Loading...
HomeMy WebLinkAbout15954 AppraisalsAPPRAISAL REPORT #1 BLAKE AND ASSOCIATES, INC. BLE APPRAISAL REPORT 1851 NW 1st Court Miami, Miami -Dade County, FL 33136 PREPARED FOR Ms. Isiaa Jones, Executive Director City of Miami, Omni Community Redevelopment Agency 1401 N. Miami Avenue 2nd Floor Miami, FL 33136 PREPARED BY Joseph J. Blake and Associates, Inc. 5201 Blue Lagoon Drive Suite 270 Miami, FL 33126 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 5201 Blue Lagoon Drive, Suite 270 I Miami, FL 33126 I Phone: (305) 448-1663 I Fax: (305) 448-7077 I www.iosephiblake.com February 8, 2024 Ms. Isiaa Jones, Executive Director City of Miami, Omni Community Redevelopment Agency 1401 N. Miami Avenue 2nd Floor Miami, FL 33136 Re: 1851 NW 1st Court 1851 NW 1st Court Miami, FL33136 Dear Ms. Jones: As requested, we have prepared an appraisal of the property referenced above presented in the attached Appraisal Report. The purpose of the appraisal is to develop an opinion of the following values: Perspective Value Date of Value Interest Appraised Value Type Prospective "As Is" 3/1/24 Leased Fee Estate Market Value Briefly described, the subject consists of an average quality two-story apartment property in good condition, containing 6 rental apartments totaling approximately 2,568 SF of net rentable area, constructed in 1954. The average unit size is approximately 428 SF. The property is currently vacant. The property was recently renovated by the owner and is subject to a rent regulatory agreement with the Omni Redevelopment District Community Redevelopment Agency which provided financing for the renovations. The subject's site consists of approximately 7,500 SF or approximately .17 acres of land, with a surrounding fence. The site is rectangular and is level and at street grade. The unit amenities include central air-conditioning units and standard kitchen appliances. Currently the contractor is waiting to install recently received electrical equipment that will allow the final certificate of occupancy. This is expected to occur within the next week per as per the contractor. The Rental Regulatory Agreement is linked to the Forgivable Loan Agreement and the utilization of the Omni CRA funds to rehabilitate the property. The subject must always, during the affordability period and subject to existing tenants, maintain the following unit types: For the two 2-bedroom units, the rental rate must be at or below the rental rates established for households at or below 80% of the area median income ($1,858), as determined by the U.S Departments of Housing and Urban development (HUD). For the two 1-bedroom units, the rental rate must be at or below the rental rates established for households at or below 60% of the area median income {$1,161). For the two studios/efficiencies, the rental rate must be at or below the rental rate established for households at or below 40% of the area median income ($723). The unit rents may be adjusted annually based on the HUD tables. The appraisal and the attached Appraisal Report have been prepared in conformity with and are subject to the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP). In preparing this appraisal, we considered the use of the three most widely recognized approaches to value: the Cost, Income Capitalization and Sales Comparison Approaches. The appraisal is subject to the attached Assumptions and Limiting Conditions and Definition of Market Value. Regional Offices: Atlanta 1 0 on I Chicago I Dallas I Los Angeles I Miami I Orlando I Phoenix I New York City I San Antonio San Francisco 1 Washington D.C. Blake & Sanyu Alliance: Tokyo I Osaka I Nagoya I Tohoku February 8, 2024 Ms. Isiaa Jones Page 2 of 2 This appraisal has also been prepared in conformity with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by The Interagency Appraisal and Evaluation Guidelines promulgated in 2010. The appraisal did not use or rely upon unsupported conclusions relating to bias, such as characteristics relating to race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, disability, group homogeneity, or any other prohibited basis. Based on the analysis of pertinent physical and economic factors, we have arrived at the following value opinions: Perspective Pros pective Value "As Is" Date of Value Interest Appraised Value Opinion 3/1/24 Leased Fee Estate $920,000 EXTRAORDINARY ASSUMPTIONS This appraisal is not based on any extraordinary assumptions. HYPOTHETICAL CONDITIONS There are no hypothetical conditions for this appraisal. The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly priced and actively marketed. The attached Appraisal Report summarizes the documentation and analysis in support of our opinions. If you have any questions, please contact the undersigned. We thank you for retaining the services of our firm. Respectfully submitted, JOSEPH J. BLAKE AND ASSOCIATES, INC. Draft Draft Ted Allen, MAI, MRICS Desmond Dorceus Managing Partner Associate Appraiser Florida -State -Certified General Real Estate Appraiser Florida -State -Registered Trainee Appraiser R2426 No. R125541 Expires: November 30, 2024 Expires: November 30, 2024 tallen@josephjblake.com 1851 NW 1st Court 23-022-02 TABLE OF CONTENTS TITLE PAGE TRANSMITTAL LETTER EXECUTIVE SUMMARY 1 PHOTOGRAPHS OF THE SUBJECT 2 CERTIFICATION 7 GENERAL ASSUMPTIONS & LIMITING CONDITIONS 9 INTENDED USER AND USE OF THE APPRAISAL 11 PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT 11 PURPOSE OF THE APPRAISAL AND PROPERTY RIGHTS APPRAISED 11 DEFINITION OF VALUE 11 EXPOSURE TIME 11 MARKETING TIME 11 SCOPE OF THE APPRAISAL 12 IDENTIFICATION OF THE PROPERTY 13 CURRENT USE OF THE SUBJECT 13 HISTORY OF THE SUBJECT 13 AREA ANALYSIS 14 NEIGHBORHOOD ANALYSIS 22 NATIONAL MARKET ANALYSIS..., 28 DESCRIPTION OF THE SITE 50 DESCRIPTION OF THE IMPROVEMENTS 53 ZONING 56 TAXES 57 HIGHEST AND BEST USE 60 ANALYSIS OF DATA AND CONCLUSIONS 62 INCOME CAPITALIZATION APPROACH 63 SALES COMPARISON APPROACH 89 RECONCILIATION AND FINAL VALUE 98 ADDENDA Replacement Cost for Insurance Purposes Miami -Dade County Property Record Card Real Estate Tax Information Legal Description Zoning Map Zoning Information Most Recen: Deed Tax Information Flood Map Rent Regulatory Agreement Construction Renovation Budget HUD Income and Rent Tables Appraisal Engagement Contract Glossary of Terms Qualifications of the Appraisers JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 EXECUTIVE SUMMARY PROPERTY SUMMARY Address City County State Zip Parcel ID/Tax ID 1851 NW 1st Court Miami Miami -Dade FL 33136 01-3125-048-0650 The subject is located on the east side of NW 1st Court, south of NW 19th Street. The property is located in the City of Miami. Briefly described, the subject consists of an average quality two-story apartment property in good condition, containing 6 rental apartments totaling approximately 2,568 SF of net rentable area, constructed in 1954. The average unit size is approximately 428 SF. The property is currently vacant. The property was recently renovated by the owner and is subject to a rent regulatory agreement with the Omni Redevelopment District Community Redevelopment Agency which provided financing for the renovations. The subject's site consists of approximately 7,500 SF or approximately .17 acres of land, with a surrounding fence. The site is rectangular and is level and at street grade. The unit amenities include central air-conditioning units and standard kitchen appliances. The following table provides a summary of the subject improvements: Building Name/ID Net Rentable Area Year Renovated Current Occupancy 1851 NW 1st Court 2,568 2020 0.00% The following table summarizes the subject site: Gross Land Gross Land Primary Zoning Primary Zoning Projected Taxes Area (Acres) Area (SF) Primary Zoning Code Description Authority Rounded 0.17 7,500 T3-0 Multi -Family, Low- City Of Miami $18,000 The following table summarizes the highest and best use, the current use, and the appraised use of the subject: Highest and Best Use Site as Vacant Site as Improved To maximize the utility of the site in relation to the zoning The current i mprovernents Current Use Appraised Use Multifamily development Multifamily development PERTINENT DATES The date of the report is February 8, 2024. The date of the inspection was February 1, 2024. The date(s) of valuation are as follows: Value Date of Value ''As Is" 3/1/24 VALUE SUMMARY The value conclusions are summarized as follows: Perspective Value Prospective "As Is" Date of Value 3/1/24 Interest Appraised Value Opinion Leased Fee Estate $920,000 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSIRTING 1 1851 NW 1st Court 23-022-02 PHOTOGRAPHS OF THE SUBJECT Building Front, West Side of Property View North on NW 1' Ct. View South on NW 15= Ct. First Floor Entrance/Walkway Residents Mail Boxes Unit 1 - 2 bed, 1 bath JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 2 1851 NW 1st Court 23-022-02 PHOTOGRAPHS OF THE SUBJECT Typical Living Room (2 bed, 1 bath) Typical Unit Bedroom (2 bed, 1 bath) Unit 2 - Studi❑ Typical Unit Kitchen (2 bed, 1 bath) Typical Unit Bathroom (2 bed,1 bath) Typical Living/Bed Room (Studio) JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 3 1851 NW 1st Court 23-022-02 PHOTOGRAPHS OF THE SUBJECT Typical Unit Kitchen (Studio) Typical Unit Bathroom (Studio) Unit 3 -1 bed,1 bath Typical Living Room (1 bed, 1 bath) Typical Unit Kitchen (1 bed, 1 bath) Typical Unit Bedroom (1 bed, 1 bath) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 4 1851 NW 1st Court 23-022-02 PHOTOGRAPHS OF THE SUBJECT Typical Unit Bathroom (1 bed, 1 bath) Typical Unit HVAC Equipment/Water Heater Front Stairway to Second Floor Second Floor Entrance/Walkway Rear Side of Building North Side of Building JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 5 1851 NW 1st Court 23-022-02 PHOTOGRAPHS OF THE SUBJECT Units' Air Condition Unit Rear Land Parcel Electrical Room Rear Land Parcel cont. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 6 1851 NW lst Court 23-022-02 CERTIFICATION We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. • We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Desmond Dorceus, has also made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the persons signing this certificate. • As of the date of this report, Ted Allen, MAI, MRICS has completed the continuing education program for Designated Members of the Appraisal Institute. • The Appraisal Report is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. In addition, our engagement was not contingent upon the appraisal producing a specific value and neither engagement, nor employment, nor compensation, is based upon approval of any related loan application. • The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • We are professionally competent to perform this appraisal assignment by virtue of previous experience with similar assignments and/or appropriate research and education regarding the specific property type being appraised. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 7 1851 NW lst Court 23-022-02 CERTIFICATION • Desmond Dorceus, State -registered trainee real estate appraiser, assisted with the on -site inspection, research of the demographic and market trend data, writing of descriptive sections of this report, Highest and Best Use analysis, development of the approaches to value and final reconciliation. No other individual has provided significant real property appraisal assistance to the persons signing this certificate. • I, Ted Allen, the supervisory appraiser of a registered trainee appraiser who contributed to the development or communication of this appraisal, hereby accept full and complete responsibility for any work performed by the registered trainee named in this report as if it were my own work. JOSEPH J. BLAKE AND ASSOCIATES, INC. Draft Draft Ted Allen, MAI, MRICS Desmond Dorceus Managing Partner Associate Appraiser Florida -State -Certified General Real Estate Appraiser Florida -State -Registered Trainee Appraiser RZ426 No. R125541 Expires: November 30, 2024 Expires: November 30, 2024 tallen@josephjblake.com JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 8 1851 NW lst Court 23-022-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS This Appraisal Report is subject to underlying assumptions and limiting conditions qualifying the information contained in the Report as follows: The valuation opinion(s) apply only to the property specifically identified and described in the ensuing Report. Information and data contained in the report, although obtained from public record and other reliable sources and, where possible, carefully checked by us, is accepted as satisfactory evidence upon which rests the final opinion(s) of property value. We have made no legal survey, nor have we commissioned one to be prepared, and therefore, reference to a sketch, plat, diagram or previous survey appearing in the report is only for the purpose of assisting the reader to visualize the property. It is assumed that all information known to the client and/or the property contact and relative to the valuation has been accurately furnished and that there are no undisclosed leases, agreements, liens or other encumbrances affecting the use of the property, unless otherwise noted in this report. Ownership and management are assumed to be competent and in responsible hands. No responsibility beyond reasonableness is assumed for matters of a legal nature, whether existing or pending. We, by reason of this appraisal, shall not be required to give testimony as expert witness in any legal hearing or before any Court of Law unless justly and fairly compensated for such services. By reason of the Purpose of the Appraisal and the Intended User and Use of the Report herein set forth, the value opinion(s) reported are only applicable to the Property Rights Appraised, and the Appraisal Report should not be used for any other purpose. Disclosure of the contents of this Appraisal Report is governed by the By -Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any opinions as to value, our identity, or the firm with which we are connected, or any reference to the Appraisal Institute or to the MAI Designation) shall be reproduced for dissemination to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior consent and written approval. We have not been furnished with soil or subsoil tests, unless otherwise noted in this report. In the absence of soil boring tests, it is assumed that there are no unusual subsoil conditions or, if any do exist, they can be or have been corrected at a reasonable cost through the use of modern construction techniques. This appraisal is based on the conditions of local and national economies, purchasing power of money, and financing rates prevailing at the effective dates) of value. We are not engineers and any references to physical property characteristics in terms of quality, condition, cost, suitability, soil conditions, flood risk, obsolescence, etc., are strictly related to their economic impact on the property. No liability is assumed for any engineering -related issues. Unless otherwise stated in this report, we did not observe the existence of hazardous materials, which may or may not be present on or in the property. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials, may affect the value of the property. The value opinion is predicated on the assumption that there is no such material on or in the property that would cause a loss in value or extend their marketing time. No responsibility is assumed for any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 9 1851 NW lst Court 23-022-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS Toxic and hazardous substances, if present within a facility, can introduce an actual or potential liability that may adversely affect marketability and value. Such effects may be in the form of immediate clean-up expense or future liability of clean-up costs (stigma). In the development of our opinion(s) of value, no consideration was given to surh liabilities or their impart on value. The client and all intended users release .Inseph .I Blake and Associates, Inc., from any and all liability related in any way to environmental matters. Possession of this report or a copy thereof does not imply right of publication, nor use for any purpose by any other than the client to whom it is addressed, without our written consent. Cash flow projections are forecasts of estimated future operating characteristics and are based on the information and assumptions contained within the Appraisal Report. The achievement of the financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may well vary from the projections contained herein. We do not warrant that these forecasts will occur. Projections may be affected by circumstances beyond our current realm of knowledge or control. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements for the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. unless otherwise stated in this report, we have no direct evidence relating to this issue and we did not consider possible non-compliance with the requirements of the ADA in forming the opinion of the value of the property. EXTRAORDINARY ASSUMPTIONS This appraisal is not based on any extraordinary assumptions. HYPOTHETICAL CONDITIONS There are no hypothetical conditions for this appraisal. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 10 1851 NW lst Court 23-022-02 INTRODUCTION INTENDED USER AND USE OF THE APPRAISAL The intended user of this appraisal is the client, City of Miami, Omni Community Redevelopment Agency. We assume any affiliates, successors and assigns noted herein have the same intended use, knowledge and understanding as the original named client. The intended use of this appraisal is to assist the client with asset management decisions. This appraisal is not intended to be used by any other parties, for any other reasons, other than those which are stated here. Non -identified parties are not intended users of this report. PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT The date of the report is February 8, 2024. The date of the inspection was February 1, 2024. This Appraisal Report, with its analyses, conclusions, and final opinions of market value, is specifically applicable to the following date(s) of valuation: Perspective Prospective Value Market Value Value "As Is" Date of Value 3/1/24 PURPOSE OF THE APPRAISAL AND PROPERTY RIGHTS APPRAISED Value "As Is" Date of Value Interest Appraised 3/1/24 Leased Fee Estate DEFINITION OF VALUE Value Definition 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. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable lime is allowed for exposure in the open market; 4. Payment is made in terms nfcash in 11.S. (loll arc 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.' Value Type Market Value Value Source 12 C.F.R. § 34.42, 225.62, 323.2, 564.2, 722.2 EXPOSURE TIME To arrive at an estimate of exposure time, we reviewed exposure periods of comparable sales and listings. We are of the opinion that 6 to 12 months is a reasonable exposure time, assuming the property was reasonably priced and actively marketed. MARKETING TIME To arrive at an estimate of marketing time, we reviewed marketing periods of comparable sales and listings. It is our opinion that a marketing time of 6 to 12 months is considered reasonable for the subject property. According to the PwC Real Estate Investor Survey, fourth quarter 2023, the quoted marketing time for National Apartment properties on a national basis ranged from 2 to 15 months, and averaged 6.3 months. The subject's marketing time should be similar to the PwC average. The subject is located in a stable apartment market in a densely populated part of South Florida JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 11 1851 NW 1st Court 23-022-02 INTRODUCTION SCOPE OF THE APPRAISAL The scope of an appraisal assignment is relative to the intended use of the appraisal. The following outlines the extent of property inspection, market data collection, verification and analysis performed for this assignment. Inspection Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report. Desmond Dorceus, has also made a personal inspection of the property that is the subject of this report. This inspection included the interior and exterior of the subject. The inspection was visual in nature, to assess the economic condition of the property, in order to effectively compare it to other properties in the market. We are not engineers, and we did not assess the property from the standpoint of its structural integrity, or to determine whether any latent defects (water leaks, plumbing or electrical problems, etc.) were present. Subject Physical and Economic Characteristics The types of information obtained and the sources providing such information are detailed in the following table. Information Sources Information Type Miami -Dade County Property Record Card Real Estate Tax Information Legal Description Zoning Map Zoning Information Most Recent Deed Tax Information Flood Map Rent Regulatory Agreement Construction Renovation Budget HUD Income a nd Rent Tables Appraisal Engagement Contract Received? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Source Public Records Public Records Public Records Public Records Public Records Public Records Public Records FEMA Representative of Owner Representative of Owner Public Records CI ient Type of Analysis Applied The Sales Comparison and the Income Capitalization Approaches were applied in this valuation analysis. Extent of Data Research General economic data and market data were reviewed. Comparable sales were compiled from published sources including various reliable publications. Market data compiled for this report include a variety of rent comparables and improved property sales. These data are a result of research specific to the market and pertinent to the subject. The data were verified by buyers, sellers, brokers, managers, government officials or other sources regarded as knowledgeable and reliable. A rental survey of competing properties was conducted, and we provide photographs of all the comparable sales and rentals, where available. Information specific to the subject was provided by the client, owner, and/or representatives of the owner, and is assumed to be correct. Other information, such as zoning and tax records, was obtained from governmental sources. Specific estimates concerning market rent, expenses, vacancy, etc., reflect our judgment based on interpretation of the market data. The reasoning behind such estimates is illustrated throughout each of the approaches to value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 12 1851 NW lst Court 23-022-02 INTRODUCTION IDENTIFICATION OF THE PROPERTY The property is commonly known as: 1851 NW 1st Court. The property address and tax parcel numbers as identified by the Miami -Dade County Property Appraiser/Tax Collector's Office are as follows: Address City County State Zip Parcel ID/Tax ID 1851 NW 1st Court Miami Miami -Dade FL 33136 01-3125-048-0650 We received a legal description of the subject property and it can be found in the addenda section. The legal description of the property is assumed to be correct. We have not commissioned a survey, nor have we had one verified by legal counsel. Therefore, we suggest a title company, legal counsel, or other qualified expert verify this legal description before it is used for any purpose. CURRENT USE OF THE SUBJECT As of the date of the value opinion(s), the subject was being used as follows. For the purposes of this report, the subject is valued as follows. Current Use Appraised Use Multifamily development Multifamily development HISTORY OF THE SUBJECT We are not aware of any listings, real property transactions, or ownership transfers pertaining to the subject in the three years prior to the date of the value opinion, other than that which is reported here. The property was recently renovated by the owner and is subject to a rent regulatory agreement with the Omni Redevelopment District Community Redevelopment Agency which provided financing for the renovations. Below states the agreement's regulations. The execution c-rt' this Regulatory Agreement by the Borrower is in connootion with the Forgivable Loan Agreement and use of CRA Funds (the "Loan"), secured by certain loan documents to be executed in connection therewith (the "Loan Documents"), for the rehabilitation of a total of Six (6) residential apartment units. All six (6) of the units will be CRA-assisted units (the "CRA-Assisted Units") of that certain project located at 1851 NW 1st Court, Miami, Florida._ In accordance with the requirements set forth in (i) that certain Forgivable Loan Agreement executed of even date herewith by the Borrower and the CRA for the CRA funds (the "AKreement"), and (ii) the other Loan Documents of coven date therewith between the Borrower and the CRA, all six (6) units are considered "CRA-Assisted" and all of the CRA-.Assisted Units are subject to the restrictions provided herein_ The six (6) CRA-Assisted) Units shall be "fixed" units, meaning that they are specifically designated units_ All six (6) of the total six (6) Project units shall he, at any one time, in compliance with the CRA-Assisted requirements set forth herein rand in the Loan Documents, including but not limited to the Covenant on the property legally d cribed in Exhibit "A," attached hereto and incorporated herein_ The Project must at ail times (during the Affordability Period and subject to Existing Tenants) merintain the fallowing unit mix structure: two (2) two -bedroom must he rented at or below 80% area median income ("AND"), as determined by the 11.S. Department of Housing and Urban Development ("HUD"), with adjustments and certain exceptions as provided in 24 CFR Part 92 (the "Regulation"). (2) one- b!'L�■■ edroommust be rented at or below 60% AN1I and two (2) efficiencies must be rented at or below 40% ill (the "Unit -Mix"). JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 13 1851 NW lst Court 23-022-02 AREA ANALYSIS AREA MAP Hialeah F250S1 _MINOLA Miami Springs FLAGAMI- Google West Little River Gladeview Brownsville ALLAPLT`* AH LITTLE1411.VANA Little Gables Coral Gables El Portal North Bay Village MID -BEACH Miami Beach - sou-❑LACA Dodge island ;° • d ' Miami Fisher Island CORAL WAY ➢OWNTcvJ MIA/.11 Virginia Key Map data r2024 Google INTRODUCTION To evaluate the factors that influence a property's income potential over the projection term, we analyze economic indicators at the macro or citywide level and work down to the more specific micro or subject property level. The subject property is located in the City of Miami, within Miami -Dade County and the State of FL. Reference is made to the area map identifying the location of the subject property above. The following analysis includes an overview of the region, as well as historical and projected trends of income, population and employment for the subject's area. LOCATION The subject is located in Miami CCD, FL . Our regional, demographic, and economic analyses are based on data extracted from Site To Do Business/ESRI, U.S. Bureau of Labor Statistics, and the U.S. Census Bureau. This data has been extrapolated from various databases and are the most current available. The combined databases include various economic and demographic variables for the subject's respective area. The Site To Do Business/ESRI database includes population estimates, households, household income, home value, employment by industry and related data. This data is based on 2023 populations with projections through 2028. The U.S. Bureau of Labor Statistics provided area unemployment trends. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 14 1851 NW lst Court 23-022-0x AREA ANALYSIS POPULATION Population within Miami CCD, FL is currently indicated at 1,000,173 and is expecting an increase to 1,039,297 within five years, an increase of approximately 3.91% over the five-year period, or 0.78% per year. Comparatively, the national population is projected to increase annually by 0.30% over the same period. The current population is higher than the population indicated at the 2020 census, which was 981,627. Population at the previous census in 2010 was 908,805, indicating a long-term growth rate from 2010 to 2023 of 0.77% per year. 1,100,000 1,050,000 1,000,000 950,000 900,000 850,000 300,000 908,8Ofi• 2010 POPULATION 981,627 2020 1,000,173••• MEI 2023 _1439,297 Households are expected to follow a similar trend, with total households within Miami CCD, EL increasing from 397,430 in 2023 to 422,128 in 2028, with a current 2.47 persons per household. The national average household size in 2023 is 2.53. There were 338,276 households in 2010 and 384,252 households in 2020, indicating a long-term growth rate of 1.35% from 2010 to 2023. 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 a 338, 276 HOUSEHOLDS 384,252 397,430 422,128 1 2010 2020 2023 2028 (Est.) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 15 1851 NW 1st Court 23-022-02 AREA ANALYSIS The median age in Miami CCD, FL is currently indicated at 39.7 years, up from 2010, when the median age was 38.2 years. The population is expected to increase in 2028, with the median age projected as 40.6 years. The median age nationally in 2023 is 39.1. 41.0 40.5 40.0 39.5 39.0 38.5 38.2 38.0 37.5 37.0 36.5 2010 MEDIAN AGE 40.2 2020 2023 40.6 2028 (Est.) 12.90% 13.40% 13_90% 15.30% 2020 POPULATION BY AGE 12.20% 12.20% 5.60°% 2023 11.70% 12.2.0% 14.40% 13.70% 12.00 % 5.40% 5.20% .40% 2028 (Est.) • 85 + • 75 - 84 65-74 • 55 - 64 • 45-54 ■ 35 - 44 ■ 25-34 ■ 15-24 ■ 10-14 ■ 0-4 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 16 1851 NW 1st Court 23-022-02 AREA ANALYSIS POPULATION (25+) BY EDUCATION • Less than 9th Grade: 8.4% ■ 9th - 12th Grade, No Diploma: 6.8% • High School Graduate: 24.3% • GM/Alternative Credential: 2.8% ■ Some College, No Degree: 12.9% IQ Associate Degree: 9.0% Bachelor's Degree: 21,4% Graduate/Professional Degree: 14.4% INCOME Site To Do Business/ESRI reports current median household income at $54,617, which is forecasted to increase to $65,022 by 2028, an increase of 19.05%. Similarly, per capita income is expected to increase from its current level of $36,502 to $43,739 by 2028, an increase of 19.83%. In 2023, the national median household income is $72,603 and the national per capita income is $41,310. According to ESRI, Miami CCD, FL has a wealth index of 71, indicating less wealth when compared to the national average of 100. $120,000 $100,000 $ 80,000 $60,000 $40,000 $20, 000 $0 HOUSEHOLD INCOME $91,729 $54,617 2023 $107, 561 $65,022 2028 (Est.) ■ Median f Average JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 17 1851 NW lst Court 23-022-02 AREA ANALYSIS $46,000 $44,000 $42,000 $40,000 $38,000 $36,000 $34,000 $32,000 PER CAPITA INCOME 2023 $43,739 2028 (Est.) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 HOUSEHOLDS BY INCOME left 11,90% 10.8 0% 16.30% 12.00% 9.00% 5 14.60% 2023 14.20% 11.70% 16.10% 10.50% 7.80% 8.00% 12.70% 2028 (Est.) II $200,000+ $150,000 - $199,999 ■ $100,000 - $149,999 • $75,000 - $99,999 [ $50,000 - $74,999 • $35,000 - $49,999 ■ $25,000 - $34,999 4. $15,000 - $24,999 ■ <$15,000 HOUSING According to Site To Do Business/ESRI, there were approximately 390,570 housing units in Miami CCD, FL as of the 2010 census. That figure increased to 431,958 housing units as of the 2020 census. Current estimates indicate 448,308 housing units, an increase of 3.79% from the 2020 census. Housing units are forecasted to grow to 472,526 units in 2028, indicating a growth rate of 5.40% over the five-year period. Renter -occupied units comprise the majority of the housing stock in the area. Current estimates indicate that approximately 35.8% of total housing units are owner -occupied, with 52.9% of units occupied by renters. The balance of the units, 11.3%, are vacant. In 2028, the mix is expected to shift to 35.1% owner -occupied units and 54.2% renter -occupied units. Nationally in 2023, 58.50% are owner -occupied, 31.70% are occupied by renters, and 9.80% are vacant. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 18 1851 NW lst Court 23-022-02 AREA ANALYSIS The ESRI Housing Affordability index (HAI) has a base of 100, representing an area where median income is sufficient to qualify for a loan on a home valued at the median home price and not be cost -burdened, defined as spending more than 30 percent of income on housing -related costs. The higher the index is over 100, the more affordable the housing is in the area_ An index of helow 100 indicates housing is Tess affordahle and a typical resident cannot purchase a home in the area without being cost -burdened. Miami CCD, FL has a Housing Affordability Index of 53, indicating that the median income is not sufficient for a typical resident to purchase a median value home in the area. The national Housing Affordability Index in 2023 is 94, indicating Miami CCD, FL is less affordable than the national average. Assuming the national average effective mortgage rate from the Federal Housing Finance Agency (FHFA), a 30-year mortgage, and a 20% down payment, the typical resident in Miami CCD, FL spends 46.6% of their household income on mortgage payments. Nationally, the percent of income used for a mortgage is 25.60%. 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 OWNER OCCUPIED HOUSING UNITS BY VALUE 4.80% 7.70% 22.00% 5.90% 5.80% 4. l°I 2023 5.80% 8.90% 20.50% 5.10% 5.30% 4,40% 2028 (Est.) _' $2,000,000+ ■ $1,500,000- $1,999,999 • $1,000,000- $1,499,999 ■ $750,000 - 5999,999 Y $500,000 - $749,999 $400,000 - 5499,999 ■ $300,000 - $399,999 ■ 5250,000 - $299,999 • $200,000 - 5249,999 • $150,000 - $199,999 • $100,000 - $149,999 In 2023, the median home value is $423,567. It is expected to increase to $447,804 by 2028, indicating an annual home appreciation rate of 1.14%. The median home value nationally in 2023 is $308,943. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 19 1851 NW 1st Court 23-022-02 AREA ANALYSIS $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 HOME VALUE $530,963 $423,567 2023 $567,033 $447,804 2028 (Est.) • Median ■ Average EMPLOYMEN T Miami CCD, FL currently employs 637,973 workers according to Site To Do BusinessjESRI. The U.S. Bureau of Labor Statistics currently reports unemployment at 1.6%, as of December 2023, which is lower than the long-term average of 5.1% since January 2013. Unemployment peaked in May 2020 at 12.0%. Year to date, unemployment has averaged 1.8%, down from last year's 2.6% average. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1,0°/e 0.0% 7.6% UNEMPLOYMENT 4.8% 3.7% 8.4% 2.9% 5.6% 2.6% lllli 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YFo JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 20 1851 NW 1st Court 23-022-02 AREA ANALYSIS EMPLOYED POPULATION (16+) BY INDUSTRY 0.2% 3.4% 3.9% • Agriculture/Mining: 0.2° _ 2.1% 31 Construction: 8.8% • Manufacturing: 3.9% • Wholesale Trade: 2.1% • Retail Trade:10.0% • Transportation/Utilities: 9.2% • Information: 1.7% - Finance/Insurance/Real Estate: S.4% • Services: 52.2% • Public Administration: 3 4% EMPLOYED POPULATION (16+) BY OCCUPATION ■ White Collar: 58.3% El Management/Business/Financial: 18.4% ■ Professional: 19.3% ■ Sales: 10.4% • Administrative Support: 10.2% • Services: 21.0% • BiueCollar: 20.7% • Farming/Forestry/Fishing:0.1% EP Construction/Extraction: 6.5% • Installation/Maintenance/Repair: 2.5% • Production: 2.8% CONCLUSION An analysis of South Florida and more specifically, Miami -Dade County, demonstrates that the area has historically been on a path of growth. Many of the factors that led to Miami -Dade County's historical success remain in place. Therefore, the county will likely continue to grow. JDSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 21 1851 NW lst Court 23-022-02 NEIGHBORHOOD ANALYSIS Hialeah West Little River Ira EM OLn • E 254h `I Miami Springs saw Hwilmorw7 FLAGAM Google NEIGHBORHOOD MAP Gladeview Brownsville LIi7L�L suAVANA Little Gables a: I � Coral Gables CORAL jf1A% El Portal D�WN7C7ViN LiIM.II Miami INTRODUCTION North Bay Village G1.17 - Miami Beach €DU'•1 6LAC-I JooLT.,:io Dodge island . A Fisher Island Virginia Key Map data 02024 Goagde A property is an integral part of its surroundings and must not be treated as an entity separate and apart from its surroundings. The value of a property is not found exclusively in its physical characteristics; physical, economic, political and sociological forces in the area interact to give value to a property. In order to determine the degree of influence extended by these forces on a property, their past and probable future trends are analyzed. Therefore, in order to form an opinion of the value of a property, an analysis is made of the area in which the property under study is found. This area is referred to as a neighborhood. A neighborhood can be a portion of a city, a community or an entire town. It is usually an area which exhibits a fairly high degree of homogeneity as to use, tenancy and certain other characteristics. Homogeneity is a state of uniform structure or composition throughout. Therefore, in real estate terminology, a homogeneous neighborhood is one in which the property types and uses are similar. A neighborhood is more or less a unified area with somewhat definite boundaries. As a neighborhood's boundaries serve to limit the physical area that exerts germane influences on a property's value, the boundaries may indeed run concurrent with variations in prevailing land uses or physical characteristics. LOCATION The subject is located on the east side of NW 1st Court, south of NW 19th Street. The property is located in the City of Miami. The subject is in the City of Miami's Omni CRA neighborhood. The city of Miami formed the Omni Community Redevelopment Agency (Omni CRA) to carry out renovation and revitalization activities within the boundaries of the designated redevelopment area. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 22 1851 NW lst Court 23-022-02 NEIGHBORHOOD ANALYSIS The neighborhood's boundaries are NW 2nd Avenue to the west, NE 20th Terrace to the north, Interstate 395 to the south, and Biscayne Bay to the east. The prevailing land uses within this area are predominantly retail along primary roadways and single-family and multi -family rental apartment along secondary roadways. ACCESSIBILITY The subject's site primary frontage is along NW 1st Court. Nw lst Ct. is a north -south thoroughfare. Primary access to the property is via NW lst Ct., from NW 19th Street from the north and NW 18th Street from the south. 1-95, a 6-lane thoroughfare located near the subject, allows access to most parts of Miami - Dade County from the northeast to southeast direction. Located near of the subject is I-95(to the west) & US-1 (to the east), both major north —south Interstate Highways on the East Coast of the United States, Allowing access from most parts of Florida. Located South of the subject is 1-395, A west -east Highway. DEVELOPMENT There is a significant amount of new development occurring in the subject's neighborhood. The following map shows many of the developments taking place in the Omni neighborhood. Within the Market Analysis section of this report, we provided additional details associated with following developments occurring in the subject's neighborhood. N1v [aYt, yukanad durnal aims. NW 22 her Ea SiNIA C.! Q at1 r N20th Ter NW 26114 9th Ln L' 19th Tcr 14th 5r haYA .. in& -- NW T341t 5i'F HS 29rd 51 NE 2 I ;. NE 201h 1er NE-20th SI 1JE 191h Ter NE 19 Yh 9r NE 171h Tnr ��� 5 I go 0 C rNE 161 ., NE 15411 Tel 'Z heir n.+•w. NE 15111 e51 - kr., 6wnr .+.11,., ralain 51 n iNny 40[14.4h Sr N= 13ill Tar Z. al rblkr I NE 23rd S = NE 22nd Ter Falk Rork southflarida 0 0 0 Mixed -use Multifamily Hotel Retail Other Office Industrial JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 23 1851 NW 1st Court 23-02Z-02 NEIGHBORHOOD ANALYSIS I-395 Reconstruction/Enhancements The subject is located just north of the 1-395 highway. Enhancements along 1-395 are from the SR 836/1-95/1- 395 (Midtown} Interchange to the MacArthur Causeway, approximately 1.4 miles long. The project will completely reconstruct the existing facility and create a signature bridge that will span 1,025 feet over NE 2 Avenue and SR5/Biscayne Boulevard, redefining the Miami skyline with its six sweeping arches. The new raised portion of the highway will replace the current configuration that essentially "walls off the Omni neighborhood to the north and the Miami World Center neighborhood to the south. The project will create additional capacity on 1-395 with a total of three through lanes in each direction and provide separate connector ramps for traffic to and from 1-95. The existing 1-395 eastbound off -ramps at NE 2 Avenue will be moved west to North Miami Avenue, and the westbound on -ramps at NE 1 Avenue will be shifted to the west of North Miami Avenue. NW 2 Avenue will also be reconnected under 1-395, providing residents greater access. The centerpiece of this project is the signature bridge that is slated to change the City's skyline become an iconic symbol. The signature bridge and the adjoining structures will allow for the transformation of the area underneath to vibrant community spaces linked together by a contiguous trail for the enjoyment of Omni, Biscayne Boulevard, and Overtown residents, nearby communities, and visitors. The Department and City of Miami are partnering to refine the design of the community spaces underneath 1-395. The completion of the reconstruction is projected to occur in late 2027. The completion of the construction will unite the area surrounding the Adrian Arsht Center for the Performing Arts and the Knight Concert Hall, with the Miami Central Business District to the south. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 24 1851 NW lst Court 23-022-02 NEIGHBORHOOD ANALYSIS DEMOGRAPHICS The Site To Do Business is a service that provides demographic data, including historical, current and forecasted population estimates for a specified region. Patterns of development, density and migration are reflected in the population estimates. A survey of the subject area's population and growth rate is summarized in the following charts, followed by a map of the surveyed area. Summary Population Households Families Average Household Size Owner Occupied Housing Units Renter Occupied Housing Units Median Age Population by Age 0-4 5 9 10-14 15-19 20 - 24 25 - 34 35-44 45 - 54 55-64 65 - 74 75-84 85+ Households by Income <$15,000 $15,000 - $24,999 $75,00'] - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Median Household Income Average Household Income Per Capita Income 1 mile Demographics 2023 3 mile 5 mile 47,314 297,314 552,278 23,268 133,208 241,089 9,384 65,544 124,864 1.97 2.19 2.26 4,508 32,663 73,738 18,760 100,545 167,351 34.3 38.1 39.6 1 mile 5.9% 5.4% 4.9% 4.7% 8.1% 22.6% 16.8% 11.1% 9.3% 6.7% 3.2% 1.2% 1 mile 3 mile 5.3% 5.3% 5.1% 4.6% 6.2% 18.1% 15.9% 12.1% 11.1% 9.1% 5.3% 1.8% 3 mile 5 mile 5.1% 5.2% 5.1% 4.6% 5.8% 16.7% 15.3% 12.6% 11.8% 9.8% 5.8% 2.1% 5 mile 13.80% 17.50% 16.40% 7.10% 10.10% 10.50% 7.40% R.:50% R.60% 10.70% 10.80% 11.40% 17.40% 15.20% 15.60% 11.40% 10.00% 10.60% 17.00% 12.10% 11.50% 6.70% 6.60% 6.10% 8.40% 9.40% 9.30% $63,538 $53,864 $53,623 $95,039 $92,459 $91,842 $46,812 $41,453 $40,145 Source: Site To Do Business 2028 1 mile 3 mile 5 mile 62,739 328,653 584,913 31,883 151,667 260,922 13,287 73,929 134,649 1.92 2.13 2.22 5,133 34,643 76,801 26,750 117,024 184,121 34.2 38.7 40.3 1 mile 3 mile 5 mile 6.3% 5.4% 5.2% 5.2% 4.9% 4.9% 4.8% 4.9% 4.9% 4.9% 4.8% 4.9% 8.8% 7,0% 6.4% 21.4% 16.9% 15.3% 16.2% 15.6% 15.2% 11.5% 12.4% 12.7% 8.7% 10.6% 11.5% 6.9% 9.4% 10.2% 3.7% 5.9% 6.5% 1.4% 2.1% 2.4% 1mile Smile 5mile 11.20% 14.90% 14.20% 5.30% 7.90% 8.30% Finn% 7.40% 740% 9.60% 9.40% 9.90% 17.60% 15.20% 15.50% 12.40% 11.30% 11.70% 19.40% 14.30% 13.80% 9.00% 8.50% 8.20% 9.60% 11.10% 11.00% $75,597 $65,188 $64,313 $109,562 $108,458 $107,609 $55,671 $50,074 $48,058 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 25 1851 NW lst Court 23-022-02 NEIGHBORHOOD ANALYSIS Trends: 2023 - 2028 Annual Rate 1 mile Radius Area State National Population 5.81% 0.63% 0.30% Households 6.50% 0.77% 0.49% Families 7.20% C.74% 0.44% Owner HI -Is 2.63% 0.93% 0.66% Median Household Income 3.54% 3.34% 2.57% 3 mile Radius Area State National Population 2.02% 0.63% 0.30% Households 2.63% 0.77% 0.49% Families 2.44% 0.74% 0.44% Owner HI -Is 1.18% C.93% 0.66% Median Household Income 3.89% 3.34% 2.57% 5 mile Radius Area State National Population 1.15% C.63% 0.30% Households 1.59% 0.77% 0.49% Families 1.52% 0.74% 0.44% Owner HHs 0.82% 0.93% 0.66% Median Household Income 3.70% 3.34% 2.57% Source: Site To Do Business NEIGHBORHOOD/AREA COMPARISON Category 1 mile 3 mile 5 mile Area Median Household Income $63,538 $53,864 $53,623 $54,617 Average Household Income $95,039 $92,459 $91,842 $91,729 Per Capita Income $46,812 $41,453 $40,145 $36,502 Average Household Size 1.97 2.19 2.26 2.47 Median Age 34.3 38.1 39.6 39.7 JOSEPH J. BLADE AND ASSOCIATES. INC. REAL. ESTATE VALUATION AND CGNSULTIND 26 1851 NW 1st Court 23-022-02 NEIGHBORHOOD ANALYSIS LIFE CYCLE A neighborhood's life cycle usually consists of four stages: • Growth - a period during which the neighborhood gains public favor and acceptance • Stability - a period of equilibrium without marked gains or losses • Decline - a period of diminishing demand • Revitalization - a period of renewal, redevelopment, modernization, and increasing demand Source: The Appraisal of Real Estate, 15th Edition From a general examination, it appears that the neighborhood is in the revitalization stage. The factors that have led to the neighborhood's revitalization remain in place. These factors will be considered in the subject's valuation. NEIGHBORHOOD ANALYSIS CONCLUSION With the re -gentrification of the neighborhoods to the north and south of the subject, as well as the redevelopment of some of the underutilized property in the area, we are of the opinion that the subject neighborhood is in the revitalization stage, a period of renewal, modernization, and increasing demand. The subject benefits from the access to Biscayne Boulevard, the primary north -south thoroughfare through the eastern side of Miami -Dade County, proximity to the Miami CBD and a location near Miami's Wynwood, Midtown and Design District neighborhoods located to the north. Edgewater, to the northeast of the subject, has experienced explosive residential development over the past five to ten years, as has the Miami CBD, located on the south side of 1-395. All the noted factors will be considered in the valuation of the subject. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 27 1851 NW 1st Court 23-022-02 MARKET ANALYSIS MARKET ANALYSIS The following information was compiled from published sources and is used in conjunction with primary and secondary data to analyze the market trends impacting the value of the subject property. NATIONAL APARTMENT MARKET - PWC According to the PwC Real Estate investor Survey, 4th Quarter 2023 (based on data collected in 3rd Quarter 2023): Investors have varied views on leasing activity over the past three months but the majority believe it has slowed a bit. Compared to this time last year, most investors see fewer buying opportunities but they do expect the bid -ask pricing gap to tighten in the near term. One investor's goal for 2024 is to "find growth in the face of declining fundamentals and try to capitalize on the pricing advantage." • Despite another quarterly increase in its average overall cap rate to 5.59%, the majority of investors in the national apartment market anticipate further cap rate increases over the next six months. The average expected increase is 60 basis points. • Investors' expectation for property value appreciation in the coming year ranges from -25.0% to 3.0% for this market. The average forecast value change of -3.9% is less than the composite average of -6.5% for the ten national markets surveyed. + One year ago, most investors viewed conditions in this market as neutral --equally favoring buyers and sellers. This quarter, only 40.0% see it as neutral, 40.0% believe conditions favor buyers, and the remainder think sellers hold the advantage. FORECAST VALUE CHANGE [NEXT 12 MONTHSJ: Range: (25.0%) — 3.0% Average: (3.9%) Key Survey Stats National Apartment Market Fourth quarter 2023 Current Quarter Last Quarter Total Vacancy Assumption Average 1.0%-12.0% 5.6% 1.0%-12.0% 5.2% Months of Free Rent (1-yr lease) 0-4 0-4 Average 1.3 1.3 %ofparticipantsusing 57.1% 50.0% Market Conditions Favor Buyers 40.0% 50.0% Sellers 20.0% 17.0% Neither 40.0% 33.0% Source: PwC Real Estate Investor Survey, 4th Quarter 2023 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 28 1851 NW 1st Court 23-022-02 MARKET ANALYSIS National Market Yield Rates for Real Estate Investments National Apartment Market Fourth Quarter 2023 Current Quarter Last Quarter Year Ago Discount Rate (I RR) Average 6.005/0-8.00% 7.00% 5.75%-8.00% 6.77% 4.75%-10.00% 6.86% ❑venal I Cap Rate (OAR) 4.00%8.00% 3.75%-8.00% 3.25%8.00% Average 5.59% 5.28% 4.89% Residual Cap Rate 425%-8.00% 4.00%fl-8.00% 4.00%-8.00% Average 5.91% 5.67% 5.28% Market Rent Change Rate O.00% -5,00% 2.00%-4.00% O.00%-10.00% Average 2.93% 3.00% 3.89% Expense Change Rate Average Marketing Time Range Average 3.00%-8.00% 3.93% 2-15 months 6.3 3.00%-6.00% 3.50% 2-12 months 6.0 0.00%--8.00% 3.42% 1-12 months 4.6 Source: RwC Real Estate investor Survey, 4th Quarter 2023 JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 29 1851 NW 1st Court 23-022-02 MARKET ANALYSIS MIAMI APARTMENT MARKET ANALYSIS According to the CoStar multifamily market analysis from February of 2024, Miami's multifamily demand growth has remained tepid over the last year relative to recent elevated levels, with annual apartment absorption growing by 5,300 units through the first quarter of 2024, trending below the five-year annual average of 6,500 units. After five years of strong demand growth outperformance relative to the U.S. average between 2018-2021, demand decelerated through the second half of 2022 and reverted back to pre - pandemic norms in 2023. Affordability concerns, along with a shrinking population and an elevated supply pipeline weigh on multifamily fundamentals in the near term, with annual rent gains slowing to 1.7% from a high of 3.7% a year ago. Slowing demand comes at a time when developers are set to deliver elevated levels of new apartments. Despite starts slowing to 8,400 units in 2023, 2022 set a record with 16,000 units underway, after an already elevated level in 2021 totaling 12,000 units. 70% of units underway are set to deliver over the next couple of years, with 2023 deliveries totaling 6,400 units, in -line with the five-year historical average of 6,800 units. Deliveries are set to rise higher in 2024, totaling 9,400 units, a record for the market. That said, renter demand from new, higher income residents, and those priced out of the single-family market will help buoy demand, allowing the overall apartment vacancy rate to remain below the U.S. average through 2024. Continued inventory growth in luxury apartments through 2025 will place downward pressure on rent growth as vacancies expand for this market segment. By the end of 2024, 4 & 5 Star unstabilized vacancies are expected to rise to 9%, while 1 to 3 Star vacancies are set to remain below 5%. The Downtown Miami Submarket, which is home to 40% of new construction activity, is facing the bulk of supply pressure and is forecast to see unstabilized vacancies rise to 10% for 4- & 5-Star product through the end of 2024. The rise in luxury apartment deliveries is leading to a slowdown in new apartment lease -up and rent gains while demand normalizes. This is leading managers to offer increased concessions in order to compete for a smaller demand pool, with several newly delivered properties offering up to two months of free rent, softening luxury rent gains. Although 4- & 5-Star demand growth slowed to 8% annually in the second half of 2023, well below the five- year average annual growth of 14%, long term trends continue to highlight a growing renter preference towards newer luxury units. 90% of demand growth over the last decade has been concentrated in 4- & 5- Star units, even though this market segment rents at a more than 35% premium over 3 Star units. On the other hand, lower income households will continue to struggle to find affordable housing as less than 10% of units' underway fall within the 1 & 2 Star and 3 Star segments. Sales volume over the last 12 months totaled $1.5 billion, below the five-year historical average of $2.3 billion. Activity is now moderating from record levels in 2021 and 2022 totaling $4 billion each year. Still, over a longer time horizon, annual sales volume has remained in -line with the ten-year average of $1.7 billion. These trends are indicative of transaction activity which is returning to historical norms after an unprecedented boom in 2021 and 2022. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 30 1851 NW 1st Court 23-022-02 MARKET ANALYSIS KEY INDICATORS Crrlane Ousraer 4s 5 star 3 rite I & 2 5iar Maack Urdr Vacancy Rale Asking Rs,$ Effective Meet 71,541 8.0% $2.85+3 52,825 • 35,951 4.1% 32.082 52.073 79,712 3.2% 51,447 51,441 187404 L2% SEAT $2.201 Fevecast Avanigo '.'ecercci Change (YOY) 02% 5.2% 5.3% 6.2% 2020 02 2 9% 2022 01 Ailmte I ow Units 5,297 2,570 5.148 14,218 2921 0,3 ;1 496i 2130702 Deivered Unlls 6,192 2,989 6,269 8,917 2919 02 48 2002 04 De[rdetterl Unix. 167 260 312 1,171 2012 02 ❑ 21302 04 Asking Rent Growth (YOY) 1.7% 2.6% 2.8% 16.99E 2022 01 e• Cr', 21309 02 Efledree Ren1 Growth (YOY) 1.5% 2.7% 2 8 :b 19.1 % 2022 01 c• D' : 21309 02 Sales Valemre S1.38 $992211.4 NA S5.48 2022 02 $143.91A 2129804 Aketarplion 555 fib 814 Qarrercd Urr . 224 60 n 2a1 UnderCanitr Was 25.621 2.83a 0 213,45E Vacancy Demand saw a healthy rebound in the second half 2023, totaling over 4,900 units absorbed for the year. Still, this has slowed from peak demand levels seen in 2021 totaling over 13,000 units absorbed. Demand begun to slow since 2022, returning to long-term norms of 5,100 units of average annual net absorption over the last ten years. Slowing immigration and job growth, which are coming off elevated levels, are resulting in a general downtick in demand, which for now appears to be reverting to pre -pandemic levels after booming in 2021. Economic headwinds, which will continue to weigh on household formation, will likely have a dampening effect on demand growth in the near future. In fact, after outperforming the U.S. average in terms of population growth from 2009 to 2017, growth decelerated in 2018 and has actually turned negative since 2020, as lower income residents began exiting the market for more affordable areas in central and northern Florida as well as out-of-state. Additionally, vacancies are expected to continue to rise as supply additions are expected to outpace demand over the next few years. Vacancies have so far increased from historic lows of 2.9% in early 2022 to 5.2% as of the first quarter of 2024, still these remain below the U.S. average vacancy rate of 7.7%. As supply pressures are limited to higher -quality properties in lease up, most of the recent and looming vacancy expansion is expected to impact the luxury market segment, In fact, 4- & 5-Star vacancies have expanded the fastest so far, rising from a low of 4.3% in early 2022 to 8.0% as of the first quarter of 2024. Submarkets with significant 4- & 5-Star supply pipelines, such as Aventura, Coconut Grove, Downtown Miami, and North Miami Beach, are expected to see a significant rise in unstabilized vacancies in the near -term. Still, all submarkets, with the exception of Coral Gables and Westchester/Tamiami, which have muted construction activity, are expected to see higher luxury vacancy rates over the next three years. Downtown Miami, which represents over 40% of Miami's under construction activity, is expected to see luxury vacancies rise as high as 10% by the end of 2024, with supply additions expected to continue to impact the submarket well into 2026. The second -highest submarket in terms of units underway is Homestead/south Dade, which only represents around 9% of construction activity, and is expected to see 4- & 5-Star vacancies rise to over 13% by 2025, Despite having the largest supply pipeline across all Florida markets, Miami's multifamily vacancy rate is the third lowest in the state, and rent gains remain higher relative to similar sized markets such as Fort Lauderdale, Tampa, Orlando, Jacksonville, and Palm Beach. Miami is also expected to maintain tighter vacancies compared to these markets, largely driven by tight vacancies in 1 to 3 Star product, resulting in rent growth outperformance over the two-year forecast period. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 31 1851 NW lst Court 23-022-02 MARKET ANALYSIS ABSORPTION. NET DEL/EMS 3 VACANCY 8.000 ? 000 6 000 5 000 4 000 3 ,000 2 000 1 000 0 Forecast k 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 AosonD ,c �- * Ne! tDe+: ver • Veeanc- unnee State$ Vacancy Rental Rates After a year of unsustainable double-digit rent hikes, asking rent growth has slowed to 1.7% in the first quarter of 2024, well below 2022 rent growth of aver 7% and below the five-year historical average growth of 5.5%. Still, rent growth continues to surpass national average gains of 0.5%. Significant rent outperformance in 2021 and 2022 has resulted in a widening rent premium relative to U.S. average asking rents from around 25% in 2020 to aver 35% today. 4- & 5-Star units drove this outperformance with rent gains exceeding 1 & 2- and 3-Star units, after underperforming from 2014 to 2020. But since the third quarter of 2022, 1 to 3 Star rent gains began outperforming once again, now growing at 4.3% and 3.3% annually for 1 & 2 Star and 3 Star units respectively, versus 0.6% gains for 4- & 5-star properties as of the first quarter of 2024. Despite a recovery in real wage growth since 2021, the average median income in Miami remains 13% lower than the national average. Recent steep increases in apartment rents, almost doubling the U.S. average in 2022, coupled with an increasingly limited workforce inventory, continue to pose challenges for the majority of apartment renters. Miami's high employment concentration in the leisure and hospitality and trade, transportation, and utilities sectors will continue to drive this widening disparity between incomes and rent levels. Going forward, outsized job gains within the recovering leisure and hospitality segment, will further limit rent growth outperformance towards more affordable units. Around 80% of renter households in South Florida make less than $80,000/year while most higher income households prefer to own a home. This stands in stark contrast with new apartment inventory which is concentrated in luxury rentals with asking rents well above what the typical renter can afford. The mismatch between new apartments and the renter demand pool will continue to result in higher concessions and slower occupancy gains as new supply delivers in 2024. Additionally, this mismatch between affordable housing supply and demand is expected to lead to rent growth outperformance for 1 & 2- and 3-Star units through the near -term forecast. Submarkets with lower asking rents such as Hialeah/Miami Lakes, Miami Gardens/Opa Locka, Kendall, Westchester/Tamiami, and North Beach have witnessed strong annual rent gains in the last few quarters as renters continue to seek more affordable geographies. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 32 1851 NW 1st Court 23-022-02 MARKET ANALYSIS Concessions have begun to rise as the over 6,400 units that delivered in 2023 and the 9,400 units expected to deliver in 2024 continue to expand 4- & 5-Star apartment vacancies. A slowing economic environment, specifically for the higher earning finance and technology sectors will further weigh on luxury demand and rental gains_ That said, PlevatPd home values and mortgage rates will limit homeownership PVPn for higher income earners, helping the area retain a higher share of renters across all star ratings. MARKET RENT PER UNIT & RENT GROWTH 53,000 32,800 $22,600 S2,400 52,200 32,000 31,800 51,600 51,400 $ 1,200 2018 2019 2020 2021 2022 2023 2024 2025 206E 2027 • Mi i Rent Csronsft YN ■ Market Rent Per Una ■ Effective Rentrec Unit United Steers Market Rent Per IJnrI MARKET RENT PER UN CT BY BEDROOM $3400 S3,200 53,000 52,800 S 2,600 S2,400 $2,200 52,000 51.800 S 1,600 51,400 51,200 I} 2018 1 1 2019 2020 2021 • Studio • 1 Bed • 2 Bea 3 Bed 2022 e 2023 JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 33 1851 NW 1st Court 23-022-02 MARKET ANALYSIS 3 STAR EXPENSES PER SE (ANNUAL) Operating expenses Ca staf Esponnlhlrss II�lse f Clam. Yprr. Adman. Payroll Wear Masan lath lawmen Tams. Appliance SellWar of Other total them& $0.54 S0.57 $0.33 50.44 $0.66 S0.81 $0.64 51.41 S0.09 $0.14 5tJ f i $6.42 Aventura 50.60 50.63 5040 S0.42 50.64 50.80 50.86 51.55 S0.10 50.19 SO 83 57.ii Cachrtit Grave $0.56 $0.51 50.32 $0.42 S0.71 S0.77 $0.68 51.52 $0.09 $0.15 $0.81 $6.53 Corsi Games $0.52 $0.50 10.32 50.42 $0.70 S0.76 50.61 51.47 $0.09 $0.13 50_75 $6.27 Downtown Miami 50.59 5044 S0.36 50.39 50.73 S0.23 50.66 51.65 50.09 $0.15 50.79 $6.06 HiaieahlMterni Lakes $0.53 S0.50 50.32 50.42 $0.70 50.77 50.63 51.48 $0.09 $0.14 $0.77 $6.35 HnmesteamSouth 0... $0.48 $0_82 $0.34 50.37 $0.57 $1.70 S0.59 51.07 $0-09 50.15 50.81 $6.88 Kenclak S0.53 50.95 50.35 $0.32 50.54 $1.59 50.65 51-30 50.09 50.15 5081 57,28 Little Kavana $0.56 $0_48 50.33 SO. as $0.60 $0.36 50.68 51.55 50.09 S0.15 50.81 $6.011 Miami dlxdenarOpla...l $0.53 $0..59 S0.32 S0.41 $0.63 S0.74 $0.63 S1.46 50.00 $0.14 50.76 $6.32 Miami SpringetDoral 50.51.*i $0.52 $0.35 $0.42 $0.71 $0.77 $0.66 S1.55 $0.09 $0.15 $0.78 56.58 WI -Beach SOS/ SO.60 80.32 $0.41 $0,70 S0.76 50.60 51.46 30-08 50.13 50.73 $6.38:„ North Beach 50.51 $1613 S0.32 S1141 $0_70 S0.76 3O.59 S 1.46 $0.118 $0-13 S0.72 $6.18 North Mimi Beach $0.53 S0.61 $0.32 $0.42 50.62 50.76 50.62 S1.47 50.09 $0.14 50.75 56.33 Outlyk g Nharn-Dad... $0.47 S0_82 50.32 S0.37 50,S6 51.70 S0.68 51.03 $0-09 50.1 S 50.81 $6.80 South Reach $0.53 $3_60 S0.32 S0.42 $0.70 S0.77 50.63 S1.48 $0_09 $0.14 S0_76 $6.34 Weslcfreslerframastnt $0.55 50.51 j $0.32 S0.42 $0.71 $0.77 50.68 51.52 50.09 S0.15 S081 56.53 Expenses are est/cr owd users; NCREVF. ISfall, and Co51r damsel' Ile na marmq bazaar goe4replca1 defrYrn barn Ap Cale to naglm. Construction Higher financing costs and a slowing economic environment are beginning to impact development with construction starts receding in 2023, after peaking in late 2022. Still, annual starts for 2023 totaled over 8,400 units, above pre -pandemic figures averaging over 6,600 units from 2015 through 2019. A pandemic amplified surge in demand has emboldened apartment developers in the Miami area over the last three years. 2021 starts of over 12,000 units almost doubled the historical annual average and 2022 starts rose even further, reaching a record of over 15,900 units. The vast majority of starts remain underway, with under construction units totaling over 28,000, representing the largest supply pipeline in all of Florida and the ninth largest in the country. Deliveries are expected to reach a historical record level in 2024, totaling over 9,500 units, with a further 8,700 units expected by 2026. Supply underway represents around 15.2% of existing inventory with over 90% set to deliver as 4- & 5-Star luxury units. Over 65% of units underway are concentrated in the area between 1-95 and the Atlantic Ocean, with the majority, over 40%, located between downtown Miami and the reinvigorated Wynwood area. Following national trends, new development is occurring in areas with a significant and growing share of neighborhood amenities, which include proximity to beach access and new or updated retail establishments. Employment gains are set to drive household formation and income growth over the coming years, resulting in a continued rise in housing demand, though these have slowed over the last year. Slower demand and an increase in competitive supply delivering in close proximity is resulting in longer lease -up periods along with increased concessions. These incentives will likely have to remain in place well into 2026 as new deliveries begin to wane thereafter. Still, homeownership has been impacted by higher insurance premiums, rising maintenance costs in older condo properties and a pandemic induced surge in home values, making renting more attractive. The limited construction of single-family housing across South Florida, coupled with elevated mortgage rates further impact home affordability, helping drive housing demand towards new luxury apartments and garden style rental developments, JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 34 1851 NW 1st Court 23-022-02 MARKET ANALYSIS Going forward, construction starts should continue to slow as higher financing costs weigh on development activity. Additionally, elevated land costs and expenses, specifically for insurance, are impacting investment decisions. In fact, insurance costs per unit have risen over 3x, from around $900/unit a few years ago to over $1,0(]0/linit tnday DELIVERIES 8 DEMOLITIONS Forecast 4,000 3.000 2,00a ,ON 1.cIoa ' 1 I , 1 1 11 1"' 4 I ' I 2013 2019 2020 2021 2022 2023 2024 2025 2026 2027 Deltvsnes ■ Cicmoasti€ s 11 Net Dellverles UNDER CONSTRUCTION PropertyNmmAddmu 1 2 3 4 5 The Rrwar District AparL.- 401 SW 3rd Ave CentraClty 382S NW 71h St 1 Southside Park • Apart.. 