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HomeMy WebLinkAboutCRA-R-21-0039 1520 NW 1st CT_AppraisalAPPRAISAL OF AN 8,800 SQUARE FOOT LAND PARCEL LOCATED AT 1520 N.W. 1 COURT MIAMI, FLORIDA Ownership: Damodar S. Airan Prepared For Anthony Balzebre Assistant Director OMNI CRA 1401 North Miami Avenue Second Floor Miami, Florida 33136 Prepared By Investors Research Associates, Inc. 5730 S.W. 74 Street, Suite 100 South Miami, Florida 33143 DATE OF VALUE February 25, 2021 1 21-2618-A investors research associates, inc. 5730 s,w, 74 street, suite 100 south miami, florida 33143-5381 telephone 305-665-3407 fax 305-665-4921 March 3, 2021 Anthony Balzebre Assistant Director OMNI CRA 1401 North Miami Avenue Second Floor Miami„ Florida 33136 real estate consultants and appraisers licensed real estate broker Re: An 8,800 square foot land parcel located at 1520 N.W. 1 Court, Miami, Florida Dear Ms. Balzebre: The attached appraisal report is being submitted according to your request. This report contains the results of investigations and analyses made in order to furnish an estimate of the market value of the referenced property. This appraisal is intended to comply with the following: The Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board of the Appraisal Foundation; requirements of the Real Estate Appraisal Board of the Florida Department of Professional Regulation; and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. A Summary of Facts and Conclusions is provided in the front of the report and a Certification of Value appears in the final section. Respectfully submitted, Digitally signed by Edward Edward NParker DN: cn=Edward N. Parker, o, ou, emaiN. Parker -US va5730@aoLcom, Date: 2021.03.03 13:45:24 -05'00' Edward N. Parker, MAI State Certified General Real Estate Appraiser #RZ144 2 21-2618 — A TABLE OF CONTENTS TABLE OF CONTENTS 3 I. SUMMARY OF FACTS AND CONCLUSIONS 5 II. SCOPE OF THE ASSIGNMENT 6 A. IDENTIFICATION OF THE PROPERTY 6 B. PURPOSE AND SCOPE OF THE ASSIGNMENT 6 C. DEFINITION OF MARKET VALUE 7 D. PROPERTY RIGHTS APPRAISED 7 E. EFFECTIVE DATE OF VALUE 7 F. INTENDED USE OF THE APPRAISAL 7 G. INTENDED USER OF THE APPRAISAL 8 H. APPRAISER 8 III. ECONOMIC PERSPECTIVE 9 A. MIAMI-DADE COUNTY OVERVIEW 9 B. THE NEIGHBORHOOD 11 IV. PROPERTY DESCRIPTION 16 A. OWNERSHIP AND HISTORY 16 B. LOCATION AND ACCESS 16 C. Si 1E DESCRIPTION 16 D. DESCRIPTION OF IMPROVEMENTS 16 E. ASSESSMENT AND TAXES 17 F. ZONING AND PLANNING CRITERIA 17 V. ANALYSIS OF DATA AND VALUE CONCLUSION 19 A. HIGHEST AND BEST USE 19 B. METHODOLOGY 19 C. LAND SALES DATA 20 D. ANALYSIS OF SALES AND VALUE CONCLUSION 37 VI. ASSUMPTIONS AND LIMITING CONDITIONS 40 VII. CERTIFICATION 42 VIII. QUALIFICATIONS 44 3 21-2618 - A NW 27I Sr NW 215TH ST HE 2,STH STrillinrill°371I Nov zo- �� ,.AICIF: +05 linINNSIA 110, �� �„'t '' MITI r1�1% maw. . � '1T 'Ir iw.� Ae _, Amtoniti � �31m11m,•E t r.■mm©r� TMONSIIMIrMUSNAIINIRS. . m Elo■efi tiloaE iti ii Ai?, 13111111MIEWSIUMW INI oi. a■a■mgailrrf ■■ argfincip AcurmEssiili Ilikratai7r"liiiihrelyanarsramputel. NW bTH _ Emma mmEnummronegiumglinalW 4-Alkuhue 'jimmies's.: or pr. virminnoi immerAginirs paw" fit: Mill egl- m t ,13E �©0E31 eiritakilINIXEJIMIGZEI Imp Crys►"�l U FAN IESMIN111111!" � �t .:; � AI � i-Dade County firlitireFfill r �4 �,y� ■■.W 2: I sT S1111i f ex$�ili,� Beau'}' ap H s, IIV _� .2N9 :r 2015 Urban Development Boundary €'L73:i ]U •� i' . 2025 Urban ExpansionB Area oundary 7 MININIMEZIEENUMMIN ma munr II,' 13.04 APPRAISED -PROPERTY ._ Department .nf Planning and Zoning 4 21-2618-A I. SUMMARY OF FACTS AND CONCLUSIONS The Assignment: To estimate the market value of an 8,800-square foot land parcel. Location: Property Owner: Site Description: Along the west side of N.W. 1 Court approximately 92 feet north of N.W. 15 Street in the Overtown neighborhood of Miami, Florida (with a street address of 1520 N.W. 1 Court). Damodar S. Airan 9310 S.W. 71 Avenue Miami, Florida 33156 The appraised property is a vacant rectangular parcel of land fronting for 88 feet along the west side of N.W. 1 Court with a depth of 100 feet. Total land area as calculated by the county property appraiser is 8,800 square feet. Improvement Description: None, the site is currently vacant Zoning: T3-O, Sub Urban Zone by the City of Miami. This zone consists of low density areas primarily comprised of single and two family residential units. Future Land Use Plan Designation: Medium Density Multifamily Residential Highest and Best Use: Residential use as permitted by zoning and planning criteria. Assessment and Taxes: 2020 Assessed Value: $379,379 Conclusion of Market Value: $317,000 Effective Date of Value: February 25, 2021 Appraiser: Edward N. Parker, MAI 5 21-2618 - A II. SCOPE OF THE ASSIGNMENT A. Identification of the Property The property that is the subject of this appraisal is an 8,800-S.F. vacant lot fronting along the west side of N.W. 1 Court about 92 feet north of N.W. 15 Street in the Overtown neighborhood of Miami, Florida. A legal description of the appraised property taken from public records follows. Lots 8 and 9 less the south 32 feet, Block 37, Waddell's Addition, as recorded in Plat Book