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Online Tools- Miami -Dade Cc... ;jfy Property Search Application... x File Edit View Favorites Tools Help l X EMConvert - VSelect l ' Web Slice Gallery iq 0 Page Address Owner Name Subdivision Name Folio Search: 111 Nw 1 St Property Informatioll Folio: 01,3135-087-01310 Sub -Division: WAGNERSQUARE Property Address 1455 NW 17 ST Miami, FL 33125-0000 1463 NW 17 ST 1475 NW 17 ST 1485 NW 17 ST V 1495 NW 17 ST CITY OF MIAMI CR7 DEPT OF PUBLIC FAGILrrI ES Mailing Address 444 SW 2 AVE MIAMI, FL 33130 Primary Zone 61 DD COMMERCIAL - NEIGHBORHOOD Primary Land Use 5080 VACANT GOVERNMENTAL : VACANT LAND - GOVERNMENTAL Beds l Baths I Half 111910 Floors 0 Living Units a Actual Area a Living Area 0 Adjusted Area 0 Lot Size 28,965 Sq..F4 Year Built D Suite A [j nO ZDORi 01-3135-087-0010 01-3135-087-0012 z is -holography w-, Map View - I Layers 6a w-, iS" 1 �-r I� 97-1 WPM IF Im Rrt - IFTa 1-1 owl 1V ['TY Miami -Dade Official Records - Print Document This Instrument was Prepared By and Record and Return To: David A. Messinger, Esq. Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. 150 West Flagler Street Suite 2200 Miami, Florida 33130 Property Appraiser Identification No: 01-3135-087-0010 SPECIAL WARRANTY DEED Page 1 of 4 C:FN 2112RI-368401-+ OR 2.k 28287 Pas 4161 - 4164; (4p RECORDED 06'/'26/2012 15:31%56 DEED DOC TAX 0.60 SURTAX 0.45 HARVEY RUVItit CLERK OF COURT MIAMI-DADE COUNTYr FLORIDA THiS SPECIAL WARRANTY DEED made this.Qs day of September, 2012 between DREW M. DILLWORTH, not individually, but solely as the Chapter 11 Bankruptcy Trustee for the Substantively Consolidated Bankruptcy Estates of the Debtors, WAGNER SQUARE, LLC, A Florida limited liability company and WAGNER SQUARE I, LLC, a Florida limited liability company under Case No. 12-20659-LMI, in the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division (collectively, the "Grantor") and CITY OF MIAMI, a municipal corporation of the State of Florida, whose mailing address is City of Miami c/o Department of Public Facilities, 444 SW 2nd Avenue, Miami, Florida 33130 (the "Grantee"). WITNESSETH: That Grantor, for and in consideration of the sum of TEN DOLLARS ($ 10.00) and other good and valuable consideration, to_Grantor in hand by Grantee, the receipt and sufficiency whereof is _ _ — __...... hereby acknowledged, does hereby grant, bargain, sell, alien, remise; transfer, release, convey and confirm unto Grantee and Grantee's successors, heirs and assigns the real property (the "Property") located in Miami -Dade County, Florida, and more particularly described in Exhibit "A" attached hereto and made a part hereof. SUBJECT TO: I. All easements, conditions, covenants, restrictions, reservations, limitations, agreements and other matters of record, provided that this instrument shall not reimpose same. 2, Real estate taxes for the year 2012 and all subsequent years. 3. Existing applicable governmental building and zoning ordinances and other governmental regulations. 4. Matters that would appear on a current and accurate survey of the Property. TOGETHER with all the tenements, hereditaments and appurtenances belonging or in any way appertaining to the Property, TO HAVE AND TO HOLD the same in fee simple forever. NOTE TO CLERK: This Deed evidences the re -conveyance of the subject property to the City of Miami, a municipal corporation of the State of Florida, without consideration and the subject property is unencumbered. Accordingly, minimum documentary stamps and surtax are owed hereon and are being paid in connection herewith. Book28287/Page4161 CFN#20120684017 Page 1 of 4 httDS://www2.miami-dadeclerk.com/OfficialRecords/PrintDocument.ast)x?OS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document Page 2 of 4 AND GRANTOR hereby covenants with Grantee that Grantor is lawfully seized of the Property in fee simple; that Grantor has good right and lawful authority to sell and convey the Property; and that Grantor does hereby specially warrant the title to the Property and will defend the same against the lawful claims of all persons claiming by, through or under Grantor, but against none other. The Property is being conveyed in accordance with the Order Granting Trustee Dillworth's Motion for Substantive Consolidation dated September 19, 2012, as to the Bankruptcy Estates of the Debtors, Wagner Square, LLC, a Florida limited liability company and Wagner Square I, LLC, a Florida limited liability company under Case No. 12-20659-LMI in the U,S. Bankruptcy Court for the Southern District of Florida, Miami Division. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] [SIGNATURE AND NOTARY BLOCK ON FOLLOWING PAGE] Book28287/Page4162 CFN#20120684017 Page 2 of 4 https://www2.miami-dadeclerk.com/OfficialRecords/PrintDocument. aspx?QS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document Page 3 of 4 IN WITNESS WHEREOF, Grantor has caused this Special Warranty Deed to be executed on the day and year first above written, WITNESSES: Witness Si nature JL( 7�-N-c nj �r'cz Print Name of Witness kAY4dess Signature i��.t-..� ->� • /fie ss�—�� PT -int Name of Witness STATE OF FLORIDA GRANTOR: DREW M. DILLWORTH, not individually, but solely as the Chapter 1 I Bankruptcy Trustee for the Substantively Consolidated Bankruptcy Estates of the Debtors, WAGNER SQUARE, LLC, A Florida limited liability company and WAGNER SQUARE I, LLC, a Florida limited liability company under Case No. 12-20659-LMI, in the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division ACKNOWLEDGMENT COUNTY OF MIAMi-RADE ) The foregoing instrument was acknowledged before me this �S' day of September, 2012, by DREW M. DILLWORTH, not individually, but solely as the Chapter i 1 Bankruptcy Trustee for the Substantively Consolidated Bankruptcy Estates of the Debtors, WAGNER SQUARE, LLC, A Florida limited liability company and WAGNER SQUARE I, LLC, a Florida limited liability company under Case No. 12-20659-LMI, in the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division. He is personally to me or presented a driver's license as identification and di not take an oath. Notary Stamp/Sealy Notary 1 ate of Florida Print or Stamp Name: Su.2.c4+1_ My Commission Expires: )&<I/L. I-- 4111P" 8 MIEPEREZ4. MY eeMMISS ON k EE 155831EXPIRES: Junua V 25, 2018 Bonded Thru Notary Pub k, NerwHtdre Book28287/Page4163 CFN#20120684017 Page 3 of 4 httl)s://www2.miami-dadeclerk.com/OfficialRecords/PrintDocument.as-ox?QS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document - Exhibit "A" Legal Description PARCELI- PHASEI Page 4 of 4 OR BK 28287 PG 4164 L...AST PAGE A portion of land located in the NW 1/4 of Section 35, Township 53 South, range 41 East, City of Miami, Miami -Dade County, Florida, more particularly described as follows: Begin at the Southwest corner of tract "A", WAGNER SQUARE, according to the plat thereof, as recorded in Plat Book 162, Page 66, of the Public Records of Miami - Dade County, Florida; thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23 feet; thence N00°10'33"W a distance of 65.79 feet to a point; thence N89°49'27"E a distance of 201.77 feet to a point; thence N00°10'33"W a distance of 96,77 feet to a point on the North line of said Tract "A"; thence N89157'46"W along and on the North line of said Tract "A" a distance of 259.25 feet to the NW corner of said tract "A"; thence S00°15'48"E along the West line of said Tract "A" and the East Right -of -Way of NW 15th Avenue, a distance of 163,33 feet to the Point of Beginning. Book28287/Page4164 CFN#20120084017 Page 4 of 4 https://www2.miami-dadeclerlc. com/OfficialRecords/PrintDocument.aspx?QS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document This Instrument was Prepared B Record and Return to: David A. Messinger, Esq. Stearns Weaver Miller Weissler Alhadeff& Sitterson, P.A. ISO West Flagler Street Suite 2200 Miami, Florida 33130 Property Appraiser Identification No: 01-3135-087-0012 SPECIAL WARRANTY DEED Page 1 of 5 I i!1{I{ hill Ilii{ IIIII !1111 Illi) (1111 Illi {! C:FN 2rI12t;O684-02 T OR 8k 28287 Pss 4184 - 4188; (5p! RECORDED 09/26/2012 15:34:24 DEED DDC TAX 0.60 SURTAX 0.45 HARVEY RUVIP1r CLERK OF COURT MIANI-DADS COUllTYr FLORIDA THIS SPECIAL WARRANTY DEED made this -�S day of September, 2012 between the WAGNER SQUARE III, LLC, a Florida limited liability company (the "Grantor"), whose mailing address is 11098 Biscayne Blvd., Suite 103, Miami, Florida 33161, and the CITY OF MIAMI, a municipal corporation of the State of Florida (the "Grantee"), whose mailing address is City of Miami c/o Department of Public Facilities, 444 SW 2nd Avenue, Miami, Florida 33130. WITNESSETH: That Grantor, for and in consideration of the sum of TEN DOLLARS ($ 10.00) and other good and valuable consideration, to Grantor in hand paid by Grantee, the receipt and sufficiency_whereof_i.s_. ___... hereby"acknowledged does hereby grant, bargain, sell, alien, remise, transfor, release, convey and confirm unto Grantee and Grantee's successors, heirs and assigns the real property (the "Property") located in Miami -Dade County, Florida, and more particularly described in Exhibit `°A" attached hereto and made a part hereof. SUBJECT TO: I. All easements, conditions, covenants, restrictions, reservations, limitations, agreements and other matters of record, provided that this instrument shall not reimpose same, 2. Real estate taxes for the year 2012 and all subsequent years. 3. Existing applicable governmental building and coning ordinances and other governmental regulations, 4. Matters that would appear on a current and accurate survey of the Property. TOGETHER with all the tenements, hereditaments and appurtenances belonging or in any way appertaining to the Property, TO HAVE AND TO HOLD the same in fee simple forever. NOTE TO CLERK: This Deed evidences the re -conveyance of the subject property to the City of Miami, a municipal corporation of the State of Florida, without consideration and the subject property is unencumbered. Accordingly, minimum documentary stamps and surtax are owed hereon and are being paid in connection herewith. Book28287/Page4184 CFN#20120684027 Page 1 of 5 ht-t„c• //www2.niiami-d, declerl<.com/OfficialRecords/PrintDocument.aSDX?OS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document Page 2 of 5 AND GRANTOR hereby covenanig,--With Grantee that Grantor is lawfully seized of the Property in fee simple; that Grantor has good right and lawful authority to sell and convey the Property; and that Grantor does hereby specially warrant the title to the Property and will defend the same against the lawful claims of all persons claiming by, through or under Grantor, but against none other. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] [SIGNATURE AND NOTARY BLOCKS ON FOLLOWING PAGES] Book28287/Page4185 CFN#20120684027 Page 2 of 5 https://www2.miami-dadeclerk.com/OfficialRecordsIPrintDocument.aspx?QS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document Page 3 of 5 IN WITNESS WHEREOF, Grantor has caused this Special Warranty Deed to be executed on the day and year first above written. WITNESSES: Witness Signature — Print Natne of Witness A�- 046 Signature`` _ oJ' v�h Ir•; h Print Name df Witness GRANTOR: WAGNER SQUARE III, LLC, a Florida limited liability company By: — Debra Sin e Kolsky Authorized natory (CORPORATE SEAL) __. STATE OF FLORIDA / ) COUNTY OF 91"V J CaC ) The foregoing instrument acknowledged before me this (/ day of September, 2012, by Debra Sinkie Kolsky as Authorized Signatory of Wagner Square 111, LLC, a Florida limited liability company, on behalf of the limited liability company. She is personally known to me or presented a _ driver's license as identification. Notary Stamp/Seal: Notary Nbfic, State ofFlor d Print or Stamp Name:y My Commission Expires:,�.7�a2L$ Stals of Florida ';,%, necker RRi n EE10407720!5 Book28287/Page4186 CFN#20120684027 Page 3 of 5 haps://www2,miami-dadeclerk.coin/OfficialRecords/PrintDocuinent. aspx?QS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document WITNESSES: rC ess Sign ure h" L6- 1 -A -MV/ Print Name of Witness Page 4 of 5 GRANTOR: WAGNER SQUARE III, LLC, a Florida limited liability compapf ) Joey Witness S gnature M'G' (C F,r- Print Name of Witness Authorized Signatory (CORPORATE SEAL) ACKNOWLEDGMENT STATE OF FLORIDA COUNTY OF',.. The foregoing instrument was acknowledged before me this Edelsberg, as Authorized Signatory of Wagner Square Il Flor behalf of the limited liability company. He i.' nallf _ driver'sse as nt ' September, 2012, by Joey ed liability company, on 'p gyne or presented a oath. Notary Stamp/Seal: �7 N ti u lie, S o' lorda int or Stamp Name:__. o � 'Av.PV4 UMM,QUINTERO My Commission Expires:' l ^ I_ `? �* MY COMMISSION N EE 111544 EXPIRES: JON 12,2015 ',0'F7' ov F�� ' ThN 9udgM NG4 Y Str 0$ Book28287/Page4187 CFN#20120884027 Page 4 of 5 https://www2.miami-dadeclerlc:com/OfficialRecords/PrintDocument.aspx?QS=YaoUfOz... 10/13/2016 Miami -Dade Official Records - Print Document Exhibit i°A" Legal Description PARCEL II - PHASE III Page 5 of 5 OR OK 2828'7 PG 4188 L.AST PAGE A portion of land located in the NW 1/4 of Section 35, Township 53 South, Range 41 East, City of Miami, Miami -Dade County, Florida, more particularly described as follows: Commence at the southwest corner of Tract "A", WAGNER SQUARE, according to the plat thereof, as recorded in Plat Book 162, Page 66, of the Public Records of Miami - Dade County, Florida; thence 889°59'04"E along and on the South line of said Tract "A" a distance of 57.23 feet to the Point of Beginning; thence N00010'33"W a distance of 65.79 fee to a point; thence N89149'27"E a distance of 201.77 feet to a point; thence S00°10'33"E a distance of 66.46 feet; thence N89°59'04"W along and on the South line of said Tract "A" and its extension thereof a distance of 201.77 feet to the Point of Beginning. 8238/140 v3 37966.0013 it• i �.N"� ii � ♦iia/ https://www2.miami-dadeclerk. com/Offi cialRecords/PrintDocument. aspx?Q S=YaoUfOz. Page 5 of 5 10/13/2016 Wagner Square T6-8-0 Zoned Vacant Site 1455 NW 17 Street Miami, Miami -Dade County, Florida 33125 Prepared for: Jacqueline Lorenzo Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Appraisal Report — 16-0300 Armada Appraisal & p4 Consulting Company Armada Appraisal & Consulting Company PO Box 1247 South Miami , FL 33243 Telephone: 305-266-3930 Fax: 305-266-3935 December 19, 2016 Jacqueline Lorenzo Property Management Specialist Department of Real Estate & Asset Management City of Miami 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 RE: Appraisal Report of Wagner Square, T6-8-0 Zoned Vacant Site Located at 1455 NW 17 Street, Miami, Miami -Dade County, Florida, 33125. Dear Ms. Lorenzo: As requested, the above referenced property has been examined for factors deemed pertinent in arriving at market value and market rent, at the subject's highest and best use conclusion. The purpose of this appraisal is to estimate the fee simple, "as is" market value of the property, and arrive at an estimate of market rent, under its highest and best use; the purpose of the appraisal. In order to carry out this assignment, a market study of real estate activity in the vicinity of the subject property has been conducted. This investigation included the collection and analysis of sales, offerings, and information pertaining to other development that has occurred in the area in the recent past. The sources of this data included county deed records, our own data bank, other real estate brokers, appraisers, and knowledgeable individuals active in the area. Based upon the investigation, the following fee simple market value has been concluded, as well as the market rent for the subject property based on an extensive analysis of the subject property characteristics contained herein, at its highest and best use, as follows: Market Value of Subject Land MARKET VALUE CONCLUSIONS Valuation Methodolo As Is Land Value $4,020,000 Reconciled Value $4,020,000 Market Value of Subject Land and Market Rent ARKET CONCLUSIONS on Methodology As Is of Sub'ect Land E $4,020,000 pitalization Rate 6.00% arket Rent $241,200 Estimate Summary Market Value and Market Rent as of Effective Day ESTIMATE SUMMARY Effective Date Market Value Market Rent December 19, 2016 $4,020,000 $241,200 The opinions of value stated above, as well as every other element of this appraisal, are qualified in their entirety by the Contingent and Limiting Conditions set forth in another part of this report which is an integral part of the appraisal. As part of the Contingent and Limiting Conditions, the value conclusion is subject to completion of an Americans with Disabilities Act (ADA) compliance survey of the property. It is possible that a compliance survey with a detailed analysis of the provisions associated with ADA could reveal that the property is not in compliance with one or more stipulations. If so, this fact could have an effect upon the value of the property. Since I have no direct evidence relating to the issue, I did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Exposure Time - It is reasonable to conclude that for the subject property to sell at a price equal to our market value estimate on the appraisal date, it would have been exposed on the market for a period of 9 to 12 months. The appraiser(s) certify and agree that: 1. The appraiser(s) have no present or contemplated interest in the property appraised and that neither the employment to make this appraisal nor the compensation for it is contingent upon the appraised value of the property. 2. The appraiser(s) 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. 3. He has 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 acceptance of this assignment. 4. Albert J. Armada, MAI, SRA has personally inspected the subject property. 5. According to the best of my knowledge and belief, all statements and information in this report are true and correct; and the appraiser(s) have not knowingly withheld any information. 6. 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. 7. The analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). 8. 1 certify that to the best of my knowledge and belief, 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 the Standards of Professional Appraisal Practice of the Appraisal Institute. I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Albert J. Armada has completed the requirements of the continuing education program of the Appraisal Institute. 10. No one provided significant professional assistance to the person signing this report Albert J. Armada, MAI, SRA has prepared all conclusions and opinions concerning the real estate that are set forth in the appraisal. 11. My compensation for completing this assignment was not contingent upon the development of reporting of a predetermined value or direction of value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or occurrence of a subsequent event directly related to the intended use of this appraisal. 12. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 13. Based on my experience, it is my opinion that I meet the qualifications to provide the following opinion of the subject property's value. 14. 1 have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. No changes of any item of the appraisal report shall be made by anyone other than the appraiser(s), and the appraiser(s) shall have no responsibility for any such unauthorized changes. This letter of transmittal and the pages that follow constitute my report, including the data and analyses utilized in forming an opinion of value. Should you have any questions concerning this report, please do not hesitate to call my office. Respectfully submitted, Albert J. Armada, MIB - MAI, SRA State Certified General Real Estate Appraiser No. RZ 397 CONTINGENT AND LIMITING CONDITIONS The certification of the appraisers appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraisers in the report. 1. The appraisers assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor do the appraisers render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 2. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraisers have made no survey of the property. 3. The appraisers are not required to give testimony or appear in court because of having made this appraisal with reference to the property in question unless arrangements have been made therefore. 4. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 5. The appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The appraisers assume no responsibility for such conditions or for engineering which might be required to discover the factors. 6. Information, estimates, and opinions furnished to the appraisers and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraisers can be assumed by the appraisers. 7. Disclosure of the contents of this appraisal is governed by the by-laws and regulations of the professional appraisal organizations with which the appraisers are affiliated. 8. Neither all nor any part of the contents of this report or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organizations, or the firm with which the appraisers are connected) shall be used for any purposes by anyone but the client or his assigns without the previous written consent of the appraisers, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media without the written consent and approval of the appraisers. 9. On all appraisals involving proposed construction, the appraisal report and value conclusions are contingent upon completion of the proposed improvements, if any, in accordance with the plans and specifications. 10. Unless otherwise stated in this report, the existence of hazardous material, including, but not limited to, asbestos, polychlorinated biphenyls, petroleum leakage or agricultural chemicals, which may or may not be present on the property, were not called to the attention of, nor were they observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances as listed above, or substances such as asbestos, urea -formaldehyde foam insulation, chemical or toxic waste, or other potentially hazardous materials may affect the value of the property. The value opinion is predicted on the assumption that there is no such material on or in the property, or on or in adjoining properties that would cause a loss in value to the property being appraised. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required discovering them. The client is urged to retain an expert in this field, if desired. In the event that a conclusion is reached whereby corrective action will be required to clean up any environmental contamination, the appraisers will at that time retain the right to modify and/or change the value conclusions presented herein. 11. The values as concluded herein are entirely contingent upon the subject property not being within or subject to a federally designated potential Endangered Species area as defined by the U.S. Fish and Wildlife Service, which, as a result might otherwise limit, restrict, and/or prevent development of the subject to its highest and best use. 12. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 13. Responsible ownership and competent property management are assumed. 14. All engineering information, if any, is assumed to be correct. 15. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 16. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report. 17. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value opinion contained in this report is based. 18. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 19. The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to change as a result of variations in the market. 20. The construction and condition of the improvements mentioned in the body of this report are based on observations. No engineering study has been provided which would assist in the discovery of any latent defects. No certification as to any of the physical aspects could be given unless a proper engineering study was made. 21. Possession of this report or a copy thereof does not carry with it the right of publication. It may not be used for any purpose by anyone other than the addressee or the Appraisal Institute without the previous written consent of the appraisers. TABLE OF CONTENTS Letter of Transmittal Title Page Paqe INTRODUCTION.............................................................................................................................1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS..............................................................1 EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT.............................................3 PURPOSE OF THE APPRAISAL.................................................................................................3 INTENDED USE OF THE APPRAISAL........................................................................................3 MARKET VALUE DEFINED.........................................................................................................3 MARKET RENT DEFINED...........................................................................................................4 PROPERTY INTERESTS APPRAISED.......................................................................................4 PROPERTY IDENTIFICATION....................................................................................................4 PROPERTYHISTORY................................................................................................................5 EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS................................5 SCOPE OF THE APPRAISAL......................................................................................................6 FACTUAL DESCRIPTIONS............................................................................................................8 REGIONAL ANALYIS - ECONOMIC OVERVIEW AND OUTLOOK.......................................................8 MARKET AREA DESCRIPTION AND ANALYSIS......................................................................16 SITEANALYSIS........................................................................................................................23 ZONING..................................................................................................................................... 25 AERIALPHOTO........................................................................................................................29 SITEMAP..................................................................................................................................30 FLOODMAP..............................................................................................................................31 REAL ESTATE TAX INFORMATION.........................................................................................32 IMPROVEMENTS DESCRIPTION.............................................................................................32 ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER.......................................................33 HIGHEST AND BEST USE ANALYSIS......................................................................................33 SALES COMPARISON APPROACH — LAND VALUE OPINION......................................................35 INCOME APPROACH - DIRECT CAPITALIZATION - MARKET RENT...............................................46 RECONCILIATION AND FINAL VALUE ESTIMATE..................................................................57 ADDENDA..................................................................................................................................... 58 SUBJECTPHOTOGRAPHS......................................................................................................58 ENGAGEMENT LETTER...........................................................................................................60 APPRAISER'S QUALIFICATIONS.............................................................................................61 INTRODUCTION SUMMARY OF SALIENT FACTS AND CONCLUSIONS Client: City of Miami Property Owner: City of Miami Intended User: City of Miami Property Address: Wagner Square - 1455 NW 17 Street, Miami, Miami - Dade County, Florida 33125 Property Type: Inspection Date: Effective Date of Appraisal: Report Date: Property Rights Appraised: Classification of Report and Appraisal Land Size: Land; commercial November 18, 2016 November 18, 2016 December 19, 2016 Fee simple estate as to land value; leased fee as to market rent. Appraisal Report 0.971 Acres Usable Land: 42,309 SF Building Size: N/A Highest and Best Use as Vacant: Mixed Use Mid to High Rise Multifamily/Retail Highest and Best Use as Improved: N/A Market Value of Subject Land and Market Rent ARKET CONCLUSIONS on Methodolo As Is of Subject Land E $4,020,000 pitalization Rate 6.00% arket Rent $241,200 Estimate Summary Market Value and Market Rent as of Effective Day ESTIMATE SUMMARY Effective Date Market Value Market Rent December 19, 2016 $4,020,000 $241,200 11Page For the value of the land to materialize from the consummation of the sale of the subject property (hypothetical) is nine to twelve months. For the market rent to materialize, the exposure time is dependent upon execution of a long term lease for the express purpose of developing a multifamily/mixed use building. 2 1 P a g e EFFECTIVE DATE OF THE APPRAISAL/DATE OF THE REPORT INSPECTION DATE: November 18, 2016 EFFECTIVE DATE: November 18, 2016 DATE OF THE REPORT: December 19, 2016 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to provide a market value opinion of the Fee simple estate of the subject property. INTENDED USE OF THE APPRAISAL The intended use of this appraisal is to assist the City of Miami in making a business decision regarding the subject property. MARKET VALUE DEFINED Market value, as used in this appraisal report, is defined by the Appraisal Foundation, as: 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, 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 appraisal has been completed in accordance with (a) all Federal banking regulations (primarily OCC Regulation 12 CFR Part 34, FDIC Regulation 12 CFR Part 323 and Title XI of the Financial Institution Reform, Recovery Enforcement Act of 1989 ("FIRREA"), and (b) the Uniform Standards of Professional Appraisal Practices and Conduct ("USPAP") as promulgated by the Appraisal Standards Board of the Appraisal Foundation. 3 1 P a g e MARKET RENT DEFINED "Market Rent" according to the 14th Edition of The Appraisal of Real Estate, a publication sponsored by the Appraisal Institute, is defined as: "Market rent is the rental income a property would probably command in the open market. It is indicated by the current rents that are either paid or asked for comparable space with the same division of expenses as of the date of the appraisal. Market rent is sometimes referred to as economic rent." And further: "The amount of data needed to support a market rent estimate for a subject property depends on the complexity of the appraisal problem, the availability of directly comparable rents, and the extent to which the pattern of adjusted rent indications derived from the comparables differs from the income pattern of the subject property. When sufficient, closely comparable rental data is not available, the appraiser should include other data, preferably data that can be adjusted. If an appraiser uses proper judgment in making adjustments, a reasonably clear pattern of market rents should emerge." PROPERTY INTERESTS APPRAISED Fee simple as to land value; leased fee as to market rent. PROPERTY IDENTIFICATION Folio Numbers: 01-3135-087-0010/0012 Legal Description: (0010) - WAGNER SQUARE, PORT OF TR A DESC BEG SW COR OF TR A S 89 DEG E 57.23FT N 00 DEG W 65.79FT N 89 DEG E 201.77FT N 00 DEG W 96.77FT N 89 DEG W 259.25FT S 00 DEG E 163.33FT TO POB, according to plat thereof as recorded in Plat Book 162, Page 66, of the public records of Miami Dade County. (0012) - WAGNER SQUARE, PORT TR A DESC BEG 57.23FTE OF SW COR TR A N 00 DEG W 65.79FT N 89 DEG E 201.77FT S 00 DEG E 66.46FT N 89 DEG W 201.77FT TO POB, according to plat thereof as recorded in Plat Book 162, Page 66, of the public records of Miami Dade County. This legal description was obtained from the Miami Dade County's Property Appraiser's Office, Property Cards for the above referenced folio numbers. No survey was provided for review for the subject property. 4 1 P a g e SALES HISTORY No transfers of title are known to have occurred over the past three years. Subject property is currently not listed for sale. EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS Extraordinary Assumption: This report does not rely on any extraordinary assumption. For clarification, Extraordinary Assumption is defined as "An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP, 2002 ed.) Hypothetical Condition This report does not rely on any hypothetical condition. Hypothetical conditions are contrary to what exists, but the conditions are asserted by the appraiser for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions.(USPAP, 2002 ed.) 5 1 P a g e SCOPE OF THE APPRAISAL The appraisal assignment is to estimate the subject property's Fair Market Value and Fair Market Rental Value at highest and best use. The appraisal development and reporting process (the appraisal assignment) was to develop an opinion of the market value of the real property as of the inspection date. In addition the assignment required development of an opinion of market rent for the subject property, at its highest and best use. In preparing this appraisal, the appraiser researched and analyzed data in defining the subject product -type, competitive product types, and related supply and demand trends from the subject's immediate market area, as well as the broader geographic area of the city of Miami. Probable buyers or users of the subject property -type were identified. Locational and physical characteristics and units of measurements and comparison were identified, defined and tested. In preparing this appraisal, information was gathered, confirmed, and analyzed from the subject's market area on sales of vacant land sales in an analysis of the highest and best use of the subject property. A cursory, exterior physical inspection of the subject property was performed. The body of vacant sales was gathered, confirmed, and analyzed whenever possible. The most applicable sales were identified and confirmed with a party to the transaction, when possible; if confirmation was not possible before the report date, public records were reviewed and relied upon. To develop the opinion of value, the appraisers performed an appraisal process, as defined by the Uniform Standards of Professional Appraisal Practice. This report is an appraisal report as defined under the Standards Section 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). This Appraisal Report is a recapitulation of the appraisers' data, analyses, and conclusions; some supporting documentation is retained in the appraisers' file. The report complies with the Financial Institutions Reform, Recovery and Enforcement Act of 1989. Albert J. Armada has appraised numerous similar properties, and is in compliance with the competency provisions of the Uniform Standards of Professional Appraisal Practice (USPAP). As a part of the valuation process, the appraiser inspected the subject and surrounding properties, the market area and the comparables. The highest and best uses were analyzed and determined for the subject both as vacant and as improved. A search for comparable land sales was made based upon, but not limited to the following search criteria: 1) Similarly located land within the general area. 2) Date of sale within the past several years and 3) Similar potential use. The most comparable sales were then selected from those transactions which met these criteria. The income and cost approaches were not used for this valuation since they are not applicable for the product type. The Sales Comparison Approach relies heavily upon the principle of substitution. Recent sales of similar properties are gathered, and a meaningful unit of comparison is developed. Then, a comparative analysis between the sales and the subject involves consideration for differences in location, time, terms of sale, and physical characteristics. The reliability of the Sales Comparison 6 1 P a g e Approach depends, to a large extent, upon the degree of comparability between the sales and the subject. The major strengths of this approach include the reflection of actual market transactions and the fact that common denominators are fairly easily determined. The potential weaknesses of this approach arise from the fact that the data is historical and ideal comparables are usually very difficult to obtain. The Income Capitalization Approach to value is predicated upon the relationship between income and value. Although all of the appraisal principles are involved in this approach, the principle of anticipation is particularly applicable. This appraisal technique converts anticipated annual net income into an indication of value. This process is called capitalization, and it involves multiplying the annual net income by a factor or dividing it by a rate that weighs such considerations as risk, time, return on investment, and return of investment. The appropriateness of this rate or factor is critical, and there are a number of techniques by which it may be developed. The rate (or factor) can be applied when using the direct capitalization approach to arrive at market rent. The basic formula for direct capitalization which applies in estimating market rent for the subject property is — Income (Rent) = Rate X Value. 7 1 P a g e FACTUAL DESCRIPTIONS Reaional Analvsis - Economic Overview and Outlook FLORIDA - GEOGRAPHY The most southeastern state in the union is Florida; it juts out as a peninsula thus becoming a noticeable appendage to the United States mainland. Florida sits on the Floridian plateau, a platform that is 500 miles long and 250 to 400 miles wide. The Floridian Plateau has a core of metamorphic rocks buried under 4,000 feet of sedimentary rocks. It separates the deep waters of the Atlantic Ocean from the deep waters of the Gulf of Mexico. The Floridian Plateau has existed for millions of years where at times it has been either dry land or covered by shallow waters. This platform is distinguished as one of the most stable areas in the world. Therefore Florida is almost void of seismic activity. Florida's state boundaries are Georgia, directly to the north, and Alabama, to the northeast. The Atlantic Ocean and the Gulf of Mexico serve as natural boundaries to the east and west respectively. The state of Florida covers an area of 58,677 square miles of which 4,424 are water. Right in the middle of the state is Lake Okeechobee the largest freshwater lake located entirely in one state in forty-eight adjoining states. Recently the State Bureau of Geology discovered land elevated over 345 feet in Walton County thus making this the highest known elevation in the state. Florida is located in the Tropic of Cancer and is thus blessed with a great climate. Because no part of Florida is located more than 70 miles from salt water it benefits from the ocean breeze. One of these breezes is the Trade Winds which is swept from the warm Atlantic ocean. The Gulfstream's water is also a prevailing factor in Florida's climate. The Gulfstream can best be described as an underwater river that runs from the island of Cuba through the southeastern part of the United States. Florida's weather, long known as a haven for northerners in those cold winter months, is seldom out of the seventy to eighty degree range. The warmest months of July and August sometimes make southern Florida reach the ninety degree mark. Because of the weather, most Florida homes are equipped with air-conditioning to alleviate the hotter, humid days. Rain is plentiful in this peninsular state. The rain falls mainly in a four month period from June through September. These months are referred to as the rainy season. During these months rain can fall at any time from a previously clear sky. Even though at times days may start cloudy, it is seldom that Florida has a day without sunny skies. Because of the annual abundance of sunny days, Florida is known as the "Sunshine State". Unfortunately Florida is susceptible to some of nature's destructive powers. Florida has sometimes fallen prey to tornadoes tropical storms. The latter sometimes reaches hurricane proportion. Although warning of upcoming hurricanes is given with sufficient time to protect human life, it is 8 1 P a g e sometimes impossible to make structures impervious to the high winds. The last major storm to hit Florida was Hurricane Andrew. Because of the damaged caused by its nearly 200 mile an hour winds, building codes were made stricter for family dwellings. Florida's topography is uncomplicated. It is mostly a flat state with few variations. For the most part Florida is all coastal land. It is difficult to ignore the ocean's influence even in the most inland parts of the state. The many lakes and inlets make the state an ideal water sport state. In describing Florida's characteristics one cannot ignore its rich marine resources. The coral reefs that can be seen just minutes off the coast are considered natural wonders unparalleled. The estuaries that occur when salt water and fresh water meet thus forming a habitat for many creatures are magnificent. Florida is also home for various species of bird and plant life that are indigenous to this state. If there is truly a state that is nature friendly, it is Florida. SOUTHEAST FLORIDA Southeast Florida can be divided into two district topographical areas: (1) the Atlantic coastal ridge, and (2) the Everglades. The Atlantic coastal ridge is where Florida's major cities are situated. These cities include Ft. Lauderdale, West Palm Beach and, its best known city Miami. West of these major cities are bedroom communities, some of which are incorporated, such as Coral Spring, Weston and Pembroke Pines in Broward County, and Doral, Hialeah, and Hialeah Gardens, as well as unincorporated areas such as Kendall, in Miami -Dade County. Further west of these areas, in both Broward and Miami -Dade, is the Everglades. The Everglades which is now considered a national park has been the focus of much development in the past. A considerable amount of Florida's dry -land has been taken away from the swampy Everglades region. The Everglades has been eroding through many factors but its recession is predominantly due to human intervention. It has been known, only recently, that the depletion of this area may turn out to be very harmful to Florida's future. The Everglade's conservation is being very closely monitored by scientist and politicians alike. Currently great strides are being made to restore The Everglades. There are majors programs under way to acquired huge swabs of land, as well as specific engineering projects to increase water flows. MIAMI-DADE — (Geography — Climate) Miami Dade County is physically the largest county in the state of Florida. It is situated in the southeastern -most corner of the state. Its boundaries hold 1,955 square miles of land, and are bordered to the east by the Atlantic Ocean, to the west by Florida Everglades, to the north by Broward County and Monroe County to the south. Miami Dade County has 84 miles of Atlantic coastline, sixty- seven square miles of inland water areas, and nearly 633 thousand acres of protected national, state, and local community parks. Miami Dade County has a subtropical climate, with an average temperature of seventy-five degrees, about 60 inches of rainfall annually, relative humidity ranging from 80% in the morning to 60% in the early afternoon, and annual sunshine probability of 68%. 9 1 P a g e OVERVIEW - (Political — Social — Economic) Miami -Dade County consists of 33 municipalities and a vast unincorporated area. Each municipality has its own government and provides city services, such as police and zoning protection. The three largest cites in Miami -Dade County are Miami (365,204), Hialeah (211,201) and Miami Beach (94,012). The county's economy has become increasingly more diversified. The Miami -Dade County economy has a gross county product exceeding $80 billion. A traditional major economic sector driving the local economy is the tourism industry. Another major sector of the area's economic vitality is closely linked to Latin America and the Caribbean Basin. It is estimated that over 30% of the labor force in the Miami Dade County Area is directly involved with international trade and commerce. Miami -Dade County is the Business Center of the Americas, attracting businesses worldwide that choose to open their Latin American headquarters in South Florida. There are over 1,350 multinational corporations established in South Florida. Miami Dade County has a disproportional number of Edge Act Banks when compared to the rest of the country. Florida's increasing trade with Latin America and Europe helps to account for the large number of Edge Banks in Dade County. Wholesale and retail trade and services is also one of Miami-Dade's largest business sectors. Manufacturing is strongly promoted and is another important component of the area's economy. As Florida's number one manufacturing county, both in employment and number of establishments, Miami Dade County is home to manufacturers producing a wide array of products. The greatest concentration is in the apparel, printing and publishing and medical industries. More than 1.1 million people make up Miami -Dade County's labor force. The employment growth sectors in Miami -Dade County include professional and business services, health services, wholesale trade, and construction. In addition to the tourism industry, another fact that accounts for the local employment picture is the continued expansion of the Latin American economies is foremost. This has led to record levels of international trade, fueling the expansion of Miami-Dade's wholesale trade, transportation and financial activities. Also, Miami is succeeding in becoming a premiere global leisure travel destination and as the music and entertainment capital of Latin America. The Miami destination has enjoyed moderate growth with strong increases in room rates and occupancy levels at hotels and motels. This factor stimulates retail trade services and other consumer related activities. 101Page Cost of living The cost of living in Miami -Dade County is below that of many other major cities such as Manhattan, Boston, Los Angeles, Washington, Philadelphia, and San Jose. Miami's sales tax is below the national average and there is no state income tax and no local income tax. Labor and Education Miami -Dade County's workforce - its size, diversity and range of skills - is the heartbeat of its economy. There are several resources for workforce training. Miami -Dade County Public Schools offer customized training for businesses at minimal cost. Miami - Dade County has the fourth largest public school district in the United States, with more than 364,000 students. More than 80% of graduating seniors continue their education, and approximately 119,656 residents pursue vocational and adult education studies. Miami -Dade College (MDC) offers on-site training for businesses in the following areas: management, supervision, computers, foreign trade, professional development and corporate training, vocational and occupational training certificate programs and Associate degree programs. Miami -Dade County has many top private and public universities and the nation's largest community college. Approximately 113,509 college students are studying at institutions of higher learning. Tourism/Visitor Industry More than 10 million Europeans, Latin Americans, North Americans, and Asians flock to Miami -Dade to savor the region's 15 miles of pristine beaches, and vibrant nightlife. The visitor industry is the county's number one moneymaker, employing approximately 14 percent of Miami -Dade County's workforce, and injecting $13.5 billion into the local economy each year. Countering the nationwide trend, Miami-Dade's tourist figures and dollars continue to rise. Demographic Data In June 2003 the U.S. Office of Management and Budget (OMB) announced a number of new metropolitan statistical areas (MSA) and divisions. The new South Florida metropolitan statistical area includes Broward, Miami -Dade and Palm Beach counties. The name of this new MSA is Miami - Fort Lauderdale -Miami Beach. The new Miami -Fort Lauderdale -Miami Beach MSA has over 5.2 million people. The Miami -Fort Lauderdale -Miami Beach MSA population ranks as the fifth largest MSA in the United States, trailing only Los Angeles, New York, Chicago and Philadelphia. 