1105-1133 SW 2nd Ave Emerald Bay 4030 W $B81 SI Link al Douglas Apartme., Douglas Rd 3089-3850 Biscayne Bivd Atlantic Swims 152 NW 811 St hong tlnita 51ona !art Common * * * * 1,600 54 Nov 2022 Nov 2024 * * * * 1.200 8 Aug 2022 Aug 2024 1.175 54 C1c1.2021 Eleveh mh4Mno+ The Crielnt Group The Creint Group Terra Group Apr 2024 IDS Development Group JDS Development Group * * * 917 5 May 2022 Jun 2024 * * * * )ti 854 843 616 37 Jan 2021 10 Jan 2024 36 .Ears 2023 Dec 2024 Jan 2026 Apr 2025 Gonzalez & Sons £qulprrent Inc Adler Prcperttes CrescentlieFanl5 t..rescent Heis7r]1s Ahantrc ! Peafic Management City e111+karnr JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 35 1851 NW 1st Court 23-022-02 MARKET ANALYSIS 40 11 12 13 14 15 16 17 11 18 20 21 UNDER CONSTRUCTION Propsly i4s alAdrbrs Fears Modem Towers 8 607 0 25850 SW 140th Ct 9 NEMA Miami 29900 Biscayne Blvd Mlam World tower 100NE1s1Me The Melro Parc Apartme... 455E 25111 51 Paramount Miami World.._ 1001 NE 1s1 51 1635 NE Miami Ct The Wynwood Pfau 95 NW 291h Si the Gallery at West Ont... 201 SIN 10Ch St NEXUS Riverside 230 SW 3rd Si Madera Riverside 230Third Si 2000 Biscayne BNd 2000 Biscayne Blvd Madera Aventur3 2681 NE t91st St Seventh Street Apartme 69? N Miami Ave C aoba Miami Worldce rite .. 698 NE tsl Ave ?lean Tourer- Condos 22 SSE N Miami Ave 23 24 25 26 27 Lekseal CltyPiace 5401 NW 34th Ter Soleste on the Bay 16375 Biscayne Blvd 26399 S Dixie Hwy Aura north Miami Beach 16955-17071 West Dine... Residence 23 2201 NE 2nd St Gardens Residences 20 1155 NE 126th St �*.** ***** 588 * * * * * * ** * • * * * ****!► * * * * i * ***�1 * ***4r 575 420 413 399 391 383 314 373 ** *** 360 * * * * * 168 Sep 2020 Mar 2024 39 May 2022 Jul 2024 53 Mar 2022 Apr 2024 v 2321 Jan 2025 T6 8 28 15 36 9 Dec 2023 Jul 2022 Mar 2023 Sep 2022 Aug 2022 Jan 2021 Dec 2021 Apr 2023 Mar 2022 Dec 2025 Jul 2024 Apr 2025 MFay 2025 Oct 2024 Aug 2024 Mar 2024 Aug 2025 Nov 2025 Jan 2023 Jun 2024 Sep 2022 Sep 2025 Dec 2022 Feb 2023 May 2025 Jul 2023 Dec 2024 Aug 2022 Jun 2024 Mar 2023 Jun 2024 Jul 2022 Jun 2024 b.wiopoU0rrn.r HP Realty Services. LLC HP Realty Senncee. LLC Crescent Heights Gresoenl Heights Lalezarsan Ptoperttes Lalezanan Properltes MG Developer MSarni MG Developer ML-rami Fiteld Companies Frheld Cornpanies J. Mitten & Assocaates J. Milian & Associates L&L Holding Company. LLC L&L Holding Company, LLC Rented Development, LLC Related Development LLC Adler Properties Creak Re srdentsal MY' Creek Residential Trust LLC LIR Creek Residential Ruddier Comes Kusrncr Cormparres Mr Creek Resrdental Mil Creak. Residential Falcone Group Faieone Group Dkan Group Dkan Group Jun 2024 Suffolk Constriction Estate imieelrnents Group Estate Investments Group Edivcai International Reality Eclivsai international Reality. T! n is Residential Group Tnnsrc Residential Group Trrogy Real Estate Group Omega Real Estate hlanagernent On-.ega Real Estate Management Sales Transaction activity reverted back to pre -pandemic norms in 2023, totaling $1.6 billion for the year, as higher interest rates and slowing economic growth impacted investment activity. Despite this, volume remained in - line with longer term trends averaging $1.7 billion annually over the past 10 years. Since 2020, strong tenant demand, resulting in significant rent gains, has attracted outsized investor interest to Miami. Double-digit pricing growth in 2021 and 2022 has underscored investor appetite for multifamily in the area, though higher interest rates, softer rent gains and higher costs, particularly for insurance, are now slowing pricing gains and activity. Over the past few years, transactions of over $100 million have reached double digits, with over 13 trades in 2021 and 12 trades in 2022 surpassing this figure. This was up from an average of around two of these JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 36 1851 NW lst Court 23-022-02 MARKET ANALYSIS transactions a year from 2015 to 2020. In the last couple of years, seven transactions have exceeded $200 million, an unprecedented occurrence before 2021, though 2023 saw one transaction at over $270 million and only two transactions of over $100 million. These trades have been concentrated in large 4- & 5-Star apartment complexes that have heen built nr renovated in the last eight years. Four of these trades occurred in the downtown Miami, Wynwood and Miami Beach areas, and one each in Coral Gables, South Miami, and Doral. Due to their location and age, these assets have traded at a premium of over $550,000/unit on average, well above average pricing for 4- & 5-Star assets of just over $400,000/unit over the past four quarters. Virtually all trade activity for deals above $100 million have involved institutional and private equity players, with public and private REIT buyers making up an increasing share since 2021. Three large trades for over $100 million occurred in 2023, two have been concentrated in newly built luxury properties which were more than 70% occupied at sale. The largest trade was for the 2022-built Casero Apartments which was purchased by Stockbridge Capital Group from Trammell Crow Residential in September. The 4-Star, 356-unit property located in Doral, sold for $156 million or over $438,000/unit. Large trades continued into the fourth quarter of 2023 with 29 WYN which was purchased by Berkshire from the Related Group in October. The 4-Star, 248-unit property located in Wynwood, sold for $135 million or over $544,000/unit. The property was completed in June of 2023. An exception to the rule was the purchased of the renovated Southgate Towers by Apartment Income REIT for around $270 million at more than $547,000/unit. The over 490-unit 4 Star property, at 900 West Ave. in Miami Beach, is a prime example of the strong pricing that even well located and well -maintained older assets can achieve. Despite continued investor interest, an interest driven rise in cap rates and softening fundamentals is impacting pricing. Transaction cap rates rose significantly in the second half of 2023, from lows in the mid- 4% to 5% range in 2022 to the mid 6% range. Still, institutional investors have remained a significant share of buyer activity over the last year. Going forward, tight financial conditions will continue to result in slower transaction activity relative to the boom in 2021 and 2022. Additionally, pricing growth will remain muted as softening rent growth and higher costs, specifically for insurance, impacts value creation. SALES VOL LINE A MARKET SALE PRICE PER LIMIT $360.000 $340,000 $320.000 5300.000 $280, 000 $260,000 5240,000 5220.000 $200.000 $180.000 5160,000 Forecast 20te 2019 2020 2021 2022 2023 2024 2025 2026 2027 ■ Sakti Vt+tume • Karr„ P'n:eIrnd ■ United States P, e+ue+4 52 00 51.80 5t 60 $1 40 S t 20 5100 50.80 $0.60 50.40 $0 20 SO 00 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 37 1851 NW 1st Court 23-022-02 MARKET ANALYSIS MARKET CAP RATE 7 0% 6.5% 6.0% 5.5% 5.0% 45% 4 0% Forecast 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 • Miami 3 Star A Went 4-5 Star M Kam, United States Submarket The subject is located in the Downtown Miami submarket. Sk1BMARKETINVENTORY Owen Eery 12 Month 6olMunrs nudist Conahrotrl®n Ida_ collimation 91Aps that 14 Market Om* Drips Urns PmasnE Rank aklps Dias Prowl Rids 1 Auaniura 11 2,436 1.3-•, 14 0 (3 0%6 5 1,338 54.9% 7 2 Coconut Grove 111 2.536 1.4% 13 2 5493 23.4% 3 1 46 1.8% 14 3 Coral Gables 337 10.051 5.4% 9 3 539 S_4% 4 5 1.794 17_ % 5 4 Downtown Warr" 540 29.441 I5.7% 1 4 1.292 4.4% 1 28 12.649 43_0%6 1 5 Hialeah/Malni Lakes 723 21.135 11.3% 2 2 419 2.0%b 6 8 1,105 5.2% 8 6 Hornestead/South Dade 222 11,7(10 6.Z4 !i 6 511 4.4% 5 10 2,520 21 S% 2 .4._ 7 Krndall _ 91 16.000 8.6%. 7 1 296 1.9% 10 2 426 2.7% 11i 8 V the Havana 1,343 16.20? 8- 7% i 6 -3 300 111%1, 9 _4 869 5.3% _ 10 y l.t,am. Gardens/Opa-Lodca 556 19.341 q� 10.3%4 1 4 3 165 0.9%. 12 8 1,787 9.2% 8 10 M am. Sprurg;WDoral 335 20.202 110.8% I 3T0 14 0.1% 14 �5 2.148 10.6% 4� 1 - 11 P.11 earn 43 684 ti 3% 16 -0 0 0% - 1 178 30_.% 12 12 Norh 9each 473 7,041 J 3.8% 11 121 16 0.2% 13 0 0 0% 13 Norlh Memo Beach 751 18.440 9.8% 5 1 367 2.0% 7 10 2.423 132%5 fd Oultymvq Mieml-Clertee Oa- 6 2.099 1.1%i 15 4 1.193 58_8% 2 2 1,017 4t1 96 9 _15 Mob Beach 364 7.207 3.8% 10 1 179 2.5%6 11 2= 151 2.1% 13 16 We tcheslerfTmllfen1i 42 2,967 1.6% 12 1 314 10.6% 8 0 0 096 - JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 38 1851 NW 1st Court 23-022-02 MARKET ANALYSIS SUBMARKET RENT Ming Rine Ettscdre Rants No- WWI Per troll Per Sts Dm* Itr.tireerlb Per UWt Pr ttP Rink YL 121owhh Cancusoon Rank 1 Avenalra $2,785 5263 5 3.7% $2778 $2.62 5 5.7% 0.3% It' 2 Coconut Gmve 52.414 $301 4 _089fr $2 353 52.33 4 1 6b1 - 2 N96 1 3 Coral Gables. $2.888 $337 2 -0.9% 32.852 $3.33 2 -1.6% 1.3% 3 4 Down...own Miami $2,931 I $324 3 r-0% s2.910 S3.22 3 0,0% 0.716 7 5 Hlalee_NTAtami Lakes $1,959 32.27 15 3A16 51.940 52.24 15 29% 1.0% 5 al 6 HorneeedWSutAh Dade $1,890 5207 16 1.91E 51.883 $2.06 16 2.2% ' -- 0.416 14 T Kendall $2,292 3251 6 2.7% $2,276 $2.49 8 2.7% 0.716 8 8 Lillie Havana 51.818 $242 11 2.1 % 51.804 $2.40 11 1,7% 0.8% 6 9 Miami C,ardens l7pa-Lcoka $1,9 id $2 31 13 ;-01i , 51.904 52.30 13 4,�1% 0.5% 11 10 : M+aml Spralgs7ikaral 52,473 $263 6 06% I $2.480 $2.62 6 0.5% 0.5% 13 11 Mid -Beach' $1,906 $239 12-1.4r1i $1,094 52.37 12 -1.4% 0.6% 10 12 North teach 51.727 i246 10 1.7% 51.718 52.45 9 2.2% 0.5% 12 13 NorthMorn Beach 32,079 $2.51 7 rA% 52089 $2.50 7 1.3% _0.616 9 14 Outlying MIami-Cede Co-_ $2.5 0 $2_28 14 -1.Od6 1 i0 [ $2.25 14 -2.016 1.1% f West 4 15 South Beech 52.819 $343tin 0.8% $i2,E00 i $3.41 Gag 0.89E 0.496 15 16 ester{Tamlarnl $1.858 $2.48 9 4.1% 11,$22 52.43 10 2.29E 2.0% 2 SUBMARICET VACANCY 8 ABSORPTION Nit Isileserl 1 Aventura Vacancy 2 Coconut Greve 424 3 Corel Gables Y 555 4 Downtown Miami 5 HialearAtiaml Lakes 461 6 He neslesdlSoulh Dade MS 8 1m Atlearpilen Units Rank units % nt Inv Fes* thoestlrrs_4WD 65 2-716 2 36 1516 11 TS 215 8.516 9 2.4 9 591 5.916 A --0.5 1 0 1.433 4.916 1 0.6 1 468 2.216 5 0.1 7 543 7_16 2 0.4 8 269 1.716 8 1.1 3 348 2.1 % 7 0.8 5916 11 j101j 1 0% 16 965 A.6% 6 1481 -i 2% 14 48 6.2% 13 (8} -1.0% 13 471 6.7% 12 157} 0 8% - 15 865 4_7% 5 364 2 0% _ 8 1.0 514 24.51E 16 824 39.316 3 1.1 helm n1 Kendall Li Lae F1BVana 9 MIaml GardeesiOpe-Locka 10 Mcaml SpmgaiTioral 11 Mid -Beach 12 North Beach 13 North Mahn Beach -- 14 Outlying Mleml-Dade Co... 15 South Beath 881 483 1,145 2 216 5.4% 5.5% 3.0% 259 3.616 4 156 2.216 10 1.1 16 iNeenhester/Tamleliv 290 9.816 14 35 1216 12 0.0 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 39 1851 NW 1st Court 23-022-02 MARKET ANALYSIS Downtown Miami Multi -Family Submarket Downtown Miami continues to be the target of investor and developer interest, making up over 15% of Miami's annual transaction volume and over 50% of under construction units as of the third quarter of 2023. The submarket has the highest share of apartment inventory in Miami, making up over 15% of the metro's product, and encompasses some of the most iconic neighborhoods including Brickell, Downtown, Edgewater, and Wynwood. The area's proximity to Miami Beach, retail and entertainment amenities and the Miami Airport makes it an attractive location for renters, tourists, and employers alike. Over the past five years over 35% of Miami's renter demand has been concentrated in the submarket, making up over 11,000 units absorbed. A rise in new deliveries has driven vacancies to around 5.8% as of the first quarter of 2024, still these remain below the five-year historical average rate of 8.9%. Elevated demand and tight vacancies have driven significant rent gains in the area, with rents rising over 20% since 2019, but as new deliveries hit the submarket's fundamentals are beginning to soften. Rent has begun to contract by 1.0% annually, down from a high of 1.1% over the last 12 months. Still, submarket rents stand at a more than 25% premium over average market rents, the highest rents in the Miami market, followed by neighboring Coral Gables. Despite significant rental increases in the last few years, renter demand remains positive, though an elevated pipeline of apartments delivering in the next three years will continue to soften vacancies along with rent gains, specifically for 4- & 5-Star properties which make up over 90% of inventory underway. Relocations to the area by major companies such as Kaseya, Citadel, and D1 Capital Partners continue to power an influx of higher income residents. With its proximity to the Brickell, Coconut Grove, and Downtown Miami office markets, Downtown Miami multifamily will continue to be the main beneficiary of these relocations. That said, the near -term impact of the economic slowdown on the information and financial activities sectors will likely slow activity from peak levels seen in the last couple of years. After record deal volume of over $1.4 billion in 2022, sales activity has slowed, with 2023 volume totaling just over $260 million through the third quarter. Still, activity remains strong relative to pre -pandemic levels, although virtually all activity this year has been driven by two major deals of over $90 million. The largest sale involved the over 240-unit, 4-Star Wynwood 29 for $135 million or over $544k/unit in October. The 2023- built property was still in lease -up during the sale. The second large trade involved the sale of the over 200- unit, 4-Star Milagro Coral Gables, located at 2263 SW 37th Ave in Coral Gables. Pantzer Properties bought the 4-star property, built in 2013, for over $97 million or over $411,000/unit from Wafra Inc, in May. The property sold at a 20% discount relative to the average annual transaction price of over $480,000/unit for 4- & 5-Star properties t as of the first quarter of 2024. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 40 1851 NW lst Court 23-022-02 MARKET ANALYSIS KEY INDICATORS Gams entailer Units Vacancy REM Asking Runt FArc9re RankAbsorplinn Coolly Oserarscl Links Under Units WI* entailer 4 & 5 Star 21,275 5.7% 53.103 53.051 273 224 12,520 3 576 2,515 1 0% 52,583 52,575 0 9 23 1 & 2 Star 5,351 4.3% $1.181 51.175 1 0 0 44140/014 21441 15.1% 1.2.131 52,114 Z74 234 ILIA" Amami /mds 12 Month Hrpinnral FTh. Pack M11rart Tyr Whom Avarags Ammar Vacancy Change (YCY1 UAL,: 7.3'.1: 9.7% 17.7% 2020 U2 42% 2022 a1 A45orptlnn tines 1,43E 782 2 C88 4.34E 2021 02 i 171 2007 02 Dakered LINK 1291 893 2 678 4,797 2015 02 0 2013 01 1:W1444116d Llntls 20 73 79 480 2014 04 0 2021 02 A ,:Irq Rent e1N11) (YOY) 1 1% 2.3% 2 7% 18.0% 2022 01 -5.5% 2009 02 ErleClrrn 13E1i1 GKyailh (Y0Y) 1.0% 2.3% 2.7% 20.8% 2022 01 -8.7% 2009 02 Salle Volume 5257M 515BM NA 51.58 2022 03 5411 24:09 132 Vaca ncy Slowing immigration and job growth, which are coming off of elevated levels, are resulting in a downtick in demand which began to take hold in the first quarter of 2023. Despite this slowdown, 2023 absorption rate remained positive, totaling over 1,400 units. Still, vacancies are expected to continue to rise as the supply pipeline remains elevated and economic headwinds weigh on household formation. Vacancies have so far increased over two percentage points, from historic lows of 4.2% in the first quarter of 2021 to 5.8% as of the first quarter of 2024. As supply pressures are limited to higher quality properties in lease up, most of the recent and looming vacancy expansion is expected to impact the luxury market segment. With elevated forecast deliveries of over 6,200 units through 2024, unstabilized vacancies are expected to rise by more than 5 percentage points to over 12% through the end of 2024. 4- & 5-star product is expected to drive most of the expansion with vacancies rising to over 14% for this segment by the end of 2024. Due to more limited inventory additions, 1-to-3-star product is expected to hold vacancies below 5% through the near -term forecast. Despite having the largest supply pipeline across all Miami submarkets, Downtown Miami remains one of the most attractive areas for renters. The area's evolving restaurant and retail amenities coupled with transit access through the Metro mover and multiple bus routes make it one of the most walkable areas in the Miami metro. Driven by organizations such as the Wynwood Business Improvement District, redevelopment of the submarket's neighborhoods will continue, which bodes well for future renter demand. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 41 1851 NW 1st Court 23-022-02 MARKET ANALYSIS ABSORPTION NET DELIVERIES & VACANCY 2 00ti 1800 1 600 1 400 1 200 1 000 800 600 400 200 0 200y + i + 2018 2019 2020 2021 2022 2023 + a 1' Forecast III I 1 + 2024 2025 2026 2027 ■ Absc phvn 111 Nei Dahvene3 ■ Vacancy l 22% 20% 18° 16% 14% 12% 10% B"ro 4% 2% I I+I I+,O% M,am+ Vacancy Rental Rates After a year of unsustainable double digit rent hikes, rent growth has slowed to 1.0% as of the first quarter of 2024, the lowest reading since the third quarter of 2020 and well below the 5-year historical average growth of 4.6%. 3 Star and 4- & 5-Star units drove the recent outperformance in rent growth with gains exceeding 1- & 2-Star units, after underperforming from the fourth quarter of 2018 to the first quarter of 2021. However, so far in the second half of 2023 3 Star and 1 and 2 Star rent gains are outperforming once again, now growing at 2.5% for 3 Star and 3.0% for 1 & 2 Star, versus 0.9% growth for 4- & 5-Star properties. Studio rent growth outperformed larger units through 2022, but rent growth has now stalled across size ranges in the first quarter of 2023. Despite a recovery in real wage growth since 2021, the average median income in Miami remains 12% lower than the national average. Recent steep increases in apartment rents, almost doubling the U.S. average in 2022, coupled with an increasingly limited workforce inventory, continue to pose challenges for the majority of apartment renters. Miami's high employment concentration in the leisure and hospitality and trade, transportation, and utilities sectors will continue to drive this widening disparity between incomes and rent levels. Going forward, outsized job gains within the recovering leisure and hospitality segment will further limit rent growth outperformance towards more affordable units. Additionally, concessions have begun to rise as the over 1,100 units delivering in 2023 continue to expand 4- & 5-Star apartment vacancies. A slowing economic environment, specifically for the higher earning finance and technology sectors will further weigh on luxury demand and rental gains. That said, elevated home values and mortgage rates will limit homeownership even for higher income earners, helping the area retain a higher share of renters across all star ratings. JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 42 1851 NW lst Court 23-022-02 MARKET ANALYSIS MARKET RENT PEN UNIT A RENT GROWTH 53,4100 53.200 53,000 52,800 52,600 S2,400 52,200 52,000 51,800 S1,600; t ' [-LL 1_ F F 1 Forecast 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 s Marker Rent Growth Yn • Market Rent Per Unit • Effective Rent Per unit 30% 25% 20% 15% 10% 5% 0' -5% -10% 15% Mere, Market Rent Per Unit z Construction Construction starts have totaled over 3,300 units so far in 2023, close to the annual average for starts of over 4,200 over the last 5 years. A pandemic amplified surge in demand has emboldened apartment developers in Downtown Miami over the last two years, 2021 starts of over 3,900 units almost tripled the historical annual average of around 1,500 units since 2010. 2022 starts rose even further, reaching a record of over 11,200 units. The vast majority of starts remain underway, with under construction units totaling 12,649, representing the largest supply pipeline across all Florida submarkets. Supply underway represents over 43.0% of existing inventory with over 90% set to deliver as 4- & 5-Star luxury units, Over 50% of units underway are concentrated in the Wynwood and Brickell neighborhoods which have attracted outsized renter demand over the last few years. Stabilized vacancies for 4- & 5-star assets in these two neighborhoods remain tight below 5%, while properties which delivered since 2020 hold an over 27% vacancy rate largely driven by four recent deliveries which remain in lease -up, 29 WYN, The Dorsey, and Wynd 27 & 28. The largest projects underway in these neighborhoods include Mana Wynwood with over 3,400 units, The River District Apartments with over 1,600 units and 1 5authside Park with over 1,100 units. Above average employment gains are set to drive household formation and income growth over the corning years, resulting in a continued rise in housing demand. Additionally, homeownership has been impacted by higher insurance premiums, rising maintenance costs in older condo properties, and a pandemic induced surge in home values, making renting more attractive. The limited construction of single-family housing across South Florida, coupled with elevated mortgage rates further impact home affordability, helping drive housing demand toward new luxury apartments and garden style rental developments. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 43 1851 NW 1st Court 23-022-02 MARKET ANALYSIS 10 11 12 DELIVERIES tg DEMOLITIONS Forecast 7•rU i 1,500 1a�o Sao 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 a Delivenes • Demo sheb • Nag D'etNerles RECENT DELIVERIES Property Mi-riseModress 2 3 4 5 5 7 Nynwooa Haus 23 NE 17th Ter M otro Edgewater 462 NE 3151 S1 29 WPM 2828 NW 15t Ave Liman 22 2222 NE 2n0 Ave WY ND 27 & 28 127 NW 2 tth Si 3011 SW 1st Ave Downtown 1st 30SW 1s4St 3Artem 90 NW 29th St 9 The B.ourevan1 5700 Biscayne Blvd Strata Wyn wood 21 NE 22nd St The Dorsey 252.286 NW 291h St Albs Lithe Havana 2100SWBMSt * ***or * * * * * * * * * * * * * * * * * • * * * Limits Stands Malt C nplau Dewlcoae0rnsr 224 20 2T9 32 248 12 441 152 15 8 12 3 560 57 189 11 282 8 260 11 306 12 224 8 Fab 2020 Jun 2021 Jan 2024 Jura 2021 Dec 2023 Dee 2022 Jun 2023 Jan 2022 Jun 2023 Mat 2021 Mar 2023 Mar 2022 Jan 2023 Jan 2022 Dec 2022 Sets 2020 Oct 2022 Jan 202E Aug 2022 Aug 2010 Apr 2022 Coe 2020 Apr2022 Feb 2022 Lrn8atre Group Fortis Design Bug! Budding Block Realty . LLC Regaled Development LLC Berksnrre Meto Group Melo Group KuS.titler Commas Kushner Companies Melo Group Melo Group Lennar ©uarterra Multifamily Llvtng, LLC 13ih Hoot rnvE,aw ents Parxzer Proper One Real Estate investment Rcckpca,nt Toe Reeled Companies RNated Development LLC Altman Management Company Altman Management Company JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 44 1851 NW 1st Court 23-022-02 MARKET ANALYSIS 1 2 4 5 6 UNDER CONSTRUCTION Prnpe ty NarndAddrass he River District Apart... 401 SW 3rd Ave 1 Southaide Park - Apart... 1145-1i33SW' 2ndAve 3090-3955 Biscayne Blvd Atlantic Station 152 NW Sth St NEML!Aiami 2900 Biscayne Blvd Miami Wond Tower 700NE 1st Ave Paramount Miami World.., 1001 NE 1st 51 16-35 NE Miami Ct 9 The Wynwood Plaza 05 NW 29111 St UNDER CONSTRUCTION aerie * * * Jf * * * * * * * * * * * * * Or*** * * *** * * * * * * * ***** Unite 1,600 1,175 843 616 588 575 558 Sty S4 hfou 2022 64 Oct 2021 10 Jan 2024 36 Jan 2023 39 May 2022 53 Mar 2022 59 Dec 2022 20 Jul 2022 12 Mar 2023 Rent Cernplets mole podOurrrar The Cnelnt Group The Claetnt Group Nov 2024 Apr 2024 Jan 2026 Ace 2025 Jui 2024 Apr 2024 Dec 2025 Jul 2024 Apr 2025 JOS Development Group JOS Development Group Crescent Heiulris Crescent Heights AtEeltiC I Pacaliic Management City of Miami Crescent Heights Crescem Heights Laiezanan Proc*i1ies Lalezanan Properties Fifield Companies Fdieid Companies J. Milton 8 Associates J. Milton 8 Associates L&L Holding Company. LLC L&L Holding Company, LLC Property leairxYAddress 10 11 12 1 he Gallery at Ales' 20 SW 10th SI Nexus Raverslcle 230 SW 3rd S1 Modera Riverside 230 Third St 13 2000 Biscayne Blvd 2000 Biscayne Blvd Seventh Street Aparime... 697 N Mien Ave 14 IS 16 17 18 10 2[i Caooa Miami Wort [ice n€e_.. 698 NE 1st Ave ❑kart Tower- Condos 555 N Mlarnl Ave Residence 23 2201 NE 2nd St NoMa2 Residences 2700 NW 2nd Ave Society Wynwood 17E NW 2Sth St AMLI 'Wynwaod 701JW 251h St * * * * * * * * * * * * • . * * * * * * * * * * * * **** +� 4165 462 413 411 309 360 320 318 314 Stoles Start 29 Sep 2022 36 Aug 2022 Jan 2021 Dec 2021 43 Mar 2022 40 Jan 2023 76 Sep 2022 20 Mar 2023 t} Sep 2023 0 f}ec 2021 8 Jim 2021 Complain tiaraloperlOrmen May 2025 Oct 2024 Aug 2024 Mar 2024 Nov 2025 Jun 2024 Sep 2025 .Iasi 2024 Jinn 2025 Mar 2024 Mar 2024 Related IlevelopmenL LLC Related Development LLC Adler Properties Greek Residential Mil Creek Residential Trust LLC Iota Cieeac Residential Kushner Companies Kushner Comparuee Falcone Group Falcone Group Okay Group Okan Group Trsogj Real Estate Croup Tricap Related Development LLC PMG NYC LLC PMG AMU Residential AMLI Management Company JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 45 1851 NW lst Court 23-022-02 MARKET ANALYSIS PROPOSED Proprty NarrdAddrees 1 Maria Wynwood• Reside... * 550 NW 24th Si 2 The Eastrldge-MF * * 5045 NE 2nd Ave 3 700 N Miami. Ave Casa Forma 1370 NE 2nd Ave 5 1900 Biscayne HIvd 31 NW loth St Midtown 7 3001 NE 1st Ave $ 180 SW 9th St 9 Vizcaya Place 3206 SW 1s1 Ave 10 550 S &Carol Ave PROPOSED * * * R ,* * * * * 4 * * * * 3,487 3,369 2,346 1,441 872 650 391 328 32r 10 28 54 54 42 30 31 43 10 62 Feb 2024 Mar 2024 Mar 2024 May 21124 Mar 2024 Jan 2024 Feb 2024 Apr 2025 Mar 202 Mar 2026 Sep 2025 Mar 2025 Dec 2025 bmaltrpue0wnu Moshe Marna GRM Spv Ready Lc Spv Rearty Lc Wrikaff Wolkoff Crescent Heights C,reacent rlelgJ Arias &wary LLC Kushner Companies LYND Jan 2026 Mar san Development Group. Ltd AMU. Management Company Feb 2024 Aug 2025 WestRaire Partners WestPtrie Parners Apr2024 Oct 2025 iAar2024 Jan 2025 Terra Group Synge Preperttes Isentc Hyundai Trading Properly l arualAddrees 11 Wtynwtoad Urby 26 NE 2 rth St 12 27022 5 Federai Hwy # * * * 256 13 Residence 27 2728 NE 2nd Ave 17 W ynwood 18 NA 23rd St Edgewoad 22 2140 NE 2nd Ave 43 NE 53rd 5t 1E Evolve Wynwoad 535 NW 36th St 19 1715SW37thAve View 12 20 2901 NW 2nd Ave Rating * * * * 289 * * * * * * * * ***1r * * * k 247 204 178 160 147 141 * *** 120 1 * * * 1i6 bans atones Sian Campion Owrlopnroset r Urby 8 Mar 2024 Oct 2025 Urby The Richman Group of Cort!panres Feb 2024 Mar 2026 43 Feb 2024 Feb 2026 12 Mar 2024 Mar 2026 18 Mar 2024 Apr 2025 Dec 2024 Aug 2025 9 Jul 2024 Dec 2024 8 Apr 2024 Dec 2025 12 Mar 2024 Dec 2024 Truogy Real Estee Group Apartment investment and Mena. Apartment investment an4 Maw. Alchemy ABR Investment Partners Alchemy ABR investment Partners Heritage Equity Partners Ftypenarl Development Group Inc. Hyperon Development Group Inc. Evc'e Companies Evatve Cornpantes BAM Property Managernent BAM Property Management New Urban Development Sales Activity has begun to increase, with volume totaling just over $136.8 million through the fourth quarter of 2023, with two major trades driving activity. Since 2020, strong tenant demand resulting in significant rent gains has attracted outsized investor interest in Downton Miami. Double digit pricing growth in 2021 and again in 2022 has underscored investor appetite for multifamily in the area, though rising interest rates resulting in cap rate uncertainty are now slowing pricing gains and transaction activity. Sales activity has slowed in the last 12 months, with 22 property trades totaling $267 million in investment volume, this is down from a record of over 56 trades totaling over $1.7 billion achieved from the fourth quarter of 2021 through the third quarter of 2022. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 46 1851 NW lst Court 23-022-02 MARKET ANALYSIS Downtown Miami multifamily now trades at a premium, 30% higher than the Miami market average as of the third quarter of 2023, up from a premium of around 20% before 2020. Since 2020 median pricing growth in Downtown Miami has outperformed the broader Miami market, growing by around 137% versus 82% respectively. The average annual transaction price per unit has grown to around $410,000/unit today. Headwinds to occupancy, resulting in a normalization in rent gains over the last few months, should slow pricing appreciation over the coming quarters. Virtually all activity so far this year has been driven by two major deals. The largest involving the sale of the over 240-unit, 4-Star Wynwood 29 for $135 million or over $544k/unit in October. The 2023-built property, developed by the Related Group, was still in lease -up and was 68% vacant at sale. Ajoint venture between Berkshire and Bayshore Global Management acquired the property which includes studio, one-, two- and three -bedroom units which rent for $3,200/unit on average. The buyers secured a $79.5 million loan for the purchase by assuming an existing $69 million loan and increasing it by $10.5 million. A deed restriction states that the property cannot be converted into condominium. The second largest sale involves the sale of the over 200-unit Milagro Coral Gables, located at 2263 SW 37th Ave in Coral Gables. Pantzer properties bought the 4-star property, built in 2013, for over $97 million or over $411,000/unit from Wafra Inc in May. The property sold at a more than 10% discount relative to the average market price of over $450,000/unit for 4- & 5-Star properties as of the second quarter of 2023, but still 25% higher than the purchase price Wafra Inc secured back in 2017. As the property is farther inland when compared to recent sales in the market, it is unsurprising that it traded at a relative discount. Downtown Miami has been the central target of investor demand, making up over 20% of transaction volume since 2020. The largest deal in the last few years includes Boca Raton -based developer Mill Creek Residential selling the recently built 296-unit Watermarc at Biscayne to Denver -based AIR Communities for $211 million or over $712,000/unit in June 2022. The property was over 97% leased at the time of sale. Another major sale involves the Miro Brickell, a 372-unit multifamily property, sold for over $184 million, or approximately $496,000/unit. The property delivered in 2017 and was 93% occupied at the time of sale in July 2022. More recently, in November 2022 Pantzer Properties purchased The Boulevard, a 282-unit complex built in 2022, for over $620,000/unit. Both downtown Miami and Mid -Beach continue to see the highest pricing across the metro, with the latter submarket enjoying a slight premium due to its extended beachfront access. Going forward, tight financial conditions will continue to result in slower transaction activity relative to the boom in 2021 and 2022. Additionally, pricing growth will remain muted as softening fundamentals and higher cap rates continue to impact property values. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 47 1851 NW lst Court 23-022-02 MARKET ANALYSIS SALES VOLUME & MARKET SALE PRICE PER UNCT S480.000 $460.000 $440,000 $420,000 $400.000 $ 380.000 $360.000 $340.000 $320, 000 $ 300.000 $280.000 $260,000 ildmiamp-wa 2018 2019 2021 INARK ET CAP RATE $1 100 $1,000 $900 S800 $700 5600 $500 $400 $300 $200 $100 } '.i., "}!.$0 2021 2022 2023 2024 2025 2028 2027 ■ Saw Voaune • Downtown Mlamr PneauUnri 5.830 5.6% 5.4% 5 2% 5.0% 4 8% 4 6% 4.4% 4.2% 4 0% 3 8% 3.6% } 1 7 t° } } 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 • Downtown Miami 3 Star • Downtown Mramr 4-5 Star • 0ownttmn Miami Miami Conclusion The subject is an existing 3-star property located in the Downtown Miami Multi -family submarket. Properties of that class, and in that submarket, have an overall vacancy of 5.8% which is slightly more than the overall market rate of 5.2%. Average asking rental rates are down, most likely in response to the previous periods' high levels of rent growth. Downtown Maimi ranks first in growth projection over the next few years, contributing to over 12,500 units to the Miami -Dade County Market. Rent growth is projected to slow significantly and may even decline over the next year. Cap rates have increased based on conservative projections and increase in the cost of financing, interest rates. JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 48 1851 NW lst Court 23-022-02 MARKET ANALYSIS Although we have provided market rents for the subject, the subject's contract rents are regulated by the Omni CRA. For the two 2-bedroom units, the rental rate must be at or below the rental rates established for households at or below 80% of the area median income ($1,858), as determined by the U.S Departments of Housing and lJrhan development (Hl1D). For the two 1-hedrnnrn units, the rental rate must be at nr below the rental rates established for households at or below 60% of the area median income ($1,161). For the two studios/efficiencies, the rental rate must be at or below the rental rate established for households at or below 40% of the area median income ($723), The unit rents may be adjusted annually based on the HUD tables. HUD release, 511V2523 L•71actlre: 111.2027 r®Piser•nt ofvl>+inTd a7.241123 2023 Income Um Ws and Rent Limps Florida Housing Finance Corporation 5lutlfarealy Rimini Pervades and CWH1P Homeownersn4p Program Mt3TE. Chat! nog DertsIn to COBC.Oa9, HARP HOME rrif J o. int1P Cmmry I M r 1 Relc a!!7¢ Cdegert mama Limit by Norther of Person%In Nods.bald Reel Lane by 1lumbe ri 8eornemi In lln.t f t ] 4 5 6 r a 1 10 8 I 2 3 4 5 11ie0-0a5e Canty 29'r 14,190 16,520 16,SII1 20,611 22,301 23 969 25610 27 21 28,1111 30541 361 361 464 531 559 660 Ilion rani l3aaerr ._ , 16.075 26.650 23,ns 15.5 1 27,875 21%.551] : O30 :U 715 3e.120 33.161 45' 13J 537 i70 74E S25 KanS31 144FA, 264E 29241 21,125 25 512 2r,116 31,221 31,544 35440 31.164 40.454 42,766 506 Sat 156 751 131 525 3Ch 21.690 24.760 21674 30.111 33,450 35.443 35.400 40e90 43.344 4552i 542 560 596 505 d99 49i 33% 13291 21,250 30217 34456 36,145 34.534 42240 Min 47,671 55452 26 631 me 165 988 1,090 35% 25305 29,910 32.515 36 120 39.025 411,25U 41515 47 105 55,556 553,4S13 632 677 547 411 1545 1 155 491E 25221 33,110 31,160 41.226 44,401 47,920 51,210 54 520 67,75E 61,884 723 771 525 1071 1,455 1.321 15;i 32.335 37.17r.: 47505 16149 50.175 5391t1 j762G 51335 85.018 13.731 513 071 1.245 1217 1347 1485 WI 96,1511 41,318 46,430 51,606 55,191 56,101 641000 61,196 72,141 75351 902 1>10 1,10 1,341 1,A07 1,651 6011 43350 41.560 55.740 01.929 66.900 71 Mil 75.800 31 750 55559 91,642 1.254 116T 13395 1.515 I,797 1,992 70% 30111 51,120 65030 72.246 110511 13203 89500 1511 101,136 196415 1265 1,355 1,526 1.171 2161 2,312 Ueda 11.750 57% 57840 66,061 74,320 92,500 61.200 86M0 11I2,400 109.440 115,504 122,10 1.146 1,549 1.806 2147 2396 2,543 120E 16,781 11,121 111.461 123,.610 113,510 143,164 151,606 102.311 173,376 1113,263 2,161 2323 2.717 3,226 3.555 2.161 144' ID, 2; Its Cli' l J lit 480 '5,109 157 i21] 1777i4 '.7] 620 :102:i: 213,131 252S ;Li Id 1251 3.77 4.113 4 625 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 49 1851 NW 1st Court 23-022-02 DESCRIPTION OF THE SITE Site Summary Parcel ID/Tax ID 01-3125-048-0650 Gross Land Area (Acres) 0.17 Gross Land Area (SF) Zoning Code 7,500 T3-0 SITE DETAILS Selected Density 18 du/acre ADDRESS PARCEL NUMBER LEGAL DESCRIPTION LOCATION LOCATION TYPE MAP LATITUDE/LONGITUDE CENSUS TRACT SIZE USABLE LAND ZONING PRIMARY FRONTAGE STREET PRIMARY FRONTAGE STREET LENGTH PRIMARY FRONTAGE COMMENTS ADJACENT PROPERTIES - NORTH ADJACENT PROPERTIES - SOUTH ADJACENT PROPERTIES - WEST ADJACENT PROPERTIES - EAST AVERAGE DEPTH VIEW ACCESS INGRESS/EGRESS SITE VISIBILITY STREET LIGHTING STREET CONDITION SIDEWALKS CURBS AND GUTTERS LANDSCAPING TOPOGRAPHY SHAPE REQUIRED SITE WORK SOIL CONDITIONS AND DRAINAGE 1851 NW 1st Court, Miami, Miami -Dade County, FL 33136 01-3125-048-0650 WADDELLS ADD TO MIAMI PB B-53 S1/2 LOT 3 & N1/2 LOT 6 BLK 23 LOT SIZE 60.000 X 125 OR 14757-1483 0890 4 COC 23470-4349 09 2003 1 The subject is located on :he east side of NW lst Court, south of NW 19th Street. The property is located in the City of Miami. Suburban 25.79 3 706/-80.1974 663 12-086-0031.00 7,500 SF or 0.17 acres 7,500 SF or 0.17 acres The parcel is zoned "T3-0," under the jurisdiction of the City Of Miami. NW lst Ct. 60 ft. The subject's site primary frontage is along NW 1st Court. Nw 1st Ct. is a north -south thoroughfare. Multifamily development Multifamily development Elementary School Multifamily development 125 Street Primary access to the property is via NW lst Ct., from NW 19th Street from the north and NW 18th Street from the south. I-95, a 6-lane thoroughfare located near the subject, allows access to most parts of Miami -Dade County from the northeast to southeast direction. There is one points of ingress/egress onto the property from NW 1st Court. Average Yes Paved with asphalt Yes Yes The subject's landscaping is typical for the area. The subject's topography is level and at street grade. The subject site is rectangular. None Noted. The soil conditions observed at the subject appear to be typical of the region and adequate to support development. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 50 1851 NW lst Court 23-022-02 DESCRIPTION OF THE SITE FLOOD ZONE FLOOD ZONE DEFINITION ENCUMBRANCES AND EASEMENTS ENVIRONMENTAL HAZARDS WETLANDS AND WATERSHEDS ADEQUACY OF UTILITIES PUBLIC ELECTRICITY WATER SUPPLY TYPE SEWER TYPE UNDERGROUND UTILITIES POLICE AND FIRE PROTECTION SITE IMPROVEMENTS CONCLUSION The site lies within Zone X (unshaded). This information was obtained from the National Flood Insurance Rate Map Number 12086C0312L dated September 11, 2009. Area of minimal flnnd harard, usually dPpirted nn FIRMs as above the 500-year flood level. In communities that participate in the NFIP, flood insurance is available to all property owners and renters in this zone. There are no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. There are no known adverse environmental conditions on the subject's site. Please reference Limiting Conditions and Assumptions. No wetlands were observed during our site inspection. Public utilities are available to the site, FPL Miami -Dade County Water and Sewer Miami -Dade County Water and Sewer Yes City of Miami The site is improved with a two-story apartment property with a surrounding fence. The subject site is considered well -suited to functionally support its current use. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 51 1851 NW 1st Court 23-O22-02 DESCRIPTION OF THE SITE AERIAL PHOTOGRAPH JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 52 1851 NW 1st Court 23-022-02 DESCRIPTION OF THE IMPROVEMENTS Building Name/ID 1851 NW lst Court Unit Type Studio 1 BD/1 BA 2 BD/1 BA Total/Wtd. Avg. Building Summary Number of Net Rentable Condition Floors/Stories Area Average 2 2,568 Unit Mix -1851 NW 1st Court No. of Units Size (SF) Avg Unit Size 2 288 288 2 436 436 2 560 560 6 428 428 Current Occupancy 0.00% Total NRA (SF) 576 872 1,120 2,568 Number of Units 6 % of Total 22.43% 33.96% 43.61% 100.00% GENERAL DETAILS DESCRIPTION MARSHALL VALUATION SERVICE CLASS MARSHALL VALUATION SERVICE QUALITY BUILDING CLASS CONDITION YEAR BUILT RENOVATIONS EFFECTIVE AGE TOTAL ECONOMIC LIFE REMAINING ECONOMIC LIFE CONSTRUCTION TYPE CURRENT OCCUPANCY LAND TO BUILDING RATIO FLOOR AREA RATIO (FAR) PARKING TYPE CONDITION OF PARKING LOT TENANT TYPE DEFERRED MAINTENANCE DESIGN AND FUNCTIONAL UTILITY NUMBER OF BUILDINGS Briefly described, the subject consists of an average quality two- story apartment property in good condition, containing 6 rental apartments totaling approximately 2,568 SF of net rentable area, constructed in 1954. The average unit size is approximately 428 SF. The property is currently vacant. The property was recently renovated by the owner and is subject to a rent regulatory agreement with the Omni Redevelopment District Community Redevelopment Agency which provided financing for the renovations. The subject's site consists of approximately 7,500 SF or approximately .17 acres of land, with a surrounding fence. The site is rectangular and is level and at street grade. The unit amenities include central air-conditioning units and standard kitchen appliances, C Average C Average 1954 2020 10 Years 55 Years 45 Years Concrete Block with Stucco 0% 2.92 0.34 Street Average Multi -Tenant From an inspection of the property, no visible items of deferred maintenance were noted. The overall layout of the improvements on the parcel is considered to be average. 1 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 53 1851 NW 1st Court 23-022-02 DESCRIPTION OF THE IMPROVEMENTS BUILDING NAME BUILDING DESCRIPTION BUILDING CLASS DWELLING TYPE CONDITION YEAR BUILT RENOVATIONS EFFECTIVE AGE TOTAL ECONOMIC LIFE REMAINING ECONOMIC LIFE GROSS BUILDING AREA NET RENTABLE AREA NUMBER OF UNITS LAND T❑ BUILDING RATI❑ FLOOR AREA RATIO (FAR) BUILDING EFFICIENCY RATIO CURRENT OCCUPANCY NET LEASE❑ TENANT TYPE APPEAL AND APPEARANCE DESIGN AND FUNCTIONAL UTILITY BUILDING AMENITIES UNIT AMENITIES DEFERRED MAINTENANCE PLANNE❑ CAPITAL IMPROVEMENTS BUILDING 1 DETAILS 1851 NW lst Court Multiple Residences C Two-story, exterior hallway apartment Average 1954 2020 10 Years 55 Years 45 Years 2,568 SF 2,568 SF 6 2.92 0.34 100.0% 0% No Multi -Tenant Average The overall layout of the improvements on the parcel is considered to be average. Surrounding fence. Central air-conditioning, standard kitchen appliances. From an inspection of the property, no visible items of deferred maintenance were noted. None Noted. CONSTRUCTION DETAILS MARSHALL VALUATION SERVICE CLASS MARSHALL VALUATION SERVICE QUALITY CONSTRUCTION TYPE NUMBER OF STORIES FOUNDATION FRAME EXTERIOR WALLS/FINISH WINDOWS ROOF TYPE ROOF COVER FLOOR PLAN LAYOUT FLOOR COVERING INTERIOR WALLS CEILING COVER INTERIOR LIGHTING Average Concrete Block with Stucco 2 Poured concrete slab Masonry Frame Concrete Block Aluminum -framed plate glass Flat Rubber Membrane or Built-up Materials Average Tile or Wood Plank Painted drywall Drywall LED Fixtures JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 54 1851 NW 1st Court 23-022-02 DESCRIPTION OF THE IMPROVEMENTS RESTROOMS HVAC UTILITIES HOT WATER ELECTRICAL PLUMBING FIRE SPRINKLER NUMBER OF ELEVATORS ELEVATOR DESCRIPTION NUMBER OF ESCALATORS ENTRANCES AND EXITS The restroorns have tiled floors, tiled or painted walks and contain fixtures that are average quality. Package Units AIY AvailahlP Water Heaters in Units Currently the contractor is waiting to install recently received equipment that will allow the final certificate of occupancy. Assumed to be in compliance with prevailing code requirements. N/A None N/A None There are single entrances into the units via an exterior covered walkway. There are two set of stairs allowing access to the second floor of the building. PARKING DETAILS PARKING TYPE Street CONDITION OF PARKING LOT Average JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 55 1851 NW lst Court 23-022-02 ZONING The subject is zoned "T3-0," Multi -Family, Low -Density , under the jurisdiction of the City Of Miami. The subject property's zoning density allows for a maximum of 18 developed units per acre. The density of the subject passes the allowed density, however is grandfathered in. Due to zoning regulations, the subject has a Iegal, hut nnn-conforming use_ ZONING CODE ZONING DESCRIPTION PERMITTED USES ZONED DENSITY MAXIMUM LOT COVERAGE MINIMUM LOT AREA MINIMUM FRONTAGE LANDSCAPE OPEN SPACE SET BACK DISTANCE SIDE YARD DISTANCE INTERIOR SIDE REAR BUILDING HEIGHT BUILDING NUMBER OF STORIES PARKING COMMENTS CURRENT USE CURRENT USE LEGALLY CONFORMING? PERMITTED DENSITY ZONING CHANGE MADE/REQUESTED? PARCEL ZONING COMMENTS ZONE DETAILS T3-❑ Multi -Family, Low -Density Single Family Residence, Community Residence, Two -Family Residence, Home Office. 18 du/acre 50% first floor, 30% second floor 5,000 square feet 50 ft. 25% 20 ft. 5 ft. 0ft. 20 ft. 25 ft. 2 stories 2 spaces per unit The subject property's zoning density allows for a maximum of 18 developed units per acre. The density of the subject exceeds the allowed density, however is grandfathered in due to the age of the property. The subject is considered a legal but non- conforming use as it pertains to residential density. PARCEL DETAILS Multifamily development Is a legal and non -conforming use of the site. 18 du/acre No The subject property's zoning density allows for a maximum of 18 developed units per acre. The density of the subject passes the allowed density, however is grandfathered in. Due to zoning regulations, the subject has a legal, but non -conforming use. Based on a review of the subject in relation to the T3-0 zoning district, it appears the subject is a legal and non -conforming use of the site. However, we are not experts in determining if a property is fully in compliance with all aspects of the zoning code. We suggest interested parties obtain a letter of zoning compliance from the City Of Miami to determine if the subject is zoning compliant. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 56 1851 NW lst Court 23-022-02 TAXES The subject is assessed by the Miami -Dade County property appraiser's office, and is taxed by the City Of Miami. According to public records, it appears there is an unpaid tax liability in the amount of $9,646.36. The real estate taxes for 2023 have not yet been paid. Assessments in the county are done by the any Florida County Property Appraiser's offices. The tax bills are sent in October, and paid by March of the following year. A 4% discount is given to bills paid in November, 3% to those paid in December, 2% if paid in January, and 1% if paid in February. Taxes paid after March are considered delinquent. Since assessments are completed annually, trends in assessed values have generally been increasing, as property values have increased. School taxes are based on "market value." Non -school taxes are based on "assessed value." These values may be equal or may be different amounts, depending on the property. The "market value" used to calculate school taxes can be increased with no cap, and is intended to be synonymous with the property's actual market value if it were to sell in the open market. The "assessed value" used to calculate non -school taxes can be adjusted upward, but has a maximum cap. According to Florida law: "Constitutional Amendment 1, approved by voters on January 29, 2008, was a provision to limit increases in the annual assessment of Non -Homestead properties to ten percent (10%). The base- yearfor implementing this change was 2008 and assessments were capped beginning in 2009. • There is no application for the Non Homestead Cap as it applies automatically. ■ Changes in ownership and use resets the Non Homestead Cap base year following the change. For example, filing a homestead exemption application removes the Non Homestead Cap. • The Non -Homestead Cap limits increases in the assessed value to 10%, excluding School Board assessments." Therefore, in times of increasing values. the "assessed value" (used to calculate non -school taxes) can fall below the "market value" (used to calculate school taxes). The "market value" is multiplied by the millage rate(s) associated with the school district. The "assessed value" is multiplied by the millage rate associated with any non -school taxes. The two amounts are added together to arrive at the total ad valorem taxes. Any non -ad valorem taxes are then added to that amount to arrive at the total tax liability. According to Florida law, if a property sells, then the "assessed value" will increase to the "market value." As we will demonstrate, the "market value" for tax purposes often falls below the actual sales price, and is not to be equated with our concluded opinion of market value. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 57 1851 NW lst Court 23-022-02 TAXES The following table summarizes the subject's assessment and taxes: 1851 NW 1st Court Parcel ID 01-3125-048-0650 Assessment Year 2023 Tax Authority Land Value $487,800 Tax Authority Improvements Value $319,066 Tax Authority Other Value $0 Total Market Value $806,866 Total Assessed Value $306,059 School Board Millage Rate 6.699000 Non -School Millage Rate 13.857400 School Board Millage Rate Taxes $5,405 Non -School Mill age Rate Taxes $4,241 Total Tax Rate 20.556400 Tax Rate Per $1,000.00 Taxes $9,646 Special Assessments $0 Taxes with Special Assessments $9,646 Early Payment Discount Percentage 4% Total Taxes $9,261 To estimate the subject's assessment and taxes, we have analyzed other properties in Miami -Dade County. The tax comparables are outlined in the following table: Address 1837 NW 3rd Ave. Display Name 1837 NW 3rd Ave. Tax Parcel ID 01-3136-029-028[] Date 10/11/2023 Price 51.,891,400 As less merit Year 2023 Total Assessment 51,640,000 Assess men( Pert met 86.71% Assessment Year Prior 2022 Total Assessment Prior $810,000 Prior Assessment Perrentage 42.83% Value Change 102.47% 1720 NW 1st. PI 1710 NW 1st Ct. 1720 NW 1st. PI 1710 NW 1sLCt. 0_ 3125-048-09GO 01-3125-048-10G0 07/21/2022 07/15/2022 $1,500,000 53.500.000 2023 2023 $1,090,000 52.560.000 72.67% 73.1445 2022 2022 5700,000 $1,410,000 46.67% 40.29% 55.71% 81.56% 1801-1805 NW 2nd Ct Average 1801-1805 NW 2nd et 013131-3-029-0080 03/18/2022 53.500,000 $2,597,1150 2.02.3 $2.97'000 $2,065,250 8500% 79.38% 2022 $2,090,000 $1.252,500 59.71% 47.37% 42.34% 70.52% Assessed value on properties with homestead exemption is the base year market value, adjusted for annual percentage factor (3% or Consumer Price Index (CPI), whichever is less), plus new construction. • Assessed value cannot exceed market value. • On properties that do not have homestead exemption, assessed value and market value are synonymous. Florida law requires that the Property Appraiser assess all properties at market value as ofJanuary 1, of every year. To accomplish this task, sales from the prior years are used in valuing properties. For example, January 1, 2015 property assessments are based on sales activity from 2014. In arriving at just valuation as required under section 4, Art. VII of the State Constitution, the property appraiser shall take into consideration eight criteria. The eight criteria states as follows: JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 58 1851 NW lst Court 23-022-02 TAXES "The net proceeds of the sale of the property, as received by the seller, after deduction of all of the usual and reasonable fees and costs of the sale, including the costs and expenses of financing, and allowance for unconventional or atypical terms of financing arrangements. When the net proceeds of the sale of any property are Iitili7Pd, directly or indirectly, in the determination of just valuation of realty of the sold parcel or any other parcel under the provisions of this section, the property appraiser, for the purposes of such determination, shall exclude any portion of such net proceeds attributable to payments for household furnishings or other items of personal property." As previously noted, within the State of Florida, assessments are supposed to approximate 100% of market value; however, in many instances, upon a sale of a property the assessed values equate to only 75% to 95% of market value. We therefore discussed the topic of assessments with the Miami -Dade County Property Appraiser's office. They concurred that an assessment will typically fall at less than 100% of a property's market value when values are rising, but could not comment on a specific percent of value. In times when property values are falling, the actual assessed value will likely be at or close to 100% of the market value. Based on our experience in various counties in Florida and in particular Miami -Dade County, and considering the tax comparables presented, we estimate that upon reassessment, the subject's assessment would equate to approximately 75% to 95% of market value assuming a sale of the property. We estimate the assessment would equate to 80% of the market value concluded to in the Sales Comparison Approach. The subject's projected taxes are shown in the following table. Since our opinion of value is predicated on the assumption that the subject would sell (based on the definition of market value presented in the Introduction), we also estimate the subject would be reassessed and the school taxes and non -school taxes would be based on the new "market value," which would also equal the new "assessed value." Since "market value" equals "assessed value" after a sale, the combined millage rates (school tax millage and non -school tax millage) are multiplied by the new market value to arrive at the projected new taxes. Any non -ad valorem taxes are added to arrive at the total tax liability. Parcel ID Projected Taxable Total Assessment Percent Assessment Projected Total Assessment Projected Mill age Rate Tax Rate Per Projected Taxes Projected Special Assessments Projected Total Taxes Early Payment Discount Percentage Projected Total Taxes with Discount Projected Taxes Rounded 1851 NW lst Court 01-3125-048-0650 $1,140,000 80% $ 912,000 20.556400 $1,000 $18,747 $0 $18,747 4% $17,998 $18,000 The projected taxes are used in the Income Capitalization Approach, JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL. ESTATE VALUATION AND CONSULTING 59 1851 NW lst Court 23-022-02 HIGHEST AND BEST USE In determining the highest and best use of the property, consideration was given to the economic, legal, and social factors that motivate investors to develop, own, buy and sell, manage, and lease real estate. In forming an opinion of the highest and best use of a vacant parcel of land, there are essentially four stages of analysis: • Physically Possible Use: What uses of the site in question are physically possible? • Legally Permissible Use: What uses are permitted by zoning and deed restrictions on the site in question? • Financially Feasible Use: Which possible and permissible uses will produce a gross return to the owner of the site? • Maximally Productive: Among the feasible uses, which will produce the highest return or highest present worth of the site in question? The following tests must be met in estimating the highest and best use of a vacant parcel: the potential use must be physically possible and legally permissible, there must be a profitable demand for such a use, and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject's site and are discussed as follows: PHYSICALLY POSSIBLE The site is on NW 1st Ct., in Miami, FL. The underlying site consists of 7,500 SF or 0.17 acres. The subject's topography is level and at street grade. As noted in the Assumptions and Limiting Conditions, we know of no environmental or engineering study that has been conducted on the site to determine subsoil conditions. Upon analysis of all physical aspects, space, size, shape, terrain, location and others the most supportable highest and best uses of the site, as it relates to physical properties, are multifamily development. LEGALLY PERMISSIBLE The subject's site is zoned "T3-O," Multi -Family, Low -Density , under the jurisdiction of the City Of Miami, FL. Reference is made to the Zoning section of this report. Permitted uses include Single Family Residence, Community Residence, Two -Family Residence, Horne Office.. Upon analysis of the permitted uses, the most supportable highest and best uses of the site, as it relates to what is legally permissible, are multifamily development. FINANCIALLY FEASIBLE Analysis for financially feasible uses for the site, as if vacant, involves consideration of several criteria. Unlike the physically possible and legally permissible aspects of the highest and best use analysis, many external economic factors serve to prove or disprove financial feasibility. The cost of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price forecast, property tax implications and measures of risk and yield are all determinant to this analysis. The above financial measures serve to eliminate the uses that would not provide a reasonable return to the land based on an investor's expectations. The cost of land and its development limits the highest and best use of the site, generally to only those uses that are financially feasible. We conclude that financially feasible uses of the site that are physically possible and legally permissible are to maximize the utility of the site in relation to the zoning. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 60 1851 NW 1st Court 23-022-02 HIGHEST AND BEST USE MAXIMALLY PRODUCTIVE We considered those uses, as aforementioned, to meet the physically possible, legally permissible and financially feasible tests of the highest and best use definition. The final criteria for full compliance within the highest and best use of the subject, as vacant, is that of a maximally productive use. We conclude the maximally productive use of the site is to maximize the utility of the site in relation to the zoning. HIGHEST AND BEST USE, AS IF VACANT A final reconciliation of the analysis leads to the conclusion that the highest and best use of the site, as if vacant, is to maximize the utility of the site in relation to the zoning. HIGHEST AND BEST USE, AS IMPROVED We must also determine the highest and best use of the subject, as improved, by analyzing occupancy levels of various surrounding improvements, as well as the general needs within the area. Based on the current conditions of the subject's market, there appears to be no alternative use that would justify the removal or substantial alteration of the existing improvements. As such, the highest and best use of the subject, as improved, is the current improvements. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 61 1851 NW lst Court 23-022-02 ANALYSIS OF DATA AND CONCLUSIONS IDENTIFICATION OF A LIKELY BUYER The most likely buyer of a property such as the subject would be a local or regional investor interested in the cash flow, tax benefits and appreciation potential of the property. VALUATION METHODOLOGIES In appraising a property, there are three traditional valuation methodologies that can be applied: the Cost, Income Capitalization and Sales Comparison Approaches. Selection of one or more of the approaches in the appraisal of a property rests primarily upon the property type and its physical characteristics, as well as the quality and quantity of available market data. The Cost Approach is based on the premise that an informed purchaser will not pay more for a property than it would cost him or her to construct a property of similar utility. This approach is most applicable when the subject is of new or nearly new construction and the improvements represent the highest and best use of the site. This approach is also particularly useful when appraising unique or special purpose properties where there are few, if any, comparable sales or leases. The Income Capitalization Approach is based on the fundamental investment premise that the higher a property's earnings, the higher its value. Investment in an income -producing property represents the exchange of present dollars for the right to receive future dollars. In this approach, a value indication for an income -producing property is derived by converting its anticipated benefits {cash flows and reversion) into property value. This conversion can be accomplished in two ways: one year's income expectancy can be capitalized at a market -derived capitalization rate, or alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified discount rate. The Income Capitalization Approach typically provides the most meaningful estimate of value for income -producing properties. The Sales Comparison Approach involves delineating appropriate units of measurement from comparable sales, in order to apply them to the subject's property. Adjustments are then made to the sales prices of the comparable properties based on various shared elements. This methodology may be used to value many different types of improved properties and vacant land, as long as there is a sufficient quantity of good -quality market data available. It becomes less reliable as the quantity and magnitude of adjustments increases, and it is generally not applicable to unique or special purpose properties. The final step in the valuation process is the reconciliation or correlation of the value indications. In the reconciliation or correlation, we consider the relative applicability of each of the approaches used, examine the range between the value indications, and place major emphasis on the approach that appears to produce the most reliable and credible result. VALUATION METHODOLOGIES APPLICABLE TO THE SUBJECT PROPERTY The Cost Approach was not utilized because the typical purchaser would not use this method when making a purchase decision, since the age of the improvements makes the depreciation highly subjective to accurately measure. The Income Capitalization Approach was utilized because while the subject is not currently leased, it could generate an income stream and there is adequate data to develop a value estimate with this approach. The Sales Comparison Approach was utilized because there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 62 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Typically, a value estimate by the Income Capitalization Approach requires an analysis of the comparable and competing market for the type of property under appraisal and an estimate of market rent for that property. Also required in the Income Capitalization Approach is an analysis of current investment policies relative to financing and rates of return for today's income property investor. The subject is income -producing real estate purchased for the purpose of generating net annual income or cash flow to ownership. Net income or cash flow, the primary benefit of ownership, is the basis for determining value when value is recognized as the present worth of the future economic benefits arising out of ownership to typical users or investors. The value indicated by the Income Capitalization Approach is a reflection of a prudent investor's analysis of an income -producing property. In this approach, the direct capitalization method is used. Future benefits are estimated by forecasting the gross earning potential of the property under prevailing and foreseeable market conditions. Appropriate allowances for vacancy and operating expenses, based on prevailing and foreseeable market trends, are then deducted from gross earnings. This process results in an estimate of net monetary benefits to ownership, which are then capitalized into a present worth. ECONOMIC PROFILE Briefly described, the subject consists of an average quality two-story apartment property in good condition, containing 6 rental apartments totaling approximately 2,568 SF of net rentable area, constructed in 1954. The average unit size is approximately 428 SF. The property is currently vacant. The property was recently renovated by the owner and is subject to a rent regulatory agreement with the Omni Redevelopment District Community Redevelopment Agency which provided financing for the renovations. The subject's site consists of approximately 7,500 SF or approximately .17 acres of land, with a surrounding fence. The site is rectangular and is level and at street grade. The unit amenities include central air-conditioning units and standard kitchen appliances. The best indicators of the rents achievable in the subject units are the rents actually being charged in the complex on a current basis. However, the subject is a fully renovated apartment, with no leases in place. Consequently, we have relied most heavily on rent comparables in estimating the market rents for the different unit types found at the subject. MARKET RENT COMPARABLES A search of the market was conducted for rental comparables. The pertinent data relating to these comparables can be found on the following pages. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 63 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Name Address City State 225 NW 16th St 225 NW 16th St Miami FL County Zip Tax Parcel ID Miami -Dade County 33136 01-3136-021-1710 Site & Improvements NRA 2,902 Year Built 1954 No. of Floors 2 No. of Buildings 1 Land SF 5,250 Land Acres 0.12 MVS quality Average Condition Average LTB Ratio 1.49 Parking Type Street Parking Spaces NA Parking Ratio No. of Units 8 Avg. Unit Size 363 Unit Amenities Wall unit Air Conditioning, Property Amenities Gated Fence Range/Oven, Refrigerator Asking Rental Data Lease Concessions NA Utilities Included Occupancy 100.00% Verification Trash Listing Broker : Bert Rego Units & Rent Description No. Units Unit Site Rent/Month Rent/SF 1BD/1BA 8 363 $1,500 $4.13 Comments According to the Listing broker, each unit features separate water and electric meters, as well as wall -mounted AC units, ensuring tenant independence. The landlord only covers trash utilities. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 64 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Lease Comparable 2 • • Location Name 1315 NE Miami Ct County Miami -Dade County Address 1315 NE Miami Ct Zip 33132 City Miami Tax Parcel ID 01-3136-009-1540 State FL Site & Improvements NRA 17,969 Year Built 1960 No. of Floors 3 No. of Buildings 1 Land SF 18,750 Land Acres 0.43 MVS Quality Average Condition Average LTB Ratio 0.92 Parking Type Surface Parking Spaces 30 Parking Ratio 1 No. of Units 35 Avg. Unit Size 513 Unit Amenities Air Conditioning, Dishwasher, Property Amenities Gated Fence Range/Oven, Refrigerator, Washer/Dryer Asking Rental Data Lease Concessions NA Utilities Included Water, Sewer, Trash Occupancy 100.00% Verification Listing Broker : David Cohen Units & Rent Description No. Units Unit Size Rent/Month Rent/SF Studio 34 500 $1,855 $3.71 1BD/1BA 1 550 $2,200 $4.00 Comments According to the Isiting broker, the property is currently 100% occupied with tenants at market rents. The unit mix is 34 One -bedroom units and 1 Two -bedroom unit. The property is zoned T6-24A-O under Miami-21 zoning which allows high-rise development in addition to short-term hospitality. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 65 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Name Address City State NRA No. of Floors Land SF MVS Quality LTB Ratio Parking Spaces No. of Units Unit Amenities Lease Comparable 3 y1 13 Itf 1111 •w r " FBI N1rn nn _ ur p al . 