HomeMy WebLinkAboutCRA-R-23-0046 Exhibit BExhibit "B"
APPRAISAL REPORT
A ONE-STORY RESTAURANT BUILDING
LOCATED AT:
350 N. W. 8TH STREET
MIAMI, FLORIDA
PREPARED FOR:
CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY
819 N. W. SECOND AVENUE, THIRD FLOOR
MIAMI, FLORIDA 33136
As OF:
SEPTEMBER 7, 2023
PREPARED BY:
QUINLIVAN APPRAISAL, P.A.
7300 N. KENDALL DRIVE - SUITE 530
MIAMI, FLORIDA 33156
Thomas F. Magenheimer, MAI
State Certified General Appraiser
RZ 553
September 12, 2023
QUINLIVAN APPRAISAL
A PROFESSIONAL ASSOCIATION
7300 NORTH KENDALL DRIVE, SUITE 530
MIAMI, FLORIDA 33156
Telephone (305) 663-6611
fax (305) 670-4330
tmagmai@aol.com
Brian Zeltsman, RA
Director of Architecture & Development
City of Miami Southeast Overtown Park
West Community Redevelopment Agency
819 N.W. Second Avenue
Miami, Florida 33136
Dear Mr. Zeltsman:
J. Mark Quinlivan (Retired)
In accordance with your request and authorization, I have prepared this Appraisal Report
covering the following described property:
A one-story restaurant building, located at 350 N. W. 8th Street,
Miami, Florida
The purpose of this Appraisal is to estimate the Market Value of the described property as of
September 7, 2023, being one of the dates of personal inspection.
The narrative Appraisal Report that follows sets forth the identification of the property, the
assumptions and limiting conditions, pertinent facts about the area and the subject property,
comparable data, the results of the investigations and analyses, and the reasoning leading to the
conclusions set forth.
This report was prepared in accordance with the requirements of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (FIRREA) relating to appraisal standards as
enumerated in Title 12, Code of Federal Regulation, Part 34 (12CFR34) and in compliance with
the most current Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by
the Appraisal Standards Board of the Appraisal Foundation.
Access to the interior of the building was not available from the property owner. This appraisal
is based on the extraordinary assumption that the interior of the building is in serviceable
condition and in similar condition to competitive properties in the market area. If the
extraordinary assumption does not exist, the value conclusion could be different.
Mr. Brian Zeltsman
September 12, 2023
Page 2
Based on the inspection of the property and the investigation and analyses undertaken, I have
formed the opinion that the subject property had a Market Value based upon the market
conditions prevalent on September 7, 2023, as follows:
THREE MILLION FOUR HUNDRED TWENTY-FIVE THOUSAND DOLLARS
$3,425,000
Respectfully submitted,
Thomas F. Magenheimer, MAI
State -Certified General Appraiser
Certification Number: RZ 553
TFM/dm
(23-060)
TABLE OF CONTENTS
PAGE
COVER PAGE
TRANSMITTAL LETTER
TABLE OF CONTENTS
CERTIFICATION OF VALUE 1
SUMMARY OF SALIENT FACTS AND CONCLUSIONS 3
INTRODUCTION 12
INTRODUCTION 13
IDENTIFICATION OF THE PROPERTY 13
LOCATION 13
PURPOSE AND DATE OF APPRAISAL 13
INTENDED USE AND USER OF APPRAISAL 13
LEGAL DESCRIPTION 13
PROPERTY RIGHTS APPRAISED 13
DEFINITION OF MARKET VALUE 14
ASSESSMENT AND TAXES - 2022 15
OWNER OF RECORD AND ADDRESS 15
THREE-YEAR HISTORY OF TITLE 15
SCOPE OF THE APPRAISAL 16
LOCATION ANALYSIS 19
NEIGHBORHOOD DATA 20
SITE DATA 24
ZONING 28
HIGHEST AND BEST USE 31
DESCRIPTION OF IMPROVEMENTS 35
THE APPRAISAL PROCESS 39
INCOME APPROACH TO VALUE 42
SALES COMPARISON APPROACH TO VALUE 53
RECONCILIATION AND VALUE CONCLUSION 71
ADDENDA 74
ASSUMPTIONS AND LIMITATIONS
QUALIFICATIONS
CLIENT LIST
CERTIFICATION OF VALUE
The undersigned hereby certifies that, to the best of my knowledge and belief:
(A) The statements of fact contained in the report are true and correct.
(B) The reported analyses, opinions and conclusions are limited only by the
assumptions and limiting conditions set forth, and are my personal,
unbiased professional analyses, opinions and conclusions.
(c) I have no present or prospective interest in the property that is the subject
of this report, and I have no personal interest or bias with respect to the
parties involved.
(D) I have no bias with respect to the property that is the subject of this report
or to the parties involved with this assignment.
(E) My engagement in this assignment is not contingent upon developing or
reporting predetermined results.
(F) The appraiser's compensation for completing this assignment is not
contingent upon the reporting of a predetermined value or direction in
value that favors the cause of the client, the amount of the value estimate,
the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this appraisal. Furthermore,
the appraisal assignment is not based on a requested minimum valuation,
a specific valuation or the approval of a loan.
(G) The appraiser's analyses, opinions and conclusions are developed, and
this report is prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice, and the requirements of the State of
Florida for state -certified appraisers.
(x) 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.
(I)
(J)
Thomas F. Magenheimer has made a personal inspection of the property
that is the subject of this report.
No one provided significant professional assistance to the person signing
this report.
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(K) The reported analyses, opinions, and conclusions are developed, and this
report is prepared, in conformity with the requirements of the Code of
Professional Ethics and the Standards of Professional Appraisal Practice
of the Appraisal Institute.
(L) The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
(M)
The undersigned performed market value appraisal services concerning
the subject property dated March 21, 2023.
As of the date of this report, Thomas F. Magenheimer has completed the requirements under the
continuing education program for The Appraisal Institute.
THOMAS F. MAGENHEIMER, MAI
STATE -CERTIFIED GENERAL APPRAISER
CERTIFICATION NUMBER: RZ553
QUINLIVAN APPRAISAL
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SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Purpose of Appraisal Market Value
Property Rights Appraised Fee Simple
Location 350 N. W. 8th Street
Miami, Florida
Land Size 22,518 Square Feet/0.52 Acres
Improvements A one-story restaurant building and outdoor
advertising sign
Age 1994
Zoning T6-80, Urban Core Zones
Highest and Best Use Existing restaurant use
Indications of Market Value:
Cost Approach Not Indicative
Income Approach $3,415,000
Sales Comparison Approach $3,445,000
Final Estimate of "as is" Market Value $3,425,000
Date of Value Estimate September 7, 2023
Date of Inspection September 7, 2023
Date of Report September 12, 2023
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LOOKING NORTHWESTERLY AT SUBJECT FROM N. W. 3RD AVENUE
LOOKING SOUTHWESTERLY AT SUBJECT FROM N. W. 31zD AVENUE
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LOOKING SOUTHWESTERLY AT SUBJECT FROM N. W. 81.11 STREET
r/ r:
LOOKING SOUTHEASTERLY AT SUBJECT FROM N. W. 8TH STREET
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LOOKING NORTHEASTERLY AT SUBJECT FROM N. W. 4TH AVENUE
LOOKING SOUTHEASTERLY AT SUBJECT FROM N. W. 41n AVENUE
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INTERIOR VIEW
INN 11111111'
INTERIOR VIEW
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INTERIOR VIEW
INTERIOR VIEW
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LOOKING EASTERLY ON N. W. 8T11 STREET — SUBJECT TO RIGHT
■• ■ id
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4�iPIlli11�I lu�I t
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LOOKING WESTERLY ON N. W. 8TH STREET — SUBJECT TO LEFT
QUINLIVAN APPRAISAL
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LOOKING NORTHERLY ON N. W. 3RD AVENUE- SUBJECT TO LEFT
LOOKING SOUTHERLY ON N. W. 3RD AVENUE - SUBJECT TO RIGHT
QUINLIVAN APPRAISAL
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LOOKING NORTHERLY ON N. W. 4'i AVENUE- SUBJECT TO RIGHT
LOOKING SOUTHERLY ON N. W. 4TH AVENUE- SUBJECT TO LEFT
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INTRODUCTION
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INTRODUCTION
IDENTIFICATION OF THE PROPERTY
A one-story restaurant building and outdoor advertising sign.
LOCATION
350 N. W. 8th Street
Miami, Florida.
PURPOSE AND DATE OF APPRAISAL
The purpose of this Appraisal is to estimate the Market Value of the fee simple interest of the
property as of September 7, 2023, being one of the dates of personal inspection.