111Page Miami -Dade County is a microcosm of America with a large diversity of languages, accents, foods and cultures. Miami -Dade has the highest percentage of Hispanics of any large county in the nation, outstripping even Bexar County, Texas - home to San Antonio - which took the title a decade ago. Immigrants, mostly racial and ethnic minorities, have streamed into Miami -Dade over the past 40 years. As of 2010 the total population was reported to be 2,496,435, a growth of nearly 11 % since 2000, or slightly over 1% per year. The County's growth is mostly because of immigration. That makes Miami -Dade the second-largest county on the East Coast. The population of this culturally diverse community is 21 percent non -Hispanic white, 21.6 percent black, and 57 percent Hispanic. While the Hispanic culture in Miami -Dade has traditionally been of Cuban background, significant changes have occurred. While Cubans remain by far the largest group, they are increasingly living alongside other Latin Americans. Since 1990, in Miami -Dade, immigrants from Paraguay increased 161 percent; Venezuelans were up by 119 percent; and Mexicans 65 percent. By comparison, Miami-Dade's Cuban population grew 15 percent. All told, the number of non -Cuban Hispanics in Miami -Dade is now roughly equal to the number of those with Cuban ancestry. Changes have affected South Florida's coastal retirement communities, turning them into family cities, as the median age dropped and the number of families with children rose sharply. The push to the suburbs continues as once isolated edges of Miami -Dade become sprawling suburbs in areas such as Aventura in the northeast and West Kendall and Doral to the West. International Trade Miami -Dade stands at the intersection of the Americas and the world, and is the meeting ground for more than 1,000 multinational corporations including Apple, Oracle Corp., IBM, Clorox, Burger King and Porsche. Miami-Dade's enviable proximity to Latin America and the Caribbean has made it the uncontested center of international trade with those pivotal regions. High percentages of all U.S. trade with Central America, the Caribbean and South America flowed through the Miami Customs District. The Miami Customs District is made up of all Florida seaports and airports south of Tampa. Miami International Airport, the Port of Miami and the city's highways and railways make up the infrastructure that feeds the region's thriving international trade. The top exports flowing out of the Miami Customs District were electrical and electronic machinery and equipment, aircraft parts and medical equipment, bound for Latin American or Caribbean countries. Top imports include accessories and apparel. Leisure Miami -Dade is one of the most multiethnic and multicultural areas in the world, bringing with it the music of the many languages that are spoken here. This is a melting pot in the truest, most wonderful sense of the word - no matter where you come from, you will feel not just accepted, but embraced. 121 Page Leisure opportunities such as year-round sports, entertainment, cultural activities, and shopping are often mentioned as key reasons for being based here. The possibilities are endless — sunning on the white sands along the coast; an airboat ride through the Everglades; taking the kids biking at a waterfront park in Coconut Grove; visiting galleries in Coral Gables or Miami Beach; hitting those unbelievably chic stores in Bal Harbour; a romantic dinner for two; or golfing and fishing. With an average annual temperature of 75 degrees (23 degrees Celsius), a low cost of living, a diverse and welcoming population, wonderful neighborhoods, excellent schools, an endless array of leisure and cultural activities, and easy access to and from Latin America and the Caribbean, it is no surprise that so many call Miami -Dade home. Transportation Miami -Dade County has a comprehensive transportation network, designed to meet the needs of residents, travelers and area businesses. A public mass transportation system, known as the Metrorail is a 20.5 mile elevated rapid transit system. Presently, and nearing completion, a new leg to the Metrorail system is under construction. The Metrorail Extension Project is a 2.4 mile extension that will run from the exiting Earlington Heights station to the Miami Intermodal Center (MIC). At a cost of $506 million, this project will provide connections between the Miami International Airport and rapid transit. The Metromover is a free and convenient way to get around downtown Miami -Dade County. Riding on rubber tires, the automated trains cover a 4.4 mile loop around downtown Miami, the Brickell financial district and Biscayne Bay. Passengers are treated to a scenic view from the elevated height of the single car train as it winds past the business districts. The Metromover connects with the Metrorail at two stations, taking passengers on a 21.5 mile aboveground route northwest to Hialeah and south through Coconout Grove and Coral Gables to Kendall. The extensive Metrobus network connects all corners of the County. Amtrak trains run out of Miami, while the 65 mile Tri -Rail connects Miami International Airport to Hollywood, Fort Lauderdale, Boca Raton and West Palm Beach. With the third highest international passenger traffic in the United States, Miami International Airport is commonly known as the "Hub of the Americas," serving as a vital gateway between the United States and Latin America. More than 100 airlines fly passengers each year. The bustling airport is in the process of billions of dollars in expansion programs to accommodate more passengers. Massive cruise ships leisurely make their way out to the sea from Florida's largest port, the Port of Miami, which saw 3.3 million passengers last year. Approximately 8 million tons of cargo passes through the busy port each year, and a five-year, $171 million capital improvement program has resulted in the renovation of existing structures and facilities and the construction of new ones. 131Page Summary and Conclusion Over the last four decades, Miami Dade County's growth has been explosive in comparison with the nation as a whole. With time the area has matured, its economy has diversified and gained importance as an international trade and finance center. This diversification and increased independence from tourism is a trend which can be expected to continue in the long term. The national economy as of late experienced an intense and widely visibly recession. Recovery began slowly and over time. The residential real estate market suffered significant declines in the volume of transactions and in many in prices (values). The commercial real estate markets also experienced a similar slow down in volume and in more isolated cases declines in prices (values) — albeit at a slower pace than residential product types. The slowdown, correction and reversion in the real estate markets were widespread, coupled with the credit crunch. This is was due to the financial credit markets exhibiting a significant decrease in the amount of capital available for real estate transaction both in the residential and commercial sectors. In particular Miami Dade County experienced a significant correction in the real estate market for all product types — but especially for the housing sectors — generally considered more acute than in most parts of the country. Miami was at one point reported to be the most oversupplied housing market in the nation, by the National Association of Realtors; most of the vacant inventory consisted of condominiums. Miami was also reported to suffer from one of the highest foreclosure rates in the nation. Miami and Miami Dade County, it must be noted are very resilient. Before the great recession, the area experience incredible changes, both natural and man-made, but it still continued to thrive. Major employers in the area such as Eastern Airlines and Pan Am have ceased to exist, yet Miami and Miami Dade County maintained relative strength. Hurricanes have taken their toll in the past, and yet the area bounces back. It is widely recognized that Miami and Miami Dade, ultimately fared better than most national economic/populations hubs as a result of its ties to the Caribbean and South America. The area will likely continue to benefit from international trade and tourism. Also, the sustained population growth over the last four decades can only continue to force economic growth. Today all real estate product types have begun to illustrate increased strengths. Property values for commercial income producing properties are stable to increasing, with the housing market currently experiencing an ever increasing resurgence. The broad strength is palpable in most markets, defined by property types and geographic areas, with continued reasonable gains into the future expected. Property values for commercial properties first showed signs of movement towards stabilization commencing in 2012. Now with increased demand, pricing (value) is in the increase. Commercial rental rates for all product types have also increased but they have been followed with mixed signs on vacancy levels. 141Page Given the economic, social, governmental, environmental and locational influences at play, Miami and Miami Dade County are poised to benefit from steady and continued strength — albeit somewhat more tempered. The long term economic future of Miami Dade County, and most communities, remains relatively strong. A growing population base, an excellent climate, a constantly diversifying economic base, and an extensive, expanding and improving transportation system all contribute to the desirability of the area. Miami -Dade County and Miami will continue to illustrate strength in the long term. This is attributed in particular to the area being the recipient of considerable influx of capital flight from South America; a phenomenon that has assisted the entire South Florida area in its economic revival. These trends are expected for all property types in the area. Nevertheless, into the future particular attention must be given to the impact on the recovery on mid income, local populations, with less emphasis on the higher income, high price, international buyers/investors. 151Page MARKET AREA DESCRIPTION AND ANALYSIS The subject property is located within the Allapattah neighborhood. The boundaries of Allapattah are not easily defined. When looking at the area as extracted from a map of Miami, its form resembles a deep skillet with a thin handle. Its boundaries can best be described in sections. The following map serves as an overview of the entire geographic area which is Allapattah. Allapattah Map 1 Overview At its furthest northwest point of Allapattah's boundaries, commencing with the intersection of NW 36th Street with NW North River Drive, it makes up the handle moving easterly until NW 27th Avenue where the boundaries shift north to NW 38th street. This northern border continues until NW 19th Avenue where it again shifts one block further north to NW 39th Street. There the northern border remains until its end on Interstate 95 (1-95) which serves continuously as Allapattah's border to the east. Allapattah's border on the south is State Road 836, at its connection with 1-95, until it overpasses NW North River Drive at approximately NW 14th Avenue. NW North River Drive serves as its southern boundary until it intersects NW 27th Avenue. NW 27th Avenue is Allapattah's west border until NW 36th Street which as previously described makes up our imaginary skillet's handle. The map on the next page is a more detailed geographic description of the area of Allapattah, illustrating intersecting streets and avenues and major boundaries such as Interstate 95 (1-95) and State Road 836 (SR -836). 161Page NW 45th St moo NW 41 St St_ -- 27 �V, w ¢ r R a NW25th � Nwatatbi I-Tternatlotlal kinks Melreese Country Club r Grapeland Water Park Nw 17 th st Allapattah Map 2 Detailed NW 20th $I NW 171h 5[ z� 1 NW 15th 51 NW 14th St W R �a NW Mt, sl _ w Ener Or Ch NW 8th Background Allapattah is considered as one of Miami's original neighborhoods. The earliest settlements date back to the late 19th century. The Allapattah name can be traced to its Seminole Indian origins. Allapattah is the Seminole Indian word for alligator. Early development occurred close to the major transportation routes near NW 17th Avenue and 20th Street, NW 17th Avenue and 28th Street and NW 17th Avenue and 36th Street. The area began to develop with wood -frame single family structures built on stilts on forty and fifty foot wide lots. Most of the population was concentrated between 22nd and 25th Avenues. Allapattah experienced further growth after World War II. Agricultural land was quickly replaced by housing developments. The fifties was the decade in which Allapattah could be classified into a suburban residential area with a viable commercial district. The commercial district ran along NW 36th Street and along 17th Avenue. In the sixties, Allapattah was the subject of rapid change. With the construction of 1-95, the Airport Expressway and 836, the East-West Expressway, the area became physically separate and isolated into a smaller geographic unit. 171Page r 1+Q Nr5' •4�t 51 xa z z 7 z z z Z © z ` g z WYNW NW 28111 St NW 781h St z Wynwood Walls 0 ALLAPATTAH m NW 20th $I NW 171h 5[ z� 1 NW 15th 51 NW 14th St W R �a NW Mt, sl _ w Ener Or Ch NW 8th Background Allapattah is considered as one of Miami's original neighborhoods. The earliest settlements date back to the late 19th century. The Allapattah name can be traced to its Seminole Indian origins. Allapattah is the Seminole Indian word for alligator. Early development occurred close to the major transportation routes near NW 17th Avenue and 20th Street, NW 17th Avenue and 28th Street and NW 17th Avenue and 36th Street. The area began to develop with wood -frame single family structures built on stilts on forty and fifty foot wide lots. Most of the population was concentrated between 22nd and 25th Avenues. Allapattah experienced further growth after World War II. Agricultural land was quickly replaced by housing developments. The fifties was the decade in which Allapattah could be classified into a suburban residential area with a viable commercial district. The commercial district ran along NW 36th Street and along 17th Avenue. In the sixties, Allapattah was the subject of rapid change. With the construction of 1-95, the Airport Expressway and 836, the East-West Expressway, the area became physically separate and isolated into a smaller geographic unit. 171Page Latin American migrations composed principally of Cuban and Puerto Rican heritage, in the early sixties settled into an area. Allapattah was favorable due to its proximity to the Hialeah and Miami factory districts. Today the area is over 70% Hispanic with Spanish being the predominant language spoken. The 1980s brought influxes of Dominican Americans, Nicaraguans, Hondurans, and Haitians in the aftermath of various refugee crises in those nations. Now, a melting pot of residents from all across the Caribbean, Central America, and Latin America reside in the area. Currently among those of Hispanic background with greater presence in the area, notably are from the Dominican Republic. The neighborhood was nicknamed Little Santo Domingo in 2003. Most businesses in the area are owned and operated by Hispanics. There is definitely a Latin flavor in Allapattah. Retail, Businesses, and Fashion District Although relatively small in geography, there are many components to the Allapattah economic/business districts, tightly compacted. Many of the businesses and educational institutions in the neighborhood are generally, traditionally located on Northwest 36th Street (US 27). A factor that greatly benefits the area is that NW 20th Street is still considered the fashion district of Miami. Over 60% of the businesses in Allapattah are directly or indirectly associated with the fashion industry. A thriving textiles market is located along Northwest 20th Street between Northwest 17th and 27th Avenues, with several garment manufacturing and wholesale outlets from Latin America and the Caribbean makers along the row. Produce Market The Produce Market, the largest open-air food distribution center in Miami, serves local supermarkets and bodegas with the freshest variety of South Florida produce, tropical fruits and many other products. Industrial District The industrial district of the city of Miami is located in an area straddling the Civic Center, north of NW 20 Street. The Allapattah industrial area (submarket -district) is part of a broader industrial market known as the Central West industrial market sector, as defined by the Commercial Industrial Association of South Florida (CIASF). The Central West industrial market sector encompasses an industrial area located from NW 12 Street on the south to NW 103 Street on the north and from NW 37 Avenue on the west to Interstate 95 (1-95) on the east. It is has seen very little expansion in growth, and in new industrial construction in the last decade. 181Page Trades Trades in the area range from clothing manufacturers, auto repair, carpentry and upholstery shops. Wholesale trade is the primary enterprise with 70% of the businesses in Allapattah selling for resale. Retail sales are a distant second with only 20% of total sales. Manufacturing comes in third with less than 10%. Many of the clothing items bought in other stores around Miami were previously bought wholesale in Allapattah. In Allapattah most of the businesses are small having between 1 and 5 employees. Shipyards Additionally, several shipyards and dry docks located along the neighborhood's banks of the Miami River. Civic Center Area Jackson Memorial Hospital is the primary presence in a sub -area of Allapattah which is known as the Civic Center Area. The Civic Center area is identified by a concentration of Hospital complexes, including Cedars of Lebanon Hospital and the V.A. Hospital, and ancillary uses such as apartment buildings, hotels, medical office buildings, as well as a grouping of governmental uses such as the Dade County public health department, courts, detention centers and police department and State Attorney's offices. This sub -area is identified by its expanses on both sides of NW 12th Avenue and on both sides of NW 14th Street at their intersection. However its boundaries have expanded beyond the immediate areas of NW 12th Avenue and NW 14th Street towards the northeast and east. This is where the Miami Dade Community College Medical Campus, the Lindsey Hopkins technical school and the recently completed University of Miami Medical/Technical Research Center are located, and where identifiable tracts of land continue to be sought and purchased to expand such existing uses as well as to supplement these uses. The Civic Center sub -section of Allapattah is an important element of the Allapattah neighborhood. The Civic Center then is a concentration of medical/hospital and governmental services, with ancillary uses ranging from apartment buildings, hotels and offices. In the Civic Center area Allapattah does have some massive hospital complexes and ancillary uses, lead by the Jackson Memorial Hospital, and also governmental buildings, including courts, detention centers etc. Demographics Allapattah is moderately populated, with1.72% of Miami Dade County's population. Income levels within surrounding areas of the immediate subject market are generally considered to be at low to moderate levels. The subject property is inside census track 30.04 pursuant to the map on the next page. Others census tracts that are closely associated with Allapattah and which abut the subject's census tract to the east, west and north are 30.01, 30.03, 24.02, 29, 24.03, 24.04, 25.01 and 25.02. These census tracts are illustrated in the map presented in the next page. 191Page Census Map Illustrating Relevant Tracts for Allapattah l,.• � rr�nr '� rrrr � �� �� ■ ����rl�r �� � �rrrrr �r rrr r _ �r rrr N111111�r: ��rr rrr r�� ���!'�; � »�� ���i�■■ �rrrr Iir�� _ �i:�`�♦♦�rrr rrr-- �,,, ,• 1 �rr r�� �ti � 111 � 95 rl I I^ "Br rrr.L ] 95 395 Demographic and Economic Data from all of the tracts associated with Allapattah is presented in the table on the following page. 201Page Demographic and Economic Data for Census Tracts for Overtown 30.04 1 30.01 1 30.03 1 29 1 24.02 1 24.03 1 24.04 1 25.01 1 25.02 POPULATION Total Population 4,450 2,705 6,315 5,752 5,323 4,173 5,386 5,388 3,421 42,913 POPULATION, HISPANICOR LATINOORIGIN Not Hispanic or Latino 1,205 1,426 578 1,070 596 269 772 1,227 1,121 8,264 Hispanic or Latino 3,245 1,279 5,737 4,682 4,727 3,904 4,614 4,161 2,300 34,649 POPULATION, RACE White alone 2,849 1,584 5,047 3,778 4,026 3,128 3,535 2,932 1,787 28,666 Black or African American alone 1,166 814 528 1,256 688 507 1,155 1,527 1,226 8,867 American Indian and Alaska Native alone 22 13 69 28 28 29 20 46 9 264 Asian alone 76 106 43 7 4 2 23 27 23 311 Native Hawaiian and Other Pacific Islanderalone 2 3 1 0 0 0 1 2 1 10 Some Other Race alone 207 103 411 451 401 357 449 611 258 3,248 Two or More Races 128 82 216 232 176 150 203 243 117 1,547 POPULATION, SEX Male 2,702 1,408 3,226 2,968 2,773 2,153 2,692 2,743 1,760 22,425 Female 1,748 1,297 3,089 2,784 2,550 2,020 2,694 2,645 1,661 20,488 POPULATION, AGE (18YEARS) 18 years and over 3,831 2,297 4,931 4,333 4,052 3,221 4,378 4,061 2,565 33,669 Under 18 years 619 408 1,384 1,419 1,271 952 1,008 1,327 856 9,244 MEDIAN AGE BY SEX Both sexes 39.7 43.9 37.2 34 34.8 36.4 43.5 33.9 36.1 37.72 Male 37 43 35.5 34.4 35.1 35.6 42.6 33.6 35.9 36.97 Female 44.8 44.8 39.2 33.6 34.5 37.2 45.1 34.1 36.4 38.86 HOUSEHOLDS Total Households 1,639 987 2,203 1,764 1,675 1,239 2,171 1,530 1,080 14,288 HOUSING UNITS Total Housing Units 1,907 1,176 2,437 1,862 1,847 1,346 2,346 1,698 1,179 15,798 HOUSING UNITS, OCCUPANCYSTATUS Occupied 1,639 987 2,203 1,764 1,675 1,239 2,171 1,530 1,080 14,288 Vacant 268 189 234 98 172 107 175 168 99 1,510 HOUSING UNITS, OCCUPIED, TENURE Owned with a mortgage ora loan 90 196 338 250 325 312 232 366 275 2,384 Owned free and clear 25 43 183 99 102 145 80 162 97 936 Renteroccupied 1,524 748 1,682 1,415 1,248 782 1,859 1,002 708 10,968 I20 mily Income Low Mid Mad Mad Mod Mod Low Mad Law Average 10 MSA/MD/Statewide non-MSA/MD Median Family Income $50,065 of Census 16 MSA/MD/Statewide non-MSA/MD Median Family Income $48,100 Tracts 10Tract Median Family Income $24,707$43,625 $26,770 $26,209 $25,286 $25,780 $21,612 $27,314 $22,821 $27,125 16Tract Median Family Income $23,733 $41,910 $25,719 $25,176 $24,291 $24,767 $20,760 $26,239 $21,924 $26,058 MD County SUM/MD 2,496,435 1.72% 872,576 0.95% 1,623,859 2.13% 1,841,887 1.56% 472,976 1.87% 5,000 5.28% 37,669 0.83% 675 1.48% 79,351 4.09% 58,877 2.63% 1,208,364 1.86% 1,288,071 1.59% 1,950,707 1.73% 545,728 1.69% 38.2 98.75% 36.9 100.18% 39.4 98.62% 867,352 1.65% 989,435 1.60% 867,352 1.65% 122,083 1.24% 360,923 0.66% 122,951 0.76% 383,478 2.86% %of Actual 2010 56.39% Estimated 2016 54.17% 211Page The subject market area — Allapattah - contains a total of 42,913 people, 33,669 — 78.5% - over 18 years of age and with a median age of 38 years. There are a total of 15,798 total housing units, with a total of 14,288 occupied households and 1,510 vacant units. From the total households units, 3,320 are owner occupied with 10,968 rented; 21 % are owner occupied, 69.4 are rentals, and 9.6% are vacant. Median family income levels for the area in 2016 ranged from $20,760 (24.04) to $41,910 (30.01) with an average of $26,058; the average for Allapattah is 54.17% of the average for Miami Dade County. Summary and Conclusions Allapattah As such the Allapattah neighborhood/market can be best described as scattered collection of office buildings, light industry and manufacturing, wholesale outlets, warehousing and small retail establishments. Allapattah is devoid of skyscraper office edifices but has a business district which is considered an integral part of the community. NW 20th street, regarded as Allapattah's main street, is considered Miami's fashion district. The business districts in Allapattah - which incorporates primarily retail activity as its motivating force - is supported by light industry and manufacturing, as well as wholesale and warehousing activities. The retail activity is a tremendous force in Allapattah in view of the increasing prices paid for improved strip shopping centers, the perceivable international character of the goods sold, the sustained occupancy rates in these storefronts and the comparative high rents. Allapattah then is in an interesting situation in that there are two diverse but tremendously motivating forces at work in this market. This can only result in continued growth and expansion of opportunities for business and development in Allapattah. Allapattah is therefore one important pocket of commerce and development in the Miami and greater Miami area. Another important element of Allapattah is its proximity to the heart of Miami. The major highways that run through it put Allapattah in easy reach from anywhere in Miami. It is just north of the Miami Downtown -BrickeII Area, the Central Business District. Just to the west of Allapattah is the Miami International Airport, which ranks second in the United States as far as size and number of international passengers. Allapattah is also greatly helped by the mass transit system in Miami, with three metro rail stops in the area: Santa Clara, Allpattah, and Earlington Heights. Metrorail consists of 21.5 miles of elevated guide way running from the city of Hialeah to the Dadeland area in South Dade County. Metrorail's northern most stop is the Hialeah Station that also connects it to the TriRail system which can take passengers all the way up to West Palm Beach. Allapattah is strategically located between Miami and Hialeah. This Miami -Hialeah connection makes it a formidable place for future expansion. Allapattah stands in the center of Miami as Miami looks to merge itself to a global community. 221Page SITE ANALYSIS Address: Folio Numbers: Land Area: Gross Land Area: Usable Land Area: Primary Road Frontage: Secondary Road Frontage: Average Depth: Access: Shape: Corner Lot: Visibility: Paved Street: Sidewalk: Curb And Gutter: Storm Sewer: Utilities Public Electricity: Water Supply: Public Sewer: Natural Gas: Underground Utilities: Adequacy of Utilities: Street Lighting: Traffic Count: Landscaping: Topography: Rail Access: Port Access: Flood Plain: 1455 NW 17 Street Miami, Miami -Dade, Florida 33125 01-3135-087-0010, 01-3135-087-0012, 42,309 SF 0.971 Acres 42,309 SF 174'- NW 15 Avenue N/A 259 Ft Direct by NW 15 Avenue Rectangular No Visibility from NW 15 Avenue and surrounding development is rated as average. Yes Yes Yes Yes Yes Municipal Public Yes Yes Yes Average Yes Not available for 2015 Fair Basically Level No No The Flood Insurance Rate Maps, published by the Federal Emergency Management Agency panel number 12086CO311 L dated September 11, 2009, indicate the following: Flood Zone AE. Special flood hazard areas subject to inundation by the 1% annual chance flood. The 1% annual flood (100 -year), also known as the base fold, is the flood that has a 1% chance of being equaled or exceed in any given year. The Special Flood Hazard is the 231Page Earthquake Zone: Irrigation Water: Easements/Encumbrances: Environmental Issues: Topography Studies: Functional Utility: area subject to flooding by the 1% annual chance flood. Areas of Special Flood Hazard include Zone AE. The Base Flood Elevation is the water -surface elevation of the 1% annual chance flood. No No No No While it is beyond the appraiser's expertise to determine the presence or extent of any environmental contamination within the site, it is incumbent upon us to comment as to any visible evidence of contamination or any apparent source of potential contamination. Upon the normal course of inspection of the site, the appraiser found no readily visible evidence of contamination. Should contamination be discovered in the future, such discovery could materially affect the value of the subject property and the undersigned reserves the right to reconsider his value conclusion. No A topographical survey was not provided; however, the land appeared to be relatively level and at grade with the adjoining public right-of-ways. We have no data on subsurface conditions, but due to improvements on this and adjoining parcels, it is apparent that the load bearing capacity of the site is sufficient to support improvements to the site. Utilities - All utilities were present at the suject site. Electricity is provided by Florida Power and Light. Water service is provided by Miami Dade County Water and Sewer. Telephone service is provided by AT&T. Conclusion: The subject land tract contains a total site area of 0.971 acres, or 42,309 square feet. There are no site improvements. The shape of the property is rectangular and benefits from having direct access to and from NW 15 Avenue. Visibility to the site is considered fair. 241Page ZONING Zoning: Legally Conforming: Zoninq Chance Requested: Likely: T6-8-0, Urban Core - Open Yes No No Map of Subject Property's Miami 21 Zoning 251Page M1 Ion c Ilion1 ��' 111111 .. ■II ■ 1111 •, •. I � 11111 f i �111,11111I I '1��1 ■ � i NW ISTH ST t 11111111111i� 1i r 1,. +�1111111�■11�,NW 16TH TER 1111�1�1 J.� ■ �. .. IIIlIIIII .. 11 ISI 11■ III 1 �.= � � 1��11 __ 11111■I■ ■'soon X11' 251Page Miami 21 Zoning Class Legend PROPOSED ATLAS T1 NATURAL T3 SUB -URBAN T4 GENERAL JgBAN [5 URRAV CENTER TM' URBAN GO RL I� T6-12' URBAN CORE T6-24' URBAN C.C)FZ ' TS -W LRBANCORE T&48' URBAN CORE %al)' URBAN CORE - rFr64' URBAN GORF D1 WORK PLACE ' D2 INDUSTRIAL D3 %.IARIHF - CS CIVIC SPACVPARKS CI GPJI,^.INSTITUTION CFHD CIVIC IN5TITLTION - HL AL ' H D,STRICT R -RESTRICTED I -LIMITED O -OPEN The subject property is located within the incorporated area of the city of Miami, and therefore its uses are limited by the city's prevailing zoning code. It is zoned T6-8-0, Urban Core - Open. This zoning classification allows a density of 150 dwelling units per acre, with a corresponding intensity, Floor Lot Ratio (FLR), of 5. This zoning classification is interpreted to allow development of mid to high levels of density and intensity; permitting mixed use properties, with primarily residential uses in the upper floors, plus a relatively broad variety of commercial uses on the ground or lower floors. 261Page R L O ®©® R L 0 mmm R L. 0 mma R L 4 mmm ca CI di D@ IXf mm m DENSITY fUMRS RER ACRE+ RESIDENTIAL ___ ___ ___ ___ ___ ___ EIhgLE =y i' L� ?E31==w{a AP. uI_LC.r .f.- T/i=FdL+I L'l _TI FAYIL" H{'J314, CCRLIrgRY HOPE QFF#CE w4E-Yd6WK YA9'iiK-LI4E LO6UNG eeoaERE4RFOET INK FCTEL OFFICE qF-l6= EnNrERCWL AU617iiEpTEG C0i151EFCld_ E9T49. EYFERTRIYLIEh.- E£TAELI3AYENT EYf9'iTRIYUEk-E£TAE, RCI _T FPCO i3EFV!{.E E£-AE•_IBHLEiJT dLCaXCL EE': E386E 8ERYICE E8Tk9. gEMEi4L {:_Y NEFC'A'_ YARNE FEL4TE] CGk+YEiUIAL E3-P.i aPEw AIF. REPRL FLJ6sTE aF A,63E413_V F4=CR"311]hW1.ff8TR3 'EF CNIC C'gYY J4 T'i =fel_ Ts creasuPPORT mwsJXlrr euFl%trzT FAcanre IXFR.Y3TRYCT4IRE P1Y@ LR1LI71E6 YA9R EAGLET WARM FLS-I. P4F]{71a F£3i.L E gl ££UN TFAJJSf-FdpLR1E& E6LCATIONAL {NI_C+i.A1tE .CLEgEJ UNIIAER2f-P L+IC6-E.+WI&X 3&HCilL FF:. SOHa01 FE3=4RCX F4CILifr EFECL4- 7iAIHlw0+1'4GdT}7FdRL INDUSTRIAL Alm:-RE.ATEa IMOLffiT"Rlel E9T9L 4+ANJF4{-IJiIRq 4141) ?WOC683A1a k'AR HE FEL4T31 ®Ia919TR1AL E£-L. FR'OLC-37NG 9EhRlF^E3 ETOiagE, 71BTq Miami 21 Building Disposition for T6 Zones Specific to T6 Zones BUILDING DISPOSITION Building disposition describes where the building sits in relation to the lot or parcel. The following are the specific regulations that apply to building disposition in a T6 zone. The diagrams below explain building setback requirements specific to each T6 zone. These regulations ensure that transitions occur between transects—creating a natural separation between buildings of incrementing capacity. T6-8 ZONE BUILDING DISPOSITION LOT OCCUPATION a. Lot Area 5000 sq.ft min.; 40,000 sq ft. b. Secondary Front max b. Lot Width 50 ft. min c. Lot Coverage story 1-8 stories 80% max. Above 8 story 15,000 sq. ft. max. floor plate for Residential & Lodging 30,000 sq. ft. max. floor plate e. Abutting T5 for Office & Commercial d. Floor Lot Ratio (FLR) 5/ 25% additional Public Benefit e. Frontage at front setback 70% min. f. Open space Requirements 10% lot area min. g. Density 150 du/acre max. BUILDING SETBACK a. Principal Front 10 ft. min. b. Secondary Front 10 ft. min. c. Side 0 ft. or 30 ft. min. above 8th story d. Rear 0 ft. or 30 ft. min. above 8th story 0 ft. min. Irst through 5th story e. Abutting T5 10 ft. min. 6th through 8th story 30 ft. min above 8th story 6 ft. min. Irst through 5th Abutting T4 story 26 ft. min. above 5th story 6 ft. min. Irst through 3rd story Abutting T3 26 ft. min. 4th through 5th story 46 ft. min. above 5th story f. Across street from T3 Principal front 10 ft. Irst through 3rd story Secondary front 20 ft. min. above 3rd story Note: This Building Placement applies to all T6 281Page -IMW�1-9TH ST? N 19TH > r . Lr— rn NW 18THST NW 17TH ST Site Map 301Page I 15r 2150 �` In .:.; !f ib I�.il}y�.l,.`. •3,LA,�.�1_ I �&�1WN�i}S�II IWJ •" I _ yy oo } 128h — — — — (2.59 Ac.) 0p1 1I 001 I - 23�(}.. — • - (0.77 Ac) � �' d. VLLSRf+S caY�t�JWI1+S L4 123 N ;,I :na. ,- n 1g ,` .., ,'.� •2 0 — - -2 u8,., 1_ 0012 I Ot 2.49Ac.) — —236 P ns a 0159 (L — Ac.) 0060 1 60 0.2z 301Page Flood Map 10N@k� a. _er Ye •'f _L_�I i. ry u :"r I ZONEAE l �F I ; L L _..J _- 3 »Miami Pity e�E Ir'— � � r•— It �� r� , Jrti-- �I �i 4 F _ ,-......-__ J. L I rI \y ms's �� �i •` r '' --------- PANEL 0317E FIRM In FLOOD INSURANCE RATE NEAP � MIAMI—RADE COUNTY, � FLORIDA O AN➢IACURPf)RATED AREAS PANEL 311 OF 1031 (SEE MAP INOE%FOR RfAi PAiIEL LnvOur) a � cauuur.m tea_ gwEL 3UF[u m +ten wi• � WAI.CRY CF ihkM wi' � Nmfm b Uar }M1e Ibp !lambs sb�n waw shobi be wemtl ��.e^ pea'9 'mP wdmo. hm ScmmuMm Mxmb� Yowe mow L�ald Em uw0 m Irlsmu� up�eioic W Lb wgm:l wmmuty *u MAP NUMBER 1 Zi186C0311 L z MAP REVISED SEPTEMBER 11, 2009 31Page Feder,ll Emer¢ency 11„���Kra.-.w .l�;y,ln REAL ESTATE TAX INFORMATION A summary of the assessment of the subject is provided in the following tables. The subject property is government owned and therefore tax exempt. ASSESSMENT & TAXES - TAXYEAR 2016 Parcel Parcell WJ Tax Parcel #. 01-3135-087-0010 01-3135-087-0012 Market Value Assessed Land Value $1,158,720 $533,640 Assessed Building Value $0 $0 Other Value $0 $0 Total Assessed Land Value $2,295,725 County Tax Rate Total Estimated Building Value $0 0.00000% Total Estimated Other Value $0 TotaiAssessment $2,295,725 Assessment Ratio 0.00% Total Estimated Tax Amount $0 Total Estimate/GBA $0.00 Total Estimate/Acre $0 GENERAL IMPROVEMENTS DESCRIPTION City Tax Rate 0.00000% County Tax Rate 0.00000% Other Tax Rate 0.00000% Combined Rate 0.00000% The subject property was vacant as of the date of the last inspection. There are no improvements on the subject site. 321Page ANALYSIS OF DATA AND OPINIONS OF THE APPRAISER HIGHEST AND BEST USE ANALYSIS Four criteria are examined in order to determine the highest and best use of the subject property. The criteria and their applicability to the subject, both "as vacant' and "as improved" are as follows: Physically Possible: the size, shape and topography affect the uses to which land may be developed. The utility of a parcel is dependent on its frontage and depth. Sites with irregular shapes may be more expensive to develop, and topography or subsoil conditions may make utilization too costly or restrictive. Highest and best use as improved also depends on physical characteristics such as condition and utility. Legally Permissible: a legally permissible use is determined primarily by current zoning regulations. However, other considerations such as long-term leases, deed restrictions, and environmental regulations may preclude some possible highest and best use. Financially Feasible: the use of the property is analyzed to make a determination as to the likelihood that the property is capable of producing a return which is greater than the combined income needed to satisfy operation expenses, debt service, and capital amortization. Any use that is expected to produce a positive return is classified as financially feasible. Maximally Productive: the use that provides the highest rate of return among financially feasible uses is the highest and best use. The use of the land must yield a profitable net return, and the quantity of land devoted to any specific use must be limited to that quantity which will yield a maximum return to each owner. Highest and Best as Vacant Physically Possible Physical uses are limited by the size and configuration of the site. The subject property consists of two adjacent lots. The total net land area consists of 42,309 square feet. The subject site is rectangular in shape. It is an interior site. The site has approximately 174 feet of frontage along NW 15 Avenue, along the subject's western boundary, with approximately 259 feet of depth. The resulting rectangular figure is calculated to consist of 45,066 square feet of total net land area — for purposes of this valuation we will use the square footage as reported in the records of the Miami Dade County's Property Appraiser's Office. Physically, there should be no impediment for development of a medium to high density mixed used residential building. An analysis of the subsoil conditions was not provided to the appraiser; however, it is presumed the site could support most building types, given the existing improvements currently on the site as well as those on the immediately surrounding properties. The site is serviced by all public utilities. 331Page Legally Permissible The property is located in the incorporated city of Miami, and therefore its use is limited by the city's prevailing zoning code. It is zoned T6-8-0, Urban Core - Open. This zoning classification is interpreted to allow development of mixed use properties, with primarily residential uses up to 65 units per acre plus a relatively broad variety of commercial uses. Its density is limited by its Floor Lot Ratio (FLR) which is 5, resulting in a maximum building area of 211,545 square feet, and by height 8 floors. Details of Calculations: 42,309 X 5 = 211,545 Financiallv Feasible After considering the possible legal and physical uses of the site, a financial measure is used to determine the feasibility of the use. Financial feasibility can be determined by comparing the economic value of a legal use to the cost of creating that use. If the cost to purchase the land, develop it and market the finished product is less than the value of that finished product, then the use is considered to be financially feasible. The uses of surrounding properties are generally the strongest indication of the uses the market deems to be feasible. Within the immediate area of the subject, in addition to the existing older stock of apartment buildings constructed in the past 50 years, there are a variety of mixed use medium density multifamily/retail buildings of recent construction — since the mid 2000s. The subject's location is suitable for uses that don't require high levels of visibility exposure. It is our conclusion that most mixed use medium density multifamily/retail buildings that would be legal and physically possible, would be uses of the site that would reasonably be considered feasible. Particularly with maximum attention given to the mid income, local population, instead of the higher income, high price, international buyers/investors, where signs of softening in that high to luxury market are becoming more visible. Maximally Productive Of the financially feasible uses the highest residual land value, consistent with the rate of return warranted by the market for that use, is the highest and best use. The residual land value can be found by estimating the value of the propose use (land and improvements) and subtracting the cost of the labor, capital and coordination expense to create the improvements. Given the estimated value of the land based on comparable land sales, and in view of the estimated residual value of the subject site, it is evident that the highest and best use of the site as if vacant is for the development of a mixed use mid to high rise multifamily/retail building AS VACANT: Mixed Use Mid to High Rise Multifamily/Retail Highest and Best as Improved AS IMPROVED: Not Applicable 341Page LAND VALUE OPINION There are several methods appraisers can employ when developing an opinion land value. The six basic procedures are the Sales Comparison Approach, Allocation Method, Extraction, Subdivision Development Method, the Land Residual Technique, and the Ground Rent Capitalization Method. All six methods are derived from the three basic approaches to value. Sales Comparison and income capitalization (i.e. Ground Rent Capitalization) can be directly applied to land valuation. Allocation and Extraction procedures reflect the influence of the Sales Comparison and Cost approaches; the Land Residual Technique is based on the income capitalization and the Cost Approach. Subdivision Development draws on elements of all three approaches. Sales Comparison Approach (Land Valuation) The Sales Comparison Approach is a process of comparing actual comparable property sales. This approach to value is based upon the Principle of Substitution, which holds that "the value of a property tends to be set by the price that would be paid to acquire a substitute property of similar utility and desirability within a reasonable amount of time. This principle implies that the reliability of the Sales Comparison Approach is diminished if substitute properties are not available in the market." This approach is based upon the collection of similar sales and offering data for comparison. Market - derived adjustments for relevant factors can sometimes be extracted from these and other sales. The sales data is compared to the subject on the basis of those elements of comparison which include real property rights conveyed, financing terms, conditions of sale, and date of sale. Location and other physical characteristics are then considered. Physical characteristics typically used in comparison are shape, topography, utilities, zoning, frontage, and flood plain. Because adjustments for these relevant factors are market derived, the desires and actions of typical buyers and sellers are reflected in the comparison process. Listed on the following pages are sales, which were considered to be the most comparable to the subject property. Units of Comparison Two units of comparison can be used to analyze the subject property, and arrive at an estimate of value. One unit of comparison is the sales price per maximum building area, resulting from applying the Floor Lot Ratio (FLR) multiplier against the usable (net) land. Utilizing this unit of comparison allows consideration due to density, as well as intensity. It is less commonly used in the market. A second unit of comparison is both commonly used and is readily available. This is the sales price per square foot of net usable land area. This particular unit of comparison allows for other factors — elements of comparison - affecting value such as location and situs (corner versus interior) to be considered. It is less useful when considering such factors that are perceived to affect value like density, emanating from zoning differences. This unit of comparison will be utilized in analyzing the subject property given that there was ample data in the market of similarly zoned comparable properties (lands), with similar density as well as intensity. 351Page Land Sale 1 Location Data Location: 1313 NW 8 Ave/803 NW 12 Flood Plain: Street Adverse Esmnts: Miami, FL 33136 County: Miami Dade Folio Nos: 01-3135-019- Proposed Use: 1270/1280/1290/1300/1310/3 Confirmation Source: 580/3570/3590/3600 Market Type: Suburban Physical Data Cash Type: Land Land Area Acres: 1.049 Land Area SF: 45,686 Topography: Basically Level Shape: Rectangular Corner: Yes Utilities Telephone: Yes Electricity: Yes Water: Yes Sewer: Yes Gas: No Off-site Costs: $0 Zoning: T6 -8-L, Flood Plain: No Adverse Esmnts: No Environmental: U/K Imprvmts. At Sale: Vacant Proposed Use: Mixed Use Confirmation Source: Deed/Broker-A.Jaramillo Confirmed By: AJA Comments Sale Data Sale Status: Sale Date: August 25, 2016 Marketing Time: Days Grantor: Health Tower II, LLC Grantee: Central District Miami Redevelopment Group, LLC Document No: 30220-3264/3622 Sale Price: $5,450,000 Financing: Cash Cash Eq. Price: $5,450,000 Price Per Acre: $5,196,384 Price Per SF of Land: $119.27 Price Per Front Feet: N/A Price Per Unit: N/A Spoke in detail with listing broker — Alfonzo Jaramillo. These two parcels — land masses - are part of an assemblage in the area by the buyer. They are not contiguous to one another. The buyer has the intention of building a mini -city in the area. More properties are to be acquired; one parcel with 6,562 square feet already has been purchased as of 11/1/2016 for $136.85 per square feet. The buyers perceived this area very superior given its close proximity to the Culmer Metro Rail Station, and thus Brickell. The presence of the proposed soccer stadium was secondary. 361Page Land Sale 2 Location Data Location: 1170/80 NW 11 St., Land Area Acres: 1035 NW 11 Ct. Net Land Area SF: Miami, FL 33136 County: Miami Dade Folio Nos: 01-3135-026-0310/0200/0080 Market Type: Suburban Physical Data Type: Land Land Area Acres: 2.543 Net Land Area SF: 110,753 Topography: Basically Level Shape: Irregular Corner: Yes Utilities $11,500,000 Telephone: Yes Electricity: Yes Water: Yes Sewer: Yes Gas: No Off-site Costs: $0 Zoning: T6 -8-0/T5-0 Flood Plain: No Adverse Esmnts: No Environmental: U/K Imprvmts. At Sale: Vacant Proposed Use: Mixed Use / High Rise Confirmation Source: CoStar/Deed/Broker-J.Fried Confirmed By: AJA Comments Sale Data Sale Status: Sale Date: December 11, 2015 Marketing Time: 4 Years Grantor: Miami River House Assocs, LTD Grantee: Riverhouse Dev LLC Document No: 29887-4130 Sale Price: $11,500,000 Financing: Construction Cash Eq. Price: $11,500,000 Price Per Acre: $4,523,038 Price Per SF of Land: $103.83 Price Per Front Feet: $50,000.00 Price Per Unit: $38,246 This property consists of three separate sites. One, the largest is zoned T6-8-0, while the other two are zoned T5-0. All face NW 11 Street. Listing broker indicated that property had been offered in the open market for four years. Sellers were off -shore investors and did not want to accept offers until market rebounded. 371Page Land Sale 3 Land Location Data Sale Location: 3401 NW 17 Avenue Marketing Time: Miami, FLorida 33142 County: Miami Dade Folio Nos: 01-3126-038- Document No: 0240/0230/0220/0320/0330 Market Type: Suburban Physical Data Includes Construction Type: Land Land Area Acres: 1.050 Net Land Area SF: 45,728 Topography: Basically Level Shape: L-shaped Corner: Yes Utilities Telephone: Yes Electricity: Yes Water: Yes Sewer: Yes Gas: Off-site Costs: $0 Zoning: T6 -8-0/T3-0 Flood Plain: No Adverse Esmnts: No Environmental: U/K Imprvmts. At Sale: Need to add yes/no Proposed Use: Multifamily Confirmation Source: Seller Confirmed By: AJA Comments Sale Data Sale Status: Sale Date: August 14, 2015 Marketing Time: N/A Grantor: Norman Egozi Grantee: Allapattah Trace Apartments, Lt Document No: 29739-2817 Sale Price: $2,850,000 Financing: Includes Construction Cash Eq. Price: $2,850,000 Price Per Acre: $2,714,879 Price Per SF of Land: $62.31 Price Per Front Feet: $11,974.79 Price Per Unit: $23,313 Seller was approached by prospective buyer. Property was not listed in the open market at time of sale. Seller reported an arm's length transaction. Buildings demolished at a cost of $130,000 according to buyer. Proposed use is for housing - low income. Construction is underway. 381Page Land Location Data Location: County: Folio Nos: Market Type Physical Data Type: Land Area Acres: Net Land Area SF Topography: Shape: Corner: Utilities Telephone: Electricity: Water: Sewer: Gas: Off-site Costs: Zoning: Flood Plain: Adverse Esmnts: Environmental: Imprvmts. At Sale: Proposed Use: Confirmation Source: Confirmed By: Comments Land Sale 4 2210 NW N. River Drive Miami, Florida 33125 Miami Dade 01-3134-027- 0020/0031/0030/0040/0050 Suburban Land 1.023 44,572 Basically Level Rectangular No Yes Yes Yes Yes No $0 T6 -8-O, Yes No U/K Yes/Demolition Multifamily Attorney/Jose E. Castro, Esq AJA Sale Data Sale Status: Date: Marketing Time Grantor: Grantee: Document No: Sale Price: Financing: Cash Eq. Price: Price Per Acre: Price Per SF of Land Price Per Front Feet: Price Per Unit: Sale April 14, 2015 N/A 1920 River Corp/1622 Investment Corp/River Condo Stec No 15-4407 LLC 29580-1507-1516 $4,147,500 Cash $4,147,500 $4,053,332 $93.07 $27,650 $27,022 This sale consisted of four separate transactions; seller was the same with different name entities. The buyer was the same in all instances. The expected use of the property is for multifamily. This transaction confirmed on December 15, 2015. 