6.8% - 1.5% 55 - 64 65+ ■2024 Employed ■ 2024 Unemployed CONCLUSION An analysis of South Florida and more specifically, Miami -Dade County, demonstrates that the area has historically been on a path of growth. Previous population growth is primarily due to in -migration, with the majority of the migrants coming from within the state, as well as New York, Georgia and international sources. Many of the factors that led to Miami -Dade County's historical success remain in place. Therefore, the county will likely continue to grow. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 19 3501 Rickenbacker Cswy - Marina Space 24-237-02 NEIGHBORHOOD ANALYSIS NEIGHBORHOOD MAP INTRODUCTION A property is an integral part of its surroundings and must not be treated as an entity separate and apart from its surroundings. The value of a property is not found exclusively in its physical characteristics; physical, economic, political and sociological forces in the area interact to give value to a property. In order to determine the degree of influence extended by these forces on a property, their past and probable future trends are analyzed. Therefore, in order to form an opinion of the value of a property, an analysis is made of the area in which the property under study is found. This area is referred to as a neighborhood. A neighborhood can be a portion of a city, a community or an entire town. It is usually an area which exhibits a fairly high degree of homogeneity as to use, tenancy and certain other characteristics. Homogeneity is a state of uniform structure or composition throughout. Therefore, in real estate terminology, a homogeneous neighborhood is one in which the property types and uses are similar. A neighborhood is more or less a unified area with somewhat definite boundaries. As a neighborhood's boundaries serve to limit the physical area that exerts germane influences on a property's value, the boundaries may indeed run concurrent with variations in prevailing land uses or physical characteristics. LOCATION The subject is located within Virginia Key, along the Rickenbacker Causeway. Virginia Key is an 863-acre barrier island in Miami, Florida, in Biscayne Bay, south of Brickell and north of Key Biscayne. It accessible from the mainland via the Rickenbacker Causeway. Neighborhood boundaries are considered to be the Island of Virginia Key. Just south of the island of Virginia Key is the island of Key Biscayne, both of which are connected to the mainland by a single roadway, the Rickenbacker Causeway. In 1986 the causeway was widened to six lanes and a new high-level fixed span bridge was constructed over the Intracoastal Waterway. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AHD CONSULTING 20 3501 Rickenbacker Cswy - Marina Space 24-237-02 NEIGHBORHOOD ANALYSIS ACCESSIBILITY The subject site has access from the Rickenbacker Causeway. Access to the subject site is via an interior access road from the Rickenbacker Causeway. DEVELOPMENT The island is mainly occupied by the Virginia Key Beach Park, Miami Seaquarium, and the University of Miami Rosenstiel School of Marine and Atmospheric Science. Other facilities include the former Miami Marine Stadium, the National Marine Fisheries Service Southeast Fisheries Science Center, and an office of the U.S. National Oceanic and Atmospheric Administration. On February 22, 2008, the Virginia Key Beach Park Trust re -opened the Virginia Key Beach Park to the public. Today, it contains the largest mangrove wetland in the state. Historic landmarks such as the bathhouse, concession stand, carousel house, train tunnel, and picnic pavilions were renovated and opened for public use. Along the causeway onto Virginia Key is a long strip of bay front popular with windsurfers and sailors, called Hobie Beach after the Hobie Cats that set sail from the shore. It's also the only Miami -area beach that allows dogs. Nearby there are rest rooms and the site contains a great view of the curving shoreline. The Miami Seaquarium is a marine park on Virginia Key that has one of the world's largest collections of marine animals; some 10,000 specimens. Open in 1955, the 38-acre park provides marine life exhibits and several daily marine mammals shows. The Rosenstiel School of Marine and Atmospheric Science, founded by F.G. Walton Smith, is the University of Miami's graduate school of marine and atmospheric science. Located on a 16-acre campus on Virginia Key, it is the only tropical applied and basic marine and atmospheric research institute of its kind in the continental United States. The Rosenstiel School conducts a broad range of research on local, regional, national and global levels. The Maritime and Science Technology (MAST) Academy public magnet school is located on Virginia Key. Several hundred high school specially -selected students from Miami get their education at MAST Academy. To the south of the subject property, in the Village of Key Biscayne, there are several large resort hotels, condominium complexes and shopping centers on the island. The Village has its own fire, police and public elementary and middle school. In 2004, the Village completed the construction of a civic center including fire, police and administration buildings and a recreation and community center with indoor multiple use courts, outdoor swimming pool and a renowned musical theater program. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 21 3501 Rickenbacker Cswy - Marina Space 24-237-02 NEIGHBORHOOD ANALYSIS DEMOGRAPHICS The Site To Do Business is a service that provides demographic data, including historical, current and forecasted population estimates for a specified region. Patterns of development, density and migration are reflected in the population estimates. A survey of the subject area's population and growth rate is summarized in the following charts, followed by a map of the surveyed area. Summary Population Households Families Average Household Size Owner Occupied Housing Units Renter Occupied Housing Units Median Age Population by Age 0-4 5-9 10 - 14 15 - 19 20 - 24 25 - 34 35-44 45 - 54 55-64 65 - 74 75 - 84 85+ Households by Income <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Median Household Income Average Household Income Per Capita Income Demographics 2024 1 mile 3 miles 5 miles 1 0 0 0.00 0 0 0.0 86,621 45,410 18,862 1.88 14,754 30,656 37.6 319,196 152,311 71,578 2.06 45,079 107,232 39.6 1 mile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1 mile 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $0 $0 $0 3 miles 4.0% 3.4% 2.7% 2.6% 6.2% 26.0% 18.1% 12.8% 10.3% 7.6% 4.7% 1.7% 3 miles 8.40% 6.20% 5.00% 5.40% 8.70% 11.20% 18.40% 13.20% 23.50% $110,140 $156,239 $81,952 5 miles 4.3% 4.0% 3.7% 3.8% 6.1% 19.7% 16.9% 13.5% 11.8% 8.5% 5.3% 2.4% 5 miles 12.70% 8.90% 7.60% 9.00% 10.00% 10.60% 15.00% 9.10% 17.20% $78,499 $124,250 $59,366 Source: Site To Do Business 1 mile 1 0 0 0.00 0 0 47.5 1 mile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 1 mile 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $0 $0 $0 2029 3 miles 101,838 54,829 22,550 1.83 16,323 38,505 38.9 3 miles 3.7% 3.2% 3.0% 2.7% 6.0% 23.0% 19.2% 13.2% 10.2% 8.3% 5.5% 2.0% 3 miles 7.10% 4.60% 4.10% 5.00% 9.00% 12.10% 19.70% 13.70% 24.80% $116,037 $169,641 $91,458 5 miles 352,725 174,159 80,944 1.99 49,474 124,685 40.5 5 miles 4.2% 3.8% 3.8% 3.7% 6.0% 18.5% 17.3% 13.5% 11.5% 9.3% 6.0% 2.5% 5 miles 10.50% 6.40% 6.20% 7.80% 9.90% 11.40% 17.20% 11.20% 19.50% $94,152 $143,045 $70,710 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 22 3501 Rickenbacker Cswy - Marina Space 24-237-02 NEIGHBORHOOD ANALYSIS Trends: 2024 - 2029 Annual Rate 1 mile Area State National Population 0.00% 0.93% 0.38% Households 0.00% 1.15% 0.64% Families 0.00% 1.12% 0.56% Owner Households 0.00% 1.66% 0.97% Median Household Income 0.00% 3.25% 2.95% 3 miles Area State National Population 3.29% 0.93% 0.38% Households 3.84% 1.15% 0.64% Families 3.64% 1.12% 0.56% Owner Households 2.04% 1.66% 0.97% Median Household Income 1.05% 3.25% 2.95% 5 miles Area State National Population 2.02% 0.93% 0.38% Households 2.72% 1.15% 0.64% Families 2.49% 1.12% 0.56% Owner Households 1.88% 1.66% 0.97% Median Household Income 3.70% 3.25% 2.95% Source: Site To Do Business NEIGHBORHOOD/AREA COMPARISON Category 1 mile 3 miles 5 miles Area Median Household Income Average Household Income Per Capita Income Average Household Size Median Age so so so 0.00 0.0 $110,140' $156,239 $81,952 1.88 37.6 $78,499 $124,250 $59,366 2.06 39.6 $73,352 $105,339 $38,417 2.70 41.7 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 23 3501 Rickenbacker Cswy - Marina Space 24-237-02 NEIGHBORHOOD ANALYSIS Miami Springs Miarn _=—{nternalion Airport 9 Brownsville prance Mag Il rLAGAM1= Coral Gable The K �univer of Minn -ro Bola rppng orial ical `cal. )-----Whole Foods Market CODOPLUM Fairchild Tropical ecrest T Botanic Bill Bags rrdens Garden Cape F —mate Park t tIA%I P;lieuni Beach r1CACH Ir": Beach Goff Club Miami Beach Sold-•1 OCAC•1 South Pointe 'ark Pier Neptune Memorial R Crandon Park R Hardy 4 lMaihesorl _County Key Biscayne tiLlsvi {e Keyboard shortcuts . __ ._ .. _. oog;e Terms Report a map error LIFE CYCLE A neighborhood's life cycle usually consists of four stages: • Growth - a period during which the neighborhood gains public favor and acceptance • Stability - a period of equilibrium without marked gains or losses • Decline - a period of diminishing demand • Revitalization - a period of renewal, redevelopment, modernization, and increasing demand Source: The Appraisal of Real Estate, 15th Edition From a general examination, it appears that the neighborhood is in the stability stage. NEIGHBORHOOD ANALYSIS CONCLUSION In conclusion, we are of the opinion that the subject's neighborhood should experience continued stability based upon the solid foundation is has established. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 24 3501 Rickenbacker Cswy - Marina Space 24-237-02 MARKET ANALYSIS COCONUT GROVE RETAIL SUBMARKET ANLYSIS According to the Costar submarket analysis, rents are around $63/SF in general retail buildings, and $68/SF in malls. Rent growth was 2.6% in general retail buildings, and 5.3% in malls. KEY INDICATORS Current Ei mr tRBA Vacancy Rate Narkul Asking Runt Av,N6isy IN Fire At Dh1xL7r1 SF 0ult..crlas SF Under Construction Adala 384.693 0% 167.90 0:7% 0 Pines Center 0 0 0 C Heighh[ahood Cenier 296,037 0.6% 167.81 OB% 2.140 0 0 S 1.115 Caner 172.612 1.5% 164.12 2_7% 1,092 0 0 General Rini! 1,003,189 2.0% 163.05 OB% 890 0 0 Olher 0 0 0 0 Suhmar►et 1,138,721 1.4% IMAM OR% 4,352. 0 0II Annual Tra-ncls 1aMoa•a. E-YslorlaY Faacast Apiaaga Alum ge Tea wham Va Brk3yChange(YOY) .1.9% 1.2% 1.3% &S% 2019Q3 1.4% 2024E13 HetAbetrolOnSF 35.214 10,338 3,720 109,298 2021 Q4 (90.962) 2019Q1 1: liedeSSF 3.3K 13,009 3,549 90,097 2022Q1 0 202643 keLAskilyRent Grornh 3.3% 3.3% 3.0% 8.0% 2022Q2 =4.7% 21429{ia Sales VeLlnne 130.7M $24.71.1 MLA 1112.461 2015 04 SO 2010 E11 Rent The following summarizes the market rent growth and market rent per SF in the submarket. MARKET ASKING RENT GROWTH (VON') 25%+% 20% 15% 10% 5. 0% -55o - 10% - 15 I � i 2019 l � l 2020 I 1 I 2021 I I I 2022 l L 2023 20221 l I i i 2025 2026 I. J ' I 2027 2028 Mall • Neipltor heed Chritea Strip Canter • General Riltafi • Cowart Grat +e • hhaini JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 25 3501 Rickenbacker Cswy - Marina Space 24-237-02 MARKET ANALYSIS MARKET ASKING RENT PER SQUARE FEET $75 $70 $65 $60 $55 $$0 $45 $4-0 $35 1 1 E - I -I -F 2019 2020 2021 i. 2022 2023 FQreCa51 2024 2025 202$ I v I 2027 2028 • Mall • Naip1itarho-nd OsiVer Strip Comer • General Ratan' In Coc.orkat Groat ■ Mini Submarket Statistics OVERALL RENT & VACANCY Mirka/ Asking Rant Vacancy Par 5F iatle % aniath Vs Iasi Plat SF Parch Pals {jig 2028 $74.17 165 3.1% 15.6% 24,007 1.3% 0% 2027 $71.94 166 3.0% 122% 23,752 1_3% 2026 $69.62 163 3.3% 6.9% 23,552 1.3% 2026 $67.61 177 3.2% 5.4% 2+1,057 2024 $85.54 172 2.2% 2.2% 27,350 1.5% -0.9% YID $64.1315 1713 3.3% 1.1% 24,841 1.4% -1.0% 2023 $64.14 1613 6.3% 0% 44,100 2:4% -0.6% 2022 $60.36 156 6.7% .6.996 66,129 30% -1.0% 2021 $58.56 148 6 2% .11.841 12,878 40% .1.3% 2020 $53.27 140 2e5% •17.0% 92,077 6.3% -0.9% 2019 351.95 136 2_5% •19.0% 108M16 62% 1.1% 2018 .50.69 133 3_2% .21.0% 88,302 6..1% 1.8% 2017 $.19.11 129 3.5% •23.4% 68,087 3.3% -0.8% 2016 $47.46 126 4_0% '26.0% 71,114 4.0% 0.7% 2016 $45.64 1213 4.3% •213.13% 58,132 3.3% -2.0% 2014 $43.76 116 6,1% •31.B% 92,613 5.3% 0.9% 2013 $41.23 1011 &8% •35.7% 78,768 4.4% 0.1% 2012 $39.33 103 5.6% .38.7% 61,088 3.786 0.8% Conclusion The subject features a 1,091 SF space located within a marina. The possible uses include a variety of marina related uses. The subject is located within the Coconut Grove submarket within Miami -Dade County. Of the 19 submarkets, the subject's ranks 4th in market rent. The submarket rent indicates $63/SF for general retail. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 26 3501 Rickenbacker Cswy - Marina Space 24-237-02 DESCRIPTION OF THE SITE PRIMARY FRONTAGE STREET ADJACENT PROPERTIES - NORTH ADJACENT PROPERTIES - SOUTH ADJACENT PROPERTIES - WEST ADJACENT PROPERTIES - EAST VIEW ACCESS INGRESS/EGRESS SITE VISIBILITY STREET CONDITION LANDSCAPING TOPOGRAPHY SHAPE SOIL CONDITIONS AND DRAINAGE FLOOD ZONE FLOOD ZONE DEFINITION ENVIRONMENTAL HAZARDS SITE DETAILS ADDRESS 3501 Rickenbacker Causeway, Miami, Miami -Dade County, FL 33149 PARCEL NUMBER 01-4217-000-0030 LEGAL DESCRIPTION Addenda LOCATION The subject is located along the Rickenbacker Causeway, with the Key Biscayne neighborhood. LOCATION TYPE Suburban MAP LATITUDE/LONGITUDE 25.7435508/-80.1719419 CENSUS TRACT 12-086-9804.00 SIZE 2,690 SF or 0.06 acres ZONING The parcel is zoned "CS," under the jurisdiction of the City of Miami. Rickenbacker Causeway Marina School Bay Bay Bay/Marina Marine Stadium Marina has access from the Rickenbacker Causeway. The subject space is located within the marina. Marine Stadium Marina has ingress/egress from the Rickenbacker Causeway. The subject is located within the marina. Average Paved with asphalt The subject's landscaping is minimal. The subject's topography is level and at street grade. The subject site is irregular. The soil conditions observed at the subject appear to be typical of the region and adequate to support development. The site lies within Zone AE. This information was obtained from the National Flood Insurance Rate Map Number 12086C0481L dated September 11, 2009. The base floodplain where base flood elevations are provided. AE Zones are now used on new format FIRMs instead of A1-A30 Zones. In communities that participate in the NFIP, mandatory flood insurance purchase requirements apply to this zone. There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assum ptions. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 27 3501 Rickenbacker Cswy - Marina Space 24-237-02 DESCRIPTION OF THE SITE AERIAL PHOTOGRAPH I ma€gery ©2024 Airbus, bl axar Tec h nolog ies JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 28 3501 Rickenbacker Cswy - Marina Space 24-237-02 DESCRIPTION OF THE IMPROVEMENTS GENERAL DETAILS DESCRIPTION Briefly described, the subject consists of an average quality 1- story repair shop/ancillary building in average overall condition, containing approximately 1,096 SF of net rentable area, constructed in 1980. The property is currently vacant. BUILDING DETAILS BUILDING NAME 3501 Rickenbacker Causeway BUILDING DESCRIPTION Marina Space BUILDING CLASS C CONDITION Fair YEAR BUILT 1980 EFFECTIVE AGE 25 Years TOTAL ECONOMIC LIFE 60 Years REMAINING ECONOMIC LIFE 35 Years GROSS BUILDING AREA 1,096 SF NET RENTABLE AREA 1,096 SF BUILDING EFFICIENCY RATIO 100.0% CURRENT OCCUPANCY 0% APPEAL AND APPEARANCE Fair DESIGN AND FUNCTIONAL UTILITY The overall layout of the improvements on the parcel is considered to be average. DEFERRED MAINTENANCE The subject has the following deferred maintenance: exposed roofing, flooring, and stucco in interior of subject. CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE C CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Concrete Block with Stucco NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Masonry Frame EXTERIOR WALLS/FINISH Stucco WINDOWS Casement & Fixed Casement ROOF TYPE Flat ROOF COVER Rubber Membrane or Built-up Materials FLOOR PLAN LAYOUT Average FLOOR COVERING Hardwood, Tile INTERIOR WALLS Painted drywall CEILING COVER Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS The restrooms have tiled floors, tiled or painted walls and contain fixtures that are commercial quality. HVAC Package Units UTILITIES All Available ELECTRICAL Assumed to be in compliance with prevailing code requirements. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AHD CONSULTING 29 3501 Rickenbacker Cswy - Marina Space 24-237-02 ZONING The subject is zoned "CS," Civic Space Zone, under the jurisdiction of the City of Miami. ZONE DETAILS ZONING CODE CS ZONING DESCRIPTION Civic Space Zone PERMITTED USES Marina is the only use allowed by right. Food service establishment, open air retail, community facility, recreational facility, religious facility, infrastructure and utilities are allowed by warrant: administrative process. General commercial, marine related commercial, childcare, and learning center are allowed by exception: public hearing. COMMENTS The Civic Zone consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent setbacks and landscape. PARCEL DETAILS CURRENT USE Marina related office/retail space Based on a review of the subject in relation to the CS zoning district, it appears the subject is a legal and conforming use of the site. However, we are not experts in determining if a property is fully in compliance with all aspects of the zoning code. We suggest interested parties obtain a letter of zoning compliance from the City of Miami to determine if the subject is zoning compliant. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 30 3501 Rickenbacker Cswy - Marina Space 24-237-02 TAXES The subject is assessed by the Miami -Dade County property appraiser's office, and is taxed by the City of Miami. Assessments in the county are done by the any Florida County Property Appraiser's offices. The tax bills are sent in October, and paid by March of the following year. A 4% discount is given to bills paid in November, 3% to those paid in December, 2% if paid in January, and 1% if paid in February. Taxes paid after March are considered delinquent. Since assessments are completed annually, trends in assessed values have generally been increasing, as property values have increased. School taxes are based on "market value." Non -school taxes are based on "assessed value." These values may be equal or may be different amounts, depending on the property. The "market value" used to calculate school taxes can be increased with no cap, and is intended to be synonymous with the property's actual market value if it were to sell in the open market. The "assessed value" used to calculate non -school taxes can be adjusted upward, but has a maximum cap. According to Florida law: "Constitutional Amendment 1, approved by voters on January 29, 2008, was a provision to limit increases in the annual assessment of Non -Homestead properties to ten percent (10%). The base - year for implementing this change was 2008 and assessments were capped beginning in 2009. • There is no application for the Non Homestead Cap as it applies automatically. • Changes in ownership and use resets the Non Homestead Cap base year following the change. For example, filing a homestead exemption application removes the Non Homestead Cap. • The Non -Homestead Cap limits increases in the assessed value to 10%, excluding School Board assessments." Therefore, in times of increasing values, the "assessed value" (used to calculate non -school taxes) can fall below the "market value" (used to calculate school taxes). The "market value" is multiplied by the millage rate(s) associated with the school district. The "assessed value" is multiplied by the millage rate associated with any non -school taxes. The two amounts are added together to arrive at the total ad valorem taxes. Any non -ad valorem taxes are then added to that amount to arrive at the total tax liability. According to Florida law, if a property sells, then the "assessed value" will increase to the "market value." As we will demonstrate, the "market value" for tax purposes often falls below the actual sales price, and is not to be equated with our concluded opinion of market value. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 31 3501 Rickenbacker Cswy - Marina Space 24-237-02 TAXES The following table summarizes the subject's assessment and taxes: 3501 Rickenbacker Causew Parcel ID Assessment Year Tax Authority Land Value Tax Authority Improvements Value Tax Authority Other Value Total Market Value Total Assessed Value School Board Mi I I age Rate Non -School Millage Rate School Board Mi I I age Rate Taxes Non -School Millage Rate Taxes Total Tax Rate Tax Rate Per Taxes Special Assessments Taxes with Special Assessments Early Payment Discount Percentage Total Taxes 01-4217-000-0030 2024 $12,721,500 $312,302 $187,646 $13,221,448 $5,126,524 6.699000 13.857400 $88,570 $ 71,040 20.556400 $1,000.00 $159,611 $0 $159,611 4% $153,226 The taxes are for the entire marina parcel. The subject is a partial area within the overall parcel. The site is owned by the City of Miami and are exempt from paying taxes. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 32 3501 Rickenbacker Cswy - Marina Space 24-237-02 HIGHEST AND BEST USE In determining the highest and best use of the property, consideration was given to the economic, legal, and social factors that motivate investors to develop, own, buy and sell, manage, and lease real estate. In forming an opinion of the highest and best use of a vacant parcel of land, there are essentially four stages of analysis: • Physically Possible Use: What uses of the site in question are physically possible? • Legally Permissible Use: What uses are permitted by zoning and deed restrictions on the site in question? • Financially Feasible Use: Which possible and permissible uses will produce a gross return to the owner of the site? • Maximally Productive: Among the feasible uses, which will produce the highest return or highest present worth of the site in question? The following tests must be met in estimating the highest and best use of a vacant parcel: the potential use must be physically possible and legally permissible, there must be a profitable demand for such a use, and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject's site and are discussed as follows: PHYSICALLY POSSIBLE The site is on Rickenbacker Causeway, in Miami, FL. The underlying site consists of 2,690 SF or 0.06 acres. The subject's topography is level and at street grade. As noted in the Assumptions and Limiting Conditions, we know of no environmental or engineering study that has been conducted on the site to determine subsoil conditions. Upon analysis of all physical aspects, space, size, shape, terrain, location and others the most supportable highest and best uses of the site, as it relates to physical properties, are mixed -use office and retail. LEGALLY PERMISSIBLE The subject's site is zoned "CS," Civic Space Zone, under the jurisdiction of the City of Miami, FL. Reference is made to the Zoning section of this report. Permitted uses include Marina is the only use allowed by right. Food service establishment, open air retail, community facility, recreational facility, religious facility, infrastructure and utilities are allowed by warrant: administrative process. General commercial, marine related commercial, childcare, and learning center are allowed by exception: public hearing.. Upon analysis of the permitted uses, the most supportable highest and best uses of the site, as it relates to what is legally permissible, are commercial uses that takes advantage of the subject's location within a marina.. FINANCIALLY FEASIBLE Analysis for financially feasible uses for the site, as if vacant, involves consideration of several criteria. Unlike the physically possible and legally permissible aspects of the highest and best use analysis, many external economic factors serve to prove or disprove financial feasibility. The cost of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price forecast, property tax implications and measures of risk and yield are all determinant to this analysis. The above financial measures serve to eliminate the uses that would not provide a reasonable return to the land based on an investor's expectations. The cost of land and its development limits the highest and best use of the site, generally to only those uses that are financially feasible. We conclude that financially feasible uses of the site that are physically possible and legally permissible are commercial uses that takes advantage of the subject's location within a marina.. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 33 3501 Rickenbacker Cswy - Marina Space 24-237-02 HIGHEST AND BEST USE MAXIMALLY PRODUCTIVE We considered those uses, as aforementioned, to meet the physically possible, legally permissible and financially feasible tests of the highest and best use definition. The final criteria for full compliance within the highest and best use of the subject, as vacant, is that of a maximally productive use. We conclude the maximally productive use of the site is commercial uses that takes advantage of the subject's location within a marina.. HIGHEST AND BEST USE, AS IF VACANT A final reconciliation of the analysis leads to the conclusion that the highest and best use of the site, as if vacant, is commercial uses that takes advantage of the subject's location within a marina.. HIGHEST AND BEST USE, AS IMPROVED We must also determine the highest and best use of the subject, as improved, by analyzing occupancy levels of various surrounding improvements, as well as the general needs within the area. Based on the current conditions of the subject's market, there appears to be no alternative use that would justify the removal or substantial alteration of the existing improvements. As such, the highest and best use of the subject, as improved, is the current improvements. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 34 3501 Rickenbacker Cswy - Marina Space 24-237-02 ANALYSIS OF DATA AND CONCLUSIONS VALUATION METHODOLOGIES APPLICABLE TO THE SUBJECT PROPERTY Since we are developing a market rent for the marina related retail/office space, a rental comparable analysis of similar marina related spaces was utilized to develop a market rent for the space. The Cost Approach was not utilized because this approach does not reflect the market behavior of typical purchasers of this property type. The Income Capitalization Approach was not utilized because this approach does not reflect the market behavior of typical purchasers of this property type. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 35 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS MARKET RENT COMPARABLES Briefly described, the subject consists of an average quality 1-story repair shop/ancillary building in average overall condition, containing approximately 1,096 SF of net rentable area, constructed in 1980. The property is currently vacant. A search of the market was conducted for rental comparables. The pertinent data relating to these comparables can be found on the following pages. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 36 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS Name 2640 S Bayshore Dr Address 2640 S Bayshore Dr City Miami State FL Lease Comparable 1 Location County Zip Tax Parcel ID Miami -Dade County 33133 01-4122-002-0011 Site & Improvements NRA 1,000 Year Built 1925 No. of Floors 1 No. of Buildings 1 MVS Quality NA Condition Average Asking Rental Data Rental Rate $40.00 Occupancy 100.00% Lease Type NNN Avg Lease Term 2 Years Escalation CPI or Stepped Verification Broker Comments This is a 1,000 SF boat maintenance space that leased for $40.00/NNN. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 37 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS Name Address City State 3350 NW 21st St 3350 NW 21st St Miami FL Lease Comparable 2 Location County Zip Tax Parcel ID Miami -Dade County 33142 3031280230040 Site & Improvements NRA 5,201 Year Built 1965 No. of Floors 2 No. of Buildings 1 MVS Quality NA Condition Average Asking Rental Data Rental Rate $43.84 Occupancy 100.00% Lease Type Modified Gross Avg Lease Term 3 - 5 Years Escalation CPI or Stepped Verification Broker Comments This is a 5,201 SF space located within the Select Marina located along the Miami River, that leased for $43.84 on a modified gross basis. The space is occupied by Enjoy Yacht Concierge. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 38 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS Lease Comparable 3 Name Address City State 629 NE 3rd St 629 NE 3rd St Fort Lauderdale FL Location County Zip Tax Parcel ID Broward County 33301 504235000090 Site & Improvements NRA 400 Year Built 1967 No. of Floors 1 No. of Buildings 1 MVS Quality NA Condition Average Asking Rental Data Rental Rate $45.00 Occupancy 100.00% Lease Type Gross Avg Lease Term 1 Year Escalation CPI or Stepped Verification Broker Comments This marine service center leased on August of 2023 for $36.00/net. The space consists of 400 SF and is located within the 7,020 SF marina. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 39 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS Name 801 Sea breeze Blvd Address 801 Sea breeze Blvd City Fort Lauderdale State FL Lease Comparable 4 Location County Zip Tax Parcel ID Broward County 33316 504212270012 Site & Improvements NRA 600 Year Built 1966 No. of Floors 1 No. of Buildings 1 MVS Quality Average Condition Average Asking Rental Data Rental Rate $77.00 Occupancy 100.00% Lease Type Modified Gross Avg Lease Term 1 Year Escalation CPI or Stepped Verification Broker Comments This 600 SF retail space, located within the Bahia Mar Marina, leased for $77.00/SF on a modified gross basis. The lease started June of 2023 and the term is for 1 year. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 40 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS Name Address City State Lease Comparable 5 is Location SOUTHERN MARINAS HI LIFT LLC County 2890 NE 187 ST Zip Tax Parcel ID Aventura FL Miami -Dade County 33180 28-2203-000-0020 Site & Improvements NRA 1,715 Year Built 1967 No. of Floors 2 No. of Buildings 1 MVS Quality Average Condition Average Asking Rental Data Rental Rate $26.50 Occupancy 100.00% Lease Type Modified Gross Avg Lease Term NA Escalation CPI or Stepped Verification Broker Comments This space is a 1,715 SF space located within Hi -Lift marina. Located just off the Intracoastal Waterway in Aventura, Florida. The space was being used as office. The space leased for $26.50/SF on a modified gross basis. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 41 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS RENT COMPARABLES SUMMARY Comp Name Address Year Built NRA Condition Lease Type Avg Lease Term Occupancy 1 2640 S Bays hare Dr 2640 S Bayshore Dr 2 3350 NW 21stSt 3350 NW 21stSt 3 629 NE 3rd St 629 NE 3rd St 4 801 Sea breeze Blvd 801 Sea breeze Blvd 5 SOUTHERN MARINAS HI LIFT LLC 2890 NE 187 ST 1925 1,000 1965 5,201 1967 400 1966 600 1967 1,715 Average Average Average Average Average NNN 2 Years Modified Gross 3 - 5 Years Gross 1 Year Modified Gross 1 Year Modified Gross NA 100.00% 100.00% 100.00% 100.00% 100.00% RENT COMPARABLES MAP Google Sunrise' -I_. Oak t Park Plantation Davie -� h Ar7 Pepineske I 1 Hollywood a Miramar -? _ > Hall le Miami ' Av ura Gardens Luderd le Dania Beach Dural (!LE„). North Miami Hialeah 9 rni &each Fontainebleau Tamiami 914 iV' Map data ©2024 Goole JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 42 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS ANALYSIS OF RENT COMPARABLES To estimate the value of the subject, an analysis of the rent comparables and the adjustments made to them is utilized to estimate a market rental rate for the subject. Location The adjustment for location reflects the trend that properties in areas of active growth and development, as well as those which offer good accessibility in terms of frontage on major thoroughfares, typically have a higher rental rate than properties which do not offer these attributes, with all other factors held constant. The subject is located along the Rickenbacker Causeway and near the Village of Key Biscayne. The space is located within a larger marina, which has limited access and visibility. All of the comparable rentals feature a superior location, based on accessibility and visibility. Therefore, downward adjustments are warranted. Age (Year Built) Adjustments are applied to the comparables on the basis of age. Typically, the older a building's improvements, the lower the income it can achieve in the market and the shorter its remaining economic life; thus, it will generate a lower rental rate, with all other factors held constant. The subject was built in 1980. The effective age for the property is estimated to be 25 years old. All of the rentals feature a relatively similar effective age and no adjustments are warranted. Condition Adjustments are applied to the comparables on the basis of relative condition. The more inferior a comparable's condition, the lower the rental rate it can achieve in the market, with all other factors held constant. The subject is in fair condition. All of the rentals feature a relatively similar condition and no adjustments are warranted. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 43 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS RENT COMPARABLES ANALYSIS CONCLUSION The previously described adjustments are summarized in the following grid. The percentage adjustments are used to show the emphasis placed on each adjustment. Lease Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Name 3501 Rickenbacker Address 3501 Rickenbacker City Miami County Miami -Dade County State FL 2640 S Bayshore Dr 2640 S Bayshore Dr Miami Miami -Dade County FL 3350 NW 21st St 3350 NW 21st St Miami Miami -Dade County FL 629 NE 3rd St 629 NE 3rd St Fort Lauderdale Broward County FL 801 Seabreeze Blvd SOUTHERN MARINAS 801 Seabreeze Blvd 2890 NE 187 ST Fort Lauderdale Aventura Broward County Miami -Dade County FL FL Asking Rents Rental Rate Lease Type Avg Lease Term Escalation Date $40.00 $43.84 $45.00 $77.00 $26.50 NNN Modified Gross Gross Modified Gross Modified Gross 2 Years 3 - 5 Years 1 Year 1 Year NA CPI or Stepped CPI or Stepped CPI or Stepped CPI or Stepped CPI or Stepped 1/1/2018 11/28/2017 8/4/2023 6/1/2023 7/1/2018 Transactional Adjustments Conditions of Lease Other Normal 0% Normal 0% Normal 0% Normal 0% Normal 0% Similar 0% Similar 0% Similar 0% Similar 0% Similar 0% Adjusted Rent $40.00 $43.84 $45.00 $77.00 $26.50 Property Adjustments Location Superior Superior Superior Superior Superior %Adjustment $ Adjustment -5% -$2.00 -5% -$2.19 -5% -$2.25 -5% -$3.85 -5% -$1.33 Year Built 1980 1925 1965 1967 1966 1967 %Adjustment $ Adjustment 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 Condition Fair Average Average Average Average Average %Adjustment $ Adjustment 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 NRA 1,096 1,000 5,201 400 600 1,715 %Adjustment $ Adjustment 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 Adjusted Rent $38.00 $41.65 $42.75 $73.15 $25.18 Property Adjustments (Net) Property Adjustments (Gross) -5% -5% -5% -5% 5% 5% 5% 5% -5% 5% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 