B, Page 53 of the public records of Miami -Dade County B. Purpose and Scope of the Assignment The purpose of the appraisal is to estimate the market value of the property described herein. The function of the appraisal is to provide the client with an estimate of market value for possible purchase negotiation purposes. The scope of the assignment encompasses the following steps performed within the framework of commonly accepted appraisal procedures. • Inspected the appraised property and its surrounding neighborhood • Reviewed relevant zoning and planning criteria affecting the appraised property. • Researched relevant sales of comparable land parcels. • Interviewed brokers, property owners and other participants who are active in the marketplace • Formulated reasonable opinions and judgments based on supply and demand factors, as well as physical and functional considerations relative to the highest and best use of the subject property. • Analyzed these data in order to formulate sound valuation judgments within the framework and application of the appropriate approach to value. 6 21-2618 - A C. Definition of Market Value The following definition of market value is cited from the Uniform Standards of Professional Appraisal Practice. The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States 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. D. Property Rights Appraised This appraisal is made with the understanding that the present ownership of the property includes all the rights that may lawfully be held under a fee simple estate. E. Effective Date of Value February 25, 2021 F. Intended Use of the Appraisal The intended use of the appraisal is to provide the client with valuation information to be used in the negotiations of a possible purchase of the property described herein. 7 21-2618 - A G. Intended User of the Appraisal The intended user of the appraisal is the client, the OMNI CRA. H. Appraiser Edward N. Parker, MAI 8 21-2618 - A III. ECONOMIC PERSPECTIVE A. Miami -Dade County Overview Miami -Dade County is divided into 36 municipalities with the largest being the cities of Miami, Hialeah, Miami Beach, North Miami and Coral Gables. It encompasses approximately 1,973 square miles in southeastern Florida. The eastern part of the county is intensely developed and much of the density is concentrated within a few miles of the Atlantic Ocean and Biscayne Bay. Most of the western part of the county is undeveloped or sparsely developed. This area is mostly low-lying, subject to seasonal flooding and serves as the recharge area for South Florida's sole source aquifer. Miami -Dade County appears to have a vast supply of open land for urban expansion. However, the Everglades, the aquifer and other critical environmental conditions effectively have limited the supply of developable land. In addition, the 1985 Florida Growth Management Act made it much more difficult to change zoning and land use patterns. Development now requires a much more costly and time-consuming approval process. The result has been to concentrate new development within existing urbanized areas of the county. Beginning in 2003, Miami -Dade County experienced a period of unprecedented housing construction in all developable areas of the county. From 13,520 new housing units authorized in Miami -Dade County during 2003 activity peaked at 27,212 units authorized in 2005. Reflecting deteriorating economic conditions and significant overbuilding, however, authorizations eased to 16,536 new units in 2006 and plummeted to 4,026 units in 2008 and 2,657 units in 2011. However, local housing markets have since experienced a strong recovery marked by declining unsold inventories, increasing price levels, and increases in new construction activity. New housing unit authorizations in the county have exceeded 10,000 annually since 2013 (12,068 in 2019). Population From 1970 to 1990, Miami -Dade County was one of the fastest growing urban regions in the United States. However, following the double impact of the recession of the early 1990s and Hurricane Andrew in 1992, population growth in the county moderated significantly. After adding almost 40,000 residents annually prior to 2000, population growth has more recently eased to below 25,000 new residents annually. The most recent Census data estimates the 2019 population of the county to be 2,717,000. As the county matures and reaches the outer limits of the Urban Development Boundary, population growth has logically shifted north to Broward and Palm Beach Counties. 