INTENDED USE AND USER OF APPRAISAL
The intended use of this appraisal is to estimate the market value of the described property for a
potential purchase of the property. The intended user is the Southeast Overtown/Park West
Community Redevelopment Agency of the City of Miami.
LEGAL DESCRIPTION
Lot 7, less beginning 25.22 feet North of the Southeast corner, thence Northwesterly and
Westerly and Southwesterly by a curve to the left 134.87 feet to the North line of Lot 7, thence
East 39.64 feet, thence South 124.75 feet to the Point of Beginning, and all of Lot 8, the North 1/2
of Lots 9 and 10, Block 47 North, CITY OF MIAMI, according to the Plat thereof, as recorded in
Plat Book "B", Page 41, of the Public Records of Miami -Dade County, Florida
PROPERTY RIGHTS APPRAISED
The property is appraised in fee simple: a fee without limitations to any particular class of heirs
or restrictions, but subject to the limitations of eminent domain, escheat, police power and
taxation, as well as utility easements of record.
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DEFINITION OF MARKET VALUE
Market Value means the most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller each acting
prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit
in this definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
(1)
(2)
buyer and seller are typically motivated;
both parties are well informed or well advised and acting in what
they consider their own best interest;
(3) a reasonable time is allowed for exposure to the open market;
(4) payment is made in terms of cash in U.S. dollars or in terms of
financial arrangements comparable thereto; and
(5)
the price represents a normal consideration for the property sold
unaffected by special or creative financing or sales concessions
granted by anyone associated with the sale.
Source: Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal, Volume 75, No. 237, Page
77472
EXTRAORDINARY ASSUMPTION
An extraordinary assumption, directly related to a specific assignment, which, if found to be
false, could alter the appraiser's opinion of value. Extraordinary assumptions presume as fact
otherwise uncertain information about physical, legal, or economic characteristics of the subject
property; or about conditions external to the property, such as market conditions or trends; or
about the integrity of data used in an analysis.
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ASSESSMENT AND TAXES — 2022
The subject property is assessed under the jurisdiction of City of Miami, Florida.
The assessment for the property is established each year as of January 1st by the Miami -Dade
County Property Appraiser's Office at 100% of "Just Value." Just Value has been equated to
Market Value less closing costs. While the State of Florida requires real estate to be assessed at
100% of Just Value, in reality the ratio of the assessed value to sales price is generally below
100%.
Folio Numbers:
County Market Value:
01-0104-070-1060
01-0104-070-1110
01-0104-070-1120
Land $ 1,463,670
Improvements $ 208,447
Total $ 1,672,117
Assessed Value: $ 1,200,216
Millage Rate: $20.6152 per $1,000
Tax Amount: $27,852.06
Note: According to the Miami -Dade County Property Appraiser's
web page, the property taxes have not been paid.
OWNER OF RECORD AND ADDRESS
Gloria B. Lewis
1546 N. E. Quayside Terrace
Miami Shores, FL 33138
THREE-YEAR HISTORY OF TITLE
According to a search of the Public Records of Miami -Dade County, Florida, there have been no
sale transfers of the subject property during the past three years.
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SCOPE OF THE APPRAISAL
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SCOPE OF THE APPRAISAL
The scope of the assignment relates to the extent and manner in which research is conducted,
data is gathered and analysis is applied, all based upon the following problem -identifying factors
stated elsewhere in this report.
This appraisal of the subject has been presented in the form of an Appraisal Report, which is
intended to comply with the reporting requirements set forth under Standards Rule 2-2 (a) of the
USPAP.
Data related to the subject property was derived from various sources including but not limited to
the Miami -Dade County Property Appraiser's Office, Miami -Dade County Clerk's Office,
FEMA flood zone maps, a title commitment, and tax roll information provided by the Miami -
Dade County Property Appraiser's Office.
Comparable sale sources include the Miami -Dade County Property Appraiser's Office, the
Miami -Dade County Clerk of the Courts, Board of Realtors' Multiple Listing Services, Costar,
and LoopNet. Sales prices are typically confirmed with a party to the transaction, i.e., buyer,
seller, real estate agent or attorney to the transaction.
The site is improved with a restaurant building that is currently unoccupied. Therefore, a
stabilized value is estimated herein. The stabilized value is estimated based on one of the three
traditional approaches to value: Cost Approach, Income Approach, and Sales Comparison
Approach. The Cost Approach is not considered relevant to the valuation since the
improvements are existing and an estimate of effective age and accrued depreciation would be
subjective. A search for sales and rentals of restaurant buildings in Miami -Dade County was
conducted. The initial sales period researched were from January of 2021 through the date of
valuation. The sales all have similar improvements and highest and best uses as the subject
property. Several other comparable sales and rentals were considered, but were not included
because there was too wide a difference in physical factors, location and time.
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ESTIMATED EXPOSURE TIME
Exposure time is defined, as the estimated length of time the property interest being appraised
would have been offered on the market prior to the hypothetical consummation of a sale at
market value on the effective date of the appraisal; a retrospective estimate based upon an
analysis of past events assuming a competitive and open market.
The overall concept of reasonable exposure encompasses not only adequate, sufficient and
reasonable time but also adequate, sufficient and reasonable effort.
A reasonable exposure time for the subject property is estimated from discussions with buyers,
sellers, brokers and/or a review of the multiple listings of similar properties sites in the area
related to historic marketing periods.
Based on the above sources, exposure time is estimated to have been twelve months for the
subject property.
ESTIMATED MARKETING PERIOD
The estimated value of the subject is predicated upon a normal marketing period. A normal
marketing period is generally defined as the most probable amount of time necessary to expose
and actively market a property on the open market to achieve a sale. Implicit in this definition
are the following assumptions:
(A) The property will be actively exposed and aggressively
marketed to potential purchasers through marketing channels
commonly used by sellers and buyers of similar type
properties.
(B) The property will be offered at a price reflecting the most
probable markup over market value used by sellers of similar
type properties.
(C) A sale will be consummated under the terms and conditions
of the definition of Market Value required by the regulation.
In order to estimate the marketability of this property, the sales activity in this market area was
reviewed over the past three years, multiple listings were reviewed and real estate brokers who
operate in this area were interviewed.
Based on the above sources, the subject property could be sold within a twelve month time
period.
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LOCATION ANALYSIS
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NEIGHBORHOOD DATA
The subject property is located in the northern periphery of the Central Business District of
Miami in an area known as Park West. The site is located on the south side of N. W. 8th Street,
between, N. W. 3rd Avenue and N. W. 4th Avenue, adjacent to the west of Interstate 95,
Biscayne Boulevard (U.S. Highway #1) is a north/south traffic artery in the City of Miami.
Biscayne Boulevard extends northerly from Brickell Avenue to the Broward County line. The
majority of commercial properties in the subject neighborhood front on Biscayne Boulevard.
These commercial properties include motels, retail stores, restaurants, and multiple story office
buildings.
The Overtown area located west of Interstate 95 and north of the Miami River is a mixed use
area comprised of low rise apartment buildings and industrial properties. A bridge spanning the
Miami River is located at N.W. 7th Avenue, there block southwest of the subject property.
Several of the properties located in the area are maritime industrial uses related to the Miami
River.
The Overtown area, west of N.W. 1st Avenue and north of N.W. 5th Street to N.W. 20th Street, is
characterized by a large number of small apartment buildings. These buildings were constructed
primarily in the late 1940s and 1950s. These buildings generally are in poor to fair condition,
with virtually no new private construction in recent years.
There are two 30-story high-rise apartment buildings located just north of the former Miami
Arena site at N.W. 8th Street and N.W. 1st Avenue. These buildings were constructed on City of
Miami land by private developers. The south building, Bayview Towers, was constructed in
1989 and contains 356 units. The north building, Park Place by the Bay, was constructed in 1990
and contains 463 units. The rental rates area relatively reasonable in these buildings.
There has been little redevelopment in this area. The stimulus to speculation has been the
Performing Arts Center on Biscayne Boulevard at N.E. 13th Street. The construction was
completed in 2007. In addition to the speculation related to the Performing Arts Center, the
establishment of the Park West Entertainment District by the City in April of 2000 had a positive
effect on the property values.
The intent of the Ordinance was to eliminate the distance requirements between nightclubs and
to actually encourage establishment of clubs in close proximity to one another. It also provides
for 24-hour liquor licenses within the district. The Park West Entertainment District is bounded
by S.R. 836/I-395 to the north, Biscayne Boulevard to the east, N.E. 7th Street to the south, and
North Miami Avenue to the west.