391Page Land Sales Analysis Land Sales Location Map r _- � Sao P " w� - - h slr, _ s rrsu anh sr ui o3,6 PhY 51 S hM' 35th S- D ➢ p 4 3 1. 51 o- - —e m� ,- D N4 34 h SI 34:h `< �..� 347 St m t ''ti 3 �1i St _ I D -__ PN+ m _^h; A p F o 1 FYd i:a 51 NE 7d 3 a NE 3211 St %d 51 WiN `.k3h 33,.1. St —_ A TI 3:d SI e & I -d SI :Il Z,d St = m 3=. It x r = N•;1 J, M St A 31 151 m g 3`G 51 = 3Ah 5_ NW --2 d 3 z hl' > IN St NW 91h �; wti P, St .. St nevose m Parc Pf1J 3Th Si V 'Af - a . JE alhc NE h SI Su, _ %V 3711 SF N4' -,3h `i N�'i 31-. 51 - x _ Iti-BIA St _ 2E st h 2,11 ` NW _BIh Et 3 � a' � D NW 'Ih -� � W{2't13t rrw W S- 3 NEi61h 2N St -� - > w Nw .SII `- 5[ W - 3h 51 m NE Ih �. N th NW , Ih f :Sh 51 _ m a IV s[h = hN+'31t = 'IE =31e's. N -N 24-h S1 5t N [ h %V c31r St NE U -d 7 al St' D D 2<-i St r - - ' � Rnt s� - ^� St _ ^ .4''A St m M,V -:s1 '2,,' St � NE31 s1 -. m IF.' u�tl _ "� rkYry Am T 4 .: _ m Ir A' � w; "-x'at It 12._ St E Q ^i .fa - �h SI o NE 21-1 SI �" o•2W b11 51 � E 19tk� _ PrcgP k M7:'TA, 51 _ NW 1Kn 31 Pae E 81 Polia�r� 191h �� _ n - ascn ^tom u_ L1d53ei T�nF' YYl.a 2 ILN'a `l. Riva [ r .. ^din St Pakk rir 1xn s- 1 t. s. _ a Pnx - M lit[ 1a It z N:Y f� tT 1' -efa `E SI NY 19d, 1 t S1 bSSt 1 .e Y 151 r� - - 3ry 5 Rtl _ - f w o LJ C -_ I" I Ih 151ap— ld .� 1t . 4; h ., St i A. Hyl 15th St!Ef e I ] 1 g - St W I5t1 51 m m Idverp „ 1dt.^. St 5AF10 SI .� 14ik S, 1 A z tJ4V t`=h dl A All'St 41a St ':44 Si ��� a; a1s.,- 363 Ln1�xk2 hJ>i'13th '�,1 NE 131h = ` n t IOPJrx 11 Rift x NQI h ,M" 1311 SI + :3h St r _• SevrcIIP N �.Ir kWI11h ,6Cg TEIiw < i Boellenmal \. Sifi ��- ➢ .ib [In S7 �' Perk NE 10th N'A 51h 51 rJW al, 7 m Listed on the preceding pages are those sales, deemed to be the most comparable as compared to the subject. In order to arrive at a value conclusion for the subject, it is necessary to adjust the comparable sales prices for characteristics (Elements of Comparison) that are dissimilar from those of the subject property. The characteristics that may require adjustments include transactional such as real property rights conveyed, financing terms (cash equivalency), conditions of sale (motivation), expenditures immediately after purchase, market conditions (time), and property characteristics such as location, physical characteristics, available utilities, and zoning. Differences in elements of comparison may be expressed as percentage or dollar adjustments. Isolated percentage or dollar adjustments, if such measurable adjustments can be extracted or derived from differences in elements of comparison between sales and/or listings, would result in the application of quantitative analysis. The source of dollar or percentage adjustment must be readily understood by the reader of the appraisal report. We have analyzed the selected sales, and although there were some noted differences among the sales and between the sales and the subject property, no adjustment was able to be reliably isolated through quantitative techniques. We were not able to isolate percentage or dollar adjustments that could be readily illustrated quantitatively through the techniques applied. 401Page Whenever differences in elements of comparison between sales are unable to be isolated and measured, resulting in a percentage or dollar adjustment, qualitative analysis is undertaken. In comparison to the subject, superior characteristics in the sales are adjusted downward and inferior characteristics are adjusted upward. The conclusions of qualitative analysis may be described in terms that clearly convey the direction and often the magnitude of the difference between the comparable property and the subject in regard to each element of comparison. After careful analysis of the sales presented, through the use of both quantitative and qualitative techniques, we have presented the relevant sales in the adjustment grid on the following page. We have made percentage adjustments to the comparables reported based on noted differences between them and the subject property. However, while the direction of the adjustments is generally supported by trend analysis, from among the comparables reported and from competitive markets, the magnitude of the adjustment was not extracted from the market with a reasonable degree of confidence and as such it is founded in judgment; therefore what at first may be construed as a quantitative analysis, is in fact qualitative. Property Rights - The transaction price of a sale is always based on the real property interest conveyed. In this instance, an adjustment for this attribute was not considered necessary. Financing Terms - Prices paid in acquiring property may differ significantly due to the financing involved, if any. Cash or cash equivalencies are the basis of value, whereas extended, above market interest rate and/or leverage investor terms sales, generally represent the higher portion of a sales price range. Therefore, some methods of converting these financing terms to cash must occur so that the adjustment process may be applied to the sales. In reviewing the comparables, an adjustment was not required for atypical financing. Conditions of Sale - Adjustments made for conditions of sale usually reflect atypical motivations of the buyer and seller at the time of conveyance. A sale may be transacted at a below market price if the seller needs cash in a hurry. A financial, business, or family relationship between the parties may also affect the price of property. Interlocking corporate entities may record a sale at a non -market price to serve their business interest. When non -market conditions of sale are detected in a transaction, the sale must be thoroughly researched before an adjustment is made. Within the confirmation process, detailed attention was made to ensure the conditions of each sale. Based upon the research performed, it is believed that all of the comparable sales involved regular arms -length transactions without the presence of duress or adverse market influence. As such, no adjustments were warranted. Market Conditions/Time - Market conditions may change between the time of sale of a comparable property and the date of the appraisal of the subject property. Changed market conditions often result from various causes, such as inflation, changing demand, and changing supply. Time itself is not the cause for the adjustment. 411Page The market has been fairly stable over the period in which the sales took place. In this instance, a market condition adjustment was not made. Location - Location considerations include such factors as proximity to surrounding land use plus accessibility to supporting development and transportation routes. When reviewing the sales, it was determined that comparable land sales 1 and 4 had locational characteristics that were superior to the subject property, and therefore did require downward adjustments. Corner/Frontage - Corner located commercial properties generally bring a premium in the marketplace due to increased visibility and ease of access. The subject is a non corner located property. Comparable land sales 1, 2 and 5 are corners. We were unable to extract or identify any particular difference in price among those sales which were corner and those that were internal sites. The sales analyzed herein were considered comparable to the subject property therefore no adjustments were deemed necessary. Zoning - The subject is zoned T6-8-0. Although all of the sales reported had a maximum of their land mass zoned similarly as the subject, Sales 2 through 3 did have inferior zoning on part of their overall site. The zoning of the sales analyzed are rated similar to the subject, thus negating the need for adjustment. Demolition — Two of the comparables were reported to have improvements at the time of sale. We estimated costs of demolition using estimates provided via Marshal and Swift Valuation Services. The cost of demolition for Class B structures is report to currently range from $6.89 to $9.47 pr square foot of building area. We were able to confirm that the costs associated with the demolition of the buildings present at the time of sale for Sale 3 were $130,000 or approximately $7.26 per square foot. 421Page SUMMARY OF LAND SALES WITH ADJUSTMENTS Comp No. Subject 1 2 W1 4 Property Name Wagner Land Land Land Land Square Address 1455 NW 17 1313 NW 8 1170/1080 3401 NW 17 2210 NW N. Street Ave/803 NW NW 11 St Avenue River Drive 12 Street City Miami Miami Miami Miami Miami Date of Sale --- 08/25/16 12/11/15 08/14/15 04/14/15 Sale Price --- $5,450,000 $11,500,000 $2,850,000 $4,147,500 Land Area (Acre) 0.971 1.049 2.543 1.050 1.023 Land Area (SF) 42,309 45,694 110,773 45,738 44,562 Front Feet 174 0 230 238 150 Price/Square Feet --- $119.27 $103.82 $62.31 $93.07 Property Rights --- Fee Simple Fee Simple Fee Simple Fee Simple Financing --- 0 0 101% PMM 0 Conditions of Sale --- Arm's Length Arm's Length Arm's Length Arm's Length Zoning T6-8-0 T6 -8-L T6 -8-0/T5-0 T6 -8-0/T3-0 T6-8-0 QUANTITATIVE ADJUSTMENTS Property Rights 0.00% 0.00% 0.00% 0.00% Financing Terms 0.00% 0.00% 0.00% 0.00% Conditions of Sale 0.00% 0.00% 0.00% 0.00% Months Elapsed 3.87 12.47 16.43 20.50 Market Conditions/Time 0.00% 10.00% 10.00% 10.00% $102.38 Adj Price/Square Feet $119.27 $114.20 $68.54---F Location -20.00% -20.00% 40.00% -10.00% Corner/Frontage 0.00% 0.00% 0.00% 0.00% Zoning 0.00% 0.00% 0.00% 0.00% Demolition 0.00% 0.00% 4.50% 1.00% Total Net Adjustments ($23.85) ($22.84) $30.50 ($9.21) Net Percent Adjustment -20.00% -20.00% 44.50% -9.00% $95.42 1 $91.36 1 $99.04 1 $93.17 Tota/ Adj. Price/Square Feetl 431Page Conclusion After making adjustments the comparables have a value range of $91.36 to $99.04 per square feet with an adjusted mean of $94.75. The appraiser's estimate after reviewing the land sales and considering the current market conditions is represented in the following table. LAND SALES ANALYSIS ADJUSTED PRICE/SQUARE FEET ANALYSIS Sale No. Price/Square Feet Net Adjustment J Ad'. Price/S uare Feet Subject ---- ---- Sale 1 $119.27 ($23.85) $95.42 Sale 2 $103.82 ($12.46) $91.36 Sale 3 $62.31 $36.73 $99.04 Sale 4 $93.07 $0.09 $93.17 ISTATISTICAL ANALYSIS Minimum Average Maximum $91.36 $94.75 $99.04 MARKET VALUE ESTIMATE Estimated Price/Square Feet Square Feet Estimated Value $95.00 42,309.00 $4,0209000 Less Adjustment: $0 Land Value As /s: $4,0209000 441Page INCOME APPROACH TO VALUE The Income Approach to value presumes that no prudent buyer will pay more for the right to receive the future income stream for the subject property than an amount for which he can obtain the rights to a substitute future income stream, assuming similar quality, quantity, and durability of the income streams. The quality of the future benefits affects investment risk and the buyer's ability to receive a return on his initial investment, as well as, a return of his investment. The quantity of the future benefits reflects the amount of the future income stream plus potential appreciation or depreciation over the buyer's term of ownership. Durability relates to the amount of time that an investment will continue to provide positive benefits of ownership adequate to meet the investor's criteria. There are two accepted forms of the Income Approach, which can be employed for a project similar to the subject property. These methods are the Direct Capitalization and Discounted Cash Flow Analysis. The Discounted Cash Flow Analysis is used when multiple tenants are in-place and/or the income stream will vary throughout the holding period. Alternatively, the Direct Capitalization Technique is most often used when a property is currently operating at or near a stabilized occupancy level or when a property is projected to have a relatively level income stream. The valuation of land rent can involve several possible methods of valuation, including (1) direct rental comparison, (2) rental extraction, (3) rental allocation, (4) land rent residual method, (5) subdivision development analysis and (6) direct capitalization. Each approach should be considered to determine whether it is appropriate and can lead to credible results. Support for elimination of any of the approaches should be cited in the work file. In the case of the subject property the most appropriate application is considered to be through the use of direct capitalization. Direct capitalization The basic formula for the application of Direct Capitalization is Value = Income/Rate. The other derivations of this formula are Rate = Income/Value and Income = Rate X Value. The formula for direct capitalization which applies in estimating market rent for the subject property is — Income (Rent) = Rate X Value. To arrive at market rent by means of the direct capitalization approach to land valuation (Rent = Rate X Value) requires implementation of the following steps: 1.) The market value of the land (fee simple) is estimated. This has been accomplished and reported earlier under the heading of Sales Comparison Approach (Land Valuation) on page 53 2.) A market land capitalization rate is extracted from market rent data and market sales data. In addition capitalization rates can be obtained through secondary sources of data (surveys are generally used as support rather than as primary evidence of a capitalization 451Page rate). The following discussion is centered on this particular subject matter, with the intent of concluding upon a land capitalization rate. 3.) The subject's estimated land market value is multiplied by the land capitalization rate (market -derived) to arrive at an indication of its market rent. This is simply an algebraic procedure. Land Capitalization Rate Market Derivation Prices and rents are facts that are verifiable by market participants. Rates are the relationship between rents and values. Rates must be ascertained by judgment. The most credible way of determining the market rate for the land would be to do the following: 1.) Look at the contracted land rent and adjust it for specific conditions of the contract to arrive at an indication of market rent at the time the rent was set. 2.) Determine by a direct market comparison approach the market value of the underlying land as of the date the rent was set. 3.) Divide the indicated rent by the indicated market value to arrive at an indicated capitalization rate for the land. The resulting land capitalization rate would then be supported by market data. Using market data to derive indicated land capitalization rates, allows more credible results. Given the highest and best use of the subject property, every effort was undertaken in order to realize a land capitalization rate from an identified sale of land subject to a lease, where the rents were known. We were unable to identify a possible (anticipated) land capitalization rate for a property of comparable use as the subject property - Mixed Use High Rise Multifamily — within the immediate market of the subject property. We expanded the market area and researched the expanded market in order to isolate a land capitalization rate especially for land developed and built along similar uses to that use considered the highest and best for the subject property. In other words, to identify sales of land subject to a lease — leased fee estates - and where the existing improvements are multifamily and the rent to the owner of record (landlord) is known. Again these types of transactions are few and far in between. Although it is widely known that land leases for the development of multifamily projects in Miami Dade County do exist — the City of Miami was one of the initial participants in this type of endeavor with the development of the Park West residential buildings in the mid 1980s — we were able to only identify one transaction where some of the parts were available or known. 461Page We have focused on the land lease agreement(s) for the land surrounding the Miami Dade County North Dadeland Metrorail Station. It is our understanding that there was a lease agreement which encompassed various parcels of land executed in 1994 between Miami Dade County (MDT) and Green Dadeland Station LTD. Under the master lease agreement — commonly known as the Dadeland North Joint Development Lease - the largest portion of land governed therein was developed into what is known as the Dadeland Station shopping center; a multistory box retail center. In addition, under the master lease, other parcels of land similarly encumbered by said lease were as well developed, however the nature of the development consisted of multifamily or mixed use developments. Via a Memorandum of Resolution No. R-224-15, presented to the Board of County Commissioners, a third amendment to the Dadeland North Joint Development Lease, between Miami -Dade County and Pellmore Dadeland LP as it relates to Phase III, was approved on March 3rd 2015. The third amendment states that Pellmore is proposing to construct a 25 stories, 265,960 SF, 272 unit, luxury, multi -family, market -rate, and residential rental apartment building on 0.87 acres land (37,746 SF <30- 4035-038-0030>). The third amendment essentially increased the participatory rent (rent received from the gross receipts emanating from the development) to 5.75% for the first five years and to 5.35% for all of the lease years thereafter and in addition — as understood — extended the life of the term, under the third amendment to the master lease, to 90 years. Two factors can be estimated that would ultimately result in the development of a land capitalization rate. The value of the land governed under the third amendment and the potential gross receipt which is subject to the 5.75% participatory rent (the participatory rent would render minimum rent guarantees irrelevant). Value of land. - Within 800 ft of Dadeland North Joint Development Lease a property of 71,573 SF of net land area sold in December 4, 2015 for $13,000,000, or $181.63. In addition we have the sale of an apartment building — currently being demolished and thus treated as a land indicator — in December 2014 for $26,000,000 or $120.75 per square foot of land area. The site consists of 4.94 acres. We estimate $150/SF for the value of the land governed under the third amendment, or $5,665,200. Participatory Rent. - The proposed building will be similar to the building immediately west of it, which is also part of the master lease of Dadeland North Joint Development Lease. The first floor area is designated for retail, all of the subsequent floors are multi -family residential. Given that the building size is reported to be 265,960 and the height is 25 floors, it is reasonable for the footprint of building to have 10,600 +/- SF; this is ground coverage of 30%. The first floor would roughly have 10,000 SF of retail area. Current market rents are estimated at $30/SF NNN, generating a gross income of $300,000 to the leaseholder of the land. At 95% occupancy gross income would be $285,000 thus generating $16,388 per year in income for Miami Dade County (MTD) once stabilized. We can also estimate that there will 267 multi -family residential units — the balance from the 272 is attributed to the retail units in the first floor. Residential rents are estimated at $1,350 average rent per unit. At 97% 471Page occupancy gross income would be $4,195,638 to the leaseholder thus generating $241,249 per year in income for Miami Dade County (MDT) once stabilized. Once stabilized, the expected income generated for Miami Dade County (MDT) will be $257,637 yearly from both the retail and the residential income streams. These to estimated factors would allow us to arrive at a land capitalization rate of 4.55%. This rate is the results of anticipated income generated to the land owner to be received from the development of mixed use (multifamily/retail) on vacant land. Please see the table below for illustration of the calculations discussed above. Table Summarizing Land Capitalization Rate Calculations Based on the Third Amendment Approval Granted on March 3 d, 2015 by the Miami Dade County Commission Units Average Rent Gross Income Occupancy at 97% and 95% 5.75% of GI 267 Res. $1,350 $4,325,400 $4,195,638 $241,249 10000 SF $30.00 $300,000 $285,000 $16,388 $257,637 Assumption Acres 0.87 $150 $257,637 Cap Rate Land Value - $150/SF SF 37768 $5,665,200 $5,665,200 4.55% Land Capitalization Survey We have obtained data from two particularly significant secondary sources of net land capitalization rates; NNNEX, net leases exchange and Stan and Johnson. Please refer to the tables presented in the following pages. The first table from NNNEX (Table 1) incorporates listings for the sales of operations subject to ground leases. All are from the year 2016 and are reflective of this particular market's activity throughout the country. The uses range from retail to office uses. The OARs range from 1% to 11% with an average of 5.22% and a median of 5%. This appears more typical of retail uses and we interpret the data to be skewed because of this reason. The significance of this group is that they are clearly delineated as ground leases - as would be operationally similar expected for the subject property. It is recognized that no data was available from these secondary sources on the sale or listings of net leases for multifamily development per se. The property types ranged from fast food retail, drug stores, box retail, convenience store, bank branch, industrial and shopping center. Generally, use, brand and no less important location significantly affects net lease rates reported. Fast food and drug store retail report lower rates than say convenient stores/gas stations and automotive stores. 481Page NNNDx-Ground Lease - Overall Rates Date/Year TenanVUse City State Years Asking Price OAR 11/22/2016 Max & Ermras Restaurant Washington PA 12 $3,995,000 8.13% 11/22/2016 CHRISTUS ER New Braunfels TX 21 $4,350,000 4.65% 11/22/2016 CVS Southgate MI $2,711,000 6.75% 11/22/2016 CVS Southgate MI $2,711,000 6.75% 11/22/2016 CHRISTUS ER New Braunfels TX 21 $4,350,000 4.65% 11/22/2016 Max & Ermras Restaurant Washington PA 12 $3,995,000 8.13% 11/21/2016 SuperArnerica/NorthernTiierRetail Bloomington MN 18 $3,895,000 5.86% 11/18/2016 Sonic Drive-In Gainesville GA 20 $1,600,000 6.00% 11/18/2016 Sonic Drive-In Gainesville GA 20 $1,600,000 6.00% 11/16/2016 Chick-fil-A Gainesville GA 14 $2,300,000 3.91 11/16/2016 Chick-fil-A Gainesville GA 14 $2,300,000 3.91 11/11/2016 Taco Bell Laredo TX 23 $2,929,280 5.00% 11/11/2016 Taco Bell Laredo TX 23 $2,929,280 5.00% 11/10/2016 Charleston Spine Center N. Charleston Sc $580,000 11.00% 11/10/2016 Single-Tenant Panda Express Perris CA $2,400,000 3.75% 11/10/2016 Single-Tenant Popeyes Ferris CA $2,625,000 4.00% 11/10/2016 Single-Tenant Wendy's Perris CA $2,125,000 4.00% 11/8/2016 Land for Assisted Living Facility Grayson KY $950,000 1.00% 11/8/2016 Chase Bank Ground Lease Houston TX 15 $3,960,000 4.00% 11/7/2016 McDonald's Mableton GA 11 $2,375,000 4.00% 11/6/2016 Taco Bell Ground Lease North Conway NH $1,333,333 4.50% 11/3/2016 Suffer Health Surgery Center Oakland CA 19 $4,400,000 4.99% 11/1/2016 Starbucks Portland OR 10 $1,363,700 4.40% 11/1/2016 Mod Space Saint Charles MO $2,800,000 7.25% 10/31/2016 Fifth Third Bank Munster IN $2,673,000 5.35% 10/31/2016 Wendys Munster IN $1,915,789 4.75% 10/31/2016 BJs Wholesale Gas Station Quincy MA 19 $3,800,000 5.00% 10/31/2016 Fifth Third Bank Munster IN $2,673,000 5.35% 10/28/2016 Burger Kng Atlanta GA 6 $1,498,000 5.90% 10/28/2016 Burger Kng Atlanta GA 6 $1,498,000 5.90% 10/25/2016 Aldi Ground Lease Sun Prairie WI 19 $2,595,000 4.62% 10/20/2016 Bank of America Arlington TX 10 $4,705,000 4.50% 10/17/2016 Aldi Tullahoma TN 20 $1,889,000 4.50% 10/17/2016 Beshoff Infinit San Jose CA 12 $10,400,000 4.50% 10/12/2016 Jack In The Box Hayward CA 11 $3,300,000 4.27% 10/12/2016 Taco Bell Addison IL 25 $1,080,000 5.00% 10/10/2016 Rookies Ground Lease Rochester NY 9 $1,273,080 7.50% 10/6/2016 Thorntons Waukegan IL 20 $4,342,857 5.25% 10/3/2016 In-N-Out Burger San Antonio TX $4,478,000 3.35% 9/29/2016 Wawa Sun Qty FL Wimauma FL 21 $4,111,111 4.50% 9/27/2016 The Ground Round Greensburg PA 1 $1,140,000 7.75% 9/27/2016 Dollar Bank Greensburg PA 9 $2,565,217 5.75% 9/27/2016 Applebee's Greensburg PA 8 $2,204,167 6.00% 9/22/2016 Socorro Retail Socorro NM $400,000 1.55% 9/21/2016 CVS Ground Lease Wauchula FL 17 $2,400,000 4.75% 9/19/2016 Stop & Shop Gas Narragansett RI 9 $3,692,308 6.50% 9/19/2016 Burger iGnq Lawrence MA 9 $1,616,667 6.00% 9/19/2016 South Florida Billboard Pompano Beach FL $1,056,000 5.00% 9/19/2016 Stop & Shop Gas Narragansett RI 9 $3,692,308 6.50% 8/29/2016 Panera Bread (St Louis MSA) Festus MO 15 $2,754,000 4.75% 8/23/2016 CBS/Outfront Media Ellenton FL 7 $2,500,000 6.67% 8/18/2016 Arbys Ground Lease OFaklon MO 8 $1,115,000 6.00% 8/17/2016 100% Critical Use Fiber Optic Facility Woodbridge NJ 7 $818,683 6.00% 8/17/2016 CVS Watertown CT 22 $4,553,000 4.70% 8/16/2016 Wendys Acworth GA 5 $790,642 5.30% 7/22/2016 AutoZone Ground Lease Irvington NJ 16 $4,250,000 5.18% 7/21/2016 Arby's Springfield OH 10 $1,304,348 5.75% 7/18/2016 Auto Zone Ground Lease Brownsville TX 7 $970,000 4.60% 7/14/2016 Wawa Hampton VA 10 $4,840,000 4.75% 7/14/2016 Wawa Hampton VA 10 $4,840,000 4.75% 7/12/2016 American Chartered Bank Mundelein IL 18 $3,275,000 5.25% 6/15/2016 Taco Bell Ground Lease Laredo TX 23 $2,929,820 5.00% 6/8/2016 Whole Foods Ground Lease Memphis TN 17 $23,712,000 3.85% 6/1/2016 Chipotle Ground Lease Hadley MA 12 $1,880,000 4.25% ]fll EI Folio Loco I Grand Prairie TX 15 $2,334,000 4.50% 5/13/2016 Folio Tropical I Trophy Location Dallas TX 20 $3,895,000 4.75% 3/26/2016 Kohis Ground Lease Cedar Rapids IA 18 $2,850,000 5.00% 3/21/2016 Texas Roadhouse Belton MO 15 $2,200,000 5.00% 3/8/2016 Chevron & Extra Mle Service Station Rancho Cordova CA 9 $2,500,000 7.28% 2/24/2016 Taco Bell Sussex WI 20 $1,079,454 4.40% Low 1.00% Average 5.22% High 11.00% Median 5.00% 49Page We have provided a second table, from Stan Johnson (Table 2), which is understood as rates emanating from triple net leases, and some are ground leases. All of the properties however are located within the State of Florida. The OARs range from 4.35% to 9.64% with an average of 6.94% and a median of 6.52%. 501Page Table 2 Stan Johnson Company- NNN Lease terms -Florida -Current Tenant/Use City Use Land Bldg NOI NOI/Land NOI/Bldg Asking OAR Cal/OAR BJ's Wholesael Club/7651 W. Waters Ave Tampa Retail 12.45 542322 119884 $1,212,744 $2.24 $10.12 $17,966,578 6.75% 6.75% Tampa/Hillsborough County AT&T/5312 SW 6 Place Ocala Office 19.88 865973 1024001$1,024,000 $1.18 $10.00 $13,500,000 7.59% 7.59% Ocala Alorica Business Solutions/5031 Commerce Park Circle Pensacola Office 13.74 598514 57000 $794,047 $1.33 $13.93 $8,823,000 9.00% 9.00% Pensacola Mattress Firm/PeiWei/Vitamin Shoppe/11200 San Jose Blvd Jacksonville Retail 1.14 9257 $402,987 $8.12 $43.53 $6,716,450 ° 6.00% ° 6.00/° Jacksonville 49658 CVS Pharmacy/ 1696 South Fiske Boulevard Rockledge Retail 1.39 10878 $212,058 $3.50 $19.49 $3,500,000 6.06% 6.06% Rockledge 60548 Navy Federal Credit Union Pensacola Office 7.2 313632 80000 $312,754 $1.00 $3.91 $3,500,000 8.93% 8.94% Pensacola Burger King/3788 S Orlando Drive Sanford 1 Retail1.51 3861 $87,450 $1.33 $22.65 $2,010,350 4.35% 4.35% Sanford 165776 Captain D/2404 US 90 Lake City Retail 0.52 2804 $83,000 $3.66 $29.60 $1,747,368 4.75% 4.75% Lake City 22651 Hamburger Mary/2901 Tyrone Boulevard North St. Petersburg St. Petersburg Retail 0.74 5740 $96,000 $2.98 $16.72 $1,524,000 ° 6.30 /° ° 6.30/° 32234 Mattress Frim / 3708 US1 Cocoa Retail 0.6 10500 $84,000 $3.21 $8.00 $871,600 7.75% 9.64% Cocoa 26136 Low 4.35% Average 6.94% High 9.64% Median 6.52% 51 Peer Discussion We have had discussion with other appraiser — colleagues - on this matter. Over the years interviews have been had with a number of market participants with regard to land lease rates as a percentage of land values. The rate of return demanded by the market is a function of the relative risk of an investment, liquidity and potential for appreciation. Return rates from net leased properties generally ranged from 5% to near 9% depending on the credit worthiness of the tenant. This is a confirmation of the data reflected on the tables above. However, the research and surveys have allowed for the formulation that there is a distinct difference between return rates available from existing net leases in the market (second generation) and returns on investment demanded in new lease agreements (first generation). Buyers purchasing net leased properties benefit from the packaged transaction; the building is in place, the lease agreement is signed and, in most cases, the lessee has already established a pattern of consistent rent payments. In a new lease negotiation, none of those elements is present. The valuation scenario being considered here is the subject site, as vacant land and subject to the potential of a long-term lease agreement. Therefore the valuation is not of a seasoned net leased investment packaged for resale, but of an anticipated new land lease agreement. As an example, in early 2011 an amendment to lease a big box retailer in north Miami -Dade County was signed, setting a minimum rent at $675,000 per year, payable monthly at $56,250. An appraisal of that site at that time indicated a value of $7.5 million. The rate of return to the land — the land capitalization rate — was 9% ($675,000 = $7.5 million = 9.0%). The research and surveys (interviews) referenced to above have been with commercial real estate brokers, but have included as well a developer of net leased government facilities and a representative of a national restaurant company. The market has consistently indicated lease rates in the range of 9% to 10% for newly created land leases. Page 152 MARKET RENT ESTIMATE Summary and Conclusion The purpose of this valuation report is to estimate a current market rent for the subject site. When utilizing direct capitalization to estimate an indication of market rent, the formula is a derivation of Value = Income/Rate. The formula for direct capitalization which applies in estimating market rent for the subject property is in fact Income = Rate X Value. We have previously focused the discussion on this particular subject matter, with the intent of concluding upon a land capitalization rate. The various manners discussed and within which we attempted to resolve this appraisal problem is summarized in the following table. Market Rate Derivation 4.55% NNNEX 5.00% 5.22% Stan Johnson 6.52% 6.94% Peer Discussion 9.00% The market rent for the subject site is expressed as a percentage return on the fee simple value of the land. Estimation of that rate appears reasonable at 6% for the subject property in view of its highest and best use. This conclusion is based on a number of reasons, most of which tend to overlap. First of all is the fact that the utilization of land for multifamily (mixed use) development under a leasehold estate is not common, both locally and nationwide, thus reducing the pool — it appears more common when the land is publicly owned. Secondly, and closely related to the first, is the fact that there is limited data both market derived and through published data about land rental information and land return rates (capitalization rates), when the use is multifamily. Third, the data that is available on net lease capitalization rates appear to be more towards second generation lease transactions — return rates available from existing net leases in the market. However in this instance we have reported rates that are clearly defined as ground leases, and so more likely first generation. Fourth, those ground lease arrangements where the returns on investment demanded involve new lease agreements (first generation), the ultimate use of the land is not multifamily. Fifth, and finally, is the location of the subject property. The subject property is located in the area of Allapattah which has seen less demand for high rise mixed used multifamily development, than in other areas within the city of Miami. All of these factors tend to point towards an investment return expectation on the part of the land owner that both ought to be tempered but sufficient to warrant development; for a landowner of unimproved (vacant) land for multifamily (mixed use) at its highest and best use who wants to remain in an ownership position when demand for said use is limited to minimal. Apartment buildings are generally considered safe investments. In fact we have continually seen overall capitalization rates for multifamily properties among the lowest when competing with other Page 153 property types. That having been said, the capitalization rate of return on a land lease for multifamily (mixed use) development has to be below to be competitive with overall rates for apartment buildings (multifamily/retail — mixed use). So while apartment buildings illustrate strong demand among other property types and are considered safe investments, when coupled with the limited demand for land for rent for multifamily development, it stands to reason that the return on the land — to maintain ownership - has to be moderate. This conclusion is considered appropriate notwithstanding the strength of the product type in the immediate market where the subject is located. We have applied, therefore, a 6% capitalization rate to the estimated fee value of the subject land to determine market rent. e of Subject Land $4,020,000 Return Rate E 6.00% Market Rent $241,200 Based upon the preceding information, it is the appraiser's opinion that the market rental rate for the subject should be $241,200 annually. This translated into monthly payments of $20,100. The concluded market rent for the subject property on a dollar per square foot basis is $5.70 for the total square footage of the subject site. These figures appear to be within the range ($1.00 to $8.12, with an average of $2.86) when compared to the rental rates per square foot reported in Table 2 above based on the Stan Johnson data, but certainly towards the upper end of that range. When the concluded market rent for the subject property is analyzed on the basis of FLR-SF (maximum building size) it results in an indication of $1.14 per FLR-SF. Details of Calculations: $241,200 / 211,545 = $1.14 Test of Reasonableness — Feasibility of Leasehold Development and Market Rent We have conducted a second test of reasonableness. This time it is undertaken to measure the feasibility for the development of a multifamily/mixed use structure on land leased — long term — from the City of Miami, and to measure if the project's feasibility would accommodate a rental rate at the concluded level. The tables, presented on following page, illustrate that at the concluded rental level - $241,200 per year, or 6% of the land value - such use of the land is marginally feasible, with a gross profit margin of $2,627,718, or 7% of gross profit margin over value. Page 154 Market Rent to Lease Fee Interest (Cty of Miami) Land Value $4,020,000 Mx -Bldg I Units Land Cap Rate 6.00% $19.001 $27,534 Lease Peayments $241,200 $1.141 $1,652 Replacement Cost New to Lease Maximum Bldg Size RCN Total RCN Direct Ca 146 Residential Units $1,500 9,0001 Retail $25 Potential Gross Income 211545 $165 $34,904,925 $165.001 $239,075 $2,628,000 $12.421 $18,000 $225,000 $1.06 $2,853,000 Residential V & C 3.00% 1 $78,840 1 $0.37 $540 Retail V & C 5.00% 1 $11,250 1 $0.05 Potential Gross Income Operating Expenses $0.89 60% Taxes 6.83% Lease Payment 8.73% Insurance 7.32% Licenses 0.08% Legal/Actng/Coll 2.37% Waste 1.55% Water 3.84% Electricity 0.63% Repairs & Maint. 1.43% Elevator Maint. 1.09% Management @ 5.00% OER Total Expenses 38.87% Net Operating Income $2,762,9101 $13.061 $18,9241 $188,707 $0.89 alysis $1,293 $241,200 $1.14 7.00% $1,652 $202,245 $0.96 $4,316,687 $1,385 $2,210 $0.01 12.37% $15 $65,481 $0.31 $448 $42,825 $0.20 $293 $106,096 $0.50 $727 $17,406 $0.08 $119 $39,510 $0.19 $271 $30,116 $0.14 $206 $138,146 $0.65 $946 $1,073,941 $5.081 $7,356 $1,688,969 1 $7.981 $11,5681 1 Overall Cap Rate 1 4.50% 1 1 1 1 Indicated Leasehold Value Statistical GPM from Construction % GPM from Construction Profit Margin of Construction GPM from Const + N01 % GPM from Const+ N01 Profit Margin of Construction + N01 Page 155 $37,532,643 1 $177.421 $257,073 alysis $2,627,718 V- Cst = GPM 7.00% GPM-, V 7.53% GPM-, Cst $4,316,687 (GPM + NOI) 11.50% (GPM + NOI) _ V 12.37% (GPM + NOI) _ Cst RECONCILIATION AND FINAL VALUE ESTIMATE In this section of the report, the appraiser(s) bring together all of the data gathered during the appraisal, culminating with their opinion of the most probable value. It is in this section, they summarize their thoughts about the property to reconcile the value indicators into a final conclusion. Your attention is directed to the following which summarizes the value estimates presented throughout this report. Market Value of Subject Land and Market Rent ARKET CONCLUSIONS on Methodolo As Is of Sub'ect Land E $4,020,000 pitalization Rate 6.00% arket Rent $241,200 Estimate Summary Market Value and Market Rent as of Effective Day ESTIMATE SUMMARY Effective Date Market Value Market Rent December 19, 2016 $4,020,000 $241,200 Exposure Time - For the value of the land to materialize from the consummation of the sale of the subject property (hypothetical) is nine to twelve months. For the market rent to materialize, the exposure time is dependent upon execution of a long term lease for the express purpose of developing a multifamily/mixed use building. Page 156 +} r AwAli'�—. '+lea—� • _� .� • � Visit our website for business opportundies at- wwav_miami9ov.comfprocurement 4 t� or t F City OIBRII Purchase Order Department of Purchasing P.O. Box 330708 Miami, Florida 33233-4700 (305) 416-1922 Fax - (305) 415-1925 Pt�ROHASE t]t7f7ERIRELEASE NUMBER ShmtWs number mall paciages,Inokes, wd shlpping papem. Number 4 Dake Page No. 1 2 Order Date 11�08F2016 uber BiontractNm Buyy er: Anthony Hansen Taxpayer ID I Supplier No. Telephone No.City 1.60 of Miami - PF - Assm et Manageent 444 SW 2nd Ave., 3rd Floor Miami, FL 33136 28 650383554 96 305-2663930 emandez Yvonne Armada Appraisal Company P.O. Box 1247 South Warn , FL 33243 City of Miami -Finance -General Accounting 444 SW 2nd Ave, lith Floor Miami, FL 3313D Fax - (305) 416-1987 Email - payables@miamigov_com Customer Account Number Total Amount: Effective Start Date Effective End Date Total Agreement Limit 1110812016 Pursuant to RFO 132102(l 5) as authorized by Resolution 10-0330. Annie Per CPPt7 Director of Pracu�nt Date Approved FNIPC 506 Rev_ 12105 Line Commodity Code CescriptionADelivery Date oty Unit Unit Price Extended Price 1 9.1615-00 Appraisal of the property located at 1455 NW 17th Street, Miami, FL 2350 Dollar 1.60 2,350.6D reverse side hereof are incorporated herein by reference become ek 30 emandez Yvonne part of this order elephone Number. 2,350.06 Total Amount: 1110812016 Pursuant to RFO 132102(l 5) as authorized by Resolution 10-0330. Annie Per CPPt7 Director of Pracu�nt Date Approved FNIPC 506 Rev_ 12105 OB: ecluisition Number: Vendor Instructions stination 144631 1. Florida Tax Exempt ID: hip Via: epartment: Invoices- Direct Invoices in Duplicate to the address shown above. 21050 - DREAM - Knight Center Managerial 3. Terms and conditions set forth in our Bid or Quotation and on hie ayment Tenns: ontact Person: reverse side hereof are incorporated herein by reference become ek 30 emandez Yvonne part of this order elephone Number. 305}416-1429 1110812016 Annie Per CPPt7 Director of Pracu�nt Date Approved FNIPC 506 Rev_ 12105 Page 159 Appraiser's Qualifications Document Albert J. Armada, MAI, SRA PO Box 1247 South Miami, Florida 33243 Phone (305) 266-3930 Fax (305) 266-3935 albertC@armadaappraisal.com EDUCATION FLORIDA INTERNATIONAL UNIVERSITY Master of International Business, 1984 UNIVERSITY OF MIAMI Certificate of Middle Management, 1979 UNIVERSITY OF FLORIDA Bachelor of Arts, with Honors, 1974 MIAMI DADE JUNIOR COLLEGE Associate of Arts, 1972 LASALLE HIGH SCHOOL High School Diploma, 1970 EMPLOYMENT ARMADA APPRAISAL CO. (12-92/Present), Miami, Florida Position: Principal/Appraiser/Consultant Established and managed residential (simple to complex) and commercial (owner occupancy to investment grade) appraisal business. Promoted and marketed real estate appraisal business to banks, lenders, mortgage brokers, developers, investors/owners, attorneys and accountants. Conducted and performed inspections, researched and analyzed (sales, rents, operating expenses, rates, yields, highest and best use and feasibility studies), valuations and appraisal reports. Prepared/update regional and market/neighborhood analysis. Trained, supervised and reviewed appraisal work of subordinated staff appraisers, including certified and trainees. CITY OF MIAMI (5-77/5-93), Miami, Florida Position: Property & Lease Manager Property & Lease Management Division G.S.A. Department, 11/92 — 5/1993 Department of Development, 1990 G.S.A. Department, 1986 Finance Department, 6/84 -1985 Position: Acting Assistant Director Treasury Management Division Finance Department, 6/83 — 6/84 Position: Lease Manager Property & Lease Management Division Finance Department, 1982 Page 160 Position: Projects Supervisor APPRAISAL Administration Division FINANCIAL Community Development Dept., 1980 Position: Administrative Assistant TRAINING Administration Division Community Development Dept., 1979 Position: Personnel Officer Employment & Training Division Human Resources Dept., 1977 DECOR INTERNATIONAL (10-76/9-77) Miami, Florida Position: Sales Representative MIAMI-DADE COUNTY (10-75/1-77) Miami, Florida Position: Program Director/ Unit Supervisor Department of Health & Human Resources STATE OF FLORIDA (10-74/10-75) Miami, Florida Position: Youth Counselor Department of Health & Human Resources LATERAL VALUE ADJUSTMENT BOARD (2008 to 2014/2016 to Present) EMPLOYMENT Circuit and County Courts Miami -Dade County, Florida Position: Special Magistrate HEDG-PETH & GALLAHER, INC., (1997/2001) Miami, Florida Position: Staff Appraiser BLAZEJACK & COMPANY (1-88/7/89) Miami, Florida Position: Staff Appraiser THE REPUBLIC APPRAISAL CO. (9-86/12-87) Miami, Florida Position: Staff Appraiser REAL ESTATE CCIM INSTITUTE APPRAISAL Investment Analysis, C-104, 2010 FINANCIAL User Decision Analysis, C-103, 2008 INVESTMENT Market Analysis, C-102, 2006 TRAINING Financial Analysis, C-101, 2006 APPRAISAL INSTITUTE Advanced Income Capitalization, 2001 Standard of Professional Practice C, 1999 Report Writing and Valuation Analysis, 1996 Advanced Sales Comparison & Cost Approaches, 1994 Page 161 (Continued) Standard of Professional Practice B, 1994 Standard of Professional Practice A, 1994 Case Studies in Real Estate Valuation, 1990 Basic Valuation Procedures, 1989 Capitalization Theory & Technique B, 1987 Capitalization Theory & Technique A, 1986 Real Estate Appraisal Principles, 1986 NATIONAL SOCIETY OF FEE APPRAISERS, 1980 Miami Dade Community College Residential Appraisal, 1980 BERT ROGERS SCHOOL OF REAL ESTATE Real Estate Brokers License Course, 1987 Real Estate License Course, 1983 HEAVENER, OGIER SCHOOL OF REAL ESTATE Principles and Practice of Real Estate, 1982 NORTHWEST CENTER Leasing Commercial Real Estate, 1986 COMMUNITY US DEPARTMENT OF HUD & FLORIDA COMMUNITY DEVELOPMENT DEVELOPMENT EDUCATION CONSORTIUM TRAINING Florida Community Development Administration Curriculum, 1981 HUMAN INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION RESOURCES Job Analysis, 1984 TRAINING DUN & BRADSTREET Effective Supervisors, 1980 Effective Techniques for Personnel, 1978 UNIVERSITY OF MIAMI / NIDA Training for Trainers, 1976 STATE OF FLORIDA HRS/DYS Public Relations, 1975 Interviewing Techniques, 1975 REAL ESTATE APPRAISAL INSTITUTE APPRAISAL Business Practices & Ethics, 2016 SEMINARS Developing a Supportable Work -file, 2016 Tightening the Appraisal, 2016 USPAP-Florida Law/Update, 2016 Analyzing Operating Expenses, 2014 Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets, 2012 Valuation for Financial Reporting, 2009 Real Estate Finance Statistics & Valuation Modeling, 2009 Uniform Appraisal Standards for Federal Acquisitions, 2003 Page 162 PROFESSIONAL ASSOCIATIONS BUSINESS VENTURES/ EXECUTIVE POSITIONS LICENSES Page 163 Case Studies in Commercial Highest & Best Use, 2001 Understanding & Testing DCF Valuation Models, 2001 Apartment Buildings, 1999 Small Hotel/Motel Valuation, 1998 Alternative Residential Reporting Forms, 1997 Dynamics of Office Building Valuation, 1995 Understanding Limited Appraisals — General, 1994 Introduction to Revised URAR (FNMA 1004), 1993 Appraisal Reporting of Complex Residential Properties, 1993 Condemnation, Legal Rules and Appraisal Practices, 1991 Rates, Ratios, and Reasonableness, 1990 APPRAISAL INSTITUTE Member Appraisal Institute, MAI, SRA Member No. 11838 AMERICAN SOCIETY OF APPRAISERS, ASA, Urban, relinquished - 2012 CERTIFIED COMMERCIAL INVESTMENT MEMBER CCIM, No. 18488, relinquished - 2016. Miller Ludlam LLC - 2001-2008 Shopping Center - Partner 4-B Warehouses, LLC — 2006-2012 Multitenant Warehouse — Managing Partner Collins Tower Condominium — 2006-2014 President Appraisal Institute South Florida Chapter President 2015 Vice President — 2014 Secretary 2012 and 2013 Treasurer 2011 Director — 2009 — 2010 Candidate for Miami Dade County Appraiser August 26, 2014 - (3rd place) State of Florida Certified General Real Estate Appraiser No. RZ — 0000397 State of Florida Real Estate Broker No. BK — 01411206 State of Florida General Real Estate Appraiser Instructor No. GA — 1000073 — (Relinquished 2013) Page 164 APPRAISAL REPORT WAGNER SQUARE SITE LOCATED AT: 1455 N.W. 17TH STREET MIAMI, FLORIDA PREPARED FOR: CITY OF MIAMI 444 S.W. 2ND AVENUE MIAMI, FLORIDA AS OF: NOVEMBER 20, 2016 PREPARED BY: QUINLIVAN APPRAISAL, P.A. 7300 NORTH KENDALL DRIVE- SUITE 530 MIAMI, FLORIDA 33156 J. Mark Quinlivan, MAI State Certified General Appraiser RG 0000112 November 28, 2016 QUINLIVAN APPRAISAL A PROFESSIONAL ASSOCIATION 7300 NORTH KENDALL DRIVE, SUITE 530 MIAMI, FLORIDA 33156 Telephone (305) 663-6611 Thomas F. Magenheimer, MAI Fax (305) 670-4330 State Certified General Appraiser jmgmaigaol.com RG 0000553 Jacqueline Lorenzo City of Miami Real Estate & Asset Management Department 444 S. W. 2nd Avenue, Third Floor Miami, Florida 33130 Dear Ms. Lorenzo: In accordance with Purchase Order No. 1700712, I have prepared this Appraisal Report covering the following described property: A 42,309 square foot land parcel known as the Wagner Square Site, located at 1455 N.W. 17th Street, Miami, Florida. The purpose of this Appraisal is to estimate the Market Value of the fee simple interest and Market Rent of the described property as of November 20, 2016, being one of the dates of personal inspection. To the best of my knowledge, the opinions and conclusions were developed and this Appraisal Report was prepared in accordance with the standards and reporting requirements of the most current Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation. This appraisal is not based on any hypothetical conditions, extraordinary assumptions, limiting conditions or legal instructions. The narrative Appraisal Report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. Ms. Jacqueline Lorenzo City of Miami November 28, 2016 Page 2 Based on the inspection of the property and the investigation and analyses undertaken, I have formed the opinion that, as of November 20, 2016, the subject property had a Market Value and Market Rent of: MARKET VALUE OF LAND SITE $5,075,000 ANNUAL MARKET RENT OF LAND SITE $380,625 Respectfully submitted, Thomas F. Magenheimer, MAI State -Certified General Appraiser Certification Number: RZ0000553 TFNVjb (16-096) TABLES OF CONTENTS PAGE COVER PAGE TRANSMITTAL LETTER TABLE OF CONTENTS CERTIFICATION OF VALUE.................................................................................................... 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS .................................................. 3 INTRODUCTION.......................................................................................................................... 7 INTRODUCTION..................................................................................................................... 8 IDENTIFICATION OF THE PROPERTY............................................................................. 8 LOCATION............................................................................................................................... 