9 21-2618 - A An unusually high proportion of Miami-Dade's growth results from births. Also, the immigrant population is typically youthful. As a result, Miami -Dade has a relatively young population, with about 30 percent of its residents under the age of 25 (compared to 38 percent in Palm Beach County and 28 percent in Broward County). A young and generally less -educated immigrant population contributes to Miami -Dade County's relatively low-income levels. At $48,982 in 2018, the median county household income was below that of both the State of Florida ($53,267) and the United States ($61,937). Employment The general trend in employment within Miami -Dade County over the past five years is illustrated below. Non -Agricultural Employment Trends Miami -Dade County 2016-2020 Industry 2016 2017 2018 2019 2020 Total Nonagricultural Employment 1,169,900 1,191,800 1,220,900 1,245,600 1,166,500 Construction and Mining 44,700 47,800 54,500 56,200 54,500 Manufacturing 39,000 43,500 42,400 39,900 42,400 Transportation and Public Utilities 89,600 92,500 94,800 96,000 85,100 Trade 220,500 225,600 221,600 234,900 214,600 Finance, Insurance and Real Estate 82,500 81,400 81,200 80,800 84,500 Services 543,500 558,200 570,400 590,200 553,900 Government 139,100 143,800 145,300 147,600 131,500 Civilian Labor Force 1,236,680 1,247,900 1,262,600 1,280,200 1,312,400 Unemployment 66,780 63,200 41,700 34,600 96,300 Unemployment Rate 5.4% 4.5% 3.3% 2.7% 7.3% Total county nonagricultural employment in 2020 declined for the first time in ten years, dropping approximately 6 percent from 2019 levels. This is a direct reflection of the negative impacts of the Covid 19 pandemic. The trade and service sectors continue to dominate local employment, accounting for approximately 66 percent of 2020's total employment of 1,166,500. Only the manufacturing sector did not show a decline in 2020, with the remaining sectors all experiencing decreases. Consistent with national and state trends, Miami -Dade County's unemployment rate had been at historically low levels until the onset of the recent Covid 19 pandemic. Reflecting the lingering impact of the pandemic, countywide unemployment was 7.3 percent in December 2020, compared to the state average of 5.8 percent and the national average of 6.5 percent. 10 21-2618 - A Conclusion Recent population growth and economic activity in the county have moderated from historic levels. The source of past population growth in Miami -Dade County is not especially conducive to economic growth. Miami -Dade County has a higher than average birth rate and a large, low-income immigrant population. The longer term prognosis, however, is one of optimism. Immigrants to Miami - Dade have proven to be energetic entrepreneurs and most job creation comes from small businesses. The single most significant growth industry in Miami -Dade is international trade, which generates demand for warehouse and distribution space, transportation services, as well as legal and banking services. The strength of this industry is attributable to Miami's largely bilingual population in addition to the area's linkages to Latin America. While most of the economic data discussed above is positive, there is one cloud of uncertainty hanging over local, national, and international economic conditions. That is the Covid 19 virus pandemic. While most expect the impacts of the virus to be temporary, only time will tell the extent of its effect on economic conditions. Within the real estate sector, most prognosticators anticipate any adverse effects of the pandemic to vary by property type and land use. Most impacted would be those uses with both sensitivity to the economy and sensitivity to the virus itself. Uses in this category would include retail centers, lodging, general offices and student and senior housing. Least sensitive to these risks would be food -related uses (grocerys, farming), medical facilities, distribution and warehouses and single family residences. Certainly a cause for overall optimism is the recent release of approved vaccines. B. The Neighborhood The appraised property is located in the Overtown neighborhood of Miami. Overtown lies within N.W. 20 Street to the north, N.W. 5 Street to the south, the Miami River and Dolphin Expressway (SR 836) to the west, and the Florida East Coast Railway (FEC) to the east. The population of Overtown consists of roughly 22,000 people which has seen a 12.2 percent increase since 2000 and a 3.9 percent increase since 2010. There are about 8700 households split evenly between family and non -family residences. The median age and income in Overtown is 36 and $30,713 respectively. In the 1920's and 1930's, NW 2nd Avenue was known as "Avenue G," and was a major corridor for entertainment, retail stores, and hotels. The population continued to grow until the early 1960's. Urban renewal, the Neighborhood Development Program, and construction of the SR-836/I-395 and I-95 expressways significantly changed the character of the neighborhood as residents from Overtown were scattered and relocated. Economic, physical and social decay became pronounced and progressively contributed to the decline in the area. However, recent years have witnessed a halt to the declines with numerous signs of a resurgence taking place. 11 21-2618 - A Located directly north of Overtown the Omni Media and Entertainment Districts are still undergoing a rapid transformation into a regional epicenter of the cultural and performing arts. Despite its challenges, Southeast Overtown/Park West is advantageously situated between Downtown Miami and the Omni area, Motion Picture/Media District, and the Entertainment District, and is near Miami Beach, Miami International Airport, and the regional transportation system. South of Overtown and Park West, Downtown Miami's central business district is a flourishing center of international business, finance, telecommunications, government and trade. 