Motivated by the liberal provisions of the Park West Entertainment District, in conjunction with
greater restrictions being placed on nightclub operators on South Beach, club owners have
acquired a number of older industrial buildings and vacant sites in the area - primarily along N.E.
11t Street and N.E. loth Streets. The older buildings have been totally renovated and opened as
nightclubs, reportedly with tremendous success. Although no new buildings have been built on
vacant sites, several are reportedly planned.
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The Central Business District of Miami is located just southeast of the Overtown area. The
Central Business District is defined with Biscayne Boulevard at the east boundary, N.W. /S.W.
1st Avenue to the west, N.E. 5th Street to the north and the Miami River to the south. The
Central Business District is comprised of offices, hotels and retail stores. The older buildings
were constructed primarily in the period between 1920 and 1940. The newer buildings were
constructed primarily in the 1960s and 1970s. Flagler Street is the primarily retail/office street in
the Central Business District of Miami. There are a variety of retail stores, department stores and
offices fronting along Flagler Street in the Central Business District.
Major office buildings in this area of Flagler Street and in the Central Business District include
Israel Discount Bank Building, Alfred I. DuPont Building, Bank of Miami, Biscayne Building,
City National Bank, Roberts Building, Courthouse Tower, Museum Tower, One Biscayne
Tower, Bank of America Tower, SunTrust International Center, Wachovia Financial Center and
Miami Center.
The Government Center is bordered on the east by the Metrorail Guideway (N.W. 1st Avenue),
on the west by Interstate 95, on the south by Flagler Street and on the north by N.W. 5th Street.
This is an area zoned for Government/Institutional uses.
There are two seven -story State of Florida Office buildings located on the east side of N.W. 2nd
Avenue between N.W. 4th Street and N.W. 5th Street. The five -story City of Miami Police
Station is located on the west side of N.W. 2nd Avenue, across from the State of Florida Office
building.
The 29-story Metro -Dade County Government Center is located approximately one mile south of
the subject sites on the east side of N.W. 2nd Avenue between N.W. 1st Street and N.W. 3rd
Street. This 500,000 square foot office building houses most of the Miami -Dade Government
Offices.
The former City of Miami Administrative Building (Hickman Building) is located on the
northeast corner of N.W. 2nd Street and N.W. 3rd Avenue. The City of Miami moved their
administrative office to a larger building in 1992 at S.W. 2nd Avenue and S.W. 4th Street. The
Hickman Building now houses Miami -Dade County Parks Depailuient and the Juvenile
Assessment Center.
Miami -Dade County has two multi -level parking garages on the north and south sides of N.W.
1st Street, just east of N.W. 3rd Avenue.
The Miami -Dade County Cultural Center which contains the Art Museum of Miami -Dade
County, the Historical Museum of Southern Florida and Main Branch of the Miami Public
Library, is located adjacent to the south of the Miami -Dade County Government Center.
The Miami -Dade County Courthouse is located on West Flagler Street at N.W. 1st Avenue. Due
to proximity to the courthouse, most offices along Flagler Street are occupied by attorneys and
their support services.
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The Overtown Station of Miami -Dade County's Rapid Transit System, known as Metrorail, is
located at N.W. 8th Street and N.W. 1st Avenue. The Metrorail is an elevated track train system
which extends north and west through the City of Hialeah to the Palmetto Expressway at N.W.
74th Street, and south to the Dadeland area.
The Downtown Metromover emanates from the Government Center Station. The Metromover is
an elevated track, remote controlled vehicle system which provides local transportation in the
Central Business District. The Metromover track extends southerly to S.E. and S.W. 4th Street,
easterly to Biscayne Boulevard, northerly to N.E. and N.W. 5th Street and westerly to N.E. and
N.W. 2nd Avenue. The Metromover has nine stations throughout the Central Business District of
Miami. Extensions of the Downtown Metromover have been constructed that run to the Omni
and Brickell Avenue areas.
The Federal Law Enforcement Building, known as the General Services Administration (GSA)
Building, is located along the west side of N.E. 1st Avenue, between N.E. 4th and 5th Streets. This
308,000 square foot, 12-story building was recently constructed by the City of Miami in two
phases and is leased to the Federal Government. There is one floor of partially sub -level parking,
with the top three floors utilized as courtrooms to handle the overflow from the main courthouse.
Various governmental offices occupy 100 percent of this building, with the U.S. Attorney's
Office and the U.S. Marshall's Service as primary tenants.
The U.S. Bureau of Prisons Metropolitan Federal Detention Center was recently built
immediately west of the GSA Building. This 22-story facility houses a total of 946 inmates for
all four security wards - minimum, low, medium, and maximum.
In summary, the subject property is located north of the Central Business District of Miami, in an
older multi-family/commercial area known as Overtown, a short distance from the Florida State
Office Buildings and the Metro -Dade County Government Center.
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Metrorail-Culmer
Station
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LOCATION MAP
Theodore R
Gibson Park
SUBJECT PROPERTY
350 N. W. 8 Street
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SITE DATA
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SITE DATA
Dimensions and Shape:
The site is irregular in shape.
The east property line of the site fronts for 153.0 feet along the west right-of-way line of N. W.
3rd Court. The north property line thence extends westerly for 172 feet on the south right-of-way
line of N. W. 8th Street. The west property line thence extends southerly for 74 feet along the east
right-of-way line of N. W. 4th Avenue. The south property line thence extends easterly for 102
feet, thence extends southerly for 75 feet, and thence extends easterly for 101 feet.
Source: Realist.
Area:
22,518 Square Feet
0.52 Acres
Source: Miami -Dade County Property Appraiser's Web Page
Topography and Drainage:
The site is level at an elevation equivalent to the abutting streets.
Flood Zone:
Map No. 12086C0314L (Effective September 11, 2009)
IIXII
Areas determined to be outside 0.2% annual chance floodplain
Soil and Subsoil:
The immediate area of the subject site appears to have no unusual soil or subsoil conditions.
Unusual conditions would be brought out by test borings.
Utilities:
Water:
Sewer:
Electricity:
Telephone:
Street Improvements:
Miami -Dade Water & Sewer Department
Miami -Dade Water & Sewer Department
Florida Power & Light Company
AT&T
N. W. 3rd Court is asphalt paved with a dedicated width of 50 feet. N. W. 3rd Court has three
southbound lanes.
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N. W. 4th Avenue is asphalt paved with a dedicated width of 50 feet. N. W. 4th Avenue contains
one northbound lane and one southbound lane.
N. W. 8th Street is asphalt paved with a dedicated width of 50 feet. N. W. 8th Street contains one
eastbound lane and one westbound lane.
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SITE SKETCH
1 1 I i 1 0 1 i . 1 1 ..Qa •r1
I f(41 1 F'' ".1
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ZONING
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ZONING
Under Ordinance of the City of Miami, Florida.
Classification: T6-8-O URBAN CORE ZONE - OPEN
The urban core zone is comprised of the highest density and greatest variety of uses, including
civic buildings of regional importance. A network of small blocks has thoroughfares with wide
sidewalks, with steady tree planting and buildings set close to the frontage with frequent doors
and windows.
Permitted Principal Uses allowed by right include single family residences, duplexes,
multifamily housing, community residences, home offices, bed & breakfasts, inns, hotels,
offices, entertainment establishments, food service establishments, general commercial, places of
assembly, recreational facilities, religious facilities, learning centers, and research facilities. Uses
permitted by waiver include auto related establishments, marine related facilities, open air retail,
infrastructure and utilities, community support facilities, marinas, public parking, transit
facilities, childcare, colleges, schools, and vocational training. Uses permitted by exception
include alcohol service establishments.
Development Regulations
Minimum Lot Size: 5,000 square feet
Maximum Lot Size: 40,000 square feet
Minimum Lot Width: 50 feet
Maximum Lot Coverage: 80%
Floor Lot Ratio: 5
Minimum Green Space: 10%
Maximum Density: 150 dwelling units per acre
Setbacks:
Front (principal) 10 feet
Front (secondary) 10 feet
Side 0 feet
Back 0 feet
Minimum Height: Two stories
Maximum Height: Eight stories
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Minimum Offstreet Parking:
Principal Dwelling
Community Residence
Lodging
Office
Commercial
Civic
Educational
1.5 spaces per unit
1 space per staff member in addition to required parking
1 space per 2 lodging units
3 spaces per 1,000 square feet
3 spaces per 1,000 square feet
1 space per every 5 seats of assembly area
2 spaces per every 1,000 square feet of educational use
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HIGHEST AND BEST USE
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HIGHEST AND BEST USE
Fundamental to the concept of value is the theory of highest and best use. Land is valued as if
vacant and available for its highest and best use.