268 NW 34th St 268 NW 34th St Miami FL 5,574 3 6,864 Average 1.23 NA 10 Air Conditioning, Refrigerator Location County Zip Tax Parcel ID Site & Improvements Year Built No. of Buildings Land Acres Condition Parking Type Parking Ratio Avg. Unit Size Range/Oven, Property Amenities Miami -Dade County 33127 01-3125-019-1760 1925,2001 1 0.16 Average Street 557 Gated Fence, Laundry Room Asking Rental Data Lease Concessions Occupancy Description Studi o 1BDJ1BA 2BD/1BA 2BD/1BAwith Den NA 100.00% No. Units 1 6 2 1 Utilities Included Verification Units & Rent Unit Size 500 450 650 1,074 Water, Sewer, Trash Listing broker : Jesse Spencer Rent/Month $1,700 $1,800 $2,20❑ $2,298 Rent/SF $3.40 $4.00 $3.38 $2.14 Comments According to the listing broker, the property was fully renovated. All major mechanical, electrical, and plumbing components have been upgraded. Capital improvements include; new roof (2023) Impact windows & doors, central HVACs, exterior stucco & paint (2023), interior stairs, common area walkways (in -progress), and fully renovated interiors with tile flooring, upgraded bathrooms, stainless steel appliances and modern fixtures and finishes. He also confirmed that tenants pay for Electric & Internet/Cable, while the Landlord Pays Water/Sewer &Trash. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 66 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Name 524 NW 35th St Address 524 NW 35th St City Miami State FL NRA No. of Floors Land SF MVS Quality LTB Ratio Parking Spaces No. of Units Unit Amenities 4,500 2 6,900 Average 1.53 NA 5 Air Conditioning, Stainless Steel Appliances, Window Treatments Lease Comparable 4 Location County Zip Tax Parcel ID Site & Improvements Year Built 1926 No. of Buildings 1 Land Acres 0.16 Condition Average Parking Type Street Parking Ratio Avg. Unit Size 900 Property Amenities Gated Fence Miami -Dade County 33127 01-3125-021-0150 Asking Rental Data Lease Concessions NA Utilities Included Water, Sewer, Trash Occupancy 80.00% Verification Listing Agent : Paul Lara Units & Rent Description No. Units Unit Size Rent/Month Rent/SF 2BD/1BA 5 900 $2,400 $2.67 Comments The property is a 5 unit apartment building, consisting of all 2 bed 1 bath units. According to the listing agent, the property consist of stainless steel appliances, hurricane impact windows, cold central a/c. He also confirmed that the utilities included are Water/Sewer & Trash. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 67 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Name 46 NW 35th St Address 46 NW 35th St City Miami State FL Lease Comparable 5 Location County Zip Tax Parcel ID Miami -Dade County 33127 01-3125-019-1070 Site & Improvements NRA 2,700 Year Built 1972 No. of Floors 2 No. of Buildings 1 Land SF 5,000 Land Acres 0.11 MVS Quality Average Condition Average LTB Ratio 1.67 Parking Type Surface Parking Spaces 4 Parking Ratio 1 No. of Units 4 Avg. Unit Size 675 Unit Amenities Central Air Conditioning, Window Property Amenities Gated Fence, Laundry Roam Treatments, Stainless Steel Appliances Asking Rental Data Lease Concessions NA Utilities Included Water, Sewer, Trash Occupancy 50.00% Verification Listing Agent : Ivan Ochoa Units & Rent Description No. Units Unit Size Rent/Month Rent/SF 1BD/1BA 2 600 $2,075 $3.46 2BD/1BA 2 750 $2,475 $3.30 Comments The property is a 4 unit apartment building, consisting of 2, 2 bed 1 bath and 2, 1 bed 1 bath. 1 of each unit type are currently vacant. According to the listing agent,the utilities included are Water/Sewer & Trash landscape, storage, and common laundry. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 68 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH RENT COMPARABLES SUMMARY Comp Address City Year Built NRA Condition No. of Units Avg. Unit Size Occupancy 1 225 NW 16th St 1954 8 Miami 2,902 Average 363 2 3 4 1315 NE Miami Ct 1960 35 Miami 17,969 Average 513 268 NW 34th St 1925, 2001 10 Miami 5,574 Average 557 524 NW 35th St 1926 5 Miami 4,500 Average 900 100.00% 100.00% 100.00% 80.00% 5 46 NW 35th St 1972 4 Miami 2,700 Average 675 50.00% RENT COMPARABLES MAP 2 am, LaV IAN MIAMI DESIGN DISTRICT EDGEW,ATER NE20thSt WATChla ICI AM Map data cD2024 Gaggle JDSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 69 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH RENT COMPARABLE UNIT RENT SUMMARY The units for each comparable are summarized as follows, along with the subject's units: Property Name 225 NW 16th St 1315 NE Miami Ct 268 NW 34th St 524 NW 35th St 46 NW 35th St Subject All Units Unit Type Size (SF) Rent/Month Rent/5F 180/18A 363 $1,500 $4.13 Studio 500 $1,855 $3.71 180/18A 550 $2,200 $4.00 Studio 500 $1,700 $3.40 100/18A 450 $1,800 $4.00 280/18A 650 $2,200 $3,38 280/1BA with Den 1,074 $2,298 $2.14 280/18A 900 $2,400 $2.67 18D/18A 600 $2,075 $3.46 260/18A 750 $2,475 $3.30 Studio 288 $1,100 $3.82 18D/18A 436 $1,500 $3.44 28D/18A 560 $1,900 $3.39 The efficiency units for each comparable are summarized as follows, along with the subject's average market rents for efficiency units: Studios/Efficiencies Property Name Unit Type Size (SF) Rent/Month Rent/SF 1315 NE Miami Ct Studio 500 $1,855 $3.71 268 NW 34th 5t Studio 500 $1,700 $3.40 Subject Studio 288 $1,100 $3.82 The one -bedroom units for each comparable are summarized as follows, along with the subject's average market rents for one -bedroom units: Property Name 225 NW 16th 5t 1315 NE Miami Ct 268 NW 34th 5t 46 NW 35th 5t Subject 1 Bedroom Unit Type Size (SF) Rent/Month Rent/SF 160/113A 363 $1,500 $4.13 100/16A 550 $2,200 $4.00 180/16A 450 $1,800 $4.00 180/18A 600 $2,075 $3.46 18D/18A 436 $1,500 $3.44 JOSEPH J. BLADE AND ASSOCIATES. INC. REAL. ESTATE VALUATION AND CONSULTIN 70 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH The two -bedroom units for each comparable are summarized as follows, along with the subject's average market rents for two -bedroom units: 2 Bedroom Property Name Unit Type size (SF) Rent/Month Rent/SF 268 NW 34th St 20D/18A 650 $2,200 $3.38 2BD/1BAwith Den 1,074 $2,298 $2.14 524 NW 35th St 28D/1BA 900 $2,400 $2,67 46 NW 35th St Subject 2BD/1BA 2BD/1BA 750 $2,475 $3.30 560 $1,900 $3.39 ANALYSIS OF RENT COMPARABLES To estimate the value of the subject, an analysis of the rent comparables and the adjustments made to them is utilized to estimate a market rental rate for the subject. Location The adjustment for location reflects the trend that properties in areas of active growth and development, as well as those which offer good accessibility in terms of frontage on major thoroughfares, typically have a higher rental rate than properties which do not offer these attributes, with all other factors held constant. Downward adjustments were made to comparables 2, 3, 4, and 5, as they feature a superior location than the subject due to better access. No adjustments were made to Comparable 1, as it is a similar location as the subject. Age (Year Built) Adjustments are applied to the comparables on the basis of age. Typically, the older a building's improvements, the lower the income it can achieve in the market and the shorter its remaining economic life; thus, it will generate a lower rental rate, with all other factors held constant. The subject was built in 1954. We have made a downward adjustment to Rent Comparable 5 which is newer than the subject. We have made an upward adjustment to Rent Comparable 4 which is older than the subject. The remaining comparables are of similar age to the subject, so no adjustments are made to these comparables. Construction Quality (MVS Quality) Adjustments are applied to the comparables on the basis of quality of construction, design and market appeal. The more inferior a comparable's quality of improvements, the lower the rental rate it can achieve in the market, with all other factors held constant. The subject is an average quality property. All the comparables are similar in terms of construction quality, so no adjustments are made for this factor. Condition Adjustments are applied to the comparables on the basis of relative condition. The more inferior a comparable's condition, the lower the rental rate it can achieve in the market, with all other factors held constant. The subject is in average condition. All the comparables are similar in terms of condition, so no adjustments are made for this factor. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 71 1851 NW ist Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Utilities Included The subject does not include electric utilities in the rental rate. Tenants are responsible for their own electric utility. Rent Comparable 1 features a smaller number of utilities included within the rental rate. We made an upward adjustment to rent comparable 1. The remaining comparables receive the same utilities as the subject, so no adjustments are made to these comparables. Average Unit Size The subject's average unit size is 428 SF. We have made downward adjustments to Rent Comparables 2, 3, 4, and 5 which featured average unit sizes larger than the subject. An upward adjustment is made to Rent Comparable 1 featured a similar average unit size. Unit Amenities The adjustment for the unit amenities package considers that properties which offer extensive useful amenities to their tenants typically rent for a higher price, with all other factors held constant. Central air-conditioning, standard kitchen appliances. All the comparables have similar unit amenities, so no adjustments are made for this factor. Property Amenities The adjustment for the property amenities package considers that properties which offer extensive useful amenities to their tenants typically rent fora higher price, with all other factors held constant. Surrounding fence. All of the comparables have similar unit amenities so no adjustments are made for this factor. MARKET RENT CONCLUSION Therefore, based on the information presented, we conclude to the following market rate rental schedule. The following table summarizes market rent by space type at the subject. Market Rent by Space Type No. of Avg. Unit Market Space Type Units Size Rent Studio 2 288 $1,100 1BD/1BA 2 436 $1,500 2BD/1BA 2 560 $1,900 The studio units in the subject's market are 500 SF, with rental rates ranging from $1,700 to $1,850. The subject's studio unit sizes are a lot smaller than the Comparables. Downward adjustments were made to dictate the market rental range for the subject's studi❑ units. We concluded to a market rent of $1,100 for the studio units, however due to the regulating rents by the OMNI CRA, the units can only rent at a maximum of $723 per studio unit. The 1-bedroom units in the subject's market ranged from 360 to 600 SF, with rental rates ranging from $1,500 to $2,200. The subject's 1-bedroom unit sizes were in the range of the comparables. Emphasis was put on comparable 1 as it was located closest to the subject and features a similar unit size for the 1-bedroom unit type. We concluded to a market rent of $1,500 for the 1-bedroom units, however due to the regulating rents by the OMNI CRA, the units can only rent at a maximum of $1,161 per 1-bedroom unit. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 72 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH The 2-bedroom units in the subject's market ranged from 650 to 1075 SF, with rental rates ranging from $2,200 to $2,475. The subject's 2-bedroom unit sizes are smaller than the Comparables. Downward adjustments were made to dictate the market rental range for the suhject's 7-hedroom units. We concluded to a market rent of $1,900 for the 2-bedroom units, however due to the regulating rents by the OMNI CRA, the units can only rent at a maximum ❑f $1,858 per 2-bedroom unit. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 73 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH INCOME PROJECTION An analysis of the potential gross income for the occupied space, the vacant space and a summary are as follows: Base Rental Revenue - Occupied Space No. of Contract Contract Rent Market Market Contract V. Occupied Space SF Units Rent Rent/Month Method Rent Rent/Month Mkt. Rent Studio 576 2 517,352 $723 5/Month $26,400 $1,100 65.73% 1BD/1BA 872 2 527,864 51,161 $/Month $36,000 $1,500 77.40% 213Df18A 1,120 2 544,592 51,858 $/Month $45,600 $1,900 97,79% Occupied Space Totals 2,568 6 $89,808 $1,247 $108,000 $1,500 83.16% 'Contract Rent = Annua lized rent as of appraisal da to Vacancy and Collection Loss Vacancy and collection loss reflects the fact that most income -producing properties have a certain amount of vacancy and rental income loss. The vacancy factor is determined primarily by current market conditions; however, other determinants such as management competency can also affect this factor. The appraisers' projected expense is exhibited below. Projection - Vacancy and Collection Loss - Subject Direct Cap Projection Per SF ($1.05 ) Per Unit ($449) POTENTIAL AND EFFECTIVE GROSS INCOME The potential gross income figure includes base rent. Effective gross income is income remaining after an allowance for vacancy and collection loss has been made. The following displays our projected year one income. Unit/space Type SF/Units Total Rent % of Rent Studio 2 $17,352 $723.00 19.32% 1BD/1BA 2 $27,864 $1,161.00 3L03% 2BD/1BA 2 $44,592 $1,858.00 49.65% Base Rental Revenue: $89,808 100.00% Total $/SF % of Rent Base Rental Revenue $89,808 $34.97 100.00% Vacancy and Collection Loss @ 3.00% ($2,694) ($1,05) Effective Gross Income $87,114 $33.92 97.00% The subject's projected EGI is exhibited below. Projection - Effective Gross Income - Subject Direct Cap Projection Per SF $33.92 Per Unit $14,519 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 74 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH EXPENSE PROJECTION Typical deductions from the calculated effective gross income fall into two categories for real property, those being fixed and variable expenses. The data from competing properties in the subject's market, were analyzed in estimating appropriate expenses for the subject. The subject's projected expenses are summarized in the following table. Direct Cap Projection Amounts $/Unit Base Rental Revenue $89,808 $14,968 Potential Gross Income $89,808 $14,968 Vacancy and Collection Loss ($2,694) ($449) Effective Gross Income $87,114 $14,519 Amounts $/Unit Real Estate Taxes $18,000 $3,000 Insurance $6,000 $1,000 Utilities $2,100 $350 Repairs and Maintenance $4,800 $800 Contract Services $900 $150 Management Fee $4,356 $726 Payroll $3,000 $500 Administrative $900 $150 Total Operating Expenses $40,056 $6,676 Expense Ratio 45.98% Net Operating Income $47,058 $7,843 Reserves $1,200 $Z00 Total Operating Expenses (for NCO $41,256 $6,876 Expense Ratio 47.36% Net Cash Flow $45,858 $7,643 The following table summarizes the comparable expense data: Comparable 1 2 3 City Miami Miami Miami County Miami -Dade County Miami -Dade County Miami -Dade County NRA 12,142 8,970 13.797 No. of Units 26 12 21 Comparable 1 2 3 $/Unit $/Unit $/Unit Real Estate Taxes $2,365 $1,738 $2,074 Insurance $571 $673 $1,335 Utilities $945 $1,287 $348 Repairs and Maintenance $1,885 $1,751 $748 Contract Services $112 $130 $329 Management Fee $822 $83 $801 Payroll $0 $0 $714 Administrative $414 $1,441 $119 Marketing $0 $0 $48 Total Operating Expenses $7,113 $7,104 $6,516 JDSEPH J. BLAKE AND ASSOCIATES, INC REAL ESTATE VALUATION AND CONSULTING 75 1851 NW 1st Court 23-022-02 THE INCOIVIE CAPITALIZATION APPROACH Normally, the most reliable information is that of the actual expense history of the property being appraised, along with competing properties in the marketplace. Projections of first year expense amounts for individual expense categories are discussed as follows: FIXED EXPENSES These are operating expenses that do not vary with occupancy. These expenses must be paid whether or not the property is occupied. Real Estate Taxes The subjects estimated real estate taxes are detailed in the following table: Projection - Real Estate Taxes - Subject Direct Cap Projection Per SF $7.01 Per Unit $3,000 Insurance Insurance expense typically includes an owner's liability coverage, fire and extended coverage, and potentially other catastrophic insurance coverage. The expense comparables for this category and the appraisers' projected expense are exhibited below. Insurance Expense Comp 1 2 3 Per SF $1.22 $0.90 $2.03 Per Unit $571 $673 $1,335 Projection - Insurance - Subject Direct Cap Projection Per 5F $2.34 Per Unit $1,000 VARIABLE EXPENSES Utilities This expense accounts for common area electric, fuel, telephone, and water and sewer. The expense comparables for this category and the appraisers' projected expense are exhibited below. Utilities _ Expense Comp 1 2 3 Per 5F $2.02 $1.72 $0.53 Per Unit $945 $1,287 $348 Projection - Utilities - Subject Direct Cap Projection Per 5F $0.82 Per Unit $350 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 76 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Each unit is individually metered and tenants are responsible for their own utilities. We have added a smaller utility expense to the subject, to factor far nominal common areas. Repairs and Maintenance This expense accounts for all items of general maintenance and repair, both interior and exterior. This includes building maintenance, maintenance salaries and supplies, security, landscaping, janitorial, trash removal and other miscellaneous operating expenses. The expense comparables for this category and the appraisers' projected expense are exhibited below. Repairs and Maintenance Expense Comp 1 2 3 Per SF $4.04 $2.34 $1.14 Per Unit $1,885 $1,751 $748 Projection - Repairs and Maintenance - Subject Direct Cap Projection Per 5F $1.87 Per Una $800 Contract Services The expense comparables for this category and the appraisers' projected expense are exhibited below. Contract Services Expense Comp 1 2 3 Per SF $0.24 $0.17 $0.50 Per Unit $112 $130 $329 Projection - Contract Services - Subject Direct Cap Projection Per SF $0.35 Per Unit $150 Management Fee The management fee expense is the fee paid to an outside agent for managing the building's operation. The expense comparables for this category and the appraisers' projected expense are exhibited below. Management Fee Expense Comp 1 2 3 Per SF $1.76 $0.11 $1.22 Per Unit $822 $83 $801 % of EGI 7.28% 0.61% 5.00% JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALIDATION AND CONSULTING 77 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Projection- Management Fee - Subject Direct Cap Projection Per SF $1.70 Per Unit $726 % of ECG 5.00% Payroll The expense comparables for this category and the appraisers' projected expense are exhibited below. Payroll Expense Comp 1 2 3 Per SF $0.00 $0.00 $1.09 Per Unit $0 $0 $714 Projection - Payroll - Subject Direct Cap Projection Per SF $1.17 Per Unit $50❑ Administrative The expense comparables for this category and the appraisers' projected expense are exhibited below. Administrative Expense Comp 1 2 3 Per SF $0.89 $1.93 $0.18 Per Unit $414 $1,441 $119 Projection - Administrative - Subject Direct Cap Projection Per SF $0.35 Per Unit $150 TOTAL OPERATING EXPENSES These expenses include those associated with the operation of the property and do not include any reserves for replacements, capital expenditure items or debt service payments. The expense comparables for this category and the appraisers' projected expense are exhibited below. Total Operating Expenses Expense Comp 1 2 3 Per SF $15.23 $9.50 $9.92 Per Unit $7,113 $7,104 $6,516 % of EGI 63.07% 51.51% 40.66% JOSEPH J. BLAKE AND ASSOCIATES. 1NC. KCAL ESTATE VALUATION AND CONSULTING 78 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Projection - Total Operating Expenses - Subject Per SF Per Unit % of EGI Direct Cap Projection $15.60 $ 6,676 45.98% NET OPERATING INCOME Net operating income is that amount of the annual income remaining after applying all expenses incurred in the operation of the subject. This net income affords the owner capital with which to satisfy the debt service and provide a return on the owner's equity. The subject's projected NOI are summarized in the following tables. Projection - Net Operating Income - Subject Direct Cap Projection Per SF $18,32 Per Unit $7,843 Reserves This expense category is often considered a hidden expense of ownership not normally found on an expense statement. From an appraisal standpoint, reserves must be set aside for future replacement of items such as heating and cooling systems, roof replacement, and other short-lived items. We have included reserves of $200 per unit in the cash flow projection. TOTAL OPERATING EXPENSES (FOR NCF) The expense comparables for this category and the appraisers' projected expense are exhibited below. Total Operating Expenses (for NCF) Expense Comp 1 2 3 Per SF $15.23 $9.50 $10.30 Per Unit $7,113 $7,104 $6,766 % of EGI 63 07% 51.51% 42.22% Projection - Total Operating Expenses (for NCF) - Subject Direct Cap Projection Per SF Per Unit %ofEGI $16.0 7 $ 6,876 47.36% NET CASH FLOW The subject's net cash flow is calculated after deducting the cost of tenant improvements, leasing commissions and reserves. The subject's projected NCF are summarized in the following table. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 79 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Projection - Net Cash Flow - Subject Direct Cap Projection Per 5F $17.86 Per Unit $7,643 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 80 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH DIRECT CAPITALIZATION MODEL Direct Capitalization is used to convert an estimate of a single year's net operating income expectancy into an indication of value in one direct step. In this procedure, the income is divided by an appropriate overall capitalization rate (OAR or Cap Rate), which is derived from market evidence. The chosen rate represents the relationship between income and value as reported by participants in the market. We have examined appropriate first year overall rates of return via three methods: the band of investment method, a survey of institutional investors active in the national market, and an examination of recent actual sales reflecting overall rates within the local market. Most emphasis is placed on the last method. Band of Investment -Debt Coverage Ratio To estimate an overall rate, the debt coverage ratio can be multiplied by the mortgage capitalization rate and the loan -to -value ratio. The formula is: Ro = DCR x Rm x M The following table indicates the mortgage rates and terms that were extracted from the most recent edition of the RealtyRates.com Investor Survey. JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING $i 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Commercial Mortgage Rates and Terms Apt. Industrial Office Restaurant Retail Spread Over Base Minimum Maximum Average Interest Rate Minimum Maximum Average Debt Coverage Ratio Minimum Maximum Average Loa n-to-Va I ue Ratio Minimum Maximum Average Amortization (Years) Minimum Maximum Average Terms (Years) Minimum Maximum Average Equity Dividend Rates Minimum Maximum Average Source: Rea ItyRates, 0.72% 1.08% 1.10% 1.78% 0.92% 4.78% 5.78% 5.65% 11.98% 5.88% 2.75% 3.17% 2.88% 4.68% 3.27% 4.89% 5.25% 5.27% 5.95% 5.09% 8.95% 9.95% 9.82% 16.15% 10.05% 6.92% 7.34% 7.05% 8.85% 7.44% 1.00 1.10 1.10 1.10 1.05 1.86 2.05 2.15 2.15 2.15 1.43 1,45 1.63 1.57 1.30 55% 50% 50% 50% 50% 90% 80% 80% 80% 80% 73% 70% 68% 65% 70% 15 15 15 15 15 40 40 40 30 40 26 25 30 22 25 3 40 20.50 4.66% 13.63% 9.59% 3 30 11.46 6.66% 15.11% 11.31% 3 30 8.00 7.18% 15.40% 11.70% 3 15 7.45 10.08% 19.68% 15.36% 3 10 6.20 7.58% 17.13% 12.83% corn Investor Survey, 4th Quarter 2023(3rd Quarter2023 Data) Band of Investment Analysis - Mortgage and Equity The band of investment technique is a capitalization method in which the overall capitalization rate is abstracted from the component parts of the real estate investment. This mortgage -equity capitalization depends on the mortgage and equity market demands for the individual segments of the cash flow generated by the investment. The formula for calculating the overall rate using the mortgage -equity band of investment technique is as follows: Ro=(M*RM)+(E*RE) Ro is the overall rate, M is the loan -to -value ratio, RM is the mortgage capitalization rate or mortgage constant, E is the equity ratio, and RE is the equity capitalization rate. RE is also known as the investor's cash -on -cash rate. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 82 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH Based on the information presented, we conclude to the following mortgage interest rate, loan term, loan to value ratio, debt coverage ratio and equity dividend rate. The resulting overall rate (Ro) is calculated as follows: Capitalization Rate Variables Mortgage Interest Rate 6.50% Debt Coverage Ratio 1.50 Loan Term (Years) 30 Equity Dividend Rate 8.00% Loan To Value Ratio 60.00% Band of Investment Analysis Mortgage Constant Loan Ratio Contributions 0.0758 x 0.6000 = 0.0455 Equity Dividend Rate Equity Ratio 0.0800 x 0.4000 = 0.0320 Band of Investment Capitalization Rate: 0.0775 Rounded: 7.75% Debt Coverage Ratio Analysis Debt Coverage Ratio x Loan to Value Ratio x Mortgage Constant 1.5 x 0.60 x 0.0758 = 0.0683 Debt Coverage Ratio Capitalization Rate: 0.0683 Rounded: 6.75% SURVEY DATA The following information was obtained from a survey of institutional investors active in the national market. National Market Capitalization Rates for Real Estate Investments National Apartment Market Fourth Quarter 2023 Current Quarter Last Quarter Year Ago Overa I Cap Rate (OAR) 4.00%•8.00% 3.75%-8.00% 3.25%-8.00% Average 5.59% 5.28% 4.89% Residual Cap Rate 425%-8.00% 4.00%-8.00% 4.00%-8.00% Average 5.91% 5.67% 5.28% Scarce; PwC Real Estate investorSurvey, 4th Quarter 2023 LOCAL SALES DATA The following table summarizes the capitalization rates of the comparable sales presented in the Sales Comparison Approach. Comparable Sale Capitalization Rates Comp City/State Price Date Cap Rate 2 Miami, FL $3,500,000 7/15/2022 5.01% 3 Miami, FL $1,075,000 10/7/2022 5.75% JOSEPH J. BLAKE AND ASSOCIATES. INC. REAL ESTATE VALUATION AND CONSULTING 83 1851 NW lst Court 23-022-02 THE INCOME CAPITALIZATION APPROACH CONCLUSION A summary of overall rates is exhibited below. Summary of Overall Rates Band of Investment Debt Coverage Ratio PWC National Apartment Market Sales Comparison Approach 7.75% 6.75% 4.00%- 8.00% 5.01%- 5.75% Average 5.59% 5.38% An appropriate first year capitalization rate for the subject is in the range of 5.01% to 5.75%. We conclude to 5.00%. As discussed throughout the report, interest rates have significantly increased over that time frame. When interest rates increase, it generally leads to an increase in cap rates. This is because as interest rates rise, the cost of borrowing money to purchase a property also increases. As a result, investors require a higher return on their investment to compensate for the increased borrowing costs. With the subject having low restricted rents, it holds less risk, yielding a lower capitalization rate. We provided a higher capitalization rate, 5.50%, for the market rents, as it holds a higher risk compared to the restricted rents. We have considered the national averages and have also considered the strength and popularity of the Miami's apartment market among investors. The subject is a fully renovated property in a strong and growing apartment submarket. Primary emphasis is placed on the comparable sales set. These sales had cap rates which ranged from 5.01% to 5.75%. It should be noted that most of the overall rates are based on the actual performance of the property. Most of the properties received renovations, and were occupied at the time of the sale. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 84 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH STABILIZED PRO FORMA - OMNI CRA RENTAL. RATES Unit/Space Type SF/Units Total Rent % of Rent Studio 2 $17,352 $723.00 19.32% 1BD/1BA 2 $27,864 $1,161.00 31.03% 2BD/1BA 2 $44,592 $1,858.00 49.65% Base Rental Revenue: $89,808 100.00% Total $/SF °% of Rent Base Rental Revenue $89,808 $34,97 100.00% Vacancy and Collection Loss @ 3.00% ($2,694) ($1.05) Effective Gross Income $87,114 $33.92 97.00% Total $/SF % of EGI Real Estate Taxes $18,000 $7.01 20.66% Insurance $f000 $2.34 6.89% Utilities $2,,100 $0.82 2.41% Repairs and Maintenance $4,800 $1.87 5.51% Contract Services $900 $0.35 1.03% Management Fee $4,356 $1.70 5.00% Payroll $3,000 $1.17 3.44% Administrative $900 $0.35 1.03% Total Expenses (NOI) $40,056 $15.60 45.98% Net Operating Income (NOI) $47,058 $18.32 54.02% Reserves $1,200 $0.47 1.38% Total Expenses (NCF) $41,256 $16.07 47.36% Net Cash Flow (NCF) $45,858 $17,86 52.64% DIRECT CAPITALIZATION METHOD NCF $45,858 Divided by OAR 5.00% Indicated Value $917,161 DIRECT CAPITALIZATION CONCLUSION The indicated value estimate for the subject is calculated as follows. Date of Rounded Final Perspective Value Value Indicated Value _ Value Prospective "As is.. 3/1/24 $917,161 1 $920,000-1 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 85 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH ADUSTMENT FOR INTEREST APPRAISED The Rental Regulatory Agreement is linked to the Forgivable Loan Agreement and the utilization of the Omni CRA funds to rehabilitate the property. The subject must always, during the affordability period and subject to existing tenants, maintain the following unit types: For the two 2-bedroom units, the rental rate must be at or below the rental rates established for households at or below 80% of the area median income ($1,858), as determined by the U.S Departments of Housing and Urban development (HUD). For the two 1-bedroom units, the rental rate must be at or below the rental rates established for households at or below 60% of the area median income ($1,161). For the two studios/efficiencies, the rental rate must be at or below the rental rate established for households at or below 40% of the area median income ($723). The unit rents may be adjusted annually based on the HUD tables. Therefore, the fee simple value is adjusted downward for the interest appraised to arrive at the leased fee value for the property. This value indicates the prospective market value at completion and stabilization of the leased fee estate considering rental restrictions. STABILIZED PRO FORMA — AT MARKET Unit/space Type SF/Units Total Rent % of Rent Studio 2 $26,400 $1,100.00 24A4% 1BD/1BA 2 $36,000 $1,500.00 33.33% 2BD/1BA 2 $45,600 $1,900.00 42.22% Base Rental Revenue: $108,000 100.00% Total $/SF %of Rent Base Rental Revenue $108,000 $42.06 100.00% Vacancy and Collection Loss @ 3.00% ($3,240) ($1.26) Effective Gross Income $104,760 $40.79 97,00% Total $/SF % of EGI Real Estate Taxes $18,000 $7.01 17.18% Insurance $6,000 $2.34 5.73% Utilities $2,100 $0.82 2.00% Repairs and Maintenance $4,800 $1.87 4.58% Contract Services $900 $0.35 0.86% Management Fee $3,143 $1.22 3.00% Payroll $3,000 $1.17 2.86% Administrative $900 $0.35 0.86% Total Expenses (NOI) $38,843 $15.13 37.08% Net Operating Income (NOI) $65,917 $25.67 62.92% Reserves $1,200 $0.47 1.15% Total Expenses (NCF) $40,043 $15.59 38.22% Net Cash Flow (NCF) $64,717 $25.20 61.78% DIRECT CAPITALIZATION METHOD NCF $64,717 Divided by OAR 5.50% Indicated Value $1,176,676 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 86 1851 NW 1st court 23-022-02 THE INCOME CAPITALIZATION APPROACH Adj ustement for interest appraised Fee Simple Market Value Leased Fee Market Value $1,176,676 $917,161 Value Differential $259 515 The fee simple value is adjusted downward for the interest appraised to arrive at the leased fee value for the property. This value indicates the prospective market value at completion and stabilization of the leased fee estate considering rental restrictions. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 87 1851 NW 1st Court 23-022-02 THE INCOME CAPITALIZATION APPROACH INCOME CAPITALIZATION APPROACH CONCLUSION The direct capitalization method is used to value the subject. We have relied on the direct capitalization method for the subject's final value estimate via the Income Capitalization Approach. Perspective Value Date of Value Final Value Prospective "As Is" 3/1/24 $920,000 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 88 1851 NW lst Court 23-022-02 THE SALES COMPARISON APPROACH The Sales Comparison Approach is based upon the assumption that a prudent buyer would not pay more for a property than it would cost him or her to acquire a comparable substitute property. This approach involves the direct comparison of the property being appraised to other similar properties that have sold or are currently being offered for saIP_ Sinr.P nn two prnperties are ever identical, adjustments fnr differences in quality, location, size and market appeal are often necessary. The reliability of this technique is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability between each sale and the subject, the date of the sale in relation to the date of the appraisal (taking into account market changes during the interim), and consideration of any atypical conditions affecting price or terms of the sale. The price a typical purchaser pays is usually the result of an extensive process in which available alternatives are compared. There were no rent restricted sale comparables in the immediate market of the subject. Market rent sale comparables were used. The property that is ultimately purchased typically represents the best available balance between the buyer's specifications and the purchase price. Verified and analyzed data will generally provide good evidence of value, if it represents typical actions and reactions of buyers and sellers active in the market. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 89 1851 NW 1st Court 23-022-02 THE SALES COMPARISON APPROACH Comparable 1 Name Address City State County Zip Tax Parcel ID Recordation NRA No. of Buildings Land SF MVS Quality LTB Ratio Parking Spaces No. of Units Unit Amenities Price Per 5F NOI NOI/Unit 1745 NW 1st PI 1745 NW 1st PI Miami FL Miami -Dade County 33136 01-3125-048-1030 33811-0548 3,959 1 6,360 Average 1.61 NA 10 Wall unit Air Conditioning, $505.18 N/A N/A Transaction Date Price Grantor Grantee Property Rights Financing Conditions of Sale Verification Site & Improvements Year Built No. of Floors Land Acres Condition Parking Type Parking Ratio Avg. Unit Size Property Amenities Financial Data Price Per Unit NOI/SF Occupancy Cap Rate 6/21/23 $2,000,000 1745 Wynwood LLC MRM 8993 Corp. Fee Si mole Estate Cash to Seller Arm's length Seller : Michael Abadi-Balid 1951 2 0.15 Average Street 396 Gated Fence $200,000 N/A 90.00% N/A Comments On June 21st, 2023, the property located at 1745 NW 1st PI, Miami FL33136 sold for $2,000,000, or $200,000 per unit. The subject is a 10 unit, two story apartment, with a net rentable area of 3,959 square feet, According to the seller, he stated that before the sale of the property a full renovation was done to the property. New impact window, new plumbing, new electrical, new appliances, new interior finishes, new paint on the interior and exterior of the property. He also stated that 1 unit was vacant at the sale of the property. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 90 1851 NW 1st Court; 23-022-02 THE SALES COMPARISON APPROACH Comparable Z • n rag, 11111 Transaction Name 1710 NW 1st Ct Date 7/15/22 Address 1710 NW 1st Ct Price $3,500,000 City Miami Grantor Apple 1710 LLC State FL Grantee 1710 NW 1st LLC County Miami -Dade County Property Rights Fee Si mpl a Estate Zip 33136 Financing Cash to Seller Tax Parcel ID 01-3125-048-1060 Conditions of Sale Arm's length Recordation 33296-1781 Verification Buyer/Seller Broker :Alec Site & Improvements NRA 9,167 Year Built 1951, 1954 No. of Buildings 2 No. of Floors 2 Land SF 12,720 Land Acres 0.29 MVS Quality Average Condition Average LTB Ratio 1.39 Parking Type Surface Parking Spaces 8 Parking Ratio No. of Units 20 Avg. Unit Size 458 Unit Amenities Central air-conditioning, Property Amenities Gated Fence Financial Data Price Per 5F $381.80 Price Per Unit $175,000 NOI $175,350 NOI/SF $19.13 NOI/Unit $8,768 Occupancy 95.00% Cap Rate 5.01% Comments On July 15th, 2022, the property located at 1710 nw 1st Ct, Miami FL 33136 sold for $3,500,000, or $175,000 per unit. The subject is a 20 unit, two story apartment, with a net rentable area of 9,167 square feet. According to the Buyer/Seller broker, he stated that the property was fully gutted and renovated, prior to the sale of the property. He stated that everything was replace, new flooring, new impact windows and doors, new plumbing, new electrical, a new roof and new interior and exterior paint on the property. He also confirmed that the property sold at a 5.01% cap rate. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 91 1851 NW 1st Court 23-022-02 THE SALES COMPARISON APPROACH Name Address City State County Zip Tax Parcel ID Recordation NRA No. of Buildings Land SF MVS Quality LTB Ratio Parking Spaces No. of Units Unit Amenities Price Per 5F NOI NOI/Unit 172 NW 12th St 172 NW 12th St Miami FL Miami -Dade County 33136 01-3136-009-2000 334240800 2,618 1 4,750 Average 1.81 NA 6 Wall unit Air Conditioning, $410.62 $61,813 $10,302 Comparable 3 Transaction Date Price Grantor Grantee Property Rights Financing Conditions of Sale Verification Site & Improvements Year Built No. of Floors Land Acres Condition Parking Type Parking Ratio Avg. Unit Size Property Amenities Financial Data Price Per Unit NOI/SF Occupancy Cap Rate 10/7/22 $1,075,000 Sa bl edore Corp. 172 Twelfth LLC Fee Si mole Estate Cash to Seller Arm's length Listing Broker : Laura Sanchez 1958 2 0.11 Average Street 436 Gated Fence $179,167 $23.61 100.00% 5.75% Comments On October 7th, 2022, the property located at 172 NW 12th St, Miami FL 33136 sold for $1,075,000, or approxiamately $179,000 per unit. The subject is a 6 unit, two story apartment, with a net rentable area of 2,664 square feet. According to the listing broker, she stated that the exterior of the property was recently repainted in 2020. She also stated that the interior of the property was remodeled with new flooring, new stainless steel appliances and new interior paint. She also confirmed that the property sold at a 5.75%cap rate. JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 92 1851 NW 1st Court 23-022-02 THE SALES COMPARISON APPROACH oogle IMPROVED SALES SUMMARY Comp 1 2 3 Address Recordation Price Land 5F NRA No. of Units City Year guilt Date LIB Ratio Price per SF Avg. Unit Size Prise per Unit Cap Rate 1745 NW 1st PI 33811-0548 $2,000,000 6,360 3,959 10 Miami 1951 06/21/2023 1.61 $505.18 396 $200,000 1710 NW 15tCt 33296-1781 53,500,000 12,720 9,167 20 Miami 1951,1954 07/15/2022 1.39 $381.80 458 $175,000 5.01%n 172 NW 12th St 334240800 51,075,000 4,750 2,618 6 Miami 1958 10/07/2022 1.81 $410.62 436 $179,167 5.75% SALES COMPARABLES MAP NW Tina ST C NW 2.1 st St 2 1 11 NW 12th St NWb1lhS! \\',—•.. OVERT\OWN NW 10th St NW 22nd St NE 22nd St NW 21stSt 1 f NW 201h 5l NW 2Oth St NE 2Ot3 St t 9 NE 19th St n n to NW 19th Si { cry= er Lia ra Y Z 8ira st, a 1 x • 1 NV4 hilt St I. m N s o. 11 k > e i� ] ID t N'' 1511151 NE 15th St l TOWN SQUARE NW 11 th St z m m 0 CI CIL .I t � i r Map data t2024 Googie NW 1011 St IMPROVED SALES ANALYSIS To estimate the value of the subject, we analyzed the sale comparables and have made adjustments for varying characteristics. Property Rights Conveyed The property rights conveyed for each sale are shown in the adjustment grid. The subject is valued in this report on the basis of a leased fee estate. The fee simple value is adjusted downward for the interest appraised to arrive at the leased fee value for the property. This value indicates the prospective market value at completion and stabilization of the leased fee estate considering rental restrictions. These adjustments are made at the conclusion. No adjustments are made for this factor within the sales comparison grid. JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 93 1851 NW 1st Court 23-022-02 THE SALES COMPARISON APPROACH Financing Terms The financing terms for each sale are shown in the adjustment grid. The subject is valued in this report on the basis of a cash to seller transaction. No adjustments are made for this factor. Conditions of Sale The conditions of sale for each sale are shown in the adjustment grid. The subject is valued in this report on the basis of an arm's length transaction. No adjustments are made for this factor. Expenditures after Sale The expenditures after sale for each comparable are shown in the adjustment grid. No adjustments are made for this factor. Market Conditions In terms of an adjustment for market conditions, from the sales shown, it is somewhat subjective to determine an exact adjustment. We have applied a 3% adjustment to each comparable, annualized from the date of each sale to March 1, 2024. Location The adjustment for location realizes that properties in areas of active growth and development, as well as those which offer good accessibility in terms of frontage on major thoroughfares, typically sell for a higher price per SF than properties which do not offer these attributes, with all other factors held constant. The relative desirability of each site in relation to the subject is shown in the adjustment grid. The subject is in the City of Miami's Omni CRA neighborhood. The Omni Community Redevelopment Agency (Omni CRA) carries out renovation and revitalization activities within the boundaries of the designated redevelopment area. Sales 1, 2 and 3 are in the same neighborhood, featuring a similar location. No adjustments are made for this factor. Age (Year Built) Logical adjustments are applied to the comparables on the basis of age. Typically, the older a building's improvements, the lower the income it can achieve in the market; thus, it will sell for a lower price, with all other factors held constant. The subject was built in 1954. All the comparable sales are of similar age as the subject so no adjustments are made for this factor. Construction Quality (MVS Quality) Logical adjustments are applied to the comparables on the basis of quality of construction, design and market appeal. The more inferior a comparable's quality of improvements, the lower the value it can achieve in the market, with all other factors held constant. The subject is an average quality property. All the comparables are similar in terms of quality, so no adjustments are made for this factor. Condition Logical adjustments are applied to the comparables on the basis of relative condition. The more inferior a comparable's condition, the lower the value it can achieve in the market, with all other factors held constant. The subject is in average condition. All the comparables are similar in terms of condition, so no adjustments are made for this factor. JOSEPH J. BLAKE AND ASSOCIATES, 1NC. REAL ESTATE VALUATION AND CONSULTING 94 1851 NW 1st Court 23-022-02 THE SALES COMPARISON APPROACH Occupancy Adjustments must also be made for income characteristics, which appear to have a significant effect on sale price in the case of properties within the subject's market. Typically, properties that are fully leased generally sell for higher prices than those which are not at a stabilized occupancy level. The subject is currently 4% occu pied. Although the subject is vacant, it would lease up fast, due to the low restricted rents. No adjustments are made for this factor. Average Unit Size In terms of average unit size, it is noted that properties with a smaller average unit size typically self for a higher price per SF than properties with a larger average unit size, with all other factors held constant. On a per unit size basis, properties with a larger average unit size typically sell for a higher price per unit than properties with a smaller average unit size, with all other factors held constant. The subject's average unit size is 428 SF. All of the comparables feature a similar average unit size, so no adjustments are made for this factor. Unit Amenities The adjustment for the unit amenities package considers that properties which offer extensive useful amenities to their tenants typically rent fora higher price, with all other factors held constant. Central air-conditioning, standard kitchen appliances. All the comparables feature similar unit amenities, so no adjustments are made for this factor. Property Amenities The adjustment for the property amenities package considers that properties which offer extensive useful amenities to their tenants typically rent for a higher price, with all other factors held constant. Surrounding fence. All the comparables feature similar property amenities, so no adjustments are made for this factor. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 95 1851 NW lst Court 23-022-02 THE SALES COMPARISON APPROACH IMPROVED SALES ANALYSIS CONCLUSION The previously -described adjustments are summarized in the following grid. The percentage adjustments are used to show the emphasis placed on each adjustment, and are not based on a paired sales analysis. IMPROVED SALES ADJUSTMENT GRID (PRICE/UNIT) Analysis Grid Subject Comp 1 Comp 2 Comp 3 Name 1851 NW 1st Court Address 1851 NW 1st Court City Miami State FL Date Price No, of Units 6 1745 NW 1st PI 1745 NW 1st PI Miami FL 6/21/2023 $2,000,000 10 17' 0 NW 1st Ct 17' 0 NW 1st Ct Miami FL 7/15/2022 $3,500,000 20 172 NW 12th St 172 NW 12th St Miami FL 10/7/2022 $1,075,000 6 Price per Unit $200,000 $175,000 $179,167 Transactional AdjUstme►►ts PropertyRights Leased Fee Estate Financing Cashto5eller Conditions of Sale Arms Length Fee Simple Estate 0% Cashto5eller 0% Arm's length 0% Fee Simple Estate 0% Cashto5eller 0% Arm's length 0% Fee Simple Estate 0% Cash toSeller 0% Arm's length 0% Market Trends Through 3/1/2024 3% 2% 4.94% 4,23% Adjusted Price per Unit $204,160 $183,645 $186,745 Property Adjustments Location Similar Similar Similar %Adjustment $ Adjustment 0% $0 0% 50 0% $0 Year Built 1954 1951 1951, 1954 1958 %Adjustment $ Adjustment 0% $❑ 0% 50 0% 50 MVS Quality Average Average Average Average % Adjustment $ Adjustment 0°.6 $0 0% 50 0% 50 Condition Average Average Average Average % Adj ustment $ Adjustment 0% $0 0% $0 0% $0 Occupancy 0.00% 90.00% 95.00% 100.00% %Adjustment $ Adjustment 0©% $0 0% $0 0% $0 Avg. Unit Size 428 396 458 436 %Adjustment $ Adjustment 0% 50 0% 50 0% 50 Unit Amenities Central air- conditi oning, standard kitchen appliances. Wall unit Air Conditioning, Standard Kitchen Appliances. Centralair- conditioning, standard kitchen appliances. Wall unit Air Conditioning, Stainless steel appliances. % Adjustment $ Adjustment 0% 50 0% 50 0% 50 Property Amenities Surrounding fence. Gated Fence Gated Fence Gated Fence %Adjustment $ Adjustment 0% $0 ❑% $0 0% $0 Adjusted Price per Unit $204,160 $183,645 $186,745 Property Adjustments (Net) Property Adjustments (Gross) 0% 0% 0% 0% 0% 0% JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 96 1851 NW 1st Court 23-022-02 THE SALES COMPARISON APPROACH PRICE/UNIT METHOD CONCLUSION The comparables show a price/Unit range of $183,645.00 /Unit to $204,160.00 /Unit on an adjusted basis, with an average of $191,516.81 /Unit. Based on the comparables and the adjustments made to them, we conclude to a value in the range of $185,000.00/Unit to $205,000.00 /Unit. We conclude to $190,000.00/Unit. Value Conclusion $190,000.00 /Unit Multiplied bySubjectSize 6 Units Indicated Value $1,140,000 Emphasis is placed on all comparables, in consideration for the final concluded value. Adjustment for Date of Interest Rounded Final Perspective Value Value Indicated Value Appraised Adjusted Value Value Prospective "As Is" 3/1/24 $1,140,000 ($259,515) $880,485 $880,000 The fee simple value is adjusted downward for the interest appraised to arrive at the leased fee value for the property. This value indicates the prospective market value at completion and stabilization of the leased fee estate considering rental restrictions. This calculation is shown in the Income Approach. SALES COMPARISON APPROACH CONCLUSION We have used the price per unit as the unit of comparison to value the subject. We have relied on the price per unit method for the subject's final value estimate via the Sales Comparison Approach. Date of Perspective Value Value Final Value Prospective "As Is" 3/1/24 $880,000 JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 97 1851 NW lst Court 23-022-02 RECONCILIATION AND FINAL VALUE The Sales Comparison and the Income Capitalization Approaches were employed in the valuation of the subject. The values derived via these methods are shown below: Income Capitalization Sales Comparison Perspective Value Date of Value Direct Cap Condusion Condusion Prospective "As Is" 3/1/24 $920,000 $920,000 $880,000 In each of these approaches, we have attempted to summarize all the input data and have briefly explained our methodology in processing and/or analyzing this data. Insofar as we have been able to determine, this data has been obtained from reliable sources and was accepted as being accurate. We give full recognition to the inherent weaknesses in each of the approaches. It should be acknowledged that because the appraisal of real property is not an exact science, professional judgment on our part becomes a component of each of the recognized approaches. In the Cost Approach, accrued depreciation, if any, is deducted from the replacement cost of the improvements and was added to the land value. The resultant figure indicates the value of the entire property via the Cost Approach. The Sales Comparison Approach is dependent on a direct comparative technique of the sale, or offering of, similar properties. Since no two properties are ever identical, it is necessary to analyze and determine the degree of comparability between the subject and the sale properties for differences. The primary unit of comparison utilized in the valuation of the subject was the price per unit. A number of recent sales of comparable properties were uncovered, and after the adjustment process, we concluded to a value/unit for the subject. Based on the sales presented and their similarity to the subject, supporting emphasis is placed on the Sales Comparison Approach. In the Income Capitalization Approach, the gross annual income potential of the subject is estimated via a comparison with the rents being charged at competitive properties, and with consideration to the existing leases at the property. After estimating gross income potential, deductions are made for the appropriate vacancy, collection loss, and all applicable expenses incurred through the ownership of the property. The direct capitalization method is employed in the Income Capitalization Approach. The direct capitalization method is the primary method of valuation used by the class of investors that would potentially purchase or sell a property similar to the subject. Due to the availability of data relating to market rental rates, expenses and overall capitalization rates, a high level of reliability is placed on this method. The Income Capitalization Approach is given primary consideration in the reconciliation process. In the final analysis of the subject, we consider the influence of the approaches used in relation to one another and in relation to the subject and, since buyers and sellers of similar properties are primarily interested in the monetary benefits of ownership, the Income Capitalization Approach is the most reliable technique in forming an opinion of the subject's value. Based on the analysis of pertinent physical and economic factors, we have arrived at the following value opinions: Perspective Prospective Value "As Ms" Date of Value Interest Appraised Value Opinion 3/1/24 Leased Fee Estate $920,000 This appraisal is not based on any extraordinary assumptions. There are no hypothetical conditions for this appraisal. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 98 1851 NW lst Court 23-022-02 ADDENDA JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Air Rights The right to undisturbed use and control of designated air Appraisal Institute, The space above a specific land area within stated elevations. Dictionary of Real Air rights may be acquired to construct a building above Estate Appraisal, 7th the land or building of another or to protect the light and Ed. (Chicago: Appraisal air of an existing or proposed structure on an adjoining Institute, 2022) lot. Air rights do not always include development rights. As Is Market Value The estimate of the market value of real property in its Appraisal Institute, The current physical condition, use, and zoning as of the Dictionary of Real appraisal date. (Interagency Appraisal and Evaluation Estate Appraisal, 7th Guidelines) Note that the use of the "as is" phrase is Ed. (Chicago: Appraisal specific to appraisal regulations pursuant to FIRREA Institute, 2022) applying to appraisals prepared for regulated lenders in the United States. The concept of an "as is" value is not included in the Standards of Valuation Practice of the Appraisal Institute, Uniform Standards of Professional Appraisal Practice, or International Valuation Standards. Band of Investment A technique in which the capitalization rates attributable Appraisal Institute, The to components of an investment are weighted and Dictionary of Real combined to derive a weighted -average rate attributable Estate Appraisal, 7th to the total investment (i.e., debt and equity, land and Ed. (Chicago: Appraisal improvements). Institute, 2022) Condominium An attached, detached, or stacked unit within or attached Appraisal Institute, The to a structure with common areas that are held as tenants Dictionary of Real in common (an undivided interest) with other owners in Estate Appraisal, 7th the project. The units can be residential, commercial, Ed. (Chicago: Appraisal industrial, or parking spaces or boat docks. These units are Institute, 2022) commonly defined by state laws in their locations. Because units can be stacked on top of other units, these units can be defined both vertically and horizontally. Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service Appraisal Institute, The (DCR = NOI/IM), which measures the relative ability of a Dictionary of Real property to meet its debt service out of net operating Estate Appraisal, 7th income; also called debt service coverage ratio (DSCR). A Ed. (Chicago: Appraisal larger DCR typically indicates a greater ability for a Institute, 2022) property to withstand a reduction of income, providing an improved safety margin for a lender. Deferred Maintenance Items of wear and tear on a property that should be fixed Appraisal Institute, The now to protect the value or income -producing ability of Dictionary of Real the property, such as a broken window, a dead tree, a leak Estate Appraisal, 7th in the roof, or a faulty roof that must he completely Ed. (Chicago: Appraisal replaced. These items are almost always curable. Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Depreciation 1. In appraisal, a loss in the value of improvements Appraisal Institute, The from any cause; the difference between the cost Dictionary of Real of an improvement on the effective date of the Estate Appraisal, 7th appraisal and the value of the improvement on Ed. (Chicago: Appraisal the same date. Institute, 2022) 2. In accounting, an allocation of the original cost of an asset, amortizing the cost over the asset's fife; calculated using a variety of standard techniques. Discount Rate (Y) A rate of return on capital used to convert future Appraisal Institute, The payments or receipts into present value. Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Effective Gross Income (EGI) The anticipated income from all operations of the real Appraisal Institute, The estate after an allowance is made for vacancy and Dictionary of Real collection losses and an addition is made for any other Estate Appraisal, 7th income. Ed. (Chicago: Appraisal Institute, 2022) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property Appraisal Institute, The and its effective gross income. Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Entrepreneurial Profit 1. A market -derived figure that represents the Appraisal Institute, The amount an entrepreneur received for his or her Dictionary of Real contribution to a past project to compensate for Estate Appraisal, 7th his or her time, effort, knowledge, and risk; the Ed. (Chicago: Appraisal difference hetween the total cost of a property Institute, )077) (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. 2. In economics, the actual return on successful management practices, often identified as coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Equity Capitalization Rate (RE) An income rate that reflects the relationship between one year's equity cash flow and the equity investment; also called the cash -on -cash rate, cash flow rate, cash throw- off rate, or equity dividend rate. (RE. IENVE, or Pre -Tax Cash Flow/Equity Invested) Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Equity Ratio (E) The ratio between the down payment paid on a property and its total price; the fraction of the investment that is unencumbered by debt. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Uniform Standards of Professional Appraisal Practice 2020-2021 Ed. (Washington, DC: The Appraisal Foundation, 2019 (extended through December 31, 2023)). External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be either temporary or permanent. There arP two forms of PxtPrnal nhsolescenr_P: ernnnmir and locational. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal lnstitutp, 2022) Extraordinary Assumption An assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uniform Standards of Professional Appraisal Practice 2020-2021 Ed. (Washington, DC: The Appraisal Foundation, 2019 (extended through December 31, 2023)). Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Gross Building Area (GBA) 1. Total floor area of a building, excluding Appraisal Institute, The unenclosed areas, measured from the exterior of Dictionary of Real the walls of the above -grade area. This includes Estate Appraisal, 7th mezzanines and basements if and when typically Ed. (Chicago: Appraisal included in the market area of the type of Institute, 2022) property involved. 2. Gross leasable area plus all common areas. 3. For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space. Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive Appraisal Institute, The use of tenants, including basements and mezzanines; Dictionary of Real measured from the center of joint partitioning to the Estate Appraisal, 7th outside wall surfaces. Ed. (Chicago: Appraisal Institute, 2022) Highest and Best Use 1. The reasonably probable use of property that Appraisal Institute, The results in the highest value. The four criteria that Dictionary of Real the highest and best use must meet are legal Estate Appraisal, 7th permissibility, physical possibility, financial Ed. (Chicago: Appraisal feasibility, and maximum productivity. Institute, 2022) 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW 1st Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source 4. [For fair value determination] The use of a nonfinancial asset by market participants that would maximize the value of the asset or the group of assets and liabilities (for example, a business) within which the asset would be used. (FASB Glossary) The highest and best use of a nonfinancial asset takes into account the use that is physically possible, legally permissible, and financially feasible. (FASB 820-10-35-10B). The highest and best use of a nonfinancial asset establishes the valuation premise used to measure the fair value of the asset, as follows: (a) The highest and best use of a nonfinancial asset might provide maximum value to market participants through its use in combination with other assets as a group (as installed or otherwise configured for use) or in combination with other assets and liabilities (for example, a business). (b) The highest and best use of the asset might provide maximum value to market participants on a standalone basis. (FASB 820-10-35-10E) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Uniform Standards of Professional Appraisal Practice 2020-2021 Ed. (Washington, DC: The Appraisal Foundation, 2019 (extended through December 31, 2023)). Insurable Value A type of value for insurance purposes. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Internal Rate of Return (IRR) The annualized yield rate or rate of return on capital that is generated within an investment or portfolio over a period of ownership. Alternatively, the indicated return on capital associated with a projected or pro forma income stream. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW 1st Court 23-022-02 GLOSSARY OF VALUATION! TERMS Term Definition Source Leased Fee Interest The ownership interest held by the lessor, which includes Appraisal Institute, The the right to receive the contract rent specified in the lease Dictionary of Real plus the reversionary right when the lease expires. Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Leasehold Estate (Leasehold Interest) The right held by the lessee to use and occupy real estate Appraisal Institute, The for a stated term and under the conditions specified in the Dictionary of Real lease. Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Loan -to -Value Ratio (M) The ratio between a mortgage loan and the value of the Appraisal Institute, The property pledged as security, usually expressed as a Dictionary of Real percentage; also called loan ratio or LTV. Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Marketing Time An opinion of the amount of time to sell a property Appraisal Institute, The interest at the concluded market value or at a benchmark Dictionary of Real price during the period immediately after the effective Estate Appraisal, 7th date of an appraisal. Marketing time differs from Ed. (Chicago: Appraisal exposure time, which precedes the effective date of an Institute, 2022) appraisal. Market Rent The most probable rent that a property should bring in a Appraisal Institute, The competitive and open market under all conditions Dictionary of Real requisite to a fair lease transaction, the lessee and lessor Estate Appraisal, 7th each acting prudently and knowledgeably, and assuming Ed. (Chicago: Appraisal the rent is not affected by undue stimulus. Implicit in this Institute, 2022) definition is the execution of a lease as of a specified date under conditions wherPhy • Lessee and lessor are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and • The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (Tls). JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW ist Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Market Value A type of value, stated as an opinion, that presumes the Uniform Standards of transfer of a property (i.e. a right of ownership or a bundle Professional Appraisal of such rights), as of a certain date, under specific Practice 2020-2021 Ed. conditions set forth in the value definition that is (Washington, DC: The identified by the appraiser as applicable in an appraisal. Appraisal Foundation, 2019 (extended through December 31, 2023)). Mortgage Capitalization Rate (RM) The capitalization rate for debt; the ratio of the annual Appraisal Institute, The debt service to the remaining principal balance of the Dictionary of Real mortgage loan. The mortgage capitalization rate (RM) is Estate Appraisal, 7th equivalent to the periodic (monthly, quarterly, annual) Ed. (Chicago: Appraisal mortgage constant multiplied by the number of payments Institute, 2022) per year on a given loan on the day the loan is initiated. RM = Annual Debt Service/Mortgage Principal Mortgage Debt Service (IM) The annualized periodic payment for interest on and Appraisal Institute, The retirement of the principal of a mortgage loan; also called Dictionary of Real total mortgage debt service. The abbreviation IM refers to Estate Appraisal, 7th the annual debt service. These terms often refer to annual Ed. (Chicago: Appraisal debt service, but clarification is often required if they are Institute, 2022) monthly, quarterly, or annual because many mortgages are paid monthly. Net Income Multiplier (NIM) The relationship between price or value and net operating Appraisal Institute, The income expressed as a factor; the reciprocal of the overall Dictionary of Real capitalization rate. Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Net Operating Income (NOI or lo) The actual or anticipated net income that remains after all Appraisal Institute, The operating expenses are deducted from effective gross Dictionary of Real income but before mortgage debt service and book Estate Appraisal, 7th depreciation are deducted. Note: This definition mirrors Ed. (Chicago: Appraisal the convention used in corporate finance and business Institute, 2022) valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). Net Rentable Area (NRA, Rentable Area) For office or retail buildings, the tenant's pro rata portion Appraisal Institute, The of the entire office floor, excluding elements of the Dictionary of Real building that penetrate through the floor to the areas Estate Appraisal, 7th below. The rentable area of a floor is computed by Ed. (Chicago: Appraisal measuring to the inside finished surface of the dominant Institute, 2022) portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Overall Capitalization Rate (Ro) The relationship between a single year's net operating Appraisal Institute, The income expectancy and the total property price or value Dictionary of Real (Ro = to IVo). Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Prospective Market Value "As Completed" and "As Stabilized" A prospective market value may be appropriate for the Appraisal Institute, The valuation of a property interest related to a credit decision Dictionary of Real for a proposed development or renovation project. Estate Appraisal, 7th According to USPAP, an appraisal with a prospective Ed. (Chicago: Appraisal market value reflects an effective date that is subsequent Institute, 2022) to the date of the appraisal report. Prospective value opinions are intended to reflect the current expectations and perceptions of market participants, based on available data. Two prospective value opinions may be required to reflect the time frame during which development, construction, and occupancy will occur. The prospective market value —as completed— reflects the property's market value as of the time that development is expected to be completed. The prospective market value —as stabilized— reflects the property's market value as of the time the property is projected to achieve stabilized occupancy. For an income -producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties. (See USPAP Statement 4* and Advisory Opinion 17.) (Interagency Appraisal and Evaluation Guidelines) Prospective Opinion of Value A value opinion effective as of a specified future date. The Appraisal Institute, The term does not define a type of value. Instead, it identifies Dictionary of Real a value opinion as being effective at some specific future Estate Appraisal, 7th date. An opinion of value as of a prospective date is Ed. (Chicago: Appraisal frequently sought in connection with projects that are Institute, 2022) proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Replacement Cost The estimated cost to construct, at current prices as of a Appraisal Institute, The specific date, a substitute for a building or other Dictionary of Real improvements, using modern materials and current Estate Appraisal, 7th standards, design, and layout. Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective Appraisal Institute, The date of valuation, of a substitute for the building being Dictionary of Real valued, using modern materials and current standards, Estate Appraisal, 7th design, and layout for insurance coverage purposes Ed. (Chicago: Appraisal guaranteeing that damaged property is replaced with new Institute, 2022) property (i.e., depreciation is not deducted). Reproduction Cost The estimated cost to construct, at current prices as of the Appraisal Institute, The effective date of the appraisal, a duplicate or replica of the Dictionary of Real building being appraised, using the same or similar Estate Appraisal, 7th materials, construction standards, design, layout, and Ed. (Chicago: Appraisal quality of workmanship and embodying all the Institute, 2022) deficiencies, superadequacies, and obsolescence of the subject building. Residual Capitalization Rate (RN) An overall capitalization rate used to estimate the resale Appraisal Institute, The price of a property; usually applied to the anticipated Dictionary of Real stabilized income for the year beyond the holding period; Estate Appraisal, 7th also called terminal capitalization rate. Ed. (Chicago: Appraisal Institute, 2022) Retrospective Value Opinion A value opinion effective as of a specified historical date. Appraisal Institute, The The term retrospective does not define a type of value. Dictionary of Real Instead, it identifies a value opinion as being effective at Estate Appraisal, 7th some specific prior date. Value as of a historical date is Ed. (Chicago: Appraisal frequently sought in connection with property tax Institute, 2022) appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., "retrospective market value opinion." Sandwich Iease A lease in which an intermediate, nr sandwich, Appraisal Institute, The leaseholder is the lessee of one party and the lessor of Dictionary of Real another. The owner of the sandwich lease is neither the Estate Appraisal, 7th fee owner nor the user of the property; he or she may be Ed. (Chicago: Appraisal a leaseholder in a chain of leases, excluding the ultimate institute, 2022) sublessee. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING 1851 NW lst Court 23-022-02 GLOSSARY OF VALUATION TERMS Term Definition Source Sum of the Retail Values The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. An appraisal has an effective date, but summing the sale prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022) JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSIl1TINR QUALIFICATIONS OF THE APPRAISER TED ALLEN, MAI Mr. Allen currently holds the position of Managing Partner with the Miami office of Joseph J. Blake and Associates, Inc., at 5201 Blue Lagoon Drive, Suite 270, Miami, Florida. Previous positions include Principal (1986 to 2011), Regional Manager southeast Region (1984 to 1986), Senior Appraiser (1982 to 1983) and Associate Appraiser (1979 to 1981). University of Texas - Austin, Texas Bachelor of Business Administration FORMAL EDUCATION PROFESSIONAL AFFILIATIONS Affiliation Number Florida State -Certified General Real Estate Appraiser No. RZ 426 Georgia State -Certified General Real Property Appraiser No. CG 1855 Appraisal Institute, Designated Member No. 6949 Royal Institution of Chartered Surveyors No. 6329062 CURRENT RESPONSIBILITIES Responsibilities include the preparation and direction of a variety of full narrative real estate appraisals and consulting studies prepared on a national basis. Mr. Allen supervises all staff appraisers and consultants and directs all major assignments throughout the southeastern United States and the Caribbean. APPRAISAL EXPERIENCE Mr. Allen has prepared and directed numerous appraisal and consulting assignments which include mixed - use properties, multifamily developments, proposed and existing condominiums and conversions, timeshares, office buildings, motels, hotels, industrial properties, regional malls, shopping centers, mobile home parks, market studies, feasibility studies, and investment analyses on a variety of institutional and non - institutional grade real property in over 15 states and 10 Caribbean nations. He has appraised and has supervised appraisals, as well as prepared consulting studies of properties for a variety of public pension funds, large institutional investors, pension fund advisors, insurance companies and banks. Mr. Allen has qualified as an expert witness for Federal Bankruptcy Court in the State of Florida and the State of Georgia and has given oral and written testimony in each. He has also been qualified in Florida State and County Courts. LEADERSHIP AND ADDITIONAL EXPERIENCE Mr. Allen is currently one of three executive committee members managing the operations of Joseph J Blake and Associates. This position oversees all aspects of the firms operations throughout the US. His duties including accounting oversight, IT oversight, marketing, short and long range planning, personnel staffing and budgeting. Positions held at the Appraisal Institute include: former service on Chapter Admissions Committee Member, former service on National Admissions Committee, and former service on National Ethics Committee. Additional real estate activities include NCREIF and Mortgage Bankers Association functions and service as Special Magistrate Miami Dade County Value Adjustment Board for the 2014 tax year. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSIII.TIND QUALIFICATIONS OF THE APPRAISER CERTIFICATION Ron neSantis, Governor STATE OF DEPARTMENT OF BUSINESS AN Melanie 5. Griffin, Secretary FLORIDA D PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISE PROVISIONS OF CHAPTER 'ALLEN, TE 5201 BLUE LAGOC MIAMI R HEREIN 15 CERTIFIED UNDER THE 475. FLORIDA STATUTES D EUGENE V N DRIVE SUITE 270 FL 33126 ; Ai* LICENSE NUMBER: RZ426 EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online di MyFloridaLieense.corn Do not alter this do This is your license. It is unlawful for anyone cement in any form. dbpra other than the licensee to use this document. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS ❑F THE APPRAISER DESMOND JEREMY DORCEUS Mr. Dorceus is a State -registered trainee real estate appraiser with the Miami office of Joseph 1. Blake and Associates, Inc., at 5201 Blue Lagoon, Suite 270, Miami, Florida. CURRENT EDUCATION Florida International University— Miami, FL Bachelor of Business Administration in Real Estate, April 2❑23 REAL ESTATE AND APPRAISAL EDUCATION Course Name Real Estate Principles Real Estate Law Real Estate Appraisal Real Estate Invest Prerequisite Appraisal Courses Provider Florida International University Florida International University Florida International University Florida International University McKissock PROFESSIONAL AFFILIATIONS Affiliation Number Florida - State -registered trainee real estate appraiser No. RI25541 APPRAISAL EXPERIENCE Responsibilities include preparation of full narrative appraisal and market study reports for a wide variety of property types and purposes, including but not limited to business parks, office buildings, industrial buildings, shopping centers, multi -family projects, hotels and land. JOSEPH J. BLADE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING QUALIFICATIONS OF THE APPRAISER CERTIFICATION iiuii DeSaiilk, Guy el gum Melanie S. <,ritrin, Secretary STATE OF FLORIDA dr DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE REGISTERED TRAINEE APPRAISER HEREIN HAS REGISTERED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES DORCEUS, DESMON D JEREMY 5963 NW 19 ST / LAUDERHILL FL 33313 :' EIE NUMBER: R125541 EXPIRATION DATE: NOVEMBER 30, 2024 Always ver.fy licenses online at MyFloririal icense.rom Da not alter thls document In any form, 1 This is your license. It is unlawful for anyone other than the licensee to use this document. JOSEPH J. BLAKE AND ASSOCIATES, INC. REAL ESTATE VALUATION AND CONSULTING APPRAISAL REPORT #2 CBRE, INC. CBRE VALUATION & ADVISORY SERVICES 4 AP ISAL REPORT SIX - UNIT RENOVATED LIHTC 1 851 NW 1ST COURT MIAMI, FLORIDA 33136 CBRE FILE NO. CB24US008028-1 CLIENT: COMMUNITY REDEVELOPMENT AGENCY CBRE VALUATION & ADVISORY SERVICES CBRE 777 Brickell Ave. Ste. 1 100 Miami, FL 33131 T (305) 381-6480 www.cbre.com Date of Report: March 4, 2024 Ms. Isiaa Jones Executive Director COMMUNITY REDEVELOPMENT AGENCY 819 NW 2nd Avenue Miami, Florida 33136 RE: Appraisal of: Six - Unit Renovated LIHTC 1851 NW 1st Court Miami, Miami -Dade County, Florida 33136 CBRE, Inc. File No. CB24US008028-1 Dear Ms. Jones: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 6-unit low-income housing tax credit (LIHTC) multi -family walk-up property located at 1851 NW 1st Court in Miami, Florida. The property consists of a single, two-story apartment building with studios, one -bedroom and two -bedroom units, which are rent restricted at 40%, 60% and 80% area median income (AMI), respectively, as set forth for Miami -Dade County by HUD. The improvements were constructed in 1954, renovated in 2023 and are situated on a 0.17-acre site, with the renovations consisting of full interior and exterior updates with a total renovation budget of $568,810. As of the time of inspection, the subject was vacant and was pending the completion of electric work in order to receive the certificate of occupancy (CO) from the City of Miami. We requested updated data such as current rents and operating data/budget however, no updated data was provided with the only data provided being from 2018-2019. Therefore, we have utilized the most recent rent limits for the subject rents based on the AMI's provided for each unit type as well as market expenses. An extraordinary assumption has been made that the latest rents published by HUD for Miami -Dade County will be applied to the subject units once certificate of occupancy has been issued. The improvements were vacant and are considered to be not stabilized. Therefore, we have estimated a 3-month lease up for the subject and have deducted a lease -up discount from the As Stabilized value in order to provide the As Is value. Per information provided, the electrical work remaining at the subject requires no additional costs to complete with only an inspection pending by the City of Miami to be able to receive the certificate of occupancy (CO). Therefore, no additional cost to complete was deducted to arrive at the As Is value. © 2024 CBRE, Inc. CBRE March 4, 2024 Page 2 Based on the analysis contained in the following report, the market value of the subject is concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is (LIHTC As Is) Hypothetical As Is (Property Assuming Market) Compiled by CBRE Fee Simple Estate Fee Simple Estate February 15, 2024 February 15, 2024 $1,025,000 $1,525,000 This Appraisal Report is subject to Extraordinary Assumptions and/or Hypothetical Conditions; please refer to the Executive Summary section of this report for further discussion and analysis. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non -intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). 2 © 2024 CBRE, Inc. CBRE March 4, 2024 Page 3 It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Kristian Cata, CCIM Senior Appraiser Cert Gen RZ4283 Phone: (305) 720-7806 Email: 9aystian.catra@cbre.com Eric Castro Senior Valuation Associate Registered Trainee RI24529 Phone: (305) 260-2421 Email: e1ic.castro@cbre.com Brad Lyons, MAI First Vice President Cert Gen RZ2897 Phone: (407)-839-3136 Email: bradOey.Dyons@acbre.com 3 © 2024 CBRE, Inc. CBRE Certification Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. Kristian Cata, CCIM, Bradley Lyons, MAI, and Eric Castro have not provided services, as an appraiser, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice. 9. Eric Castro has made a personal inspection of the property that is the subject of this report. Kristian Cata, CCIM and Bradley Lyons, MAI, have not made a personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the persons signing this certification. 11. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, Bradley Lyons, MAI, has completed the continuing education program for designated members of the Appraisal Institute. 14. As of the date of this report, Bradley Lyons, MAI has completed the Standards and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute. 15. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the State of Florida. 16. Eric Castro, the registered appraiser trainee, researched and analyzed area, neighborhood, site, improvements, zoning, tax and assessment, market, highest and best use, comparable sale and rent data. Additionally, Eric Castro developed the valuation indications herein under the direct supervisor of Bradley Lyons, MAI over the course of approximately 20 hours. Kristian Cata, CCIM Bradley Lyons, MAI Cert Gen RZ4283 Cert Gen RZ2897 Eric Castro Registered Trainee RI24529 © 2024 CBRE, Inc. CBRE Subject Photographs Subject Photographs C Aerial View (Source: Miami -Dade County Property Appraiser) ii © 2024 CBRE, Inc. CBRE Subject Photographs Subject Exterior Subject Exterior Subject Interior Subject Exterior Subject Exterior Subject Interior 111 © 2024 CBRE, Inc. CBRE Subject Photographs Subject Interior Subject Interior Subject Street Subject Interior Subject Interior Subject Street iv © 2024 CBRE, Inc. CBRE Executive Summary Executive Summary Property Name Location Parcel Number(s) Client Highest and Best Use As If Vacant As Improved Property Rights Appraised Date of Inspection Estimated Exposure Time Estimated Marketing Time Primary Land Area Zoning Improvements Property Type Number of Buildings Number of Stories Gross Building Area Net Rentable Area Number of Units Average Unit Size Year Built / Renovated Effective Age Remaining Economic Life Condition Buyer Profile Financial Indicators Current Occupancy Stabilized Occupancy Stabilized Credit Loss Estimated Lease -up Period Overall Capitalization Rate Six - Unit Renovated LIHTC 1851 NW 1st Court Miami, Miami -Dade County, FL 33136 01-3125-048-0650 Community Redevelopment Agency Multifamily Multifamily Fee Simple Estate February 15, 2024 3 - 9 Months 3 - 9 Months 0.17 AC T3-O Multifamily 1 2 2,952 SF 2,568 SF 6 428 SF 1954 / 2023 5 Years 50 Years Good Investor -Regional 0.0% 97.0% 0.5% 3 Months 5.50% 7,500 SF Comments (Multi -Family Walk -Up) v © 2024 CBRE, Inc. CBRE Executive Summary Pro Forma LIHTC As Is Effective Gross Income Operating Expenses Expense Ratio Net Operating Income VALUATION Market Value As Is On Sales Comparison Approach Income Approach Hypothetical As Is (Property Assuming Market) Sales Comparison Approach Income Approach Insurable Value February 15, 2024 February 15, 2024 Total Per Unit $86,665 $29,395 33.92% $57,269 Total $14,444 $4,899 $9,545 Per Unit $1,000,000 $1,025,000 $1,500,000 $1, 525,000 $300,000 $166,667 $170,833 $250,000 $254,167 $50,000 CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Date of Value Value As Is (LIHTC As Is) Hypothetical As Is (Property Assuming Market) Fee Simple Estate Fee Simple Estate February 15, 2024 February 15, 2024 $1,025,000 $1, 525,000 Compiled by CBRE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities • The subject was recently renovated with modern design/finishes. • There is continuous demand for affordable housing. • Neighborhood demographics indicate that the area will experience moderate growth in relation to population and households over the near term. • The subject is an LIHTC property and will benefit from lower real estate taxes. • The parcels are in close proximity to supporting transportation, employment, and supporting service linkages. Weaknesses/ Threats • The subject is currently vacant and is pending electrical work for completion. • The property is subject to income/rent restrictions. • Commercial real estate market conditions have deteriorated at the macro level. The significant recent increase in the cost of capital and reduced volume of transaction activity is impacting price discovery and creating an increase in uncertainty. Increasing interest rates and subdued economic growth will continue to weigh on commercial real estate fundamentals and investment transaction volumes. This creates a higher degree of uncertainty in general, though the impacts may vary by market and asset class/type. vI © 2024 CBRE, Inc. CBRE Executive Summary MARKET VOLATILITY We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short -to -medium term. Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions. It is important to note that the conclusions set out in this report are valid as at the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. CURRENT ECONOMIC CONDITIONS At its January 2024 meeting, the Federal Reserve held the federal funds rate at a range of 5.25% to 5.50% and indicated it will continue reducing its balance sheet by $95 billion per month. The Fed removed language from its policy statement about further tightening but stated it needs more confidence inflation "is moving sustainably toward 2.00%" before considering cuts. Rising real interest rates will be a headwind for the economy in coming quarters; however, CBRE expects the U.S. economy will remain resilient with growth averaging 1.6% for the year. While opinions vary on future economic issues, the general market consensus at the time of this appraisal is the anticipation of moderating inflation as higher interest rates cool demand. Tighter lending conditions and a weakening economy will keep capital markets activity subdued and reduce leasing demand in the short to medium term. Amid this uncertain and dynamic environment, investment market performance will be uneven across property types. vii © 2024 CBRE, Inc. CBRE Executive Summary EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as "an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." 1 • The 'as stabilized' appraisal assumes the development is fully entitled and permitted for the renovations of the improvements as specifically described herein and that the project will be completed within budget and in accordance with the plans and assumed good level of specifications commensurate with other renovated developments in the surrounding area. • The use of these extraordinary assumptions may have affected the assignment results. HYPOTHETICAL CONDITIONS A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis." 2 • In addition to the As Is value, we have provided a Hypothetical As Is value assuming market rent and expenses (no rent restrictions/tax credit). The use of these hypothetical conditions may have affected the assignment results. OWNERSHIP AND PROPERTY HISTORY OWNERSHIP SUMMARY Item Current Current Ownership Owner: SHERMAN W BULLARD Seller: N/A Purchase Price: $15,000 Transaction Date: September 1, 2003 Sale in Last 3 Years?: No Legal Reference: 23470-4349 County/Locality Name: Miami -Dade Pending Sale Under Contract: No Current Listing Currently Listed For Sale: No Compiled by CBRE CBRE is unaware of any arm's length ownership transfers of the property within three years of the date of appraisal. Further, the property is not reportedly being offered for sale as of the current date. 1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) viii © 2024 CBRE, Inc. CBRE Executive Summary EXPOSURE/MARKETING TIME Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following: • exposure periods for comparable sales used in this appraisal; • exposure/marketing time information from the CBRE, Inc. National Investor Survey and the PwC Real Estate Investor Survey; and • the opinions of market participants. The following table presents the information derived from these sources. EXPOSURE/MARKETING TIME DATA Investment Type Exposure/Mktg. (Months) Range Average PwC Apartment National Data Local Market Professionals CBRE Exposure Time Estimate CBRE Marketing Period Estimate 2.0 - 15.0 6.3 6.0 - 12.0 9.0 3 - 9 Months 3 - 9 Months Various Sources Compiled by CBRE ix © 2024 CBRE, Inc. CBRE Table of Contents Table of Contents Certification Subject Photographs Executive Summary v Table of Contents x Scope of Work 1 Area Analysis 5 Neighborhood Analysis 7 Site Analysis 11 Improvements Analysis 13 Zoning 19 Tax and Assessment Data 21 Highest and Best Use 38 Insurable Replacement Cost 40 Sales Comparison Approach 42 Income Capitalization Approach 47 Reconciliation of Value 76 Assumptions and Limiting Conditions 77 ADDENDA A Improved Sale Data Sheets B Rent Comparable Data Sheets C Operating Data D Deed E Client Contract Information F Qualifications x © 2024 CBRE, Inc. CBRE Scope of Work Scope of Work This Appraisal Report is intended to comply with the real property appraisal development and reporting requirements set forth under Standards Rule 1 and 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered, and analysis is applied. INTENDED USE OF REPORT This appraisal is to be used for Acquisition/Disposition/Exchange due diligence underwriting and no other use is permitted. CLIENT The client is Community Redevelopment Agency. INTENDED USER OF REPORT This appraisal is to be used by Community Redevelopment Agency. No other user(s) may rely on our report unless as specifically indicated in this report. Intended users are those who an appraiser intends will use the appraisal or review report. In other words, appraisers acknowledge at the outset of the assignment that they are developing their expert opinions for the use of the intended users they identify. Although the client provides information about the parties who may be intended users, ultimately it is the appraiser who decides who they are. This is an important point to be clear about: The client does not tell the appraiser who the intended users will be. Rather, the client tells the appraiser who the client needs the report to be speaking to, and given that information, the appraiser identifies the intended user or users. It is important to identify intended users because an appraiser's primary responsibility regarding the use of the report's opinions and conclusions is to those users. Intended users are those parties to whom an appraiser is responsible for communicating the findings in a clear and understandable manner. They are the audience. 3 RELIANCE LANGUAGE Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for 3 Appraisal Institute, The Appraisal of Real Estate, 15th ed. (Chicago: Appraisal Institute, 2020), 40. © 2024 CBRE, Inc. CBRE Scope of Work any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. PURPOSE OF THE APPRAISAL The purpose of this appraisal is to develop an opinion of the market value. DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 INTEREST APPRAISED The value estimated represents the Fee Simple Estate as defined below: Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.' Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor's records • legal description 4 12 CFR, Part 34, Subpart C-Appraisals, 34.42(h). 5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), 73. 2 © 2024 CBRE, Inc. CBRE Scope of Work Extent to Which the Property is Inspected Eric Castro inspected the interior and exterior of the subject, as well as its surrounding environs on the effective date of appraisal. This inspection was considered adequate and is the basis for our findings. Type and Extent of the Data Researched CBRE reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • income and expense data • comparable data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Size Improved Data Building Area No. Bldgs. Parking Spaces Year Built/Developed Economic Data Deferred Maintenance: Building Costs: Income Data: Expense Data: Miami -Dade County Property Appraiser Website Miami -Dade County Property Appraiser Website/Owner Inspection/Aerial Inspection Miami -Dade County Property Appraiser Website Inspection Marshall Valuation Services (MVS) HUD (Restricted Rents)/Market Market (Operating Data not Provided) Compiled by CBRE 3 © 2024 CBRE, Inc. CBRE Scope of Work APPRAISAL METHODOLOGY In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. Income Capitalization Approach The income capitalization approach reflects the subject's income -producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. Methodology Applicable to the Subject In valuing the subject, only the sales comparison and income capitalization approaches are applicable and have been used. The cost approach is not applicable in the estimation of market value given that the typical investor would not put any weight consideration on this approach given the age/condition of the subject. The exclusion of said approach is not considered to compromise the credibility of the results rendered herein. 4 © 2024 CBRE, Inc. CBRE Area Analysis Area Analysis REGIONAL AREA Prepared tap CBRC'va wrier! a Mersa, ae-pc w QrnapbaK Fort L.:I LIiie I dale Pembroke Pines Hialeah 41 43 MIA Kendal Homestead The subject is located in Miami -Dade County. Key information about the area is provided in the following tables. POPULATION The area has a population of 2,733,765 and a median age of 40, with the largest population group in the 30-39 age range and the smallest population in 80+ age range. Population has increased by 237,330 since 2010, reflecting an annual increase of 0.7%. Population is projected to increase by 38,725 between 2023 and 2028, reflecting a 0.3% annual population growth. Source: ESRI, downloaded on Feb, 23 2024 500,000 400,000 300,000 200,000 100,000 0 Source: Esri 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 Source: Esri 0 AREA POPULATION BY AGE I 1 !II 1111 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80+ POPULATION BY YEAR 2,496,435 2010 2,733,765 2023 2,772,490 2028 5 © 2024 CBRE, Inc. CBRE Area Analysis INCOME The area features an average household income of $95,752 and a median household income of $60,992. Over the next five years, median household income is expected to increase by 19.6%, or $2,389 per annum. EDUCATION A total of 34.9% of individuals over the age of 24 have a college degree, with 21.9% holding a bachelor's degree and 13.0% holding a graduate degree. EMPLOYMENT Health Care/Social Assistance Retail Trade Transportation/Warehousing Prof/Scientific/Tech Services Construction Accommodation/Food Services Educational Services Admin/Support/Waste Mgmt Srvcs Other Services (excl Publ Adm) Finance/Insurance $80,000 $60,000 $40,000 $20,000 $0 Source: Esri MEDIAN INCOME BY YEAR $60,992 2023 $72,938 POPULATION BY DEGREE • Bachelor's Degree • Graduate Degree • Other Source: Esri 2028 0% 2% 4% 6% 8% 10% 12% 14% The area includes a total of 1,376,756 employees. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Transportation/Warehousing, which represent a combined total of 32% of the workforce. Source: ESRI, downloaded on Feb 23, 2024; BLS.gov dated Jan 0, 1900 In summary, the area is forecasted to experience an increase in population and an increase in household income. 6 © 2024 CBRE, Inc. CBRE Site Analysis Neighborhood Analysis NEIGHBORHOOD Prepared by: C'ERE Valuatim & Adria: , w 9 rnnpborr Kendall op!' Hialeah MIA 0 0 Miami Beach Miami LOCATION The subject is in the City of Miami and is considered a suburban location. The subject is situated in southeastern Miami -Dade County, about 2 miles northwest of the Miami Central Business District. BOUNDARIES The neighborhood boundaries are detailed as follows: North: NW 20th Street South: 395 Expressway East: Biscayne Boulevard (US-1) West: 1-95 Expressway 7 © 2024 CBRE, Inc. CBRE Site Analysis LAND USE Land uses within the subject neighborhood consist of a complimentary mix of commercial and residential development. The subject's immediate area is a moderately dense district comprised of mainly single-family residences with some light multifamily/flex buildings and commercial retailers along the neighborhood's major roadways. Commercial uses are concentrated along arterial roadways of the neighborhood including NW 2' Avenue and N Miami Avenue, both of which run north/south. Because of this, it also contains a large portion of the neighborhood's commercial retailers, restaurants, and multifamily developments. Residential development are along secondary streets and ranges from detached single-family homes, duplexes to low-rise apartment complexes with signs of new multifamily developments located in the area. ACCESS The subject neighborhood is bracketed by major South Florida Highways. North/south regional access is provided by Interstate 95 to the west and 395 Expressway to the south. The 195 expressway is also located to the north of the subject. Local east/west access is primarily provided by NW 20th Street. Additional local access is provided by NW 2nd Avenue and N Miami Avenue, which travel to the south towards the CBD/downtown Miami Area. Overall, access to, from, and throughout the subject neighborhood is considered to be good. 8 © 2024 CBRE, Inc. CBRE Site Analysis DEMOGRAPHICS Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table: SELECTED NEIGHBORHOOD DEMOGRAPHICS 1851 NW 1st Court Miami, FL 33136 1 Mile Radius 3 Mile Radius 5 Mile Radius Miami -Dade County Population 2028 Total Population 2023 Total Population 2010 Total Population 2000 Total Population Annual Growth 2023 - 2028 Annual Growth 2010 - 2023 Annual Growth 2000 - 2010 Households 2028 Total Households 2023 Total Households 2010 Total Households 2000 Total Households Annual Growth 2023 - 2028 Annual Growth 2010 - 2023 Annual Growth 2000 - 2010 Income 2023 Median Household Income 2023 Average Household Income 2023 Per Capita Income 2023 Pop 25+ College Graduates Age 25+ Percent College Graduates - 2023 62,739 328,653 584,913 2,772,490 47,314 297,314 552,278 2,733,765 29,410 243,495 494,645 2,496,435 22,809 215,363 460,154 2,253,399 5.81% 2.02% 1.15% 0.28% 3.73% 1.55% 0.85% 0.70% 2.57% 1.24% 0.73% 1.03% 31,883 151,667 260,922 1,019,262 23,268 133,208 241,089 989,193 12,753 98,251 202,187 867,352 8,715 79,229 179,009 776,797 6.50% 2.63% 1.59% 0.60% 4.73% 2.37% 1.36% 1.02% 3.88% 2.18% 1.23% 1.11% $63,538 $53,864 $53,623 $60,992 $95,039 $92,459 $91,842 $95,752 $46,812 $41,453 $40,145 $34,693 15,799 83,825 156,727 680,904 47.0% 38.4% 38.3% 34.9% Source: ESRI CONCLUSION As shown above, population growth within the subject's neighborhood has been moderately increasing over the past seventeen years. The neighborhood currently has a middle income demographic profile with a 2023 median household income of $53,864 in a three-mile radius. The outlook for the neighborhood is for relatively stable performance with moderate increases in population and household formation expected over the next five years. As a result, 9 © 2024 CBRE, Inc. CBRE Site Analysis FLOOD PLAIN MAP National Flood Hazard Layer FIRMette 0 250 50a 1,500 2,oaa FEMA .Lb,UUU @35e111a0 Mid gerysowczt LSGS HaltdA of, May 2023 Legend FR REPORT FORI1E9ntEP rE9 EMPONP PPE%INPfCR NMI ANC. LAM _PE,IAL FLOC® FA2AF<Er ME .' YtldaA Eleratbn OFFS! Asa lNm art or ceps too aa .. oo r.Aa RelPaaeay Kavdvq OTHER AREAL' Or r_cao HAZARD OTHER AREAS GENERAL .^.TRL• TunEr. D]%Ann. than. Eaod Hazard. Aram of 1%an eel Olen. T.,co pole omega depmtea [ban onto.[ cc delnaga areas a lea than aos square mII Fume nnwtemlw.71 .reeves Arad Ipmm Sa.. A Arse wag Reduced FF1od Mak due a Urea see Rotes See ArmRand Pak rime to Lemea..,.s nu sent. nre• Mlnenal Ewmlamm nn.e Area of li ntletaminea es. Hamad --- gannal,a Marl, ill Sa rm Sewer Ill.., Log, dill. os Fbotlwall gees icctlone wr1h 1% Annual ayaraa Wator Surface Elevation 1....-. ease Fl. Elevation Urea OPE) Urnit al sbtlr lurisOlolge Pounds,. _— Lcerha transact Moans OMER Pratte Oxman. FEATINRE^ H'N,okosaak Feahae MAP PANELS oll6tel Lam Aw1IaAM No WI. oats AoalbMe Unmans. The pin glinpldp®on Ind map Han anprm ma . poad aMectetl to the user and doss not repraere sn autllpfaSNe raepertylar tloR Fhk wag pomp., wtm FUhl aft lTa the use of dltateI Read maps 11 R a. not gold as describe, helms The tesenap .frown compass wtlh FEMAS baseman occur., amnanNi The ',sod Metre Informal. Is derhed son., dPAly from pole autimettotneWela a Ma awd try FP/. This MOP wwa ex.9.1M oal:i'22'-:•J[+i m 9.. AM and goesml ream[c r1em eswdendnenla subseh cline cine and time. -re PIP,, effect. Iofomadr tlmayA Man* or b..crna:s xrxacc :} men Gam mar time. 111H Tap Inall^ Is' ,Ic 1 Me one ar more of the TAGpwlrgf nap elarner'o ,c nal appear. tale ma? Image, limed zone labels. MAene. icy a to'. map creTtl,r date. vnr nunIte Manners, RAM narel n. T oar. o 1, Fn TTM a tectAe data. Map Images Mr unmapped and ur Toaernire, a real can.. us. ice retuIATArA parprCes. 10 © 2024 CBRE, Inc. CBRE Site Analysis Site Analysis The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area Net Site Area Shape Topography Parcel Number(s) Zoning District Flood Map Panel No. & Date Flood Zone Adjacent Land Uses Comparative Analysis Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Water Sewer Natural Gas Electricity Telephone Mass Transit Other Detrimental Easements Encroachments Deed Restrictions Reciprocal Parking Rights Availability City of Miami City of Miami N/A Florida Power and Light Various Providers City of Miami Yes 0.17 Acres 0.17 Acres Rectangular Generally Level 01-3125-048-0650 7,500 Sq. Ft. 7,500 Sq. Ft. T3-O 12086C0312L Zone X (Unshaded) Commercial, residential 11-Sep-09 Rating Average Average Average Assumed Adequate Average Assumed Adequate No Comments Yes Yes N/A Yes Yes Yes Unknown x x x x Various sources compiled by CBRE INGRESS/EGRESS Ingress and egress are available to the site via NW ]st Court. Street improvements include asphalt paving and concrete curbs, gutters and sidewalks, and street lighting. Street parking appears to be permitted. 11 © 2024 CBRE, Inc. CBRE Site Analysis EASEMENTS AND ENCROACHMENTS There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. COVENANTS, CONDITIONS AND RESTRICTIONS There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision. ENVIRONMENTAL ISSUES Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did not reveal any obvious issues regarding environmental contamination or adverse conditions. The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. ADJACENT PROPERTIES The adjacent land uses are summarized as follows: North: Residential South: Residential East: Residential West: Commercial The adjacent properties are considered to be generally in average condition. CONCLUSION The site is well -located and afforded good access and average visibility. The size of the site is typical for the area and use, and there are no known detrimental uses in the immediate vicinity. Overall, there are no known factors that are considered to prevent the site from development to its highest and best use, as if vacant, or adverse to the proposed use of the site. 12 © 2024 CBRE, Inc. CBRE Improvements Analysis Improvements Analysis The following chart shows a summary of the improvements. IMPROVEMENTS SUMMARY AND ANALYSIS Property Type Multifamily (Multi -Family Walk -Up) Number of Buildings 1 Number of Stories 2 Gross Building Area 2,952 SF Net Rentable Area 2,568 SF Number of Units 6 Average Unit Size 428 SF Development Density 34.8 Units/Acre Subject Characteristics Flat Roofs, LIHTC (Low Income Housing Tax Credit), Street Parking, Dishwasher, Microwave Oven, Range / Oven and Refrigerator Parking Improvements Surface Parking Spaces: 4 Parking Ratio (spaces/unit) 0.67 Year Built / Renovated 1954 / 2023 Actual Age 70 Years Effective Age 5 Years Total Economic Life 55 Years Remaining Economic Life 50 Years Age/Life Depreciation 9.1% Functional Utility Typical Source: Various sources compiled by CBRE UNIT MIX Percent of Unit Size Unit Mix/Type Comments No. Units Total (SF) NRA (SF) Studio @ 40% AMI Considered functional in layout 2 33.3% 288 576 1 BR/1 BA @ 60% AMI Considered functional in layout 2 33.3% 436 872 2BR/1 BA @ 80%AMI Considered functional in layout 2 33.3% 560 1,120 Total/Average: 6 100.0% 428 2,568 Source: Various sources compiled by CBRE The following illustrates the key features/components of the subject improvements. 13 © 2024 CBRE, Inc. CBRE Improvements Analysis IMPROVEMENT DESCRIPTION & RATING Improvement Summary Description Comparative Rating Foundation Concrete Average Frame Concrete Average Exterior Walls Stucco Average Interior Walls Painted drywall Average Roof Flat roof with asphalt covering Average Ceiling Painted drywall Average HVAC System Ground mounted split units (central air/unit) Average Exterior Lighting Typical for similar developments Average Interior Lighting Fluorescent lighting Average Flooring Tile flooring Average Plumbing Assumed adequate (see comments) Average Stairwells Exterior staircases Average Elevators None Average Smoke Detectors Yes Average Sprinkler System No Average Amenities Flat Roofs, LIHTC (Low Income Housing Tax Credit), Street Parking, Dishwasher, Microwave Average Oven, Range / Oven and Refrigerator Furnishings Personal property not included Average Parking On -site Average Landscaping Average/typical for similar developments Average Source: Various sources compiled by CBRE YEAR BUILT The subject was built in 1954 and renovated in 2023 (pending certificate of occupancy/inspection for electrical). CONSTRUCTION CLASS Building construction class is as follows: C - Masonry/concrete ext. walls & wood/steel roof & floor struct., exc. concrete slab on grade The construction components are assumed to be in working condition and adequate for the building. The overall quality of the facility is considered to be average for the neighborhood and age. However, CBRE, Inc. is not qualified to determine structural integrity and it is recommended that the client/reader retain the services of a qualified, independent engineer or contractor to determine the structural integrity of the improvements prior to making a business decision. FOUNDATION/FLOOR STRUCTURE The foundation is assumed to be of adequate load -bearing capacity to support the improvements. The floor structure is summarized as follows: Ground Floor: Other Floors: Concrete slab on compacted fill Plywood deck with light -weight concrete cover © 2024 CBRE, Inc. 14 CBRE Improvements Analysis EXTERIOR WALLS The exterior walls are wood frame with brick veneer and wood accents and trim. The buildings have aluminum frame windows. ROOF COVER The subject has a flat roof with a built-up composition asphalt covering. ELEVATOR/STAIR SYSTEM The subject building includes exterior covered stairwells with no elevator noted. HVAC The HVAC systems are ground mounted individual split systems (individual central air units). It is assumed to be in good working order and adequate for the units. UTILITIES Each unit is individually metered for electrical usage. We requested updated data such as current rents at the subject and operating data/budget however, no updated data was provided with the only data provided being from 2018-2019. Therefore, we have utilized the most recent rent limits for the subject rents based on the AMI's provided for each unit type as well as market expenses. Market operations indicate the tenants will be responsible for all utilities with the owner being responsible for common areas and vacant units. Therefore, we have included a utility expense for the subject towards the lower end of the market range as further discussed in the income capitalization approach. SECURITY None noted LIFE SAFETY AND FIRE PROTECTION It is assumed the improvements have adequate fire alarm systems, fire exits, fire extinguishers, fire escapes and/or other fire protection measures to meet local fire marshal requirements. CBRE, Inc. is not qualified to determine adequate levels of safety & fire protection, whereby it is recommended that the client/reader review available permits, etc. prior to making a business decision. PROJECT AMENITIES None noted 15 © 2024 CBRE, Inc. CBRE Improvements Analysis UNIT AMENITIES Kitchens Each unit features a stainless -steel appliance package that includes a range/oven, built-in microwave and refrigerator. Additionally, each unit features wood laminate cabinets with quartz countertops and tile flooring in all living areas. Bathrooms The bathrooms within each unit feature showers with ceramic tile wainscot. Additionally, each bathroom features a commode, wood laminate cabinet with quartz counter and built-in porcelain sink, with vanity mirror and tile flooring. Interior Lighting Each unit features incandescent lighting in appropriate interior and exterior locations with fluorescent lighting in bathrooms and kitchen areas. Patios, Balconies and Storage None noted SITE AMENITIES Parking and Drives According to the property contact, the subject features 4 surface parking spaces with a parking ratio of 0.67. All parking spaces and vehicle drives are asphalt paved and considered to be in average condition. Landscaping Landscaping is considered to be in average condition and minimal. FUNCTIONAL UTILITY All of the floor plans are considered to feature functional layouts and the layout of the overall project is considered functional in utility. Therefore, the unit mix is also functional, and no conversion is warranted to the existing improvements. ADA COMPLIANCE All common areas of the property appear to have handicap accessibility and four of the project's units have been designed for handicap occupancy. The client/reader's attention is directed to the specific limiting conditions regarding ADA compliance. 16 © 2024 CBRE, Inc. CBRE Improvements Analysis FURNITURE, FIXTURES AND EQUIPMENT The apartment units are rented on an unfurnished basis. However, miscellaneous maintenance tools, pool furniture, leasing office furniture, recreational room and clubhouse furniture, and various exercise machines are examples of personal property associated with, and typically included in the sale of, multifamily apartment complexes. Our market value assumes any FF&E at the property would transfer if the property were to sell. This is consistent with how buyers and sellers analyze similar properties. ENVIRONMENTAL ISSUES Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did not reveal any obvious issues regarding environmental contamination or adverse conditions. The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. CONDITION ANALYSIS Although CBRE was not provided a Property Condition Assessment (PCA), a tour of the improvements did not reveal any significant maintenance issues. Our tour of the improvements included a cursory inspection of the buildings, surface parking, garage parking, maintenance facilities, swimming pool and a sample of interior units including all vacant units. ECONOMIC AGE AND LIFE CBRE, Inc.'s estimate of the subject improvements effective age and remaining economic life is depicted in the following chart: ECONOMIC AGE AND LIFE Actual Age Effective Age MVS Expected Life Remaining Economic Life Accrued Physical Incurable Depreciation 70 Years 5 Years 55 Years 50 Years 9.1% Compiled by CBRE The remaining economic life is based upon our on -site observations and a comparative analysis of typical life expectancies as published by Marshall and Swift, LLC, in the Marshall Valuation Service cost guide. While CBRE, Inc. did not observe anything to suggest a different economic life, a capital improvement program could extend the life expectancy. 17 © 2024 CBRE, Inc. CBRE Improvements Analysis CONCLUSION The improvements are in good overall condition. Overall, there are no known factors that adversely impact the marketability of the improvements. 18 © 2024 CBRE, Inc. CBRE Zoning Zoning The following chart summarizes the subject's zoning requirements. ZONING SUMMARY Current Zoning T3-O Legally Conforming Yes Uses Permitted THE SUB -URBAN ZONE consists of low - Density areas, primarily comprised of Single - Family and Two Family residential units with relatively deep Setbacks, Streetscapes with swales, and with or without Sidewalks. Blocks may be large and the roads may be of irregular geometry to accommodate natural and historic conditions. Zoning Change Not likely Category Zoning Requirement Minimum Lot Size 5,000 Sq. Ft. Minimum Lot Width 50 Feet Maximum Height 2 Stories Minimum Setbacks Front Yard 20 Feet Street Side Yard 10 Feet Interior Side Yard 5 Feet Rear Yard 20 Feet Maximum Bldg. Coverage 50% Maximum Density 18 Units per Acre Subject's Actual Density 34.8 Units/Acre Parking Requirements 2 parking spaces per unit Subject's Actual Parking None (Street parking) Source: Planning & Zoning Dept. ANALYSIS AND CONCLUSION The improvements appear to represent a legally non -conforming use due to density, which if damaged, may require special permit application. Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct. 19 © 2024 CBRE, Inc. CBRE Zoning ZONING MAP 14-R Zoom Select Site Address OwnerName; 185E NW 1 CT SHERMAN W BULL Property111:2 LandLJse Flood Links Di= -tracts HEF Miami 21 Zoning{Current): Zone: T3-D Description: Sub -Urban Zone Enactment: 13114 Areas of Specific Designation: Section: Description: Enactment: None Special Area Planning: Section: Description: Enactment: None Established Setbacks: Section: Description: Area: Sub: None • Former 11000(Not Valid): Zone: Description: Enactment R-3 Multifamily (OLD Medium -Density Residential Former Overlay Districts: Enactment: Plane Section: Description: 20 © 2024 CBRE, Inc. CBRE Tax and Assessment Data Tax and Assessment Data The following summarizes the local assessor's estimate of the subject's market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. The CBRE estimated tax obligation is also shown. AD VALOREM TAX INFORMATION Pro Forma Pro Forma Hypothetical UHTC As Is (Property Parcel Assessor's Parcel No. Parcel Description 2022 2023 Assuming Market) 1 01.3125.048.0650 $573,487 $806,866 Subtotal $573,487 $806,866 $1,041,264 $1,544,361 of Assessed Value 49% 38% 35% 75% Final Assessed Value 278,236 306,059 $364,442 S1,158,271 General Tax Rate per $1,000 A.V.) 20.615200 20.556400 20.556400 20.556400 General Tax: $5,736 $6,291 $7,492 $23,810 School Board Taxes 1,945 3,355 Special Assessments: $1,945 $3,355 $0 S0 Effective Tax Rate per $1,000 A.V.) 26.502957 30.257256 19.734144 19.734144 Total Taxes 1 %Taa Redudion for Eady Payment Total Taxes Taxes per Unit $7,681 $9,646 $7,492 $23,810 ($307) ($386) ($300) ($952) $7,374 $9,261 $7,192 $22,857 S1,229 $1,543 S1,199 S3,810 Source: Assessors Office In the State of Florida, real estate is assessed at 100% of the property appraiser's estimate of "fair market value". However, in reality, assessments are typically somewhat lower than actual market values in order to reduce the frequency of tax appeals. As well, in the State of Florida, a 4.0% early -payment discount is available to property owners who pay their real estate taxes prior to a pre -established deadline. Within our analysis we have assumed that prudent management would act to realize the full 4.0% early -payment discount for the subject property. DELINQUENCY None noted 21 © 2024 CBRE, Inc. CBRE Tax and Assessment Data TAX COMPARABLES As a crosscheck to the subject's applicable real estate taxes, CBRE, Inc. has reviewed the real estate tax information according to Miami -Dade County for comparable properties in the market area. The following table summarizes the comparables employed for this analysis: LIHTC - RATIO OF ASSESSED VALUE TO SALE PRICE Comparable Sale Running Brook College Park Sunset Bay Villa Biscayne Four Freedoms LIHTC Towers LIHTC LIHTC Park City LIHTC Riverwalk LIHTC LIHTC House LIHTC Year Built 2002 1979 2001 1993 1995 1964/2014 1994 Tax Year 2022 2022 2022 2021 2021 2020 2020 Assessor's Market Value $10,300,000 $17,685,000 $15,700,000 $7,500,000 $8,800,000 $14,861,000 $4,862,000 Date of Sale Dec-21 Nov-21 May-21 Oct-20 Feb-20 Dec-19 Apr-19 Sales Price $45,000,000 $46,100,000 $43,250,000 $14,350,000 $28,454,000 $32,000,000 $12,000,000 AV Ratio 23% 38% 36% 52% 31% 46% 41% Source: Assessor's Office RATIO OF ASSESSED VALUE TO SALE PRICE Comparable Sale 1007-1011 Bay Drive, Miami Beach St. George Apartments The 759 NE 128 Shenandoah Street, North Cordoba 1811 Blue Lagoon 7 Apartments Miami Lego Mar Apartments Alameda West Blue Lake Point Apartments Year Built 1946 1958 1925 No. Units 16 84 24 Tax Year Assessor's Market Value Date of Sale Sales Price 1956 2010 2020 1968 2020 1991 9 454 330 112 306 106 2022 2022 2022 2022 2022 2022 2022 2022 2022 $2,340,000 $10,040,000 $4,500,000 $925,635 $126,300,000 $75,800,000 $13,080,000 $70,500,000 $12,170,000 Dec-21 Nov-21 Oct-21 Oct-21 Sep-21 Aug-21 Aug-21 Jun-21 May-21 $3,600,000 $14,200,000 $6,400,000 $1,325,000 $160,000,000 $93,834,200 $17,500,000 $82,920,000 $15,000,000 AV Ratio 65% 71% 70% 70% 79% 81% 75% 85% 81% Minimum 65% Maximum 85% Average 75% Source: Assessor's Office Based on the Real Estate tax comparables shown above, Miami -Dade County typically assesses market value of apartment properties similar to the subject at 65% to 85% for market sale transactions and 23% to 52% for properties that are subject to income/rent restrictions. DIRECT TAX COMPARABLES As a crosscheck to the subject's applicable real estate taxes, CBRE, Inc. has reviewed the real estate tax information for comparable properties in the market area. The following table summarizes the rent comparables employed for this analysis and additional LIHTC properties in the area: AD VALOREM TAX COMPARABLES Comparable Rental Tuscany Place LIHTC Madison Point Keys Apartments Crossing LIHTC LIHTC Princeton Casa Matias Woodside Running Brook Park LIHTC LIHTC Oaks LIHTC LIHTC Subject Year Built 2003 2022 2017 2018 2012 2011 2002 No. Units 340 263 100 150 80 103 187 Tax Year 2023 2023 2023 2023 2023 2023 2023 Assessors Market Value AV Per Unit $19,019,000 $12,913,317 $4,763,000 $8,085,000 $1,694,000 $4,400,000 $11,330,000 $55,938 $49,100 $47,630 $53,900 $21,175 $42,718 $60,588 1954 6 2023 $364,442 $60, 740 Source: Assessor's Office 22 © 2024 CBRE, Inc. CBRE Tax and Assessment Data CONCLUSION It is our experience that the valuation process for LIHTC properties by the county property appraisers differs from conventional properties due to specific instruction within the Florida statutes requiring that only the income approach be considered, and that the analysis must be inclusive of the restricted rental rates. In addition, due to the specialized nature of LIHTC apartment complexes and the restrictions with which they operate, a significant real estate tax increase can effectively limit the cash flow of the property due to the inability to offset the tax increase by increasing rents, leading to less funds being available to put towards repairs & maintenance and capital improvements. This ultimately would lead to the undermining of affordable housing preservation and because of this, municipalities are less likely to place a significant real estate tax increase on LIHTC properties upon sale. Based upon our analysis of recent LIHTC sales/re-assessments from across the state, the re- assessment ratios generally ranged from 30% to 70% of the purchase price. This differs from conventional apartment sales, which re -assessments typically range from 70% to 90%. In concluding our real estate tax estimate for our ""Pro Forma LIHTC As Is"" analysis, we have utilized an assessment ratio of approximately 35% and a final assessed value of $364,442 based on the 2023 millage rate, we have utilized a tax liability of $7,192 for income capitalization purposes. Based upon our review of the Miami -Dade County Tax Collector records, there are no known past due taxes for the subject property. 23 © 2024 CBRE, Inc. CBRE Market Analysis METROPOLITAN MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET OVERVIEW Recent Performance The following table summarizes historical and projected performance for the overall metropolitan Miami -Miami Beach -Kendall, FL apartment market, as reported by Axiometrics. MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET Year Ending Inventory Completions Occupied Stock (Units) (Units) (Units) 2013 273,194 2,331 263,851 2014 275,677 2,483 266,580 2015 277,219 2,685 269,152 2016 283,050 5,867 272,294 2017 288,047 5,154 276,583 2018 292,857 5,051 280,147 2019 298,972 6,486 286,923 2020 307,007 8,035 291,687 2021 314,007 7,375 309,014 Occupancy 96.6% 96.7% 97.1% 96.2% 96.0% 95.7% 96.0% 95.0% 98.4% Effective Rent Effective Net Absorption ($/Unit / Mo.) Rent Change (Units) $1,356 5.22% 1,966 $1,443 4.93% 2,731 $1,538 4.05% 2,590 $1,537 2.73% 3,135 $1,598 1.83% 4,301 $1,709 3.58% 3,553 $1,758 1.38% 6,769 $1,702 -3.15% 4,780 $2,087 19.58% 17,322 Q 1 2022 314,852 845 309,972 98.5% $2,212 4.31% 939 Q2 2022 315,804 952 308,477 97.7% $2,342 4.48% -1,495 Q32022 317,448 1,644 307,544 96.9% $2,436 2.70% -903 Q4 2022 319,350 1,902 308,013 96.5% $2,484 0.55% 444 2022 319,350 5,343 308,013 96.5% $2,484 13.68% -1,016 Q12023 320,911 1,601 308,107 96.0% $2,518 0.90% 108 Q22023 322,323 1,412 308,141 95.6% $2,555 0.78% 27 Q3 2023 323,987 1,664 308,727 95.3% $2,566 -0.24% 601 Q4 2023 326,763 2,776 311,274 95.3% $2,548 -0.69% 2,554 2023 326,763 7,453 311,274 95.3% $2,548 1.07% 3,286 2024* 340,116 13,353 326,171 95.9% $2,590 1.60% 14,766 2025* 349,387 9,271 336,110 96.2% $2,665 2.90% 9,939 2026* 351,896 2,509 339,932 96.6% $2,762 3.60% 3,821 2027* 353,786 1,890 341,403 96.5% $2,856 3.40% 1,472 2028* 355,759 1,973 342,596 96.3% $2,958 3.60% 1,192 * Future Projected Data according to Axiometrics Source: Axiometrics, 4th Quarter 2023 The Miami -Miami Beach -Kendall, FL apartment market consists of approximately 326,763 units of apartment space. The following observations are noted from the table above: • As of 4th Quarter 2023, there were approximately 311,274 units of occupied apartment space, resulting in an occupancy rate of 95.3% for the metro area. This reflects no change from the previous quarter's occupancy of 95.3%, and a decrease from an occupancy rate of 96.5% from last year. • The area experienced positive 2,554 units of net absorption for the current quarter. This indicates an improvement from the previous quarter's positive 601 units of net absorption, and an improvement from the negative 1,016 units of net absorption from last year. • The area had completions of positive 2,776 units for the current quarter, which indicates an increase from the previous quarter's completions of positive 1,664 units, and indicates a decline from completions of positive 5,343 units from last year. 24 © 2024 CBRE, Inc. CBRE Market Analysis • The area achieved average effective rent of $2,548 per unit, which indicates a decrease from the previous quarter's effective rent of $2,566 per unit, and an increase from the effective rent of $2,484 per unit from last year. Historical Inventory — Market INVENTORY: MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET 350,000 307,007 1319,350 325,763 300,000 273,144 275,677 277,219 283,054 Z88 47 292,857 298,972 250,010 ,v30 150,000 100,000 50,09D 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024• 2025• 2026• 2027• 2028• . Future Projected Data according to Axio metrics Source: Axiometrics, 4th Quarter 2023 Inventory is projected to be 326,763 units at the end of the current year, which represents an increase from the previous year's inventory of 319,350 units. Inventory for next year is projected to be 340,1 16 units, reflecting an increase from the current year. Historical Occupancy - Market OCCUPANCY: MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET 99.0% 98.0% 97.0% 96.035 95.0% 94.0% 93.0% 96.7% 96.2% 96.55 96.0% 95.3% 95:0% 95.7% 962% 96.5% 96.3% 2013 2014 2:15 2 15 2017 2018 2019 2020 2021 2022 2023 2024• 2025• 2026• 2027• 2028• Future Projected Data according to Axio metrics Source: Axiometrics, 4th Quarter 2023 At the end of the current year, the occupancy rate is projected to be 95.3%, which reflects a decrease from the 96.5% occupancy rate at the end of last year. Occupancy for next year is projected to be 95.9%, reflecting an increase from the current year. 25 © 2024 CBRE, Inc. CBRE Market Analysis Historical Net Absorption - Market NET ABSORPTION: MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET 18,❑00 16,000 14,000 12,❑0❑ 10,000 8,000 6,000 4,000 2,00❑ 0 -2 090 4,301 3,135 3�`53 2,731 2,590 2013 2014 2015 2016 2017 2018 EMS 2019 14,766 9,939 4,78fY 3,286 3,821 1111.. 1,472 1,192 2020 2021 2� 2023 2024' 2025' 2026' 2027' 2028' -1,016 Future Projected Data according to Axio metrics Source: Axiometrics, 4th Quarter 2023 At the end of the current year, the area is projected to experience positive 3,286 units of net absorption, which indicates an improvement from the negative 1,016 units of net absorption for the previous year. The area is projected to experience positive 14,766 units of net absorption as of the end of next year, which indicates an improvement from the current year. Historical Completions - Market COMPLETIONS: MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET 14,000 12,000 10,0❑0 8,000 6,000 4,003 z❑❑❑ ❑ 5.867 2,331 2.483 2• 7,453 6,486 5.154 5,❑51 5,343 5,2'1 2,509 1,890 1,973 111 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024' 2025' 2026' 2027' 2028' Future Projected Data according to Axiometrics Source: Axiometrics, 4th Quarter 2023 The area is projected to achieve completions of positive 7,453 units for the current year, which indicates an improvement from the previous year's completions of positive 5,343 units. The area is projected to experience completions of positive 13,353 units as of the end of next year, which indicates an improvement from the current year. 26 © 2024 CBRE, Inc. CBRE Market Analysis Historical Effective Rent - Market EFFECTIVE RENT: MIAMI-MIAMI BEACH-KENDALL, FL APARTMENT MARKET 53,000 52,500 52,000 51,500 $1,000 $0 $1,356 $1,538 $1,537 $1,598 $1443 51,709 $1,758 52,087 $2,762 $2,856 52,665 i11I1II $2,958 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024• 2025• 2026• 2027• 2028• 'Future Projected Data according to Axiometrics Source: Axiometirics, dih Quarter 2023 The area is projected to achieve average effective rent of $2,548 per unit at the end of the current year, which indicates an increase from the previous year's effective rent of $2,484 per unit. The area is projected to achieve effective rent of $2,590 per unit by the end of next year, indicating an increase from the current year. 27 © 2024 CBRE, Inc. CBRE Market Analysis SUBMARKET SNAPSHOT The following table summarizes the supply of apartment units for each submarket within the Miami -Miami Beach -Kendall, FL market as of 4th Quarter 2023. SUBMARKET SNAPSHOT Submarket Inventory (Units) l,ornpieLivns Effective Rent ($/Unit / Mo.) Occupancy n Coral Gables/South Miami 52,915 1,762 $2,855 95.1% Downtown Miami/South Beach 72,290 1,032 $3,188 94.9% Hialeah/Miami Lakes 37,065 1,563 $2,158 98.0% Homestead/South Dade County 21,700 1,381 $1,943 95.8% Miami Gardens 20,954 112 $2,108 93.1% North Central Miami 15,951 716 $1,794 98.0% Northeast Miami 51,230 305 $2,501 95.1% Westchester/Kendall 28,016 174 $2,246 95.8% West Miami/Doral 26,642 408 $2,686 94.3% *Completions include trailing 4 quarters Source: Axiometrics, 4th Quarter 2023 Coral Gables/South Miami Submarket Important characteristics of the Coral Gables/South Miami apartment market are summarized below: CORAL GABLES/SOUTH MIAMI APARTMENT SUBMARKET Year Ending Inventory Completions Occupied Stock (Units) (Units) (Units) Occupancy Effective Rent Effective Net Absorption ($/Unit / Mo.) Rent Change (Units) 2013 41,032 547 40,224 98.0% $1,442 1.57% 370 2014 41,759 727 40,218 96.3% $1,606 4.85% -3 2015 42,241 482 40,560 96.0% $1,734 1.24% 342 2016 43,479 1,238 41,188 94.7% $1,765 2.15% 626 2017 44,542 1,132 42,386 95.2% $1,889 2.25% 1,200 2018 45,507 965 43,154 94.8% $1,949 1.76% 768 2019 46,126 619 44,055 95.5% $2,021 1.12% 900 2020 48,722 2,596 45,750 93.9% $1,850 -7.41% 1,694 2021 50,592 1,970 49,388 97.6% $2,308 17.12% 3,637 Q1 2022 50,816 224 49,678 97.8% $2,489 5.19% 295 Q2 2022 50,816 0 49,515 97.4% $2,618 4.38% -164 Q3 2022 51,093 277 49,438 96.8% $2,790 4.27% -79 Q4 2022 51,153 60 49,199 96.2% $2,864 0.45% -234 2022 51,153 561 49,199 96.2% $2,864 17.23% -185 Q1 2023 51,836 683 49,623 95.7% $2,873 0.44% 421 Q2 2023 52,231 395 49,640 95.0% $2,880 0.12% 20 Q3 2023 52,614 383 49,931 94.9% $2,867 -0.61 % 289 Q4 2023 52,915 301 50,343 95.1% $2,855 -0.86% 412 2023 52,915 1,762 50,343 95.1% $2,855 -0.22% 1,141 2024* 53,909 994 51,267 95.1% $2,862 0.20% 1,052 2025* 55,152 1,243 52,615 95.4% $2,895 1.20% 1,293 2026* 55,152 0 52,891 95.9% $2,982 3.00% 234 2027* 55,549 397 53,216 95.8% $3,060 2.60% 325 2028* 55,924 375 53,463 95.6% $3,144 2.70% 247 *Future Projected Data according to Axiometrics Source: Axiometrics, 4th Quarter 2023 28 © 2024 CBRE, Inc. CBRE Market Analysis The Coral Gables/South Miami apartment submarket consists of approximately 52,915 units of apartment space. The current submarket inventory represents approximately 16.2% of the overall market inventory. The following observations were noted from the table above: • As of 4th Quarter 2023, there were approximately 50,343 units of occupied apartment space, resulting in an occupancy rate of 95.1% for the submarket. This reflects a small increase from the previous quarter's occupancy of 94.9%, and a decrease from an occupancy rate of 96.2% from last year. The submarket occupancy is below the 95.3% market occupancy. • The submarket experienced positive 412 units of net absorption for the current quarter. This indicates an improvement from the previous quarter's positive 289 units of net absorption, and an improvement from the negative 185 units of net absorption from a year ago. Overall, the submarket has experienced positive 1,142 units of net absorption for the current year-to-date period. The submarket's current net absorption of positive 412 units is below the overall market net absorption of positive 2,554 units. • The submarket had completions of positive 301 units for the current quarter, which indicates a decrease from the previous quarter's completions of positive 383 units, and an increase from the completions of positive 60 units from last year. • The submarket achieved average effective rent of $2,855 per unit, which indicates a decrease from the previous quarter's effective rent of $2,867 per unit, and a decrease from the effective rent of $2,864 per unit from last year. The submarket's current effective rent of $2,855 per unit compares favorably with the overall market asking rent of $2,548 per unit. Historical Inventory - Submarket INVENTORY: CORAL GABLES/SOUTH MIAMI APARTMENT MARKET 350,000 300,300 283,050 288,047 292,857 298,97 273,194 275,677 277,219 150,000 50.030 344,11 307407 314,007 31955C 326,763 349,307 351,1395 353,7E5 355,759 2013 2014 2015 2016 2017 201E 2019 2020 2021 2022 2023 2024• 2025` 2025. 