44 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS MARKET RENT CONCLUSION The comparable rentals show an adjusted rent range of $25.18/SF to $73.15/SF and an average of $45.47/SF. Given the few numbers of available rentals similar to the subject's marina related use, we have given equal emphasis to the comparable rentals provided. These rentals are currently being used as similar marina services and are the most recent and proximate, which were made available. We are aware of a marina facility located along the Seybold Canal, the Property is presently operating as a marina and boat storage facility with 425+/- linear feet of waterfront. Also included is a two bedroom/one bath, 945 square foot single-family house with 50+/- marine linear feet located four lots north of the marina. The waterfront lots have ocean access via the Miami River approximately 950 feet away. Both the marina and house are on month to -month leases generating an annual gross income of about $25,000. We are also aware of two similar marina related spaces which recently leased but that are located outside the subject's Miami -Dade County market. The first is a 210 SF ship store located within the Safe Harbor Regatta marina, which leased for $34.29/NNN. This Marina is located at 1005 Riverside Dr, Palmetto FI. The second rental is located at 255 E 22nd Ct, within Riviera Beach, FL. The space consisted of a 1,100 SF office/retail space located within the New Port Cove marina. The space leased on June of 2023 for $40.00/SF. We have also analyzed the retail rental market within the subject's submarket. According to the Costar submarket analysis, rents are around $63/SF in general retail buildings, and $68/SF in malls. Rent growth was 2.6% in general retail buildings, and 5.3% in malls. The subject's submarket rent, in addition to the rentals located outside of the subject's market, are in line with the marina related rentals provided, that are located within Miami and/or Broward County markets. Therefore, based on the information presented, we conclude to the following market rate rental schedule for the repair shop/ancillary space. Therefore, based on the information presented, we conclude to the following market rate rental schedule. The following table summarizes market rent by space type at the subject. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AHD CONSULTING 45 3501 Rickenbacker Cswy - Marina Space 24-237-02 RENTAL COMPARABLE ANALYSIS Market Rent by Space Type Space Type Rent Method Increases Type Term Marina Space $40.00 $/SF/Year CPI or Stepped Gross 3 - 5 Years Marina Space $45,000.00 $/Year CPI or Stepped Gross 3 - 5 Years Marina Space $3,750.00 $/Month CPI or Stepped Gross 3 - 5 Years JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 46 3501 Rickenbacker Cswy - Marina Space 24-237-02 RECONCILIATION AND FINAL VALUE A Rental Analysis for the marina related retail/office space was employed in the valuation of the subject's rent. The market rent derived on a monthly and annual basis are shown below: Value Date of Value Interest Appraised Value Opinion "Market Rent Monthly" 8/29/24 Fee Simple Estate "Market Rent Annua I" 8/29/24 Fee Simple Estate $3,750 $45,000 This appraisal is not based on any extraordinary assumptions. This appraisal is not based on any hypothetical conditions. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 47 3501 Rickenbacker Cswy - Marina Space 24-237-02 ADDENDA JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Visit our website for business opportunities at: www.miamigov.com/procurement Cityof Miami Purchase Order Department of Purchasing1 P.O. Box 330708 Miami, Florida 33233-0708 (305) 416-1922 Fax - (305) 416-1925 PURCHASE ORDER/RELEASE NUMBER 2309072 Show this number on all packages, invoices, and shipping papers. Change Number 0 Change Date ��� �°F � °°°,°Page coBuyer: J No. of 3 Order Date 08/12/2024 Bid/Contract Number James Griffin Taxpayer ID Supplier No. Telephone No. City of Miami - PF - Asset Management 112004892 2113 305-448-1663 r 444 SW 2nd Ave., 3rd Floor Miami, FL 33130 Joseph J. Blake & Associates, Inc 5201 Blue Lagoon Drive Ste 270 Miami, FL 33126 r u) a I- City of Miami - Finance - General Accounting 444 SW 2nd Ave, 6th Floor Miami, FL 33130 Fax - (305) 416-1987 Email - payables@miamigov.com Customer Account Number m Please also forward a copy of the invoice to the Ship To address above. Effective Start Date Effective End Date Total Agreement Limit Line Commodity Code Description/Delivery Date Qty Unit Unit Price Extended Price 1 96258-00 Appraisal of Space for Lease at Marine Stadium Marina (3501 RICKENBACKER CSWY) - L-07-24-015 3500 Dollar 1.00 3,500.00 Total Amount: Pursuant to RFQ 498330; as authorized by Resolution #16-0505 Appraisal of Space for Lease at Marine Stadium Marina (3501 RICKENBACKER CSWY) - L-07-24-015 Per Quote dated 7/25/24 3,500.00 FOB: Destination Requisition Number: 305866 Vendor Instructions 1. Florida Tax Exempt ID: Ship Via: Department: 221100 - DREAM - Asset Management 2. Invoices: Direct Invoices in Duplicate to the address shown above. 3. Terms and conditions set forth in our Bid or Quotation and on the Payment Terms: Net 30 Contact Person: Castellon, Thalya Marlen reverse side hereof are incorporated herein by reference become part of this order Telephone Number: 305-416-1456 08/12/2024 Annie Perez, CPPO, Director of Procurement Date .Appr° '' d C FN/PC 506 Rev. 12/05 BY ACCEPTING THIS ORDER, VENDOR AGREES TO THE FOLLOWING TERMS AND CONDITIONS 1. ACCEPTANCE OF PURCHASE ORDER: A Purchase Order is given for immediate acceptance by the VENDOR. Unless promptly notified to the contrary, the CITY will assume the VENDOR accepts the order as written and will make delivery as specified on the document. 2. ENTIRE AGREEMENT: All specifications, drawings, and data submitted to the VENDOR with this order or the solicitation for this order are hereby incorporated herein and made a part hereof. This contract contains the entire agreement of the parties. No change in quantities, prices, specifications, terms, or shipping instructions will be allowed except on written authority of the CITY of Miami Purchasing Department. Any additional or different terms and conditions proposed by VENDOR are objected to and hereby rejected unless specifically agreed to by the CITY. 3. INDEMNIFICATION: The VENDOR hereby agrees to indemnify, save, and hold harmless the CITY from all claims, demands, liabilities, and suits of any nature whatsoever arising out of, because of, or due to the breach of the Agreement by the VENDOR, its agents or employees, or due to any act or occurrence of omission or commission of the VENDOR, its agents employees. It is specifically understood and agreed that this indemnification agreement does not cover or indemnify the CITY for its own negligence or breach of contract. 4. MODIFICATION: The CITY may by written Order, make changes in the specifications if such changes are within the general scope of the Contract. If such changes cause an increase or decrease in the VENDOR'S costs or in time required for performance of the Contract: (a) the VENDOR shall promptly notify the CITY and assert its claim for adjustment and an equitable adjustment shall be made by the CITY and the Contract modified accordingly. Nothing in this clause shall excuse the VENDOR from performing. 5. DEFAULT: Time is of the essence of this contract and if delivery of acceptable items or rendering of services is not completed by the time promised, the CITY reserves the right without liability, in addition to its other rights and remedies, to terminate this contract by notice effective when received by VENDOR; as to stated items not yet shipped or services not yet rendered, and to purchase substitute items or services elsewhere and charge the VENDOR with any and all losses incurred. 6. TRANSPORTATION CHARGES: Transportation expenses for all shipments shall be prepaid to destination. Shipments sent C.O.D. or freight collect without the CITY'S written consent will not be accepted and will, at VENDOR'S risk and expense be returned to VENDOR. No charges will be allowed by the CITY for transportation, packing, cartage or containers unless otherwise authorized in the Purchase Order. 7. UNAVOIDABLE DELAY: If the VENDOR is delayed in the delivery of goods purchased under the Purchase Order by a cause beyond its control, VENDOR must immediately upon receiving knowledge of such delay, give written notice to the CITY and request an extension of time. The CITY shall examine the request and determine if the VENDOR is entitled to an extension. 8. QUANTITY: Quantities furnished in excess of those specified in the Purchase Order will not be accepted and will be held at VENDOR'S risk and expense. 