The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition, defines
highest and best use as follows:
The reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and results in the highest value.
Land has limited value unless there is a present or anticipated use for it; the amount of value
depends on the nature of the land's anticipated use, according to the concept of surplus
productivity. Among all reasonable, alternative uses, the use that yields the highest present land
value, after payments are made for labor, capital, and coordination, is generally regarded as the
highest and best use of the land as though vacant.
The highest and best use of a property as improved refers to the optimal use that could be made
of the property including all existing structures. The implication is that the existing improvement
should be renovated or retained as so long as it continues to contribute to the total market value
of the property, or until the return from a new improvement would more than offset the cost of
demolishing the existing building and constructing a new one.
In estimating the highest and best use there are essentially four stages of analysis:
1. Possible Use. What uses of the site being appraised are physically possible?
2. Permissible Use (Legal) What uses are permitted by Zoning and Deed
Restriction, if any?
3. Feasible Use. Which possible and permissible uses will produce a net return to
the owner of the site?
4. Maximally Productive. Among feasible uses, which use will produce the highest
net return to the owner of the site?
The highest and best use of the land (or site), if vacant and available for use, may be different
from the highest and best use of the improved property. This is true when the improvements are
not an appropriate use, but make a contribution to the total property value in excess of the value
of the site.
The following four point test is required in estimating the Highest and Best Use. The use must be
legal. The use must be probable, not speculative or conjectural. There must be a profitable
demand for such use and it must return to the land the highest net return for the longest period of
time.
QUINLIVAN APPRAISAL
32
These tests have been applied to the subject property. In arriving at the estimate of Highest and
Best Use, the subject site is analyzed as vacant and available for development, and as improved.
Possible Use
The site has frontage on N. W. 8th Street, N. W. 3rd Court and N. W. 4th Avenue. N. W. 8th Street
and N. W. 4th Avenue are secondary streets. N. W. 3rd Court is a frontage road to Interstate 95.
The site has good road access and exposure.
The site is 22,518 square feet in size which equates to 0.52 of an acre. The size and street
frontage of the subject site would allow a moderate scale use or subdivision into several sites.
The site is irregular in shape, with sufficient street frontage and width to have good functional
utility.
The size, shape, width and street frontage of the site would indicate moderate scale use or a
subdivision into several sites.
Permissible Use
Permissible or legal uses are those uses which are permitted by zoning or deed restrictions.
There are presently no known private deed restrictions of record.
The site is zoned for mixed commercial and residential uses. The zoning of the site permits most
commercial uses, hotels, houses, duplexes, townhouses and apartments. The maximum building
density is based on a maximum lot area ratio of five times the net lot area. The maximum
residential density is 150 dwelling units per acre. The maximum building footprint is 80% of the
net lot area. The maximum building height is eight stories.
Feasible Use/Maximally Productive Use
The physical characteristics and zoning of the subject property permit a wide range of potential
uses. The possible and permissible uses of the subject site include banks, hotels, office buildings,
retail stories and residential uses.
The physical characteristics and zoning of the subject property would indicate a small scale use,
such as an office building, mixed use office and residential use, hotel, or government building.
The site is a corner location that has street frontage on three sides. The site has direct visual
exposure to Interstate 95. The site has good road access and exposure. The site is located a few
blocks from a Metro Rail station. Metro Rail is the mass transit elevated train system of Miami -
Dade County.
The permissible uses of the subject site include offices, banks, stores, hotels, restaurants,
religious facilities, schools, residential uses, and most commercial uses.
The good exposure of the site would benefit a commercial use.
QUINLIVAN APPRAISAL
33
Conclusion — As Vacant
Based on the zoning, physical characteristics, and surrounding uses, the highest and best use of
the site is estimated to be for a commercial use.
Highest and Best Use as Improved
The subject site is improved with a one-story restaurant building, parking lot, and an outdoor
advertising sign. The building was constructed in 1994 and appears to be in average condition.
The building is designed for single tenancy. According to the public records, the adjusted area of
the building is 3,960 square feet. Based on land area of the site, the land -to -building ratio of the
property is 5.7-to-one. The land -to -building ratio of the property is high in comparison with the
sales analyzed in this report.
The existing building is in conformity in use and design with surrounding buildings. A
restaurant use is permitted by the current zoning of the property.
Based on the above factors, the existing restaurant building represents the highest and best use of
the site.
QUINLIVAN APPRAISAL
34
DESCRIPTION OF IMPROVEMENTS
QUINLIVAN APPRAISAL
35
DESCRIPTION OF IMPROVEMENTS
Age and Condition
According to the Public Records of Miami -Dade County, the building improvements were
constructed in 1994. From personal inspection of the property, the improvements appear to be in
average condition. The building does not appear to have an visible structural deficiencies.
Description
The subject site is improved with a one-story restaurant building and an outdoor advertising sign.
The building is an irregularly shaped masonry structure. The building, sign, and parking lot
occupy the entire site.
The floor plan of the building is comprised of dining room, kitchen, storage room, and two
bathrooms.
An asphalt paved parking lot is located on the west side of the building. The parking lot has nine
marked spaces.
Size:
Adjusted Building Area 3,960 square feet
Details of Construction
Foundation: Steel reinforced poured concrete in
excavation trench
Exterior Walls: Eight inch concrete block in poured concrete
frame, stucco -painted
Windows: Fixed impact glass in metal frame and single
hung in aluminum frame
Roof: Flat composition roll on wood deck
Interior Walls: Painted drywall
Ceilings: Painted drywall
Floors: Poured concrete slab and ceramic tile
Lighting: Fluorescent and incandescent
QUINLIVAN APPRAISAL
36
Equipment and Fixtures
Central air conditioning
Kitchen equipment
Yard Improvements
Asphalt paved parking lot
Outdoor advertising sign
QUINLIVAN APPRAISAL
37
BUILDING SKETCH
1•
QUINLIVAN APPRAISAL
38
THE APPRAISAL PROCESS
QUINLIVAN APPRAISAL
39
THE APPRAISAL PROCESS
The appraisal of real estate is generally valuated by means of one or more of the following
approaches:
(1) The Cost Approach
(2) The Income Approach
(3) The Sales Comparison Approach
The Cost Approach
In the Cost Approach, land and building are valued as though they are separate entities. The land
value is first estimated as if vacant. Then, by consulting various cost services, local building
contractors and knowledge of construction costs, the replacement cost new of the building is
estimated. Accrued depreciation from all sources including physical deterioration, functional and
economic obsolescence must be deducted from this cost. The estimated land value is then added
to the depreciated cost of the building to give the "depreciated replacement cost" of the
property.
The Cost Approach is based on the premise that the value of a commodity tends to be set by the
cost of acquiring an equally desirable substitute. Applied to real estate, the assumption is that a
person would not likely pay more for a property than it would cost him to acquire a suitable site
and place an equally desirable building upon it. Costs would include direct cost of construction,
indirect costs such as financing costs, land and developer/builder's profit.
The Cost Approach has the most applicability when building improvements are new. However,
the estimate of accrued depreciation in older buildings become more difficult and, hence, affects
the reliability of this approach to value.
Furthermore, investors in existing commercial properties, such as the subject property, are more
concerned with the net income of a property rather than a replacement cost.
Considering the subject improvements have an age of 29 years old, the Cost Approach would
have little applicability in this situation and is not utilized.
Income Approach
The Income Approach is based on the premise that the value of a property may be determined by
the amount of net income it can reasonably produce over its remaining economic life. The
rationale of the approach is that the present worth of a future income stream is equivalent to the
value of the property, which produces that income.
QUINLIVAN APPRAISAL
40
Four basic steps comprise the Income Approach:
Estimate the reasonable expectable annual gross income the
property will likely produce.
Deduct an allowance for vacancy and collection loss to arrive
at the effective gross income.
Deduct the annual expense of operation from the effective
gross income to arrive at the annual net income.
Capitalize the annual net income into an indication of value.
The subject property is currently unoccupied. Contract rent from a lease was not available for
analysis. Comparable rentals from competitive properties are analyzed to estimate the market
rent of the property.
The operating expenses were based on the actual operation of the subject and from comparable
buildings. The projected net income is capitalized based on an overall rate estimated by a Band
of Investment technique and from overall rates abstracted from market sales.
The Sales Comparison Approach
The Sales Comparison Approach is an attempt to measure the reactions of typical buyers and
sellers. In this approach, a direct comparison is made between the property being appraised and
comparable properties, which have sold recently. These sales are compared for degrees of
comparability such as location, size, age, zoning, time, the conditions of sale, financing and other
pertinent data, which would affect value. Adjustments are made for these factors in order to
arrive at a reliable estimate of value.
