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Home My WebLink AboutMelreese Appraisal CBRECBRE VALUATION & ADVISORY SERVICES C T MELREESE GOLF COURSE 1802 NORTHWEST 37TH MIAMI, FLORIDA 33125 CBRE GROUP, INC. FILE CITY OF MIAMI AVENUE NO. 18-397MI-0657-1 CBRE VALUATION & ADVISORY SERVICES CBRE 777 Brickell Ave. Ste. 1 100 Miami, FL 33131 T (305) 381-6472 F 305-381-6462 www.cbre.com May 21, 2018 Jacqueline Lorenzo Project Management Specialist CITY OF MIAMI 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 RE: Appraisal of: Melreese Golf Course 1802 Northwest 37th Avenue Miami, Miami -Dade County, Florida CBRE, Inc. File No. 18-397MI-0657-1 Dear Ms. Lorenzo: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 131.07 -acre (5,709,575 sq. ft.), 18 -hole municipal owned & operated golf course located at 1802 Northwest 37th Avenue in Miami, Florida. However, the City of Miami is considering other uses including leasing a portion of the site to a third -party developer for a higher density, mixed-use development, subject to a voter referandum, a land use amendment & rezoning of the site to SAP, Special Area Plan. The subject location is strategically situated at the northeast quadrant of the Dolphin Expressway (State Road 836) & NW 42nd Avenue (LeJeune Road) on the east side of the Miami International Airport and is an ideal location for a higher density, mixed-use business park. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is As Is, Fair Market Rent As Is, Fair Market Rent Fee Simple Estate Fee Simple Estate Fee Simple Estate May 8, 2018 May 8, 2018 May 8, 2018 $160,000,000 $8,500,000/Annum $1.49/PSF Compiled by CBRE Jacqueline Lorenzo May 21, 2018 Page 2 The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non -intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Stuart J. Lieberman, MAI Vice President Cert Gen RZ1074 www.cbre.com/stuart.Iieberman Phone: (305) 381-6472 Fax: (305) 381-6462 Email: stuad.Reberman(! cbme.comi © 2018 CBRE, Inc. James E. Agner, MAI, AI-GRS, SGA, MRICS Senior Managing Director — Florida/Caribbean Cert Gen RZ382 www.cbre.com/iames.agner Phone: (305) 381-6480 Fax: (305) 381-6462 Email: pamnes.agmergacbrexoQm CBRE Certification Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, Stuart J. Lieberman, MAI and James E. Agner, MAI have completed the continuing education program for Designated Members of the Appraisal I nstitute. 11. Stuart J. Lieberman, MAI has and James E. Agner, MAI has not made a personal inspection of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the persons signing this report. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Stuart J. Lieberman, MAI and James E. Agner, MAI have not provided any services, as an appraiser, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Stuart J. Lieberman, MAI Cert Gen RZ1074 Melreese Golf Course, Miami, Florida James E. Agner, MAI, AI-GRS, SGA, MRICS Cert Gen RZ382 CBRE Subject Photographs Subject Photographs Melreese Golf Course, Miami, Florida © 2018 CBRE, 1-. CBRE Aerial View - Zoom Out Melreese Golf Course, Miami, Florida © 2018 CBRE, Inc. iv Subject Photographs CBRE - - x r Photo 1 -Main Entrance From NW 37'h Ave. Photo 2 -Looking North From 15th -Hole low Photo 3 -Looking SW From Practice Tees Photo 4 - View West Along Tamiami Canal y s Photo 5 - Fairwav View Lookina North Photo 6 - 3rd Hole Lookina East Photo 7 - Fairwav View Photo 9 - Fairwav View Photo 8 - 5th Hole Lookina South Photo 10 -Fairwav View Photo 1 1 - Clubhouse from 18'h Hole MPhoto 12 - NW 37'h Ave. Lookina South Executive Summary Executive Summary Property Name Melreese Golf Course Location 1802 Northwest 37th Avenue, Miami, Miami -Dade Not Applicable County, Florida 33125 Highest and Best Use $160,000,000 As If Vacant Mixed-use multi -family, office, retail & logistics $8,400,000 business park As Improved Interim use golf course with future mixed-use $1.50 redevelopment Property Rights Appraised Fee Simple Estate Date of Report May 21, 2018 Date of Inspection May 8, 2018 Estimated Exposure Time 6 to 12 Months Estimated Marketing Time 6 to 12 Months Land Area 131.07 AC 5,709,575 SF Zoning - Existing CS, Civic Space Zoning - Proposed SAP, Special Area Plan Improvements - Existing Property Type Land (Mixed -Use) Number of Buildings 4 Number of Stories 1 Gross Building Area 10,470 SF Year Built 1972, 2007 & 2009 Condition Good Buyer Profile Developer VALUATION Market Value As Is On May 8, 2018 Total Per SF Cost Approach Not Applicable --- Sales Comparison Approach $160,000,000 $28.02 Income Approach - Rent Multiplier Method $8,400,000 $1.47 Income Approach - Market Rent Comparison $8,565,000 $1.50 CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Date of Value Value As Is Fee Simple Estate May 8, 2018 $160,000,000 As Is, Fair Market Rent Fee Simple Estate May 8, 2018 $8,500,000 As Is, Fair Market Rent Fee Simple Estate May 8, 2018 $1.49/PSF Compiled by CBRE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities • The subject is located immediately east of the Miami International Airport. Melreese Golf Course, Miami, Florida © 2018 CBRE, 1- vii CBRE Executive Summary • The subject is an in -fill, urban location with potential for higher density, mixed-use development, subject to a voter referendum, land use amendment & rezoning the site to SAP, Special Area Plan rezoning. • The subject topography is improved at or above road grade with a higher percentage of uplands versus water hazards. Weaknesses/ Threats • The voter referendum, land use amendment & rezoning process could take 12 -to -24 month and will likely have opposition & protest from the neighboring residential community. • The City of Miami has an obligation to maintain parks & recreation areas for the public good with a zero -net loss policy within the city limits. However, parks & recreation areas can be mitigated by on-site open space requirements, the retention of a 9 -hole golf course use, and through off-site mitigation. • Any land use amendment, rezoning & future development will be height restricted by the FAA based on proximity to the Miami International Airport. EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as "an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." ' • We requested, but did not receive a Phase I environmental or a geotechnical subsurface assessment. Therefore, all our analysis and value conclusions could be impacted and subject to revision if any of these due diligence items are provided after -the -fact. • Our analysis and value conclusions assume the City of Miami can readily achieve a voter referendum, a land use amendment & rezoning of the site to SAP, Special Area Plan necessary to develop the subject site to a higher density, mixed-use. If not, our analysis and value conclusions will be impacted and we reserve the right to amend this report accordingly. • The use of these extraordinary assumptions may have affected the assignment results. HYPOTHETICAL CONDITIONS A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis." 2 • None noted. OWNERSHIP AND PROPERTY HISTORY Title to the property is currently vested in the name of City of Miami Department of P&D Asset Management Division and the existing Melreese Country Club is managed by DeLucca 1 The Appraisal Foundation, USPAP, 2018-2019 Z The Appraisal Foundation, USPAP, 2018-2019 Melreese Golf Course, Miami, Florida CBRE Executive Summary Enterprises, Inc. since 1972. The Melreese Country Club was established in 1942 with no transactions or conveyances reported since then. However, we did not perform nor were we provided with a title abstract. According to historic accounts and recent media, the Melreese golf course was designed by Charles Mahannah and Dick Wilson and opened in 1961 as the only city -owned course in Miami. It is one of the few municipally owned businesses in Miami that is expected to break even on a budget of $3.5 million. The course underwent an extensive renovation in 1996-97 and again in 2014. Greens fees are priced at $35 for residents and reports approximately 40,000 rounds played a year. It also features a two-sided driving range, indoor hitting bays, a learning center and classroom space. At present, it is our understanding that the David Beckham led investor group is considering the Melreese golf course as one of several potential sites for the 25,000 -seat Major League Soccer (MLS) stadium. However, any change in use would require a voter referendum, a land use amendment, rezoning and mitigation to off -set the loss of any parks & recreation land within the city limits. EXPOSURE/MARKETING TIME Current appraisal guidelines require an estimate of a reasonable time in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following: • exposure periods for comparable sales used in this appraisal; • exposure/marketing time information from the CBRE, Inc. National Investor Survey and the PwC Real Estate Investor Survey; and • the opinions of market participants. The following table presents the information derived from these sources. EXPOSURE/MARKETING TIME DATA Exposure/Mktg. (Months) Investment Type Range Average Comparable Sales Data 6.0 - 12.0 9.0 Local Market Professionals 6.0 - 12.0 9.0 CBRE Exposure Time Estimate 6 to 12 Months CBRE Marketing Period Estimate 6 to 12 Months CBRE National Investor Survey & PwC Real Estate Survey ix Melreese Golf Course, Miami, Florida CBRE Table of Contents Table of Contents Certification SubjectPhotographs............................................................................................................ ii ExecutiveSummary ............................................................................................................vii Tableof Contents.................................................................................................................x Scopeof Work..................................................................................................................... 1 AreaAnalysis...................................................................................................................... 6 NeighborhoodAnalysis....................................................................................................... 9 SiteAnalysis...................................................................................................................... 17 Zoning.............................................................................................................................. 22 Tax and Assessment Data.................................................................................................. 26 Highestand Best Use........................................................................................................ 27 LandValue........................................................................................................................29 Income Approach — Fair Market Rent Analysis.................................................................... 36 Assumptions and Limiting Conditions................................................................................ 40 ADDENDA r; Land Sale Data Sheets B Legal Description C Client Contract Information D Qualifications Melreese Golf Course, Miami, Florida © 2018 CBRE, 1-. X CBRE Scope of Work Scope of Work This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied. INTENDED USE OF REPORT This appraisal is to be used by the client, the City of Miami and its elected officials for internal decision making regarding the potential to lease a portion of the site to a third party, and no other use is permitted. CLIENT The client is the City of Miami. INTENDED USER OF REPORT This appraisal is to be used by the City of Miami and its elected officials, and no other user may rely on our report unless as specifically indicated in the report. Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser's responsibility is to the intended users identified in the report, not to all readers of the appraisal report. s PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property. DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 3 Appraisal Institute, The Appraisal of Real Estate, 10 ed. (Chicago: Appraisal Institute, 2013), 50. Melreese Golf Course, Miami, Florida 1 CBRE Scope of Work 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. a INTEREST APPRAISED The value estimated represents fee simple estate as defined below: Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.' Leased Fee Interest - The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.' Leasehold Interest - The tenant's possessory interest created by a lease.' Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor's records • legal description Extent to Which the Property is Inspected The extent of the inspection included the following: clubhouse interior, on-site & off-site areas and the surrounding environs. Type and Extent of the Data Researched CBRE reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • comparable sale, listing & rental data 4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472. 5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6h ed. (Chicago: Appraisal Institute, 2015), 90. 6 Dictionary of Real Estate Appraisal, 128. 7 Dictionary of Real Estate Appraisal, 128. 2 Melreese Golf Course, Miami, Florida CBRE Scope of Work Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. For vacant land, the sales comparison approach has been employed for this assignment. Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Size Legal description & survey Improved Data Building Area Public records & Miami -Dade County Property Appraiser No. Bldgs. Public records, Miami -Dade County Property Appraiser & observation Parking Spaces Field count Year Built/Developed Public records Economic Data Deferred Maintenance: Not applicable Building Costs: Not applicable Income Data: Not applicable Expense Data: Not applicable Other Land Use & Rezoning City of Miami Planning & Zoning Department Compiled by CBRE APPRAISAL METHODOLOGY In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Depending on a specific appraisal assignment, any of the following four methods may be used to determine the market value of the fee simple interest of land: • Sales Comparison Approach; • Income Capitalization Procedures; • Allocation; and • Extraction. The following summaries of each method are paraphrased from the text. The first is the sales comparison approach. This is a process of analyzing sales of similar, recently sold parcels in order to derive an indication of the most probable sales price (or value) of the property being appraised. The reliability of this approach is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data regarding size, price, terms of sale, etc., (c) the degree of comparability or extent of adjustment necessary for differences between the subject and the comparables, and (d) the absence of nontypical conditions affecting the sales price. This is the primary and most reliable method used to value land (if adequate data exists). Melreese Golf Course, Miami, Florida 3 CBRE 2018 CBRe, Inc. Scope of Work The income capitalization procedures include three methods: land residual technique, ground rent capitalization, and Subdivision Development Analysis. A discussion of each of these three techniques is presented in the following paragraphs. The land residual method may be used to estimate land value when sales data on similar parcels of vacant land are lacking. This technique is based on the principle of balance and the related concept of contribution, which are concerned with equilibrium among the agents of production--i.e. labor, capital, coordination, and land. The land residual technique can be used to estimate land value when: 1) building value is known or can be accurately estimated, 2) stabilized, annual net operating income to the property is known or estimable, and 3) both building and land capitalization rates can be extracted from the market. Building value can be estimated for new or proposed buildings that represent the highest and best use of the property and have not yet incurred physical deterioration or functional obsolescence. The subdivision development method is used to value land when subdivision and development represent the highest and best use of the appraised parcel. In this method, an appraiser determines the number and size