2027• 202E• p Mark et —0—Subm arket Future Projected Data according to::xiumetrics Source: Axiometrics, 4th Quarter 2023 29 © 2024 CBRE, Inc. CBRE Market Analysis Submarket Inventory is projected to be 52,915 units at the end of the current year, which represents a small increase from the previous year's submarket inventory of 51,153 units. Inventory for next year is projected to be 53,909 units, reflecting a small increase from the current year. Historical Occupancy - Submarket OCCUPANCY: CORAL GABLES/SOUTH MIAMI APARTMENT MARKET 2013 2014 2015 2010 2017 Future Projected Data according to Axiometrics Source: Axiometrics, dth Quarter 2023 Submarket occupancy is projected to be 95.1% at the end of the current year, which represents a decrease from the previous year's submarket occupancy of 96.2%. Submarket occupancy for next year is projected to be 95.1%, reflecting no change from the current year. Historical Net Absorption - Submarket NET ABSORPTION: CORAL GABLES/SOUTH MIAMI APARTMENT MARKET 12,000 2015 2010 2020 2021 2023 202,1" 2025" 2025" 2027' 2023' -1,010 p Market —0—Sutxnaket Future Projected Data according to Axametrics Source: Axiometrics, dth Quarter 2023 30 © 2024 CBRE, Inc. CBRE Market Analysis Net absorption in the submarket is projected to be positive 1,141 units at the end of the current year, reflecting an improvement from the previous year's net absorption of negative 185 units. Net absorption for next year is projected to be positive 1,052 units, indicating a decline from the current year. Historical Completions - Submarket COMPLETIONS: CORAL GABLES/SOUTH MIAMI APARTMENT MARKET 2913 2014 2015 2016 zP17 2015 2019 2029 2021 2022 2923 2024' 2025' 2026' 2027' 2028' Future Projected Data according to 4xiometrics Source: Axiometri cs, dth Quarter 2023 The submarket is projected to achieve completions of positive 1,762 units at the end of the current year, which indicates an improvement from the previous year's completions of positive 561 units. The submarket is projecting completions of positive 994 units for next year, which indicates a decline from the current year. Historical Effective Rent - Submarket EFFECTIVE RENT: CORAL GABLES/SOUTH MIAMI APARTMENT MARKET 53.52 53.000 52,500 52,000 51.5 51 212 5500 51,606 $1,442 A 51,889 51,949 52,021 1 64 52,855 52,862 52,895 52,982 55,060 53,144 $2,76 1 2013 2015 2015 2017 201B 2019 2020 2021 2922 2923 2024' 2025' 2426' 2927' 20255 p Mark et —0—Sulamar ket ' Future Projected Data according to Axiometrics Source: Axiom etri a, dth Quarter 2023 31 © 2024 CBRE, Inc. CBRE Market Analysis The submarket is projected to achieve average effective of $2,855 per unit at the end of the current year, which represents a decrease from the previous year's effective rent of $2,864 per unit. The submarket is projected to achieve average effective rent of $2,862 per unit, reflecting an increase from the current year. DEMOGRAPHIC ANALYSIS Demand for residential properties is a direct function of demographic characteristics analyzed on the following pages. Housing, Population and Household Formation The following table illustrates the population and household changes for the subject neighborhood with primary focus on the 1-, 3- and 5-mile radius. POPULATION AND HOUSEHOLD PROJECTIONS Population 2028 Total Population 2023 Total Population 2010 Total Population 2000 Total Population Annual Growth 2023 - 2028 Annual Growth 2010 - 2023 Annual Growth 2000 - 2010 Households 2028 Total Households 2023 Total Households 2010 Total Households 2000 Total Households Annual Growth 2023 - 2028 Annual Growth 2010 - 2023 Annual Growth 2000 - 2010 1 Mile Radius 3 Mile Radius 5 Mile Radius Miami -Dade County 62,739 328,653 47,314 297,314 29,410 243,495 22,809 215,363 5.81% 2.02% 3.73% 1.55% 2.57% 1.24% 31,883 151,667 23,268 133,208 12,753 98,251 8,715 79,229 6.50% 2.63% 4.73% 2.37% 3.88% 2.18% 584,913 552,278 494,645 460,154 1.15% 0.85% 0.73% 260,922 241,089 202,187 179,009 1.59% 1.36% 1.23% 2,772,490 2,733,765 2,496,435 2,253,399 0.28% 0.70% 1.03% 1,019,262 989,193 867,352 776,797 0.60% 1.02% 1.11% Source: ESRI As shown, the subject's neighborhood is experiencing moderate positive increases in both population and households. 32 © 2024 CBRE, Inc. CBRE Market Analysis Income Distributions Household income available for expenditure on housing and other consumer items is a primary factor in determining the price/rent level of housing demand in a market area. In the case of this study, projections of household income, particularly for renters, identifies in gross terms the market from which the subject submarket draws. The following table illustrates estimated household income distribution for the subject neighborhood. HOUSEHOLD INCOME DISTRIBUTION Households by Income Distribution (2023) <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ 1 Mile Radius 3 Mile Radius 5 Mile Radius Miami -Dade County 13.79% 7.10% 7.43% 10.68% 17.44% 11.45% 16.99% 6.74% 8.38% 17.46% 10.10% 8.48% 10.77% 15.22% 9.99% 12.05% 6.57% 9.36% 16.42% 10.48% 8.60% 11.41% 15.57% 10.62% 11.49% 6.10% 9.30% 12.06% 8.79% 8.29% 1 1.82% 16.97% 12.46% 13.96% 6.75% 8.88% Source: ESRI The following table illustrates the median and average household income levels for the subject neighborhood. HOUSEHOLD INCOME LEVELS Income 2023 Median Household Income 2023 Average Household Income 2023 Per Capita Income Source: ESRI 1 Mile Radius 3 Mile Radius 5 Mile Radius Miami -Dade County $63,538 $95,039 $46,812 $53,864 $92,459 $41,453 $53,623 $91,842 $40,145 $60,992 $95,752 $34,693 33 © 2024 CBRE, Inc. CBRE Market Analysis Employment An employment breakdown typically indicates the working-class characteristics for a given market area. The specific employment population within the indicated radii of the subject is as follows: EMPLOYMENT BY INDUSTRY Occupation (2023) 1 Mile Radius 3 Mile Radius 5 Mile Radius Miami -Dade County Agric/Forestry/Fishing/Hunting 0.04% 0.21% 0.23% 0.56% Construction 6.03% 12.07% 10.44% 8.83% Manufacturing 3.35% 4.05% 4.02% 4.77% Wholesale Trade 2.69% 2.26% 2.15% 2.70% Retail Trade 10.34% 9.88% 9.89% 10.77% Transportation/Warehousing 8.95% 8.55% 9.09% 9.44% Information 2.78% 2.09% 2.08% 1.81% Finance/Insurance 5.63% 5.42% 5.27% 5.36% Prof/Scientific/Tech Services 11.34% 11.08% 10.25% 8.87% Mgmt of Companies/Enterprises 0.24% 0.10% 0.09% 0.10% Admin/Support/Waste Mgmt Srvcs 6.72% 7.26% 7.27% 6.69% Educational Services 4.20% 4.74% 5.37% 7.12% Health Care/Social Assistance 12.36% 9.78% 10.46% 12.95% Arts/Entertainment/Recreation 4.27% 2.81% 2.65% 2.23% Accommodation/Food Services 13.77% 10.88% 1 1 .31 % 8.15% Other Services (excl Publ Adm) 4.45% 6.06% 6.54% 5.90% Public Administration 2.84% 2.77% 2.88% 3.76% Source: ESRI The previous table illustrates the employment character of the submarket, indicating a predominantly lower- to middle -income employment profile, with the majority of the population holding executive & managerial or professional specialty related jobs. Outlook Based on this analysis, the immediate area surrounding the subject is projected to experience moderate, positive growth relative to households and population into the near future. Given the area demographics, it appears that demand for both comparable surrounding area apartment units and the subject will continue to be favorable. 34 © 2024 CBRE, Inc. CBRE Market Analysis SUBJECT ANALYSIS The subject is a renovated 6-unit multifamily property built 1954 and recently renovated in 2023 (pending completion). Additional comparable absorption in the South Florida market: COMPARABLE SPACE ABSORPTION Property County Size (Units) Lease Up (Months) Absorption/Month (Units) Lazul North Miami Miami -Dade 314 14 22 Circ Hollywood Broward 344 19 18 Shoreline Sole MIA Miami -Dade 370 11 34 Aviva Coral Gables Miami -Dade 240 18 13 Soma at Bricekll Miami -Dade 393 11 36 Legacy at 19th Miami -Dade 80 5 16 275 Fontaine Parc Miami -Dade 133 6 22 215 Park Broward 45 7 6 Compiled by CBRE Avg./Month = 21 The above comparable space absorption provides an absorption rate per month range of 6 to 36 units, with an average of 21 units per month. It is noted that the smaller developments (less than 100 units) had a reduced absorption of 6 to 16 units per month. Therefore, we conclude to a reduced absorption of 2 units per month or 3 months for stabilization, which should allow a reasonable amount of time to stabilize the subject property. We have applied a 3-month lease -up period upon completion of construction. 35 © 2024 CBRE, Inc. CBRE Market Analysis COMPETITIVE PROPERTIES Comparable properties were surveyed in order to identify the current occupancy within the competitive market. The comparable data is summarized in the following table: SUMMARY OF COMPARABLE MULTIFAMILY RENTALS Comp. No. Name Location Occupancy 1 1160 NW 4th Street and 337 NW 1160 NW 4th Street 12th Avenue 337 NW 12th Avenue Miami, FL 2 San Gabriel Apartments 858 NW 3rd Street Miami, FL 3 Florida Apartments 1050 NW 2nd Street Miami, FL 4 Temple Court Apartments 431 NW 3rd St Miami, FL 5 East River Living 39 NW 7th Avenue Miami, FL 6 540 NW 7th Street 540 NW 7th Street Miami, FL 7 Rio Mio 1160 NW North River Drive Miami, FL 8 726 Holding LLC 726 NW 3rd Street Miami, FL 100% 100% 100% 98% 88% 98% 9 7% 100% Subject Six - Unit Renovated LIHTC 1851 NW 1st Court, 0% Miami, Florida Compiled by CBRE Occupancy Based on the foregoing analysis, CBRE, Inc.'s conclusion of stabilized occupancy for the subject is illustrated in the following table. This estimate considers both the physical and economic factors of the market. OCCUPANCY CONCLUSIONS Miami -Miami Beach -Kendall, FL Market Coral Gables/South Miami Submarket Rent Comparables Subject's Current Occupancy 95.3% 95.1% 97.3% 0.0% Subject's Stabilized Occupancy Lease -up Period 97.0% 3 Months Compiled by CBRE 36 © 2024 CBRE, Inc. CBRE Market Analysis CONCLUSION In general, the area apartment market and the local submarket are exhibiting stabilized vacancy levels and moderate rent growth. As such, the local submarket should maintain a relatively stable occupancy position in the near term. The long-term projection for the subject submarket is for continued moderate growth in rental rates. With respect to the subject property in particular, we believe the subject is reasonably well located for an apartment project. The site is conveniently located with respect to employment centers and major roadways, and surrounding apartment developments are experiencing good levels of demand. Based upon our analysis, the subject property should experience good market acceptance. Per the market analysis data, occupancy levels within the subject submarket currently show an occupancy of 95.1% for Q4 2023 as well as for the total of 2023. In addition, occupancies are projected to be 95.1% for 2024 and show to be in the range of 95.6% to 95.9% for years 2025- 2028, indicating overall stable occupancy levels within the subject submarket. In addition, effective rent change currently shows a negative -0.86% for Q4 2023 and showed a minimal decrease of -0.22% for the total of 2023. However, effective rent growth is expected to have increases ranging from 0.20% to 3.00% each subsequent year through 2028 indicating an increasing/stable rental market within the subject submarket. Therefore, given the above data/analysis and considering that the subject is a low-income rent restricted property which typically yield higher occupancy levels, we conclude to a stabilized vacancy of 3.0% for the As Is LIHTC scenario and 5.0% for the Hypothetical assuming market rents and expenses scenario and a 2.5% rent growth for market rents. 37 © 2024 CBRE, Inc. CBRE Highest and Best Use Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT Legal Permissibility The legally permissible uses were discussed in the Site Analysis and Zoning Sections. Physical Possibility The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, etc., to be a separately developable site. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites provides additional evidence for the physical possibility of development. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As discussed in the market analysis, the subject multifamily market is generally stabilized. Development of new multifamily properties has occurred in the past few years. Maximum Productivity - Conclusion The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land. Based on the information presented above and upon information contained in the market and neighborhood analysis, we conclude that the highest and best use of the subject as if vacant would be the development of an multifamily property. More specifically, the subject would be developed at a density of 18 units per acre, which is typical of similar projects in this market. The design would be characterized as a multi -unit walk- up style property. Our analysis of the subject and its respective market characteristics indicate the most likely buyer, as if vacant, would be an investor (land speculation) or a developer. 38 © 2024 CBRE, Inc. CBRE Highest and Best Use AS IMPROVED Legal Permissibility The site has been improved with an multifamily development that is a legal nonconforming use due to density as previously discussed in the zoning section of the report. Physical Possibility The layout and positioning of the improvements are considered functional for multifamily use. While it would be physically possible for a wide variety of uses, based on the legal restrictions and the design of the improvements, the continued use of the property for multifamily users would be the most functional use. Financial Feasibility The financial feasibility of an multifamily property is based on the amount of rent which can be generated, less operating expenses required to generate that income; if a residual amount exists, then the land is being put to a productive use. Based upon the income capitalization approach conclusion, the subject is producing a positive net cash flow and continued utilization of the improvements for multifamily purposes is considered financially feasible. Further, the value of the subject property as improved clearly exceeds the underlying land value. Maximum Productivity - Conclusion As shown in the applicable valuation sections, buildings that are similar to the subject have been acquired or continue to be used by multifamily tenants. None of the comparable buildings have been acquired for conversion to an alternative use. The most likely buyer for the subject property is considered to be Investor -Regional. Based on the foregoing, the highest and best use of the property, as improved, is consistent with the existing use as an multifamily development. 39 © 2024 CBRE, Inc. CBRE Insurable Replacement Cost Insurable Replacement Cost Insurable Replacement Cost is defined as follows: Replacement Cost for Insurance Purposes - The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design, and layout for insurance coverage purposes guaranteeing that damaged property is replaced with new property (i.e., depreciation is not deducted). 6 CBRE, Inc. has followed traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry -accepted publications such as the Marshall Valuation Service. The methodology employed is a derivation of the cost approach and is not reliable for Insurable Replacement Cost estimates. Actual construction costs and related estimates can vary greatly from this estimate. The Insurable Replacement Cost estimate presented herein is intended to reflect the value of the destructible portions of the subject, based on the replacement of physical items that are subject to loss from hazards (excluding indestructible items such as basement excavation, foundation, site work, land value and indirect costs). In the case of the subject, this estimate is based upon the base building costs (direct costs) as obtained via the Marshall Valuation Service cost guide, with appropriate deductions. This analysis should not be relied upon to determine proper insurance coverage as only consultants considered experts in cost estimation and insurance underwriting are qualified to provide an Insurable Replacement Cost. It is provided to aid the client/reader/user as part of their overall decision -making process and no representations or warranties are made by CBRE, Inc. regarding the accuracy of this estimate. It is strongly recommended that other sources be utilized to develop any estimate of Insurable Replacement Cost. 6 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), 163. 40 © 2024 CBRE, Inc. CBRE Insurable Replacement Cost INSURABLE REPLACEMENT COST Primary Building Type: Multifamily Height per Story: 10' Effective Age: 5 YRS Number of Buildings: 1 Condition: Good Gross Building Area: 2,952 SF Number of Units: 6 Average Unit Size: 428 SF Number of Stories: 2 Average Floor Area: 1 ,476 SF MVS Sec/Page/Class S12/P16 Quality/Class Average/C Building Component Multiple Residences Component Sq. Ft. 2,952 SF Base Square Foot Cost $109.00 Square Foot Refinements Heating and cooling Subtotal Height and Size Refinements Number of Stories Multiplier Height per Story Multiplier Floor Area Multiplier Subtotal Cost Multipliers Current Cost Multiplier Local Multiplier Final Square Foot Cost Base Component Cost $0.00 $109.00 1 .000 1 .000 1 .000 $109.00 0.99 0.97 $104.67 $308,994 Base Building Cost Insurable Exclusions (via Marshall Valuation Service cost data) $308,994 10.0% of Total Building Cost ($30,899) Indicated Insurable Replacement Cost $278,094 Rounded $300,000 Value Per SF $116.82 Compiled by CBRE 41 © 2024 CBRE, Inc. CBRE Sales Comparison Approach Sales Comparison Approach The following map and table summarize the comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda. Prepared hy. CBRE Valuation & Advisory Services 0 Six - Unit Renovated LIHTC 1851 NW 1st Court Miami, FL. 33136 B-Uni1 Apartment 1380 SW 2nd Street Miami, FL, 33135 e 4-Unit Apartment 1401 S. Le Jeune Road Miami, FL, 33134 0 Share Crest Apartments 1030 NE 80th Street !Amer FL, 33138 0 6-Unit Apartment Building 701 NE 121 Street North Miami, FL, 33161 ' " CBRE SUMMARY OF COMPARABLE MULTIFAMILY SALES No. Property Name Transaction Interest YOC / Properly No. Avg. Unit Actual Sale Adjusted Sale Price Per NOI Per Type Date Transferred Reno'd Type Units Size Price Pricer Unit Occ. Unit OAR 1 8-Unit Apartment Sole Dec-23 Leased Fee 1971 Residential 884 $1,800,000 $1,800,000 $225,000 100.00% $13,495 6.00% 1380 SW 2nd Street Miami, FL 33135 2 4-Unit Apartment Sale Dec-23 Leased Fee 1944 Residential 4 747 $1,125,000 $1,125,000 $281,250 100.00% $14,434 5.13% 1401 S. Le Jeune Rood Miami, FL 33134 3 Shore Crest Apartments Sole Mor-23 Leased Fee 1962 / Residential 6 700 $1,600,000 $1,600,000 $266,667 100.00% $18,367 6.89% 1030 NE 80th Street 2015 Miami, FL 33138 4 6-Unit Apartment Building Sole Mor-23 Leased Fee 1966 Residential 6 670 $1,260,000 $1,260,000 $210,000 100.00% $13,596 6.47% 701 NE 121 Street North Miami, FL 33161 Sub,. Six - Unit Renovated LIHTC Pro 1851 NW 1st Court Forma Miam/ FL 33136 1954 / Multifamily 6 428 --- --- --- 97.00% $9,545 2023 Ad,usted sale price for cash equivalency, lease -up and/or deferred maintenance )where applicable) Compiled by CBRE The sales utilized represent the best data available for comparison with the subject. They were selected from our research of comparable improved sales within the Miami and surrounding areas. These sales were chosen based upon size, appeal, and location. 42 © 2024 CBRE, Inc. CBRE Sales Comparison Approach Location Adjustments The following supplemental data was collected in order to provide support for the location adjustments: IMPROVED SALES LOCATION ADJUSTMENT ANALYSIS Comparable Number Subject 2 3 4 Address 1851 NW 1st Court 1380 SW 2nd 1401 S. Le 1030 NE 80th 701 NE 121 Street Jeune Road Street Street Radius for Demographic Analysis 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 2023 Households 133,208 149,607 100,546 56,085 62,950 2023 Average Household Income $92,459 $93,470 $94,458 $85,355 $78,667 AHI Relative to Subject --- 1.1% 2.2% -7.7% -14.9% 2023 Median Value of Owner Occupied Housing Units $464,207 $465,340 $469,886 $476,716 $384,374 2023 % Renter Occupied Housing Units 65.1% 64.2% 55.4% 54.9% 49.6% 2023 %College/Graduate Degree Age 25+ 38.4% 40.1% 38.1% 33.9% 25.8% 2023 Median Age 38.1 39.7 43.8 38.5 37.1 Indicated Qualitative Adjustment --- Similar Similar Similar Inferior Concluded Quantitative Adjustment 0% 0% 0% 10% Compiled by CBRE Comparable 4 was considered inferior based primarily on households, average household income and/or median value therefore, an upward adjustment was applied. The indicated adjustments will be used in the following discussions. DISCUSSION/ANALYSIS OF IMPROVED SALES Improved Sale One This comparable is an 8-unit multifamily walk-up property built in 1971 on a 0.23 acre site located at 1380 SW 2nd Street in Miami. The property is concrete block construction and the interiors are average finish. It includes all studio units. The property sold in December 2023 for $1,800,000 or $225,000 per unit and the indicated cap rate is based on in place rent and operating expenses are based on market, including taxes reset at 80% of the sale price. In terms of age/condition, this comparable was judged inferior due to older construction and more long-lived physical deterioration and received an upward adjustment for this characteristic. An adjustment for avg. unit size was considered appropriate for this comparable given n/a. Because of this superior trait, a downward adjustment was considered appropriate. Overall, the adjustments applied to this comparable resulted in a net adjustment of zero, whereby the property was deemed similar in comparison to the subject. Improved Sale Two This comparable is an 4-unit multifamily walk-up property built in 1944 on a 0.18 acre site located at 1401 S. Le Jeune Road in Miami. The property is concrete block construction, and the interiors are average finish. It includes all 1 BR units. The property sold in December 2023 for $1,125,000 or $281,250 per unit and the indicated cap rate is based on in place rent and operating expenses are based on market, including taxes reset at 80% of the sale price. 43 © 2024 CBRE, Inc. CBRE Sales Comparison Approach In terms of age/condition, this comparable was judged inferior due to older construction and more long-lived physical deterioration and received an upward adjustment for this characteristic. An adjustment for avg. unit size was considered appropriate for this comparable given n/a. Because of this superior trait, a downward adjustment was considered appropriate. Overall, the adjustments applied to this comparable resulted in a net adjustment of zero, whereby the property was deemed similar in comparison to the subject. Improved Sale Three The property is a 6-unit multi -family property located at 1030 NE 80th Street in Miami, Florida. The property consists of one building, two-story property. The improvements were constructed in 1962 and have been renovated in approx. 2022 and is situated on a 0.17-acre site. The improvements were 100.0% leased and is listed for $1,650,000 or $275,000 per unit. The property includes one and two -bedroom units and show to have all been updated. An attempt was made to contact the parties involved/info available for, however, were unsuccessful. In terms of age/condition, this comparable was judged inferior due to older construction and more long-lived physical deterioration and received an upward adjustment for this characteristic. An adjustment for avg. unit size was considered appropriate for this comparable given n/a. Because of this superior trait, a downward adjustment was considered appropriate. Overall, this comparable was deemed superior in comparison to the subject and a downward net adjustment was warranted to the sales price indicator. Improved Sale Four The property is a 6-unit multi -family walk-up property located at 701 NE 121 Street in North Miami, Florida. The property consists of a single, two-story apartment building. The improvements were constructed in 1966 and are situated on a 0.21-acre site. According to the Purchase and Sale Agreement dated December 25, 2022, the subject is currently under contract for $1,300,000, or $216,667 per unit and per addendum to the contract, the sale will include a $30,000 credit towards closing costs. The actual reported sale price per Miami -Dade County is $1,260,000 or $210,000 per unit. The reason for the disconnect is not known; however, its likely due to further negotiations and we used the recorded sale price. The property was 100% occupied at sale and per the appraisers pro forma yielded a capitalization rate of 6.47%, based on stabilized income with real estate taxes adjusted to 75% of the contract price. The upward adjustment for location reflects this comparable's inferior feature with respect to inferior demographics which garner lower rental rates. In terms of age/condition, this comparable was judged inferior due to older construction and more long-lived physical deterioration and received an upward adjustment for this characteristic. An adjustment for avg. unit size was considered appropriate for this comparable given n/a. Because of this superior trait, a downward adjustment was considered appropriate. Overall, this comparable was deemed inferior in comparison to the subject and an upward net adjustment was warranted to the sales price indicator. 44 © 2024 CBRE, Inc. CBRE Sales Comparison Approach SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. MULTIFAMILY SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 Transaction Type Sale Sale Sale Sale Transaction Date Dec-23 Dec-23 Mar-23 Mar-23 Interest Transferred Leased Fee Leased Fee Leased Fee Leased Fee Year Built/Renovated 1971 1944 1962 / 1966 2015 Property Type Residential Residential Residential Residential No. Units 8 4 6 6 Avg. Unit Size 884 747 700 670 Actual Sale Price $1,800,000 $1,125,000 $1,600,000 $1,260,000 Adjusted Sale Price 1 $1,800,000 $1,125,000 $1,600,000 $1,260,000 Price Per Unit 1 $225,000 $281,250 $266,667 $210,000 Occupancy 100% 100% 100% 100% NOI Per Unit $13,495 $14,434 $18,367 $13,596 OAR 6.00% 5.13% 6.89% 6.47% Adj. Price Per Unit $225,000 $281,250 $266,667 $210,000 Property Rights Conveyed 0% 0% 0% 0% Financing Terms 1 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Market Conditions (Time) 0% 0% 0% 0% Subtotal - Price Per Unit $225,000 $281,250 $266,667 $210,000 Location 0% 0% 0% 10% Project Size 0% 0% 0% 0% Age/Condition 10% 10% 5% 10% Quality of Construction 0% 0% 0% 0% Avg. Unit Size -10% -10% -10% -10% Project Amenities 0% 0% 0% 0% Parking 0% 0% 0% 0% Total Other Adjustments 0% 0% -5% 10% Indicated Value Per Unit $225,000 $281,250 $253,333 $231,000 Absolute Adjustment 20% 20% 15% 30% Subj. Pro Forma 1954 / 2023 Multifamily 6 428 97% $9,545 'Adjusted for cash equivalency, lease -up and/or deferred maintenance (where applicable) Compiled by CBRE SALES COMPARISON APPROACH CONCLUSION Prior to analysis, the comps reflect an unadjusted range in values from $210,000 to $281,250 per unit with an unadjusted average of $245,729 per unit. After analysis, the comps reflect an adjusted range in values from $225,000 to $281,250 per unit with an adjusted average of $247,646 per unit. The comparables were considered to have a reasonably narrow adjusted range therefore, a conclusion towards the central tendency is considered reasonable. 45 © 2024 CBRE, Inc. CBRE Sales Comparison Approach In addition, we also analyzed the sales comparison approach for the hypothetical As -Is (property assuming market rents and expenses/no tax credit) and As Is (LIHTC) via the direct capitalization method to provide an adjustment: ADJUSTMENT DUE TO REAL ESTATE (RE) TAXES/NO EXEMPTION Hypothetical As Is (Property Assuming Market) As Is (LIHTC As Is) Adjustment due to Income/Rent Restrictions Compiled by CBRE $1,525,000 $1,025,000 $500,000 Therefore, the difference in value yields a $500,000 adjustment based on the above scenarios which has been deducted to arrive at the As Is value conclusion. The following table presents the estimated value for the subject as indicated by the sales comparison approach. SALES COMPARISON APPROACH Total Units X Value Per Unit = Value 6 6 X $247,500 = $1,485,000 X $252,500 = $1,515,000 VALUE CONCLUSION As Stabilized Market Value $1,500,000 Rounded $1,500,000 Lease -Up Discount (14,000) As Complete Market Value $1,486,000 Rounded $1,475,000 Adjustment due to Income/Rent Restrictions (500,000) As Is Market Value 1,000,000 Rounded $1,000,000 Value Per Unit $166,667 Compiled by CBRE As previously discussed, the improvements were vacant and are considered to be not stabilized. Therefore, we have estimated a 3-month lease up for the subject and have deducted a lease -up discount from the As Stabilized value in order to provide the As Is value. Per information provided, the electrical work remaining at the subject requires no additional costs to complete with only an inspection pending by the City of Miami to be able to receive the certificate of occupancy (CO). Therefore, no additional cost to complete was deducted to arrive at the As Is value. 46 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Income Capitalization Approach The following map and table summarize the primary comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda. Prepared by: CBRE Valuation 6 Advisory Service) 0 SM - Unit Renovated LIWTC 1851 NW let Court Miami, FL 33136 0 1160 NW 4th Street and 337 NW 12th Avenue 1160 NW 4th Street Miami, FL 33128 0 San Ga brie! Apartments 858 NW 3rd Street Miami, FL 33128 ® Florida Apartments 1050 NW2nd Street Miami, FL 33128 0 Temple Court Apartmants 431 NW 3rd St Miami, FL 33128 QEast River Living 39 NW 7th Avenue Miami FL 33128 ® 540 NW 7th Street 540 NW 7th Street Miami, FL 33136 0 Rio M10 1160 NW North River Drive Miami. FL, 33136 0 726 Holding LLC 726 NW 3rd Street Miami, FL 33128 Q mapbox Ill'L Z Le IP ?... Illik __.0 z W Flagler St© et • 11, i ts-01N B 0 rti Z co 3 CL m D 30 1D NE 1st 2' Mapbox, s� opeoS4celMap CBRE SUMMARY OF COMPARABLE MULTIFAMILY RENTALS No. Property Name YOC / No. Avg. Rent Location Reno'd Property Subtype Occ. Units Per Unit 1160 NW 4th Street and 337 NW 12th 1160 NW 4th Street 1937 / Multi -unit Garden 100% 16 $2,108 Avenue 337 NW 12th Avenue 2016 2 San Gabriel Apartments 858 NW 3rd Street 1925 Multi -unit Garden 100% 24 $1,590 Miami, FL 33128 3 Florida Apartments 1050 NW 2nd Street 1925 Multi -unit Walk-up 100% 24 $1,839 Miami, FL 33128 4 Temple Court Apartments 431 NW 3rd St 1913 / Multi -unit Garden 98% 61 $1,058 Miami, FL 33128 2006 5 East River Living 39 NW 7th Avenue 2022 Multi -unit Garden 88% 34 $606 Miami, FL 33128 6 540 NW 7th Street 540 NW 7th Street 1957 / Multi -unit Garden 98% 51 $1,664 Miami, FL 33136 2018 7 Rio Mio 1160 NW North River Drive 1964 Multi -unit Lofts 97% 42 $1,533 Miami, FL 33136 726 Holding LLC 726 NW 3rd Street 2022 Multi -unit Garden 100% 24 $1,791 Miami, FL 33128 Subj. Six - Unit Renovated LIHTC 1851 NW 1st Court 1954 / Multifamily 0% 6 Miami, FL 33136 2023 Compiled by CBRE The rentals utilized represent the best data available for comparison with the subject. They were selected from our research within the Miami and surrounding areas. 47 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Location Adjustments The following supplemental data was collected in order to provide support for our location conclusions: MULTIFAMILY RENT LOCATION ADJUSTMENT ANALYSIS Comparable Number Subject 1 2 3 4 5 6 7 8 Address 1851 NW 1st Court 1160 NW 4th 858 NW 3rd 1050 NW 2nd 431 NW 3rd St 39 NW 7th 540 NW 7th 1160 NW 726 NW 3rd Street Street Street Avenue Street North River Street Drive Radius for Demographic Analysis 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 2023 Households 133,208 147,997 141,640 146,242 132,985 137,486 135,880 146,686 138,804 2023 Average Household Income S92,459 $93,055 $93,864 $93,484 $95,310 $95,014 $94,206 $91,262 $94,389 AHI Relative to Subject 0.6% 1.5% 1.1% 3.1% 2.8% 1.9% •1.3% 2.1% 2023 Median Value of Owner Occupied Housing Units $464,207 $456,685 $464,117 $459,480 $474,656 $470,962 $469,070 $451,595 $468,359 2023 % Renter Occupied Housing Units 65.1% 63.6% 63.7% 63.6% 64.1% 63.8% 64.0% 63.8% 63.7% 2023 %College/Graduate Degree Age 25+ 38.4% 39.1 % 39.1 % 39.4% 39.8% 39.7% 39.1 % 38.0% 39.2% 2023 Median Age 38.1 39.3 39.2 39.3 38.9 39.2 38.9 39.1 39.2 Indicated Qualitative Adjustment Similar Similar Similar Similar Similar Similar Similar Similar Concluded Quantitative Adjustment 0% 0% 0% 0% 0% 0% 0% 0% Compiled by CBRE The comparables were considered reasonably similar to the subject based primarily on households, average household income and/or median value therefore, no adjustments were applied. Rent Comparable One This comparable is a multi -family property with 16-units in 2, two story buildings built in 1937 on a 0.17 acre site located at 1 160 NW 4th Street and 337 NW 12th Avenue in Miami, Florida. The property was renovated in 2016/2017. Rent Comparable Two This property is a 24-unit multi -family walk-up property located at 858 NW 3rd Street in Miami, Florida. The property consists of two, two-story apartment buildings. The improvements were constructed in 1925 and are situated on a 0.34-acre site. The unit mix is comprised of 24 1 BR/1 BA units with a small den room adjacent to the kitchen and the units have an average unit size of 625 SF. As of the most current roll provided, the property is 100% occupied. Rent Comparable Three This rent comparable is a 24-unit multifamily walk-up property located in the neighborhood of Little Havana at 1050 NW 2nd Street, Miami, Florida. The property is a single building of 3 floors built in 1925 on a 0.31 acre site. 48 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Rent Comparable Four This property is a 61-unit multi -family garden property located at 431 NW 3rd St in Miami, Florida. The property consists of one three-story apartment building and one two-story apartment building. The improvements were constructed in 1913, renovated in 2006 and are situated on a 0.53-acre site. Rent Comparable Five This property is a 34-unit multi -family mid/high rise property located at 39 NW 7th Avenue in Miami, Florida. The property is a single, eight -story apartment building. The improvements are situated on a 0.23-acre site. The improvements consist of a combination of studios, one - bedroom, one -bedroom plus den, and two -bedroom units. Unit's size will range from 444 to 867 square feet. Available units were provided via the development website as attempts to contact the leasing office were unsuccessful. Rent Comparable Six This is a 51-unit apartment complex located at 540 NW 7th Street in Miami, Florida. . 2023 AV: $5,990,000. Cross Streets: NW 7th Avenue and NW 7th Street. Neighborhood: Overtown Rent Comparable Seven This comparable rental represents the Rio Mio apartments, a 42-unit multifamily apartment property located at 1 160 NW N. River Drive in Miami, Florida. The improvements were originally constructed in 1964 and reported to be in average condition. . 2023 AV: $4,680,000. Cross Streets: NW 12th Avenue and Dolphin Expressway. Neighborhood: Allapattah Rent Comparable Eight This is a 24-unit multi -family walk-up property located at 726 NW 3rd Street in Miami, Florida. The property consists of a single, three-story apartment building. The improvements were constructed in 2022 and are situated on a 0.17-acre site. The improvements were 100.0% leased as of the date of the rent roll (as of October 30, 2023) and are considered to be stabilized. The property consists of only studio units with an avg. unit size of 408 square feet. In addition, there were no amenities noted (on -site parking, gym, swimming pool, etc.). 49 © 2024 CBRE, Inc. CBRE Income Capitalization Approach SUBJECT RENTAL INFORMATION The following table shows the subject's unit mix and restricted rental rates. SUBJECT RENTAL INFORMATION Type Studio @ 40% AMI 1BR/1BA @ 60% AMI 2BR/1 BA @ 80% AMI No. of Unit Units Size (SF) 2 288 2 436 2 560 Unit Occ. 0% 0% 0% Rent Restricted $/Unit $723 $1,161 $1,858 Rent Per SF $2.51 $2.66 $3.32 Total/Average: 6 428 0% $1,247 $2.91 Compiled by CBRE As previously discussed, the subject is currently vacant as it is awaiting the completion of electrical work to receive the certificate of occupancy. Studio Units SUMMARY OF COMPARABLE RENTALS EFFICIENCY/STUDIO UNITS Comparable Subject (Avg. In -Place) Temple Court Apartments Rio Mio 540 NW 7th Street Florida Apartments Subject (Concluded Market) 726 726 726 726 726 726 726 726 Holding LLC Holding LLC Holding LLC Holding LLC Holding LLC Holding LLC Holding LLC Holding LLC Plan Type Studio Studio - Section 8 Studio Studio Studio Studio Studio Studio Studio Studio Studio Studio Studio Studio Size (SF) 288 SF 290 SF 375 SF 350 SF 480 SF 288 SF 400 SF 404 SF 406 SF 411 SF 394 SF 426 SF 409 SF 405 SF Rental $/Mo. $723 $931 $1,250 $1,335 $1,714 $1,750 $1,750 $1,750 $1,775 $1,790 $1,797 $1,802 $1,817 $1,832 Rates $/SF $2.51 $3.21 $3.33 $3.81 $3.57 $6.08 $4.38 $4.33 $4.37 $4.36 $4.56 $4.23 $4.44 $4.52 Compiled by CBRE The concluded market rent fall within the provided range on a per month basis and is considered reasonable given the size of the unit and recently renovated condition of the units. 50 © 2024 CBRE, Inc. CBRE Income Capitalization Approach One -Bedroom Units SUMMARY OF COMPARABLE RENTALS ONE BEDROOM UNITS Rental Rates Comparable Plan Type Size (SF) $/Mo. $/SF Subject (Avg. In -Place) 1BR/1BA 436 SF $1,161 $2.66 Temple Court Apartments 1 BR/1 BA - Section 8 470 SF $1,190 $2.53 San Gabriel Apartments 1 BR/1 BA 625 SF $1,590 $2.54 Rio Mio 1 BR/1 BA 515 SF $1,600 $3.1 1 540 NW 7th Street 1 BR/1 BA 505 SF $1,650 $3.27 Florida Apartments 1 BR/1 BA 675 SF $1,895 $2.81 1 160 NW 4th Street and 337 NW 12th .1 BR/1 BA 600 SF $1,917 $3.20 Subject (Concluded Market) 1BR/1BA 436 SF $2,000 $4.59 East River Living 1 BR/1 BA 590 SF $2,299-$2,400 $3.98 East River Living 1 BR/1 BA 582 SF $2,400 $4.12 East River Living 1 BR/2BA + Den 892 SF $2,699 $3.03 Compiled by CBRE The concluded market rent fall within the provided range on a per month basis and is considered reasonable given the size of the unit and recently renovated condition of the units. Two -Bedroom Units SUMMARY OF COMPARABLE RENTALS TWO BEDROOM UNITS Rental Rates Comparable Plan Type Size (SF) $/Mo. $/SF Subject (Avg. In -Place) 2BR/1BA 560 SF $1,858 $3.32 540 NW 7th Street 2BR/2BA 650 SF $1,895 $2.92 Florida Apartments 2BR/1 BA 691 SF $2,095 $3.03 Subject (Concluded Market) 2BR/1BA 560 SF $2,200 $3.93 1 160 NW 4th Street and 337 NW 12th .2BR/1 BA 600 SF $2,222 $3.70 Compiled by CBRE The concluded market rent fall within the provided range on a per month basis and is considered reasonable given the size of the unit and recently renovated condition of the units. 51 © 2024 CBRE, Inc. CBRE Income Capitalization Approach MARKET RENT CONCLUSIONS As previously discussed, the subject rents are restricted at up to 40% (studio units), 60% (1- bedroom units) and 80% (2-bedroom units) AMI as set by HUD for Miami -Dade County as provided below: Hole- The gamed hold harmless ;samisens ri IRC Secllon 142(41[2)1E) mean Met mjen%nnh al least one hd14n11 lanced in sernse on or before the end of the 45 dry transom penoi Por neey-releaSeI rants use % %clever Irmna are sneerer, ale mere111-year Inas an Me limas m use ale pretearny year HUD release: 5116/2023 Effective: 5716/2023 Implemento /before: 8128f2023 2023 Income Limits and Rent Limits Florida Housing Finance Corporation Multifamily Rental Programs and CWHIP Homeownership P agram NOTE: Does nor perrain re COEIG-DR, HHRP. HOME. NHTF or SHIP County 1Metro) Percentage Caleanry Income Limit by Humber of Persons in Household Rent Limit by Number of Bedrooms in Unit 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 Miami -Dade County 26% 14.460 18,520 18,580 20,640 22,300 23,940 25,640 27,260 28,898 30,547 381 387 484 536 599 680 Norm -harm Bcarh- 7596 14,075 74,650 73,775 75,800 71875 79,950 37,000 34 q/5 3E,170 311,194 451 494 590 670 148 825 Kendall 16M9A) 28% 20,244 23,126 26,012 28,806 31,220 33,544 35,640 30,164 40,454 42,766 506 542 650 751 836 925 3010 21,690 24.780 27.870 30,960 33.450 35,910 38,400 40,890 43,344 45,821 542 580 696 805 898 991 33% 23.659 27.256 30,657 34,056 36.795 39,534 42,240 44.979 47,678 50,403 596 635 765 555 968 1,090 35% 25,305 28.910 32515 36,120 39.025 41,930 44,806 47,705 50,558 53,458 632 677 812 939 1.048 1,156 40% 28,920 33,040 37,160 41,280 44,600 47,920 51,250 54,520 57,792 61,094 723 774 929 1,073 1,195 1,321 45% 32.535 37,170 41.805 46,440 ' 50.175 53,910 57.600 61.335 65,016 68.731 B13 871 1,045 1.207 1.347 1.486 5010 36,150 41.300 46.450 51.600 55.750 59,900 84.000 68,150 72,240 70,360 903 966 1,161 1,341 1,497 1,651 60% 43,380 49.560 55740 61,920 66,900 71880 76.800 81,7 86688 91,612 1.084 1,161 1,393 1.610 1,797 1,982 7010 50.610 57.820 65,030 72,240 78656 83.880 09.800 95.410 101,130 106916 1.266 1955 1.025 1.678 2,096 2.312 .Malin» /4./90 80% 57,840 85000 /4.320 82,560 89,200 95,840 107,400 109,040 115,584 127,189 1418 1549 1,858 7,147 7396 2,643 12010 86,760 99,120 111,450 123,540 133,800 143,760 163,600 163,650 173,376 183,253 2,169 2,323 2.787 3,220 3.594 3,954 140% 101,220 115,640 130.060 144486 156,100 167,120 179,200 190,820 2132,272 213,830 2,530 2,010 3,251 3,757 4,193 4,525 We requested updated data such as current rents at the subject and operating data/budget however, no updated data was provided with the only data provided being from 2018-2019. Therefore, we have utilized the most recent rent limits for the subject rents based on the AMI's provided for each unit type. The following chart shows the market rent conclusions for the subject: RENT CONCLUSIONS - LIHTC AS IS No. Unit Monthly Rent Annual Rent Annual Units Unit Type Size (SF) Total SF $/Unit $/SF PRI $/Unit $/SF Total 2 Studio @ 40% AMI 288 576 $723 $2.51 $1,446 $8,676 $30.13 $17,352 2 1 BR/1 BA @ 60% AMI 436 872 $1,161 $2.66 $2,322 $13,932 $31 .95 $27,864 2 2BR/1 BA @ 80% AMI 560 1,120 $1,858 $3.32 $3,716 $22,296 $39.81 $44,592 6 428 2,568 $1,247 $2.91 $7,484 $14,968 $34.97 $89,808 Compiled by CBRE RENT CONCLUSIONS - PROPERTY ASSUMING MARKET No. Unit Monthly Rent Annual Rent Annual Units Unit Type Size Total SF $/Unit $/SF PRI $/Unit $/SF Total 2 Studio 288 576 $1,750 $6.08 $3,500 $21,000 $72.92 $42,000 2 1 BR/1 BA 436 872 $2,000 $4.59 $4,000 $24,000 $55.05 $48,000 2 2BR/1 BA 560 1,120 $2,200 $3.93 $4,400 $26,400 $47.14 $52,800 6 428 2,568 $1,983 $4.63 $11,900 $23,800 $55.61 $142,800 Compiled by CBRE 52 © 2024 CBRE, Inc. CBRE Income Capitalization Approach RENT ADJUSTMENTS Rent adjustments are sometimes necessary to account for differences in rental rates applicable to different units within similar floor plans due to items such as location within the property, view, and level of amenities. These rental adjustments may be in the form of rent premiums or rent discounts. As noted, the rental rates for some of the subject's units vary depending upon whether or not they have been upgraded and modernized. However, we have utilized the weighted average rental rates, taking into account this variance. Thus, no rent adjustments are required. RENT ROLL ANALYSIS The rent roll analysis serves as a crosscheck to the estimate of market rent for the subject. The collections shown on the rent roll include rent premiums and/or discounts. RENT ANALYSIS Revenue Component Total Total Monthly Rent Annual Rent 0 Occupied Units at Contract Rates $0 $0 6 Vacant Units at Rent Restrictions $7,484 $89,808 6 Total Units @ Rent Restrictions $7,484 $89,808 6 Total Units @ Market Rent $1 1,900 $142,800 Indicated Variance 37.1 % Compiled by CBRE POTENTIAL RENTAL INCOME CONCLUSION Within this analysis, potential rental income is estimated based upon: POTENTIAL RENTAL INCOME Year Total $/Unit/Yr Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 $28,874 $23,200 $14,959 $19,765 CBRE Estimate - LIHTC As Is $89,808 $14,968 CBRE Estimate - Hypothetical (Property Assuming Market) $142,800 $23,800 Compiled by CBRE We have concluded $14,968 per unit for the subject's potential rental income, which is within the range of the expense comparables. It is noted that expense comparable 3 was also a LIHTC property. 53 © 2024 CBRE, Inc. CBRE Income Capitalization Approach OPERATING HISTORY The following table presents available operating data for the subject. OPERATING HISTORY Year -Occupancy INCOME Potential Rental Income Loss to Lease Concessions Adjusted Rental Income Vacancy Credit Loss Net Rental Income Effective Gross Income EXPENSE Real Estate Taxes Property Insurance Utilities Repairs & Maintenance Landscaping & Security Management Fee Advertising & Promotion Replacement Reserves Total Operating Expenses Net Operating Income Management Fee % of EGI) Pro Forma 96.5% Total $/Unit $89,808 $14,968 $89,808 $14,968 (2,694) (449) (449) (75) $86,665 $14,444 $86,665 $14,444 $7,192 $1,199 12,000 2,000 3,000 500 2,100 350 270 45 3,033 506 300 50 1,500 250 $29,395 $4,899 $ 5 7,269 3.5% $9,545 Source: Operating statements We requested updated data such as current rents at the subject and operating data/budget however, no updated data was provided with the only data provided being from 2018-2019. Therefore, we have utilized the most recent rent limits for the subject rents based on the AMI's provided for each unit type as well as market expenses. LOSS TO LEASE Within the local market, buyers and sellers typically recognize a reduction in potential rental income due to the difference between market and contract rental rates. We have not included a loss to lease for the LIHTC value scenario given that these rents are set by HUD. We have applied a 2.5% loss to lease for the Hypothetical at market scenario given the expected increases in effective rent as discussed in the market analysis. This method of calculating rental income is most prevalent in the local market and is consistent with the method used to derive overall capitalization rates from the comparable sales data. 54 © 2024 CBRE, Inc. CBRE Income Capitalization Approach CONCESSIONS Rent concessions are currently not prevalent in the local market nor are they present at the subject. VACANCY The subject's estimated stabilized occupancy rate was previously discussed in the market analysis. The subject's vacancy is detailed as follows: VACANCY Year Total % of ARI Expense Comparable 1 0.0% Expense Comparable 2 5.0% Expense Comparable 3 1.1% Expense Comparable 4 0.0% CBRE Estimate - LIHTC As Is ($2,694) 3.0% CBRE Estimate - Hypothetical (Property Assuming Market) ($6,962) 5.0% Compiled by CBRE We have concluded to 3.0% for the subject's vacancy As Is (LIHTC) and 5.0% for the Hypothetical at market scenario, as discussed in the market analysis. CREDIT LOSS The credit loss estimate is an allowance for nonpayment of rent or other income. The subject's credit loss is detailed as follows: CREDIT LOSS Year Total % of ARI Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 0.0% 0.0% 1.6% 0.0% CBRE Estimate - LIHTC As Is ($449) 0.5% CBRE Estimate - Hypothetical (Property Assuming Market) ($696) 0.5% Compiled by CBRE We have concluded to 0.5% for the subject's credit loss. 55 © 2024 CBRE, Inc. CBRE Income Capitalization Approach EFFECTIVE GROSS INCOME The subject's effective gross income is detailed as follows: EFFECTIVE GROSS INCOME Year Total $/Unit/Yr Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 $30,424 $22,090 $14,802 $20,188 CBRE Estimate - LIHTC As Is $86,665 $14,444 CBRE Estimate - Hypothetical (Property Assuming Market) $131,572 $21,929 Compiled by CBRE We have concluded $14,444 per unit for the subject's effective gross income, which is slightly below the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. OPERATING EXPENSE ANALYSIS Expense Comparables The following chart summarizes expenses obtained from recognized industry publications and/or comparable properties. EXPENSE COMPARABLES Comparable Number 2 3 4 Subject Location Miami Miami Fort Lauderdale Wilton Manors Miami, FL Units 80 15 96 16 6 Year Built 2022 2022 1973 1960 1954 Type Multi -family Multi -family Multi -family Multi -family Walk -Up Mid/High Rise Walk-up Walk-up Walk-up Jan. 2023 June T-12 Nov. 2023/Annualiz Period 2023 Budget Budget 2023 2023 ed Pro Forma Revenues $/Unit $/Unit $/Unit $/Unit $/Unit Potential Rental Income $28,874 $23,200 $14,959 $19,765 $14,968 Loss to Lease (432) 98 - Concessions _ _ Adjusted Rental Income $28,442 $23,200 $15,058 $19,765 $14,968 Vacancy (1,160) (166) - (449) Credit Loss (244) - (75) Net Rental Income $28,442 $22,040 $14,649 $19,765 $14,444 Effective Gross Income $30,424 $22,090 $14,802 $20,188 $14,444 Expenses Real Estate Taxes $3,865 $2,730 ($41) $3,218 $1,199 Property Insurance 1,151 1,150 2,154 3,411 2,000 Utilities 3,017 360 1,895 1,788 500 Repairs & Maintenance 272 300 465 1,413 350 Landscaping & Security 45 48 - - 45 Management Fee 1,065 1,105 368 900 506 Advertising & Promotion 395 59 17 50 Replacement Reserves - - - 250 Total Operating Expenses $9,809 $5,693 $4,900 $10,746 $4,899 Operating Expenses Excluding Taxes 5,944 2,963 4,941 7,528 3,701 Operating Expense Ratio 32.2% 25.8% 33.1% 53.2% 33.9% Management Fee (%of EGI) 3.5% 5.0% 2.5% 4.5% 3.5% The median total differs from the sum of the individual amounts. Compiled by CBRE A discussion of each expense category is presented on the following pages. 56 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Real Estate Taxes The comparable data and projections for the subject are summarized as follows: REAL ESTATE TAXES Year Total $/Unit/Yr Expense Comparable 1 $3,865 Expense Comparable 2 $2,730 Expense Comparable 3 -$41 Expense Comparable 4 $3,218 CBRE Estimate - LIHTC As Is CBRE Estimate - Hypothetical (Property Assuming Market) Compiled by CBRE $7,192 $1,199 $22,857 $3,810 We have concluded $1,199 per unit for the subject's real estate taxes, which is within the range of the expense comparables. Please refer to the tax analysis section of this report for a full discussion on the subject's assessed value and taxes. Property Insurance Property insurance expenses typically include fire and extended coverage and owner's liability coverage. The comparable data and projections for the subject are summarized as follows: PROPERTY INSURANCE Year Total $/Unit/Yr Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 $1,151 $1,150 $2,154 $3,411 CBRE Estimate - LIHTC As Is CBRE Estimate - Hypothetical (Property Assuming Market) Compiled by CBRE $12,000 $2,000 $12,000 $2,000 We have concluded $2,000 per unit for the subject's property insurance, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. 57 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Utilities Utility expenses include electricity, natural gas, water, trash and sewer. The comparable data and projections for the subject are summarized as follows: UTILITIES Year Total $/Unit/Yr Expense Comparable 1 $3,017 Expense Comparable 2 $360 Expense Comparable 3 $1,895 Expense Comparable 4 $1,788 CBRE Estimate - LIHTC As Is $3,000 $500 CBRE Estimate - Hypothetical (Property Assuming Market) $3,000 $500 Compiled by CBRE As discussed in the improvement analysis, each unit is individually metered for electrical usage. We requested updated data such as current rents at the subject and operating data/budget however, no updated data was provided with the only data provided being from 2018-2019. Therefore, we have utilized the most recent rent limits for the subject rents based on the AMI's provided for each unit type as well as market expenses. Market operations indicate the tenants will be responsible for all utilities with the owner being responsible for common areas and vacant units. Therefore, we have included a utility expense for the subject towards the lower end of the market range as further discussed in the income capitalization approach. We have concluded $500 per unit for the subject's utilities, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. 58 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Repairs and Maintenance Repairs and maintenance expenses typically include all outside maintenance service contracts and the cost of maintenance and repairs supplies. The comparable data and projections for the subject are summarized as follows: REPAIRS & MAINTENANCE Year Total $/Unit/Yr Expense Comparable 1 $272 Expense Comparable 2 $300 Expense Comparable 3 $465 Expense Comparable 4 $1,413 CBRE Estimate - LIHTC As Is $2,100 $350 CBRE Estimate - Hypothetical (Property Assuming Market) $2,100 $350 Compiled by CBRE We have concluded $350 per unit for the subject's repairs & maintenance, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. Landscaping and Security Landscaping and security expenses typically include all outside landscaping and grounds maintenance service contracts and the cost of landscaping supplies, as well as security services. The comparable data and projections for the subject are summarized as follows: LANDSCAPING & SECURITY Year Total $/Unit/Yr Expense Comparable 1 $45 Expense Comparable 2 $48 Expense Comparable 3 $0 Expense Comparable 4 $0 CBRE Estimate - LIHTC As Is $270 $45 CBRE Estimate - Hypothetical (Property Assuming Market) $270 $45 Compiled by CBRE We have concluded $45 per unit for the subject's landscaping & security, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. 59 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Management Fee Management expenses are typically negotiated as a percentage of collected revenues (i.e., effective gross income). The comparable data and projections for the subject are summarized as follows: MANAGEMENT FEE Year Total % of EGI Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 3.5% 5.0% 2.5% 4.5% CBRE Estimate - LIHTC As Is CBRE Estimate - Hypothetical (Property Assuming Market) Compiled by CBRE $3,033 3.5% $4,605 3.5% We have concluded 3.5% of EGI for the subject's management fee, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. Advertising and Promotion Advertising and promotion expenses typically include all costs associated with the promotion of the subject including advertisements in local publications, trade publications, internet sites, et cetera. The comparable data and projections for the subject are summarized as follows: ADVERTISING & PROMOTION Year Total $/Unit/Yr Expense Comparable 1 $395 Expense Comparable 2 $0 Expense Comparable 3 $59 Expense Comparable 4 $17 CBRE Estimate - LIHTC As Is $300 $50 CBRE Estimate - Hypothetical (Property Assuming Market) $300 $50 Compiled by CBRE We have concluded $50 per unit for the subject's advertising & promotion, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. 60 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Reserves for Replacement Reserves for replacement have been estimated based on market parameters. The comparable data and projections for the subject are summarized as follows: REPLACEMENT RESERVES Year Total $/Unit/Yr Expense Comparable 1 $0 Expense Comparable 2 $0 Expense Comparable 3 $0 Expense Comparable 4 $0 CBRE Estimate - LIHTC As Is $1,500 $250 CBRE Estimate - Hypothetical (Property Assuming Market) $1,500 $250 Compiled by CBRE It is our experience that replacement reserves for stabilized developments typically range from $200 to $350. Given that the subject is a newly renovated development, we conclude to $250 per unit for replacement reserves. OPERATING EXPENSE CONCLUSION The comparable data and projections for the subject are summarized as follows: TOTAL OPERATING EXPENSES Year Total $/Unit/Yr Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 $9,809 $5,693 $4,900 $10,746 CBRE Estimate - LIHTC As Is $29,395 $4,899 CBRE Estimate - Hypothetical (Property Assuming Market) $46,633 $7,772 Compiled by CBRE We have concluded $4,899 per unit for the subject's total operating expenses, which is slightly below the range of the expense comparables. Our Hypothetical at market scenario falls within the range of the expense comparables. 61 © 2024 CBRE, Inc. CBRE Income Capitalization Approach OPERATING EXPENSE EXCLUDING TAXES CONCLUSION The comparable data and projections for the subject are summarized as follows: OPERATING EXPENSES EXCLUDING TAXES Year Total $/Unit/Yr Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 $5,944 $2,963 $4,941 $7,528 CBRE Estimate - LIHTC As Is $22,203 $3,701 CBRE Estimate - Hypothetical (Property Assuming Market) $23,775 $3,963 Compiled by CBRE We have concluded $3,701 per unit for the subject's total operating expenses excluding taxes, which is within the range of the expense comparables. In addition, our Hypothetical at market scenario falls within the range of the expense comparables. NET OPERATING INCOME CONCLUSION The comparable data and projections for the subject are summarized as follows: NET OPERATING INCOME Year Total $/Unit/Yr Expense Comparable 1 Expense Comparable 2 Expense Comparable 3 Expense Comparable 4 $20,615 $16,397 $9,902 $9,443 CBRE Estimate - LIHTC As Is CBRE Estimate - Hypothetical (Property Assuming Market) Compiled by CBRE $57,269 $84,940 $ 9,545 $14,157 62 © 2024 CBRE, Inc. CBRE Income Capitalization Approach SUMMARY OF CONCLUSIONS The following chart summarizes the subject's historical operating history and/or budget, along with expenses obtained from recognized industry publications and/or comparable properties. CBRE's conclusions are also included: COMPARABLE EXPENSE ANALYSIS Comparables Subject Period Comp 1 Comp 2 Comp 3 Comp 4 Conclusion Range Names Potential Rental Income Location Miami Miami Fort Lauderdale Wilton Manors Units 80 15 96 16 Year Built 2022 2022 1973 1960 Type Multi -family Multi -family Multi -family Multi -family Period 2023 Budget Budget 2023 T-12 Nov. Jan. 2023 - $/Unit/Yr $/Unit/Yr $/Unit/Yr $/Unit/Yr $/Unit/Yr $28,874 $23,200 $14,959 $19,765 $14,968 Loss to Lease (432) - 98 - 0.00% Concessions - 0.00% Adjusted Rental Income $28,442 Vacancy Credit Loss Net Rental Income Effective Gross Income $23,200 $15,058 $19,765 $14,968 (1,160) (166) - 3.00% (449) - (244) - 0.50% (75) $28,442 $22,040 $14,649 $19,765 $14,444 $30,424 $22,090 $14,802 $20,188 $14,444 Expenses Real Estate Taxes $3,865 $2,730 ($41) $3,218 $1,199 Property Insurance 1,151 1,150 2,154 3,411 2,000 Utilities 3,017 360 1,895 1,788 500 Repairs & Maintenance 272 300 465 1,413 350 Landscaping & Security 45 48 - 45 Management Fee 1,065 1,105 368 900 3.50% 506 Advertising & Promotion 395 59 17 50 Replacement Reserves 250 Total Operating Expenses $9,809 $5,693 $4,900 $10,746 $4,899 Operating Expenses Excluding Taxes $5,944 $2,963 $4,941 $7,528 $3,701 Operating Expense Ratio 32.2% 25.8% 33.1% 53.2% 33.9% Management Fee 3.5% 5.0% 2.5% 4.5% 3.5% Compiled by CBRE 63 © 2024 CBRE, Inc. CBRE Income Capitalization Approach DIRECT CAPITALIZATION Direct capitalization is a method used to convert a single year's estimated stabilized net operating income into a value indication. The following subsections represent different techniques for deriving an overall capitalization rate. Comparable Sales The overall capitalization rates (OARs) confirmed for the comparable sales analyzed in the sales comparison approach are as follows: COMPARABLE CAPITALIZATION RATES Sale Sale Price Sale Date $/Unit Occupancy Buyer's Primary Analysis OAR 1 Dec-23 $225,000 100% Pro Forma (Stabilized) 6.00% 2 Dec-23 $281,250 100% Pro Forma (Stabilized) 5.13% 3 Mar-23 $266,667 100% Pro Forma (Stabilized) 6.89% 4 Mar-23 $210,000 100% Pro Forma (Stabilized) 6.47% Indicated OAR: 97% 5.13%-6.89% Compiled by CBRE The overall capitalization rates for these sales were derived based upon the actual or pro -forma income characteristics of the property. The comps indicate a range from to with an average of . The overall capitalization rates for these sales were derived based upon the actual or pro -forma income characteristics of the property. We have placed primary emphasis on the most recent sales data in concluding our overall capitalization rate as market participants noted significant compression in capitalization rates during recent months and this information is more reflective of current market trends. Based on current market conditions, the subject's age/condition and construction quality and its competitive position in the local market, an OAR consistent with the middle of the range indicated by the comparables is considered appropriate. It has been our experience that there are very few one-off affordable transactions which are straight -forward enough to utilize as a comparable sale. What we have seen in most cases is that properties are purchased within large portfolios and the allocated purchase prices which end up being recorded are not always in line with where the true market value of each asset really is, or the properties are being purchased by developers with plans for an acquisition/rehab funded by new tax credits, incentivizing developers to purchase the assets at pricing that may or may not make sense relative to market but still allowing them to earn a large developer fee, or in certain cases properties are purchased with plans to take the property through the qualified contract process in hopes of removing the restrictions altogether. Based upon input from market participants, cap rates should be in line with their market -rate counterpart and as such, we've relied on the rates indicated by the market -rate comparables and market participant input as the primary indicators for our cap rate selection. 64 © 2024 CBRE, Inc. CBRE Income Capitalization Approach We have provided secondary comparables of LIHTC/rent restricted/subsidized transactions as provided below: COMPARABLE CAPITALIZATION RATES Secondary Sale Sale Price Sale Date $/SF Occupancy Buyer's Primary Analysis OAR 5 Feb-24 $119,626 99% Pro Forma (Stabilized) 12.1 1 % 6 Nov-23 $142,424 100% Pro Forma (Stabilized) 6.00% 7 Oct-23 $140,152 91% Pro Forma (Stabilized) 7.00% 8 Sep-23 $143,868 99% Pro Forma (Stabilized) 5.10% Indicated OAR: 97% 5.10%-12.11% Compiled by CBRE Published Investor Surveys The results of the most recent investor surveys are summarized in the following chart. OVERALL CAPITALIZATION RATES Investment Type OAR Range Average Rea ItyRates. com Apartments 5.26% - 12.04% 8.33% Garden/Suburban TH 5.26% - 1 1.01 % 7.66% Hi-Rise/Urban TH 5.68% - 12.04% 8.44% PwC Apartment National Data 4.00% - 8.00% 5.59% Indicated OAR: 5.00%-6.00% Compiled by CBRE The subject is considered to be a Class B property. OVERALL CAPITALIZATION RATES Investment Type OAR Range Average CBRE Apartments - Cap Rate Survey H 1 2023 Suburban MF South Florida Suburban MF Tampa Suburban MF Orlando 4.25% - 5.00% 4.63% 5.25% - 5.75% 5.50% 5.00% - 5.50% 5.25% Indicated OAR: 4.50%-5.75% Compiled by CBRE 65 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Market Participants The results of recent interviews with knowledgeable real estate professionals are summarized in the following table. OVERALL CAPITALIZATION RATES Respondent Rent Restricted/Unrestricted OAR Income Date of Survey JLL Affordable Group CBRE Restricted 5.00%-5.75% Stabilized 1 Q24 Unrestricted 4.75%-5.50% Stabilized 1 Q24 Indicated OAR: 5.00%-5.75% Compiled by CBRE The market participants noted that while overall capitalization rates experienced significant compression in the Fourth Quarter 2021 and at the beginning of First Quarter 2022, the significant rise in interest rates over a short period of time has placed upward pressure on cap rates. We discussed the impact to cap rates as a result of changes in the capital markets with brokers. Most are reporting buyers are still accepting negative leverage in many instances, but it depends on the asset, location, upside potential and relative basis (price per unit). Price Discovery Discussion Beginning in April 2022 the Federal Reserve began increasing the federal fund rate as a way to combat inflation. At the same time, we began to see a decline in sale transactions as buyers and sellers have worked through price discovery due to the higher cost of capital. For some markets and property types there has been very limited sales transactions in the past year that are similar to the subject. For investment properties, this has made the determination of a reasonable cap rate more difficult than if we had transactions to draw upon. Due to the lack of recent sales evidence, we have been in close contact with brokers in our market to better understand what investors are looking for in the current environment and also what sellers are willing to accept. We have also included a band of investment to show the impact the cost of capital can have on cap rates. 66 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Band of Investment The band of investment technique has been utilized as a crosscheck to the foregoing techniques. The Mortgage Interest Rate and the Equity Dividend Rate (EDR) are based upon current market yields for similar investments. The analysis is shown in the following table. BAND OF INVESTMENT Mortgage Interest Rate 6.50% Mortgage Term (Amortization Period) 30 Years Mortgage Ratio (Loan -to -Value) 60% Mortgage Constant (monthly payments) 0.07585 Equity Dividend Rate (EDR) 7.75% Mortgage Requirement 60% x 0.07585 = 0.04551 Equity Requirement 40% x 0.07750 = 0.03100 100% 0.07651 Indicated OAR: 7.70% Compiled by CBRE 67 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Debt Coverage Ratio The debt coverage ratio (DCR) is the ratio of net operating income to annual debt service and measures the ability of a given property to meet its debt service out of net operating income. Utilizing data obtained from knowledgeable mortgage finance professionals, the subject's projected NOI can be tested for reasonableness against the market's typical loan parameters to determine if the DCR is positive. This analysis is shown in the following table: DEBT COVERAGE RATIO ANALYSIS Estimated As Is Value $1,025,000 Mortgage Ratio (Loan -to -Value) 60% Estimated Mortgage Loan Amount $615,000 Mortgage Interest Rate 6.50% Mortgage Term (Amortization Period) 30 Years Mortgage Constant (monthly payments) 0.07585 Annual Debt Service (monthly payments) $46,647 Estimated NOI $57,269 Estimated Debt Coverage Ratio (DCR) 1 .23 Market Debt DCR 1.20 Positive DCR? (Y or N) Yes Compiled by CBRE The estimated DCR can also be used to derive a capitalization rate by blending the typical market debt coverage requirements of lending institutions with the yield return of the borrowed capital. We have used the same rates and terms from the Band of Investment analysis in the following table: DEBT COVERAGE RATIO METHOD Mortgage LTV X Constant X DCR = OAR 60% X 0.07585 X 1.15 = 5.23% 60% X 0.07585 X 1.25 = 5.69% Indicated OAR: 5.23%-5.69% Compiled by CBRE 68 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Impact of Restrictions on Capitalization Rate Based upon input from active market participants, prior to 2018 overall capitalization rates for affordable housing properties had historically traded at a premium as compared with market- rate/conventional properties of similar location and age/condition. However, they further indicated that this dynamic has shifted in recent years as demand has increased and more capital pours into the affordable housing sector, fueled by renewed AMI and rent growth experienced in recent years, the introduction of favorable tax laws for affordable housing owners, as well as due to the aggressive financing availability/terms offered by lenders. Based upon discussions with active affordable housing brokers due to the institutional investor's perception of the asset class as being relatively security with limited risk and downside potential. Considering the available data, we have concluded that due to significantly increased demand for affordable housing properties, our concluded overall capitalization rate is the same for both our With Restrictions and Without Restrictions analyses. i„Oc 6.5% 5.513/0 5.0% 4,5% 4.0% 3.54% 3 . 13/n Cap Rates for Sates of LIHTC and Market Rate -Properties (Actual) LI1-ITC —Market Rate 2017 2018 2019.7020 2021 Q12022 Source: The CoStar Group, Inc. Market R?cote/tIHTC hosed can 11.5,OOO/2 400 transactions As provided in the chart above from Fannie Mae, there was minimal spread (approx. 