9. INSPECTION: Materials or equipment purchased are subject to inspection and approval at the CITY'S destination. The CITY reserves the right to reject and refuse acceptance of items which are not in accordance with the instructions, specifications, drawings, or data of VENDOR'S warranty (expressed or implied). Rejected materials or equipment shall be removed by, or at the expense of, the VENDOR promptly after rejection. 10. WARRANTY: The VENDOR warrants that all goods and services furnished hereunder will conform in all respects to the terms of this order, including any drawings, specifications, or standards incorporated herein, and that they will be free from latent and patent defects in materials, workmanship and title, and will be free from such defects in design. In addition, VENDOR warrants that said goods and services are suitable for, and will perform in accordance with, the purpose for which they are purchased, fabricated, manufactured and designed or for such other purposes as are expressly specified in this order. The CITY may return any nonconforming or defective items to the VENDOR or require correction or replacement of the item at the time the defect is discovered, all at the VENDOR'S risk and expense . Acceptance shall not relieve the VENDOR of its responsibility. 11. REGULATORY COMPLIANCE: VENDOR represents and warrants that the goods or services furnished hereunder (including all labels, packages, and containers for said goods) comply with all applicable standards, rules and regulations in effect under the requirements of Federal, State and local laws, including the Occupational Safety and Health Act as amended, with respect to design, construction, manufacture or use for their intended purpose of said goods or services. VENDOR shall furnish "Material Safety Data Sheets" in compliance with the Florida Right To Know Law, Florida Statutes, Chapter 442. 12. ROYALTIES AND PATENTS: VENDOR shall pay all royalties and license fees. VENDOR shall defend all suits or claims for infringement of any patent, copyright or trademark rights and shall save the CITY harmless from loss on account thereof. 13. PAYMENT: Payments will be made in accordance with the terms on the face of this order, or the VENDOR'S invoice, whichever are more favorable to the CITY and payment date therefor shall be calculated from the receipt of invoice or final acceptance of the goods, whichever is later. 14. IDENTIFICATION: Invoices in duplicate with prices set out and giving the correct Purchase Order Number must be sent to the address shown on the face of this order, otherwise payment of VENDOR'S account may be delayed. The Purchase Order Number shall appear on all invoices, boxes, packages, shipping documents and correspondence, and the list of contents shall be enclosed in each box or package. 15. TERMINATION: CITY may, at any time, terminate this order in whole or in part by written or telegraphic notice or verbal notice confirmed in writing. Upon termination for convenience of Buyer, the Buyer will assume responsibility for specific contractual or scheduled financial commitments made prior to notice of termination. Any and all services, property, publications, or materials provided during or resulting from the Contract shall become the property of the Buyer. If, however, termination is occasioned by the VENDOR'S breach of any condition hereof, including breach warranty, or by VENDOR'S delay, except due to circumstances beyond the VENDOR'S control and without VENDOR'S fault or negligence, VENDOR shall not be entitled to any claim or costs or to any profit referred to in said clause, and Buyer shall have against VENDOR all remedies provided by law and equity. 16. TAXES: CITY of Miami is exempt from State and local taxes. Exemption number is printed on the reverse side hereof. This Order shall serve as the exemption certificate. 17. LAW GOVERNING: This contract shall be governed by and construed according to the laws of the State of Florida. 18. ASSIGNMENT: Any assignment of this Purchase Order, including any performance of work hereunder, in whole or in part, or monies due hereunder, shall be void unless consented to by CITY in writing and CITY shall have no obligations to any assignee of VENDOR under any assignment not consented to in writing by THE CITY. 19. TERMS: The order total shall be paid by the CITY upon receipt of invoice from VENDOR which shall be subject to verification as to quantities and quality of goods delivered or services performed. 20. TAX: VENDOR doing business with the CITY shall not be exempt from paying sales tax to their suppliers for materials to fulfill contractual obligations with the CITY, nor shall any VENDOR be authorized to use the CITY Tax Exemption Number in acquiring such materials. 21. LOCAL RESOURCES: VENDOR shall give first priority to utilizing resources in the disaster area, including but not limited to procuring supplies and equipment, awarding sub -contracts, and employing workmen. 22. PAYMENT CHANGES: Payments 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, Florida Statutes) shall prevail as the basis for contractual obligations between the VENDOR and CITY for any terms and conditions not specifically stated in this Purchase Order. 24. INSURANCE: In the event that insurance is required by the CITY in connection with this Purchase Order, VENDOR shall provide an Insurance Certificate, in a form acceptable to the CITY, naming the CITY as an additional insured, as proof of compliance therewith which said certificate shall constitute part of this Purchase Order. 25. BONDING: The CITY reserves the right to require the VENDOR to post a performance and payment bond in the amount of One Hundred percent (100%) of the Purchase Order total, upon award or at such time deemed necessary by CITY. 26. NON -APPROPRIATION OF FUNDS: In the event no funds or insufficient funds are appropriated, allocated, and budgeted or are otherwise unavailable for any reason in any fiscal period or at any time for payments due under this contract/purchase order, then the City Manager or Procurement Director, upon written notice to the VENDOR of such occurrence, shall have the unqualified right to terminate the contract without any penalty or expense to the City. The Vendor shall have no recourse from such termination except to receive undisputed payments due prior to the effective date of the termination. 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Air Rights The right to undisturbed use and control of designated air space above a specific land area within stated elevations. Air rights may be acquired to construct a building above the land or building of another or to protect the light and air of an existing or proposed structure on an adjoining lot. Air rights do not always include development rights. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) As Is Market Value The estimate of the market value of real property in its Appraisal Institute, The current physical condition, use, and zoning as of the Dictionary of Real appraisal date. (Interagency Appraisal and Evaluation Estate Appraisal, 7th Guidelines) Note that the use of the "as is" phrase is Ed. (Chicago: Appraisal specific to appraisal regulations pursuant to FIRREA Institute, 2022) applying to appraisals prepared for regulated lenders in the United States. The concept of an "as is" value is not included in the Standards of Valuation Practice of the Appraisal Institute, Uniform Standards of Professional Appraisal Practice, or International Valuation Standards. Band of A technique in which the capitalization rates attributable Appraisal Institute, The Investment to components of an investment are weighted and Dictionary of Real combined to derive a weighted -average rate attributable Estate Appraisal, 7th to the total investment (i.e., debt and equity, land and Ed. (Chicago: Appraisal improvements). Institute, 2022) Condominium An attached, detached, or stacked unit within or attached Appraisal Institute, The to a structure with common areas that are held as tenants Dictionary of Real in common (an undivided interest) with other owners in Estate Appraisal, 7th the project. The units can be residential, commercial, Ed. (Chicago: Appraisal industrial, or parking spaces or boat docks. These units are Institute, 2022) commonly defined by state laws in their locations. Because units can be stacked on top of other units, these units can be defined both vertically and horizontally. Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service (DCR = NOI/IM), which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). A larger DCR typically indicates a greater ability for a property to withstand a reduction of income, providing an improved safety margin for a lender. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income -producing ability of the property, such as a broken window, a dead tree, a leak in the roof, or a faulty roof that must be completely replaced. These items are almost always curable. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Depreciation 1. In appraisal, a loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. 