of lots that can be created from the appraised land physically, legally, and economically. The value of the underlying land is then estimated through a discounted cash flow analysis with revenues based on the achievable sale price of the finished product and expenses based on all costs required to complete and sell the finished product. The ground rent capitalization procedure is predicated upon the assumption that ground rents can be capitalized at an appropriate rate to indicate the market value of a site. Ground rent is paid for the right to use and occupy the land according to the terms of the ground lease; it corresponds to the value of the landowner's interest in the land. Market -derived capitalization rates are used to convert ground rent into market value. This procedure is useful when an analysis of comparable sales of leased land indicates a range of rents and reasonable support for capitalization rates can be obtained. The allocation method is typically used when sales are so rare that the value cannot be estimated by direct comparison. This method is based on the principle of balance and the related concept of contribution, which affirm that there is a normal or typical ratio of land value to property value for specific categories of real estate in specific locations. This ratio is generally more reliable when the subject property includes relatively new improvements. The allocation method does not produce conclusive value indications, but it can be used to establish land value when the number of vacant land sales is inadequate. The extraction method is a variant of the allocation method in which land value is extracted from the sale price of an improved property by deducting the contribution of the improvements, which is estimated from their depreciated costs. The remaining value represents the value of the land. Value indications derived in this way are generally unpersuasive because the assessment ratios may be unreliable and the extraction method does not reflect market considerations. For the purposes of this analysis, we have utilized the sales comparison approach and the income approach. In the sales comparable approach, we have researched & analyzed similar 4 Melreese Golf Course, Miami, Florida CBRE Scope of Work comparable land sales within the immediate submarket area and the broader south Florida region. In regard to estimating the fair market rent of the subject property, we have surveyed the market and researched large business park and retail ground lease rent comparables for direct comparison to the subject property As Is via the income approach. 5 Melreese Golf Course, Miami, Florida CBRE Area Analysis Area Analysis B R O W A R DekeL oe And er-1, Y� poltlen Beech me .......... ...... i a5a � �hrlantl 858 O ountry Club° ew Nnrih Miami 1 Palm Spr gs .a of - � Beach SLnnY Isles Norc r L k B h P rk Glad It s: e1 aY 915 �� _ _ -N. MAOi°lafmi s boi iA H \\ 9tt -11 tl B IHerbour _ rk Surfstle M Ind l k I Hi leak G tlens"� ' Bey gal. V1law_ end �y lee 1 _ 395ubject Property 49 1802 NW 311h Ave Springs Miami, FL 33125 oral Iv Usla Bel M I A M I- D A D E Vanaerb t ° o aM al aq1 17 F L O R I D A l Miami Beach h A t 1 aTr it Gletles ., Y Range Swe1 water F oe cry Coovedown sl slam mal G tles nete state 9 Vuga�ia Nay us y servetl°n(closed) a Parks s peel Coral �� 9 eom Te a e Miami Biscayne 5 51 58 St eb MlBay A9ua[ic °11 111L�y Bne lenver bo Preserve 4 gMs Biscayne BY _ E-dititles NNmoneI Park �� 1P5 e ey Dl ceyne The Hammocks104 rq' °., net a K'M'a Dr a. PI e } ¢rry 1�➢Ih S[ � Th, a 90 ° cre A Y n eav three end II� p1 Lakee -- Gnun[ry Walk q 4tN SY ° almeN 991-pleM1mo C- Nay B� Ne4°nel Park Co rl httD an P` 1 D&�20121.1iaosatt Co r oration an dl, r ds su Mars. All right, -,W. Pal Moody's Economy.com provides the following Miami -Miami Beach -Kendall, FL metro area economic summary as of Feb -18. MIAMI -MIAMI BEACH-KENDALL, FL - ECONOMIC INDICATORS Indicators 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Gross Metro Product (C09$ Bil) 105.0 106.3 108.4 111.1 115.0 117.1 120.0 125.9 133.4 136.8 142.9 149.1 % Change 0.2 1.2 2.0 2.5 3.6 1.8 2.4 5.0 5.9 2.6 4.4 4.4 Total Employment (Ths) 1,007.3 1,031.3 1,056.5 1,089.3 1,125.8 1,157.7 1,181.9 1,211.0 1,235.5 1,244.6 1,248.9 1,264.2 % Change 2.2 2.4 2.4 3.1 3.4 2.8 2.1 2.5 2.0 0.7 0.3 1.2 Unemployment Rate (%) 9.4 8.3 7.5 6.8 5.9 5.4 4.9 4.2 3.9 4.4 5.1 5.3 Personal Income Growth (%) 4.8 2.6 0.4 7.8 7.8 2.8 4.2 5.8 7.2 6.0 5.6 6.0 Median Household Income ($ Ths) 41.9 42.2 42.6 43.2 44.6 45.9 47.5 49.5 51.8 53.7 55.2 57.1 Population (Ths) 2,573.4 2,607.6 2,641.7 2,668.5 2,695.7 2,718.8 2,747.4 2,783.5 2,821.1 2,858.3 2,895.3 2,932.4 IN Change 2.6 1.3 1.3 1.0 1.0 0.9 1.1 1.3 1.3 1.3 1.3 1.3 Net Migration (Ths) 53.1 21.0 21.5 16.3 13.1 16.0 18.6 26.3 27.9 27.8 27.7 28.0 Single -Family Permits (#) 962.0 1,819.0 2,266.0 2,077.0 2,800.0 2,873.0 2,283.1 3,939.3 5,836.3 6,358.1 7,021.9 7,168.2 Multifamily Permits (#) 1,656.0 3,250.0 8,050.0 5,654.0 9,817.0 6,444.0 7,562.8 3,863.3 4,451.3 5,936.6 6,042.9 6,696.8 Fhfa House Price (1995Q1=100) 182.7 185.6 207.4 232.9 256.0 281.4 303.3 307.3 300.0 295.7 294.8 297.2 Source: Moodys Economy.com RECENT PERFORMANCE Economic growth in Miami -Miami Beach -Kendall (MIA) has stalled. The area's unemployment rate was unchanged over the last six months of 2017 as average hourly wages grew by an unimpressive 1.5% last year. Despite creating plenty of mid -wage jobs in wholesale trade, transportation and utilities, wage growth suffered because MIA is losing high -wage jobs in Melreese Golf Course, Miami, Florida CBRE © 2018 CBRE, Inc. Area Analysis finance. Labor market troubles are beginning to weigh down the housing market. For the first time since 2011, house price appreciation in MIA fell short of the national average last year. LEISURE AND HOSPITALITY Jobs and income in leisure and hospitality will accelerate over the next few quarters as tourism in MIA recovers from the blow delivered late in 2017 by Hurricane Irma. But growth will eventually slow as rising interest rates in the U.S. strengthen the dollar, making travel to MIA more expensive for overseas visitors and trips to foreign destinations more appealing for Americans. Further ahead, a pullback is also likely when the economic expansion, which is already the third - longest in U.S. history, comes to an end. CRUISE CONTROL Though growth will slow, the outlook for leisure and hospitality in MIA is not as grim as the nationwide forecast because local tourism is buttressed by the behemoth cruise industry. Last year, PortMiami broke its own 1 -year-old world record and welcomed 5.3 million passengers. The current fiscal year should be even busier than the last, as Royal Caribbean's 6,700 -passenger Symphony of the Seas, the world's largest cruise ship, starts sailing from the port in the fall. The growing cruise industry is also good news for jobs in professional services; MIA is the headquarters of Carnival Corp., Royal Caribbean Cruises Ltd., and Norwegian Cruise Line Holdings Ltd., the world's three largest cruise lines. AMAZON HQ2 MIA joined the list of 20 finalists that Seattle -based Amazon selected in its widely publicized search for a second headquarters because of the area's many advantages. Amazon is a logistics behemoth, and MIA is a leading distribution center -Miami International is the nation's second - busiest airport as ranked by metric tons of international freight, and PortMiami is the only East Coast port south of Virginia capable of docking the largest ships that can navigate through the recently expanded Panama Canal. MIA is also an international gateway. The metro division is the only area in the U.S. where the majority of residents are foreign -born, and the airport is the nation's second -busiest hub for international travel. Like all Florida cities, MIA boasts no state or local income taxes and a warm business and meteorological climate. But MIA also features significant drawbacks. Because of strained budgets and political opposition to "corporate welfare," state and local officials are unlikely to offer Amazon an incentive package on par with other metro areas. And though MIA offers Florida's most extensive public transportation system, commuter and metro rail service lags compared with the cities in the Northeast Corridor. Finally, within the continental U.S., no two major cities are farther apart than MIA and Seattle. Though this great distance provides an advantage from geographic diversity, the travel costs and time required to shuttle senior executives between these far-flung locations could hurt MIA. Melreese Golf Course, Miami, Florida CBRE s 2018 C3Rc, nc. Area Analysis CONCLUSION Tourism in Miami -Miami Beach -Kendall will rebound in the short run, but then it will face new headwinds from unfavorable exchange rates. However, the cruise industry will be a source of low- and high -wage jobs. In the long run, MIA's international character and high -skilled, bilingual workforce will help it best the U.S. in income growth. E Melreese Golf Course, Miami, Florida CBRE Neighborhood Analysis Neighborhood Analysis LOCATION The subject property is located along the northwest quadrant of NW 14`" Street and NW 37`" Avenue in the City of Miami. This location is approximately 6 -miles northwest of the downtown Miami central business district (CBD) and immediately across the way from the Miami International Airport on the east side of NW 42nd Avenue (LeJeune Road). BOUNDARIES The neighborhood boundaries are detailed as follows: • North: Miami River • South: SW 8'" Street (Tamiami Trail/State Road 7/US Highway 41) • East: Interstate 95 and downtown Miami CBD & Biscayne Bay • West: N.W. 42nd Avenue/Lejeune Road and Miami International Airport LAND USE Land uses within the immediate submarket area consist primarily of older, single family residential homes including the Grapeland Heights subdivisions to the east. The Grapeland Heights community dates to the 1940s & 1950s and best described as small, rambler style housing with 2 to 4 -bedroom floor plans, 1,000 to 2,000 square feet of living area and 6,000 to Melreese Golf Course, Miami, Florida CBRE © 2018 CBRE, Inc. E 1 'S 1. MEE a. Moir- ir,, ., ■, �� mss, ° ° �I .69��—_ LOCATION The subject property is located along the northwest quadrant of NW 14`" Street and NW 37`" Avenue in the City of Miami. This location is approximately 6 -miles northwest of the downtown Miami central business district (CBD) and immediately across the way from the Miami International Airport on the east side of NW 42nd Avenue (LeJeune Road). BOUNDARIES The neighborhood boundaries are detailed as follows: • North: Miami River • South: SW 8'" Street (Tamiami Trail/State Road 7/US Highway 41) • East: Interstate 95 and downtown Miami CBD & Biscayne Bay • West: N.W. 42nd Avenue/Lejeune Road and Miami International Airport LAND USE Land uses within the immediate submarket area consist primarily of older, single family residential homes including the Grapeland Heights subdivisions to the east. The Grapeland Heights community dates to the 1940s & 1950s and best described as small, rambler style housing with 2 to 4 -bedroom floor plans, 1,000 to 2,000 square feet of living area and 6,000 to Melreese Golf Course, Miami, Florida CBRE © 2018 CBRE, Inc. Neighborhood Analysis 8,000 square foot lots. Recent sale transactions reported in the range of $245,000 to $320,000 and there are multi -family, duplexes interspersed throughout the neighborhood. Commercial development is centered along the prime east/west thoroughfares of Flagler Street and SW 8th Street, SW 7th Street, and NW 7th Street, as well as, the prime north -south thoroughfares of N.W./S.W. 27th Avenue, N.W. 37'" Avenue and N.W./S.W. 42nd Avenue, (Lejeune Road). The residential uses to the south of NW 14th Street and the subject locale consist of single family subdivisions built during the 1950's and 1960's. The same time of development pertains too much of the commercial structures in the neighborhood. Uses along Flagler Street and S.W. 8th Street include older hotels, restaurants, retail buildings, and service business uses. Because of the built -out nature of the neighborhood, most of the new development has resulted from renovation or demolition and redevelopment of older structures. Most redevelopment has taken place in closer proximity to downtown Miami, though there has been renovation and redevelopment moving west in & around the subject neighborhood. In addition, there has been new higher density residential developments along the Miami River, which is a deep -water impetus for maritime activity, including marinas, shipping terminals, boat repair facilities and commercial fisherman wharfs along the Miami River and Tamiami Canal working waterfront. However, newer high-rise residential and mixed-use projects have been constructed along the Miami River in the past decade including Latitude on the River, Mint at Riverfront, Neo Vertika, River Oaks Marina & Tower, Terrazas Miami and the under construction mixed-use, vertical retail center identified as River Landing further down river and located in the Health District. The Miami International Airport anchors the submarket immediately to the west of the subject property. The Miami International Airport handles flights to cities throughout the Americas and Europe, as well as cargo flights to Asia, and is South Florida's main airport for long-haul international flights, although most domestic and low-cost carriers use Fort Lauderdale - Hollywood International Airport and Palm Beach International Airport, which charge significantly lower fees to tenant airlines. Miami is a major gateway between the United States and Latin America, and, along with Atlanta's Hartsfield -Jackson Airport, Miami is one of the largest aerial gateways into the American South, owing to its proximity to tourist attractions, local economic growth, large local Latin American and European populations, and strategic location to handle connecting traffic between North America, Latin America, and Europe. In the past, it has been a hub for Braniff International, Eastern Air Lines, Air Florida, the original National Airlines, the original Pan Am, United Airlines, and Iberia. As an international gateway to the United States it ranks third, behind New York -JFK in New York City and LAX in Los Angeles. Miami is also the proposed hub of two new start-up airlines, one which hopes to use the Eastern Airlines name. Melreese Golf Course, Miami, Florida 1° CBRE 2018 CBRe, Inc. Neighborhood Analysis More recently, the Miami Intermodal Center (MIC) located just east of the Miami International Center and due north of the subject property is a $2 billion ground transportation hub is being built by the Florida Department of Transportation. The MIC Program consists of several components including major roadway improvements, a reconfigured Le Jeune Road, completed in May 2008; the user-friendly Rental Car Center which opened for business in July 2010; the MIA Mover which became operational in September 2011 and connects MIA to the Rental Car Center; the Miami Central Station which opened in April 2015 currently offers connections to Tri -Rail and Greyhound services with Amtrak services scheduled to start in the fall of 2017; and Joint Development which is currently being explored. Another notable land use in the Miami International Airport submarket is the Waterford at Blue Lagoon office park, which is a 250 -acre master planned business park that runs along the south side of State Road 836/Dolphin Expressway with mid -rise corporate office buildings overlooking the Miami International Airport and the Blue Lagoon/Tamiami Canal water feature. Waterford is a phased office park owned by TIAA-CREF and developed by the Hogan Group, and home to more than 200 well-known companies comprising regional, national, and international firms such as Burger King, Canon, Xerox, Estee Lauder, Federal Express, Johnson & Johnson, Oracle, Sony, Miami Children's Hospital, Verizon Wireless, Breitling USA, Inc., Yves Saint Lauren Beaute, Bank of America, FirstBank Florida, The Discovery Channel Latin America, Ford Motor Company, Komatsu America, , Royal Caribbean Cruise Lines, Seabourn Cruise Lines, Sharp Electronics, and other notable firms. In the following table, is a summary of Waterford at Blue Lagoon, as well as, other notable office buildings, including the Airport Corporate Center buildings located immediately west of the Miami International Airport and just north of the subject property's location. Melreese Golf Course, Miami, Florida >> CBRE 2018 CBRe, Inc. Neighborhood Analysis Availability and Vacancy Building List Building Address Existing Rentable &dg Area Vacant Vaca t Direct % Vacant Total SF Vacant Total % Vacant Avail SF Available ©v it le Available SubletAvailable Available le Max sr Contig ig A,,g Rate 5040 NW 7th St 82,763 20,379 24,6% 20,379 24,6% 20,379 20.379 0 6.732' 525.001E 7270 NW 12th St 86,475 10,7401 12.4% 10,740 12.4% 26,494 24,243 2,251 5,046 524.001mg 7925 NW 12th St 70,142 14,950 21.3% 14,950 21.3% 18,045 18,045 0 5,521 $23.008 7955 NW 12th St 69,871 13,052 18.7% 13,052 18.7% 13,052 13,052 0 6,755 S23-00fts 8095 NW 12th St 41,878 0 0.0% 0 0.0% 5,3D4 2,304 0 3,OD0 $24-50fis 8175 NW 12th St 65,921 1,600 2.4% 1.600 2.4% 7,269 7,269 0 5,669 $23. 8301-8391 NW 12th St 124,121 4,905 4.0% 4,9051 4.0% 4,9D5 4,905 0 1,358 S25 -DONS 8600 NW 17th St 63,240 19,711 31.2% 19.711 31.2% 22 210 19.711 2,499 19.711 19fis 780 NW 42nd Ave 110,000 0 0.0% D 0.❑% 0 0 0 0 782 NW 42nd Ave 278,000 0 0.0% 0 0.0% 9,662 9,662 0 9.662 850 NW 42nd Ave ❑ ❑ 0 - 0 0 ❑ 0 701-707 NW 571n Ave 31,407 2,340 7.6% 2,340 7.6% 2,340 2,340 0 2,340 $20.001nm 815 NW 57th Ave 90,026 11,858 132% 11,858 13.2% 13,458 13,458 0 3,995 W_DDh1 1000 NW 57th Ct 247,000 36,805 14.6% 37,467 15.2% 53,707 36,005 17.702 16,240 $24.02/nm 1004 NW 65th Ave 200.000 0 0.0% 0 0.8% 0 0 0 0 1150 NW 72nd Ave 74,331 30,177 40.6% 30,177 40.6% 31,507 31,507 0 8,139 $22-001irng 1200 NW 78th Ave 58,844 0 0.0% 0 0.0% 0 0 0 a $23.00A 5200 Blue Lagoon Dr 250,920 16,144 6.4% 16,144 6.4% 24,324 24,324 0 13,009 $22.531nm 52101 Blue Lagoon Dr 210,784 16,543 7.8% 16,543 7.8% 24,739 14,739 O 5,840 $22.001nm 5301 Blue Lagoon Dr 204.8$7 0 0.0% 0 0.0% ❑ 0 ❑ a 5505 Blue Lagoon Dr 212,619 0 0.0% 4 0.0% 211,829 211,829 0 211,829 5707 Blue Lagoon Dr 0 0 0 0 0 0 0 5757 Blue Lagoon Dr 64,8911 3,484 20.8% 13,484 20.8% 13,484 13,484 0 7,811 $20.501nm 5775 Blue Lagoon Dr 60,338 11,133 18.5% 11,133 18.5% 13,506 13,506 0 8,700 $20.441nm 5805 Blue Lagoon Dr 60,338 19,983 33.1% 19,983 33.1% 200,998 19,983 1,015 11,688 $20.501nm 5835 Blue Lagoon Dr 57,565 10,139 17.6% 10,139 17.6% 13,383 13,383 0 5,580 $29.528 5959 Blue Lagoon Dr 78,374 1,583 2.0% 1,583 2.0% 1,583 1,583 0 1,583 $30.008 61O❑ Blue Lagoon Dr 165,963 5,278 321/a 5,278 32% 5,278 5,278 ❑ 1,953 $20.501ntm 6101 Blue Lagoon Dr 89,015 0 0.0% 0 0.0% 0 0 0 D 6161 Blue Lagoon Dr 89,081 0 0.0% 0 0.0% 0 0 0 0 6205 Blue Lagoon Dr 91,DOD 0 0.0% 0 0.096 17,076 7,715 9,361 5,741 $24.501nm 6303 Blue Lagoon Dr 163,445 21,488 13.1% 21,488 13.1% 28,000 23,000 0 6,298 $20.471nm 6505 Blue Lagoon Dr 178,287 11,946 6.7% 33,344 18.7% 38,355 16,957 21,398 21.398 $20.50/nm 7200 Corporate Center Dr 92,306 5,326 5.8% 6,326 5.8% 13,840 13,840 0 7,622 $20.08innn 7205 Corporate Center Or 80,866 12,321 16.2% 12,321 16.2% 20,657 20,657 0 12,561 $20.171rtm 7300 Corporate Center Or 241,594 6,697 2.8% 6,697 2.8% 6,697 6,697 0 6,617 $23.001nm 7600 Corporate Center Dr 140,045 27,059 19.3% 27,059 19.30% 31,276 31,276 0 26,261 $23.00him 7665 Corporate Center Dr 125,808 0 0.0% 0 0.096 0 0 0 0 7650 NW Corporate Center Dr 125,822 0 0.0% 0! 0.O% 0 0 0 0 351 NW Le.feune Rd 87,422 0 0.0% 0 0.0% 1,744 0 1,744 1,744 522,701+ubl 701 Waterford Way 247.000 a 0.0% 0 0.0% 15,939 0 15.939 15,939 $24.00/nm 703 Waterford Way 247.000 13,832 5.6% 16,585 6.7% 18,249 15,496 2.753 5,673 $24,001nm 800 Waterford Way 246,085 134,700 54.7% 134,700 54.7% 98,398 98,398 0 40,048 $27,941nm Grand Totals {43 Bldgs} 5,305,474 493,373 8.3% f,18,90619,9% 947,587 754,925 74,662 211,829 x30.09/is CBRE pyn412fiage Caglxed repcdneert ort h[a CBRE • 1078,k)P1 As noted, there is approximately 5.305 million square feet of existing Class A & B office space in the immediate vicinity of the subject property, of which a total of 518,986 -SF or 9.3% is vacant and available "for lease" with the majority in the range of $23.00 to $30.00 per square foot, on a full-service basis, and -or $20.00 to $24.50 per square foot on a triple net basis. Melreese Golf Course, Miami, Florida 12 CBRE © 2018 CBRE, Inc. Neighborhood Analysis GROWTH PATTERNS Growth patterns have occurred from the 1940s through present with single family subdivision, commercial retail & service businesses, and more contemporary corporate office deliveries dating back to the 1970's, 1980's, 1990's through the 2000's including recently completed limited service and suite hotels that service the airport and business travelers; condominium conversions, i.e. rental apartments to condominium ownership & reconversion back to rental; retail shopping center renovations and new developments, such as, the recently completed Keystone Shoppes located at 190 NW 42nd Avenue and the proposed Blue Lagoon Shoppes to be located at 1 101 NW 57`" Avenue. ACCESS Primary access to the subject neighborhood is provided by State Road 836/Dolphin Expressway, the NW 14th Street exit and N.W. 37th Avenue (Douglas Road). Regional access is considered excellent with the area bracketed by some of the major South Florida Highways, including the Florida Turnpike (toll road) to the west; Interstate 95 to the east and the Airport Expressway (State Road 1 12) to the north. However, the single largest influence for the subject property and submarket is the Miami International Airport (MIA), situated on the north side of State Road 836/Dolphin Expressway, between the Palmetto Expressway (State Road 826) and LeJeune Road (N.W. 42nd Avenue). It is the economic hub of the entire region, including international travel and cargo logistics, while supporting the Doral/Airport West industrial submarket to the west and the downtown Miami/Brickell Avenue financial submarket to the east. Local east/west access in the subject area is provided by West Flagler Street, NW 7th Street, NW 20th Street and NW 14th Street. Local north/south access is provided via NW 12th Avenue, NW 17th Avenue, NW 22nd Avenue, NW 27th Avenue, NW 37`" Avenue, NW 42nd Avenue and NW 57'" Avenue. Access to the downtown Miami CBD is provided via a mass transit system known as Metrorail and the Metromover. The Metrorail is an elevated track train system, which extends north and west to the City of Hialeah and south to the Dadeland area of unincorporated Miami -Dade County. The Metromover is a remote controlled elevated track vehicle system, which provides local transportation in and out of the Central Business District. Finally, the Miami River is a restricted deep -water access waterway that navigates down river to the Biscayne Bay, the Port of Miami and the Atlantic Ocean. Small pleasure boat and cargo freighters navigate the Miami River via draw bridges at Brickell Avenue, Miami Avenue, the FEC railway tracks, S.W. 2nd Avenue and S.W. 1st Street. The Interstate 95 off -ramps are fixed bridges. Melreese Golf Course, Miami, Florida 13 CBRE 2018 CBRe, Inc. Neighborhood Analysis Overall, regional and local access to and throughout the subject neighborhood is considered good by land and air & sea, which provides a strategic benefit to the subject property. DEMOGRAPHICS Selected neighborhood demographics in 1-, 3-, and 5 -mile radii from the subject are shown in the following table: SELECTED NEIGHBORHOOD DEMOGRAPHICS 1802 NW 37th Avenue 2022 Total Households 5,540 98,282 1 Mile 3 Miles 5 Miles Miami, FL 252,794 2010 Total Households 5,330 Population 226,746 2000 Total Households 5,134 2022 Total Population 17,305 274,747 710,971 2017 Total Population 16,761 261,852 668,943 2010 Total Population 16,363 247,310 607,293 2000 Total Population 16,628 235,053 566,305 Annual Growth 2017 - 2022 0.64% 0.97% 1.23% Annual Growth 2010 - 2017 0.34% 0.82% 1.39% Annual Growth 2000 - 2010 -0.16% 0.51% 0.70% Households 2022 Total Households 5,540 98,282 269,579 2017 Total Households 5,392 93,959 252,794 2010 Total Households 5,330 89,516 226,746 2000 Total Households 5,134 82,783 201,377 Annual Growth 2017 - 2022 0.54% 0.90% 1.29% Annual Growth 2010 - 2017 0.17% 0.69% 1.57% Annual Growth 2000 - 2010 0.38% 0.79% 1.19% Income 2017 Median Household Income $32,815 $28,769 $35,699 2017 Average Household Income $44,163 $45,484 $60,032 2017 Per Capita Income $14,497 $16,709 $23,187 2017 Pop 25+ College Graduates 1,471 32,354 125,002 Age 25+ Percent College Graduates - 2017 11.8% 16.9% 25.5% Source: ESRI Population growth slowed in the past decade in the wake of the national economic recession in 2007. However, the future growth projection will be positive and represented by urban, in -fill and redevelopment objectives going forward. CONCLUSION The neighborhood and submarket area is strategically located between the downtown Miami CBD and the Miami International Airport. The neighborhood is essentially mature and built out with older residential and commercial developments, and interspersed with a variety of newer residential condominium, rental apartment, convenience retail projects and renovation/ redevelopments opportunities. While the Miami River has been an impetus for development since the early 1900's, it is the proximity of the Miami International Airport that will continue to provide growth and redevelopment opportunities over the long term. 14 Melreese Golf Course, Miami, Florida CBRE SURVEY EXHIBIT seEDETAIL B-,% LOCATION W BOUNDARY SURVEY SEE DETAIL A -A BANAL w err Mw r: =7 Z.-. X CRA PELAND PARK (NOT A PART) Mn MLITWU I I _01.M'11^�= =M _1_41 Wz 4=4a =Z_.1.n1_ DET!LA-A Site Analysis LL 0 Melreese Golf Course, Miami, Florida @ 2018 CBPE, Inc. 15 CBRE =7_7 naa I VLv1"_1.= -1 n Z. Melreese Golf Course, Miami, Florida @ 2018 CBPE, Inc. 15 CBRE FLOOD PLAIN MAP National Flood Hazard Layer FIRMetteFEMA Legend MIAMI - DADF 1L.TNTY LININ( 121 lo; T,.? _, FN 1 E S'ri W WL w -EL e. CCI'Y IF NII;�NII AREAS T=i S F31 E `.'8 ce. E SI, Digital Globe, Gao Eye, Ea Hh Ytar Geographlcs, CNESINrbus ISD A, IJSGS, A—GRID, IGN, andthe GIS U—Community 0 250 500 1,000 1,500 2,000 Melreese Golf Course, Miami, Florida 2018 CBRe, Inc. IIl Site Analysis Without Base Flood Ekret'vn (IDFE) SPECIALFLrcOOD 'Nrth 6FE o,h _Rib AREAS Ree^ub.q FborAvs}tone 02% Annual Charse Flood Raza A. Ar --- of 1%annual cM1ercetlootl wfh average depth Ips then one foot or with diairage arms of kss than one square nikiiow zone x Ful, re Cond— l%Annual "— Fbw —A tone s k -with Reduced Rood Risk due to THEIR AR EAS OF I w 1"Be'S NMea. ro.:x FLOODHAZARD zg Arm with Flootl Rakd—l--1 OAr�oi Minimal Flootl Hazy rtl tones EHxtive LOMB OTH ER AREA5 AreeotUrcktermiretl Fbotl HezaN zo.00 GENERAL ---- Ohanrel, 04wrtor3wrm Serer STRUCTURES uuuei l¢ree, Dike,or Fbwhvall ' Crws Sectio its whh l%Annwl Cha- - Su hate E—t— o-'T— Coastal Trail Food Elevation L, -(RFI umnef steely mraJietien eMnndary — Ccaswl Ta.—laaselime OTHER —Ronk baseline FEATURES HytlrogrepM1.e Feature D�iwl Dem Aie ik bk N I] W Diglrel Data Aaaikble MAP PANELS ® Unnapped This map—pli. with FEMA's standardsfor the we of dVI flood maps If it Is notvoid" describetl below. The base me IF shorrn oom plie with FEMAY base na IF accuracy smMamk ThellootlF diMornretion stleriustl tlirevt ly from the authoritatNe NFHLwebse is prw itletl by FEMA. T is map esporwtl on S119/2fYiHa[434�10 PM aM tloes nM retlxt ohanges or amentlmeMs subsaquentto this dateard me. The N FHL and Mf-iw iI., met ion tray clarrge or become supersetletl by new data veer time. This map image isvoid the oneor more of the lblowl rg map e"1 -do not ap— M- map ima�ry, flood core kbek, kgend soak bar, map cr�tbn tlew, commun Iry itle rrt'rfgI— FIRM Fanel number, and FIR M aHectrve date. Map ivae for mappetlantl unmodern'¢etl arms �nrrot be uaW for r.gulawry purposes. CBRE Site Analysis Site Analysis The following chart summarizes the salient characteristics of the subject site. Physical Description Gross Site Area Net Site Area Primary Road Frontage Secondary Road Frontage Additional Road Frontage Additional Road Frontage Excess Land Area Surplus Land Area Shape Topography Average Daily Traffic Counts Zoning District - Existing Zoning District - Proposed Future Land Use Flood Map Panel No. & Date Flood Zone Adjacent Land Uses Comparative Analysis Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Water Sewer Natural Gas Electricity Telephone Mass Transit SITE SUMMARY 131.07 Acres 5,709,575 Sq. Ft. 131.07 Acres 5,709,575 Sq. Ft. NW 37th Avenue/Douglas Road 1,392 Feet Tamiami Canal 2,541 Feet NW 42nd Avenue 2,511 Feet NW 14th Street/State Road 836 1,237 Feet None n/a None n/a Rectangular Golf course with rolling hills & lakes NW 37th Avenue 28,000 NW 42nd Avenue 47,000 NW 14th Street/State Road 836 12,900 & 164,000 CS, Civic Space SAP, Special Area Plan Public Parks & Recreation 120650 0292 L 11 -Sep -09 AE Single family residential, hotel, commercial service businesses, Tamiami Canal, limited access highway & international airport Rating Excellent from NW 37th Avenue, the Doplhin Expressway & NW 42nd Avenue Good Heavy commuter, local & air traffic Assumed adequate Good Assumed adequate Provider Adequacy City of Miami Yes City of Miami Yes Contract service Yes FPL Yes AT&T land lines Yes Miami -Dade Transit (MDT) bus service, Metrorail, Metromover, Tri -rail, Brightline & Greyhound bus Yes Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions FAA restrictions Reciprocal Parking Rights X Source: Various sources compiled by CBRE 17 Melreese Golf Course, Miami, Florida CBRE Site Analysis LOCATION The subject is on the west side of NW 37th Avenue and north of the Dolphin Expressway (State Road 836). LAND AREA The land area size was obtained via legal description and boundary survey provided by the client. The site is considered adequate in terms of size and utility. There is no unusable, excess or surplus land area. SHAPE AND FRONTAGE The site is generally rectangular and has adequate frontage along a primary north/south thoroughfare, as well as limited access highway frontage within the neighborhood. INGRESS/EGRESS Ingress and egress is available to the site via the NW 37th Avenue frontage with striped deceleration turn lanes. TOPOGRAPHY AND DRAINAGE The site is an undulating golf course terrain that is at & above street grade. The topography includes water hazards and a wetland near the 6th hole of the course. However, this not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist. SOILS A soils analysis for the site was requested, but has not been provided for the preparation of this appraisal. According to the General Soil Map published by the City of Miami, the subject site is comprised of Udorthents, limestone substratum with 2 to 5 % slopes. In the absence of a soils report, and based on field observations, it is a specific assumption that the site has adequate soils to support the highest and best use. EASEMENTS AND ENCROACHMENTS There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. Melreese Golf Course, Miami, Florida 18 CBRE 2018 CBRe, Inc. Site Analysis COVENANTS, CONDITIONS AND RESTRICTIONS There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. However, the subject property is a municipal owned & operated golf course that will require a voter referendum, a land use amendment and rezoning to SAP prior to any future development. In addition, there are FAA height restrictions and residential land use restrictions. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision. UTILITIES AND SERVICES The site includes all municipal services, including police, fire and refuse garbage collection. All utilities are available to the site in adequate quality and quantity to service the highest and best use. ENVIRONMENTAL ISSUES The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. • Based on the existing golf course use and potential for arsenic and fertilizer run-off, we strongly recommend the client engage an experienced environmental engineer to perform a Phase I assessment. WETLANDS The subject property contains a small wetlands area between the 6`" & 7'h fairways and closer to the 6'" hole, as presented in the following golf course graphic. IN Melreese Golf Course, Miami, Florida CBRE t G CL L_ Q ai! C Q i L dF V .9 49 9 Q C N NW 21 st Street NW 14th Street - Dolphin Expy. (835) ADJACENT PROPERTIES The adjacent land uses are summarized as follows: Site Analysis Lki Imz cca Vr North: Tamiami Canal, the Sheraton Miami Airport Hotel & Executive Meeting Center and the Miami Intermodal Center (MIC) South: NW 14" Street, the Dolphin Expressway (State Road 836), single family residential subdivisions and a Marriott hotel East: The Grapeland Heights residential subdivision West: NW 42nd Avenue (LeJeune Road) and the Miami International Airport The adjacent properties are supportive of a built -out neighborhood with regional access & employment influences. Melreese Golf Course, Miami, Florida 20 CBRE 2018 CBRe, Inc. Site Analysis CONCLUSION The site is strategically situated to the east of the Miami International Airport with good off-site infrastructure, local & regional access and potential to be developed with a high density, mixed- use, subject to voter referendum, land use amendment & rezoning to SAP, Special Area Plan. 21 Melreese Golf Course, Miami, Florida CBRE Zoning Zoning The following chart summarizes the subject's zoning requirements. Source: Miami 21, As Adopted - January 2018 Melreese Golf Course, Miami, Florida 22 CBRE © 2018 CBRE, Inc. ZONING SUMMARY Zone CS, Civic Space Intended Use The civic category is intended to encompass land use functions predominantly of community -oriented purposes of objectives including those of not-for-profit organizations dedicated to arts and culture, education, recreation, religion, government and the like. Definitions Civic space is a zone with mainly outdoor area dedicated for functioning for community purposes. Transect Zone Description The civic zone consists of public use space and facilities that may contrast in use to their surroundings while reflecting adjacent setbacks and landscape. Permitted Uses; Allowed by Right Marina Allowed by Warrant Food service establishment, open air retail, community facility, recreational facility, religious facility and infrastructure & utilities. Allowed by Exception General commercial, marine related commercial established, childcare and learning center. Category Zoning Requirement Specific to Civic Space Zones Development in a Civic Space Zone should have a minimum 509% of it's perimeter enfronting a thoroughfare. Civic Space sites shall be entered directly from a thoroughfare. 1 or more buildings may be built in each Civic Space. Building Floor area shall not exceed 25% of the lot area of the Civic Space, and shall support the principal use of the Civic Space. Buildings shall conform to regulations of the most restrictive abutting Transect Zone, except as shown by the City of Miami's Parks and Public Spaces Master Plan. Other adjustments to the regulations shall be approved by process of Exception. All community facility and recreational facility uses shall be government owned or operated only. Supplemental Regulations; Boats, Houseboat & House Barge Occupancy of private pleasure crafts & houseboats shall not be allowed except for those specifically grandfathered and regulated by ordinance #10932, adopted October 24, 1991. Docks & Piers Extension docks & piers into Biscayne Bay are limited to 35 feet or up to a maximum 600 feet by Exception. Extension docks & piers into other waterways are limited to 10 feet or 10% of the width of the waterway, whichever is less. Open Air Retail Access to the site must be from a major thoroughfare. Distance separation of any open air retail shall be a minimum of 75 feet measured from any property within T-3, T4 -R, T5 -R or T6 -R zone. Operation limited to weekends and legal holidays for a maximum of 3 consecutive days between the hours of 7:00 AM and 7:00 PM. Provision of paved striping stalls & parking spaces and for on-site restroom facilities. Personal Wireless Service Facility Subject to requirements of Section 6.4. Helicopter Landing Pad Regulated by federal & state law, and may be permitted by Warrant subject to landing & take -off for dropping off and picking up passengers & cargo, but not for fueling, repair or long term parking or storage of helicopters. Unless used for emergency operations (police, fire & hospital) landings & take -offs are restricted to M -F 9:00 Am to 5 PM on parcels abutting T3, T4, T5 -R and T6 -R zones. Ground level sites shall be located away from buildings, trees or significant terrain features to avoid possible air turbulence. Rooftop sites shall be given priority over ground level sites in congested areas. Childcare Minimum of 35 square feet of usable indoor floor space per child on license. Minimum of 45 square feet of usable outdoor play area per child. A minimum outdoor play area shall be provided for one half of license capacity. In no event shall any outdoor play area be less than 450 square feet. The minimum standard of outdoor play area does not apply for children under one vear of one. Off -Street Parking; Commercial 3 spaces per every 1,000 -SF of commercial space 1 bike space for every 20 vehicle spaces Ratio can be reduced within a TOD area or within a Transit Corridor area by up to 30% by process of Waiver; by 50% by process of Waiver & payment into a transit enhancement Trust Fund; or by 100% for any structure with an floor area of 10,000 -SF or less. Parking ratio can be reduced according to shared parking standard. Civic 1 space for every 5 seats of assembly uses 1 space for every 1,000 -SF of exhibition or recreation space 1 space for every staff member for recreational uses 1 space for every 500 -SF of building area for recreational uses 1 bike space for every 20 vehicle spaces Civic Support 1 space for every 1,000 -SF 1 space for every 5 -slips for marinas Educational 2 spaces for 1,000 -SF of educational space 1 bike space for every 20 vehicle spaces 1 space per staff member, 1 space for owner & 1 drop-off space per 10 clients cared for in childcare facilities Source: Miami 21, As Adopted - January 2018 Melreese Golf Course, Miami, Florida 22 CBRE © 2018 CBRE, Inc. Zoning According to interviews with the City of Miami Planning & Zoning Department and recent media report, the subject property is being considered as one of several potential sites for the 25,000 - seat Major League Soccer (MLS) stadium including peripheral development for a youth academy, restaurant, retail, office space and maybe the retention of a 9 -hole golf course. However, any change in use would require a voter referendum, a land use amendment, rezoning to SAP, Special Area Plan, and mitigation to off -set the loss of any parks & recreation land within the city limits. Based on Miami 21, an SAP, Special Area Plan is described in detail, as follows: 3.9 SPECIAL AREA PLANS The purpose of a Special Area Plan is to allow parcels greater than nine (9) Abutting acres in size to be master planned to allow greater integration of public improvements and Infrastructure, and greater flexibility to result in higher or specialized quality building and Streetscape design within the Special Area Plan. The purpose of a Special Area Plan further is to encourage the assembly and master planning of parcels greater than nine (9) Abutting acres in size, in order to provide greater integration of public and private improvements and Infrastructure; to enable Thoroughfare connectivity; to encourage a variety of Building Heights, massing and Streetscape design, and to provide high quality design elements, all to further the intent of this Code expressed in Article 2. 3.9.1 General a. The single or multiple owner(s) of Abutting properties in excess of nine (9) acres may apply for a rezoning to a Special Area Plan. b. A Special Area Plan shall be approved by the process of rezoning with or without Transect changes. c. A Special Area Plan shall assign Thoroughfares, Transect Zones and Civic Space Types, with appropriate transitions to Abutting areas. Guidelines for Thoroughfares and Public Frontages may be adjusted to the circumstances of the Special Area Plan. d. A Special Area Plan shall include a map of the Thoroughfares and Transect Zones, and the standards that deviate from the requirements of Article 5. e. A Special Area Plan shall assign at least five percent (5%) of its aggregated Lot Area to a Civic Space Type. Civic Building sites are to be located within or adjacent to Civic Space Types or at the axial termination of significant Thoroughfares. The developer shall be responsible for con- structing the public improvements within the Special Area Plan, including but not limited to the Civic Space Types and Thoroughfares. f. Development within the Special Area Plan shall be pursuant to a recorded development agreement that will establish the allocation of Thoroughfares and Civic Space Types and Building Area among the Building sites, and the creation and retention of the public benefits. 23 CBRE Melreese Golf Course, Miami, Florida Zoning g. Unless a Building is specifically approved as part of the Special Area Plan, any Building shall be reviewed by the Planning Director, after referral to and recommendation from the CRC for conformance to the Plan, prior to issuance of the Building Permit. h. A Special Area Plan may include: A differentiation of the Thoroughfares as a Primary -Grid (A -Grid) and a Secondary - Grid (B -Grid). Buildings along the A -Grid shall be held to the highest standard of this Code in support of pedestrian activity. Buildings along the B -Grid may be more readily considered for automobile -oriented standards allowing surface parking lots, unlined parking decks, and drive-throughs. The Frontages assigned to the B -Grid shall not exceed thirty percent (30%) of the total length within a Special Area Plan. For Frontages on the B -Grid, parking areas may be allowed in the Second Layer. 2. Retail Frontage requiring that a Building provide a Commercial Use at sidewalk level along the entire length of the Frontage. The Commercial Use Building shall be no less than seventy percent (70%) glazed in clear glass and provided with an Awning overlapping the sidewalk as generally illustrated in Article 4, Table 6. The first floor should be confined to Retail Use through the depth of the Second Layer. 3. Gallery or Arcade Frontage, requiring that a Building provide a permanent cover over the sidewalk, either cantilevered or supported by columns. The Gallery or Arcade Frontage may be combined with a Retail Frontage as shown in Article 4, Table 6. Gallery or Arcade Front- age within the First Layer may apply towards Open Space requirements. 4. Build -to -lines that differ from Transect Zone Setback requirement. 5. A Terminated Vista location, requiring that the Building be provided with architectural articulation of a Type and character that responds to the location. 6. A Pedestrian Passage, requiring a minimum ten (10) foot wide pedestrian access be reserved between Buildings. 7. A preservation plan acceptable to the Historic and Environmental Preservation Board for any historic resources in the area of the Special Area Plan. 8. Area Design Guidelines. 9. A parking management program that enables shared parking among public and private Uses. 10. Flexible allocation of development capacity and Height, excluding Density on individual sites within the Special Area Plan shall be allowed so long as the capacity or Height distribution does not result in development that is out of Scale or character with the surrounding area, and provides for appropriate transitions. 24 CBRE Melreese Golf Course, Miami, Florida Zoning ANALYSIS AND CONCLUSION Additional information may be obtained from the City of Miami elected officials and the City of Miami Planning & Zoning Department. For purposes of this appraisal, CBRE has assumed the information obtained is correct. Melreese Golf Course, Miami, Florida © 2018 CBRE, 1- 25 CBRE Tax and Assessment Data Tax and Assessment Data AD VALOREM TAX INFORMATION Assessor's Market Value Parcel Description 2016 2017 Pro Forma 01-3132-000-0080 $2,516,482 $2,523,656 $160,000,000 01-3132-000-0090 5,741,491 5,840,494 Subtotal $8,257,973 $8,364,150 $160,000,000 Assessed Value @ 100% 100% 65% $8,257,973 $8,364,150 $104,000,000 General Tax Rate (per $100 A.V.) 2.182560 2.1 18420 2.1 18420 Total Taxes Exempt Exempt $2,203,157 Less: 4% Early Pay Discount Exempt Exempt $2,115,031 Source: Assessor's Office The subject property is exempt from real estate property taxes based on municipal government ownership. However, if the subject property were sold -off to a third -party developer the exemption would be rescinded. In addition, under a ground lease scenario, the land component would remain exempt while any tenant leasehold improvements would be taxable, unless a non- profit or municipal government entity developed and operated the leasehold improvements. If the exemption is rescinded through sell-off, the local Assessor's methodology for valuation would be sales comparison and -or the recorded sale price. The next re -assessment of the subject is scheduled for January 1, 2019. In addition, the January 1, 2018 assessment has yet to be posted. Melreese Golf Course, Miami, Florida 26 CBRE 2018 CBRe, Inc. Highest and Best Use Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT Legal Permissibility The legally permissible uses were discussed in the Site Analysis and Zoning Sections. The existing CS, Civic Space district zoning has limitations. However, the City of Miami is considering a voter referendum that would allow a land use amendment and rezoning to SAP, Special Area Plan, which allows for higher density, mixed-use development options, subject to FAA height restrictions. Physical Possibility The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, etc., to be a high density, mixed-use site. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites have been approved and -or developed to densities as high as 0.28 to 0.68 FAR (floor -area -ratio), as per the comparable land sales analyzed in this appraisal. In addition, The Landing at MIA is a mixed-use business park located on the west side of the airport and east of the Palmetto Expressway (State Road 826) comprises 50.3 -acres and is improved with 1,050,761 -SF of Class A & B office building, single story office and warehouse buildings, which equates to an 0.48 -FAR. Considering these buildings are contemporary and built in the 1980s & 1990s, this would provide additional evidence for the physical possibility of development and potential density for the subject property based on SAP, Special Area Plan zoning district. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. Development of new office buildings, strip retail, limited & full-service hotels and road improvements in & around the Miami International Airport has been booming. Melreese Golf Course, Miami, Florida 27 CBRE Highest and Best Use While we previously noted, the existing municipal owned & operated golf course is a breakeven endeavor, as well as, an underutilization of the subject property given the strategic location characteristics and potential for higher density development. Maximum Productivity - Conclusion The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land. Based on the information presented above and upon information contained in the neighborhood section of this report and the sales comparison analysis, we conclude that the highest and best use of the subject would be a high density, mixed-use business park with corporate office, retail & hotel components, surrounding generous open space including active parks & recreation land uses, such as a downsized golf course and -or practice driving range, subject to voter referendum, land use amendment & rezoning to SAP. AS IMPROVED Legally Permissible The site has been improved with a municipal owned & operated golf course that is a legal, conforming use. Physically Possible The layout and positioning of the improvements are considered functional for municipal golf course use. However, the strategic location and potential for higher density, mixed-use business park development clearly shows the existing municipal golf course use is an underutilization of the site. Financially Feasible & Maximally Productive - Conclusion The financial feasibility of any property is based on the amount of rent which can be generated, less operating expenses required to generate that income; if a residual amount exists, then the land is being put to a productive use. Based upon the income approach fair market rent conclusion, the subject has the potential to produce substantial positive net cash flow, as well as, expanding the municipal tax base and the creation of an employment center as a long-term ground lease investment to a third -party master developer and -or expansion of the Miami International Airport & aviation support services. Melreese Golf Course, Miami, Florida 28 CBRE 2018 CBRe, Inc. Land Value Land Value The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. \\\ NprtM1 g North i mea M menE -z,L a eraehe s B h as C. - d a he Par BNa 15 dam Golden 131st si lakes <rE i9 0. m Glades 12]00 NW 42nd Ave Opa-Lpcka, FL 33054 Mil h II G ahem 5 6* L k Eelates (� � 1 I 0 NW..".WeNselastls e .Pansu o e1 411 to san s—, -ted.. xar000, A elle Eerhart Estate .\ B(spayne Indian Creek Palm Sprngs'. W `.Park Vllage Estates (915 l\�leas poPtl / r+eraen$ __ 5 0 EI Pp I Nvemendv HlsleaM1 ram (631} Estates E3.n °- � F o I A 2- .. ` ay4 North Bay Vlllege y: MN 741h SY y4 aae�i w aid x.,y ' M I - D A D E _ ibeny Legon Pu�Lland Biscayne Bey Aq.H Preserve Sale 5 GI woo Heig aa99 Nw enn Aye Hial ah "77-41—t Bayshore Mam%FL 331]8 .-FL 33166 Brow amll - ooral Now 8lrcayne bay Doral blvd t Virdinie Sale t ne Vista _ Geraens 3550 NW 21,1 11 3a1e9 Miami FL 33192 11]00 NW 20th Street g �� 91H m Mlaml 833182 IZ F bd rblA Sweet L• N!N 25tM1 9 3 , R+ y blvrda ® 2 St a:l� 61md (907 ��P: ( an elan Capsaway Miami 1J q 1 h Beach oll Sublert Properly 38, 1802 NW 37th Aye Ili i p g Miami, FL33125 III yI1 I � - I Po rda nbleau° - tl�f SweHwar — M1 v e BriekeL ](ey . q��=-`r� •v y le ed a 'WestSe Tamil, PuMe 41eM a _ 7 Estatr West heater co IGable ppl Copyright dj antl (P7198&20121.1 crosvtt Corpvmt tlN R lame j All ht- P ° � 973 Vugrua I(ey SUMMARY OF COMPARABLE LAND SALES Transaction Actual Sale Adjusted Sale Size Size Price No. Property Location Type Date Proposed Use Price Price t (Acres) (S F) Per SF 1 3550 NW 21 st Street Sale Aug -15 TBD $35,500,000 $35,500,000 20.89 909,968 $39.01 Miami, FL 33142 2 4400 NW 87th Avenue Sale Apr -16 Mixed-use retail/office $96,000,100 $96,000,100 130.10 5,667,156 $16.94 Doral, FL 33166 & residential 3 12691 & 12705 NW 42nd Avenue Sale Jul -17 TBD $80,000,000 $80,000,000 72.07 3,139,512 $25.48 12700 NW 42nd Avenue Opa-Locka, FL 33054 4 11700 NW 20th Street Sale Nov -17 Retail Shopping Center $44,845,264 $45,445,264 35.85 1,561,626 $29.10 Miami, FL 33182 5 7777 NW 41st Street Sale Dec -17 Mixed-use business $40,268,000 $40,268,000 23.70 1,032,436 $39.00 Doral, FL 33166 park 6 10300 NW 121st Way Sale Jan -18 Mixed-use business $35,700,000 $35,700,000 35.15 1,531,000 $23.32 Medley, FL 33178 park Subject 1802 Northwest 37th Avenue, --- --- Mixed-use multi- --- --- 131.07 5,709,575 --- Miami, Florida family, office, retail & logistics business park 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE Melreese Golf Course, Miami, Florida 29 CBRE © 2018 CBRE, Inc. Land Value The sales utilized represent the best data available for comparison with the subject and were selected from the greater Miami area and regional business districts within the Miami -Dade County market area. These sales were chosen based upon physical size, location, zoning/density and highest & best uses in direct comparison to the subject property, assuming the voter referendum, land use amendment and rezoning to SAP, Special Area Plan can be readily achievable by the City of Miami. DISCUSSION/ANALYSIS OF LAND SALES Land Sale One This riverfront land sale represents the sale of 20.89 waterfront acres located at the northeast quadrant of NW 37th Avenue and the Tamiami Canal in Miami, FL. At the time of sale, it was a luxury yacht manufacturing facility with a mixed-use redevelopment land use. According to public records and seller verification, the existing buildings total 350,000 -SF, but only 215,000 -SF has covered or enclosed roof area, of which 26,000 -SF is office space occupied previously by Bertram Yacht & Allied Marine, subsidiaries of Ferretti Yacht Group of Italy because of a prior sale/leaseback transaction in June 2011 for $17,000,000. However, Bertram vacated most of the manufacturing space in 2012, while the office space was retained for about 5 years thereafter. It is important to note, in late 2013, this site was rezoned from industrial to the newly created Palmer Lake Metropolitan Urban Center District (PLMUC), which allows all types of industrial uses, mixed-use development, retail, hotel, motels, and even residential development in certain sub -districts. According to the Palmer Lake Charrette Area Plan of Miami -Dade County, the redevelopment of the Bertram property has excellent potential to transform into a mixed-use, pedestrian -oriented district that compliments the nearby MIC and joint development area as well as the rest of Palmer Lake. Based on the property location and age of the improvements, this current transaction is essentially a redevelopment play acquired by an Argentinian based architect & developer who resides on Fisher Island. The buyer was attracted to the site because of its proximity to Miami International Airport, the river and the Miami Intermodal Center, where multiple public transit systems converge. Several redevelopment concepts include offices, hotels, senior living and retail/entertainment uses focused on the riverfront, while maintaining interim use income from an upgraded marina. We adjusted Land Sale 1 upwards for positive market conditions between the sale transaction date and our effective date of value. We also adjusted Land Sale 1 downwards for smaller size/value relationship and downwards for superior frontage along the Tamiami Canal in direct comparison to the subject property. Land Sale Two This comparable land sale is the Doral White Course located at the northeast quadrant of NW 41st Street and NW 87th Avenue in the City of Doral, Florida. The buyers represent two local, Melreese Golf Course, Miami, Florida 30 CBRE 2018 CBRe, Inc. Land Value and very seasoned developers including Stuart Miller with Lennar Corp.; and Armando Codina & Jim Carr with CC Homes. The two developers were the winning bidders and marks one of the most expensive land deals in Miami -Dade history. The seller is GWC Miami Property LLC, an affiliate of GIC, the sovereign fund of the government of Singapore. GIC acquired the property through bankruptcy actions. The transaction was recorded in a three-way transaction with White Course Lennar LLC; CC Homes at Doral; and, CC-WCD TIC purchasing three parcels for $27.5 million; $27.6 million; and, $40.9 million, respectively. Lennar and CC Homes have a pending development application with the City of Doral for Downtown Doral South. The site plan calls for 2,209 residential units, 150,000 square feet of office space, 30,000 square feet of retail, seven acres for a civic and school uses, and 17.6 -acres for an amphitheater/public recreation area. The development will also feature linear greenways and a promenade that connects to the new public space/amphitheater. As planned, 7 acres will be set aside for civic use to be determined by the city, as well as a school for grades 6-12 that will complement the K-5 charter school at Downtown Doral. Codina and Lennar were the winning bidders and beat out developer & presidential hopeful Donald Trump, Shoma Group's Masoud Shojaee and other well-known developers in the process. Bids were due on July 15, 2014 and contracts were executed in April 2015 with 12 months of escrow & due diligence. The property's zoning parameters were set forth in a master development agreement between the property's predecessor owner, MSR Resort Hotel, in 2012. The agreement has been in place for 20 years, and development must begin within 10 years. The agreement was part of a court settlement between the former owner and the city. The prior owner/hotel company filed Chapter 11 during the recession. The White Course was then deeded to GWC Miami Property, controlled by the government of Singapore, as a creditor in the bankruptcy case. The site is a rolling golf course topography with substantial water hazards. We adjusted Land Sale 2 upwards for positive market conditions between the sale transaction date and our effective date of value. We also adjusted Land Sale 2 upwards for inferior frontage, inferior topography/site conditions given the substantial volume of golf course lakes & water hazards that required to be backfilled and upwards for inferior location in direct comparison to the subject property. Land Sale Three This comparable land sale comprises a clustering of three (3), non-contiguous parcels including the 33.78 -acre Opa-Locka Hialeah Flea Market site, the 28.31 -acre Miami Auto Auction site, and a 9.98 -acre ancillary support site. According to the broker, the seller previously acquired & assembled the three parcels between 1984 & 1990 for $11.3 million and was the operator of the flea market, while collecting rent from the Miami Auto Auction. The buyer is a publicly traded REIT that negotiated a post -closing, 12 -year lease with three, 5 -year renewal options with RER Outdoor Marketplace LLC whose principals include Chris Kallivokas, Rodney Barreto Brian May and the selling broker, Michael Fay. The new tenant operator group of the flea market has plans Melreese Golf Course, Miami, Florida 31 CBRE 2018 CBRe, Inc. Land Value to renovate the parking lot areas, restroom and canopy improvements. The buyer was interested in this property based on the existing below market Miami Auto Auction lease rate and the new flea market operator lease produces a 6.10% cap rate, while providing a defensive downside protection strategy based on the in -fill location, land value with a higher density, mixed-use zoning designation and marketability for leasing to tractor trailer parking or other open yard & parking uses. We adjusted Land Sale 3 downwards for superior property rights conveyed, i.e. leased fee interest with ground leased tenant base, and upwards for positive market conditions between the sale transaction date and our effective date of value. We also adjusted Land Sale 3 downwards for smaller size/value relationship and upwards for inferior location in direct comparison to the subject property. Land Sale Four This comparable land sale is a 35.85 -acre site located at the northwest quadrant of the Florida Turnpike Extension and State Road 836 in unincorporated Miami -Dade County, Florida. It is part of a master -planned development known as Beacon Lakes that is currently being developed by Prologis as a Development of Regional Impact (DRI) and with the creation of the Beacon Lakes CDD. The Beacon Lakes master plan comprises 478 -acres +/- including 4.6 million square feet of Class A distribution warehouse & business park space with the portion fronting the Florida Turnpike dedicated to commercial retail uses. The buyer/developer secured the contract in March 2017 at $45,000,000 subject to site plan approvals and the seller/master developer delivering a clear & level buildable site with all supporting infrastructure as per the Beacon Lakes CDD. However, there were numerous amendments to the contract including a slight price change to $44,845,265 due to site measurements plus $600,000 for two (2) contract closing date extensions, road impact credits, a seller obligation to remove construction & demolition debris and deliver a 7.0' site elevation. The seller's off-site infrastructure obligations included proposed NW 1 17th Place improvements, a 1.02 -acre retention lake, a pump station. The buyer essentially received a 35.85 -acre buildable site within three (3) parcels with a total of 430,000 -SF of commercial retail entitlements allocated from the Beacon Lakes DRI. The buyer/developer site plan includes a 9.44 -acre ground lease to Home Depot, a 3.1 1 -acre ground lease to City Furniture, two outparcel sites, two pad sites approved for 13,500 rentable square feet and three buildings that will total 159,341 square feet with ground breaking to occur immediately after closing. We adjusted Land Sale 4 upwards for positive market conditions between the sale transaction date and our effective date of value. We also adjusted Land Sale 4 downwards for smaller size/value relationship, upwards for inferior shape/configuration and upwards for inferior location in direct comparison to the subject property. Melreese Golf Course, Miami, Florida 32 CBRE 2018 CBRe, Inc. Land Value Land Sale Five This comparable land sale is a short-term sale/leaseback of a vintage 1964 bottling plant acquired by two, local & prominent residential & retail developers. The sale transaction was facilitated with a $37.5 million loan in favor of Palmetto Finance & Investment, LLC. The site is zoned for industrial, but is in a transitional sub -submarket of Doral that is shifting more towards high density multi -family, hotel, corporate office & retail uses. The buyer/developers have engaged Cushman & Wakefield to market the site as a build -to -suit opportunity for 87,000 to 700,000 square foot end users. We adjusted Land Sale 5 downwards for superior property rights conveyed, i.e. leased fee interest with a short-term sale/leaseback. We also adjusted Land Sale 5 downwards for smaller size/value relationship and upwards for inferior location in direct comparison to the subject property. Land Sale Six This comparable land sale is a sale/leaseback and monetization of a lumber storage & distribution yard for a national, NASDAQ listed company. The buyer has preliminary plans to build 650,000 -SF of bulk distribution warehouse. The seller is repositioning into two other facilities recently acquired from Robbins Manufacturing in 2017 and will add another purpose built, state-of-the-art facility going forward to improve logistics & operational efficiencies necessary to service the entire Florida and southeast region including Puerto Rico and the Caribbean. We adjusted Land Sale 6 downwards for superior property rights conveyed, i.e. leased fee interest with a short-term sale/leaseback. We also adjusted Land Sale 6 downwards for smaller size/value relationship and upwards for inferior location in direct comparison to the subject property. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. Melreese Golf Course, Miami, Florida 33 CBRE 2018 CBRe, Inc. LAND SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 5 6 Transaction Type Sale Sale Sale Sale Sale Sale Transaction Date Aug -15 Apr -16 Jul -17 Nov -17 Dec -17 Jan -18 Proposed Use TBD Mixed-use TBD Retail Mixed-use Mixed-use Allowable Bldg. Area (SF) --- retail/office & --- Shopping business park business park Indicated FAR --- residential --- Center 0.68 0.30 Actual Sale Price $35,500,000 $96,000,100 $80,000,000 $44,845,264 $40,268,000 $35,700,000 Adjusted Sale Price $35,500,000 $96,000,100 $80,000,000 $45,445,264 $40,268,000 $35,700,000 Size (Acres) 20.89 130.10 72.07 35.85 23.70 35.15 Size (SF) 909,968 5,667,156 3,139,512 1,561,626 1,032,436 1,531,000 Allowable Bldg. Area (SF) --- --- --- 416,426 SF 504,605 SF 650,000 SF Indicated FAR --- --- --- 0.28 0.68 0.30 Price Per SF $39.01 $16.94 $25.48 $29.10 $39.00 $23.32 Price Per Bldg. Area --- --- --- $109.13 $79.80 $54.92 Price ($ PSF) $39.01 $16.94 $25.48 $29.10 $39.00 $23.32 Property Rights Conveyed 0% 0% -5% 0% -5% -5% Financing Terms 1 0% 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% 0% Market Conditions (Time) 30% 20% 10% 5% 0% 0% Subtotal $50.71 $20.33 $26.63 $30.56 $37.05 $22.15 Size -30% 0% -10% -25% -30% -25% Shape 0% 0% 0% 10% 0% 0% Corner 0% 0% 0% 0% 0% 0% Frontage -10% 10% 0% 0% 0% 0% Topography 0% 10% 0% 0% 0% 0% Location 0% 10% 10% 10% 10% 30% Zoning/Density 0% 0% 0% 0% 0% 0% Utilities 0% 0% 0% 0% 0% 0% Highest & Best Use 0% 0% 0% 0% 0% 0% Total Other Adjustments -40% 30% 0% -5% -20% 5% Value Indication PSF of Site $30.43 $26.43 $26.63 $29.03 $29.64 $23.26 Value Indication PSF of FAR --- --- --- $108.85 $60.64 $54.79 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE CONCLUSION Land Value Subject Mixed-use multi- family, office, retail & logistics business park 131.07 5,709,575 2,740,596 SF 0.48 The comparables sales presented produced an overall unadjusted value indicator range from $16.94 to $39.01 per square foot of site area; and, $54.92 to $109.13 per square foot of proposed or approved FAR. After considering and -or applying adjustments for property rights conveyed, financing terms & conditions, conditions of sale, market conditions (time), size, shape, corner/frontage, topography, location, and zoning/density, the range of value indicators was narrowed substantially to $23.26 to $30.43 per square foot of site area; and, $54.79 to $60.64 per square foot of proposed or approved FAR. Based on the preceding analysis, Comparables 2, 3, 4, 5 & 6 were the most representative of the subject site, and warranted greatest consideration because of recent sale transaction dates, location and zoning/density. In conclusion, a price per square foot of site area near the midpoint of the unadjusted range and within the narrow -adjusted range of value indicators was most appropriate for valuing the subject As Is. The following table presents the land valuation conclusion: 34 Melreese Golf Course, Miami, Florida CBRE Land Value Melreese Golf Course, Miami, Florida 35 CBRE 2018 CBRe, Inc. CONCLUDED LAND VALUE $ PSF of Site Site SF Total $26.00 x 5,709,575 = $148,448,943 $29.00 x 5,709,575 = $165,577,667 $ PSF of FAR Potential 0.48 FAR Total $55.00 x 2,740,596 = $150,732,773 $60.00 x 2,740,596 = $164,435,752 Indicated Value: $160,000,000 (Rounded $ PSF) $28.02 Compiled by CBRE Melreese Golf Course, Miami, Florida 35 CBRE 2018 CBRe, Inc. Income Approach Income Approach - Fair Market Rent Analysis The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each lease transaction is included in the addenda. al PrinsMareate �Leconm _ 111 -Pompano D.