In this report, sales of restaurant properties in the subject and competitive locations are gathered
and analyzed. Comparable locations are considered to be the city of Miami.
Reconciliation
After applying the three approaches, three separate indications of value are obtained. The
indicated values obtained from each approach must be correlated into one final conclusion of
value. Usually one approach will be considered more significant than the rest, either because of
the reliability of the data, or because of the type of property involved. Reconciliation is the
process by which each approach is objectively weighted according to its importance.
QUINLIVAN APPRAISAL
41
INCOME APPROACH TO VALUE
QUINLIVAN APPRAISAL
42
INCOME APPROACH TO VALUE
This approach to value is a technique in which the anticipated net income is processed to indicate
the capital amount of the investment, which produces the net income. The capital amount, called
the capitalized value, in effect, is the sum of the anticipated annual rents less the loss of interest
until the time of collection.
Income
Annual Rental Income
Outdoor Sign Income
Tenant Reimbursements
Potential Gross Annual Income
LESS: Vacancy & Collection Loss @ 5%
Effective Gross Annual Income
Operating Expenses
Management @ 4% $11,500
Real Estate Taxes $26,700
Insurance $4,000
Repairs & Maintenance $3,000
Professional Fees $1,000
Reserves for Replacement $2,000
$166,320
$110,000
$25,900
$302,220
-$15,111
$287,109
Total Operating Expenses $48,200 -$48,200
Net Operating Income $238,909
$238,909 Capitalized @ 7.00% $3,412,986
Value Indication by Income Approach (Rounded) $3,415,000
QUINLIVAN APPRAISAL
43
Income
Contract Rent
The subject building is currently unoccupied. A contract rent from a lease is not available for
analysis. According to a representative of the property owner, the annual rent for the outdoor
advertising sign is $110,000.
Market Rental Rate Analysis
The market rent of the subject unit is estimated based on a survey of competitive restaurant
properties in the subject market area. The subject market area is considered to be the northern
region of Miami. A summary of the comparable rentals is as follows:
No.
Address
Size(SF)
Bldg
Age
Rent
Per SF
Type
Rent
1
200 N. W. 42" d Avenue
3,137
1977
$45.00
Net
2
975 N. E. 125th Street
1,767
1960
$37.00
Net
3
1201 W. Flagler Street
1,500
1924
$56.00
Net
4
5426 N. W. 7th Avenue
2,400
1945
$42.50
Net
5
3651 N. W. 25th Street
2,300
2018
$35.00
Net
The rental rates of the comparable retail rentals range from $35.00 to $56.00 per square foot of
building area. Four of the five rental rates are on a net basis. Net rental rates obligate the tenants
for all operating expenses. A gross rental rate obligates the tenant for utility services.
The rental properties range in size from 2,074 to 6,893 square feet. The subject property, at 3,960
square feet, is within the range of the sizes of the rental properties.
The building conditions of all of the comparable rental properties are considered similar to the
building condition of the subject property.
Based on the comparable rentals and the contract rental rates of the subjects, the market rent of
the subject retail space is estimated to be $42.00 per square foot of rentable area on a net basis.
A photograph of each comparable rental is contained on a following page.
Projected Gross Income
Annual Rental Income
3,960 Square Feet x $42.00 per Square Foot= $166,320
QUINLIVAN APPRAISAL
44
Annual Rental Income
Outdoor Sign Income
Tax Reimbursement
Potential Gross Annual Income
$ 166,320
$ 110,000
$ 25,900
$ 302,220
QUINLIVAN APPRAISAL
45
RENTAL 1
RENTAL 2
QUINLIVAN APPRAISAL
46
RENTAL 3
RENTAL 4
QUINLIVAN APPRAISAL
47
RENTAL 5
QUINLIVAN APPRAISAL
48
COMPARABLE RENTAL MAP
l es TY
MELIA DpSTRICT
Amelia
Earhart Park
Hialeah
£I MIN0LA
Aliarni Springs
Miami
International
Airport
9
LLJIUC7 1 L !CCU C3
spa-lec a 1151
E i;th t
FLAGAMI
?st Miami
No.:
Westview
s.
orth" iami
It.
Pinewood 132F-1
-iv Miami Shores
West Little
River x - El Portal
si
Gladevier
Brownsville
LrnL IIHAvANA
ir
Little Gables
)3
Coral Gables CORAL AY
eil It 1E22 cri .
m
WYNWCI0D
WNTOWN
MIAMI
Miami
North Ba
Village
Dodge island
Fisi
QUINLIVAN APPRAISAL
49
Vacancy and Collection Loss
A vacancy and collection loss allowance is a reduction in potential rental income due to space
not leased or rents not collected. This allowance is generally expressed as a percentage of
Potential Gross Income.
The subject property is a single tenant design that would be either 100% occupied or 100%
vacant. Leases for single tenant buildings usually have long terms, but at the expiration of a lease
the building could be 100% vacant until a new tenant could be located.
The subject property is currently 100% vacant.
The Colliers Miami Retail Market Report for the second quarter of 2023 indicates an overall
vacancy for retail space in Miami -Dade County of approximately 2.8%. The Miami market area
is reported to have a vacancy rate of 2.2%
Based on the above a vacancy and collection loss allowance of 5% is considered applicable for
the subject.
Operating Expense Analysis
Based on expense information obtained from the similar buildings, discussions with management
agents, from a review of published studies and the actual operation of the subject property, the
operating expenses are estimated as follows:
Management is based on 4% of Effective Gross Annual Income. This item would cover salary
and administrative cost for rent collection and record keeping of the subject property. This
expense equates to $2.90 per square foot of building area.
Real Estate Taxes - The real estate taxes are based on the actual 2022 assessment and millage
rate, less the 4% discount for early payment. The actual real estate taxes are $26,738 or $6.75 per
square foot of building area. This expense would be reimbursed by the tenant.
Insurance - This expense is estimated at $1.00 per square foot of building area. This expense
would be reimbursed by the tenant.
Repairs and Maintenance - This expense is estimated at $0.50 per square foot of rentable
building area. These expenses include structural repairs, air conditioning repairs, plumbing
repairs, site maintenance, etc.
Janitorial — Paid by tenant
Utilities - Paid by tenant
Professional Fess - This expense is estimated at $0.25 per square foot of rentable building area.
This expense would cover legal fees, accounting fees, appraisal fees, surveyor fees, etc.
QUINLIVAN APPRAISAL
50
Reserves for Replacement — Reserves cover the replacement of long lived building items such
as painting, roof cover and air conditioners. The reserves were estimated at $0.30 per square
foot of rentable building area.
The total expenses equate to $12.17 per square foot of rentable building area. The ratio of
operating expenses to effective gross income is approximately 16.8%.
SELECTION OF CAPITALIZATION RATE
Capitalization is a process, which translates an income projection into an indication of value. The
connecting link is a rate, which reflects the return necessary to attract investment capital. Hence,
the selection of an appropriate rate represents a critical factor in the capitalization process
OVERALL RATES FROM MARKET SALES OF RESTAURANT PROPERTIES
NO.
LOCATION
DATE
PRICE
OVERALL RATE
1
6900 Biscayne Boulevard, Miami
1/21
$3,400,000
7.0%
2
3101 N. E. 7th Avenue, Miami
6/21
$12,100,000
6.0%
3
72 N. W. 79th Street, Miami
7/21
$2,475,000
6.3%
4
169 N. W. 231"d Street, Miami
7/21
$4,605,000
5.7%
5
3321 Mary Street, Miami
11/21
$4,000,000
5.8%
6
510 N. E. 125th Street, North Miami
5/22
$1,400,000
6.6%
7
1785 N. E. 163rd Street, N. Miami Beach
6/22
$2,180,980
5.0%
8
9675 Bird Road, Miami -Dade County
11/22
$2,000,000
6.6%
OVERALL RATE BY BAND OF INVESTMENT THEORY
The overall rate developed by application of the Band of Investment Theory is a synthesis of
mortgage debt service and anticipated cash flow to equity which market data discloses as
applicable to comparable properties.
The rate developed is a weighted average, the weighing being for the respective portions of the
value represented by the mortgage and equity positions, or Band of Investment.
The overall rate developed by application of the Band of Investment Theory is a synthesis of
mortgage debt service and anticipated cash flow to equity which market data discloses as
applicable to comparable properties.
The rate developed is a weighted average, the weighing being for the respective portions of the
value represented by the mortgage and equity positions, or Band of Investment.
