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Iitg of 4Tha rrt AR FIRM \URIEGA V (it), Manager It Term Sheet July 14, 2023 Licensee: Shay Barak Corp. d/b/a Miara Perfumes, Inc. Customer #182873 Property: 174-176 E Flagler Street Miami, Florida 33131 Area/Square feet: 815 square feet Type of Agreement: Revocable License Agreement (RLA") Effective Date: Upon License execution by all parties. Initial Term: 1 Year Renewal Date: TBD Renewal Term: Two (2) one-year renewal periods by official request Security Deposit: $3,819.90 (two months monthly use fee) Monthly Use Fee: $1.909.95 + Sales/Use Tax Annual Increase: 5% increase of monthly use fee and security deposit on October I" each year Percentage Rent: N/A Utilities: Licensee shall pay for all charges for electricity and be responsible for telephone service. Water and sewerage will be supplied by the Licensor. This document serves as a Non -Binding Term Sheet to License and outlines the basic terms of a proposal with City of Miami for the above subject property subject property. If the above terms are acceptable, please sign below. This will be used as the foundation of the Revocable License Agreement. Signature: Print Name: Date: -C'li /(rP-, 7-1 1 Y( z3 DEPARTMENT OF REAL. ESTATE AND ASSET MANAGEMENT 444 S W. 2nd Avenue. 3rd Flour. Miami. Florida 33130 / (305) 416-1450 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Arthur Noriega V DATE: August 22, 2023 City Manager DS FROM: Andrew Frey, Director QF Department of Real Estate • & Asset Management ("DREAM") SUBJECT: Shay Barak Corp. d/b/a Miara Perfumes Inc. Revocable License Agreement 4/5ths Bid Waiver REFERENCES: N/A ENCLOSURES: N/A The City of Miami ("City") is the owner of real property located at 174-176 E Flagler Street, Miami, Florida, which is occupied by Shay Barak Corp. d/b/a Miara Perfumes Inc. ("Miara Perfumes"). The occupant had a Lease Agreement ("Lease") in place with a third -party management company which was utilized by the City and is now defunct. Additionally, the Lease in place has expired and Miara Perfumes has accepted a term sheet offered to them from DREAM. DREAM wishes to enter into a new Revocable License Agreement with the occupant. Please confirm your recommendation that competitive negotiation methods and procedures are not practicable or advantageous to the City pursuant to the Code of the City of Miami, Florida, as amended due to the property already being occupied by the tenant. In light of the above, DREAM respectfully requests approval of a waiver of the formal requirements of competitive sealed bidding methods as not being practicable or advantageous to the City as set forth in Section 18-85(a) of the City Code or Ordinances, as amended, the affirmation of these written findings, and recommendation to the City Commission for ratification by a four -fifths affirmative vote. Please sign below to acknowledge your approval: _[850CF6C372DD42A... Art Noriega V City Manager DocuSigned by: tivguAr Novitia. MARKET RENT STUDY FOR OLYMPIA THEATER-COMMERCIAL/OFFICE SPACE 174 EAST FLAGLER STREET, MIAMI, FLORIDA 33131 FEE OWNER: CITY OF MIAMI EFFECTIVE DATE OF APPRAISAL DECEMBER 31, 2023 PREPARED FOR MS. ASHLEY MCGREGOR SPECIAL PROJECT ASST. DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT CITY OF MIAMI 444 SW 2ND AVENUE, 3RD FLOOR MIAMI, FLORIDA 33130 The URBAN IM=G rou p Ruaus KOJI All MATE ar The URBAN =MIMIC; r Mip .3usrvall0tF I EST4TEC ILTJJITg REAL ESTATE ADVISORS I PROGRAM MANAGERS I REAL ESTATE APPRAISERS January 4, 2024 Ms. Ashley McGregor Special Project Asst. Department of Real Estate and Asset Management City of Miami 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 Re: Market Rent Study 174 East Flagler Street Miami, Fl. 33131 Folio: 01-0112-010-1010-(Part of) Dear Ms. McGregor: Per your request, we have reviewed the above captioned property for the purpose of providing you with a market rent study for the various commercial/office spaces located on the Olympia Theater property. This assignment involved the preparation of a market rent study report which summarizes the appraiser's analysis and rationale for the conclusions. The purpose of this appraisal is to form an opinion of the market rent for the various spaces and assume that the spaces are in a shell condition. The property rights appraised will be discussed within the valuation scenarios. The intended users of the report are the City of Miami, City Commission and their respective legal counsel and representatives. The intended use of the report is to provide the City with a market value rent for each of the spaces for their use in any future negotiations to lease the commercial/office spaces. I have prepared the attached Appraisal Report, which contains a recapitulation of the data utilized to form an opinion of the market rents as of December 31, 2023. If any additional data is required, please advise. 150 SE 12th Street • Suite 100 • Fort Lauderdale • Florida 33316 Telephone: 954-522-6226 • Fax: 954-522-6422 • www: theurbangroup.com Ms. McGregor, January 4, 2024 Based upon our inspection of the property and market data analysis, it is our opinion the market rent on a triple net basis as of December 31, 2023 is as follows: 166 E. Flagler Street 717 Square Feet x $36 = $ 25,812 168 E Flagler Street 508 Square Feet x $36 = $ 18,288 176 E. Flagler Street 925 Square Feet x $40 = $ 37,000 8 SE 2nd Avenue 368 Square Feet x $36 = $ 13,248 10 SE 2nd Avenue 677 Square Feet x $36 = $ 24,372 20 SE 2nd Avenue 765 Square Feet x $36 = $ 27,540 Total Market Rent-3,960 Square Feet $146,260 These rental rates would be based on a triple net basis and considering the spaces as "vanilla" shell spaces only. Our review did not provide us with any examples of percentage rents for this type of space. Percentage rents are more typical for restaurant properties and our research did not reveal any percentage rents associated with these types of spaces. Sincerely, Robert D. Miller, ASA State Certified General R.E. Appraiser No. RZ1270 The URBAN mmmG roue MUSEUM SUL ESTATE 591 MIS CERTIFICATION OF VALUE The undersigned hereby certifies that, to the best of our knowledge and belief: The statements of fact contained in the report are true and correct. The reported analyses, opinions and conclusions are limited only by the assumptions and limiting conditions set forth, and are my personal, unbiased professional analyses, opinions and conclusions. We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. We have previously appraised the subject property in 2022 and are providing additional market rent analysis with no other assignments completed in the last three years. The appraisers' compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this rental rate analysis. The reported analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice and the American Society of Appraisers. Use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. Robert D. Miller and Steven D. Johnson, MAI have made a personal inspection of the subject property and John Zink and Steven D. Johnson, MAI provided research, analysis and report assistance, but the valuation conclusions are those of the signatory appraiser. Robert D. Miller, ASA State Certified General R.E. Appraiser No. RZ1270 1 COMPETENCY PROVISION Appraisers This assignment is being performed for the purpose of estimating a fair market rental rate of the subject's first floor commercial/office spaces. The appraiser has complied with the Competency Provision and has the knowledge and expertise necessary to complete the assignment competently. Mr. Miller certifies that he has completed these types of rental analysis for more than 40 years in the State of Florida. •0 January 4, 2024 Date Robert D. Miller, ASA 2 TABLE OF CONTENTS INTRODUCTION AND PREMISES OF THE APPRAISAL Letter of Transmittal Certificate of Value 1 Addenda to the Certificate of Value 2 Table of Contents 3 Qualifying and Limiting Conditions 4 Summary of Salient Facts and Conclusions 6 Type of Report Format 7 Purpose, Intended Use, Intended User of the Appraisal 7 Definition of Market Rent, Easements and Market Value 8 Property Rights (Interest) Appraised 9 Scope (Extent of Process of Collecting, Confirming and Reporting Data) 10 Appraisal Problem 11 PRESENTATION OF DATA Identification of Property and Legal Description 11 Description of Area and Neighborhood 11 Description of Property, Photographs and Sketches 13 Zoning, Land Use Plan, Concurrency 24 Assessed Value, Taxes and Special Assessments 24 History of Property 24 Exposure Time 25 Public and Private Restrictions 25 ANALYSIS OF DATA AND CONCLUSION Highest and Best Use Analyses 25 Highest and Best Use Conclusion 27 Approaches to Value Used and Excluded 28 Land Valuation 28 Conclusion of Market Rental Rate 34 ADDENDA Area Map Land Sales Data Sheets Zoning/Future Land Use Area and Neighborhood Analysis Qualifications of Appraisers Located in Office Working Files Building Sketches, Backup Lease Information, Documents from City 3 QUALIFYING AND LIMITING CONDITIONS The legal description furnished to the appraisers is assumed to be correct. The appraisers assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. All existing liens and encumbrances have been considered; however, the property is appraised as though free and clear with the exception of the historical designation of the existing improvement and under responsible ownership and competent management. The information, estimates and opinions identified in this report as being furnished to the appraiser by others is believed to be reliable; however, the appraisers assume no responsibility for its accuracy. We have not inspected or tested the soil or subsoil, and therefore unable to report that any such part of the subject property is free from defect or in such condition as to render the subject property less valuable. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. Also, it is assumed that the utilization of the land any improvements are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. The distribution, if any, of the total valuation in this report between land and any improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 4 QUALIFYING AND LIMITING CONDITIONS (Continued) Possession of this report, or copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraisers, and in any event, only with proper written qualifications and only in its entirety. The appraisers herein by reason of the appraisal are not required to give further consultation, testimony, or be in attendance in court with reference to the property in questions unless arrangements have been previously made. Neither all, nor part of the contents of this report, especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are connected, shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers are not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 5 SUMMARY OF SALIENT FACTS AND CONCLUSIONS PROPERTY LOCATION: OWNER's NAME/ADDRESS: INSPECTION DATES: NAMES OF PERSONS WHO ACCOMPANIED APPRAISER AT INSPECTION: EXTENT OF INSPECTION: FOLIO NUMBER: TYPE OF PROPERTY: PROPERTY SIZE: BUILDING SIZES: ZONING/FUTURE LAND USE: HIGHEST AND BEST USE: 174 East Flagler Street, Miami, Florida The City of Miami -Dept of P&D Asset Management Division 444 SW 2nd Avenue Ste. #325 Miami, Fl. 33130 December 1, 2023 and January 3, 2024 On site physical exterior inspection were completed by appraisers, Robert Miller, and Steven Johnson. The appraisers were accompanied by the property manager during the inspection. Interior and exterior inspection of the spaces 01-0112-010-1010-Part of -Includes theater and apartments as well. 10 story building containing a theater, first floor retail/office space and upper floor residential units. 21,477 square feet of land area 88,180 Square Feet 7,000 Square Feet of Commercial/Office Space The City of Miami 21 zoning for the subject is T6-80 0, 1000 units per acre. Land Use: Municipal. As existing 6 MARKET RENT CONCLUSIONS 166 E. Flagler Street 717 Square Feet x $36 = $ 25,812 168 E Flagler Street 508 Square Feet x $36 = $ 18,288 176 E. Flagler Street 925 Square Feet x $40 = $ 37,000 8 SE 2nd Avenue 368 Square Feet x $36 = $ 13,248 10 SE 2nd Avenue 677 Square Feet x $36 = $ 24,372 20 SE 2nd Avenue 765 Square Feet x $36 = $ 27,540 Total Market Rent-3,960 Square Feet $146,260 These rental rates would be based on a triple net basis. Our review did not provide us with any examples of percentage rents for this type of space. Percentage rents are more typical for restaurant properties and our research did not reveal any percentage rents associated with these types of spaces. 7 TYPE OF REPORT FORMAT The rental rate analysis is prepared in an Appraisal Report format in accordance with the Uniform Standards of Appraisal Practice Standards. Certain discussions are brief, and some information considered is not included in this report and is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of USPAP. This appraisal assignment involved the preparation of a Commercial/Office rental analysis of the 3,960 square feet area of commercial/office space on the first floor of the Olympia Theater Building in Miami's Central Business District. The analysis summarizes the appraiser's analysis and rational for the conclusions. PURPOSE, INTENDED USE, INTENDED USER OF THE APPRAISAL The purpose of this assignment is to determine the subject's market rental rate for the commercial/office space on the first floor of the property. . The intended use is for negotiations between the City of Miami and a potential tenant. The function of this report is to provide market rents for consideration in the future lease of the property. The intended users of the report are the City of Miami and with their respective legal counsel and representatives. DEFINITION OF MARKET VALUE The following market value definition is found in Florida case law, (Florida State Road Department vs. Stack, 231 So.2d 859 Fla., 1st DCA 1969) and is the acceptable and preferred definition of market value: "Value means amount which would be paid for property on assessing date to willing seller not compelled to sell, by willing purchaser, not compelled to purchase, taking into consideration all uses to which property is adapted and might reasonably be applied." The willing buyer and willing seller test include consideration of the following: ....1. A fair sale resulting from fair negotiations, ....2. Neither party acting under compulsion (this eliminates forced liquidation or sale at auction), Both parties have knowledge of all relevant facts, A sale without peculiar or special circumstances, A reasonable time to find a buyer. 8 DEFINITION OF MARKET RENT Market rent is the rent that a comparable property would command in a given real estate rental market. It is based on the supply and demand of that kind of property and the willingness of tenants and landlords to lease the property. Market rent assumes that both parties are well-informed and under no pressure to make a deal. Property Interest Appraised: Real Property Interest Previously Conveyed: Encumbrances: The market rent for the first floor commercial/office space on the first floor of the Olympia Theater building. We are not aware of any other interests, encumbrances or easements which negatively affect the market value. The improvement was declared a historical Improvement on 3/8/84 We have not been provided with a title report. Non -Realty Items Appraised: None 9 SCOPE (EXTENT OF PROCESS OF COLLECTING, CONFIRMING AND REPORTING DATA) We have compiled all the necessary data to formulate an opinion of a market rental rate for the subject's 1st floor area. We have presented the applicable data in this Market Rent Report. Any additional supporting data can be found in our working file. The scope of the appraisal involved inspections of the subject property and surrounding area to develop a better understanding of the growth patterns, property types and economic uses of the subject neighborhood. In preparing this report, We have reviewed and relied upon the following data. 1. We reviewed various listings of rental rates within the immediate subject neighborhood. 2. Review of public records for all pertinent rental rate data including county property appraiser's records. We retrieved rental rate data from CoStar, LoopNet, MLS, internet, and local contacts. In addition, conversations were held with local real estate brokers and agents concerning local conditions, development activity and a review of rental rates. 3. Reviewed and considered the sales history of the subject property and neighborhood. 4. Review of Miami Dade County and the City of Miami neighborhood trends. 5. Inspection of neighborhood and analysis of land use patterns and trends in the City of Miami. 6. Physical inspection of subject property and all rental rate comparable utilized in this report. Furthermore, the data relied upon was confirmed through knowledgeable parties to the transactions. The data relied upon is believed to be accurate, but the appraisers assume no responsibility for its accuracy. Analysis and review of the market revealed data considered to be reliable to arrive at an opinion of market rental rate value which is supportable for the subject location. 7. Reviewed and relied on sketches and legal descriptions as of the inspection date for this report for the size and descriptions of the subject property. Please see the legal descriptions and sketches in the report. The subject property was field inspected, and We have reviewed sketches and legal description for the subject parcel. A Market Rental Comparison Approach was considered in the analysis. Based on our review, the existing improvements and location were considered in the development of the fair market rental rate. 10 SCOPE (EXTENT OF PROCESS OF COLLECTING, CONFIRMING AND REPORTING DATA) (Continued) To complete the Market Rental Analysis, we have reviewed listings of rental rates within the subject neighborhood. This rental rate analysis was prepared and includes the data relied upon together with the analysis and conclusions. APPRAISAL PROBLEM The appraisal problem in this assignment is to determine the market rents for the various spaces that comprise the 3,960 square feet of available commercial/office space on the first floor of the Olympia Theater building. For this purpose, we reviewed and considered comparable listings and actual leases and after that review, we arrived a at market rent for the various spaces. IDENTIFICATION OF PROPERTY AND LEGAL DESCRIPTION The subject Parcel legal description is as follows and this includes the entire building: LEGAL DESCRIPTION Eat X, Lot 2 (le5e the iciest 2 inohee of the North 65 rant), , the South 55 feet of Lot 3, ancai the North 45 feet of Luta 1B r 19, and 20, Flock 121 North, CITY OF MIAMI r according to the Plat thereof, as re=cerre erd .fin Plat Etinf.Ok II, at Page 41, Or the Public Records of Dade County, Florida. As per O.R. Book 9053 page 723 of Public Records of Miami -Dade County. No legal descriptions were provided for the individual units DESCRIPTION OF AREA AND NEIGHBORHOOD The Description of Area and Neighborhood as well as additional information regarding Florida's economy and market analysis is included in the addendum. 11 NEIGHBORHOOD MAP I" 1111.11. I ...Ali .111 Li (17 1.157N ''.1].1.1.1!1- U ..RTUVA SPE hG GASPIIIEN k Ww.1.1 Ica-DExt?arl...9 7. 2 I I ifij 4' , i W [(WENT Tare' Q P r If. . '.,1' I. 11 : . — = . 1P --" . -WraIP1'. - ._ cl 7.2 ::-'1171:11.:11 e - F!INELL • PIPpe'a Fladeriii;pem ViWpiCa'1?.C.Aky i4,11 . tvoni 1 C P.Ibr cLuid-apl. 0 9 TIr Tcir ktarr Ping:: I :]•74... Pal rs kl.19!q17.-LI J SIJ SC JTH 11 A MI LUM 3 ... 6 See= ITIF• E Eld 12 DESCRIPTION OF PROPERTY, PHOTOGRAPHS AND SKETCHES PROPERTY TYPE / EXISTING USE: 10 Story Building PROPERTY LOCATION: 174 East Flagler Street, Miami, Fl. 33131 SITE SIZE: The subject contains a total 21,477 square feet of land area SHAPE: Irregular shape site. INGRESS/EGRESS: The subject site has pedestrian access from both East Flagler Street and SE 2nd Avenue. TOPOGRAPHY: DRAINAGE: Based upon a physical inspection of the site as well as adjacent properties, the soil conditions are considered adequate. Based on our inspection, the drainage appears adequate under normal observed typical conditions on the day of the appraiser's inspection. SOIL CHARACTERISTICS: No soil samples were taken or analyzed by the appraiser as this is beyond the scope of the appraiser's duties. UTILITIES: All utilities are readily available to the subject and surrounding properties. SITE IMPROVEMENTS: Sidewalks, canopies, etc. EASEMENTS, ENCROACHMENTS OR RESTRICTIONS AND THEIR EFFECT OR LIMITATION: We have not been provided with a title report and are not aware of any other encumbrances on the existing subject site. 13 The Existing Improvement: The site is improved with a l0-story building known as the Olympia Theater. The improvement was constructed in 1925 reflecting an age of 98 years. The theater opened in 1926, as a silent movie place and was known for the Moorish architecture, perfect acoustics and simulated night sky, complete with clouds and twinkling stars. It also achieved fame as the first air-conditioned building in the south. It was the number one entertainment center in Miami. The structure has been renovated in 1970-72,1975-77, 1989-96,2000-02 and 2009-12. The theater was named to the National Register of Historic Places in 1894. The first floor retail/office units consist of three store areas on Flagler Street and three units on SE 2nd Avenue. 166 (DDA Office-717 SF)) and 168 E. Flagler Street (Construction Storage Unit-508 SF) East Flagler Street are currently occupied. The store at the corner of SE 2nd Avenue and East Flagler Street is currently used as a Perfume Store and contains 925 square feet with an address of 176 E. Flagler Street. 8 SE 2nd Avenue contains 368 square feet, and 10 SE 2nd Avenue (Optician) contains 677 square feet of space. 20 SE 2nd Avenue contains 765 square feet of building area and is unoccupied. 166 and 168 East Flager Street have 2nd floor loft space that does not appear to have been constructed according to building codes and we have considered all of the spaces to be in a shell like condition, which is typical for these types of rentals. FLOOD ZONE: Zone X and Zone AE, Special Flood Hazard Areas with Elevation 9 ft-Map follows on next page. 14 InterFlood MAP albaA FE'k1.4 Souc:al Flood Hazard Aram Y. r+1ap NumLn 176HSCd9114 Zone AE Map Dale Septelnhef 7f,2O65 FIPS: 120H6 MAP L£ri€FUG Prupared for Thu Urban Group. kmc 40 F 2rIA Fo.KTs.tr, .Lar nArQae mr.lndarl d by 54:I0-ysar dload g Prgr4CrpUArgae na Arra inurdalyd by 100-yrear IGio+rH F400draey nVeracity hazard { $Irbjep Area 15 DESCRIPTION OF PROPERTY, PHOTOGRAPHS AND SKETCHES SUBJECT PHOTOGRAPHS View West of Rear of Olympia Theater improvement View looking northerly along SE 2 Avenue 16 SUBJECT PHOTOGRAPHS View West of Unit 20 fronting SE 2nd Avenue View West of Unit 10 fronting SE 2nd Avenue 17 SUBJECT PHOTOGRAPHS View West of Unit 8 fronting SE 2'd Avenue View of existing Perfume store at corner of Flagler Street and Southeast 2nd Avenue 18 SUBJECT PHOTOGRAPHS DrNrriorN iMt P v (IMO [h?! ti YpNs;ler cr.r�et Constndktio;n ORlir« View South of 166 E Flagler Street (DDA Office) View looking east on East Flagler Street -Empty Space at 168 East Flagler Street 19 SUBJECT PHOTOGRAPHS View looking westerly along East Flagler Street 20 AERIAL MAP 2 1 THEATER{ - 15.554 SF. GROUND FLOOR PLAN WITH SIZES FOR EACH SPACE TOTAL APARTMENTS 43,373 SF, seekksI s pa �,I`ll1 Inn II k 22 A JIIIHOpfl j� 4 1 71 1 L 1] i 2 �• a la mode, inc. � Haven Project errnaJoee The reeeer , rem eases ee NW tlth Terrace 2nd St Joe art Park CA f r �.l tt NW l l th St NW 9th 51 NW Bth St Historic Overtown / Lyric Theatre Florida Department of Children & Families 9 Government Center :Main Library SW 1Uth St SW tlth St Location Map PhiTp & Patricia Frost 9 Museum at Science NE llth St 8 r -_ - -'-! z Maurice A Ferre Park a" NE loth St c , tO NW 9th St NE 9th St ro NE 8th St O NE bth St © NE5thSt 0 NE 4th St 9Miami Dade College �+y Gesu Church ° SUBJECT 3 17-0 E. Hagler St NE 1 st St Miami, FL 33131 Y W Flagler:.St-Yan-Gagh: The Immersive... 111 NE 6I115t I u' f Dan Paul Pia. Freedom Tower at Miami Dade College 1 enpsreri;y closed NE 5th • t�. m ▪ Ate' yr Cy l SW 1st.St - O-SE 1st St Miami Tower - ---0 N a �'SW 9th S + t 3. a- SW 4th St r a �. sm I Brickel l SW loth St t-- sW 1itteSt I 0 ca _ 7 7.4 Bayfrant Park' en cu. no I—CIet I-4It wlu7i ire SE 21id St' Brickel[ Point 7 s SE 5th Sx "."TSr'�'`_ 44. 0 Chopin Mead i M Si 0 Burlingame Island Brickell Key Rrkke l Key L7r .Brickel Key Par 5-113, Map data S2O22 WO ft a Terms of Use 23 ZONING, LAND USE PLAN Zoning The subject zoning code with the Property Appraiser is 6401, commercial. Municipal Zoning Code is T6-80 0, Urban Core Zone minimum two-story height, maximum 80 stories with a Floor Lot Coverage Ratio of 24 as per the City of Miami 21 zoning. Existing/Future Land Use Designation: T6-80 0, Urban Core Zone minimum two-story height, maximum 80 stories, City of Miami - 24 zoning. The T6 zone consists of the highest density and greatest variety of Uses, including Civic Buildings of regional importance. Jurisdiction: City of Miami ASSESSED VALUE, TAXES AND SPECIAL ASSESSMENTS The subject property is assessed under folio number 01-0112-010-1010. The fee parcel is owned by the City of Miami which has tax exemptions. The exemption is based on the municipal ownership of the property. The 2023 current assessment information for the parcel is as follows: Folio Number 01-0112-010-1010 Land Value $4,510,170 Building Value $1, 140, 533 Save Our Home Assessment-$5,005,279 HISTORY OF PROPERTY Total Value $5,650,70. There have been no sales of the subject property within the past 10 years. The subject is wholly owned by the City of Miami. The current leases are on a month to month basis with Flagler Eye Care (10 SE 2nd Avenue) paying $1,185.93 per month, Miami DDA (166 E Flagler Street) paying $588.89 per month and the Perfume Store (176 E Flagler Street) paying $1,909.95 per month. The other spaces are vacant with 168 E. Flagler used as storage. Property Owner Name and Address: City of Miami -Dept. of P & D Asset Management Division 444 S.W. 2nd Avenue, Suite 325 Miami, Florida 33130 24 EXPOSURE TIME Exposure Time may be defined as follows: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market . Source: The Dictionary of Real Estate Appraisal, 5th Edition, Appraisal Institute. Based on the type of property being appraised, it is our opinion that the subject market is active with a normal or typical exposure time for this type of property. The subject proposed lease area would reflect a marketing and exposure time of between 3 to 6 months. PUBLIC AND PRIVATE RESTRICTIONS We have not been provided with a title report. The existing improvement has been declared a historical building which limits any major changes to the structure. The structure cannot be demolished and has certain restrictions of the exterior and interior that could adversely affect or limit the use of the subject property. Other typical restrictions affecting the subject property include utility easements, zoning & land use, and are not considered to adversely affect the subject property. The property as a registered historic property could limit some of the future development. HIGHEST AND BEST USE ANALYSES The current use of the subject property is the existing theater, commercial and residential units. The subject property was constructed in 1925 reflecting an age of 98 years. The improvement needs to be renovated with an estimated cost of $24,000,000 +/-. 25 DEFINITION OF HIGHEST AND BEST USE Highest and Best Use may be defined as follows: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria of the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Source: The Dictionary of Real Estate Appraisal, 5th Edition, Appraisal Institute, 2010, page 93. Implied within this definition is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual owners. Also implied is that the determination of the highest and best use results from the appraiser's judgment and analytical skill, i.e., that the use determined from the analysis represents an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of probable selling price (Market Value), another appropriate term to reflect highest and best use would be "most probable use". In the context of investment value, an alternative term would be "most profitable use". Highest and Best Use "As Vacant" Physically Possible Uses The overall size and dimensions of the subject site contains 21,477 square feet of land area that is suitable for development with Multi - Family, commercial, and hotel use. Therefore, all these potential uses are physically possible uses of the property. Legally Permissible Uses The subject has a liberal zoning that will allow for up to an 80- story building and up to 1000 units on the site. This zoning allows the current development and would also allow for additional density on the site. Therefore, the legally permissible uses would include commercial and residential, hotel, or mixed -use development. However, the subject improvement has been declared an historical structure by the NRHP on 3/8/84. 26 Financially Feasible Uses The subject is located in an area with the majority of properties are being acquired by investors for redevelopment or renovation of the existing improvement. The property is located in the downtown office core of the City of Miami and is accessible by city streets and the Metro Mover transit system in the downtown area. The property is in close proximity to the courthouse and government center as well as the Federal Courthouse. In addition, the property is located on the south side of Flagler Street, a major city core access. After considering the physically possible, legally permissible uses and the financially feasible, the highest and best use of the subject is estimated to be for some type of mixed -use development, which would be similar to the numerous projects recently completed and under construction in the downtown core area as well as to the south in the Brickell area of the City of Miami. Maximally Productive Use The maximally productive use is the use which is financially feasible and produces the highest rate of return to the land. The maximally productive use of the property, given the physical and legally permissible uses and financial criteria, is for a mixed - use development. HIGHEST AND BEST USE CONCLUSION Land as Vacant In conclusion, based on the four criteria for the estimation of the highest and best use, it is our opinion that the subject land would have the highest and best use for a mixed -use development. As Improved The subject property is improved with a l0-story building. The historical designation limits the development of the site. The existing structure cannot be demolished and thus the highest and best use is for continued mixed use as a theater, apartments with commercial/office space on the first floor. 27 THE APPROACH USED TO DETERMINE THE MARKET RENTAL RATES In order to arrive at the market rental rate value for the property's lst floor area, special attention must be given to the typical Lessee who might have an interest in a particular property. Market Rent is the most probable rental rate analysis which a property will bring, and this rental rate depends upon the typical purchaser's reaction to the various supply and demand factors that affect the market value. The Rental Rate Analysis Process is basically an economic analysis consisting of a review of the factors that affect market rent. The appraisal assignment is to estimate the potential lease rate of the subject lst floor area. The Cost and Income Approaches are not applicable in determining a lease rate for the lst floor area. The Rent Comparison Approach was considered as the most applicable method of valuation for the subject lst floor rental rate value. We will submit similar rental rate properties located within the City of Miami neighborhood. On the following pages, we will complete the rental rate comparison approach to value the subject 1st floor commercial/office space containing a total of 3,960 square feet. MARKET RENT ANALYSIS The sales comparison approach to determine the subject lst floor market rental rate is based upon the premise of current market rental rates and analyzing rental rates of similar properties. The principle of substitution is basic in this approach as it implies that a prudent person will not pay more for a property than would be required for an acceptable alternative available in the market. In applying the sales comparison approach, the following methodology is used: 1. Research the market to obtain information on rental rates within the subject neighborhood that are currently listed for rent. Next we will consider executed leases for similar space in the area. 2. Verify the information by confirming that the data obtained are factually accurate. 3. Utilizing a unit rental rate price allows us the opportunity to compare the subject lst floor area to similar leased properties and arrive at a market rent conclusion for the subject lst floor commercial/office space containing a total of 3,960 square feet. 28 We have conducted a search for active listings for rental rates within the immediate subject neighborhood. All the comparable rental rates are located in the surrounding neighborhood. A summary chart and map of the rental rates follows. The rental rate per square foot of a unit area is analyzed. Comparable Rental Rate Listing considering the rate price per square foot of unit area. RENTAL RATE/S.F. UNIT S.F UNIT AREA LR-1 $45 6,250 LR-2 $29.50 NNN 2,819 LR-3 $27 2,000 LR-4 $35 NNN 2,300 TO 5,230 LR-5 $35 2,750 TO 3,400 Subject 3,960 ADRESS 117 N.E. 1st Avenue 209 NE 1st St 140 E. Flagler Street. 22 E. Flagler St. & 8 W. Flagler St. 111 S.W. 3rd Street 174 E Flagler Street COMPARABLE RENTAL RATES LOCATION MAP -LISTINGS COMPARAI31.1 No. 1 117 NE 1.sC Aver Mlaml, FL 33132 0,13 miles gW 3rd s[ - NE eth St NE$Ihst a NL 47h &r de College 9. Church 3 NE lbl St ft W Flagler St van.nogh: i E. irnu emlue Fxp+rlcne, S1.67 l s151 COMPARABLE No, 5 111 5W 3rd St NlIami, Ft 33130 (I.37 miles ?n[I 51 nI51 COMPARABLE No. 2 249 NE 3st St Miami, FL 33132 0,09 mh es SUBJECT 174 E. Flagler St Miami, FL 33131 E:OMPAPAMl F Nrr_ n 144 E Flavrvr St Miami. FL 33131 0.04 rrdlec COMPARABLE No 4 22 E Flapier 51 & 8 W Flagler Miami, Ft 33131 0.17 miles ButiorIgarl e Wand ericke f Key 29 COMPARABLE RENTAL RATES TABLE OF LISTINGS DISCUSSION OF COMPARABLE LISTING RENTAL RATES LR-1 is located at 117 N.E. 1st Avenue, approximately 2 blocks NW of the subject property. The listing is located in the Security Building, a 17 story Class A office building. The building is listed on the US National Register of Historic Places, similar to the subject building. The building Class A office is superior to the subject Class B retail/office. The location of both properties is compatible. LR-2 is located at 209 N.E. 1st Street, approximately 2 blocks NW of the subject property. The listing is located in an older two- story building constructed in 1930. The building reflects a Class B retail/office similar to the subject The location of both properties is compatible. LR-3 is located at 140 E. Flagler Street, approximately 1 block West of the subject property. The listing is located in an older two-story building constructed in 1925. The building reflects a Class B office similar to the subject. The location of both properties is compatible. LR-4 is located at 22 E. Flagler Street and 8 W. Flagler Street, approximately 2 blocks W of the subject property. The listing is the former Burdines Department consisting of two tower structures. The East Tower is a 6-story structure, which contains 270,000 square feet of leasable area. The West Tower is a 5-story structure which contains 170,000 square feet of leasable area. The structures are oriented to retail/office use. The buildings are considered Class A retail/office and superior to the subject's Class B Office. The location of both properties is compatible. LR-5 is located at 251 SW 1st Court, approximately 7 blocks SW of the subject property. The listing is located in an 8-story, 27,912 square foot building, constructed in 1924. The site is known as McCormick Place. The building reflects Class B office space similar to the subject Class B retail/office space. The location of the listing is considered inferior to the subject location. Reconciliation -Listings The listings range from $27 to $45 per square foot of the leasable unit area. LR-1 and LR-4 are considered superior to the subject property. LR-5 has an inferior location when compared to the subject. LR-2 and LR-3 are most comparable to the subject property, and these indicated a range of $42.35 to $46.63 per square foot of building area. Finalized listings are generally less than asking. 30 u COMPARABLE No. 2 i 64 F Flagler 5F Miami, FL 33131 0.04 miles Miami rt.. COMPARABLE RENTAL RATES TABLE -ACTUAL LEASES Current comparable rental rates per square foot of the leasable unit area. RENTAL RATE/S.F. UNIT S.F UNIT AREA PARKING ADRESS CR-1 $30 + $6 CAM 1, 200 TO 4,000 $200/M 24-28 W. Flagler Street CR-2 $42.35 2558- to 6,250 on site 169 E. Flagler Street CR-3 $46.63 1,000-1,500 on site 169 E. Flagler Street. CR-4 $36 1,984 $100/M 33 S.W. 2nd Avenue CR-5 $22.50 NNN 2,500 on site 46 S.W. 1st Street Subject 3,960 174 E Flagler Street MCI LO.,1 9 lari da Dpgi11mur11 �l Chadian,8��raltlrbr 2 F RriSk •: vernn�erN Leri4c.i . Mi:rlln i Muwlim f utiPARABL E No, 5 i6SVY hLSL Miami, FL 33130 0.25 miles 02. lira aJl Si SW10h:,T COMPARABLE 33. STal 2 nd Aidp Mtani', FL331DO t5.4a ni W Fttgler St ch Slit lsTal_ CI.SEtstSt swmen so p t 4- SW Mal Si COMPARABLE Na_ 3 164 E Placger St ML tl-, FL 13131 0.04 rntles n CirJgi Trn_^ SE lrnl sE 2nd Si fiB]tECT 174 Eat nagier Street Miami. FL 3373? BwIt lame rsland Br�E t� Key iari 31 DISCUSSION OF COMPARABLE RENTAL RATES CR-1 is located at 24-28 W. Flagler Street, known as Courthouse Plaza, as it is across the street from the county courthouse. The rental unit is located in a 12-story, 85,090 square foot structure. The building was constructed in 1968. The building reflects Class B commercial/office space similar to the subject Class B office space. The location of the rental is considered inferior to the subject location. CR-2 and CR-3 are located at 169 E Flagler Street, known as Dupont Building. The rental unit is located in a 12-story, 85,090 square foot structure. The building was constructed in 1939. The building was placed on the U.S. National Register of Historical Places. The building reflects Class B commercial/office space similar to the subject Class B office space. The location of the rental is considered similar and is located across the street from the subject. CR-4 is located at 33 S.W. 2nd Avenue, known as 33 Downtown Offices. The rental unit is located in a 14-story, 96.855 square foot structure. The building was constructed in 1926. The building reflects Class B office space similar to the subject Class B commercial/office space. The location of the rental is considered comparable to the subject location. CR-5 is located at 46 S.W. 1st Street Flagler Street. The rental unit is located in a 4-story, 22,617 square foot structure. The building was constructed in 1962. The building reflects Class C commercial/office space which is inferior to the subject Class B office space. The location of the rental is considered inferior to the subject location. ADJUSTMENTS PROCESS In forming an opinion of the market rental rate for this parcel, consideration was given for potential adjustments for market conditions, location, unit size and access. A review of the rental comps did indicate a range of rental rates values for the subject parcel and a conclusion was derived from the review and analysis. The following is a synopsis of the sales data considered in my analysis. Overall, the market for properties in the City of Miami has been very strong over the past several years. All the rental rates reflect current conditions. 32 Location The subject property is located at 174 East Flagler Street in the City of Miami. All of the rentals are located within an immediate area as the subject with similar street frontage. The subject and rentals are located in the downtown Miami central business district. Although there are some variances for the different locations, all were considered to be very similar overall to the subject location. Unit Size The comparable rental rates range in size from 1,000 to 6,250 per unit. The subject 1st floor area falls within the comparable rental sizes as a whole with most of the individual spaces smaller in size. The comparable rental rates are considered to be comparable in size, with a unit sale price range from a low of $22.50 NNN to a high of $46.63 per square foot of leasable unit area. Analysis of size of each sale and the unit price per square foot does not support an adjustment for size, although the variance was considered in our review. Parking Some of the rentals had on -site parking lots and others had parking available as an extra charge. This was considered in our review, as the subject has no on -site parking. 33 CONCLUSION OF MARKET RENTAL RATES We have considered each of the listing and rental rates as they relate to the subject property four separate spaces. As noted, no adjustments were considered in our analysis, although variances did exist. The comparable rental rates reflect similar characteristics to the subject property. We considered the current rents, but these are on a month to month basis and appeared to be in the range of $22 to $25 per square foot. Therefore, we concluded that the opinion of the market rental rate to be as follows with the corner store at a higher rate with exposure to two streets and the other spaces more similar to each other. The following are the annual rental rates based on a per square foot basis. 166 E. Flagler Street 168 E Flagler Street 176 E. Flagler Street 8 SE 2nd Avenue 10 SE 2nd Avenue 20 SE 2nd Avenue 717 Square Feet x $36 = $ 25,812 508 Square Feet x $36 = $ 18,288 925 Square Feet x $40 = $ 37,000 368 Square Feet x $36 = $ 13,248 677 Square Feet x $36 = $ 24,372 765 Square Feet x $36 = $ 27,540 Total Market Rent-3,960 Square Feet $146,260 These rental rates would be based on a triple net basis. Our review did not provide us with any examples of percentage rents for this type of space. Percentage rents are more typical for restaurant properties and our research did not reveal any percentage rents associated with these types of spaces. 34 ADDENDUM AREA MAP .. MESCA�.R.: Dolpph% General Highway Map of NI !AM I -DAD E COUNTY FLORIDA 826o2 DOLPH NAP' M., aie, Nfld ud6E 41Cp3 36 NEAP( DOW- N MIAMI s1411140 WitfiNA GAINEI6 'JAM VIEST UTILE EWEN rah .951 U.% AIRPORT WI ST fOlureiimplin WESTCHESTER BLUE LAGOON FLACON MST Ala.! (ORAL TERRACE ▪ LUDLAM %WPM 7: Hgtg•FIS SUNSET 50,1fM PALE'S LAKE HEIM'S MST FLArGLIR CORAL OGLES ;". malillsHortl3. I1 1 i -• LITTLERIVER oElublEgra 1 / I i 1 NOUN fivii-E , LIAff ' : UPPER LEPACTI aTy - ' ErsT FIUME ,11iTilE HAITI"' : ., ! .1 SIDE • 1 • I BUENA I 11Pil IITSTA ••1 .1....1 IKLAypidNT i I I I:ESIC.571 , i DISIRKT_L-e... __.) _ULM MILLI 7.51ff 2, MIDT9IN r / LU ALLAPATTALI z •• . I.R 1 KENETWI .--. cIVIC I g ' 2 CENTER ..• R L DEMI I__Iti. 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Irt; a.errvn.n! all h9hU r.c.n^411. UPd.t.Thu. 6-14 w- di%sx lid ANefrat, NI an+.F.ale—r T.a. pre}w#frWW 4.P1 SAII5-2.56 2 I jj aral: 11mo, 8-lnr-ze19 40 MIAMI 21 ZONING CODE CONVERSION CHART 0 1 ' x c . ..z._ ...F-.1 t ' 1 il .7'.. ., „...._ ' ' . ..., t ' g ' .MIY •Inj /14#1%ArI1I, blic tiefi( t'..122 AO% Addr. Public Benefit la] 12/40%Addl. Public Benefit 1p,14D9fi Addl. Puboc eRnafit , L.' t •'' ._EME :,.3,_ E ;4 cc 7 . :. - I 1 '', 2 2 2 Ti Eliarfic Adat FUb11eEie nerd. ne'.25% Addl. Public Benefit 5 .t. 17.2,roarDaWie,15Q, 2 lItg 5 -11 T.. ..2K 2 w- . t.:.° * 4 •-• .< L'slw .i gig X. I X g.Pkt i t . X X fitl% Lat • MI: 517K Let ELT z Fkel 913% •P, Fta LiC 50%•( F-1412i0% LIPLI '11 COT Om 19 COL r1 II 1.6 it. iron 5C. ft ,n.n EE lelt. min SO 115t. WO 5CIft. 16 ft. rrilr„..50 ft. rrilrd Ott—nriln I EE.E.EEE .. c c EEEEEE E E IA .... - . • P Pi 61 3 --ii- g - .EEE EGE/3.1.4.- -§g08§§§§g§1 a g ..- crcidddd- tEdeg- .E cggg E WO (.kew gclmo, z .NeLiJ gEPUVW Z N: N --- --- EEzz I nie. (461. roax. (201 Cot] 'm3w g"ii,414 Z BL.1-1EIGF Wi B n--1,, . E. C (Jt4NN N N L. - 2 t . 1- g .2 I a' 1- , 2 - 1.23 ,.7 til ' TS' 1- . R, 1 :.!6 - Z , 6 1- _ i ! ' 0 :7' : V"' AEff:.1.9;: 1 - 1 ' I - L'r.' I- - El 0 _ , — .....,...4,4 I ....Li-- ,,:. - Kf K. lil9 -a .....• . i ..- ,-- ... , rri .1 ...-. ...) r P 0 N 41 MIAMI-DADE COUNTY AREA ALALYSIS Physical Features Miami -Dade County is located along the southern tip of the Florida peninsula and bounded by the Atlantic Ocean to the east and Everglades National Park to the west. Miami -Dade County is the largest county in the State and encompasses an area of 1,998 square miles including land and water. Miami -Dade County, Broward County and Palm Beach County are lst, 2nd, and 3rd most populous counties in Florida. They are called the "Gold Coast" and contain 6,137 square miles. Most of the development is clustered along the eastern coastal area radiating north, south, and west from the coastal hub. Miami -Dade County is flat with an average elevation being 12 feet and the highest elevation not exceeding 25 feet above sea level. The soil is generally shallow over a porous bedrock of limestone. The areas along the coastal ridge have sandy soil while the western area of the county is predominately made up of peat and muck. Climate Characteristics The climate is humid subtropical with an average annual temperature of 75.5 degrees; an average low temperature of 68.7 degrees; and an average high temperature of 87.6 degrees. The average annual probability of 72% and humidity of 84% and rainfall of 67.6 inches. Demographics Miami -Dade County is the most populous county in Florida with a population of 2,792,176 people as of 2021. Miami -Dade County is the 7th most populous county in the United States. There are 34 incorporated cities within the county. Housing units within Miami - Dade County totaled 1,097,924. The number of households in 2021 is 873,292 with 2.83 persons per household. The median household income was $43,129 per house in 2015. Employment The total employment in 2021 is 1,346,487. The most common occupations were: 32% management/professional, 30% sales/office, 18% service, 11% construction extraction, maintenance/repair, 9 % production, transportation, and material moving occupations. 81 % of the people employed were Private wage and salary workers, 12% Federal, state, or local government workers and 7% were self- employed. Hundreds of multi -national companies operate facilities in Greater Miami. Nearly one hundred Fortune 500 affiliates operate with Miami -Dade County. The region features thousands of small and median sized firms, reflecting a positive ongoing spirit of entrepreneurship. The largest employers are Miami -Dade County Public Schools, Metropolitan Miami -Dade County, Federal Government, 42 State of Florida, Publix Supermarkets, Inc., Jackson Memorial Hospital, University of Miami, etc. Education cities and municipalities. A truly global community, district students speak 56 different languages and represent 160 countries. Miami -Dade College, Barry, Miami, and Florida International Universities serve Miami Dade County. Health Care Health Care services are a major component of the economy. Miami - Dade County has a relatively high capacity to provide health care services with proportionally more positions and hospital beds than the majority of competitors. In addition to the hospitals there are many home/convalescence centers offering skilled nursing care. Economy Many indicators point toward the fact that Miami -Dade County's economy is flourishing. Construction of new home developments within the western part of the County has boosted the local economy. Also, Miami -Dade County's economic base of tourism, trade services, retail, banking, real estate, and manufacturing continue with increasingly international flavor to support the overall county's economy. The Port of Miami is the global gateway for a new era of commerce and tourism. Capital improvements in excess of $lbillion dollars are now completed. The Port of Miami is ready for the new generation of containerized cargo. The Port of Miami processed 113,835 Twenty - Foot Equivalent Units (TEUs) in January 2021, an increase of 21.02 percent from 04,064 TEUs processed in January 2020, the most active month ever recorded. The Port of Miami is also known world-wide as the "Cruise Capital of the World." Port of Miami is the global headquarters for five leading cruise lines consisting of 18 cruise brands and berthing 42 ships. More than 110 million overnight visitors in 2019 visited the Port of Miami. However, the cruise industry was closed during the 2020-2021 coronavirus. Port of Miami Florida East Coast Railroad connection offers the fastest access to Southeastern United States consumer markets and beyond 43 Transportation Miami International Airport is among the busiest airports in the world. There are over 100 airlines serving MIA to approximately 150 destinations around the globe. 44,584,603 passengers went thru the airport in 2019 and 2,220,733 tons of cargo also went thru the airport in 2019. Miami -Dade County contains 24 miles of metro rail solely in the county area. Tri-Rail provides service to thru Miami -Dade County with connections to Broward and Palm Beach Counties. The Florida East Coast Railway system provides cargo shipment out of the Port of Miami. All Aboard Florida is a new proposed rail serving Orlando Florida. Foreign Trade Zone (FTZ) FTZ allows businesses within the zone to receive, warehouse, and re-export products duty-free, thus reducing costs and helping businesses become more globally competitive. Thousands of businesses each year use foreign trade zones to coordinate foreign and domestic shipments. In addition to assisting U.S. companies improve their competitive position, the FTZ program allows U.S. based companies to defer, reduce or even eliminate customs duties on products admitted to the zone. Miami -Dade County is home to four Foreign Trade Zones, Port of Miami Foreign Trade Zone 281, Miami Free Zone, Homestead Foreign Trade Zone 166 and Greater Miami Foreign Trade Zone 32. Miami -Dade County represents the center of a highly active and unusual Customs District. On a per capita basis, the Miami -Customs District ranks near the top of all U.S. Customs Districts in international trade as measured by value. Miami -Dade County exports 1.5 times the value of imports. Miami -Dade County is commonly referred to as the "shopping cart of Americas" Warehouses serve as the principal suppliers of many industrial and consumer goods for the Caribbean, Central America, and parts of South America. Business A favorable tax structure as well as business incentive programs have helped encourage many companies and corporations to relocate or expand their operations to Miami -Dade County. Florida's as a "right to work" is an additional asset when recruiting or relocating labor to Miami -Dade County. Businesses and individuals pay no state personal income taxes. The state imposes a low corporate income tax, has no inventory tax, no unitary tax and provides several sales tax exemptions. Compared to other major metropolitan areas, Miami -Dade County has a competitive tax structure. Businesses located in Miami -Dade County also benefit from no corporate tax on franchise stock, as well as no state ad 44 valorem taxes on goods -in -transit. Foreign source dividends are also exempt from corporate income tax. In conclusion Miami -Dade County is still a major tourist destination accompanied by a growing international trade and global financial center. The future outlook is positive and major economic growth is high. Summary The growth of Miami -Dade County from one million in 1970 to over 2.7 million has caused two major concerns within the county area. They are the need of transportation infrastructure and the scarcity of affordable workforce housing. Miami -Dade Transportation Planning Organization board is committed to prioritizing and implementing the proposed Strategic Miami Area Rapid Transit (SMART) plan, which would expand the mass transit system by about 80 miles. The county commission is working with developers to implement well -located affordable workforce housing. Overall, Miami -Dade County and the City of Miami are moving in the right direction of addressing the current problems and is still a major destination city due to its climate, attractions, no personal income taxes, economic/business resources, etc. CITY OF MIAMI Miami is the youngest major city in the U.S. Miami and was started with the work of visionaries who predicted decades in advance what this land would become. Julia Tuttle arrived in Miami from Cleveland in 1891 owner of 640 acres of land. Other visionaries moved to Miami such as the Brickells, the Flaglers, the Merricks and the Fishers. Julia Tuttle pledged half her land to Henri Flagler in order to get him to extend his railway to Miami and start building a city from scratch. The first train reached Miami in 1896 soon after the new city was incorporated. In the 20's Miami was attracting the wealthiest people who were willing to be part of a great adventure. George Merrick, the legendary real estate developer created the first planned communities. Carl Fisher developed luxurious hotels and all the required playgrounds including polo and golf courses to please the rich residents. When Castro came to power in Cuba and wave of immigrants reached the shores, Miami's profile change. It is estimated that from the 60's to the 80's over a half million Cubans moved to Miami. With the mass movement of Latin's created Spanish community which was instrumental in transforming Miami into a truly international city. 45 Nowadays, Miami is a multicultural city that has a growing economy based mostly on the tourism industry. Miami's travel services like Miami concierge services are flourishing. Miami's attractions such the wonderful beaches, major basketball team, Seaquarium and MetroZoo. Another big part of Miami's economy is importing/exporting and warehousing. The city's proximity to South America and the Caribbean ensures this as well as the large number of airports and seaports. The commercial industry is also a major contributor to the growth of Miami. The schools and colleges in Miami provide countless jobs for the community. The colleges bring in thousands of new residents every year. The climate and temperature are also a major attraction for people who live in Miami. Overall, the City's economy is growing and a desirable place to call home. 46 QUALIFICATIONS OF APPRAISERS EDUCATION: PROFESSIONAL AFFILIATION: LICENSED: EXPERIENCE: QUALIFIED AS EXPERT WITNESS FOR: HAS COMPLETED: QUALIFICATIONS ROBERT D. MILLER, ASA Appraisal Institute Courses SSP Standards of Professional Practice I -A Fundamentals of Real Estate Appraisal I-B Capitalization Theory and Techniques 8 Appraising a Single -Family Residence 2-1 Case Studies in Real Estate Valuation 2-2 Report Writing Business Valuation Seminar Litigation Valuation Other Appraisal Courses Mass Appraisal of Residential Properties Florida State Law and USPAP Factory Built Housing Automated Valuation Models Senior Member of American Society of Appraisers - South Florida Chapter No. 82 — Accredited Senior Appraiser (ASA) Real Property Urban Certified General Real Estate Appraiser #0001270- State of Florida 1993-Present 1995-Present 1978-1993 1987 Vice President -The Urban Group, Inc. Owner Appraisal Firm Real Property Analysts, Inc., Fort Lauderdale, Florida, Executive Vice President Involved in United States Senate Study Right - of -Way Acquisition Procedures Condemnation proceeding in Broward, Miami -Dade, Monroe, Palm Beach and Duval Counties, Florida and Lake, Kankakee, Cook and DuPage Counties, Illinois. Testified in Bankruptcy Court in Florida and Texas and Federal Court in Miami, Florida Appraisal Assignments Commercial, vacant, and improved Condemnation projects Industrial, vacant, and improved Multi -family residential, Mobile Home Parks Office, vacant and improved Special purpose properties 48 Counseling Acquisition projects Income tax analysis Investment analysis Tax assessments ROW Cost Analysis Special assessments Review Services VARIOUS CLIENTS OVER THE PAST TEN YEARS GOVERNMENT PRIVATE ATTORNEY BROWARD COUNTY BROWARD COUNTY AVIATION DEPARTMENT BROWARD COUNTY SCHOOL BOARD CHARLOTTE COUNTY CITY OF BOYNTON BEACH CITY OF CORAL SPRINGS CITY OF DELRAY BEACH CITY OF FORT LAUDERDALE CITY OF FORT MYERS CITY OF HALLANDALE BEACH CITY OF HOLLYWOOD CITY OF LAUDERDALE LAKES CITY OF KEY WEST CITY OF MARGATE CITY OF MIAMI SPRINGS CITY OF NORTH LAUDERDALE CITY OF POMPANO BEACH CITY OF RIVIERA BEACH CITY OF SUNRISE CITY OF WEST PALM BEACH FEDERAL AVIATION ADMINISTRATION FLORIDA DEPARTMENT OF TRANSPORTATION PALM BEACH COUNTY PALM BEACH COUNTY SCHOOL BOARD SOUTH FLORIDA WATER MANAGEMENT TOWN OF DAVIE US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT ALTMAN DEVELOPMENT CORPORATION BELLSOUTH MOBILITY CLEAR CHANNEL OUTDOOR CLEVELAND CLINIC LENNAR HOMES THE TAUBMAN COMPANY SBA TOWERS INC. UNITED HOMES WAL-MART CORPORATION ACKERMAN SENTERFITT BECKER & POLIAKOPF TOBY BRIGHAM- BRUSCHI LP COKER AND FEINER BRIAN PATCHEN PA HOLLAND & KNIGHT GREENSPOON MARDER TEW CARDENAS GOREN CHEROF DOODY & EZROL PA WEISS-SEROTA-HELFMAN BLAKE APPRAISAL REPORT Olympia Theater 174 E Flagler St Miami, Miami -Dade County, FI 33131 PREPARED FOR Ms. Ashley McGregor Special Projects Assistant - Department of Real Estate and Asset Management City of Miami 444 SW 2 Avenue 3rd 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 January 9, 2024 Ms. Ashley McGregor Special Projects Assistant - Department of Real Estate and Asset Management City of Miami 444 SW 2 Avenue 3rd Floor Miami, FL 33130 Re: Olympia Theater 174 E Flagler St Miami, FI 33131 Dear Ms. McGregor: 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 ground floor retail space, in the area surrounding the subject. 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). Subject Value Date of Value Interest Appraised Value Type Olympia Theater "Vanilla Shell" 12/1/23 Fee Simple Estate Market Rent Briefly described, the subject consists of six average quality first floor retail units, containing a total SF of approximately 4,590 SF of net rentable area, constructed in 1925. Unit 20 is 765 SF, Unit 10 is 677 SF, Unit 8 is 368 SF, Unit 176 is 925 SF, Unit 168 is 508, and Unit 166 is 717 The units are 50% occupied, and do not come with any dedicated or reserved parking. The units are a part of a mixed/use improvement that includes the Olympia Theater, a theater that received a historic designation by the National Register of Historic Places in 1984. of the six units, three units have frontage along SE 2nd Avenue, two units have frontage along E Flagler Street, and unit 176 is a corner unit. The units located along E Flagler St have mezzanine level that is not considered to be usable. Most units are considered to be in poor condition with Unit 176 being the only one in average condition. We make a hypothetical condition that all units are in vanilla shell condition. 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). The appraisal is subject to the attached Assumptions and Limiting Conditions and Definition of Market Value. 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. Regional Offices: Atlanta j Boston I Chicago I Dallas I Los Angeles I Miami I Orlando I Phoenix I New York City I San Antonio San Francisco I Washington D.C. Blake & Sanyu Alliance: Tokyo I Osaka I Nagoya I Tohoku January 9, 2024 Ms. Ashley McGregor Page 2 of 2 Based on the analysis of pertinent physical and economic factors, we have arrived at the following value opinions: "Vanilla Shell" Value Opinion of Market Rent as of 12/01/2023 174 E Flagler St Units 20 SE 2nd Ave 765 SF $55/SF NNN $42,075/Year 10 SE 2nd Ave 677 SF $55/SF NNN $37,235/Year 8 SE 2nd Ave 368 SF $55/SF NNN $20,240/Year 176 E Flagler St 925 SF $65/SF NNN $60,125/Year 168 E Flagler St 508 SF $60/SF NNN $30,480/Year 166 E Flagler St 717 SF $60/SF NNN $43,020/Year EXTRAORDINARY ASSUMPTIONS This appraisal is not based on any extraordinary assumptions. HYPOTHETICAL CONDITIONS The concluded to market rent estimate in this market rent study is based on the hypothetical condition that as of the date of value, the subject's units are in vanilla shell condition. 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 Appraisal Report 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, MRICS Pablo Castaneda Managing Partner Associate Appraiser Florida -State -Certified General Real Estate Appraiser Florida -State -Registered Trainee Appraiser No. RZ426 No. R125120 Expires: November 30, 2024 Expires: November 30, 2024 tallen@josephjblake.com Olympia Theater 23-341-02 TABLE OF CONTENTS TITLE PAGE TRANSMITTAL LETTER EXECUTIVE SUMMARY 1 PHOTOGRAPHS OF THE SUBJECT 3 CERTIFICATION 6 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 8 INTENDED USER AND USE OF THE APPRAISAL 10 PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT 10 PURPOSE OF THE APPRAISAL AND PROPERTY RIGHTS APPRAISED 10 DEFINITION OF VALUE 10 SCOPE OF THE APPRAISAL 10 IDENTIFICATION OF THE PROPERTY 12 CURRENT USE OF THE SUBJECT 12 HISTORY OF THE SUBJECT 12 AREA ANALYSIS 13 NEIGHBORHOOD ANALYSIS 22 MARKET ANALYSIS 29 DESCRIPTION OF THE IMPROVEMENTS 40 ZONING 47 TAXES 48 HIGHEST AND BEST USE 50 ANALYSIS OF DATA AND CONCLUSIONS 52 RECONCILIATION AND FINAL VALUE 66 ADDENDA Total Gross Building Area Most Recent Deed Legal Description Zoning Information Flood Map Floor Plan Appraisal Engagement Contract Glossary of Terms Qualifications of the Appraisers JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING Olympia Theater 23-341-02 EXECUTIVE SUMMARY PROPERTY SUMMARY PROPERTY APPRAISED Olympia Theater PROPERTY ADDRESS 174 E Flagler St Miami, FI 33131 PARCEL/TAX ID 01-0112-010-1010 PROPERTY LOCATION The subject units are located on the ground level of the Olympia Theater located on the southwest corner of Flagler Street and SE 2nd Avenue. PURPOSE OF THE APPRAISAL Subject Value Date of Value Interest Appraised Value Type Olympia Theater "Vanilla Shell" 12/1/23 Fee Simple Estate Market Rent PERTINENT DATES DATE OF INSPECTION December 1, 2023 DATE OF REPORT January 9, 2024 DATE OF "VANILLA SHELL" VALUE December 1, 2023 HIGHEST AND BEST USE AS IMPROVED The current improvements AS IF VACANT Commercial development PROPERTY DATA IMPROVEMENT DATA Briefly described, the subject consists of six average quality first floor retail units, containing a total SF of approximately 4,590 SF of net rentable area, constructed in 1925. Unit 20 is 765 SF, Unit 10 is 677 SF, Unit 8 is 368 SF, Unit 176 is 925 SF, Unit 168 is 508, and Unit 166 is 717 The units are 50% occupied, and do not come with any dedicated or reserved parking. The units are a part of a mixed/use improvement that includes the Olympia Theater, a theater that received a historic designation by the National Register of Historic Places in 1984. of the six units, three units have frontage along SE 2nd Avenue, two units have frontage along E Flagler Street, and unit 176 is a corner unit. The units located along E Flagler St have mezzanine level that is not considered to be usable. Most units are considered to be in poor condition with Unit 176 being the only one in average condition. We make a hypothetical condition that all units are in vanilla shell condition. SITE DESCRIPTION The subject's site contains 21,477 SF or 0.49 acres of land. CURRENT USE As of the date of the rental value opinion(s), the subject was being used as storefront. For the purposes of this report, the subject is valued as storefront. ZONING "T6-80-0 (CBD)," Mixed -use under the jurisdiction of the City of Miami. CENSUS TRACT 12-086-0037.04 JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AHD CONSULTING 1 Olympia Theater 23-341-02 EXECUTIVE SUMMARY VALUE SUMMARY "Vanilla Shell" Value Opinion of Market Rent as of 12/01/2023 174 E Flagler St Units 20 SE 2nd Ave 10 SE 2nd Ave 8 SE 2nd Ave 176 E Flagler St 168 E Flagler St 166 E Flagler St 765 SF 677 SF 368 SF 925 SF 508 SF 717 SF $55/SF NNN $55/SF NNN $55/SF NNN $65/SF NNN $60/SF NNN $60/SF NNN $42,075/Year $37,235/Year $20,240/Year $60,125/Year $30,480/Year $43,020/Year JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 2 Olympia Theater 23-341-02 PHOTOGRAPHS OF THE SUBJECT Facing west along E Flagler St. Unit 166 entrance. Unit 168 entrance. Unit 166 interior. Unit 168 entrance. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 3 Olympia Theater 23-341-02 PHOTOGRAPHS OF THE SUBJECT Unit 168 interior. Unit 176 interior. Facing south along NE 2nd Ave. Facing north along NE 2"d Ave. Unit 8 entrance. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 4 Olympia Theater 23-341-02 PHOTOGRAPHS OF THE SUBJECT Unit 8 interior. Unit 10 interior. Unit 20 entrance. Unit 10 entrance. Unit 10 bathroom. Unit 20 interior. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 5 Olympia Theater 23-341-02 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, MRICS, has made a personal inspection of the property that is the subject of this report. Pablo Castaneda, has made a personal inspection of the property that is the subject of this report. • Pablo Castaneda, State -registered trainee real estate appraiser, assisted with the onsite inspection, research of the demographic and market trend data, writing of descriptive sections of this report, Highest and Best Use analysis, development of the approaches to value and final reconciliation. No other individual has provided significant real property appraisal assistance to the persons signing this certificate. • As of the date of this report, Ted Allen, MAI, MRICS has completed the continuing education program for Designated Members of the Appraisal Institute. • I, Ted Allen, MAI, the supervisory appraiser of a registered trainee appraiser who contributed to the development or communication of this appraisal, hereby accept full and complete responsibility for any work performed by the registered trainee named in this report as if it were my own work. • 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. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 6 Olympia Theater 23-341-02 CERTIFICATION • 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. BLAKE AND ASSOCIATES, INC. Ted Allen, MAI, MRICS Pablo Castaneda Managing Partner Associate Appraiser Florida -State -Certified General Real Estate Appraiser Florida -State -Registered Trainee Appraiser No. RZ426 No. R125120 Expires: November 30, 2024 Expires: November 30, 2024 tallen@josephjblake.com JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING Olympia Theater 23-341-02 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 8 Olympia Theater 23-341-02 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 The concluded to market rent estimate in this market rent study is based on the hypothetical condition that as of the date of value, the subject's units are in vanilla shell condition. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 9 Olympia Theater 23-341-02 INTRODUCTION INTENDED USER AND USE OF THE APPRAISAL The intended user of this appraisal is the client, City of Miami. We assume any affiliates, successors and assigns noted herein have the same intended use, knowledge and understanding as the original named client. The intended use of this appraisal is to assist the client with general analysis decisions. 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 January 9, 2024. The date of the inspection was December 1, 2023. This Appraisal Report, with its analyses, conclusions and final opinions of market value, is specifically applicable to the following date(s) of valuation: Subject Olympia Theater Subject Olympia Theater Value Date of Value "Vanilla Shell" 12/1/23 PURPOSE OF THE APPRAISAL AND PROPERTY RIGHTS APPRAISED Value "Vanilla Shell" Date of Value Interest Appraised 12/1/23 Fee Simple Estate Value Type Market Rent Value Market Rent DEFINITION OF VALUE Value Definition 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). SCOPE OF THE APPRAISAL Value Source Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) The scope of an appraisal assignment is relative to the intended use of the appraisal. The following outlines the extent of property inspection, market data collection, verification and analysis performed for this assignment. Inspection Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Pablo Castaneda, has made a personal inspection of the property that is the subject of this report. This inspection included the interior and exterior of the subject. The inspection was visual in nature, to assess the economic condition of the property, in order to effectively compare it to other properties in the market. We are not engineers, and we did not assess the property from the standpoint of its structural integrity, or to determine whether any latent defects (water leaks, plumbing or electrical problems, etc.) were present. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 10 Olympia Theater 23-341-02 INTRODUCTION Subject Physical and Economic Characteristics The types of information obtained and the sources providing such information are detailed in the following table. Information Sources Information Type Received? Source Total Gross Building Area Yes Owner Most Recent Deed Yes County Legal Description Yes County Zoning Information Yes City Flood Map Yes FEMA Floor Plan Yes Representative of Owner Appraisal Engagement Contract Yes Client Type of Analysis Applied The client has requested a market rent study be performed on the property. As such, the Cost, Sales Comparison Approach and Income Capitalization Approaches to value were not performed as a market value for the subject was not requested. It is noted that the market rent study is to result in specific conclusions regarding the market rent under the previously described scenario such as the units being in vanilla shell condition. Extent of Data Research General economic data and market data were reviewed. Comparable retail spaces were compiled from published sources including various reliable publications. Market data compiled for this report include a variety of rent comparables . These data are a result of research specific to the market and pertinent to the subject. The data were verified by 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 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, expenses, vacancy, etc., reflect our judgment based on interpretation of the market data. The reasoning behind such estimates is illustrated throughout each of the approaches to value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 11 Olympia Theater 23-341-02 INTRODUCTION IDENTIFICATION OF THE PROPERTY The property is commonly known as: Olympia Theater. The property address and tax parcel numbers as identified by the Miami -Dade County Property Appraiser/Tax Collector's Office are as follows: Subject Address City County State Zip Parcel ID/Tax ID 174 E Flagler St 174 E Flagler St Miami Miami -Dade FI 33131 01-0112-010-1010 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. Subject _ Year Built Net Rentable Area Zoning Code Zoning Description 20 SE 2nd Ave 1925 765 T6-80-0 (CBD) Mixed -use 10 SE 2nd Ave 1925 677 T6-80-0 (CBD) Mixed -use 8 SE 2nd Ave 1925 368 T6-80-0 (CBD) Mixed -use 176 E Flagler St 1925 925 T6-80-0 (CBD) Mixed -use 168 E Flagler St 1925 508 T6-80-0 (CBD) Mixed -use 166 E Flagler St 1925 717 T6-80-0 (CBD) Mixed -use Totals 3,960 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. Subject Current Use Appraised Use 174 E Flagler St Storefront Storefront HISTORY OF THE SUBJECT The subject consists of 6 retail spaces on the ground floor of the Olympia Theater building in Downtown Miami. The theater received a historic designation by the National Register of Historic Places in 1984. The building has been designated as an 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. There is currently a Flagler Street Beautification Project underway that is intended to transform downtown Miami's primary east -west artery back to its historic role as Miami's primary walking -shopping destination. The historic block, named after industrialist Henry Flagler, underwent one of its first major transformations in the 1920's, converting the area into an emerging metropolitan hotspot that not even the Great Depression could interrupt. The vibrant and booming waterfront district was filled with prime retailers and attractions such as the famous Burdines department store, among numerous movie theaters, restaurants, hotels, and iconic modern art -styled buildings. The subject's units frontage is currently undergoing construction and are on the tail end of the renovations being complete before the project moves to another section. When complete. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 12 Olympia Theater 23-341-02 AREA ANALYSIS AREA MAP YS3 arms Spriiigs FLAGA4II Gladevie.A Brownsville WYNWOOD ALLAPATTAN O. IIII ' LITTLeIHAVANA I!,—IIJI.._ MIAMI Dodge island .; Little Gables r;s7 Coral Gables r?.1- yGROVE rl CORAL WAY Miami M iE1.111i Beach Fisher Island Virginia Key Map data ©2^)23 Goggle 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 FI. 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 2023 populations with projections through 2028. The U.S. Bureau of Labor Statistics provided area unemployment trends. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 13 Olympia Theater 23-341-02 AREA ANALYSIS POPULATION Population within Miami -Dade County, FL is currently indicated at 2,733,765 and is expecting an increase to 2,772,490 within five years, an increase of approximately 1.42% over the five-year period, or 0.28% per year. Comparatively, the national population is projected to increase annually by 0.30% 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 2023 of 0.73% 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 2,77.2,490 2,733,765 -. 2010 2020 2023 2028 (Est.) Households are expected to follow a similar trend, with total households within Miami -Dade County, FL increasing from 989,193 in 2023 to 1,019,262 in 2028, with a current 2.73 persons per household. The national average household size in 2023 is 2.53. There were 867,352 households in 2010 and 967,414 households in 2020, indicating a long-term growth rate of 1.08% from 2010 to 2023. 1,050,000 1,000,000 950,000 900,000 850,000 800,000 750,000 867;352 HOUSEHOLDS 967,414 2010 2020 989,193 2023 1,019,262 2028 (Est.) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 14 Olympia Theater 23-341-02 AREA ANALYSIS The median age in Miami -Dade County, FL is currently indicated at 39.6 years, up from 2010, when the median age was 38.1 years. The population is expected to increase in 2028, with the median age projected as 40.2 years. The median age nationally in 2023 is 39.1. 41.5 41.0 40.5 40.0 39.5 39.0 38.5 38.0 37.5 37.0 36.5 MEDIAN AGE 41.0 38.1 2010 2020 39.•6 2023 411.2 2028 (Est.) 13.20% 14.40% 13.40% 13.60% 12.30% 5.80% 5.20% 4.80°° 2020 POPULATION BY AGE 2023 6.50% 12.00% 12.40% 14.70% 13.60% 11.60% 5.80% 5.40% 5.40% 2028 (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 15 Olympia Theater 23-341-02 AREA ANALYSIS POPULATION (25+) BY EDUCATION ■ Less than 9th Grade: 7.4% ■ 9th - 12th Grade, No Diploma: 7.3% ■ High School Graduate: 24.0% ■ GED/Alternative Credential: 2.8% ■ Some College, No Degree:13.1% ▪ Associate Degree: 10.6% Bachelor's Degree: 21.9% Graduate/Professional Degree: 13.0% INCOME Site To Do Business/ESRI reports current median household income at $60,992, which is forecasted to increase to $72,938 by 2028, an increase of 19.59%. Similarly, per capita income is expected to increase from its current level of $34,693 to $41,147 by 2028, an increase of 18.60%. In 2023, the national median household income is $72,603 and the national per capita income is $41,310. According to ESRI, Miami -Dade County, FL has a wealth index of 79, indicating less wealth when compared to the national average of 100. $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 HOUSEHOLD INCOME $60,992 $95,752 $72,938 $111,802 2023 2028 (Est.) ■ Median ■ Average JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 16 Olympia Theater 23-341-02 AREA ANALYSIS $42,000 $40,000 $38,000 $36,000 $34,000 $32,000 $30,000 PER CAPITA INCOME $34,693••• 2023 $41,147 2028 (Est.) 1,200,000 1,000,000 800,000 600,000 400,000 HOUSEHOLDS BY INCOME 8.90% 14.00% 12.50% 17.00% 11.80% • 2023 10.70% 16.20% 13.00% 16.60% 10.20% 7.00% 6.90% 10.40% 2028 (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 1,102,152 housing units, an increase of 2.56% from the 2020 census. Housing units are forecasted to grow to 1,138,745 units in 2028, indicating a growth rate of 3.32% over the five-year period. Owner -occupied units comprise the majority of the housing stock in the area. Current estimates indicate that approximately 45.4% of total housing units are owner -occupied, with 44.4% of units occupied by renters. The balance of the units, 10.2%, are vacant. In 2028, the mix is expected to shift to 44.9% owner -occupied units and 44.6% renter -occupied units. Nationally in 2023, 58.50% are owner -occupied, 31.70% are occupied by renters, and 9.80% are vacant. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 17 Olympia Theater 23-341-02 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 61, 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 2023 is 94, 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 39.9% of their household income on mortgage payments. Nationally, the percent of income used for a mortgage is 25.60%. 600,000 500,000 400,000 300,000 200,000 100,000 OWNER OCCUPIED HOUSING UNITS BY VALUE 18.20% 27.00% 6.70% 5.70% 4.00% 2023 25.10% 2028 (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 2023, the median home value is $405,073. It is expected to increase to $427,015 by 2028, indicating an annual home appreciation rate of 1.08%. The median home value nationally in 2023 is $308,943. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 18 Olympia Theater 23-341-02 AREA ANALYSIS $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 $405,073 HOME VALUE $505,812 $427,015 $536,748 2023 2028 (Est.) ■ Median ■ Average EMPLOYMENT Miami -Dade County, FL currently employs 1,430,093 workers according to Site To Do Business/ESRI. The U.S. Bureau of Labor Statistics currently reports unemployment at 1.5%, as of September 2023, which is lower than the long-term average of 5.2% since January 2013. Unemployment peaked in May 2020 at 12.0%. Year to date, unemployment has averaged 1.9%, down from last year's 2.6% average. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 7.6% 6.8% UNEMPLOYMEN 6.1% 5.6% 4.8% 3.7% 2.9% 8.4% 5.6% 2.6% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 19 Olympia Theater 23-341-02 AREA ANALYSIS EMPLOYED POPULATION (16+) BY INDUSTRY 3.6% 0.6% 4.6% 2.6% 1.7% ■ Agriculture/Mining: 0.6% ■ Construction: 8.5% ■ Manufacturing: 4.6% ■ Wholesale Trade: 2.6% ■ Retail Trade: 10.4% ■ Transportation/Utilities: 9.6% ■ Information: 1.7% Finance/Insurance/Real Estate: 8.3% ■ Services: 50.1% ■ Public Administration: 3.6% EMPLOYED POPULATION (16+) BY OCCUPATION 3.2% ■ White Collar: 59.8% ■ Management/Business/Financial: 18.1% ■ Professional: 19.7% ■ Sales: 10.6% ■ Administrative Support: 11.3% ■ Services: 18.7% ■ Blue Collar: 21.5% Farming/Forestry/Fishing: 0.3% ■ Construction/Extraction: 5.9% ■ Installation/Maintenance/Repair: 3.1% ■ Production: 3.2% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 20 Olympia Theater 23-341-02 AREA ANALYSIS 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% EMPLOYMENT/UNEMPLOYMENT BY AGE 10.0% 2.4% ■ 16-24 67.0% 1.4% 25 - 54 16.4% 6.6% 1.3% api 55 - 64 65+ �2023 Employed ■2023 Unemployed CONCLUSION Steady population growth, which will provide an ongoing source of demand for housing in the area, is expected to continue. The local economy is reasonably diversified and has maintained unemployment levels generally in -line with state and national averages. Over the long term, the outlook for the region is generally positive. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 21 Olympia Theater 23-341-02 NEIGHBORHOOD ANALYSIS NEIGHBORHOOD MAP ,Srh ,.. h St NW 6th St d}_ z * NWSthSt Z ` rs m t V :.i'1I S.. o N's': 3rd F. `l} 2 rn GOVERNMENT 3 ra a � CENTER i �;°a° .tst 0 __ h yac}ler St W Flagler_St= — ,1 -_ -SW T st.St=- = — 71 " r DOWNTOWN , SE2ndSt1-1,++- -`s LJI ---"MIAMI---. IJ a SEtiSi Google Tarniarni Tiail Br ckelliPoint SE 5ffist f �,� Brickell Key Map data ©2023 Gyre 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. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 22 Olympia Theater 23-341-02 NEIGHBORHOOD ANALYSIS LOCATION The subject units are located on the ground level of the Olympia Theater located on the southwest corner of Flagler Street and SE 2nd Avenue. Downtown Miami is an urban city center, based around the Central Business District of Miami. In addition to the central business district, the area also consists of the Brickell Financial District, Historic District, Government Center, Arts & Entertainment District and Park West. The neighborhood is divided by the Miami River and is bordered by Midtown (Edgewater and Wynwood) to the north, Biscayne Bay to the east, Civic Center and Overtown to the west, and Coconut Grove to the south. Brickell Avenue and Biscayne Boulevard are the main north —south roads, and Flagler Street is the main east — west road. The neighborhood is defined by the Miami Downtown Development Authority (DDA) as the 3.8- square-mile area east of Interstate 95 between the Rickenbacker Causeway to the south and Julia Tuttle Causeway to the north. Locally known as Downtown, the area is a cultural, financial, and commercial center of South Florida, tracing its present-day history back to the 19th century. In recent years, Downtown Miami has grown and physically expanded to become the fastest -growing area in Miami, with rapid increase in population and the greatest concentration of high-rises in the region. Greater Downtown is home to many major museums, parks, education centers, banks, company headquarters, courthouses, government offices, theaters, shops and many of the oldest buildings in the city. The subject is located approximately 3 blocks west of Bayfront Park. Bayfront Park is a 32-acre public, urban park in Downtown Miami on Biscayne Bay. The Bayfront Park Amphitheater has a seating capacity of 10,000 people. The Tina Hills Pavilion is an open-air pavilion with a seating capacity of 1,000 people. ACCESSIBILITY E Flagler Street is currently being redeveloped and is expected to be a two-lane roadway with concrete pavers, that extends east/west along the north boundary of the subject. SE 2nd Avenue is a two-lane, asphalt paved roadway that is for southbound traffic and extends north/south along the east boundary of the subject. The subject is located approximately 2 blocks northeast of the Miami Avenue Metromover Station and approximately 2 blocks southwest of the First Street Metromover Station. Metromover is a free mass transit automated people mover train system operated by Miami -Dade Transit. It serves the Downtown Miami, Brickell, Park West and Arts & Entertainment District neighborhoods. Metromover connects directly with Metrorail at Government Center and Brickell stations. The Metromover serves primarily as an alternative way to travel within the greater Downtown Miami neighborhoods. The system is composed of three loops and 21 stations. The stations are located approximately two blocks away from each other, and connect near all major buildings and places in the Downtown area. Metrorail is Miami's 22-mile elevated rapid transit system and contains 22 stations, plus a link to Miami International Airport, and which integrates with Metromover. The Metrorail and Metromover schedules are integrated into the many Metrobus routes covering all of Miami -Dade County. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 23 Olympia Theater 23-341-02 NEIGHBORHOOD ANALYSIS DEVELOPMENT There is currently a Flagler Street Beautification Project underway that is intended to transform downtown Miami's primary east -west artery back to its historic role as Miami's primary walking -shopping destination. The historic block, named after industrialist Henry Flagler, underwent one of its first major transformations in the 1920's, converting the area into an emerging metropolitan hotspot that not even the Great Depression could interrupt. The vibrant and booming waterfront district was filled with prime retailers and attractions such as the famous Burdines department store, among numerous movie theaters, restaurants, hotels, and iconic modern art -styled buildings. New residential buildings, restaurants, office spaces, a Bayside Marketplace around the corner, and residents migrating from the northeast, are just a few small wins for the district. The Phase 1 completion of the Flagler Street Beautification Project, undertaken by the Miami DDA, City of Miami, Flagler District BID, has also been a big step forward towards the revitalization of the neighborhood The plans include delivering an enhanced pedestrian experience with expanded sidewalks, greenery, seating areas, outdoor dining, and public art. Improved lighting and signage will also be included in the makeover towards resurgence. By providing opportunities to increase patrons, new businesses, and spurring economic growth, the Flagler District has endless possibilities of imminent success ahead to become a cultural and commercial destination. The City of Miami's Office of Capital Improvements, in partnership with the Flagler District BID and the Miami Downtown Development Authority (Miami DDA), is working to transform Flagler Street into an iconic, festival -style boulevard and enhance its operations and activities. The main objectives of this project are: • Create a festival street from Biscayne Boulevard to NW 1st Ave by raising the road to the same grade as the sidewalks, changing it to a curbless street, and adding pavers in the vehicular travel lanes. • Deliver an enriched pedestrian experience with expanded sidewalks, large shade trees, outdoor cafe dining, improved LED lighting, signage, public art, and seating • With new railroad crossing gates, allow for opportunities to close individual blocks to vehicular traffic for community gatherings, festivals, special events, outdoor concerts, and family evenings throughout the • Minimize on -street parking to maximize pedestrian space and Valet parking will be available, plus you will be able to park your car anywhere along the corridor and have it returned to you at your present location. • Upgrade existing drainage systems to prevent flooding. • Install new utilities — power, gas, fiber optics — to prepare for new vertical development. • Improve the quality of life through a safer and more attractive shared space providing opportunities to increase patronage to existing businesses, attract new businesses, spur economic growth, and make Flagler Street a Downtown Miami cultural and commercial destination once again. Construction is divided into five (5) sections to retain maximum construction activity. The estimated construction time for each phase is approximately eight months but this is subject to inclement weather, unknown underground utilities, and coordination with Florida Power & Light (FP&L) JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 24 Olympia Theater 23-341-02 NEIGHBORHOOD ANALYSIS The work will be performed simultaneously in some sections, and it will move forward from east to west, starting on Biscayne Boulevard: • Section A: Biscayne Boulevard to SE/NE 3rd Avenue • Section B: SE/NE 3rd Avenue to SE/NE 2nd Avenue • Section C: SE/NE 2nd Avenue to SE/NE 1st Avenue • Section D: SE/NE 1st Avenue to S/N Miami Avenue • Section E: S/N Miami Avenue to SW/NW 1st Avenue At the time of the property inspection, E Flagler was closed in front of the subject property. The project was originally envisioned in 2011 with a resolution passed in 2013 to go forward with the redevelopment. Most of the street and infrastructure work is complete. The lighting and decorative features and landscaping were being installed. There will be limited parallel parking along Flagler Street when the work is complete. The DDA envisions valet parking and the use of public transportation to bring visitors and customers to the area. Meanwhile, demand for living in downtown Miami is at an all-time high, with residential projects such as Yotel having sold 95 percent of its units before breaking ground, Paramount having sold 90 percent of its units before completion, and XMiami having leased 40 percent of its units before opening. The daytime population swells to over 250,000, due to the high concentration of commercial office space, government and judicial centers, retail districts, and Miami Dade College, the largest institution of higher education in the country. The number of full-time residents has surged, as young professionals and families move into the newly built towers. The current condominium projects offer pricing across the spectrum, from well below $500,000 to more than $9 million, which is the average unit pricing at One Thousand Museum Residences. This valuation reflects a maturing downtown that is attracting a wide range of buyer profiles. Downtown Miami remains a bargain compared to Miami Beach, and its pricing is aligned with Coral Gables and Aventura. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 25 Olympia Theater 23-341-02 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 Demographics 2023 1 mile 3 mile 5 mile 75,871 39,817 13,983 1.87 10,291 29,526 36.3 249,084 116,301 54,127 2.10 29,280 87,021 38.5 488,549 217,985 109,512 2.21 63,925 154,060 39.5 1 mile 3 mile 5 mile 4.2% 4.0% 3.7% 3.4% 6.8% 25.0% 19.2% 11.9% 9.2% 7.5% 3.9% 1.2% 5.0% 5.0% 4.8% 4.3% 6.1% 18.7% 16.4% 12.3% 10.8% 9.2% 5.4% 2.0% 5.0% 5.1% 5.0% 4.5% 5.8% 17.1% 15.7% 12.6% 11.6% 9.7% 5.8% 2.1% <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Median Household Income Average Household Income Per Capita Income 1 mile 11.30% 6.20% 5.10% 7.00% 13.50% 10.80% 18.50% 12.00% 15.50% $89,226 $130,405 $68,476 3 mile 15.70% 9.20% 7.70% 9.90% 15.10% 10.30% 13.40% 7.60% 11.10% $60,220 $101,865 $47,569 5 mile 16.50% 10.20% 8.30% 10.90% 15.30% 10.40% 11.80% 6.40% 10.20% $55,077 $95,421 $42,617 Source: Site To Do Business 2028 1 mile 3 mile 5 mile 91,370 281,636 522,102 48,432 134,971 238,255 17,381 62,616 119,432 1.86 2.05 2.17 11,515 31,207 66,740 36,918 103,764 171,514 36.3 38.8 40.2 1 mile 3 mile 5 mile 4.4% 5.2% 5.2% 3.6% 4.6% 4.7% 3.3% 4.6% 4.8% 3.5% 4.6% 4.7% 8.8% 7.1% 6.5% 23.8% 17.6% 15.8% 17.7% 15.9% 15.4% 12.4% 12.5% 12.8% 8.9% 10.4% 11.3% 7.6% 9.3% 10.0% 4.5% 5.9% 6.5% 1.5% 2.2% 2.4% 1 mile 3 mile 5 mile 9.80% 13.20% 14.10% 5.00% 7.20% 8.00% 4.70% 6.80% 7.20% 6.40% 8.60% 9.50% 12.80% 14.90% 15.20% 11.70% 11.50% 11.50% 19.70% 15.50% 14.10% 13.20% 9.50% 8.50% 16.80% 12.70% 11.90% $99,031 $73,335 $66,502 $143,269 $117,461 $111,540 $75,972 $56,282 $50,941 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 26 Olympia Theater 23-341-02 NEIGHBORHOOD ANALYSIS Trends: 2023 - 2028 Annual Rate 1 mile Radius Population Households Families Owner HHs Median Household Income 3 mile Radius Population Households Families Owner HHs Median Household Income 5 mile Radius Population Households Families Owner HHs Median Household Income Area State National 3.79% 0.63% 0.30% 4.00% 0.77% 0.49% 4.45% 0.74% 0.44% 2.27% 0.93% 0.66% 2.11% 3.34% 2.57% Area State National 2.49% 0.63% 0.30% 3.02% 0.77% 0.49% 2.96% 0.74% 0.44% 1.28% 0.93% 0.66% 4.02% 3.34% 2.57% Area State National 1.34% 0.63% 0.30% 1.79% 0.77% 0.49% 1.75% 0.74% 0.44% 0.87% 0.93% 0.66% 3.84% 3.34% 2.57% Source: Site To Do Business NEIGHBORHOOD/AREA COMPARISON Category 1 mile 3 mile 5 mile Area Median Household Income Average Household Income Per Capita Income Average Household Size Median Age $89,2261 $60,2201 $55,0771 $130,405 $101,865 $95,421 $68,476 $47,569 $42,617 1.87 2.10 2.21 36.31 38.5` 39.5 $60,992 $95,752 $34,693 2.73 39.6 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 27 Olympia Theater 23-341-02 NEIGHBORHOOD ANALYSIS Hialeah F 25ih S+ ;[M1 OL=. Rey.Chavez Distributor Miami Springs rlc ff'... r-,3,r1 9 r•LAGAMI Lit rest Miami terrace e Gables Cora University of M©iami • South Miami FT) Ponce -Davis Gables West Little River Gladev Miami Snores El Portal Morningsi Park stilute of Contemporary Art, Miami 19YNWO � 0 S:rds do Mark ISM 9 O1.3VIN T 2.1LH !MAUL North Bay Village dge island Fidler Island CCI RAL WAY L'J ViLcaya MJSealrt L I J &4;arderS ami Beach Miami Bea+ Botanical Garden 9(.1A) Miami Beacdl S SOU -•I OEAC.I T Kampong, Virginia Key atonal -n .pica) Bota 'cal-.. C'o qle — Fairckild Cra 'eolurie Memorial Reef9 Park Key Biscayne Keyboard shortcuts Map data 02023 Gceg a Terns Report a snap 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 The subject's area is approximately 95% built -out with a variety of retail, office, public use, civic, educational, and cultural buildings. There is limited land available for future development. The subject's neighborhood is in the revitalization stage of its development with numerous large-scale projects underway for existing property and any remaining vacant land. There has also been significant investment in the downtown neighborhood where existing buildings are being purchased for eventual redevelopment. NEIGHBORHOOD ANALYSIS CONCLUSION In conclusion, we researched many of the influences that could affect the value of properties in the area. This research showed that the neighborhood is being well maintained and does not illustrate factors that could be classified as negative or undesirable. The subject is in the heart of the major employment centers in Miami - Dade County. The new development that is currently taking place underscores the market's demand for residences, shopping venues and entertainment. The new construction is projected to result in a significant increase in the local population; the new population will likely result in additional demand for many property types. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AHD CONSULTING 28 Olympia Theater 23-341-02 MARKET ANALYSIS MARKET ANALYSIS The following information was compiled from published sources and is used in conjunction with primary and secondary data to analyze the market trends impacting the value of the subject property. MIAMI RETAIL MARKET Miami retail leasing activity has slowed over the last 12 months, with over 2.8 million SF leased as of the third quarter of 2023, down from peak levels of over 3.5 million SF leased as of the fourth quarter of 2021. Still, net absorption has remained positive over the last 13 quarters, helping drive the availability rate to lows of 3.7% as of the fourth quarter of 2023, well below the five year average availability rate of 4.5%. With tenant moveouts remaining below the five-year historical average and limited supply additions, space availability is expected to remain tight, well below the U.S. average over the next few years. The largest leases so far in 2023 have been signed by sport goods retailers, entertainment venues, home furnishing stores and pharmacies including Dick's Sporting Goods, Flying Squirrel Sports, At Home, Club Studio and Walgreens. Strong household and income growth has resulted in real household buying power growth of over 51% for Miami versus 38% for the U.S. average over the last decade. Additionally, the recent recovery in international immigration and travel continues to further bolster Miami resident and tourism spending. International immigration more than doubled in 2022 relative to 2021 and more than 4.6 million foreign citizens arrived in Miami Airports from January through September of this year, up over 10% relative to the same time period in 2022, but still 15% below 2019 peak figures. International travelers have begun to return en masse this year, which should continue to further bolster retail sales in the area. Demographic growth along with the return of tourists has resulted in gross real retail sales gains in Miami - Dade County, growing by over 10% in the rolling 12-month period through August 2023 versus December 2019 levels. Despite still elevated sales, real retail sales growth has slowed in recent months from peak annual growth of over 16% seen in the first quarter of 2022, contracting 1.5% in August of 2023, as inflation and higher interest rates weigh on consumer demand. As of August 2023, rolling 12-month retail sales growth has been strong for wholesale, grocery stores and restaurants, all seeing nominal sales growth of 9% or more relative to the 12-month period ended in August 2022. Elevated retail sales have helped drive strong rent gains for retail space in the area, with annual growth at 5.0%, though this has slowed from peak levels of 7.8% at the beginning of 2022. Despite some supply additions this year, with around 1.2 million SF expected to be delivered in 2023, in -line with ten-year average annual supply additions, Miami retail vacancies are expected to remain tight in the near -term, well below the national average vacancy rate. The bulk of new construction is concentrated in the Downtown Miami and Miami Beach submarkets which tend to attract new residents as well as tourists due to the area's entertainment and outdoor attractions. These new retail destinations should fare well as growth in international residents and tourists returns to pre -pandemic levels. Going forward, higher interest rates as well as elevated land values will weigh on developer activity in the market, with construction starts already slowing significantly this year. Limited supply additions in the coming years will help to bolster retail fundamentals further, despite slowing consumer spending. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 29 Olympia Theater 23-341-02 MARKET ANALYSIS Transaction volume has slowed, with just over $939 million in trades so far through the third quarter of 2023, well below the $1.9 billion traded in the first three quarters of 2022 and below the ten-year average of over $1.1 billion over the same time period. Despite strong fundamentals of tight vacancies and healthy rent gains, higher interest rates, which are driving cap rates higher, are resulting in a drop in pricing. Weighted average transaction pricing over the last 12 months has contracted over 9% relative to the 12-month period ending in the third quarter of 2022. Annual transaction cap rates have risen slightly relative to one year ago to 5.7%, though these have moved higher in recent months with average quarterly cap rates increasing to over 6% in the third quarter. Additionally, transaction sizes have shrunk as institutional players remain less active, with the average transaction in 2023 totaling $4.2 million, down from $5.3 million in 2022. The size of properties traded has also shrunk, with the average rentable building area of traded properties falling from around 12,000 SF in 2022 to 10,000 SF in 2023. Looking forward, Miami retail vacancies are expected to remain tight in the near -term, well below the national average vacancy rate. In fact, the Miami retail vacancy rate is the lowest across Florida markets with over 50 million SF in retail inventory. Continued healthy fundamentals and an eventual loosening of financial conditions should help attract investment in the future. KEY IN[IIC:ATGRs Current Quarter RB Vacancy Fate Market Rent Availability Rake Net Ab rrticn Deliveries SF sF Malls 16,211,782 3.1% 353.32 3.3% [33,546j 0 260,400 Ccinst i i ticn Power Center 3,365,970 3.6% S46.01 37% 110,855 10,648 0 Nei.hborhoodCenter 36,787,945 33% $40.11 4_3% 02,349) 0 179,300 Strip Center 13,392,752 2.1% $39.88 3.1% 41,053 6,119 15,638 General Retail 73,705,891 2.6% $46.68 3.6% 212,456 82,670 1,056,433 Other 206,296 Gib S30.85 0°ro - 0 0 0 Market 145,674,636 2.8% $45.20 3.79,s 318,469 99.437 1,591.371 Annual Trends 12 Month Peak Forecast Peak When Trough When Average Average Vacancy Change (YOY) -0.1 % 38% 3 0% 5.2% 2006 03 2.8% 2023 Q4 Net Absorption SF 1.4M 1,409,386 569,355 4,336,652 2007 Q3 47,941 2019 Q2 Deliveries SF -1.5M 1,593,5135 882,831 3,991,537 2009 01 396,311 2011 Q2 Rent Growth 5.0% 3.1% 2.7% $_0% 290701 -4.5% 2009 03 Sales Volume $1.3B 5'.26 N(A S3.2B 202203 231.7h1 200904 Leasing Annual net absorption remains healthy, with 1.9 million SF absorbed as of the third quarter of 2023, remaining above the 5-year average annual absorption figure of 1.3 million SF. That said, this is down from peak net absorption of over 2.6 million SF in the first quarter of 2022. The limited availability of existing space continues to hold back absorption gains until new product is delivered, with 5.5 million SF currently available, down from an average of 6.6 million SF over the last five years. Limited space availability, coupled with slowing immigration and job growth which are coming off elevated levels, are resulting in a normalization in demand. Despite this slowdown, vacancies are expected to rise only slightly in the near -term as new supply delivers, though it should come back down in the face of healthy demand running into limited supply post 2024. Vacancies are expected to expand by only 50 basis points to just over 3.5% through the first half of 2024, as the bulk of the over 1.3 million SF in expected supply additions that year begin to deliver. Above market average vacancy expansion is forecast to be concentrated in the Northeast Dade, Miami -Dade Central County, Downtown Miami, Coral Way, South Dade and Miami Beach Submarkets as these represent over 90% of supply underway in the market. On the flip side, vacancies are forecast to barely budge or contract in Miami Lakes, Brickell, Miami Airport and Miami Submarkets, which have limited new inventory underway. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 30 Olympia Theater 23-341-02 MARKET ANALYSIS Despite having the largest supply pipeline across all Florida markets, Miami's retail vacancy rate is the lowest across Florida markets with over 50 million SF in retail inventory. As absorption is expected to keep pace with inventory additions, Miami should maintain tighter vacancies compared to Jacksonville, Sarasota and Orlando over the two-year forecast period. Rents At around $45.00/SF as of the fourth quarter of 2023, Miami has the highest retail rents across all Florida markets, followed by Palm Beach and Fort Lauderdale. After over a year of above average rent hikes, rent growth has slowed to 5.0% in the fourth quarter of 2023, the lowest reading since the third quarter of 2021, but inline with the 5 year historical average growth of 4.4%. Rent growth outperformance in 2021 and 2022 has resulted in a widening rent premium relative to U.S. average asking rents from around 1.7 times higher in 2020 to over 1.8 times higher today. Neighborhood, strip centers and other retail subtypes have driven this rent growth outperformance with rent gains exceeding 19% since the end of 2020. Rent growth for these centers has moderated in 2023, yet these continue to outperform with gains exceeding 4%, above the Miami market average rent growth. The limited supply of well -located retail space, due to positive net absorption over the last 11 quarters, coupled with the market's land constraints, will continue to bolster fundamentals for these market segments. Most submarkets in Miami have achieved year -over -year rent growth of over 4% over the past year, with the exception of some of the most expensive submarkets in terms of rent per SF including Brickell, Miami Beach, Coral Gables, Aventura, Coral Way, and Coconut Grove. The highest average rents are in Miami Beach, home of the upscale Bal Harbour Shops and Lincoln Road shopping strip. The Submarkets of Miami Beach, Brickell, Coconut Grove, the Wynwood-Design District and Aventura are posting elevated asking rents well above $50/SF as well. Brickell, which has the second highest asking rents in the market, is beginning to show a contraction in rent gains, along with Downtown Miami, which has seen a contraction in demand over the last twelve months. This slowdown, specifically in high asking rent Submarkets, is indicative of the tenant churn that will continue to impact the most expensive areas in the market as high rents impact the bottom lines of some businesses. The recent expansion into the market from many national players as well as restaurants and retailers from markets like New York have resulted in these high asking rents in select submarkets. For example, New York -based Major Food Group has opened at least five different restaurants in Miami during the pandemic as part of its global expansion, including Carbone, Sadelle's, HaSalon, Dirty French Steakhouse and ZZ's Club. All of these restaurants are concentrated in the Miami Beach, Coconut Grove, Brickell and Wynwood-Design District Submarkets. Due to the limited number of new deliveries in the last 12 months and tight availabilities, the fastest pace of rent growth has occurred in the submarkets of Miami Gardens/Opa Locka, Outlying Miami -Dade County, South Dade and West Miami. These submarkets have the ability to continue to push rents somewhat as these have some of the lowest asking rents in the Miami market. Local businesses, that can no longer afford to locate within higher rent Submarkets in the urban area, will likely continue to expand into these lower cost areas while at the same time trying to remain close to their main client base. Tenants looking for large swathes of space face limited options and elevated asking rents, which range from $30/SF to over $75/SF for spaces greater than 20,000 SF, largely depending on location. Higher asking rents tend to concentrate in more urban areas such as Wynwood and the Miami Airport Submarket. Rents for smaller spaces also vary widely based on location, with asking rents in Miami Beach and Wynwood as high as $120/SF to $200/SF, while asking rents in West Miami and South Dade stand between $20/SF and $30/SF. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 31 Olympia Theater 23-341-02 MARKET ANALYSIS Construction Miami's retail construction pipeline remains active, although there has been a notable drop in construction starts in the last two years. That said, there is currently around 1.5 million SF of new retail space underway, and around 1.4 million SF has delivered in the last 12 months. While under construction totals have come off of elevated levels seen in 2021 and 2022, around half of under construction SF is expected to deliver in 2023. This will result in the second highest year for supply additions over the last five years, after 1.4 million SF delivered in 2020. 2024 deliveries are expected to rise even higher, though supply additions should slow well below long-term averages thereafter. So far, healthy demand in 2023 has been sufficient to maintain vacancy rates at historic lows of 2.8%, as the majority of new supply additions have seen healthy lease -up. Still, additional supply in the first half of 2024, coupled with softer demand, will likely result in a vacancy expansion which should see rates rise to their long- term historical average level of around 3.5%. That said, the 1.4 million SF of net absorption in 2022 exceeded the pace of new deliveries that year, and 2023 absorption has so far surprised to the upside, indicating there may be additional runway for new projects in growing areas. Retail development has pushed northward and southward towards Northeast Dade and South Dade respectively, where combined retail inventory has grown by more than 1.7 million SF in the past five years. The Coral Gables and Miami submarkets have also seen a significant amount of development with combined inventory growth of over 1.1 million SF over the same time period. The bulk of new construction is concentrated in the Downtown Miami, Miami Beach, Northeast Dade and South Dade Submarkets, representing over 80% of supply underway. Large scale retail development has ramped up in the last few years, with ten properties of more than 100,000 SF delivering since 2021. So far 2023 has seen three such deliveries, with the largest being the Shoppes at Highland, a Power Center with 250,000 SF available for lease. Two other large deliveries include the Esplanade at Aventura and the retail component of the mixed -use Plaza Coral Gables, which are almost fully leased. Among all projects underway, a majority are composed of properties smaller than 75,000 SF. There are five properties underway that are larger than 100,000 SF spread out across several submarkets. These include 300,000 SF at the mixed -use Miami World Center in Downtown Miami, 250,000 SF at the mixed -use Block 55 apartments at Sawyers Walk also in Downtown Miami, and 250,000 SF for the expansion at the high fashion shopping center of the Bal Harbour Shops. These projects have also seen healthy pre -leasing demand. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 32 Olympia Theater 23-341-02 MARKET ANALYSIS Submarkets The subject units are located in the Downtown Miami submarket. SUBMARKET INVENTORY No. Submarket Inventory .Bldgs SF (QIO) % Market 12 Month Deliveries Rank Blrigs SF IOW Percent 1 2 Aventura 139 6,055 4.2% 9 1 215 3.6% 0% 0% 0.2%. Biscayne Corridor 238 1,988 1.4% 17 0 0 3 Brickell 74 2,161 1.5% 16 0 0 4 Coconut Grove 155 1,821 1.2% 18 2 4 5 Cori Gables 396 5,108 3.5% 11 2 251 4.9% 6 Ccraf Way 353 2,725 1.9% 15 0 11 0% 7 Downtown Miami 155 4,125 2.8% 12 0 0 0% 8 Hialeah 1,009 13,029 8.9% 5 6 64 0.5% 9 Kendall 1,047 22,769 15.69E 5 71 0.3% 10 Miami 2,205 12,908 8.8% 6 1 1 0% 11 Miami Airport 689 13,854 9.5% 4 12 188 1.4% 12 Miami Beach 648 9,548 6.5% 7 2 7 0.1% 13 Miami Gardens/Opa Locka 505 3,953 2.7% 14 2 25 0.6% 14 Miami Lakes 211 5,296 3_6% 10 6 184 3.5% 15 Northeast Dade 1,235 14,242 9.8% 2 5 42 0.3% 0.3% 2.8% 0% 0.3% 16 Outlying Miami -Dade Cnty 49 829 0.6% 19 1 3 17 South Dade 930 1 13,991 9.6% 3 9 387 18 West Miami 674 I 7,368 5.1% 8 1 0 19 Wynwood-Design District 375 I 4,108 2.8% 13 3 14 SUBMARKET RENT Rank 3 12 2 7 6 14 4 11 9 5 8 13 1 15 10 BIdgs 0 UnderConstntction SF INO) Percent Rank n 1 7 6 172 0.4% 10 0.1% 1'I 6.3% 3 14.7% 1 0% 13 0% 12 0.2% 6 18 0.1% 8 24 4 147 9 No, Submarket Market Rent PerSF Rank 12 Month Market Rent UT© Annualized Market Rent Growth Rank Growth Rank 1 Aventura 1 $56.86 5 ' 3.5% 15 2.3% 7 2 Biscayne Corridor 545.03 8 6.7% 5 0.8% 14 3 Mickel! 573.41 2 1.3% 19 3.0% 2 4 Coconut Grove 561.78 4 4.3% 13 2.6% 5 5 Cori Gables 550.92 6 3.1% 16 3.7% 6 Carl Way $44.61 9 4.2% 14 2.3% 8 7 Downtown Miami $39.31 13 1.6% 18 2.8% 3 8 Hialeah 534.91 16 5.7% 9 1.1% 13 9 Kendall $45_89 7 4.5% 12 1.9% 9 10 Miami 533.34 18 6.3% 6 -0_2% 19 11 Miami Airport $44.12 10 5.4% 11 1.7% 11 12 Miami Beach $88.63 kw. 1 - - 19 2.8% 17 2.5% 6 13 Miami GardenslOpa Locka $31.65 8.2% 2 0.2% 17 14 15 Miami Lakes 534.90 17 5.5% 10 1.4% 12 Northeast Dade $36.45 14 6..7% 4 0.6% 15 16 Outlying Miami -Dade Cnly S39_74 12 3_9% 2.7% 4 17 South Dade 535.56 15 8.1% 3 1.8% 10 18 West Miami 542.55 11 5.7% 8 0.1% 18 19 Wynwood-Design District $68.06 3 6.1% 7 0.5% 16 JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 33 Olympia Theater 23-341-02 MARKET ANALYSIS SUB114RKET VACANCY & NET ABSORPTION No. Subm rket sr Vacancy Percent Rank SF 12 Month Absarpt ion %ofinv Rank Construe. Ratio 1 2 3 4 Aventura 119,270 2.0% 9 t 170,361 2.8°% 6 11 1.3 - Biscayne Corridor 47,522 2.4% 12 15,011 0.8% Brickel 93,741 4.3% 16 28,026 1.3% 8 - Coconut Grove 43,258 2.4% 11 15,687 0.9% 10 BA 5 Coral Gables 51,609 1.0% 3 284,738 5.6% 3 0.6 6 Coral Way 23,213 0.9% 20,489 0.8% 9 - 7 Downtown Miami 602,120 14.6% 19 (51,217) -1.2% 17 - 8 Hialeah 144,213 1.1% 4 68,605 0.5% 7 0.9 9 Kendall 651,136 2.9% 14 225,684 1.0% 4 0.3 10 Miami 325,133 2.5% 13 (313,206) -0.3% 16 - 11 Miami Airport 441,015 3_2% 15 290,828 2.1 % 2 0.6 12 Miami Beach 588,287 6_2% 17 (124,893) -1 3% 19 - 13 Miami Gardens&Opa Locka 80,285 2.0% 10 12,547 0.3% 13 2.0 14 Miami Lakes 82,399 1.6% 7 197,647 3.7% 5 0.9 15 Northeast Dade 234,544 1.6% 8 (6,316) 0% 15 - 16 Outlying Miami -Dade Cnty 8,373 1.0% 2 (3,273) -0.4©% 14 - 17 South Dade 207,307 1.5% 6 396,531 2.8% 1.0 18 West Miami 81,799 1_1% 5 14,262 0.2% 12 - 19 Wynwoad-Design District 289,967 7_1% 18 {85.797) -2.1% 18 - JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 34 Olympia Theater 23-341-02 MARKET ANALYSIS Submarkets The subject is located in the Downtown Miami submarket. Vacancy in the Downtown Miami retail submarket is 14.6% and has increased 1.2% over the past 12 months. During this period, there has been 51,000 SF of negative absorption, and 2,400 SF has been removed from inventory. Within this submarket, General Retail is the largest subtype, with 3.0 million SF in this category. Rents are around $39.00/SF, which is a 1.6% increase from where they were a year ago. In the past three years, rents have increased a cumulative 3.7%. About 610,000 SF is under construction, representing a 14.7% expansion of inventory. In the past year, 2 sales have taken place. Over the past three years, there have been 16 sales, which have traded for approximately $88.4 million. During this time, the market cap rate for Downtown Miami has remained at 5.4%. KEY INDICATORS Current Quarter Malls Power Center n Under RBA Vacancy Rate Market Rent Availability date Net Deliveries �vo Deliveries SF Construction 523.037 13.0% $37.41 0*. 0 4 0 Neighborhood Center 0 0 4 0 565,000 64.8% $35.18 64.8% 0 4 0 Ship Center 27,112 0% $37.97 4% 0 0 0 General Retail 3,010,336 5.6% $4024 3.9% 7,383 0 606,078 Other 0 - 0 0 5ttlbraI1 et 4,125,485 14.6% $39,31 10.8°0 7.383 0 686,078 Annual Trends Vacancy Change (YOY) Net Absorption SF 12 Month Historical Forecast PEA* Allan Trough When Average Average 1.2% 10.3% 14.5% 17.9% 2019 02 3.6% 2006 03 (51.2K) 12,413 110,616 493,229 2020 02 (201.805) 2017 Q2 Deliveries SF 44,137 136,931 416,000 2020 Q2 0 2023 03 Rent Growth 1.6% 1.9% 1.9% 8.2% 2007 Q1 -7 2009 Q1 Sales Volume $5.3M $35M NIA $280.5M 2015 02 80 2017 04 NET ABSORPTION. NET EEL[VERIES & VACANCY Absorption 8 Deliveries it Thousands SF 700 600 500 400 300 200 100 0 - 100 - 200 300 1, 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2018 2019 2020 2021 2022 2023 1 i 1 1 1 l 1 1 2024 2025 Net Absorption • Net Deliveries • Vacancy I 1 I 2026 Miami Vacancy 2027 20% 18ia 16% 14% 7 12/{{a 10% 0. p / 6% 4% 2% JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 35 Olympia Theater 23-341-02 MARKET ANALYSIS MARKET RENT GROWTH (YOY) 4% 2% 0% -2% -4% -6% 2018 2019 1 2020 2021 2022 1 2023 2024 11 2025 2026 2027 a Mall q Neighborhood Center Strip Center 11 General Retail S Downtown Miami • Miami MARKET RENT PER SQUARE FEET 550 S48 546 S44 S42 $40 S38 536 $34 632 Forecast Mall ■ Neighborhood Center Strip Center • General Retail ■ Downtown Miami ■ Miami JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 36 Olympia Theater 23-341-02 MARKET ANALYSIS DELIVERIES & DEMOLITIONS 6DO 500 400 300 200 100 0 Forecast 1 00 l 1 11 l l 1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 L I I VU 2018 2019 2020 2021 2022 1 2023 2024 2025 2026 2027 111 Deliveries • Demolished • Net Deliveries Summary The subject is a group of retail units on the ground floor of the Olympia Theater building in the Downtown Miami submarket. The submarket contains approximately 4.1 million SF, with a vacancy rate of 14.60%. That level of vacancy is higher than the general retail vacancy rate in the county, overall, which is 2.80%. The market rental rate for retail space in the submarket is currently $37.16/SF on a triple net basis, with general retail at $39.31/SF. A substantial amount of new retail space is expected to deliver in 2024 mainly first floor retail units in large scale residential buildings. Vacancy has increased approximately 1.2% year over year and is projected to remain around 14% for the foreseeable future, with general retail peaking at 5.5% before dropping back toward 4.4%. Rental rates have increased by approximately 1.6% year to date, with modest growth projected to continue in 2024; general retail is following similar trends. Even considering the amount of new product expected to reach the market in 2024, new residential development should increase demand for retail product over the long-term. The subject is well positioned in the submarket to take advantage of the redevelopment occurring in the coming decade. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 37 Olympia Theater 23-341-02 DESCRIPTION OF THE SITE SITE DETAILS ADDRESS 174 E Flagler St, Miami, Miami -Dade County, FI 33131 PARCEL NUMBER 01-0112-010-1010 LEGAL DESCRIPTION See addenda LOCATION The subject units are located on the ground level of the Olympia Theater located on the southwest corner of Flagler Street and SE 2nd Avenue. LOCATION TYPE CBD MAP LATITUDE/LONGITUDE 25.7738188/-80.1905578 CENSUS TRACT 12-086-0037.04 ZONING The parcel is zoned "T6-80-0 (CBD)," under the jurisdiction of the City of Miami. PRIMARY FRONTAGE STREET E Flagler Street PRIMARY FRONTAGE COMMENTS E Flagler Street is currently being redeveloped and is expected to be a two-lane roadway with concrete pavers, that extends east/west along the north boundary of the subject. SECONDARY FRONTAGE STREET SE 2nd Avenue SECONDARY FRONTAGE COMMENTS SE 2nd Avenue is a two-lane, asphalt paved roadway that is for southbound traffic and extends north/south along the east boundary of the subject. ADJACENT PROPERTIES - NORTH Office ADJACENT PROPERTIES - SOUTH Multi -family Residential ADJACENT PROPERTIES - WEST Retail Building ADJACENT PROPERTIES - EAST Office Building VIEW City STREET CONDITION Paved with asphalt SIDEWALKS Yes CURBS AND GUTTERS Yes LANDSCAPING The subject's landscaping is minimal. TOPOGRAPHY The subject's topography is level and at street grade. SHAPE The subject site is rectangular. REQUIRED SITE WORK Typical Clear and Grade FLOOD ZONE The site lies within Zone X (unshaded). This information was obtained from the National Flood Insurance Rate Map Number 12086C0314L dated September 11, 2009. FLOOD ZONE DEFINITION Area of minimal flood hazard, usually depicted on FIRMs as above the 500-year flood level. In communities that participate in the NFIP, flood insurance is available to all property owners and renters in this zone. ENCUMBRANCES AND EASEMENTS There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. ENVIRONMENTAL HAZARDS There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assumptions. WETLANDS AND WATERSHEDS No wetlands were observed during our site inspection. JOSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AHD CONSULTING 38 Olympia Theater 23-341-02 DESCRIPTION OF THE SITE AERIAL PHOTOGRAPH Imagery ':2C23Cr•JES.'Airbus, MaxarTechnologies, Sanborn, U.S.Geological Survey JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 39 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS Building Summary Subject 20 SE 2nd Ave 10 SE 2nd Ave 8 SE 2nd Ave 176 E Flagler St 168 E Flagler St 166 E Flagler St Marshall Valuation Service Building Quality Average Average Average Average Average Average Condition Poor Poor Poor Poor Poor Poor Totals Number of Floors/Stories 1 1 1 1 1 1 Gross Building Area 765 677 368 925 508 717 Net Rentable Area 765 677 368 925 508 717 Current Occupancy 100.00% 100.00% 100.00% 3,960 3,960 3 GENERAL DETAILS DESCRIPTION Briefly described, the subject consists of six average quality first floor retail units, containing a total SF of approximately 4,590 SF of net rentable area, constructed in 1925. Unit 20 is 765 SF, Unit 10 is 677 SF, Unit 8 is 368 SF, Unit 176 is 925 SF, Unit 168 is 508, and Unit 166 is 717 The units are 50% occupied, and do not come with any dedicated or reserved parking. The units are a part of a mixed/use improvement that includes the Olympia Theater, a theater that received a historic designation by the National Register of Historic Places in 1984. of the six units, three units have frontage along SE 2nd Avenue, two units have frontage along E Flagler Street, and unit 176 is a corner unit. The units located along E Flagler St have mezzanine level that is not considered to be usable. Most units are considered to be in poor condition with Unit 176 being the only one in average condition. We make a hypothetical condition that all units are in vanilla shell condition. MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY BUILDING CLASS C CONDITION Poor YEAR BUILT 1925 CONSTRUCTION TYPE Steel Frame and Masonry Construction CURRENT OCCUPANCY 59% PARKING TYPE None NUMBER OF BUILDINGS 6 20 SE 2ND AVE DETAILS BUILDING NAME BUILDING DESCRIPTION BUILDING CLASS CONDITION YEAR BUILT GROSS BUILDING AREA NET RENTABLE AREA BUILDING EFFICIENCY RATIO CURRENT OCCUPANCY 20 SE 2nd Ave Retail Stores C Poor 1925 765 SF 765 SF 100.0% 0% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 40 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Steel Frame and Masonry Construction NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Heavy Steel Frame EXTERIOR WALLS/FINISH Brick WINDOWS Fixed Casement FLOOR COVERING Hardwood, Linoleum, Tile INTERIOR WALLS Painted drywall CEILING COVER Acoustic ceiling panels, Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS Single use restroom HVAC Two pipe system UTILITIES All Available PARKING DETAILS PARKING TYPE None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 41 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS 10 SE 2ND AVE DETAILS BUILDING NAME 10 SE 2nd Ave BUILDING CLASS C CONDITION Poor YEAR BUILT 1925 GROSS BUILDING AREA 677 SF NET RENTABLE AREA 677 SF BUILDING EFFICIENCY RATIO 100.0% CURRENT OCCUPANCY 100% TENANT TYPE Single -Tenant CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Steel Frame and Masonry Construction NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Heavy Steel Frame EXTERIOR WALLS/FINISH Brick WINDOWS Fixed Casement FLOOR COVERING Hardwood, Linoleum, Tile INTERIOR WALLS Painted drywall CEILING COVER Acoustic ceiling panels, Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS Single use restroom HVAC Two pipe system UTILITIES All Available PARKING DETAILS PARKING TYPE None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 42 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS 8 SE 2ND AVE DETAILS BUILDING NAME 8 SE 2nd Ave BUILDING CLASS C CONDITION Poor YEAR BUILT 1925 GROSS BUILDING AREA 368 SF NET RENTABLE AREA 368 SF BUILDING EFFICIENCY RATIO 100.0% CURRENT OCCUPANCY 0% CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Steel Frame and Masonry Construction NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Heavy Steel Frame EXTERIOR WALLS/FINISH Brick WINDOWS Fixed Casement FLOOR COVERING Hardwood, Linoleum, Tile INTERIOR WALLS Painted drywall CEILING COVER Acoustic ceiling panels, Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS Single use restroom HVAC Two pipe system UTILITIES All Available PARKING DETAILS PARKING TYPE None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 43 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS 176 E FLAGLER ST DETAILS BUILDING NAME 176 E Flagler St BUILDING CLASS C CONDITION Poor YEAR BUILT 1925 GROSS BUILDING AREA 925 SF NET RENTABLE AREA 925 SF BUILDING EFFICIENCY RATIO 100.0% CURRENT OCCUPANCY 100% TENANT TYPE Single -Tenant CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Steel Frame and Masonry Construction NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Heavy Steel Frame EXTERIOR WALLS/FINISH Brick WINDOWS Fixed Casement FLOOR COVERING Hardwood, Linoleum, Tile INTERIOR WALLS Painted drywall CEILING COVER Acoustic ceiling panels, Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS Single use restroom HVAC Two pipe system UTILITIES All Available PARKING DETAILS PARKING TYPE None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 44 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS 168 E FLAGLER ST DETAILS BUILDING NAME 168 E Flagler St BUILDING CLASS C CONDITION Poor YEAR BUILT 1925 GROSS BUILDING AREA 508 SF NET RENTABLE AREA 508 SF BUILDING EFFICIENCY RATIO 100.0% CURRENT OCCUPANCY 0% CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Steel Frame and Masonry Construction NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Heavy Steel Frame EXTERIOR WALLS/FINISH Brick WINDOWS Fixed Casement FLOOR COVERING Hardwood, Linoleum, Tile INTERIOR WALLS Painted drywall CEILING COVER Acoustic ceiling panels, Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS Single use restroom HVAC Two pipe system UTILITIES All Available PARKING DETAILS PARKING TYPE None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 45 Olympia Theater 23-341-02 DESCRIPTION OF THE IMPROVEMENTS 166 E FLAGLER ST DETAILS BUILDING NAME BUILDING CLASS CONDITION YEAR BUILT GROSS BUILDING AREA NET RENTABLE AREA BUILDING EFFICIENCY RATIO CURRENT OCCUPANCY TENANT TYPE 166 E Flagler St C Poor 1925 717 SF 717 SF 100.0 100% Single -Tenant CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE A CLASS MARSHALL VALUATION SERVICE Average QUALITY CONSTRUCTION TYPE Steel Frame and Masonry Construction NUMBER OF STORIES 1 FOUNDATION Poured concrete slab FRAME Heavy Steel Frame EXTERIOR WALLS/FINISH Brick WINDOWS Fixed Casement FLOOR COVERING Hardwood, Linoleum, Tile INTERIOR WALLS Painted drywall CEILING COVER Acoustic ceiling panels, Drywall INTERIOR LIGHTING Fluorescent fixtures RESTROOMS Single use restroom HVAC Two pipe system UTILITIES All Available PARKING DETAILS PARKING TYPE None JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 46 Olympia Theater 23-341-02 ZONING The subject is zoned "T6-80-0 (CBD)," Mixed -use, under the jurisdiction of the City of Miami. ZONE DETAILS ZONING CODE T6-80-0 (CBD) ZONING DESCRIPTION Mixed -use PERMITTED USES Retail/office use ZONED DENSITY 1,000 du/acre ZONING DENSITY/FAR 24.0 MAXIMUM LOT COVERAGE 80% MINIMUM LOT AREA 5,000 MINIMUM FRONTAGE 100' LANDSCAPE OPEN SPACE 10% SET BACK DISTANCE 10' SIDE YARD DISTANCE 0' REAR 0' BUILDING NUMBER OF STORIES 80 PARCEL DETAILS CURRENT USE Storefront Based on a review of the subject in relation to the T6-80-0 (CBD) 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 47 Olympia Theater 23-341-02 TAXES The subject is assessed by the Miami -Dade County property appraiser's office, and is taxed by The City of Miami. According to public records, it appears there are no unpaid taxes as of the date of this report. 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 48 Olympia Theater 23-341-02 TAXES The following table summarizes the subject's assessment and taxes: Parcel ID Assessment Year Tax Authority Land Value Tax Authority Improvements Value Tax Authority Other Value Total Market Value Total Assessed Value School Board Millage Rate Non -School Millage Rate School Board Millage 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 174 E Flagler St 01-0112-010-1010 2023 $4,510,170 $1,140,553 $0 $5,650,723 $5,005,279 6.699000 14.324700 $37,854 $71,699 21.023700 $1,000.00 $109,553 $0 $109,553 4% $0 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 49 Olympia Theater 23-341-02 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 E Flagler Street, in Miami, FI. The underlying site consists of 21,477 SF or 0.49 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 retail/office use. LEGALLY PERMISSIBLE The subject's site is zoned "T6-80-0 (CBD)," Mixed -use, under the jurisdiction of the City of Miami, FI. Reference is made to the Zoning section of this report. Permitted uses include retail/office use. 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 retail/office use. FINANCIALLY FEASIBLE Analysis for financially feasible uses for the site, as if vacant, involves consideration of several criteria. Unlike the physically possible and legally permissible aspects of the highest and best use analysis, many external economic factors serve to prove or disprove financial feasibility. The cost of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price forecast, property tax implications and measures of risk and yield are all determinant to this analysis. The above financial measures serve to eliminate the uses that would not provide a reasonable return to the land based on an investor's expectations. The cost of land and its development limits the highest and best use of the site, generally to only those uses that are financially feasible. The subject units are located along main roadways in the CBD of the City of Miami. Each unit is less than 1,000 SF in size and have a large pedestrian presence. Small retailers such as a mobile provider or a clothing store would be the best prospective tenants for units as well as professional office users interested in attracting the passersby. We conclude that financially feasible uses of the site that are physically possible and legally permissible are retail/office use. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 50 Olympia Theater 23-341-02 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 retail/office use. 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 development. 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 51 Olympia Theater 23-341-02 ANALYSIS OF DATA AND CONCLUSIONS VALUATION METHODOLOGIES In appraising a property, there are three traditional valuation methodologies that can be applied: the Cost, Income Capitalization and Sales Comparison Approaches. Selection of one or more of the approaches in the appraisal of a property rests primarily upon the property type and its physical characteristics, as well as the quality and quantity of available market data. The Cost Approach is based on the premise that an informed purchaser will not pay more for a property than it would cost him or her to construct a property of similar utility. This approach is most applicable when the subject is of new or nearly new construction and the improvements represent the highest and best use of the site. This approach is also particularly useful when appraising unique or special purpose properties where there are few, if any, comparable sales or leases. The Income Capitalization Approach is based on the fundamental investment premise that the higher a property's earnings, the higher its value. Investment in an income -producing property represents the exchange of present dollars for the right to receive future dollars. In this approach, a value indication for an income -producing property is derived by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways: one year's income expectancy can be capitalized at a market -derived capitalization rate, or alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified discount rate. The Income Capitalization Approach typically provides the most meaningful estimate of value for income -producing properties. The Sales Comparison Approach involves delineating appropriate units of measurement from comparable sales, in order to apply them to the subject's property. Adjustments are then made to the sales prices of the comparable properties based on various shared elements. This methodology may be used to value many different types of improved properties and vacant land, as long as there is a sufficient quantity of good -quality market data available. It becomes less reliable as the quantity and magnitude of adjustments increases, and it is generally not applicable to unique or special purpose properties. The final step in the valuation process is the reconciliation or correlation of the value indications. In the reconciliation or correlation, we consider the relative applicability of each of the approaches used, examine the range between the value indications, and place major emphasis on the approach that appears to produce the most reliable and credible result. VALUATION METHODOLOGIES APPLICABLE TO THE SUBJECT PROPERTY Since we are developing a market rent for the six retail units of the Olympia Theater building a rental comparable analysis of similar retail related spaces in the downtown Miami market was utilized to develop a market rent for. 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. Traditional valuation was not used because the report is a rent study. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 52 Olympia Theater 23-341-02 MARKET RENT ANALYSIS ECONOMIC PROFILE Briefly described, the subject consists of six average quality first floor retail units, containing a total SF of approximately 4,590 SF of net rentable area, constructed in 1925. Unit 20 is 765 SF, Unit 10 is 677 SF, Unit 8 is 368 SF, Unit 176 is 925 SF, Unit 168 is 508, and Unit 166 is 717 The units are 50% occupied, and do not come with any dedicated or reserved parking. The units are a part of a mixed/use improvement that includes the Olympia Theater, a theater that received a historic designation by the National Register of Historic Places in 1984. of the six units, three units have frontage along SE 2nd Avenue, two units have frontage along E Flagler Street, and unit 176 is a corner unit. The units located along E Flagler St have mezzanine level that is not considered to be usable. Most units are considered to be in poor condition with Unit 176 being the only one in average condition. We make a hypothetical condition that all units are in vanilla shell condition. MARKET RENT COMPARABLES A search of the market was conducted for rental comparables. The subject consists of six units. Three units are located along NE 2nd Avenue, two have frontage along E Flagler Street, and one unit that has frontage on both streets. 