30 basis points) between market and LIHTC cap rates through Q1 2022, with the spread being considered to have come closer together through current day given the need and demand by investors for affordable housing in Florida and South Florida in particular where the subject is located. 69 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Capitalization Rate Conclusion The following chart summarizes the OAR conclusions. OVERALL CAPITALIZATION RATE - CONCLUSION Source Indicated OAR Comparable Sales Comparable Sales (Secondary/LIHTC/Restricted/Subsidized) Published Surveys Market Participants Band of Investment Debt Coverage Ratio Method CBRE Estimate - LIHTC As Is CBRE Estimate - Property Assuming Market 5.13%-6.89% 5.10%-12.11% 5.00%-6.00% 5.00%-5.75% 7.70% 5.23%-5.69% 5.50% 5.50% Compiled by CBRE There is significant liquidity within affordable housing and demand for this product is very strong. While the fundamentals for affordable housing are very strong (under -supplied, significant demand), the current volatility in capital markets are putting pressure on cap -rates. Specific to south Florida, insurance is also creating dislocation in the market. In concluding an overall capitalization rate for the subject, primary reliance has been placed upon the data obtained from the comparable sales and interviews with active market participants. This data tends to provide the most accurate depiction of both buyer's and seller's expectations within the market. Further secondary support for our conclusion is noted via both the published investor surveys and the band of investment methodology. Considering the data presented, the concluded overall capitalization rate appears to be well supported in the local market. We have also considered recent events and prevailing market conditions with respect to capitalization rates. This includes a combination of inflationary pressures and higher cost of capital (considering interest rates as well as risk spreads). While the overall long-term outlook for commercial real estate remains positive, the full effect of these factors may not yet be reflected in transactional data. Overall, we view uncertainty and the higher cost of capital to have an upward influence on capitalization rates which is considered with respect to our conclusion herein. Cost to Achieve Stabilized Operations The cost estimates employed for this approach are reflective of a property operating at a stabilized level. A stabilized occupancy for the subject has been estimated to be 96.5%, without consideration of a 0.5% credit loss allowance. Consequently, an adjustment is warranted. As the subject will be below a stabilized occupancy position, it requires a deduction for lease -up to stabilization. This analysis utilizes assumptions developed in the market analysis and income capitalization approach and will be deducted as a line item from each approach in order to render an "As Complete" value estimate. 70 © 2024 CBRE, Inc. CBRE Income Capitalization Approach Absorption/Lease Up Discount The subject is a renovated 6-unit multifamily property built 1954 and recently renovated in 2023 (pending completion). Additional comparable absorption in the South Florida market: COMPARABLE SPACE ABSORPTION Property County Size (Units) Lease Up (Months) Absorption/Month (Units) Lazul North Miami Miami -Dade 314 14 22 Circ Hollywood Broward 344 19 18 Shoreline Sole MIA Miami -Dade 370 11 34 Aviva Coral Gables Miami -Dade 240 18 13 Soma at Bricekll Miami -Dade 393 11 36 Legacy at 19th Miami -Dade 80 5 16 275 Fontaine Parc Miami -Dade 133 6 22 215 Park Broward 45 7 6 Compiled by CBRE Avg./Month = 21 The above comparable space absorption provides an absorption rate per month range of 6 to 36 units, with an average of 21 units per month. It is noted that the smaller developments (less than 100 units) had a reduced absorption of 6 to 16 units per month. Therefore, we conclude to a reduced absorption of 2 units per month or 3 months for stabilization, which should allow a reasonable amount of time to stabilize the subject property. We have applied a 3-month lease -up period upon completion of construction. 71 © 2024 CBRE, Inc. CBRE Income Capitalization Approach LEASE -UP DISCOUNT SCHEDULE LEASE UP DISCOUNT SCHEDULE Month 1 2 3 4 5 AS -STABILIZED Potential Rental Income $7,484 $7,484 $7,484 $7,484 $7,484 Loss to Lease $0 $0 $0 $0 $0 Concessions $0 $0 $0 $0 $0 Adjusted Rental Income $7,484 $7,484 $7,484 $7,484 $7,484 Vacancy & Credit Loss (%) 3.5% 3.5% 3.5% 3.5% 3.5% Vacancy & Credit Loss ($) ($262) ($262) ($262) ($262) ($262) Net Rental Income $7,222 $7,222 $7,222 $7,222 $7,222 Other Income $0 $0 $0 $0 $0 Effective Gross Income $7,222 $7,222 $7,222 $7,222 $7,222 Total Expenses ($2,450) ($2,450) ($2,450) ($2,450) ($2,450) Net Operating Income $4,772 $4,772 $4,772 $4,772 $4,772 AS -IS Potential Rental Income $7,484 $7,484 $7,484 $7,484 $7,484 Loss to Lease $0 $0 $0 $0 $0 Concessions $0 $0 $0 $0 $0 Adjusted Rental Income $7,484 $7,484 $7,484 $7,484 $7,484 Vacancy & Credit Loss (%) 100.0% 67.7% 35.3% 3.5% 3.5% Vacancy & Credit Loss ($) ($7,484) ($5,064) ($2,644) ($262) ($262) Net Rental Income $0 $2,420 $4,840 $7,222 $7,222 Other Income $0 $0 $0 $0 $0 Effective Gross Income $0 $2,420 $4,840 $7,222 $7,222 Total Expenses (0% Variable) ($2,450) ($2,450) ($2,450) ($2,450) ($2,450) Net Operating Income ($2,450) ($30) $2,390 $4,772 $4,772 NOI Differential $7,222 $4,802 $2,382 $0 $0 Tenant Improvements $0 $0 $0 $0 $0 Leasing Commissions $0 $0 $0 $0 $0 Total Lease -Up Cost $7,222 $4,802 $2,382 $0 $0 Discounted @ 0.00% $7,222 $4,802 $2,382 $0 $0 Indicated Lease -Up Discount Rounded Compiled by CBRE $14,407 $14,000 72 © 2024 CBRE, Inc. CBRE Income Capitalization Approach DIRECT CAPITALIZATION SUMMARY — AS IS (LIHTC) A summary of the direct capitalization is illustrated in the following chart. DIRECT CAPITALIZATION SUMMARY - LIHTC AS IS Income $/Unit/Yr Total Potential Rental Income $14,968 $89,808 Loss to Lease 0.00% 0 Concessions 0.00% 0 Adjusted Rental Income $14,968 $89,808 Vacancy 3.00% (449) (2,694) Credit Loss 0.50% (75) (449) Net Rental Income $14,444 $86,665 Effective Gross Income $14,444 $86,665 Expenses Real Estate Taxes Property Insurance Utilities Repairs & Maintenance Landscaping & Security Management Fee Advertising & Promotion Replacement Reserves Total Operating Expenses Operating Expense Ratio Net Operating Income OAR As Stabilized Value Rounded Lease -Up Discount As Is Value Rounded Value Per Unit 3.50% February 15, 2024 February 15, 2024 $1,199 $7,192 2,000 12,000 500 3,000 350 2,100 45 270 506 3,033 50 300 250 1,500 $4,899 $29,395 $9,545 33.92% $ 57,269 5.50% $1,041,264 $1,050,000 (14,000) $1,027,264 $1,025,000 $170,833 Compiled by CBRE As previously discussed, the improvements were vacant and are considered to be not stabilized. Therefore, we have estimated a 3-month lease up for the subject and have deducted a lease -up discount from the As Stabilized value in order to provide the As Is value. Per information provided, the electrical work remaining at the subject requires no additional costs to complete with only an inspection pending by the City of Miami to be able to receive the certificate of occupancy (CO). Therefore, no additional cost to complete was deducted to arrive at the As Is value. 73 © 2024 CBRE, Inc. CBRE Income Capitalization Approach DIRECT CAPITALIZATION SUMMARY — HYPOTHETICAL (PROPERTY ASSUMING MARKET) A summary of the direct capitalization is illustrated in the following chart. DIRECT CAPITALIZATION SUMMARY - HYPOTHETICAL (PROPERTY ASSUMING MARKET) Income $/Unit/Yr Total Potential Rental Income $23,800 $142,800 Loss to Lease 2.50% (595) (3,570) Concessions 0.00% 0 - Adjusted Rental Income $23,205 $139,230 Vacancy 5.00% (1,160) (6,962) Credit Loss 0.50% (116) (696) Net Rental Income $21,929 $131,572 Effective Gross Income $21,929 $131,572 Expenses Real Estate Taxes Property Insurance Utilities Repairs & Maintenance Landscaping & Security Management Fee Advertising & Promotion Replacement Reserves Total Operating Expenses Operating Expenses Excluding Taxes Operating Expense Ratio Net Operating Income OAR As Stabilized Value Rounded Lease -Up Discount As Is Value Rounded Value Per Unit 3.50% February 15, 2024 February 15, 2024 $3,810 $22,857 2,000 12,000 500 3,000 350 2,100 45 270 768 4,605 50 300 250 1,500 $7,772 $46,633 $3,963 $14,157 $23,775 35.44% $84,940 5.50% $1,544,361 $1,550,000 (14,000) $1,530,361 $1,525,000 $254,167 Compiled by CBRE As previously discussed, the improvements were vacant and are considered to be not stabilized. Therefore, we have estimated a 3-month lease up for the subject and have deducted a lease -up discount from the As Stabilized value in order to provide the As Is value. Per information provided, the electrical work remaining at the subject requires no additional costs to complete with only an inspection pending by the City of Miami to be able to receive the certificate of occupancy (CO). Therefore, no additional cost to complete was deducted to arrive at the As Is value. 74 © 2024 CBRE, Inc. CBRE Income Capitalization Approach CONCLUSION OF INCOME CAPITALIZATION APPROACH The conclusions via the valuation methods employed for this approach are as follows: INCOME CAPITALIZATION APPROACH VALUES Direct Capitalization Appraisal Premise As of Date Method Reconciled Value As Is (LIHTC As Is) Hypothetical As Is (Property Assuming Market) Compiled by CBRE February 15, 2024 February 15, 2024 $1,025,000 $1,525,000 $1,025,000 $1,525,000 75 © 2024 CBRE, Inc. CBRE Reconciliation of Value Reconciliation of Value The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS Sales Comparison Income Reconciled Appraisal Premise As of Date Approach Approach Value As Is (LIHTC As Is) Hypothetical As Is (Property Assuming Market) Compiled by CBRE February 15, 2024 February 15, 2024 $1,000,000 $1,025,000 $1,025,000 $1,500,000 $1,525,000 $1,525,000 In the sales comparison approach, the subject is compared to similar properties that have been sold recently or for which listing prices or offers are known. The sales used in this analysis are considered highly comparable to the subject, and the required adjustments were based on reasonable and well -supported rationale. In addition, market participants are currently analyzing purchase prices on similar properties as they relate to available substitutes in the market. Therefore, the sales comparison approach is considered to provide a reliable value indication and has been given secondary emphasis in the final value reconciliation. The income capitalization approach is applicable to the subject since it is an income producing property leased in the open market. Market participants are primarily analyzing investment properties based on their income generating capability. Therefore, the income capitalization approach is considered a reasonable and substantiated value indicator and has been given primary emphasis in the final value estimate. Based on the foregoing, the market value of the subject has been concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is (LIHTC As Is) Hypothetical As Is (Property Assuming Market) Compiled by CBRE Fee Simple Estate Fee Simple Estate February 15, 2024 February 15, 2024 $1,025,000 $1,525,000 76 © 2024 CBRE, Inc. CBRE Assumptions and Limiting Conditions Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off -site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super -efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. 77 © 2024 CBRE, Inc. CBRE Assumptions and Limiting Conditions (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence -based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles ("ESG"), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 78 © 2024 CBRE, Inc. CBRE Assumptions and Limiting Conditions 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 1 1 . Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 79 © 2024 CBRE, Inc. CBRE Addenda ADDENDA © 2024 CBRE, Inc. Addenda Addendum A IMPROVED SALE DATA SHEETS © 2024 CBRE, Inc. Sale Residential - Multi -unit Walk-up No. 1 Property Name Address 8-Unit Apartment 1380 SW 2nd Street Miami, FL 33135 County Miami -Dade Govt./Tax ID N/A Net Rentable Area (NRA) 7,072 sf Condition Average Land Area Net 0.230 ac/ 10,019 sf Year Built/Renovated 1971/ N/A Total # of Units 8 Unit Average Unit Size 884 sf Average Rent/Unit N/A Average Rent/SF N/A Construction Class/ Type C/ Average Exterior Finish Concrete Floor Count 2 Parking Type/ Ratio Surface/ 0.75:1,000 sf Property Features N/A Project Amenities N/A Unit Amenities N/A nsaction Details Type Sale Interest Transferred Leased Fee Condition of Sale None Recorded Buyer Alfred G Smith Buyer Type N/A Recorded Seller Felix F Regueira Marketing Time N/A Listing Broker N/A Doc # 34040-3570 Buyer's Primary Analysis Price and Capitalization Analyses Static Analysis Method Pro Forma (Stabilized) Source N/A NOI /Unit and /sf $13,495 / $15.27 IRR N/A OER 38.00% Expenses /Unit and /sf $8,271 / $9.36 Cap Rate 6.00% Primary Verification Transaction Date Recording Date Sale Price Listing broker 12/18/2023 N/A $1,800,000 Financing Market Rate Financing Cash Equivalent $1,800,000 Capital Adjustment $0 Adjusted Price $1,800,000 Adjusted Price /Unit $225,000 / $254.52 and /sf Occupancy at Sale 100% Underwritten Occupancy 97% Potential Gross Income $179,520 Vacancy/Collection Loss $5,386 Effective Gross Income $174,134 Expenses $66,171 Net Operating Income $107,963 9,As aa.-r t This comparable is an 8-unit multifamily walk-up property built in 1971 on a 0.23 acre site located at 1380 SW 2nd Street in Miami. The property is concrete block construction and the interiors are average finish. It includes all studio units. The property sold in December 2023 for $1,800,000 or $225,000 per unit and the indicated cap rate is based on in place rent and operating expenses are based on market, including taxes reset at 80% of the sale price. CBRE Sale Residential - Multi -unit Walk-up No. 2 Property Name Address 4-Unit Apartment 1401 S. Le Jeune Road Miami, FL 33134 County Miami -Dade Govt./Tax ID 30-4108-010-0010 Net Rentable Area (NRA) 2,986 sf Condition Average Land Area Net 0.180 ac/ 7,841 sf Year Built/Renovated 1944/ N/A Total # of Units 4 Unit Average Unit Size 747 sf Average Rent/Unit N/A Average Rent/SF N/A Construction Class/ Type C/ Average Exterior Finish Concrete Floor Count 2 Parking Type/ Ratio Surface/ 2.00:1,000 sf Property Features N/A Project Amenities N/A Unit Amenities N/A nsaction Details Type Sale Primary Verification Listing Broker, One Sotheby's Interest Transferred Leased Fee Transaction Date 12/18/2023 Condition of Sale None Recording Date N/A Recorded Buyer ML Rivero & Associates LLC Sale Price $1,125,000 Buyer Type N/A Financing Market Rate Financing Recorded Seller Christian Alberto Saenz Cash Equivalent $1,125,000 Marketing Time N/A Capital Adjustment $0 Listing Broker N/A Adjusted Price $1,125,000 Doc # N/A Adjusted Price /Unit $281,250 / $376.76 Buyer's Primary Analysis Static Analysis Method Source NOI /Unit and /sf IRR OER Expenses /Unit and /sf Cap Rate Price and Capitalization Analyses Pro Forma (Stabilized) N/A $14,434 / $19.33 N/A 38.00% $8,847 / $11.85 5.13% and /sf Occupancy at Sale 100% Underwritten Occupancy 97% Potential Gross Income $96,000 Vacancy/Collection Loss $2,880 Effective Gross Income $93,120 Expenses $35,386 Net Operating Income $57,734 This comparable is an 4-unit multifamily walk-up property built in 1944 on a 0.18 acre site located at 1401 S. Le Jeune Road in Miami. The property is concrete block construction, and the interiors are average finish. It includes all 1 BR units. The property sold in December 2023 for $1,125,000 or $281,250 per unit and the indicated cap rate is based on in place rent and operating expenses are based on market, including taxes reset at 80% of the sale price. CBRE Sale Residential - Multi -unit Walk-up No. 3 Property Name Address Shore Crest Apartments 1030 NE 80th Street Miami, FL 33138 County Miami -Dade Govt./Tax ID 01-32-07-016-2821 Net Rentable Area (NRA) 4,200 sf Condition Good Land Area Net 0.172 ac/ 7,500 sf Year Built/Renovated 1962/ 2015 Total # of Units 6 Unit Average Unit Size 700 sf Average Rent/Unit $1,750 Average Rent/SF $2.50 Construction Class/ Type C/ Good Exterior Finish Stucco Floor Count 2 Parking Type/ Ratio Surface/ 1.83:1,000 sf Property Features Exterior Stairwells, Flat Roofs, Gated / Controlled Access, Surface Parking, Thru- The-Wall Systems Project Amenities Barbeque Area Unit Amenities Dishwasher, Microwave Oven, Range / Oven, Refrigerator, Stainless Steel A liances, Washer / D er Transaction Details Type Sale Primary Verification MLS# Al 1231562 Interest Transferred Leased Fee Transaction Date 03/24/2023 Condition of Sale Arm's Length Recording Date N/A Recorded Buyer 1030 RENTALMIAMI LLC Sale Price $1,600,000 Buyer Type Private Investor Financing Cash to Seller Recorded Seller MF1 LLC Cash Equivalent $1,600,000 Marketing Time N/A Capital Adjustment $0 Listing Broker N/A Adjusted Price $1,600,000 Doc # 33657-4365 Adjusted Price /Unit $266,667 / $380.95 and /sf Buyer's Primary Analysis Static Capitalization Analysis Occupancy at Sale 100% Static Analysis Method Pro Forma (Stabilized) Underwritten Occupancy N/A Source Broker Potential Gross Income $158,400 NOI /Unit and /sf $18,367 / $26.24 Vacancy/Collection Loss N/A IRR N/A Effective Gross Income N/A OER N/A Expenses $48,200 Expenses /Unit and /sf $8,033 / $11.48 Net Operating Income $110,200 Cap Rate 6.89% The property is a 6-unit multi -family property located at 1030 NE 80th Street in Miami, Florida. The property consists of one building, two-story property. The improvements were constructed in 1962 and have been renovated in approx. 2022 and is situated on a 0.1 7-acre site. The improvements were 100.0% leased and is listed for $1,650,000 or $275,000 per unit. The property includes one and two -bedroom units and show to have all been updated. An attempt was made to contact the parties involved/info available for, however, were unsuccessful. CBRE Sale Residential - Multi -unit Walk-up No. 4 Property Name Address County Govt./Tax ID Net Rentable Area (NRA) Condition Land Area Net Year Built/Renovated Total # of Units Average Unit Size Average Rent/Unit Average Rent/SF Construction Class/ Type Exterior Finish Floor Count Parking Type/ Ratio Property Features Project Amenities Unit Amenities 6-Unit Apartment Building 701 NE 121 Street North Miami, FL 33161 Miami -Dade 06-2230-033-0270 4,020 sf Average 0.212 ac/ 9,225 sf 1966/ N/A 6 Unit 670 sf $1,383 $2.06 C/ Average Stucco 2 Surface/ 1.83:1,000 sf Exterior Stairwells, Pitched Roofs, Surface Parking, Window A/C Units N/A N/A nsaction Details Type Interest Transferred Condition of Sale Recorded Buyer Buyer Type Recorded Seller Marketing Time Listing Broker Doc # Buyer's Primary Analysis Static Analysis Method Source NOI /Unit and /sf IRR OER Expenses /Unit and /sf Cap Rate Sale Leased Fee Arm's Length Sankofa Group, LLC Private Investor Jacquelin and Marie Montreuil N/A N/A 33731-1297 Static Capitalization Analysis Pro Forma (Stabilized) Appraiser $13,596 / $20.29 N/A 32.49% $6,544 / $9.77 6.47% Primary Verification Transaction Date Recording Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Adjusted Price /Unit and /sf Occupancy at Sale Underwritten Occupancy Potential Gross Income Vacancy/Collection Loss Effective Gross Income Expenses Net Operating Income Sales Contract/Broker 03/10/2023 N/A $1,260,000 Cash to Seller $1,260,000 $0 $1,260,000 $210,000 / $313.43 100% 95% $127,200 $6,360 $120,840 $39,266 $81,574 The property is a 6-unit multi -family walk-up property located at 701 NE 121 Street in North Miami, Florida. The property consists of a single, two-story apartment building. The improvements were constructed in 1966 and are situated on a 0.21-acre site. According to the Purchase and Sale Agreement dated December 25, 2022, the subject is currently under contract for $1,300,000, or $216,667 per unit and per addendum to the contract, the sale will include a $30,000 credit towards closing costs. The actual reported sale price per Miami -Dade County is $1,260,000 or $210,000 per unit. The reason for the disconnect is not known; however, its likely due to further negotiations and we used the recorded sale price. The property was 100% occupied at sale and per the appraisers pro forma yielded a capitalization rate of 6.47%, based on stabilized income with real estate taxes adjusted to 75% of the contract price. CBRE Addenda Addendum B RENT COMPARABLE DATA SHEETS © 2024 CBRE, Inc. Comparable Residential - Multi -unit Garden No. 1 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type 1160 NW 4th Street and 337 NW 12th Avenue 1160 NW 4th Street 337 NW 12th Avenue Miami, FL 33128 United States N/A 01-4102-005-1170 Monthly No. % Size (sf) Rent Rent / sf 1 BR/1 BA 2BR/1 BA 6 38% 600 10 63% 600 $1,91 7 $2,222 $3.19 $3.70 Totals/Avg Improvements Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 16 0.172 ac 9,600 sf 16 Unit 600 sf 2 N/A N/A N/A 100% 12 Mo(s). Mix 02/2024 N/A $2,108 $3.51 Status Year Built Year Renovated Condition Exterior Finish Utilities Included in Rent Rent Premiums Concessions Owner Management Existing 1937 2016 Average Concrete Block None N/A N/A N/A N/A CBRE Comparable Residential - Multi -unit Garden No. 1 Map data 02024 Google This comparable is a multi -family property with 16-units in 2, two story buildings built in 1937 on a 0.17 acre site located at 1160 NW 4th Street and 337 NW 12th Avenue in Miami, Florida. The property was renovated in 2016/2017. CBRE Comparable Residential - Multi -unit Garden No. 2 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type San Gabriel Apartments 858 NW 3rd Street Miami, FL 33128 United States N/A 01-4138-003-3540 Monthly No. % Size (sf) Rent Rent / sf 1 BR/1 BA 24 100% 625 $1,590 $2.54 Totals/Avg Improvements Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 24 0.344 ac 15,000 sf 24 Unit 625 sf 2 N/A N/A N/A 100% 12 Mo(s). N/A 02/2024 N/A $1,590 $2.54 Status Year Built Year Renovated Condition Exterior Finish Utilities Included in Rent Rent Premiums Concessions Owner Management Existing 1925 N/A Average Concrete Block Water N/A N/A N/A N/A CBRE Comparable Residential - Multi -unit Garden No. 2 NW St Z Google Map data ©2024 Google This property is a 24-unit multi -family walk-up property located at 858 NW 3rd Street in Miami, Florida. The property consists of two, two-story apartment buildings. The improvements were constructed in 1925 and are situated on a 0.34-acre site. The unit mix is comprised of 24 1 BR/1 BA units with a small den room adjacent to the kitchen and the units have an average unit size of 625 SF. As of the most current roll provided, the property is 100% occupied. CBRE Comparable Residential - Multi -unit Walk-up No. 3 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type Florida Apartments 1050 NW 2nd Street Miami, FL 33128 United States Miami -Dade 01-4102-005-2440 Monthly No. % Size (sf) Rent Rent / sf Studio 1 BR/1 BA 2BR/1 BA 14 4 6 58% 17% 25% 480 675 691 $1,714 $1,895 $2,095 $3.57 $2.81 $3.03 Totals/Avg Improvements Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 24 0.311 ac 12,870 sf 24 Unit 536 sf 3 N/A N/A N/A 100% 12 Mo(s). Low income 02/2024 (786) 375-9412 $1,839 $3.25 Status Year Built Year Renovated Condition Exterior Finish Utilities Included in Rent Rent Premiums Concessions Owner Management Existing 1925 N/A Average Concrete Block N/A None None N/A N/A CBRE Comparable Residential - Multi -unit Walk-up No. 3 N 5l ryta p data O2°v.2= G av y lu This rent comparable is a 24-unit multifamily walk-up property located in the neighborhood of Little Havana at 1050 NW 2nd Street, Miami, Florida. The property is a single building of 3 floors built in 1925 on a 0.31 acre site. CBRE Comparable Residential - Multi -unit Garden No. 4 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type Temple Court Apartments 431 NW 3rd St Miami, FL 33128 United States Miami -Dade 01-0109-000-1240 Monthly No. % Size (sf) Rent Rent / sf Studio - Section 8 1 BR/1 BA - Section 8 31 51% 290 30 49% 470 $931 $3.21 $1,190 $2.53 Totals/Avg 61 Improvements Land Area 0.528 ac Gross Building Area (GBA) 35,746 sf Total # of Units 61 Unit Average Unit Size 379 sf Floor Count 3 Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes $1,058 $2.80 Status Year Built Year Renovated Condition Exterior Finish Existing 1913 2006 Average Stucco Elevators, HAP Contract, Individual Split Systems, On -Site Management, Pitched Roofs, Surface Parking Car Wash Facility, Clubhouse, Fitness Center, Laundry Facility Carpeted Flooring, Ceiling Fans, Laminate Countertops, Private Patios / Balconies, Range / Oven, Refrigerator, Vinyl Flooring, White / Beige Appliances 98% 12 Mo(s). Low income 02/2024 N/A Utilities Included in Rent Rent Premiums Concessions Owner Management N/A N/A None N/A N/A CBRE Comparable Residential - Multi -unit Garden No. 4 Goggle 3rd St Map data ©2024 Google CBRE Comparable Residential - Multi -unit Garden No. 5 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type East River Living 39 NW 7th Avenue Miami, FL 33128 United States Miami -Dade 01-0200-090-1120 Monthly No. % Size (sf) Rent Rent / sf Studio 1 BR/1 BA Studio Studio 1 BR/1 BA 1 BR/1 BA 1 BR/1 BA 1 BR/2BA + Den 1 BR/2BA + Den 2 BR/2 BA 2 BR/2 BA 1 BR/2BA + Den 1 3% 1 3% 2 6% 1 3% 1 3% 2 6% 4 12% 5 15% 4 12% 4 12% 4 12% 5 15% 444 472 478 505 582 590 594 770 778 833 867 892 N/A N/A N/A N/A $2,400 $2,299-$2,400 N/A N/A N/A N/A N/A $2,699 N/A N/A N/A N/A $4.12 $3.98 N/A N/A N/A N/A N/A $3.03 Totals/Avg 34 $606 $0.83 Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 0.230 ac 24,737 sf 34 Unit 728 sf 8 N/A Fitness Center, Pool N/A 88% 12 Mo(s). Singles, Couples, Families 01/2024 Website Status Year Built Year Renovated Condition Exterior Finish Utilities Included in Rent Rent Premiums Concessions Owner Management Under Construction 2022 N/A New Concrete None None Up to 1 Month Free N/A N/A CBRE Comparable Residential - Multi -unit Garden No. 5 Goo ■ Ie "'1st St Map data ©2024 'Gcog This property is a 34-unit multi -family mid/high rise property located at 39 NW 7th Avenue in Miami, Florida. The property is a single, eight -story apartment building. The improvements are situated on a 0.23-acre site. The improvements consist of a combination of studios, one -bedroom, one -bedroom plus den, and two -bedroom units. Unit's size will range from 444 to 867 square feet. Available units were provided via the development website as attempts to contact the leasing office were unsuccessful. CBRE Comparable Residential - Multi -unit Garden No. 6 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type 540 NW 7th Street 540 NW 7th Street Miami, FL 33136 United States Miami -Dade 01-0105-020-1050 Monthly No. % Size (sf) Rent Rent / sf Studio 1 BR/1 BA 2 BR/2 BA 7 32 12 14% 63% 24% 350 505 650 $1,335 $1,650 $1,895 $3.81 $3.27 $2.92 Totals/Avg Improvements Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 51 0.530 ac 25,800 sf 51 Unit 506 sf 3 $1,664 $3.21 Status Year Built Year Renovated Condition Exterior Finish Existing 1957 2018 Good Concrete Block Flat Roofs, Gated / Controlled Access, Surface Parking Laundry Facility Dishwasher, Garbage Disposal, Granite Countertops, Microwave Oven, Plank Flooring, Range / Oven, Refrigerator, Stainless Steel Appliances 98% 12 Mo(s). Singles and families 12/2023 Property Contact: Emmanuel (305) 864-0000 Utilities Included in Rent Rent Premiums Concessions Owner Management Internet and trash None None Synergy Consultants Group LLC N/A CBRE Comparable Residential - Multi -unit Garden No. 6 Google O VE RTOWN This is a 51-unit apartment complex located at 540 NW 7th Street in Miami, Florida. FJW Eth Si 2023 AV: $5,990,000 �.J Cross Streets: NW 7th Avenue and NW 7th Street Neighborhood: Overtown Map data CBRE Comparable Residential - Multi -unit Lofts No. 7 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type Rio Mio 1160 NW North River Drive Miami, FL 33136 United States Miami -Dade 01-3135-026-0050 Monthly No. % Size (sf) Rent Rent / sf Studio 1 BR/1 BA 8 19% 375 $1,250 $3.33 34 81% 515 $1,600 $3.11 Totals/Avg Improvements Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 42 0.935 ac 22,010 sf 42 Unit 524 sf 2 $1,533 $3.14 Status Year Built Year Renovated Condition Exterior Finish Existing 1964 N/A Average Concrete Block Gated / Controlled Access, Pitched Roofs, Surface Parking Barbeque Area, Courtyard, Laundry Facility, Pool Ceiling Fans, Ceramic Tile Flooring, Garbage Disposal, Laminate Countertops, Plank Flooring, Range / Oven, Refrigerator, Tub / Shower Combo, Vinyl Flooring, White / Beige Appliances 97% 12 Mo(s). Mixed tenancy 12/2023 Property Contact: John (305) 821-2562 Utilities Included in Rent Rent Premiums Concessions Owner Management Water, sewer, trash None None N/A The Lopez CBRE Comparable Residential - Multi -unit Lofts No. 7 T- w Ilk N - et Al f4er pp Google Map data ©2024 Google This comparable rental represents the Rio Mio apartments, a 42-unit multifamily apartment property located at 1 160 NW N. River Drive in Miami, Florida. The improvements were originally constructed in 1964 and reported to be in average condition. 2023 AV: $4,680,000 Cross Streets: NW 12th Avenue and Dolphin Expressway Neighborhood: Allapattah CBRE Comparable Residential - Multi -unit Garden No. 8 Property Name Address Government Tax Agency Govt./Tax ID Unit Mix Detail Rate Timeframe Unit Type 726 Holding LLC 726 NW 3rd Street Miami, FL 33128 United States Miami -Dade 01-0200-030-1050 Monthly No. % Size (sf) Rent Rent / sf Studio Studio Studio Studio Studio Studio Studio Studio 3 13% 1 4% 4 17% 3 13% 2 8% 3 13% 5 21% 3 13% 394 400 404 405 406 409 411 426 $1,797 $1,750 $1,750 $1,832 $1,775 $1,81 7 $1,790 $1,802 $4.56 $4.38 $4.33 $4.52 $4.37 $4.44 $4.36 $4.23 Totals/Avg Improvements Land Area Net Rentable Area (NRA) Total # of Units Average Unit Size Floor Count Property Features Project Amenities Unit Amenities Rental Survey Occupancy Lease Term Tenant Profile Survey Date Survey Notes 24 0.172 ac 9,785 sf 24 Unit 408 sf 3 $1,791 $4.39 Status Year Built Year Renovated Condition Exterior Finish Existing 2022 N/A Good Concrete Exterior Stairwells, Fire Sprinklered, Flat Roofs, Individual Split Systems, Street Parking Storage Units 8-Foot Ceilings, Dishwasher, Granite Countertops, Hardwood Flooring, Microwave Oven, Range / Oven, Refrigerator, Stainless Steel Appliances 100% 12 Mo(s). Singles/Couples 11/2023 Appraisal Assignment/Rent Roll Utilities Included in Rent Rent Premiums Concessions Owner Management Water, Sewer None None N/A N/A CBRE Comparable Residential - Multi -unit Garden No. 8 Google. rr•, U.ti•. IY icalSurrey This is a 24-unit multi -family walk-up property located at 726 NW 3rd Street in Miami, Florida. The property consists of a single, three-story apartment building. The improvements were constructed in 2022 and are situated on a 0.1 7-acre site. The improvements were 100.0% leased as of the date of the rent roll (as of October 30, 2023) and are considered to be stabilized. The property consists of only studio units with an avg. unit size of 408 square feet. In addition, there were no amenities noted (on -site parking, gym, swimming pool, etc.). CBRE Addenda Addendum C OPERATING DATA © 2024 CBRE, Inc. Bowels Apartments - Rent Roll 1851 NW 1st Court October 1, 2018 Tenant Diane McDonlad Gail Johnson Vacant Barbara Gardner John Gardner Virgil Young Exhibit "G" Form of Rent Re::ulaton Agreement Current New Rent For Rent Existing Tenants 575.00 675.00 400.00 500.00 500.00 Vacant 575.00 675.00 400.00 ? 500.00 600.00 2,950.00 2,450.00 Type 2BR Eff 1BR 2BR Eff 1BR New Future Tenants/Rent applicable law. If an Existing Tenant wishes to renew its expiring lease, and there are no uncured defaults under such expiring lease, then Borrower shall renew such Existing Tenant's lease subject rental rate increases as provided for above in this Paragraph (1). An Existing Tenant may not assign its lease except to a spouse, parent, sibling or any lineal descendant of such Existing Tenant. (2) New -Tenant Occupancy Requirements. If a Unit is vacant at the time that this Regulatory Agreement is executed or when an Existing Tenant vacates such Existing Tenant's CRA Assisted Unit, then such Unit shall thereafter be made available to tenants who qualify under the CRA-Assisted Unit requirements as set forth in this Regulatory Agreement, as follows: a. Maximum Rent Levels. The rents charged on all CRA-Assisted Units shall be subject to the 24 CFR Part 92 (hereinafter referred to as the "Regulation"). Gross monthly rent charged on CRA-Assisted Units occupied by tenants identified as Low -Income are subject to the 40%, 60% and 80% maximum rents published annually by the U.S. Department of Housing and Urban Development ("HUD") for each locality and income level. The new rent maximums for leases signed in Miami, Florida effective as of June 2018 are as follows: Unit Type Tenant Existing Tenants' -Rent before this Regulatory Agreement New Max Rent for Existing Tenants New Tenants' Max Rents 2BR — Existing Tenant 575.00 675 $1,331 (80% AMI) Eff Vacant N/A 551 $551 (40% AMI) 1BR Vacant N/A 849 $849 (60% AMI) 2BR Existing Tenant 575.00 675 $1,331 (80% AMI) Eff Vacant N/A 551 $551 (40% AMI) 1BR Existing Tenant 500.00 600 $849 (60% AMI) TOTAL 1650.00 4806.00 The foregoing maximum rents does not include utilities. Tenants will be responsible for their own utilities. In no event will the monthly rent on a CRA-Assisted Unit exceed the maximum rent levels as provided for in this Paragraph (2)(a). Rents shall not be adjusted for changes in income or HUD published maximums until lease renewal. The Project must at all times (during the Affordability Period and subject to Existing Tenants) maintain the Unit -Mix. b. Income Re -certification. Tenant income for CRA-Assisted Units shall be certified by the Borrower annually on the anniversary of each tenant's lease and maintained in the tenant file, subject to inspection by the CRA, in accordance with Paragraph (4) of this Regulatory Agreement. Existing Tenants are not subject to Income Certification, or Re - Certification. c. Deposits and Pre -hay i rents. Borrower shall not require, as a condition of occupancy or leasing of any CRA-Assisted Unit, any other consideration or deposit from the tenant, except for the prepayment of one month's rent and plus a security deposit not to exceed one additional month's rent. Rebuilding Together Miami -Dade, Inc. 3628 Grand Ave, Miami, FL, 33133 Project: Sherman Bullard. 6-Unit Apartment Building Address: 1851 NW 1st Court in Miami, Florida, 33136 Budget - - item Vendor Cost Lead testing EE&G, Environmental Services LLC. _ $900.00 Asbestos testing EE&G, Environmental Services LLC. $1,200.00 Architectural drawings Jorrin and Associates _ $20,200.00 City of Miami Permitting and Certification Fees Team Contracting $3,691.75 General Contractor Team Contracting $542,818.61 Total _ $568,810.36 Wells Fargo Sponsorship -$20,000.00 Total After Sponsorship $548,810.36 FORM R405-2017 Q ', I:: li ikon, / �P a Q`` PROJECT ( Titg of Alizuni Title: 18029 - SHERMAN BULLAR Bedrooms: 8 Building Type: User Conditioned Area: 2568 Owner Name: Total Stories: 2 # of Units: 1 Worst Case: No Builder Name: Rotate Angle: 0 Permit Office: Cross Ventilation: Jurisdiction: 232400 Whole House Fan: Family Type: Multi -family Nevt+Existing: Existing (Projected) Comment: et11LDING DEPARTMENT Address Type *,- ::,,, �`�"•" ertnt.lvallinparionl Lot # 0'15 .} Block/Subdivisi• 4 """"""""'"""""'"""°'°"°° ST' \, BD19001687001 PtatBook Street: 466 F ovz6izo County: Mia o- C 0 0'- City, State, Zip: MIAMI , FL , 33136 CLIMATE / V Design Temp Design Location TMY Site 97.5 % 2.5 % Int Design Temp Heating Design Daily Temp Winter Summer Degree Days Moisture Range FL, Miami FL MIAMI_INTL AP 51 90 70 75 149.5 56 Low BLOCKS Number Name Area Volume 1 2 Block1 1284 10272 Block2 1284 10272 SPACES Number Name Area Volume Kitchen Occupants Bedrooms InfiI ID Finished Cooled Heated 1 2 3 4 5 6 UNIT 101 560 4480 Yes UNIT 102 288 2304 Yes UNIT 103 436 3488 Yes UNIT 201 560 4480 Yes UNIT 202 288 2304 Yes UNIT 203 436 3488 Yes 3 2 2 3 2 2 2 1 1 2 1 1 1 1 1 1 1 1 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes FLOORS V# Floor Type Space Perimeter Perimeter R-Value Area Joist R-Value Tile Wood Carpet 1 Slab -On -Grade Edge Insutatio UNIT 101 60 ft 0 2 Slab -On -Grade Edge Insutatio UNIT 102 30 ft 0 3 Slab -On -Grade Edge Insutatio UNIT 103 50 ft 0 560 ft2 288 ft2 436 ft2 — -- -- 1 0 1 0 1 0 0 0 0 ROOF / V Roof Gable # Type Materials Area Area Roof Color Solar Absor. SA Tested Emitt Emitt Deck Tested Insul. Pitch (deg) 1 Flat Concrete 1289 ft2 54 ft2 Light 0.75 No 0.9 No 11 4.8 ATTIC V # Type Ventilation Vent Ratio (1 in) Area RBS IRCC 1 No attic Unvented 0 1284 ft2 N N 10/23/2018 3:45 PM A EnergyGauge® USA - FlaRes2017 Section R405.4.1 Compliant Software Page 2 of 5 From: Sandy Socarras To: Castro. Eric @ Miami Cc: Cata. Kristian @ Miami; Llop-Noy, Frances Subject: Fw: RETAINER INVOICE: #008028RET-1-24 Community Redevelopment Agency CB24US008028 Date: Monday, March 4, 2024 8:53:44 AM Attachments: Outlook -Omni CRA.pnq Outlook -Omni CRA.pnq Outlook -Omni CRA.pnq Outlook -Omni CRA.pnq Outlook -Omni CRA.pnq Outlook -Omni CRA.pnq Outlook-pv2a5ios. pnq Outlook-lydzowyl.pnq Outlook-vw1bd20d.pnq Outlook-cmduqxzc. pnq Outlook -A picture .pnq External Good morning, We are trying to wrap all inspections up this month, this is driven by the electrical sub who is the only Final pending before we can call Final Building inspections. At the moment there are no additional costs anticipated unless the electrical final inspection were to result in work outside of the initial scope (not anticipated). The balance of the work pending is related to punch -outs, back fence, and final locks. Thank you, Sandy From: Cata, Kristian @ Miami <Kristian.Cata@cbre.com> Sent: Thursday, February 29, 2024 10:45 AM To: Llop-Noy, Frances <FLIop-Noy@miamigov.com>; Castro, Eric @ Miami <Eric.Castro@cbre.com>; Sandy Socarras <socarras@team-contracting.com> Subject: RE: RETAINER INVOICE: #008028RET-1-24 Community Redevelopment Agency CB24US008028 Good morning, I wanted to send a quick follow up to the below, as we are in the process of finishing up our appraisal but wanted to confirm a couple additional items to help us better understand the current status for completion. 1. Do you have an estimated timeframe that all the work will be completed and the property will be ready for occupancy 2. How much cost is left to complete the work at the property for occupancy 3. Is it only electrical work remaining (if not give us an idea of what else is remaining) Addenda Addendum D DEED © 2024 CBRE, Inc. flotilla 10: (enclose seat-addtas.ed stilnped envelope) Man' Adders': This loSirument Prepared by; Sherman W. Bullard .Mersa: 1851 NW 1st Ct_ Apt_ #3 Miami, Fl_ 33136 SPACE ABOVE THrS LIME POO PROCESSIMO DATA This suit -Claim Deed, Executed this 30 111111111 1111111111111111111111111111 11111111 C 1-1 11CeSF E Inv at5 OR Bit 23470 Pa 4349; Ups) RECORDED 106/ 14/ 2O0S 179 = 44:33 DEED DOC TAX 90.00 HARVEY RUVIN. CLERK OF COURT MIAMI-DADE COUNTY, FLORIDA LAST PAGE SPACE AIME SIBS LIME Fat. DECORo/MO OATA doy of September .A.D.2003 •1'y Myrtle M. Bullard a widow woman 1937 Mil 65th St. Miami, Fl_ 33141 first party. to Sherman W. Bullard, a single lean whose postoffice address is xerand 1851 NW 1st Ct _Apt #3 Mena, Fl. 33136 twl.erever used hmsin she Item+• "sirs. party d rat parer'• .1,a1I include einnular a..A plural. Lein• bleat represeatati.e•, and aniu r.a ..l +nJi.iJ..l•, and the .uccc.n... amid aas:'na .d corpr.r..n ,i,., ..L . +1.c c. n, ic.• au .dmir. ur .e.lu ire..) 1 Jitnesselky That the said first putty. for and in consideration of lime sum of $ irl iiiiiil paid by the said second party. the receitat whereof is hereby aclrnoudedsed, does hereby remise. ".- lease and quit -claim unto the said second Early forever, all the right. title. Interest. claim and demand which duct said first party has in and to the following described lot, piece or parcel of land. situate. lying Gras being in the County of Dade State of Fi fa-u,il: PB B-53 al/2 Lot 3 141/2 Lot 6 Blk 23 Folio # 01312504800650 110 I1aue and to liold flee same together with all and singular the appurtenances :hereunto belonging or In anywise appertaining. and all the estate. right. title. Interest. lien!, equity anti claim what - ...never of die said first party. either in raw or equity. to An ...I1y proper use, benefit 0e10l heltuaf of the said second party forever. j] Witnesshe eof, The 'stet first patsy has sitrrer.rl rend sealed these presents the day an1/l your first abatoe written. Sig. el. sealed and deliverer) ire presence of: ita Roes Rr rql....%ell. Altrd } altire•r duly authorised in the Siatc aforesaid anti in the County Myrtle M. Bullard t+. the ltntrwet to 1.e the person described in alai who executed h. Paste Ir+e that W 1 "TM F.SS Irty September A. n. 2003. Sherman W, Bulls Myrtle M.ullard t Iit: aforesaid �,. �S JOHNSONQ N 1'�!eller 14 *+'��?�• Coretmesian M Dt7306173 1 ■onmembeNcdlonalNot+aryAasn. P •site in56sUT*Cnl the foregoing executed ilic 'arse. hand and official seal in the Cooney rtuJ ,Suuc last aforesaid a nil ems 30 e, an arcs! ackltuwledgret day e.a Baak23470/Page4349 CFN#20050609285 Pagel of 1 Addenda Addendum E CLIENT CONTRACT INFORMATION © 2024 CBRE, Inc. VALUATION & ADVISORY SERVICES Proposal and Contract for Services February 1, 2024 C t.G On, Community Redevelopment Agency 819 NW 2nd Avenue, 3rd Floor Miami, FL 33136 Phone: 305-679-6800 Email: MAValentin@miamigov.com RE: Assignment Agreement I CB24US008028 Residential 1851 NW 1st Court, Miami, FL 33136 CBRE, Inc. Valuation &amp; Advisory Services, 111 West Oal<Avenue, Suite 100 Tampa, FL 33602 www.cbro.ushaluetion Kristin Repp, MAI Managing Director Dear M5 dot We are pleased to submit this proposal and our Terms and Conditions for this assignment. PROPOSAL. SPECIFICATIONS Purpose: Premise: Rights Appraised: Intended Use: Intended User: Reliance: To estimate the Market Value of the referenced real estate As Is Fee Simple Acquisition/Disposition/Exchange Due Diligence The intended user is Community Redevelopment Agency ("Client"), and such other parties and entities (if any) expressly recognized by CBRE as intended users (each an "Intended Users" and collectively the "Intended Users") provided that any Intended User's use of, and reliance upon, any report produced by CBRE under this Agreement shall be subject to the Terms and Conditions attached hereto and incorporated herein (including, without limitation, any limitations of liability set forth in the attached Terms and Conditions). Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not use or rely upon any opinions or conclusions VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement I CB24US008028 Page 2 of 9 February 1, 2024 Scope of Inspection: Valuation Approaches: Report Type: Appraisal Standards: Appraisal Fee: Expenses: Retainer: www.cbre.us/valuation contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. Unless otherwise expressly identified in this Agreement, there are no third -party beneficiaries of this Agreement pertaining to this appraisal assignment or any reports produced by CBRE under this Agreement, and no other person or entity shall have any right, benefit or interest under this Agreement or with respect to any reports produced by CBRE under this Agreement. A full interior and exterior inspection of the property will be conducted and arranged with the property contact and performed by CBRE Valuations. If this expected property inspection is not possible due to unforeseen issues (such as lack of on -site personnel cooperation, physical obstructions, or appraiser/property contact health and safety concerns), the client will be promptly advised. The client may continue this assignment based on other inspection options agreed upon by CBRE and client or provide CBRE with a written notice to cancel. If CBRE determines that a credible appraisal result cannot be achieved due to inspection limitations, it will promptly provide the client with a written cancellation of this assignment. All three traditional approaches to value will be considered. Appraisal Report USPAP $5,500.00. If cancelled by either party before a completion, the fee will be based on CBRE's hourly rates for the time expended; plus actual expenses. Fee includes all associated expenses except to the extent otherwise provided in the attached Terms and Conditions. A retainer of $5,500.00 is due prior to commencement of the outlined services. Please remit retainer payments via wire to: Name: Wells Fargo ABA No.: 121000248 Swift ID: WFBIUS6S Name on Account: CBRE Valuation Wire Receipts General Account No.: 4121248561 Address: 420 Montgomery Street San Francisco, CA 94104 Bank Contact: Michele Polcari Telephone Number: (310) 606-4792 CBRE VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement I CB24US008028 Page 3 of 9 February 1, 2024 Payment Terms: Delivery Instructions: Delivery Schedule: Preliminary Value: Draft Report: Final Report: Start Date: Acceptance Date: www. c b re. u s%vea l u n t i o n Please include the invoice number when submitting payment. For additional payment remittance options, contact CBRE VAS Accounts Receivable - 901-620-3232 I CBREVASAR@cbre.com Final payment is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. The full appraisal fee is considered earned upon delivery of the draft report. We will invoice you for the assignment in its entirety at the completion of the assignment. CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report. An Adobe PDF file via email will be delivered to MAValentin@miamigov.com. The client has requested 0 bound final copy (ies). Not required Not required 5 Business days The appraisal process will start upon receipt of your signed agreement, the retainer, and the property specific data. These specifications are subject to modification or withdrawal if this proposal is not accepted within 5 business days from the date of this letter. CBRE VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement I CB24US008028 Page 4 of 9 February 1, 2024 When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties, including all intended users, hereto. We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us. Sincerely, CBRE, Inc. Valuation & Advisory Services 441)./U /3 app, Kristin Repp, MAI Managing Director As Agent for CBRE, Inc. T + 1 305 381 6408 Kristin.Repp@cbre.com www.cbre.us/viceluation CBRE VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement 1 CB24US008028 Page 5 of 9 February 1, 2024 PROPERTY NAME PROPERTY LOCATION REPORT TYPE APPRAISAL FEES 1851 NW 1st Court Assignment Total: www.tbra.us/valuiation 1851 NW 1st Court, Miami, FL 33136 Appraisal Report $5,500.00 $5,500.00 CBRE VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement 1 CB24US008028 Page 6 of 9 February 1, 2024 EE ANR ACCEPTE FOR COMMUNITY REDEVELOPMENT AGENCY ("CLIENT"): c on • n gs • __5(let '2,/z4V Signature Date A. aka. Tv 6)ctoorilk Aiuddiez, Name Title 305-679-6800 Phone Number ADDITIONAL OPTIONAL SERVICES amiamigov.com E-Mail Address Assessment & Consulting Services: CBRE's Assessment & Consulting Services group has the capability of providing a wide array of solution -oriented due diligence services in the form of property condition and environmental site assessment reports, ALTA Surveys, and other necessary due diligence service (seismic risk analysis, zoning compliance service, construction risk management, annual inspections, etc.). Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full complement of consulting services, or you may reach out to us at ACpropos9©cre0cr. We will route your request to the appropriate manager. For more information, please visit www.thre.com/assessment. Revised Muy 4, 2020 VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement I CB24US008028 Page 7 of 9 February 1, 2024 TE 1, The Terms and Conditions herein are part of an assignment agreement (the "Agreement") for appraisal services ("Services") between CBRE, Inc. ("CBRE") and the client signing this Agreement and for whom the Services will be performed (the "Client") for the property identified herein (the "Property") and shall be deemed a part of such Agreement as though fully set forth therein. In addition, with respect to any appraisal report prepared by CBRE pursuant to the Agreement (the "Report"), any use of, or reliance on, the Report by any Intended User constitutes acceptance of these Terms and Conditions as well as acceptance of all qualifying statements, limiting conditions, and assumptions stated in the Report, The Agreement shall be governed and construed by the laws of the state where the CBRE office executing this Agreement is located without regard to conflicts of laws principles. 2. Client shall be responsible for the payment of all fees stipulated in this Agreement. Payment of the fees and preparation of the Report are not contingent upon any predetermined value or on any action or event resulting from the analyses, opinions, conclusions, or use of the Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a draft Report is requested, the fee is considered earned upon delivery of the draft Report. It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed Report. In such event, the Client is obligated to pay CBRE for the time and expenses incurred (including, but not limited to, travel expenses to and from the job site) prior to the effective date of cancellation, with a minimum charge of $500. Hard copies of the Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and white), plus shipping fees of $30 per Report. 3. If CBRE is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls and conferences (except routine meetings, phone calls and conferences with the Client for the sole purpose of preparing the Report), litigation, or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this assignment, the Report, CBRE's expertise, or the Property, Client shall pay CBRE's additional out-of-pocket costs and expenses, including but not limited to CBRE's reasonable attorneys' fees, and additional time incurred by CBRE based on CBRE's then -prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Report), meeting participation, and CBRE's other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional Services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed Report has been delivered to Client at the time of such request. 4. CBRE shall have the right to terminate this Agreement at any time for cause effective immediately upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 5 days written notice. 5. In the event Client fails to make payments when due then, from the date due until paid, the amount due and payable shall bear interest at the maximum rate permitted in the state where the CBRE office executing this Agreement is located, EACH PARTY, AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL OF ITS CHOICE, KNOWINGLY AND VOLUNTARILY, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION IN ANY WAY RELATED TO THIS AGREEMENT. 6. CBRE assumes there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor, engineer, or environmental consultant for CBRE to prepare a valid Report hereunder. Client acknowledges that such additional expertise is not covered in the fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and solely at Client's additional cost and expense. 7. Client acknowledges that CBRE is being retained hereunder as an independent contractor to perform the Services described herein and nothing in this Agreement shall be deemed to create any other relationship between Client and CBRE. Unless otherwise stated in this Agreement, Client shall not designate or disclose CBRE or any of its agents or employees as an expert or opinion witness in any court, arbitration, or other legal proceedings without the prior written consent of CBRE. 8. This assignment shall be deemed concluded and the Services hereunder completed upon delivery to Client of the Report discussed herein. kevk id i;Aoy ^, 20'20 VALUATION & ADVISORY SERVICES Community Redevelopment Agency Assignment Agreement I CB24US008028 Page 8 of 9 February 1, 2024 9. All statements of fact in the Report which are used as the basis of CBRE's analyses, opinions, and conclusions will be true and correct to CBRE's actual knowledge and belief. CBRE does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to CBRE by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, CBRE DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO CBRE. Furthermore, the conclusions and any permitted reliance on and use of the Report shall be subject to the assumptions, limitations, and qualifying statements contained in the Report. 10. CBRE shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The Report will not constitute a survey of the Property analyzed. 11. Client shall provide CBRE with such materials with respect to the assignment as are requested by CBRE and in the possession or under the control of Client. Client shall provide CBRE with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary. 12. The data gathered in the course of the assignment (except data furnished by Client, "Client Information") and the Report prepared pursuant to the Agreement are, and will remain, the property of CBRE. With respect to Client Information provided by Client, CBRE shall not violate the confidential nature of the appraiser -client relationship by improperly disclosing any confidential and proprietary Client Information furnished to CBRE. Notwithstanding the foregoing to the contrary, CBRE is authorized by Client to disclose all or any portion of the Report and related data as may be required by applicable law, statute, government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable CBRE or its employees and agents to comply with the Bylaws and Regulations of the Appraisal Institute as now or hereafter in effect. 13, Unless specifically noted, in preparing the Report CBRE will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, "Hazardous Materials") on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there are no major or significant repairs, improvements or deferred maintenance of the Property that would require the expertise of a professional cost estimator, engineer, architect or contractor. If any such repairs, improvements or maintenance are needed, the estimates for such repairs, improvements or maintenance are to be prepared by other parties pursuant to a separate written agreement in Client's sole discretion and direction, and are not deemed part of the Services or otherwise covered as part of the fee hereunder. 14, In the event Client intends to use the Report in connection with a tax matter, Client acknowledges that CBRE provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Report or otherwise disagree with Client's tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Report. Client agrees that CBRE shall have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from CBRE relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys' fees, costs or other expenses relating to Client's tax matters. 15. LIMITATION OF LIABILITY. NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT TO THE CONTRARY: (A) EXCEPT TO THE EXTENT ARISING FROM SECTION 16, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER PARTY, FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR OTHER EXEMPLARY LOSSES OR DAMAGES, WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, REGARDLESS OF THE FORESEEABILITY OR THE CAUSE THEREOF. (B) EXCEPT TO THE EXTENT ARISING FROM SECTION 16, OR SECTION 17 IF APPLICABLE, AGGREGATE DAMAGES IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES AND COSTS REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO CBRE UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). (C) CBRE SHALL HAVE NO LIABILITY WITH RESPECT TO ANY LOSS, DAMAGE, CLAIM OR EXPENSE INCURRED BY OR ASSERTED AGAINST CLIENT ARISING OUT OF, BASED UPON OR RESULTING FROM CLIENT'S OR ANY INTENDED USER'S FAILURE TO PROVIDE ACCURATE OR COMPLETE INFORMATION OR DOCUMENTATION PERTAINING TO ANY SERVICES OR REPORT ORDERED UNDER OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING CLIENT'S OR ANY INTENDED USER'S FAILURE, OR THE FAILURE OF ANY OF CLIENT'S OR ANY Revised May 4, 2020 Addenda Addendum G QUALIFICATIONS © 2024 CBRE, Inc. PROFILES Clients Represented - Berkadia - Greystone - JLL - Fannie Mae - Freddie Mac Education - Bachelor of Science in Social Science with emphasis on Statistics and Urban/Regional Planning. CBRE VALUATION AND ADVISORY / SOUTH FLORIDA Bradley Lyons, VIAI First Vice President, South Florida Multifamily Practice Leader M +13213318691 E Bradley.lyons@cbre.com Professional Experience Bradley Lyons has over 18-years of commercial real estate experience and is the multifamily practice leader for South Florida. Mr. Lyons and his team have extensive experience with all types of multifamily properties including mid/high rise, garden style, walk up, fractured condos, student housing, affordable LIHTC and Section 8 housing Mr. Lyons also provides feasibility studies, market rent studies, litigation and highest and best use analysis for Class A, B, and C multifamily assets in South Florida and other markets throughout Florida. Mr. Lyons and his team are involved in over 150 multifamily valuations annually with property values ranging from $10MM to $400MM. Professional Affiliation • Appraisal Institute — Designated Member (MAI), Certificate No. 444393 • Certified General Real Estate Appraiser, State of Florida, RZ2897 1 CBRE, INC. i Ron DeSantis, Governor STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Melanie S. Griffin, Secretary FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES LYONS, BRADLEY JAM 200 S ORANGE AVE SUITE 2100 ORLANDO FL 32801 +A LICENSE NUMBER: RZ2897 EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online at MyFloridaLicense.com Do not alter this document in any form. 7 dbpr This is your license. It is unlawful for anyone other than the licensee to use this document. PROFILES Clients Represented - Key Bank - Truist Bank - Fifth Third Bank - Bank OZK - Valley National Bank - Bank United Pro Affiliations / Accreditations Certified General Real Estate Appraiser, State of Florida, RZ4283 International Council of Shopping Centers, Associate Affiliate Licensed Real Estate Broker, State of Florida, BK3106777 Certified Commercial Investment Member (CCIM) Education - Florida International University, Bachelor of Business Administration - Florida International University, Master of Science in International Real Estate VALUATION & ADVISORY SERVICES Kristian Cata, CCIM Senior Appraiser - Miami, Florida T +1305 381 6486 M +1305 720 7806 E Kristian.cata@cbre.com Professional Experience Kristian Cata is a Senior Appraiserfor CBRE Valuation and Advisory Services in South Florida. Mr. Cata has over 15 years of appraisal experience including both commercial and residential property types. Mr. Cata has served a broad range of clients including commercial and investment banks, insurance companies, private corporations, investors, owners, developers, and attorneys. His expertise incorporates many types of valuation services including appraisals, market and feasibility studies, real estate portfolios, litigation support and appraisal review. Prior to joining CBRE, Mr. Cata worked in various real estate and asset management roles gaining significant experience in financial analysis, due diligence, development, construction, and acquisition/disposition consulting . Throughout his career, Mr. Cata has appraised numerous property types, including but not limited to: retail; industrial; multi -family; office; net -leased assets; and land. 1 ©2022 CBRE, INC. i Ron DeSantis, Governor STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Melanie S. Griffin, Secretary FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES 1 1 ram; �z* wick CATA, KRISTIAN 8450 NW 170TH TER =! yr, HIALEAH FL 33015 LICENSE NUMBER: RZ4283 EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online at MyFloridaLicense.com Do not alter this document in any form. dbpr This is your license. It is unlawful for anyone other than the licensee to use this document. Eric Castro CBRE Valuation Associate T + 1 407 839 3196 Eric.Castro@cbre.com 200 South Orange Avenue, Suite 2100 Orlando, FL 32801 Clients Represented • Berkadia • NorthMarq Capital • Interlachen Financial Group Deerwood Capital UBS Commerce National Bank Old Florida National Bank • BBVA Compas • CBRE Capital Markets • PNC Bank • Acres Capital • Walker & Dunlop Experience Eric Castro is a Valuation Associate with one year of real estate appraisal and consulting experience. Mr. Castro is in the Valuation & Advisory Services Group's Orlando office in the Florida/Caribbean Region. His primary geographical focus has been Central Florida and South Florida. Including the counties of Miami -Dade, Broward, Orange, Seminole, Osceola, Polk and Breva rd. Mr. Castro's experience encompasses a wide variety of property types including retail, multifamily, office and industrial properties. Prior to joining CBRE in 201 7, Mr. Castro majored in Finance at the University of South Florida and worked on the accounting department of Raymond James Financial. Professional Affiliations / Accreditations • Registered Trainee Appraiser, RI24529 • University of South Florida, Tampa, FL Education _ Bachelors of Science, Finance - 201 7 Ron DeSantis, Governor STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Melanie S. Griffin, Secretary FLORIDA REAL ESTATE APPRAISAL BD dbpr THE REGISTERED TRAINEE APPRAISER HEREIN HAS REGISTERED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES CASTRO, ERIC FERNANDO 777 BRICKELL AVENUE Z--.4,41.01iii SUITE 1100 r MIAMI ��+� FL 33131 LICENSE NUMBER: RI24529 EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online at MyFloridaLicense.com Do not alter this document in any form. This is your license. It is unlawful for anyone other than the licensee to use this document. APPRAISAL REPORT #3 HEMINGWAY & ASSOCIATES APPRAISAL OF REAL PROPERTY Internal File#JV03245617 LOCATED AT 1851 NW 1 st Ct • FL 33136 Waddell= Add To M.an,. Pc B-53 S1/2 Loy 3 & N1/2 Lot 6 B.. 23 Lot S..e 60 X 125 O, 14757-1483 0890 4 Co. 23470-4349 09 2003 FOR �unay Redeveiopn 1401 N M, a n, Ave • FL 33136 AS OF 03/08/2024 BY Jo. a Va.en..a, MAI, SRA, Cen Gen RZ3562 4251 SW 159th AVE • FL 33185 (786) 285-1205 ,o.re27@yahoo.o ,n, www.d eutsohevalua tions.00m Form GA1 NV LT - "TOTAL' appraisal software by a la mode, inc.- 1-800-ALAMODE Jofre Valencia, SRA, Cert.Res. RD5097 5901 SW 74th Street, Suae 306 Sout M,am,FL33143 Om. Co-, Redeve! p ent Agency 1401 N M,a— Ave M,am , FL 33136 Re: Property: 1851 NW 1, Ct M,em , FL 33136 Borrower: OMNI F,I. No.: 11-042 In accordance with your request, e have appraised the above referenced residential property. The report of that appraisal is attached. The purpose of this appraisal ,s to estimate the market value of the property described ,n this appraisal report, s improved, in unencumbered fee simple title of ownership. This report ,s based on a physical analysis of the site and improvements, a locations! analysis of the neighborhood and ity, and an economic analysis of the market for residential properties such as the subject. The appraisal was developed and the report was prepared ,n accordance with the Uniform Standards of Professional Appraisal Practice and the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal institute. The value conclusions reported are as of the effective date stated ,n the body of the report and contingent upon the certification and limiting conditions attached. We are the opinion that a reasonable exposure time of 3-6 months is linked to the value opinion. It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of additional service to you. - MAI, SRA, Cert Gen RZ3562 Borrower OMNI File No. .1V03245617 Property Address 1851 NW 1. C= city M_ County M.a,,,._Da,,e State FL Zip Code 33136 Lender/Client 0..,.,, Co..,. .,,_„ Rede..e.op.,,e.,= Age.,, TABLE OF CONTENTS Cover Page 1 Letter of Transmittal 2 Table of Contents 3 GP Commercial Certifications Addendum 4 Summary of Salient Features 7 GP Commercial Appraisal Report 8 Additional Comparables 4-6 21 Supplemental Addendum 22 USPAP Compliance Addendum 25 Southeast Florida Multifamily Market Report - Page 1 26 Southeast Florida Multifamily Market Report - Page 2 27 Miami -Dade Multifamily Market Report 28 Building Sketch (Page - 1) 29 Building Sketch (Page - 2) 30 Floor Plan 1 31 Floor Plan 2 32 Subject Photos 33 Photograph Addendum 34 Photograph Addendum 35 Photograph Addendum 36 Comparable Photos 1-3 37 Comparable Photos 4-6 38 Rentals Photos 1-3 39 Regional Map 40 Neighborhood Map 41 Location Map 42 Rentals Map 43 Neighborhood Map 44 Bird's Eye Map 45 Site Map 46 FEMA Flood Map 47 Zoning Map 48 Qualifications fo The Appraiser 49 Appraiser's License JV 55 Invoice 56 Form TOCNP - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Assumptions & Limitina Conditions COM24-02 FileNo.: JV03245617 Property Address 1851 NW 1st Ct City: M,a,,,. State FL Zip Code 33136 Building Name (if applicable): N/A Client O .,." C....,.,.....ty Rede.,erop..,e.,t Ae-.., Address: 1401 N M,a— A.,e, M,a..,., FL 33136 Appraiser Jo..e V.,..,..a, MAI, SRA, Ce« Ge., RZ3562 Address: 4251 SW 159.