QUINLIVAN APPRAISAL
51
Cash
Flow Weighted
Source of Capital Portion Rate Average
Mortgage Loan 0.75 x 0.064419 = 0.0483
Equity Funds 0.25 x 0.10 = 0.0250
0.0733
OR
Overall Rate 7.33%
From discussions with lending institutions, from the Realty Rates.com Investor Survey — Third
Quarter 2023 and from an analysis of comparable sales, it is determined the most favorable rate
and likely mortgage terms available to the subject property would be a loan -to -value ratio of
75% mortgage at an interest rate of 5% with an amortization period of 30 years and a term of
five to ten years.
From the Realty Rates.com Investor Survey — Third Quarter 2023, a cash flow rate of 10% is
estimated to be sufficient to attract equity funds to this type of investment. While the equity
dividend rate appears low, the eventual equity yield rate through operational leverage and
appreciation should be commensurate with alternate investments.
Overall Rates From Investor Surveys
The Realty Rates.com Investor Survey — Third Quarter 2023 indicates overall rates for
restaurants -full service ranging from 8.64% to 17.39%, with the average being 14.18%.
Conclusion
Based on the above sources, considering that the property is leased to local tenants with average
credit ratings, a capitalization rate of 7.0% is considered appropriate for the income stream of the
subject property.
QUINLIVAN APPRAISAL
52
SALES COMPARISON APPROACH TO VALUE
QUINLIVAN APPRAISAL
53
SALES COMPARISON APPROACH TO VALUE
This approach to value is a technique in which the Market Value estimate is predicated upon
prices paid in actual market transactions of similar properties. These similar, or comparable,
transactions (sales) are adjusted to indicate a value to the subject.
The Sales Comparison Approach is a process of analyzing sales of similar recently sold
properties in order to derive an indication of the most probable sales price of the property being
appraised. The reliability of this approach is dependent upon the availability of comparable sales
data, the verification of the sales data, the degree of comparability and the absence of non -typical
conditions affecting the sale.
The following pages contain sales of similar restaurant properties which have recently sold.
Several other sales are considered, but are not included because there is too wide a difference in
physical factors, location and time.
In this approach to value, one unit of comparison is considered: the price paid per square foot of
building area.
A photograph of each sale, a detailed profile of each sale, a summary of the sales, a sales map
and a value conclusion follows herein.
QUINLIVAN APPRAISAL
54
IMPROVED SALE 1
DATE: April 22, 2022
PRICE: $1,200,000
TYPE INSTRUMENT: Warranty Deed
RECORDATION: O.R. Book 33178, Page 2512
FOLIO NUMBER: 30-3128-013-0220
30-3128-013-0230
GRANTOR:
GRANTEE:
LEGAL:
Elkin E. Cabrera
Frances Street 18, LLC
Lots 13 & 14, Block 42, MELROSE HEIGHTS, Plat
Book 17, Page 21 of Miami -Dade County, Florida.
LOCATION: 3305 N. W. 32nd Avenue
Miami -Dade County, Florida
ZONING: BU-1A, Limited Business District
LAND SIZE: 13,800 Square Feet
LAND/BUILDING RATIO: 4.8 to 1
PHYSICAL DESCRIPTION:
Building Size: 2,866 Square Feet
Age: 1937
Condition: Average
Stories: One
FINANCING: Cash
UNIT PRICE: $418.70 per square foot of building area
REMARKS: The property was operated as a restaurant.
QUINLIVAN APPRAISAL
55
SALE 1
QUINLIVAN APPRAISAL
56
IMPROVED SALE 2
DATE: May 17, 2022
PRICE: $1,000,000
TYPE INSTRUMENT: Special Warranty Deed
RECORDATION: O.R. Book 33197, Page 4510
FOLIO NUMBER: 01-4139-007-3450
GRANTOR: RGD Capital Group, LLC.
GRANTEE: 1247 SW 22nd Street, LLC
LEGAL: Lot 24, Block 68, EAST SHENANDOAH, Plat
Book14, Page 55 of the Public Records of Miami -
Dade County, Florida.
LOCATION: 1247 S. W. 22nd Street
Miami, Florida
ZONING: T6-80, Urban Core Zone
LAND SIZE: 2,600 Square Feet
LAND/BUILDING RATIO: 1.8 to 1
PHYSICAL DESCRIPTION:
Building Size: 1,458 Square Feet
Age: 1945
Condition: Average
Stories: One
FINANCING: Cash
UNIT PRICE: $685.87 per square foot of building area
REMARKS: The property was operated as a restaurant.
QUINLIVAN APPRAISAL
57
SALE 2
QUINLIVAN APPRAISAL
58
IMPROVED SALE 3
DATE: August 5, 2022
PRICE: $1,975,000
TYPE INSTRUMENT: Warranty Deed
RECORDATION: O.R. Book 33330, Page 3679
FOLIO NUMBER: 01-3113-026-0300
GRANTOR: 6471, LLC
GRANTEE: Elite Starr Enterprises, LLC
LEGAL: Lots 8 & 9, Block 7, less the West 10 feet FIRST
ADDITION TO FOREST PARK, Plat Book 6, Page 6
of the Public Records of Miami -Dade County,
Florida.
LOCATION: 6471 N. W. 7th Avenue
Miami, Florida
ZONING: T5-L, Urban Center Zone
LAND SIZE: 12,004 Square Feet
LAND/BUILDING RATIO: 4.5 to 1
PHYSICAL DESCRIPTION:
Building Size: 2,640 Square Feet
Age: 1990
Condition: Average
Stories: One
FINANCING: Cash
UNIT PRICE: $748.11 per square foot of building area
REMARKS: The property is operated as a restaurant.
QUINLIVAN APPRAISAL
59
SALE 3
QUINLIVAN APPRAISAL
60
DATE:
PRICE:
TYPE INSTRUMENT:
RECORDATION:
FOLIO NUMBER:
GRANTOR:
GRANTEE:
LEGAL:
LOCATION:
ZONING:
LAND SIZE:
LAND/BUILDING RATIO:
PHYSICAL DESCRIPTION:
Building Size:
Age:
Condition:
Stories:
FINANCING:
UNIT PRICE:
REMARKS:
IMPROVED SALE 4
June 30, 2023
$1,500,000
Warranty Deed
O.R. Book33791, Page 4041
06-2220-000-0371
C & M Sweet Bakery, Inc.
Elite Starr Enterprises, LLC
A portion of the South 1/4 of the SW 1/4 of the SW 1/4
of Section 20, Township 52 South, Range 42 East in
Miami -Dade County, Florida.
13695 West Dixie Highway
North Miami, Florida
C-2, Commercial District
15,958 Square Feet
5.4 to 1
2,946 Square Feet
1970
Average
One
Conventional first mortgage from Home Loan
Investment Bank of $1,200,000 at 6.79% interest.
$509.16 per square foot of building area
The property was operated as a restaurant before the
sale. The property is being renovated after the sale.
QUINLIVAN APPRAISAL
61
SALE 4
QUINLIVAN APPRAISAL
62
IMPROVED SALE 5
DATE: July 19, 2023
PRICE: $675,000
TYPE INSTRUMENT: Warranty Deed
RECORDATION: O.R. Book 33810, Page 1196
FOLIO NUMBER: 01-4001-005-2230
GRANTOR: Garisol Enterprises, Inc.
GRANTEE: 6790 W Flagler, LLC
LEGAL: Lots 1 & 2, Block 10, FAIRLAWN, Plat Book 8,
Page 83 of the Public Records of Miami -Dade
County, Florida.
LOCATION: 6790 West Flagler Street
Miami, Florida
ZONING: T6-O, Urban Core Zone
LAND SIZE: 6,997 Square Feet
LAND/BUILDING RATIO: 5.9 to 1
PHYSICAL DESCRIPTION:
Building Size: 1,194 Square Feet
Age: 1949
Condition: Average
Stories: One
FINANCING: Cash
UNIT PRICE: $565.33 per square foot of building area
REMARKS: The property is operated as a restaurant.