12 21-2618 - A AERIAL VIEW OF APPRAISED PROPERTY Source: Miami -Dade County Property Appraiser 13 21-2618-A PHOTOGRAPHS OF THE APPRAISED PROPERTY Looking west over the fence at the appraised property. Looking northwest at the property from N.W. 1 Court. 14 21-2618-A 60 5 z • r36•� I I 4 7 Ji ' so 13 1--11 =11=1 o +- 1 O o� LIISC i c i r"—, 1 sz 1 " s• SO r 's: i•FY_. 0 5 3 /' 1 /Z /4 'uni tip _ €/�1J 1 - 1 l 1 3 1 ff�/51� /7I \701 I I� 7 Tr A' ^'1 so 50 m 8U ti — A 30 f- V 36 31, DEO 1 5 1 13 1 nnI�nnn(-Ihn 'N 1-C1/9ii zIRA 93 N 0\0/ . t 6 0 Mkt Wi '[fi7 fi25' 62.5 /25 3 8 1 15 '0 = /81 1 Q =15 EDzo :�— z/ �zs � a5Y4-m 139 7.99 45 aka 'T g 1!4a/ pbyL 01. ,- i 3 37, fin I SUBJECT LOCATION MAP I�q 1 _3 1-1' ST ‘`I 79.9 /Z D 21-2618-A IV. PROPERTY DESCRIPTION A. Ownership and History The appraised property is currently held in the name of Damodar S. Airan, 9310 S.W. 71 Avenue, Miami, Florida 33156 The current owner obtained title to the property via Tax Deed (OR Book 23021, Page 3931) on January 24, 2005. Stamps on the deed indicate the transfer price was $82,550. B. Location and Access The subject property fronts along the west side of N.W. 1 Court about 92 feet north of N.W. 15 Street in the Overtown neighborhood of Miami. This places it immediately to the north of State Road 836, aka I-395. This limited access roadway extends from Miami Beach west to N.W/S.W. 137 Avenue in far western Miami - Dade County. I-95 is just to the west of the property and provides north -south vehicular access to the subject neighborhood with interchanges to the north and south of the appraised property. Most local roadways in the immediate neighborhood are two lanes. N.W. 1 Place and intersecting streets provide ready access to downtown Miami about one mile to the south. C. Site Description A survey of the appraised property was not available to us. However, the attached plat map identifies the location and configuration of the site. As illustrated, the property is a rectangular off corner land parcel. Frontage on N.W. 1 Court is 88 feet with a depth of 100 feet. Based on calculations by the county property appraiser the total site area is reported to be 8,800 square feet. Pending completion of an actual survey, this site area is assumed to be correct. Topography of the site is level and at street grade. Utilities available to the property include electrical service, telephone service, and sewer and water service. The appraised property is located within Flood Zone White X, which consists of areas determined to be outside the 2.0% annual chance of flood. This is according to FEMA Map 12086C03121L dated September 11, 2009. D. Description of Improvements The appraised property is currently vacant and unimproved. 16 21-2618 - A E. Assessment and Taxes The appraised property is assessed for 2020 under a single folio number by Miami - Dade County as follows: Folio No.: 01-3125-048-1440 Land Value: $379,379 Improvement Value: $ 0 Total: $379,379 Taxable Value: $ 51,426 Total taxes due in 2020 were $1,095. F. Zoning and Planning Criteria The appraised property is currently zoned T3-O, Sub Urban Zone, by the City of Miami. This zone consists of low density areas primarily comprised of single and two family residential units. General provisions of the T3-O zone include: Minimum Lot Size: 5,000 square feet Minimum Lot Width: 50 feet Maximum Building Height: 2 stories Maximum Floor/Area Ratio: 1.0 Minimum Setbacks: Front: 20 feet Side: 5 feet Rear: 20 feet Maximum Lot Coverage: 50 percent Minimum Open Space: 25 percent Maximum Residential Density: 18 units/acre Minimum Parking: 2 spaces per unit The City of Miami Future Land Use Plan designates the appraised property as Medium Density Multifamily Residential. It is noted that this designation, which provides for a residential density of up to 65 units per acre, is inconsistent with the current T3-O zoning of the site (maximum of 18 units per acre). While current zoning would have precedence in this instance, it suggests that the possibility of rezoning the site to a higher density some time in the future exists. 17 21-2618 - A N 16TH TER NW 16TH ST • 5 7 7 1 17 17 U N n N 15TH ST RI S'NS U s 7 7 f 9 10 q u 14TH TER NVV i .1 TI-{ T NW 17,TH3i=mzicimpo ST APPRAISED PROPERTY 1, / WAG() COMMUNIT Y PARTNERSHIP TRACKS ADD" NVV 14TH ZONING MAP C�7 a NE 17 NE 16TH ST Ob1hIPSA NE 14TH S NE 13TH TER 18 21-2618 — A V. ANALYSIS OF DATA AND VALUE CONCLUSION A. Highest and Best Use Highest and best use is a fundamental premise of real estate valuation and may be briefly defined as: Highest and best use is the reasonably probable and legal use of vacant land or improved property which is physically possible, appropriately supported, financially feasible, and results in the highest value. The current T3-O zoning of the appraised property provides for lower density residential uses including single and two family units up to a maximum density of 18 units per acre. In addition, the future land use plan designation on the property (up