-. AVE, M,a..,., FL 33185 STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS: - The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. The future operation of the property assumes skilled and adequate management but are not represented to be historically based. - The appraiser may have provided a sketch in the appraisal report to show approximate dimensions of the improvements, and any such sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. Unless otherwise indicated, a Land Survey was not performed. - If so indicated, the appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. - The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. - If the cost approach is included in this appraisal, the appraiser has estimated the value of the land in the cost approach at its highest and best use, and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. Unless otherwise specifically indicated, the cost approach value is not an insurance value, and should not be used as such. - The appraiser has noted in the appraisal report any adverse conditions (including, but not limited to, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property, or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property, or adverse environmental conditions (including, but not limited to, the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. - The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. All information furnished regarding rental rates, lease terms, or projections of income and expense is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof. - The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and any applicable federal, state or local laws. However, the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives and also, the use of this report is subject to the requirements of the Appraisal Standards Board for the State of Florida relating to review by its duly authorized representatives. - If this appraisal is indicated as subject to satisfactory completion, repairs, or alterations, the appraiser has based his or her appraisal report and valuation conclusion on the assumption that completion of the improvements will be performed in a workmanlike manner. - An appraiser's client is the party (or parties) who engage an appraiser in a specific assignment. Any other party acquiring this report from the client does not become a party to the appraiser -client relationship. Any persons receiving this appraisal report because of disclosure requirements applicable to the appraiser's client do not become intended users of this report unless specifically identified by the client at the time of the assignment. - The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public, through advertising, public relations, news, sales, or by means of any other media, or by its inclusion in a private or public database. - An appraisal of real property is not a 'property inspection' and should not be construed as such. As part of the valuation process, the appraiser performs a non-invasive visual inventory that is not intended to reveal defects or detrimental conditions that are not readily apparent. The presence of such conditions or defects could adversely affect the appraiser's opinion of value. Clients with concerns about such potential negative factors are encouraged to engage the appropriate type of expert to investigate. - Values for various components of the subject parcel and improvements or the value derived by one or two approaches to value as contained within this report are valid only when making a summation or final opinion of value and are not to be used independently for any purpose and must be considered invalid if so used. A separate report on only a part of a whole property, particularly if the reported value exceeds the value that would be derived if the property were considered separately as a whole, must be stated as a fractional report. - Forecasts of effective demand for the highest and best use or the best fitting and most appropriate use were based on the best available data concerning the market and are subject to conditions of economic uncertainty about the future. HYPOTHETICAL CONDITIONS and/or EXTRAORDINARY ASSUMPTIONS (if applicable):This appraisal does not employ any hypothetical conditions. We are during the extraordinary assumption that the units which we could not inspect at the date of the appraisal inspection, are in similar condition as the ones we inspected. GP COMMERCIAL Copyright© 2007 by a la mode. inc. This form may be reproduced unmodl(led without written permission. however. a la mode. Inc. must be acknov9edged and credited. Form GPSMCOMAD - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE 5/2008 Scope of Work & Definitions COM24-02 FileNo.: JV03245617 Property Address 1851 NW 1. C. City. M.e m. State FL Zip Code 33136 Building Name Of applicable) N/A Client Or.,.,. Cor.,r.,...,..y Rede.,er.e—e.,. Aer.e3, Address 1401 N M.er.,. A.,., M.er.,., FL 33136 Appraiser. J.,„ Va,e.,e.e, MAI, SRA, Ce.. Ge., RZ3562 Address: 4251 SW 159., AVE, M.er.,., FL 33185 SCOPE OF WORK: The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible assignment results, given the nature of the appraisal problem, the specific requirements of the intended user(s) and the intended use of the appraisal report. Reliance upon this report, regardless of how acquired, by any party or for any use, other than those specified in this report by the Appraiser, is prohibited. The Opinion of Value that is the conclusion of this report is credible only within the context of the Scope of Work, Effective Date, the Date of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hypothetical Conditions and/or Extraordinary Assumptions, and the Type of Value, as defined herein. The appraiser, appraisal firm, and related parties assume no obligation, liability, or accountability, and will not be responsible for any unauthorized use of this report or its conclusions. Additional Scope of Work Comments: We researched the most recent and similar comparable sales and rentals as of the effective date of the appraisal. In order to comply with the appraisal process, we have made a number of investigations and analysis. We have identified the client and other intended users and the intended use of the value opinions and conclusions. We have identified the type and definition of value to be developed; the real estate to be appraised; the real estate interest to be appraised ; any special conditions and assumptions necessary for the appraisal; any hypothetical condition; the effective date of value. We have inspected the exterior and portions of the interior of the subject property for the sole purpose of determining the general condition, configuration, and size of the property. We also have inspected the surrounding neighborhood, including comparable sales and rentals. The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible assignment results, given the nature of the appraisal problem, the specific requirements of the intended user(s) and the intended use of the appraisal report. Reliance upon this report, regardless of how acquired, by any party or for any use, other than those specified in this report by the Appraiser, is prohibited. The Opinion of Value that is the conclusion of this report is credible only within the context of the Scope of Work, Effective Date, the Date of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hypothetical Conditions and/or Extraordinary Assumptions, and the Type of Value, as defined herein. The appraiser, appraisal firm, and related parties assume no obligation, liability, or accountability, and will not be responsible for any unauthorized use of this report or its conclusions. The appraisal is based on the information gathered by the appraiser from public records, private data sources, other identified sources, inspection of the subject property and neighborhood, and selection of comparable sales within the market area. The appraiser? s inspectioi commonly is limited to those things readily observable without the use of special testing or equipment. The appraiser used any combination of property inspection, plans and specifications, asset records, photographs, property sketches, recorded media, etc., to gather information about the relevant characteristics of the subject property. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in this report nor was used as a basis for the value conclusion. Exterior, drive -by inspections of the comparables consist only of a front view and the afore mentioned data sources. I drove by all comparable sales. The photographs of comparable sales and rentals may have been taken at this time or may be copies of photographs from the local Multi -List Service or the appraiser files. DEFINITIONS: 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. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. * This definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5,1990, and August 24,1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7,1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27,1994. EFFECTIVE DATE OF THE OPINION OF VALUE*: Market forces are dynamic, and the appraiser's opinions and conclusions refer to a specific point in time. Given the client's needs and the nature of the assignment, the appraiser must identify the exact date the value opinion would be valid. The effective date of the opinion of value can be a current date, a retrospective(historical) date or a prospective (future) date. The date of opinion of value should not be confused with the date the appraisal report or letter of transmittal is signed. The effective date of th GP '=OMMERCIAL Copyright© 2007 by a la mode, Inc. This Corm may be reproduced unmodhled without wrltlen permisslon, however, a la mode. Inc. must be acknowledged and credited. a/2008 Form GPSMCOMAD -'TOTAL' appraisal software by a la mode, inc.- 1-800-ALAMODE ADaraiser Certifications COM24-02 File No.: JV03245617 Property Address: 1851 NW 1,: C= City: StateState FL Zip Code: 33136 Building Name (if applicable): N/A Client: Omnr Comm,.nr=y Rede..elepmen=Agency Address: 1401 N Mremr A.,e, Mremr, FL 33136 Appraiser: Jon. Ve.en..a, MAI, SRA, C..=Gen RZ3562 Address: 4251 SW 159=1-. AVE, M.emr, FL 33185 APPRAISERS CERTIFICATION: I certify that, to the best of my knowledge and belief:- The statements of fact contained in this report are true and correct.- The credibility of this report, for the stated use by the stated user(s), of the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.- I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.- I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.- My engagement in this assignment was not contingent upon developing or reporting predetermined results.- My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.- My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared.- I did not base, either partially or completely, my analysis and/or the opinion of value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property, or of the present owners or occupants of the properties in the vicinity of the subject property. - Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report - Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification. ADDITIONAL CERTIFICATIONS: CERTIFICATION OF THE APPRAISERS We 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 our personal, impartial and unbiasel professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the properly that is the subject of this report, and no personal interest with respect to the parties involved. 4. We have no bias with respect to property that is subject of this report or the parties involved with this assignment. 5. Our engagement in this assignment is not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors th cause of the client, the amount of the value opinion, the attainment of a stipulated result, on a required minimum valuation, the approval of a loan or the occurrence o a subsequent event directly related to the intended use of this appraisal. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethic and Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice (USPAP), and alsf in conformity with the appraisal regulations issued in connection with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. The use of this report is subject to the requirements of the Appraisal Standards Board for the State of Florida relating to review by its duly authorized representatives. 10. Jofre Valencia, MAI, SRA, General Associate Members of the Appraisal Institute, has made a personal inspection of the property that is subject of this report 11. No one provided significant professional assistance to the person(s) signing this report. 12. Digital photographs taken of the subject property were not enhanced or altered in any way, shape or form. 13. We do not rely on un-supported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, militant status, age, receiver of assistance income, handicap or an unsorted conclusion that homogeneity of such characteristics is necessary to maximize value. 14. We have experience in appraising sorties similar to the subject and in compliance th the Competency Rule of US 15. Jofre Valencia, MAI, SRA, Designated Members of the Appraisal Institute, is currently certified in the state in which the subject property is located. 16. As of the date of this report, Jofre Valencia, MAI, SRA , has completed the continuing education program of the Appraisal Institute. 17.Jofre Valencia, MAI, SRA has performed an appraisal service regarding the subject property within the last 36 months prior to the effective date of this appraisal report. 18. A true and complete copy of this report contains 55 pages including exhibits which are considered an integral part of the assignment. The appraisal report may n be properly understood without access to entire report. SIGNATURES Client Contact: I,ee Jones Client Name: O n; Comm Rede e en=A ni=y opm gency E-Mail: ..oneS@en,rgo...�on, Address: 1401 N M.emr Ave, M.emr, FL 33136 APPRAISER 0-rrc- Appraiser Y. U ne Vann..., MAI, SRA, Cen Gen RZ3562 SUPERVISORY APPRAISER (if required) or CO -APPRAISER (if applicable) Supeiso or Co -Appraiser Name: Company: De,.=scene Vewe=,ons Company: Phone: (786) 285-1205 Fax (305) 359-3280 Phone: Fax E-Mail: .i .„.27@,,,, .com E-Mail: Date Report Signed: License or Certification #: Designation: S=e=e--.=r=red 03/15/2024 Date Report Signed: Cert Gen RZ3562 State: FL License or Certification #: State: gene.... ..eer es=e=e Appraiser RZ3562 Designation: Expiration Date of License or Inspection of Subject: Date of Inspection: Certification: 11/30/2024 Expiration Date of License or Certification: ® Interior & Exterior E Exterior Only E None 03/08/2024 Inspection of Subject: E Interior & Exterior Exterior Only None Date of Inspection: GP COMMERCIAL Copyright©2007 b a la mode, Inc. This form may be reproduced unmodgmd wtthout written permission, however, a la mode, inc. must be acknowledged and credal. 5/2008 Form GPSMCOMAD - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE SUMMARY OF SALIENT FEATURES z 0 F 2 ¢ 0 z p.p ti Subject Address Legal Description City County State Zip Code Census Tract Map Reference 1851 NW 1st Ct Wadda,,, Add To Mi... Pe B-53 S1/2 L.. 3 & N1/2 L.. 6 Bl. 23 L.. Si.. 60 X 125 O. 14757-1483 0£ Mi.„„ M,a„,;-Dade FL 33136 0031.00 33124 w EE $ Sale Price Date of Sale $ N/A N/A U Borrower Lender/Client OMNI 0..,.,; Co„.„...„a„ Rede..eloP.„e„t Age„.,. E 0 ¢ 0 o a Size (Square Feet) Price per Square Foot Location Age Condition Total Rooms Bedrooms Baths 2,576 SgFt $ 496.89 M,a,„, 70 Good/Re„o a.ed 14 6 6 w il a Appraiser Date of Appraised Value Jofre Va,e„..a, MAI, SRA, Ce.t Ge.. RZ3562 03/08/2024 Opinion of Value S 1,280,000 Form SSM2 - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Deutsche Valuation (786)285-1205 COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FIe No.: JV03245617 Property Address: 1851 NW 1s,Ce City: Miami State: FL Zip: 33136 County: Miami -Dade Legal Description: Vyadda„s Add To M...... P. B-53 S1/2 L.. 3 & N1/2 L.. 6 Bi. 23 L.. Si=a 60 X 125 Or SUBJECT III 14757-1483 0890 4 Co. 23470-4349 09 2003 1 Building Name (if applicable): N/A Parcel ID #(s): 01-3125-048-0650 Borrower (d applicable): OMNI Current Owner of Record: Sr.......-,.., W B...' ara Property Use (if mixed, check all that apply): ❑ Office Commercial ❑ Industrial ❑ Retail ® Other (describe) Apartment Budding Comments on Property Use: ,s a medium sized residential income ,t nits ,n on building. u ,s currently rented. It a property w h 6 u e 2-story b ng. No by Market Area Name: OMNI Map Reference: 33124 Census Tract: 0031.00 ASSIGNMENT PARAMETERS The purpose of this appraisal is to develop an opinion of: ® Market Value (as defined), or ❑ other type of value (describe) Intended Use. The use of this appraisal is to establish the current, as-,s in tee simple interest, market value of the subject property. Intended User(s) (by name or type): The ient: Omni Community Redevelopment Agency This report is not intended by the appraiser(s) for any other use or by any other user(s). The appraiser(s) assume no liability for any unauthorized use of this appraisal report. Client: Omni Community Redevelopment Agency Contact: Isiaa Jones Address: 1401 N Miami Ave, Miami, FL 33136 Phone: (305) 679-6868 Fax E-mail: niop_noy@,r,ia,nigo...co,n Appraisal Company: Deutsche Valuations Address: 4251 SW 159th AVE, Miami, FL 33185 Phone: (786) 285-1205 Fax (305) 359-3280 web. www.deutschevaivat.ons.com Appraiser: Jose Vaianaia, MAI, SRA, Car. Gen RZ3562 Co -Appraiser. Designation: State -certified general real estate Appraiser Designation: Certificate or License #: Cer. Gen RZ3562 Certificate or License #: Expiration Date: 11/30/2024 State: FL Expiration Date: State: Property Rights Appraised: ® Fee Simple Leasehold ❑ Leased Fee ❑ Other (describe) Reporting Option(s): ® Summary Appraisal Report ❑ Restricted Use Appraisal Report ❑ Other (describe) This report reflects the following value (if not Current, see comments): ® Current (the Inspection Date is the Effective Date) ❑ Retrospective Prospective ® If checked, this report is also subject to the following Hypothetical Conditions and/or Extraordinary Assumptions: Hypothetical Conditions (if applicable): The appraisal was not completed contingent to any hypothetical condition. Extraordinary Assumptions (it applicable): We are doing the extraordinary assumption that the units which we could not inspect at the date of the appraisal inspection, are in similar condition as the ones we inspected Extent of Inspection of Subject Property: Data Sources Used: ® MLS ® Public Records ® Appraiser's Files Appraiser: ® Interior & Exterior Exterior Only None Date of Inspection: 03/08/2024 ® Lender and/or Client ® Owner ❑ Plans & Specifications ❑ Contract X Other (describe) FARES, Realist, .—pp, LoopNet, and Co Star. Co- or Supervisory Appraiser: ❑ Interior & Exterior Exterior Only None Date of Inspection: Building Area Measured? ® Yes E No ❑ Approaches to Value Developed for This Appraisal: ❑ Cost Approach ® Sales Comparison Approach ® Income Approach Reasons for Excluding an Approach to Value: The Cost Approach ,s particularly applicable when the property being appraised involves relatively nevv improvements, whichrepresent highestandor when e union aspecialized are located on nves ors d noimprovements the or older ke Messhe r properties object. le' accurately.. In t typically rely o difficult to estimate they accrued depreciation SCOPE OF WORK . the Cost Approach when purchasing a property such as the subject of this report. Furthermore, n the present market conditions the real estate properties are being sold below the cost to build them. Therefore, he Cost Approachwas not developed. As result the cost approach has reduced credibility. Additional Scope of Work Comments: The Saope of Work ,s the type and extant of rr.rrrci, and analyses performed ,n an appraisal assignment that is required to procluaa amaibie assignment results, given the nature of the appraisal problem, the sposaifia requirements of the intended user(s) and the intended use of the appraisal report. Rei,anae upon the report, regardless of ho.., aaquiratl, by any party or for any uses, other than those sposailiatl in the report by the Appraise, is prohibited. The Opinion of Values that is the conclusion of this report is ared,bie only within the aon.e.. of the Scope of Wo , Effective Data, the Data of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hyp thetaai Conditions and/or Extraordinary Assup o nd the Typo of Value, as defined herein. The appraise, appraisal firm, and related parties assumes no obligation, ab, y, or aaaountability, and will not be responsible for any unauthorized uses of this report or its aonalusions. Tne pp sri „ breed on the nforn.etio g nered ,. a pp user fro p bia rector , p „fife rises so,.ra ner dentired so,.ra p cton oftne s p p y nd .. g orno nd seiecton o. ao p rabic sails �,nnn the n.er.et ere e. The pp leer?s p ction ao.nn. ,. in.ned to tnoae d, g rer y baer„rbie „ntno,a the se o p aa .fist g r q p ent. Tne pp user sed y on.bnetion p pe > p cn , p ns end p araetio sect rector , p o g p , p p y .seen corded n.ed t , g ner nforn.etion ebo,a the reie„a nt characteristics of the a , p p >. The n g ri so,.rae of the ao p rabies .a ann�.n ., the Drte So,.rae section of the n.er. g ai g nh tin. ,o,.rae of aonfirn.eti e„rirbie. The g ri ,o,.rae p seated first. The soaraea find doer ere aonsdered reiabie. When aonrg for.netinn �.e p ,,.de a ,o,.rae dee.ner .rivet reiebie her been a,ed. Data beie„ed � be ,.nreiabie lire not nai,.ded ., th„ p n nor r,a, sad as a bens for the „ei,.e aonai,.,on. Es.rn n„e ,. p coo.., oohs ce p rrbies aonast y . e front „per, end the liars n.entioned rises so,.raes. I dro„e ,. ii ao p rrbie scree. The p o g p , of ao p rabic scree end renter, ,. e„e been ta.er at t .a n.e or e s p o g p s iron, the ioari M,.it� Lot Sen„ae or the pp user lies. VALUE SUMMARY Value Indication - Total Site Value1N/A(see above explanation) $ N/A Value Indication - Cost Approach: PP N/A(,.....— N/A Value Indication - Sales Comparison Approach: Applicable $ 1,200,000 Value Indication - Income Approach: Applicable $ 1,360,000 Opinion of Value of any Personal Property and/or Other Non -Realty Interests Included Not applicable $ N/A DATE OF REPORT: 03/ 1 55/2024 DATE OF INSPECTION: 03/08/2024 OPINION OF VALUE (as defined):$ 1,280,000 (as is) and/or$ 496.89/SF (other, describe) and/or $213,000/ Unit EFFECTIVE DATE(S) OF VALUE: 03/08/2024 (as is) and/or (other, describe) GP COMMERCIAL Copyright© 2008 by a la mode, Inc. This form may be reproduced unmoabied without wri8en permission, however, a la mote, inc. must be acknowecgec and credal. a/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 File No.: JV03245617 MARKET AREA DESCRIPTION I Market Area Name: OMNI Market Area Boundaries: The subject's neighborhood is bounded to the North by NW 20th Street, to the South by NW 14th Street, to the East by Biscayne Blvd, and to the west by Characteristics Location: ® Urban ❑ Suburban ❑ Rural Buiit up: ® Over 75% ❑ 25-75% ❑ Under 25% Development: ❑ Increasing ® Stable ❑ Decreasing Value Trend: ❑ Increasing ❑ Stable ® Decreasing Rental Demand: ❑ Increasing ® Stable ❑ Decreasing Vacancy Trend: ❑ Increasing ❑ Stable ® Decreasing Present Land Use Vacant: One -Unit Residential: Multi -Unit Residential: Commercial (office/retail/hotels): Industrial: Others: 3 % Undersupply Balanced Oversupply Vacancy ❑ ❑ X 2 % 50 % 5 % ❑ X ❑ 6.3 % 20 % ❑ ❑ X 15.9 % 0 % ❑ X ❑ 11.6 % 22 % ❑ X ❑ 6 % Change in Land Use: ® Unlikely ❑ Likely * ❑ Taking Place * * From: * To: Change in Economic Base: ® Unlikely ❑ Likely * ❑ Taking Place * * From: * To: If any Changes in Land Use and/or Economic Base are Likely or Taldng Place, indicate the impact on property values: ❑ Positive ❑ Negative ❑ None ® N/A Comments on Land Use and/or Economic Base Changes and Impacts: N/A Marketability Factors Exc. Good Avg. Fair Poor Employment Stability: ❑ ® ❑ ❑ ❑ Convenience to Employment: ❑ ® ❑ ❑ ❑ Convenience to Shopping: ❑ ® ❑ ❑ ❑ Convenience to Schools: ❑ ❑ ® ❑ ❑ Adequacy of Public Transport.: ❑ ❑ ® ❑ ❑ Recreational Facilities: ❑ ❑ ® ❑ ❑ N/A ❑ ❑ ❑ ❑ ❑ ❑ Marketability Factors Exc. Good Avg. Fair Poor Adequacy of Utilities: ❑ X EEEE Property Compatibility: ❑ X EEEE Protection from Detrimental Cond: ❑ X EEEE Police and Fire Protection: ❑ X EEEE General Appearance of Properties: ❑ X EEEE Appeal to Market: X EEEEE N'A Description/Analysis of Market Area and Market Conditions (including support for the above characteristics and trends): within the City of Miami in Miami -Dade County. More specifically, T."e subject property is located it is located within the OMNI area. Tine immediate sector is mainly residential use wit." mixed commercial/retail uses located nearby, along tine 1 corridors. There are no known factors that will negatively affect tine marketability of the subject property. TMe subject property is located on NW 1. CT and with NW 14tM Street is located at a close run from the subject. Tine subject is in an average market place in win icI residential properties similar to the subject take less than 6 months to sell. Property value are increasing. These figures were obtained from the appraisers observation of the marketing time for listings and sales within the immediate area and tine ratio of the number of listings to sales. Also considered were the dynamics of tine neigibor."ood, city and state economies. Market conditions surveyed for the past 12 months appear increasing: Sales volume increased 30 percent in the third quarter compared with a year ago, sales prices increased 20 percent in the third quarter on a year -over -year basis. Description/Analysis of the usages of nearby properties and in the Subject's immediate area: multifamily apartments income properties and single family Mouses. Mosc of the properties near the subject are small Other uses such as retails, restaurants, gas station, church, and professional offices among others uses are also present. There are a lot of commercial activities along NW 14[M Street, N Miami Avenue with retail stores, small supermarket, office buildings and gas stations. SUBJECT PROPERTY SALE/TRANSFER HISTORY Is the Subject Property currently listed for sale? ® No ❑ Yes N currently listed: List Price: $ N/A Days on Market: N/A Analysis of Listing. As or the effective date or the appraisal report, the subject has not been listed within the past twelve months. Is the Subject Property currently under Contract or Option? ® No ❑ Contract ❑ Option Has the Contract or Option been reviewed? ❑ Yes ❑ No ® N/A Date of Contract or Option: N/A Expires: N/A Contract Price: $ N/A Closing Date: N/A Buyer. N/A Seller: N/A Analysis of Contract/Option: for sale. to the extent of out Knowledge s of the date of the he s s not under contract and s not be listed w age a sport, t object i Ong My research ❑ did ® did not reveal any pdor sales or transfers of the subject property for the three years pdor to the effective date of this appraisal. DataSource(s): FARES/MLS/ Realist/ Miami -Dade Property Appraiser Webpage. Subject Sale/Transfers Prior Sale/Transfer # 1 Prior Sale/Transfer # 2 Prior Sale/Transfer # 3 Date of Sale/Transfer. 09/29/1995 08/01/1990 Sale/Transfer Price: $15,000 $0 DataSource(s): Px,b.Records/MLS/Realist Pub.Records/MLS/Realist Pub.Records/MLS/Realist Analysis of Sale/Transfer History: effective date of this appraisal A stated above, there has been no recorded transfer of owners n the hip i e past three years prior to the report. See supplemental Addendum. ASSESSMENT Assessment Date: 01 /01 /2023 Parcel(s) Assessed: 01-3125-048-0650 Assessed Value: Total: $ 806,866 Current Taxes: Year: 2023 Tax Amount: $ 9,646.36 Special Assessments: $ .00 Comments: The current 2023 Tax assessment for the subject property is:$306,059 and the tax amount is: $9,646.36. Land Value is $487,800 and improvement value ,s $319,066, 39.69%of the total assessment value. The total assessment's an increase of approximately 40% Deer last year tote! . The change im m 2022 to 2023 was $1,965.08. GP COMMERCIAL Copyright©2008 by a la mode, inc. This form may be reproduced unmanned w0hout wrieen permission, however, a la mode, inc. must be acknowledged and craned. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 File No.: JV03245617 SITE DESCRIPTION d Total Site Dimensions: Unknovvn, the appraiser vvas not provided war, a copy of the subject's survey Total Site Area: 7,500 Sq.Ft. Excess Site Area (if applicable): 0 Sq.Ft. Net Site Area: 7,500 Sq.Ft. Street Frontage: +/- 50 R. (as per Piat Map) Other Site Features or Elements: ® Inside Lot ❑ Corner Lot ❑ Cul de Metal & Chain Link fence Sac ❑ Underground Utilities ® Other (describe) Concrete Patio and Utilities Public Other Provider/Description Electricity: X ❑ FPL Off -site Improvements Type Public Private Street: One main lane X ❑ Gas: ❑ ❑ None Width: Two Lane Water. X ❑ MWSDP Surface: Asphalt Sanitary Sewer. ® ❑ MWSDP Curb/Gutter. Avaiiabie X ❑ Storm Sewer: X ❑ MWSDP Sidewalk: Concrete X ❑ Telephone: ❑ X ATT/Coma st Street Lights: poi, X ❑ Multimedia: ❑ X ATT/Comcast Alley: N/A ❑ ❑ Topography: Level Size: Typical Shape: Rectangular (Interior) Utility: Are Typical for thea Drainage: Appears Adequate View: Res,dent,adA vg. Rail Access: There ,s not rail access facility,thin two mile from the s building. w ubjeci b rig. description: n/a Does the Subject Property He within a FEMA Special Flood Hazard Area: ❑ Yes ® No FEMA Flood Zone: X FEMA Map #: 12086C0312L FEMA Map Date: 9/11/2009 Are any environmental issues known or suspected? ❑ No ®If Yes, describe: contaminated sites within 1/4 mile radius of the subject site. See supplemental According to Miami -Dade public records, there are six addendum for further information. No environmental impact studies were provided for this appraisal. Subsequent environmental studies, research, investigation, and resulting government actions could impact the value estimates contained and thus we reserve the right to revise the report and final value ,f such items are discovered. Soil Conditions: Appears to be firm and with good drainage. The land ,s assumed to be adaptable for normal usage without abnormal expenditures Easements: None known Encroachments: No visible encroachments were noted during the inspection of the subject property. No condemnation has been notified to the sponsor, nor do the appraisers seem to notice any in the near future. Site Comments: The site ,s a typical lot for the neighborhood with adequate front setback for the zoning. The site does meet rear setback. The yard has a concrete patio. Off-street paved parking are available for the residential use. Zoning Classification: T3-0: S..b-Urban Zone: MULTIFAMILY, LOW -DENSITY (18 DU/GROSS ACRE). Zoning Description: The T3-O Sub -Urban Zone is designed for lointensity, lovv rise, single-family and multiple -family residences. The w conditional uses include. adult congregate living facility; day care facility; nursing homreligious institutions: private and public institutions: schools; and commercial or noncommercial parking lots and garages. Do present improvements comply with existing zoning requirements? ® Yes Zone districtconformto the general type of construction and characteristics ❑ No Comments: (a) Any structure erected in an T3-0 Sub -Urban of that i borhood.(b) No b..iid ng shah be erected of u j^str ect appears to mees guidelines. her y on gny T3-O d t. Tn. masonry DNINOZ Does the subject site comply with existing zoning requirements? ®Yes ❑No setback. (b) 5000 sq ref minimum, green space r q regents 25% lot area Comments: (a)Inthe T3-O Sub -Urban Zone:, 20ft for the rear yard m , (c) Building Setback Front 20 ft rnin, Side 5 R min, Rear 20ft rnin, density 18 du/acre rnas, lot coverage 30% max. Uses allowed under current zoning: In the T3-O Sub -urban ZOne, no buildingr land shall be used and no build hail be erects constructed, o rig s reconstructed or structurally altered which is designed, arranged or intended to be used or occupied for any purpose, unless otherwise provided f , excepting for one or more of the following uses. single-family detached dwell rig; townhom : apartments; hotels. Zoning Change: ® Unlikely ❑ Likely * ❑ Taking Place * * To: Comments: Base on the current zoning code, the future land use for this area, the subject can be any use as multiple -family residences and apartments, including every customary or accessory use not inconsistent therewith, including private and storage garages not involving the conduct of a business. There ,s not sign of any redevelopment in the area for the near future, dueunstable reals high unemployment rate over 10.1 GP COMMERCIAL Copydght©2008 by a la mode, inc. This form may be reproduced unmodlhed wdhout wreen pemissioq however, a la mode, inc. must be acknowledged and crafted. 5/2008 Form GPSMCOM -"TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FileNo.: JV03245617 General Description Property Type: Res,denda, In.ome Property-Med.,.,., Seed Year Built: 1954 Actual Age: 70 Effective Age: 2 # of Buildings: 1 # of Stories: 2 Total Estimated Economic life: 55 Construction Type: CBS Estimated Remaining Economic Life: 53 Construction Status: ® Existing Proposed ❑ Under Construction Design or Style: T.,,,o-Story Multifamily Quality: Average Condition: Good Other: Building Breakdown Building Identification and Areas Units #1,2,3 Floor Firs= Net Rentable Area Sq.Ft. 1,288.06 Sq.Ft. Other Net Area Describe Total Net Area Sq.Ft. 1,288.06 Common Area Sq.Ft. 0 GBA Sq.Ft. 1,288.06 Units #4,5,6, Second 1,288.06 1,288.06 0 1,288.06 Column Totals sq.Ft. 2,576.12 2,577 2,576.12 Describe Common Building Areas: Storage/Utility, Stair, corridors, parking places and open patio. Usage Breakdown -All Buildings Usage Type Office: Total Net Sq.Ft. 0 Usage % 0 % Building Ratios -Combined Item Calculated Value Building Efficiency Ratio (Net Building Area Sq.Ft./GBA Sq.Ft.): 100.00 % L DESCRIPTION OF THE IMPROVEMENTS Retail: 0 0 % Floor Area Ratio (GBA Sq.Ft./Net Site Sq.Ft.): 34.35 % Warehouse: 0 0 % Building(s) Total Footprint: 1,288.06 Sq.Ft. Manufacturing: 0 0 % Ground Coverage Ratio (Footprint Sq.Ft./Net Site Sq.Ft.): 17.17 % Distribution: 0 0 % Comments: The total footprint is 1288 S.F. The area of the laundry, Research/Development: 0 0 % stairese and storage/u ihty was no= m.k.ded. Residential: 2,576 100 % Parking Breakdown Item Description On Site: None Industrial Features ® Not Applicable Item # # of Overhead Doors: Other Building Features ® None Noted Item Description Adequacy: Average # of Loading Bays: Covered: None Floor Height (Feet): Garage: None Ceiling Height (Feet): Surface: Asphalt Column Spacing (Feet): Total # of Spaces: OSP Railroad Spur: ❑ Yes ❑ No Spaces/1,000 Sq.Ft. GBA: N/A Other. Improvement Rating Exc. Good Avg. Fair Poor Appeal/Appearance: ❑ ® ❑ ❑ ❑ Floor Plan/Design: ❑ ® ❑ Construction Quality: ❑ ® ❑ ❑ ❑ Exterior Condition: ❑ ® ❑ Interior Condition: ❑ ® ❑ ❑ ❑ Roof Cover. ❑ ® ❑ ❑ ❑ Insulation: ❑ X EEEE Plumbing: ❑ X EEEE Electrical: ❑ X EEEE N/A ❑ ❑ ❑ ❑ ❑ ❑ Improvement Rating Exc. Good Avg. Fair Poor Heating: ❑ ❑ ❑ ❑ ❑ Air Conditioning: ❑ ❑ X ❑ ❑ Elevators: ❑ ❑ ❑ ❑ ❑ Parking Area: ❑ ❑ X ❑ ❑ Fire Suppression: ❑ ❑ X ❑ ❑ Landscaping: ❑ ❑ X ❑ ❑ ❑ ❑ OEEE ❑ ❑ OEEE ❑ ❑ OEEE N/A ❑ ❑ ❑ ❑ Building Characteristics Item Description Foundation. Concra=a Sian on spread concrete footings foundation. Frame: CBS/Reinforced structural frame. Exterior Walls: Masonry Wails, colored reinforced block M„th stucco finish. Roof Support: Concrete s1an. Roof Cover. BUG Interior Partitions: Gypsum board and colored interior stucco Ceiling: Gonboard Gypsum .,,. Insulation: Fine glass Floor & Covering: Ceramic tile Plumbing: Assumed galvanized drain pipe and average porcelain fixtures and toper supply. Electrical: Conduit wiring Heating: FWA Air Conditioning. 6 individual central air condition ..nits Elevators: N/A Fire Suppression: smoke detectors Other Site Improvements: There „ a 21 SF s to i and metal and chain link fence rage/ ii=y r oo landscaping, 1'7 Personal Property and/or Other Non -Realty Interests Included in Opinion of Value: $ N/A GP COMMERCIAL Copyright© 2008 by a la mode, inc. This form may be reproduced unmougmd wehout wreien permission, however, a la mode, inc. must be acknowedged and credal. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FMNo.: JV03245617 I DESCRIPTION OF THE IMPROVEMENTS Comments on the Improvements: The subject has a fiat concrete roof coverer, with BUG. The height on the first floor ,s 8'-6". The second floor has a height of 8'-1" with attic. The subject has impact resistant glasses on all windows which provide a good safety system again hurricane. This feature has additional advantage of discount in hazard insurance. The air conditioner system is composed by fifteen wall air conditioner units. Each one of the six dwelling units has its power supply and water meters. The electrical systems have an average number of outlets according to code and specific area use , nd consist of flexible conduit wiring. The improvements include a two-story building totaling 2,576 SqFt of covered area. The covered area on both floors is interiorly delimited ,n areas under air conditioned comprising 1,288.06 SgFt on the first floor and 1,288.06 SgFt on the second floor and no ci,matize areas with 21 SqFt on the first floor . two exterior stairs provide access to units on the second floor. Interior layout and uses are depicted on the included sketch of the property. FRONT PARKING FACILITIES Over 6 parking spaces are available within the premises on the off -site street parking available for the tenants on the main street. There ,s also some extra parking area on the Rue Vendome. Fire Protection System The buildings have fire protection system consisting of smoke detectors, and extinguisher. This is ,n concordance with the Code. Condition at the Time of Inspection The building was constructed in 1954 but it was complete renovated and redone in 2022. At the time of the appraisal the building was ,n new condition having been properly maintained and updated. Aii Units have been painting at the time of appraisal date. It was also vacant. Aii six aparments were inspected. SUBJECT ROOM COUNT Unit # Type Bed/Bath 1 Apartment 2/1 2 Apartment 0/1 3 Apartment 1/1 _ 4 Apartment 2/1 5 Apartment 0/1 6 Apartment 1/1 HIGHEST AND BEST USE Summary of Highest &Best Use: It,s to be recognized that in cases where a site has existing improvements on it, the highest and best use may very weir determined to be different from the existing use. The existing use will continue, however, unless and until land value ,n its highest and best use exceeds the total value of the property in its existing use. Implied within these definitions is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners.. Also implied is the determination of highest and best use results from the appraisers judgment and analytical skill, , that the use determined from analysis represents an opinions not a fact to be found. Physical Qualities The subjects site size appears to be adequate for the property use. It contains 7,500 Sq.Ft, is regular in shape configuration and has approximately 50'. feet access exposure to 1st Court. The subject site has level topography and apparently good drainage. The subject site has typical governmental services provided for the neighborhood, The subject is also served with the public utilities and services provided by the County and City Governments Legal Limitation of Use The subject site fails within a multi -family zoned district. Multi -family development is appropriate and assumed to have been approved. The immediate area ,s comprised of residents s commercial and some retail properties, with similar appropriate improvements. Feasible and Economic Use The contracted lease of the improvements suggests economic feasibility Maximally Productive Highest and Best Use The future lease of the improvements suggests the lease fee value wire represents the maximally productive and the current optimal Highest and Best Use of the site ,s as an improved multi -family building. As is. Highest &Best Use as if vacant: The subject is zonedT3-O, Multi -Family Residential District which entitles the property o be utiiizea as a Multi -family building. The subject is located within City of Miami, surrounded by resiclentiai uses ana near to retail, hotels and office uses. Given its surroundings and e that are consistent with 1..ci usa patterns in the area are its current usa as a p rtmen s. Multi -family residence. build g9 and smaller -scale motels, guest houses, and multi -fa -y es� enCes as apartments. Howe.er, a prudent and conservative outlook for the H&BUs as though vacant for the subject property s to held for futura development fora 3-5 yearperiod. Highest & Best Use as improved: ® Present use ❑ Proposed use (explain) ❑ Other use (explain) The subject property passes all these coterie. indeed, it is legally permissible, Zones T3-0, is physically possible because the subject enjoys the utilities typical of the neighborhood, and has the set back according the municipal code, it is financially feasibly because units for rent are in demand and the building isfull rented with good income to support a mortgage payment. Vacancy is low in the area (2%-4%). It enjoys almost maximal productivity due to its 93% occupancy and its good location near to the beaches. Based on the analysis of subjects physical attribut s locational influences, legal limitation of use, he appraisers are of the opinion that the Highest a a Best Use of the subject property as of the date of this Appraisal Report is for Multi -family residential use. Actual Use as of Effective Date: Multi -Family Residence Use as appraised in this report: Multi -Family Residence GP COMMERCIAL Copyright©2008 by a la mode, inc. This form may be reproduced unmoueed wdhout wrihen permission, however, a la mode, inc. must be acknowbedged and credal. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 File No.: JV03245617 Methodology - The Opinion of Site Value is derived by the utilization of the following method(s) (see attached addenda for definitions): ❑ Sales Comparison ® Allocation Method ❑ Extraction Method ❑ Land Analysis (see attached addendum) ❑ Other Method (describe) Methodology Comments: is less reliable. Furthermore, Due to the fact that ,n case of an olderhe identification and determination of the amount of property, t depreciation no recent land sales of similar size as the subject site are available to establish reliable land .,awe estimates. SITE VALUATION ' FEATURE I SUBJECT PROPERTY COMPARABLE SITE NO. 1 COMPARABLE SITE NO. 2 COMPARABLE SITE NO. 3 Address 1851 NW 1st Ct Miami, FL 33136 Miam Proximity to Subject Lot/Map Identifier B , 2 Lot 3 Sale/Deed Reference N/A Data Source(s) Rea,Q,...dMLS/Pcb. Verification Source(s) Inspection Sale Price $ N/A $ $ $ C.E. ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjust DESCRIPTION +(-) $ Adjust DESCRIPTION +(-) $ Adjust Rights Appraised Fee Simple Date of Sale/Time N/A Conditions of Sale Average Sale Concessions N/A Cash Equivalent Price $ $ $ S C.E.Price/ Sq.Ft. $ $ $ $ VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) % Adjust DESCRIPTION +(-) % Adjust DESCRIPTION +(-) % Adjust Net Site Area (in Sq.Ft.) 7,500 Location Urban/interior 0 -5 Topography Lever Shape/Utility Regular/ Typical Utilities Typical for the area Site Improvements as though vacant Zoning T3-O Net Adjustment (Total, in $) E + E - $ 0 + E - $ E + X - $ -5 Net Adjustment (Tota , in % of $ / Sq.Ft.) Adjusted Sale Price (in $ / Sq.Ft.) Net % Gross % $ Net % Gross % $ Net _5.0 % Gross 10.0 % (-5.00 %of $/Sq.Ft.) $ Comments/Analysis of Comparable Approach may also Sites: Cost Approach is more useful when used to appraise na wor almost properties. The Cost be used to show the economic feasibility of a new property when related to the final value estimate. In the case of the object property, an older property, the identification and determination of the amount of depreciation is less reliable. The Cost Approach as therefore not developed for this appraisal. The site value was estimate ,.sing the allocation method and tax data. Comments/Analysis of Excess Land (if applicable): N/A Net Site - Indicated Value Net Site Area: 7,500 Sq.Ft. X Indicated Value of Net Site per Unit Area: $ 76.6666 = $ 575,000 Excess Land - Indicated Value (if applicable) Excess Land Area: 0 Sq.Ft. X Indicated Value of Excess Land per Unit Area: $ = $ 0 INDICATED VALUE OF THE SUBJECT TOTAL SITE (Net Site Indicated Value + Excess Land Indicated Value) = $ 575,000 GP COMMERCIAL Copyright©2008 by a la mode, Inc. This form may be reproduced unmodted wdhout wri8en pmmissioq however, a la mode, ,nc. must be acknowledged and nodded. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FileNo.: JV03245617 COST APPROACH This Cost Approach Analysis is based upon: H Replacement Cost New, or H Reproduction Cost New (see comments) Source of Cost Data: Marshall& Sw,t, 2024 National Building Cost Bo Local General Contractors Multipliers: Current Multiplier: Comments on cost data, multipliers, etc.: Local Multiplier: Structure Breakdown Area Unit Cost Basic Current Building or Component Sq.Ft. $/Sq.Ft Cost Multiplier Cost X =$ X Local Multiplier: Area Multiplier: Story Height Multiplier: =$ X X X BUILDING = $ Area Unit Cost Basic Current Building or Component Sq.Ft. $/Sq.Ft Cost Multiplier Cost X =$ X =$ X X X BUILDING = $ Area Unit Cost Basic Current Building or Component Sq.Ft. $/Sq.Ft Cost Multiplier Cost X =S X =S X X X BUILDING = $ I ALL BUILDINGS - TOTAL COST NEW = $ Site Improvements& Additional Items Basic Current Description Quantity Unit Cost Cost Multiplier Cost X =S X X =S X X =S X =S =S =S =S X I SITE IMPROVEMENTS & ADDITIONAL ITEMS - TOTAL COST NEW = $ ALL IMPROVEMENTS - TOTAL COST NEW = $ Entrepreneurial Profit & Soft Costs All Improvements Description % Total Cost New Cost X X =$ =$ I ENTREPRENEURIAL PROFIT & SOFT COSTS - TOTAL COST NEW = $ GRAND TOTAL -COST NEW = $ Physical Depreciation - Long-lived Items Effective Economic Depreciation And/Or Depreciation Description Age Life % Lump Sum Amount $ $ $ $ $ $ Physical Depreciation - Short-lived Items Effective Economic Depreciation And/Or Depreciation Description Age Life % Lump Sum Amount $ $ $ $ $ $ Functional Obsolescence Depreciation And/Or Depreciation Description % Lump Sum Amount $ I$ Economic Obsolescence Depreciation And/Or Depreciation Description % Lump Sum Amount $ I$ TOTAL DEPRECIATION =$( DEPRECIATED VALUE OF THE IMPROVEMENTS = $ OPINION OF NET SITE VALUE _$ 575,000 OPINION OF VALUE OF EXCESS LAND = $ 0 OPINION OF VALUE OF PERSONAL PROPERTY and/or OTHER NON -REALTY INTERESTS INCLUDED =$ OTHER ITEM(S) AFFECTING THE COST APPROACH VALUE (if applicable) = INDICATED VALUE BY COST APPROACH =$ N/A FINAL INDICATION OF VALUE BY COST APPROACH(ROUNDED) _$ N/A Comments/Analysis of the Cost Approach: mentioned before, h as not de makes tdifficultto As , e Cost Approach w developed. The subjects age m accurately evaluate the accrued physical depreciation and consequence obsolescence. Furthermore, in the present market conditions, the properties are being sold below the cost to build them. This fact tends to make the Cost Approach unreliable. Investors do not typically rely n the Cost Approach when purchasing a property similar to the subject of this report. Therefore, we have not utilized the Cost Approach to develop an opinion of the market value in this assignment. GP COMMERCIAL copyrigm©2008 by a la mode, inc. This form may be reproduced unmodded wahout wrelao pmmissioq however, a la mode, inc. must be acknowedged and credal. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FileNo.: JV03245617 U FEATURE I SUBJECT PROPERTY COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO. 3 Address 1851 NW 1s: Ct Miami, FL 33136 1720 NW 1 Pi Miami, FL 33136 172 NW 12th SI Miami, FL 33136 1745 NW 1 Pi Miami, FL 33136 COMPARABLE SALES ANALYSIS Proximity to Subject 0.14 mimes SW 0.55 miles S 0.10 miles SW Building Usage/Name Apartment Building Apartment Building Apartment Building Apartment Building Sale/Deed Reference N/A 333088-2090 Bk 33424/Pg 800 33218-4715 DataSource(s) MLS/ReaksdPub.Rec. ReausJMLS#A2100789 Rae,reJMLS#A11216588 DOM:84 Reau.JMLS# A11113341 DOM: 148 Verification Source(s) Inspection Observation frome SJWD/MLS Observation from e SJWD/MLS mt Sarahi GUtierre=:786-728-1689 Sale Price $ N/A $t 1 500,000 $ 1,075,000 $ 2 000,000 C.E. ADJUSTMENTS DESCRIPTION DESCRIPTION +(-)$Adjust DESCRIPTION +(-)$Adjust DESCRIPTION +(-)$Adjust Rights Appraised Fee Simple Fee Simple Fee Simple Fee Simple Date of Sale/Time N/A 07/21/2022 +150,00010/07/2022 91,00007/26/2023 Conditions of Sale N/A Cash/arm-length Cash/arm-length Cash/arm-length Sale Concessions N/A None known None known None known Market Condition Increasing Increasing Increasing Increasing Cash Equivalent Price $ N/A $ 1,650,000 $ 1,166,000 S 2,000,000 C.E.Price/GBA $ $ 422.21 $ 445.38 $ 505.18 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) % Adjust DESCRIPTION +(-) % Adjust DESCRIPTION + (-) % Adjust Net Building Area 2,576.12 sqR. 3,908 sqR. 2,618 sqR. 3,300 sq.ft. Gross Building Area 2,576.12 sq.ft. 3,908 sq.ft. 2,618 sqR. 3,959 sq.ft. Net Site Area (inSq.Ft.) 7,500 5,520 4,750 +16,360 Location Urban/interior Urban/interior Urban/interior Urban/interior Type of Construction CBS CBS CBS CBS Construction Quality Good Average Average A.,erage Age 70 Year 72 Years 64 Years 73 Years Condition Good/Renovated Average -to -Good +4 Good/Renovated Average -to -Good +5 Parking OSP/6 OSP/10 OSP/6 OSP/10 Units 6 10 6 10 Bedroom/Bathroom 6/6 10/10 6/6 10/10 Annual Rent N/A $114,000 $86,400 $220,800 Cool &Heating CAC/FWA Wail/windows ,.nits +1 Wall/windows ,.nits +1 Wall/windows ,.nits +1 Design 2-story/multi-family 2-story/multi-family 2-story/multi-family 2-story/multi-family DOM N/A N/A 84 148 Zoning T3-O Net Adjustment (Total, in $) ® + ❑ - $ 82,500 X + ❑ - $ 23,320 X + ❑ - $ 120,000 Net Adjustment (Total, in k of $ / SF GBA) Adjusted Sale Price (in $ / SF GBA) Net 5.0 % Gross 5.0 % (5.00 % of $/SF GBA $ 443.32 Net 2.0 % Gross 2.0 % (2.00 % of $/SF GBA $ 454.29 Net 6.0 % Gross 6.0 % (6.00 % of $/SF GBA $ 535.49 Comments/Analysis of Comparable the most recent and Sales: Sales recited are from subject neighborhood and are m acceptable proximity to the subject. They are most comparable found. All value affecting dissimilarities were adjusted according to market reaction. Secondary market standards for net and gross adjustment percentages were not met. However, this fact does not affect the marketability of the subject property. The sales comparison approach brackets a SF value range from $420.88/SF to 535.49/SF, with an ....rage of $463.50 and a median value of $448.81. The indicated range of unit values brackets the .value of the subject. After close evaluation of the comparable sales utilized, more weight is given to the most similar comparabies to arrive a market value estimate. The subject market value fell in the upper part of this range thanks to its better location, neer condition, only few blocks fare ay from Biscayne Bay. Estimated market value ,s 2,576 Sf X $465/SF = 1,197,840 rounded to $1,200,000 The adjusted price per unit are. Comp#1= sale price/ unit =$150,000 per unit Comp#2= sale price/ unit =$194,000 per unit Comp#3= sale price/ unit =$200,000 per unit Comp#4= sale price/ ,.nit =$259,000 per ,.nit Comp#5= sale price/ ,.nit =$197,000 per ,.nit Comp#6= sale price/ ..nit =$200,000 per ,.nit The price per unit ranges from $150,000 /unit to $259,000/unit with an average of $200,000 and a median of $197,000. Base on this data, equal weight is placed to all selected comparable sales. A rounded estimate of $200,000 per unit is adequate to be used to calculate the market value of the subject property due to its complete renovation. Therefore,he subject market value ,s equal to 6* $200,000=$1,200,000 The average of the indicated values ,s $1,200,000. Subject GBA: 257612 Sq.Ft. X s 465.90 /Sq.Ft.GBA: = VALUE BY SALES COMPARISON APPROACH = $ 1,200,214 OPINION OF VALUE OF EXCESS LAND = $ 0 OPINION OF VALUE OF PERSONAL PROPERTY and/or OTHER NON -REALTY INTERESTS INCLUDED = $ 0 OTHER ITEM(S) AFFECTING THE SALES COMPARISON APPROACH VALUE (if applicable) = $ 0 INDICATED VALUE BY SALES COMPARISON APPROACH = $ 1,200,214 FINAL INDICATION OF VALUE BY SALES COMPARISON APPROACH (ROUNDED) _$ 1,200,000.00 GP :OMMERCIAL Copyrights 2008 by a la mode, Inc. This form may be reproduced unmodified wi@out wrilen permission, however, a la mode, inc. must be acknowledged and credited. 5/2008 Form GPSMCOM -"TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FileNo.: JV03245617 y FEATURE I SUBJECT PROPERTY COMPARABLE RENTAL NO. 1 COMPARABLE RENTAL NO. 2 COMPARABLE RENTAL NO. 3 Address 1851NW1s=C= Miami, FL 33136 1948NW2ndC= Miami, FL 33136 1745NW1s=Pr Miami, FL 33136 1710NW1s=C= Miami, FL 33136 COMPARABLE RENTALS ANALYSIS Proximity to Subject 0.17 miles NW 0.10 miles SW 0.12 miles S Building Usage/Name Apartment Building Apartment Building Apartment Building Apartment Building Tenant Name Several tenants Several tenants Several tenants Several tenants Date of Lease 01/01/2011 M.-M. M.-M. M.-M. Date of Rent Survey 1 2/1 5/201 1 12/24/2021 02/07/2024 12/08/2023 Current Vacancy % 7.69 0 0 0 Data Source(s) iMapp/Owner iMap#MLS#A11423245 ,MapoMLS#A11113341 ,MapoMLS#A11469169 Verification Source(s) Owner/rent roils Irving Kahn: 786-640-148 Ariei Levi: 718-737-6482 Kate,yn Ot,e::: 305-330-2753 Actual Annual Rent $ 172,800 $ 220,800 $ 413,400 RENT ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjust DESCRIPTION +(-) $ Adjust DESCRIPTION +(-) $ Adjust Type of Lease * Gross Lease Gross Lease Gross Lease Gross Lease Length of Lease 12 months M.-M. M.-M. M.-M. Rent Concessions None Known None Known None Known None Known Market Conditions/Time Increasing Inc ing Inc sing reas Inc ing !increasing Incr ing Increasing Tenant Improvements N/A N/A N/A N/A Furnishings/Fixtures None None None None Equipment Refrigerator/Stove Refrigerator/Stove Refrigerator/Stove Refrigerator/Stove Utilities Typical Typical Typical Typical Design 2-Story/Mu¢,-Fam,,y 2-Story/M..-F. rnily 2-Story/M i= Fa miry 2-Story/M r= Fa miry Laundry Room Yes Yes Yes Yes Adjusted Annual Rent $ 172,800 $ 220,800 $ 413,400 Adjusted Ann. Rent/SF $ 36.04 $ 55.77 S 63.61 MARKET ADJUSTMENTS DESCRIPTION DESCRIPTION + (-) 8/SF Adjust DESCRIPTION + (-) 8/SF Adjust DESCRIPTION + (-) $/SF Adjust Gross Building Area 2,576.12 scli 4,120 sq.ft. 3,959 sqR. 6,499 sq.ft. Tenant Area Compared 2,576.12 sq. 4,795 'a 3,959 °- 6,499 sq.ft. Net Site Area (in Sq.Ft.) 7,500 7,500 6,360 12,760 Location Urban/interior Urban/interior Urban/interior Urban/interior Type of Construction CBS CBS CBS CBS Construction Quality Good Average Average Average Age 70 Year 65 Years 73 Years 73 Years Condition Good/Renovated Average +3.52 Average +2.64 Average +2.64 Parking OSP/6 OSP/8 OSP/10 OSP/10 Units/Building 6/1 8/1 10/1 20/1 Bedroorn/Bathroom 6/6 12/8 6/10 20/20 Zoning T3-O T3-O T3-O T3-O Annual Rent per bedroom $20,800/Bed $21,600/Bed $36,800/Bed $20,670/Bed Net Adjustment (Total, in $) ® + ❑ - $ 16,878 X + ❑ - $ 10,452 X + ❑ - $ 17,157 Net Adjustment (Total, in $ / SF) Indicated Market Rent (in $ / SF) Net 9.8 % Gross 9.8 % ($ 3.52 / SF) $ 39.56 Net 4.7 % Gross 4.7 % ($ 2.64 / SF) $ 58.41 Net 4.2 % Gross 4.2 % ($ 2.64 / SF) 8 66.25 * Lease Type Abbreviations: G = Gross Lease; N = Net Lease; NNN = Triple Net; MG = Modified Gross; P = Expense Pass Through; 0 = Sales Overage Rents C = Common Area Maintenance; R = Renewal Option Comments/Analysis of Comparable rents used were average Rentals: All three comparabies were ,n similar location and considered good rental indicators. The market and derived from information received through the MLS and other sources. RENT SIMILARITY This neighborhood has similar rent characteristic and there ,s minimal change from one street to another as of population, location, demographic characteristics and surrounding environmental factors. Therefore, the appraiser used similar comps to show the real market reaction and characteristics. The foiiowing are the market rent range according to apartment type: TYPE Bed/Bath Monthly Rent Studio (0/1) $1,350- $1,650 Apar=. (1/1) $1,450-$1,850 Apart (2/1) $1,700 - $2,000 Apart. (2/2) $2,400 - $3,150 SUBJECT RENT ROLL The subject is a new complete renovated building. It ,s vacant. The s,.be;ct co,.id be easeiy rented between $1,500 to $2,200 per month. For —,.....,.J. , I am ,.sing a conservative market rent of $1,500/monthly per Studio. $1,700/monthly per 1/1 $2,000/monthly per 2/1 GP COMMERCIAL Copyright© 2008 by a la mode, Inc. This form may be reproduced unmodified wdhout mho pmmissioq however, a la mode, inc. must be acknowledged and created. 5/2008 Form GPSMCOM -"TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 File No.: JV03245617 SUMMARY OF SUBJECT LEASES / CURRENT & MARKET RENTS , Tenant Name or Suite # Unit 1 (2/1) Tenant Rented Area Sq.Ft. 568 Beginning Date of Lease N/A Length (Term) of Lease 12 Months Type of Lease * N Current Annual Rent in $ 0 Current Annual Rent $/SF Indicated Annual Market Rent in $ 23,998 Indicated Annual Market Rent $/SF 42.25 Unit 2 (0/1) 291 N/A 12 Mon:r,s N 0 18,001 61.86 Unit 3 (1/1) 430 N/A 12 Months N 0 20,399 47.44 Una 4 (2/1) 568 N/A 12 Months N 0 23,998 42.25 Una 5 (0/1) 291 N/A 12 Menu,. N 0 18,001 61.86 Una 6 (1/1) 430 N/A 12 Months N 0 20,399 47.44 Column Totals 2,578 124,796 * Lease Type Abbreviations: G = Gross Lease; N = Net Lease; NNN = Triple Net; MG = Modified Gross; P = Expense Pass Through; 0 = Sales Overage Rents; C = Common Area Maintenance; R = Renewal Option Current Vacancy: 100 % Range of Current Ann. Rents: $ 0 to $ 0 Range of Ann. Market Rents: $ 18,000 10 $ 36,800 Describe Expense Pass Throughs: Nona known Typical Ann. Tenant Improvement Allowance: $00 Leases Expiring Within the Next One Year - Total # of Leases: N/A Total Sq. Ft: 2,576 SUBJECT LEASE TERMS , A Typical Lease Terms: Month -to -Month, Annually iiy Renewal Options: The ,ease shall automatically renew for an aclaitional p r,od of ona year par renewal term, unless either party gives written notice of termination. Provisions for Rent Change: In accordance with the laws of the State of Florida Common Area Maintenance: Owner Rent Concessions: Nee. known Comments on the Subject Lease Terms: complete renovated. The market condition the an of use a vacs2% due to the fact that the s For analysis o appraisal I am going t vacancy of d object is has improve specially for Multi -Family residencies. A growth of market rent of 8.7% is expected for the near uuuuu e. Reconciliation of Subject Lease Terms with the Market: Long term (annually) lease ,s more common for units In City of Miami typical to have a short period of Lease Term, usually month -to -month. with a room count of three bedroom and two bath or larger. Comments/Analysis of the Subject Historical Expanses: services) are direct responsibility of the tenants. This is a multi -family building, where typically utilities (vvater,sevver, electricity, and phone There is only minimal owners expenses, like trash removal, pest control and the electricity, SUBJECT HISTORICAL EXPENSE ANALYSIS , ater and sewer used by the common areas cleaning and lawn irrigation. Maintenance includes such items as painting and structural parts of he building maintenance and repair, utilities maintenance, electrical, HVAC systems, parking lot area, landscaping, flooring, roof repairs and Cher general maintenance expenses. Operating Expenses are costs associated with the operation and maintenance of an income producing property. GP COMMERCIAL Copyright© 2008 by a la mode, Inc. This form may be reproduced unmodgmd wdhout wrihen permission, however, a la mode, inc. must be acknowledged and credal. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FileNo.: JV03245617 INCOME: From: 03/01/2024 To: 02/28/2024 Item Annual Rent ACTUAL $ 0 Comment FORECASTED (non $ 124,796 —stabilized) comment Due to the fact thai the subject was $ $ 0 compieterenovated, rent should be $ $ at the top of the market. $ $ $ $ Potential Gross Income $ $ 124,796 Vacancy (%ofPG1) &Collection Loss 3.6 % $( ) Florida average vacancy rate for Multi -Family dwellings is currently 2.3%. 3.6 % $( 4,493) $ $ ' INCOME & EXPENSE HISTORY & FORECAST $ $ OHER INCOME (LUANDRY) $ 0 Laundry faciity $ 0 Other income laundry facility Effective Gross Income $ $ 120,303 EXPENSES: Item Property (%ofEGI) Management ACTUAL 5 %Management $ Comment fee is typically 3% to 6% of EGI. At Fior,da state level ,s 5%. FORECASTED (non 5 %Management $ 6,015 —stabilized) comment fee is typically 3% to 6% of EGI. At Florida state level is 5%. Property Taxes $ 9,646 $ 10,610 We forecast an increae near to 10% Insurance $ 10,000Includes hazard and flood insurance $ 11,500 We expect an increase of 15% Utilities $ 1,000 $ 1,090 We expect a decrease of 9% Maintenance & Cleaning $ 5,000 $ 5,000 No changes Legal and Professional Fee $ 2,000 $ 2,000 No change are expected. Repairs $ 2,000 $ 2,000 New building need less contanct care Supplies $ 500 $ 500 For common area Auto and Travel Expenses $ 0 $ 0 Licenses $ 0 $ 0 Miscellaneous $ 0 $ 0 Trash Removal $ 0 $ 0 $ $ $ $ $ $ $ $ $ $ Reserves $ $ Total Expenses $ 30,146 $ 38,715 NetOperatinglncome $ 30,146 $ 81,588 Expenses in $/SF GBA: $ 11.70 /SF GBA $ 15.03 /SF GBA Expense Ratio: % 32.18 % Comments/Analysis of the Subject Income & Expenses: In order to estimate the management expenses, we interview persons familiar with similar acuities. A range of rates from 3%to 6% is typical. During 2023 no exceptional repairs were necessary, which indicates that the 2023 xpences are typical costs to the operating expenses for this year. INCOME CAPITALIZATION Comments on the Income Capitalization Methodologies Used: Direct Capitalization is a method used to convert single yeas income expectancy to value in one direct step, by dividing the income estimate by a rate. When a sufficient amount of relevant market data is available, the Direct Capitalization method is considered to be the best measure of the subjects value. Direct Capitalization is market oriented and stresses the analysis of market evidenceby inferring the assumptions of investors. Capitalization Rate Extraction from Comparable Sales Comparable Property Name or Address 1745 NW 1st PL, Miami, FL 33136 Date of Sale 06/21/2023 Sale Price $ 2,000,000 Net Operating Income $ 178,500 Capitalization Rate 6.90 %Marc,, Source and/or Comments & M,v,phap:GPI+„a..+Exile.+ NOI 1710 NW 1st Ct, Miami, FL 33136 07/15/2022 $ 3,500,000 $ 178,500 5.01 %Marc,, & M,n,chap:GPI+„a..+Exile.+ NOI 151 NW 33rd St, Miami, FL 33127 05/17/2022 $ 1,800,000 $ 126,000 7.00 % RE/MAX:GPI+vac.+Exile.+ NOI 1835 NW 2nd Ctt, Miami, FL 33136 10/26/2021 $ 1,450,000 $ 72,500 5.00 % F.,.sto Commerc,a,:GPI+,.ac.+Exile.+ NOI $ $ % $ $ % Cap. Rate Range by Sales Extraction: From: 5 10% To: 7 00% Indicat d Capitalization Rate by Sales Extraction: 6.50% Comments/Reconciliation of Capitalization Rate Extraction: Net Operating Income or NOI is equal to a property's yearly gross income less vacancy and loss and operating expenses. Gross income includes both rental income and other income such as parking fees, laundry and vending receipts, etc. All income associated with a property. Operating expenses are costs incurred during the operation and maintenance of a property. They include repairs and maintenance, insurance, management fees, utilities, supplies, property taxes, etc. It is an essential ingredient in the Capitalization Rate (Cap Rate) calculation that is used to estimate the value of income producing properties. We find a Cap Rate of 5% most appropriate, eliminated the outsider and taking the Fiorida Market Watch report and the cap rate survey from Q2/20211 in consideration capital rate of 5% is mustadequate. Other Capitalization Rate Determination Methods and Indicators Used (only if valid and appropriate for this report) Methodology Band of Investment Addenda Attached ❑ Indicated Cap. Rate % Yield Capitalization ❑ % Published Study: NAR - Florida Commercial Market Watch February 2024 X 5.90 % Comments/Reconciliation of Other Capitalization Rate Method(s) Used: The direct capitalization method is considered to be the method most appropriate in this assignment. The subject value sought is the fee simple interest of an income producing property. As such, direct capitalization is considered to be most reliable. The Capitalization Rate utilized was based on published study and Rate Extraction from Comparable Sal s described abo..e. Sales recited are most similar to the subject and located within the subject market. More weigh is given to the Rate Extraction from Comparable Sales, due to the reliability of the comparable sales utilized. Yield capitalization is not a ppI ica bi e. This method is not applicable when contract rents fluctuate in future. Due to the current economical crisis the projected rents are not reliable. GP COMMERCIAL Copyright© 2008 by a la mode, Inc. This form may be reproduced unmo00ed wdhout wreien percussion, however, a la mode, Inc. must be acknowledged and credal. 