8 PURPOSE AND DATE OF APPRAISAL............................................................................... 8 INTENDED USE AND USER OF APPRAISAL..................................................................... 8 LEGALDESCRIPTION........................................................................................................... 8 PROPERTY RIGHTS APPRAISED....................................................................................... 9 DEFINITION OF MARKET VALUE..................................................................................... 9 DEFINITION OF MARKET RENT........................................................................................ 9 ASSESSMENT AND TAXES - 2016...................................................................................... 11 OWNER OF RECORD AND ADDRESS.............................................................................. 11 THREE-YEAR HISTORY OF TITLE.................................................................................. 11 ESTIMATED EXPOSURE TIME......................................................................................... 12 ESTIMATED MARKETING PERIOD................................................................................ 12 SCOPE OF THE APPRAISAL...................................................................................................13 LOCATION ANALYSIS..............................................................................................................15 COUNTYDATA...................................................................................................................... 16 NEIGHBORHOOD DATA..................................................................................................... 25 SITEDATA.................................................................................................................................. 28 ZONING....................................................................................................................................... 31 HIGHEST AND BEST USE....................................................................................................... 34 THE APPRAISAL PROCESS..................................................................................................... 37 LANDVALUEANALYSIS......................................................................................................... 39 ESTIMATE OF MARKET RENT.............................................................................................. 57 ADDENDA................................................................................................................................... 66 ASSUMPTIONS AND LIMITING CONDITIONS QUALIFICATIONS CLIENT LIST ENGAGEMENT LETTER CER TIFICA TION OF VALUE The undersigned hereby certifies that, to the best of my knowledge and belief: (A) The statements of fact contained in the report are true and correct. (B) The reported analyses, opinions and conclusions are limited only by the assumptions and limiting conditions set forth, and are my personal, unbiased professional analyses, opinions and conclusions. (C) I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. (D) I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. (E) My engagement in this assignment is not contingent upon developing or reporting predetermined results. (F) The appraiser's compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Furthermore, the appraisal assignment is not based on a requested minimum valuation, a specific valuation or the approval of a loan. (G) The appraiser's analyses, opinions and conclusions are developed, and this report is prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the State of Florida for state -certified appraisers. (H) Use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. (I) Thomas F. Magenheimer has made a personal inspection of the property that is the subject of this report. (J) No one provided significant professional assistance to the person signing this report. (K) The reported analyses, opinions, and conclusions are developed, and this report is prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. QUINLI"NAPPRAISAL 1 (z) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. (M) The undersigned performed an appraisal review of a market value appraisal of the property prepared by Waronker & Rosen, Inc. for the U. S. Department of Veterans Affairs. dated March 23, 2016. As of the date of this report, J. Mark Quinlivan and Thomas F. Magenheimer have completed the requirements under the continuing education program for The Appraisal Institute. Based on the inspection of the property and the investigation and analyses undertaken, subject to the assumptions and limiting conditions set forth in the Addendum of this report, I have formed the opinion, as of date of valuation, the subject property had a Market Value and Market Rent of: MARKET VALUE OF LAND SITE $5,075,000 ANNUAL MARKET RENT OF LAND SITE $380,625 THOMAS F. MAGENHEIMER, MAI STATE -CERTIFIED REAL ESTATEAPPRmsER CERTmICATIONNumBER: RZ0000553 QUINLI"NAPPRAISAL SUMMARY OF SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal Market Value & Market Rent Property Rights Appraised Fee Simple Location 1455 N.W. 17th Street, Miami, Florida Legal Description A portion of Tract "A", WAGNER SQUARE, according to the Plat thereof as recorded in Official Records Book 162, Page 66 of the Public Records of Miami -Dade County, Florida. Land Size 42,309 Square Feet Improvements None Zoning T6-80, Urban Core Zone, Open Highest and Best Use: Office, civic or multiple family residential use Land Value Indication $ 5,075,000 Final Estimate of Market Value $ 5,075,000 Estimated Annual Market Rent $ 380,625 Date of Inspection November 20, 2016 Date of Value Estimate November 20, 2016 Date of Report November 28, 2016 QUINLI"NAPPRAISAL 3 LOOKING NORTHEASTERLY AT SUBJECT FROM N. W. 15TH AVENUE LOOKING SOUTHEASTERLY AT SUBJECT FROM N. W. 15TH AVENUE QUINLI"NAPPRAISAL 1 � t d( _ f i +l 1�'� r . • rlr. p � f w (! 3 l �'�.. •� roti r Alml�",ti INTRODUCTION QUINLI"NAPPRAISAL INTRODUCTION IDENTIFICATION OF THE PROPERTY A 42,309 square foot site known as the Wagner Square Site. The site is presently vacant. LOCATION 1455 N.W. 17th Street, Miami, Florida PURPOSE AND DATE OF APPRAISAL The purpose of this Appraisal is to estimate the Market Value and Market Rent of the property as of November 20, 2016, being one of the dates of personal inspection. INTENDED USE AND USER OF APPRAISAL The intended use of this appraisal is to estimate the Market Value for asset evaluation for a possible sale or rental of the property. The intended user is the City of Miami, Florida. LEGAL DESCRIPTION A portion of land located in the NW t/4 of Section 35, Township 53 South, range 41 East, City of Miami, Miami -Dade County, Florida, more particularly described as follows: Begin at the Southwest corner of Tract "A", WAGNER SQUARE, according to the plat thereof, as recorded in Plat Book 162, Page 66, of the Public Records of Miami _Dade County, Florida; thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23 feet; thence N00°10'33"W a distance of 65.79 feet to a point; thence N89°49'27"E a distance of 201.77 feet to a point; thence N00°10'33"W a distance of 96.77 feet to a point on the North line of said Tract "A"; thence N89°57'46"W along and on the North line of said Tract "A" a distance of 259.25 feet to the NW corner of said tract "A"; thence S00°15'48"E along the West line of said Tract "A" and the East Right -of -Way of NW 15th Avenue, a distance of 163.33 feet to the Point of Beginning. A portion of land located in the NW'/4 of Section 35, Township 53 South, Range 41 East, City of Miami, Miami -Dade County, Florida, more particularly described as follows: QUINLI"NAPPRAISAL s Commence at the southwest corner of Tract "A", WAGNER SQUARE, according to the plat thereof, as recorded in Plat Book 162, Page 66, of the Public Records of Miami - Dade County, Florida; thence S89°59'04"E along and on the South line of said Tract "A" a distance of 57.23 feet to the Point of Beginning; thence N00°10'33"W a distance of 65.79 fee to a point; thence N89°49'27"E a distance of 201.77 feet to a point; thence S00°10'33"E a distance of 66.46 feet; thence N89°59'04"W along and on the South line of said Tract "A" and its extension thereof a distance of 201.77 feet to the Point of Beginning. PROPERTY RIGHTS APPRAISED The property is appraised in fee simple: a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power and taxation, as well as utility easements of record. 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 interest; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75, No. 237, Page 77472 DEFINITION OF MARKET RENT Market Rent is the most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations; the lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a Q UINLIVAN APPRAISAL lease contract as of a specified date and the passing of the leasehold form lessor to lessee under conditions whereby: 1. Lessee and lessor are typically motivated 2. Both parties are well informed or well advised, and acting in what they consider their best interests. 3. A reasonable time is allowed for exposure on the open market. 4. The rental payment is made in terms of cash in U.S. Dollars, and is expressed as an amount per time period consistent with the payment schedule of the lease contract. 5. The rental amount represents the normal consideration for the property leased unaffected by special fees or concessions granted by anyone associated with the transaction. Source: The Dictionary of Real Estate Appraisal, Fourth Edition QUINLI"NAPPRAISAL 10 ASSESSMENT AND TAXES — 2016 The subject property is assessed under the jurisdiction of the City of Miami, Florida. The assessment for the property is established each year as of January 1st by the Miami -Dade County Property Appraiser's Office at 100% of "Just Value." Just Value has been equated to Market Value less closing costs. While the State of Florida requires real estate to be assessed at 100% of Just Value, in reality the ratio of the assessed value to sales price is generally below 100%. Folio Numbers County Market Value Assessed Value Millage Rate: Tax Amount: 01-3135-087-0010 01-3135-087-0012 Land $ 1,692,360 Improvements $ 0 Total $ 1,692,360 RUMEM $21.8256 per $1,000 $0.00 tax exempt OWNER OF RECORD AND ADDRESS City of Miami 444 S. W. 2nd Avenue Miami, FL 33125 THREE-YEAR HISTORY OF TITLE According to a search of the Public Records of Miami -Dade County there have been no sales transactions of the subj ect property during the past three years. QUINLI"NAPPRAISAL 11 ESTIMATED EXPOSURE TIME Exposure time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. In estimating a reasonable exposure time for the subject property, the appraiser has taken the following steps: Discussion with buyers, sellers, brokers and/or a review of the multiple listings of vacant sites in the area related to historic marketing periods. Based on the above sources, exposure time is estimated to have been six months for the subject property. ESTIMATED MARKETING PERIOD The estimated value of the subject is predicated upon a normal marketing period. A normal marketing period is generally defined as the most probable amount of time necessary to expose and actively market a property on the open market to achieve a sale. Implicit in this definition are the following assumptions: (A) The property will be actively exposed and aggressively marketed to potential purchasers through marketing channels commonly used by sellers and buyers of similar type properties. (B) The property will be offered at a price reflecting the most probable markup over market value used by sellers of similar type properties. (C) A sale will be consummated under the terms and conditions of the definition of Market Value required by the regulation. In order to estimate the marketability of this property, the sales activity in this market area was reviewed over the past three years, multiple listings were reviewed and real estate brokers who operate in this area were interviewed. Based on the above sources, the subject property could be sold within a six-month time period. QUINLI"NAPPRAISAL 12 SCOPE OF THE APPRAISAL QUINLI"NAPPRAISAL 13 SCOPE OF THE APPRAISAL The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied, all based upon the following problem -identifying factors stated elsewhere in this report. This appraisal of the subject has been presented in the form of an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the USPAP. The value of a site can be estimated by various methods which include Direct Sales Comparison, Allocation, Extraction, Development Approach, Land Residual or Ground Rent Capitalization. However, the Direct Sales Comparison Approach is the most preferred and utilized technique when sales of comparable sites are available. The other methodologies are indirect techniques which are generally used when an area is mostly developed and sales of comparable sites are scarce. The Direct Sales Comparison Method was utilized in valuing the subject property due to the availability of recent sales. In the Direct Sales Comparison Method, sales of similar recently sold properties with a similar highest and best use as the subject property are analyzed, compared and adjusted by time, property characteristics and location to indicate the Market Value of the subject property. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. Data related to the subj ect property was derived from various sources including but not limited to the Miami -Dade County Property Appraiser's Office, Miami -Dade County plats, FEMA flood zone maps, Land Development Regulations of the Miami -Dade County, and tax roll information provided by the Miami -Dade County Property Appraiser's Office. Comparable sale sources include the Miami -Dade County Property Appraiser's Office, Board of Realtors' Multiple Listing Services, the Public Records of Miami -Dade County as maintained by the Miami -Dade County Clerk of the Courts, IMAPP sales service, and LoopNet. Sales prices are typically confirmed with a party to the transaction, i.e., buyer, seller, real estate agent or attorney to the transaction. A legal description and survey was provided by the client. The size and dimensions of the site are estimated based on information available on the survey. A search for land sales and listings in the subject market area and the suburban areas of Miami - Dade County was conducted. The initial sales period researched were from January of 2014 through the date of valuation. The sales all have similar zoning classifications and highest and best uses as the subject property. Several other sales were considered, but were not included because there was too wide a difference in physical factors, location and time. QUINLI"NAPPRAISAL 14 L 0 CA TION ANAL YSIS QUINLI"NAPPRAISAL 15 COUNTY DATA Miami -Dade County - Location and Size Miami -Dade County, which comprises the metropolitan area of Miami, is situated on the southeast tip of the state of Florida. It is bordered on the east by the Atlantic Ocean, on the west by Monroe and Collier Counties, on the north by Broward County, and on the south by Monroe County (the Florida Keys). Miami -Dade County, the largest county in area and population in the state of Florida, covers an area of 2,054 square miles with an altitude ranging from sea level to 25 feet. Water covers 354 square miles of the County. Although the County is relatively large, approximately half of the total area is comprised of the Everglades, which is a natural area that will not be developed. Therefore, only the eastern section of Miami -Dade County encompasses the area which is currently developed or available for future development. Miami -Dade County's location, its southern latitude and proximity to the Gulf Stream provide for mild winters and pleasant summers. Population The state of Florida has increased rapidly in population from 9,740,000 in 1980 to 12,937,926 in 1990 and 15,982,378 in 2000. The 2010 population of Florida was 18,801,310, an increase of 17.6% over the 2000 population. Miami -Dade County's population increased from 1,626,000 in 1980 to 1,937,094 in 1990, reflecting an average annual compounded growth rate of 1.77%, compared with 2.88% for the state of Florida. By 2000, Miami -Dade County's population increased to approximately 2,253,362. The population grew to 2,496,435 by the Year 2010, an increase of 10.8% over the 2000 population. By the Year 2014 the population increased to 2,604,265, an increase of 4.3% over the 2010 population. Miami -Dade County's population growth during the last four decades has been dramatic especially in relation to national trends. From 1950 to 1990 the United States population increased by 60% while the population of Miami -Dade County has almost quadrupled from 495,084 to 1,937,000. During this period, the state of Florida was elevated from the 20th most populous state to the 4th in 1990 and continues to be the fourth most populous state. During the 1960s, the major increase in Miami -Dade County's population was due to the large immigration of Cubans. Today, Cuban and other Spanish speaking people comprise approximately 62% of Miami -Dade County's population. The increase in Hispanic population has had favorable effects on the local economy and has helped to create a multi -national cultural environment in the area. QUINLI"NAPPRAISAL 16 The overall population of Miami -Dade County is well dispersed throughout the entire area, yet has several key areas of concentration. During the 1960s, several sub -areas accounted for approximately 70% of the growth. These areas include Hialeah, northern Miami -Dade County, the Beach area, the Miami River area, the area southwest of Miami International Airport, as well as the Kendall and Cutler Ridge areas. In the first half of the 1970s, population growth continued in an uneven fashion especially in the urban fringes. Since 1970, approximately three-fourths of the total population growth for the County has occurred in the unincorporated areas. The older centrally located cities such as Miami, Miami Beach and Coral Gables have grown at modest rates from 1970 to 1990. Unincorporated Miami - Dade County has evidenced the most rapid growth which continues to occur in areas in northeast Miami -Dade County (Aventura), as well as the currently expanding southwest area, especially in sections of Flagler Street, S.W. 8th Street, North Kendall Drive and Homestead. Population trends indicate that most of the population growth in Miami -Dade County between 2010 and 2015 will occur in outlying areas such as North Miami Beach, the Kendall area west of the Florida Turnpike, the S.W. 8th Street area west of the Florida Turnpike, the Hialeah -Miami Lakes area, as well as those areas both east and west of U.S. Highway 1 between Cutler Ridge and Florida City. Employment Trends The dominant characteristic of Miami -Dade County is that it is primarily trade and service based. Personal, business and repair services have had a substantial increase in importance in the economic base over the last decade. The major sectors of the economy include services, wholesale and retail trade, transportation, communications, public utilities, government and manufacturing. The most dominant industries which form the County's economic base are construction and tourism. Tourism is Miami -Dade County's biggest industry with an estimated 13.9 million visitors in 2012 contributing to more than 50 percent of the area's economy. Aviation and related industries are responsible for another large segment of the economy. The largest employer in Miami -Dade County is the Miami -Dade County School Board, followed by Miami -Dade County, Federal Government, State of Florida, Jackson Health System, American Airlines, University of Miami, Baptist Health Systems of South Florida, AT&T, and Florida Power and Light. Assuming additional importance is the growing prominence of Miami - Dade County as a center for international trade, finance and tourism. The establishment of Miami as the "Gateway of the Americas" should provide the area with a much needed degree of economic diversification. This should enable Miami -Dade County to weather slowdowns in the national economy by an increase of trade through the Port of Miami, growth of international arrivals at the airport, the Free Trade Zone, and the substantial foreign investment in the local economy, particularly in real estate. In October of 2015, Florida's unemployment rate was 5.1 percent, down from 13.7 percent in November of 2014 and a high of 10.7 percent in March of 2011. The unemployment rate for Miami -Dade County in October of 2015 was 6.2 percent, down from 8.1 percent a year earlier. QUINLI"NAPPRAISAL 17 TABLE 1 ESTIMATES OF MIAMI-DADE COUNTY TOURIST TRENDS Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures Figures for 2014 indicate 14,563,200 overnight visitors came to Miami -Dade County, a 2.4% increase from 2013. In 2013, the total overnight visitors increased to 14,218,900, an increase of 2.2% over 2012. TABLE 2 ESTIMATES OF DOMESTIC VISITORS BY REGION DOMESTIC MARKET INTERNATIONAL DOMESTIC TOTAL 2008 6,169,043 6,662,546 12,831,589 2009 5,684,400 6,251,564 11,935,964 2010 6,060,100 6,544,000 12,604,100 2011 6,461,900 6,908,600 13,370,600 2012 6,801,200 7,102,032 13,903,232 2013 7,131,700 7,087,200 14,218,900 2014 7,260,000 7,303,200 14,563,200 Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures Figures for 2014 indicate 14,563,200 overnight visitors came to Miami -Dade County, a 2.4% increase from 2013. In 2013, the total overnight visitors increased to 14,218,900, an increase of 2.2% over 2012. TABLE 2 ESTIMATES OF DOMESTIC VISITORS BY REGION DOMESTIC MARKET 2010 2011 2012 2013 2014 NEW YORK 25.5% 25.3% 25.5% 25.9% 26.0% CHICAGO 5.9% 5.9% 5.8% 5.9% 5.9% PHILADELPHIA 5.8% 5.7% 5.7% 5.6% 6.0% BOSTON 4.3% 4.3% 4.3% 4.3% 4.3% ATLANTA 3.7% 3.8% 3.9% 3.9% 3.9% WASHINGTON, DC 2.8% 2.8% 2.8% 2.8% 2.8% DALLAS 2.6% 2.6% 2.7% 2.7% 2.7% DETROIT 2.1% 2.1% 2.1% 2.0% 1.9% LOS ANGELES 1.9% 2.0% 1.9% 2.1% 2.1% HOUSTON 1.7% 1.8% 1.8% 1.8% 1.8% Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures QUINLI"NAPPRAISAL 18 Table 2 indicates that the bulk of domestic visitors to Miami -Dade County originate from the New York (26%), Chicago (5.9%) and Philadelphia (6.0%) market areas. Of the top ten domestic market visitors, the majority (48.2%) are from northeastern market areas. TABLE 3 ESTIMATES OF INTERNATIONAL VISITORS BY REGION REGION 2010 2011 2012 2013 2014 EUROPEAN COUNTRIES 21.6% 20.2% 20.0% 19.2% 19.7% CARIBBEAN COUNTRIES 11.4% 10.8% 10.5% 10.0% 10.4% CENTRAL AMERICAN COUNTRIES 8.7% 8.3% 8.0% 7.8% 8.2% SOUTH AMERICAN COUNTRIES 46.8% 49.2% 50.3% 52.1% 50.4% CANADA 9.7% 9.7% 9.4% 9.2% 9.5% OTHER COUNTRIES 1.8% 1.8% 1.8% 1.7% 1.8% TOTAL 100% 100% 100% 100% 100% Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures Table 3 shows that the bulk of international visitors to Miami -Dade County originate from Central and South American Countries (58.6%), followed by European Countries (19.7%) and Caribbean Countries (10.4%). England and Germany accounted for the largest proportion of European visitors. In 2014 there were a total of 4.939 million passengers passing through the Port of Miami. During 2014, the number of Port of Miami passengers increased 21.1% from 2013. The passenger count for 2015 is expected to increase to nearly 5.0 million with the introduction of three new ships to the port. Through June of 2015 approximately 11,051,259 passengers arrived through Miami International Airport. The passengers arriving at the airport increased 6.2% from the same period the previous year. The arrivals at the airport are fairly evenly distributed between international and domestic passengers. Through June 2015, domestic arrivals totaled 5,732,473 and international arrivals totaled 5,318,786. There are approximately 50,901 motel and hotel rooms in 392 lodging facilities in Greater Miami and the Beaches. The area had an occupancy rate of 80.8 percent in 2015, down 0.2% from 2014. The airport area had the highest occupancy rate as of June 2015 at around 90.2%. The average room rate for hotel rooms in Miami -Dade County was $217.62 in 2015, up from $202.20 in 2014. Therefore, the average hotel room rates in 2015 indicate an increase of 7.6% over the 2014 rate. QUINLI"NAPPRAISAL 19 The first in a series of new luxury properties opened in February 2004 when the 380 -room Ritz Carlton opened in Miami Beach. In May of 2005, the 210 -room Le Meridian opened in Sunny Isles Beach. Three other new hotels with a total of 271 rooms opened in Miami Beach during 2005. In 2014, new hotel openings included the Courtyard Cadillac Miami Beach Hotel (93 - rooms) in Miami Beach, EB Hotel Miami (133 -rooms) in Miami Springs, and the Grand Beach Hotel (268 -rooms) in Surfside. New hotels expected to open in 2015 include Aloft South Beach (235 -rooms) in Miami Beach, East Hotel (263 -rooms) in the Brickell Financial District, The Feena Hotel (169 -rooms) in Miami Beach, the Nautilus (251 -rooms) in Miami Beach, and Langford (126 -rooms) in downtown Miami. Miami -Dade Financial Resources Over the course of the last decade, Greater Miami has evolved into a major international financial center. Domestic and international businesses find convenient access to a full array of services provided by locally -based state and national commercial banks, savings and loan associations, foreign banks, non -depository credit institutions, securities and commodities brokers and insurance companies. Greater Miami has the largest concentration of domestic and international banks south of New York City. With more than 90 percent of the state's foreign banks operating offices in Miami, this market dominates international banking in Florida. Overall, about 150 domestic banks, foreign banks and Edge Act banks operate in Greater Miami. The greatest concentration is located along Brickell Avenue in downtown Miami. Transportation Miami -Dade County has an extensive expressway system with access to all points in the County. However, due to the rapidly increasing population, some of the expressways, especially Interstate 95, are becoming overburdened. In 1985 Miami -Dade County completed a 20.5 mile elevated rapid transit system. This system originally extended southward from downtown Miami to Dadeland, paralleling U.S. Highway 1 and northwesterly from downtown Miami to Hialeah. In 1999, the system was extended about a mile from Hialeah to the Palmetto Expressway at NW 74th Street. An expansion to the Miami International Airport opened in 2013. In conjunction with this system, there is a Downtown People Mover Automated Transit system which encircles the central business district of Miami and extends south to the Brickell area and north to the Omni area. Miami -Dade County is served by the CSX and Florida East Coast Railroads for freight and Amtrak Rail, Greyhound and Trailways Interstate bus lines for passenger service. Miami International Airport, one of the nation's largest and busiest, had 307,503 aircraft arrivals and departures through September 2015, an increase of 2.14% over the previous year. The airport is currently undergoing a $5.4 billion expansion. A South Terminal has recently been completed and a North Terminal completed in 2013 and a fourth runway has been constructed. QUINLI"NAPPRAISAL 20 Miami has become a port of embarkation for airlines and ships bound for Central and South American Countries. The Port of Miami, besides being the largest passenger port in the nation, is also important as a cargo center with a 2014 annual tonnage of approximately 7.7 million, down 3.5% from 7.981 million in 2013. The port's traditional customer base has been Europe, China, Latin America and the Caribbean, accounting for 65% of the port's total volume. Miami's comprehensive transportation system and its strategic location have enabled it to become an important international transportation center, providing commercial access to Latin America and the Caribbean. Government Miami -Dade County is comprised of unincorporated areas, as well as 36 municipalities, the largest of which is the city of Miami. Miami -Dade County is governed under a modified two-tier metropolitan government. The purpose of this type government was to establish one governing body for the county, and to establish one supply of services such as fire, police, etc. for the county. The upper tier is the County, which provides broad "regional" or county functions, such as metropolitan planning, welfare, health and transit services. The thirty-six municipalities represent the lower tier of government, providing a varying array of services within their jurisdictional boundaries. The County also maintains lower tier functions, such as the provision of municipal -type services, including police and fire, to the unincorporated areas and certain municipalities on a negotiated basis. The County operates under the Commission -Manager form of government. Legislative and policy-making authority is vested in the elected thirteen -member Board of County Commissioners; the Commission appointed County Manager is the chief administrator. Miami - Dade County has operated under the metropolitan form of government since 1957, when the Home Rule Charter was passed by the local electorate. Prior to Home Rule, the County had to rely on the State Legislature for the enactment of its laws. County government had not been able to respond to the tremendous demand for municipal services in this rapidly urbanizing area, which is larger than the State of Rhode Island or Delaware. The need to combine services duplicated by the County and numerous cities was also clearly evident. The Charter permitted the limited County government to reorganize into a general purpose "municipal -type" government capable of performing the full range of public functions into an area wide operation. Real Estate The Miami -Dade County Office Market contains approximately 47.337 million square feet of office space. Approximately 31.0% of this space is located in the Miami central business district and adjacent Brickell Avenue, 25% in the Airport West area, and 15% in Coral Gables. The vacancy rate of office buildings in Miami -Dade County declined during the second quarter of 2015 to about 12.8%, down from 14% in 2013. During 2015, 804,359 square feet of office space is under construction in Miami -Dade County. During the second quarter of 2015, 328,500 square QUINLI"NAPPRAISAL 21 feet of office space was absorbed. Through the second quarter of 2015 a total of 804,360 square feet was absorbed in the market. Office rental rates in new buildings typically range from $23.00 to $43.00 per square foot. The low end of the range is for office space in the suburban markets. The upper end of the range is for first class office space in Downtown Miami, Brickell Avenue, Coconut Grove and Coral Gables. The Greater Miami Industrial Market consists of approximately 230.11 million square feet of industrial space in 8,808 buildings. The approximate percentage location of this space is as follows: MARKET AREA % OF TOTAL MARKET SPACE AIRPORT WEST 29.6% HIALEAH 25.6% MEDLEY 16.7% MIAMI LAKES 3.3% NORTHEAST DADE 4.8% NORTHCENTRAL DADE 14.9% SOUTH DADE 5.1% TOTAL 100% The county's vacancy rate for the overall Miami -Dade County industrial market as of the end of 2015 was 4.7%. The county's overall vacancy rate has fallen from a high of 10% in 2008. Airport West, the largest industrial area, had a vacancy rate of 5.3% as at the end of 2015. Industrial rental rates generally average $8.77 per square foot in the fourth quarter of 2014, up from an average of $8.39 per square foot in 2014. New industrial space under constructed in the third quarter of 2015 totaled 599,946 square feet, down from the 761,879 square feet under construction in the fourth quarter of 2014. Miami-Dade's single-family home sales increased 1.0% in August of 2015 in comparison with August of 2014 according to the Miami Association of Realtors. A total of 1,145 homes were reported sold in August of 2015. Through August of 2015, 9,599 homes sold in the county, which is on pace to exceed the 13,521 homes sold in 2014. In August of 2015, the median sales price for single-family units was $260,500, up 6.3% from the previous year. Existing condo sales showed an increase of 6.5% in August of 2015 from August of 2014 according to the Miami Association of Realtors. A total of 1,334 condo units were reported sold in August of 2015. The median sales price for condos increased to $204,000 or an increase of 11% during the same period. QUINLI"NAPPRAISAL 22 Marcus & Millichap Apartment Research Market Report shows a vacancy rate of 2.8% for rental apartment buildings in the Fourth Quarter of 2015, 30 basis points lower than in 2013. The vacancy rate had been declining steadily since 2006 due to the reduction of inventory caused by the large amount of condominium conversions. Since 2007 many ownership housing units, including both condominiums and single family houses, were placed into the rental market by developers and individual owners. Apartment rents in Miami -Dade County indicated an increase of 3.6% during 2015. New apartment construction during 2014 was nearly 2,500 units. New apartment construction during 2015 is expected to reach nearly 8,900 units. The Miami -Dade County retail market contains approximately 125.98 million square feet in 10,003 buildings. The major retail markets in Miami -Dade County include Hialeah, Coral Gables/South Miami -Dade, Aventura and Kendall. Rental rates typically range from $15.25 to $48.76 per square foot with rates in the $80 to $120 per square foot on South Beach. The overall Miami -Dade County vacancy rate for the third quarter of 2015 was approximately 3.4%, which is marginally up from 3.3% in the third quarter of 2014. As of the third quarter of 2015, 1,749,313 square feet of retail space was under construction. Conclusions In the future, one of the principal growth areas for Miami -Dade County is expected to be the international sector. Miami -Dade County, because of its geographic location and excellent transportation facilities, is well-suited to attract both business individuals and tourists from Latin America. It is already one of the principal shopping markets for Central and South Americans visiting the United States and one of the principal export points for goods and services destined for Latin America. The existence of major financial institutions, retail outlets, corporations and other business entities, coupled with its geographic location, transportation systems and planned international trade centers give Miami -Dade County an excellent opportunity for continued growth as an international center. During the next 12 months all segments of the commercial real estate market should continue to experience decreasing vacancy rates and increasing rental rates. With decreasing inventories for both single family residences ad condominium apartment units, sales activity is expected to rise during the next 12 months. QUINLI"NAPPRAISAL 23 LOCATION MAP ozu — Pem B R O W AR D s lj 1.I Dade EIS e C Coun Homestead ortn ' Hollywood p q �1 Hallandale Beach Ml ?)MW .... .............. ... Iv s Estates Avent ra Ojus gunny Isles Car C- N h Miami Beach Miami rjB,',,ayne fA1A }Bal Harbour Park BSurfside Miami Shores EI Portal North Bay Village SUBJECT PROPERTY x 1455 N.W. 17 Street Miami Biscayne Bay Aquatic Preserve Biscayne Bay Miami Beach Virginia Key Key Biscayne 4Key Biscayne Biscayne National Park Florida Keys QUINLI"NAPPRAISAL 24 NEIGHBORHOOD DATA The subject property is located in an area known as the Civic Center/Hospital District in the City of Miami, approximately two miles northwest of the Central Business District of Miami. The subject property may be further identified as being located on the east side of N. W. 15th Avenue, between N. W. 17th Street and N. W. 20th Street. The subject property is located in eastern periphery of the Civic Center/Hospital District. The boundaries of the neighborhood would be N.W. 20th Street to the north, the Don Shula Expressway (State Road 836) and the Miami River to the south, Interstate 95 to the east and N.W. 17th Avenue to the west. Interstate 95 is a major north/south artery in Miami -Dade County. Interstate 95 is a limited access freeway which extends northerly throughout the state from U.S. Highway 1 south of the central business district of Miami. The Don Shula Expressway (Highway 836) is a major east/west artery in Miami -Dade County. The Don Shula Expressway, a limited access freeway, extends westerly from Interstate 95 in the subject area to the Florida Turnpike Extension in Western Miami -Dade County. Access to the Don Shula Expressway from the subject area is provided by an interchange at N.W. 17th Avenue. There is also a mass transit system known as the Metrorail which runs through the middle of the Civic Center. This system extends from the Kendall area in the southwest region of the county to the Downtown area in the east, and then northwesterly into Hialeah. There are two stations within this neighborhood, the closest to the subject site being the Civic Center station located at N. W. 12th Avenue at N. W. 14th Street. Three major hospitals which generated the development of other medical and institutional growth are Jackson Memorial Hospital, University of Miami Hospital, and the Veterans Administration Hospital. All three hospitals are located within a five block radius of the subject property. Other medical and institutional buildings which evolved from these three major hospitals include but are not limited to the following: The Miami -Dade Community College Medical Center Campus, Lindsey -Hopkins Technical School, Jackson Manor Nursing Home, Highland Park General Hospital, Bascom Palmer Eye Institute, John Elliott Blood Bank, Louis Calder Memorial Library, National Parkinson Foundation, McLamore Children's Center, University of Miami M.R.I. Center, University of Miami Cancer Foundation Center, University of Miami Children's Cardiac Hospital, University of Miami Medical Research building, Mental Retardation Center, Ronald McDonald House of South Florida, United Cerebral Palsy Center, Rehabilitation Center for Crippled Children and Adults, etc. Governmental uses in the subject area include the City of Miami Municipal Shops, Miami -Dade County Health Department, County Jail, County Public Safety Department, Florida State Employment Center. QUINLI"NAPPRAISAL 25 The area north of N.W. 20th Street is zoned for industrial use and is primarily improved with older warehouse properties. There are also single family residences to the north which range in age from the 1920s to the 1970s. The Miami River and the nearby Port of Miami are the centers of maritime commerce in Miami - Dade County. The Port of Miami is located on Dodge Island, immediately east of the Central Business District of Miami. The Port of Miami primarily services passenger vessels and large container ships. The Miami River extends northwesterly from Biscayne Bay to approximately N.W. 42nd Avenue. From N.W. 42nd Avenue, the Miami River connects to the Miami Canal. At its mouth, the Miami River is the southern boundary of the Central Business District of Miami. Northwesterly of the Central Business District properties fronting on the Miami River include single family residences, residential condominiums, maritime cargo terminals, shipyards and marinas. In summary, the subject neighborhood, known as the Civic Center/Hospital District, is a fully developed area with hospital, governmental, public service uses and ancillary commercial uses. QUINLI"NAPPRAISAL 26 NEIGHBORHOOD MAP I Sewell Park D� ❑ r7j SUBJECT PROPERTY 1455 N. W. 17 Street m NW Stn. St 9El -u iEl L, 33 3 IF7F—I F—I[ =fin Lente S e.n e Ell QUINLI"NAPPRAISAL 27 SITE DA TA QUINLI"NAPPRAISAL 28 SITE DATA Dimensions and Shape: The site is basically rectangular. The site fronts for 163.33 feet on the east right-of-way line of N.W. 15th Avenue. The north property line thence extends easterly for 259.25 feet. The east property line thence extends southerly for 162.56 feet. The south property line thence extends easterly for 259.0 feet. Source: Survey Area: 42,309 square feet or 0.97 acres Source: Survey. Topography and Drainage: The site is level at an average elevation equivalent to the abutting streets. Flood Zone: Map No. 12086CO311L "AE" Special flood hazard areas subject to inundation by the 1% annual chance flood; base flood elevation nine feet. Soil and Subsoil: The immediate area of the subject site appears to have no unusual soil or subsoil conditions. Unusual conditions would be brought out by test borings. Utilities Water: Sewer: Electricity Telephone Street Improvements: Miami -Dade Water and Sewer Department Miami -Dade Water and Sewer Department Florida Power & Light Company AT&T N.W. 15th Avenue is asphalt paved with a dedicated width of 50 feet. N. W. 15th Avenue contains one northbound lane and one southbound lane. QUINLI"NAPPRAISAL 29 F� SITE SURVEY 520.201 5i) Sri QUINLI"NAPPRAISAL C 30 ZONING QUINLI"NAPPRAISAL 31 ZONING Under Ordinance of the City of Miami, Florida. Classification: T6-8-0 URBAN CORE ZONE - OPEN The urban core zone is comprised of the highest density and greatest variety of uses, including civic buildings of regional importance. A network of small blocks has thoroughfares with wide sidewalks, with steady tree planting and buildings set close to the frontage with frequent doors and windows. Permitted Principal Uses allowed by right include single family residences, duplexes, multifamily housing, community residences, home offices, bed & breakfasts, inns, hotels, offices, entertainment establishments, food service establishments, general commercial, places of assembly, recreational facilities, religious facilities, learning centers, and research facilities. Uses permitted by waiver include auto related establishments, marine related facilities, open air retail, infrastructure and utilities, community support facilities, marinas, public parking, transit facilities, childcare, colleges, schools, and vocational training. Uses permitted by exception include alcohol service establishments. Development Regulations Minimum Lot Size: 5,000 square feet Maximum Lot Size: 40,000 square feet Minimum Lot Width: 50 feet Maximum Lot Coverage: 80% Floor Lot Ratio: 5 Minimum Green Space: 10% Maximum Density: 150 dwelling units per acre Setbacks: Front (principal) 10 feet Front (secondary) 10 feet Side 0 feet Back 0 feet Minimum Height: Two stories Maximum Height: Eight stories QUINLI"NAPPRAISAL 32 Minimum Offstreet Parking: Principal Dwelling 1.5 spaces per unit Community Residence 1 space per staff member in addition to required parking Lodging 1 space per 2 lodging units Office 3 spaces per 1,000 square feet Commercial 3 spaces per 1,000 square feet Civic 1 space per every 5 seats of assembly area Educational 2 spaces per every 1,000 square feet of educational use QUINLI"NAPPRAISAL 33 HIGHEST AND BEST USE QUINLI"NAPPRAISAL 34 HIGHEST AND BEST USE Fundamental to the concept of value is the theory of highest and best use. Land is valued as if vacant and available for its highest and best use. The Appraisal Institute in The Dictionary of Real Estate Appraisal, Fourth Edition, defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and results in the highest value. Land has limited value unless there is a present or anticipated use for it; the amount of value depends on the nature of the land's anticipated use, according to the concept of surplus productivity. Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination, is generally regarded as the highest and best use of the land as though vacant. The highest and best use of a property as improved refers to the optimal use that could be made of the property including all existing structures. The implication is that the existing improvement should be renovated or retained as so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. In estimating the highest and best use there are essentially four stages of analysis: Possible Use. What uses of the site being appraised are physically possible? 2. Permissible Use (Le -al) What uses are permitted by Zoning and Deed Restriction, if any? 3. Feasible Use. Which possible and permissible uses will produce a net return to the owner of the site? 4. Maximally Productive. Among feasible uses, which use will produce the highest net return to the owner of the site? The highest and best use of the land (or site), if vacant and available for use, may be different from the highest and best use of the improved property. This is true when the improvements are not an appropriate use, but make a contribution to the total property value in excess of the value of the site. The following four point test is required in estimating the Highest and Best Use. The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. QUINLI"NAPPRAISAL 35 These tests have been applied to the subject property. In arriving at the estimate of Highest and Best Use, the subject site is analyzed as vacant and available for development. Possible Use The site fronts for 163 feet on N.W. 15th Avenue, a secondary street in the subject neighborhood. The site is a middle block location with adequate access and exposure. The site is rectangular, with sufficient street frontage and depth for for good functional utility. Public utility services are available in the abutting street right-of-way. The site is at an elevation suitable for development. The site contains 42,309 square feet, which equates to 0.97 of an acre. The size of the subject site would allow a modest scale development or a subdivision into several sites. The physical characteristics of the site would allow a moderate scale development of the site. Permissible Use Permissible or legal uses are those uses that are permitted by zoning or deed restrictions. There are presently no known private deed restrictions of record. The subject site is zoned for mixed residential and commercial uses. The maximum residential density permitted is 150 dwelling units per acre. The maximum building density is five times the lot area. The maximum building height is eight stories. Feasible Use/Maximally Productive Use The physical characteristics and zoning of the subject property permit a wide range of potential uses. The possible and permissible uses of the subject site include stores, offices, apartments, banks, hotels, and residential uses. The subject site is located on the western periphery of the Civic Center/Hospital District of Miami. This area is comprised of hospital, institutional and judicial uses. The Civic Center is a fully developed area with few vacant sites available for development. Many of the sites located west of N.W. 14th Avenue in the Civic Center area are improved with small office buildings and apartment buildings. The site is located adjacent to the parking lot for the VA Hospital. A civic or government use would be a likely use of the site. Conclusion Based on the above factors, the highest and best use of the site would be for an apartment, office or civic use related to the Civic Center or assemblage with abutting sites to create a larger site. QUINLI"NAPPRAISAL 36 THE APPRAISAL PROCESS QUINLI"NAPPRAISAL 37 THE APPRAISAL PROCESS The value of a site can be estimated by various methods which include Direct Sales Comparison, Allocation, Extraction, Development Approach, Land Residual or Ground Rent Capitalization. However, the Direct Sales Comparison Approach is the most preferred and utilized technique when sales of comparable sites are available. The other methodologies are indirect techniques which are generally used when an area is primarily built-up and sales of comparable sites are scarce. The Direct Sales Comparison Method was utilized in valuing the subject property due to the recent sales. In the Direct Sales Comparison Method, sales of similar recently sold properties with a similar highest and best use as the subject site are analyzed, compared and adjusted by time, property characteristics and location to indicate the Market Value of the subject site property. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. Data related to the subject property is derived from various sources including but not limited to the Miami -Dade County Property Appraiser's Office, Miami -Dade County plats, FEMA flood zone maps, Land Development Regulations of the City of Miami and tax roll information provided by the Miami -Dade County Property Appraiser's Office. Comparable sale sources include the Miami -Dade County Property Appraiser's Office, Board of Realtors' Multiple Listing Service, Tri -County Clipping Service and Loopnet. Sale prices are typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent or attorney to the transaction. In this report, sales of vacant land zoned for commercial use in the subject and competitive locations are gathered and analyzed. Comparable locations are considered to be the Civic Center region of Miami -Dade County. The sales were confirmed with the buyer, seller, broker or other person having knowledge of the price, terms, and conditions of the sale. QUINLI"NAPPRAISAL 38 LAND VALUE ANALYSIS QUINLI"NAPPRAISAL 39 LAND VALUE A value estimate is concluded by comparing the subject site to comparable land sales. Generally, the comparable land sales are adjusted by time, property, and location to indicate the Market Value of the subject site as though unimproved. This process is known as the Direct Sales Comparison Method. The Direct Sales Comparison Method is a process of analyzing sales of similar recently sold land parcels in order to derive an indication of the most probable sales price of the site being appraised. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. The following pages contain sales of similar land sites which have recently sold. Several other sales were considered, but were not included because there was too wide a difference in physical factors, location and time. Various analytical techniques may be used to identify and measure adjustments. The techniques of comparative analysis can be grouped into two categories: quantitative and qualitative. When quantitative analytical techniques are applied, mathematical processes are used to identify which elements of comparison require adjustment and to measure the amount of these adjustments. The primary quantitative techniques, Paired Data Analysis, is a process in which two or more market sales are compared to derive an indication of the size of the adjustment for a single characteristic. Ideally, the sales being compared will be identical in all respects except for the element being measured. Although paired data analysis is a theoretically sound method, it is sometimes impractical because only a narrow sampling of sufficiently similar properties may be available and it is difficult to quantify the adjustments attributable to all the variables. The primary qualitative techniques, Relative Comparison Analysis, is the study of the relationship indicated by market data without recourse to quantification. This technique is utilized because it reflects the imperfect nature of real estate markets. To apply the technique, the appraisers analyze comparable sales to determine whether the comparables' characteristics are inferior, superior, or equal to those of the subject property. A search is made of real estate market for all sales within the subject or competitive locations. While many sales were reviewed, the sales contained herein are considered most comparable to the subject properties as to all major factors of comparison. A detailed breakdown of each sale, a summary of the sales, a sales map and a value conclusion follows herein. QUINLI"NAPPRAISAL 40 LAND SALE I DATE: June 6, 2014 PRICE: $925,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 29183, Page 3388 FOLIO NUMBER: 01-3135-010-0570 GRANTOR: Larry S. Sazant, Trustee GRANTEE: American Business Continuity Domes, Inc. LEGAL: Lots 1 & 2, GRAND VIEW PARK, Plat Book 5, Page 58 of the Public Records of Miami -Dade County, Florida. LOCATION: 1428 N.W. 14th Avenue Miami, Florida SITE DESCRIPTION Dimensions: Irregular Size: 14,186 Square Feet 0.33 Acres Zoning: T6-8-0, Urban Core Zone Use at Sale: Vacant UNIT PRICE: $65.21 per square foot of land FINANCING: Cash REMARKS: The site is a corner location. QUINLI"NAPPRAISAL 41 SALE 1 QUINLI"NAPPRAISAL 42 LAND SALE 2 DATE: June 18, 2014 PRICE: $1,100,000 TYPE INSTRUMENT: Special Warranty Deed RECORDATION: O. R. Book 29204, Page 924 FOLIO NUMBER: 01-3135-013-0040 GRANTOR: University of Miami GRANTEE: American Business Continuity Domes, Inc. LEGAL: Lot 5, Block "A", L.C. BRANNING'S REsumivisim of LOTS 45-49 ST. JOHN PARK, Plat Book 9, Page 35 of the Public Records of Miami -Dade County, Florida. LOCATION: 1390 N.W. 14th Avenue Miami, Florida SITE DESCRIPTION: Dimensions: Irregular Size: 9,638 Square Feet 0.22 Acres Zoning: T6-80, Urban Core Zone Use at Sale: Abandoned five story office building UNIT PRICE: $114.13 per square foot of land FINANCING: Conventional first mortgage from C1 Bank of $1,500,000. REMARKS: The seller considered the existing improvement contributed no value to the site. QUINLI"NAPPRAISAL 43 SALE 2 QUINLI"NAPPRAISAL 44 LAND SALE 3 DATE: February 10, 2015 PRICE: $2,023,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 29515, Page 3016 FOLIO NUMBER: 01-3135-024-0020 UNIT PRICE: 01-3135-024-0030 GRANTOR: 1501 NW 13 Ct., LLC GRANTEE: HTG Miami -Dade 5, LLC LEGAL: Lots 1 & 2, GOLMEW PARK, Plat Book 11, Page 71 of the Public Records of Miami -Dade County, Florida. LOCATION: 1501 N.W. 13th Avenue Miami, Florida SITE DESCRIPTION Dimensions: Irregular Size: 18,870 Square Feet 0.43 Acres Zoning: CI -HD, Civic Zone Use at Sale: Vacant UNIT PRICE: $107.21 per square foot of land FINANCING: Conventional first mortgage from Citicorp of $1,210,000. REMARKS: The site is a corner location QUINLI"NAPPRAISAL 45 V a ■ • .,cam, '�•�_ �., LAND SALE 4 DATE: December 11, 2015 PRICE: $11,500,000 TYPE INSTRUMENT: Special Warranty Deed RECORDATION: O. R. Book 29887, Page 4130 FOLIO NUMBERS: 01-3135-026-0310 01-3135-026-0200 01-3135-026-0080 GRANTOR: Miami River House Associates, Ltd. GRANTEE: Riverhouse Development, LLC LEGAL: Lots 1-B, 2-13, 3-13, 4-13, 5-13, 6-13, 1-M, 2-M, 3-M & 4-M, COUNTRY CLUB ADDITION, Plat Book 8, Page 72 of the Public Records of Miami -Dade County, Florida. LOCATION: 1170 N.W. 11th Street 1035 N.W. 111 Court 1080 N.W. 11th Street Miami, Florida SITE DESCRIPTION: Dimensions: Irregular Size: 110,753 Square Feet 2.54 Acres Zoning: T6-80, Urban Core Zone T5-0, Urban Center Zone Use at Sale: Vacant UNIT PRICE: $103.83 per square foot of land FINANCING: Construction loan from Citizens Bank of $52,408,000. REMARKS: This sale is the assemblage of three adjacent sites in two transactions. The sites will be developed with mixed use commercial and residential project. QUINLI"NAPPRAISAL 47 . . � � ,• » - . � ^f xm . - � 2^ M I L L C R E E K LAND SALE 5 DATE: August 25, 2016 PRICE: $2,725,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 30220, Page 3622 FOLIO NUMBERS: 01-3135-019-3570 01-3135-019-3580 01-3135-019-3590 01-3135-019-3600 GRANTOR: Health Tower I, LLC GRANTEE: Central District Miami Redevelopment Group, LLC LEGAL: Lots 1, 2 & 3, Block "F", HIGHLAND PARK, Plat Book 2, Page 13 of the Public Records of Miami - Dade County, Florida. LOCATION: 1217 N. W. 81 Court Miami, Florida SITE DESCRIPTION: Dimensions: Size: Zoning: Use at Sale: UNIT PRICE: FINANCING: REMARKS: Irregular 19,686 Square Feet 0.45 Acres T6 -8L, General Urban Zone Vacant $138.42 per square foot of land Cash. This site is most of a city block QUINLI"NAPPRAISAL 49 Ott SALE 5 QUINLI"NAPPRAISAL 50 LAND SALE 6 DATE: August 25, 2016 PRICE: $2,725,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 30220, Page 3624 FOLIO NUMBERS: 01-3135-019-1270 01-3135-019-1280 01-3135-019-1290 01-3135-019-1300 01-3135-019-1310 GRANTOR: Health Tower 11, LLC GRANTEE: Central District Miami Redevelopment Group, LLC LEGAL: Lots 7, 8, 9 & 10, Block 7, HIGHLAND PARK, Plat Book 2, Page 13 of the Public Records of Miami - Dade County, Florida. LOCATION: 1313 N. W. 8th Avenue Miami, Florida SITE DESCRIPTION: Dimensions: 100 feet x 260 feet Size: 26,000 Square Feet 0.60 Acres Zoning: T6 -8L, General Urban Zone Use at Sale: Vacant UNIT PRICE: $104.81 per square foot of land FINANCING: Cash. REMARKS: This site is end of a city block. QUINLI"NAPPRAISAL 51 SALE 6 QUINLI"NAPPRAISAL 52 LAND SALES MAP 1 �m Uth St CI t tion 3 c SUBJECT PROPERTY x — Ilis 1455 N.W. 17 Street I %, ua Pal SALE 3 x 1501 N.W. 13 Courtcl C e raral- Ivi C Center Stati o i SALE 2 x Mld I m 1390 N.W. 14 Avenue SALE 6 x 1313 N.W. 8 Avenue 4 I 4' SALE 1 x U447 Plk 1428 N.W. 14 Avenue 7 tell Park 836 f SALE 5 x P li tiI 1217 N.W. 8 Court ation Y 4 SALE 4 x 1170 & 1080 N.W. 11 f� I Streetj 1035 N.W. 11 Court NW 9th 5t m -_.. (D - - J 933 Stj� i CD '�— QUINLI"NAPPRAISAL 53 SUMMARY OF LAND SALES CHARACTERISTICS SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 DATE OF SALE 6/6/14 6/18/14 2/10/15 12/11/15 8/25/16 8/25/16 SALE PRICE $925,000 $1,100,000 $2,023,000 $11,500,000 $2,725,000 $2,725,000 O.R. BOOK/PAGE 29183/3388 29204/924 29515/3016 29887/4130 30220/3622 30220/3624 ADDRESS 1455 N.W. 17 St. 1428 N.W. 14 Ave. 1390 N.W. 14 Ave. 1501 N.W. 13 Ct. 1170 & 1080 N.W. 11 St., 1035 N.W. 11 Ct. 1217 N.W. 8 Ct. 1313 N.W. 8 Ave. LOCATION 1/4 Mile SE 1/3 Mile SE 1/4 Mile SE 2/3 Miles SE 7/8 Miles SE 7/8 Miles SE LAND SIZE (SF) 42,309 14,186 9,638 11,070 110,753 19,686 26,000 LAND SIZE (ACRES) 0.97 0.33 0.22 0.43 2.54 0.45 0.60 ZONING T6-8-0 T6-8-0 T6-8-0 CI -HD T6 -80/T5-0 T6 -8L T6 -8L USE AT SALE Vacant Vacant Gutted Office Buildin Vacant Vacant Vacant Vacant PRICE PAID/SF $65.21 $114.13 $107.21 $103.83 $138.42 $104.81 ANALYSIS OF SALES The land sales range in unit price from $65.21 to $138.42 per square foot of land area. The sales range in time from June of 2014 to August of 2016. Property Rights The fee simple interest is the property right of the subject property being valued. The comparable sales involved the same type of property rights. Financing The sales were all financed with cash. The financing of the sales does not indicate any adjustments of their prices for favorable/below market financing. Conditions of Sale All of the sales were arm's-length transactions. An arm's-length transaction is defined as a transaction freely arrived at in the open market unaffected by abnormal pressure or by the absence of normal competitive negotiation as might be true in the case between related parties. Date of Sale (Market Conditions) The sales occurred between June of 2014 and August of 2016. An upward trend in price for land sites in the subject market area is evident over this time period. The unit prices of the sales, especially Sales 1, 2, 3 and 4, require upward adjustment for increasing market conditions Location The subject site is located in the Civic Center area of the city of Miami. The sale sites are located within a one mile radius of the subject. The locations of the sale sites are considered similar to the location of the subject site. Land Size The sale sites range in size from 9,638 to 110,753 square feet. The subject site at 42,309 square feet is within the range of sizes of the sale properties. The sales indicate no difference in unit price based on site size. Zoning The subject site is zoned in a T6-80 zone in the City of Miami that permits mixed commercial and residential uses. The Sale 1, 2, and 4 sites are similarly zoned in a T6-80 zone. The zonings of the Sale 1, 2, and 4 sites are similar to the zoning of the subject site. The Sale 3 site is zoned in a civic zone that permits mixed commercial and residential uses at a similar density to the T6-80 zoning. The zoning of the Sale 3 site is fairly similar to the zoning of the subject site. QUINLIVANAPPRAISAL 55 The Sale 5 and 6 sites are zoned in a T6 -8L zone that permits residential uses and commercial that are fairly similar to the T6-80 zone. The zonings of the Sale 5 and 6 sites are similar to the zoning of the subject site. Conclusion The land sales range in unit price from $65.21 to $138.42 per square foot of land area. The sales range in time from June of 2014 to August of 2016. A summary of the adjustments is as follows: Sale No. 1 2 3 4 5 6 Price/Square Foot $65.21 $114.13 $107.21 $103.83 $138.42 $104.81 Adjustments Property Rights = _ _ Conditions of Sale Financing Market Conditions + + + Location = _ + Land Size = _ Zoning = _ Site Conditions = _ Total Adjustments + + + The unit prices of Sales 1, 2, 3, and 4, ranging from $65.21 to $114.13 per square foot, are considered lower limits for the value of the subject site. The unit prices of Sales 1, 2, 3, and 4 require upward adjustments for increasing market conditions. The unit prices of Sales 5 and 6 are considered fairly indicative of the value of the subject site. Sales 5 and 6 are fairly recent sales. The unit prices of Sales 5 and 6 require no adjustments. Based on careful analysis of the land sales, the fee simple interest of the subject site is estimated to have a market value of $120.00 per square foot of land area. 42,309 Square Feet x $120.00 per Square Foot = $5,077,080 Land Value Indication (Rounded) $5,075,000 QUINLIVANAPPRAISAL 56 ESTIMATE OF MARKET RENT QUINLI"NAPPRAISAL 57 MARKET RENT Market rent is defined as the rental income that a property would most probably command on the open market as indicated by current rentals being paid for comparable properties. Since most land parcels are sold and not leased, there is an absence of land rentals which can be utilized to directly estimate the market rent of a land parcel. In the absence of comparable land rentals, the market rent for a land parcel is generally estimated as a percentage of land value. After the estimation of the land value (which has been estimated at $5,075,000), a return on land value typical in the real estate marketplace must be established. Small sites for bank branches, service stations and fast food restaurants have historically been leased in the range of 5.0% to 10.0% of the land value. The rates of return on land value from the convenience type sites would typically establish an upper range of a rate applicable to the subject property. These are small sites to be improved with a relatively small building that only has a useful life of approximately 20 to 25 years before it is functionally obsolete. The land capitalization rate was based on analysis of leased fee sales, real estate rates of return, rates of return on long-term security investments and mortgage interest rates. Typically, the longer the lease and the greater the spread between market and contract rent, the greater the margin of safety and hence, the lower the overall rate. In estimating an appropriate overall rate, current rates of return on security investments have been reviewed. A summary of alternative rates of return as September 2016 were as follows: 6 months Treasury Bills 0.47% 3 month CDs 0.70% Prime Rate 3.50% Conventional Home Mortgage Rates 3.60% U.S. Treasury Bonds - 30 Years 2.50% Corporate Bonds (Aaa) 3.41% Corporate Bonds (A) 3.68% Corporate Bonds (Baa) 4.31% Rates of return on real estate are typically higher than security rates due to illiquidity of the investment and higher cost of sale. Due to the lack of sales of land parcels subject to land leases in the subject area, sales of leased land parcels throughout Miami -Dade County were analyzed. A summary of the overall rates from leased fee land sales is on the following page. QUINLIVANAPPRAISAL 58 OVERALL RATES FROM LEASED FEE LAND SALES Date Sale Recordation Year Overall Lease No. Of Sale Tenant Location Price Built Rate Term 1 4/11 Bank of America 3050 N.E. 43 Avenue, $2,450,000 27662/135 2005 5.8% 10% rent increases every five Homestead years 2 5/11 Chase 13701 S.W. 288 Street, $2,692,400 27702/4825 2010 6.5% 20 years with four, five year Miami -Dade County options. 10% rent increase every five years 3 8/11 Chase 14290 S.W. 8 Street, $2,915,000 27795/3465 2005 5.5% 20 years with two, five year Miami -Dade Co. options. 15% rent increase every five years 4 5/12 Burger King 701 N.W. 37 Avenue, $2,050,000 28098/1733 1980 5.0% 15 years with six, five year Miami options. 8% rent increase every five years 5 6/12 Chase 801 S.W. 27 Avenue, $5,960,000 28160/344 2010 4.95% 20 years with five, five year Miami options. rent increase every five years 6 12/12 TD Bank 10603 N.W. 12 Street, $6,400,000 28424/4278 2008 5.0% 20 years with rent increase Doral every five years 7 2/13 KFC 13801 Biscayne Blvd., $1,850,000 28484/1652 1991 4.5% 20 years with two, ten year North Miami options. rent increase every five years 8 1/15 McDonald's 2880 N. E. 8 St., $2,525,000 29461/450 2006 4.3% 20 years with four, ten year Homestead options. rent increase every five years 9 5/16 TD Bank 801 West 49 St., $8,845,400 30086/94 2008 4.8% 20 years with two, ten year Hialeah options, rent increase in option years 10 8/16 CVS 1802 N. University Dr., $6,200,000 113845405 2013 4.7% 25 years with options. Plantation f,dial �. N w -q% A oil ILLI/!I! CHAIE ,7w P i IL 440 m , _ _i"- 1. � !�_-.r # —a.. �•.. ��d+i q �%� KFC dime -- y .m-,;h..I - •r-_., �'1 re 4. Mal SALE 9 SALE 10 QUINLIVANAPPRAISAL 64 Market Rent Conclusion The leased land parcels for bank branches, drug stores, auto parts stores and fast food restaurants have recently sold with overall capitalization rates in the range of 4.3% to 6.5%. These rates represent the relationship between sale price of the leased fee interest and annual land rental rates. These overall capitalization rates may vary depending on quality of tenant and the expectation of future value at the termination of the lease. These overall capitalization rates of leased fee ground lease sales tend to indicate lower rates than the land rates of return due to the security offered by high credit tenants and existence of an improvement on the site. National tenants such as Walgreen's, Bank of America, or McDonalds, typically do not default on lease and abandon an existing improvement they built. The potential tenant for subject ground lease would not likely have the high credit rating of Chase or Bank of America. The overall rates of the ground lease sales with high credit tenants should be a lower limit for the overall rate applicable to subject property. The Realty Rates.com Investor Survey — Third Quarter 2016 indicates overall rates for land leases for office properties ranging from 2.26% to 10.10.5%, with the average being 6.68%. The survey indicates overall rates for land leases for apartment properties ranging from 1.91% to 10.50%, with the average being 6.03%. The survey indicates overall rates for land leases for retail properties ranging from 1.96% to 11.87%, with the average being 6.56%. The survey indicates overall rates for land leases for all property types ranging from 1.91% to 15.90%, with the average being 7.23%. Considering the above sources of rates of return, with consideration given to the capitalization rates from long term ground leases and rates indicated on investor surveys, a 7.5% rate of return on land value is considered appropriate. Estimated Market Value of Land Site in Fee Simple $ 5,075,000 Land Rate of Return x 0.075 Estimated Annual Land Rental $ 380,625 Final Estimate of Annual Market Rent (Rounded) $ 380,625 QUINLIVANAPPRAISAL 65 ADDENDA QUINLIVANAPPRAISAL 66 ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. If no survey has been furnished to the appraisers, all measurements have been confirmed either in the field, in the plat book or by other reliable sources and are presumed to be accurate. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the Appraisal Report. 9. It is assumed, unless a study has been provided otherwise, that no hazardous material such as asbestos, urea formaldehyde or other toxic waste exists in the property. The existence of a potentially hazardous material could have a significant effect on the value of the property. 10. In reference to proposed construction, the real estate taxes and other expenses are estimated. These amounts are not guaranteed. QUINLI"NAPPRAISAL 67 11. It is assumed in the valuation of the subject land site, unless a compliance letter has been furnished to us, that the State of Florida Growth Management Act does not prevent the issuance of a building permit. 12. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 13. It is assumed that the utilization of the land and improvements is within the boundaries of property lines of the property described and that there is no encroachment or trespass unless noted in the report. This Appraisal Report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation of this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraisers, and in any event, only with proper written qualification and only in its entirety. 3. The appraisers herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers are connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. QUINLIVANAPPRAISAL 68 Q UALIFICA TIONS OF THE APPRAISER THOMAS F. MAGENHEIMER Experience: 11/84 - Present QUINLIVAN APPRAISAL, P.A. 7300 N. Kendall Drive, Suite 530 Miami, Florida 33156 Education: University of Richmond, Richmond, Virginia BA - Bachelor of Arts in History (1982) Professional Affiliations: Member of the Appraisal Institute (MAI No. 09166) Real Estate Salesman - State of Florida - Certificate No. 0344882 Certified General Appraiser, State of Florida, License No. RZ0000553 Member Sigma Alpha Epsilon Fraternity Qualified as an Expert Witness in the Following Courts: Miami -Dade County Circuit Court Broward County Circuit Court U.S. Bankruptcy Court Other Activities: Admissions Committee - South Florida -Caribbean Chapter of the Appraisal Institute - (1992 - 1993) Newsletter Editor - South Florida -Caribbean Chapter of the Appraisal Institute - (1991 - 1995) President - South Florida -Caribbean Chapter of the Appraisal Institute - (1996) Board of Trustees - Palmer -Trinity School (1989 - 1993) QUINLIVANAPPRAISAL 69 Quinlivan Appraisal has prepared Appraisal Reports for the following: Institutions and Corporations: AT&T Archdiocese of Miami Atlantic Security Bank The Bank of America Bank United Barry University Bessemer Trust Company California Bank and Trust Chevron Oil Company Chase Manhattan Bank Chemical Bank Citibank Citrus Bank City National Bank of Miami Coamerica Bank Coconut Grove Bank Commerce Bank Commercial Bank of Florida Consolidated Bank County National Bank Eagle National Bank Eastern National Bank Equitable Bank Espirito Santo Bank Farm Credit of South Florida Fidelity Bank First International Bank First National Bank of South Miami Florida International University First Nationwide Bank Florida Memorial College Florida Power and Light Company Florida Rock Industries Great Eastern Bank of Florida Greyhound Lines HSBC Hemisphere National Bank Intercontinental Bank International Bank of Miami, N.A. QUINLIVANAPPRAISAL 70 LaSalle National Bank Marine Midland Bank McDonalds Corp. Mellon United National Bank Metro Bank Miami -Dade County Community College Miami -Dade Water and Sewer Authority Northern Trust Bank of Florida Ocean Bank Pacific National Bank Pan American Bank Shell Oil Company South Trust Bank SunTrust Bank TotalB ank Trade National Bank Trust for Public Lands UniBank Union Planters National Bank University of Miami Wachovia Wal-Mart YMCA Governmental Agencies: City of Aventura City of Coral Gables City of Doral City of Florida City City of Hialeah City of Homestead City of Miami City of Miami Parking Authority City of Miami Beach City of Miramar City of North Bay Village City of North Miami City of North Miami Beach City of South Miami City of Sunny Isles Beach Miami -Dade County Aviation Department Miami -Dade County Department of Development & Facilities Management Miami -Dade County HUD QUINLIVANAPPRAISAL 71 Miami -Dade County Property Appraisal Adjustment Board Miami -Dade County Public Schools Miami -Dade County Public Works Department Miami -Dade County Transportation Administration Miami -Dade Water & Sewer Department South Florida Water Management District State of Florida, Attorney General's Office State of Florida, Department of Community Affairs State of Florida, Department of Corrections State of Florida, Department of Environmental Protection State of Florida, Department of Insurance State of Florida, Department of Rehabilitation and Liquidation State of Florida, Department of Transportation Town of Golden Beach United States Army Corps of Engineers United States Department of Justice United States Department of Commerce United States Department of the Interior United States General Services Administration Village of Islamorada Village of Key Biscayne Village of Pinecrest Law Firms: Akerman Senterfitt Greenberg, Traurig Daniels, Kashton, Downs and Robertson Holland and Knight, LLP Shutts & Bowen Ruden McClosky, LLP Steel, Hector & Davis, LLP Weiss, Serota, Helfman, Pastoriza, Guedes, Cole and Boniske, P.A. Types of Properties Appraised: Single Family Residences Apartment Buildings Office Buildings Retail Stores Shopping Centers Condominium Apartment Buildings Golf Courses Residential Subdivisions Automobile Dealerships QUINLIVANAPPRAISAL Vacant Land Hotel/Motels Warehouses Nursing Homes Mobile Home Parks Schools Service Stations Marinas Wetlands 72 PURCHASE ORDER QUINLI"NAPPRAISAL 73 Visit our website for business 0000rtunities at: www.miamiaov.com/Drocurement _ City of Miami Purchase Order Department of Purchasing P.O. Box 330708 Miami, Florida 33233-0708 (305) 416-1922 Fax - (305) 416-1925 PURCHASE ORDERIRELEASE NUMBER 1700712 Show this number on all packages, invoices, antl shipping papers. [Chabg.,,n um Change Date Page No 1 of 2 Order Date Bid/Contract Number 11/08/2016 Buyer: Anthony Hansen Taxpayer ID Supplier No. Telephone No. Dollar City of Miami - PF -Asset Management 444 SW 2nd Ave., 3rd Floor Miami, FL 33130 592168811 1026 305-663-6611 Total Amount: Quinlivan Appraisal PA 7300 North Kendall Drive Suite 530 Miami, FL 33155 City of Miami - Finance - General Accounting 444 SW 2nd Ave, 6th Floor Miami FL 33130 Fax - (305) 416-1987 Email - payables@miamigovcom Customer Account Number Pursuant to RFQ 132102(15) as authorized by Resolution 10-0330. Effective Start Date Effective End Date Total Agreement Limit Date Approved An Perez CPPC Director ofProcurement C N/PC 506 Rev. 12/05 Line Commodity Code Desonlotion/Delivery Date Qtv Unit Unit Price Extended Price 1 94515-00 2nd appraisal ofthe property located at 1455 NW 17th Street, Miami, FL 21090 - DREAM - Knight Center Managerial Dollar 1.00 ontact Person reverse side hereof are incorporated herein by reference become Net 30 Total Amount: part ofthis order Telephone Number. 305)416-1429 Pursuant to RFQ 132102(15) as authorized by Resolution 10-0330. 11!08!2016 FOB: equisition Number: Vendor Instructions Destination 144632 1 Florida Tax Exempt ID: Ship Via'.Department: 2 Invoices: Direct Invoices in Duplicate to the address shown above. 21090 - DREAM - Knight Center Managerial 3 Terms and conditions set forth in our Bid or Quotation and on the Payment Terms ontact Person reverse side hereof are incorporated herein by reference become Net 30 ernandez, Yvonne part ofthis order Telephone Number. 305)416-1429 11!08!2016 Date Approved An Perez CPPC Director ofProcurement C N/PC 506 Rev. 12/05 QUINLIVANAPPRAISAL 74 BY ACCEPTING THIS ORDER, VENDOR AGREES TO THE FOLLOWING TERMS AND CONDITIONS 1. ACCEPTANCE OF PURCHASE ORDER: A Purchase Order is given for immediate acceptance by the VENDOR. Unless promptly notified to the contrary, the CITY will assume the VENDOR accepts the order as written and will make delivery as specified on the document. 2. ENTIRE AGREEMENT: All specifications, drawings, and data submitted to the VENDOR with this order orthe solicitation forthis order are hereby incorporated herein and made a part hereof. This contract contains the entire agreement ofthe parties. No charge in quantities, prices, specifications, terms, or shipping instructions will be allowed except on written authority of the CITY of Miami Purchasing Department. Any additional or different terms and conditions proposed by VENDOR are objected to and hereby rejected unless specifically agreed to bythe CITY. 3. INDEMNIFICATION: The VENDOR hereby agrees to indemnify, save, and hold harmless the CITY from all claims, demands, liabilities, and suits of any nature whatsoever arising out of, because of, ordue to the breach ofthe Agreement by the VENDOR, its agents oremployees, or due to any act or occurrence of omission orcommission of the VENDOR, its agents employees. It is specifically understood and agreedthat this indemnification agreement does not cover orindemnifythe CITY forits own negligence or breach of contract. 4. MODIFICATION The CITY may bywritten Order, make changes in the specifications if such changes are withinthe general scope ofthe Contract. If such changes cause an increase or decrease in the VENDOR'S costs or in time required for performance ofthe Contract. (a) the VENDOR shall promptly notifythe CITY and assert its claim for adjustment and an equitable adjustment shall be made bythe CITY and the Contract modified accordingly_ Nothing in this clause shall excuse the VENDOR from performing_ 5_ DEFAULT_ Time is ofthe essence ofthis contract and if delivery of acceptable items or rendering of services is not completed bythe time promised, the CITY reserves the right without liability, in addition to its other rights and remedies, to terminate this contract by notice effective when received by VENDOR; as to stated items not yet shipped or services not yet rendered, and to purchase substitute items or services elsewhere and charge the VENDOR with any and all losses incurred_ 6_ TRANSPORTATION CHARGES. Transportation expenses for all shipments shall be prepaid to destination_ Shipments sent C.D.D. orireight collect without the CITY'S written consent will not be accepted and will, at VENDOR'S risk and expense be returned to VENDOR No charges will be allowed by the CITY fortransportation, packing, cartage or containers unless otherwise authorized in the Purchase Order. 7. UNAVOIDABLE DELAY: If the VENDOR is delayed in the delivery of goods purchased under the Purchase Order by a cause beyond its control, VENDOR must immediately upon receiving knowledge of such delay, give written notice to the CITY and request an extension oftime. The CITY shall examine the request and determine if the VENDOR is entitled to an extension. 8_ QUANTITY_ Quantities famished in excess of those specified in the Purchase Orderwill not be accepted and will be held at VENDOR'S risk and expense 9. INSPECTION: Matenals or equipment purchased are subject to inspection and approval at the CITY'S destination. The CITY reserves the right to reject and refuse acceptance of items which are not in accordance with the instructions, specifications, drawings, or data of VENDOR'S warranty (expressed or implied). Rejected materials or equipment shall be removed by, or at the expense of, the VENDOR promptly after rejection. 10. WARRANTY. The VENDOR warrants that all goods and services furnished hereunderwill conform in all respects to the terms of this order, including any drawings, specifications, or standards incorporated herein, and that they will be free from latent and patent defects in materials, workmanship and title, and will be free from such defects in design. In addition, VENDOR warrants that said goods and services are suitable for, and will perform in accordance with, the purpose forwhich they are purchased, fabricated, manufactured and designed or for such other purposes as are expressly specified in this order. The CITY may return any nonconforming or defective items to the VENDOR or require correction or replacement ofthe item at the time the defect is discovered, all at the VENDOR'S risk and expense . Acceptance shall not relieve the VENDOR of its responsibility. 11 REGULATORY COMPLIANCE VENDOR represents and warrants that the goods or services furnished hereunder (including all labels, packages, and containers for said goods) comply with all applicable standards, rules and regulations in effect underthe requirements of Federal, State and local Taws, including the Occupational Safety and Health Act as amended, with respect to design, construction, manufacture or use fortheir intended purpose of said goods or services_ VENDOR shall furnish "Material Safety Data Sheets" in compliance with the Flonda Right To Know Law, Florida Statutes, Chapter 442_ 12. ROYALTIES AND PATENTS_ VENDOR shall pay all royalties and license fees. VENDOR shall defend all suits or claims for infringement of any patent, copyright ortrademark rights and shall save the CITY harmless from loss on account thereof. 13. PAYMENT. Payments will be made in accordance with the terms on the face of this order, orthe VENDOR'S invoice, whichever are more favorable to the CITY and payment date therefor shall be calculated from the receipt of invoice or final acceptance ofthe goods, whichever is Tater. 14. IDENTIFICATION: Invoices in duplicate with prces set out and giving the correct Purchase Order Number must be sent to the address shown on the face of this order, otherwise payment of VENDOR'S account may be delayed. The Purchase Order Number shall appear on all invoices, boxes, packages, shipping documents and correspondence, and the list of contents shall be enclosed in each box or package. 15. TERMINATION: CITY may, at anytime, terminate this order in whole or in part by wntten ortelegraphic notice or verbal notice confirmed in writing. Upon termination for convenience of Buyer, the Buyerwill assume responsibility for specific contractual or scheduled financial commitments made prior to notice oftermination. Any and all services, property, publications, or materials provided during or resulting from the Contract shall becomethe property ofthe Buyer. If, however, termination is occasioned by the VENDOR'S breach of any condition hereof, including breach warranty, or by VENDOR'S delay, except due to circumstances beyond the VENDOR'S control and without VENDOR'S fault or negligence, VENDOR shall not be entitled to any claim or costs orto any profit referred to in said clause, and Buyer shall have against VENDOR all remedies provided by law and equity. 16. TAXES: CITY of Miami is exempt from State and local taxes. Exemption number is printed on the reverse side hereof. This Order shall serve as the exemption certificate 17. LAW GOVERNING. This contract shall be governed by and construed according to the laws ofthe State of Florida_ 18 ASSIGNMENT Any assignment of this Purchase Order, including any performance ofwork hereunder, in whole or in part, or monies due hereunder, shall be void unless consented to by CITY in writing and CITY shall have no obligations to any assignee of VENDOR under any assignment not consented to in writing by THE CITY. 19. TERMS: The ordertotal shall be paid by the CITY upon receipt of invoice from VENDOR which shall be subject to verification as to quantities and quality of goods delivered or services performed. 20 TAX. VENDOR doing business with the CITY shall not be exempt from paying sales tax to their suppliers for materials to fulfill contractual obligations with the CITY, nor shall any VENDOR be authorized to use the CITY Tax Exemption Number in acquiring such materials. 21 LOCAL RESOURCES VENDOR shall give first pnorityto utilizing resources in the disaster area, including but not limited to procuring supplies and equipment, awarding sub -contracts, and employing workmen_ 22. PAYMENT CHANGES. Payments will only be made to the company and address as set forth on Purchase Order unless the VENDOR has requested a change thereto on official company letterhead, signed by an authorized officer ofthe company_ 23. UNIFORM COMMERCIAL CODE. The Uniform Commercial Code (Chapter 572, Florida Statutes) shall prevail as the basis for contractual obligations between the VENDOR and CITY for any terms and conditions not specifically stated in this Purchase Order_ 24. INSURANCE: In the event that insurance is required by the CITY in connection with this Purchase Order, VENDOR shall provide an Insurance Certificate, in a form acceptable to the CITY, naming the CITY as an additional insured, as proof of compliance therewith which said certificate shall constitute part of this Purchase Order. 25. BONDING. The CITY reserves the right to require the VENDOR to post a performance and payment bond in the amount of One Hundred percent (100%) ofthe Purchase Ordertotal, upon award or at such time deemed necessary by CITY. QUINLIVANAPPRAISAL 75 CBRE, Inc. STANDARD 3 -APPRAISAL REVIEW Properties with Appraised Values of over $1,000,000 (For ISI Professional Services) Date: June 24, 2016 To: Name: Christopher J. Lefebvre, President & CEO Company: ISI Professional Services Address: 1201 15th Street, NW, Suite 200 City/State: Washington, DC 20005 From: Name: Stuart J. Lieberman, MAI Company: CBRE, Inc. Address: 777 Brickell Avenue, Suite 910 City/State: Miami, FL 33131 Re: CBRE FILE # 16-397MI-1165 ' ' t7 � �1.7111•� 1►1,1CY7.7►I /_V Y [Y]�EI Property Name: Address: City, State: APPRAISAL INFORMATION: Appraiser(s) Name: Firm: State Certified/Licensed: Date of Report: Report Format/Type: Engaged By: Wagner Square Site 1455 NW 17th Street Miami, Miami -Dade County, Florida 33125 Josh L. Rosen, MAI & Alejandro C. Puente Waronker & Rosen, Inc. Yes April 1, 2016 Comprehensive Appraisal Report Mr. Richard Banchoff, Legal Counsel ISI Professional Services 1201 15th Street, NW Suite 200 Washington, DC 20005 Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17`" Street, Miami, Florida 33125 1of11 EFFECTIVE DATES AND VALUE CONCLUSIONS Effective Date Reviewer's of Value Appraiser's Conclusion Appraiser Type of Value Conclusions Accept/Rejected Josh L. Rosen, MAI & Market Value February 24, 2016 $5,300,000 Rejected Alejandro C. Puente As Is Approved Stuart J. Lieberman, MAI Market Value June 23, 2016 $3,600,000 Independent Value As Is The review appraiser has observed several deficiencies with regards to the Uniform Standards of Professional Appraisal Practice (USPAP) and the Uniform Appraisal Standards of Federal Land Acquisitions (UASFLA) requirements including a lack of research & analysis of public records with regards to declarations of restrictions, reverter and unity of title covenants for a municipal owned site that was previously mandated for affordable housing. The review appraiser also found fault with the definition of market value utilized and a flawed sales comparison approach to value as detailed in the following review appraisal document. Therefore, the review appraiser has rejected the appraisal and developed an independent market value As Is of the subject land, as of June 23, 2016. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17`" Street, Miami, Florida 33125 2of11 SPECIFIC COMMENTS RELATING TO THE REPORT: Description/Significant Assumptions/Comments: The appraiser indicates that the appraisal is an As Is opinion of market value of the fee simple interest in the subject land. The subject property is described as two (2) contiguous parcels totaling 0.97 -acres. Extraordinary Assumptions: The following is a condensed version of the appraisers Extraordinary Assumptions as indicated in the report. For more specific details, see appraisal report. • No extraordinary assumptions or limiting conditions noted in appraisal. Hypothetical Conditions: No hypothetical conditions were employed. Included/Adequate APPRAISAL REPORTING REQUIREMENTS: YES NO N/A 1. Contains statement that appraisal in accordance with UASFLA: X 2. Contains statement that appraisal in accordance with USPAP: X 3. Includes assumptions and limiting conditions that appear standard: X 4. Extraordinary assumptions, if any, are clearly disclosed: X 5. Hypothetical conditions, if any, are clearly disclosed: X 6. Identifies Client and Intended Use/Users: X 7. Identifies type of report: X 8. Identifies real estate appraised : X 9. Identifies real property interest appraised: X 10. States purpose of appraisal: X 11. States definition of Market Value (UASFLA): X 12. States effective date(s) of appraisal: X 13. States date of report: X 14. Appropriately describes scope of work: X 15. Appraiser competency to perform assignment: X 16. Includes ADA statement: X 17. Includes prior services statement: X 18. Explains exclusion of any valuation approach: X 19. Includes "as is" value estimate: X 20. Includes appraiser's state certification and license number: X 21. Includes appraiser(s) qualifications: X 22. Includes appraiser's statement regarding inspection in certification: X 23. Includes signed certification: X The client scope of work (SOW) specifically requests the appraisal shall conform to the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) and referred to as the Yellow Book. However, the appraisal fails to disclose any extraordinary assumptions & limiting conditions and fails to provide the appropriate definition of market value in accordance with UASFLA requirements. According to the Declaration of Restrictions; the Declaration of Restrictions & Reverter; the Declaration of Restrictions In Lieu of Unity of Title; and all amendments to said documents, as recorded in Miami -Dade Public Records, there is an Easement & Operating Agreement for perpetual, non-exclusive access, utility and maintenance; an affordable housing requirement; and, a construction commencement requirement that runs with the land and can only be amended or Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17`" Street, Miami, Florida 33125 3 of 11 modified by a written agreement approved by the City Commission. The appraiser failed to disclose any of these publicly recorded declarations & restrictions and did not publish an extraordinary assumption & limiting condition as it may or may not impact the market value As Is. In addition, the Jurisdictional Exception Rule of USPAP Standards Rule 1-2(c) should have been invoked when defining the appropriate definition of market value in accordance with UASFLA requirements by excluding the exposure time estimate from the definition of market value. As such, Section A-9 of the UASFLA Standards provides that the appraiser shall not link an estimate of market value for federal land acquisition purposes to a specific exposure time. This is contrary to USPAP Standards Rule 1-2 and Standards Rule 2-2, and is considered a jurisdictional exception. The definition of market value required and adopted by the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), that should have been used, is as follows: Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal. PROPERTY IDENTIFICATION AND OWNERSHIP: YES NO N/A 1. Legal description included:X ........ ......... ......... 2. Property History included: X 3. Any subject sales transactions within past three (3) years detailed: X 4. Current sale contract detailed and appropriately analyzed: - X 5. Appraiser notes if current listing: X ............................... 6. Provided analysis if sale or contract is significantly different from MV estimate: X Comments: Overall, property identification and ownership is sufficiently documented. However, there is no mention or discussion relating to the interest in the subject property by the U.S. Department of Veterans Affairs (VA). In addition, the appraiser failed to research or present the mandated & approved affordable housing development by the prior ownership leading to the bankruptcy. Finally, the appraiser did not mention the sell-off of the abutting site in September 2012 for $7,200,000 or $68.49-PSF for the 2.413 -acres within the same plat as the subject and part of the same bankruptcy history as the subject property. Included/Adequate PROPERTY DESCRIPTION: YES NO N/A 1. Location/market description analysis (considering scope of assignment): X 2. Site description: X 3. Improvement description: X 4. Flood Plain Information: X 5. Real Estate Tax Information: X 6. Zoning: Includes statement regarding conformance with zoning: X Comments: Overall, the property description and site description is sufficiently documented. However, there was no mention of City of Miami ownership and the requisite declaration of restrictions; declaration of Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17`" Street, Miami, Florida 33125 4of11 restrictions & reverter; and/or, the declaration of restrictions in lieu of unity of title that have impact & bearing on zoning and permissible highest & best uses. HIGHEST & BEST USE: YES NO N/A 1. HBU "As Vacant" adequately analyzed: X 2. HBU "As Improved" adequately analyzed: X 3. Improvements are consistent with highest and best use: X Comments: Highest and Best use of the subject property as vacant is high density mixed-use residential, office, retail & lodging, which is consistent with and supported by the majority of comparable land sale transactions analyzed in the Land Valuation section of this report. However, the HBU As Vacant under Legally Permissible stated "no deed restrictions are known which would legally limit the allowable uses on the subject site." The review appraiser researched the public records of Miami -Dade County and was able to analyze the municipal ownership and requisite declaration of restrictions; declaration of restrictions & reverter; and, the declaration of restrictions in lieu of unity of title that could have impact & bearing on the legally permissible highest & best uses. Included/Adequate SALES COMPARISON APPROACH: YES NO N/A 1. Sales are chosen for comparison appear appropriate: X 2. Appropriate units of comparison are analyzed: X 3. Data and/or adjustments (sales analysis) appears adequate: X 4. Value conclusion appears to be adequately supported: X Comments: The appraiser included a Comparable Sales Analysis beginning on Page 44 through 57 of the appraisal under review. The comparable sale dates range from February 2015 through December 2015 and were conveyed fee simple to multi -family residential developers and investor speculators. The reviewer has identified Comparable Sales 1, 4 & 5 as the most similar to the subject property with regards to location and zoning density. These three comparables produced an unadjusted value indicator range of $93.05 to $107.21 per square foot of site area. However, only a qualitative adjustment grid was presented with plus (+) and minus (-) differences, which was reportedly utilized because of insufficient data for paired sales analysis. Furthermore, the appraiser considered and weighed a pending sale list price of $119.28-PSF of a property located at 1670 NW North River Drive with Miami River frontage and concluded with an estimated land value indicator of $125.00-PSF based on the pending list price and Comparable Land Sale 2 that is located outside of the subject submarket. Comparable Land Sale 2 produced a value indicator of $147.69-PSF and is located east of Interstate 95 and within the very speculative Wynwood submarket. More importantly, no analysis was attributed to price per unit or buildable FLR (Floor -Lot -Ratio), which are the most critical & primary elements when valuing high density, residential and mixed-use land within a dense submarket. As such, the review appraiser has developed an independent market value of the land as vacant via the sale comparison approach utilizing Comparable Sales 1, 4 & 5; by eliminating Comparable Sales 2, 3 & 6 for different locations outside of the subject Civic Center/Health District submarket, and for different zoning when compared to the subject property. We replaced those three (3) comparable sales with two (2) from within the subject Civic Center/Health District and considered similar when employing the more relevant direct sales comparison approach based on the zoning & FLR analysis, and presented in the following analysis by the reviewer appraiser. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 5of11 1i. 1 21�1455 Subject Property Z SUMMARY OF COMPARABLE LAND SALES NW 17th St G"" Sale 3 Miami, FL 33125 N rtiCus Park A- 2210 NW North River Transaction n Dr Miami Size Miami, FL 33125 Price Gerry � e Curtis Park r`1 , NW s. r ® - L Sale 1 1501 NW 13th Ct Miami, FL 33125 -9€ z' _ - _ N[W S-11 Prk 3 I Swell Park —_ 83fi 4 NW 7th Ave ii, FL 33136 1310 NW 8th Ct Miami, FL 33136 11th St Q �Ll Sale 5 �� Z 1170 NW 11th St Mlaml, FL 33136 I�N �q SUMMARY OF ADJUSTMENTS Based on the review appraisers comparable sale selection & analysis, the following chart summarizes the adjustments warranted to each comparable in direct comparison to the subject property. It is important to note, the subject buildable FLR is estimated based on the Miami 21 zoning regulation and comparable market analysis of similar zoned sites with proposed and/or approved development densities. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 171h Street, Miami, Florida 33125 6of11 SUMMARY OF COMPARABLE LAND SALES Transaction Actual Sale Adjusted Sale Size Size Price No. Property Location Type Date Zoning Price Price 1 (Acres) (SF) PSF 1 1501-1511 NW 13th Court, Sale Feb -15 CI -HD, Civic Institution $2,023,000 $2,023,000 0.43 18,870 $107.21 Miami, FL Health District 2 1310 Northwest 8th Court, Sale Mar -15 T6-8 L, Urban Core $950,000 $950,000 0.29 12,498 $76.01 Miami, FL Limited 3 2210 NW North River Drive, Sale Apr -15 T6-8 O, Urban Core, $4,147,500 $4,147,500 1.02 44,572 $93.05 Miami, FL Open 4 1850-1890 NW 7th Avenue, Sale May -15 CI -HD, Civic Institution $3,500,000 $3,500,000 0.81 35,445 $98.74 Miami, FL Health District 5 1170 111 th Street 1035 Sale Dec -15 T6-8 O, Urban Core & $11,500,000 $11,500,000 2.54 110,753 $103.83 NW 11 th Court, Miami, FL T5 O, Urban Center Sul 1455 NW 17th Street, --- --- T6-8 0, Urban Core --- --- 0.97 42,309 --- Miami, Florida Transect Zone Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE SUMMARY OF ADJUSTMENTS Based on the review appraisers comparable sale selection & analysis, the following chart summarizes the adjustments warranted to each comparable in direct comparison to the subject property. It is important to note, the subject buildable FLR is estimated based on the Miami 21 zoning regulation and comparable market analysis of similar zoned sites with proposed and/or approved development densities. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 171h Street, Miami, Florida 33125 6of11 LAND SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 5 Transaction Type Sale Sale Sale Sale Sale Transaction Date Feb -15 Mar -15 Apr -15 May -15 Dec -15 Zoning CI -HD, Civic T6-8 L, Urban T6-8 O, Urban CI -HD, Civic T6-8 O, Urban Institution Health Core Limited Core, Open Institution Core & T5 O, District Health District Urban Center Actual Sale Price $2,023,000 $950,000 $4,147,500 $3,500,000 $11,500,000 Adjusted Sale Price $2,023,000 $950,000 $4,147,500 $3,500,000 $11,500,000 Size (Acres) 0.43 0.29 1.02 0.81 2.54 Size (SF) 18,870 12,498 44,572 35,445 110,753 Density (UPA) 169 du/ac 139 du/ac 150 du/ac --- 115 du/ac Allowable Units 73 Units 40 Units 153 Units --- 292 Units Allowable Bldg. Area (SF) --- 73,826 SF 222,860 SF --- --- Indicated FAR --- 5.91 5.00 --- --- Price PSF of Site $107.21 $76.01 $93.05 $98.74 $103.83 Price Per FLR --- $12.87 $18.61 --- --- Price Per Dwelling Unit $27,712 $23,750 $27,023 --- $39,384 Price $ PSF $107.21 $76.01 $93.05 $98.74 $103.83 Property Rights Conveyed 0% 0% 0% -10% 0% Financing Terms 1 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% Market Conditions Time 5% 5% 5% 5% 0% Subtotal $112.57 $79.81 $97.70 $93.31 $103.83 Size -10% -15% 0% 0% 10% Shape 0% 0% 0% 0% 0% Corner 0% 0% 0% 0% 0% Frontage 0% 0% -10% -10% 0% Topography 0% 0% 0% 0% 0% Location 0% 5% 0% 0% -25% Zoning/Density -5% 5% 0% 0% 0% Utilities 0% 0% 0% 0% 0% Highest & Best Use 0% 0% 0% 0% 0% Total Other Adjustments -15% -5% -10% -10% -15% Value Indication PSF of Site $95.68 $75.82 $87.93 $83.98 $88.26 Value Indication PJr of rAK --- 4' "1.154 .0I /.DV --- --- Value Indication Per Unit $24,733 $23,691 $25,537 --- $33,476 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE CONCLUSION Subject f6-8 0, Urban Core Transect Zone 0.97 42,309 150 du/ac 146 Units 211,545 SF 13.14 Based on the preceding presentation and comparable sale analysis, all of the comparable sales were representative of the subject site, and warranted equal consideration because of recent sale transaction dates, mixed-use residential & retail densities, and close proximity to the subject property within the Civic Center/Health District submarket. In conclusion, a price per square foot of site area, price per dwelling unit and price per FLR (Floor -Lot - Ratio) within the overall unadjusted and narrow adjusted range is considered most appropriate for valuing the subject property, calculated as follows: Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 7of11 The review appraiser's independent analysis and methodology utilizing value per square foot of site area, FLR and per dwelling unit is considered to be most relevant when valuing high density, mixed-use zoned land, such as the subject property. RECONCILIATION: YES NO N/A 1. Value Estimate "As Is" is appropriately analyzed: X 2. Any other value estimates (i.e. liquidation, prospective) included and analyzed: X 3. Final conclusions and analyses appears to be reasonable: X 4. If included, exposure time estimate appears appropriate: X Comments: The appraisers concluded a market value As Is as of February 24, 2016 of $5,300,000 on Page 58 of the report. Overall, the value conclusion performed in the report is above the review appraisers independent approach and conclusions of value. In addition, the selection of comparable sales and weighted emphasis on a pending sale list price is a flawed methodology when valuing land via the sales comparison approach. The review appraiser independently reconciled the subject property land value via the Sales Comparison and estimated the market value As Is, as of June 23, 2016 of $3,600,000. Included/Adeguate Reviewer's Conclusions & Recommendations: YES NO N/A 1. Appraisal appears to conform to FIRREA Regulations: X 2. Appraisal appears to conform to Uniform Standards of Professional Appraisal Practice: X 3. Appraisal appears to conform to Uniform Appraisal Standards of Federal Land Acquisitions: X 4. Appraisers value conclusions are adequately supported X Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 8of11 CONCLUDED LAND VALUE $ PSF of Site Site SF Total $75.00 x 42,309 = $3,173,175 $95.00 x 42,309 = $4,019,355 $ PSF of FLR Zoning FLR (SF) Total $13.00 x 211,545 SF = $2,750,085 $18.00 x 211,545 SF = $3,807,810 $ Per Unit Residential Unit Density Total $24,000 x 146 Units = $3,496,612 $30,000 x 146 Units = $4,370,764 Indicated Value As Is: $3,600,000 Indicated Value PSF of Site Area: $85.09 Indicated Value PSF of FLR $17.02 Compiled by CBRE The review appraiser's independent analysis and methodology utilizing value per square foot of site area, FLR and per dwelling unit is considered to be most relevant when valuing high density, mixed-use zoned land, such as the subject property. RECONCILIATION: YES NO N/A 1. Value Estimate "As Is" is appropriately analyzed: X 2. Any other value estimates (i.e. liquidation, prospective) included and analyzed: X 3. Final conclusions and analyses appears to be reasonable: X 4. If included, exposure time estimate appears appropriate: X Comments: The appraisers concluded a market value As Is as of February 24, 2016 of $5,300,000 on Page 58 of the report. Overall, the value conclusion performed in the report is above the review appraisers independent approach and conclusions of value. In addition, the selection of comparable sales and weighted emphasis on a pending sale list price is a flawed methodology when valuing land via the sales comparison approach. The review appraiser independently reconciled the subject property land value via the Sales Comparison and estimated the market value As Is, as of June 23, 2016 of $3,600,000. Included/Adeguate Reviewer's Conclusions & Recommendations: YES NO N/A 1. Appraisal appears to conform to FIRREA Regulations: X 2. Appraisal appears to conform to Uniform Standards of Professional Appraisal Practice: X 3. Appraisal appears to conform to Uniform Appraisal Standards of Federal Land Acquisitions: X 4. Appraisers value conclusions are adequately supported X Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 8of11 Included/Adequate Considering the Scope of Work which this review is made — Appraisal 1: YES NO N/A 1. Completeness of the materials under review: 7- 2. The adequacy and relevance of the data used: X 3. The propriety of the adjustments: X 4. The methods and techniques SR 3-1 (f): X 5. Appropriateness and reasonableness of the analysis, opinions, and conclusions SR 3-1(g): X Review Appraiser Recommendations: 1. Accept appraisal, as is: 2. Accept appraisal, as corrected by the appraiser: 3. Accept appraisal, as revised by the appraiser: 4. Accept appraisal, as revised by the reviewer: 5. Appraised Value not substantiated -recommend that additional appraisal be prepared: 6. Reject appraisal due to significant errors and inconsistencies (as described below): X Comments: Based on the data and analysis provided by the appraiser, the appraised value of the subject property is overstated, and not supportable or credible. Therefore, the review appraiser has developed an independent and recommended for the intended use & users. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 9of11 CLIENT AND INTENDED USER OF THE REVIEW: ISI Professional Services and the U.S. Department of Veterans Affairs (VA). INTENDED USE AND PURPOSE OF REVIEW: The intended use and purpose of this review is to evaluate and determine the appraisal report's compliance to USPAP and UASFLA standards. The report was also reviewed to determine the adequacy of the appraisal report, including its scope, methododologies, accuracy, and assess the credibility of the conclusions. This review document is intended for use by ISI Professional Services and the U.S. Department of Veterans Affairs (VA). SCOPE OF THE REVIEW: In compliance with the Uniform Standards of Professional Practice (USPAP Standards Rules 3-1 and 3-2) and the Uniform Appraisal Standards for Federal Land Acquisitions, the following disclosure regarding the review process conducted regarding the appraisal prepared on the subject property, in addition to reporting the results of the review included the following: 1. Analyze appropriate areas and information furnished in the appraisal report; thus, the reviewer is able to provide an opinion on the appraisal's reasonableness and its conformity to the regulating bodies based upon the data presented. 2. Quality control and bank compliance with appraisal review regulations. 3. Appropriateness of market data, techniques, and accuracy in the appraisal. 4. Checking reasonableness of analysis and conclusions. 5. Checking for conformity to USPAP and UASFLA standards;ensuring that report is credible. 6. This review is based only on the information contained in the appraisal unless otherwise noted. 7. This is a desk review only; no physical inspection of the subject property or comparables was made. 8. This review assignment does require my own opinion of value. If there are errors found in the report or questionable methodologies were used, they will be reported in this review with appropriate comments and recommendations. CERTIFICATION SR3-6 I certify that, to the best of my knowledge and belief: • the facts and data 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 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 the work under review and no personal interest with respect to the parties involved. • The reviewer has not provided any appraisal -related services on this property in the three years prior to accepting this assignment. • 1 have no bias with respect to the property that is the subject of the work under review or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in this review or from its use. • My compensation for completing this assignment is not contingent upon the development or reporting of predetermined assignment results or assignment results that favors the cause of the client, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal review. • My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice and the Uniform Appraisal Standards for Federal Land Acquisitions. • I have not made a personal inspection of the subject of the work under review. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 10 of 11 • No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the person signing this certification. • The use of this review report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this review, I have completed the requirements of the continuing education program of the Appraisal Institute. • The reviewer has indicated in his review those parts found acceptable or satisfactory in addition to those found deficient (if any) Date: 6/23/2016 Stuart J. Lieberman, MAI State of Florida Certified General Real Estate Appraiser License #RZ1074; Expiration 11/16 My signature on this review and/or my approval or rejection of the appraisal report, which is the subject of this review, does not in any way signify my agreement as a cosigner to the appraisal report nor does it signify my approval of the concluded value. My conclusions in this review are based on an analysis of the appraiser's work product, of the appraiser's assumptions, and the appraisal's compliance with USPAP rand UASFLA requirements. Assumptions and Limiting Conditions This review has been made with the following general assumptions: 1. This review report is intended to provide an opinion of the appraisal's conformance in accordance with regulations, standards and guidelines, and to determine the appraisal's acceptability with regard to adequate support of the value conclusion. 2. This review report is based on information and data contained in the appraisal report which is the subject of this review. 3. It is specifically assumed that the data included in the report is the most applicable data available, as of the date of this report, for determining the valuation for the subject. 4. This review was made in the context of market conditions as of the effective date of the report/value. 5. It is also assumed that the data used in the analysis of the appraisal report is factual and accurate. 6. All of the assumptions and limiting conditions (typical and otherwise) contained in the appraisal report, by reference, are made part of this review, unless otherwise stated herein. 7. No responsibility is assumed for the legal description or for matters that pertain to legal title considerations including easements, encroachments or encumbrances. I have not reviewed a title policy and I am not an expert in this area. Legal counsel should be retained to verify these aspects of the subject property. 8. If a discounted cash flow is included, it is assumed that the appraiser modeled the Argus lease -by -lease analysis program properly. The Argus computer disks have not been provided to the reviewer and this should not be considered an audit of the lease -by -lease analysis. This type of audit is beyond the scope of this review. 9. I reserve the right to consider any new or additional information or data, which may subsequently become available and may revise the opinions or conclusions of the review if such data and information indicates the need for required change(s). 10. The reviewer and CBRE make no express or implied representation or warranty of any kind, and expressly disclaim any liability to any person or entity with respect to the appraisal report that is the subject of this review. Rev. 16-397MI-1165 Wagner Square Site, 1455 NW 17th Street, Miami, Florida 33125 11 of 11 APPRAISAL REVIEW PROPERTY: A 42,309 SQUARE FOOT LAND PARCEL PROJECT No.: 2342.061 1455-1495 N. W. 17TH STREET, 1700 N.W. 14TH AVENUE & 1700-1799 N.W. 15TH AVENUE MIAMI, FLORIDA PREPARED FOR: U.S. DEPARTMENT OF VETERANS AFFAIRS RICHARD BANCHOFF ISI PROFESSIONAL SERVICES REVIEW OF APPRAISAL PREPARED BY: WARONKER & ROSEN 5730 S.W. 74TH STREET, SUITE 200 SOUTH MIAMI, FLORIDA 33143 DATE OF REVIEW: MARCH 30, 2016 PREPARED BY: QUINLIVAN APPRAISAL, P.A. 7300 N. KENDALL DRIVE - SUITE 530 MIAMI, FLORIDA 33156 QUINLIVAN APPRAISAL A PROFESSIONAL ASSOCIATION 7300 NORTH KENDALL DRIVE, SUITE 530 MIAMI, FLORIDA 33156 J. Mark Quinlivan, MAI State Certified General Appraiser RZ 0000112 April 1, 2016 Richard Banchoff, Legal Counsel ISI Professional Services 1201 15th Street, NW Suite 200 Washington, DC 20005 RE: Appraisal Review of Telephone (305) 663-6611 Thomas F. Magenheimer, MAI Fax (305) 670-4330 State Certified General Appraiser jmgmai@aol.com RZ 0000553 Josh L. Rosen, MAI Alejandro C. Puente Waronker & Rosen, Inc. 5 73 0 S. W. 74`h Street, Suite 200 South Miami, Florida 33143 Dear Mr. Banchoff: In accordance with Purchase Order No. 1109, I have prepared this Appraisal Review on an appraisal report prepared by the above referenced appraisal firm. This Appraisal Review was prepared to conform to the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisitions. The subject property is a 0.97 acre parcel of land located at 1455-1495 N.W. 17th Street, 1700 N.W. 14th Avenue & 1700-1799 N.W. 15th Avenue, Miami, Miami -Dade County, Florida. The property is currently vacant land. I hereby certify that I have no present or contemplated future interest in the subject of this Appraisal Review. I have investigated all of the factors affecting the Market Value and all information used was true and correct to the best of my knowledge. To the best of my knowledge, the opinions and conclusions were developed and this Appraisal Review was prepared in accordance with the standards and reporting requirements of the Uniform Appraisal Standards for Federal Land Acquisitions. The scope of the Appraisal Review involved a desk review of the Appraisal Report and the completion of the following review analysis. The review appraiser has not inspected the subject property, nor the sales utilized in the appraisal. Richard Banchoff, Legal Counsel ISI Professional Services April 1, 2016 Page 2 As a result of my investigation, I have concluded that the appraisal is in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). The reviewer agrees with the appraisal methods and techniques utilized in the Appraisal Report and mathematical calculations in the reports were checked and found to be accurate. The market value estimate is considered supported and reasonable. The appraisal requires a few minor revisions to be technically compliant with the Uniform Appraisal Standards for Federal Land Acquisitions. The requirements not addressed in the appraisal are as follows: Section A-4 - The appraisers' certification did not include a statement reporting if the property owner or representative was given an opportunity to accompany the appraiser on the property inspection; Section A-6 - The appraisal did not include a statement identifying the person taking the photographs of the subject property; Section A -13a - The appraisal did not include a statement concerning the existence or non- existence of commercially valuable mineral deposits; Section A -13e - The appraisal did not include a ten-year record of all sales of the property under appraisal. The appraisal did include a recent sales history, but did not state if there had been any additional sales in the ten year period immediately preceding the acceptance of the assignment. The exclusion of the aforesaid requirements of the Uniform Appraisal Standards for Federal Land Acquisitions is considered minor and would not significantly impact the credibility of the appraisal report. Therefore, I would recommend that the intended users of the appraisal accept the appraisal report for its intended use, after the revision of the few minor technical issues stated herein. Respectfully submitted, Thomas F. Magenheimer, MAI State -Certified General Appraiser Certification Number: RZ0000553 TFMJb (16-011) QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Executive Summary TO: FROM: Appraisers Under Review: Project Name: Project Number: Special Limiting Conditions: Hypothetical Conditions: Effective Date of Appraisal: Date of Report: Property Address: Owner: Property Description: Land Size: Present Use: Interest Appraised: Final Estimate of Value Richard Banchoff, Legal Counsel ISI Professional Services 1201 15th Street, NW Suite 200 Washington, DC 20005 Thomas F. Magenheimer, MAI 7300 N. Kendall Drive, Suite 530 Miami, Florida 33156 305-663-6611 Waronker & Rosen, Inc. Josh L. Rosen, MAI Alejandro C. Puente VA Land Acquisition 2342.061 None None February 24, 2016 March 23, 2016 1455-1495 N.W. 17th Street, 1700 N.W. 14th Avenue & 1700-1799 N.W. 15th Avenue, Miami, Florida City of Miami c/o Department of Public Facilities 444 S. W. 2nd Avenue Miami, FL 33130 Vacant land parcel 0.97 acres Vacant Fee Simple $5,300,000 1 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW S.R. 3-2-a Client The client is U. S. Department of Veterans Affairs (VA) and ISI Professional Services. Intended Users U. S. Department of Veterans Affairs (VA) and ISI Professional Services are the intended users of this appraisal review report. Intended Use The intended use of this appraisal review is for the selection of an appraisal for a possible acquisition of the property. Purpose of the Assignment The purpose of this appraisal review is to determine if the content, analysis, and conclusions contained within the appraisal report being reviewed is in compliance with all applicable standards and contract requirements. The purpose does not include the development of a separate opinion of value about the subject property of the work under review. S.R. 3-2-b Subject of the Appraisal Review Assignment - s.R.3-1(b)(p The subject of this review is a 0.97 acre vacant land parcel located at 1444-1495 N.W. 17th Street, 1700 N.W. 14th Avenue & 1700-1799 N.W. 15th Avenue, Miami, Miami -Dade County, Florida, prepared by: Josh L Rosen, MAI State Certified General Appraiser #RZ395 Alejandro C. Puente State Certified General Appraiser #RZ3697 Waronker & Rosen, Inc. 5730 S.W. 74th Street -Suite 200 South Miami, FL 33143 Date of the Review - s.R.3-1(b)(ii) The date of this review assignment is April 1, 2016. 2 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Property and Ownership Interest Appraised (if any) in the Work Under Review- s.R.3-1(b)(iii) The appraisers estimated the market value of the fee simple interest of the property subject to no hypothetical conditions. Date of the Work Under Review - s.R.3-1(b)(iv) The date of the report that is the subject of this assignment is March 23, 2016. Effective Date of the Opinion in the Work Under Review - s.R.3-1(b)(iv) The effective date of the opinion (date of valuation) of the work under review is February 24, 2016. Appraiser Who Completed the Work Under Review - s.R.3-1(b)(v) The appraisers who completed the work under review are Josh L. Rosen, MAI, State Certified General Appraiser RZ395 and Alejandro C. Puente, State Certified General Appraiser RZ3697. Their business office is 5730 S.W. 74th Street, South Miami, Florida, 33143. S.R. 3-2-c State the Nature, Extent, and Detail of the Review (Scope) As previously stated, the purpose of this appraisal review is to determine if the content, analysis, and conclusions contained within the appraisal report being reviewed is in compliance with all applicable standards and contract requirements. The purpose does not include the development of a separate opinion of value about the subject property of the work under review. The Appraisal Review consists of a desk review of the appraisal report. The subject property and the sale properties were not inspected for this assignment: however, the review appraiser is familiar with the subject property and the sale properties. Within the Appraisal Review the compliance of the appraisal with the Uniform Standards of Professional Appraisal Practice (USPAP) was considered as well as compliance with the standards and reporting requirements of the Uniform Appraisal Standards for Federal Land Acquisitions. Standard Rule 3 of the Uniform Standards of Professional Appraisal Practice (USPAP) has been carefully considered and applied in the development and communication of this Technical Review Memorandum. 3 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW S.R. 3-2-d Completeness of the Material Under Review- s.R.3-1(d) The material under review is considered complete within the scope of the work applicable to this assignment. The reviewer noted four minor technical issues required by the Uniform Appraisal Standards for Federal Land Acquisitions that were not addressed in the appraisal. The requirements not addressed in the appraisal are as follows: Section A-4 — The appraisers' certification did not include a statement reporting if the property owner or representative was given an opportunity to accompany the appraiser on the property inspection; Section A-6 - The appraisal did not include a statement identifying the person taking the photographs of the subject property; Section A -13a - The appraisal did not include a statement concerning the existence or non- existence of commercially valuable mineral deposits; Section A -13e - The appraisal did not include a ten-year record of all sales of the property under appraisal. The appraisal did include a recent sales history, but did not state if there had been any additional sales in the ten year period immediately preceding the acceptance of the assignment. The exclusion of the above stated requirements of the Uniform Appraisal Standards for Federal Land Acquisitions from the appraisal are considered minor and would not significantly impact the credibility of the appraisal. However, these items should be corrected in the appraisal to be compliant with the Uniform Appraisal Standards for Federal Land Acquisitions. Adequacy and Relevance of the Data & Propriety of Adjustments- s.R.3-1(e) The data summarized in the appraisal report under review was adequate. In the Sales Comparison Approach, the appraiser made adjustments to denote the comparability of each sale to the subject property. The quality of the data of the land sales was as good as can be expected based on the location and physical characteristics of the subject site. The sale sites are located in the same market area as the subject property. The appraiser analyzes and adjusts the sales considering the location, physical characteristics and regulatory issues impacting the subject property. Six sales of properties with similar characteristics to the subject property are presented and analyzed. The appraiser made qualitative adjustments to denote the comparability of each sale to the subject property. 4 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW For the most part, the adjustment process of the appraiser was logical and appropriate. It should be understood that the sales occurred in a period with increasing market conditions and the unit prices of the sales do not form a tight pattern. The sales are adequately analyzed and adjusted to form a credible opinion of value. The methodology utilized to estimate the value of the site is considered appropriate. The number of sales utilized and the quality of the sales appear to be the best available. Appropriateness of the Appraisal Methods - s.R.3-1(p The appraiser utilized the Sales Comparison Approach to value the subject property. The appraisal employs a direct sales comparison methodology, which is appropriate since comparable sales are available in the market area. The property is not improved with a building, so a Cost Approach to value is not appropriate. The property is reported to not be leased and is located in an area where vacant land sites are typically not rented. Therefore, an Income Approach to value is not considered appropriate. The appraisers applied the appraisal methods relied upon by market participants. The appraisal methods and techniques used in the development and communication of the estimate of market value are appropriate. Reasonableness of Analysis, Opinions and Conclusions - s.R.3-1(g) In this report, one of the three accepted appraisal techniques was utilized. The value estimates indicated by these approaches are as follows: Income Approach Sales Comparison Approach Cost Approach Final Estimate of Value Not applicable $5,300,000 Not Applicable $,000 The reviewer agrees with the appraisal methods and techniques utilized in the Appraisal Report and mathematical calculations in the report were checked and found to be accurate. The presentation and analysis of the market data is considered to adequate to form a credible opinion of market value. S.R. 3-2-e Other Known Pertinent Information N/A k QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Recommendation The appraisal under review is complete; the analyses and conclusions are adequate, relevant, appropriate, and reasonable. The report complies with USPAP. The report requires four minor revisions to be compliant with the Uniform Appraisal Standards for Federal Land Acquisitions. The appraisal under review is recommended for use by the intended users for the stated intended use after the addition of the four minor revisions noted. LIMITING CONDITIONS I . Possession of this Technical Review Memorandum, or a copy thereof, does not carry with it the right of publication. 2. This Technical Review Memorandum is intended solely for the use of the Marquis Bank. Neither all nor any part of the contents of this Technical Review Memorandum shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the reviewer. 3. The reviewer, by reason of this Technical Review Memorandum is not required to give further consultation or testimony, or to be in attendance in court with reference to the properties that are the subject of this review, unless arrangements have been previously made. 4. This Technical Review Memorandum constitutes a limited assignment and should not be construed as an appraisal. The assignment did not include the reviewer to form an opinion of value about the subject properties of the work reviewed. 5. The analysis, opinions and conclusions in the Technical Review Memorandum are based solely on the data, analysis, and conclusions contained in the appraisal reports under review. It is assumed that these data are representative of existing market data. No attempt, unless otherwise stated, has been made to obtain additional market data for this review. 6. All analysis and conclusions expressed by the reviewer are limited by the scope of the review process as defined herein. 6 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW S.R. 3-2(f) CERTIFICATION I certify that, to the best of my knowledge and belief: - the facts and data reported by the reviewer and used in the review process are true and correct. - the analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the properties that are the subject of this report and no personal interest with respect to the parties involved. - I have no bias with respect to the properties that are the subject of this report or to the parties involved with this assignment. - my engagement in this assignment was not contingent on developing or reporting predetermined results. - my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in this review or from its use. - my analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice and the Uniform Appraisal Standards for Federal Land Acquisitions. - I have not made a personal inspection of the subject property of the work under review. - no one provided significant appraisal, appraisal review, or appraisal consulting assistance to the person signing this certification. - the reported analyses, opinions and conclusions were developed, and this report has been prepared, the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. - as of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. Thomas F. Magenheimer, MAI State -Certified General Appraiser Certification Number: RZ0000553 7 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Last Update: December 2011 Page 3 of 4 SCOPE OF WORK - REVIEW APPRAISAL Land Acquisition Due Diligence For 0.97 acres of land in Miami -Dade County, Miami, FL "EXHIBIT A" CERTIFICATION OF APPRAISER The undersigned hereby certifies to the United States of America and the U.S. Department of Veterans Affairs: 1. That on MA , I visually inspected the property and comparable sales selected, analyzed and described in the attached appraisal. I am not aware of any additional sales data or additional information that may impact the value of the subject property. 2. That I have no direct or indirect present or contemplated future personal interest in the property described therein or in any benefit from the acquisition, and I have no personal interest or bias with respect to the parties involved. 3. That the facts and data reported by the review appraiser and used in the review process are based on that information provided by the author of the attached appraisal report and any specialty reports, and that this information is considered true and correct. No one has provided significant professional assistance to the person signing this review report. 4. That the analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses, opinions and conclusions. I have no bias with respect to the property that is the subject of this review or the parties involved. S. That my determination has been reached independently based on the appraisal without any collusion or direction, and my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. This review report is based on the data and information provided in the actual appraisal report and any specialty reports used therein. 6. That my analyses, opinions, and conclusions were developed and this review report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice and are based on the scope of work described herein. 7. That I have given consideration in this review to the value of the part taken, and damages and/or benefits to the remainder, if any, to the extent allowed under Federal or state statutes; and that as near as can be determined noncompensable items of damage under 8 Last Update: December 2011 Page 4 of 4 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW SCOPE OF WORK - REVIEW APPRAISAL Land Acquisition Due Diligence For 0.97 acres of land in Miami -Dade County, Miami, FL Federal or state law have not been included in appraisal. 8. In the event that I have completed my own independent research of the subject property and any additional information and data or I have documented the attached appraisal, this will be so stated in the accompanying review appraisal report. Otherwise, this review has been based on only the data and information provided by the appraiser of record for this appraisal report. N a m e: Thomas F. Magenheimer, MAI Title: Quinlivan Appraisal, P. A. Date: 3/36/16 C QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Q UALIFICA TIONS OF THE APPRAISER THOMAS F. MAGENHEIMER Experience: 11/84 - Present QUINLIVAN APPRAISAL, P.A. 7300 N. Kendall Drive, Suite 530 Miami, Florida 33156 1/07 — Present T. F. MAGENHEIMER APPRAISAL, INC. 7300 N. Kendall Drive, Suite 530 Miami, Florida 33156 Education: University of Richmond, Richmond, Virginia BA - Bachelor of Arts in History (1982) Professional Affiliations: Member of the Appraisal Institute (MAI No. 09166) Real Estate Salesman - State of Florida - Certificate No. 0344882 Certified General Appraiser, State of Florida, License No. RZ0000553 Member Sigma Alpha Epsilon Fraternity Qualified as an Expert Witness in the Following Courts: Miami -Dade County Circuit Court Broward County Circuit Court U. S. Bankruptcy Court Other Activities: Admissions Committee - South Florida -Caribbean Chapter of the Appraisal Institute - (1992) Newsletter Editor - South Florida -Caribbean Chapter of the Appraisal Institute - (1991 - 1995) President - South Florida -Caribbean Chapter of the Appraisal Institute - (1996) Board of Trustees - Palmer -Trinity School (1989 - 1993) 10 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Thomas F. Magenheimer in affiliation with Quinlivan Appraisal P.A. has prepared Appraisal Reports for the following: Institutions and Corporations: AT&T Archdiocese of Miami Atlantic Security Bank The Bank of America Bank United Barry University Bessemer Trust Company California Bank and Trust Chevron Oil Company Chase Manhattan Bank Chemical Bank Citibank Citrus Bank City National Bank of Miami Coamerica Bank Coconut Grove Bank Commerce Bank Commercial Bank of Florida Consolidated Bank Colonial Bank County National Bank Eagle National Bank Eastern National Bank Equitable Bank Espirito Santo Bank Farm Credit of South Florida Fidelity Bank First International Bank First National Bank of South Miami Florida International University First Nationwide Bank Florida Memorial College Florida Power and Light Company Florida Rock Industries Great Eastern Bank of Florida Greyhound Lines HSBC Hemisphere National Bank Intercontinental Bank International Bank of Miami, N.A. 11 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW LaSalle National Bank Marine Midland Bank McDonalds Corp. Mellon United National Bank Metro Bank Miami -Dade County Community College Miami -Dade Water and Sewer Authority Northern Trust Bank of Florida Ocean Bank Pacific National Bank Pan American Bank Pointe Bank Shell Oil Company South Trust Bank SunTrust Bank TotalBank Trade National Bank Trust for Public Lands UniBank Union Planters National Bank University of Miami Wachovia Wal-Mart YMCA Governmental Agencies: City of Aventura City of Coral Gables City of Hialeah City of Miami City of Miami Parking Authority City of Miami Beach City of Miramar City of North Bay Village City of North Miami Beach City of South Miami City of Sunny Isles Beach Miami -Dade County Aviation Department Miami -Dade County Department of Development & Facilities Management Miami -Dade County HUD Miami -Dade County Property Appraisal Adjustment Board Miami -Dade County Public Schools Miami -Dade County Public Works Department Miami -Dade County Transportation Administration 12 QUINLIVAN APPRAISAL, P.A. REAL ESTATE APPRAISAL TECHNICAL REVIEW Miami -Dade Water & Sewer Department South Florida Water Management District State of Florida, Attorney General's Office State of Florida, Department of Community Affairs State of Florida, Department of Corrections State of Florida, Department of Environmental Protection State of Florida, Department of Insurance State of Florida, Department of Rehabilitation and Liquidation State of Florida, Department of Transportation Town of Golden Beach United States Army Corps of Engineers United States Department of Justice United States Department of Commerce United States Department of the Interior United States General Services Administration Village of Islamorada Village of Key Biscayne Village of Pinecrest Law Firms: Akerman Senterfitt Greenberg, Traurig Daniels, Kashton, Downs and Robertson Holland and Knight, LLP Shutts & Bowen Ruden McClosky, LLP Steel, Hector & Davis, LLP Weiss, Scrota, Helfman, Pastoriza, Guedes, Cole and Boniske, P.A. Types of Properties Appraised: Single Family Residences Apartment Buildings Office Buildings Retail Stores Shopping Centers Condominium Apartment Buildings Golf Courses Residential Subdivisions Automobile Dealerships Vacant Land Hotel/Motels Warehouses Nursing Homes Mobile Home Parks Schools Service Stations Marinas Wetlands 13 Appraisal Report Prepared for The U.S. Department of Veterans Affairs (VA) Mr. Richard Banchoff, Legal Counsel ISI Professional Services Property Appraised Vacant Mixed -Use Zoned Land Folio Nos. 01-3135-087-0010 and -0012 1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW 15th Avenue Miami, FL 33130 P.O. # 1108/ISI Project # 2342.061 Task Order # VAIO1F-16-J-2522 Date of Valuation Prepared by February 24, 2016 Waronker & Rosen, Inc. 5730 SW 74th Street, Suite 200 South Miami, Florida 33143 JOSH L. ROSEN, MAI ALEJANDRO C. PUENTE, APPRAISER File # 8398 Waronker & Rosen, Inc. Real Estate Appraisers and Consultants Miami -Dade County Office Broward / Palm Beach County Office 5730 SW 74th Street, Suite 200 10191 W. Sample Road, Suite 211-A South Miami, Florida 33143 Coral Springs, Florida 33065 Lee H. Waronker, MAI, SRA Phone: (305) 665-8890 / Fax: (305) 665-5188 Josh L. Rosen, MAI lee@waronkerandrosen.com www.waronkerandrosen.com josh@waronkerandrosen.com March 11, 2016 Mr. Richard Banchoff, Legal Counsel ISI Professional Services 1201 15th Street, NW, Suite 200 Washington, DC 20005 Re: Vacant Mixed -Use Zoned Land 1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW 15th Avenue Miami, FL 33130 WRI File No. 8398 PO# 1108 / ISI Project # 2342.061 Task Order # VA101F-16-J-2522 Dear Mr. Banchoff: We have prepared an appraisal report of the above referenced property for the purpose of estimating the As Is market value of the fee simple interest as of February 24, 2016. The terms market value and fee simple interest are defined in the pages of this report. This report has been prepared based on the scope of work which is detailed on a following page. The reader of the appraisal is strongly advised to read the scope of work so as to understand the scope of this appraisal. This report is intended for use only by the client and intended users as noted herein. No additional intended users are identified or intended. Use of this report by others is not intended by the appraiser. No one else, or any other entities, should rely on this appraisal other than those noted herein. The subject property is comprised of two parcels located along the east side of NW 15th Avenue, at approximately NW 18th Street in the city of Miami, Miami -Dade County, Florida. This area is known as the Civic Center, and is home to three major hospitals (Jackson Memorial Hospital, the Veterans Administration (VA) Hospital and the University of Miami Medical Center) as well as numerous Government Buildings. The site consists of 42,309 square foot (0.97 acres). The Miami - Dade County Folio tax numbers are 01-3135-087-0010 and 01-3135-087-0012; and the property has multiple addresses (1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW 15th Avenue). Zoning on this site is T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants I Mr. Richard Banchoff, Legal Counsel ISI Professional Services March 11, 2016 Although requested, neither a survey nor any other items were provided for the valuation. Two surveys were located in the Miami -Dade County Public Records, within the deeds transferring ownership of the subject property. They are shown within this appraisal. Any deviation from the assumptions used herein will likely result in a change of value. As a result of our investigation, it is our opinion that the As Is market value of the fee simple interest as of February 24, 2016, is in the amount of FIVE MILLION THREE HUNDRED THOUSAND DOLLARS ($5,300,000) Following the table of contents is the scope of work and the certification. The reader is advised to review the assumptions and conditions which follow the certification to understand the limitations applicable to this appraisal. Very truly yours, Real Estate Appraiser No. RZ395 Alejandro V _Vite State-Certifi4l General Real Estate Appraiser License No. RZ3697 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 2 Table of Contents LETTER OF TRANSMITTAL TABLE OF CONTENTS SCOPE OF WORK CERTIFICATION GENERAL ASSUMPTIONS AND LIMITING CONDITIONS INTRODUCTION SUMMARY OF PERTINENT DATA MIAMI-DADE COUNTY MAP PLAT MAP AERIAL PHOTOGRAPH AERIAL PHOTOGRAPH (CLOSE-UP) SURVEY SURVEY SUBJECT PHOTOGRAPHS DESCRIPTION & ANALYSES PURPOSE OF THE APPRAISAL CLIENT, INTENDED USER AND USE OF THE APPRAISAL DEFINITION OF REAL PROPERTY INTEREST APPRAISED DEFINITION OF MARKET VALUE LOCATION AND ADDRESS LEGAL DESCRIPTION OWNER OF RECORD HISTORY OF THE SUBJECT PROPERTY SITE DATA ZONING FLOOD ZONE REAL ESTATE ASSESSMENT AND TAXES CITY OF MIAMI DESCRIPTION NEIGHBORHOOD OVERVIEW DESCRIPTION OF THE SITE IMPROVEMENTS SUPPLY AND DEMAND / MARKET CONDITIONS TYPICAL PURCHASER OF THE SUBJECT HIGHEST AND BEST USE APPRAISAL PROCESS COST APPROACH INCOME CAPITALIZATION APPROACH SALES COMPARISON APPROACH RECONCILIATION OF VALUE ADDENDA COUNTY AREA DESCRIPTION FLOOD ZONE MAP ENGAGEMENT LETTER APPRAISER LICENSES 1 3 4 5 7 9 10 11 12 13 14 15 16 17 25 26 26 26 27 28 28 28 28 29 29 29 30 32 35 35 36 37 38 40 41 42 43 59 60 61 67 69 74 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 3 Scope of Work The appraisal problem herein is to estimate the As Is market value of the fee simple interest of the subject property. The only approach used in this appraisal is the sales comparison approach. The income capitalization approach and the cost approach are not applicable to the valuation of the subject property. All appraisals begin by identifying the appraisal problem. Data on the subject property can be derived from various sources including but not limited to, the property owner, the county property appraiser's office, recorded plats and surveys. When possible, more than one source is utilized to confirm data and the data sources are acknowledged. Land size is based on surveys (when available), public records and recorded plats. Land measurements are not performed. Valued herein is vacant land which can be valued by the following methods: 1. Sales Comparison Approach 2. Market Extraction 3. Allocation 4. Land Residual 5. Ground Rent Capitalization 6. Subdivision Analysis The sales comparison approach was used herein and was considered the most applicable method in the valuation of the subject property. A search was performed for the sale of properties considered comparable to the subject property. Research of comparable sales and market data include, but is not limited to using the following data sources: CoStar Imapp Newspaper clippings Board of Realtors' Multiple Listing Service National Multiple Listing Service Loopnet. com Comparable sales are inspected and the transactional information is reported. Sale prices are from public records and are typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent, or closing attorney. All information is analyzed in processing the appraisal report and as support for the estimated value. The scope of work for this assignment has been described above and is to be typical for an assignment of the nature of the subject appraisal problem. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants Certification The undersigned does hereby certify that, to the best of my knowledge and belief: 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 my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. 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. 7. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the following requirements. • Uniform Standards of Professional Appraisal Practice (USPAP) • The Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute • The State of Florida requirements for state -certified appraisers • Uniform Appraisal Standards for Federal Land Acquisitions 8. I have complied with the USPAP Competency Rule. 9. This appraisal report sets forth all of the limiting conditions imposed by the terms of this assignment or by the undersigned affecting the analyses, opinions and conclusions contained in this report. 10. No one provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Additionally, it is subject to review by the state of Florida relating to review by the real estate appraisal subcommittee of the Florida Real Estate Commission. Waronker & Rosen, Inc. •:• Real Estate Appraisers & Consultants 12. As of the date of this report Josh L. Rosen, MAI has completed the continuing education program of the Appraisal Institute. 13. As of the date of this report, Alejandro C. Puente has completed the Standard and Ethics Education Requirements for Candidates of the Appraisal Institute. 14. I, Josh L. Rosen, MAI have made a personal inspection of the property that is the subject of this report. 15. I, Alejandro C. Puente have made a personal inspection of the property that is the subject of this report. 16. The estimated As Is market value of fee simple interest as of February 24, 2016, is in the amount of $5,300,000. 17. Neither the undersigned, nor Waronker & Rosen, Inc. have performed any valuation or professional services involving the subject property in any capacity, nor have we been involved with the management, leasing, disposition, nor any similar service regarding the subject property in the past three years. , ,Aosbe, MAI ;rtified &neral Real Estate Appraiser No. RZ395 Alejandro V. Tffdnte State-Certifi d General Real Estate Appraiser License No. RZ3697 Date of Report March 11, 2016 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 6 General Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable but, no warranty is given for its accuracy. 5. All engineering studies are assumed to be correct. Any plot plans or illustrative material in this report are included only to help the reader visualize the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering that may be required to discover them. The values estimated herein are subject to typical inspections such as roof, structural, and termite, if applicable. 7. It is assumed that the property is in full compliance with all applicable federal, state and local environmental regulations and laws unless the lack of compliance is stated, described and considered in the appraisal. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a non -conformity has been identified, described and considered in the appraisal. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and considered in the appraisal. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presences of substances such as asbestos, ureaformaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 7 12. The physical condition of the improvements, if any, described herein was based on visual inspection. No liability is assumed for the soundness of structural members, since no engineering tests were made of same. 13. Neither all nor any part of this appraisal report shall be disseminated to the general public using the appraiser's name or appraisal designation, without prior written consent of the appraisers signing this appraisal report. 