to 65 units per acre) suggests that the possibility of rezoning the site to a higher density some time in the future exists. The size and configuration of the site are fully adequate to support any of the permitted uses. Utilities, roads and sidewalks are in place and the site is level, cleared and filled. As discussed earlier in this report the single family housing market throughout the county has been active and healthy recently. This is also the case with the rental apartment market. Existing homes and rental apartments in the neighborhood of the appraised property have experienced short listing periods and rising prices. While there are a substantial number of undeveloped sites in the neighborhood, an active market exists for both vacant sites being acquired for future development as well as improved properties being acquired for rehabilitation or redevelopment. Considering the factors discussed above, it is concluded residential use of the appraised property consistent with zoning and planning criteria would be both financially feasible and maximally productive. This use is concluded to be the highest and best use of the appraised property. B. Methodology Usual appraisal procedure involves an estimate of market value by three separate approaches: the cost approach, the sales comparison approach, and the income capitalization approach. From the indications of these analyses and the weight accorded to each, an opinion of market value is reached. In this instance, only land is being valued. As a result, only the sales comparison approach is relevant to estimating the market value of the property. 19 21-2618 - A C. Land Sales Data A search was conducted to identify recent sales of comparable properties in the immediate neighborhood. Pertinent details relative to seven sales are presented on the following pages. A location map, summary table, and analysis follow. 20 21-2618 - A Land Sale No. 1 Location: 925 N.W. 28 Street, Miami Date of Sale: December 11, 2020 Grantor: Ozeo Properties, LLC Grantee: Land Enhancement Group, LLC OR Book/Page: 32281/2388 Folio No.: 01-3126-009-0871 Site Size: 6,500 square feet Street Frontage: 50 feet on N.W. 28 Street Improvements at Sale: None Zoning: T4-L, General Urban Zone (36 units per acre) Land Use Plan: Medium Low Density (under 25 units/acre) Sale Price and Terms: $220,000, Cash to the seller 21 21-2618 - A Price Per S.F of Land: $33.85 Verification: Comments: Aaron Goldstein, principal of the purchasing entity (786- 368-6684), by Geoffrey Heath, MAI and Pamela Iverson, listing agent (305-297-1764), by Edward N. Parker, MAI on March 2, 2021 Recent sale of a vacant,T4-L zoned site one block south of heavily travelled N.W. 29 Street. The property had been on the market for 13 months. The initial asking price was $285,000 ($43.85/S.F.). It was reduced to $265,000 ($40.77/S.F.) and then sold for $220,000. This site was purchased for redevelopment with a multifamily residential use. 22 21-2618 - A Land Sale No. 2 Location: Date of Sale: Grantor: Grantee: OR Book/Page: Folio No.: Site Size: Street Frontage: 1435 N.W. 29 Street, Miami November 5, 2020 Raul Rivero Don Kim Flipse and Ana Patricia Flipse 32200/3008 01-3126-032-0070 6,095 square feet 50 feet on N.W. 21 Street Improvements at Sale: An 84-year old single family residence containing 1,004 square feet Zoning: Land Use Plan: Sale Price and Terms: T4-O, General Urban Zone (36 units per acre) Single Family Medium Density (2.5 units/acre) $215,000, Cash to the seller 23 21-2618 - A Price Per S.F of Land: $35.27 Verification: Comments: Diamela Burquera, listing agent (786-218-5723), by Edward N. Parker, MAI, on February 26, 2021 This late 2020 sale involved a residential lot on busy N.W. 29 Street. It was marketed as a land deal with an interim use house that is in poor condition but it is generating some interim use rent. 24 21-2618 - A Land Sale No. 3 Location: Date of Sale: Grantor: Grantee: OR Book/Page: Folio No.: Site Size: Street Frontage: Improvements at Sale: Zoning: Land Use Plan: Sale Price and Terms: 1175 N.W. 26 Street, Miami March 10, 2020 Gustavo Sidelnik Constructora Freire, LLC 31865/542 01-3126-051-0730 5,000 square feet 50 feet on N.W. 26 Street An older house in poor physical condition T3-O, Sub -Urban (18 units per acre) Single Family Medium Density (2.5 units/acre) $159,000, Cash to the seller 25 21-2618 - A Price Per S.F of Land: $31.80 Verification: Jasbleidy Jimenez, the listing agent (786-307-8967), by Edward N Parker, MAI on February 26, 2021. Comments: This is about a one-year old sale of a 5,000-square foot lot that was improved with an old single family residence at time of sale. Although the Property Appraiser's records do not include the size or age of the structure, the listing agent reported it was in poor condition at the time of sale. The purchaser demolished the house and has recently completed construction of a two-story duplex consisting of two townhouse units. The two units are listed for sale at a total price of $670,000. 26 21-2618 - A Land Sale No. 4 Location: 1553 N.W. 1 Court, Miami Date of Sale: October 31, 2019 Grantor: Amerbrick Developers, Inc Grantee: 1553 N.W. 1 Court, LLC OR Book/Page: 31701/4670 Folio No.: 01-3136-051-0300 Site Size: 7,860 square feet Street Frontage: 60 feet on N.W. 1 Court and 131 feet on N.W. 16 Street Improvements at Sale: None Zoning: T3-O, Sub -Urban, (18 units per acre) Land Use Plan: Medium Density Multifamily Residential (65 units/acre) Sale Price and Terms: $210,000, Cash to the seller Price Per S.F of Land: $26.72 27 21-2618 - A Verification: Comments: Fabio Visconti, listing agent (786-797-7037), by Geoffrey Heath, MAI on February 24, 2021 This was a late 2019 sale of a vacant corner site. The property had been listed for $375,000 ($47.71/S.F.). However, the listing agent reported that the seller lives outside of the U.S. and was very motivated to sell. He realized the sale price was below the market rate but wanted to sell anyway. 28 21-2618 - A Land Sale No. 5 Location: Date of Sale: Grantor: Grantee: OR Book/Page: Folio No.: Site Size: Street Frontage: Improvements at Sale: Zoning: Land Use Plan: Sale Price and Terms: Price Per S.F of Land: 1937 N.W. 3 Avenue, Miami September 9, 2019 RDA Investments, LLC AG Real Estate 8, LLC 31611/1458 01-3136-028-0190 6,950 square feet 50 feet on N.W. 3 Avenue A 37-year old single family residence in fair condition T3-O, Sub -Urban (18 units per acre) Medium Density Multifamily Residential (65 units/acre) $290,000, Cash to the seller $41.37 29 21-2618 - A Verification: Comments: Andres Lemos, listing agent (305-409-3737), by Edward N. Parker, MAI on February 26, 2021 This property was improved with a 37-year old house at time of sale that appears to be in average physical condition. It was leased at time of sale so it was generating rental income. 30 21-2618 - A Land Sale No. 6 Location: Date of Sale: Grantor: Grantee: OR Book/Page: Folio No.: Site Size: Street Frontage: Improvements at Sale: Zoning: Land Use Plan: Sale Price and Terms: 222 N.W. 17 Street, Miami April 23, 2019 Washington Heights, LLC Southeast Overtown CRA 31425/1231 01-3136-021-1760 5,250 square feet 50 feet on N.W. 17 Street None T5-L, Urban Center (65 units per acre) Medium Density Restricted Commercial $167,500, Cash to the seller 31 21-2618 - A Price Per S.F of Land: $31.90 Verification: Principal of the purchasing entity, by Geoffrey Heath, MAI Comments: Vacant site with sidewalk and curb along N.W. 17 Street. Nearby land uses are predominantly two-story apailinent buildings. The purchaser is a community redevelopment agency. 32 21-2618 - A Land Sale No. 7 Location: 219 N.W. 14 Terrace, Miami Date of Sale: March 28, 2019 Grantor: Marctiff, LLC Grantee: Overtown Affordable Housing LLC OR Book/Page: 31383/4553 Folio No.: 01-3136-021-0820 Site Size: 5,250 square feet Street Frontage: 50 feet on N.W. 14 Terrace Improvements at Sale: Deteriorated 2,446 S.F. residence slated for demolition Zoning: T5-L, Urban Center (65 units per acre) Land Use Plan: Medium Density Restricted Commercial Sale Price and Terms: $180,000 — Contract Price — Cash $ 20,000 — Demolition Cost $200,000 Total 33 21-2618 - A Price Per S.F. of Land: $38.09 Verification: Jorge Garavito, listing agent (305-793-7661), by Geoffrey Heath, MAI Comments: Two-year old sale of a 5,250-square foot site located about two blocks southwest of the appraised property. An 82-year old residence on the site is in very poor condition and is slated for demolition by the grantee. The grantee intends to redevelop the site with affordable housing. In order to extend the closing date the grantee paid the grantor an additional price premium of $15,000. 34 21-2618 -A 14, .1_ NW Alst St 1011111__11. IL f 28th St e • am4f µWI MN ‘10 V11)11111 111,#01Fr N .1111 ; II '.11111111i NW 42‘id SI NV.' 4 sl II =I — 11 111MI 4.6 is I tro- NV1400. SI is•••• 6•imig..11- , 31h_ St (!IWrr: 7,1 Al 41 limb • Santa Claret:3 NW 2th1 ion NW 29th St 26th si 111 .30q, WYNWOOD Cr' NW 23rd St NW 20th St NW 74,th St Pori:Atte' Rd NVI 22dd St Ni 1:7 "'2' 4 3 gritov Culmer Np SPRING GARDEN NW 1 tthSt 1011. St NW Sth St -2°41 St NW 6 St "Wagner Creek NW 5th St NINNRiver‹? Irma; ma - NAN 714 FrAlei1 MIAMI DESIGN DISTRICT al a igg NOM NE 3'4 th t, „AN NE 36th St NE 36th S Mr& NE BEVERLY TERRACE NE 32.-4 54 EDGEWATER Nrn'i 1111 4 Mil —11 E NE 20th St • C3 S. z vJ s1-7--- SIVE C T PROPERTY 1TOWN SQUARE NE 1' II :41111 ILL CD II I 111 '.41111 al oseNithu 111 11111 tin Naomi' as 0 Wow OVERTOWN 111 Historic Overtown/ Lyric Theatre W z NW OMiarniCentral COMPARABLE SALES LOCATION MAP 35 21-2618 - A SUMMARY OF LAND SALES Sale No. Sale Date Location Square Feet Zoning Units Per Acre Price per S.F. Comments 1 December, 2020 925 N.W. 28 Street 6,500 T4-L 36 $33.85 Recent sale of a vacant lot. 2 November, 2020 1435 N.W. 29 Street 6,095 T4-O 36 $35.27 Recent sale of a T4-L zoned lot improved with an 84-year old house. 3 March, 2020 1175 N.W. 26 Street 5,000 T3-0 18 $31.80 One-year old sale. An older home was demolished by the purchaser and a two-story duplex has been built on the site. 4 October, 2019 1553 N.W. 1 Court 7,860 T3-O 18 $26.72 Seller was motivated to sell at this below market price. 5 September, 2019 1937 N.W. 3 Avenue 6,950 T3-O 18 $41.37 Improved with a 37-year old house that is generating interim rental income. 