5/2008 Form GPSMCOM -"TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FneNo.: JV03245617 INCOME CAPITALIZATION .) Comments/Reconciliation of the Capitalization Rate Conclusion: Capitalization is defined as the process of converting into present value and/or obtaining the present worth of a series of periodic installments of net income. The result of the capitalization process is the amount or capital um that a prudent, typically informed purchaser -investor would pay as of the valuation date for the right to receive the forecasted net income over the period specified. The anticipated net income stream is converted into a value estimate by a rate that attracts purchase capital to vestments with similar characteristics such as risk, terms, and liquidity. The capitalization process takes into consideration the quantity; quality and durability of the income stream in determining which rates are appropriate for valuing the subject property. More weigh is given to the Rate Extraction from Comparable Sales, due to the reliability of the comparable sales utilized. Subject Capitalization Rate Range: From: 5.00 % To: 7 00% Indicated Capitalization Rate for the Subject Property: 6.00% SUMMARY OF INCOME APPROACH Comments/Analysis of the Income Approach: The direct capitalization method is considered to be the method most appropriate in this assignment. The subject value sought is the fee simple interest of an income producing property. As such, direct capitalization is considered tobemost reliable. The Capitalization Rate utilized was based on published study and Rate Extraction from Comparable Sales, as described above. Sales recited are most similar to the subject and located within the subject market. The capitalization process takes into consideration thequantity. quality and durability of the income stream in determining which rates are appropriate for valuing the subject property. A rental market study was conducted to correlate the subject property to other similarly used properties in order to extract from the market the possible market rent that the subject property could command if vailable for rent in the open market, based upon reliable rental data available for this kind of property. Net Operating Income: $ 81,588 / Ind. Cap. Rate: 6.00 % = INDICATED VALUE BY INCOME CAPITALIZATION = $ 1,359,800 OPINION OF VALUE OF EXCESS LAND = $ 0 OPINION OF VALUE OF PERSONAL PROPERTY and/or OTHER NON -REALTY INTERESTS INCLUDED = $ 0 OTHER ITEM(S) AFFECTING THE INCOME APPROACH VALUE (if applicable) = $ 0 INDICATED VALUE BY INCOME APPROACH = $ 1,359,800 FINAL INDICATION OF VALUE BY INCOME APPROACH(ROUNDED) = $ 1,360,000 GP :OMMERCIAL Copyrights 2008 by a la mode, Inc. This form may be reproduced unmoaihed without wrelen permission, however, a la mode, inc. must be acknowledged and credited. 5/2008 Form GPSMCOM - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE COMMERCIAL PROPERTY SUMMARY APPRAISAL REPORT COM24-02 FileNo.: JV03245617 FINAL RECONCILIATION , $ 575,000 Value Indication - Total Site Value:1. Value Indication - Cost Approach: $ N/A Value Indication - Sales Comparison Approach: $ 1,200,000 Value Indication - Income Approach: $ 1,360,000 Opinion of Value of any Personal Property and/or Other Non -Realty Interests Included: $ N/A Final Reconciliation: Cost Approach As mentioned before, the Cost Approach was not developed. The subject's age makes ,t difficult to accurately evaluate the accrued physical depreciation and consequence obsolescence. Furthermore, in the present market conditions, the properties are being sofa below the cost to build it. This tact tends to make the Cost Approach unreliable. Investors do not typically rely on the Cost Approach when purchasing a property similar to the subject of this report. Therefore, vve have not utilized the Cost Approach to develop an opinion of the market value seek in this assignment. Sales Comparison Approach This approach is a reliable indicator of value when sufficient comparable sales are available to arrive at a reasonable value conclusion. The subject property was submitted to a comparison process with a group of similar properties, to obtain an estimate of value for the property In this appraisal, comparable apartment buildings were found which were considered to be reasonable substitutes for the subject. None of the comparable sales were exact matches for the subject. Adjusting the comparabies for differences in physical characteristics and location aid yield indices that were well supported. The Sales Comparison Approach is often a primary valuation method used for the purchase of smaller commercial and multi -family properties such as the subject, particularly by owner -users. Income Capitalization Approach The Income Capitalization Approach is considered to be a reliable indicator of value when sufficient information ,s available to establish market rents, vacancy levels, expenses and capitalization rates. This approach ,s often most relied upon by investors given its concentration on the net income potential of the property. In the case of the subject, a rental market study was conducted to correlate the subject property to other similarly used properties in order to extract from the market the possible market rent that the subject property could command if available for rent in the open market, based upon reliable rental data available for this kind of property. Expense information were obtained from the local MLS and ,n some cases using industry norms and typical leasing provisions. Capitalization rates were extracted from sales of similar buildings and other sources of FINAL VALUE OPINION The property being appraised is an income producing property. When more than one approach is used, each approach is judges based on its applicability, reliability and the quantity and quality of its data. Based on the assumptions, limiting conditions and analyses set out in this appraisal report, and giving equal weight to the Market and Income Approaches to value, it ,s our opinion that the Market Value of the subject's fee simple interest, as of September 05, 2022, the effective date or vaii s. $1,280,000 ONE MILLION TWO HUNDRED EIGHTY THOUSAND DOLLARS DATE OF REPORT: 03/15/2024 DATE OF INSPECTION: 03/08/2024 Based on the degree of inspection of the Subject Property, as indicated below, the defined Scope of Work, Statement of Assumptions and Limiting Conditions, and Appraiser's Certifications, my (our) Opinion of the Market Value (or other specified value type), as defined herein, of the Subject Property is: OPINION OF VALUE (as defined):$ 1,280,000 (as is) and/or$ 496.89/SF (other, describe) ana/or $213,000/ Unit EFFECTIVE DATE(S) OF VALUE: 03/08/2024 (as is) and/or (other, describe) ATTACHMENTS A true and complete properly understood without Attached Exhibits: X Sketch Addendum X Additional Sales ❑ ❑ If required for this assignment, copy of this report contains 56 pages, including exhibits which are considered an integral part of the report. This appraisal report may not be report. X Narrative Addendum X Photograph Addenda X Hood Addendum ❑ Additional Sites Addenda ❑ Hypothetical Conditions X Extraordinary Assumptions ❑ ❑ ❑ ❑ reference to the information contained in the complete X Scope of Work X Limiting Cond./Certification X Map Addenda ❑ Cost Addendum X Additional Rentals ❑ Income/Expense ❑ ❑ ❑ ❑ further attachments may be indicated elsewhere in this report. SIGNATURES Client Contact: I.iaa Jones Client Name: Omni Community RedevelopmentAgency E-mail: isjone@n,ian,igo...coni Address: 1401 N Miami Ave, Miami, FL 33136 APPRAISER 0-1-4- Appraiser ,J Lx-41"-- U rre Valencia, MAI, SRA, Cert Gen RZ3562 SUPERVISORY APPRAISER (if required) or CO -APPRAISER (if applicable) Supervisory or Co -Appraiser Name: Company: Deutsche Valuations Company: Phone: (786) 285-1205 Fax (305) 359-3280 Phone: Fax E-mail: jofre27@yahoo.com E-mail: Date of Report (Signature): License or Certification #: Designation: State 03/15/2024 Date of Report (Signature): Cert Gen RZ3562 State: FL License or Certification #: State: -certified general real estate Appraiser RZ3562 Designation: Expiration Date of License or Inspection of Subject: Date of Inspection: Certification: 11/30/2024 Expiration Date of License or Certification: ® Interior & Exterior ❑ Exterior Only ❑ None 03/08/2024 Inspection of Subject: ❑ Infector & Exterior ❑ Exterior Only ❑ None Date of Inspection: GP COMMERCIAL Copyright© 2008 b a la mode, Inc. This form may be reproduced unmodgmd wdhout written permission, however, a la mode, inc. must be acknowledged and credal. 5/2008 Form GPSMCOM - "TOTAL"" appraisal software by a la mode, inc.- 1-800-ALAMODE ADDITIONAL COMPARABLE SALES COM24-02 FileNo.: JV03245617 COMPARABLE SALES ANALYSIS FEATURE I SUBJECT PROPERTY COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6 Address 1851 NW 1st Ct Mr. , , FL 33136 1864 NW 28th St Mi.mi, FL 33142 225 NW 16th SI Mimi, FL 33136 220 NW 16=r, St Miami, FL 33136 Proximity to Subject 1.92 mimes W 0.25 mires SW 0.29 mires SW Building Usage/Name Apartment Building Apartment Building Apartment Building Apartment Building Sale/Deed Reference N/A Bk 33933/Pg 512 Active Listing Active Listing Data Source(s) MLS/Reakst/Pub.Rec. Rears/MLS# A11420872 DOM:45 Reau.JMLS# A11469018 DOM: 197 ReausJMLS# A11540197 DOM: 1 Verification Source(s) Inspection Rodrigo Fortuna: 786-310-4006 Humberto Rego:305-331-0664 Ayes.,. M.rik:305-764-5286 Sale Price $ N/A $1 295,000 $ 1,575,000 $ 2 000,000 C.E. ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjust DESCRIPTION +(-) $ Adjust DESCRIPTION +(-) $ Adjust Rights Appraised Fee Simple Fee Simple Fee Simple Fee Simple Date ofSale/Time N/A 10/06/2023 Active Listing Pending Sale Conditions of Sale N/A Cash/arm-length Cash/arm-length Cash/arm-length Sale Concessions N/A None known None known None known Market Condition Increasing Increasing Increasing Increasing Cash Equivalent Price $ N/A $ 1,295,000 $ 1,575,000 S 2,000,000 C.E.Price/GBA $ $ 404.69 $ 397.83 $ 298.33 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) % Adjust DESCRIPTION +(-) % Adjust DESCRIPTION + (-) % Adjust Net Building Area 2,576.12 sq.H. 3,120 sq.a. 3,300 sql 5,424 sq.ft. Gross Building Area 2,576.12 sql 3,200 sq.ft. 3,959 sq.ft. 6,704 sq.ft. 0 Net Site Area (inSq.Ft.) 7,500 9,975 06,360 010,500 0 Location Urban/interior Urban/interior Urban/interior Urban/interior Type of Construction CBS CBS CBS CBS Construction Quality Good Av....ge +5 Av.,. +5 A.,erage +5 Age 70 Year 48 Years 0 73 Years 60 Years Condition Good/Renovated Good/Renovated Average -to -Good +5 Aver.ge-to-Good +5 Parking OSP/6 OSP/5 OSP/8 OSP/8 Units 6 5 8 10 Bedroom/Bathroom 6/6 7/5 8/8 10/10 Annual Rent N/A $125,400 $102,000 $99,000 Cool &Heating CAC/FWA Warr/windows ,.nits +2 Warr/windows ,.nits +2 Warr/windows ,.nits +2 Design 2-story/multi-family 1-story/multi-family 2-story/multi-family 2-story/multi-family DOM N/A 84 197 1 Zoning T3-O T4-R -3 T3-O T5-L -5 Net Adjustment (Total, in $) ® + ❑ - $ 51,800 X + ❑ - $ 189,001 X + ❑ - $ 140,000 Net Adjustment (Total, in k of $ / SF GBA) Adjusted Sale Price (in $ / SF GBA) Net 4.0 % Gross 10.0 % (4.00 % of $/SF GBA $ 420.88 Net 12.0 % Gross 12.0 % (12.00 % of $/SF GBA $ 445.57 Net 7.0 % Gross 17.0 % (7.00 % of $/SF GBA $ 319.21 Comments/Analysis of Comparable the most recent and Sales: Sales recited are from subject neighborhood and are m acceptable proximity to the subject. They are most comparable found. All value affecting dissimilarities were adjusted according to market reaction. Secondary market standards for net and gross adjustment percentages were not met. However, this fact does not affect the marketability of the subject property. Th. sales comparison approach brackets a SF value range from $420.88/SF to 535.49/SF, with .n ....rage of $463.50 and a median value of $448.81. The indicated range of unit values brackets the value of the subject. After close evaluation of the comparable sales utilized, more weight is given to the most similar comparabres to arrive a market value estimate. The subject market value fell in the upper part of this range thanks to its better location, new condition, only few blocks fare ay from Biscayne Bay. Estimated market value ,s 2,576 Sf X $465/SF = 1,197,840 rounded to $1,200,000 Th. adjustea price per unit are. Comp#1= sale price/ unit =$150,000 per unit Comp#2= sale price/ unit =$194,000 per unit Comp#3= sale price/ unit =$200,000 per unit Comp#4= sale price/ unit =$259,000 per unit Comp#5= sal. price/ unit =$197,000 per unit Comp#6= sale price/ unit =$200,000 per unit The price per unit ranges from $150,000 /unit to $259,000/unit with .n average of $200,000 and a median of $197,000. Base on this d. , equal weight is placed to all selected comparable sales. A rounded estimate of $200,000 per unit is adequate to be used to calculate the market value of the subject property due to its complete renovation. Therefore,he subject market value ,s equal to 6* $200,000=$1,200,000 The average of the indicated values ,s $1,200,000. GP COMMERCIAL Copyright©2008 by a la mode, inc. This form may be reproduced unmanned Milord wriben permission, however, a la mode, inc. must be acknowledged and credal. 5/2008 Form GPSMCOM.(AC) - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Supplemental Addendum File No. JV03245617 Borrower OMNI Property Address 1851 NW 1,�Ct city Mra County Mra Dade State FL Zip Code 33136 Lender/Client 0..,.,r Com—.,a„ Rede„e.opme.,.Age,,=„ SCOPE OF THE APPRAISAL The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject pauperty and neighborhood, and selection of comparable sales within the market area. The original source of the comparable sales is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in this report nor was used as a basis for the value conclusion. The Reproduction Cost is based on published cost indexes, such as Marshall Valuation Service, and supplemented by the appraiser's knowledge of the local market. Physical depreciation is based on the estimated effective age of the subject property, and consideration of deferred maintenance. Functional and/or external depreciation if present, is specifically addressed in the appraisal report or addenda. In estimating the site value, the appraiser has relied on personal knowledge of the local market. This knowledge is based on prior and/or current analysis of site sales and/or abstraction of site values from sales of improved properties. CENSUS A census tract is a distinctive geographical and statistical area as defined by the census bureau. The census bureau usually begins by defining an (MSA) or Metropolitan Statistical Area, consisting of 50,000 people or more. The geographic area of a census tract can contain from 2,000 to 8,000 people. The economic conditions that exist in a census tract are on average homogenous. These tracts of land are given a number, much like a plat map with folio numbers. The census tract is demographical in nature and includes such information as: Housing Cost, Education Levels, Household Income, Professions, and Housing Profiles. The SMSA numbers for the tri-county area are as follows: Miami -Dade county 5000, Broward county 2680, Palm Beach county 8960. MARKET CONDITIONS IN NEIGHBORHOOD Financing is available from local banks, savings and loans associations, credit unions and mortgage brokers. Typical transactions in the market area are conventional, FHA and VA fmancing. HIGHEST AND BEST USE The Highest and Best Use of a site is that reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal. For improvements to represents the highest and best use of a site, they must be legally permitted, be financially feasible, be physically possible and provided more profit than any other use of the site would generate. SITE The improvements on the property are legal and conform to current zoning regulations. In the event of a loss by fire of all improvements could be rebuilt without obtaining a zoning variance. The opinion of zoning compliance requirements expressed in this appraisal is based on the appraiser's inspection of the subject property and comparison to the appropriate zoning ordinance. This opinion does not represent a certification which can only be obtained from the proper jurisdictional authority. FLOOD INSURANCE The option of the flood insurance requirement in this appraisal is based on the enclosed flood insurance rate map published by the Federal Emergency Management Agency. The approximate location of the appraised property on this map indicates the flood zone. At times the subject falls near a border between two zones, in this case, the worst of the two zones is taken. This opinion does not represent a certification which can only be obtained from a qualified professional, such as a surveyor. ROOM LISTS The number of rooms, bedrooms, baths and lavatories is typical of houses in this neighborhood. Foyers, laundry rooms and all rooms below grade are excluded from the total room count. RADON GAS Radon is a naturally occurring radioactive gas that when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. CONDITION OF COMPONENTS The appraisal is not a home inspection report and should not be relied upon to report the condition of the property being appraised. Any opinion expressed in this appraisal pertaining to the condition of the appraised property's, or comparable properties' components, is based on observation made at the time of inspection. They rely on visual indicators as well as reasonable expectations as to adequacy and dictated by neighborhood standards relative to marketability. These observations do not constitute certification of condition, including but not limited to mold and roof or termite problems, which may exist. If certification of the condition of the property being appraised, or comparable sales is required, a properly licensed or qualified individual should be consulted. Form TADD - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Supplemental Addendum File No. JV03245617 Borrower OMNI Property Address 1851 NW 1,�Ct city Mra„r County MDade State FL Zip Code 33136 Lender/Client 0..,.,r C.--,,r,„ Rede„ei.,—..,Age.,=„ COST APPROACH The Cost Approach includes a land value analysis and the estimated replacement cost to construct, at current prices, abuilding with utility equivalent to the building being appraised, using modern materials, design, layout and current construction standards. Rates for the Cost Approach were calculated using Marshall & Swift Residential Cost Handbook. Physical, functional and external inadequacies, as measured in the market, are deducted accordingly. The "as is" value of site improvements (driveway, Landscaping, etc.) represents their market contributory value as measured by a paired sales analysis. The Cost Approach is considered a supportive indicator of value. The subject's site value has been derived from market abstractions techniques applied to improved land sales from the subject market area, land sales as well as analysis of assessed value. subject's land to total value ratio is common for properties in the subject's market area and does not adversely affect marketability and/or value. DIRECT SALES COMPARISON APPROACH Direct Sales Comparison Approach is based on the comparison of the subject with sales of similar type properties. Adjustments are made to these sales for differences with the subject. this is generally considered the best indicator of value. INCOME APPROACH The income approach is premised on capitalizing a net income from a property to arrive at an indicated value. The subject is a small income residential property, typically purchased for the purpose of generating income. If the Indicated Value by Income Approach on the appraisal form was appropriate for this assignment. PERSONAL PROPERTY/INTANGIBLE ITEMS/NON-REALTY ITEMS: Items of personal property and other non -realty items have not been included in the appraisal or the subject property. The indicated Market Value for the subject property does not include items or personal property or other non -realty property. ADDITIONAL COMMENTS LIVING AREA: The appraisal uses actual living area in the market analysis for both the subject and comparable sales properties. The living area utilized for the sales data has been abstracted from the Public Records/Tax Rolls listed square foot area data and may have been further modified by the field appraiser's observation of the actual improvements. DIGITAL PHOTOGRAPHS Digital photographs taken of the subject property and sales comparables were not enhanced or altered in any way, shape or form DIGITAL SIGNATURES If the appraisal report is digitally signed, the digital signatures in the report are to be considered as the appraiser original signature. A personalized identification number (password) controls the appraiser's digital signature and the appraiser has sole personalized control of affixing the signature. Electronically affixing a signature to a certification in a report carries the same level of authenticity and responsibility as an ink signature on paper. FINANCING In accordance with the definition of Market Value, as attached herein, the Subject Property is appraised on the basis of conventional financial arrangements, unaffected by special or creative financing or sales concessions granted by any one associated with the sale. ITEMS LEFT BLANK For the purpose of this appraisal report, an item left blank indicates this item does not apply to the subject property, indicates a (No, or None) response, or indicates that the appraiser is not able to ascertain and/or is not qualified to furnish this information USE OF APPRAISAL The appraisal report is prepared for the sole purpose of aiding in the decision making process regarding the subject property and is for the sole use of the client as identified in the report as this report has met the scope (defined elsewhere in this report) of this particular client. PROPERTY RIGHTS APPRAISED The property rights being appraised here are "Fee Simple" . Fee Simple means: An absolute fee, 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. An inheritable estate. DATE OF APPRAISAL The date of the appraisal is the date of the last site inspection of the subject property. SUBJECT'S SKETCH All measurements of the subject's improvements have been rounded and the appraiser has tried to determine actual measurements as accurately as possible. This is not a survey and is not to be interpreted as a survey of the subject property. PREDOMINANT PRICE RANGE The predominant sales price is that price which is (most often found) after disregarding isolated extremes at either end of the price spectrum. The estimated market value for the subject is not predominant value of the neighborhood. This does not have an adverse affect on the subject's market value. In the subject's case the market value falls well within the high low price parameters of the neighborhood. This indicates the subject is characteristic and representative of similar properties in the neighborhood. Form TADD - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Supplemental Addendum File No. JV03245617 Borrower OMNI Property Address 1851 NW 1,t Ct city M County M Dade State FL Zip Code 33136 Lender/Client Ore,.,. Corr,rr„a.,it„ Rede„elopme-.0 Ae-. Cap Rates (Multihousing only) Cap rate ranges are based on an estimated NOI derived by annualizing the last 90-days of revenue and subtracting what buyers would estimate as stabilized, year one expenses after adjustments for real estate taxes and reserves. Actual cap rates within each asset class will vary, occasionally outside of the stated ranges, based on asset/location quality and property -specific opportunities for NOI enhancement. SUBJECT SALE HISTORY Deed Type: Sale Date: Grantor: SALES INFORMATION QUIT CLAIM DEED 04/41/2483 Recorded Date: Scet riale L=ne= — -- Deed Type: -n�B Sale Date: 08/81/1996 Recorded Date: Grantor: ker Ausrlats Price: aft/14/211355 Document # Grantee: 315,4t1r7 QLalifierS ak 23470/Pg 4344 [S a• �1 ka�:11.61e 41 Prices #b Document#! n1a Grantee: tcNt Ar. 1.1,1e QLM1ddiers: u Qualifier Fags; U=LInzFaalired, O=other {see nuts), 18=44.11e;.lE, P=P3r-o'.. Y=VxSOL 1=Iranmeec QLA.UFta County CFerk Of Court Watiste Cj SUBJECT LISTING HISTORY None observed within the last 12 months prior to the effective date of the appraisal report. SUBJECT PROPERTY TAX HISTORY sill 20111trannal 11 1 2022 1011 Annual Bill CertlRcam 41275 1021 Annual BM Certificate a1175 20 AMOUNT 004 9RTYF ACTION 55,54635 Unpaid Print (POFI 31 unpaid lulled 06f03R011 Face 5.5,45934, Rate 075, So XI paid 07 635.02 58' 15.(2072 Redeemed 01515,hnr1 Pr:d$7,W3.00 Price IP0F1 Ree0p10052004-1100044 1 54n51471101 Face 57,42P 17, Rate0154 1020 Annual Rill 5090 Paid57560093 0R(1512011 Receipt 0FPPV0427.000546 g Print (PDFJ Certifi3a0ER1133 Redeemed 087t5/2012 Face 51:3303. Rate 0177, Paid57,600.93 1011 ' 1019 A0nus16ill 5000 Paid55,691]0 W15(202P Rataipt002O5-1L.0lu764 1p PA0I 150F1 Certificate P'1420 Redeemed 11(16/1020 Face 56,30000 Rate 11257e Pad 54.69145 2018Mneel Rill 50.50 Paid55,6513e 11/19R013 Receipt 9[f{E[521110-0147f Print IPOFI 1011 Anmmi6111 50.00 Paid5434(6J WPI2011 IMeipl500P11O4.15A01033 q^ Pant IP051 1015Annual Rill 50.00 Paid54JiI9' 11(1]12914 Receipt 0FPP11.13.17-001i11 ffi Print (PO F1 1015 Annual Rill ' S0.00 Paid00.21655 1117-5(2035 Receipt PFPPlO 01n-002l3e IgP Print!PIFM 2014 Annual Bill '. 5000 Paid5141155 1120/11116 Reeeip77,L5NI-15A55733 4. Pride Mr) 30 101120nualEill 50-00 Paid 3320366 06137(2014 Receiptr6050LE-14.006544 4 Print (POE Certificate 41916 Redeemed 05(17(2014 race 53;10422, Rota 0S0o Paid 53.202.58 Form TADD - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE USPAP Compliance Addendum Loan# COM24-02 File# JV03245617 Borrower OMNI Property Address 1851 NW 1st Ct city Miami County Miami -Dade State FL Zip Code 33136 Lender/Client Omni Comm y Redevem p enr Ag y APPRAISAL AND REPORT IDENTIFICATION This Appraisal Report is one et the following types. XAppraisal Report This report was prepared in accordanceweh the requirements of the Appraisal Report option of USPAP Standards Rule 2-2(a)_ Restricted Appraisal Report This report was prepared in accordance with the requirements of the Restricted Appraisal Report option of USPAP Standards Rule 2-2(b)_ The intended user of this report is IimRed to the identified client_ This is a Restricted Appraisal Report and the rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without the additional information in the appraiser's workfile_ ADDITIONAL CERTIFICATIONS I certify that, to the best of my knowledge and belief_ • The statements of fact contained in this report are true and correct The report analyses, opinions, and conclusions are IimRed only by the reported assumptions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions • I have no (orthe specified) present or prospective interest in the property that is the subject of this repot and no (or specified) personal interest with respect tothe parties involved_ . I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment_ • My engagement in this assignment was not contingent upon developing or reporting predetermined results_ . My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal_ • My analyses, opinions, and conclusions were developed and this report has been prepared, in conformfiywlth the Uniform Standards of Professional Appraisal Practice- . This appraisal report was prepared in accordance with the requirements ofTRIe XI of FIRREA and any implementing regulations_ PRIOR SERVICES XI have NOT performed services, as an appraiser or in any othercapacty, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment ❑ I HAVE performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment Those services are described in the comments below PROPERTY INSPECTION ❑ I have NOT made a personal inspection of the property that is the subject of this report_ XI HAVE made a personal inspection of the property that is the subject of this report_ APPRAISAL ASSISTANCE Unless otherwise noted, no one provided significant real property appraisal assistance to the person signing this certification If anyone did provide significant assistance, they are hereby identified along with a summary of the extent of the assistance provided in the repot Penkks Synanidis, Registered Appraiser Trainee RI23631, vvas helping with the data input, verification of the comps, and market analysis. I, Jofre Valencia, MAI, SRA, the supervisory appraiser of the above mentioned register appraiser trainee who contributed to the development or communication of this appraisal, hereby accepts tun and completeresponsibility for any work performed by the registered appraiser trainee named in this re •ort TSas if it.,,.ere in,. ov,n sork. ADDITIONAL Additional USPAP related issues requiring disclosure and/or any state mandated requirements_ MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY XA reasonable marketing time XA reasonable exposure time for the subject property is 90-180 day(s) utilizing market conditions pertinent to the appraisal assignment_ for the subject property is 90-180 dal" - APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature 0 L., X-APeL Signature Name Jo are.. Al, SRA, Cert Gen RZ3562 Name Date of Signature 03/15/2024 Date of Signature State Certification # CertGen RZ3562 State Certification # or State License # or State License # State FL State Expiration Date of Certification or License Effective Date of Appraisal 11/30/2024 Expiration Date of Certification or License Supervisory Appraiser Inspection of Subject Property 03/08/2024 E Did Not ❑ Exterior -only from Street ❑ Interior and Exterior USPAP Compliance Addendum 2014 Form ID14EC - "TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Page 1 of 1 Southeast Florida Multifamily Market Report - Page 1 INVESTMENT FORECAST Multifamily Sow hour f oridn IPA21 2024 Homeownership Hurdles Stand Out Nationally, Driving Apartment Demand Nmvr oiladrng growth trends accompany rwondsupply lotus W 1st Palm 'leach, Miami and Fart Lauderdale ranked Grit. scx:tmd and fourth, respectively, among major II.S, marllet5 in home price appreciation between 22719 and 2023. Combined with elevated mortgage rates, more new residents are funneling into the regional renter poll, while potential first-time humebuyeracontinue to lease aparrmer1M. Cosparatc relocations, amid Florida's favorable tax climate, are benefiting demand for Class A units, ,given a local household income growth rare that ranks among the largest in the country in 2024. Asa reselt al -these dyrumics, net absorption In Southeast Florida is set lrs more than double 2023's total this year. nonpareil overall migration trends due to the rrginieselevated affordability hurdkz will, however, challenge this improved apartment demand in the near-mrsn, Notable supply lmaaure i€ aliu a headwind as the region welcomes S 400 more units this year than the previous all -rime high. Completions in lvliain will arcounr for nearly half of this new stock, though Fort Lauderdale's inventory expands or a faster pace or32 perceiu In nun, the reglan's vacancy rate will remain above as 4,7 percent historical awc•rag.. InnUninne costs create opportunity for regional buyers. The percentage n f institutional -level trades in .'&Mal bast glarida accounted for by out'a &state huyess remained above pre -pandemic nnrnsr last year, despite elevated lending rates. This trend however, may adjust in 2024 us commercial insurance in the. region recently climbed at azt unprecedented pace afterthemoncmry impacts ofnotable natural disasters became -mare pronounced. Should tit is deter non-Flarida bawled firths from punning properties this year, itcould lend ea mare apppmrnivies for in -stare institutional investors to acquire Lacings initiated by distress, due to the rising operating costs. The reglorea substantial number of del NIT -lei this year may also pn ent oppormnides for buyers looking to avoid construction risk. Isevel opens maInatiogtheir near -term holds given ricer] red insurance nub may begirt to form exit strategies. In West Palm 'Beath, an elsbed average price per unit last year aided a more tame pullback in velocity umang SI0 minion -plus trades_ This dynamic mop emerge in the Miami and Fort li nderdnle areas moving forward, re-engaging more invcsrnrs formerly on the sidelines. 18.5% 2022 share of Ford population between 20 and 24 year's old 30.O% $1,214,500 . F term pup trlarion had bachelor's tepees o- higher 21123 metffan &late prier° POynuir [AIW 111 RIM Proce Employment Trends Ra 4e errni — Y.O.Yerrveln t;h,mA - 9Y Housing Affordability Gap MNmrgtge Paymrn1 — Wm/PA-NM a{ 11 14 1r I0 10 ate rI p SY Supply and Demand a Csmpktioru a yes hhaorpftan �' la a.Iitli 1 t . r, 10 71 ea ri aA-. •.e.lrmxrt " rmrrsp'Thisice.ty =arse: Sauk-ce: IPA iirenrth Armcm Rtg; r0of1 k O o Rdlirvrn7 A...trim Oliva/Wm ReatA c,Ire. Form SCNLGL - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Southeast Florida Multifamily Market Report - Page 2 ■ PA ��a:I:Ur1c;.y vG Investment Outlook Among the three major metros that make up Southeast Fkorida, Set rak's altg{egdre supply, demand and rent growth score of t3 i8 dtc highest ()idle hunch_ Fort Loaderdake and West Pi1m Beach, meanwhia. toed tl spanniogthose three vuriahlcs• The framer has greater rent growth, and the latter has n stronger supply ranking. Southeast Florida remains a compelling metro for iostirutions, although recent insurance mist hikes in light of natural disasters are impacting strategies_ Yields are relatively uniform aernsx the region, while Fort Lauderdale has lightly stronger liquidity thts rat tine.: 71k. eery tV r,Grrnaeew ffsJerprtwfdei a ntrrralrvel rAntionar 2ritniatwrk sled from Mr, fjaz flat key suIrkin 2024 MARKET FORECAST Employment 5B,©00 jobs Construction %ofinvon tory' 2,i-;., 11% � .1 % 2.5% Class A Vacancy Up 60 bps 6.5°%o 6.5% Class A Rent $3,164 per month John Sebree Scnie, Vrtrrr cld,u a ntileIPA 6rpillAMIle f7J7)777d4047 Iprdnrefem .]tem 16% -1.1% a ■ a a i Key Performance index 1�mah9 Asir, Qtrpin Lipkealt) n,1.J Vacancy By Class — Cla.A — Cr.,., k S4 Pima c ax 1a P9 Fl 10 Pr :e 11 4' Rent Growth By Class N].YedrAlwrwe — 2024 FaWebat '&NYmafr "flmswil • Met. p4rrfJ nnnplAinit mwdaniywad rah a un ,rururs, arJmn-h Smim CxagrTSutyt ire: 74d1Srq fir: Redropirr Mtab+Va Form SCNLGL -"TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Miami -Dade Multifamily Market Report ill INVESTM [NT FORECAST MULTIFAMILY Miami -Dade Metro Area Marc►rs&Millichap 2024 Local harm owner silip Hurdles Among the Nation's Steepest, Helping Curb Increasing Apartment Vacancy Growth dynamics areal ova historical norms, despite some tempering mom en Wm -Robust in -migration over the last three years hashn usted the average apartment rent roughly9 per- cent since 2020. The loss of some affordability advantages may now partially hinder in Rows as population gains are expected to moderate. Nevertheless, corporate re locations and expansions are helping drive a rate of growth that remains above historic norms. Citaders move to Brickall is a notable In:araple, /aiding to the metro's base orakdBed labor. Though corny of thasw AIM position are higher -wage Jobs, homeawnendtip ebnleoges art directing inure residents to apartments- I n addition to elevated mortgage rates, Miami boasts the third -highest median hatneprlce in the tonntry, fallowing 65 percent hike between N319 and 2021 This dynamic helps tame the pace of eacancys panalon in 2024. allowing the metro to retain the lowestmeasure among major Florida markets A record supply influx, however, Is set to place part enter pressure en the luxury segmen t, Increasing ooneessitln afferingq In the near -terra_ LOC,Istionalinterestrariminaccordancewithcapitaldeploymtent.Tradingvelocityalgaiticaptly declined last year, following a historic coon t of transactions in 20221 need u done! grade activity, however has started to return amid the Prdeml Reserve easing up on rate hikes, while some funds ace capital dap loymen t expirations. Western Muni/-Jlersl and Blatt/eh- Miami Lakes should con- tinue to he popular areas among three investor .. Tighter Clary A.unditiuns here than the overall marifet EA /r delver fur initiating denier wh lie a subbed active pipeline locally may maintain tin 15 dynamic mowing forward. Private buyers acquiring assets ere increasing their holdings in North Coo teal and Northeast Miami These units are attractive for renters, given their proximity too ear. by beaches, urban amenities and affordability relative to Reckon and Downtown -South Beach. 2024 MARKET FORECAST r2411l 4,1114 struts 143 A, 'IN A INVESTMENT. Supply and Der and s Corn,(.noes N'ri.ifwapnnn LwowI6fr fa a Icoi 1 a >d 11 ! m m a 22 tT a Rent Trends —.43rrvrerra•ttrnt — E-0-Yttareara Charge EMPLOYMENT The addition af3DrioGpositions miner this year will allow w''°n it Dr Miami's ove ral I employment growth rate to etuaedall other major Flo rite a, /goon nn•ti o in 2024. d_€ SAW CONSTRUCTION: deliveries th isyear will surpass AAimni's presdcu5 all-time high by ra uglily 24100 units. lncreneingstudc by 3,1 porcetL Down rayon -South Seat:h accounts furnearly one-third of new supply, VACANCY: Reaching S.0pereoiilbyyear-end.ino kaevacancywillbethe lowest among maJnr Sun lie It metro& aside from California. markets like Los Angeles, San doer and Sam Diego. RENT. Miami's average efectiverentresell es$2.678per month in2024.This will be roughly 52 percent ahead of its 20010 mean, thesetond-lnrgestgsin analog major U marketsover that span. Loud challenges will continue rn suppnrr renter demand for Casa C units, preserving nationally -right scgnivnt wucrrrtty and consistent rent prnwth. ThiSmdy eievereInv saw frotetiancl nldvin;Jforward, *;ate s e a m q to a+gtrs^ t+- !R tea 4• •rrwu err ^. Par..!Jai Samar, Conlarcrvlep. one. Pro oplin!Anatjnirx-AmlPopr. lrtr Miami gmkn HarrisonE. Rein /fro..)Lfanapar saldMwrhAtrnrne Arco-m74 70,3 Mfg,. Ft. New: 1143 fx*1521 :191frI Aerrigra/gpf„ tllatrnapdrdiedidipagfa 0 Y...rrrrl..rdvr-r..t warraear off rlM=err.rndrely,aAgawam i+laiebxJ.n rh, mint rrr.Illrrifu4nin nwrhiWr•. rfrlwrwh X.,24 mkt rrrmrrw rwrf.Wrr,,,rr,rlr le- mrtrmm.daww;lrivat dr/.nrwansbwetiw fw llar.r4 n&alynyrpai' xrr..n' 1a,aurrlin0eManl0M1k Aialbi Mao .ri agra JUrx va.fillaIranmaainantihnO atraraPlanni emir± ll'bw0AvvimMtri tb.raMa( I,900pI.MwdurerImani .o-ma�a.w.,e dam ro.f,r.^.w awn,. aKaar maqrsar flialaynap+ aup.w.w.on4`aw+rapr,r. rravrararigaRkiimgla, A. favaarnn Er:n worn aft* Kiaanwhommaraathuima.na4. amain/ dab.s Warn nrwr ma/ Papa mrrw•w•rr namafiro Jlmnrrrrrr. rfrfr hew mx.s-I r.ln.nill..itrM..eiwnl.Jun,a arwuldr►rrs.ilarrur. Vn..ee..rlwc:. 4b.rraaa.adlm5un=ca ! watranwruandle.gean Form SCNLGL -"TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Building Sketch (Page - 1) Borrower OMNI Property Address 1851 NW 1. C= city M_ County M.,,,._Dade State FL Zip Code 33136 Lender/Client 0..,.,; Co..,. .,,_„ R....,...,—,e.,= Age.,, 26.33' Unit #3 Unit #2 First Floor [1288.33 Sq ft] Unit #1 26.33' TOTAL Sketch by a la mode 26.33' Unit #6 Unit #5 Second Floor [1288.33 Sq ft] Unit #4 26.33' All measurement are approximate and not guaranteed. The sketch is include to assist to visualize the property Area Calculations Summary Living Area First Floor 1286.33 Sq ft Second Floor 1288.33 Sq ft Total living Area (Rounded): 2577 Sq ft Calculation Details 26.33 x 48.93 = 1288.33 26.33 x 48.93 = 1288.33 Form SKT.BIdSkI - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Building Sketch (Page - 2) Living/Dining Borrower OMNI Property Address 1851 NW 1sC� City M_art,_ County M_a„__Dade State FL Zip Code 33136 Lender/Client 0....,i Co.........,,, Reda.,a.opma.,t Aa.,.„ 16.31' FLOOR LAYOUT 10.85' 5.46' Bedroom Bath Unit #1 [567.99 Sq ft] a3 U 4) 16.31' 743 rn Bedroom 5.29' 05 Bath Unit #2 5.56, 291.15 Sq ft] Living/Dining Bedroom co 16.31' a, v TOTAL Sketch by a I. mode 16.31' Bath Bedroom Unit #3 [429.44 Sq ft] a) Living/Dining 16.31' All measurement are approximate and not guaranteed. The sketch is include to assist to visualize the property Area calculations Summary Nun -living Area Unit #2 lint #3 unit #1 291.15 5q 5 429.44 Sq ft 567.99 Sq ft 11.64 x 5.56 15.4 x 5.29 0.5 x 10.96 x 0 0.5 x 5.46 x 0.03 26.33x 5.46 = 65.63 = 81.47 = 0.01 = 0.06 = 143.76 26.33 x 16.31 = 429.44 26.33 x 16.31 = 429.44 5.56 x 3.56 = 19.79 10.85 x 10.93 = 116.59 0.5 x 10.85 x 0.03 = 0.16 Form SKT.BLDSKI - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Floor Plan 1 Borrower OMNI Property Address 1851 NW 1. C= city M County Ma,,,l_D.de State FL Zip Code 33136 Lender/Client 0..,.,I Co..,. -..,, Red.„...,—,,e.,= Ag.,,, NEN MEIAL NUE LOCK - 1Np/1,V METAL 3- WIDE GA. ME CAT II LAC ift CATO PUILKIS L: 1 RAM �C wars la. MIN FROM NEW AdUttlYfra CONCRETE moms fry., ESP DOME STAINS IDLISFAHLEGT MEYERS AT mrss 4 L�J EGIRMS !ENV %24-11RANSFER GRILL MOVE EIEBROOM SCARS [reP MILL 1+Ais1 — 913P31.11.16 PEPTIIDE REP! BEDROOM PORTION OF I01�GL5 GI{ p{ p EGRESS IMASION BEDROOM X REMOO `(L \ SE 6EREMSNIED L cl WW1 r OftLPPIE12 Gi'Pm LIVING I RINING ± nmRwvn h I h 00 s AF9. _ - MEL PEPMASFl l PER EPEIAL dy sew[ LI VINO DINING I BEDROOM �. G mammas ARP_ (ExPOS®taur E-rE e2oopl O F.F. LIVING! DINING Clm ammo- GE/LNG-Fr, Ae r. STAIRS SLAB GELISS SICEIRRUS GRASS PIFEO9WNIMs - GROUND FLOOR PLAN �a E_ 1M -0• REPAIR IENSTNG OSMSEETE STEP Form MAP.Survey - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Floor Plan 2 ATTACHED-BD 'TTACH €R& - NEW C'HTALUM FAILING A lr .NCRAILRTMRRAtt EIISTtl1GCCNCREIE STAIRS GTN OLMS ALMS GUM GU II MASS mRDOM WWExv-TPaL& GRILLABGVE BEDROOM DOORS(PLP. AL All uuTSI NGYP.BD. CEII]MG. LIVING I DINING ET[IBGB. CEILING a', FF. IMAIDOW. REMOVE TEW ARM PRONGS NEW 9HET BEDROOM PCFDICR PARTRIGV YO lE ROIOVED ... a NEWIII'GROPPED }ALAI FIRIE BATED DENI$ NG WALL RF_PA. DEG..oA9HEE9.- As]IMEO P LIVING! OWNING BEDROOM SUSIING 6 MEOW BEDROOM POETIC. QF PARTMON TO RE REMOVED CL. NEW 1 GYT91DROPPER TS'A.EF LIVING/ DINING ERSTINGGB. CBLING ed. DOMING W �— NNEALUM, IL S Actlerm WALL �s1 f r.� •,LI CDVEREII BALCONY" IEYV.23 COAL ENDTING STEM .t .1EW 42. HT ARIAS RAIWG SECOND FLOOR PLAN SC LE 1M 1^—IP Ncro dr HT ALMA RAYING WAIL w IINIGRVL ATST ONLY Form SCNLGL - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Subject Photo Page Borrower OMNI Property Address 1851 NW 1. C City M_art,_ County M_a„__Dade State FL Zip Code 33136 Lender/Client 0..,.,i Co..,..,...,,, Reda.,a.op..,a.,t Aa.,.„ Subject Front 1851 NW 1s C Sales Price N/A Gross Building Area 2,576.12 Age 70 Yaa, Subject Rear Subject Street Form PICPIX.SC - "TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Photograph Addendum Borrower OMNI Property Address 1851 NW 1sC� City M_art,_ County M_a„__Dade State FL Zip Code 33136 Lender/Client 0..,.,i Co..,..,...,,, Reda.,a.op..,a., Aa.,.„ East & South Elevation View North Elevation View West & South Elevation View West Elevation Staircase Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Rear Photograph Addendum Borrower OMNI Property Address 1851 NW 1sC� City M_art,_ County mi. „__Dade State FL Zip Code 33136 Lender/Client 0..,.,i Co..,..,...,,, Reda.,a.op..,a., Aa.,.„ Interior View ■ Digital Thermostat Interior View Water Heater AC Handler Interior View Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Subject's Interior Photos Borrower OMNI Property Address 1851 NW 1. C City M_art,_ County mi. „__Dade State FL Zip Code 33136 Lender/Client 0..,.,i Co..,..,...,.„ Reda.,a.op..,a.,t Aa.,.„ Interior View Interior View Interior View Interior View Interior View Interior View Interior View Interior View Interior View Interior View Interior View Corridor View Interior View Interior View Form PIC15 -"TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Interior View Comparable Photo Page Borrower OMNI Property Address 1851 NW 1s,C, city M_ County M.a,,,._Dade State FL Zip Code 33136 Lender/Client 0..,.,, Co..,..,,..,.„ R...„.....,,e.,: A.., Comparable 1 1720 NW 1 s, P. Sales Price 1,500,000 Gross Building Area 3,908 Age 72 Y.— Comparable 2 172 NW 12., S� Sales Price 1,075,000 Gross Building Area 2,618 Age 64 Y.— Comparable 3 1745 NW 1 s, P. Sales Price 2,000,000 Gross Building Area 3,959 Age 73 Yee, Form PICPIX.CC - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Comparable Photo Page Borrower OMNI Property Address 1851 NW 1 s= C= city M_ County M.a,,,._Dade State FL Zip Code 33136 Lender/Client 0..,,, Co..,. .,,_„ Rede..e.o,—,,e.,= Age.,, llll(s lirl� I I.11 16 ,aiinitllIh r Comparable 4 1864 NW 28 S= Sales Price 1,295,000 G.B.A. 3,200 Age/Yr. Blt. 48 Yee s Comparable 5 225 NW 16.., S. Sales Price 1,575,000 G.B.A. 3,959 Age/Yr. Blt. 73 Yee s Comparable 6 220 NW 16., S= Sales Price 2,000,000 G.B.A. 6,704 Age/Yr. Blt. 60 Ye.r= Form PICPIX.CC - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Rental Photo Page Borrower OMNI Property Address 1851 NW 1s,C, city M_ County M.a,,,._Dade State FL Zip Code 33136 Lender/Client 0..,.,, Co..,..,,..,,,„ Red.„...„,—.,,, A9e.,e,. Rental 1 1948 NW 2,—, C, Proximity to Subjo.17 „e, NW Gross Building AI4,120 Age 65 Yee — Rental 2 1745 NW 1,, P, Proximity to Subject 0.10 .,,.,e s SW Gross Building Area 3,959 Age 73 Yee..s Rental 3 1710NW1,,C, Proximity to Subject 0.12 .,,,,es S Gross Building Area 6,499 Age73 Yee..s Form DLSTRNT.DS$C -"TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Regional Map Borrower OMNI Property Address 1851 NW 1. C city County m ip State FL Zip Code 33136 Lender/Client 0—,,i a la mode, irIC: NNW _,. ' oil.Pafiolle` ,bAcr6s CE7-_,., Folds_ 1 — --j frrimol4aIoo Ave Mana ak0Ochee SiStiiI Yerg fade's, City Phrl hAilirFirn — canal Pcn folanageriv2ii -- Palm Beach Pa hokee Gardens Jupiter Belle Glade Evercdadez arid Frbrrcls: S Tar Mdbt.e S1rjrii, 3rer Tredirneni Arc-d !gam es e ad West Palm Beach I3oy nton •-rj De6eaach 1 ryBea eh Boca Raton Pompano Beach Fort Lauderdat Hollywoo Hialeah 67z-, Miami North KOS, Large • key Largo Key 1_ oF9a Tavernier '1.1.arrioeErcila --, Moore Haven Fel Clewisidn Montura Ckilrys 4 Natiorial' preserve? Eve!gI.]dr• Nalianal.Park Layton Duck Key. re rath ac SUBJECT 1551 NW 1t Ct M.Ep data a52: GcogLe NEZi Zrn Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Neighborhood Map Borrower OMNI Property Address 1851 NW „ripsaw.) Degip - ' 131,aa a Sch1.7-":1 31stiSt 1•.`' A gd FP,a r -TV The MuIs COJIgction at the 97/APIEhC1111S NIN,i7th St City Lender/Client OrrIni COrnrnunity Red.velOprnent AgenCy County rviee,i_Deee State FL Zip Code 33136 a la mode, inc: Tpr ..redat Anal WOW [07064,/ - - • liurd '.5111„ ' • ,,,TA It 1411:•*• ' p•• - r NV"!th St-'4 4 t',1'0.1 art I SI NN.S4tIl 41 , 51 11• NIN:33,(1:1M ' d St ir0 • • • 1. 1_4 . • - g ; r.? .7-1•111: " 4471.9". NWIJ1SVS'l uLaLnDurlbar treineffialr.scoliMij St NE 27th & Load M lamb • MachIrre bmn7.! 1.1,1 I • ; l N 12Erth.S1 NW 2001 SI - - ArATT:itilW5.10fahz: gm*, WINO •I • r‘ .1 VC6s6 SUBJECT 1851 rvw lot cz " u-4 RhillraVVheatley Elerrie ary.ge hob a119' 11 "NWpSth • 1LP N Wt5tL1 yel.2ulhEnto •"."""'ont. 121thiSt f_ ErOasil Flitkia] 1.;1111 o d.ta,g= ikpgie "7, ec NV .7th hlEgi Mb St Miami Passport NEirel r••••.- • 41 • k 11, .A6 IL Form MAP.LOC - "TOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Borrower OMNI Property Address 1851 N W Location Map City Lender/Client 0.., Co y Rede e op e . Age County M,a -Dade State FL Zip Code 33136 I V ..•,hi 41 Si S1 , • in Jacksin ..er • I-li[;!1,�i -=1,.i11 COMPARABLE No. 4 1854 NW 28th St 1.92 miles W Sl !ILEE tt»' 1745 N W 1st PI 0.10 miles SW oa s 44, 1 i y� NW ZOth sir„ =_ a7wj , + iLpj,j Y COMPARABLE No. 1 1720 NW 1st PI D,14 miles SW COMPARABLE No. 5 225 NW Stith St 0.25 miles SW 1'4thYSi 4P" SPRING IDE GARI+ toff +„*,.'-i . NW7t1,;St- 9,184, rrf 1ti.'-_` fags° COMPARABLE No. 6 220 NW 16th St 0,29 miles SW COMPARABLE No. 2 172 NW 1`;th St 4].55 miles 5 Li p , P r # Bi_•rI"? PVEIRIDE,:-+ �N, , A ,. 0,2 Image,-rtu=_. [.� S;rh-u6 tie zr i=cfin cg e-., 3src TOL SUBJECT 1851 NW 1st Ct Form MAP.LOC -"TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Borrower OMNI Property Address 1851 NW 1s=C= Rentals Map City Lender/Client County M,e.,,;-Dade State FL Zip Code 33136 a la mode, inc: The-w.comnikcy Wd Walls la . NW25thSt ° NW2Mt! St RENTAL Na.. 1 1048 NW 2nd Ct 0.17 miles NW .Willian, a k. NYC 1 ..NW 41,1 lh S1 "WI q1 Gth1St4 RENTAL No. 3 1710 NW 1st Ct 0.12 miles 5 BUYS'. L P3u1'-'d7th tit yie NW 24th 3i NW,23s'd St x f3' NE, h;t Lock ES LCIad h9tai t`. Machine GTn.. SUBJECT 1851 riw 1stCt :NE-23th.,Tana ioth,st. 111E4101h;St ,,,a NW.9th St =.Sth St :.'S trl i "t 41 NEt15Sh St Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Neighborhood Map Borrower OMNI Property Address 1851 NW 1. C= city M_ County M.a,,,._Da,,e State FL Zip Code 33136 Lender/Client 0..,.,, Co..,..,,..,,_„ Red.v...P.,,e.,= Age„ a la mode, Inc. lir ttM 4-aat, mw.v ar nurdonvArr "'IMP NW 29th St NW 25th Si © The Margulies Collectitir1 at the WAREhOUSE NW 27th st NW26thSt iI 'Cola Plant NW 22 St z Wynwaod Walls9 N Juan o� NW 24tfi Si z ru p- NW 2Bth st m NW 27th St NE 2Bth St NE 27th st Lock & Load Miami. Machine Gun... Original Sekhe Museum ; Miarrti NW 25th St z NW 2dtt1 St g.NW241hSt A NW 23rd sr NW 27nd Z ra NW 22..11r.1 :;it. Paul Laurence Dunbar Elementary School NW21stSt 9 NE 29th St z r NE 28th tit Fkf e JF NE tatlt SI, 111 NE 23rd SI NE 22nd St NE 20th Terrace NF. 701h St NWNth St tj NW 20tft St z z x WYNWOIOD A PADEL CLLIB Orassift Yellow PO - Falcon Miami G1 4. rwl9thul u, • NJ • z v `m rh Pllillis Wheatley • NW 19t{s SI Elerllentary School `" NW 'oath S A VVilliam5 Paris Dorsey Park Ft Th=odofe R. and Thelma A :Gibson School taw 17th Sioi z EleVBtlon Fitness9 v R n n r w l i�ih st NE t blh St .. Now 11111:51 hriN 15th St SUBJIECT 1851 NW 1st Ct NE25thSt z NE °oil, 5, NE 19th SC n A Biscayne Park 1 0 8 NE 1511) St Over -town Youth Center 1,1E 14th St NW14thSt z h St n m R � 2 _ a z Ion Gibson Parkci/ NW 13th.St toal -Me Green Historic Black Police Precinct Courthouse P^E8 audepsiE NE 17th SI NE 16th SI Miami Pasa or • Henry' reeves Park Go gte NW11ahSte w NW 91h SI raw tun �t NE llth sr z R. NE 7At11 St NW 91h Si NE 9th S1 II 41 Pi If Phillip & Patricia F Museum of Scie 8 0 Fat Um, data t422't adtife.7 waft 1= Form MAP.LOC -"TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE Bird's Eye Map Borrower OMNI Property Address 1851 NW 1sC� City M_art,_ County M_a„__Dade State FL Zip Code 33136 Lender/Client 0..,.,i Co..,..,...,.„ Reda.,...,. ,, Aa.,.„ Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Site Map Borrower OMNI Property Address 1851 NW 1. C= city M_ County M.a,,,._Dade State FL Zip Code 33136 Lender/Client 0.,, Co..,. .,,_„ Rede..e.op.,,e.,= Ag.,,, Form MAP.Site - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE FEMA Flood Map Borrower OMNI Property Address 1851 NW 1.= C= city M_ County Ma,,,!_Dade State FL Zip Code 33136 Lender/Client 0..,.,! Co..,. .,!_„ R....,...,—,e.,= A9e.,, Fir! MAP PA!JELS (i711EF AREAS • Mr mlmaffw. hcury.usc ewe end.mes lea rarmenc anotharestr.. 1H5eteerlildidee Svelter FZOA1rI RMS. . bra Yad•m !ai tal..1 W li.tilaaeI. • svea ksand el. [Minna. roan the-.+ Nw,ftwN a Lb al l!mrmam»9 eked li as 2.. ...bile. Gnnaeley..Fn•a Subject 1851 tau 1st Ct 4 i1.flOQ NAY51AbIAFAa ODFCR IeFOAS OF RUM/ FIA.Z.AROI 14y7 le 4 ill *PI tame, 'rarilE lr L :7 ,- J 47- e1 �J 'w����,}.r- e.. k+niru!A e.se IE.bn banally, 1tOe km! IIFE: I Beim Aepikon Academy ecla mi. ev O. Anne. Ponce eIore ILL earn le I e .ride ,fl,in:I rld✓Sd 1n1r1 haf-Mer Berl ins nm.e ar. fia p w.Ml Cramp arn..,1 Fra 1ru.n CAE rpaer.q Ma.:,_-.. ur4F-11 r.G re rw11.1.ea Ili Airmail rE:3ii F-5 'I Gee,cr I a.a11 li n[se!I :...-• Vial matt, Ponu>aweae Rea s, to- GErl1i•R1+L Lnce. Sr a Mee+ II - • SSP.'1A'IU9F_S are. Nal rieoo-xrh we m lime, :pm A 71, erne 'eliellea Wee Ve. 11nnum Crnncn e=e Askra Surface ©.Sara. -- Cra.scalll.r,e.. — Race Eisner. Lla.?EFV'V ern •sSI.Wy !treellv'P i[ewe., leans•. Maaiw MIME. tlraHr. wjmep. %/mtim ••—'•••-• ChdenIL a uhrell, v No m Saerel 1114Fae lease br•.a.innd.rh Form MAP.Flood - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Zoning Map Borrower OMNI Property Address 1851 NW 1. C= city M_ County M.a,,,._Dade State FL Zip Code 33136 Lender/Client 0.,, Co..,. .,,_„ Rede..e.op.,,e.,= Ag.,,, T3 R "w R-3 "W 'i nm 7 ER Form MAP.Zoning - "TOTAL" appraisal software by a la mode, inc.- 1-800-ALAMODE Qualifications fo The Appraiser File No. JV03245617 Borrower OMNI Property Address 1851 NW 1.. C. City M.am. Couny M.am.Dade State FL Zip Code 33136 Lender/Client O n. Comm,..,,.,, Rede.,e.opme.,. Ae., ,. Qualifications of the Appraiser General Data Name. Jofre Valencia, MAI, SRA Cert. Gen. RZ3562 Office Address. Deutsche Valuations 4251 SW 159 Avenue Miami, FL 33185 Phone: 786-757-6686 Cell: 786- 285-1205 eFax: 1-305-359-3280 email:,of e27@„a�oo.�o.. www.de.,tsone..awauo..s. Appraisal Experience: 05/2005-Current 11/2011-12/2012 04/2011- 11/2011 09/2010-03/2011 06/2002 — 04/2005 Deutsche Valuations 4251 SW 159 Avenue Miami, FL 33185 Ph: (786) 285-1205 Fax :(305) 359-3280 Hemingway & Associates 5901 SW 74th ST, Suite 306 South Miami, FL 33143 Adade Consulting 175 SW 7th St, Suite 1812 Miami, FL 33130 TINSA USA 175 SW 7th ST, Suite 1812 Miami, FL 33130 Trust Appraisals 11015SW56ST Miami, FL 33165 Ph: (305) 412-1950 Certified General Appraiser General Manager Residential & Commercial (4000+/- Residential Reports) (100 Commercial Narrative Report) Senior Valuation Analyst Valuation & Consulting Residential Valuation Officer Commercial& Residential Appraisals Residential Appraiser Director Senior Residential Appraiser Res. & Commercial appraisals Assistant to the Appraiser Residential & Commercial (5 Commercial Narrative Report) (770 +/- Residential Reports) Types of Appraisals Assignments performed. 1. Single Family Dwelling, Unique and Difficult Properties 2. Individual Condominium Units, PUD Units, Individual Cooperative Units 3. Vacant Lots, Sites and Parcels, & Residential Acreage & Lots, Highest & Best Use Studies 4. Small income one to four residential unit, 5+units, Apartment Buildings, 5 to 200+ units 5. Mobile Homes, Mobile Home Parks, Oddball or Non -Conforming Properties 6. Green Houses and Sustainable Green Building, Bay front Homes & Oceanfront Homes 7. Commercial Existing Property: Office Building, Warehouse, Retail Store, Hotel, Motel Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Qualifications fo The Appraiser File No. JV03245617 Borrower OMNI Property Address 1851 NW 1s. C. City M County Ma,,,, -Dade State EL Zip Code 33136 Lender/Client Om.,, Comm,..,,.,, Rede„e,op,.,e.,t Age.,„ Education. 1. Several Continuing Education Courses: Universidad Industrial de Santander, Bucaramanga, Colombia Justus Liebig University, Giessen, Germany Universidad Popular del Cesar, Valledupar, Colombia Miami -Dade Community College Florida International University Florida Atlantic University 2. Bachelor of Science in Biomedical Engineering Fachhochschule Giessen -Friedberg, Giessen, Germany Licenses and Memberships 2018 -MAI Designed Member of the Appraisal Institute A1453624 2013- Miami, Florida, State -Certified General Real Estate Appraiser RZ3562 2012-Advanced MAI Candidate A1453624 2010 -SRA Designed Member of the Appraisal Institute A1453624 2008- FHA Appraiser Rooster FLRD5097 2005- Miami, Florida, State -Certified Residential Real Estate Appraiser RD 5097 2003- Chicago, Illinois, Appraisal Institute Associate Member Al 453624 General Associate Member pursuing MAI & SRA Designation (MAI &SRA Candidate) 2002- Miami, Florida, State Registered Assistant Appraiser 1995- Valledupar, Colombia, Biomedical Engineer 1994- Giessen, Germany, Biomedical Engineer 1991- Dusseldorf, Germany, VD! Member (German Engineers Association) Real Estate Courses & Seminars. Appraisal Institute, South Florida Chapter 6 Hour QE 2020 Course November 6, 2020, Virtual Classroom, Florida Bos,ness Pra�t,�es an Appraisal Institute, South Florida Chapter 8 Hour QE 2020 Course June 25, 2020, Virtual Classroom, Florida IRS - Va, aria or Do atE RI 9430 Appraisal Institute, South Florida Chapter 7 Hour QE 2020 Course June 16, 2020, Virtual Classroom, Florida National USPAP Update Appraisal Institute, South Florida Chapter 2 Hour QE June 12, 2020, Virtual Classroom, Florida Va, aria Impacts or COVID-19: 1-4 U.,, Res,de.,t,a, Appraisal Institute, South Florida Chapter 3 Hour QE 2018 Course June 11, 2020, Virtual Classroom, Florida F,or,da La for Rea, Estate Appraiser Appraisal Institute, South Florida Chapter June 07, 2019, Fort Lauderdale, FL 8 Hour QE 20195 Course The E„o,..t,on of Rea, Estate E-Co.nrneroe Impact. Appraisal Institute, South Florida Chapter 4 Hour QE 2018 Course September 21, 2018, Miami, Florida Te.hnt„t,gy T,ps for Rea, Estate Appraisers Appraisal Institute, South Florida Chapter 7 Hour QE 2018 Course August 17, 2018, Miami, Florida Nat, na, USPAP Update Appraisal Institute, South Florida Chapter 3 Hour QE 2018 Course August 17, 2018, Miami, Florida F, r,da La,,,, air Rea, Estate Appraiser Form TADD -"TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Qualifications fo The Appraiser File No. JV03245617 Borrower OMNI Property Address 1851 NW 1 .. C. City Mia County Md,,,,-Dane State FL Zip Code 33136 Lender/Client Or-, Co,.,,.,,..,i.y Rede.,elop,.,e.,t Age.-y Appraisal Institute, South Florida Chapter March 23, 2018, Fort Lauderdale, Florida Appraisal Institute, Central Florida Chapter February 19-25, 2018, Orlando, Florida Appraisal Institute, South Florida Chapter December 11, 2017, Fort Lauderdale, Florida Appraisal Institute, South Florida Chapter April 25, 2017, Miami, Florida Appraisal Institute, South Florida Chapter August 25, 2016, Miami, Florida Appraisal Institute, South Florida Chapter August 25, 2016, Miami, Florida Appraisal Institute, South Florida Chapter December 09, 2015, Fort Lauderdale, FL Appraisal Institute, South Florida Chapter December 03, 2015, Fort Lauderdale, FL Appraisal Institute, South Florida Chapter October 07, 2015, Fort Lauderdale, FL Appraisal Institute, South Florida Chapter September 11, 2015, Fort Lauderdale, FL Appraisal Institute, South Florida Chapter Miami, FL, July 16, 2015 Appraisal Institute, South Florida Chapter Webminars, June 01, 2015 Appraisal Institute, South Florida Chapter November 07, 2014, Fort Lauderdale, FL Pier 66 Marina April 9, 2014, Fort Lauderdale Appraisal Institute, South Florida Chapter Webminars February 05, 2014 Appraisal Institute, South Florida Chapter Boca Raton, FL January 24, 2014 Appraisal Institute, South Florida Chapter Fort Lauderdale November 15, 2013 Appraisal Institute, South Florida Chapter Fort Lauderdale August 21, 2013 Appraisal Institute, South Florida Chapter Fort Lauderdale May 17, 2013 Appraisal Institute, South Florida Chapter Florida International University June 9, 2012, Miami, Florida 7 Hour QE 2018 Course Aa an�ea Lana Vawauon: So Solutions to Perplexing Problems General Demonstration Report Capstone Progr m 7 Hour QE 2018 Course 7 HourQE2017 Course Using IcoF.nology I To Measure ana Support 7 Hour QE 2016 Course National USPAP Update 3 Hour QE 2016 Course Florian Law ror Real Estate Appraiser 8 Hour QE 2015 Course FHA S..,g e 8 Hour QE 2015 Course Intros motion to Green B. Concepts 7.5 Hour QE 2015 Course 3 Hour QE 2015 Course Tightening the Appral 2 Hour QE 2015 Course Miami -Dade Co.nty P Presentation 7 Hour QE 2015 Course General Den, onstrati< 3 Hour QE 2014 Course Critical Thinking in A, 7 Hour QE 2014 Course National USPAP Update 2 Hour QE 2014 Course Residential Solar Photovoltaic Leases. Market Value Dilemma 3 Hour QE 2014 Course Liability Issues ror Appra iscrs Performing Litigation 3 Hour QE 2013 Course Developing a Supportable Workrile 7 Hour QE 2013 Course Appraising the Appraisal: Appraisal Review Residential 4 Hour QE 2013 Course 7 Hour QE 2012 Course National USPAP Update Appraisal Institute, South Florida Chapter 3 Hour QE 2012 Course Florida International University Florian Law ror Real Estate Appraiser Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Qualifications fo The Appraiser File No. JV03245617 Borrower OMNI Property Address 1851 NW 1 .. C. City M County Ma,,,, -Dade State FL Zip Code 33136 Lender/Client Or—,, Comm,..,,.,, Rede.,e.opme.,. Ae.—,, June 9, 20102 Miami, Florida Appraisal Institute, South Florida Chapter Fort Lauderdale, FL May 7-8, 2012 Appraisal Institute, South Florida Chapter Fort Lauderdale, FL February 15, 2012 Appraisal Institute, South Florida Chapter Fort Lauderdale, FL February 15, 2012 Appraisal Institute, South Florida Chapter Fort Lauderdale, FL December 2, 2011 Appraisal Institute, South Florida Chapter Fort Lauderdale, FL July 21, 2011 Appraisal Institute, South Florida Chapter April 11-15, 2011, Fort Lauderdale Appraisal Institute, South Florida Chapter Fort Lauderdale February 28 -March 03, 2011 Appraisal Institute, South Florida Chapter January 24-29, 2011, Fort Lauderdale Appraisal Institute, North Texas Chapter Dallas, Texas November 05-08, 2010 Appraisal Institute, North Texas Chapter Dallas, Texas November 01-04, 2010 Webinar, Appraisal Institute August 18, 2010 Appraisal Institute, South Florida Chapter Fort Lauderdale, July 22-27, 2010 Webinar, Appraisal Institute July 01, 2010 Appraisal Institute, South Florida Chapter Florida International University June 26, 2010, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University June 12, 2010, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University June 05, 2010, Miami, Florida Webinar, Appraisal Institute May 26, 2010 Department of Revenue of the State of Florida, May 25, 2010 Appraisal Institute, South Florida Chapter May 14, 2010, Westin, Fort Lauderdale 15 Hour QE 2012 Course Fda a ta,s of $e par: Perst,.,a, Pro pert„ 3 Hour QE 2012 Course AAppra,ser s I tro/O er ,e of tn. US Ht,te, I.,d.,stry (AM) 4 Hour QE 2012 Course Ho e, Market $t d,es & HVt$t,ft,,,,are (PM) 7 Hour QE 2011 Course 7 Hour QE 2011 Course T„e U.,,f,r Appra,sal Data set fro fro rr, Fa., .,,e Mae a.,d Fredd,e Mat: 35 Hour QE 2011 Course 30 Hour QE 2011 Course Ge.,era, Appra,ser $,te Va,uat,on & Cost Apprt,acF, 40 Hour QE 2011 Course 30 Hour QE 2010 Course Ge era, Appra,ser Report Wr,ti.,g & Case St.., 30 Hour QE 2010 Course Ge era, Appra,ser Market 1 Hrs QE 2010 Webinar T„e Appra,ser a.,d tn. STDB: Location, time 40 Hour QE 2010 Course Ad a tee= S.,e= Comparison &Cost Approaches 1 Hrs QE 2010 Webinar 3 Hour QE 2010 Course 7 Hour QE 2010 Course Nato a, USPAP Update 3 Hour QE 2010 Course F,or,da La for Rea, Estate Appra,ser 2 Hrs QE 2010 Webinar Online Training 2009 V.,..e A.J..str.,er,t Board 4 Hour QE 2010 Seminar Prt,pert„ Tax Assess e t Appraisal Institute, South Florida Chapter 21 Hour QE 2010 Course Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Qualifications fo The Appraiser File No. JV03245617 Borrower OMNI Property Address 1851 NW 1 .. C. City Mia County Ma,,,, -Dade State FL Zip Code 33136 Lender/Client Or—, Co,,,,,,,..,i.,, Rede.,elopme.,. Ae.,c,, Fort Lauderdale March 15-17, 2010 Appraisal Institute, South Florida Chapter Florida Atlantic University Center 10/07-08, 2009 Boca Raton, Florida Appraisal Institute, South Florida Chapter Florida Atlantic University Center 10/05-06, 2009 Boca Raton, Florida Appraisal Institute, South Florida Chapter Florida International University July 23, 2008, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University July 23, 2008, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University July 16, 2008, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University July 16, 2008, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University July 09, 2008, Miami, Florida Appraisal Institute, South Florida Chapter Florida International University July 09, 2008, Miami, Florida Appraisal Institute, South Florida Chapter Florida Atlantic University Center March 19-22, 2007 Boca Raton, Florida Appraisal Institute, South Florida Chapter Florida Atlantic University Center March 16-17, 2007 Boca Raton, Florida Gold Coast School of Real Estate October, 2006 Tamarack, Florida Appraisal Institute, National Program June 12-17, 2006, Little Rock, Arkansas Appraisal Institute, South Florida Chapter June, 2006, FIU, Miami, Florida Appraisal Institute, South Florida Chapter June, 2006, FIU, Miami, Florida Appraisal Institute, South Florida Chapter December 9, 2005 Boca Raton, Florida Landsafe, Appraisers Workshop November 10, 2005, Fort Lauderdale, FL A la mode, Technology Convection July 28-30, 2005, Orlando, Florida Appraisal Institute, South Florida Chapter FIU, Miami, Florida (2005) Appraisal Institute, South Florida Chapter Boca Raton, Florida (05/2005) Appraisal Institute, South Florida Chapter Pompano Beach, Florida (04/2005) Con de.nnatson Appraising: Principles & Applications 15 Hour QE 2009 Course The Appraiser as an Expert Witness Preparation and Testimony 15 Hour QE 2009 Course Litigation Appraising: Specialized Topics and Applications 7 Hour QE 2008 Course Introduction to Income Capitalization 3 Hour QE 2008 Course 7 Hour QE 2008 Course National USPAP Update Course 3 Hour QE 2008 Course Spotlight on USPAP: Hypothetical Conditions & Extraordinary 7 Hour QE 2008 Course 3 Hour QE 2008 Course Florida La for Real Estate Appraiser 30 Hour QE 2008 Course Ad anted Residential % Part 2 15 Hour QE 2008 Course Ad anted Residential /a Case Studies/Part 1 60 Hours FREAB Appraisal Course ABIII General Appraisal Course 30 Hour FREAB/#ACE0006902 3 Hour FREAB/#ACE0007293 Florida State Law for Real Estate Appraiser 7 Hour FREAB/#ACE0007184 National USPAP UPDATE 8 Hour FREAB/ACE0007219 Business Practices and Ethics 4 Hours OREA/ACE New Fannie Mae Forms 3 days seminars and courses about use of new technology in appraisal business 7 Hour FREAB/#ACE0007557 The Professional's Guide to the URAR 3 Hour Seminar FREAB ACE Single Family Fraud Awareness Associate Guidance Workshop Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Qualifications fo The Appraiser File No. JV03245617 Borrower OMNI Property Address 1851 NW 1 .. C. City M County min ,,,,-Dade State FL Zip Code 33136 Lender/Client Om.,, Comm,..,,.,, Rede.,e.opme.,. A.,--,, Appraisal Institute, South Florida Chapter FIU, Miami, Florida (2004) Appraisal Institute, South Florida Chapter Boca Raton, Florida (2004) Appraisal Institute, South Florida Chapter Boca Raton, Florida ( 2004) Miami -Dade Community College( 2003) Miami, Florida Miami -Dade Community College (2003) Miami, Florida Gold Coast School of Real Estate (2003) Miami, Florida Miami -Dade Community College (2003) Miami, Florida 20 Hour Florida FREAB ACE 3 Hour Florida Appraisal Law Update 15 Hour National USPAP FREAB Appraisal Course ABIIb FREAB Appraisal Course ABII Mortgage Broker License Course Real Estate Salesperson Licensing Course Miami -Dade Community College (2001) FREAB Appraisal Course ABI Miami, Florida Form TADD -"TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Appraiser's License JV Borrower OMNI Property Address 1851 NW 1. C= city M_ County M.a,,,._Dade State FL Zip Code 33136 Lender/Client 0..,.,, Co..,. .,,_„ Red.„...,—,,e.,= Age.—,. Jofre Valencia, MAI, SRA Cert Gen RZ3562 Ron DeSantls. Governor STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Ftalsey Seshears, Secretary FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDAJTATUTES Vet VALEN+CIA, 1OFRE 4251 SW 159 AVE MIAM1 FL 3318 r: EXPIRATION DATE NOVEMBER 30, 2022 Always verify licenses online at MyFloridaLiicense.com Do not alter this document in any form. dbpr This is your license. It is unlawful for anyone other than the licensee to use this document. Form MAP.Comp - "TOTAL" appraisal software by a la mode, inc.-1-800-ALAMODE