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HomeMy Public PortalAbout2000 re 530 Crandon BoulevardCitgo Service Station LOCATED AT: 530 CRANDON BOULEVARD KEY BISCAYNE, FLORIDA PREPARED FOR: VILLAGE OF KEY BISCAYNE 85 WEST MCINTYRE STREET KEY BISCAYNE, FLORIDA AS OF: AUGUST 26, 2000 PREPARED BY: QUINLIVAN APPRAISAL, P. A. 5730 S.W. 74TH STREET - SUITE 300 SOUTII MIAMI, FLORIDA 33143 QUINLIVAN APPRAISAL A PROFESSIONAL ASSOCIATION REAL ESTATE APPRAISERS Se CONSULTANTS 5730 S.W. 74TH STREET, SUITE 300 SOUTH MIAMI, FLORIDA 33143 J. MARK QUINLIVAN, MAI STATF-C ERTI El ED GENERAL APPRAISF RS RZ 0000112 August 28, 2000 TELEPHONE (305) 003-0011 FAX (305) 005-1921 C. Samuel Kissinger, Village Manager Village of Key Biscayne 85 West McIntyre Street Key Biscayne, Florida 33149 Dear Mr. Kissinger: THOMAS F. MAGENHEIMER, M AI STATF-( ERTIFIE I) GF'F_RAL APPRAISPR, KZ 000055) In accordance with your request and authorization, I have prepared this Complete, Self -Contained Appraisal Report covering the following described property: Citgo Service Station situated on a 12,705 square foot land site located at 530 Crandon Boulevard, Key Biscayne, Florida. The purpose of this Appraisal is to estimate the Market Value of the described property as of August 26, 2000, being one of the dates of personal inspection. It should be recognized that this appraisal is of the real estate only and does not include fixtures and equipment nor does it include business value, if any. The narrative Appraisal Report that follows sets forth the identification of the properties, the assumptions and limiting conditions, pertinent facts about the area and the subject properties, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. C. Samuel Kissinger, Village Manager Village of Key Biscayne August 28, 2000 Page 2 Based on the inspection of the properties and the investigation and analyses undertaken, I have formed the opinion that, as of August 26, 2000, the subject property had a Market Value of: SIX HUNDRED THIRTY FIVE THOUSAND DOLLARS ($635,000) Respectfully submitted, Mark Quinlivan, MAI State Certified General Appraiser Certification Number: RZ0000112 7MQ/jb (99-117AU) CERTIFICATION OF VALUE The undersigned hereby certifies that, to the best of my knowledge and belief: (A) The statements of fact contained in the report are true and correct. (B) The reported analyses, opinions and conclusions are limited only by the assumptions and limiting conditions set forth, and are our personal, unbiased professional analyses, opinions and conclusions. (C) I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. (D) The appraiser's compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. Furthermore, the appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. (E) The appraiser's analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and the requirements of the State of Florida for state -certified appraisers. (F) Use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. (G) J. Mark Quinlivan has made a personal inspection of the property that is the subject of this report. (11) No one provided significant professional assistance to the person signing this report. (I) The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. QUINLIVAN APPRAISAL 1 (J) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. (K) The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. (L) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, J. Mark Quinlivan has completed the requirements under the continuing education program for The Appraisal Institute. Based on the inspection of the property and the investigation and analyses undertaken, subject to the assumptions and limiting conditions set forth in the Addendum of this report, I have formed the opinion, as of August 26, 2000, the subject property had a Market Value of: SIX HUNDRED THIRTY FIVE THOUSAND DOLLARS ($635,000) .NARK QUINL AN, MAI TE CERTIFIED GENERAL APPRAISER RTIFICATION NUMBER: RZ0000112 QUINLIVAN APPRAISAL 2 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Type of Appraisal Complete Type of Report Self -Contained Purpose of Appraisal Market Value Property Rights Appraised Fee Simple Address 530 Crandon Boulevard, Key Biscayne, Florida. Land Size 12,705 Square Feet .29 Acre Improvements Service station containing 1,584 square feet. Age 1952 Zoning BU -1, Neighborhood Business District Highest and Best Use Commercial usage Estimated Land Value $635,000 Date of Value Estimate August 26, 2000 Date of Inspection August 26, 2000 Date of Report August 28, 2000 Remarks The appraisal is of the real estate only and does not include fixtures, equipment or business value, if any. QUINLIVAN APPRAISAL 3 SUBJECT PROPERTY - FRONTAGE ALONG CRANDON BOULEVARD SUBJECT PROPERTY - FRONTAGE ALONG CRANDON BOULEVARD QUINLIVAN APPRAISAL SUBJECT BUILDING LOOKING SOUTHERLY ALONG CRANDON BOULEVARD - SUBJECT SITE TO THE RIGHT QUINLIVAN APPRAISAL INTRODUCTION QUINLIVAN APPRAISAL INTRODUCTION IDENTIFICATION OF THE PROPERTY A Citgo Service Station situated on a 12,705 square foot land site. ADDRESS 530 Crandon Boulevard Key Biscayne, Florida LOCATION Northwest corner of West McIntyre Street and Crandon Boulevard, Key Biscayne, Florida. PURPOSE AND DATE OF APPRAISAL The purpose of this Appraisal is to estimate the Market Value of the properties as of August 26, 2000, being one of the dates of personal inspection. INTENDED USE AND USER OF APPRAISAL The intended or use of this appraisal is to aid the client (Village of Key Biscayne) in determining an acquisition price. The intended user is the Village of Key Biscayne. LEGAL DESCRIPTION A portion of Tract 4, MATHESON ESTATES KEY BISCAYNE, according to the Plat thereof, as recorded in Plat Book 34, Page 34, of the Public Records of Miami -Dade County, Florida, being more particularly described as follows: Begin 269.45 feet East of the Southwest corner of Tract 7 (Plat Book 46, Page 86), thence East 145 feet Southwesterly along West right-of-way line of Crandon Boulevard arc distance of 122.45 feet West along North right-of-way line of West McIntyre Street for a distance of 96.97 feet, thence North 105 feet to Point of Beginning, Miami -Dade County, Florida. (Source: Miami -Dade County Property Appraiser's Office) QUINLIVAN APPRAISAL 4 PROPERTY RIGHTS APPRAISED The property is appraised in fee simple: a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power and taxation, as well as utility easements of record. DEFINITION OF MARKET VALUE Market Value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised and acting in what they consider their own best interest; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. QUINLIVAN APPRAISAL 5 ASSESSMENT AND TAXES - 1999 The subject property is assessed under the jurisdiction of the Village of Key Biscayne. The assessment for the property is established each year as of January I st by the Dade County Property Appraiser's Office at 100% of "Just Value." Just Value has been equated to Market Value less closing costs. While the State of Florida requires real estate to be assessed at 100% of Just Value, in reality the ratio of the assessed value to sales price is generally below 100%. Folio Number: Assessed Value: Millage Rate: Tax Amount: 24-4232-002-0050 Land Improvements Total $20.937 per $1,000 $10,480.13 OWNER OF RECORD AND ADDRESS Key Biscayne Island Standard, Inc. 412 Woodcrest Road Key Biscayne, Florida 33149 FIVE-YEAR HISTORY OF TITLE $444,675 ($35.00/S.F.) $ 54,030 $498,705 In June of 1999, the title of the subject property was transferred from Anthony and Jo Greco to Key Biscayne Island Standard, Inc. There was no consideration indicated. This transaction is recorded at OR Book 18667, Page 4235. There have been no other sale transactions over the past five years. QUINLIVAN APPRAISAL 6 ESTIMATED EXPOSURE TIME Exposure time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. In estimating a reasonable exposure time for the subject property, the appraisers have taken the following steps: • Discussion with buyers, sellers and brokers of vacant sites in the area related to historic marketing periods. Based on the above sources, exposure time is estimated to have been 12 months for the subject property. ESTIMATED MARKETING PERIOD The estimated value of the subject is predicated upon a normal marketing period. A normal marketing period is generally defined as the most probable amount of time necessary to expose and actively market a property on the open market to achieve a sale. Implicit in this definition are the following assumptions: (A) The property will be actively exposed and aggressively marketed to potential purchasers through marketing channels commonly used by sellers and buyers of similar type properties. (B) The property will be offered at a price reflecting the most probable markup over market value used by sellers of similar type properties. (C) A sale will be consummated under the terms and conditions of the definition of Market Value required by the regulation. In order to estimate the marketability of this property, the sales activity in this market area is reviewed over the past three years, multiple listings are reviewed and real estate brokers who operate in this area are interviewed. Based on the above sources, the subject property could be sold within a 12 month time period. QUINLIVAN APPRAISAL 7 LOCATION ANALYSIS QUINLIVAN APPRAISAL COUNTY DATA Miami -Dade County - Location and Size Miami -Dade County, which comprises the metropolitan area of Miami, is situated on the southeast tip of the state of Florida. It is bordered on the east by the Atlantic Ocean, on the west by Monroe and Collier Counties, on the north by Broward County, and on the south by Monroe County (the Florida Keys). Miami -Dade County, the largest county in area and population in the state of Florida, covers an area of 2,054 square miles with an altitude ranging from sea level to 25 feet. Water covers 354 square miles of the County. Although the County is relatively large, approximately half of the total area is comprised of the Everglades, which is a natural area that will not be developed. Therefore, only the eastern section of Miami -Dade County encompasses the area which is currently developed or available for future development. Miami -Dade County's location, its southern latitude and proximity to the Gulf Stream provide for mild winters and pleasant summers. Population The state ofFlorida has increased rapidly in population from 6,791,400 in 1970 to 9,740,000 in 1980 and 12,937,926 in 1990. The 1995 population of Florida was estimated at 14,108,500. The population of Florida is expected to grow to 15,449,100, a 1.8% average annual increase. Miami -Dade County's population increased from 1,626,000 in 1980 to 1,937,094 in 1990, reflecting an average annual compounded growth rate of 1.77%, compared with 2.88% for the state of Florida. By 1999, Miami -Dade County's population increased to approximately 2,150,000. The population is estimated to grow to 2,230,000 by the Year 2005. Miami -Dade County's population growth during the last four decades has been dramatic especially in relation to national trends. From 1950 to 1990 the United States population increased by 60% while the population of Miami -Dade County has almost quadrupled from 495,084 to 1,937,000. During this period, the state of Florida was elevated from the 20th most populous state to the 4th in 1990. The population growth rate in Miami -Dade County has shown greater fluctuations than the national rates. The Miami -Dade County rate of population change was 84.9% during the period 1940 to 1950; 88.9% from 1950 to 1960; 35.6% from 1960 to 1970 and 28.2% from 1970 to 1980. In the period from 1980 to 1990, the rate of population change was 16%. The average annual change from 1990 to 1999 was approximately 1.1%. QUINLIVAN APPRAISAL 8 During the 1960s, the major increase in Miami -Dade County's population was due to the large immigration of Cubans. Today, Cuban and other Spanish speaking people comprise approximately 57% of Miami -Dade County's population. The increase in Hispanic population has had favorable effects on the local economy and has helped to create a multi -national cultural environment in the area. The recent influx of political and economic refugees from Cuba, Haiti and Nicaragua has put an abnormal strain on public services and has affected the population data in a dramatic manner. However, a recent increase in population growth of people from Latin American, as well as from Europe and Canada, coupled with the increases in population from those people leaving the northern sections of the United States, indicate a positive prospect for the Miami -Dade County area in the future. The overall population of Miami -Dade County is well dispersed throughout the entire area, yet has several key areas of concentration. During the 1960s, several sub -areas accounted for approximately 70% of the growth. These areas include Hialeah, northern Miami -Dade County, the Beach area, the Miami River area, the area southwest of Miami International Airport, as well as the Kendall and Cutler Ridge areas. In the first half of the 1970s, population growth continued in an uneven fashion especially in the urban fringes. Since 1970, approximately three -fourths of the total population growth for the County has occurred in the unincorporated areas. The older centrally located cities such as Miami, Miami Beach and Coral Gables have grown at modest rates from 1970 to 1990. Unincorporated Miami -Dade County has evidenced the most rapid growth which continues to occur in areas in northeast Miami -Dade County (Aventura), as well as the currently expanding southwest area, especially in sections of Flaglcr Street, S.W. 8th Street and North Kendall Drive. Population trends indicate that most of the population growth in Miami -Dade County during the first half of the 2000s will occur in outlying areas such as North Miami Beach, the Golden Glades area, the Kendall area west of the Florida Turnpike, the S.W. 8th Street and Palmetto Expressway areas, the Hialeah -Miami Lakes area, as well as those areas both east and west of U.S. Highway 1 between Sunset and Coral Reef Drives, and Cutler Ridge and the Goulds area. Employment Trends The dominant characteristic of Miami -Dade County is that it is primarily trade and service based. Personal, business and repair services have had a substantial increase in importance in the economic base over the last decade. The major sectors of the economy include services, wholesale and retail trade, transportation, communications, public utilities, government and manufacturing. The most dominant industries which form the County's economic base are construction and tourism. QUINLIVAN APPRAISAL 9 Tourism is Miami -Dade County's biggest industry with an estimated 9.7 million visitors in 1997 contributing to more than 50 percent of the area's economy. Aviation and related industries are responsible for another large segment of the economy. The garment industry ranks third in the nation after New York and Los Angeles. Table 1 shows the distribution of the non-agricultural work force in Miami -Dade County. TABLE 1 ANNUAL AVERAGE NON-AGRICULTURAL EMPLOYMENT 1995, 1996, 1997, and 1998 CLASSIFICATION (IN THOUSANDS) 1995 1996 1997 1998. TOTAL ALL INDUSTRIES 926.6 937.8 960 7 971.2 MANUFACTURING 77.5 77 1 75.3 76 3 CONTRACT CONSTRUCTION 36.2 35 0 33 9 35 1 TRANSPORTATION, COMMUNICATION AND UTILITIES 78 1 80 0 83 2 84 7 TRADE 242 3 247 7 254 3 258 4 FINANCING, INSURANCE AND REAL ESTATE 66 0 66 4 67 6 68 2 SERVICE, MISCELLANEOUS AND MINING 294 7 299 4 311 8 314.1 GOVERNMENT 131.8 132 1 134 7 135.2 Source Florida Department of Labor & Employment Security, Bureau of Labor Market Information The largest employer in Miami -Dade County is the Miami -Dade County School Board, followed by Metro -Dade County, State of Florida, Federal Government, American Airlines, University of Miami, Jackson Memorial Hospital, Bell South, and Florida Power and Light. Assuming additional importance is the growing prominence of Miami -Dade County as a center for international trade, finance and tourism. The establishment of Miami as the "Gateway of the Americas" should provide the area with a much needed degree of economic diversification. This should enable Miami -Dade County to weather slowdowns in the national economy by an increase of trade through the Port of Miami, growth of international arrivals at the airport, the Free Trade Zone, and the substantial foreign investment in the local economy, particularly in real estate. QUINLIVAN APPRAISAL 10 Unemployment showed a major drop from the 10% average in 1992 to 7.7% in 1993, increasing to 8.0% in 1994, but decreasing to 5.0% by the Fourth Quarter of 1999. The volatility of the unemployment rate is tied to a large degree to the construction industry. While construction has never been among the county's employment leaders, lay-offs have had substantial effects on employment in other construction -related industries, particularly within the manufacturing category, which was the second hardest hit. The increases in the unemployment rate from 1991 to 1992 were due to the loss of Eastern and Pan Am Airlines, as well as major banks such as Southeast and Amcrifirst. Income Over the past few years, the average per capita personal income in Miami -Dade County has been slightly lower than the per capita income for Florida, as well as the nation. TABLE 2 PER CAPITA PERSONAL INCOME SELECTED YEARS (CURRENT $) Year 1995 -1996 1997 UNITED STATES 23,359 24,436 FLORIDA 23,139 MIAMI MSA 21,292 24,198 22,370 25,178 1998 25,993 24,932 25,610 23,161 24,223 Source U S Dept of Commerce, Bureau of Economic Analysis and Miami -Dade County Planning Department Tourism Table 3 reveals a steady increase in the number of tourists visiting Miami -Dade County since 1984. The number of international visitors increased approximately 100% from 1985 to 1995. Due to the soft domestic economy, the number of domestic visitors had declined from 1989 to 1993; however, since 1994 there has been a 3.1% average annual increase. QUINLIVAN APPRAISAL 11 TABLE 3 ESTIMATES OF MIAMI-DADE COUNTY TOURIST TRENDS I 1 INTERNATIONAL DOMESTIC TOTAL 1984 1,703,354 3,556,067 5,259,421 1990 3,455,000 4,617,500 8,072,500 1993 5,400,000 3,400,000 8,800,000 1994 5,028,700 3,728,600 8,757,300 1995 5,061,600 4,317,600 9,379,200 1996 5,113,200 4,462,000 9,5 75,200 1997 5,278,700 4,564,600 9,843,300 1998 5,268,100 4,468,700 9,736,900 Source: Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures Figures for 1997 indicate a record 9.842 million overnight visitors came to Miami -Dade County, a 2.8% increase from 1996. The total number of visitors decreased 1.1% from 1997 to 1998. Table 4 shows that the bulk of international visitors to Miami -Dade County originate from Central and South American Countries (46.2% in 1998), followed by European Countries (25.8% in 1998) and Caribbean Countries (13.9% in 1998). England and Germany accounted for the largest proportion of European visitors. In 1999 there were a total of 3,100,000 passengers passing through the Port of Miami and approximately 33,900,000 through Miami International Airport. During 1999, the number of Port of Miami passengers increased 3.2% from 1998, and Miami International Airport decreased .1% from 1998. QUINLIVAN APPRAISAL 12 TABLE 4 ESTIMATES OF INTERNATIONAL VISITORS BY REGION t REGION 1996 1997 1998 EUROPEAN COUNTRIES 25 0% 25 1% 25 8% CARIBBEAN COUNTRIES 14 6% 14.5% 13 9% CENTRAL AMERICAN COUNTRIES 7 7% 7 8% 7 5% SOUTH AMERICAN COUNTRIES 38 5% 38 5% 38 7% CANADA 11 6% 11 6% 11 0% OTHER COUNTRIES 2.5% 2 6% 3.1% TOTAL 100% 100% 100% Source Greater Miami Convention and Visitors Bureau, Tourism Facts and Figures There are an estimated 46,887 motel and hotel rooms in Greater Miami and the Beaches. The hotel - motel occupancy rate for 1998 of 71.4% was above the rates for 1995 and 1996 of 70.0% and 71.2%, respectively, but below the 1997 rate of 73.1%. Miami -Dade Financial Resources Over the course of the last decade, Greater Miami has evolved into a major international financial center. Domestic and international businesses find convenient access to a full array of services provided by locally -based state and national commercial banks, savings and loan associations, foreign banks, non -depository credit institutions, securities and commodities brokers and insurance companies. Greater Miami has the largest concentration of domestic and international banks south of New York City. With more than 90 percent of the state's foreign banks operating offices in Miami, this market dominates international banking in Florida. There are 43 international banking agencies, 13 Edge Act corporations and 4 Edge Act corporation branches operating in Greater Miami. Many of their banking customers are located in Latin America. QUINLIVAN APPRAISAL 13 Overall, about 150 domestic banks, savings and loans, foreign banks and Edge Act banks operate in Greater Miami. The greatest concentration is located along Brickell Avenue in downtown Miami. Transportation Miami -Dade County has an extensive expressway system with access to all points in the County. However, due to the rapidly increasing population, some of the expressways, especially 1-95, are becoming overburdened. In 1984 Miami -Dade County completed a 20.5 mile elevated rapid transit system. This system extends southward from downtown Miami to Dadeland, paralleling U.S. Highway 1 and northwesterly from downtown Miami to Hialeah. In conjunction with this system, there is a downtown people mover system which encircles the central business district of Miami and extends south to the Brickell area and north to the Omni area. Miami -Dade County is served by the CSX and Florida East Coast Railroads for freight and Amtrak Rail, Greyhound and Trailways Interstate bus lines for passenger service. Miami International Airport, one of the nation's largest and busiest, had approximately 33.9 million arrivals and departures in 1999. Moody's Investor Service, a major bond -rating company, recently ranked the airport Aa (the second highest rating an airport can enjoy). Only Los Angeles International Airport shares this ranking; no U.S. airport has ever attained the highest ranking of Aal. According to Moody's, a key factor in the ranking is the airport's "market value as an international gateway with its own strong organization -and -destination base". The airport is currently undergoing a $3.4 billion expansion. Miami has become a port of embarkation for airlines and ships bound for Central and South American Countries. The Port of Miami, besides being the largest passenger port in the nation, is also important as a cargo center with a 1999 annual tonnage of approximately 6,930,000, down from 7,050,000 in 1998. Miami's comprehensive transportation system and its strategic location have enabled it to become an important international transportation center, providing commercial access to Latin America and the Caribbean. Government Miami -Dade County is comprised of unincorporated areas, as well as thirty municipalities, the largest of which is the city of Miami. Miami -Dade County is governed under a modified two-tier metropolitan government. The purpose of this type government was to establish one governing body for the county, and to establish one supply of services such as fire, police, etc. for the county. The upper tier is the County, which provides broad "regional" or county functions, such as metropolitan planning, welfare, health and QUINLIVAN APPRAISAL 14 transit services. The twenty-nine municipalities represent the lower tier of government, providing a varying array of services within their jurisdictional boundaries. The County also maintains lower tier functions, such as the provision of municipal -type services, including police and fire, to the unincorporated areas and certain municipalities on a negotiated basis. The County operates under the Commission -Manager form of government. Legislative and policy - making authority is vested in the elected thirteen -member Board of County Commissioners; the Commission appointed County Manager is the chief administrator. Miami -Dade County has operated under the metropolitan form of government since 1957, when the Home Rule Charter was passed by the local electorate. Prior to Home Rule, the County had to rely on the State Legislature for the enactment of its laws. County government had not been able to respond to the tremendous demand for municipal services in this rapidly urbanizing area, which is larger than the State of Rhode Island or Delaware. The need to combine services duplicated by the County and numerous cities was also clearly evident. The Charter permitted the limited County government to reorganize into a general purpose "municipal - type" government capable of performing the full range of public functions into an area wide operation. Real Estate As of the fourth quarter of 1999, the Miami -Dade County Office Market contained approximately 30.4 million square feet of office space. Approximately 43.7% of this space is located in the Miami central business district and adjacent Brickell Avenue and 21.6% in the rapidly growing Airport West area. There was a decrease in the occupancy rate of office buildings in Miami -Dade County from 92% in 1981 to 77.6% in 1991. Since 1992, there was an increase in occupancy from 81.4% to 88.9% in the fourth quarter of 1999. There is an estimated two year supply of office space. Due to the oversupply of space during the early 1990s, many rental concessions had been given to tenants. Since there has been little new construction, the office market has shown improvement. Office rental rates in new buildings typically range from $14.00 to $30.00 per square foot. The low end of the range is for office space in the suburban markets. The upper end of the range is for first class office space in Downtown Miami, Brickell Avenue, Coconut Grove and Coral Gables. The Greater Miami Industrial Market, as of the Third Quarter of 1999, consisted of approximately 150,150,000 square feet of industrial space. The approximate percentage location of this space is as follows: QUINLIVAN APPRAISAL 15 AIRPORT WEST ` /u:P''TOTAL MARKET:PACE 28.0% HIALEAH/MEDLEY 12.1% CENTRAL DADE 12 9% MIAMI LAKES/NORTH DADE SOUTH DADE 22 4% 4% OTHER 12 6% TOTAL 100% The major use of industrial space is warehousing/distribution which accounts for approximately 65% of the occupied space. Manufacturing and high technology occupy the remainder of the space accounting for approximately 25% and 15% of the industrial space, respectively. The Miami Industrial Market experienced a gradual increase in the vacancy factor in the first three years of the 1980s. In 1983, Miami experienced a sharp increase in the vacancy factor with the county's occupancy falling from a high of 98% in 1980 to 85% in 1983. This sharp decrease was due to an oversupply of industrial space and a ten-year low absorption rate of 500,000 square feet. The heightened economic crisis in Latin America, causing a contraction of the import/export business, was also a major factor to the increase in vacancy rate. During 1986 and 1987, the county's vacancy rate for the overall Miami -Dade County industrial market for the third quarter of 1999 was 6.8%. Industrial rental rates generally range from $3.50 to $8.00 per square foot. The median sale price per square foot in 1989 for industrial space in Miami -Dade County was $31, but by the first quarter of 1995 it had decreased to $29.74 per square foot. In 1997, the median sale price for a warehouse reached an all time high at $40.57 per square foot, up 3.8% above the $39.07 paid in 1998. It is forecasted that the Miami -Dade County industrial market will be an area of steady growth and moderate absorption. The Airport West area is expected to experience the most growth due to its central location and availability of land. Vacancy rates will remain fairly constant. "Flex -Space" projects will continue to show growth and moderate absorption. The Airport West, North Miami -Dade and Hialeah/Medley markets will remain the most active. The number of single family residential permits decreased 1.7% from 5,140 in 1997 to 5,052 in 1998. Permits for 5,126 multi -family units were issued in 1998, up 14.7% from the 4,469 permitted during 1997. The average sale price of a new residence in Miami -Dade County in 1999 was $165,482 up 8.7% from $152,181 in 1998. QUINLIVAN APPRAISAL 16 According to data from the Department of Business and Professional Regulation, Miami -Dade County has over 250,000 licensed rental apartment units. Reinhold P. Wolff Quarterly Housing Report shows a vacancy rate of 2.8% in November of 1999, considerably lower than the 4.7% rate of November of 1999. The vacancy rate has been declining steadily since 1991, but the decline accelerated after August 1992; this is attributable to Hurricane Andrew. New suburban rental apartments have average rental rates of $752 per month for a one bedroom apartment and $1,017 per month for a two bedroom apartment. The condominium apartment market experienced an all-time high inventory of 15,722 units in October of 1986. The inventory has decreased to 6,548 units as of October of 1999. The high inventory caused the average sale price of a new condominium unit to decline from $112,604 in 1982 to $87,990 in 1987. However, the average sale price increased dramatically to $162,752 in 1991, declining to $130,545 in 1994 but again dramatically increasing to $223,200 in 1998. The Miami -Dade County retail market contains approximately 49.5 million square feet in buildings over 20,000 square feet. The major retail markets in Miami -Dade County include Hialeah, Coral Gables/South Miami -Dade (Aventura) and Kendall. Rental rates typically range from $10.00 to $25.00 per square foot with an average rate of $14.71 per square foot. The overall Miami -Dade County vacancy rate for 1999 was approximately 6.55%, slightly down from 7.48% in 1998. The vacancy level is lowest in super regional malls and highest in unanchored strip centers. Conclusions In the future, one of the principal growth areas for Miami -Dade County is expected to be the international sector. Miami -Dade County, because of its geographic location and excellent transportation facilities, is well -suited to attract both business individuals and tourists from Latin America. It is already one of the principal shopping markets for Central and South Americans visiting the United States and one of the principal export points for goods and services destined for Latin America. A major consideration to future real estate development in Florida will be compliance with the new State's concurrency law mandated by the Growth Management Act. This law requires developers to build sufficient infrastructure. Concurrency requires that basic facilities and services be in place or the money to build the same be available before the construction of new development is granted approval. The existence of major financial institutions, retail outlets, corporations and other business entities, coupled with its geographic location, transportation systems and planned international trade centers give Miami -Dade County an excellent opportunity for continued growth as an international center. QUINLIVAN APPRAISAL 17 NEIGHBORHOOD DATA The subject property is located within the Village of Key Biscayne in Miami -Dade County, Florida. Key Biscayne is an island located south and east of the City of Miami. The east side of Key Biscayne fronts along the Atlantic Ocean. The west side of Key Biscayne fronts on Biscayne Bay. Access to Key Biscayne is via the Rickenbacker Causeway. The Rickenbacker Causeway is a four lane divided road that crosses three fixed bridges. Key Biscayne was a part of the unincorporated area of Dade County until June of 1991 when it became incorporated. Key Biscayne is approximately four miles in length and approximately one mile in width. The north end of Key Biscayne contains Crandon Park, a Miami -Dade County public park. Cape Florida State Park occupies the southern end of the key. This park has been left primarily in its natural state with beaches along the Atlantic Ocean. The center part of the island is comprised of single family residences, multi -family apartments, hotels and commercial facilities. The Village of Key Biscayne was incorporated on June 18, 1991. The village covers approximately 1.25 square miles. The Village has a Council -Manager form of government. Large ocean fronting condominiums located east of Crandon Boulevard include Commodore Club (570 units), Towers of Key Biscayne (538 units), Mar Azul (127 units), Casa del Mar (237 units), The Sands (120 units), and Key Colony (1,050 units). These buildings were constructed from the 1960s through the 1980s. The area west of Crandon Boulevard is comprised of single family residences. The majority of these homes were constructed in the early 1950s. Sale prices of these homes range from $325,000 to $850,000. Older residences are being totally renovated or removed and replaced with larger, modern residences. Cape Florida, a water fronting subdivision of newer single family residences, located at the south end of the center section, has sale prices ranging from $1,000,000 to over $4,000,000. The west side of Crandon Boulevard between Harbor Drive and West Mashta Drive, contains commercial properties. These properties include shopping centers (Harbor Plaza, Key Biscayne Shopping Center, The Square at Key Biscayne and L'Esplanade), service stations, restaurants, bank/savings and loan, and office buildings. Key Biscayne experienced a high growth rate during the early and mid -1970s. During these years, Key Biscayne grew in population at an annualized rate of 9.2%. The current full-time population on Key Biscayne is estimated to be about 9,350. QUINLIVAN APPRAISAL 18 During 1980-1985, the growth rate of Key Biscayne had declined sharply. Accordingly, there was a decrease in demand for residential and commercial properties with a decline in values over these years. However, during the later part of the 1980s and the 1990s, the values of residential properties have risen rapidly. At this time, the island is almost entirely developed except for two multi -family residential sites (the former Key Biscayne Hotel site and the Sheraton Royal Biscayne Hotel site) which are currently undergoing development. The Ocean Club is being developed on a 52 -acre oceanfront site with 11 mid- and high-rise towers to contain a total of approximately 800 units. Unit prices range from $370,000 to over $2,000,000. The other site is being developed with a project known as Grand Bay resorts and Residences. In addition to a first class hotel, this development features two condominium towers, one of 135 units and 14 stories and one of 90 units; and 57 single-family residences. Apartment units range in sale price from $692,000 to $3,300,000. The sale prices of the residences begin at $1,000,000. QUINLIVAN APPRAISAL 19 QUINLIVAN APPRAISAL SITE MAP 9f 9) 89.0)‘, S T. 1 x'592 44 I�o600 90 r ✓7tt :NID 50 .Z,.Sec_32,Z\ 54S .42E Se,c.S' T\'\\ ). R.42E. TRAc r ' yaroty f' eso,72 el a/ 7.5P i 4)" 333 3 70 MATHESON t -P 3 4 - 3 4 80 `City Services Stati Corp /20 Tr 4 /B4a vx i4 /20 Q- ¢45 O ' 6.4 F #1 \ \ ROYAL BISCAYNE `ir I a' '•i !CRANDOF <I '• _,,TWR$ l '7'. / h -77 its Y F: •SCAYNE I.MBASSADhRE LL SP I //5/ 7 /37 3 Pf , PRESIDENTIL GALEN 1°' SSA j E ENID H O U' KE' LTA. ESL sy 637 3 A r C' A 7 A Q QUINLIVAN APPRAISAL SITE DATA Dimensions and Shape: The site is slightly irregular in shape. The site fronts for 96.9 feet, more or less, on the north right-of-way line of West McIntyre Street. The east property line thence extends northerly along the west right-of-way line of Crandon Boulevard for a distance 122.45 feet. The north property line thence extends westerly for 145.0 feet. The west property line thence extends southerly for 105.0 feet. Area: 12,705 Square Feet or .29 Acre (Source: Miami -Dade County Property Appraiser's Office.) Topography and Drainage: The site is level and approximately at street grade. Flood Zone: Map N° 125098 0281 F "AE" Special flood hazard area inundated by the 100 -year flood; base flood elevation nine to ten feet. Soil and Subsoil: The immediate area of the subject site appears to have no unusual soil or subsoil conditions. Unusual conditions would be brought out by test borings. Utilities: Water: Miami -Dade Water and Sewer Authority Sewer: Miami -Dade Water and Sewer Authority Electricity: Florida Power & Light Company Telephone: BellSouth Telephone Company QUINLIVAN APPRAISAL 20 Street Improvements: Crandon Boulevard is asphalt paved with a dedicated width of 120 feet. Crandon Boulevard contains two north bound and two south bound lanes with a landscaped median. Sidewalks, curbs, and street lighting are in place along Crandon Boulevard. West McIntyre Street is asphalt paved with a dedicated width of 50 feet. West McIntyre Street contains one east bound and one west bound lane. QUINLIVAN APPRAISAL 21 QUINLIVAN APPRAISAL ZONING Under Ordinance of Village of Key Biscayne. Classification: BU -1 Neighborhood Business District The purpose of the district is to provide for retail and service convenience facilities which satisfy the essential and frequent needs of the adjacent residential neighborhood. Permitted Uses include antique shops, apparel stores, art stores, banks, beauty parlors, bakery shops, barber shops, bicycle shops, ice cream shops, drugstores, grocery stores, hardware stores, jewelry stores, leather shops, newsstands, office buildings, paint stores, restaurants, schools, shoe stores, sporting goods stores, tailor shops, tobacco shops, and variety stores. Building Regulations Maximum Floor Area Ratio: .40 at one story increased .11 for each additional story Maximum Building Height: Two stories and 35 feet Minimum Open Space: Up to one acre - One to five acres - Five to 20 acres - More than 20 acres - Offstreet Parking: Commercial - Restaurants - Office - Building Setbacks: Front - Side and rear - 18% of lot area 16% of lot area 14% of lot area 12% of lot area one space per 300 square feet one space per 50 square feet of dining area and one space per four employees one space per 400 square feet 20 feet 10% of lot width greater than five feet, but not to exceed 7.5 feet QUINLIVAN APPRAISAL 22 Minimum Lot Frontage: Old subdivision - 50 feet New subdivision - 50 feet and 75 feet for corner site Minimum Lot Area: Old subdivision - New subdivision - 5,000 square feet 5,000 square feet and 7,500 square feet for corner site Maximum Lot Coverage: 40% QUINLIVAN APPRAISAL 23 HIGHEST AND BEST USE QUINLIVAN APPRAISAL HIGHEST AND BEST USE Fundamental to the concept of value is the theory of highest and best use. Land is valued as if vacant and available for its highest and best use. The Appraisal Institute in The Appraisal of Real Estate, Ninth Edition, defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and results in the highest value. Land has limited value unless there is a present or anticipated use for it; the amount of value depends on the nature of the land's anticipated use, according to the concept of surplus productivity. Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination, is generally regarded as the highest and best use of the land as though vacant. The highest and best use of a property as improved refers to the optimal use that could be made of the property including all existing structures. The implication is that the existing improvement should be renovated or retained as so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. In estimating the highest and best use there are essentially four stages of analysis: 1. Possible Use. What uses of the site being appraised are physically possible? 