QUINLIVAN APPRAISAL
63
SALE 5
QUINLIVAN APPRAISAL
64
IMPROVED SALES MAP
- - I Locka
Executive
P
Airport
Marini Lakes
24
aleah
irdens
!dley
6, AMELIA DISTRICT
1.1 Amelia
Earhart Park WestvieW7.4.—
Bundle Park
Opa-locka
Golden Glades
(q.ff
Hialeah
SEMINOLA
E nth SI
Miami Springs
Miami
International
Airport
hester West Miami
Coral Terrace
Pical Park
North Mianni-
At— ef2—
Pinevvood -1
Miami Shores
West Little
River
Gladeview
Brownsville
aAV 41Z L MN
ALLAPATTAH
0
qi)16
LITTLE HAVANA
r47}
Little Gables —
Coral Gables
I 4
CORM
COCONUT
GROVE
01.11THWESt
COCONUT
El Portal
(44)
m
cf,
YNW0OD
DOWNTowN
MIAMI
Miami
Dodge Isk
NO.: 1511 _ 0 2 _ 3 04 Subject
41P
Virgrni
(9i)
1
QUINLIVAN APPRAISAL
65
SUMMARY OF IMPROVED SALES
CHARACTERISTIC
SUBJECT
SALE 1
SALE 2
SALE 3
SALE 4
SALE 5
DATE OF SALE
4/22/22
5/17/22
8/5/22
6/30/23
7/19/23
SALE PRICE
$1,200,000
$1,000,000
$1,975,000
$1,500,000
$675,000
RECORDATION
33178/2512
33197/4510
33330/3679
33791/4041
33810/1196
ADDRESS
350 N.W. 8 St.
3305 N.W. 32
Ave.
1247 S.W. 22
St.
6471 N.W. 7
Ave.
13695 W. Dixie
Hwy.
6790 W. Flagler
Ave.
LOCATION
31/4 Miles NW
23/4 Miles SW
3% Miles North
81/4 Miles NE
6% Miles SW
LAND SIZE (S.F.)
17,518
13,800
2,600
12,004
15,958
6,997
BLDG SIZE (S.F.)
3,960
2,866
1,458
2,640
2,946
1,194
BUILDING AGE
1994
1937
1945
1990
1970
1949
ZONING
T6-80
BU-1A
T6-80
T5-L
C-2
T6-80
BLDG CONDITION
Average
Average
Average
Average
Average
Average
LAND-TO-BLDG
RATIO
4.4:1
4.8:1
1.8:1
4.5:1
5.4:1
5.9:1
PRICE PAID/S.F.
BLDG
$418.70
$685.87
$748.11
$509.16
$565.33
ANALYSIS OF IMPROVED SALES
The sales range in unit price from $418.70 to $748.11 per square foot of building area. The sales
range in time from April of 2022 to July of 2023.
Property Rights
The fee simple interest is the property right of the subject property being valued. The comparable
sales involved the same type or similar of property rights.
Conditions of Sale
All of the sales were arm's-length transactions. An arm's-length transaction is defined as a
transaction freely arrived at in the open market unaffected by abnormal pressure or by the
absence of normal competitive negotiation as might be true in the case of a transaction between
related parties.
Financing
The sales were financed with cash or purchase money mortgages or conventional first mortgages
at market interest rates. The financing of the sales does not indicate any adjustments of the sale
prices for favorable/below market financing.
Date of Sale (Market Conditions)
The sales range in time from April of 2022 to July of 2023. The sales do not indicate a
significant change in prices over this time period in this market area.
Location
The subject property is located in the Overtown district of Miami. The sale properties are located
in suburban locations in Miami -Dade County, within a 43/4 mile radius of the subject.
The Sale 1 property fronts on a secondary traffic artery. The exposure of the Sale 1 property is
inferior to the exposure of the subject property. The location of the Sale 1 property is considered
inferior to the location of the subject. The unit price of Sale 1 requires upward adjustment for an
inferior location.
Building Size
The subject building has an adjusted building size of 3,960 square feet. The sale properties range
building area from 1,194 to 2,946 square feet. The building size of the subject property is
slightly above the range of the building sizes of the sale properties. An analysis of the sales
indicates no difference in unit price based on building size.
QUINLIVAN APPRAISAL
67
Building Age/Condition
The subject building was constructed in 1994 and is in average condition. The sale buildings
were built between 1937 and 1990 and are in average condition. The building ages and
conditions of the sale properties are considered similar to the age and condition of the subject
property.
Land -to -building Ratio
The subject property has a land -to -building ratio of 5.7:1. The land -to -building ratios of the sale
properties range from 1.8:1 to 5.9:1. A comparison of the unit prices of the sales indicates no
difference in price based on land -to -building ratio.
Conclusion
The improved sales range in unit price from $418.70 to $748.11 per square foot of building area.
The sales range in date of sale from April of 2022 to July of 2023.
A summary of the adjustments is as follows:
Sale No.
1
2
3
4
5
Price/Square Foot Bldg
$418.70
$685.87
$748.11
$509.16
$565.33
Adjustments
Property Rights
Conditions of Sale
Financing
=
=
=
=
=
Market Conditions
Location
+
=
=
=
=
Building Size
Building Age
Land -to -Bldg. Ratio
=
=
=
=
=
Total Adjustments
+
Based on careful analysis of the sales, the subject property is estimated to have a market value of
$565.00 per square foot of building area.
3,960 Square Feet x $565.00 per Square Foot = $2,237,400
Value Indication by Sales Comparison Approach $2,235,000
QUINLIVAN APPRAISAL
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Incremental Value of Outdoor Advertising Sign
Gross Income Multiplier Analysis
A summary of the Gross Income Multipliers (GIM) from the market sales of retail properties in
Miami -Dade County is as follows:
SALE
ADDRESS
DATE
SALE PRICE
EGIM
1
14600 W. Dixie Hwy., Miami -Dade Co.
8/20
$1,750,000
9.9
2
6549 Bird Road, Miami -Dade County
11/20
$1,450,000
9.7
3
45 Curtiss Pkwy., Miami Springs
1/21
$1,000,000
9.7
4
14700 N. E. 6th Ave., Miami -Dade Co.
2/21
$1,200,000
11.2
5
555 N.E. 87th St., Miami Shores
4/21
$2,475,000
13.0
6
2060 N.W. 22nd Ave., Miami
1/22
$2,500,000
12.3
7
4700 N.W. 7th St., Miami
11/22
$2,280,000
10.0
8
10425 N.W. 41st St., Doral
11/22
$15,125,000
14.2
9
20900 S. Dixie Hwy., Miami -Dade Co.
12/22
$2,625,000
13.4
10
27525 S. Dixie Hwy., Miami -Dade Co.
6/23
$3,900,000
11.0
The Gross Income Multipliers of the sales range from 9.7 to 14.2, the majority being in the 10 to
13 range.
Based on an analysis of the sales, a Gross Income Multiplier of 11.0 is estimated for the outdoor
advertising sign income of the subject property.
The contract rental income of the outdoor advertising sign is $110,000 (Please see Page 44).
Gross Value
Contract Income x Income Multiplier = Indication
$110,000 x 11.0 = $1,210,000
Conclusion of Sales Comparison Approach
The value indication of the property excluding the outdoor advertising sign from the price paid
per square foot analysis was $2,235,000. The value contribution of the outdoor advertising sign
from the Gross Income Multiplier Analysis was $1,210,000.
Based on an analysis of the market data and the analysis contained herein, the value indication of
the property based on Sales Comparison Approach is estimated as follows:
QUINLIVAN APPRAISAL
69
Value Indication w/o Sign Contribution
Value Increment of Sign
Value Indication by Sales Comparison Approach
$ 2,235,000
+ 1,210,000
$3,445,000
QUINLIVAN APPRAISAL
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RECONCILIATION AND VALUE CONCLUSION
QUINLIVAN APPRAISAL
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RECONCILIATION AND VALUE CONCLUSION
The reconciliation of the data and indicated value estimates is the final step in the appraisal
process. Sufficient data has been assembled and analyzed for the purpose of judging the
reactions of typical purchasers in the market place.
In this report, the three accepted appraisal techniques are considered. The value estimates
indicated by these approaches resulted in the following:
Cost Approach to Value Not applicable
Income Approach to Value $3,415,000
Sales Comparison Approach to Value $3,445,000
Cost Approach to Value
The Cost Approach has the most applicability and will generally result in a truer estimate of
value when the building improvements are new and accrued depreciation need not be estimated.
Since the age of the subject building is 29 years, a large degree of judgment would be required to
estimate the effective age and depreciation of the buildings
Considering the above factors, the value indication from the Cost Approach is not considered
applicable for the valuation of the subject property.
Income Approach to Value
The data in this approach as to the quality, quantity and durability of the income was considered
fair. The property is unoccupied. Contract rents from the subject property were not available to
assist in estimating the market rent for the property. The market income of the property was
estimated based on comparable properties. The expenses were estimated based on the operation
of the subject and on comparable properties. The net income was capitalized by means of a direct
capitalization method with an overall rate.
Since the subject property is unoccupied, the value indication by the Income Approach to value
is given secondary emphasis in the final analysis.