& a _ ouln al G �Colller Park _, e Ortb �eMergate pardon Isies EC�{yZ and dale E --II Eyeless HlmberlY Alva.Santa Barbara Snores Tamarac awl Hekbors Pompano elmIsles MCNeb R Sab II Pa — MONab Rd °Hlgn Rdge AIA Rent2f. 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Ml�dtll� SYigres � A( 1 3 R f l =� - HelgMso vera 13tH t o a a a a aPlen[ _ Ren[5 Acres n 2500 W Bmward Blvd Vkkam z leer PIeMa[1on° Wash Fort Lauderdale, FL 33312 0110 ° 838 ark &I'tl Gardens Peek E� opt Park P. _ T 'Plantation L feMag oe rt °dro rO yeYtlalf Isles -.� — Melaleuca ll Isle PlarAatlgn Park 84 '� c Meir se Park SII rc Pne rlantl °Rltlge sl 1 H lentl ..-s - IJS Coat Ouard SYn Fon Lauderdale Vllege age I - �A H Everglades -Vf Fore e � I ryI;y Playland Magee tl crda etHn yw e } V s� V ' —1, RaePerk Ps O ` ( 4 NO IyW00tl P. rk Dae L Jr p St/V 45tH ra n est ganchee oCTyper - PI land --d G aerie °Pon Leutleme 818 s Mmrnaaftcnmarannn annro��a�ngue�nu dgk�a reserved- Deniao` � 1� Nonnspnngs�', North �IlatlHl 6e 'Maple Senm Isles eke ee endo s Millen E THompson CPuncM1e 11L„„„ Perk NE 159[ \ Rentb, lam f eGOMen `Gadsy 1st Si J 1 566067th5t nt 1 NWQ FNW 135th Street& ema'en `I Lit Hialeah, h, FLL33014 p g SRoad 0 aLo[ka FL r °MRcn I �\ 1 b* Lake Estates AIA \ Pens o P. P N rtm �eYslone Islands a E rM1ert Per Pg p M I San Sguc Era[es narbgur ° I ea E 8 2691' - Palm Springs 12691 NW 92nd Ave Esistes — H1Se�e Park ( y ° Indian Creek allege° -. k�dian Cxek ulvnd Mob Opa.Locka, FL 33054 (L --� � end gtl Perk ew rk` 5 o s f el 1 svora+aaAT e HisleaN Estates E 5[ F O I R EI Po Ll�d —. NortM1 Bay ! � N✓V ]4th 5[ Village �c 34 Bud I(ey A M I- Sun -Ten etleei w A E Ibeny ills a GI o Helg HaYenore Hay Aggelic Preserve IIr t Doral Miem lal an aro roll _ s prings° J HReayne Bay a Doral Blvd uirginia Gardens Eubfect Property ria vire d Rent 4 1400 NW 117th Place, Miami, 33182 Vantler1H Park 1802 NW 37th Mami, FL 33125 2 e 8 5 5.wet Llora. x 14ve Pivnu u1vWv ® 2 St Di Lido ulvW a m 9e E M me conal I Ven 9dseway— Tou IIS CaWn0h[&l artU.ER11981t2612M ftCgmdia[w [Lb Hs s,ppllers I PoUIHainblea SweelwNer a All rph[s reservetla etla °WestSe i ml MN 14 5[ 1 n '— Mia If 41 - — � Atlantic HrukeL Ley Pukex TelaM ' Melreese Golf Course, Miami, Florida 36 CBRE © 2018 C3PE, Inc. Income Approach In this section, we have estimated market rent for the subject site via the income approach by performing a traditional market rent survey of comparable land and ground lease transactions, as presented in the following table. Subj. Melreese Golf Course Mixed-use business TBD 0% --- 131.07 Acres --- --- --- Existing, municipal golf --- --- 1802 Northwest 37th park course Ave Mimi, Florid. Compiled by CBRE DISCUSSION OF RENT COMPARABLES The comparable rentals produced an overall range from $0.29 to $3.48 per square foot on an absolute net basis. We note that Rentals 1 & 2 set the lower end of the range at $0.29 to $0.45 per square foot of site area due to municipal government incentives necessary to promote economic development. Rental 3 is a similar in -fill location and size in direct comparison to the subject property; and Rentals 4, 5 & 6 are superior "ready -to -build" retail pad ground leases to credit -worthy tenants. Based on the foregoing comparable rent survey presentation & analysis of the proper fair market rent for the subject property should fall well above Rentals 1 & 2; below Rentals 4, 5 & 6; and, within reason of Rental 3, at say $1.50-PSF on an absolute net basis with the following market supported lease terms & conditions for the subject property: Melreese Golf Course, Miami, Florida 37 CBRE 20i8 CBRe, Inc. SUMMARY OF COMPARABLE GROUND LEASES Comp. Property Name YOC / Tenant Lease Lease Lease Base Rent of Tenant Expense No. and Location Type & Use Reno'd Occ. Name Area (Ac) Date Term Lease Area Improvements Basis Escalations 1 Amazon N Op. -Lock. Logistics warehouse U/C 100% Amann 91.00 Acres Jun -17 WND $0.45 PSF $5.0 million (County Absolute net WND Executive Airport, NWQ &employment bond) in infrastructure of NW 135th Street & center & 855,000 -SF logistics Douglas Road, Op.- warehouse Lock., FL 2 Wet 'n'Wild, 1200 W. Commercial Proposed RFP Premier. Parks, LLC 64.32 Acres TBD 50 -Years $0.29 PSF V.c.nt land & Lockhart Absolute net --- Commercial Blvd., Fort recreation w.ter or4%of gross St.dium renovation Lauderdale Executive revenue obligation Airport, Fort Lauderdale, FL 3 Op. -Lock. Hi.le.h Fl.. Outdoor flea 1984t. 100% Op. -Lock. Hi.le.h 72.07 Acres Ju1-17 12 -Years $1.55 PSF Surface parking lot, Absolute net --- Market, 12691 NW market & outdoor 2006 & He. M.rket & & 1984 + 3, 5 -year small buildings & fence 42nd Ave., Op. -Lock., .uto.uction Proposed Mimi At. options FL 33054 <+�� 4 Home Depot, 1400 NW Big box ret.il Proposed 100% Home Depot 9.45 Acres May -19 20 -Years $3.48 PSF Ready -to -build p.d Absolute net Flat 117th Place, Miami, FL + 7, 5 -year 143,538 -SF building 33182 o p}ions 5 WalM.rt, 2500 W. Big box retail 2016 100% W.IM.rt 15.23 Acres Oct -15 20 -Years $1.96 PSF Ready -to -build p.d for Absolute net FIN Brow.rd Blvd., +options 186,933 -SF building + 5% every PI..t.tion, FL 33312p}i o on term 6 Home Depot, 5660 NW Big box retail 1990 100% Home Depot 9.00 Acres Feb -16 5 -Years $1.89 PSF Existing leasehold Absolute FIN 167th Street, Miami R. -I + 2, 5 -year building (100,000 -SF) + 10% every Gardens, FL 33014 option improvements option term --mg Subj. Melreese Golf Course Mixed-use business TBD 0% --- 131.07 Acres --- --- --- Existing, municipal golf --- --- 1802 Northwest 37th park course Ave Mimi, Florid. Compiled by CBRE DISCUSSION OF RENT COMPARABLES The comparable rentals produced an overall range from $0.29 to $3.48 per square foot on an absolute net basis. We note that Rentals 1 & 2 set the lower end of the range at $0.29 to $0.45 per square foot of site area due to municipal government incentives necessary to promote economic development. Rental 3 is a similar in -fill location and size in direct comparison to the subject property; and Rentals 4, 5 & 6 are superior "ready -to -build" retail pad ground leases to credit -worthy tenants. Based on the foregoing comparable rent survey presentation & analysis of the proper fair market rent for the subject property should fall well above Rentals 1 & 2; below Rentals 4, 5 & 6; and, within reason of Rental 3, at say $1.50-PSF on an absolute net basis with the following market supported lease terms & conditions for the subject property: Melreese Golf Course, Miami, Florida 37 CBRE 20i8 CBRe, Inc. Income Approach MARKET RENT COMPARISON CONCLUSION Mixed -Use Business Category Park - SAP NRA (SF) 5,709,575 Percent of Total SF 100.0% Market Rent ($/SF/Yr.) $1.50 Market Rent ($/Annum) $8,565,000 Concessions Phased Buildout Time Reimbursements Absolute Net Annual Escalation Flat for base term Tenant Improvements (New Tenants) As Is Tenant Improvements (Renewals) As Is Average Lease Term 50 Years Leasing Commissions (New Tenants) 0.5% to 1.0% Compiled by CBRE RENT MULTIPLIER METHOD As a cross check to the preceding market rent comparison survey, we have also employed a rent multiplier method to determine market rent. The rent multiplier method is based on the difference or spread between the agreed upon rental rate and the overall capitalization rate used to determine prospective value of what an investor would pay for a leased fee investment to an end buyer and represents the profit expectation that a developer would require in order to secure a prime tract of land, negotiate a long term ground lease with a good quality tenant and perform earthwork & site improvements, if necessary, in order to secure the long term ground lease. An appropriate profit spread for a ground lease transaction of this type would be between 200 and 300 basis points between rent multiplier and overall capitalization rate. In order to determine a reasonable overall capitalization rate, we have presented the national investor survey for triple net lease and land lease investors: Melreese Golf Course, Miami, Florida 38 CBRE 2018 CBRe, Inc. Income Approach OVERALL CAPITALIZATION RATES Investment Type OAR Range Average RealtyRates.com - Land Leases 0.050 x $160,000,000 = $8,000,000 0.055 x $160,000,000 = Golf 2.97% - 16.30% 8.90% Industrial 2.59% - 10.64% 6.87% Lodging 2.99% - 15.93% 7.47% Office 2.77% - 10.64% 7.01% Restaurant 3.15% - 15.39% 8.35% Retail 2.51% - 12.01% 6.98% Self -Storage 2.81% - 10.64% 7.99% Special Purpose 3.25% - 16.10% 8.75% All Properties 2.47% - 16.30% 7.62% PwC Real Estate Investor Survey National Net Lease Market 5.00% - 8.50% 6.60% Indicated OAR: 2.50%-5.00% Compiled by: CBRE Based on the foregoing analysis and presentation, the subject property has the potential to be leased to a third party for surface parking lot use. The corresponding capitalization range for a long term prospective land lease investment in the built-up, and strategic Miami International Airport submarket would be 2.50% to 3.50%. Hence, a 2.50% to 3.50% overall capitalization rate expectation plus 250 basis point spread for profit expectation would produce a rent multiplier range of 0.050 to 0.055. The following tables present the rent multiplier method conclusions for subject proposed access easement parcels: RENT MULTIPLIER METHOD Rent Multiplier Land Value As Is Potential Rent 0.050 x $160,000,000 = $8,000,000 0.055 x $160,000,000 = $8,800,000 Indicated Value As If Vacant: $8,400,000 (Rounded $ PSF) $1.47 Compiled by CBRE RECONCILIATION OF MARKET RENT COMPARABLES & RENT MULTIPLIER METHOD INCOME APPROACH VALUES As Is on May 8, 2018 Rent Multiplier Method $8,400,000 Market Rent Comparison $8,565,000 Reconciled Fair Market Rent $8,500,000 Compiled by CBRE Melreese Golf Course, Miami, Florida 2018 CBRe, Inc. 39 CBRE Assumptions and Limiting Conditions Assumptions and Limiting Conditions CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super -efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. Melreese Golf Course, Miami, Florida 40 CBRE Assumptions and Limiting Conditions (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 1 1 . Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 41 CBRE Melreese Golf Course, Miami, Florida Assumptions and Limiting Conditions 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 42 Melreese Golf Course, Miami, Florida CBRE Addenda ADDENDA © 2018 CBRE, 1-. Addenda Addendum A LAND SALE DATA SHEETS © 2018 CBRE, Inc. Property Name Miami International Centre Address 3550 NW 21 st Street Site Development Status Miami, FL 33142 Shape United States Government Tax Agency Miami -Dade Govt./Tax ID 30-3128-022-0180 (multiple) Site/Government Regulations N/A Acres Square feet Land Area Net 20.890 909,968 Land Area Gross 20.890 909,968 Site Development Status N/A Shape Rectangular Topography Generally Level Utilities All Available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street N/A NW 21 st Street Frontage Distance/Street N/A NW 37th Avenue Frontage Distance/Street N/A NW 22nd Street Frontage Distance/Street N/A Tamiami Canal General Plan N/A Specific Plan N/A Zoning IU -1 & IU -2, Industrial (see comments) Entitlement Status None Interterra Investments Group, LLC Recorded Buyer &Intermarine Investments, LLC True Buyer Jorge Bernstein Recorded Seller MMM Northwest 37, LLC True Seller David Sherwood Interest Transferred N/A Current Use Boat manufactruing Proposed Use TBD Listing Broker N/A Selling Broker N/A Doc # 29731/4299 & 29731/4304 Marketing Time N/A Buyer Type International Buyer Seller Type End User Primary Verification Thomas Byrne, EWM Commercial Type Sale Date 8/1/2015 Sale Price $35,500,000 Financing All Cash Cash Equivalent $35,500,000 Capital Adjustment $0 Adjusted Price $35,500,000 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Tvpe Buyer Seller 08/2015 Sale Interterra Investments MMM Northwest 37, LLC Group, LLC &Intermarine Investments, LLC 06/2011 Sale MMM Northwest 37, LLC Bertram Yacht, Inc.& Italvest Holdings, Inc. © 2018 CBRE, Inc. Price Price/ac and A $35,500,000 $1,699,378 / $39.01 $17,000,000 $813,787 / $18.68 BRE Units of Comparison $39.01 / sf N/A / Unit $1,699,377.69 / ac N/A /Allowable Bldg. Units N/A / Building Area Financial No information recorded This riverfront land sale represents the sale of 20.89 waterfront acres located at the northeast quadrant NW 21 St St of NW 37th Avenue and the Tamiami Canal in Miami, FL. At the time of sale it was a luxury yacht P manufacturing facility with a mixed-use redevelopment land use. According to public records and seller verification, the existing buildings total 350,000 -SF, but only 215,000 -SF has covered or enclosed roof area, of which 26,000 -SF is office space occupied previously by Betram Yacht & Allied Marine, subsidiaries of Ferretti Yacht Group of Italy as a result of a prior sale/leaseback transaction in June 2011 @E20D 0 ' Map data 02018 Google for $17,000,000. However, Betram vacated the majority of the manufactuing space in 2012, while the office space was retained for about 5 years thereafter. It is important to note, in late 2013, this site was rezoned from industrial to the newly created Palmer Lake Metropolitan Urban Center District (PLMUC), which allows all types of industrial uses, mixed-use development, retail, hotel, motels, and even residential development in certain sub -districts. According to the Palmer Lake Charrette Area Plan of Miami -Dade County, the redevelopment of the Bertram property has excellent potential to transform into a mixed-use, pedestrian -oriented district that compliments the nearby MIC and joint development area as well as the rest of Palmer Lake. Based on the property location and age of the improvements, this current transaction is essentially a redevelopment play acquired by an Argentinian based architect & developer who resides on Fisher Island. The buyer was attracted to the site because of its proximity to Miami International Airport, the river and the Miami Intermodal Center, where multiple public transit systems converge. Several redevelopment concepts include offices, hotels, senior living and retail/enterainment uses focused on the riverfront, while maintaining interim use income from an upgraded marina. © 2018 CBRE, Inc. B R E Property Name White Course Address 4400 NW 87th Avenue Doral, FL 33166 United States Government Tax Agency Miami -Dade Govt./Tax ID 35-3022-002-0010;35-3022-000-0110 & 35-3022-000- 0011 Site/Government Regulations Acres Square feet Land Area Net 130.100 5,667,156 Land Area Gross 130.100 5,667,156 �++ Site Development Status Semi -Finished Shape Other(See Comments) Topography Rolling Utilities Available to site Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density 16.98 per ac Frontage Distance/Street N/A NW 41 st Street Frontage Distance/Street N/A NW 87th Ave Frontage Distance/Street N/A NW 79th Ave General Plan Downtown Mixed -Use Specific Plan Mixed-use retail, office, residential & civic Zoning DMU, Downtown Mixed -Use Entitlement Status N/A Sale Summa White Course Lennar LLC, CC Homes at Recorded Buyer Doral, LLC & CC-WCD TIC Marketing Time True Buyer Lennar Corp, Armando Codina & Jim Carr Buyer Type Recorded Seller GWC Miami Property, LLC Seller Type True Seller Singapore Sovereign Wealth Fund Primary Verification Interest Transferred Fee Simple/Freehold Type Current Use Golf course Date Proposed Use Mixed-use retail/office & residential Sale Price Listing Broker CBRE, Inc. Financing Selling Broker N/A Cash Equivalent Doc # 30053/1186,1170 & 1154 Capital Adjustment Adjusted Price Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Tvpe Buyer Seller 04/2016 Sale White Course Lennar GWC Miami Property, LLC, CC Homes at Doral, LLC LLC & CC-WCD TIC © 2018 CBRE, I- 9 Month(s) Developer Pension Fund Robert Given, Listing Broker Sale 4/25/2016 $96,000,100 Cash to Seller $96,000,100 $0 $96,000,100 Price Price/ac and /sf $96,000,100 $737,895 / $16.94 CBRE Units of Comparison $16.94 / sf $43,459 / Unit $737,894.70 / ac $43,459 /Allowable Bldg. Units N/A / Building Area Financial No information recorded This comparable land sale is the Doral White Course located at the northeast quadrant of NW 41 st Street and NW 87th Avenue in the City of Doral, Florida. The buyers represent two local, and very seasoned developers including Stuart Miller with Lennar Corp.; and Armando Codina & Jim Carr with CC Homes. The two developers were the winning bidders and marks one of the most expensive land deals in Miami - Dade history. The seller is GWC Miami Property LLC, an affiliate of GIC, the sovereign fund of the government of Singapore. GIC acquired the property through bankruptcy actions. The transaction was @@09 Map clefs 6241$ Google recorded in a three way transaction with White Course Lennar LLC; CC Homes at Doral; and, CC-WCD TIC purchasing three parcels for $27.5 million; $27.6 million; and, $40.9 million, respectively. Lennar and CC Homes have a pending development application with the City of Doral for Downtown Doral South. The site plan calls for for 2,209 residential units, 150,000 square feet of office space, 30,000 square feet of retail, seven acres for a civic and school uses, and 17.6 -acres for an amphitheater/public recreation area. The development will also feature linear greenways and a promenade that connects to the new public space/amphitheater. As planned, 7 acres will be set aside for civic use to be determined by the city, as well as a school for grades 6-12 that will complement the K-5 charter school at Downtown Doral. Codina and Lennar were the winning bidders and beat out developer & presidential hopeful Donald Trump, Shoma Group's Masoud Shojaee and other well known developers in the process. Bids were due on July 15, 2014 and contracts were executed in April 2015 with 12 months of escrow & due diligence. The property's zoning parameters were set forth in a master development agreement between the property's predecessor owner, MSR Resort Hotel, in 2012. The agreement has been in place for 20 years, and development must begin within 10 years. The agreement was part of a court settlement between the former owner and the city. The prior owner/hotel company filed Chapter 1 1 during the recession. The White Course was then deeded to GWC Miami Property, controlled by the government of Singapore, as a creditor in the bankruptcy case. The site is a rolling golf course topography with substantial water hazards. © 2018 CBRE, Inc. B R E Property Name Opa-Locka Hialeah Flea Market Address 12691 & 12705 NW 42nd Avenue 12700 NW 42nd Avenue Opa-Locka, FL 33054 United States Government Tax Agency Miami -Dade Govt./Tax I D 08-2128-000-0050, 08-2129-000-0032 & 0064 Site/Government Regulations Acres Square feet Land Area Net 72.073 3,139,512 Land Area Gross 72.073 3,139,512 Site Development Status Finished Shape Other(See Comments) Topography Level, At Street Grade Utilities Available to site Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street N/A NW 42nd Ave Frontage Distance/Street N/A Gratigny Parkway Frontage Distance/Street N/A LeJeune-Douglas Connector General Plan Interim hold & future redevelopment Specific Plan Interim hold & future redevelopment Zoning B-3, Commercial Intensive & Corridor Mixed -Use Entitlement Status N/A Sale Summary Recorded Buyer GPT NW 42nd Avenue Owner, LLC Marketing Time True Buyer Gramercy Property Trust Buyer Type Recorded Seller Bodwin Ltd. & SeaBase Florida Corp. Seller Type True Seller Shangli Huang Primary Verification Interest Transferred Leased Fee Type Current Use Flea market & auto auction Date Proposed Use TBD Sale Price Listing Broker Avison Young #305-447-7842 Financing Selling Broker N/A Cash Equivalent Doc # 30625/3802, 3808 & 3815 Capital Adjustment Adjusted Price Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Tvpe Buyer Seller 07/2017 Sale GPT NW 42nd Avenue Bodwin Ltd. & SeaBase Owner, LLC Florida Corp. 20 7 8 C34L, - 12 Month(s) REIT Private Investor Michael Fay, Listing Broker, Media Releases & 10-Q Sale 7/20/2017 $80,000,000 All Cash $80,000,000 $0 $80,000,000 Price Price/ac and /sf $80,000,000 $1,109,981 / $25.48 BRE Units of Comparison $25.48 / sf N/A / Unit $1,109,981.09 / ac N/A /Allowable Bldg. Units N/A / Building Area Financial Pro Forma Revenue Type Stabilized Period Ending N/A Source N/A Price $80,000,000 Potential Gross Income N/A Economic Occupancy N/A Economic Loss N/A Effective Gross Income N/A Expenses N/A Net Operating Income $4,880,000 NOI / sf N/A NOI / Unit N/A EGIM N/A OER N/A Net Initial Yield/Cap. Rate 6.10% This comparable land sale comprises a clustering of three (3), non-contiguous parcels including the 33.78 -acre Opa-Locka Hialeah Flea Market site, the 28.31 -acre Miami Auto Auction site, and a 9.98 - acre ancilliary support site. According to the broker, the seller previously acquired & assembled the three parcels between 1984 & 1990 for $11.3 million and was the operator of the flea market, while collecting rent from the Miami Auto Auction. The buyer is a publicly traded REIT that negotiated a post closing, 12 - year lease with three, 5 -year renewal options with RER Outdoor Marketplace LLC whose principals ■ . ■ - falap data 02018 GaogL include Chris Kallivokas, Rodney Barreto Brian May and the selling broker, Michael Fay. The new tenant operator group of the flea market has plans to renovate the parking lot areas, restroom and canopy improvements. The buyer was interested in this property based on the existing below market Miami Auto Auction lease rate and the new flea market operator lease produces a 6.10% cap rate, while providing a defensive downside protection strategy based on the in -fill location, land value with a higher density, mixed-use zoning designation and re-leasability for tractor trailer parking or other open yard & parking uses. © 2018 CBRE, Inc. B R E Property Name Shops at Beacon Lakes Address 11700 NW 20th Street Miami, FL 33182 United States Government Tax Agency Miami -Dade Govt./Tax ID 30-3936-000-0120 Site/Government Regulations Land Area Net Land Area Gross Site Development Status Shape Topography Utilities Maximum FAR Min Land to Bldg Ratio Maximum Density Frontage Distance/Street Frontage Distance/Street Frontage Distance/Street Frontage Distance/Street General Plan Specific Plan Zoning Entitlement Status Recorded Buyer True Buyer Recorded Seller True Seller Acres Square feet 35.850 1,561,626 35.850 1,561,626 Other(See Comments) Irregular Other(See Comments) Available to site 0.27 3.75:1 N/A 2,600 ft Florida Turnpike N/A NW 117th PLace N/A NW 20th Street N/A NW 22nd Street Retail shopping center Shops at Beacon Lakes BU -3 - Liberal Business District & GU - Interim District Master/Specific Plan S/VIB Beacon Lakes, LLC Stiles Corporation AMB Codina Beacon Lakes LLC Prologis Marketing Time N/A Buyer Type Developer Seller Type REIT Primary Verification Contract & Buyer Interest Transferred Fee Simple/Freehold Type Current Use Vacant Land Date Proposed Use Retail Shopping Center Sale Price Listing Broker N/A Financing Selling Broker N/A Cash Equivalent Doc # 30937/1742 Capital Adjustment Adjusted Price Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Tvpe Buyer Seller 11/2017 Sale S/VIB Beacon Lakes, LLC AMB Codina Beacon Lakes LLC © 2018 CBRE, Inc. Sale 11/15/2017 $44,845,264 Cash to Seller $44,845,264 $0 $45,445,264 Price Price/ac and /sf $44,845,264 $1,267,650 / $29.10 BRE Units of Comparison $29.10 / sf N/A / Unit $1,267,650.32 / ac N/A /Allowable Bldg. Units $109.13 / Building Area Financial IL No information recorded This comparable land sale is a 35.85 -acre site located at the northwest quadrant of the Florida Turnpike Extension and State Road 836 in unincorporated Miami -Dade County, Florida. It is part of a master - planned development known as Beacon Lakes that is currently being developed by Prologis as a Development of Regional Impact (DRI) and with the creation of the Beacon Lakes CDD. The Beacon Lakes master plan comprises 478 -acres +/- including 4.6 million square feet of Class A distribution warehouse & business park space with the portion fronting the Florida Turnpike dedicated to commercial @@ ROD 0 ' Map data 002018 Google retail uses. The buyer/developer secured the contract in March 2017 at $45,000,000 subject to site plan approvals and the seller/master developer delivering a clear & level buildable site with all supporting infrastructure as per the Beacon Lakes CDD. However, there were numerous amendments to the contract including a slight price change to $44,845,265 due to site measurements plus $600,000 for two (2) contract closing date extensions, road impact credits, a seller obligation to remove contruction & demolition debris and deliver a 7.0' site elevation. The seller's off-site infrastructure obligations included proposed NW 1 1 7th Place improvements, a 1 .02 -acre retention lake, a pump station. The buyer essentially received a 35.85 -acre buildable site within three (3) parcels with a total of 430,000 -SF of commercial retail entitlements allocated from the Beacon Lakes DRI. The buyer/develoepr site plan includes a 9.44 -acre ground lease to Home Depot, a 3.11 -acre ground lease to City Furniture, two outparcel sites, two pad sites approved for 13,500 rentable square feet and three buildings that will total 159,341 square feet with ground breaking to occur immediately after closing. © 2018 CBRE, Inc. B R E Property Name T2.0 Address 7777 NW 41 st Street Doral, FL 33166 United States Government Tax Agency Miami -Dade Govt./Tax ID 35-3022-000-0101 & 0090 Site/Government Regulations Acres Square feet Land Area Net 23.702 1,032,436 y ; Land Area Gross 23.702 1,032,436 �^� 4 _ Site Development Status Finished Shape Rectangular - Topography Level, At Street Grade Utilities Available to site Maximum FAR 0.49 Min Land to Bldg Ratio 2.05:1 Maximum Density N/A Frontage Distance/Street 900 ft Palmetto Expressway Frontage Distance/Street N/A NW 41 st Street Frontage Distance/Street N/A NW 79th Ave General Plan Mixed-use business park Specific Plan BTS office, logistical warehouse & retail/wholesale Zoning I, Industrial District Entitlement Status N/A Recorded Buyer 7777 Investment, LLC Marketing Time 6 Month(s) True Buyer David Martin, Terra Group & Stephen Bittel, Buyer Type Developer Terranova Corp. Recorded Seller Bottling Group, LLC Seller Type End User True Seller PepsiCo., Inc. Primary Verification Jay Olshonsky, Listing Broker Interest Transferred Leased Fee Type Sale Current Use PepsiCo bottling plant Date 12/26/2017 Proposed Use Mixed-use business park Sale Price $40,268,000 Listing Broker NAI Global Financing Cash to Seller Selling Broker N/A Cash Equivalent $40,268,000 Doc # 30813/3815 Capital Adjustment $0 Adjusted Price $40,268,000 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Tvpe Buyer Seller Price Price/ac and /sf 12/2017 Sale 7777 Investment, LLC Bottling Group, LLC $40,268,000 $1,698,964 / $39.00 © 2018 CBRE, Inc. B R E Units of Comparison $39.00 / sf N/A / Unit $1,698,964.20 / ac N/A /Allowable Bldg. Units $79.80 / Building Area Financial IL No information recorded This comparable land sale is a short term sale/leaseback of a vintage 1964 bottling plant acquired by two, local & prominent residential & retail developers. The sale transaction was facilitated with a $37.5 W million loan in favor of Palmetto Finance & Investment, LLC. The site is zoned for industrial, but is 'p located in a transitional sub -submarket of Doral that is shifting more towards high density multi -family, hotel, corporate office & retail uses. The buyer/developers have engaged Cushman & Wakefield to market the site as a build -to -suit opportunity for 87,000 to 700,000 square foot end users. ■ • ■ _ N1ap data @2018 Goog le ©2018 CBRE, Inc. BRE Property Name Aljoma Lumber Address 10300 NW 121st Way Proposed Use Medley, FL 33178 Listing Broker United States Government Tax Agency Miami -Dade Govt./Tax ID 22-2032-004-0301 Site/Government Regulations Land Area Net Land Area Gross Site Development Status Shape Topography Utilities Maximum FAR Min Land to Bldg Ratio Maximum Density Frontage Distance/Street Frontage Distance/Street General Plan Specific Plan Zoning Entitlement Status Sale Summary Recorded Buyer True Buyer Recorded Seller True Seller Acres Square feet 35.147 1,531,000 35.147 1,531,000 Finished Rectangular Level, At Street Grade Available to site 0.42 2.36:1 N/A N/A NW South River Drive N/A NW 121 st Way Future bulk distribution business park redevelopment TBD M-3, Intense Manufacturing & Industrial District N/A Duke Realty LP Marketing Time Duke Realty LP Buyer Type UFP Real Estate, Inc. Seller Type Michael Cole, Universal Forest Products, Inc. Primary Verification Interest Transferred Leased Fee Current Use Lumber yard Proposed Use Mixed-use business park Listing Broker Colliers International South Florida #954-652 -4600 Selling Broker N/A Doc # 30815/4749 Transaction Summary plus Five -Year CBRE View History Transaction Date Transaction Type Buyer 01/2018 Sale Duke Realty LP Type Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Seller UFP Real Estate, Inc. N/A REIT End User Steve Wasserman, Listing Broker Sale 1/18/2018 $35,700,000 All Cash $35,700,000 $0 $35,700,000 Price Price/ac and /sf $35,700,000 $1,015,737 / $23.32 © 2018 CBRE, Inc. B R E Units of Comparison $23.32 / sf $1,015,736.81 /ac Mal Comments 3"o"Ie Map data 02018 G€og le N/A / Unit N/A /Allowable Bldg. Units $54.92 / Building Area No information recorded This comparable land sale is a sale/leaseback and monetization of a lumber storage & distribution yard for a national, NASDAQ listed company. The buyer has preliminary plans to build 650,000 -SF of bulk distribution warehouse. The seller is repositioning into two other facilities recently acquired from Robbins Manufacturing in 2017 and will add another purpose built, state-of-the-art facility going forward in order to improve logistics & operational efficienies necessary to service the entire Florida and southeast region including Puetro Rico and the Caribbean. © 2018 CBRE, Inc. CBRE Addenda Addendum B LEGAL DESCRIPTION © 2018 CBRE, Inc. GRAPHIC SCA E SEE DETAIL B -B_ mm 191110 0=i 1 o TAM1AMi CANAL PARCEL 1 AFG . 3.7236 ROT I � LIMITED ACCESS EXPRESSWAY I PAR A1.11 I 1 �ID _.. N.W. 14th Si'EEET. SEE DETAIL A -A - Rg LOCATION MAP NOTTW— NW nTM n N� R' SQtWPOR hW vre. R N.W. 19th TE / Air 00, NW iT H ST — -- 3 �%F, _ - "I N.W. ST /, IL .TM W,4 "pix N i fl{ STjFW 14TH ST - — /'."'�' J •i N.W. nth OF 18th ST. {FGIN QF-RiPTICIN, I b� 3Ng CSH DARK � R T; I I Q d Z I :Z r� II 1 �RV�[OR RFf'Q tLI, 1) BUR EY Inn, BOUNDAR, MEL REESE GOLF COURSE (LEGA_ AMIMITTDN, PARCEL 1 ANO PARCEL 2) THAT FART OF IFI SOUTIIFASt 1/s OE SE COMMENCE AT THF SOUTHEAST CORNER OF SAM SOUTHEAST 1/h; THENCE RUN —B THE SOUTH AST Y/n 5HFU T OF BEGINNING: HE N8k D3"E FROM 'HE CENTER AND IS ALSO THE WESTERLY RIGHT OF WAY UNE OFOT " NWS "THOFF M SHOWN G SHIFT AD All, IT'IDII, Go NPRIHERLT lT RA Al A WA T, ANCONCAVE. TO FTHE FAST H4VING A RADIUS OF i463.a0 FEET, A CENTRAL ANGLE NIC Di ANCE GF TWRe FEET TO A POINT OF TANGENCY; U-MCE RUN NOR2THERLY NT3,VE FOR 1S FEET MORE OR LESS TO THE TOP OF RICAN OE TAMIAMI CANAL THE C: E CEKR THE TOP OF GANK OF —11 CANNI ED TO INTERSDECTION III A 11F 33 FEET WESTT ARA P E ' U E SHIP E LY A O G . Q L E i0 DINT OF BE 0. NIN 'M.5 N8 ACRES MORE OR LESS, RATED,2 AL THAT LAND 1.YNG IN OR MEDICAID t/4 OF OFFEETION 32, HEWDSHIP 53 MOUTH, RANGE 41 EAST, DARE COUNTY, NOREAL MUDIC PRATECIUNALf TEMEMBED AS ROOM— FOR OO WSCO ENCE AT THE CCHWE CORNER OF THE NOTTLEAST 1/4OF KID DOTION - E N _% E J 0 THENCE F STERt C A LM / BTT B "E FOR 1.11 1 FEET TO TIFF 1111T 11llOF HE DREFFOR, To OF N.MSEG ITL t ALONG THE _NT OF WAY PF THE LIMITED ACCESS TO LE RUNE READ HEW A'. AVENUFN ME MON FEEL: THENCE RUN ALONG ADD R/ BSB N4STEN FOR 562 U ED A FORIC, AMID MINT REARS N'114 AIE ".. GE NORTHWESTERLY ALONG SA''FRE"M ECO ""UD US OF '10 FEET 0. RAI- AAUDEG SAM, MEN '.pfi14 OF 1623 3 FOFEER N ABC R CF �33T 8 FEET iNINCI RUN N08'00 W FOR 9361 FEET i0 HE INTERSECTIO WENDU E PN'.ALLF T9 AIAIR RED NP AD - FF llUFFELL ITS ME SUCH LINE 0 lE ENE OAP MW L)N OE R E i/a OF fCTI 32, T ENCE RUN ALONG SAID ORTH E *12 'E OR BNA h 'A FE T RSG 0 LINE OF N 37th AVE EAS SHOWN 0 'BEET 2 0 OF i E N UO WARISAM R 0 RMAE THUMIT An BEARS N8629 O3 E i0 THE CENTS 0 SND CU VE LGLEFE E 8 FOR RC DIS INCE OF 7 15 ET. ENC_ / B ll RVC ? S - D U C C RVE CO C VE TO tNE "M A' THENCE SOUTH ADDING D R/W A s AND E OF BA SAID111, A U1— MMIl Or IF' fSR AN An DISTANCE 2 ET 240,77FACTTO I MON 0 TAN E HENCE RUN ALONG SOFT 117 FOR TO I D NE -? FEE AN E F 3 ,.A RC BE DSi E OF AMEAR FEET 0 PON O O TINCE.I. FOR AGIOI F"TOF Of HE DIDD J / i _ ST E +Oft .AATICI FEET TO TS ATlRAMl' INE,DUE NE 30 FEET SOUTH 0 AND ARA E / ! E2TW AT N 0 ARA" E FOR TOO 00 IEC 0 A 0 23 £E S ID HE / C k 41 FE T E CIF ESTERIT SA ICON %USE ARALLEI 4 8 E H�UNt O ie'W FO Sl'37`f FOR 2 300 FEET, THENCE WESTERLY ALONG A p0 LINE PARALLEL FU TH D b EE NORTH OF THE SOUTH U OF SAID NE 1/4 MAMN'I8'W FOR 123521 FEET MORE OR LESS TO THE PONT OF BEGINNN GOILSENG 131.0736 IDE AGREs MORE OR Less_ DETAIL A—A 2) BAa6 Of t9EAHINGIR HIRING ARE BASED DN THE MONUMENT LINE QF NW 37 AVL. (NOT'S25T"Vf) AS IOMM EQUEND, MOTT08CALE WON UMFIBER BFTWEEN NOT 14th SIREED & NW 17th STREET. MOREy{AREIR(y A eFNCH UARR _ DHW--ovGafcAR Wx EDGE OE 3) FLOOD DONE: AFRA CONE. CO CRETE N NAIL aWFISS Imo) wAl£ j OG' _ —... Y AS PER FIRM COMMUNITY NUMBER 1206W PAT 'EL 0180 SUFFI J PATE: 3102/94 MAY NUMBER. 12025COIFEW 4) THIS SURVEY IS SUBJECT TYI EASEMENTS, RIGHTIN A WAYS, ANIJ OTHER MAITtiRS WHICH MIGHT BE REELECTED IN A SEARCH ELEV. —.— PNO FJUND MEAS. MEASURED SWAIA( SIDEWALK EDP EDGE OF PAVEME N NUMBER EFC _GCMG NCV➢ ATIONAI. DATUM VEftTiCM1t DAVM R E [7 R TI oFE 'zFo nar n _ DID a N 0 Ro Ffla f � .— MANHac i SAUDI w NETT AM OF C OF TITLE TO TU SUBJECT LANDS, EOP EDC£ OF PAVEMENT Q MCN ' - 9) ELEVATIONS SHOWN REFER TO CITY AN 1 DATURA (ML4Y RAY) BENCH MART( USED P AIL AND MROAD DISC T THE HE CORNER OF CORE SDEWALH AT THE INTERSECTED OF NW F»M T ulxnoLE � G u= - T 37 AVE & MW 16 TERRA CLEVATIDN= 56 9 FEET (MEW WI CONVERSION FACTOR TO NATIONAL GEPOETIC VE DATUM HEREBY CoPPELF . _ J (NAND,1929) EQUALS —0.26 FEET. EU WATIDN=5.389(NGVD) THAT 1 A I A STATE BOAS'I— BlITE 1111 Epi R. IMIS P TE NT A CHAPTER STANDARDS MIT 2 OF PARCEL 1 / 35. W' / IT OF 5EG29 'B8 ( IP 635 RANGE DS RST DAY FIELD WOR P0B NER OF K 05/05/05 SIGNED : 05/24/05 FIE\ D 553, PG.9-13 F'G.18-22 6) MONUMENT UNE AND CENTERLINE AS PER MUNICIPAL ATLAS, CITU OF MIAMI. SNRT (U—N) triE J) THIS SURVEY SAN UPDATE OF A SURVEY PERFORMED ON 4/11/S5, WE IOf:ATED ME EDGE OF WATER FOR THIS UPDATE. 8) RFFFRENCES MADE TO DATE AU PREPARED BY THE CITY OF MIAMI TTORNFYS OFFICE DATED AUGUST 8th, 2002. PARCEL ROROA STATI,TE' AND vvett CUT mE CHA TER 61Oi2 OF THE RCROA SONATURE ANO THE TRONA_ ADMINISTRATIVE CODE. RAISED SEAL IF / ��R�/ �Ul¢xYA111/ 4 PCu' SA\Q C:\ELISA\CITY OF MIAMI\SDD4WOT3 O F.P.No. 2902341 250 TFTA FLORIDAFLOLICENSED SURVEYOR AND MAPPER. STATE of Fl.aRDn I Addenda Addendum C CLIENT CONTRACT INFORMATION © 2018 CBRE, Inc. 3/16/2018 REVISED REQUEST FOR APPRAISAL QUOTE City of Miami You are invited to submit a quote to prepare an appraisal report based on the Appraisal Assignment attached herewith as Exhibit "A". Please complete the information requested at the bottom of this page. The quote and below information must be received by the Department of Real Estate and Asset Management by 2:00p.m., Wednesday, March 21, 2018. You may submit your proposal via email to: Jacqueline Lorenzo Project Management Specialist Department of Real Estate and Asset Management City of Miami 444 SW 2 Avenues, 3rd Floor Miami, FL 33130 (305) 416-1426 jlorenzokmiamigov.com ADDRESS FOLIO JOB No. 1400 NW 37 AVE 01-3132-000-0080 A-03-18-007 1550 NW 37 AVE* 01-3132-000-0090 *see survey attached hereto Comprehensive total fee to perform appraisal/s: Hourly fee in the event expert testimony is required: Appraisal Company: Telephone/Extension: By: Stuart J. Lieberman, MAI Sign: v CBRE, Inc. 305-381-6472 Date: 3-18-2018 $ 150.00 NOTE: When sending a quote, your company must comply with the completion due date. If selected, your company must provide a Certificate of Insurance in the manner prescribed in Exhibit `B" below. Pagel of 5 © 2018 CBRE, Inc. 3/16/2018 City of Miami EXHIBIT "A" APPRAISAL ASSIGNMENT Job Number: A-03-18-007 Fiscal Year: 2017-2018 Location: 1400 NW 37 AVE, & portion of 1550 NW 37 AVE (see survey) Folio No.: 01-3132-000-0080 & 01-3132-000-0090 Lot Size: Approximately 131 Acres (see survey) Improvements: N/A (see purpose below) Purpose of Appraisal: To determine Fair Market Value and Rental Value at highest and best use. Please note the City's purpose is to determine the value to lease a vacant portion of the property to a third parry. As such, we are requesting the value be provided on a per square foot basis. Property Rights Appraised: Fee Simple, subject to existing restrictions Current Zoning: CS Civic Space Zone (under Miami 21 Zoning Code). Type of Appraisal: Narrative Self Contained Report Time to Complete: Four (4) weeks from authorization. Number of bound copies: Four, (signed and certified). City Contact Person: Jacqueline Lorenzo, Property Management Specialist T: (305) 416-1426 E-mail: jlorenzo&miamigov.com Resolution Reference: None. Date of the Valuation: Date of the appraisal report. Fee: Full payment upon completion of the assignment, subject to revisions by the City of Miami and any other review appraiser should there be any discrepancies in the appraisal reports. THE APPRAISAL REPORT SHOULD INCLUDE THE FOLLOWING: 1. The appraisal report shall be performed in compliance with the professional services agreement with the City for appraisal services as applicable. 2. The appraisal report must consider all three approaches to value and provide an explanation to the weight given to each approach in arriving at the final reconciliation of value. In the event an Page 2 of 5 © 2018 CBRE, Inc. 3/16/2018 City of Miami approach is not used, please provide justification. Please provide evidence for not using the Cost Approach. 3. In calculating the Market Data, the appraiser should analyze and provide current local market data and submit adjustment tables of comparables. 4. If utilizing a Land Sales Comparable Table to calculate Sales Price per Square Foot, please provide line item adjustments in a matrix format for a better understanding of the Summary and Land Value Correlation conclusion. 5. Provide source and proof of capitalization rate for the income approach to value in local market versus other market when applicable. 6. Provide Market Data as if taxable property. 7. The appraisal report should be in compliance with the current Uniform Standard of Professional Appraisal Practice (USPAP) according to Section 475, Part II, of the Florida Statutes. The City of Miami reserves the right to review the appraisal report and submit its comments. The final report will be due five days after the appraisal is reviewed by City's staff. Note: All calculations must be explicit. Show all steps used to arrive at any conclusions provided. All data in this sheet must be verified by the appraiser, if any discrepancy, please call this office at 305-416-1426. Page 3 of 5 © 2018 CBRE, Inc. 3/16/2018 EXHIBIT `B" INSURANCE REQUIREMENTS (I) Commercial General Liability (Primary & Non Contributory) A. Limits of Liability Bodily Injury and Property Damage Liability Each Occurrence $1,000,000 General Aggregate Limit $2,000,000 Products/Completed Operations $1,000,000 Personal and Advertising Injury $1,000,000 B. Endorsements Required City of Miami included as an additional insured Contingent Liability (Independent Contractors Coverage) Contractual Liability Premises & Operations Liability Primary Insurance Clause (II) Business Automobile Liability A. Limits of Liability Bodily Injury and Property Damage Liability Combined Single Limit Any Auto/Owned Autos/Scheduled Including Hired, Borrowed or Non -Owned Autos Any One Accident $ 1,000,000 B. Endorsements Required City of Miami included as an Additional Insured (III) Worker's Compensation A. Limits of Liability Statutory -State of Florida Waiver of subrogation (IV) Employer's Liability A. Limits of Liability $100,000 for bodily injury caused by an accident, each accident. $100,000 for bodily injury caused by disease, each employee $500,000 for bodily injury caused by disease, policy limit (V) Professional Liability/Error's & Omissions A. Limits of Liability Combined Single Limit Each Claim $1,000,000 General Aggregate Limit $1,000,000 Retro Date Included Page 4 of 5 © 2018 CBRE, Inc. City of Miami 3/16/2018 BINDERS ARE UNACCEPTABLE. City of Miami The above policies shall provide the City of Miami with written notice of cancellation or material change from the insurer in accordance to policy provisions. Companies authorized to do business in the State of Florida, with the following qualifications, shall issue all insurance policies required above, and must meet the following requirements: The company must be rated no less than "A-" as to management, and no less than "Class V" as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of insurance are subject to review and verification by Risk Management prior to insurance approval. Certificates will indicate no modification or change in insurance shall be made without thirty (30) days written advance notice to the certificate holder. The Bidder shall be responsible for assuring that the insurance certificates required in conjunction with this Section remain in force for the duration of the contractual period; including any and all option terms that may be granted to the Bidder. In the event that expired certificates are not replaced with new or renewed certificates which cover the contractual period, the City shall have the option to: (1) Suspend the contract until such time as the new or renewed certificates are received by the City in the manner prescribed in the Request for Appraisals Quote; or (2) The City may, at its sole discretion, terminate this contract for cause and seek re -procurement damages from the Bidder in conjunction with the General and Special Terms and Conditions of the Bid. The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the bidder. Compliance with the foregoing requirements shall not relieve the bidder of his liability and obligation under this section or under any other section of this Agreement. Page 5 of 5 © 2018 CBRE, Inc. Addenda Addendum D QUALIFICATIONS © 2018 CBRE, Inc. Clients Represented BankUnited Ocean Bank Centennial Bank C -III Asset Management City of Miami Miami -Dade County, Internal Services Dept. Experience Stuart J. Lieberman, MAI is a Vice president with over 30 years of real estate appraisal and consulting experience. Mr. Lieberman is in the Valuation & Advisory Services Group's Miami office in the South Florida/Caribbean Region. Since 1987, Mr. Lieberman has provided real estate valuation and consulting services to the financial lending community, institutional clients, government agencies, corporate entities, legal & accounting professionals, developers and private individuals. Mr. Lieberman has experience providing market studies, feasibility studies, highest & best use analysis, market rent studies, expert testimony & litigation support and portfolio analysis. Mr. Lieberman's experience encompasses a wide variety of property types including single & multi -family residential, senior housing, mobile home parks, high density urban & ocean front developments, open space & public parks, automobile dealerships, service stations & convenience stores, funeral homes, medical office & surgical centers, mixed-use office, financial institutions & branch banks, retail shopping centers & regional malls, parking garages, restaurants & night clubs, movie theatres, health & fitness clubs, marinas & shipping terminals, FBOs (fixed base operations), industrial flex warehouses, bulk distribution, truck terminals, refrigeration warehouses, R&D, business parks, self -storage facilities; and, special purpose properties, including bowling alleys, broadcasting facilities, car wash, historical properties, public & private schools, day care facilities, houses of worship & religious facilities, tourist attractions, sport arenas and entertainment venues & theatres. Professional Affiliations / Accreditations • Appraisal Institute — Designated Member No. 12003 • Certified General Real Estate Appraiser, State of Florida License RZ 1074 • Licensed Real Estate Broker — Associate, State of Florida License BK 0477878 Education • University of South Florida, Tampa, FL, BA, Political Science — 1985 • Appraisal Institute, American Institute of Real Estate Appraisers, Society of Real Estate Appraisers and Florida Real Estate Commission core courses, electives and seminars. RICK SCOTT, GOVERNOR LICENSE NUMBER KEN LAWSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD SEQ # L1608280006452 Clients Represented • LNR Partners • Bank of America Merrill Lynch SunTrust Bank PNC Bank Mercantil Popular Community Bank 5/3 Bank Iberia Bank • Santander Bank • Regions Bank TD Bank Bank United • BB&T Bank • CitiBank • Deutsche Bank Ocean Bank Centennial Bank • Bank of the Ozark First Bank Florida 02018 CBRI, !- Experience James Agner is the Senior Managing Director of the Valuation & Advisory Services for the Florida - Caribbean Region. Located in the CBRE Miami office since 1995, Mr. Agner has over thirty years of real estate appraisal and consulting experience throughout the State of Florida, with primary experience in South Florida and in the Caribbean. Mr. Agner is a designated member of the Appraisal Institute (MAI) and General Review Specialist (AI-GRS), member of the Society of Golf Appraisers (SGA), and Royal Institution of Chartered Surveyors (MRICS) and is licensed as a Certified General Real Estate Appraiser in the State of Florida and Georgia. He also has provided expert witness testimony in the Circuit Courts — State of Florida and United States Bankruptcy Courts. As Senior Managing Director, Mr. Agner leads a valuation and advisory staff in Miami and Palm Beach Counties that provides exceptional quality appraisal work and client service in South Florida, Treasure Coast and the Florida Keys. He also coordinates all activities for Florida and in the Caribbean, including overseeing new business development, client relations and appraisal quality control production. Mr. Agner is also the National Director of the Golf Valuation Group and the Net Lease Valuation Group for CBRE. Professional Affiliations / Accreditations • Appraisal Institute — Designated Member (MAI), Certificate No. 7791 • Appraisal Institute — General Review Specialist (AI-GRS), Certificate No. 69150 • Society of Golf Appraisers (SGA), Certificate No. 25 • Royal Institution of Chartered Surveyors — Member (MRICS), Certificate No. 7505662 • Certified General Real Estate Appraiser, State of Florida, #RZ382 • Certified General Real Estate Appraiser, State of Georgia, #345321 • Licensed Real Estate Broker, State of Florida, BK402088 Education Florida State University, Tallahassee, FL Bachelors of Science in Business Administration, Marketing - 1981 RICK SCOTT, GOVERNOR KEN LAWSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date- NOV 30, 2018 AGNER, JAMES E 777 BRICKELL AVE SUITE 910 MIAMI FL ISSUED: 09/25/2015 91 :. SEQ # L1609250003799 CBRE VALUATION & ADVISORY SERVICES STUART J. LIEBERMAN, MAI Valuation & Advisory Services +1 305 3816472 Stuart.Lieberman@cbre.com JAMES E. AGNER, MAI Valuation & Advisory Services (305) 381-6472 James.Agner@cbre.com www.cbre.com CBRE