6 April, 2019 222 N.W. 17 Street 5,250 T5-L 65 $31.90 Vacant T5-L zoned vacant site. 7 March, 2019 219 N.W. 14 Terrace 5,250 T5-L 65 $38.09 Two year old sale of a T5-L zoned site with an 82-year old house that required demolition. 36 21-2618 - A D. Analysis of Sales and Value Conclusion The seven sales detailed earlier are summarized on the previous page. Prior to any adjustments, the sales indicate an overall price range of $26.72 to $41.37 per square foot of land. Each property was purchased anticipating future residential development. Four of the sale properties are located in the immediate subject neighborhood while three are located to the northwest. There does not appear to be a price/value difference between these two areas. Market/Sale Conditions Three of the sales closed in 2020 and four in 2019. This market has been improving during the last several years. The three most recent sales do not require adjustment but the four 2019 sales all require upward adjustment for market conditions. Sale Property 4 had been listed at an asking price of $47.71 per square foot. However, the seller, an off -shore owner in serious need of cash, agreed to sell this site at a confirmed below market price of $26.72 per square foot. As such, this sale requires additional upward adjustment for sale conditions. Site Developability Sale Properties 1, 4, and 6 were vacant at the time of sale. Numbers 2, 3, and 7 included old residential structures slated for demolition. A 37-year old house on No. 5 will eventually be demolished for redevelopment. However, in the interim this house provides rental income to offset carrying costs. The sale requires some downward adjustment. Zoning and Planning The subject site is zoned T3-O which allows up to 18 units per acre. However, its land use designation is Multifamily, Medium Density which allows 65 units per acre. As such, it has some potential for more intense development if the land use designation can be changed. Sale Properties 4 and 5 both have the same zoning and land use designation as the subject so they do not require adjustment. Sale Property 3 is zoned the same as the subject but its land use designation would only allow 2.5 units per acre so there is no reason to anticipate a land use change. Some upward adjustment is necessary. Sales 1 and 2 have T4 zoning classifications which allow 36 units per acre. However, this land use designation only allows 2.5 units per acre so there is no potential to increase the presently allowable 36 per acre. The subject has a lower 37 21-2618 - A zoning density of 18 per acre but has the potential for 65 per acre per the land use designation. These factors offset so no adjustment is necessary. Sale Properties 6 and 7 are both zoned T5-L which allows 65 units per acre. Downward adjustment is necessary because these sites do not require a land use designation change to achieve this density. Value Conclusion The adjustments addressed above are summarized on the adjustment grid on the following page. As indicated, Sales 3 ($31.80/S.F.) and 4 ($26.72/S.F.) both require overall upward adjustment while No. 5 ($41.37/S.F.) requires overall downward adjustment. Sales 1 ($33.85/S.F.), 2 ($35.27/S.F.), 6 ($31.90/S.F.) and 7 ($38.09/S.F.) do not require any overall adjustment. Subject value is greater than the per square foot prices of Sales 3 and 4 ($31.80 and $26.72), less than No. 5 ($41.37) and within the range of Nos. 1, 2, 6, and 7 ($31.90 - $38.09). Giving consideration to all of the market data presented herein, the market value of the appraised property, as of February 25, 2021, is concluded to be $36.00 per square foot, or $317,000. 8,800 S.F. x $36.00/S.F. = $316,800 Rnd $317,000 38 21-2618 - A ADJUSTMENT GRID Subiect Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Sale 7 Property Site Size (S.F.) 8,800 6,500 6,095 5,000 7,860 6,950 5,250 5,250 Improvements at Sale None None 84-year old house No Value Old house Poor condition No Value None 37-year old house None Old house No Value Zoning T3-O T4-L T4-O T3-O T3-O T3-O T5-L T5-L Land Use Plan Multi Family Medium Density Multi Family Low Density Single Family Low Density Single Family Low Density Multi Family Medium Density Multi Family Medium Density Medium Density Restricted Commercial Medium Density Restricted Commercial Date of Sale $33.85 $35.27 $31.80 $26.72 $41.37 $31.90 $38.09 Price/S.F. Land Adjustments Market/Sale Conditions = _ _ + + + + Site Developability = _ _ _ - Zoning/ Planning = _ + _ _ - - Overall Adjustment = _ + + - 39 21-2618 - A VI. ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable and, whenever possible, it was cross checked with another source. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans, plats, maps, and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. The existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of 40 21-2618 - A the existence of such materials within or near the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material within or near the property that would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 12. The appraisal is intended to comply with the appraisal requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute. This appraisal report has been made with the following general limiting conditions: I. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. 3. The appraiser, by reason of this appraisal, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 5. Any value estimates provided in the report apply to the entire property, and any proration or division of the total into fractional interests will invalidate the value estimate, unless such proration or division of interests has been set forth in the report. 41 21-2618 - A VII. CERTIFICATION I certify that, 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 is my personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. 4. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 6. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, and the requirements of the State of Florida for state -certified appraisers. 7. No one other than the undersigned provided significant assistance in the preparation of this appraisal report. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, the undersigned has completed the requirements of the continuing education program of the Appraisal Institute. 10. The use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. 11. The undersigned has made a personal inspection of the property that is the subject of this report. 42 21-2618 - A 12. I previously appraised this property as of June 23, 2019. I have performed no other 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. It is the opinion of the undersigned that the property described herein has the following market value as of February 25, 2021: $317,000 Digitally signed by Edward Edwardz N.EdwaParker DN: rd N. Parker, o, ou, —ira5730@aol.com, N. Parker -us Date: 2021.03.03 13:46:03 -05'00' Edward N. Parker, MAI State Certified General Appraiser No. RZ144 43 21-2618 — A VIII. QUALIFICATIONS EDWARD N. PARKER, MAI Investors Research Associates, Inc. 5730 S.W. 74 Street, Suite 100 South Miami, Florida 33143-5381 Phone No.: (305) 665-3407 Fax No.: (305) 665-4921 Academic University of Alabama - B.S., Marketing University of Miami - M.B.A. Experience Mr. Parker began his career as a real estate consultant in 1972 with the Reinhold P. Wolff Economic Research Company in Coral Gables, Florida. As a staff analyst, he was responsible for the preparation of market feasibility studies, retail studies, economic use analyses, and site location studies. In 1974, Mr. Parker joined the Miami office of Real Estate Research Corporation (RERC), a wholly owned subsidiary of the First National Bank of Chicago. As a staff appraiser and analyst, Mr. Parker prepared appraisals of all types of income -producing properties located throughout the United States and the Caribbean. These valuations involved fee simple interest, leaseholds, partial interests, and going -concern valuations. He has also appraised a large number of special purpose properties including schools, marinas, resorts, and specialized manufacturing facilities. Mr. Parker's administrative responsibility at RERC included the coordination of the appraisal of the assets of two major Miami -based REITS during their orderly portfolio disposition. Mr. Parker also managed the annual ongoing portfolio appraisal of the properties comprising the First National Bank of Chicago commingled pension trust known as Fund F. In June, 1981, Mr. Parker joined Investors Research Associates, Inc. as a principal. The firm specializes in income property appraisals, highest and best use and market studies, as well as consultation services for major lending institutions, insurance companies, real estate syndicators, developers, pension funds and governmental agencies. Discounted cash flow and sensitivity analyses, as well as absorption studies are some of the services provided to clients. The firm has successfully completed a number of very complex valuation assignments involving environmentally sensitive wetlands including offshore island properties for private and public clients. Agricultural properties including row crop land, groves, and tree nurseries are another specialty. Mr. Parker's experience includes condemnation appraisals for both public and private clients. The public client list includes the Florida Department of Transportation, South Florida Water Management District, National Park Service, U.S. Department of Justice, Dade County HUD, Dade County Department of Facilities Management, and Miami -Dade Water and Sewer Department. Property types appraised for condemnation purposes include office buildings, retail stores, restaurants, service stations, banks, churches, apartments, vacant sites, agricultural (crop land and tropical fruit groves), and environmentally sensitive wetlands. Mr. Parker has qualified as an expert witness in Dade, Broward, Monroe and Duval County Circuit Courts, U.S. District Court, and U.S. Bankruptcy Court. He is also currently certified under the continuing education program conducted by the Appraisal Institute. Affiliations Member of the Appraisal Institute - MAI Licensed Real Estate Broker - State of Florida State Certified General Appraiser-0000144 44 21-2618 — A