14. Authorization is not allowed for the out -of -context quoting from, or partial reprinting of, this appraisal report. 15. By reason of the report, there is no requirement to testify with reference to the property herein appraised, unless arrangements have been previously made. 16. The reader should be advised that our employment was not contingent on the appraisal providing a minimum valuation, a specific calculation or the approval of a loan. Additionally, we have complied with the USPAP Competency Rule. Limiting Conditions: 1. The allocation of total value between land and improvements applies only under the described utilization. The separate valuations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. 2. The Americans with Disability Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the requirements of the ADA. It is possible that a compliance survey of the property and a detailed analyses of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the act. If so, this fact could have a negative impact upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 8 Introduction Introduction WL aronker .at.l. ■a.raiaara \J aad a ■717}r -i oxen R A T E D Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 9 Introduction Location: Address: Type of Use: Zoning: Census Tract: Flood Zone: Land Area: Land Value: Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Summary of Pertinent Data Value by Cost Approach: Value by Income Capitalization Approach: Value by Sales Comparison Approach: As Is Market Value Estimate of the Fee Simple Interest: Date of Valuation: Along the east side of NW 15th Avenue, at approximate NW 18th Street in the City of Miami, Miami -Dade County Florida. This area is known as the Civic Center, and is home to three major hospitals (Jackson Memorial Hospital, the Veterans Administration (VA) Hospital and the University of Miami Medical Center) as well as numerous Government Buildings. 1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW 15th Avenue Miami, FL 33130 Vacant mixed-use land T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL 30.04 AE (Map 12086CO311 L) 42,309 square feet (0.97 acres) $5,300,000 ($125 per square foot) Not applicable Not applicable $5,300,000 $5,300,000 February 24, 2016 Date of Inspection: February 24, 2016 Date of Report: March 11, 2016 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 10 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Miami -Dade County Map :=. = riaiianuaie tsaacn irpffiar c , .._ _J _i:Es Estai s, rilura. .s �_ Per ajUi 1 Sunny Isle a 'Cart] City Iwrh g` LNorth Miami Beach T4 s C k1i LAI., Jia -Lac' a C North Miami 77-, - a Bal Harbcxir r. 1 I3,3'j Harbcr:. y T L €":aynig Par'.Islarxf-& Surisrce I,apeah Moir Shine- • _ , I.�. r�rra _ H is lea h Ba Village _ „ paral ti`ir�ir ' lf4tPR1Fi11krSi - F I_ 0 R I L A aR ami Beach e3ietr,ater ; . mst "bar.- 11 — eCr1E5tE'rA t i a n if i G _ ir3 oFa Virginia KF1 }�7J4 L 3i4�` D t Miami t F:oljt11 ro A r'+- 0 Plidrnl Kra Rau,.+rrr• �v 315:t' _._ 11 L a a Biscayne Bay Putuatle Prasarue Key Bracayre " P;ne rest c+cenaarr 71 6T( £ rr Rrhm*rd Aeghts - ,�enina r 1241h St f Cutler Ridge SW 232nd 5t. eriCs3yri liaj` l_ ..c+• �Iti7C5ir.7, i! 1'ku"idrr kt.•fx Sw 25Q L�, ' Biscayne National Park r 8VV 299th Le Pa - •S gide City Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 11 Introduction I LLL-jL11_ Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Plat Map Subject 34 P 35 �FT e% el Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 12 ,r IA tR7H TER--R.aSIIl�' 'f~o NW '17T F{ ST. S �j u � f � _J.Jr :� .' NW 1f.TH TFR N 'it M :.east `• f 'q "OVA NW'+1frTH i N'6W�1,,5'T,F1Esi,T a N�'4TH40R _ _ Introduction Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Aerial Photograph (Close-up) uJl Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 14 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Survey (Folio 01-3135-087-0010) 5C,1C. " = 100 PrA t I 5'1c.20Trf a2W.2M 5e9'r7#cr. CW- TIFIEO TO W419rlrrSquars 1, LLC CltttarNN NA. As 5uebmWrE ar&ar setW* AT] MA City of Miami Blabarg, Grayson, KuW d Strauss FW Arno r ica-i We _ F' T F .Ii J79..99YA,d' 3: J.C&r k.a19''5'ww u.'ff I .'tV 5TRE T A porgpn Orland bWWd in the N.W" 54 of Ston 35, TOan3hip 53 South,, Range 41 Edal, Gty of f1 Ww, Wwi-Dade Co", Fiartar more DOitiuAarly destrbed as fodm"; Begin at the SouNrmst WM& of Tr -3M "A`, WAGNER SQUARE, amoordiry tv 3612 plat thereof, - re=ow in Pilot Book 161, Page 66, Of the Public R,eox& of Mi3rnr-Daae cOunty, Florida, tttrsaca S 090"'pgI E abng wu nn the Scarth fine of said Tract "A" a distance o7 97.23 feet; We nine N 09°10'33" W a dfAdmv of 65.791l?,2Cto a ptvrt; thio e N 69°4927" E a distanoz 4f 201.77 feet to a Dorm; thence N 00°1(Y33` W a *Wnce of 962.77 Feet to a point on the North We of said Tract A",- thenen N W05746" W elarlp and on the Nath fine of smo Tire "A" a dktartice of 259.25 Wt to the NW comer of said Tract "A'; dwice 5 001 f S'48" E akxag Lhe Wast line of said Tract "A" and the East Ficjrt of way or t+.iY. 15ds Avenue, a distance of 163.33 Feet to the Point of Be9brung, said lands ox9alning T$,gpg sq. ft. mom or ilm. IM 1KlTR 9 W�YZI. I FERtaiY CEK1'IFY: arm 01 11 W IWy mom re cIt`fnuti I±th" r Wlrardr p ail %M ba' Me FLO=PPERN05-3127. q'o 9;Jk'YENILAS, NC17 d•ad/Aneaaara G..7F)Mda SbrAnv �VES 09K607 R EYOR AND ..b'tati� at Ft widw Atvarrz, Awe" andAasocaatae. Int LE. N+- 9067 551r>reyvrs, htappera and Lwd Planners 6791 ENV 167th hyena x220, tr.rri, ft 33173 PI -010 305.22o-247# For 305-W-8 IS i 600k259321Page2891 CFN#20070918434 Page 3 of 3 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 15 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Survey (Folio 01-3135-087-0012) 510ETr:.1i 10 ACCOWANY Lf,A L?E,5CFJr TT0f4 P1 Wir I I f e17►sfJ 5" AM a 1l7'JIgct. PV Cl— VV I j t h.g l V. A pertkm of Urid W A M kl dW N.W, K of SeCtW 35, TbKkM p 0 SouU., RanSm 4L East, City of M1 smt, Mbn* Dade Ca j ty, Har da, amm FOAICWlbriv do� alsAAUW5a Corrvtfttce at the Soulmmst aywr & Tftd "A", VIAGNM SQL'ARE� a C W ON tO V1a OK ftfed, as mcxded in PMC &xk 112, Page 65, oc Mve P u W Re[arliy of MlaP*DWe Lttrty, F$Ph*; t*MM S 8905M* E alwig and ,an the South 1ne d yid Trail "A" a d&tarm of 57,23 1eK W ft Point of Ba gl nwV, bwe m N 00'L0'33' W a dfstar t of 85.79 feet to a pant; Iherce N 69N9'Zr E d dWartm cf 201-77 fed to a point: ttenceS WcIOrMw E a dbWmz of 66.46 feat tiWnCe N 9 53'134' W a" and an the South 0M d said Tract rat" OW b eAwAmthimwf a dLomxe or 201.77 feet tO the POW Of tleginnktg, Saki k3ntls Owt lriing 1 .Mi 5q. fr- mare or Nw, Arvame. ftues4ma ■ndAmacNxint L & W- - 3887 Survoyors, Map pare and La f%nnars S�5r1 Card Wy. {suh►B� rAant rt aii Ss Plp�-tiiusPa 7Q 5+61 e1 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 16 Introduction Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Subject Photographs (All photographs were taken on February 24, 2016) 1. Looking east across the site (Front/west elevation) 2. Looking west across the site (Rear/east elevation) Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 17 Introduction 3. Looking southeasterly across the site from the northwest corner 5. Looking west along the north side of the subject property Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 4. Looking south along the west side (street frontage) of the subject property 6. Looking southwesterly across the site from the northeast corner Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 18 Introduction 7. Looking south along the east side of the subject property. VA parking lot to the left. 9. Looking northwesterly across the site from the southeast corner Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 8. Looking west along the south side of the subject property 10. Looking northeasterly across the site from the southwest corner Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 19 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 11. Looking north along NW 15th Avenue. The subject property is to the right. 12. Looking south along NW 15th Avenue. The subject property is to the left. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 20 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Appraiser Qualifications JOSH L. ROSEN, MAI Education: The University of Florida, Gainesville, Florida. School of Business Administration. Major in Real Estate and Urban Analysis. Awarded degree of Bachelor of Business Administration, May 1983. Affiliations: MAI Designation (No. 11800) awarded by the Appraisal Institute in 2001. State -Certified General Real Estate Appraiser, State of Florida, License Number RZ395, May 1990. Experience: Appraised various types of properties, including: Office Buildings Warehouses Shopping Centers Apartment Bldgs. Restaurants Residences Hotels and Motels Amusement Park Golf Courses Industrial Buildings Vacant Land Residential Condominiums Office Condominiums Service Stations Marinas Special Purpose Facilities Churches and Synagogues Dockominiums Vice President/Principal, Waronker & Rosen, Inc., Miami, Florida, from 1987 to present Appraiser, Property Consultants, Inc., Miami, Florida, from 1983 to 1987. Course Work: Appraisal Institute: Course IA -1 Real Estate Appraisal Principles Course IA -2 Basic Valuation Procedures Course IB -A Capitalization Theory and Techniques, Part Course IB -B Capitalization Theory and Techniques, Part B Course 2-1 Case Studies in Real Estate Valuation Course 2-2 Report Writing and Valuation Analysis Courses 410, 420 & 430 Standards of Professional Practice, Parts A, B & C Litigation Valuation Appraising Non -Conforming Uses Partial Interest Valuation — Undivided Appraising Distressed Commercial Real Estate Hotel Appraising — New Techniques for Today's Uncertain Times Fundamentals of Separating Real and Personal Property from Intangible Business Assets Evaluating Commercial Construction Other: Past Regional Representative for Region X of the Appraisal Institute Past Director of the South Florida Chapter of the Appraisal Institute Waronker & Rosen, Inc. 40 Real Estate Appraisers & Consultants 21 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Appraiser Qualifications ALEJANDRO C. PUENTE Education: Master of Business Administration, St. Thomas University, 2010 Bachelor of Arts Degree, Business Studies, St. Thomas University, 2007 Associate in Arts Degree, Miami -Dade Community College, 2003 Affiliations: State -Certified General Real Estate Appraiser, State of Florida, RZ3697 Experience: Waronker & Rosen, Inc. Staff Appraiser April 2010 to present Capital Mortgage, LLC Assistant June 2004 to April 2008 Assisted in the appraisal and in the research of various types of properties, including: Apartment buildings Vacant land Office/industrial/commercial condominium units Warehouses Commercial property Industrial property Marinas Restaurants Hotels Course Work: Gold Coast School of Real Estate Course Basic Appraisal Principles Course Basic Appraisal Procedures Course Residential Report Writing Course State of Florida Law and Appraisers Course 15 Hour National USPAP Course The Appraisal Institute 400: General Appraiser Market Analysis and Highest & Best Use 401: General Appraiser Sales Comparison Approach 402: General Appraiser Site Valuation and Cost Approach 403: General Appraiser Income Approach/Part 1 404: General Appraiser Income Approach/Part 2 405: General Appraiser Report Writing and Case Studies 500: Advanced Market Analysis and Highest & Best Use Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 22 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 LENDERS 1St United Bank Amerasia Bank Apollo Bank BAC Bank BNY Mellon Bank BankUnited Bank of America Bank of Coral Gables Bank Leumi Bessemer Trust Branch Banking and Trust (BB&T) BridgeInvest, LLC C1 Bank CNL Bank Capital Bank Cigna Investments, Inc. Citibank and Citicorp City National Bank of Florida Coconut Grove Bank Comerica Bank Credit Suisse First Boston Mortgage Capital, LLC Espirito Santo Bank of Florida Executive National Bank Fifth Third Bank First Bank of Miami First National Bank of South Miami FirstBank Florida Florida Community Bank Gibraltar Private Bank and Trust HSBC Bank, N.A. Holliday Fenoglio Fowler, LP Intercredit Bank, N.A. International Finance Bank Israel Discount Bank of New York JP Morgan Chase Bank Live Oak Bank Lloyds Intl. Bank (Lloyds of London) Lutheran Brotherhood Marquis Bank Morgan Stanley Mortgage Capital Northern Trust Bank Ocean Bank OptimumBank Popular Community Bank Professional Bank Regions Bank Sabadell United Bank Space Coast Credit Union Stonegate Bank SunTrust Bank Terrabank, N.A. Partial Client List TD Bank, N.A. Totalbank U.S. Century Bank Wells Fargo Bank Zions First National Bank LIFE INSURANCE COMPANIES Allstate Insurance Company American General Life Insurance Co. Equitrust Life Insurance Co. Fortis Capital Corp. & Life Insurance Company Franklin Life Insurance Company General American Life Insurance Co. Independent Order of Foresters John Alden Life Insurance Company Kansas City Life Insurance Company Lumberman's Life Insurance Company Omaha Woodmen Life Ins. Society Standard Life Insurance Company State Farm Insurance Company Sun Life Insurance Co. of America CORPORATIONS Church of Jesus Christ of the Latter -Day Saints Florida Power and Light Corp. (FPL) JC Penny Corporation The Wendy's Company Chevron U.S.A., Inc. Johnson and Johnson Company DEVELOPERS AND INVESTORS Berkowitz Development Group Bristol Group, Inc. Fifteen Group, Inc. Franklin Street Properties Flagler Development Corporation Goldman Properties Hampshire Real Estate Companies Lennar Corporation MDM Development, Inc. Napolitano Realty and Harrap Corp. Noble House Resorts and Hotels Ocean Properties, Ltd. Panther Real Estate PLC Investments, LLC R.K. Associates, Inc. The Scott Robins Companies Wometco Enterprises, Inc. GOVERNMENT AGENCIES Broward County School Board Broward County Public Works Dept. City of Coral Gables City of Miami Beach City of Miami General Services Administration Federal Deposit Insurance Corp. (FDIC) Federal Home Loan Mortgage Corp. (FHLMC) Florida Dept. of Environmental Protection Florida Department of Transportation Florida Keys Aqueduct Authority Miami -Dade Water and Sewer Authority Miami -Dade Co. -Aviation Authority Miami -Dade Co. - County Attorney's Office Miami -Dade Co. - General Serv. Admin. Miami -Dade Co. - Housing & Urban DeN Miami -Dade Co. - Public Works Dept. Miami -Dade Co. - School Board Miami Parking Authority Nature Conservancy, Florida Chapter South Florida Water Management Distric United States Department of Justice United States General Serv. Admin. United States Postal Services Village of Pinecrest LAW FIRMS Akerman, Senterfitt & Eidson Arnstein & Lehr, LLP Barranco & Associates, P.A. Berger Singerman Berman, Wolfe Rennart Vogel & Mandler, P.A. Carlton Fields Colson Hicks Eidson, P.A. Greenberg Traurig, P.A. Holland & Knight Kirkpatrick and Lockhart Kutner and Associates Richman Greer Shutts & Bowen, LLP Stearns, Weaver, Miller, Weissler, Alhadeff & Sitterson, P.A. Steel Hector and Davis Tabas, Freedman, Soloff, Brown & Rigali, P.A Tripp Scott Weiss Scrota Hellman Pastoriza Cole & Boniske, P.A. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 23 Introduction Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Notable Properties Appraised Miami Dade County Miami Seaquarium Virginia Key Miami Free Zone — Global Trade Cntr Miami Miami International Airport Miami Metropolitan Hospital of Miami Miami City of Miami Correctional Facility Miami Spinnaker Marina North Miami Country Club of Miami Golf Course Miami Virginia Key & Rickenbacker Marinas Key Biscayne Mel Reese Golf Course Miami Waterways Yacht Basin Miami Burger King Headquarters — Waterford Miami Porto Vita Club and Spa Aventura Doctors Hospital Coral Gables Ocean Steps Entertainment Center S. Miami Beach Beacon Centre Development Miami Indian Creek Country Club Indian Creek FBI Headquarters Miami BIV Tower Miami Gables Waterway Executive Center Coral Gables Courthouse Tower Miami Joe's Stone Crab restaurant Miami Beach South Shore Hospital Miami Beach Doral Ocean Beach Resort (formerly) Miami Beach SouthCom Headquarters Miami Metro -Dade Bus Facility Miami Fort LauderdaleBroward County Florida Medical Center (Hospital) Ft. Lauderdale Jackson Marine Center Ft. Lauderdale Las Olas Centre Office Building Ft. Lauderdale Martha's Restaurant Hollywood Various Luxury Single Family Homes Fort Lauderdale Seneca Industrial Park Pembroke Park Monroe County/Florida Keys Marriott Key Largo Bay Beach Resort Islander Resort Hawk's Cay Resort, Marina and DRI Westin, formerly Hilton Resort and Sunset Key Island Little Paha Island Louis' Backyard Restaurant Ocean Key Resort Sloppy Joe's Bar Truman Annex - Navy Base Jupiter Beach Resort La Playa Beach Resort Sheraton Four Points Spring Hill Suites Hilton Carillon Park Other Florida Counties Outside of the United States Various Single Family Homes Single Family Home Sapphire Beach Resort Hotel Site Montego Beach Resort Botany Bay Subdivision (400 acres) Ocean Club Resort Land lease under Ritz Carlton Various Land Holdings Vacant Land Buccaneer Hotel and Golf Course Key Largo Islamorada Duck Key Key West Little Torch Key Key West Key West Key West Key West Jupiter, Palm Beach County Naples, Collier County Orlando, Orange County Tampa, Hillsborough County St. Petersburg, Pinellas County Cat Cay, Bahamas Casa de Campo, Dominican Republic St. Thomas, U.S. Virgin Islands Grand Turks and Caicos Islands Montego Bay, Jamaica St. Thomas, U.S. Virgin Islands Grand Turks and Caicos Islands San Juan, Puerto Rico St. Croix, U.S. Virgin Islands West End, Grand Bahama Island St. Croix, U.S. Virgin Islands Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 24 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Description & Analyses aronker � ,..r f�itil• ■ ■ 4 ! 01 M ■ ■pd :::.attar oxen i R P o R n T E D Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 25 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Purpose of the Appraisal The purpose of this appraisal is to estimate the As Is market value of the fee simple interest as of February 24, 2016. The term fee simple interest is defined below and the term market value is defined on the following page. Client, Intended User and Use of the Appraisal The intended user of this appraisal is The U.S. Department of Veteran Affairs (VA) and ISI Professional Services (client). The intended use of this appraisal is for a possible land acquisition. No purchaser or seller of the subject property, nor any borrower are intended users of this appraisal and no such parties should use or rely on this appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. No additional intended users are identified or intended. Definition of Real Property Interest Appraised The real property interest appraised herein is that of the fee simple interest, defined as follows: Fee Simple Interest: an absolute fee without limitations to any particular class of heirs, but subject to the limitations of eminent domain, escheat, police power and taxation. An inheritable estate. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 26 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Definition of Market Value Market Value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined.' The Uniform Standards of Professional Appraisal Practice (USPAP) states Market Value is "a type of value, stated as an opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in the appraisal".2 This requires the appraiser to identify the definition of market value and its authority. The definition that follows is the basis of the valuation in this appraisal and the source is the Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472. Market Value is defined as "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 are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • 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."3 This market value definition is referenced within the appraisal regulations of the following governmental agencies: • Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 • Department of the Treasury • The Federal Reserve System (FRS) • Federal Deposit Insurance Corporation (FDIC) • Office of Comptroller of the Currency (OCC) 1 Appraisal of Real Estate, 14' Edition, page 58 z USPAP 2014-2015, page U-3 3 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472 Waronker & Rosen, Inc. •:• Real Estate Appraisers & Consultants 27 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Location and Address The subject property is comprised of two parcels located along the east side of NW 15th Avenue, at approximately NW 18th Street in the city of Miami, Miami -Dade County, Florida. This area is known as the Civic Center, and is home to three major hospitals (Jackson Memorial Hospital, the Veterans Administration (VA) Hospital and the University of Miami Medical Center) as well as numerous Government Buildings. Address: 1455-1495 NW 17th Street, 1700 NW 14th Avenue and 1700-1799 NW 15th Avenue Miami, FL 33130 Legal Description A copy of the legal description is within the Addenda. Source: www.miamidade.gov Owner of Record City of Miami c/o Department of Public Facilities 444 SW 2nd Avenue Miami, FL 33130 Source: www.miamidade.gov History of the Subject Property In September 2012, the subject property (folio 01-3135-087-0012) was deeded from Wagner Square III, LLC to the City of Miami, c/o Department of Public Facilities as recorded in official record book 28287 at page 4184. At the same time, Folio 01-3135-087-0010 was deeded from Drew M. Dillworth as the Chapter 11 Bankruptcy Trustee for the Substantively Consolidated Bankruptcy Estates of the Debtors, Wagner Square, LLC and Wagner Square I, LLC to the City of Miami, c/o Department of Public Facilities as recorded in official record book 28287 at page 4161. The recorded consideration is $10 per parcel, however, the price on the closing statement was $7,200,000 or $170 per square foot. This price is not representative of the actual transaction amount, as the City was a creditor of the debtor along with other parties. The transaction also involved prior loans from HUD which the City was involved in as well as another parcel and payments to the City long with the City allowing release of escrow funds to the bankruptcy estate. As a result, this transaction was not considered to be arms -length and market related. Based on review of various real estate publications, the subject property is not under contract nor listed for sale. Source: www.miamidade.gov Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 28 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Site Data The subject site is almost rectangular. There is frontage of approximately 164 feet along the east side of NW 15th Avenue, a two lane asphalt paved road in average condition. Depth is approximately 259 feet. Per the public records and the surveys in the deeds, the total area of the parcel is 42,309 square feet (0.97 acres). The subject property is accessible from the east side of NW 15th Avenue. The site slopes various ways, and is at approximate street grade in most areas, to slightly below grade. Utilities available to the site are: Electric: Florida Power and Light Telephone: AT&T Water: Miami -Dade Water and Sewer Sewer Disposal: Miami -Dade Water and Sewer Zoning The subject property is zoned T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL.This zoning district allows the highest density and greatest variety of uses, including civic buildings of regional importance. It is characterized by a network of small blocks, thoroughfares with wide sidewalks, steady tree planting and buildings set close to the frontage with frequent doors and windows. The allowable residential density in this zoning is 150 to 1,000 units per acre. The allowed uses under the open zoning include, but are not limited to residential, lodging, office, commercial, civic, civil support and educational. For a detailed listing of allowable uses and restrictions, refer to the zoning code of Miami, FL. Flood Zone The subject is within Flood Zone AE, areas subject to a one percent or greater annual chance of flooding in any given year. Base flood elevations are shown as derived from detailed hydraulic analyses. This flood zone requires mandatory purchase of flood insurance in participating communities. This identification was located on Flood Insurance Rate Map, Community Panel No. 12086C0311L, revised September 11, 2009. For insurance purposes, a surveyor should be contacted to verify the exact zone by a flood elevation certificate, as well as its impact on insurance. A copy of the flood zone map is located in the Addenda to this report. Source: www.miamidade.gov and www.imapp.com Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 29 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Real Estate Assessment and Taxes Taxing Authority: Assessment Year: School Board Millage Rate: City, County, Region Millage Rate: Total Millage Rate: Folio Numbers: Miami -Dade County 2015 07.6120 14.6231 22.2351 01-3135-087-0010 01-3135-087-0012 The Miami -Dade Property Appraiser reports two values; Assessed Value and Market (Just) Value, also referred to as Just Value. Millage rates are multiplied times the respective values to calculate real estate taxes. Nonresidential properties are subject to the Non Homestead Cap which limits increases in the assessed value to 10% annually. Single family residences are subject to the Save Our Homes Amendment which limits the increase for a home to 3% annually, or the Consumer Price Index (CPI), whichever is less. A change in ownership resets the base year of the cap to the following year. When this occurs the assessed value will be equal to the market (just) value. There is no cap on the increase in market value. Following is a summary of the reported market (just) and assessed values. TYPE OF VALUE VALUE SQ.FT. SIZE' VALUE PER SQ.FT. Land Value $1,480,815 42,309 $35.00 Building Value $0 42,309 $0.00 Extra Features Value $0 Market (Just) Value $1,480,815 42,309 $35.00 Assessed Value $767,907 42,309 $18.15 To calculate real estate taxes, the school board millage rate is multiplied times the market (just) value. In addition, the county, city and regional millage rate is multiplied times the assessed value. The results of each are added together to indicate the total real estate taxes. 1 This is the size per the Miami -Dade County Property Appraiser's records. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 30 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 The real estate taxes are estimated as follows: TAXING AUTHORITY MILLAGE (A) VALUE (B) TAXES (A x B) School Board .0076120 $1,480,815 $11,272 City, County & Regional .0146231 $767,907 $11,229 Estimated Real Estate Taxes $22,501 Taxes Per Square Foot $0.00 There is a 4% discount given for early (November) payment of taxes which would reduce the estimated real estate taxes to $21,601, ($22,501 minus 4%). As per the public records, the subject property is exempt from real estate taxes, as it is owned by the City of Miami, c/o Department of Public Facilities. Florida Statutes require assessments to be at 100% of market (just) value with an allowable adjustment to indicate net proceeds that would be derived from a sale. This adjustment varies dependent on the taxing authority with the Miami -Dade County Property Appraiser's office typically designating in the range of 15%. Based upon the value estimated in this appraisal the assessment is less than what is appropriate. An assessment at 15% below the market value of $5,300,000 estimated in this appraisal would be $4,505,000, resulting in taxes of $100,169. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 31 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 City of Miami Description The city of Miami, incorporated in 1896, covers a total of six islands and 55.25 square miles on the southeast tip of Florida. The concept of "Greater Miami" is a generalized term referring to the combination of the City and Miami -Dade County, Florida. The city of Miami is irregular in shape. Biscayne Bay is the eastern boundary, N.E. 87th Street is the northernmost boundary, S.W. 87th Avenue is the westernmost boundary, and Prospect Drive (approx. S.W. 68th St.) is the southernmost boundary. Within this area is Coral Gables, its own city. The prime coastline location lends itself to activities and businesses supporting tourism, residential, commercial, industrial and recreational uses. City government is by a city commission composed of a mayor and elected -at -large commissioners. The city of Miami has developed Neighborhood Enhancement Team (NET) Service Centers. The NET centers are neighborhood "mini -hall" government centers that on a more personalized level coordinates interaction of police, fire, zoning, public works, solid waste, code enforcement, clerical support, job placement, housing assistance, and information on all services offered by the city of Miami. The primary major employer for the city of Miami is the Miami -Dade County Public Schools, followed by the Miami -Dade County Government with the third largest being Florida Power and Light Company. As well as the traditional school structure, the city of Miami participates in the Miami -Dade County Public Schools Magnet School program. Magnet schools, with unique and specialized training and unique instructional programs offered to academically qualified students, attract students from the total school population throughout Miami -Dade County. Miami -Dade College Downtown Campus provides higher education. The city of Miami has a multitude of city -owned parks, two golf courses, public pools, tennis courts and day care centers. Other recreational facilities include water -related sports and recreation as well as cultural and social activities that support local residents as well as the tourist industry. The two largest public parks, Bayfront and Bicentennial, flank the entry to the Port of Miami with 675 acres on two islands. The south part of Bicentennial has been sold and is home to the American Airlines Arena, home of basketball's Miami Heat. The north part was approved for construction of two museums and is named Museum Park, consisting of 21 acres of upland and 7 acres of submerged land. Completed is The Perez Art Museum Miami and the Frost Museum of Science under construction. The Port of Miami, with 75 acres on two islands, is a major seaport in the city. Steamship lines also actively use the Port of Miami. A tunnel under the bay from downtown by McArthur Causeway to the Port has also been completed to alleviate the downtown Miami truck traffic. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 32 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 For the northwest portion of Watson Island, a mixed-use project is to be constructed based on an RFP that was submitted many years ago. A developer was chosen and construction was to take place with two hotels, a retail and entertainment center and a world class mega -yacht marina. The developer defaulted on the agreement several times, with some modifications being made and most recently a mega -yacht marina has been completed; with hotels and retail to be constructed. In addition, approved for another developer in this area is a waterfront facility for a seaplane terminal and accessory uses. Completed on the northeast side of Watson Island is a facility for the entertainment venue Parrot Jungle Islands and Gardens. Across the street is the Miami Children's Museum. To the north of Interstate No. 395 on Biscayne Boulevard, construction of a world class Performing Arts Center has been completed. The Performing Arts Center has a symphony hall, ballet facility and a theater for shows and plays. The Miami Civic Center area is considered Miami's largest employment center. The area is home to Jackson Memorial Hospital, University of Miami Medical Center, Veterans Administration Hospital, Richard E. Gerstein Justice building including court facilities and a jail facility as well as numerous other accessory health and municipal facilities. Many projects are being developed in the area or are in the planning stages with the most notable being River Landing Shops and Residences at 1400 NW North River Drive with two million square feet of retail and residences on 8.14 acres. At 1501 to 1511 NW 13th Court (Sale 5 within the Sales Comparison Approach) are plans for a 73 -unit mixed -income development called Wagner Creek Apartments. The Civic Center area has a Metrorail station located at 1501 NW 12th Avenue which connects the area to other transportation services. In downtown Miami, transportation systems include Metrorail, an elevated rail rapid transit system running north and south through portions of Miami -Dade County. The Metromover automated people mover system is located in downtown Miami and is an off -shoot of the Metrorail system. There are also Metrobus buses, most of which are in service daily throughout the county. The Metromover system includes the Brickell Avenue financial district and also runs north to the Omni area. These systems connect to other transportation services in Miami -Dade County such as Amtrak, Tri -Rail, railroads and taxicabs. Major thoroughfares cross the city in a grid -like fashion with many major arteries that channel traffic throughout the city. The Florida Turnpike, U.S. Highway No. 1 (S. Dixie Hwy. a/k/a Biscayne Boulevard and Brickell Avenue) and Interstate -95 accommodate traffic through and around Miami -Dade County to and from the Florida Keys and north out of Miami -Dade County. Four causeways extend from the mainland, joining the city to the barrier islands that include Miami Beach. Metrorail and Metromover, overhead monorail rapid transit systems, connect to each other as well as numerous stations. State Road No. 836 (East-West Expressway) and the Airport Expressway (State Road No. 112) runs basically east -west into Interstate -95 and the Palmetto Expressway (State Road No. 826), which collects traffic running north and south. South Dixie Highway (Biscayne Boulevard and U.S. Highway No. 1) stretches in a diagonal manner north and south and is a major artery. Le Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 33 Description & Analyses Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Jeune Road (42nd Ave.), 37th Avenue, 27th Avenue, 17th Avenue and 7th Avenue are also major arteries traveling north -south, connecting with South Dixie Highway and State Road Nos. 836 and 112 (excludes 7th Avenue). Flagler Street (dividing the street grid into north and south), S.W. 8th Street, N.W. 7th Street and Coral Way (S.W. 3rd Ave., S.W. 13th Street, S.W. 22nd St. and S.W. 24th St.) facilitate east -west traffic as major arteries. The city of Miami completely overhauled the city's zoning code to create what government says is a more efficient regulation. This was made through a project known as "Miami 21", which represents "Miami in the 21st Century" as stated in the Miami 21 fact sheet. According to the fact sheet, the current zoning regulation is based on the "use" (commercial, residential, industrial, etc.) and "density" (housing units per acre) of a property. Miami 21 was expected to provide a clear and specific guideline for the relationships of buildings to each other, to streets and to open spaces, rather than emphasis on its "use". "The core of Miami 21 was the development of a new code that replaced the existing zoning ordinance, an outdated ordinance which emphasizes "use" and "density". The old code was focused on what is allowed, rather than what was desired." The Miami 21 code is to provide a long term vision emphasizing "the form", which focuses on urban design, including neighborhood centers, urban parks and a successful coordination of standards for urban design, architecture, landscape, thoroughfare and use. The core of Miami 21 is divided into four quadrants. Miami 21 was initially approved in May 2010 and has had subsequent amendments The city of Miami is part of the South Florida area that creates a highly mobile and transient atmosphere that offsets the well established businesses and residents. The subject is a well -located site within the municipality due to its being in the Civic Center area near significant government and health facilities with a renewed demand for residential, retail and commercial uses. This is primarily due to its ease of accessibility to Interstate 95, State Road No. 836, the Brickell Avenue Financial District, Downtown Miami, the Miami River, Miami International Airport and the PortMiami. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 34 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Neighborhood Overview General Neighborhood Data Location: Built Up: Growth Rate: Property Values: Demand/Supply: Present Land Use: Change in Present Land Use: Predominant Use: Property Compatibility: General Appearance of Properties: Appeal to Market: Adjacent Uses Urban 90% to 100% Increasing Increasing In balance Mixed -uses including residential, health related facilities, government buildings and vacant land Likely Mixed -uses including residential, health related facilities, government buildings and vacant land Average Below average to good Above average East: Parking lot for VA West: Multi -family residential and vacant land South: Multi -family residential North: Multi -family residential Linkages Distance Access Public Transportation: Within a few blocks Very good Employment Centers: Within a few blocks Excellent Expressway Access: One mile Very good Miami International Airport: Three to five miles Good Description of the Site Improvements The subject property appears at or near grade level. It is not flat, but rather sloped in some areas and appears to be slightly below grade. The subject property does have five catch basins throughout the site and a manhole cover. It is also fenced -in with a six-foot high chain link fence. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 35 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Supply and Demand / Market Conditions Overall Market Conditions The real estate market in South Florida and most of the nation continues to be in a recovery phase from the deepest recession in decades, and a severe financial crisis. This bust followed a boom period of unprecedented construction and redevelopment that occurred during 2005 to 2007. The recession caused significant erosion in the fundamentals that drove demand for commercial real estate (in particular, employment and household income). Compounding the effect of weakened demand, the financial crisis caused considerable turmoil in the commercial credit markets, resulting in a significant tightening of lending standards, making credit for real estate investments more difficult to obtain. At the same time, the boom in construction and redevelopment delivered large amounts of new product to the market, at a time when demand was sharply declining, leading to a significant oversupply of most property types. These dramatic changes resulted in widespread uncertainty in the market for real estate, with most investors sharply modifying their assumptions about the risks of their real estate acquisitions. The residential market was the first to soften due to significant speculation in construction and purchasing for re -sales. However, by 2009 all sectors of commercial and industrial real estate, which had until then suffered less than the residential market from the downturn, were being hit hard by the overall economic decline. Sharp increases in vacancy rates were observed as the weak economy resulted in many business closings, and as businesses and consumers both scaled back their spending due to declining confidence. Many of the largest projects conceived and begun during the height of the boom reached completion precisely as demand had sharply dropped, resulting in widespread real estate failures, as many new residential, office, retail and industrial developments struggled to sell out or lease up. Throughout most of 2009 and in 2010, the investment climate for most property types remained very gloomy. Beginning in 2011 and improving in 2012 through 2015, the market experienced increased activity in purchases of improved property and parcels for development. This has continued into 2015 and 2016 with the more desirable parcels selling quicker and at higher prices, and the less desirable parcels having less activity but still selling. The Market for Land Conditions in the market for land were characterized by rapid growth in demand during the several years leading up to late -2007, due mainly to a land rush driven by a large wave of residential condominium, commercial and mixed-use development. After three to four years of booming growth, which fueled intense condominium conversions, new construction and redevelopment activity of all types, the market took an abrupt turn for the worse between the latter part of 2007 and early 2008 as a result of the changing market conditions as noted earlier. These changes led to the worst oversupply conditions ever experienced in the region, with millions of square feet of new product (most notably residential condominiums) being delivered to the market just as demand had dropped off sharply. Even well into the recession, a significant amount of product was still Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 36 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 under construction or was nearly completed and remained to be sold. This had brought virtually all proposed new development activity to a standstill and resulted in a significant amount of vacant land which had been purchased for development during the boom being placed back on the market, depressing values for land overall. These conditions improved throughout 2012, 2013, 2014, 2015 and into 2016 with significant acquisitions of vacant land parcels acquired for new development. Most of the activity has been for land zoned for multi -family residential or mixed use, followed by commercial and industrial land. This activity level has been mainly in Miami -Dade County submarkets considered desirable locations. Second and third tier locations have seen improved conditions, however not nearly to the extent of the primary location. The subject property is comprised of 42,309 square feet with street frontage along the east side of NW 15th Avenue at approximately NW 18th Street in the city of Miami. More specifically, it is located just outside the Civic Center or Health District area. The Health District or Civic Center area is considered to be NW 20th Street to the north, SR 836 to the south, Interstate 95 to the east and NW 17th Avenue to the west. For the most part, the search was limited to sales within this area and slightly beyond. The subject is comprised of two parcels and is surrounded by commercial, government uses, multi -family residential and vacant land. As previously stated, there has been increased demand for vacant land and the Civic Center area is reaping the benefits as vacant land in prime locations becomes more and more scarce. Multiple brokers stated that the area is "hot" with many potential purchasers. In addition to the increased demand in the Civic Area, land on or near the Miami River has also seen an increase in demand where prices have nearly doubled in the last two to three years. Many projects for multi -family residential and mixed-use properties are under way or in the planning stages. Typical Purchaser of the Subject The subject is a large vacant site in desirable area. There is demand for new construction in this area. Therefore, the typical purchaser would be a developer with experience building a new structure to completion. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 37 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Highest and Best Use The site is valued for its highest and best use, which may be defined as follows: That reasonable and probable use that will support value as defined as of the effective date of the appraisal. In analyzing the highest and best use, the following four questions are answered: 1. Legally Permissible. What uses are legally permitted on the subject site with respect to zoning ordinances and deed restriction. 2. Physically Possible. What uses of those legally allowed are physically possible on the subject site? 3. Financially Feasible. Of those uses determined to be physically possible and legally permissible, which ones will produce a positive return? 4. Maximally Productive. Of those that are feasible, legally permissible, and physically possible, which will produce the highest rate of return or value? The above four questions are answered in order. Legally Permissible: The subject property is zoned T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL. This zoning district allows the highest density and greatest variety of uses, including civic buildings of regional importance. It is characterized by a network of small blocks, thoroughfares with wide sidewalks, steady tree planting and buildings set close to the frontage with frequent doors and windows. The allowable residential density in this zoning is 150 to 1,000 units per acre. The allowed uses under the open zoning include, but are not limited to residential, lodging, office, commercial, civic, civil support and educational. Zoning District Requirement Construction Setbacks Front: 10 feet Side: 0 feet Side Street: 10 feet Rear: 0 feet Minimum Lot Frontage 50 feet Minimum Lot Area: 5,000 sq. It. 2 stories minimum Height: 8 stories maximum with bonuses, this can be increased 1 space per 1.5 dwelling unit Parking: 3 spaces per 1,000 sq. ft. of office use Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 38 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 No deed restrictions are known which would legally limit the allowable uses on the subject site. For a detailed listing of these requirements, please consult the Miami Zoning Code or contact their zoning information office. Physically Possible: The subject site has 42,309 square feet (0.971 acres). The size and shape are such that construction would not be hindered. No soil conditions are known that would restrict construction on the subject site. Therefore, any of the allowable uses would be physically possible on the subject property site. Financially Feasible: Of those uses which are legally permissible and physically possible, a determination must be made as to which uses are most financially feasible. The current zoning allows a multitude of uses. These include both commercial and residential. The area as noted also has a multitude of uses including multi -family residential being both rental and condominium product, as well as health care uses and government facilities. The government facilities and health care facilities all appear to have a need for expansion, therefore lending the subject site as feasible for these type uses. Multi -family housing is also in demand, but there is planned product throughout the area at present. Given the market strength and demand for a multitude of uses from various developers and institutions, it is likely financially feasible to construct a mixed-use complex, possible in a different building for health care and multi -family. Additionally, a government facility may be feasible as the builder and occupant of this type facility is not typically concerned with profit on real estate unless it is being constructed by a developer for lease to a government entity. Maximally Productive: This is the use of all those that meet the previous criteria which yields the highest rate of return or value. Give that the subject is a large site allowing high density development, a building would be constructed to near the highest density possible to yield the highest return to the land. Of note is that the City of Miami allows for payments that could increase density and height as well as for the purchase of transferable development rights (TDR's) at favorable prices which can also increase height and allowable densities. Conclusion of the Highest and Best Use As Vacant The subject location is desirable and the market continues to strengthen with values high enough to feasibly construct on the site. Therefore, the highest and best use as though vacant, would be to construct a mixed-use building on the site. As Improved The subject property is vacant land and therefore an analysis of the highest and best use as improved is not applicable. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 39 Description & Analyses Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Appraisal Process An analysis of three separate approaches to value; sales comparison approach, cost approach, and income capitalization approach, will be considered to estimate the value of the subject property. Although these three approaches to value are considered within every appraisal report, they may not be applicable to each and every property being appraised. The cost approach is based on the principle of substitution which states that an informed purchaser would not pay more for a property than the cost of reproducing a property with the same utility. The cost approach can often yield reliable estimates of value for new construction. This approach entails estimating the cost of producing the improvements, deducting an estimate of depreciation, then adding the value of the site as if vacant. To this value an entrepreneurial incentive is added to arrive at the estimated value by the cost approach. The income capitalization approach is based on the concept that value is created by the expectations of future benefits and higher earnings should result in higher values. Income producing real estate is purchased for the right to receive future income. The income capitalization approach consists of methods to analyze a property's capacity to generate income, and a reversion, and convert these monetary benefits into an estimate of value. The sales comparison approach is based on the principle of substitution which suggests that, within competitive markets, similar products will realize similar prices. Inherent in this concept is the premise that a purchaser would not pay more for a property than the cost to acquire another property with the same amenities and utility. The final steps in the appraisal process are review and reconciliation of the data and conclusions. In reaching a final conclusion of value, the entire process involving the approaches that were estimated must be reviewed for accuracy, completeness and consistency. After analysis, evaluation and reconciliation of the indications a value is estimated. The essence of this final reconciliation should be a defensible and rational conclusion of value. The only approach used in this appraisal is the sales comparison approach. The income capitalization approach and the cost approach are not applicable to the valuation of the subject property. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 40 Cost Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Cost Approach The basis of the cost approach is the principle of substitution. This principle suggests that a prudent buyer would not pay more for a property than the cost to acquire a similar site and construct comparable improvements. Following are the procedures for preparing the cost approach. 1. Estimate the value of the land as though vacant and available to be developed to its highest and best use. 2. Determine which cost basis is most applicable to the assignment: reproduction cost or replacement cost. 3. Estimate the direct (hard) and indirect (soft) costs of the improvements as of the effective appraisal date. 4. Estimate an appropriate entrepreneurial profit or incentive from analysis of the market. 5. Add estimated direct costs, indirect costs, and the entrepreneurial profit or incentive to arrive at the total cost of the improvements. 6. Estimate the amount of depreciation in the structure and, if necessary, allocate it among the three major categories: physical deterioration, functional obsolescence, and external obsolescence. 7. Deduct the estimated depreciation from the total cost of the improvements to derive an estimate of their depreciated cost. 8. Estimate the contributory value of any site improvements that have not already been considered. (Site improvements are often appraised at their contributory value - i.e., directly on a depreciated -cost basis - but may be included in the overall cost calculated in Step 3 and depreciated, if necessary). 9. Add land value to the total depreciated cost of all the improvements to develop the market value of the property. 10. Adjust for personal property (e.g., furniture, fixtures, and equipment) or intangible assets that are included in the appraisal. 11. Adjust the value conclusion, which reflects the value of the fee simple estate, for the property interest being appraised to arrive at the indicated value of the specified interest in the property. 1 As the subject property is unimproved vacant land, the cost approach is not applicable. 1 The Appraisal of Real Estate, 14th Edition, 2013, Pages 568 and 569 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 41 Income Capitalization Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Income Capitalization Approach Income producing real estate is typically purchased as an investment, and from an investor's point of view earning power is the critical element affecting property value. One basic investment premise holds that the higher the earnings, the higher value, provided the amount of the risk remains constant. An investor who purchases income-producing real estate is essentially trading present dollars for the expectation of receiving future dollars. The income capitalization approach to value consists of methods, techniques, and mathematical procedures that an appraiser uses to analyze a property's capacity to generate benefits (i.e., usually the monetary benefits of income and reversion) and convert these benefits into an indication of present value.I In the income capitalization approach, an appraiser analyzes a property's capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to the approach. An income capitalization approach was not applied as it was not within the scope of this appraisal. Since this approach is typically not considered by purchasers of this property type, not using it does not limit the reliability of the value estimated herein. ' Appraisal of Real Estate, 14t' Edition, 2013, Page 439 2 Ibid., 439 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 42 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Sales Comparison Approach The sales comparison approach is based on the principle of substitution. The principle of substitution holds that the value of property tends to be set by the cost of acquiring a substitute or alternative property of similar utility and desirability within a reasonable amount of time.I In the Sales Comparison Approach, an opinion of market value is developed by comparing properties similar to the subject property that have recently sold, are listed for sale, or are under contract (i.e., for which purchase offers and a deposit have been recently submitted). A major premise of the sales comparison approach is that an opinion of the market value of a property can be supported by studying the market's reaction to comparable and competitive properties. Qualitative analysis is a relative comparison process without mathematics. Sales are ranked based upon their desirability as compared to the subject. Comparisons can be expressed as plus or minus as opposed to dollar or percentage adjustments. Quantitative analysis is the process of applying mathematical techniques. Sales are adjusted to the subject property on a dollar or a percentage basis. One method of supporting adjustments is through paired data analysis. This method analyzes two sales and attributes the difference in their sales prices to the characteristic which is different. This analysis requires an abundance of sales data which is frequently not available. Only in ideal conditions it is advisable to use quantitative adjustments. This would require sales that could be paired to extract adjustments for the differences from the sales to the subject property. This type data is not available in the market. Qualitative analysis is used herein to estimate a value by the sales comparison approach. Characteristics of the sales considered superior to the subject are given a minus (-) adjustment. Those characteristics of the sales considered inferior to the subject are given a plus (+) adjustment. Each sale is given an overall adjustment indicating how it compares to the subject. On the following page is a grid of the sales used for comparison to the subject property. ' The Appraisal of Real Estate 14th Edition, 2013, page 379 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 43 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Vacant Land Sales Grid Following is a grid of the comparable sale properties used for comparison to the subject property. Sale Sale Location Zoning Sale Sq. Ft. Price/ Date Price Size Sq.Ft. 1170 NW 11th Street 1 12/15 1035 NW 11th Court T6-8-0 $11,500,000 110,753 $103.83 1080 NW 11th Street Miami 2 9/15 1950 NW1stAvenue T6-8-0 $16,000,000 108,334 $147.69 Miami 710-720 and 3 5/15 750-760 NW North River Drive T4 -R $3,950,000 52,000 $75.96 Miami 4 4/15 1622 NW 22nd Avenue T6-8-0 $4,147,500 44,572 $93.05 Miami 5 2/15 1501-1511 NW 13th Court C1 -HD $2,023,000 18,870 $107.21 Miami 6 2/15 641 NW 12th Avenue T6-8-0 $2,574,100 33,075 $77.83 Miami 7 Pending 1670-1690 NW North River Drive T6-8-0 $12,350,000 103,540 $119.28 Sale Miami 1455 NW 171 Street, et al Subject 9/12 Miami T6-8-0 $7,200,000 42,309 $170.18 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 44 Sales Comparison Approach Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Vacant Land Sales Map Hw "th sr "m row s+ ' At VAIA f -F.AM x f til, � Y_ � .,i 1M p j � w � � 15 • l•V' M .i 4. i ti. M,., RlYb•q Sale 7 •`' low 0'. 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', Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 45 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 1 Property Location 1170 NW 11th Street 1035 NW 11th Court 1080 NW 11th Street Miami, FL 33136 Miami -Dade County Property Identification Tax ID: 01-3135-026-0310, -0200 and -0080 WRI No: 303922 Units of Comparison Price/Sq.Ft.: $103.83 Price/Acre: $4,527,559 Property Description Square Feet: 110,753 Acres: 2.54 Topography: Grade level Shape: Irregular Zoning: T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL Recording Information Sale Price: $11,500,000 Sale Date: December 2015 ORB/Page: 29887/4130 in a special warranty deed Grantor: Miami River House Associates, LTD, Miami River House II Associates, LTD and Miami River House III, LTD Grantee: Riverhouse Development, LLC Financing: All cash to the seller Prior Sale: None in the past five years Verification: Jim Fried, broker with Aztec Group, LLC (305-773-6300) Comments This is the purchase of three parcels located along the south side of NW 11th Street, between NW 12th Avenue and NW 10th Court. The parcels are separated by streets and are one block north of the Miami River with the largest parcel being adjacent to the NW 12r' Avenue bridge. The buyer, Mill Creek is a significant developer in Miami -Dade County and has since closed on a $52,480,000 construction loan on the site. The highest and best use of this property is mixed-use commercial and residential development. Legal Description Lots 1-B, 2-13, 3-13, 4-13, 5-13, 6-13, 1-M, 2-M, 3-M, 4-M, 17-E, 18-E, 19-E, 20-E, 21-E, 1-E, 2-E, 49-5 and 50-5, COUNTRY CLUB ADDITION, according to the Plat thereof, as recorded in Plat Book 8, Page 72 of the Public Records of Miami -Dade County, Florida Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 46 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 2 Property Location 1950 NW 1st Avenue Miami, FL 33136 Miami -Dade County Property Identification Tax ID: 01-3136-072-0010 and -0020 WRI No: 303926 Units of Comparison Price/Sq.Ft.: $147.69 Price/Acre: $6,425,703 Property Description Square Feet: 108,334 Acres: 2.49 Topography: Grade level Shape: Rectangular Zoning: T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL Recording Information Sale Price: $16,000,000 Sale Date: September 2015 ORB/Page: 29775/1663 in a special warranty deed Grantor: A-1 Management Corp. Grantee: MSP 1031 2015 Financing: All cash to the seller Prior Sale: None in the past five years Verification: Keitiane Silva at West Avenue Realty, current listing agent (786-838-3687) Comments This is the sale of an entire block made up of two parcels. It has four street frontages along NW 1 st Court, NW 1st Avenue, NW 20th Street and NW 21st Street. It was purchased in September 2015 for $16,000,000 or $148 per square foot. It has since been approved with plans for a mixed-use project prepared by Kobi Karp. It was placed back on the market with an asking price of $26,000,000 or $240 per square foot. This is the southernmost portion of the Wynwood Arts and Entertainment District with development beginning to reach this area. The highest and best use of this property is mixed-use commercial and residential development. Legal Description Tract A and B, NATIONAL LINEN PROPERTIES, according to the Plat thereof, as recorded in Plat Book 115, Page 24 of the Public Records of Miami -Dade County, Florida Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 47 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 3 Property Location 710-720 and 750-760 NW North River Drive Miami, FL 33136 Miami -Dade County Property Identification Tax ID: 01-3135-027-1190, -1200, -1220 and -1230 WRI No: 303924 Units of Comparison Price/Sq.Ft.: $75.96 Price/Acre: $3,319,328 Property Description Square Feet: 52,000 Acres: 1.19 Topography: Grade level Shape: Irregular Zoning: T4 -R, General Urban Restricted Transect Zone by the city of Miami, FL Recording Information Sale Price: $3,950,000 Sale Date: May 2015 ORB/Page: 29686/4126 in a warranty deed and 29619/1977 in a special warranty deed Grantor: Miami Riverfront Development Group, LLC and Miami River Lots, LLC Grantee: 750-760 Spring Gardens, Inc. Financing: All cash to the seller Prior Sale: None in the past five years Verification: Marta Santiago, Listing agent with 7 R Sosa Properties, LLC, (786-344-1955) Comments This is two separate purchases by one buyer from two sellers, within two months with each property consisting up of two parcels containing 26,000 square feet, along the south side of NW North River Drive with frontage along the Miami River. The first purchase was for 750-750 NW North River Drive in May 2015 for $1,800,000 or $69 per square foot. The second purchase was for 710-720 NW North River Drive for $2,150,000 or $83 per square foot, bringing the total purchase to $3,950,000 or $76 per square foot. The highest and best use is for multi -family residential development. Legal Description Lots 4, 5, 7 and 8, Block 12, SPRING GARDEN, according to the Plat thereof, as recorded in Plat Book 5, Page 38 of the Public Records of Miami -Dade County, Florida Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 48 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 4 Property Location 1622 NW 22nd Avenue Miami, FL 33125 Miami -Dade County Property Identification Tax ID: 01-3134-027-0020; 01- 3134-027-0040;01-3134- 027-0031;01-3134-027- 0050; 01-3134-027-0030 WRI No: 303884 Units of Comparison Price/Sq.Ft.: $93.05 Price/Acre: $4,066,176 Property Description Square Feet: 44,572 Acres: 1.02 Topography: Grade level Shape: Irregular Zoning: T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL Recording Information Sale Price: Sale Date: ORB/Page Grantor: Grantee: Financing: Prior Sale: Verification: Legal Description $4,147,500 April 2015 Book 29580; Pages 1507 (parcel 1), 1512 (parcel 2), 1514 (parcel 3) and 1516 (parcel 4); all in warranty deeds 1622 Investment Corp. (parcels 1 and 3); River Condominium Corp. (parcel 2); 1920 River Corp. (parcel 4) STEC NO. 15-4407, LLC All cash to the seller None in the past five years Jose E. Castro (attorney), 305-444-7500 Lots B, C and D, less the east 10 feet of WASHBURN' S SECOND ADDITION as recorded in plat book 6 at page 1 of the public records of Miami -Dade County, Florida and Lot E, less the East 10 feet thereof, WASHBURN' S 2nd EDITION and lying southerly of the Right -of -Way on street on Florida State Road Department Right -of -Way Map as recorded in plat book 79 at page 61 of the public records of Miami -Dade County, Florida and Lot F, of WASHBURN, A SUBDIVISION of that part of the East Half of the East Half of the Northwest 1/4 of Section 34, Township 53, Range 41 East as recorded in plat book 6 at page 1 of the public records of Miami -Dade County, Florida Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 49 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comments This parcel is located on the south side of NW North River Drive, along the west side of an elevated segment of NW 22nd Avenue on the north bank of the Miami River. It has river frontage on its south side, with additional water frontage on a small inlet that runs along its west side. The transaction occurred on four separate deeds between a single buyer and separate but related entities. The improvements consist mainly of several small, older residential structures that are not considered to contribute value. The buyer's plans for the site could not be confirmed, but the zoning permits a wide variety of uses. Adjoining waterfront parcels to the west are multi -family, with parcels on the east side of NW 22nd Avenue and across it on the south bank of the river being marine industrial. The highest and best use is for multi -family residential development. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 50 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 5 Property Location 1501-1511 NW 13th Court Miami, FL 33125 Miami -Dade County Property Identification Tax ID: 01-3135-024-0020 and -0030 WRI No: 303921 Units of Comparison Price/Sq.Ft.: $107.21 Price/Acre: $4,704,651 Property Description Square Feet: 18,870 Acres: 0.43 Topography: Grade level Shape: Irregular Zoning: CI -HD, Civic Institution Health District by the City of Miami, FL Recording Information Sale Price: $2,023,000 Sale Date: February 2015 ORB/Page: 29515/3016 in a warranty deed Grantor: 1501 NW 13 CT, LLC Grantee: HTG Miami -Dade 5, LLC Financing: All cash to the seller Prior Sale: None in the past five years Verification: Various publications, Costar and MLS Comments This is the purchase of two vacant parcels located along the north side of NW 15r' Street, where NW 131 Court intersects. The buyers are building a 73 -unit affordable housing project. The highest and best use is for multi -family residential development. Legal Description Lots 1 and 2, Block 1, GOLFVIEW PARK, according to the Plat thereof, as recorded in Plat Book 11, Page 71 of the Public Records of Miami -Dade County, Florida Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 51 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 6 Property Location 641 NW 12th Avenue Miami, FL 33136 Miami -Dade County Property Identification Tax ID: 01-4102-005-0140, -0160, -0130 and -0120 WRI No: 303923 Units of Comparison Price/Sq.Ft.: $77.83 Price/Acre: $3,386,974 Property Description Square Feet: 33,075 Acres: 0.76 Topography: Grade level Shape: Rectangular Zoning: T6-8-0, Urban Core Open Transect Zone and D-1, Work Place District Zone by the city of Miami, FL Recording Information Sale Price: $2,574,100 Sale Date: February 2015 ORB/Page: 29502/2640 in a warranty deed Grantor: Alves S. and Cynthia Lopez Cambridge Grantee: Broward Havana, LLC Financing: All cash to the seller Prior Sale: None in the past five years Verification: Carlos Miranda, Listing agent with Fausto Commercial Realty (305-431-2258) Comments This is the sale of four adjoining parcels located at the southeast corner of NW 12th Avenue and NW 7th Street. The agreed upon sales price was $2,680,000 or $81 per square foot, but the property had contamination and sold for $2,574,100 or $78 per square foot. The buyers intend to build a self -storage facility. The highest and best use is for mixed-use development to include light industrial and commercial. Legal Description Lots 6, 7, 8, 9, 10, less the North 10 feet of Lots 6, 7, and 8, and Less the West 7.5 feet of Lots 8, 9 and 10, Block 2, LAWRENCE ESTATE LAND COS SUBDIVISION, according to the Plat thereof, as recorded in Plat Book 2, Page 46 of the Public Records of Miami -Dade County, Florida Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 52 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Comparable Land Sale 7 Property Location 1670-1690 NW North River Drive Miami, FL 33125 Miami -Dade County Property Identification Tax ID: 01-3135-011-0010 and -0020 WRI No: 303925 Units of Comparison Price/Sq.Ft.: $119.28 Price/Acre: $5,189,076 Property Description Square Feet: 103,540 Acres: 2.38 Topography: Grade level Shape: Irregular Zoning: T6-8-0, Urban Core Open Transect Zone by the city of Miami, FL Recording Information Sale Price: $12,350,000 Sale Date: Pending Sale ORB/Page: Not yet recorded Grantor: Mapocho Development, LLC and National Organization of the New Apostolic Church of North America Grantee: Not yet recorded Financing: All cash to the seller Prior Sale: None in the past five years Verification: Mario Fernandez, Listing Agent (786-344-4544) Legal Description Lots 2 and 3 of ST. JOHN PARK according to the plat there of as recorded in Plat Book 5 at Page 19, of the Public Records of Miami -Dade County, Florida, except those portions previously conveyed to the city of Miami by deed dated October 31, 1929 and recorded in Deed Book 1348, Page 289, of the Public Records of Miami -Dade County, Florida, and by deed dated November 14, 1930, as recorded May 2, 1932 under clerk's file number H-6658, of the Public Records of Miami -Dade County, Florida. Less a portion of lots 2 and 3 of ST. JOHN PARK, according to the plat thereof recorded in Plat Book 5 at Page 19 of the Public Records of Miami -Dade County, Florida, more particularly described as follows: Begin at northwest corner of said lot 2, thence run southeasterly along the northeasterly line of said lots 2 and 3 for a distance of 174.4 feet to the northeast corner of said lot 3, thence run southerly along the east line of said lot 3 for a distance of 3.25 feet to a point of intersection with a line which is 3.25 feet south of and parallel to the northeasterly line of said lot 3; thence run northwesterly along the line which is 3.25 feet Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 53 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 south of and parallel to the northeasterly line of said lot 3 for a distance of 12.33 feet; thence deflecting to the left for an angle of 1 *40'45" run northwesterly for a distance of 95.05 feet to the point of curvature of a circular curve to the left; thence run northwesterly to southwesterly along the arc of said circular curve to the left, having a radius of 50.00 feet, through a central angle of 80* 13"57 for an arc distance of 70.02 feet to the point of intersection with the west line of said lot 2; thence run northerly along the west line of said lot 2 for a distance of 53.04 feet to the point of beginning; less that portion thereof, previously conveyed to the city of Miami by warranty deed dated October 31, 1929 and recorded in Deed Book 1348, at Page 289, of the Public Records of Miami -Dade County, Florida and. Lot 4, less the north 3.25 feet for right-of-way, ST. JOHN PARK, as recorded in plat book 5 at page 19 of the Public Records of Miami -Dade County, Florida. Comments This is two adjoining vacant parcels located at the southeast corner of NW 17th Avenue and NW North River Drive with frontage along the Miami River. They abut the NW 17' Avenue bridge. The parcels are owned by two separate entities with an asking price of $12,350,000 or $119 per square foot. The listing agent confirmed the properties are under contract for the asking price. The highest and best use is for multi- family residential development. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 54 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Adjustment Grid Below is a grid which illustrates qualitative adjustments used to compare the comparable sales to the subject property. Percentage adjustments were not utilized. In order to utilize percentage adjustments, it would be necessary to pair (compare) sales to extract value differences. This is difficult as there is normally insufficient data to provide pairings for all value differences. Below is a grid which illustrates the adjustments made. A plus (+) sign indicates the unit of comparison of the sale must be adjusted upward as that characteristic is inferior to the subject. A minus (—) sign indicates the unit of comparison of the sale must be adjusted downward since the characteristic is superior to the subject. An equal (_) sign indicates the comparable sale characteristic is similar to the subject. Sale 1 2 3 4 5 6 7 Price Per Square Foot $103.83 $147.69 $75.96 $93.05 $107.21 $77.83 $119.28 Property Rights Conveyed = _ _ _ _ _ _ Financing Conditions of Sale Market Conditions (Time) _ _ + + + + + + _ Location + - - - + + _ + + - Zoning = _ + + _ + Size ++ ++ _ _ - - _ ++ Shape + _ + _ + Overall Adjustment + - + + + + + + + After considering the individual differences, either a plus (+), minus (—) or equal (_) sign has been placed in the "Overall" column. This indicates the overall adjustment that the sale would require as compared to the subject property. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 55 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Analysis of Sales Following is the discussion and comparison of various characteristics of the sales as compared to the subject property. Financing: The financing of the sales did not indicate any adjustments of their sale prices are warranted for favorable financing. The sales were all financed with loans at or near market rates, or purchased for all cash. Conditions of Sale: This category considers if the comparable sales were arm's length. An arm's length sale means the buyer and seller each acted prudently, knowledgeably, and were under no necessity to buy or sell, i.e., a sale that is other than a forced or liquidation sale. Also considered are if any of the sales were purchased by an adjoining owner, whereby a premium was paid. None of the sales required adjustment for this category. Market Conditions (Time): This adjustment considers current market conditions as compared to market conditions in place at the time of the respective sale. Sales 1 and 2 occurred in late 2015 and Pending Sale 7 is current; hence no adjustments were required. Sales 3 to 6 had contracts signed in late -2015 and early 2015. Land values have increased since that time; therefore, adjustments to these sales was applied accordingly. Location: Sales considered superior to the subject were adjusted downward. Sales considered inferior to the subject were adjusted upward. Those sales considered similar did not require an adjustment. Sales 1, 3, 4 and 6 were considered inferior in location due to being further from the Civic Center area; Sale 2 and Pending Sale 7 were considered superior in that they were directly on the river or in Wynwood and Sale 5 was considered similar in location. Zoning: Sales 1, 2, 4, 6 and Pending Sale 7 have the same zoning as the subject property with no adjustment necessary. Sales 3 and 5 have inferior zonings allowing less uses and/or lower densities and were adjusted accordingly. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 56 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Size and Shape: The size adjustment is based on the principle of economies of scale whereby larger sites tend to sell for less per square foot. Smaller sites were considered superior and adjusted downward, larger sales were considered inferior and adjusted upward and those sales similar in size were not adjusted. The subject property is 42,309 square feet. Sales 1, 2 and Pending Sale 7 (103,540 square feet to 110,753 square feet) were larger by a high enough margin with positive adjustments necessary, while Sale 5 (18,870 square feet) was smaller by a big enough margin with a negative adjustment necessary. Sales 3, 4 and 6 (33,075 square feet) are close enough in size with no adjustment necessary. The shape adjustment relates to the sales being of a similar shape to the subject which is rectangular and one contiguous. Sales which are irregular in shape where construction can be impeded or costlier and/or not a single contiguous parcel are inferior and would be adjusted upwards. Sales 2, 4, 6 and Pending Sale 7 are similar in shape with no adjustment necessary. Sales 1 and 3 consist of two or more non-contiguous parcels, which is considered to be inferior and required positive adjustments. Sale 5 is irregular in shape and was also adjusted upwards. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 57 Sales Comparison Approach Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Conclusion of Land Value by the Sales Comparison Approach The sales comparison approach compared similar properties to the subject property and adjustments were made for the pertinent characteristics. Based on these comparisons a value was estimated for the subject property. Sale prices per square foot (including Pending Sale 7) range from $75.96 to $147.69 with a mean of $103.55 per square foot and a median of $103.83 per square foot. After adjustment on a cumulative basis a cumulative basis Sales 1, 3, 4, 5, 6 and Pending Sale 7 ($75.96 to $119.28 per square foot) were considered inferior and required positive (upward) adjustments. Sale 2 ($147.69 per square foot) was considered superior and required a negative (downward) adjustment. Therefore, the subject property should have a value greater than $119.28 per square foot and less than $147.69 per square foot. Considering six of the seven sales have sales prices less than $107.21 per square foot and Pending Sale 7 is under contract for $119.28 per square foot, a value at the top of the range of the majority of the sales is considered to be appropriate. The analysis considers the high demand in the area and the increasing prices with significant activity. Also considered are the following listings: Listing Address Asking Land Price/ Zoning Price Size Sq.Ft. 1 1625 NW 20th Street $5,950,000 73,442 $81 T6-8-0 2 1991 NW 27th Avenue $2,800,000 31,147 $90 T6-8-0 The listings are $81 per square foot and $90 per square foot. They are considered inferior in location to the subject property as they are further from the Civic Area and set the low end of larger parcels with similar zoning to the subject property. No listings were available in the immediate area as when properties are placed on the market in this location they are purchased if properly priced. After considering the sales data available and the factors influencing value described, it is concluded that the subject land has a value, as if vacant, of $125 per square foot. The estimated land value equals 42,309 square feet times $125 per square foot, equal to $5,300,000 (rounded). Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 58 Reconciliation of Value Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Reconciliation of Value The reconciliation process considers the approaches which were utilized in this report. Each approach to value is analyzed as to its reliability and applicability. These approaches indicated the following values: Cost Approach Not applicable Income Capitalization Approach Not applicable Sales Comparison Approach $5,300,000 The cost approach estimates the land value and adds the depreciated value of the improvements. As the land being appraised is vacant, this approach is not applicable and was not applied herein. The income capitalization approach analyzes the projected income and expenses of a property and capitalizes the net income into a value estimate. Typically, vacant land is not purchased based on its ability to generate income. This approach is not applicable and was not applied herein. The sales comparison approach compares sales of similar properties to the subject property and is the only applicable approach to value. These sales were analyzed for differences such as conditions of sale, financing, market conditions, location, zoning, shape/size, and other characteristics. The strength of this approach relies on the quality of the comparable sales. Sales which closely resemble and can be compared easily with the subject are most desirable. The sales utilized were considered comparable and make the sales comparison approach the only reliable indication of value. As the subject property is vacant land total reliance was placed on the sales comparison approach. The subject property has an indicated As Is market value of the fee simple interest as of February 24, 2016 in the amount of $5,300,000. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 59 Addenda Addenda ro ker lipFFL.tF F/FeFYFIRF aFd eFFFFItFFts N R P Q R A T E D Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 60 Addenda Vacant Land at 1455 NW 17" Street, Miami, FL 33125 County Area Description Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 61 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Miami -Dade County and Area Description General Overview Miami -Dade County, often referred to as "Miami" is known internationally for its weather, beaches, banking, fine art, shopping, and Latin culture. While many pass through the Cruise Capital of the World, 2.5 million people call it home. Miami -Dade County is at the southeastern tip of Florida and is the south -easternmost state in the continental United States. Its land area is approximately 1,946 square miles and is bordered by Broward, Collier, and Monroe Counties to the north, southwest, and south, respectively. The county is bordered by the Atlantic Ocean to the East and Everglades National Park to the West. Demographics As of the 2013 Census report, Miami -Dade County has 2,496,435 residents. Over half of those were born outside the United States; 70 percent fall between the ages of 25 and 55. As depicted in the following graph, the county's population has risen steadily since 1970. 2,800 2,600 2,404 5 2,200 2.000 1,804 1,600 1,400 1.200 1970 M ct i Ft+LJ .+ti an of Mtnr+er-Dade CWu ty, FL (FIM[AM6POP) Source; U.S. Department of Commeree, Census bureau 1975 1980 1985 1990 1995 2000 2005 2010 2015 Shaded areas indicate US recessions. FRF 2014 resear[h.50OW led.erd Miami -Dade County Population Projections 2015 Projection 2020 Projection based on 2011 Percentage change based on 2011 Percentage change Estimate 2011 to 2015 Estimate 2011 to 2020 2,591,790 3.8% 2,717,631 4.9% Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 62 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Miami has a positive reputation for international business, and developers are marketing their new projects to those individuals. Therefore, the county's population is expected to increase at an even greater rate approaching the year 2020. Miami is the largest city in the County. Other populous municipalities include Hialeah, Miami Gardens, Miami Beach, and unincorporated land. Actively growing are some new cities since 2000 such as Cutler Bay and Doral. Brief History Miami was founded in 1866 after the end of Spanish rule in Florida. Before the turn of the century, prominent figures such as William and Mary Brickell and Henry Flagler established a community and connected the young city to the rest of the United States. Island people moved here for work. In 1910, John Collins discovered fresh water on Miami Beach, and within a decade, the population soared, and businessmen bought up the land. The city quickly became a popular spot for tourists, but it crumbled under the hurricane of 1926. During the decades of war, parts of Miami -Dade County became training grounds for military. Residents then slowly built back up the tourism industry. The early 1960's marked the beginning of the arrival of large numbers of Cuban Refugees into Miami -Dade County and South Florida. In the years following, significant numbers of immigrants have come from Haiti, Cuba and other Latin American countries. Government Miami -Dade County has a strong mayor form of government, with nine elected individuals (one mayor and eight commissioners) making up the Miami -Dade County Board of Commissioners. The mayor appoints a professional administrator to manage the daily activities of the county government and a county attorney to handle its legal matters. Some governmental activities, services and functions previously handled by individual municipalities are now handled by the county. Among these are real property assessment and valuation, health and welfare, most water and sewers, traffic engineering, public libraries, public transportation, public housing, urban renewal, seaport, airport, regional parks and air and water pollution control. In addition to these, Miami -Dade County provides services to the unincorporated areas of the county such as: police and fire protection, building and zoning regulation, trash and garbage collection and disposal, parks and recreation, consumer protection and corrections and rehabilitation of adults and youth offenders. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 63 Addenda Economic Base Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 The primary industries that support Miami -Dade County's economy through employment are trade, transportation and utilities, followed by education/health services and government. The most known is tourism, a major industry for Miami -Dade County. The following chart reflects the county's demographics by trade, with tourism ranking the highest number of companies, followed by retail and finance, insurance and real estate. 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 ate`' �y Miami -Dade County Demographics by Trade Source: The Beacon Council A year-round growing season allows the agricultural industry to be the top vegetable supplier and producer in the country. The industry employs more than 20,000 people and produces more than $2.7 billion in economic benefits each year. As a result, agritourism has sprouted an industry throughout the agricultural area where visitors can sample and purchase locally grown products. Transportation Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 64 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Miami International Airport (MIA) and its linkages are considered to be the driving force for growth behind its surrounding area. Airport traffic in 2013 included over 40 million passengers, 2 million tons of freight, and 2 million tons of cargo. Other airports within the county include Kendall-Tamiami Airport and Opa-locka Executive Airport. The aviation industry directly and indirectly contributes $26.7 billion and 282,043 jobs to the local economy. PortMiami annual activity includes 4.3 million cruise passengers and 7.4 millions of tons of cargo. The port contributes more than $27 billion annually to the South Florida economy and helps provide direct and indirect employment for more than 207,000 individuals. It had been undergoing construction for a two-way underwater tunnel between the port and downtown Miami. The Deep Dredge Project, set to deepen the channel from its current 42 -foot depth to minus 50 feet in order to accommodate super cargo ships has been completed in 2015. Within Miami -Dade County, major roads include the Palmetto Expressway (State Road No. 826), a major north/south expressway; the Dolphin Expressway (State Road No. 836), a major east/west expressway; Interstate 95 and the Florida Turnpike. All of these represent Miami's expressway network and make almost any destination in Miami -Dade County within 30 to 45 minutes driving time. Transportation systems include a Busway in south Miami -Dade County linking to Metrorail, an elevated rail rapid transit system connecting portions of Miami -Dade County. In July 2012, a new Metrorail station in MIA links south Miami -Dade County, downtown Miami and the entire elevated rail line. The enables seamless connections to the Metromover systems and to a web of transportation arteries in neighboring counties leading to the rest of Florida. The Miami Intermodal Center (MIC) links the airport, East/West Rail, Amtrak, Tri -Rail, Airport/Seaport Connector and Metrorail mainline rail. Located near the State Road No. 836/State Road 112 Connector, it presently contains the bulk of the rental car agencies. East of the airport in the future it will contain retail, commercial, residential and tourist -designed development. The Metromover automated people mover system is located in downtown Miami and is an off- shoot of the Metrorail system. There are also Metrobus buses, most of which are in service daily throughout the county. The Metromover system includes the Brickell Avenue financial district and also runs north to the Omni area. Other transportation services in Miami -Dade County include Tri - Rail, railroads and taxicabs. Railroad service by Amtrak is accessible in northwest Miami -Dade. Tri -Rail is South Florida's commuter train system which services Miami -Dade, Broward and Palm Beach Counties. Education Based upon student population, the Miami -Dade County School system is the fourth largest public school system in the nation with 415 institutions including elementary, middle, high, K-8, charter, alternative and magnet schools. Many private institutions exist as well. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 65 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Several colleges and universities located in the county are University of Miami, Barry University, Florida International University, Miami -Dade Community College, St. Thomas University, Florida Memorial College and Johnson & Wales University. Medical Miami -Dade County has the largest concentration of medical facilities in Florida. The largest institution is Jackson Memorial Medical Center, the second largest public hospital in the nation which shares many teaching, treatment and research capacities with the University of Miami. Private hospitals include Baptist Health System, Mercy, Miami Children's, and Mount Sinai. Sports Professional, college and even local neighborhood sports draw spectators, participants and investors to a high degree and create a positive atmosphere. Professional football (Miami Dolphins), basketball (Miami Heat), baseball (Miami Marlins) and ice hockey (Florida Panthers) are continual draws. As of January 2014, business negotiations are currently underway to bring Major League Soccer to Miami. There are two horse tracks and a dog track. Several of these tracks have been approved for slot gambling or table gambling, depending upon location in a municipality or Indian reservation. Also offered are golf, tennis, as well as the numerous water sports, given the significant bodies of water. Arts and Culture Known for the wealth of ethnic diversity and heritage, Miami -Dade County has a cultural mix of festivals, concerts, theater, and dance performances. Adrienne Arsht for the Performing Arts of Miami -Dade County opened in 2006 and is home to the Concert Association of Florida, Florida Grand Opera, Miami City Ballet, and the New World Symphony. The county is also home to several museums and wildlife attractions. Summary During its history, Miami -Dade County and the Greater Miami area have experienced significant changes and growth. Trends indicate that the growth will continue with Miami -Dade County rapidly becoming an international city with a diverse culture. The economic base and the bilingual population should continue to attract new residents and businesses into Greater Miami. Sources including, but not limited to: United States Census Bureau (Jan. 2014). http://guickfacts.census.�zov/gfd/states/12/12086.html Miami -Dade County Portal (Jan. 2014). www.miamidade.gov The Beacon Council (Jan. 2014). www.beaconcouncil.com Federal Reserve Economic Data (Jan. 2014). http://research.stlouisfed.org/fred2/ Miami Herald (various articles). http://www.miamiherald.com/ Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 66 Addenda Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Flood Zone Map Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 67 Addenda Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Flood Zone Map 11 ITh{ •r •a *T* OT Win arr •!. •, } +! 1 �slr IYi• IT 4 !! l•pM , !r +i + :I [N iITR •t - h 1` �r++n w+aaaK �nw jj r 11 ITh{ •r •a *T* OT Win arr •!. •, } +! 1 �slr IYi• IT 4 !! l•pM , !r :I [N iITR •t - al !! rN r!• 1` �r++n w+aaaK �nw jj N s t. rk�. � ! ��� 14• he �+ry Y � + A Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 68 Addenda Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Engagement Letter Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 69 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 SCOPE OF WORK - APPRAISAL Land Acquisition Due Diligence For the 0.97 acres of raw land in Miami-f)ade County Miami, Florida Task Of der 0: VA101.16-F-0003 Date: Background and Proposed Action the U. S. Department of Veterans Affairs (`VA.) seeks to acquire land inor around Miami -Dade County, Florida. VA is presently explordng a site which can be found at A %yw.mian►idade.Kov using property search Folio numbers: 01-3135�087-00110 and 01-3135-087-0012 and both parcels combine for the 0.97 acres. Vendor shall perforin work for the site diewift d in Appendix A. Ad work %hull be cw+ducted lh compillance with the Property Access ►49+r v~at attached to this SOW as Appendix & Deliverable Format All items shall be delivered to VA in the farm of high resolution electronic PDF. tf the File is larger than 5Megs. please Include a OD or DVO containing such files. VA will not accept paper or hand -copy documents. Linked title commitments are preferred, L OBJECTIVE The objective of this Scope of Work (SOW) is to obtain appraisal services for the acquisition of a real property interest by the United States of Amer6ca (acquiring agency is the U.S. Department of Veterans Affairs (VA)). If. APPRAISAL A licensed appraiser shall prepare and deliver a complete, self-contained narrative appraisal report for the site in accordance with the Code of Ethics of the Appraisal Institute and the uniform Standards of Professional Appraisal Practice_ Tne appraisal shall also conrorm to the Uniform Appraisal Standards for Ltderal Land Acquisitions fal14 referred to as the yellow Book), a coov of which is attached as Aampendix C. If the appraisal fails to meet the Yellow Book requirements, it will be returned for correction. Appraisal methods shall involve the application of standard approaches to real property value; namely the cost, income and market comparatAe approaches. The appraisal report shall be completed and provided to the VA PflA in electronic formal, no later than 30 days following the date of acceptance of the contract, It. A. Confidentiality & Conflict of Interest The Contractor shall sign a confidentiality agreement and will root engage a transaction in which the company, and principles, or persons working directly with the transaction, have a financial interest In the real estate contemplated herein. The Contractor shall Immedlately notify Government of any potential conflicts that may arise. Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 70 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Last Update; Nov, 21014 Page 2 of 5 SCOPE OF WORK - APPRAISAL La n d Accu i s i k i ah Due Dilig-anoe For the 0.97 acres of raw Lan d, i n M iarr i- I ] (I ',ounty Miami, Florida R. Ad he re nce to Applicable Laws a nd Regulations TI,e °r0nsraCtor agrees to compilyr with all federal and state lass and reguiations that arg alp i,licablc, L IST CSC APPENINCiES Appe-id& A: Ske DesrrIPIian/Map Appe-idix B; Property A c-ess Agreement Appe 7 dim C: U n itorm Appraisal Standards jyellrnw Bank} Appe-idu U_ CanfidentMlity and C*nfllct offintwe5# Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 71 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 tax[ Update: Nov. 2614 Page 3 of 5 SCOPE OF WORK — APPRAISAL Land Acquisition Due Diligence! For the 0.97 acres of mw land in Miami -Dade County Miami. Ftorida APP'E"Dlx A SITE OVERVIEW Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 72 Addenda Vacant Land at 1455 NW 17"' Street, Miami, FL 33125 Las[ update: Nov. 2014 Pane 4 of 5 SCOPE OF WORK - APPRA1SAt. Land Acquisition Due Diligence For the 0.97 acres of raw land in Miami -Dade County Miami, Florida APPENDIX 0 ACCESS ACRE EME NT APPENDIX[: vnrrvw.justice.govl lletgacyl2ol0/1111SIU n1forrn-(appraisal-Standards paf Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 73 Addenda Vacant Land at 1455 NW 17" Street, Miami, FL 33125 Appraiser Licenses Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 74 Addenda RICK SCOTT. GOVERNOR Vacant Land at 1455 NW 17" Street, Miami, FL 33125 KEN LAWSON SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL813 The CERTIFIED GENERALAPPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS Expiration date- NOV 30 206 ROSEN- JOSH LAWRENCE 5734 SW 74TH ST SOUTH MIAMI FL 33141 RICK SCOTT, GOVERN014 ® F �.1 ri'ce'r KEN LAWSON, SLCHLIARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL SD The CERTIFIED GENERAL APPRD'dSCR Named below 15 CERTIFIED Under the provisio75 of Chapter 475 FS. Expiration date: NOV 30, 2418 ._��T�� PUENTE,ALEJANDRO CARLOS 10033 SW 77TH COURT MIAMI FL �e Waronker & Rosen, Inc. #0 Real Estate Appraisers & Consultants 75