2. In accounting, an allocation of the original cost of an asset, amortizing the cost over the asset's life; calculated using a variety of standard techniques. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Discount Rate (Y) A rate of return on capital used to convert future payments or receipts into present value. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property and its effective gross income. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Entrepreneurial Profit 1. A market -derived figure that represents the amount an entrepreneur received for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. 2. In economics, the actual return on successful management practices, often identified as coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Equity Capitalization Rate (RE) An income rate that reflects the relationship between one year's equity cash flow and the equity investment; also called the cash -on -cash rate, cash flow rate, cash throw- off rate, or equity dividend rate. (RE = IE/VE, or Pre -Tax Cash Flow/Equity Invested) Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Equity Ratio (E) The ratio between the down payment paid on a property and its total price; the fraction of the investment that is unencumbered by debt. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Exposure Time An opinion, based on supporting market data, of the length of time that 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. Uniform Standards of Professional Appraisal Practice 2020-2021 Ed. (Washington, DC: The Appraisal Foundation, 2019 (extended through December 31, 2023)). External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be either temporary or permanent. There are two forms of external obsolescence: economic and locational. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Extraordinary Assumption An assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uniform Standards of Professional Appraisal Practice 2020-2021 Ed. (Washington, DC: The Appraisal Foundation, 2019 (extended through December 31, 2023)). Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Gross Building Area (GBA) 1. Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above -grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. 2. Gross leasable area plus all common areas. 3. For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive Appraisal Institute, The use of tenants, including basements and mezzanines; Dictionary of Real measured from the center of joint partitioning to the Estate Appraisal, 7th outside wall surfaces. Ed. (Chicago: Appraisal Institute, 2022) Highest and Best Use 1. The reasonably probable use of property that Appraisal Institute, The results in the highest value. The four criteria that Dictionary of Real the highest and best use must meet are legal Estate Appraisal, 7th permissibility, physical possibility, financial Ed. (Chicago: Appraisal feasibility, and maximum productivity. Institute, 2022) 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source 4. [For fair value determination] The use of a nonfinancial asset by market participants that would maximize the value of the asset or the group of assets and liabilities (for example, a business) within which the asset would be used. (FASB Glossary) The highest and best use of a nonfinancial asset takes into account the use that is physically possible, legally permissible, and financially feasible. (FASB 820-10-35-10B). The highest and best use of a nonfinancial asset establishes the valuation premise used to measure the fair value of the asset, as follows: (a) The highest and best use of a nonfinancial asset might provide maximum value to market participants through its use in combination with other assets as a group (as installed or otherwise configured for use) or in combination with other assets and liabilities (for example, a business). (b) The highest and best use of the asset might provide maximum value to market participants on a standalone basis. (FASB 820-10-35-10E) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Uniform Standards of Professional Appraisal Practice 2020-2021 Ed. (Washington, DC: The Appraisal Foundation, 2019 (extended through December 31, 2023)). Insurable Value A type of value for insurance purposes. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Internal Rate of Return (IRR) The annualized yield rate or rate of return on capital that is generated within an investment or portfolio over a period of ownership. Alternatively, the indicated return on capital associated with a projected or pro forma income stream. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Leasehold Estate (Leasehold Interest) The right held by the lessee to use and occupy real estate fora stated term and under the conditions specified in the lease. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Loan -to -Value Ratio (M) The ratio between a mortgage loan and the value of the property pledged as security, usually expressed as a percentage; also called loan ratio or LTV. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Marketing Time An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the execution of a lease as of a specified date under conditions whereby • Lessee and lessor are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and • The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (Tls). Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Market Value A type of value, stated as an opinion, that presumes the Uniform Standards of transfer of a property (i.e. a right of ownership or a bundle Professional Appraisal of such rights), as of a certain date, under specific Practice 2020-2021 Ed. conditions set forth in the value definition that is (Washington, DC: The identified by the appraiser as applicable in an appraisal. Appraisal Foundation, 2019 (extended through December 31, 2023)). Mortgage Capitalization Rate (RM) The capitalization rate for debt; the ratio of the annual Appraisal Institute, The debt service to the remaining principal balance of the Dictionary of Real mortgage loan. The mortgage capitalization rate (RM) is Estate Appraisal, 7th equivalent to the periodic (monthly, quarterly, annual) Ed. (Chicago: Appraisal mortgage constant multiplied by the number of payments Institute, 2022) per year on a given loan on the day the loan is initiated. RM = Annual Debt Service/Mortgage Principal Mortgage Debt Service (IM) The annualized periodic payment for interest on and Appraisal Institute, The retirement of the principal of a mortgage loan; also called Dictionary of Real total mortgage debt service. The abbreviation IM refers to Estate Appraisal, 7th the annual debt service. These terms often refer to annual Ed. (Chicago: Appraisal debt service, but clarification is often required if they are Institute, 2022) monthly, quarterly, or annual because many mortgages are paid monthly. Net Income Multiplier (NIM) The relationship between price or value and net operating Appraisal Institute, The income expressed as a factor; the reciprocal of the overall Dictionary of Real capitalization rate. Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Net Operating Income (NOI or lo) The actual or anticipated net income that remains after all Appraisal Institute, The operating expenses are deducted from effective gross Dictionary of Real income but before mortgage debt service and book Estate Appraisal, 7th depreciation are deducted. Note: This definition mirrors Ed. (Chicago: Appraisal the convention used in corporate finance and business Institute, 2022) valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). Net Rentable Area (NRA, Rentable Area) For office or retail buildings, the tenant's pro rata portion Appraisal Institute, The of the entire office floor, excluding elements of the Dictionary of Real building that penetrate through the floor to the areas Estate Appraisal, 7th below. The rentable area of a floor is computed by Ed. (Chicago: Appraisal measuring to the inside finished surface of the dominant Institute, 2022) portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Overall Capitalization Rate (Ro) The relationship between a single year's net operating Appraisal Institute, The income expectancy and the total property price or value Dictionary of Real (Ro = to /V0). Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Prospective Market Value "As Completed" and "As Stabilized" A prospective market value may be appropriate for the Appraisal Institute, The valuation of a property interest related to a credit decision Dictionary of Real for a proposed development or renovation project. Estate Appraisal, 7th According to USPAP, an appraisal with a prospective Ed. (Chicago: Appraisal market value reflects an effective date that is subsequent Institute, 2022) to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value —as completed— reflects the property's market value as of the time that development is expected to be completed. The prospective market value —as stabilized— reflects the property's market value as of the time the property is projected to achieve stabilized occupancy. For an income -producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. (See USPAP Statement 4* and Advisory Opinion 17.) (Interagency Appraisal and Evaluation Guidelines) Prospective Opinion of Value A value opinion effective as of a specified future date. The Appraisal Institute, The term does not define a type of value. Instead, it identifies Dictionary of Real a value opinion as being effective at some specific future Estate Appraisal, 7th date. An opinion of value as of a prospective date is Ed. (Chicago: Appraisal frequently sought in connection with projects that are Institute, 2022) proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Replacement Cost The estimated cost to construct, at current prices as of a Appraisal Institute, The specific date, a substitute for a building or other Dictionary of Real improvements, using modern materials and current Estate Appraisal, 7th standards, design, and layout. Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Definition Source Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design, and layout for insurance coverage purposes guaranteeing that damaged property is replaced with new property (i.e., depreciation is not deducted). Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Reproduction Cost The estimated cost to construct, at current prices as of the Appraisal Institute, The effective date of the appraisal, a duplicate or replica of the Dictionary of Real building being appraised, using the same or similar Estate Appraisal, 7th materials, construction standards, design, layout, and Ed. (Chicago: Appraisal quality of workmanship and embodying all the Institute, 2022) deficiencies, superadequacies, and obsolescence of the subject building. Residual An overall capitalization rate used to estimate the resale Appraisal Institute, The Capitalization Rate price of a property; usually applied to the anticipated Dictionary of Real (RN) stabilized income for the year beyond the holding period; Estate Appraisal, 7th also called terminal capitalization rate. Ed. (Chicago: Appraisal Institute, 2022) Retrospective A value opinion effective as of a specified historical date. Appraisal Institute, The Value Opinion The term retrospective does not define a type of value. Dictionary of Real Instead, it identifies a value opinion as being effective at Estate Appraisal, 7th some specific prior date. Value as of a historical date is Ed. (Chicago: Appraisal frequently sought in connection with property tax Institute, 2022) appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion." Sandwich Lease A lease in which an intermediate, or sandwich, leaseholder is the lessee of one party and the lessor of another. The owner of the sandwich lease is neither the fee owner nor the user of the property; he or she may be a leaseholder in a chain of leases, excluding the ultimate sublessee. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3501 Rickenbacker Cswy - Marina Space 24-237-02 GLOSSARY OF VALUATION TERMS Term Sum of the Retail Values Surplus Land Definition The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. An appraisal has an effective date, but summing the sale prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price. Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. Source Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS OF THE APPRAISER TED ALLEN, MAI Mr. Allen currently holds the position of Managing Partner with the Miami office of Joseph J. Blake and Associates, Inc., at 5201 Blue Lagoon Drive, Suite 270, Miami, Florida. Previous positions include Principal (1986 to 2011), Regional Manager Southeast Region (1984 to 1986), Senior Appraiser (1982 to 1983) and Associate Appraiser (1979 to 1981). FORMAL EDUCATION University of Texas - Austin, Texas Bachelor of Business Administration PROFESSIONAL AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser No. RZ 426 Georgia State -Certified General Real Property Appraiser No. CG 1855 Appraisal Institute, Designated Member No. 6949 Royal Institution of Chartered Surveyors No. 6329062 CURRENT RESPONSIBILITIES Responsibilities include the preparation and direction of a variety of full narrative real estate appraisals and consulting studies prepared on a national basis. Mr. Allen supervises all staff appraisers and consultants and directs all major assignments throughout the southeastern United States and the Caribbean. APPRAISAL EXPERIENCE Mr. Allen has prepared and directed numerous appraisal and consulting assignments which include mixed - use properties, multifamily developments, proposed and existing condominiums and conversions, timeshares, office buildings, motels, hotels, industrial properties, regional malls, shopping centers, mobile home parks, market studies, feasibility studies, and investment analyses on a variety of institutional and non - institutional grade real property in over 15 states and 10 Caribbean nations. He has appraised and has supervised appraisals, as well as prepared consulting studies of properties for a variety of public pension funds, large institutional investors, pension fund advisors, insurance companies and banks. Mr. Allen has qualified as an expert witness for Federal Bankruptcy Court in the State of Florida and the State of Georgia and has given oral and written testimony in each. He has also been qualified in Florida State and County Courts. LEADERSHIP AND ADDITIONAL EXPERIENCE Mr. Allen is currently one of three executive committee members managing the operations of Joseph J Blake and Associates. This position oversees all aspects of the firms operations throughout the US. His duties including accounting oversight, IT oversight, marketing, short and long range planning, personnel staffing and budgeting. Positions held at the Appraisal Institute include: former service on Chapter Admissions Committee Member, former service on National Admissions Committee, and former service on National Ethics Committee. Additional real estate activities include NCREIF and Mortgage Bankers Association functions and service as Special Magistrate Miami Dade County Value Adjustment Board for the 2014 tax year. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS OF THE APPRAISER CERTIFICATION Ron DeSantis, Governor STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Melanie S. Griffin, Secretary d Florida _ r FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES ALLEN, TED EUGENEJ 5201 BLUE LAGOON DRIVE SUITE 270 MIAMt FL 33126 LICENSE NUMBER: RZ426 EXPIRATION DATE: NOVEMBER 30, 2026 Always verify licenses online at MyEloridaLicense.com ISSUED: 09/06/2024 Do not alter this document in any form. This is your license. It is unlawful for anyone other than the licensee to use this document. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS OF THE APPRAISER ORLANDO SANTOS Mr. Santos is a State -Certified General Real Estate Appraiser with the Miami office of Joseph J. Blake and Associates, Inc., at 5201 Blue Lagoon, Suite 270, Miami, Florida. FORMAL EDUCATION Florida International University — Miami, FL Masters of Science in International Real Estate Florida International University —Miami, FL Bachelor of Science in Biology Minor in Chemistry REAL ESTATE AND APPRAISAL EDUCATION Course Name Provider Advanced Residential Apps & Case Studies Sales Comparison and Income Approach Statistics, Modeling and Finance Site Valuation and Cost Approach General Market Analysis and Highest and Best Use Specialized Residential Topics Report Writing and Valuation Analysis Gold Coast School of Real Estate Gold Coast School of Real Estate Gold Coast School of Real Estate Gold Coast School of Real Estate Gold Coast School of Real Estate Gold Coast School of Real Estate Gold Coast School of Real Estate PROFESSIONAL AFFILIATIONS Affiliation Number Florida - State -Certified General Real Estate Appraiser No. RZ4535 APPRAISAL EXPERIENCE Responsibilities include preparation of full narrative appraisal and market study reports for a wide variety of property types and purposes, including but not limited to business parks, office buildings, industrial buildings, shopping centers, multi -family projects, hotels and land JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS OF THE APPRAISER CERTIFICATION ❑� L1 Eton deSantis. Governor Melanie S. Griffin, Secretary STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES SANTOS, ORLANDO RUFI NO 12953 SW 135TH TERRACE MIAMl FL 33186 r LICENSE NUMBER: P24535 .I EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online at MyFlaridaLicense.con1 ISSUED: 05128/2024 Do not alter this document in any form. dFlriciaor This is your license. It is unlawful for anyone other than the licensee to use this document. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING