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HomeMy WebLinkAboutCRA-R-17-0020 Backup DocumentAPPRAISAL REPORT HISTORIC CITIZEN BANK BUILDING 1367 North Miami Avenue Miami, Miami -Dade County, Florida 33132 CBRE, Inc. File No. 1 7-397M1-051 8-1 Jason Walker Executive Director OMNI / MIDTOWN CRA 1401 North Miami Avenue, 2nd Floor Miami, Florida 33136 www.cbre.com/vat uation CBRE VALUATION & ADVISORY SERVICES CBRE 777 Brickell Avenue, Suite 910 Miami, FL 33131 T (305) 381-6472 www.cbre.com March 28, 2017 Jason Walker Executive Director OMNI / MIDTOWN CRA 1401 North Miami Avenue, 2nd Floor Miami, Florida 33136 RE: Appraisal of Historic Citizen Bank Building 1367 North Miami Avenue Miami, Miami -Dade County, Florida 33132 CBRE, Inc. File No. 17-397M1-0518-1 Dear Mr. Walker: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 14,820-square foot, 1 & 2-story, vacant bank building located at 1367 North Miami Avenue in Miami, Florida. The improvements were constructed in 1924 and are situated on a 0.24-acre, high density mixed -use zoned site within the Media & Entertainment District and within the OMNI CRA in downtown Miami. The subject is more fully described, legally and physically, within the enclosed report. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised As Is Fee Simple Estate Date of Value March 22, 2017 Value Conclusion $4,500,000 Compiled by CBRE The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. © 2017 CBRE, Inc. Jason Walker March 28, 2017 Page 2 The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non -intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Stuart J. Lieberman, MAI Vice President Cert Gen RZ1074 www.cbre.com/stuart.lieberman Phone: (305) 381-6472 Fax: (305) 381-6441 Email: stuadiieberman@cbre.com James E. Agner, MAI, AI-GRS, SGA, MRICS Senior Managing Director — Florida/Caribbean Cert Gen RZ382 www.cbre.com/james.agner Phone: (305) 381-6480 Fax: (305) 381-6441 Email: ames.agner@cbre.com © 2017 CBRE, Inc. CBRE Certification Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. 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. 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida. 8. 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. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10.As of the date of this report, Stuart J. Lieberman, MAI and James E. Agner, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 11. Stuart J. Lieberman, MAI has and James E. Agner, MAI has not made a personal inspection of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the persons signing this report. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Stuart J. Lieberman, MAI and James E. Agner, MAI have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. C/2f Stuart J. Lieberman, MAI James E. Agner, MAI, AI-GRS, SGA, MRICS Cert Gen RZ1074 Cert Gen RZ382 2017 CBRE„nc CBRE Subject Photographs Subject Photographs Historic Citizens Bank Building 1367 North Mimi Avenue. Mimi, FL !Aerial View 1 ii ©2017 CBRE inc. CBRE Subject Photographs Photo 1 - Front View From N. Miami Ave. Photo 3 - 1st Floor View of Vacant Bank Photo 5 - 15' Floor View of Vacant Bank Photo 2 - Side View From NE 14'h Street Photo 4 - Vacant Building #2 Photo 6 - 15' Floor View of Vacant Bank © 2017 CBRE, Inc. CBRE Subject Photographs Photo 7 - 2' Floor View of Vacant Bank Photo 9 - View South Along N. Miami Ave. Photo 8 - 2' Floor View of Vacant Bank Photo 10 - View East Along NE 14th Street © 2017 CBRE, Inc. iv CBRE Executive Summary Executive Summary Property Name Location Highest and Best Use As If Vacant As Improved Property Rights Appraised Date of Report Date of Inspection Estimated Exposure Time Estimated Marketing Time Land Area Zoning Improvements Property Type Number of Buildings Number of Stories Gross Building Area Net Rentable Area Year Built Condition Buyer Profile VALUATION Land Value As If Vacant Market Value As Is On Cost Approach Sales Comparison Approach Income Capitalization Approach Insurable Value March 22, 2017 Historic Citizen Bank Building 1367 North Miami Avenue, Miami, Miami -Dade County, Florida 33132 Mixed -use residential/retail, restaurant, bar/lounge/entertainment and/or hotel Renovate & repurpose to restaurant/bar and entertainment use, or redevelop with mixed -use residential/tower and/or renovate with residential & hotel tower overbuild Fee Simple Estate March 28, 2017 March 22, 2017 6 to 9 Months 6 to 9 Months 0.24 AC 10,637 SF T6-24 0, Urban Core Transect Zone Office 2 1 & 2 14,820 SF 14,820 SF 1924 Poor Investor -Local (Mixed Use) Total Per SF $4,250,000 $399.56 $4,525,000 $4,500,000 Not Applicable $2,075,000 $305.33 $303.64 $140.01 CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Date of Value Value As Is Fee Simple Estate March 22, 2017 $4,500,000 Compiled by CBRE CBRE © 2017 CBRE, Inc. Executive Summary STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities • The subject building facade is historically relevant and may be eligible for Certificate of Transfer of Development Rights (TDRs). • The subject is located along a highly visible, gateway corner of NE 14th Street and N. Miami Avenue within the Media & Entertainment District (MED). • The MED district is within close proximity and walkable distance to the Adrienne Arsht Performing Arts Center, Museum Park, Bayside Marketplace, American Airlines Arena, PortMiami, Biscayne Bay and the downtown Miami central business district (CBD). • The downtown Miami CBD is transitioning into a 24/7 work/live urban center. • Long term outlook and population growth for the downtown Miami CBD is very positive, including Port Miami growth from the Panama Canal expansion and new residential & hotel towers recently delivered, under construction and proposed. • New project cancellations, developer partnership dissolutions and self-regulating market conditions is off -setting some of the overbuild and "bubble" conditions. Weaknesses/ Threats • Substantial capital resources and expertise are necessary to physically restore and maintain the subject property as a viable investment. EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as "an assumption directly related to a specific assignment, as of the effective date of the assignment results, which if found to be false, could alter the appraiser's opinions or conclusions." • The subject property may be recognized as a Locally Designated Historic Resource and could be eligible for a Certificate of Transfer of Development Rights (TDRs). However, if TDRs are ever secured and transferred off -site, then any contributory value of TDRs cannot be attributed to the subject property interest and our market value conclusions would be impacted. • We requested, but did not receive any notice of the 40-year recertification nor any mechanical, electrical, plumbing, structural, roof or environmental assessments. Our value estimates and conclusions assume mechanical & structural integrity sufficient for renovations & repurpose, and no environmental concerns. • The use of these extraordinary assumptions may have affected the assignment results. HYPOTHETICAL CONDITIONS A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis." 2 • None noted 1 The Appraisal Foundation, USPAP, 2016-2017 ed., 3. 2 The Appraisal Foundation, USPAP, 2016-2017 ed., 3. © 2017 CBRE, Inc. vi CBRE Table of Contents Table of Contents Certification i Subject Photographs ii Executive Summary v Table of Contents vii Introduction 1 Area Analysis 4 Neighborhood Analysis 7 Site Analysis 25 Improvements Analysis 28 Zoning 30 Tax and Assessment Data 33 Market Analysis 35 Highest and Best Use 40 Appraisal Methodology 42 Land Value 43 Cost Approach 48 Insurable Value 52 Sales Comparison Approach 54 Reconciliation of Value 59 Assumptions and Limiting Conditions 60 ADDENDA A Land Sale Data Sheets B Improved Sale Data Sheets C Legal Description D Precis METRO Report - Economy.com, Inc. E Client Contract Information F Qualifications vii © 2017 CBRE, Inc. CBRE Introduction Introduction OWNERSHIP AND PROPERTY HISTORY Title to the property is currently vested in the name of Big Time Equipment, Inc., who acquired title to the property in January 1998, as improved for $215,000, as recorded in Official Record Book 17965, at Page 2470 of the Miami -Dade County Public Records. This prior sale transaction of the subject appears to have been arm's length and reasonable based upon market conditions at time of sale and interviews with the current owner, Eugene Rodriquez. The current owner utilizes the property as a film set and for storage. Based upon discussions with the owner and subscription data sources, the subject was listed "for sale" in October 2016 at a list price of $7,000,000, and went into contract at $5,500,000 to a developer who was considering a concept residential tower over build on top of the existing bank building. The property fell out of contract and as of the effective date of this appraisal, is reported to be "in -contract" with the Omni CRA at a purchase price of $5,500,000. However, we requested a copy of the purchase contract and none was provided for our review. It would also appear the $5,500,000 contract price is above our market value estimate as will be further presented and explained in this report. INTENDED USE OF REPORT This appraisal is to be used by the client for internal decision making and acquisition negotiations, and no other use is permitted. INTENDED USER OF REPORT This appraisal is to be used by the directors of the Omni CRA, and no other user may rely on our report unless as specifically indicated in the report. Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser's responsibility is to the intended users identified in the report, not to all readers of the appraisal report.' PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property. 3 Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50. 2017 CBRE nc CBRE Introduction DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 INTEREST APPRAISED The value estimated represents fee simple estate and defined as follows: 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.' SCOPE OF WORK This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied. CBRE, Inc. completed the following steps for this assignment: Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor's records • legal description 4 Interagency Appraisal and Evaluation Guidelines; December 10, 201 0, Federal Register, Volume 75 Number 237, Page 77472. 5 D• ictionary of Real Estate Appraisal, 78. 2017 CBRE, Inc 2 CBRE Introduction Extent to Which the Property is Inspected The extent of the inspection included the following: building interiors, exterior areas and surrounding environs. Type and Extent of the Data Researched CBRE reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • income and expense data • comparable sale & listing data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Size Improved Data Building Area No. Bldgs. Parking Spaces Year Built/Developed Economic Data Deferred Maintenance: Building Costs: Income Data: Expense Data: Other Active Listing Legal description, survey and Miami -Dade County Property Appraiser's website "As built" survey, owners marketing materials and Miami -Dade County Property Appraiser's website Survey and observations None Public records Visual observations Not applicable Market data Market data Market and subscription data Compiled by CBRE 3 © 2017 CBRE, Inc. CBRE Area Analysis Area Analysis BR OWARD FLORIDA Trit Glades ange uoopenown US Army Reservation(CI Everglades National Park ke LLcern Car • City Palm Sp NoHh Vanderb t Park waterll` s7z ami rsity niv Park Olymp a Heigh eight, unset Miami" Lakes Bunche P rk Opa-Locka OleN ay -.rden Alrp6H* °ept(L cke- 8 aa1 'Palm gl Springs I can glean tares ster 1 Wa oral les rn Inter orland .olden Beach ®• Sunny Isles h M'- ' =each ian1i 0 Harbr 8Y olNiamir_ or -.�a22 lantle Indian Creek Village North Bay Village Subject Property 1367 N Miami Ave Miami, FL 33136 sit e BI fi G�OcAaaGl ew Heights Miami Biscayne Bay Biscayne Sunrise Bay Aquatic Harbor Preserve Biscayne N.P. el Harbour Surfside ami Beach vugede Key Key Biscayne Key Biscayne Atlantic Ocean Moody's Economy.com provides the following Miami -Miami Beach -Kendall, FL metro area economic summary as of November 2016. The full Moody's Economy.com report is presented in the Addenda. MIAMI-MIAMI BEACH-KENDALL, FL - ECONOMIC INDICATORS Indicators 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Gross Metro Product (C$B) 104.1 104.4 106.3 108.4 111.1 113.8 115.9 121.3 127.0 132.2 136.5 141.0 % Change -0.5 0.2 1.8 2.0 2.5 2.4 1.9 4.6 4.8 4. 1 3.2 3.3 Total Employment (Ths) 985.1 1,007.3 1,031.3 1,056.7 1,089.4 1,123.4 1,140.3 1,162.1 1,185.1 1,207.9 1,221.3 1,226.4 % Change -0.3 2.2 2.4 2.5 3.1 3.1 1.5 1.9 2.0 1.9 1.1 0.4 Unemployment Rate (%) 11.1 9.4 8.4 7.6 6.9 6.1 5.3 4.6 3.9 3.4 3.4 3.8 Personal Income Growth (%) 8.9 4.6 3.2 -0.4 6.8 6.2 4.9 6.0 7.4 7.0 5.7 5.2 Median Household Income ($ Ths) 42.0 41.7 42.0 42.4 42.9 43.8 45.3 47.0 49.2 51.3 53.0 54.5 Population (Ths) 2,508.2 2,580.1 2,611.2 2,641.9 2,668.9 2,693.1 2,728.7 2,767.0 2,806.8 2,847.1 2,887.5 2,926.6 % Change 1.8 2.9 1.2 1.2 1.0 0.9 1.3 1.4 1.4 1.4 1.4 1.4 Net Migration (000) 30.6 58.8 17.9 17.4 16.2 11.1 24.7 27.6 29.1 29.7 29.9 28.8 Single -Family Permits 941.0 962.0 1,819.0 2,266.0 2,077.0 2,800.0 3,267.6 5,298.0 6,867.8 7,585.0 7,138.9 6,917.3 Multifamily Permits 2,262.0 1,656.0 3,250.0 8,050.0 5,654.0 9,817.0 4,973.5 6,472.5 7,575.4 6,650.1 5,804.8 6,232.1 Fhfa House Price (199501=100) 195.7 183.0 185.9 207.7 233.6 257.4 282.1 296.0 298.0 289.5 282.1 279.7 Source: Moody's Economy.com RECENT PERFORMANCE Miami -Miami Beach -Kendall is not faring as well as the rest of Florida and the nation, but economic growth in the metro division has picked up since the first quarter. Miami -Miami Beach- Kendall's unemployment rate is no longer falling, but this has more to do with a turn up in the labor force than a worsening in employment. A more favorable mix of job creation and limited 4 2017 C8R6 ins CBRE Area Analysis supply of labor are driving up pay; average hourly earnings are rocketing higher. The more than 6% annualized gain since April is the biggest jump for any six-month period since the decade began. More jobs and income are helping housing. According to the Miami Association of Realtors, the median sale price for a single-family home is $300,000, the highest level since the Great Recession. INTERNATIONAL APPEAL MIA's economy will grow faster than the nation's because the metro division attracts some of the most talented and productive workers from across the Western Hemisphere. MIA is the only metro area or metro division in the U.S. where more than half of the population was born in a foreign country, and more than 90% of these newcomers were born in Latin America, which includes Cuba. Over the last two generations, these migrants have transformed Miami -Miami Beach - Kendall from a sleepy retiree destination to the cultural, financial and media capital of Spanish- speaking America. This growth should carry on, but hostility to trade and immigration among the American electorate and the incoming administration in Washington DC represents a new threat to MIA's economy. CRUISE CONTROL After a lackluster 2016, job growth in leisure/hospitality will accelerate next year. In particular, cruise lines are helping to fuel this growth. In the last fiscal year, the city's port welcomed 5 million passengers, a world record. The current fiscal year will be even busier than the last, as two new cruise ships will begin service from PortMiami this quarter. The port is also prepping for growth beyond this quarter -the facility recently won a $33 million state grant that will be used to build a cruise terminal capable of processing more than 5,000 cruise passengers at once. Growth in the cruise industry is also good for jobs in professional services in Miami -Miami Beach - Kendall, which is the headquarters of Carnival Corp. and Royal Caribbean Cruises Ltd., the world's two largest cruise lines. FIU Florida International University has emerged as a key driver for Miami -Miami Beach -Kendall, but it will contribute little to growth over the next five years. With an annual operating budget of more than $1 billion, the state's second largest student body, and more than 5,000 full- and part-time employees, the school is a stable source of income for many households. However, compared with other large institutions, the economic impact of FIU is muted because 41% of its enrollees are part-time students who did not migrate to Miami -Miami Beach -Kendall; despite FIU's name, its student body mostly consists of local residents. In 2005, the administration capped enrollment in favor of improving the quality of the academic programs. In addition, student growth will be hampered because of America's shrinking population of college -aged adults. According to the U.S. Census Bureau, the number of U.S. 5 2017 CBRE„nc. CBRE Area Analysis residents who are 18 to 24 years old will decline by 1.3% over the next five years. The projection is even worse for Hispanics, who account for nearly two-thirds of FIU's enrollment -the population of college -aged Hispanics will fall by 3.3% by 2021. CONCLUSION In the near term, Miami -Miami Beach -Kendall will strengthen thanks in part to its large port, which will create jobs in trade, manufacturing and tourism. Over the forecast horizon, Miami - Miami Beach-Kendall's international character, combined with its high -skilled, bilingual workforce, will help it best the U.S. in household income growth. 6 2017 CBRE, Inc CBRE Neighborhood Analysis Neighborhood Analysis ':A• G1° v BB& Mth 3. wa,lh,nal, „•• •vra s i 301h h.I ? d F m � ` r1W 4 h R Ts Miami i, llr Li3 Sal,ir•1. VYay I lard(a /.{yy q 1 [ NW ira SI L ITN •dMM NW 2nd St PyV apt St WN 131 tit Iv., 1st nw F I. 51 I: nu, SI W FlarJla Lil SW 1s1 I :1,N Bah Sl SW `!h Ni Fag eh SI i : , al sher.ande.I, .0,5 Vn ''' c . art' h{Vr enr, SI MN'7th 54 PY Nw 32nd St Na 3, h h tin. 271h S1 NLY Bth kJW 'e'1 Sr nas AI ■ In �I! Lake 1fJ sV 47,h �I >h)=0: Prr{rrh,, _ 1 rd Mi,al I:i r iharm.n Il! 0L. u! ,,ld! 1+6a1c rlamk Pi, Pinlr 1e1.s1a 9iernyce flay a luadr Pre3a ve 111 Lib il.� 52 a*' I-I',ea hlI.ml Baseh San%rim. Avlvsa FMFJ � L Waggon Park ti.nnrat larval; Wares klsnd '6 �f 9erch l'w4 eate r Gyypey phi" MamIH a ti ytdt-o?' �a •Wino Piet "'+Lr 'xfi V 6•n ],... falh S ram, 'Aar 91 NI Y®Y (stand d 71n Oa � 4"�i�7br 4 d yll •Y 9h95r . ti p, aep f gi da. no! ,iilii I-nrl,d b F,..1ll,.,r.na. 2.Ww aea ;r, thicken immlms 151.1d [sal or;abb.., /SIrtrlie:a W;ra f.aiuiNa, 4nslle Pain. PaS \leafala Kar Fisher &Ylanlfc LOCATION The subject property is located at a gateway corner of the Media & Entertainment District within the Omni CRA at the southeast intersection of North Miami Avenue & NE 14th Street in the City of Miami, Florida. This is a redeveloping neighborhood/submarket situated at the north end of the downtown Miami central business district (CBD) and boxed in by the emerging & edgy Wynwood Arts District to the north; the high-rise residential Edgewater community and Adrienne Arsht Center for the Performing Arts to the east; the massive developing WorldCenter mixed -use project to the south; and, Interstate 95 to the west. The subject location is also located just west east of Biscayne Boulevard and in close proximity to the major transportation arteries including Interstate 195, Interstate 395, Interstate 95, as well as, the Metrorail and Metromover elevated train systems. BOUNDARIES The neighborhood boundaries are detailed as follows: North: Interstate 195 (State Road 1 12) South: Miami River East: Biscayne Bay West: Interstate 1-95 7 © 2017 CBRE, Inc. CBRE Neighborhood Analysis LAND USE The subject property is also located in the central business district of the Miami Downtown Development Authority (DDA). The general boundaries for the Central Business DDA span from Interstate 95 and the Miami River on the west, east to Biscayne Bay, and from S.W./S.E. 15th Road north to N.E. 24th Street. According to current studies, the Miami DDA area comprises the following statistics: o DDA Area: 1.7 square miles o 2016 Population: 88,540 o 2016 Daytime Population: 234,976 o 2021 Projected Population: 106,429 o 27,023 Residential Units Built Since 2003 o 18.7 Million Sq. Ft. of Office Space o 7,969 Hotel Rooms In 2010, the Miami Downtown Development Authority's (Miami DDA) board of directors voted unanimously to approve the 2025 Downtown Miami Master Plan, a 15-year roadmap for enhancing the livability and quality of life in Downtown Miami. The plan is to serve as a benchmark for encouraging investment by both the public and private sectors, with the goal of transforming Miami's urban core into the "Epicenter of the Americas." The approved Master Plan combines new land use and planning guidelines, as well as outlines a number of proposed projects, some of which are already underway. The final plan is the culmination of existing studies, as well as a series of Miami DDA Board workshops, public forums, and stakeholder meetings designed to gain a better understanding of existing conditions and gather the best and most sustainable ideas for revitalizing Downtown Miami. The Master Plan outlines five core goals for Downtown Miami (bounded at the South end by SE 15th Rd. and on the North by NE 22nd St.; on the West by 1-95 and on the East by Biscayne Bay): • Enhance Downtown Miami's standing as the business and cultural epicenter of the Americas • Leverage the City's beautiful and iconic tropical waterfront • Elevate Downtown's grand boulevards to prominence • Create great streets and community spaces throughout the district In order to achieve the aforementioned goals and objectives, there economic incentives to entrepreneurs interested in local business opportunities, including the following: 8 2017 CBR0 nc CBRE Neighborhood Analysis • Tenant Improvement Grant - Funded by Miami Downtown Development Authority and the Miami -Dade Empowerment Trust, this program reimburses a new tenant business up to $23.00 per square foot for fixed interior improvements. The program is only available for existing buildings over 25 years old, excludes certain types of businesses, and requires a minimum 5-year lease. The program is available only in the Central Business District and targets the Flagler Street Corridor. Tenant and landlord apply together and applications require renderings and business plan. • CRA Building Rehabilitation Program - Funded by Miami's South East Overtown/Park West and Omni Community Redevelopment Agencies, this program assists properties and businesses with exterior improvements up to $65,000.00 with a matching grant. • New Markets Tax Credits - The New Markets Tax Credit (NMTCs) program is nationally recognized for steering low interest, private capital into distressed census tracts to capitalize hard to fund commercial and residential projects. In an effort to bring this focus on the City of Miami, the Economic Development Department created a Community Development Entity (CDE) for purposes of applying and allocating New Markets Tax Credits. • Empowerment Zone - Miami DDA and our partners offer a range of financial incentives that encourage targeted investments in targeted areas. • Enterprise Zone - As custodians for downtown, Miami DDA will help you navigate and understand the market potential of the various sub -districts as well as to identify investment/acquisition opportunities. • State & Local Incentives - The Beacon Council is responsible for facilitating the application process for financial incentives companies may qualify for in the Miami -Dade County area. As Miami -Dade County's official economic development partnership, The Beacon Council has helped to secure millions of dollars for hundreds of companies over the years. Several major projects recently completed, under construction and proposed within the Miami DDA district is highlighted as follows: • Perez Art Museum Miami (PAMM) located at 1075 Biscayne Boulevard anchors the 29- acre Museum Park (formerly Bicentennial Park) overlooking Biscayne Bay and includes gardens and sculpture installations. The programmable space is comprising 200,000-SF, of which 120,000-SF is interior and 80,000-SF is exterior. Construction commenced in January 2011 and was completed & opened by the fall 2013 with a total construction, endowment & transition budget of $220 million. 9 2017 CBRE, Inc CBRE Neighborhood Analysis • Museum Park is also the site of the Patricia & Phillip Frost Museum of Science. This 250,000 square -foot complex will be among the world's most innovative and sustainable science museums. According to Grimshaw — which received the AIA National Honor Award for its design of the Horno: Museo del Acero in Monterrey, Mexico — the Museum is intended to act as a demonstration of ecological and sustainability principles. The building harnesses energy from water, sun, wind and even museum visitors to power exhibits and conserve resources. The Museum is structured around a lushly landscaped indoor and outdoor "living core" of terrestrial and aquatic spaces, featuring a 600,000-gallon aquarium facility, a full dome 3-D planetarium, interactive exhibits, innovative technology and two additional wings of exhibition space, learning center and cafes. • Brickell Citi Centre is the $1.05 billion mixed -use development underway on 9.1-acres straddling S. Miami Avenue at S.W. 7th Street and S.W. 8th Street. The project developer, Swire Properties plans 520,000-SF of luxury retail, 800 residential condominium units, 243 hotel rooms, 93 serviced apartments and an 110,000-SF office tower in the first phase. The first phase is nearing completion with various stages opening during 2016. 10 2017 CBRE, Inc CBRE Neighborhood Analysis • The former Capital at Brickell located at 1420 S. Miami Avenue was a proposed vertical, "big box" retail center consisting of 520,000-SF of high end retail with a parking garage on 2.3 acres. However, the developer went into bankruptcy in the wake of the "great recession" and a partnership of China City Construction International Co. and American Da Tang Group acquired the site in December 2014 for $74.74 million for plus $12.0 for pilings & other considerations. The new ownership group is seeking EB-5 Regional Center status and proposing 3.2 million square feet in a mix of condos, retail, and hotel & office towers. Miami WorldCenter is underway and spans over 27-acres between NE 7th Street, north to NE 11th Street; and, NE 2nd Avenue, west to North Miami Avenue. The Miami World Center includes a dynamic mix of retail, residential, office, and institutional uses. The total project was master planned in 2008 for a total of 11 to 12 million square feet, but more recently the master developer submitted plans to the City of Miami and received zoning & master development agreement approvals for the first phase of the mixed -use project in October 2014 with site demolition completed. The firm Elkus -Manfredi Architects designed the first phase, which includes the following: • Tower 1 — Luma at Miami Worldcenter, a 429-unit luxury rental apartment building that will be developed by ZOM at the southwest corner of NE 2nd Avenue and NE 7th Street, and set a top of a parking garage podium and retail wrap along the NE 7th Street frontage. There is a second residential tower proposed for the west end of the parking podium fronting NE 1st Avenue that is approved for another 386 apartments for a second phase with shared parking garage and shared amenity deck. 11 2017 CR0» CBRE Neighborhood Analysis • Tower 2 — also known as Paramount celebrated the first ground breaking in March 2016 for a 485-unit residential condominium tower in 58-stories. Unit floor plans range from 1,180 to 2,350 square feet, with list prices averaging $1.2 million or $676-PSF. The developer, Dan Kodsi reports approximately 45 percent pre -sales as of the ground breaking. • Retail — "High Street" destination retail in collaboration with The Forbes Company and Taubman, Miami World Center will develop 450,000-SF to 1,000,000SF of pedestrian - oriented shopping streetscape in anchoring the 27-acre development. The promenade will run north and south from northeast loth street to northeast 7th street and between northeast 1st and 2nd avenues, creating a retail focal point surrounded by residential towers, a hotel and exposition center, and numerous dining and entertainment options. Forbes and Taubman will manage the leasing and marketing. Future phases include a mixed -use tower in partnership with Newgard Development with 897 apartments, 344 hotel rooms, 38,850-square feet of office space, 21,200 square feet of retail; and the Marriott Marquis Hotel and convention space in partnership with MDM Group described as follows: • Convention Center & Hotel - Marriott Marquis World Convention Center Hotel will feature approximately 1,800 rooms and 600,000 square feet of meeting, exhibition, and convention space. This hotel tower will have resort amenities, including pool deck with Biscayne Bay views and an 80,000-square-foot outdoor event deck. EDGEWATER Often called an emerging neighborhood, Edgewater, and particularly East Edgewater, is enjoying resurgence in concert with the downtown Miami central business district. The Edgewater neighborhood is surrounded by other emerging & gentrifying submarkets including Omni, 12 © 2017 CBRE, Inc. CBRE Neighborhood Analysis Wynwood, Overtown/Park West and the Design District. However, the Biscayne Bay frontage in Edgewater is driving high density, luxury residential condominium and more affordable loft and rental apartment towers. We also note the recent renovation of the Margaret Pace Park as a neighborhood & community amenity. Edgewater is also known for a mix of historic houses representing a traditional south Florida Mediterranean -style design from Miami's golden age of architecture remain. However, high density, waterfront condominium towers like Paramount Bay, Platinum, Onyx, Blue, 1800 Biscayne Plaza, Bay House, 1800 Club, and Quantum on the Bay, Bay Parc Plaza, The Crimson, Biscayne Beach, and Opera Tower are replacing the historic charm with young professional and international residents and investors. OMNI CRA/MEDIA AND ENTERTAINMENT DISTRICT (MED) The subject property is located within the Omni CRA (Community Redevelopment Agency), which is generally delineated as being bounded by Interstate 395 to the south, NW 1 s` Place to the west, NE 20th Street to the north and Biscayne Bay to the east. The Omni CRA includes portions of the Edgewater neighborhood and the Media and Entertainment District (MED), which is anchored by the Adrienne Arsht Center for the Performing Arts and the former 1.07 million square foot Omni mall. Recent accomplishments and projects underway within the Omni CRA are summarized as follows: • Creation of Margaret Pace Park • Rehab and Renovation of Historic Miami Women's Club • Funds Performing Arts Center Super Block Streetscape and debt service • Promote new construction of workplace housing in Downtown • $5 million North Bayshore Drive road improvement project • Creation of dozens of new jobs along Biscayne corridor with support of new businesses • $1 million 40-year recertification of Trinity Cathedral • Facilitated funding of $50 million for new Port of Miami Tunnel which will create hundreds of jobs within the CRA boundaries. (ongoing) • Creation of New Museum Park infrastructure • Annual funding of Arsht Performing Arts Center • Reconstruction and improvements on the 14th Street Road Project • Complete rehabilitation of the Firehouse #2 - new Omni CRA offices • Grants Programs for infrastructure improvements to City Hall Restaurant and Braman KIA Motors • Proposed purchase of the Miami Entertainment Complex (MEC), which is fully operational ND now called the VIACOM INTERNATIONAL STUDIOS, after its Operating Film and Television production firm. According to the Arsht Center website & fact sheet, Adrienne Arsht Center for the Performing Arts of Miami -Dade County is Miami -Dade County's largest -ever public/private-sector partnership, comprised of an $150 million private capital campaign conducted by the Performing Arts Center Foundation and public funding drawn primarily from the county's Convention 13 2017 CBRE, Inc CBRE Neighborhood Analysis Development Tax revenues, as well as the City of Miami Omni Redevelopment District Community Redevelopment Agency. The total project expense is $472 million. The Arsht Center was designed by world-renowned architect Cesar Pelli of Pelli Clarke Pelli Architects. The design team includes theater planning and design consultant Joshua Dachs of Fisher Dachs Associates Inc. and acoustician consultancy ARTEC Inc., both of whom have been working on the project since its inception. Situated at the cultural crossroads of the Americas and in the heart of one of the world's fastest - growing urban centers, the Adrienne Arsht Center for the Performing Arts of Miami -Dade County is one of the largest performing arts centers anywhere. Strategically located in downtown Miami, the Arsht Center occupies 570,000 square feet along historic Biscayne Boulevard between N.E. 13th and 14th Streets. Principal Components: • Ziff Ballet Opera House: 2,400 seats. • John S. and James L. Knight Concert Hall: 2,200 seats. • Carnival Studio Theater: A flexible black -box space designed for up to 300 seats. • Parker and Vann Thomson Plaza for the Arts: An outdoor social and performance space linking the two main houses across Biscayne Boulevard. • Carnival Tower: An architectural icon from one of Miami's oldest Art Deco buildings. • Peacock Education Center: A 3,500-square-foot workshop and classroom space. • Magnificent public art installations by five outstanding artists commissioned by Miami -Dade Art in Public Places. Programming and Education: • Adrienne Arsht Center Presents: A diverse group of more than 300 performances are selected and presented by the Arsht each year, organized into series. These series include Broadway in Miami, Jazz Roots, the Masterworks Season, Miami Made Festival, and the Summer Season, among others. • The Arsht's internationally acclaimed resident companies: Florida Grand Opera, Miami City Ballet, New World Symphony and America's Orchestral Academy present many of their Miami performances at the Arsht Center. • The Arsht also offers many free community -based performances and programs designed to make the performing arts as accessible to as wide an audience as possible. These include a monthly outdoor family event, a free gospel concert series, an annual volunteer service day and more. • Since its inception, the Arsht has supported South Florida artists and the creation of new work through commissions, access to artistic advice from Arsht staff and other arts professionals, and public presentations. The Arsht also collaborates with local arts presenters to support culturally and artistically diverse entertainment. • Education programs, many of which are planned with Miami -Dade Public Schools, Miami - Dade County Department of Cultural Affairs, the resident companies and community -based organizations, offer unique opportunities for young people and adults to learn about and enjoy the performing arts both in the Arsht and out in their communities. Examples include AileyCamp, which debuted in 2009, and the Learning Through the Arts program, which 14 1,2 201 C0RE inc. CBRE Neighborhood Analysis provides live music, theater and dance components via the public school system's Passport to Culture initiative. The Omni International Mall is owned by the Genting Group Resorts World Miami who acquired both the Omni Mall shortly after buying the Miami Herald site for $236 million in 2011 and later demolished the newspaper's old building. The Malaysian based gaming & resort corporation initially announced plans for a casino resort, but the Florida Legislature has resisted all efforts to expand gambling outside of pari-mutuels and tribal properties. More recently in March 201 7, Resorts World Miami filed plans for a mixed -use project to lease nearly an acre including air rights at the Adrienne Arsht Center Metromover Station and the Omni Bus Terminal for 90 years and is offering to spend $22 million in upgrades to the public transit station such as new stairs, a pedestrian bridge, elevators, escalators and flooring, the developer would build a mixed -use project. Genting's plans call for a 36-story tower, which would top the terminal station, would include 20 floors of residential units averaging 918 square feet and a 300-room hotel with rooms averaging 350 square feet, the Next Miami reported. The tower would front a "grand public plaza" and the Boulevard Shops, which are being renovated, would also be part of the project. The contract from Resorts World Miami came in response to a solicitation for proposals from the county in 2015. In addition, the Genting Group filed an application with the FAA to allow two towers of 649 feet each at the former Miami Herald site, but no plans are pending with the city besides a 50-slip mega -yacht marina. Residential Projects — Existing Developments There were a total of twenty (20) residential developments that were constructed between 2004 and 2013, indicating a total of 4,280 residential condominium units. The following chart 15 © 2017 CBRE, Inc. CBRE Neighborhood Analysis illustrates the developments that have been completed at the Omni/Edgewater or Media, Arts and Entertainment District: RESIDENTIAL DEVELOPMENTS Name of Development Year Built Numbe of Units 1800 Biscayne Plaza 2005 195 1800 Club 2008 468 23 Biscayne Bay 2013 96 Bay Lofts 2004 54 Blue 2005 330 Cite 2004 436 City 24 2007 119 Cynergi 2007 100 Gallery Art 2008 176 Moonbay 2007 61 New Wave 2006 78 Onyx 2007 118 Operat Tower 2007 635 Paramount Bay 2011 350 Parc Lofts 2005 72 Platinum 2006 119 Quantum 2008 698 Star Lofts 2007 47 Uptown Lofts 2005 66 Yorker 2005 62 Tota I 4,280 Compiled by: CBRE, Inc. Residential Projects — Under Construction/Planned/Proposed The following are the proposed and/or approved developments at the Omni/Edgewater or Media, Arts and Entertainment District: • Aria on the Bay - the project will be comprised of a 51-story tower with a total of 648 residential condominium units and 3 commercial spaces. The unit mix will consist of the one-, two-, three- and five -bedroom variety with units ranging from 757 SF to 4,803 SF. In addition, the property will have an office space with 2,737 SF, a commercial unit with 1,199 SF and a restaurant space containing 9,862 SF with a total commercial space of 13,798 SF. It is being developed by the Melo Group with a completion date in 2017. • Bay House - the project will be comprised of a 38-story residential tower with a total of 165 residential condominium units. The unit mix will consist of the two-, three- and five - bedroom variety with units ranging in size from 1,277 SF to 3,549 SF. It is being developed by the Melo Group. • Biscayne Beach — the project will be comprised of an 51-story high-rise development with 399 residential condominium units. The unit mix will consist of the one-, two-, three- and four -bedroom unit variety with the units ranging in size from 885 SF to 2,103 SF. It is being developed by Eastview Development and GTIS Partners with a completion date in 2016. 16 2017 CBRE,nc CBRE Neighborhood Analysis • The Crimson Residences at Biscayne Bay — the project will be comprised of an 18-story high-rise development with 90 residential condominium units. The unit mix will consist of the one-, two- and three -bedroom unit variety with units ranging in size from 827 SF to 1,453 SF. It is designed by IDEA Architects and will be developed by mckafka Development Group. • Icon Bay — the project will be comprised of 7- and 42-story high-rise buildings with a total of 299 residential condominium units. The unit mix will consist of the one-, two-, three, and four -bedroom unit variety ranging in size from 1,138 SF to 2,416 SF. It is being developed by the Related Group. • Ion East Condo — the project was intended to be a 36-story high-rise mixed -use development with 328 residential condominium units. The unit mix was proposed for one-, two- and three -bedroom unit variety with units ranging in size from 720 SF to 1,803 SF. In addition, the project includes office and retail space. The developer was Sakor Development, but this project has since been cancelled. • One Paraiso Condo - the project will be comprised of a 51-story tower with a total of 272 residential condominium units and ground floor commercial space. The unit mix will consist of the one-, two-, three-, four-, five- and six -bedroom variety with units ranging in size from 1,124 SF to 4,889 SF. In addition, the property will have a ground floor commercial space containing 3,000 SF and storage space containing 2,000 SF. It will be developed by the Related Group with a completion date in 2017. • Paraiso Bay Towers I & II (previously known as the Element) — the project will be comprised of two, 55-story high-rise buildings with a total of 690 residential condominium units. The unit mix will consist of the one-, two- and three -bedroom unit variety ranging in size from 1,000 SF to 2,500 SF. It will be developed by the Related Group with a completion date in 2017. • Paraiso Bayviews — the project will be comprised of a 44-story high-rise building with 388 residential and 8 commercial condominium units. The unit mix will consist of the one-, two- and three -bedroom unit variety ranging in size from 889 SF to 1,807 SF. It will be developed by the Related Group with a completion date in 201 7. • Satori Hotel Residences — the project will be comprised of a 35-story high-rise building with 207 residential condominium units. The unit mix will consist of the one-, two- and three -bedroom unit variety ranging in size from 628 SF to 1,410 SF. It will be developed by the Exclusive Trust Realty. • 26 Edgewater Condo — the project will be comprised of a 10-story high-rise building with 86 residential condominium units and 10,436 SF of ground floor commercial space. The unit mix will consist of the one- and two -bedroom unit variety ranging in size from 560 SF to 980 SF. It will be developed by Stripey Developments and 4R Development. © 2017 CBRE Inc 17 CBRE Neighborhood Analysis And, Media & Entertainment District Projects under construction as of February 2017, courtesy of Miami Downtown Authority and Integra Realty Resources (IRR), presented as follows: Name/Location 1000 Museum Au berge Canvas Total A&E oib i£4 Average Unit Price Average SI Avg. $ISF $6,937,775 5,389 $1,287 $703,463 1,203 $585 $462,200 892 $518 In addition, the Melo Group and local celebrities Gloria & Emilio Estafan are active within the MED submarket with the following projects under construction and planned: • Melody, located at 245 NE 14 Street is was recently completed as a residential rental apartment tower with ground floor retail. The project features 36-stories with 497-units, 8,500-SF of retail and parking garage with 746-spaces. • 14 Plaza/Art Plaza is an under construction residential tower with ground floor retail located at 47-67 NE 14' Street. The 1.02-acre site was assembled in 2014 for a total reported purchase price of $16.0 million or $306-PSF of land. The tower will comprise 650-rental units after a request to upzone the site was denied. • Gloria and Emilio Estefan are preparing to build a mixed -use project two blocks west of the Arsht Center, where public records reflect the acquisition of 51,140-SF at 1400 NE 1st Avenue in two separate transactions in 2000 and 2011, for a total purchase price of about $2 million. Preliminary renderings by Lesley Abravane show a parking garage podium with a mixed -use tower. Emilio Estefan reported to the Herald that the project will include a hotel, banquet halls, rooftop pool and a Bongos Restaurant. Construction will begin after the building is approved and could take several years to achieve approvals and develop. BRICKELL FINANCIAL DISTRICT The Brickell Avenue financial district commences on the south side of the Miami River to the Rickenbacker Causeway on the south, while Biscayne Boulevard and the downtown Miami central business (CBD) is the submarket to the north of the Miami River. There is a heavy concentration of Class "A," high-rise office & residential towers, and mixed -use retail, office, hotel & residential towers throughout the district, fronting Brickell Avenue and Biscayne Bay to the north of SE 15' Street. Properties south of SE 15th Road fronting on the east side of Brickell Avenue include primarily high-rise condominium apartment towers, with low-rise condominium apartment buildings, townhouses and spotted single family residences on the west side of Brickell Avenue. Properties on the east side of Brickell Avenue and north of SE l5th Road include both high-rise office and apartment/condominium towers. The area west of Brickell Avenue includes a mix of retail stores, offices, single family homes, duplexes and low to mid rise multifamily apartments, motels, automobile service facilities, storage 18 CBRE Neighborhood Analysis buildings, marine related sales and service businesses. A large number of the properties in Brickell West neighborhood are older in age ranging back to the 1920's. The older ages of the building improvements and intermixed uses have created a somewhat transitional area which is currently experiencing a wave of redevelopment, which includes demolition and redevelopment, as well as renovation of existing structures into small-scale commercial/residential uses. The mixed -use Mary Brickell Village development is located 1 block west of Brickell Avenue and includes a wide array of restaurants, shops and new condominium apartment buildings all in a newly constructed lifestyle center layout. It has been very well received since its opening in 2005. Brickell Key (or Claughton Island) is located at the end of S.W. /S.E. 8th Street, just east of Brickell Avenue and reflects a mixed development of Class "A" office space and luxury condominium and rental apartment buildings, as well as the Mandarin Hotel five-star development. FLAGLER STREET Flagler Street is a 12.4-mile main east —west thoroughfare in Miami. Flagler Street is the latitudinal baseline that divides all the streets on the Miami -Dade County grid plan as north or south streets. (The east -west division is along Miami Avenue) Flagler Street is named after industrialist Henry Flagler and serves as a major commercial east —west highway through central Miami -Dade County, with a mixture of residential neighborhoods (featuring apartment complexes) and strip malls, the commercial presence increasing as SR 968 approaches downtown Miami. It is also a historic street and the core of the center of the downtown Miami central business district. As such, the City of Miami and Downtown Development Authority (DDA) are commencing a $13 million restoration and street scape project featuring wider sidewalks, oak shade trees, new lighting and storm water drains to accommodate cafe tables and pedestrians. The Miami Commission City recently approved the last of the funding for the project, $920,000 for an upgraded drainage system and removal of old abandoned pipes that have been beneath Flagler Street pavement for decades. The street project timing is simultaneous with New York entrepreneur and developer Moishe Mana who has amassed $200 million A reborn Flagler Street A $13 million reconstruction of Flagler Street in downtown Miami will mean wider sidewalks, new shade trees and modernized utilities, setting the stage fora hoped -for revitalization. Work has begun and will proceed in 13 stages over two years. Project begins Nagler 5t. NE1St. Miami- . Dade County Courthouse x Phase 1 Nw1 st. NW 2 St. Seybotd Btdg. Macy ai z NE 1St. a' Z Flagler St. Metromover m giMaidElMaiirtNifl Phase 13 °1 I SE 1 St. �a v Project finished Dec. 2017 9 Olympia Theater SE 1 St. W VI SE 2 St. Metromover Source, Downtown Development Aulhonty MARCO RDI2 rnruix@miaunherald-corn +/- worth of properties on or abutting 19 © 2017 CBRE, Inc. CBRE Neighborhood Analysis Flagler with the vision of turning the street into a restaurant, cultural and retail destination, while preserving its historic low scale. ACCESS Regional Access to the overall subject area is provided via Interstate 95 (1-95), the Dolphin Expressway (State Road No. 836) leading into State Road No. 395, the Julia Tuttle Causeway (State Road No. 195) and Biscayne Boulevard. Interstate 95 (1-95) serves to connect the subject area with areas of northern/southern Miami -Dade County, as well as to provide access to the primary easterly/westerly expressway systems. The Dolphin Expressway (State Road No. 836) is an easterly/westerly thoroughfare providing access from areas of western Miami -Dade County, as well as the Palmetto Expressway (State Road No. 826) to the overall subject area. State Road Numbers 195 and 395 (Julia Tuttle Causeway) facilitate travel between areas of western Miami - Dade County and Miami Beach to the west and east, respectively, while Biscayne Boulevard reflects a well -traveled artery providing northerly/southerly access from S.E. 3rd Avenue to the south, to the Broward County line to the north. Local access in the subject area is provided by Biscayne Boulevard, Brickell Avenue, and South Miami Avenue in a north/south direction, with Flagler Street, and S.W. 8th Street providing primary access in an easterly/westerly direction. Additional access to and within the Central Business District is provided by a mass transit system known as Metrorail and Metromover. Both have a station within walking distance from the subject property. The Metrorail is an elevated track train system, which extends north and west to the City of Hialeah and south to the Dadeland area of Unincorporated Miami -Dade County. The Government Center station serves the core of the Central Business District, with the downtown Metromover emanating from the Government Center Station. The Metromover is a remote controlled elevated track vehicle system, which provides local transportation in the Central Business District. The Metromover track, which has nine stations in the Central Business District, extends southerly to SE/SW 4th Street, easterly to Biscayne Boulevard, northerly to NE/NW 5th Street and westerly to NW 2nd Avenue. An extension of the Downtown Metromover extends southerly to the Brickell Avenue area and northerly to the Omni area. 20 2017 CR6 Inc. CBRE Neighborhood Analysis MIAMI-DADEIRANSff Metromover Syste m Full Loop amomce4Ihi Backe 49mrsLmpsto as r"--? L2 :;lRideMDT M lam' Dad eEraasit 0.1141411 mutPI. TRAC.WEA o-."r lam Ldrn1w4an: ��, as.5ry _1 R1 305 W-YiW TD:sD5-56&S4O2 W ww.lreamidade.$bdtransil School Board Adrienne Arsht Center Museum Park0) Eleventh Street 1 MLFSE4JIMA Pail I5 Park West liisSanc UwDrtown. Lyric Theatre college Y Freedom Tower North I PD r t}? MIAMI BAVSItJE Inner Loop Wilkie D. MARKETPLACE Ferguson, Jr. I Callege/Bayside Government Center First Street DOWNTOWN /FRONT ,='ARK Omni Loop Miami Avenue Knight Center Third '- Street Riverwalk Fifth _ INNER Street LOUR Okiti {OOP &NICKELL Eighth 10P Street STAMIflN SERVING BRICKELL SIN3LE Lolly Tenth STATION Street SERVING Brickell Promenade MULTIPLE LOOPS STATION WITH mix ART EN MATE Financial District t1gPDRAfL �ii 1C- Hi= Brickell Loop -31 min The subject property is within closest proximity to the Omni Loop with a Metromover station located at the Adrienne Arsht Performing Arts Center located at 1300 Biscayne Boulevard or 10 blocks south of NE 23' Street. ALL ABOARD FLORIDA • All Aboard Florida's Miami station will serve as its primary, multimodal hub and a true "live -work -play -commute" urban environment. • From downtown Miami, the new express passenger rail service will transport travelers to Fort Lauderdale, West Palm Beach and Central Florida. The station and surrounding transit -oriented development will encompass nearly three million square feet and span two sites: 21 © 2017 CBRE, Inc. CBRE Neighborhood Analysis • A nine -acre transportation hub in downtown Miami just east of Miami -Dade County Hall — to include mixed -use development with residential, office, commercial, and a retail concourse • A two -acre multi -use complex in Historic Overtown at the corner of NW 2nd Avenue and NW 6th Street — to include mixed -use development with retail, commercial and parking to support and enhance the transportation hub Terminal to feature a mix of premiere and unique dining options, shopping, and entertainment: • Approximately 2 million square feet dedicated to office/commercial development • Approximately 1 million square feet dedicated to residential space • Adequate parking space allocated to support the development • Station to serve as a transportation gateway, iconic destination, and a landmark terminal and symbol of 21 st-century Miami The Miami River is a restricted deep water access waterway that navigates down river to the Biscayne Bay, the Port of Miami and the Atlantic Ocean. Small pleasure boat and cargo freighters navigate the Miami River via draw bridges at Brickell Avenue, Miami Avenue, the FEC railway tracks, S.W. 2nd Avenue and S.W. 1st Street. The Interstate 95 off -ramps are fixed bridges. Overall, regional and local access to and throughout the neighborhood is considered to be very good. DEMOGRAPHICS Selected neighborhood demographics in 1-, 3-, and 5-mile radii from the subject are shown in the following table: 22 1,2 201 CRE» CBRE Neighborhood Analysis SELECTED NEIGHBORHOOD DEMOGRAPHICS 1367 N. Miami Avenue Miami, FL 1 Mile 3 Miles 5 Miles Population 2021 Total Population 39,827 279,593 549,634 2016 Total Population 35,529 258,754 515,355 2010 Total Population 30,134 230,134 475,162 2000 Total Population 20,988 201,044 439,672 Annual Growth 2016 - 2021 2.31% 1.56% 1.30% Annual Growth 2010 - 2016 2.78% 1.97% 1.36% Annual Growth 2000 - 2010 3.68% 1.36% 0.78% Households 2021 Total Households 19,278 118,657 229,544 2016 Total Households 16,982 108,912 214,669 2010 Total Households 13,745 94,210 196,031 2000 Total Households 8,111 74,875 172,188 Annual Growth 2016 - 2021 2.57% 1.73% 1.35% Annual Growth 2010 - 2016 3.59% 2.45% 1.53% Annual Growth 2000 - 2010 5.42% 2.32% 1.31% Income 2016 Median Household Income $36,428 $33,262 $34,570 2016 Average Household Income $59,725 $57,828 $58,774 2016 Per Capita Income $30,367 $25,071 $25,010 2016 Pop 25+ College Graduates 8,532 53,686 106,433 Age 25+ Percent College Graduates - 2016 32.7% 28.4% 28.3% Source: ESRI GROWTH PATTERNS The subject neighborhood has recently undergone a substantial amount of revitalization and development/redevelopment, as reflected by the various properties that have recently been completed, currently under construction and/or are in the planning stages of development within the CBD and Brickell District. The majority of the projects that are under construction in the subject area typically reflect Class A, upper -end projects. CONCLUSION The subject submarket area was previously a 9-to-5 downtown office district that was recently transformed into a modern & dynamic, 24-hour city center with numerous deliveries of new residential condominium and office towers in the past several years. Overall, it is our opinion that the subject neighborhood will continue to be transformed and grow into a world -class city -center as public and private developments under construction and planned are completed and the neighborhood will continue to remain a desirable area with potential for appreciation over the long term. 23 © 2017 CBRE, Inc. CBRE Site Analysis PLAT MAP SR..() ASPHALT &Da CORNER O. e' (M) 19KP. fAa' M) a T 10.7.di{A!) EVANUN N.GVD. MEU/! AVE L & C. CORNER 7AejY) LL SIGME14,0 i ARMS ✓K EAST T99.9310 130 &-si sw 2 113 NA 6" A FAST 99.95 LA 06YRkmz 7A7` FFE 1277' KG Vp BLDG.. 147-Ch 3r.0 Ard craanvl :c aw raw am LEWr 2 hoar stilow4 FIJI1 z MOE COMM Q f0'8CR.. sTORr BUILDING' 3' \ NESE 4145114 roc- IV) sex. «ncie `. 0. f5' &tC GIP 0.M° arm. a 2 -MAI BUILDING 11353 atx. &VW cm' cam w SMC. BLG. f99a di6' t rAP £ � H A UL4 \ 8 CC PRODUCTIONS Fk Al-5145A of Miomi, Miami -Dade County, Florida 24 © 2017 CBRE, Inc. CBRE Site Analysis Site Analysis The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY Physical Description Gross Site Area Net Site Area Primary Road Frontage Secondary Road Frontage Average Depth Excess Land Area Surplus Land Area Shape Topography Zoning District Flood Map Panel No. & Date Flood Zone Adjacent Land Uses Comparative Analysis Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Water Sewer Natural Gas Electricity Telephone Mass Transit Other Detrimental Easements Encroachments Deed Restrictions Reciprocal Parking Rights 0.24 Acres 10,637 Sq. Ft. 0.24 Acres 10,637 Sq. Ft. N. Miami Ave 106 Feet NE 14th Street 100 Feet 100 Feet None n/a None n/a Rectangular Improved to road grade T6-24 0, Urban Core Transect Zone 120650 0312 L 11-Sep-09 X Obsolete commercial and under construction multi -family residential Rating Good Good Good Assumed adequate Urban Assumed adequate Provider Adequacy City of Miami Yes City of Miami Yes Contract service Yes FPL Yes AT&T land lines Yes Metromover station & Metrobus Yes Yes No Unknown X X X Source: Various sources compiled by CBRE 25 © 2017 CBRE, Inc. CBRE Site Analysis INFRASTRUCTURE The OMNI CRA funded $6.0 million and completed the reconstruction of NE 14th Street streetscape enhancements between NE 2nd Avenue and NW 1st Avenue including wider sidewalks, decorative pavement, new curb & gutter and a 12" water main upgrade. ENVIRONMENTAL ISSUES CBRE, Inc. is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. • We strongly recommend the client engage a qualified environmental engineer to perform a Phase I environmental assessment of the subject property. ADJACENT PROPERTIES The adjacent land uses are summarized as follows: North: 14 Plaza, an under construction residential/retail tower South: Retail and commercial store fronts East: Strip retail/bar & nightclub property West: N. Miami Avenue frontage The adjacent properties are a mix of vintage retail, obsolete commercial and new mixed use development. CONCLUSION The site is a strategic corner location within the Omni CRA and Media & Entertainment District. This subject site and surrounding parcels are all zoned for high density, mixed -use development that has been attracting the interest of multi -family residential developers. 2017 CBRE, Inc 26 CBRE Site Analysis FLOOD PLAIN MAP .E 1RTV$ REST TE CC 191141 MIA 4E-1MJ3E COUNTY. FLORIDA R\O I\CORPORATPA RHEAS PANEL 312 Of 1031 MAP REVISED SEPTEMBER 11, 2009 ry,.irr \lan.Revr.�.AN,M, J d�pee�'w�.rd.er 0,,.u.N. tics w. 6.i teem mw��mridai. 1.enwF! it m c„o,m.p.a m.p. .ee..k n. FEUR s!qa en., E ..n.,w.. m.G am. ©2017CBRE, Inc. 27 CBRE Improvements Analysis Improvements Analysis The following chart shows a summary of the improvements. IMPROVEMENTS SUMMARY Property Type Office (Mixed Use) Number of Buildings 2 Number of Stories 1 & 2 Year Built 1924 Gross Building Area 14,820 SF Net Rentable Area 14,820 SF Area Breakdown Building 1 - 1st Floor 9,338 SF Building 1 - 2nd Floor 2,396 SF Building 2 - One Story 3,086 SF Site Coverage 85.6% Land -to -Building Ratio 0.72 : 1 Floor Area Ratio (FAR) 1.39 Parking Spaces: None Parking Ratio (per 1,000 SF NRA) Zero Improvement Summary Description Comparative Rating Good Avg. Fair Poor Foundation Reinforced concrete X Frame Concrete block, masonry, steel & wood X Exterior Walls Painted stucco Interior Walls Plaster over wood strips Roof Tar & gravel Over flat deck Ceiling Exposed wood beam, plaster and drywall HVAC System Non-functioning Exterior Lighting Non-functioning Interior Lighting Non-functioning Flooring Concrete Plumbing Non-functioning Elevators/Stairwells Side stairwell entry to 2nd floor Life Safety and Fire None Protection Amenities None Furnishings None Parking None Landscaping Urban streetscape X Unknown condition X X X X X X X X X X X X N/A Source: Various sources compiled by CBRE OVERALL CONDITION The existing improvements are essentially in shell condition with poor interior condition and good facade condition given the age & character of the property history. HISTORIC PRESERVATION The subject was originally built in 1924 for Citizens Bank and currently utilized by the owner as a film set and equipment storage. According to the City of Miami Historic & Environmental Preservation (HEP) Board Authority and the Miami 21 City Code, Chapter 23, the Transferable Development Rights (TDRs) is a vehicle that enables a historic property owner to transfer its 28 2017 CBRE„nc CBRE Improvements Analysis unused development capacity to another property owner who then is allowed to add "bonus" height or intensity to its property. Owners of a locally or nationally designated historic property that is located either in a T-4 0 or higher transect zone, or is a multi -family residence located in a T4-R transect zone, may permanently sell any additional potential capacity (unused development rights) to a property located in a T-6 transect zone. The purpose of the TDR for designated historic properties is to encourage the preservation of historic buildings instead of demolition or renovations that would diminish the integrity of the property's historic value. By creating a monetary value for the unused capacity, that would otherwise be lost when the owner maintains the historic building, the City of Miami hopes to save pieces of its history. The subject property could be eligible for a Certificate of Transfer of Development Rights (TDRs), subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff and a recordation of a restrictive covenants, which may include a stabilization and maintenance plan. ECONOMIC AGE AND LIFE CBRE, Inc.'s estimate of the subject improvements effective age and remaining economic life is depicted in the following chart: ECONOMIC AGE AND LIFE Actual Age Effective Age MVS Expected Life Remaining Economic Life Accrued Physical Incurable Depreciation Compiled by CBRE 93 Years 93 Years 100 Years 7 Years 93.0% The remaining economic life is based upon our on -site observations and a comparative analysis of typical life expectancies within the submarket, as well as published by Marshall and Swift, LLC, in the Marshall Valuation Service cost guide. While CBRE, Inc. did not observe anything to suggest a different economic life, a capital improvement program could extend the life expectancy. CONCLUSION Overall, there are no known factors that adversely impact the marketability of the improvements as a potential historic restoration project for an owner/user. 29 © 2017 CBRE, Inc. CBRE Zoning Zoning The following chart summarizes the subject's zoning requirements. MIAMI 21 ZONING Zone T6-24 0, Urban Core Transect Zone Subcategory 0, Open Description 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 & windows. Uses Permitted; Allowed by Right Allowed by Warrant Single family residence, community residence, two-family residence, multi -family housing, dormitory, home office, live -work, bed & breakfast, inn, hotel, office, entertainment establishment, food service establishment, general commercial, place of assembly, recreational establishment, recreational facility, religious facility, learning center, pre-school, and research facility. Auto -related commercial establishment, marine related commercial establishment, open air retail, community facility, community support facility, infrastructure & utilities, marina, public parking, transit facilities, childcare, college or university, elementary school, middle or high school, and special training or vocational. Allowed by Exception Alcohol beverage service establishment and regional activity complex. Category Zoning Requirement Lot Area 5,000-SF minimum / 100,000-SF maximum Lot Width 50 feet minimum Lot Coverage 80% maximum (see code for specific Transect Zone regulation) Floor Lot Ratio a. 7 with 30% additional Public Benefit or b. 16 with 40% additional Public Benefit Frontage at Front Setback 70% minimum Open Space Requirement 10% lot area minimum Density 150 dwelling units per acre Article 4. Diagram 9 Residential Density Increase - Comprehensive Neighborhood Plan; Omni - 500 units/acre Southeast 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 Commercial Maximum area of 55,000-SF per establishment, except for public storage facilities. Setbacks; Principal Front Setback 10 feet minimum Secondary Front Setback 10 feet minimum Side Setback (Residential) -0- feet minimum Rear Setback -0- feet minimum Private Frontages; Common Lawn Prohibited Porch & Fence Prohibited Terrace or LC Prohibited Forecourt Permitted Stoop Permitted Shop front Permitted (T6-24 L & T6-24 0) Gallery Permitted Arcade Permitted Building Height (Stories); Principal Building 2 story minimum / 24 story maximum, plus Public Benefit Benefit Height (abutting T6, T5 & T4 only) 32 stories (refer to Article 5 for specific Transect Zone regulation) Off -Street Parking; Residential 1.5 spaces / dwelling unit + 1 space for every 10 units for visitor parking Lodging 1 space / every 2 lodging units + 1 space for every 15 units for visitor parking Office 1 space / 800-SF of office use Commercial 3 spaces / every 1,000-SF of commercial uses Civic 1 space / every 5 seats Civil Support 1 space / every 1,000-SF of civil support use Educational 2 space / every 1,000-SF Childcare 1 space for the owner/operator and 1 space for each employeee plus 1 drop-off space for every 10 clients cared for. Parking Reductions See Article 4, Table 5 in Miami 21 based on Transit Corridor, bike rack, Metromover Station, off -site provision and/or shared parking provisions. Parking ratio may be reduced within 'h mile radius of TOD or within 1/4 mile radius of a Transit Corridor by 30% by process of Waiver, except when T6 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. Source: Miami 21 As Adopted - October 2009, Revised May 2010 and Amended May 2015 30 © 2017 CBRE, Inc. CBRE Zoning ANALYSIS AND CONCLUSION The improvements represent a legally -nonconforming use and, if damaged, may or may not be restored without special permit application. Additional information may be obtained from the City of Miami Planning & Zoning Department, as well as, the City of Miami Historic & Environmental Preservation (HEP) Board Authority. TRANSFERABLE DEVELOPMENT RIGHTS If the subject property owner is interested and the City of Miami Historic & Environmental Preservation (HEP) Board Authority desires to preserve the existing bank office building instead permitting demolition or renovations that would diminish the integrity of the property's historic value, then the subject property could be eligible for a Certificate of Transfer of Development Rights (TDRs). The Certificate of Transfer of Development Rights (TDRs) is subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff including a recordation of a restrictive covenants, which may include a stabilization and maintenance plan. As previously noted, the Transferable Development Rights (TDRs) is a vehicle that enables a historic property owner to transfer its unused development capacity to another property owner who then is allowed to add "bonus" height or intensity to its property. Owners of a locally or nationally designated historic property that is located either in a T-4 0 or higher transect zone, or is a multi -family residence located in a T4-R transect zone, may permanently sell any additional potential capacity (unused development rights) to a property located in a T-6 transect zone. The potential sell-off of the TDRs is calculated based on the spread between the existing building square footage and the "as of right" zoning FAR/FLR (floor-area-ratio/floor-lot-ratio), subject to approval and issuance of a Certificate of TDRs from the City of Miami. In addition, the City of Miami has amended the multiplier used in the TDR calculation to 225% per square foot of the available, unused development potential permitted by the underlying Transect Zone, thereby recognizing the significance of Miami's Locally Designated Historic Resources and the additional requirements associated with the rehabilitation of a historic property. TDRs are currently being valued in downtown Miami by property owners & merchant developer's transactions, and by development fees set by the City of Miami Planning & Zoning Department and the City of Miami Historic Preservation Board. As such, we have compiled the following transaction summary of recent TDR transactions. 31 © 2017 CBRE, Inc. CBRE Zoning SUMMARY OF TRANSFERABLE DEVELOPMENT RIGHT COMPARABLE SALES Property Location/ Sending No. Site Transaction Type Date Receiving Site Sale Price Price Per TDRs TDR 1 Vagabond Motel, 7301 Biscayne Blvd., Miami, FL 2 Royal Motel, 7411 & 7421 Biscayne Blvd., Miami, FL 3 7416 Biscayne Boulevard, Miami, FL 4 Bayside Motor Inn, 5101 Biscayne Boulevard, Miami, FL 5 Bayside Motor Inn, 5101 Biscayne Boulevard, Miami, FL 6 Bayside Motor Inn, 5101 Biscayne Boulevard, Miami, FL 7 Cushman School, 592 NE 60th Street, Miami, FL 8 New Yorker Hotel, 6500 Biscayne Blvd., 570 NE 66th Street & 589 NE 65th Street, Miami, FL 9 7541 Bicayne Blvd., Miami, FL Sale Jun-13 Icon Bay, 421 NE 28th Street, Miami, FL Sale Jul-13 Echo Brickell, 1451 Brickell Ave., Miami, FL Sale Jan-14 Atton Hotel, 1500 SW 1st Ave., Miami, FL Sale Oct-14 District 36, 3635 NE 1st Ave., Miami, FL Sale Nov-14 Brickell Heights, 824 South Miami Ave., Miami, FL Sale Jan-15 Brickell Ten, 1010 SW 2nd Ave., Miami, FL Sale Feb-15 SLS Lux, 801 South Miami Ave., Miami, FL Sale Jul-15 One Pariaso, 701 NE 31st Street, Miami, FL $660,000 $1,214,400 $412,500 $913,750 $1,039,601 $602,616 $1,022,884 $165,760 67,716 $9.75 142,868 $8.50 50,000 $8.25 107,500 $8.50 122,306 $8.50 71,014 $8.49 131,139 $7.80 22,400 $7.40 Contract Jan-17 Maizon, 1100 SW 2nd $20,264 2,533 $8.00 Ave., Miami, FL Compiled by CBRE Based on the foregoing presentation, we estimate TDRs to be in the range of $8.00 to $8.50 per square foot of FAR, as of the effective date of this appraisal. In turn, we have estimated the potential contributory value of TDRs for the subject property, if the property owner were to seek historic preservation, as follows: • T6-24 0, Urban Core Transect Zone permits an FLR of 7.0 x 10,637-SF of site area equals 74,459-SF of FAR or "as of right" potential gross floor area. The 74,459-SF of FAR minus 14,820-SF of existing building area equals 59,639-SF x 2.25 TDR Multiplier = 134,187.75-SF of TDRs. • 134,187.75-SF of TDRs x $8.00 to $8.50-PSF = $1,073,502 to $1,140,595. • Rounded to $1,100,000 for potential TDR sell-off. The foregoing calculation is subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff and a recordation of a restrictive covenants, which may include a stabilization and maintenance plan. It is important to note that we are valuing the subject property As Is, including any contributory value of the TDRs. This is consistent with the majority of comparable sales analyzed that have local or national historic landmark potential and have all traded with the TDRs intact. 32 2017 C800J,,. CBRE Tax and Assessment Data Tax and Assessment Data The following summarizes the local assessor's estimate of the subject's market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. The CBRE estimated tax obligation is also shown. AD VALOREM TAX INFORMATION Assessor's Market Value 01-3136-009-0220 2015 2016 $1,291,600 $1,398,400 Pro Forma $4,500,000 Subtotal $1,291,600 $1,398,400 $4,500,000 Assessed Value @ 100% 100% 65% General Tax Rate $1,291,600 $1,398,400 $2,925,000 (per $100 A.V.) 2.270320 2.229370 2.229370 Total Taxes Less: 4% Early Pay Discount $29,323 $31,176 $65,209 $28,151 $29,928 $62,601 Source: Assessor's Office The local Assessor's methodology for valuation is sales comparison approach. The next re- assessment of the subject is scheduled for January 1, 2018. If the subject sold for the value estimate in this report, a reassessment at that value could occur. According to a representative of the Miami -Dade County Department of Revenue, there are no delinquent property taxes encumbering the subject. TAX COMPARABLES As a crosscheck to the subject's applicable real estate taxes, CBRE, Inc. has reviewed the real estate tax information according to Miami -Dade County for comparable properties in the market area. The following table summarizes the comparables employed for this analysis: RATIO OF ASSESSED VALUE TO SALE PRICE Comparable Sale Old Post Office & Courthouse Dade Power Studios 140 Building Commonwealth Building - As Is Wynwood Treehouse Subject Year Built 1914 1950 1925 1927 1946 NRA (SF) 25,500 22,341 25,375 43,265 7,806 Tax Year 2016 2016 2016 2016 2016 Assessor's Market Value $6,300,000 $4,623,175 $5,260,375 $5,775,000 $3,139,962 Date of Sale 6/12/2014 9/23/2014 1/30/2015 11/20/2015 6/30/2016 Sales Price $6,500,000 $7,300,000 $7,750,000 $9,200,000 $3,850,000 AV Ratio 97% 63% 68% 63% 82% 1924 14,820 2016 $1,398,400 Source: Assessor's Office 33 © 2017 CBRE, Inc. CBRE Tax and Assessment Data CONCLUSION Based on the foregoing, the total taxes for the subject have been estimated as $62,601, including the 4% early pay discount, based upon an assessed value of $2,925,000 or $197 per square foot. This is above the current and historical assessment, however, is considered a realistic scenario based on the "just value" statute, less cost of sale. For purposes of this analysis, CBRE, Inc. assumes that all taxes are current. 34 CBRE Market Analysis Market Analysis Primary data sources utilized for this analysis include REIS, Inc., CoStar Group, Inc. and CB Marketview reports. The subject is in the Miami market and is considered an urban Class "C" office building, subject to restoration/renovation. Miami -Dade County Office, Q4 2016 Improving market fundamentals and limited development continue to contribute to the tightening vacancy, while tenants competing for premium space continue to drive rent growth in 2017. Miami -Dade County market highlights summarized as follows: Total Vacancy 11.6% Lease Rate - Class A $43.68 PSF 0 Net Absorption 352,000 SF Figure 1: Total Vacancy —vs—Average Direct Asking Lease Rate (FSG) Vacancy (%) 20 15 10 0 0 Completions 130,000 SF Arrows indicate change from previous year. Vacancy Rate -Average Asking Lease Rate Q4 2011 Source: CBRE Research, 04 2016. Q4 2012 Q4 2013 Q4 2014 Q4 2015 Asking Rate (S/SF) 40 Q4 2016 36 32 28 24 • Vacancy declined to 11.6% in Q4 2016, a reduction of 30 basis points (bps) quarter -over - quarter and 120 bps year -over -year, declining for 21 consecutive quarters. • Net absorption during Q4 2016 was 351,554 sq. ft., with 82,370 sq. ft., or 23.4%, in the downtown submarkets and 269,184 sq. ft. in the suburban submarkets. Year-to-date net absorption was 999,368 sq. ft., slightly under net absorption in 2015 of 1.1 million. • Miami's CBD had over $2.5 billion in investment sales since 2012, which was 50% of all office investment sales in Miami -Dade County. • Among the suburban submarkets, Coral Gables had $868.9 million in investment sales since 2012, the largest by dollar amount, followed by Airport/Doral and Miami Beach. 35 © 2017 CBRE, Inc. CBRE Market Analysis Figure 2: Market Statistics - Class A & B Total Direct Total 04 2016 2016 Net Under Avg. Dir. Asking Inventory Vacancy Vacancy Absorption Absorption Construction Lease Rate Submarket Class (SF) (%) (%) (SF) (SF) (SF) ($ISF/FSG/G/MG) CBD Bri ckel A 4,190,374 10.2 10.2 43,684 804,305 0 51.62 2,085,545 12.0 13.0 24,208 30,920 30,000 38.35 Downtown Miami A 8,257,916 18.3 18.3 11,440 (2,283) 280,000 51.61 2,811,954 20.8 20.8 (15,316) (79,868) 0 34.45 CBD Total Suburban 11,845,789 14.8 15.0 64,016 253,154 810,000 45.23 Airport/Dorol A 4,571,997 5.2 5.4 60,181 107,696 246,085 32.18 6,022,899 11.2 11.2 28,669 123,790 0 26.75 Aventura A 1,250,700 6.1 6.5 (16,448) (17,913) 0 47.94 B 166,788 38.3 38.3 5,752 24,681 0 41.67 Biscayne Blvd. A 668,820 20.3 20.3 52,551 58,051 41,923 41.00 340,424 7.5 7.5 (10,497) 9,062 0 32.31 Coconut Grove A 507,367 7.1 7.1 20,521 17,334 0 36.00 601,071 5.4 5.5 1,276 10,268 0 34.29 Coral Gables A 4,116,758 11.0 11.2 25,513 (12,087) 181,576 39.31 2,992,508 5.8 6.0 (1,491) 34,663 0 34.27 Kendall A 1,898,315 11.6 11.6 (18,326) (39,799) 0 38.24 2,109,424 9.5 9.5 37,568 80,878 0 25.84 Miami Beach A 820,097 2.0 2.2 16,180 5,396 0 40.67 889,535 6.2 6.2 5,342 37,099 0 39.21 Miami Cokes A 517,331 20.1 20.1 2,093 23,730 0 27.84 996,735 29.4 29.4 (28,758) 4,281 0 21.70 North Miami A 560,752 8.5 8.6 27,795 56,172 184,689 26.34 814,047 12.1 12.1 5,535 (3,290) 0 20.22 South Dade A 0 0.0 0.0 0 0 0 0 467,756 22.3 22.3 1,990 (3,640) 0 25.07 Suburban Total 29,313,324 10.0 10.1 215,446 516,422 654,273 32.34 Overall Total 41,159,118 11.4 11.5 279,462 769,576 964,273 37.49 Source: CBRE Research, R4 2016. Figure 3: Market Statistics -All Classes Submarket Total Direct Total 04 2016 2016 Net Under Avg. Dir. Asking Inventory Vacancy Vacancy Absorption Absorption Construction Lease Rate (SF) (%) (%) (SF) (SF) (SF) ($/SF/FSG/G/MG) Brickell Downtown Miami 7,254,471 7,584,293 10.5 19.1 10.8 68,953 841,184 30,000 19.1 13,417 (13,290) 200,000 43.58 40.51 CBD Total Airport/Dorol Aventuro 14,838,764 14.9 15.0 82,370 327,044 310,000 11,710,099 8.6 8.7 95,063 299,715 246,085 1,549,296 9.6 9.9 (10,696) 6,768 0 41.51 27.82 44.98 Biscayne Blvd. Coconut Grove Corot Gables 1,596,699 13.7 13.7 42,387 58,960 41,923 36.10 1,1 78,438 5.8 5.9 21,797 27,602 0 34.88 7,231,294 8.0 8.9 24,022 35,786 101,576 37.65 Kendall 3,683,539 10.1 10.2 27,668 60,829 0 30.79 Miomi Beach 1,959,034 3.7 3.8 24,202 43,922 0 39.62 Miami Cokes 1,958,195 24.1 24.1 (22,312) 63,590 0 22.55 North Miami 1,423,572 10.7 10.8 65,063 77,992 104,689 25.39 South Dade 467,756 22.3 22.3 1,990 (3,640) 0 25.07 Suburban Total 82,747,922 9.9 10.0 269,184 671,524 654,273 31.58 Overall Total 47,586,686 11.5 11.6 351,554 999,368 964,273 35.86 Source: CB RE Research, 04 2016. 36 © 2017 CBRE, Inc. CBRE Market Analysis ECONOMIC INFLUENCE Miami-Dade's steady economic growth is attracting more businesses and driving corporate expansions. A strong economy characterized by job growth and rising wages is setting the stage for another year or two of continued growth. The tightening labor market is motivating employers to focus on attracting and retaining talent resulting in increased wages for the first time in eight years. Economists expect wages to continue to rise in 2017 but not at the rate seen in the previous recovery of the mid-2000s. The highest increases in job growth in the Miami metropolitan area were in professional and business services; trade, transportation & utilities, and leisure and hospitality. According to the Bureau of Labor Statistics, the Miami metropolitan area recorded an increase of 18,000 jobs in the twelve months prior to December 2016, representing a year -over -year gain of 1.6%. Unemployment declined to 5.0% in November 2016, down by 740 basis points (bps) since its highest levels in 2009 at 12.4%. LEASING ACTIVITY Landlords are optimistic as asking rents continue to rise at a substantial pace and vacancy drops to the lowest rate since 2009. The average asking lease rate for Class A properties in the CBD climbed to $51.61 per sq. ft., an increase of $4.63 year -over -year or 9.9%. Average asking rates for Class A properties in the suburban submarkets rose to $36.92, an increase of $1.90 year - over -year or 5.4%. Total vacancy declined to 11.6% in Q4 2016, down 30 basis points (bps) quarter -over -quarter and 120 bps year -over -year. Leases executed during Q4 2016 totaled approximately 621,000 sq. ft. in 120 transactions. Tenants seeking space in the market have requirements that total an additional 1.2M sq. ft. Creative industries and media entertainment were the top industries in the market, followed by business services. Figure 4: Investment Sales IS millions) Submarket Property Building Sale Price Price per SF Buyer Seller (SE) ($) (S) Downtown Southeast Financial Center Amancio Ortega (Ponte Godea) JP Morgan Chose 1,225,000 516,600,000 421 Downtown New World Tc ver East End Capitol Partners, LLC The Witkoff Group 292,814 84,000,000 287 Miami Beach Lincoln Place 16TH Street Partners LLC Cousins Properties, Inc. 139,887 80,025,000 572 Coral Gables Alcazor Tower Pan American Group Inc. Market Street Reol Estate Partners 40,000 12,900,000 323 Kendall Office Suites Two of Bird Rood David Hill/Adios2 LLC Adrian Family Ptshp Ltd 35,719 6,700,000 188 Source: CBRE Research, 04 2016. ©2017 CBRE, Inc. 37 CBRE Market Analysis Figure 5: Significant Occupancies* Submarket Property Tenant Transaction SF Downtown SunTrust Int. Center State of Florida Office of the Attorney General 42,000 Miami Lakes The 5875 Building Lufthansa Technik Component Services Uc 31,691 Downtown One Biscayne Tower Zan Einhorn Salkowski t Brito 26,186 Miami Lakes The 5875 Building Logisticore Solutions, LLC 18,656 Airport/Dorol Building 1300 University of Miami 18,328 Source: CBRE Research, Q4 2016. Figure 6: Significant Leases Executed Does not include renewals. Submarket Property Tenant Lease Type Transaction SF Downtown Wells Forgo Center Confidential Financial Services Firm New Lease 150,816 Coral Gables Douglas Entrance Mostec, Inc. Expo nsion/Renewal 65,000 Downtown SoutheastFinoncial Center Cozen O'Connor Exponsion/Renewal 22,519 Airport/Dorol Building 1300 University of Miami New Lease 18,328 Brickell Two Brickell Sty Centre McKinsey t Company Support Services New Lease 16,926 Source: CBRE Research, 04 2016. strengthening of the U.S. dollar, cross -border capital investments increased in 2016 and is expected to continue into 2017 though perhaps at a more moderate level. Miami's CBD, which includes Downtown and Brickell, and Coral Gables remain the prime areas for investment due to their long-term growth potential. Miami's CBD had over $2.5 billion in investment sales since 2012, which is 50% of all office investment sales in Miami -Dade County with an average sale price of $365.51-PSF.t. Among the suburban submarkets, Coral Gables had $868.9 million in investment sales since 2012, the largest by dollar amount, followed by Airport/Doral and Miami Beach with an average sale price of $230.82-PSF. INVESTMENT SALES ACTIVITY Miami remains one of the world's most attractive real estate markets because of its affordability on a relative cost basis compared to other global gateway cities. The market is perceived by some foreign investors as a relatively young city with promising growth potential. Despite the growth Figure 7: Average Direct Asking Lease Rate (FSG/G/MG) Asking Lease Rate (S) 45 40 35 30 25 20 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 ®ClassA Class B Source: CBRE Research, Q4 2016. 38 CBRE Market Analysis DEVELOPMENT New inventory in 2016 totaled 352,783 sq. ft., which included Two Brickell City Centre delivering its second office tower of 129,676 sq. ft. in the fourth quarter. This is just 22% of total completions in 2010 at the height of construction, when 1.6 million sq. ft. hit the market. Though construction increased to 964,273 sq. ft. in Q4 2016, the nine projects under construction currently will increase office inventory by only 2.0%. Two and Three MiamiCentral will add a total of 280,000 sq. ft. to the current inventory, and 800 Waterford Way will add 246,085 sq. ft. New projects that broke ground included Canal Park Office at 3323 NE 163rd Street in North Miami scheduled to deliver 184,689 sq. ft., Giralda Place delivering 65,000 sq. ft. at 2222 Ponce de Leon Boulevard in Coral Gables and Brickell Heights Office delivering 30,000 sq. ft. of office space in the mixed - use property at 850 South Miami Avenue. Figure 8: Net Absorption —vs— Vacancy Rate Net Absorption Vacancy Rate (000's of SF) (%) 1,200 20 1,000 18 800 15 10 60013 400 200 0 — — — — — — 5 2011 2012 2013 Net Absorption Source: CBRE Research, 04 2016. 2014 2015 2016 Vacancy Rate OUTLOOK The commercial property market landscape in 2017 will be characterized by continued strong leasing and sale fundamentals. As for the economic landscape, the Miami market Figure 4: Completions continues to grow moderately and add jobs. 000'sofSF) is Completions Employment gains continue to be strong, with 2,000 unemployment dropping to 5.0 a/o in Q4 Forecast 1,500 2016, contributing to demand for housing, office, retail and industrial properties. 1,000 While many speculate about the end of the 500 current economic cycle, the fact that the 0 , r• _ recovery has been slow and steady has led 2010 2011 2012 2013 2014 2015 2016 2017 experts to believe the current growth cycle will continue into the foreseeable future. Source: CBRE Research, 04 2016. 2017 CBR0;nc 39 CBRE Highest and Best Use Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As presented in the Market Analysis section of this report, there are a variety of mixed -uses that can be developed on the subject site if vacant, including office, retail, residential & hotel, and all are enjoying different levels of success as the economy continues to grow. Although the potential for corporate & government office uses is an obvious component in the mix of uses, the office component is lagging in secondary locations outside of the Brickell Financial District and downtown CBD. However, the remaining mix of uses, specifically residential, boutique hotel and retail are on a positive upward trend in the peripheral downtown Miami CBD submarkets including Edgewater, Media & Entertainment District and Midtown. The mixed -use trend for residential rental, boutique hotel and retail is based on the velocity of land acquisitions, projects under construction and proposed pipeline projects. However, financial feasibility and maximum profitability will ultimately be determined by the owner/developer based on projected development costs and revenue projections/generation. AS IMPROVED As improved, the subject involves an historical structure that could be eligible for preservation, restoration and repurposing to office, retail, restaurant, bar/lounge & night club and -or an entertainment use. However, the existing improvements have a nominal contribution of less than 10% of overall value when compared to Land Value As If Vacant. In addition, the cost of preservation and restoration could be very costly. Therefore, it is our opinion that the highest and best use of the subject, as improved, would be either redevelop with mixed -use residential rental tower with ground floor retail or restore/renovate for owner/occupancy. The restoration/renovation for owner/occupancy is the most productive use As Improved because the cost of restoration/renovation for a tenant occupant under an income producing investment would probably not generate sufficient net revenue to support the costs to restore/renovate plus 40 CBRE Highest and Best Use the discounting necessary for lease -up costs including risk, carry and real estate commissions necessary to secure a tenant occupant. In addition, the restoration/renovation scenario for an owner/user could produce TDR sell-off to the owner that would help as an off -set to the cost of restoration/renovation. 41 2017 CBRE„nc. CBRE Appraisal Methodology Appraisal Methodology In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. COST APPROACH The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. SALES COMPARISON APPROACH The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. INCOME CAPITALIZATION APPROACH The income capitalization approach reflects the subject's income -producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. METHODOLOGY APPLICABLE TO THE SUBJECT In valuing the subject, only the cost approach including land valuation and the sales comparison approach are applicable and have been used. The income approach is not applicable in the estimation of market value due to the unknown costs of restoration/renovation necessary to achieve lease -up under an income producing scenario. Furthermore, the highest & best use is for an owner/user with potential for TDR sell-off. The exclusion of said approach(s) is not considered to compromise the credibility of the results rendered herein. 42 2017 CBRE, Inc CBRE Land Value Land Value The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. !owim MEMMI 1 z 5 W NMI ieett iietaiho 46h I _)0 933 "\ .�nr[ um- ate- Land Sale 4 S 328 NW 29th St I 011171411111111 6mi, FL 33127 II '" 1 135 oai Land Sale 1 sEj ■ 1222 NW 24th St-- Miami, FL 33127 f 441 951 M Pan h METRORail-Culmer � stares a •nadlmrm .fl" des Biscayne Perk Cemetery Theodore R Gibson Park 3333\\A Land Sale 2 37 NE 15th St Miami, FL 33132 NDDT 1111 Itt,IM _ W' Subject Property and Sale 5 1367 N Miami Ave 8 NE 14th St Miami, FL 33135 Miami, FL 33132 LIE 9 Da 777 nnNLJi NW 9th St 'r NW 9th St St Land Sale 3 511 NE 15th St Miami, FL 33132 111 Li! B'-4711" al n_tjs 1M I ID © P we t hon NE 8th St t enne Biscayne Bay Aquatic Preserve MacArthur Causeway 1Natenn Park caYue Pace Picnic Islands Biscayne Bay -� .Venetian Dr s d A1A Watson Island SUMMARY OF COMPARABLE LAND SALES No. Property Location Transaction Actual Sale Adjusted Sale Size Size Density Allowable Allowable Indicated Price Price Per Type Date Zoning Price price(Acres) (SF) (UPA) Units Bldg. Area (SF) FAR Per SF SF (FAR) 1 222, 230 and 234 Sale Nov-15 T5-O, Urban $5,850,000 $5,850,000 0.34 14,625 --- 90,000 6.15 $400.00 $65.00 Northwest 24th Street Center 8 NRD-1 Miami, FL 33127 2 37-47 NE 15th Street Sale Dec-15 T6-24 0, Urban $11,500,000 $13,464,918 0.85 37,049 149.3 127 259,340 7.00 $363.44 $51.92 1523 8 1529 NE Miami Ct. Core Transect & 1502 NE Miami PI. Zone Miami, FL 33132 3 511 NE 15th Street Sale Feb-16 T6-36b 0, Urban $8,000,000 $8,000,000 0.27 11,700 148.9 40 140,400 12.00 $683.76 $56.98 Miami, FL 33132 Core Transect Zone 4 328-342 NW 29th Street Sale Sep-16 T6-8 0, Urban $6,300,000 $6,300,000 0.48 21,000 --- --- --- --- $300.00 Miami, FL 33127 Core 8 NRD-1 5 28-30 NE 14th Street Sale Nov-16 T6-24 0, Urban $6,098,900 $6,098,900 0.39 17,180 --- --- --- --- $355.00 Miami, FL 33132 Core Transect Zone Subj. 1367 North Miami Avenue, Contract Feb-17 T6-24 0, Urban $5,500,000 $5,500,000 0.24 10,637 150.0 36.00 74,457 7.00 $517.08 $73.87 Miami, Florida Core Transect Zone Adios -led sale price for cash equivalency and/or development costs (where applicable( Compiled by CBRE The sales utilized represent the best data available for comparison with the subject and were selected from the greater Miami area within a 1-to-15 block radius of the subject. These sales were chosen based upon location, zoning/density and highest & best uses. 43 ©2017 CBRE, Inc. CBRE Land Value DISCUSSION/ANALYSIS OF LAND SALES Land Sale One This comparable represents the acquisition of a 0.34-acre commercial site for retail/office development within the Wynwood District of Miami. The site is located at 222-234 NW 24th Street, Miami, Florida, immediately west of Panther Coffee and NW 2nd Avenue. This area is the heart of Wynwood where recent and proposed residential and mixed -use developments are present, and within the NRD-1, Neighborhood Revitalization District. The buyer, RedSky Capital, is proposing an 8-story, loft -style office building with ground floor retail, a breezeway for pedestrians and a rooftop terrace. RedSky paid $5,850,000, or $400-PSF of land and hired Arquitectonica to design the project, which is known as "Cube Wynwood". Permits were secured in late 2016, construction is slated to begin Q1 2017, and delivery in 2018. We adjusted Land Sale 1 upwards for interior, non -corner location and inferior frontage when compared to the subject property corner/North Miami Avenue & NE 14th Street frontage. Land Sale Two This comparable land sale comprises a two-part land assemblage & swap with an abutting owner/developer. The buyer, Miami Plaza, LLC is identified as The Melo Group who is one of the most active residential condo & rental tower developers in the submarket. The primary acquisition included 18,516-SF fronting the northeast corner of NE 15th Street and NE Miami plus two lots, totaling 10,290-SF, of non-contiguous site area for a purchase price of $11,500,000, facilitated with a $4,642,000 loan assumption from a private lender. The two, non-contiguous lots were subsequently swapped with the abutting owner/developer for the secondary acquisition comprising 18,533-SF along the northwest corner of NE l5th Street and NE Miami Place for a purchase price of $1,964,918. The abutting owner/developer paid The Melo Group $1,216,500 for the two, non-contiguous lots totaling 10,290-SF and subsequently taking control of 37,252-SF of contiguous site area fronting NE 16th Street, thereby splitting the entire block between the two developers. The acquired site is zoned T6-24 0, which allows a variety of residential and commercial uses with a maximum Floor Lot Ratio of 7.0 plus 30% public benefit and 150 dwelling units per acre. The close proximity to the 50 NE l5th Street School Board Metromover Station permits parking ratio reductions of 30% based on TOD (Transit Oriented Development) and Transit Corridor. Plus, a modified residential density increase to 500 units per acre within the Omni neighborhood. We adjusted Land Sale 2 upwards for larger size value relationship and for interior frontage when compared to the subject property North Miami Avenue frontage. Land Sale Three This comparable land sale is located at the northeast corner of Biscayne Boulevard & NE 15th Street in the Miami Arts & Entertainment District in downtown Miami, Florida. This is a strategic location with high density redevelopment potential, mass transit connectivity, setback Biscayne 44 © 2017 CBRE, Inc. CBRE Land Value Bay views from future upper floors, and high scoring walkability to the Adrienne Arsht Center for the Performing Arts, Museum Park, the American Airlines Arena and Bayside Marketplace. The buyer is an owner/developer of boutique hotels in south Florida and entered into a short term sale/leaseback with the seller who previously acquired the property in March 1998 for $440,000 and operated Sun Electronics. The existing building was originally developed in 1941 and comprises 4,440-SF. The seller renovated the property including roof top solar energy panels and other energy efficient features as part of the business and advocacy for alternative energy sources. The seller listed the property for $8,998,000 as a "for sale by owner" redevelopment opportunity. We adjusted Land Sale 3 downwards for superior frontage along Bayshore Drive & NE 15' Street, downwards for superior location east of Biscayne Boulevard and downwards for superior zoning/density when compared to the subject property. Land Sale Four This comparable land sale comprises three (3) lots with two (2) obsolete office/warehouse buildings and a surface parking that date back to the 1950s & 1960s. The properties were tenant occupied by 328 Design Group and HES-Group. The site location is along the south side of NW 29th Street and within the NRD-1 Neighborhood Revitalization District boundary. The site is zoned T6-8 0, Urban Core Transect Zone that permits up to 150 dwelling units per acre and 2 to 8 story building height limits plus a 4-story benefit height and favorable setback & off-street parking requirements. The buyer is a local investor/speculator. We adjusted Land Sale 4 upwards slightly for larger size/value relationship and upwards for inferior, non -corner and inferior street frontage, and upwards for inferior location at the north edge of the Wynwood Arts District when compared to the subject property North Miami Avenue & NE 14th Street frontage. Land Sale Five This comparable sale is an obsolete retail strip building dating to 1945 that was previously owned by night club entrepreneur Carmel Ophir who operated Barfly and The Vagabond at this location. In 2014, the property traded to Russell Bruce (a.k.a. Global Adversity, LLC) for $2,700,000 with the transaction facilitated with a $2,497,500 SBA loan in favor of Cl Bank. Russell Bruce combined & renovated several of the former bar spaces to open Railroad Blues. However, the Cl Bank & the loan was acquired by Bank of Ozarks and there was pressure from the lender who forced a loan payoff and sale to A & E District 14 Street LLC. That transaction was followed by a sell-off to Coral Ritz Residences, LLC for $6,098,900. The site fronts NE 14th Street and is improved with a 5,400-SF strip retail building built -out with bar/night club interiors and fenced patio bar area. We adjusted Land Sale 5 upward slightly for larger size/value relationship and upwards for inferior street location when compared to the subject North Miami Avenue frontage. 45 © 2017 CBRE, Inc. CBRE Land Value SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. LAND SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 5 Subject Transaction Type Sale Sale Sale Sale Sale Contract Transaction Date Nov-15 Dec-15 Feb-16 Sep-16 Nov-16 Feb-17 Zoning T5-0, Urban T6-24 0, Urban T6-36b 0, T6-8 0, Urban T6-24 0, T6-24 0, Urban Center & NRD-1 Core Transect Urban Core Core & NRD-1 Urban Core Core Transect Zone Transect Zone Transect Zone Zone Actual Sale Price $5,850,000 $11,500,000 $8,000,000 $6,300,000 $6,098,900 $5,500,000 Adjusted Sale Price' $5,850,000 $13,464,918 $8,000,000 $6,300,000 $6,098,900 $5,500,000 Size (Acres) 0.34 0.85 0.27 0.48 0.39 0.24 Size (SF) 14,625 37,049 11,700 21,000 17,180 10,637 Density (UPA) --- 149.32 148.92 --- --- 150.00 Allowable Units --- 127 Units 40 Units 36 Units Allowable Bldg. Area (SF) 90,000 SF 259,340 SF 140,400 SF 74,457 SF Indicated FAR 6.15 7.00 12.00 --- 7.00 Price Per SF $400.00 $363.44 $683.76 $300.00 $355.00 $517.08 Price Per Bldg. Area $65.00 $51.92 $56.98 --- $73.87 Price Per Unit --- $106,023 $200,000 --- --- $152,778 Price ($ PSF) $400.00 $363.44 $683.76 $300.00 $355.00 $517.08 Property Rights Conveyed 0% 0% 0% 0% 0% 0% Financing Terms 1 0% 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% 0% Market Conditions (Time) 0% 0% 0% 0% 0% 0% Subtotal $400.00 $363.44 $683.76 $300.00 $355.00 $517.08 Size 0% 10% 0% 5% 5% 0% Shape 0% 0% 0% 0% 0% 0% Corner 5% 0% 0% 5% 0% 0% Frontage 5% 5% -10% 5% 5% 0% Topography 0% 0% 0% 0% 0% 0% Location 0% 0% -10% 10% 0% 0% Zoning/Density 0% 0% -20% 0% 0% 0% Utilities 0% 0% 0% 0% 0% 0% Highest & Best Use 0% 0% 0% 0% 0% 0% Total Other Adjustments 10% 15% -40% 25% 10% 0% Value Indication PSF of Site $440.00 $417.96 $410.26 $375.00 $390.50 $517.08 Value Indication PSF of FAR $71.50 $59.71 $34.19 $73.87 Value Indication Per Unit $121,928 $120,000 $152,778 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE SUPPLEMENTAL COMPARABLE LISTING DATA We also considered active listings within the Media & Entertainment District presented as follows: SUMMARY OF COMPARABLE LAND LISTINGS No. Property Location Transaction Type Status Zoning List Size Size Price Price (Acres) (SF) Per SF A 45 NE 16th Street, Miami, FL Listing Under T6-24 0, Urban $14,000,000 0.67 29,100 $481 .10 Contract Core Transect Zone B 1317 N. Miami Ave., Miami, Listing Active - T6-24 0, Urban $7,500,000 0.41 18,000 $416.67 FL 650 DOM Core Transect Zone Subject 1367 North Miami Avenue, Contract Feb-1 7 T6-24 0, Urban $5,500,000 0.24 10,637 $517.08 Miami, Florida Core Transect Zone Compiled by CBRE 46 CBRE Land Value CONCLUSION The comparables sales presented produced an overall unadjusted value indicator range from $300.00 to $683.76 per square foot of rentable area. After considering and -or applying adjustments for property rights conveyed, financing terms & conditions, conditions of sale, market conditions (time), size, shape, corner/frontage, topography, location, and zoning density, the range of value indicators was narrowed substantially to $375.00 to $440.00 per square foot of site area. Based on the preceding analysis, Comparables 2 & 4 were the most representative of the subject site, and warranted greatest consideration because of recent sale transaction dates, location and zoning/density. In conclusion, a price per square foot of site area near the midpoint of the unadjusted, at the low end of the active listing range and within the narrow adjusted range of value indicators was most appropriate for valuing the subject site As If Vacant and available to be put to its Highest & Best Use. The following table presents the land valuation conclusion: CONCLUDED LAND VALUE AS IF VACANT $ PSF Subject SF Total $390.00 x 10,637 = $4,148,305 $410.00 x 10,637 = $4,361,039 Indicated Value As If Vacant: $4,250,000 (Rounded $ PSF) $399.56 Compiled by CBRE 47 © 2017 CBRE, Inc. CBRE Cost Approach Cost Approach In estimating the replacement cost new for the subject, the following methods/data sources have been utilized (where available): • the comparative unit method has been employed, utilizing the Marshall Valuation Service (MVS) cost guide, published by Marshall and Swift, LLC; MARSHALL VALUATION SERVICE Direct Cost Salient details regarding the direct costs are summarized in the Cost Approach Conclusion at the end of this section. The MVS cost estimates include the following: 1. average architect's and engineer's fees for plans, plan check, building permits and survey(s) to establish building line; 2. normal interest in building funds during the period of construction plus a processing fee or service charge; 3. materials, sales taxes on materials, and labor costs; 4. normal site preparation including finish grading and excavation for foundation and backfill; 5. utilities from structure to lot line figured for typical setback; 6. contractor's overhead and profit, including job supervision, workmen's compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc.; 7. site improvements (included as lump sum additions); and 8. initial tenant improvement costs are included in MVS cost estimate. However, additional lease -up costs such as advertising, marketing and leasing commissions are not included. Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Making these adjustments, including the appropriate local and current cost multipliers, the direct building cost is indicated. Additions Items not included in the direct building cost estimate include parking and walks, signage, landscaping, and miscellaneous site improvements. The cost for these items is estimated separately using the segregated cost sections of the MVS cost guide. Indirect Cost Items Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include developer overhead (general and administrative costs), property taxes, legal and insurance costs, local development fees and contingencies, lease -up and marketing costs and miscellaneous costs. The concluded indirect cost allowance is 20.0%. 48 2017 CBRE„nc CBRE Cost Approach MVS Conclusion The concluded direct and indirect building cost estimates obtained via the MVS cost guide are illustrated as follows: MARSHALL VALUATION SERVICE COST SCHEDULE Primary Building Type: Effective Age: Condition: Exterior Wall: Number of Stories: Office 93 YRS Poor CBS, Masonry, Steel & Wood 1 & 2 Height per Story: Number of Buildings: Gross Building Area: Net Rentable Area: Average Floor Area: 11'& 14' 2 14,820 SF 14,820 SF Building MVS Sec/Page Quality/Bldg. Class Building Component Component Sq. Ft. Base Square Foot Cost Square Foot Refinements Hot & Chilled Water (zoned) Elevator - None Historically Relevant Facade Subtotal Height and Size Refinements Number of Stories Multiplier Height per Story Multiplier Floor Area Multiplier Subtotal Cost Multipliers Current Cost Multiplier Local Multiplier Final Square Foot Cost Base Component Cost 10.0% 1 2 15/17 Good/B Shell & Interior 11,734 SF $201.95 ($27.75) ($5.52) $20.20 15/34 Average/C Shell 3,086 SF $59.06 ($2.16) $188.88 1.000 1.046 0.932 $56.90 1.000 0.977 1.083 $184.13 1.02 0.96 $60.21 1.04 0.97 $180.30 $2,115,629 $60.74 $187,429 Base Building Cost (via Marshall Valuation Service cost data) Additions Concrete Sidewalks & Curbs, Storm Water Drainage, Utilities & Misc. Site Improvements Direct Building Cost Indirect Costs Direct and Indirect Building Cost Rounded 10.0% of Direct Building Cost $2,303,058 $300,000 $2,603,058 $260,306 $2,863,364 $2,863,000 Compiled by CBRE 49 CBRE Cost Approach DIRECT AND INDIRECT COST CONCLUSION The indicated direct and indirect building costs for the subject are illustrated as follows: DIRECT AND INDIRECT COST CONCLUSION Source Subject Estimate Per SF MVS Cost Guide $2,863,000 $193.18 CBRE Estimate $2,863,000 $193.18 Compiled by CBRE ENTREPRENEURIAL PROFIT Entrepreneurial profit represents the return to the developer, and is separate from contractor's overhead and profit. The concluded entrepreneurial incentive is 15.0% of building cost and land value. ACCRUED DEPRECIATION There are essentially three sources of accrued depreciation: 1. physical deterioration, both curable and incurable; 2. functional obsolescence, both curable and incurable; and 3. external obsolescence. Physical Deterioration The following chart provides a summary of the remaining economic life. ECONOMIC AGE AND LIFE Actual Age Effective Age MVS Expected Life Remaining Economic Life Accrued Physical Incurable Depreciation Compiled by CBRE 93 Years 93 Years 100 Years 7 Years 93.0% Functional Obsolescence Based on a review of the design and layout of the improvements, no forms of curable functional obsolescence were noted. Because replacement cost considers the construction of the subject improvements utilizing modern materials and current standards, design and layout, functional incurable obsolescence is not applicable. External Obsolescence Based on a review of the local market and neighborhood, no forms of external obsolescence affect the subject. 50 © 2017 CBRE, Inc. CBRE Cost Approach COST APPROACH CONCLUSION The value estimate is calculated as follows. COST APPROACH CONCLUSION Primary Building Type: Office Height per Story: 1 1' & 14' Effective Age: 93 YRS Number of Buildings: 2 Condition: Poor Gross Building Area: 14,820 SF Exterior Wall: CBS, Masonry, Steel & Wood Net Rentable Area: 14,820 SF Number of Stories: 1 & 2 Average Floor Area: --- Direct and Indirect Building Cost $2,863,000 Entrepreneurial Incentive 15.0% of Total Building Cost & Land Value $1,066,950 Replacement Cost New $3,929,950 Accrued Depreciation Incurable Physical Deterioration 93.0% of Replacement Cost New less ($3,654,854) Curable Physical Deterioration Functional Obsolescence $0 External Obsolescence $0 Total Accrued Depreciation 93.0% of Replacement Cost New ($3,654,854) Depreciated Replacement Cost $275,097 Land Value $4,250,000 Indicated Value $4,525,097 Rounded $4,525,000 Curable Physical Deterioration $0 Lease -Up Discount $0 Indicated As Is Value $4,525,000 Rounded $4,525,000 Value Per SF $305.33 Compiled by CBRE 51 © 2017 CBRE, Inc. CBRE Insurable Value Insurable Value Insurable value is defined as follows: 1. the value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting costs of noninsurable items (e.g., land value) from market value. 2. value used by insurance companies as the basis for insurance. Often considered to be replacement or reproduction cost plus allowances for debris removal or demolition less deterioration and noninsurable items. Sometimes cash value or market value, but often entirely a cost concept. 6 3. a type of value for insurance purposes. CBRE, Inc. has followed traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry -accepted publications such as the Marshall Valuation Service. The methodology employed is a derivation of the cost approach and is not reliable for insurable value estimates. Actual construction costs and related estimates can vary greatly from this estimate. The insurable value estimate presented herein is intended to reflect the value of the destructible portions of the subject, based on the replacement of physical items that are subject to loss from hazards (excluding indestructible items such as basement excavation, foundation, site work, land value and indirect costs). In the case of the subject, this estimate is based upon the base building costs (direct costs) as obtained via the Marshall Valuation Service cost guide, with appropriate deductions. This analysis should not be relied upon to determine proper insurance coverage as only consultants considered experts in cost estimation and insurance underwriting are qualified to provide an insurable value. It is provided to aid the client/reader/user as part of their overall decision making process and no representations or warranties are made by CBRE, Inc. regarding the accuracy of this estimate. It is strongly recommended that other sources be utilized to develop any estimate of insurable value. 6 Marshall & Swift/Boeckh, LLC, Marshall Valuation Service, (Los Angeles: Marshall & Swift/Boeckh, LLC, 2010), Sec 3, 2. p 7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010), 1 02. 52 1,2 201 CRE» CBRE Insurable Value INSURABLE VALUE Primary Building Type: Effective Age: Condition: Exterior Wall: Number of Stories: Office 93 YRS Poor CBS, Masonry, Steel & Wood 1 & 2 Height per Story: Number of Buildings: Gross Building Area: Net Rentable Area: Average Floor Area: 11'& 14' 2 14,820 SF 14,820 SF Building MVS Sec/Page Quality/Bldg. Class Building Component Component Sq. Ft. Base Square Foot Cost Square Foot Refinements Hot & Chilled Water (zoned) Elevator - None Historically Relevant Facade Subtotal Height and Size Refinements Number of Stories Multiplier Height per Story Multiplier Floor Area Multiplier Subtotal Cost Multipliers Current Cost Multiplier Local Multiplier Final Square Foot Cost Base Component Cost 10.0% 1 2 15/17 Good/B Shell & Interior 11,734 SF $201.95 ($27.75) ($5.52) $20.20 15/34 Average/C Shell 3,086 SF $59.06 ($2.16) $188.88 1.000 1 .046 0.932 $56.90 1 .000 0.977 1 .083 $184.13 1.02 0.96 $60.21 1 .04 0.97 $180.30 $60.74 $2,115,629 $187,429 Base Building Cost Insurable Exclusions Indicated Insurable Value Rounded Value Per SF (via Marshall Valuation Service cost data) 10.0% of Total Building Cost $2,303,058 ($230,306) $2,072,752 $2,075,000 $140.01 Compiled by CBRE 53 © 2017 CBRE, Inc. CBRE Sales Comparison Approach Sales Comparison Approach The following map and table summarize the comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda. ENE iNiummayow 5 wimam imam= mama „ WEIN Ni Seweil Park NW sceett 836 _ JI uu imi00110.0' Inc e INIFFkLi-Mil.ligi. 'Mal In .. — gal '0 PM Sale 5 2210 NW Miami Ct Miami, FL 33127 '� m 'iRfhsc Nest - st --o NE 24th St NE 23rd St voi Wan olE1 Immo n ims Ala, I� ■ .gig-• _'y PaceaPalrk Subject Property 1357 N Miami Ave Miami, FL 33136 _ Ted alr,.. O �a n 1 11111/410 1ILr. Nor N NW S 968 SW 3rd tSt CIA dfh Ct > > D —n1 h m ". 1. 95 wales_ naffs 0104 MO , ``Sae2 e ,iiiIMI Fri 100 NE 1st Ave -MINMiami, FL 33132 Miami, FL 33132iiharAm Sale 3 140 N Miami Ave Miami, FL 33128 a rrl • iorearina 'frontPark a E der 'St Miamarma E 1st Sale4 2" 139 NE 1st St i Miami, FL 33132 n 886 TR Brickel Key 8 ia c a y n e Bay Pace Picnic Islands Biscayne Bay Aquatic Preserve Biscayne Island MacArthur cayy,� Watson Park Watson Island AIA Di Lido Island San Marino San Marco Island Island Miami Beach Hibiscus Island NH/bscus Or N�r6s 4ac'1164. Zq rrOPic Or C, Cpca ca4,e day Or Dodge Island Port of Miami Palm Island Lununus Island SUMMARY OF COMPARABLE OFFICE SALES No. Property Name Transaction Land YOC / NRA Actual Sale Adjusted Sale Price Type Date (Acres) Reno'd (SF) Price Price Per SF' Occ. 1 Old Post Office & Courthouse, 100 NE 1st Avenue Miami, FL 33132 2 Power Studios, 55-57 N.E. 1st Street Miami, FL 33132 3 140 Building, 140 N Miami Avenue Miami, FL 33128 4 Dade Commonwealth Building, 139 NE 1st Street, Miami, FL 33132 5 Wynwood Treehouse, 2210 NW Miami Court Miami, FL 33127 Sale Jun-14 0.21 1914/ 25,500 $11,000,000 $6,500,000 $254.90 39% 2003 Sale Sep-14 0.30 1950 22,341 $7,300,000 $7,300,000 $326.75 50% Sale Jan-15 0.34 1925 25,375 $7,750,000 $7,750,000 $305.42 89% Sale Nov-15 0.17 1927/ 38,122 $9,200,000 $9,200,000 $241.33 39% 2004 Sale Jun-16 0.31 1946 / 7,806 $3,850,000 $3,850,000 $493.21 0% 1995 Subj. Historic Citizen Bank Building, 1367 North Miami Avenue Miami, FL 33132 Contract Mar-17 0.24 1924 14,820 $5,500,000 $5,500,000 $371.12 0% 1 Adjusted sale price for cash equivalency, lease -up and/or deferred maintenance (where applicable) Compiled by CBRE © 2017 CBRE, Inc. 54 CBRE Sales Comparison Approach The sales utilized represent the best data available for comparison with the subject. They were selected from our research of comparable improved sales within a 1-to-15 block radius of the subject. These sales were chosen based upon location, age/condition, size and physical characteristics. DISCUSSION/ANALYSIS OF IMPROVED SALES We have considered similarities and differences for each of the comparable improved sales in direct comparison to the subject property at stabilization. We have considered adjustments to the comparable sales for differences and improving market conditions (time), condition of sale, i.e. premium for assemblage to an abutting property of same owner/buyer, location, size/value, age/condition, off-street parking and land -to -building ratios when compared to the subject property As Is. In addition, we are valuing the subject property As Is, including any contributory value of the TDRs. This is consistent with the majority of comparable sales analyzed that have local or national historic landmark potential and have all traded with the TDRs intact. Improved Sale One According to historic accounts and official references, this comparable sale property was constructed over three years, between 1912-14, and was designed by Kiehnel and Elliott and Oscar Wenderoth. In January 1989, the subject property was added to the U.S. National Register of Historic Places. More recently, the 1st & 2nd floor of the property was tenant leased to Office Depot in 1991 and then to the Miami Center for Architecture & Design in 2012, and still occupies the 1st & 2nd floors based on a five (5) and six (6) month lease term with an effective date of June 12, 2012, plus one (1), five (5) year option to extend. The underlying site zoning is a high density, T6-80, Urban Core classification and the historic status makes the ownership of the property eligible for the sell-off of approximately 188,920-SF of Transfer of Development Rights (TDRs), i.e. the spread between the existing building square footage and the "as of right" zoning FAR/FLR (floor-area-ratio/floor-lot-ratio), subject to approval and issuance of a Certificate of TDRs from the City of Miami. The prior owner acquired the property in 2000 and was considering a condo conversion plan. The current owner/buyer paid $1 1,000,000 for the Post Office and a 15,000-SF surface parking lot fronting NE 2nd Street. We have abstracted the surface lot from the acquisition of the Post Office by allocating $300.00-PSF to the site area based on market conditions at time of sale in June 2014. The current owner/developer is proposing a $6,336,000 construction cost budget to renovate and repurpose the property into a food hall with market and artisan retail & restaurant vendors and has gutted the basement (6,000-SF for back -of -house), and the 3rd floor & the 4th floor (3,500-SF attic) in preparation of that plan. The difference between the gross building area and the net rentable area presented is the basement & attic areas are in As Is condition at time of sale. 55 © 2017 CBRE, Inc. CBRE Sales Comparison Approach We adjusted Sale 1 upwards for improving market conditions between sale transaction date and the effective date of this appraisal. We also adjusted Sale 1 upwards for larger size/value relationship, downwards for superior age/condition and downwards for superior zoning/density & potential for TDRs when compared to the subject property. Improved Sale Two This comparable sale is a mixed -use retail/office building that abuts & wraps around the Old Post Office & Courthouse at the corner of NE 1st Street & NE 1st Avenue and was built in the 1950's- built as an addition to the Historic Post Office. The current buyer is assembling multiple properties within the downtown CBD submarket. The tenant base is comprised mostly of ground floor retail Chrono Sky Inc. Watch Shop, Yaffa & Sons Jewelry, Precious and Hippiechic. Seconed floor tenants comprise George Kovacs Investments, H & S Jewelry, Inter Arms Trading, JNS Jewelry Repair and Mario's Casting Jewelry. The transaction was facilitated with a short term, $4,000,000 purchase money mortgage. We also noted the seller previously acquired the property in March 2012 for $2,200,000. We adjusted Sale 2 downwards for superior property rights conveyed, i.e. leased fee interest with tenant revenue and upwards for improving market conditions between sale transaction date and effective date of the appraisal. We also adjusted Sale 2 upwards for larger size/value relationship, downwards for superior age/condition and downwards for superior retail tenancy when compared to the subject property. Improved Sale Three This is the sale of a multi -tenant building located at the southwest corner of NW 2nd Street and North Miami Avenue, within the CBD of Miami, Miami -Dade County, Florida. The property consists of a two-story building with 25,375 SF situated on a 0.34-acre site. The property was built during 1925 and was in fair condition at time of sale. The property was under contract for 30 to 45 days and closed January 2015 for $7,750,000 ($305.42/SF of building area). The buyer purchased the property with the intent to remodel & re -lease with retail and office tenants. This was an "arm's length" transaction. We adjusted Sale 3 downwards for superior property rights conveyed, i.e. leased fee interest with tenant revenue and upwards for improving market conditions between sale transaction date and effective date of the appraisal. We also adjusted Sale 3 upwards for larger size/value relationship and downwards for superior zoning/density & potential for TDRs when compared to the subject property. Improved Sale Four This comparable sale property is a 27,91 1-square foot (usable and 38,122-square feet of rentable area, including common areas), seven -story, urban office building located at 139 N.E. 1 st Street in the downtown Miami central business district (CBD). The improvements were constructed in 1925, renovated in 2004 and are situated on a 0.172-acre, high density, urban 56 CBRE Sales Comparison Approach core zoned site. Currently, the property is 39% leased. We also noted, that the property was originally developed to 17-stories and severely damaged in the Hurricane of 1926 forcing the removal of the top 10-floors. Also notable, is the property was added to the U.S. National Register of Historic Places in January 1989 based on the neo-classicism architectural style that represents the opulence of the 1920's economic boom. The purchase contract is dated September 2014 at a purchase price of $9,200,000 with the closing date revised several times and ultimately closing in November 2015. The buyer intends on adding 7-floors stacked on top of the existing roof and converting the subject property into a 122-room boutique hotel including retail/restaurant space and a sundeck with spa on the existing roof/future 8th floor. We adjusted Sale 4 downwards for superior property rights conveyed, i.e. leased fee interest with tenant revenue and upwards for improving market conditions between sale transaction date and effective date of the appraisal. We also adjusted Sale 4 upwards for larger size/value relationship, downwards for superior age/condition and downwards for superior zoning/density & potential for TDRs when compared to the subject property. Improved Sale Five This comparable sale is a vacant 7,806-SF office/warehouse property with fenced yard located at the northwest corner of NW 22nd Street and NW Miami Court within the Wynwood Arts District. The property was broker listed at $4,100,000 and contracted "all cash" at $3,850,000. The property was marketed as a renovation investment and the buyer finalized the approvals to demolish 4,608-SF of warehouse area and redevelop /renovate a total of 7,750-SF for multi - tenant retail showroom with open floor plans, mezzanines, glass storefronts, vanilla shell condition, polished concrete floors, exposed duct work and on -site parking. Rental rates for renovated retail space is $45.00-PSF, triple net for 1,028 & 2,095 square foot bays. We adjusted Sale 5 downwards for smaller size/value relationship, downwards for superior age/condition, downwards for superior off -site parking and downwards for superior one-story retail re -purpose versus multi -story when compared to the subject property. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. 57 CBRE Sales Comparison Approach OFFICE SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 5 Subject Transaction Type Sale Sale Sale Sale Sale Contract Transaction Date Jun-14 Sep-14 Jan-15 Nov-15 Jun-16 Mar-17 Year Built/Renovated 1914 / 2003 1950 1925 1927 / 2004 1946 / 1995 1924 NRA (SF) 25,500 22,341 25,375 38,122 7,806 14,820 Actual Sale Price $11,000,000 $7,300,000 $7,750,000 $9,200,000 $3,850,000 $5,500,000 Adjusted Sale Price 1 $6,500,000 $7,300,000 $7,750,000 $9,200,000 $3,850,000 $5,500,000 Price Per SF' $254.90 $326.75 $305.42 $241.33 $493.21 $371.12 Occupancy 39% 50% 89% 39% 0% 0% Adj. Price Per SF $254.90 $326.75 $305.42 $241.33 $493.21 $371.12 Property Rights Conveyed 0% -5% -5% -5% 0% 0% Financing Terms ' 0% 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% 0% Market Conditions (Time) 10% 10% 5% 5% 0% 0% Subtotal - Price Per SF $280.39 $341.45 $304.66 $240.73 $493.21 $371.12 Location 0% 0% 0% 0% 0% 0% Size 10% 10% 10% 20% -10% 0% Age/Condition -5% -10% -10% -5% -5% 0% Quality of Construction 0% 0% 0% 0% 0% 0% Parking 0% 0% 0% 0% -10% 0% Tenancy 0% -5% 0% 0% 0% 0% Multi -Story vs. 1-Story 0% 0% 0% 0% -10% 0% Zoning/Density/TDRs -5% 0% -5% -5% 0% 0% Total Other Adjustments 0% -5% -5% 10% -35% 0% Indicated Value Per SF $280.39 $324.38 $289.42 $264.80 $320.59 $371.12 'Adjusted for cash equivalency, lease -up and/or deferred maintenance (where applicable) Compiled by CBRE SALE PRICE PER SQUARE FOOT CONCLUSION Overall, Comparables 1, 3 & 5 were the most representative of the subject, and warranted greatest consideration because of location and physical characteristics. In addition, we have also considered the contract purchase price reported for the subject property. The following chart presents the valuation conclusion: SALES COMPARISON APPROACH NRA (SF) X Value Per SF = Value 14,820 X $280.00 = $4,149,600 14,820 X $320.00 = $4,742,400 VALUE CONCLUSION Indicated Value $4,500,000 Deferred Maintenance $0 Lease -Up Discount $0 Indicated As Is Value $4,500,000 Rounded $4,500,000 Value Per SF $303.64 Compiled by CBRE 58 CBRE Reconciliation of Value Reconciliation of Value The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS As Is on March 22, 2017 Cost Approach Sales Comparison Approach Income Capitalization Approach Reconciled Value Compiled by CBRE $4,525,000 $4,500,000 Not Applicable $4,500,000 The cost approach typically gives a reliable value indication when there is substantial depreciation of the improvements and a majority of the value is attributed to land value. Considering the quality & quantity of comparable land sale data and substantial amount of depreciation present in the property, the reliability of the cost approach is considered good. Therefore, the cost approach is considered equally applicable to the subject and is given weighted emphasis in the final reconciliation. In the sales comparison approach, the subject is compared to similar properties that have been sold recently or for which listing prices or offers are known. The sales used in this analysis are considered comparable to the subject, and the required adjustments were based on reasonable and well -supported rationale. In addition, market participants are currently analyzing purchase prices on investment properties as they relate to available substitutes in the market. Therefore, the sales comparison approach is considered to provide a reliable value indication, but has been given secondary emphasis in the final value reconciliation. Based on the foregoing, the market value of the subject has been concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised As Is Fee Simple Estate Date of Value March 22, 2017 Value Conclusion $4,500,000 Compiled by CBRE 59 © 2017 CBRE, Inc. CBRE Assumptions and Limiting Conditions Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off -site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super -efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. 60 2017 CBR0 n,. CBRE Assumptions and Limiting Conditions (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 1 1 . Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 61 2017 CBRE„nc CBRE Assumptions and Limiting Conditions 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 62 CBRE Addenda ADDENDA © 2017 CBRE, Inc. Addenda Addendum A LAND SALE DATA SHEETS Sale Land - Mixed -Use No. 1 Property Name Address Government Tax Agency Govt./Tax ID Cube Wynwood Site 222, 230 and 234 Northwest 24th Street Miami, FL 33127 United States Miami -Dade 01-3125-034-0440; -0450; -0460 Site/Government Regulations Land Area Net Land Area Gross Acres 0.336 0.336 Square feet 14,625 14,625 Site Development Status Shape Topography Utilities Semi -Finished Rectangular Level, At Street Grade All to site Maximum FAR Min Land to Bldg Ratio Maximum Density 6.15 0.16:1 N/A Frontage Distance/Street 150 ft NW 24th Street General Plan Specific Plan Zoning Entitlement Status N/A N/A T5-O, Urban Center & NRD-1 N/A Recorded Buyer True Buyer Recorded Seller True Seller Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc # RS JZ NW 24th, LLC RedSky Capital Fortis Development Group N/A Fee Simple/Freehold Vacant Land Retail/Office mixed -use N/A N/A 29862/4803 Marketing Time Buyer Type Seller Type Primary Verification N/A Developer N/A Buyer Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Sale 11/17/2015 $5,850,000 Cash to Seller $5,850,000 $0 $5,850,000 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer 11/2015 Sale RS JZ NW 24th, LLC Seller Fortis Development Group Price Price/ac and /sf $5,850,000 $17,426,273 / $400.00 © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 1 Units of Comparison $400.00 / sf $17,426,273.46 / ac N/A / Unit N/A / Allowable Bldg. Units $65.00 / Building Area Financial No information recorded This comparable represents the acquisition of a 0.34-acre commercial site for retail/office development within - the Wynwood District of Miami. The site is located at 222-234 NW 24th Street, Miami, Florida, immediately a�l1Yl west of Panther Coffee and NW 2nd Avenue. This area is the heart of Wynwood where recent and proposed residential and mixed -use developments are present, and within the NRD-1, Neighborhood Revitalization 0. District. The buyer, RedSky Capital, is proposing an 8-story, loft -style office building with ground floor retail, a breezeway for pedestrians and a rooftop terrace. RedSky paid $5,850,000, or $400-PSF of land and hired Arquitectonica to design the project, which is known as "Cube Wynwood". Permits were secured in late 2016, Map data ©2017 Goggle construction is slated to begin Q1 2017, and delivery in 2018. © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 2 Property Name Address Government Tax Agency Govt./Tax ID Miami Plaza 37-47 NE 15th Street 1523 & 1529 NE Miami Ct. & 1502 NE Miami PI. Miami, FL 33132 United States Miami -Dade 01-3136-008-0320, 0330, 0340 & 01-3136-0050-1010 & 0315 Site/Government Regulations Land Area Net Land Area Gross Acres 0.851 0.851 Square feet 37,049 37,049 Site Development Status Shape Topography Utilities Finished Rectangular Level, At Street Grade All Available Maximum FAR Min Land to Bldg Ratio Maximum Density 7.00 0.14:1 149.32 per ac Frontage Distance/Street Frontage Distance/Street Frontage Distance/Street N/A NE 15th Street N/A NE Miami Place N/A NE Miami Court General Plan Specific Plan Zoning Entitlement Status Sale Summary Recorded Buyer True Buyer Recorded Seller True Seller Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc # Mixed -use residential tower TBD T6-24 0, Urban Core Transect Zone N/A Miami Plaza LLC Melo Group 4 RIL, LLC & Prince Albert, LLC Alex Sherman & Jeff Kluger Fee Simple/Freehold Obsolete warehouse Mixed -use residential/retail Affinity International Realty #305-376-4145 N/A 29886/2888 & 29892/2447 Marketing Time Buyer Type Seller Type Primary Verification N/A Developer Developer Alex Sherman, Broker/Owner Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Sale 12/10/2015 $11,500,000 Cash to Seller $11,500,000 $1,964,918 $13,464,918 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 12/2015 Sale Miami Plaza LLC 4 RIL, LLC & Prince Albert, LLC $11,500,000 $15,831,767 / $363.44 CBRE Sale Land - Mixed -Use No. 2 Units of Comparison $363.44 / sf $15,831,767.20 /ac N/A / Unit $106,023 / Allowable Bldg. Units $51.92 / Building Area Financial No information recorded Map & Comments z criool Board Station Google This comparable land sale comprises a two part land assemblage & swap with an abutting owner/developer. The buyer, Miami Plaza, LLC is identified as The Melo Group who is one of the most active residential condo & rental tower developers in the submarket. The primary acquisition included 18,516-SF fronting the northeast corner of NE 15th Street and NE Miami plus two lots, totaling 10,290-SF, of non-contiguous site area for a purchase price of $11,500,000, facilitated with a $4,642,000 loan assumption from a private lender. The two, non-contiguous lots were subsequently swapped with the abutting owner/developer for the 0 secondary acquisition comprising 18,533-SF along the northwest corner of NE 15th Street and NE Miami Map data ='2017 Google Place for a purchase price of $1,964,918. The abutting owner/developer paid The Melo Group $1,216,500 for the two, non-contiguous lots totaling 10,290-SF and subsequently taking control of 37,252-SF of contiguous site area fronting NE 16th Street, thereby splitting the entire block between the two developers. The acquired site is zoned T6-24 0, which allows a variety of residential and commercial uses with a maximum Floor Lot Ratio of 7.0 plus 30% public benefit and 150 dwelling units per acre. The close proximity to the 50 NE 15th Street School Board Metromover Station permits parking ratio reductions of 30% based on TOD (Transit Oriented Development) and Transit Corridor. Plus, a modified residential density increase to 500 units per acre within the Omni neighborhood. © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 3 Property Name Address Government Tax Agency Govt./Tax ID Sun Electronics 511 NE 15th Street Miami, FL 33132 United States Miami -Dade 01-3231-009-0010 Site/Government Regulations Land Area Net Land Area Gross Acres Square feet 0.269 11,700 0.269 11,700 Site Development Status Finished Shape Rectangular Topography Level, At Street Grade Utilities In -place Maximum FAR Min Land to Bldg Ratio Maximum Density Frontage Distance/Street Frontage Distance/Street 12.00 0.08:1 148.92 per ac N/A Biscayne Blvd. N/A NE 15th Street General Plan Mixed -use Specific Plan Boutique hotel Zoning T6-36b 0 Entitlement Status None Sale Summary One Miami Biscayne Bay & Arts District Hotel, Recorded Buyer LLC Marketing Time 42 Month(s) True Buyer Vinay Rama, Mandala Holdings Buyer Type End User Recorded Seller Sun Electronics International Inc. Seller Type End User True Seller John Kimball Primary Verification John Kimball, Grantor Interest Transferred Fee Simple/Freehold Type Sale Current Use Obsolete office Date 2/19/2016 Proposed Use Boutique hotel Sale Price $8,000,000 Listing Broker FISBO Financing All Cash Selling Broker N/A Cash Equivalent $8,000,000 Doc # 29967/566 Capital Adjustment $0 Adjusted Price $8,000,000 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 02/2016 Sale One Miami Biscayne Bay Sun Electronics $8,000,000 $29,784,066 / $683.76 & Arts District Hotel, LLC International Inc. © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 3 Units.of Comparison $683.76 / sf $29,784,065.52 / ac N/A / Unit $200,000 / Allowable Bldg. Units $56.98 / Building Area Financial No information recorded SQUARE Too. e N: 9 .1' ri Map data @2017 Google This comparable land sale is located at the northeast corner of Biscayne Boulevard & NE 15th Street in the Miami Arts & Entertainment District in downtown Miami, Florida. This is a strategic location with high density redevelopment potential, mass transit connectivity, setback Biscayne Bay views from future upper floors, and high scoring walkability to the Adrienne Arsht Center for the Performing Arts, Museum Park, the American Airlines Arena and Bayside Marketplace. The buyer is an owner/developer of boutique hotels in south Florida and entered into a short term sale/leaseback with the seller who previously acquired the property in March 1998 for $440,000 and operated Sun Electronics. The existing building was originally developed in 1941 and comprises 4,440-SF. The seller renovated the property including roof top solar energy panels and other energy efficient features as part of the business and advocacy for alternative energy sources. The seller listed the property for $8,998,000 as a "for sale by owner" redevelopment opportunity. © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 1 Property Name Address 328-342 NW 29th Street 328-342 NW 29th Street Miami, FL 33127 United States Government Tax Agency Miami -Dade Govt./Tax ID 01-3125-024-2830, 2840 & 2850 Site/Government Regulations Land Area Net Land Area Gross Acres Square feet 0.482 21,000 0.482 21,000 Site Development Status Finished Shape Rectangular Topography Level, At Street Grade Utilities Available to site Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street N/A NW 29th Street General Plan Neighborhood Revitalization District - NRD-1 Specific Plan TBD Zoning T6-8 0, Urban Core Entitlement Status N/A Recorded Buyer RM 1 29th Wynwood, LLC Marketing Time N/A True Buyer Sam Strauch, Metrik Real Estate Buyer Type Private Investor Recorded Seller Gianno Associates LLC Seller Type Private Investor True Seller Art Cornfeld Primary Verification Buyer & Public Records Interest Transferred Leased Fee Current Use Showroom/Warehouse Proposed Use TBD Listing Broker Off -Market Transaction Selling Broker N/A Doc # 30214/2755 Type Sale Date 9/2/2016 Sale Price $6,300,000 Financing All Cash Cash Equivalent $6,300,000 Capital Adjustment $0 Adjusted Price $6,300,000 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 09/2016 Sale RM 1 29th Wynwood, LLC Gianno Associates LLC $6,300,000 $13,067,828 / $300.00 © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 4 Units.of Gornpariscn $300.00 / sf $13,067,828.25 / ac N/A / Unit N/A / Allowable Bldg. Units N/A / Building Area Financial No information recorded 4 IFVYNVVUOD Map data er2017 Google This comparable land sale comprises three (3) lots with two (2) obsolete office/warehouse buildings and a surface parking that date back to the 1950s & 1960s. The properties were tenant occupied by 328 Design Group and HES-Group. The site location is along the south side of NW 29th Street and within the NRD-1 Neighborhood Revitalization District boundary. The site is zoned T6-8 0, Urban Core Transect Zone that permits up to 150 dwelling units per acre and 2 to 8 story building height limits plus a 4-story benefit height and favorable setback & off-street parking requirements. The buyer is a local investor/speculator. © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 5 Property Name Address Government Tax Agency Govt./Tax ID 28-30 NE 14th Street 28-30 NE 14th Street Miami, FL 33132 United States Miami -Dade 01-3136-009-0070,0080 & 01-3136-009-010 Site/Government Regulations Land Area Net Land Area Gross Acres 0.394 0.394 Square feet 17,180 17,180 Site Development Status Shape Topography Utilities N/A N/A N/A N/A Maximum FAR Min Land to Bldg Ratio Maximum Density N/A N/A N/A Frontage Distance/Street Frontage Distance/Street 72 ft NE 14th Street 200 ft NE Miami Court General Plan Specific Plan Zoning Entitlement Status Sale Summary Recorded Buyer True Buyer Recorded Seller True Seller Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc # N/A N/A T6-24 0, Urban Core Transect Zone N/A Coral Ritz Residences LLC Jorge Buitrago & Fabian Gonzalez A & E District 14 Street, LLC Henry Cuervo Fee Simple/Freehold Obsolete retail strip & nightclub TBD "Off -Market" transaction N/A 30327/2584 Marketing Time Buyer Type Seller Type Primary Verification N/A Private Investor Private Investor Thomas Sherman, P.A. & Public Records Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Sale 11/22/2016 $6,098,900 All Cash $6,098,900 $0 $6,098,900 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 11/2016 Sale Coral Ritz Residences A & E District 14 Street, $6,098,900 $15,463,742 / $355.00 LLC LLC © 2017 CBRE, Inc. CBRE Sale Land - Mixed -Use No. 5 Unite of Comparison $355.00 / sf $15,463,742.39 / ac N/A / Unit N/A / Allowable Bldg. Units N/A / Building Area No information recorded NE 1 4thft 0 Google Map data a ©2017 Google This comparable sale is an obsolete retail strip building dating to 1945 that was previously owned by night club entrepreneur Carmel Ophir who operated Barfly and The Vagabond at this location. In 2014, the property traded to Russell Bruce (a.k.a. Global Adversity, LLC) for $2,700,000 with the transaction facilitated with a $2,497,500 SBA loan in favor of C1 Bank. Russell Bruce combined & renovated several of the former bar spaces to open Railroad Blues. However, the C1 Bank & the loan were acquired by Bank of Ozarks and there was pressure from the lender who forced a loan payoff and sale to A & E District 14 Street LLC. That transaction was followed by a sell-off to Coral Ritz Residences, LLC for $6,098,900. The site fronts NE 14th Street and is improved with a 5,400-SF strip retail building built -out with bar/night club interiors and fenced patio bar area. © 2017 CBRE, Inc. CBRE Addenda Addendum B IMPROVED SALE DATA SHEETS © 2017 CBRE, Inc. Sale Office - Multi Tenant No. 1 Property Name Address Government Tax Agency Govt./Tax ID Old Post Office & Courthouse 100 NE 1st Avenue Miami, FL 33132 United States Miami -Dade 01-0110-050-1140 Site/Government Regulations Land Area Net Land Area Gross Acres Square feet 0.214 9,330 N/A N/A Site Development Status Finished Shape Rectangular Topography Level, At Street Grade Utilities N/A Maximum Floor Area Maximum FAR N/A N/A Actual FAR 3.75 Frontage Distance/Street Frontage Distance/Street 112 ft NE 1st Ave 82 ft NE 1st Street Zoning N/A General Plan Historic Post Office Improvements Gross Building Area 35,000 sf Floor Count 4 Net Rentable Area (NRA) 25,500 sf Parking Type Surface Usable Area 17,000 sf Parking Ratio 1.96/1,000 sf Load Factor N/A Condition Good Status Existing Exterior Finish N/A Occupancy Type Multi -tenant Investment Class N/A Year Built 1914 Number of Buildings 1 Year Renovated 2003 Amenities N/A Sale Summary Recorded Buyer Stambul USA Marketing Time 13 Month(s) True Buyer Daniel Pena Giraldi Buyer Type Developer Recorded Seller Old Post Office LLC Seller Type Developer True Seller Scott Robbins Primary Verification Daniel Pena Giraldi, Buyer/Developer Interest Transferred Leased Fee Current Use Office Proposed Use Food Hall Listing Broker Tony Cho, Metro 1 Commercial Selling Broker Mika Mattingly, Sterling Equity Doc # 29193/1394 Type Sale Date 6/12/2014 Sale Price $11,000,000 Financing Other(See Comments) Cash Equivalent $11,000,000 Capital Adjustment $-4,500,000 Adjusted Price $6,500,000 © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 1 Transaction Summary plus Five -Year CBRE View Hist Transaction Date Transaction Type Buyer 06/2014 Sale Stambul USA Seller Old Post Office LLC Price Cash Equivalent Price/sf $11,000,000 $431.37 Units of Compariso r Static Analysis Method Other (see comments) Buyer's Primary Analysis Replacement Cost Analysis Net Initial Yield/Cap. Rate N/A Projected IRR N/A Actual Occupancy at Sale 39% Eff Gross Inc Mult (EGIM) N/A Op Exp Ratio (OER) N/A Adjusted Price / sf $254.90 Wtd. Avg. Lease Expiry N/A No information recorded According to historic accounts and official references, this comparable sale property was constructed over three years, between 1912-14, and was designed by Kiehnel and Elliott and Oscar Wenderoth. In January 1989, the subject property was added to the U.S. National Register of Historic Places. More recently, the 1st & 2nd floor of the property was tenant leased to Office Depot in 1991 and then to the Miami Center for Architecture & Design in 2012, and still occupies the 1st & 2nd floors based on a five (5) and six (6) month lease term with an effective date of June 12, 2012, plus one (1), five (5) year option to extend. f=1 Map data ©2017 Google The underlying site zoning is a high density, T6-80, Urban Core classification and the historic status makes the ownership of the property eligible for the sell-off of approximately 188,920-SF of Transfer of Development Rights (TDRs), i.e. the spread between the existing building square footage and the "as of right" zoning FAR/FLR (floor-area-ratio/floor-lot-ratio), subject to approval and issuance of a Certificate of TDRs from the City of Miami. The prior owner acquired the property in 2000 and was considering a condo conversion plan. The current owner/buyer paid $11,000,000 for the Post Office and a 15,000-SF surface parking lot fronting NE 2nd Street. We have abstracted the surface lot from the acquisition of the Post Office by allocating $300.00-PSF to the site area based on market conditions at time of sale in June 2014. The current owner/developer is proposing a $6,336,000 construction cost budget to renovate and repurpose the property into a food hall with market and artisan retail & restaurant vendors and has gutted the basement (6,000-SF for back -of -house), and the 3rd floor & the 4th floor (3,500-SF attic) in preparation of that plan. The difference between the gross building area and the net rentable area presented is the basement & attic areas are in As Is condition at time of sale. © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 2 Property Name Address Government Tax Agency Govt./Tax ID Power Studios 55-57 N.E. 1st Street Miami, FL 33132 United States Miami -Dade 01-0110-050-1150 Site/Government Regulations Land Area Net Land Area Gross Site Development Status Shape Topography Utilities Maximum Floor Area Maximum FAR Actual FAR Frontage Distance/Street Frontage Distance/Street Zoning General Plan Improvements Gross Building Area Net Rentable Area (NRA) Usable Area Load Factor Status Occupancy Type Year Built Year Renovated Amenities Sale Summary Recorded Buyer True Buyer Recorded Seller True Seller Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc # Acres 0.300 N/A Square feet 13,068 N/A Finished L Shaped Level, At Street Grade All available N/A N/A 2.07 N/A NE1st Street N/A NE 1st Ave N/A Mixed -use redevelopment 27,028 sf 22,341 sf 0 sf 0.00 Existing N/A 1950 N/A N/A Moishe Mana Moishe Mana Aaron Realty Corp. N/A Leased Fee Mixed -use retail/office TBD N/A Sterling Equity Realty LLC 29324/1248 Floor Count Parking Type Parking Ratio Condition Exterior Finish Investment Class Number of Buildings Marketing Time Buyer Type Seller Type Primary Verification Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price 2 On -Street N/A Average Concrete Block C 1 N/A Developer Private Investor Mika Mattingly, Buyer's Broker Sale 9/23/2014 $7,300,000 Other(See Comments) $7,300,000 $0 $7,300,000 © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 2 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf 09/2014 12/2011 Sale Moishe Mana Available/Listing N/A Aaron Realty Corp. Ameri Center $7,300,000 $3,800,000 $326.75 $170.09 Static Analysis Method Other (see comments) Buyer's Primary Analysis Other Net Initial Yield/Cap. Rate N/A Projected IRR N/A Actual Occupancy at Sale 50% Eff Gross Inc Mult (EGIM) N/A Op Exp Ratio (OER) N/A Adjusted Price / sf $326.75 Wtd. Avg. Lease Expiry N/A No information recorded This comparable sale is a mixed -use retail/office building that abuts & wraps around the Old Post Office & Courthouse at the corner of NE 1st Street & NE 1st Avenue and was built in the 1950's-built as an addition to the Historic Post Office. The current buyer is assembling multiple properties within the downtown CBD submarket. The tenant base is comprised mostly of ground floor retail Chrono Sky Inc. Watch Shop, Yaffa & Sons Jewelry, Precious and Hippiechic. Seconed floor tenants comprise George Kovacs Investments, H & S Jewelry, Inter Arms Trading, JNS Jewelry Repair and Mario's Casting Jewelry. The transaction was facilitated with a short term, $4,000,000 purchase money mortgage. We also noted the seller previously F'Aap data C2017 Goggle acquired the property in March 2012 for $2,200,000. © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 3 Property Name Address 140 Building 140 N Miami Avenue Miami, FL 33128 United States Government Tax Agency Mlami-Dade Govt./Tax ID 01-0110-060-1010 Site/Government Regulations Land Area Net Land Area Gross Acres 0.344 0.344 Square feet 15,000 15,000 Site Development Status Shape Topography Utilities Finished Rectangular Generally Level All Available Maximum Floor Area Maximum FAR Actual FAR N/A N/A 1.69 Frontage Distance/Street Frontage Distance/Street N/A NW 2nd Street N/A N. Miami Ave Zoning General Plan Improvements Gross Building Area Net Rentable Area (NRA) Usable Area Load Factor Status Occupancy Type Year Built Year Renovated Amenities Sale Summary Recorded Buyer True Buyer Recorded Seller True Seller Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc # T6-80 0, Urban Core N/A N/A 25,375 sf N/A N/A Existing Multi -tenant 1925 N/A N/A One Hundred Forty Holdings, LLC Moishe Mana Brown Asset Two, LLC Brown Asset Two, LLC Fee Simple/Freehold Office w/ Ground Retail Office w/ Ground Retail Mika Mattingly N/A 29486/1853 Floor Count Parking Type Parking Ratio Condition Exterior Finish Investment Class Number of Buildings Marketing Time Buyer Type Seller Type Primary Verification N/A On -Street 0.00/1,000 sf Fair Stucco C 1 N/A Developer Private Investor Listing Broker, Public Records & Media Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Sale 1/30/2015 $7,750,000 Cash to Seller $7,750,000 $o $7,750,000 © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 3 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Cash Equivalent Price/sf 01/2015 Sale One Hundred Forty Brown Asset Two, LLC Holdings, LLC $7,750,000 $305.42 Units of Comparison Static Analysis Method Other (see comments) Buyer's Primary Analysis Other Net Initial Yield/Cap. Rate N/A Projected IRR N/A Actual Occupancy at Sale 89% Eff Gross Inc Mult (EGIM) N/A Op Exp Ratio (OER) N/A Adjusted Price / sf $305.42 Wtd. Avg. Lease Expiry N/A Financial No information recorded Map & Comments This is the sale of a multi -tenant building located at the southwest corner of NW 2nd Street and North Miami t Avenue, within the CBD of Miami, Miami -Dade County, Florida. The property consists of a two-story building It 2RD `' - with 25,375 SF situated on a 0.34 acre site. The property was built during 1925 and was in fair condition at time of sale. The property was under contract for 30 to 45 days and closed January 2015 for $7,750,000 ($305.42/SF of building area). The buyer purchased the property with the intent to remodel & re -lease with retail and office tenants. This was an "arms length" transaction. Map data 02017 Coogle © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. Property Name Address Dade Commonwealth Building - As Is 139 NE 1st Street Miami, FL 33132 United States Government Tax Agency Miami -Dade Govt./Tax ID N/A Site/Government Regulations Land Area Net Land Area Gross Acres 0.170 N/A Square feet 7,500 N/A Site Development Status Shape Topography Utilities Finished Rectangular Level, At Street Grade In -place Maximum Floor Area Maximum FAR Actual FAR Frontage Distance/Street Zoning General Plan N/A N/A 3.72 50 ft NE 1st Street T6-80, Urban Core Transect Zone N/A Gross Building Area Net Rentable Area (NRA) Usable Area Load Factor Status Occupancy Type Year Built Year Renovated Amenities 43,265 sf 38,122 sf 27,911 sf N/A Existing Multi -tenant 1927 2004 N/A Floor Count 7 Parking Type None Parking Ratio 0.00/1,000 sf Condition Average Exterior Finish Masonry Investment Class C Number of Buildings 1 Recorded Buyer True Buyer Recorded Seller True Seller Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc # Dream Downtown Miami, LLC Wynwood Fund Titan Development Partners, LLC Titan Development Partners, LLC Leased Fee Office Re -purposed to boutique hotel N/A N/A 29862-4695 Marketing Time Buyer Type Seller Type Primary Verification 24 Month(s) Private Syndicator Private Investor Contract & Appraisal on -file Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Sale 11/20/2015 $9,200,000 Cash to Seller $9,200,000 $0 $9,200,000 © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer 11/2015 Sale Dream Downtown Miami, Titan Development LLC Partners, LLC 11/2015 Sale Dream Downtown Miami, Titan Development LLC Partners, LLC 09/2013 N/A N/A N/A 05/2013 N/A N/A N/A Seller Price Cash Equivalent Price/sf $9,200,000 $9,200,000 N/A N/A $241.33 $241.33 N/A N/A Static Analysis Method Other (see comments) Eff Gross Inc Mult (EGIM) N/A Buyer's Primary Analysis Other Op Exp Ratio (OER) N/A Net Initial Yield/Cap. Rate N/A Adjusted Price / sf $241.33 Projected IRR N/A Wtd. Avg. Lease Expiry N/A Actual Occupancy at Sale 39% No information recorded Epnv puz MN Goog - z rn This comparable sale property is a 27,911-square foot (usable and 38,122-square feet of rentable area, Cu151. 1 including common areas), seven -story, urban office building located at 139 N.E. 1st Street in the downtown 1 Miami central business district (CBD). The improvements were constructed in 1925, renovated in 2004 and y P are situated on a 0.172-acre, high density, urban core zoned site. Currently, the property is 39% leased. We rc I: ro m also noted, that the property was originally developed to 17-stories and severely damaged in the Hurricane co of 1926 forcing the removal of the top 10-floors. Also notable, is the property was added to the U.S. National En- Register of Historic Places in January 1989 based on the neo-classicism architectural style that represents Map data ©2017 Google the opulence of the 1920's economic boom. The purchase contract is dated September 2014 at a purchase price of $9,200,000 with the closing date revised several times and ultimately closing in November 2015. The buyer intends on adding 7-floors stacked on top of the existing roof and converting the subject property into a 122-room boutique hotel including retail/restaurant space and a sundeck with spa on the existing roof/future 8th floor. © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 5 Property Name Address Government Tax Agency Govt./Tax ID Wynwood Treehouse 2210 NW Miami Court Miami, FL 33127 United States Miami -Dade 01-3125-067-0020 Site/Government Regulations Land Area Net Land Area Gross Acres Square feet 0.306 13,345 0.306 13,345 Site Development Status Finished Shape Rectangular Topography Level, At Street Grade Utilities In -place Maximum Floor Area Maximum FAR N/A N/A Actual FAR 0.58 Frontage Distance/Street N/A NW Miami Court Frontage Distance/Street N/A NW 22nd Street Zoning General Plan T5-O, Urban Center & NRD-1 Wynwood Improvements Gross Building Area N/A Floor Count 1 Net Rentable Area (NRA) 7,806 sf Parking Type N/A Usable Area N/A Parking Ratio 0.00/1,000 sf Load Factor N/A Condition Fair Status N/A Exterior Finish N/A Occupancy Type Single Tenant Investment Class N/A Year Built 1946 Number of Buildings N/A Year Renovated 1995 Amenities N/A Sale Summary Recorded Buyer Nostrand Avenue Holdings of Brooklyn, LLC Marketing Time 4 Month(s) True Buyer Phil Knoll Buyer Type Private Investor Recorded Seller Montauk Miami Realties, Inc. Seller Type Private Investor True Seller Tim Zyto Primary Verification Tony Cho, Listing Broker Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant office/warehouse Date 6/30/2016 Proposed Use Renovate to retail Sale Price $3,850,000 Listing Broker Metro 1 Commercial #305-571-9991 Financing Cash to Seller Selling Broker Tom Rotsztain, Rotsztain & Sulichin #305-788- Cash Equivalent $3,850,000 2878 Doc# 30141/136 Capital Adjustment $0 Adjusted Price $3,850,000 © 2017 CBRE, Inc. CBRE Sale Office - Multi Tenant No. 5 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer 06/2016 Sale Units of Comparison Static Analysis Method Buyer's Primary Analysis Net Initial Yield/Cap. Rate Projected IRR Actual Occupancy at Sale Seller Nostrand Avenue Montauk Miami Realties, Holdings of Brooklyn, LLC Inc. Other (see comments) Other N/A N/A 0% Price Cash Equivalent Price/sf $3,850,000 Eff Gross Inc Mult (EGIM) N/A Op Exp Ratio (OER) N/A Adjusted Price / sf $493.21 Wtd. Avg. Lease Expiry N/A $493.21 Financial No information recorded Map & Comments Google This comparable sale is a vacant 7,806-SF office/warehouse property with fenced yard located at the northwest corner of NW 22nd Street and NW Miami Court within the Wynwood Arts District. The property was broker listed at $4,100,000 and contracted "all cash" at $3,850,000. The property was marketed as a renovation investment and the buyer finalized the approvals to demolish 4,608-SF of warehouse area and redevelop /renovate a total of 7,750-SF for multi -tenant retail showroom with open floor plans, mezzanines, glass storefronts, vanilla shell condition, polished concrete floors, exposed duct work and on -site parking. Rental rates for renovated retail space is $45.00-PSF, triple net for 1,028 & 2,095 square foot bays. Map data ©2017 Google Perimeter Rd © 2017 CBRE, Inc. CBRE Addenda Addendum C LEGAL DESCRIPTION © 2017 CBRE, Inc. 17965Q4?0 RCG. Return to: (enclose self-addressed envelope) Name: Ronald G. Baker, Esq. Russo & Baker, P.A. • ,Address: 4675 Ponce de Leon Boulevard Suite #301 Coral Gables, FL 33145 This Instrument Prepared By: Name: Ronald G. Baker, Esq_ Russo & Baker, P.A. Address: 4675 Ponce de Leon Boulevard Suite #301 Coral Gables, FL 33146 Property Appraiser's Parcel Identification No: 01-3136-009-0220 WARRANTY P ED ' sR1:!4 L`lt,e�, %'"' TfF '+3 1h:17 GOC SU DEE 1 +'1'f i.+fit 11r:? r 4e7 HOVE`.' F.UVfl. i Lr : C ;CC %!`•LIhaC'i . Fl THIS INDENTURE, made this s'& day of • ,7-!W , 199a, BETWEEN JAY 8. SALBY and JAMES M. GRANTTO, Individually and as Trustees, of Dade County, Florida, Grantor*, and BIG TIME EQUIPMENT, INC., a Florida Corporation, whose federal identification number is , and whose post office address is 1367 N. Miami Avenue, Miami, FL33/36, of the County of Dade, State of Florida, Grantee*, WITNEBSETH: That said Grantor, for and in consideration of the sum of Ten and no/100ths Dollars ($10.00) and other good and valuable 'considerations to said Grantor in hand paid by said Grantee, the receipt of which is hereby acknowledged, has granted, bargained, and sold to the said Grantee, and Grantee's heirs and assigns forever, the following described land, situate, lying and being in Dade County, Florida, to -wit: All of Lot 16 and the North 35 feet of Lot 15, in Block 2, of BA%DWIN AND CXARS SUBDIVISION, according to the Plat thereof, recorded in Plat Book A, at Page 57, of the Public Records of Dade County, Florida. SUBJECT TO: Conditions, restrictions, limitations, easements, and reservations of record, if any, applicable zoning ordinances, and taxes for the current year. THE SUBJECT PROPERTY IS COMMERCIAL PROPERTY AND I8 NO3 THE HOMESTEAD OF EITBER GRANTOR. and said Grantor does hereby fully warrant the title to said land, and will .defend the same against the lawful claims of all persons whomsoever. *"Grantor" and "Grantee" are used for singular or plural, as context requires. IN WITNESS WHEREOF, Grantor has hereunto set Grantor's hand. and seal the day and year first above written. Signed, sealed and delivered in the presence of: 4024e4 ; &9,ee-ie (Printed tNaa}e of Wss) (Printed Name of Witness) Individually and as Trustees whose address is: 6911 N. W. 51'+ Street Miami, FL 33166 (L.S.) REorrC., I.7965N24T1 STATE OF FLORIDA COUNTY OF DADE I HEREBY CERTIFY that on' this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, personally appeared JAY 8. SALBY and JAINES -N. GRABATO, Individually and as Trustees, who are PERSONALLY KNOWN TO MB,.and to me known to be the persona described in and who executed the foregoing instrument and they, acknowledged 1-fore me that they executed the same. WITNESS my aforesaid, this 0 2017 CBRE, Inc. d and offi day of h*�Y PUg OfWAAL WWI? SM. . MONK COMMON }WIMP 1 '11 F MY oO owalui Ni ■xP. �tF `04 in the Coyr1py and State last ,,I9f9B. (Stamped Commission of Notary) w•..+w� •r, n•:.04 wFCGRDSnook S.: i AUVIN r u .2 1n11'd7 Addenda Addendum D PRECIS METRO REPORT - ECONOMY.COM, INC. © 2017 CBRE, Inc. MOODY'S ANALYTICS MIAMI-MIAMI BEACH-KENDALL FL Data Buffet® MSA code: IUSA DMMIA ECONOMIC DRIVERS TOURIST DESTINATION FINANCIAL $£€ CENTER BUSINESS CYCLE STATUS EMPLOYMENT GROWTH RANK mi'15-20 140 2nd quintile Best=1, Worst=408 RELATIVE COSTS U.S.=100% ANALYSIS VITALITY U.S.=100% Best=1, Worst=401 • Expansion • gn RECOVERY At Risk Moderating Recession ■ In Recession ■ STRENGTHS Strong ties to Latin America. Luxury status attracts international capital. International trade poised to accelerate. Well -developed shipping and distribution infrastructure. WEAKNESSES High household debt burden. Congested roads and airport. Industrial structure that leaves economy susceptible to business cycle downturns. FORECAST RISKS SHORT TERM LONGTERM RISK EXPOSURE 2016-2021 461stquintile Highest=1 Lowest=401 UPSIDE International ties boost construction, finance and trade by more than expected. Commercial development and transit hub shift MIA's growth path upward. Stronger population growth. DOWNSIDE Foreclosures undermine house prices, balance sheets suffer. International immigration weakens. Strong dollar slows international tourism. to DY'S RATING Aa2 COUNTY AS OF APR 11, 2016 Recent Performance. Miami -Miami Beach - Kendall is not faring as well as the rest of Florida and the nation, but economic growth in the metro division has picked up since the first quarter. MIA's unemployment rate is no longer falling, but this has more to do with a turn up in the labor force than a worsening in employment. A more favor- able mix of job creation and limited supply of Labor are driving up pay; average hourly eamings are rocketing higher. The more than 6% annual- ized gain since April is the biggest jump for any six-month period since the decade began. More jobs and income are helping housing. According to the Miami Association of Realtors, the median sale price for a single-family home is $300,000, the highest level since the Great Recession. International appeal. MIA's economy will grow faster than the nation's because the met- ro division attracts some of the most talented and productive workers from across the West- ern Hemisphere. MIA is the only metro area or metro division in the U.S. where more than half of the population was born in a foreign country, and more than 90% of these newcomers were born in Latin America, which includes Cuba. Over the Last two generations, these migrants have transformed MIA from a sleepy retiree destina- tion to the cultural, financial and media capital of Spanish-speaking America. This growth should carry on, but hostility to trade and immigration among the American electorate and the incom- ing administration in Washington DC represents a new threat to MIA's economy. Cruise control. After a Lackluster 2016, job growth in leisure/hospitality will accelerate next year. In particular, cruise Lines are helping to fuel this growth. In the last fiscal year, the city's port welcomed 5 million passengers, a world record. The current fiscal year will be even busier than the Last, as two new cruise ships will begin service from PortMiami this quarter. The port is also prep- ping for growth beyond this quarter -the facility recently won a $33 million state grant that will be used to build a cruise terminal capable of process- ing more than 5,000 cruise passengers at once. Growth in the cruise industry is also good for jobs in professional services in MIA, which is the head- quarters of Carnival Corp. and Royal Caribbean Cruises Ltd., the world's two largest cruise lines. FIU. Florida International University has emerged as a key driver for MIA, but it will con- tribute little to growth over the next five years. With an annual operating budget of more than $1 billion, the state's second Largest student body, and more than 5,000 full- and part-time employees, the school is a stable source of in- come for many households. However, compared with other Large institutions, the economic im- pact of FIU is muted because 41% of its enrollees are part-time students who did not migrate to MIA; despite FIU's name, its student body mostly consists of local residents. In 2005, the administration capped enrollment in favor of improving the quality of the academic programs. In addition, student growth will be hampered because of America's shrinking popu- lation of college -aged adults. According to the U.S. Census Bureau, the number of U.S. residents who are 18 to 24 years old will decline by 1.3% over the next five years. The projection is even worse for Hispanics, who account for nearly two- thirds of FIU's enrollment -the population of college -aged Hispanics will fall by 3.3% by 2021. In the near term, Miami -Miami Beach -Ken- dall will strengthen thanks in part to its large port, which will create jobs in trade, manufac- turing and tourism. Over the forecast horizon, MIA's international character, combined with its high -skilled, bilingual workforce, will help it best the U.S. in household income growth. Kwame Donaldson 1-866-275-3266 November 2016 help@economy.com 2010 201�2014 2015 INDICATORS 2016 2017 2018 2019 2020 2021 104.1 - 0.5 985.1 - 0.3 11.1 8.9 42.0 2,508.2 1.8 30.6 941 2,262 195.7 104.4 0.2 1,007.3 2.2 9.4 4.6 41.7 2,580.1 2.9 58.8 962 1,656 183.0 106.3 1.8 1,031.3 2.4 8.4 3.2 42.0 2,611.2 1.2 17.9 1,819 3,250 185.9 108.4 2.0 1,056.7 2.5 7.6 -0.4 42.4 2,641.9 1.2 17.4 2,266 8,050 207.7 111.1 2.5 1,089.4 3.1 6.9 6.8 42.9 2,668.9 1.0 16.2 2,077 5,654 233.6 113.8 2.4 1,123.4 3.1 6.1 6.2 43.8 2,693.1 0.9 11.1 2,800 9,817 257.4 Gross metro product (C09$ bil) % change Total employment (ths) % change Unemployment rate (%) Personal income growth (%) Median household income ($ ths) Population (ths) % change Net migration (ths) Single-family permits (#) Multifamily permits (#) FHFA house price (1995Q1=100) 115.9 121.3 127.0 132.3 136.8 141.4 1.9 4.6 4.7 4.1 3.4 3.4 1,142.2 1,166.4 1,189.8 1,212.8 1,228.8 1,235.3 1.7 2.1 2.0 1.9 1.3 0.5 5.3 4.6 3.9 3.5 3.4 3.7 4.9 6.0 7.3 7.1 6.0 5.4 45.3 47.0 49.2 51.3 53.0 54.6 2,728.7 2,767.0 2,806.8 2,847.1 2,887.4 2,926.5 1.3 1.4 1.4 1.4 1.4 1.4 24.7 27.6 29.1 29.7 29.9 28.8 3,345 5,557 7,033 7,630 7,183 6,978 5,671 7,409 7,925 7,080 6,000 6,330 282.0 296.3 300.3 292.7 284.7 281.8 64 © 2017 CBRE, Inc. MOODY'S ANALYTICS / Precis® U.S. Metro / South / November 2016 PRECIS® U.S. METRO SOUTH » Miami -Miami Beach -Kendall FL ECONOMIC HEALTH CHECK BUSINESS CYCLE INDEX 3-MO MA May 16 Jun 16 Jul 16 2. 5.6 5.4 59.8 59.4 56.5 56.2 35.1 35.1 102.8 102.9 3,125 3,073 5,313 3,756 Aug 16 Sep 16 Oct 16 2.8 1.8 0.2 5.3 5.2 5.2 5.2 59.1 59.0 59.0 59.1 56.0 55.9 56.0 56.1 35.1 35.0 35.0 35.1 103.0 103.0 103.0 102.9 2,557 3,013 3,308 3,004 2,739 3,904 4,794 7,410 Employment, change, the Unemployment rate, % Labor force participation rate, % Employment -to -population ratio, % Average weekly hours, # Industrial production, 2007=100 Residential permits, single-family, # Residential permits, multifamily, # Unchanged from prior 3-mo MA Sources: BLS, Census Bureau, Moody'sAnaly- tics Worse than prior 3-mo MA 125 120 115 110 105 100 95 MIA JAN 2002=100 07 Source: Moody's Analytics 10 FL 13 U.S. 16 CURRENT EMPLOYMENT TREND, HOUSE PRICE 10 8 6 4 2 0 -2 -4 -6 % CHANGE YR AGO 11 12 13 14 15 16 Government Goods producing Private services Sources: BLS, Moody'sAnalytics Total Mining Construction Manufacturing Trade Trans/Utilities Information Financial Activities Prof & Business Svcs. Edu & Health Svcs. Leisure & Hospitality Other Services Government % CHANGE YR AGO, 3-MO MA Feb 16 Jun 16 Oct 16 1.8 1.8 1.3 -0.1 -0.2 0.1 13.8 15.3 10.4 1.4 -2.3 -4.7 -0.1 1.1 1.4 2.9 0.0 -1.5 -1.5 -1.3 -1.8 3.2 4.4 3.5 1.7 2.5 3.0 3.1 1.4 0.5 0.9 2.0 1.5 2.7 0.9 -0.6 -0.3 -0.4 -0.1 Sources: BLS, Moody'sAnalytics 350 300 250 200 150 100 50 1998Q1=100, NSA 98 01 04 07 10 13 16 MIA FL - U.S. Sources: FHFA, Moody'sAnalytics RELATIVE EMPLOYMENT PERFORMANCE VACANCY RATES 130 125 120 115 110 105 100 95 90 85 JAN 2006=100 ! I -I--- I I I I I I I I I! I I I I I I 06 07 08 09 10 11 Sources: BLS, Moody'sAnalytics 12 13 14 15 16F 17F 18F 19F 20F 21F 22F 23F 24F 25F MIA FL U.S. HOMEOWNER, % HOUSES FOR SALE 0 1 2 3 RENTAL, % INVENTORY FOR RENT 0 2 4 6 8 A MIA . FL U.S. Sources: Census Bureau, ACS, Moody'sAnalytics, 2015 4 10 BUSINESS COSTS EDUCATIONAL ATTAINMENTc POPULATION BY AGE, % Total Unit labor Energy State and local taxes Office rent U.S.=100 0 20 40 60 80 100 120 140 2009 Source: Moody'sAnalytics 2014 100% - 80% - 60% - 40% - 20% - 0% - % OF ADULTS 25 AND OLDER 1i 24 20 10 30 12 MIA FL ▪ < High school • Some college • Graduate school 12 29 13 U.S. High school College Sources: Census Bureau, Moody'sAnalytics, 2015 >_75 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 0 1 2 3 4 5 6 7 8 MIA U.S. Sources: Census Bureau, Moody'sAnalytics, 2015 MOODY'SANALYTICS / Precis® U.S. Metro / South / November2016 © 2017 CBRE, Inc. 65 PRECIS® U.S. METRO SOUTH » Miami -Miami Beach -Kendal[ FL TOP EMPLOYERS Baptist Health Systems of Southern Florida University of Miami Publix Super Markets Inc. Jackson Health System American Airlines Miami -Dade Community College AT&T Wells Fargo & Co. American Sales & Management Macy's Miami Children's Hospital Royal Caribbean Intl./ Celebrity Cruise Mount Sinai Medical Center 14,627 13,428 12,000 10,010 9,939 6,787 6,629 5,100 3,500 3,368 3,345 3,331 3,221 JPMorgan Chase and Co. Florida Power & Light Co. Florida International University Carnival Cruise Lines Winn -Dixie Stores Inc. HCA 3,200 3,178 3,132 3,065 3,000 2,412 Veterans Affairs Medical Center 2,300 Sources: Guide to Military Installations, 2011, South Florida Business Journal, 2014, The Beacon Council, April 2007 PUBLIC Federal State Local 2015 19,714 17,978 100,351 L INDUSTRIAL DIVERSITY Most Diverse (U.S.) 1.00 - 0.80 - 0.60 - 0.40 - 0.20 - 0.00 Least Diverse 0.62 EMPLOYMENT VOLATILITY Due to U.S. fluctuations Relative to U.S. 100%- 80% 60% 40% 20% 0% - �Not due toU.S. Due to U.S. MIA U.S. COMPARATIVE EMPLOYMENT AND INCOME Sector % of Total Employment Mining Construction Manufacturing Durable Nondurable Transportation/Utilities Wholesale Trade RetailTrade Information Financial Activities Prof. and Bus. Services Educ. and Health Services Leisure and Hosp. Services Other Services Government MIA 0.0 % 3.6% 3.5% 57.6% 42.4% 6.0% 6.5% 13.3% 1.7% 7.0% 14.2% 15.3% 11.9% 4.7% 12.3% Average Annual Earnings FL U.S. MIA FL U.S. 0.1% 0.5% $5,467 $7,023 $110,528 5.3% 4.5% $54,575 $50,987 $64,354 4.2% 8.7% $55,504 $68,746 $80,667 67.9% 63.0% nd $72,931 $82,450 32.1% 37.0% nd $60,466 $77,689 3.3% 3.8% $58,753 $58,935 $67,456 4.1% 4.1% $75,006 $76,500 $82,548 13.4% 11.0% $35,761 $33,779 $34,289 1.7% 1.9% $144,170 $88,771 $110,216 6.6% 5.7% $37,488 $37,441 $54,785 15.1% 13.9% $52,015 $52,409 $67,615 14.8% 15.5% $52,776 $52,875 $53,853 14.0% 10.7% $33,659 $28,369 $27,201 4.1% 4.0% $28,963 $32,615 $36,830 13.4% 15.5% $80,557 $71,992 $75,980 Sources: Percent of total employment- BLS, Moody'sAnalytics, 2015, Average annual earnings-BEA, Moody'sAnalytics, 2014 INTO MIAMI FL Fort Lauderdale FL New York NY West Palm Beach FL Orlando FL Tampa FL Austin TX Atlanta GA Cape Coral FL Los Angeles CA Washington DC Total in -migration FROM MIAMI FL Fort Lauderdale FL Austin TX West Palm Beach FL Orlando FL New York NY Tampa FL Atlanta GA Cape Coral FL Houston TX Jacksonville FL Total out -migration Number of Migrants 19,270 5,134 2,828 2,410 1,882 1,812 1,515 1,137 1,033 998 69,524 29,394 6,477 4,120 3,902 3,699 2,916 2,508 1,895 1,646 1,255 93,489 Net migration -23,965 NET MIGRATION, # 25,000 1 20,000 - 15,000 - 10,000 - 5,000 - 0 Domestic Foreign Total 12 13 2012 -17,931 35,818 17,887 2013 -21,354 38,777 17,423 14 15 2014 2015 -27,787 -32,723 43,953 43,862 16,166 11,139 Sources: IRS (top), 2014, Census Bureau, Moody'sAnalytics PER CAPITA INCOME LEADING INDUSTRIES BY WAGE TIER 48 44 - 40 36 $ THS I I I I I I I I I 06 07 08 09 10 11 12 13 14 15 2015 MIA $43,980 FL $44,429 U.S. $48,112 Sources: BEA, Moody'sAnalytics HIGH-TECH EMPLOYMENT Ths % of total MIA 28.0 2.5 U.S. 6,767.6 4.8 HOUSING -RELATED EMPLOYMENT Ths % of total MIA 104.6 9.3 U.S. 13,151.2 9.3 Source: Moody'sAnalytics, 2015 NAICS Industry Location Employees Quotient (ths) 6211 V 5411 = GVF 5221 Offices of physicians Legal services Federal Government Depository credit intermediation 1.2 2.5 0.9 1.2 24.1 22.0 19.6 15.3 GVL i3 6221 F GVS 4811 Local Government General medical and surgical hospitals State Government Scheduled air transportation 7225 Restaurants and other eating places 7211 Traveler accommodation 0 4451 Grocery stores 0.9 1.2 0.5 4.5 1.0 2.1 1.3 100.2 43.0 18.1 14.3 77.8 29.7 25.9 5613 Employment services Source: Moody'sAnalytics, 2015 0.7 19.2 66 © 2017 CBRE, Inc. MOODY'S ANALYTICS / Precis® U.S. Metro / South / November 2016 About Moody's Analytics Moody's Analytics helps capital markets and credit risk management professionals worldwide respond to an evolving marketplace with confidence. With its team of economists, the company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research, and financial risk management. By offering Leading -edge software and advisory services, as well as the proprietary credit research produced by Moody's Investors Service, Moody's Analytics integrates and customizes its offerings to address specific business challenges. Concise and timely economic research by Moody's Analytics supports firms and policymakers in strategic planning, product and sales forecasting, credit risk and sensitivity management, and investment research. 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ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by Moody's from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. Under no circumstances shall Moody's have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of Moody's or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if Moody's is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The financial reporting, analysis, projections, observations, and other information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell, or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation prior to investing. © 2017 CBRE, Inc. Addenda Addendum E CLIENT CONTRACT INFORMATION © 2017 CBRE, Inc. VALUATION & ADVISORY SERVICES February 28, 2017 Jason Walker Executive Director OMNI / MIDTOWN CRA 1401 North Miami Avenue, 2nd Floor Miami, FL 33136 Phone: 305.679.6869 Email: jwalker@miamigov.com RE: Assignment Agreement Historic Bank Building Historic Citizen Bank Building, 1367 North Miami Avenue Miami, FL 33132 CBRE CBRE, Inc, 777 Brickell Avenue, Suite 910 Miami, FL 33131 Stuart J. Lieberman, MAI Vice President Dear Mr. Walker: We are pleased to submit this proposal and our Terms and Conditions for this assignment. PROPOSAL SPECIFICATIONS Purpose: To estimate the Market Value of the referenced real estate Premise: As Is Rights Appraised: Fee Simple Intended Use: Internal Decision Making for Acquisition purposes Intended User: The intended user is OMNI / MIDTOWN CRA, and such other parties and entities (if any) expressly recognized by CBRE as "Intended Users" (as further defined herein). Reliance: Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. Inspection: CBRE will conduct a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of appraisal. © 2017 CBRE, Inc. Jason Walker Assignment Agreement Page 2 of 8 February 28, 2017 Valuation Approaches: Report Type: Appraisal Standards: Appraisal Fee: Expenses: Retainer: Payment Terms: Delivery Instructions: All three traditional approaches to value will be considered. Standard Appraisal Report USPAP $4,000 Fee includes all associated expenses A retainer is not required for this assignment Final payment is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. The fee is considered earned upon delivery of the draft report. CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report. An Adobe PDF file via email will be delivered to jwalker@miamigov.com. The client has requested Three (3) bound final copy (ies). Upon Client's request Upon Client's request 2.5 Weeks / 12 business days after the Start Date The appraisal process will start upon receipt of your signed agreement and the property specific data. These specifications are subject to modification if this proposal is not accepted within 30 business days from the date of this letter. When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties hereto. Delivery Schedule: Preliminary Value: Draft Report: Final Report: Start Date: Acceptance Date: © 2017 CBRE, Inc. Jason Walker Assignment Agreement Page 3of8 February 28, 2017 We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us. Sincerely, CBRE, Inc. Valuation & Advisory Services n Stuart J. Lieberman, MAI Vice President As Agent for CBRE, Inc. Cert Gen RZ1074 T 305-381-6472 Stuart.lieberman@cbre.com FOR OMNI 1 MIDTOWN CRA: Sign ureJ Name '50.�- 619-6W( Phone Number AGREED AND ACCEPTED Date Title E-Mail Address 3/( / © 2017 CBRE, Inc. Jason Walker Assignment Agreement Page 4of8 February 28, 2017 ADDITIONAL OPTIONAL SERVICES Assessment & Consulting Services: CBRE's Assessment & Consulting Services group has the capability of providing a wide array of solution -oriented due diligence services in the form of property condition and environmental site assessment reports and other necessary due diligence services (seismic risk analysis, zoning compliance services, construction risk management, annual inspections, etc.). CBRE provides our clients the full complement of due diligence services with over 260 employees in the U.S. that are local subject matter experts Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full complement of consulting services, or you may reach out to us at WhitePlainsProposals@cbre.com. We will route your request to the appropriate manager. For more information, please visit www.cbre.com/assessment. Initial Here © 2017 CBRE, Inc. Jason Walker Assignment Agreement Page 5 of 8 February 28, 2017 TERMS AND CONDITIONS 1. The Terms and Conditions herein are part of an agreement for appraisal services (the "Agreement" ) between CBRE, Inc. (the "Appraiser") and the client signing this Agreement, and for whom the appraisal services will be performed (the "Client"), and shall be deemed a part of such Agreement as though set forth in full therein. The Agreement shall be governed by the laws of the state where the appraisal office is located for the Appraiser executing this Agreement. 2. Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the appraisal fee and preparation of an appraisal report (the "Appraisal Report, or the "report") are not contingent upon any predetermined value or on an action or event resulting from the analyses, opinions, conclusions, or use of the Appraisal Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a draft report is requested, the fee is considered earned upon delivery of the draft report. It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed report. In such event, the Client is obligated only for the prorated share of the fee based upon the work completed and expenses incurred (including travel expenses to and from the job site), with a minimum charge of $500. Additional copies of the Appraisal Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and white), plus shipping fees of $30 per report. 3. If Appraiser is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the Appraiser's expertise, or the Property, Client shall pay Appraiser's additional costs and expenses, including but not limited to Appraiser's attorneys' fees, and additional time incurred by Appraiser based on Appraiser's then -prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Appraisal Report), meeting participation, and Appraiser's other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional appraisal services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed report has been delivered to Client at the time of such request. 4. Appraiser shall have the right to terminate this Agreement at any time for cause effective immediately upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 30 days written notice. 5. In the event Client fails to make payments when due then, from the date due until paid, the amount due and payable shall bear interest at the maximum rate permitted in the state where the office is located for the Appraiser executing the Agreement. In the event either party institutes legal action against the other to enforce its rights under this Agreement, the prevailing party shall be entitled to recover its reasonable attorney's fees and expenses. Each party waives the right to a trial by jury in any action arising under this Agreement. 6. Appraiser assumes there are no major or significant items or issues affecting the Properly that would require the expertise of a professional building contractor, engineer, or environmental consultant for Appraiser to prepare a valid report. Client acknowledges that such additional expertise is not covered in the Appraisal fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and solely at Client's additional cost and expense. 7. In the event of any dispute between Client and Appraiser relating to this Agreement, or Appraiser's or Client's performance hereunder, Appraiser and Client agree that such dispute shall be resolved by means of binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, and judgment upon the award rendered by an arbitrator may be entered in any court of competent jurisdiction. Depositions may be taken and other discovery obtained during such arbitration proceedings to the same extent as authorized in civil judicial proceedings in the state where the office of the Appraiser executing this Agreement is located. The arbitrator shall be limited to awarding compensatory damages and shall have no authority to award punitive, exemplary or similar damages. The prevailing party in the arbitration proceeding shall be entitled to recover its expenses from the losing party, including costs of the arbitration proceeding, and reasonable attorney's fees. Client acknowledges that Appraiser is being retained hereunder as an independent contractor to perform the services described herein and nothing in this Agreement shall be deemed to create any other relationship © 2017 CBRE, Inc. Jason Walker Assignment Agreement Page 6of8 February 28, 2017 between Client and Appraiser. This engagement shall be deemed concluded and the services hereunder completed upon delivery to Client of the Appraisal Report discussed herein. 8. All statements of fact in the report which are used as the basis of the Appraisers analyses, opinions, and conclusions will be true and correct to Appraiser's actual knowledge and belief. Appraiser does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to Appraiser by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, APPRAISER DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY APPRAISAL REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO APPRAISER. Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be subject to the assumptions, limitations, and qualifying statements contained in the report. 9. Appraiser shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The report will not constitute a survey of the Property analyzed. 10. Client shall provide Appraiser with such materials with respect to the assignment as are requested by Appraiser and in the possession or under the control of Client. Client shall provide Appraiser with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary. 11. The data gathered in the course of the assignment (except data furnished by Client) and the report prepared pursuant to the Agreement are, and will remain, the property of Appraiser. With respect to data provided by Client, Appraiser shall not violate the confidential nature of the Appraiser -Client relationship by improperly disclosing any proprietary information furnished to Appraiser. Notwithstanding the foregoing, Appraiser is authorized by Client to disclose all or any portion of the report and related data as may be required by statute, government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable Appraiser to comply with the Bylaws and Regulations of such Institute as now or hereafter in effect. 12. Unless specifically noted, in preparing the Appraisal Report the Appraiser will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, "Hazardous Material) on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, at Client's discretion and direction, and are not covered as part of the Appraisal fee. 13. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client acknowledges that Appraiser provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with Client's tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Appraisal Report. Client agrees that Appraiser shall have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from Appraiser relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys' fees, costs or other expenses relating to Client's tax matters. 14. Appraiser shall have no liability with respect fo any loss, damage, claim or expense incurred by or asserted against Client arising out of, based upon or resulting from Client's failure to provide accurate or complete information or documentation pertaining to an assignment ordered under or in connection with this Agreement, including Client's failure, or the failure of any of Client's agents, to provide a complete copy of the Appraisal Report to any third party. 15. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES, AND AGGREGATE DAMAGES IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO APPRAISER UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). THIS LIABILITY LIMITATION SHALL NOT © 2017 CBRE, Inc. Jason Walker Assignment Agreement Page 7 of 8 February 28, 2017 APPLY IN THE EVENT OF A FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION THAT SUCH LIABILITY IS THE RESULT OF A PARTY'S FRAUD OR WILLFUL MISCONDUCT. 16. Client shall not disseminate, distribute, make available or otherwise provide any Appraisal Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Appraisal Report , in whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by Appraiser as an "Intended User" of the Appraisal Report provided that either Appraiser has received an acceptable release from such third party with respect to such Appraisal Report or Client provides acceptable indemnity protections to Appraiser against any claims resulting from the distribution of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors) using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the event Appraiser consents, in writing, to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided Appraiser with complete copies of such materials and Appraiser has approved all such materials in writing. Client shall not modify any such materials once approved by Appraiser. In the absence of satisfying the conditions of this paragraph with respect to a party who is not designated as an Intended User, in no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such report, and Appraiser shall have no liability for such unauthorized use and reliance on any Appraisal Report. In the event Client breaches the provisions of this paragraph, Client shall indemnify, defend and hold Appraiser, and its affiliates and their officers, directors, employees, contractors, agents and other representatives (Appraiser and each of the foregoing an "Indemnified Party" and collectively the "indemnified Parties"), fully harmless from and against all losses, liabilities, damages and expenses (collectively, "Damages") claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the Appraisal Report. 17. In the event an Intended User incorporates or references the Appraisal Report, in whole or in part, in any offering or other material intended for review by other parties, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from and against any Damages in connection with (1) any transaction contemplated by this Agreement or in connection with the appraisal or the engagement of or performance of services by any Indemnified Party hereunder, (ii) any actual or alleged untrue statement of a material fact, or the actual or alleged failure to state a material fact necessary to make a statement not misleading in light of the circumstances under which it was made with respect to all information furnished to any Indemnified Party or made available to a prospective party to a transaction, or (iii) an actual or alleged violation of applicable law by an Intended User (including, without limitation, securities laws) or the negligent or intentional acts or omissions of an Intended User (including the failure to perform any duty imposed by law); and will reimburse each Indemnified Party for all reasonable fees and expenses (including fees and expenses of counsel) (collectively, "Expenses") as incurred in connection with investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or investigation (collectively, "Proceedings") arising therefrom, and regardless of whether such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into any waiver, release or settlement of any Proceeding (whether or not any Indemnified Party is a formal party to such Proceeding) without the prior written consent of Appraiser (which consent will not be unreasonably withheld or delayed) unless such waiver, release or settlement includes an unconditional release of each Indemnified Party from all liability arising out of such Proceeding. 18. Time Period for Legal Action. Unless the time period is shorter under applicable law, except in connection with paragraphs 16 and 17 above, Appraiser and Client agree that any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement or the Appraisal Report, (b) any services or appraisals under this Agreement or (c) any acts or conduct relating to such services or appraisals, shall be filed within two (2) years from the date of delivery to Client of the Appraisal Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims, causes of action or damages. © 2017 CBRE, Inc. SPECIFIC PROPERTY DATA REQUEST In order to complete this assignment under the terms outlined, CBRE, Inc., Valuation & Advisory Services, will require the following specific information for the property: 1. PLEASE NOTIFY US IMMEDIATELY IF ANYONE FROM CBRE IS INVOLVED IN THE BROKERAGE, FINANCING. INVESTMENT OR MANAGEMENT OF THIS ASSET. 2. Current title report or title holder name 3. Legal description 4. Survey and/or plat map 5. Site plan for the existing development 6. Building plans and specifications, including square footage for all buildings and suites 7. Current county property tax assessment or tax bill 8. Details on any sale, contract, or listing of the property within the past three years 9. Engineering studies, soil tests or environmental assessments 10. Complete copies or abstracts of all lease agreements and a current rent roll 11. Any previous market/demand studies or appraisals 12. Name and telephone number of properly contact for physical inspection and additional information needed during the appraisal process 13. Any other information that might be helpful in valuing this properly If any of the requested data and information is not available, CBRE, Inc., reserves the right to extend the delivery date by the amount of time it takes to receive the requested information or make other arrangements. Please have the requested information delivered to the following: Stuart J. Lieberman, MAI Vice President CBRE, Inc. Valuation & Advisory Services 777 Brickell Avenue, Suite 910 Miami, FL 33131 © 2017 CBRE, Inc. Addenda Addendum F QUALIFICATIONS © 2017 CBRE, Inc. PROFESSIONAL PROFILE STUART J. LIEBERMAN, MAI Vice President Valuation and Advisory Services T. +1 305 381 6472 F. +1 305 381 6441 stuart.lieberman@cbre.com CLIENTS REPRESENTED Bank of America Merrill Lynch SunTrust Bank BankUnited TotalBank Mercantil Commercebank Stonegate Bank Broward County Shutts & Bowen, LLP Akerman Senterfitt Flagler Development Woolbright Development Miami -Dade County, Internal Services Dept. Stuart J. Lieberman, MAI is a Vice president with over 28 years of real estate appraisal and consulting experience. Mr. Lieberman is in the Valuation & Advisory Services Group's Miami office in the South Florida/Caribbean Region. Since 1987, Mr. Lieberman has provided real estate valuation and consulting services to the financial lending community, institutional clients, government agencies, corporate entities, legal & accounting professionals, developers and private individuals. Mr. Lieberman has experience providing market studies, feasibility studies, highest & best use analysis, market rent studies, expert testimony & litigation support and portfolio analysis. Mr. Lieberman's experience encompasses a wide variety of property types including single & multi -family residential, senior housing, mobile home parks, high density urban & ocean front developments, open space & public parks, automobile dealerships, service stations & convenience stores, funeral homes, medical office & surgical centers, mixed -use office, financial institutions & branch banks, retail shopping centers & regional malls, parking garages, restaurants & night clubs, movie theatres, health & fitness clubs, marinas & shipping terminals, FBOs (fixed base operations), industrial flex warehouses, bulk distribution, truck terminals, refrigeration warehouses, R&D, business parks, self -storage facilities; and, special purpose properties, including bowling alleys, broadcasting facilities, car wash, historical properties, public & private schools, day care facilities, houses of worship & religious facilities, tourist attractions, sport arenas and entertainment venues & theatres. CREDENTIALS Professional Affiliations/Accreditations/Certifications ■ Appraisal Institute — Designated Member No. 12003 ■ Certified General Real Estate Appraiser, State of Florida License RZ 1074 ■ Licensed Real Estate Broker — Associate, State of Florida License BK 0477878 EDUCATION ■ University of South Florida, Tampa, FL, BA, Political Science — 1985 ■ Appraisal Institute, American Institute of Real Estate Appraisers, Society of Real Estate Appraisers and Florida Real Estate Commission core courses, electives and seminars. © 2017 CBRE, Inc. CBRE RICK SCOTT, GOVERNOR KEN LAVVSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD R21074 The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date: NOV 30, 2018 LIEBERMAN, STUART JAY 777 BRICKELLAVE STE 910 MIAMI FL 33131 ISSUED: 08f2842016 Y4- DISPLAY AS REOUIRED BY LAW Ci .141: .2?13111 0 SEC) # L1608280005452 PROFESSIONAL PROFILE JAMES E. AGNER, MAI, AI-GRS, SGA, MRICS Senior Managing Director Florida -Caribbean Region Valuation and Advisory Services T. +1 305 381 6480 F. +1 305 381 6441 lames.agner@cbre.com www.cbre.com/James.Agner CLIENTS REPRESENTED LNR Partners Bank of America Merrill Lynch SunTrust Bank PNC Bank Mercantil Popular Community Bank 5/3 Bank Sabadell Santander Bank Regions Bank TD Bank Bank United BB&T Bank CitiBunk Deutsche Bank Ocean Bank James Agner is the Senior Managing Director of the Valuation & Advisory Services for the Florida -Caribbean Region. Located in the CBRE Miami office since 1995, Mr. Agner has over thirty years of real estate appraisal and consulting experience throughout the State of Florida, with primary experience in South Florida and in the Caribbean. Mr. Agner is a designated member of the Appraisal Institute (MAI) and General Review Specialist (AI-GRS), member of the Society of Golf Appraisers (SGA), and Royal Institution of Chartered Surveyors (MRICS) and is licensed as a Certified General Real Estate Appraiser in the State of Florida and Georgia. He also has provided expert witness testimony in the Circuit Courts — State of Florida and United States Bankruptcy Courts. As Senior Managing Director, Mr. Agner leads a valuation and advisory staff in Miami and Palm Beach Counties that provides exceptional quality appraisal work and client service in South Florida, Treasure Coast and the Florida Keys. He also coordinates all activities for Florida and in the Caribbean, including overseeing new business development, client relations and appraisal quality control production. Mr. Agner is also the National Director of the Golf Valuation Group and the Net Lease Valuation Group for CBRE. CREDENTIALS Professional Affiliations/Accreditations/Certifications • Appraisal Institute - Designated Member (MAI), Certificate No. 7791 • Appraisal Institute — General Review Specialist (AI-GRS), Certificate No. 691 50 • Society of Golf Appraisers (SGA), Certificate No. 25 • Royal Institution of Chartered Surveyors - Member (MRICS), Certificate No. 7505662 • Certified General Real Estate Appraiser, State of Florida, RZ382 • Certified General Real Estate Appraiser, State of Georgia, #345321 • Licensed Real Estate Broker, State of Florida, BK402088 EDUCATION • Florida State University, Tallahassee, FL, Bachelors of Science in Business Administration, Marketing - 1981 © 2017 CBRE, Inc. CBRE RICK SCOTT, GOVERNOR KEN LAWSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD LICENSE NUMBER RZ382 The CERTIFIED GENERALAPPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date. NOV 30. 2018 AGNER, JAMES E 777 BRICKELLAVE SUITE 910 MIAMI FL 331.31 ISSUED: 09/25/2016 DISPLAY AS REQUIRED BY LAW SEQ # L1609250003799