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 53 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Lease Comparable 1 Name Flagler Jewelry Center Address 29 E Flagler St City Miami State FL Location County Zip Tax Parcel ID Miami -Dade County 33131 01-0111-060-1100 Site & Improvements NRA 27,746 Year Built 1930 No. of Floors 3 No. of Buildings 1 Land SF 11,250 Land Acres 0.26 MVS Quality Average Condition Good Asking Rental Data Rental Rate $85.50 Avg Lease Term 3 - 5 Years Lease Type Modified Gross Lease Concessions Negotiable Escalation CPI or Stepped Occupancy 91.64% Ti Allowance Negotiable Comments This is an office/retail building located on Flagler Street in Downtown Miami. The property is located in the Downtown Miami Jewelry District and contains mostly jewelry related tenants. There are currently 5 units available at 600 SF or 1,120 SF. Four units are 600 SF available at $4,500/month each or $90/SF. One unit is 1,120 SF and is available at $7,500/month or $80.36/SF. All units have frontage along Flagler Street. A percentage rent clause would not be negotiated in the agreement. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 54 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Lease Comparable 2 Location Name Alfred I. DuPont Building (Copy) County Miami -Dade County Address 169 E. Flagler Street Zip 33131 City Miami Tax Parcel ID 01-0111-070-1010 State FL Site & Improvements NRA 230,406 Year Built 1938 No. of Floors 17 No. of Buildings 1 Land SF 50,965 Land Acres 1.17 MVS Quality Good Condition Average Asking Rental Data Rental Rate $60.00 Avg Lease Term 5 - 10 Years Lease Type Modified Gross Lease Concessions None Escalation CPI Occupancy 65.70% Ti Allowance Negotiable Comments This is an office building with first floor retail space located in Downtown Miami. This building offers on site parking and was renovated in 1996. In regards to the retail units available, There are currently three units with square footages of 3,504 SF, 2,700 SF, and 6,240 SF which includes the rooftop. The unit with 3,504 SF is located in the interior of the building whereas the 2,700 SF and 6,240 SF units are located along NE 2nd Avenue. Both units are being offered at $60/SF modified gross. According to the broker, percentage rent is typically used for restaurant deals where the land expends considerable TI, and therefore usually does not pertain to typical retail spaces. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 55 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Name 144 E Flagler St Address 144 E Flagler St City Miami State FI Lease Comparable 3 Location County Miami -Dade Zip 33131 Tax Parcel ID 01-0112-010-1050 Site & Improvements NRA 7,080 Year Built 1925 No. of Floors 2 No. of Buildings 1 Land SF 6,577 Land Acres 0.15 MVS Quality Average Condition Average Asking Rental Data Rental Rate $50.00 Avg Lease Term 3 - 5 Years Lease Type NNN Lease Concessions Negotiable Escalation CPI Occupancy 71.75% Ti Allowance $50/SF Comments The property is considered a storefront space located along the south end of Flagler Street in Downtown Miami. The space currently available is unit 144 which has a first floor retail space of approximately 2,000 SF in size. The space is currently available for $50/SF on a triple net basis. According to the broker, percentage rent would not be considered for this type of property but rather for a trophy improvement that is unique to the market. Typical TI allowance would be $50/SF with concessions being negotiable depending on how long buildout takes. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 56 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Lease Comparable 4 Name Address City State 140 E Flagler St 140 E Flagler St Miami FI Location County Zip Tax Parcel ID Miami -Dade 33131 01-0112-010-1050 Site & Improvements N RA No. of Floors Land SF MVS Quality 2,000 2 12,620 Average Year Built No. of Buildings Land Acres Condition 1923 1 0.29 Average Asking Rental Data Rental Rate Lease Type Escalation Ti Allowance $50.00 NNN CPI $50/SF Avg Lease Term Lease Concessions Occupancy 3-5Yea rs Negotiable 0.00% Comments The property is considered a storefront space located space currently available is unit 140 which has a first 2,000 SF. The space is currently available for $50/SF would not be considered for this type of property but Typical TI allowance would be $50/SF with concessions along the south end of Flagler Street in Downtown Miami. The floor retail space along with a second floor storage area, each on a triple net basis. According to the broker, percentage rent rather for a trophy improvement that is unique to the market. being negotiable depending on how long buildout takes. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 57 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Name Address City State 223-225 SE 1st Street 223-225 SE 1st Street Miami FL Lease Comparable 5 Location County Zip Tax Parcel ID Miami -Dade 33131 01-0112-000-2011 Site & Improvements NRA 4,492 Year Built 1926 No. of Floors 2 No. of Buildings 1 Land SF 2,294 Land Acres 0.05 MVS Quality Average Condition Good Asking Rental Data Rental Rate $60.00 Avg Lease Term Negotiable Lease Type NNN Lease Concessions NA Escalation CPI or Stepped Occupancy 0.00% Ti Allowance NA Comments This property is located on the north side of SE 1st Street east of SE 2nd Avenue. It is also listed for sale for $4,250,000 or $946.13/SF. A percentage rent clause would not be included in the agreement. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 58 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Name 142 NE 2nd Avenue Address 142 NE 2nd Avenue City Miami State FL NRA 2,400 No. of Floors 1 Land SF 2,500 MVS Quality Good Lease Comparable 6 Location County Zip Tax Parcel ID Site & Improvements Miami -Dade 33132 01-0110-040-1010 Year Built 1930 No. of Buildings 1 Land Acres 0.06 Condition Good Asking Rental Data Rental Rate $50.00 Avg Lease Term Negotiable Lease Type NNN Lease Concessions NA Escalation CPI or Stepped Occupancy 58.33% Ti Allowance NA Comments This property is located at the SWC of NE 2nd Avenue and NE 2nd Street. There is a municipal parking lot immediately behind the building, and it is directly across the street from the Loft 2 tower. A percentage rent clause would not be included i n the agreement. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 59 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Com p Name Year Built MVS Quality Rental Rate Lease Type Address NRA Condition Expenses Avg Lease Term Occupancy 1 Flagler Jewelry Center 1930 Average $85.50 Modified Gross 29 E Flagler St 27,746 Good NA 3 - 5 Years 91.64% 2 Alfred I. DuPont Building (Copy) 1938 Good $60.00 Modified Gross 169 E. Flagler Street 230,406 Average NA 5 - 10 Years 65.70% 3 144 E Flagler St 1925 Average $50.00 NNN 144 E Flagler St 7,080 Average NA 3 - 5 Years 71.75% 4 140 E Flagler St 1923 Average $50.00 NNN 140 E Flagler St 2,000 Average NA 3 - 5 Years 0.00% 5 223-225 SE 1st Street 1926 Average $60.00 NNN 223-225 SE 1st Street 4,492 Good NA Negotiable 0.00% 6 142 NE 2nd Avenue 1930 Good $50.00 NNN 142 NE 2nd Avenue 2,400 Good NA Negotiable 58.33% RENT COMPARABLES MAP NE 2nd St NE 1st St NE 2nd St NE1stSt 4a z rJ z rrr a JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 60 Olympia Theater 23-341-02 MARKET RENT 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. Expenses Expenses for each comparable are noted in the adjustment grid. We examined the expenses of retail improvements that are less than 20,000 SF to understand the typical cost/SF. See below three retail comps in the Miami market: Comparable 1 2 3 City Miami Miami Beach Miami County Miami -Dade Miami -Dade County Miami -Dade County NRA 6,734 19,677 18,840 Comparable 1 2 3 $/SF $/SF $/SF Real Estate Taxes $6.10 $5.87 $3.05 Insurance $1.39 $0.73 $0.85 Utilities $1.35 $1.32 $0.63 Repairs and Maintenance $0.35 $2.30 $0.96 Management Fee $0.00 $3.03 $0.97 Administrative $0.05 $1.32 $0.19 Total Operating Expenses $9.25 $14.57 $6.65 Based on the three expense comps examined, the average expense per SF is $10.15/SF. Rental comparables 1 and 2 are modified gross with tenants responsible for utilities. We deduct $10/SF from Comp 1 and 2 to accurately compare each rental comparable. 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 units are located on either SE 2nd Avenue or E Flagler Street in Downtown Miami. When comparing the general location of the subject's units in relation to the whole market, Comp 6 is considered inferior. Comp 6 is located along NE 2nd Avenue nearby a parking lot, a garage and an empty lot, where as the subject is located along Flagler Street where major renovation is currently taking place, and across the street from a recently open food hall. Comp 6 is adjusted upwards. All other comps are similar in location being one block or less away from the subject. No further adjustments were made. 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 1925. No adjustment was made for this factor. Construction Quality (MVS Quality) Adjustments are applied to the comparables on the basis of quality of construction, design and market appeal. The more inferior a comparable's quality of improvements, the lower the rental rate it can achieve in the market, with all other factors held constant. The subject is an average quality property. Comp 2 and 6 are considered to be of good quality. Adjustments were made downwards. All other comps are of similar quality to the subject's units. No adjustments were made. JOSEPH J. BLADE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 61 Olympia Theater 23-341-02 MARKET RENT ANALYSIS 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 with an hypothetical condition that the unit are in a vanilla shell condition in. Comps 1, 5, and 6 are considered to be in good condition. Adjustments were made downwards. All other comps are considered to be in similar to the subject's units. No adjustments were made for Comp 2, 3, and 4. Available SF The subject's average unit size is 660 SF. Larger spaces tend to have lower rental rates. Comp 1 has units available at 600 SF and 1,120 SF. No adjustment was made to comp 1. Comp 2, 3 and 4 have units available to lease that are 2,000 SF or larger. Adjustments were made upwards. Comp 5 is a single tenant building with two -stories for any prospective at 4,492 SF. An adjustments were made upwards. Comp 6 has a 1,000 SF space available. No adjustment was made. Frontage The subject has three units with frontage along SE 2nd Avenue, two units with frontage along E Flagler Street, and one corner unit with frontage along both roadways. E Flagler Street is currently undergoing renovations to make it the primary walking -shopping destination in the downtown Miami market. When completed, it will enhance the pedestrian experience and in turn provide a possible growth in foot traffic. E Flagler Street is considered to be the superior roadway compared to SE 2nd Avenue. SE 2nd Avenue is a north/south roadway that turns into Brickell Avenue once it crosses the Miami River to the South, and passes through other major hubs in the City of Miami such as The Miami Worldcenter, and Wynwood. Across the avenue, the recently opened Julia & Henry a three -level 47,000 square feet of restaurants, bars and shared office space. We compare all comps frontage with the subject's frontage along E Flagler Street. Comp 1, 3 and 4 have frontage along E Flagler Street. No adjustments were made. Comp 2, and 6 are located along NE 2nd Avenue. The subject frontage along E Flagler Street where a beautification project is occurring is superior to Comp 2 and 6 frontage. Comp 5 is located along SE 1st Street, an east/west roadway one block southeast of the subject with narrow pedestrian sidewalks and a parking garage across the roadway. Where the comp is located, SE 1ST Street requires motorist to only travel east limiting the amount of motorist that can past by the comp. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 62 Olympia Theater 23-341-02 MARKET RENT 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 Comp 6 Name Olympia Theater Address 174 E Flagler St City Miami County Miami -Dade County State FI Flagler Jewelry 29 E Flagler St Miami Miami -Dade County FL Alfred 1. DuPont 169 E. Flagler Street Miami Miami -Dade County FL 144 E Flagler St 144 E Flagler St Miami Miami -Dade FI 140 E Flagler St 140 E Flagler St Miami Miami -Dade FI 223-225 SE 1st Street 223-225 SE 1st Street Miami Miami -Dade FL 142 NE 2nd Avenue 142 NE 2nd Avenue Miami Miami -Dade FL Asking Rents Rental Rate Lease Type Expenses Avg Lease Term Lease Concessions Escalation Date $85.50 Modified Gross -$10.00 3-5 Years Negotiable CPI or Stepped 12/19/2023 $60.00 Modified Gross -$10.00 5-10 Years None CPI 12/19/2023 $50.00 NNN 3-5 Years Negotiable CPI 12/19/2023 $50.00 NNN 3-5 Years Negotiable CPI 12/14/2023 $60.00 NNN Negotiable NA CPI or Stepped 10/18/2023 $50.00 NNN Negotiable NA CPI or Stepped 10/18/2023 Transactional Adjustments Conditions of Lease Other Normal 0% Similar 0% Normal 0% Similar 0% Normal 0% Similar 0% Normal 0% Similar 0% Normal 0% Similar 0% Normal 0% Similar 0% Adjusted Rent $75.50 $50.00 $50.00 $50.00 $60.00 $50.00 Property Adjustments Location Similar Similar Similar Similar Similar Inferior % Adjustment $ Adjustment 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 10% $5.00 Year Built 1925 1930 1938 1925 1923 1926 1930 %Adjustment $ Adjustment 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 MVS Quality Average Average Good Average Average Average Good %Adjustment $ Adjustment 0% $0.00 -5% -$2.50 0% $0.00 0% $0.00 0% $0.00 -5% -$2.50 Condition Average Good Average Average Average Good Good %Adjustment $ Adjustment -10% -$7.55 0% $0.00 0% $0.00 0% $0.00 -5% -$3.00 -5% -$2.50 Available SF 600 & 1,120 SF 2700 2000 2000 4492 1000 %Adjustment $ Adjustment 0% $0.00 10% $5.00 10% $5.00 10% $5.00 10% $6.00 0% $0.00 Location in building Along Flagler Street Flagler Street NE 2nd Avenue Flagler Street Flagler Street SE 1st Street NE 2nd Avenue % Adjustment $ Adjustment 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 0% $0.00 Adjusted Rent $67.95 $52.50 $55.00 $55.00 $63.00 $50.00 Property Adjustments (Net) Property Adjustments (Gross) -10% 10% 5% 15% 10% 10% 10% 10% 5% 15% 0% 20% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 63 Olympia Theater 23-341-02 MARKET RENT ANALYSIS MARKET RENT CONCLUSION As mentioned, due to the Flagler Street Beautification Project purpose of making Flagler Street the primary walking -shopping destination in the downtown Miami area, any retail space located along E Flagler St is considered to be superior. SE 2nd Avenue is considered to be mostly used for Motorist to travel between the major hubs in the City of Miami with the nearby access to the Brickell submarket being a factor for the roadway use. After adjustments, the comps range from $50/SF to $67.95/SF. Comp 1 has the highest rental rate because it is located in what can be considered to be the diamond district of the downtown Miami. The comp caters to prospective jewelry -focused tenants that would like to take advantage of the locations already industry focused clients. We believe an adjusted range of $55/SF to $65/SF on a triple net basis is a better reflection of the market. There is currently a Flagler Street Beautification Project underway that is intended to transform downtown Miami's primary east -west artery back to its historic role as Miami's primary walking -shopping destination. The historic block, named after industrialist Henry Flagler, underwent one of its first major transformations in the 1920's, converting the area into an emerging metropolitan hotspot that not even the Great Depression could interrupt. The vibrant and booming waterfront district was filled with prime retailers and attractions such as the famous Burdines department store, among numerous movie theaters, restaurants, hotels, and iconic modern art -styled buildings. The subject's units frontage is currently undergoing construction and are on the tail end of the renovations being complete before the project moves to another section. When complete. 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. Market Rent by Space Type - Olympia Theater Space Type Rent Method Increases Type Term NE 2nd Avenue Retail $55.00 $/SF/Year CPI NNN 3 - 5 Years E Flagler Street Retail $60.00 $/SF/Year CPI NNN 3 - 5 Years Corner Unit $65.00 $/SF/Year CPI NNN 3 - 5 Years The variance between the contract and market rent is shown in the following table. Rent Roll - Olympia Theater Rent Roll # of % of Market Market Tenant/Unit Name Space Type Units SF Total Rent Rent/SF 20 SE 2nd Ave NE 2nd Avenue 1 765 19.32% $42,075 $55.00 10 SE 2nd Ave NE 2nd Avenue 1 677 17.10% $37,235 $55.00 8 SE 2nd Ave NE 2nd Avenue 1 368 9.29% $20,240 $55.00 176 E Flagler St Corner Unit 1 925 23.36% $60,125 $65.00 168 E Flagler St E Flagler Street 1 508 12.83% $30,480 $60.00 166 E Flagler St E Flagler Street 1 717 18.11% $43,020 $60.00 JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 64 Olympia Theater 23-341-02 MARKET RENT ANALYSIS Percentage Rent We have also been requested to determine the amount of percentage rent that should be paid by the lessee in addition to the base rent. When speaking with Jonathan Carter of Colliers International, percentage rent is not something that he would try to negotiate in typical retail spaces in the downtown Miami area unless the tenant is to be a restaurant and considerable tenant improvement were included. We reached out to another broker that focused on the downtown Miami market to gauge if percentage rent clauses are included in typical retail spaces. We spoke with Sam Azar, a Senior Associate with the urban core division a boutique commercial real estate firm that specializes in South Florida's urban core neighborhoods to see if percentage rent clauses are applicable to the market. According to Mr. Azar, Percentage rent clauses are only included in what is considered trophy improvements where a prospective tenant can create tremendous growth for their business and therefore have sales that would allow a breakpoint and percentage rent to be applied. In the highest and best use analysis, we explained that the units small size are best suited for local tenants or small retail businesses to operate. None of the units are currently built -out for restaurant use, therefore percentage rent is not applicable. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 65 Olympia Theater 23-341-02 RECONCILIATION AND FINAL VALUE After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value, we are of the opinion that the 'as is' market rent for the subject units, as of December 1st, 2023, is: "Vanilla Shell" Value Opinion of Market Rent as of 12/01/2023 174 E Flagler St Units 20 SE 2nd Ave 10 SE 2nd Ave 8 SE 2nd Ave 176 E Flagler St 168 E Flagler St 166 E Flagler St 765 SF 677 SF 368 SF 925 SF 508 SF 717 SF $55/SF NNN $55/SF NNN $55/SF NNN $65/SF NNN $60/SF NNN $60/SF NNN $42,075/Year $37,235/Year $20,240/Year $60,125/Year $30,480/Year $43,020/Year Plus, the tenant is responsible for 100% share of the expenses for the whole property. This appraisal is not based on any extraordinary assumptions. The concluded to market rent estimate in this market rent study is based on the hypothetical condition that as of the date of value, the subject's units are in vanilla shell condition. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AHD CONSULTING 66 Olympia Theater 23-341-02 ADDENDA JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING OFFICE OF THE PROPERTY APPRAISER Detailed Report PROPERTYINFORMATIO Folio 01-0112-010-1010 Property 174 E FLAGLER ST Address MIAMI, FL 33131-1130 Owner CITY OF MIAMI Mailing 444 SW 2ND AVE 3RD FLOOR Address MIAMI, FL 33130-1910 Primary Zone 6401 COMMERCIAL Primary Land 1209 MIXED USE-STORE/RESIDENTIAL : MIXED Use USE - RESIDENTIAL Beds / Baths /Half Floors Living Units Actual Area Living Area Adjusted Area Lot Size Year Built 8/80/0 1 80 88,558 Sq.Ft 88,558 Sq.Ft 87,933 Sq.Ft 21,477 Sq.Ft 1925 �`#�yul�illhldiL'lul!IIUL�� Year Land Value Building Value Extra Feature Value Market Value Assessed Value 2023 $4,510,170 $1,140, 553 $0 $5,650,723 $5,005,279 2022 $4,188,015 $1,140, 553 $0 $5,328,568 $4,550,254 2021 $2,996,042 $1,140, 553 $0 $4,136,595 $4,136,595 ■�1��I�d�f9hldiL'lul!Ifi?'IMP IMP Benefit Non -Homestead Cap Type Assessment Reduction 2023 2022 2021 $645,444 $778,314 Note: Not all benefits are applicable to all Taxable Values (i.e. County, School Board, City, Regional). Generated On: 01/09/2024 BLEVk' I ORMATION Year 2023 2022 2021 COUNTY Exemption Value $0 $0 $0 Taxable Value $5,005,279 $4,550,254 $4,136,595 SCHOOL BOARD Exemption Value $0 $0 $0 Taxable Value $5,650,723 $5,328,568 $4,136,595 CITY Exemption Value $0 $0 $0 Taxable Value $5,005,279 $4,550,254 $4,136,595 REGIONAL Exemption Value $0 $0 $0 Taxable Value $5,005,279 $4,550,254 $4,136,595 The Office of the Property Appraiser is continually editing and updating the tax roll. This website may not reflect the most current information on record. The Property Appraiser and Miami -Dade County assumes no liability, see full disclaimer and User Agreement at http://www.miamidade.gov/info/disclaimer.asp OFFICE OF THE PROPERTY APPRAISER Generated On: 01/09/2024 Property Information Folio: 01-0112-010-1010 Property Address: 174 E FLAGLER ST Roll Year 2023 Land, Building and Extra -Feature Details LAND INFORMATIO Land Use GENERAL GENERAL Muni Zone T6-80-0 T6-80-0 PA Zone 6401 6401 Unit Type Square Ft. Square Ft. Units 11,977.00 9,500.00 Calc Value $2,515,170 $1,995,000 BUILDING INFORMATION The Building calculated value for this property has been overridden. Please refer to the Building Value in the Assessment Section, in order to obtain the most accurate value. Building Number 1 1 1 1 1 Sub Area 1 2 3 4 5 Year Built 1925 1925 1925 1925 1925 Actual Sq.Ft. Living Sq.Ft. Adj Sq.Ft. 4,170 4,170 4,170 20,187 20,187 20,187 13,616 13,616 13,616 5,750 5,750 5,750 44,835 44,835 44,210 Calc Value EXTRA FEATURES The Extra Feature calculated value for this property has been overridden. Please refer to the XF Value in the Assessment Section, in order to obtain the most accurate value. Description Plumbing Fixtures - Hi -Rise Elevator - Passenger Year Built 1925 1925 Units 74 20 Calc Value Chill Water A/C (Aprox 300 sgft/Ton) 1925 20 Cent A/C - Comm (Aprox 300 sqft/Ton) 1925 160 The Office of the Property Appraiser is continually editing and updating the tax roll. This website may not reflect the most current information on record. The Property Appraiser and Miami -Dade County assumes no liability, see full disclaimer and User Agreement at http://www.miamidade.gov/info/disclaimer.asp OFFICE OF THE PROPERTY APPRAISER Generated On: 01/09/2024 Property Information Folio: 01-0112-010-1010 Property Address: 174 E FLAGLER ST Roll Year 2022 Land, Building and Extra -Feature Details LAND INFORMATIO Land Use GENERAL GENERAL Muni Zone T6-80-0 T6-80-0 PA Zone 6401 6401 Unit Type Square Ft. Square Ft. Units 11,977.00 9,500.00 Calc Valu $2,335,51 $1,852,5C e 5 0 BUILDING INFORMATION The Building calculated value for this property has been overridden. Please refer to the Building Value in the Assessment Section, in order to obtain the most accurate value. Building Number 1 1 1 1 1 Sub Area 1 2 3 4 5 Year Built 1925 1925 1925 1925 1925 Actual Sq.Ft. Living Sq.Ft. Adj Sq.Ft. 4,170 20,182 13,598 5,780 44,450 Calc Value EXTRA FEATURES The Extra Feature calculated value for this property has been overridden. Please refer to the XF Value in the Assessment Section, in order to obtain the most accurate value. Description Plumbing Fixtures - Hi -Rise Elevator - Passenger Chill Water A/C (Aprox 300 sgft/Ton) Cent A/C - Comm (Aprox 300 sqft/Ton) Year Built 1925 1925 1925 1925 Units 74 20 20 160 Calc Value The Office of the Property Appraiser is continually editing and updating the tax roll. This website may not reflect the most current information on record. The Property Appraiser and Miami -Dade County assumes no liability, see full disclaimer and User Agreement at http://www.miamidade.gov/info/disclaimer.asp OFFICE OF THE PROPERTY APPRAISER Generated On: 01/09/2024 Property Information Folio: 01-0112-010-1010 Property Address: 174 E FLAGLER ST Roll Year 2021 Land, Building and Extra -Feature Details LAND INFORMATIO Land Use GENERAL GENERAL Muni Zone T6-80-0 T6-80-0 PA Zone 6401 6401 Unit Type Square Ft. Square Ft. Units 11,977.00 9,500.00 Calc Valu $1,670,7 $1,325,a e 2 0 BUILDING INFORMATION The Building calculated value for this property has been overridden. Please refer to the Building Value in the Assessment Section, in order to obtain the most accurate value. Building Number 1 1 1 1 1 Sub Area 1 2 3 4 5 Year Built 1925 1925 1925 1925 1925 Actual Sq.Ft. Living Sq.Ft. Adj Sq.Ft. 4,170 20,182 13,598 5,780 44,450 Calc Value EXTRA FEATURES The Extra Feature calculated value for this property has been overridden. Please refer to the XF Value in the Assessment Section, in order to obtain the most accurate value. Description Plumbing Fixtures - Hi -Rise Elevator - Passenger Chill Water A/C (Aprox 300 sgft/Ton) Cent A/C - Comm (Aprox 300 sqft/Ton) Year Built 1925 1925 1925 1925 Units 74 20 20 160 Calc Value The Office of the Property Appraiser is continually editing and updating the tax roll. This website may not reflect the most current information on record. The Property Appraiser and Miami -Dade County assumes no liability, see full disclaimer and User Agreement at http://www.miamidade.gov/info/disclaimer.asp OFFICE OF THE PROPERTY APPRAISER Generated On: 01/09/2024 Property Information Folio: 01-0112-010-1010 Property Address: 174 E FLAGLER ST FULL LEGAL DESCRIPTIO MIAMI NORTH PB B-41 LOTS 1 & 2 & S55FT OF LOT 3 & N 45FT OF LOTS 18-19-20 LESS W 2 IN OF N65FT OF LOT 2 BLK 121 LOT SIZE IRREGULAR 75R-148292 - OR 9053-723 SALES INFORMATION Previous Sale 07/01/1975 05/01/1975 10/01/1971 Price $1 $2,053,000 $950,000 OR Book -Page 00000-00000 00000-00000 00000-00000 Qualification Description Sales which are disqualified as a result of examination of the deed Sales which are disqualified as a result of examination of the deed Sales which are qualified The Office of the Property Appraiser is continually editing and updating the tax roll. This website may not reflect the most current information on record. The Property Appraiser and Miami -Dade County assumes no liability, see full disclaimer and User Agreement at http://www.miamidade.gov/info/disclaimer.asp Corrected plicate public_user 12/20/2023 Miami -Dade County, Florida 2023 Real Estate Property Taxes Notice of Ad Valorem Tax and Non -Ad Valorem Assessments SEE REVERSE SIDE FOR IMPORTANT INFORMATION FOLIO NUMBER MUNICIPALITY MILL CODE 01-0112-010-1010 MIAMI 0101 CITY OF MIAMI 444 SW 2ND AVE 3RD FLOOR MIAMI, FL 33130-1910 Property Address 174 E FLAGLER ST Exemptions: AD VALOREM TAXES Miami -Dade School Board School Board Operating School Board Debt Service Voted School Operating State and Other Florida Inland Navigation District South Florida Water Management District Okeechobee Basin Everglades Construction Project Childrens Trust Authority Miami -Dade County County Wide Operating County Wide Debt Service Library District Municipal Governing Board Miami Operating Miami Debt Service Miami Miscellaneous 5,650, 723 5,650, 723 5,650, 723 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5.56600 0.13300 1.00000 0.02880 0.09480 0.10260 0.03270 0.50000 4.57400 0.43550 0.28120 7.48430 0.32350 0.46730 5,650, 723 5,650, 723 5,650, 723 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 5,005,279 31,451.93 751.55 5,650.72 144.15 474.50 513.54 163.67 2,502.64 22,894.15 2,179.80 1,407.48 37,461.01 1,619.21 2,338.97 LEVYING AUTHORITY NON -AD VALOREM ASSESSMENTS RATE FOOTAGE/UNITS AMOUR AMOUNT IF PAID BY (.a onl one amount) Dec 31, 2023 $106,266.72 Jan 31, 2024 $107,362.25 Feb 29, 2024 Mar 31, 2024 $108,457.79 $109,553.32 * RETAIN FOR YOUR RECORDS Combined Taxes and Assessments $109,553.32 2023 Real Estate Property Taxes 01-0112-010-1010 FOLIO NUMBER 174 E FLAGLER ST PROPERTY ADDRESS LEGAL DESCRIPTION MIAMI NORTH PB B-41 LOTS 1 & 2 & S55FT OF LOT 3 & N 45FT OF LOTS 18-19-20 LESS W2 IN OF N 4- DETACH HERE AND RETURN THIS PORTION WITH YOUR PAYMENT 4- Du.licate .ublic user 12/20/2023 CITY OF MIAMI 444 SW 2ND AVE 3RD FLOOR MIAMI, FL 33130-1910 111111 Mil II 1 III 1111 I1111111 I111 I111 1111111 I1111111 I1111111 I111 IIII II 1 III I1111111 111111111 Mail payments payable to: Miami -Dade Office of the Tax Collector 200 NW 2nd Avenue, Miami, FL 33128 (In U.S. funds from a U.S. Bank) Funds must be available for immediate withdrawal. PAY ONLY ONE AMOUNT If Paid By Please Pay Dec 31, 2023 $106,266.72 Jan 31, 2024 $107,362.25 Feb 29, 2024 $108,457.79 Mar 31, 2024 $109,553.32 1000000000000000000101120101010202300010955332000000000004 City of Miami Zoning Information Urban Core Transect T6-80 Miami 21 Zoning Code Notice: This is a reference manual only. For official information, please refer to the Miami 21 Code, as amended, the Zoning Ordinance of the City of Miami. Additional regulations may be applicable. All applications require zoning review and referral prior to commencement. Revised April 2017 MIAMI 21 AS ADOPTED - JANUARY 2018 ARTICLE 4. TABLE 1 TRANSECT ZONE DESCRIPTIONS THE NATURAL ZONE consists of lands approximat- ing a wilderness condition, permanently set aside for conservation in an essentially natural state. THE RURALZONE consistsoflandsin openorcultivated state or sparsely settled. These include woodland, grassland and agricultural land. THE SUB -URBAN ZONE consists of low -Density areas, primarily comprised of Single -Family and Two Family residential units with relatively deep Setbacks, Streetscapes with swales, and with or without Side- walks. Blocks may be large and the roads may be of irregular geometry to accommodate natural and historic conditions. THE GENERAL URBAN ZONE consistsofa Mixed -Use but primarily residential urban fabric with a range of Building types including rowhouses, small apartment Buildings, and bungalow courts. Setbacks are short with an urban Streetscape of wide Sidewalks and trees in planters. Thoroughfares typically define medium- sized blocks. THE URBAN CENTER ZONE consists of higher Density Mixed -Use Building typesthat accommodate retail and office Uses, rowhouses and apartments. A network of small blocks has Thoroughfares with wide Sidewalks, steady street tree planting and Buildings set close to the Frontages with frequent doors and windows. THE URBAN CORE ZONE consists of the highest Density and greatest variety of Uses, including Civic Buildings of regional importance. A network of small blocks has Thoroughfares with wide Sidewalks, with steady tree planting and Buildings set close to the Frontage with frequent doors and windows. THE CIVIC ZONE consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent Setbacks and landscape. THE DISTRICT ZONE consists of the least regulated Building and accommodates commercial and industrial Uses of a scale and with a Streetscape that facilitate vehicular access. AP fir- ,. U;40IA &,/s=441111(v aOi. •, a. 1 III] Jr.. • )°ogg° ag000�ooa. 8 O IIJ O, .. e d,6 � - 8- o 010, 0 • rJ ry !w _ -■ r Gin fir goo -) o° agoog 8°°o<°pO 6, I Mt% s _ a • ■ s - . � e. GI J ®w �a!Ji. • O cou o } o v° � : k ' 4, I . ;:--N9 _ CC 4 p 121,2 9-0 a �. • 1. i X�JUo 1J -d. gn0 } U / rU` oavpl I. 1-Ia o^ O O1 : e� L ..■ bL_u JooH 1- a aE111.sif4c nJ - OU . d g8oAg)00 aim, 4 as�40.t_f__ X���U J,, J "7%J 7--1i0_�■ • a. • i JO ' ■ -_a o J r.• 0 J as o00 1 cam 'g800 i. aa�_49 .� +. • , a . XI)rJ ° �T 1 ii i�¢ te)I• • IC4-1.T9� 1_1113 �i i i woo °pO O ° el IV.5 MIAMI 21 AS ADOPTED - JANUARY 2018 ARTICLE 4. TABLE 2 MIAMI 21 SUMMARY I I I I I I I I I I URBAN DISTRICTS CIVIC LOT OCCUPATION I - T6-36 T6-48 T6-60 T6-80 URBAN CORE ZONES D1 WORKPLACE D2 INDUSTRIAL D3 WATERFRONT INDUSTRIAL I -HD INSTITUTIONCIVIC HEALTHDISTRICT a. Lot Area 5,000 sf. min. 5,000 sf. min. 5,000 sf. min. 5,000 sf. min. 5,000 s.f. min. 5,000 s.f. min. 10,000 s.f. min. 10,000 s.f. min. b. Lot Width 100 ft. min. 100 ft. min. 100 ft. min. 100 ft. min. 50 ft. min. 50 ft. min. 100 ft. min. 50 ft. min. c. Lot Coverage 80% max.** 80% max.** 80% max.** 80% max.** 80% max 90% max 90% max 80% max d. Floor Lot Ratio (FLR) a.12 or b.22 / 40% additional Public Benefit *** a.11 or b.18 / 50% additional Public Benefit *** a.11 or b.18 / 50% additional Public Benefit'"* 24 / 50% additional Public Benefit *** 8 e. Frontage at front Setback 70% min. 70% min. 70% min. 70% min. None None None None f. Open Space Requirements 10% Lot Area min. 10% Lot Area min. 10% Lot Area min. 10% Lot Area min. 5% Lot Area min. 5% Lot Area min. 5% Lot Area min. 10% Lot Area min. g. Density 150 du /acre * 150 du /acre * 150 du /acre * 150 du /acre * 36 du/acre max. 150 du /acre * BUILDING SETBACK a. Principal Front 10 ft. min. 10 ft. min. 10 ft. min. 10 ft. min. 10 ft. min. 10 ft. min. 5 ft. min. 10 ft. min. b. Secondary Front 10 ft. min. 10 ft. min. t6 ft. min. 10 ft. min. 10 ft. min. 5 ft. min. 5 ft. min. 10 ft. min. c. Side 011. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** d. Rear 0 ft. min.** 0 ft. min.** 0 ft. min.** 0 f. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** 0 ft. min.** OUTBUILDING SETBACK a. Principal Front b. Secondary Front c. Side d. Rear PRIVATE FRONTAGES a. Common Lawn prohibited prohibited prohibited prohibited prohibited prohibited prohibited permitted b. Porch & Fence prohibited prohibited prohibited prohibited prohibited prohibited prohibited prohibited c. Terrace or L.C. prohibited prohibited prohibited prohibited permitted permitted permitted permitted d. Forecourt permitted permitted permitted permitted permitted permitted permitted permitted e. Stoop permitted permitted permitted permitted permitted permitted permitted permitted f. Shopfront permitted (T6-36 L, T6-36 0) permitted (T6-48 L, T6-48 0) permitted (T6-60 L. T6-60 0) permitted (T6-80 L, T6-80 0) permitted permitted permitted permitted g. Gallery permitted" permitted ** permitted ** permitted ** permitted ** permitted ** permitted ** permitted ** h.Arcade permitted ** permitted ** permitted ** permitted ** permitted ** permitted ** permitted ** permitted ** BUILDING HEIGHT (Stories) a. Principal Building 2 min. 36 max. 2 min. 48 max. 2 min. 60 max. 2 min. 80 max. none 8 max. none 8 max. none 8 max. 1 min. As regulated by F.A.A. b. Outbuilding c. Benefit Height Abutting T6, T5 & T4 only 24 max.** 32 max.** unlimited ** unlimited ** 2 max.** THOROUGHFARES a. HW & RR prohibited prohibited prohibited prohibited prohibited prohibited prohibited prohibited b. BV permitted permitted permitted permitted permitted permitted permitted permitted c. SR permitted permitted permitted permitted permitted permitted permitted permitted d. RS permitted permitted permitted permitted permitted permitted permitted permitted e. SS & AV permitted permitted permitted permitted permitted permitted permitted permitted f. CS & AV permitted permitted permitted permitted permitted permitted permitted permitted g. Rear Lane prohibited prohibited prohibited prohibited prohibited prohibited prohibited prohibited h. Rear Alley permitted permitted permitted permitted permitted permitted permitted permitted i. Path prohibited prohibited prohibited prohibited prohibited prohibited prohibited prohibited j. Passage permitted permitted permitted permitted permitted permitted permitted permitted k. Bicycle Path permitted permitted permitted permitted permitted permitted permitted permitted I. Bicycle Lane permitted permitted permitted permitted permitted permitted prohibited prohibited m. Bicycle Route permitted permitted permitted permitted permitted permitted permitted permitted n. Sharrow permitted permitted permitted permitted permitted permitted permitted permitted o. Priority Bicycle Route permitted permitted permitted permitted permitted permitted permitted permitted * Or as modified in Diagram 9 ** Note: Refer to Article 5 for Specific Transect Zone Regulations *** Note: Bonus shall not be available for T6 properties abutting T3 properties (refer to Article 3) IV.7 MIAMI 21 AS ADOPTED - JANUARY 2018 ARTICLE 4. TABLE 3 BUILDING FUNCTION: USES DENSITY (UNITS PER ACRE) RESIDENTIAL SINGLE FAMILY RESIDENCE COMMUNITY RESIDENCE ANCILLARY UNIT TWO FAMILY RESIDENCE MULTI FAMILY HOUSING DORMITORY HOME OFFICE LIVE - WORK WORK - LIVE LODGING BED & BREAKFAST INN HOTEL OFFICE OFFICE COMMERCIAL AUTO -RELATED COMMERCIAL ESTAB. ENTERTAINMENT ESTABLISHMENT ENTERTAINMENT ESTAB. -ADULT FOOD SERVICE ESTABLISHMENT ALCOHOL BEVERAGE SERVICE ESTAB. GENERAL COMMERCIAL MARINE RELATED COMMERCIAL ESTAB. OPEN AIR RETAIL PLACE OF ASSEMBLY RECREATIONAL ESTABLISHMENT CIVIC COMMUNITY FACILITY RECREATIONAL FACILITY RELIGIOUS FACILITY REGIONAL ACTIVITY COMPLEX CIVIL SUPPORT COMMUNITY SUPPORT FACILITY INFRASTRUCTURE AND UTILITIES MAJOR FACILITY MARINA PUBLIC PARKING RESCUE MISSION TRANSIT FACILITIES EDUCATIONAL CHILDCARE COLLEGE / UNIVERSITY ELEMENTARY SCHOOL LEARNING CENTER MIDDLE / HIGH SCHOOL PRE-SCHOOL RESEARCH FACILITY SPECIAL TRAINING / VOCATIONAL INDUSTRIAL AUTO -RELATED INDUSTRIAL ESTBL. MANUFACTURING AND PROCESSING MARINE RELATED INDUSTRIAL ESTBL. PRODUCTS AND SERVICES STORAGE/ DISTRIBUTION FACILITY T3 SUB -URBAN R L 0 9 9 18 R R R R R R R R R R R E E E E E E W W W E E E E E E E E E T4 URBAN GENERAL R L 0 36 36 36 R R R R R R R R R R R R R R R E E R R R R R W R R R R R R R R E E R R W W E R R E R R W W W W W E W W W W W W E W W E E E E E E E E E E E R R E R Allowed By Right WAllowed By Warrant: Administrative Process - CRC (Coordinated Review Committee) E Allowed By Exception: Public Hearing - granted by PZAB (Planning, Zoning &Appeals Board) Boxes with no designation signify Use prohibited. T5 URBAN CENTER R L 0 65 65 65 R R R R R R R R R R R R R R R R R R R E R R R R R R R R W W R R R E E R R W W W W R R R R W W E R R E R R W W W W W E W W E W W E W W E W W W W E W W R R E W W E R R R R W W T6 URBAN CORE R L 0 150* 150* 150* R R R R R R R R R R R R R R R R R R R E R R E R R R R R R W W R R W R R E E W R R W W W W E R R R R W W E R R E R R E W W W W W E W W E W W E W W W W W W W E W W R R E W W E R R R R W W C CIVIC CS CI CI -HD N/A AZ** 150* R R E R R R R R R R E R W E R E E E R E W E R E E E R W E W W E W W E R E E E E W E W E R R E E R E R E R E E R E R E R E E R E R E R E R E R D DISTRICTS D1 D2 D3 36 NIA NIA R R R R R W R R R R R R R W E E E R R W R R R R R W R R W R R W R R R R R R W R R W W R W E E E R R R R R W E W W R R W E E E E E E R R W R R W R R W R R W R R R R R W R R W Uses may be further modified by Supplemental Regulations, State Regulations, or other provisions of this Code. See City Code Chapter 4 for regulations related to Alcohol Beverage Service Estab. * Additional densities in some T6 zones are illustrated in Diagram 9. ** AZ: Density of lowest Abutting Zone IV.8 MIAMI 21 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED) AS ADOPTED - JANUARY 2018 T6 - URBAN CORE ZONE RESTRICTED LIMITED OPEN DENSITY (UPA) 150 UNITS PER ACRE * 150 UNITS PER ACRE * 150 —1,000 UNITS PER ACRE " RESIDENTIAL Residential Uses are permissible as listed in Table 3, limited by compliance with: Residential Uses are permissible as listed in Table 3, limited by compliance with: Residential Uses are permissible as listed in Table 3, limited by compliance with: • Minimum of 1.5 parking spaces per Dwelling Unit. • Minimum of 1.5 parking spaces per Dwelling Unit. • Minimum of 1.5 parking spaces per Dwelling Unit. • Minimum of 1 additional visitor parking space for every 10 Dwelling Units. • Maximum of 1 parking space per Micro Dwelling Unit, with a maximum of 1 additional visitor parking space for • Maximum of 1 parking space per Micro Dwelling Unit, with a maximum of 1 additional visitor parking space for • Adult Family -Care Homes - Minimum 1 space per staff every 10 Micro Dwelling Units. every 10 Micro Dwelling Units. member and 1 space per 4 residents. • Minimum of 1 additional visitor parking space for every • Minimum of 1 additional visitor parking space for every • Community Residence - Minimum of 1 parking space per 10 Dwelling Units. 10 Dwelling Units. staff member in addition to the parking required for the • Live -work - Work component shall provide parking as • Live -work - Work component shall provide parking as principal Dwelling Unit(s). required by the non-residential use in addition to parking required by the non-residential use in addition to parking • Parking requirement may be reduced according to the required for the Dwelling Unit. required for the Dwelling Unit. shared parking standard, Article 4, Table 5. • Adult Family -Care Homes- Minimum 1 space per staff • Adult Family -Care Homes- Minimum 1 space per staff • Minimum of 1 Bicycle Rack Space for every 20 vehicular member and 1 space per 4 residents. member and 1 space per 4 residents. spaces required. • Community Residence- Minimum of 1 parking space per • Community Residence- Minimum of 1 parking space per • Except for sites within 500feet of an ungated T3 Transect staff member in addition to the parking required for the staff member in addition to the parking required for the Zone, the parking ratio may be reduced within a TOD principal Dwelling Unit(s). principal Dwelling Unit(s). area or within a Transit Corridor area by up to thirty • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the percent (30%) by process of Waiver; by up to fifty percent shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. (50%) by process of Waiver and payment into a transit • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for spaces required. spaces required. any Structure with a Floor Area of ten thousand (10,000) • Except for sites within 500feet of an ungated T3 Transect • Except for sites within 500feet of an ungated T3 Transect square feet or less. Zone, the parking ratio may be reduced within a TOD Zone, the parking ratio may be reduced within a TOD • In T6-60 & T6-80, parking for residential Uses located Us area or within a Transit Corridor area by up to thirty area or within a Transit Corridor area by up to thirty within feet of a Metrorail or Metromovertial 1,000 station percent (30%) by process of Waiver; by up to fifty percent percent (30%) by process of Waiver; by up to fifty percent shall not required.feetf(50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 • Parking may be provided by ownership or lease offsite of the City Code; or by one hundred percent (100%) for of the City Code; or by one hundred percent (100%) for within 1,000 feet by process of Waiver, except when site any Structure with a Floor Area of ten thousand (10,000) any Structure with a Floor Area of ten thousand (10,000) is within 500 feet of T3. square feet or less. square feet or less. • Loading - See Article 4, Table 5 • In T6-60 & T6-80, parking for residential Uses located within 1,000 feet of a Metrorail or Metromover station shall not be required. • In T6-60 & T6-80, parking for residential Uses located within 1,000 feet of a Metrorail or Metromover station shall not be required. • Parking may be provided by ownership or lease offsite within 1000 feet by process of Waiver, except when site is within 500 feet of T3. • Parking may be provided by ownership or lease offsite within 1000 feet by process of Waiver, except when site is within 500 feet of T3. • Loading - See Article 4, Table 5 • Loading - See Article 4, Table 5 LODGING Lodging Uses are permissible as listed in Table 3. Lodging Uses are permissible as listed in Table 3. Lodging Uses are permissible as listed in Table 3. • Minimum of 1 parking space for every 2 lodging units. • Minimum of 1 parking space for every 2 lodging units. • Minimum of 1 parking space for every 2 lodging units. • Minimum of 1 additional visitor parking space for every • Minimum of 1 additional visitor parking space for every • Minimum of 1 additional visitor parking space for every 10 lodging units. 10 lodging units. 15 lodging units. • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces required. spaces required. spaces required. • Except for sites within 500 feet of an ungated T3 Transect • Except for sites within 500 feet of an ungated T3 Transect • Except for sites within 500 feet of an ungated T3 Transect Zone, the parking ratio may be reduced within a TOD Zone, the parking ratio may be reduced within a TOD Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty area or within a Transit Corridor area by up to thirty area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent percent (30%) by process of Waiver; by up to fifty percent percent (30%) by process of Waiver; by up to fifty percent (50%) by process of Waiver and payment into a transit (50%) by process of Waiver and payment into a transit (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 enhancement Trust Fund, as established by Chapter 35 enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for of the City Code; or by one hundred percent (100%) for of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) any Structure with a Floor Area of ten thousand (10,000) any Structure with a Floor Area of ten thousand (10,000) square feet or less. square feet or less. square feet or less. • Parking may be provided by ownership or lease offsite • Parking may be provided by ownership or lease offsite • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site within 1,000 feet by process of Waiver, except when site within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. is within 500 feet of T3. is within 500 feet of T3. • Loading - See Article 4, Table 5 • Loading - See Article 4, Table 5 • Loading - See Article 4, Table 5 * Or as modified in Diagram 9 IV.17 MIAMI 21 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED) AS ADOPTED - JANUARY 2018 T6 - URBAN CORE ZONE RESTRICTED LIMITED OPEN DENSITY (UPA) 150 UNITS PER ACRE * 150 UNITS PER ACRE * 150 UNITS PER ACRE * OFFICE Office Uses are permissible as listed in Table 3, limited by compliance with: • The Building area allowed for office use on each lot is limited to four Stories of the Principal Building and Office and Commercial Uses shall be less than 25% of Building floor area total. Office Uses are permissible as listed in Table 3. • Minimum of 3 parking spaces for every 1,000 square feet of office use. . In T6-24, T6-36 and T6-48, a minimum of 1 parking space for every 800 square feet of office use shall be provided • Minimum of 3 parking spaces for every 1,000 square Met of fiouse. fe• In T6-24, T6-36 and T6-48 a minimum of 1 parking space for every 800 square feet of office use shall be provided • In T6-60 and T6-80, a minimum of 1 parking space for every 1,000 square feet of office use shall be provided ' Parking requirement may be reduced according to the shared parking standard, Article 4, Table 5. •In T6-60 and T6-80, a minimum of 1 parking space for every 1,000 square feet of office use shall be provided • Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces required. Except for sites within 500 feet of an ungated T3 Transect • Parking requirement may be reduced according to the Shared Parking Standard, Article 4, Table 5. • Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces required. • Except for sites within 500 feet of an ungated T3 Transect Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) square feet or less. (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) square feet or less. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. . Loading - See Article 4, Table 5 • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Loading - See Article 4, Table 5 COMMERCIAL Commercial Uses are permissible as listed in Table 3, limited by compliance with: Commercial Uses are permissible as listed in Table 3, limited by compliance with: Commercial Uses are permissible as listed in Table 3, limited by compliance with: • Commercial establishments limited to a maximum area of 4,000 square feet each and shall be less than 25% • The Building area allowed for Commercial Use on each lot is limited to two Stories of the Principal Building and • A maximum area of 55,000 square feet per establishment, except for Public Storage Facilities. building floor area total. Office and Commercial Uses shall be less than 25% of • Minimum of 3 parking spaces for every 1,000 square feet • The Building area allowed for commercial use on each lot is limited to the first two Stories of the Principal Building. Building floor area total. • A maximum area of 55,000 square feet per establishment. of commercial use, except for Public Storage Facilities, minimum 1 parking space for every 10,000 square feet • Minimum of 3 parking spaces for every 1,000 square feet • Minimum of 3 parking spaces for every 1,000 square with a minimum of 8 parking spaces. of commercial use. feet of commercial use. • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the Shared parking standard, Article 4, Table 5, except for shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. Public Storage Facilities. • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular ' Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces required. spaces required. spaces required. • Loading - See Article 4, Table 5 • Except for sites within 500 feet of an ungated T3 Transect ' Auto -related - Drive-ThruorDrive-In Facilities - SeeArUcle Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) square feet or less. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. •Loading -See Article 4, Table 5 6' • Except for sites within 500 feet of an ungated T3 Transect Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) square feet or less. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Loading - See Article 4, Table 5 * Or as modified in Diagram 9 IV.18 MIAMI 21 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED) AS ADOPTED - JANUARY 2018 T6 - URBAN CORE ZONE RESTRICTED LIMITED OPEN DENSITY (UPA) 150 UNITS PER ACRE * 150 UNITS PER ACRE' 150 UNITS PER ACRE * CIVIC Civic Uses are permissible as listed in Table 3, limited by Civic Uses are permissible as listed in Table 3, limited by Civic Uses are permissible as listed in Table 3, limited by compliance with: compliance with: compliance with: • Minimum of 1 parking spacefor every 5 seats of assembly • Minimum of 1 parking space for every 5 seats of as- • Minimum of 1 parking space for every 5 seats of as - uses. sembly uses. sembly uses. • Minimum of 1 parking space for every 1,000 square feet • Minimum of 1 parking space for every 1,000 square feet • Minimum of 1 parking space for every 1,000 square feet of exhibition or recreation area, and parking spaces for of exhibition or recreation area, and parking spaces for of exhibition or recreation area, and parking spaces for other Uses as required. other Uses as required. other Uses as required. • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular spaces required. spaces required. spaces required. • Loading - See Article 4, Table 5 • Except for sites within 500 feet of an ungated T3 Transect • Except for sites within 500 feet of an ungated T3 Transect Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent Zone, the parking ratio may be reduced within a TOD area or within a Transit Corridor area by up to thirty percent (30%) by process of Waiver; by up to fifty percent (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) square feet or less. (50%) by process of Waiver and payment into a transit enhancement Trust Fund, as established by Chapter 35 of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) square feet or less. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Loading - See Article 4, Table 5 • Loading - See Article 4, Table 5 CIVIL SUPPORT Civil Support Uses are permissible as listed in Table 3, limited by compliance with: Civil Support Uses are permissible as listed in Table 3, limited by compliance with:. Civil Support Uses are permissible as listed in Table 3, limited by compliance with:. • Minimum of 1 parking space for every 800 square feet • Minimum of 1 parking space for every 1000 square feet • Minimum of 1 parking space for every 1000 square feet of Civil Support Use; or of Civil Support Use. of Civil Support Use. • Minimum of 1 parking space for every 5 seats of assembly • Minimum of 1 parking space for every 5 seats of assembly • Minimum of 1 parking spacefor every 5 seats of assembly use; or use. use. • Minimum of 1 parking space for every 5 slips of marine • Minimum of 1 parking space for every 5 slips of marine • Minimum of 1 parking space for every 5 slips of marine use; or use. use. • Parking requirement may be reduced according to the • Adult Daycare - Minimum of 1 space per staff member. • Adult Daycare - Minimum of 1 space per staff member. shared parking standard, Article 4, Table 5. • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the • Minimum of 1 Bicycle Rack Space for every 20 vehicular shared parking standard, Article 4, Table 5. shared parking standard, Article 4, Table 5. spaces required. • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Except for sites within 500 feet of an ungated T3 Transect spaces required. spaces required. Zone, the parking ratio may be reduced within a TOD • Except for sites within 500 feet of an ungated T3 Transect • Except for sites within 500 feet of an ungated T3 Transect area or within a Transit Corridor area by up to thirty Zone, the parking ratio may be reduced within a TOD Zone, the parking ratio may be reduced within a TOD percent (30%) by process of Waiver; by up to fifty percent area or within a Transit Corridor area by up to thirty area or within a Transit Corridor area by up to thirty (50%) by process of Waiver and payment into a transit percent (30%) by process of Waiver; by up to fifty percent percent (30%) by process of Waiver; by up to fifty percent enhancement Trust Fund, as established by Chapter 35 ° ° of the City Code; or by one hundred percent (100%) for for (50%) by process of Waiver and payment into a transit (50%) by process of Waiver and payment into a transit anyf Structure with a by oner ea of ten thousand(100%) enhancement Trust Fund, as established by Chapter 35 enhancement Trust Fund, as established by Chapter 35 square feet or less. of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) of the City Code; or by one hundred percent (100%) for any Structure with a Floor Area of ten thousand (10,000) • Loading - See Article 4, Table 5 square feet or less. square feet or less. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Loading - See Article 4, Table 5 • Loading - See Article 4, Table 5 Please refer to Diagram 9 IV.19 MIAMI 21 ARTICLE 4. TABLE 4 DENSITY, INTENSITY AND PARKING (CONTINUED) AS ADOPTED - JANUARY 2018 T6 - URBAN CORE ZONE RESTRICTED LIMITED OPEN DENSITY (UPA) 150 UNITS PER ACRE * 150 UNITS PER ACRE * 150 UNITS PER ACRE * EDUCATIONAL Educational Uses are permissible as listed in Table 3, limited by compliance with: Educational Uses are permissible as listed in Table 3, limited by compliance with:. Educational Uses are permissible as listed in Table 3, limited by compliance with: • Minimum of 2 parking spaces for every 1,000 square feet • Minimum of 2 parking spaces for every 1,000 square feet • Minimum of 2 parking spaces for every 1,000 square feet of Educational Use. of Educational Use. of Educational Use. • Schools - Minimum of 1 parking space for each faculty • Schools -Minimum of 1 parking space for each faculty or • Schools - Minimum of 1 parking space for each faculty or or staff member, 1 visitor parking space per 100 students, 1 parking space per 5 students in grades 11 and 12. staff member, 1 visitor parking space per 100 students, 1 parking space per 5 students in grades 11 and 12 or staff member, 1 visitor parking space per 100 students, 1 parking space per 5 students in grades 11 and 12 or • Childcare Facilities- Minimum of 1 space for the owner/ College/University. College/University. operator and 1 space for each employee, and 1 drop-off • Childcare Facilities- Minimum of 1 space for the owner/ • Childcare Facilities- Minimum of 1 space for the owned space for every 10 clients cared for. operator and 1 space for each employee, and 1 drop-off operator and 1 space for each employee, and 1 drop-off •Parking requirement may be reduced according to the space for every 10 clients cared for. space for every 10 clients cared for. Shared Parking Standard, Article 4, Table 5. • Parking requirement may be reduced according to the • Parking requirement may be reduced according to the •Minimum of 1 Bicycle Rack Space for every 20 vehicular Shared Parking Standard, Article 4, Table 5. Shared Parking Standard, Article 4, Table 5. spaces required. • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Minimum of 1 Bicycle Rack Space for every 20 vehicular • Except for sites within 500 feet of an ungated T3 Transect spaces required. spaces required. Zone, the parking ratio may be reduced within a TOD • Except for sites within 500 feet of an ungated T3 Transect • Except for sites within 500 feet of an ungated T3 Transect area or within a Transit Corridor area by up to thirty Zone, the parking ratio may be reduced within a TOD Zone, the parking ratio may be reduced within a TOD percent (30%) by process of Waiver; by up to fifty percent area or within a Transit Corridor area by up to thirty area or within a Transit Corridor area by up to thirty (50%) by process of Waiver and payment into a transit percent (30%) by process of Waiver; by up to fifty percent percent (30%) by process of Waiver; by up to fifty percent enhancement Trust Fund, as established by Chapter 35 (50%) by process of Waiver and payment into a transit (50%) by process of Waiver and payment into a transit of the City Code; or by one hundred percent (100%) for enhancement Trust Fund, as established by Chapter 35 enhancement Trust Fund, as established by Chapter 35 any Structure with a Floor Area of ten thousand (10,000) of the City Code; or by one hundred percent (100%) for of the City Code; or by one hundred percent (100%) for square feet or less. any Structure with a Floor Area of ten thousand (10,000) any Structure with a Floor Area of ten thousand (10,000) •Loading -See Article 4, Table 5 square feet or less. square feet or less. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3. • Loading - See Article 4, Table 5 • Loading - See Article 4, Table 5 IV.20 MIAMI 21 AS ADOPTED - JANUARY 2018 ARTICLE 4. DIAGRAM 9 RESIDENTIAL DENSITY INCREASE AREAS REFER TO MIAMI COMPREHENSIVE NEIGHBORHOOD PLAN Note: The Official Miami 21 Residential Density Increase Areas Diagram is maintained in the Office of the City Clerk. I�I��I=_v�❑❑�_=�@9❑iU Ili•-_� �ois�!❑®AIL �a�ir.■� III LliNj III■=I� - ae°� :x' ❑❑❑ D❑ono ❑Old :3�"�"IIII: MHND" I 1II�IIIR�❑ I'�II���� i ]uIIII IIIII I a nnn ❑ — ■l■■1:II:I■:■NN I wemu in, ■ rxn• - ill' .9��II�'i ll xn rind IS I I II III ! �f h IIG� ■�7/FII� �I i FP 414 -0 MISS �■- :n■ I■ ■ ■ II■,,ll�1yy�� lib �e INI I■i III■II MEN :11: Yf 11'■1111111 N� IR AO El TN El I RR 1"i iiii III 111i ElI III NR;11-IIIIII1I1�IIIC Wit II N RIo RRR�- u I I �. iNlll� Fi F1 ilo ❑1 x IIIIIANI:I II,i I 1 Al AR IIIIIIIIIII♦!! I I lM i nrom, m a !• NIA MBE luK-rin! 11: _• EMMIIu En Lail OM ,moraMimM 11 IPA rie Wraps ®' ice' OMNI 500 units/acre SOUTH EAST OVERTOWN 300 units/acre PARK WEST 500 units/acre CBD 1,000 units/acre RIVER QUADRANT 500 units/acre LITTLE HAVANA 200 units/acre BRICKELL 500 units/acre IV.31 National Flood Hazard Layer FI RMette FEMA Legend 80°11'45"W 25°46'42"N 120650� • LWEAE (EL119`Feet) LDMR 15-04_9'564$ eft. 3122i2O16 ,(EL 11 Feet) Lf)."6 IE (EL 13Feet) 0 250 500 Feet 1,000 1,500 2,000 Basemap: USGS National Map: Orthoimagery: Data refreshed October, 2020 •■� iTol p. LOMR�1 I�-} 1 e 4ia t {'E12- . •EL ' 4 fEL'12 FeEL 12O86CO316L eft 9/1.1/2OO9 Zone AlE (EL 12 Feet) 80°11'7"W 25°46'10"N 1:6,000 SEE FIS REPORT FOR DETAILED LEGEND AND INDEX MAP FOR FIRM PANEL LAYOUT SPECIAL FLOOD HAZARD AREAS Without Base Flood Elevation (BFE) Zone A, V, A99 With BFE or Depth ZoneAE, AO, AH, VE, AR Regulatory Floodway OTHER AREAS OF FLOOD HAZARD OTHER AREAS GENERAL STRUCTURES OTHER FEATURES MAP PANELS 9 0.2% Annual Chance Flood Hazard, Areas of 1% annual chance flood with average depth less than one foot or with drainage areas of less than one square mile zonex Future Conditions 1% Annual Chance Flood Hazard zonex Area with Reduced Flood Risk due to Levee. See Notes. zonex Area with Flood Risk due to Leveezone D NO SCREEN Area of Minimal Flood Hazard Effective LOMRs Area of Undetermined Flood Hazard - — - - Channel, Culvert, or Storm Sewer i I I 1 I I 1 Levee, Dike, or Floodwall D 20.2 Cross Sections with 1% Annual Chance 77.5 Water Surface Elevation 8 — — — Coastal Transect r- - Base Flood Elevation Line (BFE) Limit of Study Jurisdiction Boundary Coastal Transect Baseline Profile Baseline Hydrographic Feature Digital Data Available No Digital Data Available Unmapped N The pin displayed on the map is an approximate point selected by the user and does not represent an authoritative property location. This map complies with FEMA's standards for the use of digital flood maps if it is not void as described below. The basemap shown complies with FEMA's basemap accuracy standards The flood hazard information is derived directly from the authoritative NFHL web services provided by FEMA. This map was exported on 1/3/2023 at 3:13 PM and does not reflect changes or amendments subsequent to this date and time. The NFHL and effective information may change or become superseded by new data overtime. This map image is void if the one or more of the following map elements do not appear: basemap imagery, flood zone labels, legend, scale bar, map creation date, community identifiers, FIRM panel number, and FIRM effective date. Map images for unmapped and unmodernized areas cannot be used for regulatory purposes. 10/05/2023 City of Miami REQUEST FOR APPRAISAL QUOTE You are invited to submit a quote to prepare an appraisal report based on the Appraisal Assignment attached herewith as Exhibit "A". Please complete the information requested at the bottom of this page. The quote and below information must be received by the Department of Real Estate and Asset Management by 5:00 p.m., Tuesday, October 10, 2023. You may submit your proposal via email or by mail to: Ashley McGregor Special Projects Assistant Department of Real Estate and Asset Management City of Miami 444 SW 2 Avenue, 31.d Floor Miami, FL 33130 (305) 416-1426 amcgregor@miamigov.com PRIMARY ADDRESS FOLIO JOB No. 20 SE 2 AVE 10SE2AVE 8 SE 2 AVE 176 E FLAGLER ST 168 E FLAGLER ST 166E FLAGLER ST 01-0112-010-1010 L-10-24-001 Fees: Comprehensive total fee to perform appraisal/s: Hourly fee in the event expert testimony is required: Time to complete report (number of calendar days): Appraisal Company: The Urban Group, Inc. Telephone/Extension: 954-522-6226 Cell: 954-270-2680 By: Robert D. Miller, VP Sign: lc/ Date: 10/9/2023 Page 1 of 6 $ 7,875.00 $ 7,875.00 200.00 :3{1 Days after POS Issued 10/05/2023 City of Miami EXHIBIT "A" APPRAISAL ASSIGNMENT Job Number: L-10-24-001 Fiscal Year: 2023-24 Location: 20 SE 2 AVE, 10 SE 2 AVE, 8 SE 2 AVE, 176 E FLAGLER ST, 168 E FLAGLER ST, 166 E FLAGLER ST (collectively, the "Property") Folio No: 01-0112-010-1010 Lot Size: 21,477 Sq. Ft. Living Area: N/A Improvements: Historic theater with individual ground level commercial space. Purpose of Appraisal: To provide an opinion on the estimated market value for base rent and percentage rent, including a highest and best use analysis. Property Rights Appraised: Revocable License Agreements Current Zoning: T6-80-0 Type of Appraisal: Narrative Appraisal Report Time to Complete: The appraisal report must be completed no later than thirty (30) days after authorization. Number of bound copies: Four (signed and certified), and electronic copy. City Contact Person: Ashley McGregor Special Projects Assistant T: (305) 416-1426 E-mail: amcgregor@rniamigov.com Resolution Reference: N/A Date of the Valuation: The date of the report must be the date that it is completed and transmitted, not the commencement date of initial draft received. Fee: Full payment upon completion of the assignment, subject to revisions by the City of Miami and any other review appraiser should there be any discrepancies in the appraisal reports. Page 2 of 6 10/05/2023 City of Miami THE APPRAISAL REPORT SHOULD INCLUDE THE FOLLOWING: I. The appraisal report shall be performed in compliance with the professional services agreement with the City for appraisal services as applicable. 2. The appraisal report must consider all three approaches to value and provide an explanation to the weight given to each approach in arriving at the final reconciliation of value. In the event an approach is not used, please provide justification. Please provide evidence for not using the Cost Approach. 3. In calculating the Market Data, the appraiser should analyze and provide current local market data and submit adjustment tables of comparable. 4. If utilizing a Land Sales Comparable Table to calculate Sales Price per Square Foot, please provide line item adjustments in a matrix format for a better understanding of the Summary and Land Value Correlation conclusion. 5. Provide source and proof of capitalization rate for the income approach to value in local market versus other market when applicable. 6. Provide Market Data as if taxable property. 7. The appraisal report should be in compliance with the current Uniform Standard of Professional Appraisal Practice (USPAP) according to Section 475, Part II, of the Florida Statutes. The City of Miami reserves the right to review the appraisal report and submit its comments. The final report will be due five days aver the appraisal is reviewed by City's staff. Note: All calculations must be explicit. Show all steps used to arrive at any conclusions provided. All data in this sheet must be verified by the appraiser, if any discrepancy, please call this office at 305-416-1476. NOTE: When sending a quote, your company must comply with the completion due date. If selected, your company must provide a Certificate of Insurance in the manner prescribed in Exhibit "B" below. Page 3 of 6 10/05/2023 City of Miami EXHIBIT "B" INSURANCE REQUIREMENTS (I) Commercial General Liability (Primary & Non Contributory) A. Limits of Liability Bodily Injury and Property Damage Liability Each Occurrence $1,000,000 General Aggregate Limit $2,000,000 Products/Completed Operations $1,000,000 Personal and Advertising Injury $1,000,000 B. Endorsements Required City of Miami included as an additional insured Contingent Liability (Independent Contractors Coverage) Contractual Liability Premises & Operations Liability Primary Insurance Clause (H) Business Automobile Liability A. Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit Any Auto/Owned Autos/Scheduled Including Hired, Borrowed or Non -Owned Autos Any One Accident $ 1,000,000 B. Endorsements Required City of Miami included as an Additional Insured (III) Worker's Compensation A. Limits of Liability Statutory -State of Florida Waiver of subrogation (IV) Employer's Liability A. Limits of Liability $100,000 for bodily injury caused by an accident, each accident. $100,000 for bodily injury caused by disease, each employee $500,000 for bodily injury caused by disease, policy limit (V) Professional Liability/Error's & Omissions A. Limits of Liability Combined Single Limit Each Claim $1,000,000 General Aggregate Limit $1,000,000 Page 4 of 6 10/05/2023 City of Miami Retro Date Included BINDERS ARE UNACCEPTABLE. The above policies shall provide the City of Miami with written notice of cancellation or material change from the insurer in accordance to policy provisions. Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all insurance policies required above, and must meet the following requirements: The company must be rated no less than "A-" as to management, and no less than "Class V" as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies and for certificates of insurance are subject to review and verification by Risk Management prior to insurance approval. Certificates will indicate no modification or change in insurance shall be made without thirty (30) days written advance notice to the certificate holder. The Bidder shall be responsible for assuring that the insurance certificates required in conjunction with this Section remain in force for the duration of the contractual period; including any and all option terms that may be granted to the Bidder. In the event that expired certificates are not replaced with new or renewed certificates which cover the contractual period, the City shall have the option to: (1) Suspend the contract until such time as the new or renewed certificates are received by the City in the manner prescribed in the Request for Appraisals Quote; or (2) The City may, at its sole discretion, terminate this contract for cause and seek re -procurement damages from the Bidder in conjunction with the General and Special Terms and Conditions of the Bid. The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the bidder. Compliance with the foregoing requirements shall not relieve the bidder of his liability and obligation under this section or under any other section of this Agreement. Page 5 of 6 10/05/2023 PROPERTY iiIFORICIDON Toles 01.0112-010.101I sfaaaabirc,: C13YCI IfrM 1:911TH%1(121 PB B.a1 Bsoprt,M2reea )11 L1,L4,SLC0.53 Qecer CrC4ILUF ({H CTFLO • [eF_•Ck3 CRECAOLn V_a JMc. f Ua 5N 2,CY'4 necia f� P.:4-4r7 lane 3431 COVV .CIAL F+1rwv L.M UM 12:4 a1+i01/5[ STC.L 17^OCNIVL_ llim LEL• Fr. c•-niC ®Mel BA*. Ifni 3/2,910 Ehnen 3hrr£ urn€ r) W es E3$53 `CFt Lnv0/efa HISS 5G ff 4 Ikd luu 37.513 xi€ Lot She 21.477 S43 Yeaf Beds 1'v15 EXHIBIT "C" SUBJECT PROPERTY Page 6 of 6 City of Miami / A� o® CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) 06/01/2023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Fortun Insurance LLC 1000 E Broward Blvd. Ft Lauderdale FL 33301 CONTACT Tina Lietz NAME: PHONE o, Ext): (954) 828-9948 FAX No): (954) 828-9949 E-MAIL tina.lietz@fortuninsurance.com ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC # INSURER A: Rockingham Casualty Company 42595 INSURED The Urban Group, Inc. 150 SE 12th Street Suite 100 Fort Lauderdale FL 33316 INSURER B : Lloyds of London INSURER C: Insurance Company of the West 27847 INSURER D : Insurance Company of the West 27847 INSURER E : Old Republic 40444 INSURER F : Republic -Vanguard COVERAGES CERTIFICATE NUMBER: 2023-24-- REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD SUBR WVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS A X COMMERCIAL GENERAL LIABILITY Y RFLF216472-03 06/01/2023 06/01/2024 EACH OCCURRENCEDAMAGE $ 1,000,000 CLAIMS -MADE X OCCUR TO RETED PREMISES (Ea occurrence) $ 100,000 MED EXP (Any one person) $ 5,000 PERSONAL &ADV INJURY $ 1,000,000 GENIIAGGREGATE P POLICY OTHER: LIMIT APPLIES JECT PRO PER: LOC GENERAL AGGREGATE $ 2,000,000 PRODUCTS -COMP/OPAGG $ 2,000,000 $ F AUTOMOBILE XHIRED LIABILITY ANY AUTO OWNED AUTOS ONLY AUTOS ONLY �/ /• SCHEDULED AUTOS NON -OWNED AUTOS ONLY Y CNO6290729-00 09/14/2023 06/01/2024 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ BODILYINJURY(Peraccident) $ PROPERTY DAMAGE (Per accident) $ $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED RETENTION $ $ O WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y / N Y N /A WFL 5060840 02 06/01/2023 06/01/2024 X SPER TATUTE X EOTH E.L. EACH ACCIDENT 1 ,000, 000 $ E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E.L. DISEASE - POLICY LIMIT 1000,000 $ , B Professional Liability - Claims Made Retro Date 12/15/2009 MLP1570978-23 07/01/2023 06/01/2024 Limit per Claim Aggregate Limit Deductible $2,000,000 $2,000,000 $10,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) E: ERISA BOND - $75k Limit Certificate holder is included as additional insured with respect to General Liability Insurance and Auto Insurance. This insurance is primary & non-contributory. CERTIFICATE HOLDER CANCELLATION I City of Miami c/o Procurement Department 444 SW 2nd Avenue, 6th Floor Miami FL 33130 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Olympia Theater 23-341-02 GLOSSARY OF VALUATION TERMS Term Definition Source Air Rights The right to undisturbed use and control of designated air Appraisal Institute, The space above a specific land area within stated elevations. Dictionary of Real Air rights may be acquired to construct a building above Estate Appraisal, 7th the land or building of another or to protect the light and Ed. (Chicago: Appraisal air of an existing or proposed structure on an adjoining Institute, 2022) lot. Air rights do not always include development rights. 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 Investment A technique in which the capitalization rates attributable Appraisal Institute, The to components of an investment are weighted and Dictionary of Real combined to derive a weighted -average rate attributable Estate Appraisal, 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 Appraisal Institute, The (DCR = NOI/IM), which measures the relative ability of a Dictionary of Real property to meet its debt service out of net operating Estate Appraisal, 7th income; also called debt service coverage ratio (DSCR). A Ed. (Chicago: Appraisal larger DCR typically indicates a greater ability for a Institute, 2022) property to withstand a reduction of income, providing an improved safety margin for a lender. Deferred Maintenance Items of wear and tear on a property that should be fixed Appraisal Institute, The now to protect the value or income -producing ability of Dictionary of Real the property, such as a broken window, a dead tree, a leak Estate Appraisal, 7th in the roof, or a faulty roof that must be completely Ed. (Chicago: Appraisal replaced. These items are almost always curable. Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Olympia Theater 23-341-02 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 Appraisal Institute, The amount an entrepreneur received for his or her Dictionary of Real contribution to a past project to compensate for Estate Appraisal, 7th his or her time, effort, knowledge, and risk; the Ed. (Chicago: Appraisal difference between the total cost of a property Institute, 2022) (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. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Olympia Theater 23-341-02 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 Olympia Theater 23-341-02 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 Olympia Theater 23-341-02 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 A condition, directly related to a specific assignment, Uniform Standards of Condition which is contrary to what is known by the appraiser to Professional Appraisal exist on the effective date of the assignment results, but Practice 2020-2021 Ed. is used for the purpose of analysis. (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 The annualized yield rate or rate of return on capital that Appraisal Institute, The Return (IRR) is generated within an investment or portfolio over a Dictionary of Real period of ownership. Alternatively, the indicated return Estate Appraisal, 7th on capital associated with a projected or pro forma Ed. (Chicago: Appraisal income stream. Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING Olympia Theater 23-341-02 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 for a 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 Olympia Theater 23-341-02 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 Olympia Theater 23-341-02 GLOSSARY OF VALUATION TERMS Term Definition Source Overall Capitalization Rate (Ro) The relationship between a single year's net operating income expectancy and the total property price or value (Ro = to /Vo). Appraisal Institute, The Dictionary of Real 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 valuation of a property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value —as completed— reflects the property's market value as of the time that development is expected to be completed. The prospective market value —as stabilized— reflects the property's market value as of the time the property is projected to achieve stabilized occupancy. For an income -producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. (See USPAP Statement 4* and Advisory Opinion 17.) (Interagency Appraisal and Evaluation Guidelines) Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. 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 Olympia Theater 23-341-02 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 effective date of the appraisal, a duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Residual Capitalization Rate (RN) An overall capitalization rate used to estimate the resale price of a property; usually applied to the anticipated stabilized income for the year beyond the holding period; also called terminal capitalization rate. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion." Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) 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 Olympia Theater 23-341-02 GLOSSARY OF VALUATION TERMS Term Definition Source Sum of the Retail Values The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. 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. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. Appraisal Institute, The Dictionary of Real Estate Appraisal, 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). University of Texas - Austin, Texas Bachelor of Business Administration FORMAL EDUCATION PROFESSIONAL AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser No. RZ 426 Georgia State -Certified General Real Property Appraiser No. CG 1855 Appraisal Institute, Designated Member No. 6949 Royal Institution of Chartered Surveyors No. 6329062 CURRENT RESPONSIBILITIES Responsibilities include the preparation and direction of a variety of full narrative real estate appraisals and consulting studies prepared on a national basis. Mr. Allen supervises all staff appraisers and consultants and directs all major assignments throughout the southeastern United States and the Caribbean. APPRAISAL EXPERIENCE Mr. Allen has prepared and directed numerous appraisal and consulting assignments which include mixed - use properties, multifamily developments, proposed and existing condominiums and conversions, 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 Melanie S. Griffin, Secretary DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISE PROVISIONS OF CHAPTER R HEREIN IS CERTIFIED UNDER THE 475, FLORIDA STATUTES D EUGENE 5201 BLUE LAGOON DRIVE SUITE 270 LICENSE NU EXPIRATION DATE: Always verify Ilcenses online Do not alter this do This is your license. It is unlawful for anyone MBER: RZ426 NOVEMBER 30, 2024 at MyFloridaLicense.com cument in any form. other than the licensee to use this document. cnaa r JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS OF THE APPRAISER PABLO CAMILO CASTANEDA Mr. Castaneda is a State -registered trainee 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 State University —Tallahassee, FL Bachelor of Science in Real Estate Florida State University —Tallahassee, FL Bachelor of Science in Marketing REAL ESTATE AND APPRAISAL EDUCATION Course Name Provider Real Estate Principles Real Estate Law Real Estate Finance Real Estate Appraisal Real Estate Property Management Real Estate Capital Markets Sales Comparison Approach Highest and Best Use Cost Approach Income Approach Florida State University Florida State University Florida State University Florida State University Florida State University Florida State University Florida State University Florida State University Florida State University Florida State University PROFESSIONAL AFFILIATIONS Affiliation Number Florida - State -registered trainee real estate appraiser No. R125120 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 Ron DeSantis, Governor STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Melanie S. Griffin, Secretary dkd r FLORIDA REAL ESTATE APPRAISAL BD THE REGISTERED TRAINEE APPRAISER HEREIN HAS REGISTERED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES CASTAN EDA, PABLO CAM I LO 11100NW37ST SUNRISES � FL 33351 A • ril.q i > LICENSE NUMBER: RI25120 EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online at MyFloridaLicense.com 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