Sales Comparison Approach to Value
In reference to the Sales Comparison Approach, consideration has been given to sales that have
taken place in the real estate market. These sales are analyzed and adjusted to the subject to
reflect a market value estimate of the subject.
The quality of the market sales in this approach to value is considered good. The sales are
similar properties located in Miami -Dade County.
Considering the quality of these sales, this approach to value is given primary emphasis in the
final analysis.
QUINLIVAN APPRAISAL
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Final Conclusion
In the reconciliation process, the greatest weight should be given to the approach or approaches
which produce the highest degree of confidence and which has been processed with a minimum
of assumptions. Of equal importance is the reasonableness of the data and the reliability of the
data.
In consideration of the above, and for the reasons and conclusions contained herein, the Market
Value of the subject property as of September 7, 2023 was estimated at:
$3,425,000
QUINLIVAN APPRAISAL
73
ADDENDA
QUINLIVAN APPRAISAL
74
ASSUMPTIONS AND LIMITING CONDITIONS
This Appraisal Report has been made with the following general assumptions:
1. No responsibility is assumed for the legal description or for matters
including legal or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
2. The property is appraised free and clear of any or all liens or
encumbrances unless otherwise stated.
3. Responsible ownership and competent property management are
assumed.
4. The information furnished by others is believed to be reliable.
However, no warranty is given for its accuracy.
5. All engineering is assumed to be correct. The plot plans and
illustrative material in this report are included only to assist the
reader in visualizing the property.
6. If no survey has been furnished to the appraisers, all measurements
have been confirmed either in the field, in the plat book or by other
reliable sources and are presumed to be accurate.
7
It is assumed that there are no hidden or unapparent conditions of the
property, subsoil, or structures that render it more or less valuable.
No responsibility is assumed for such conditions or for arranging for
engineering studies that may be required to discover them.
8. It is assumed that there is full compliance with all applicable federal,
state and local environmental regulations and laws unless
noncompliance is stated, defined and considered in the Appraisal
Report.
9. It is assumed, unless a study has been provided otherwise, that no
hazardous material such as asbestos, urea formaldehyde or other
toxic waste exists in the property. The existence of a potentially
hazardous material could have a significant effect on the value of the
property.
10. In reference to proposed construction, the real estate taxes and other
expenses are estimated. These amounts are not guaranteed.
QUINLIVAN APPRAISAL
75
11.
It is assumed in the valuation of the subject land site, unless a
compliance letter has been furnished to us, that the State of Florida
Growth Management Act does not prevent the issuance of a building
permit.
12. It is assumed that all required licenses, certificates of occupancy,
consents, or other legislative or administrative authority from any
local, state or national government or private entity or organization
have been or can be obtained or renewed for any use on which the
value estimate contained in this report is based.
13. It is assumed that the utilization of the land and improvements is
within the boundaries of property lines of the property described and
that there is no encroachment or trespass unless noted in the report.
This Appraisal Report has been made with the following general limiting conditions:
1.
The distribution, if any, of the total valuation of this report between
land and improvements applies only under the stated program of
utilization. The separate allocations for land and buildings must not
be used in conjunction with any other appraisal and are invalid if so
used.
2. Possession of this report, or a copy thereof, does not carry with it the
right of publication. It may not be used for any purpose by any
person other than the party to whom it is addressed without the
written consent of the appraisers, and in any event, only with proper
written qualification and only in its entirety.
3. The appraisers herein by reason of this appraisal is not required to
give further consultation, testimony, or be in attendance in court with
reference to the property in question unless arrangements have been
previously made.
4. Neither all nor any part of the contents of this report (especially any
conclusions as to value, the identity of the appraisers, or the firm
with which the appraisers are connected) shall be disseminated to
the public through advertising, public relations, news, sales, or other
media without the prior written consent and approval of the
appraisers.
QUINLIVAN APPRAISAL
76
QUALIFICATIONS OF THE APPRAISER
THOMAS F. MAGENHEIMER
Experience:
11/84 - Present QUINLIVAN APPRAISAL, P.A.
7300 N. Kendall Drive, Suite 530
Miami, Florida
Currently president of Quinlivan Appraisal, P.A., a Real Estate Appraising and Consulting Firm,
established in 1964.
Education:
University of Richmond, Richmond, Virginia
BA - Bachelor of Arts in History (1982)
Professional Affiliations:
Member of the Appraisal Institute (MAI No. 09166)
Real Estate Salesman - State of Florida - Certificate No. 0344882
Certified General Appraiser, State of Florida, License No. RZ 553
Member Sigma Alpha Epsilon Fraternity
Qualified as an Expert Witness in the Following Courts:
Miami -Dade and Broward County Circuit Courts
United States Bankruptcy Court
Other Activities:
Admissions Committee - South Florida -Caribbean Chapter of the Appraisal Institute - (1992)
Newsletter Editor - South Florida -Caribbean Chapter of the Appraisal Institute - (1991 - 1995)
President - South Florida -Caribbean Chapter of the Appraisal Institute - (1996)
Board of Trustees - Palmer -Trinity School (1989 - 1993)
QUINLIVAN APPRAISAL
77
Quinlivan Appraisal has prepared Appraisal Reports for the following:
Institutions and Corporations:
AT&T
Alpha Realty Advisors
Archdiocese of Miami
Apollo Bank
The Bank of America
Bank United
Barry University
Bessemer Trust Company
California Bank and Trust
Chevron Oil Company
Chase Manhattan Bank
Chemical Bank
Citibank
City National Bank of Miami
Coamerica Bank
Coconut Grove Bank
Commerce Bank
Commercial Bank of Florida
Eastern National Bank
Espirito Santo Bank
First American Bank
First Bank Florida
Farm Credit of South Florida
First International Bank
First National Bank of South Miami
Florida International University
First Nationwide Bank
Florida Memorial College
Florida Power and Light Company
Florida Rock Industries
Greyhound Lines
HSBC
Hemisphere National Bank
Iberia Bank
Intercontinental Bank
International Bank of Miami, N.A.
Jackson Health System
Jetstream Financial Credit Union
LaSalle National Bank
Marine Midland Bank
McDonalds Corp.
Mellon United National Bank
Miami -Dade County Community College
Northern Trust Bank of Florida
QUINLIVAN APPRAISAL
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Ocean Bank
Pacific National Bank
Shell Oil Company
Silver Hill Funding
South Trust Bank
SunTrust Bank
TotalBank
Trust for Public Lands
University of Miami
U. S. Century Bank
Wachovia
Wal-Mart
YMCA
Governmental Agencies:
City of Aventura
City of Coral Gables
City of Doral
City of Florida City
City of Hialeah
City of Homestead
City of Miami
City of Miami Parking Authority
City of Miami Beach
City of Miramar
City of North Bay Village
City of North Miami
City of North Miami Beach
City of South Miami
City of Sunny Isles Beach
Miami -Dade County Aviation Department
Miami -Dade County Department of Development & Facilities Management
Miami -Dade County HUD
Miami -Dade County Property Appraisal Adjustment Board
Miami -Dade County Public Schools
Miami -Dade County Public Works Depaituient
Miami -Dade County Transportation Administration
Miami -Dade Water & Sewer Depailinent
South Florida Water Management District
State of Florida, Attorney General's Office
State of Florida, Depailinent of Community Affairs
State of Florida, Department of Corrections
State of Florida, Department of Environmental Protection
State of Florida, Department of Insurance
State of Florida, Department of Rehabilitation and Liquidation
State of Florida, Department of Transportation
Town of Golden Beach
QUINLIVAN APPRAISAL
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Town of Bay Harbor Islands
Town of Miami Lakes
United States Army Corps of Engineers
United States Department of Justice
United States Department of Commerce
United States Department of the Interior
United States General Services Administration
Village of Islamorada
Village of Key Biscayne
Village of Pinecrest
Village of Palmetto Bay
Law Firms:
Akerman Senterfitt
Greenberg, Traurig
Daniels, Kashton, Downs and Robertson
Holland and Knight, LLP
Shutts & Bowen
Ruden McClosky, LLP
Steel, Hector & Davis, LLP
Weiss, Serota, Helfman, Pastoriza, Guedes, Cole and Boniske, P.A.
Types of Properties Appraised:
Single Family Residences
Apartment Buildings
Office Buildings
Retail Stores
Shopping Centers
Condominium Apartment Buildings
Golf Courses
Residential Subdivisions
Automobile Dealerships
Vacant Land
Hotel/Motels
Warehouses
Nursing Homes
Mobile Home Parks
Schools
Service Stations
Marinas
Wetlands
QUINLIVAN APPRAISAL
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