2. Permissible Use (Legal) What uses are permitted by Zoning and Deed Restriction, if any? 3. Feasible Use. Which possible and permissible uses will produce a net return to the owner of the site? 4. Maximally Productive. Among feasible uses, which use will produce the highest net return to the owner of the site? QUINLIVAN APPRAISAL 24 The highest and best use of the land (or site), if vacant and available for use, may be different from the highest and best use of the improved property. This is true when the improvements are not an appropriate use, but make a contribution to the total property value in excess of the value of the site. The following four point test must be met in estimating the Highest and Best Use. The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. These tests have been applied to the subject property. In arriving at the estimate of Highest and Best Use, the subject sites were analyzed as vacant and available for development, and as improved. Possible Use The subject site has frontage on Crandon Boulevard and West McIntyre Street. Therefore, the site has adequate access and good exposure on a major traffic artery. The site is generally rectangular in shape, having good functional utility. All necessary utility services are available along existing street right-of-ways. The sites are filled to street grade and do not appear to have any drainage or subsoil deficiencies. The site is approximately 12,705 square feet in size, which equates to .26 acre. The physical characteristics of the subject site would restrict any use of the site to a small scale development. Permissible Use Permissible or legal uses are those uses which are permitted by zoning or deed restrictions. There are presently no known private deed restrictions of record. The subject site is zoned for business use. The zoning of the site permits retail and service establishments, offices and restaurants. Feasible Use/Maximally Productive Use The physical characteristics and zoning of the subject sites permit a wide range of potential uses. The possible and permissible uses of the subject sites include retail and service establishments, offices and restaurants. Similar properties fronting along the west side of Crandon Boulevard include shopping centers, service stations, restaurants, bank/savings and loan associations and office buildings. These commercial facilities are retail and service establishments serving the needs of the residents of Key Biscayne. QUINLIVAN APPRAISAL 25 In 1980 and 1981, two shopping centers were constructed on Key Biscayne. The Square at Key Biscayne, located northerly of the subject property, contains approximately 50,400 square feet. L'Esplanade, located at the south end of Key Biscayne, contains approximately 32,400 square feet. Both shopping centers were marketed as condominiums. In 1990, the English Pub property was removed and replaced with a two-story shopping center known as Key Biscayne Galleria. This building contains approximately 52,000 square feet. There are three office buildings on Key Biscayne which contain a total of approximately 80,000 square feet. The demand for office space is somewhat limited. Due to Key Biscayne's isolated location, office users are primarily Key Biscayne residents. The occupancy rate for the Miami -Dade County office market is estimated to be 87%. Conclusion (As If Vacant) Based on the above factors, the Highest and Best Use of the sites, as if vacant, is estimated to be for commercial usage. Highest and Best Use, As Improved The subject site is improved with a one-story service station constructed in 1952. The building contains approximately 1,584 square feet. The building is in fair condition. Similar older buildings are being removed and replaced with retail or office usage. Four of the six sales in this report were improved with service stations but purchased for land value. The indicated land -to -building ratio of the subject site is 8 to 1. Typical land -to -building ratios of new retail developments are about 3 to I and new offices are about 1 to 1. The current land -to - building ratio of the subject property would indicate that the existing building is an under -utilization of the site. QUINLIVAN APPRAISAL 26 SCOPE OF THE APPRAISAL QUINLIVAN APPRAISAL SCOPE OF THE APPRAISAL The value of a site can be estimated by various methods which include Direct Sales Comparison, Allocation, Extraction, Development Approach, Land Residual or Ground Rent Capitalization. However, the Direct Sales Comparison Approach is the most preferred and utilized technique when sales of comparable sites are available. The other methodologies are indirect techniques which are generally used when an area is primarily built-up and sales of comparable sites are scarce. The Direct Sales Comparison Method of valuing the subject sites is relied on due to the availability of recent land sales. In the Direct Sales Comparison Method, sales of similar recently sold sites with a similar highest and best use as the subject site are analyzed, compared and adjusted by time, property characteristics and location to indicate the Market Value of the subject sites as though unimproved. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. Data related tot he subject property was derived from various sources including but not limited to the Miami -Dade County Property Appraiser's Office, Miami -Dade County plats as complied by First American Real Estate Solutions, Inc., FEMA flood zone maps, Land Development Regulations of the Village of Key Biscayne and tax roll information provided by ISCNET. Comparable sales sources include First American Real Estate Solutions, Inc., on-line computer service provided by ISCNET, Board of Realtors' List Service, Tri-County Clipping Service and Landata, Inc. Sales prices are typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent or attorney tot he transaction. QUINLIVAN APPRAISAL 27 LAND VALUE ANALYSIS QUINLIVAN APPRAISAL LAND VALUE A land value estimate is concluded by comparing the subject sites to comparable land sales. Generally, the comparable land sales are adjusted by time, property, and location to indicate the Market Value of the subject sites as though unimproved. This process is known as the Direct Sales Comparison Method. The Direct Sales Comparison Method is a process of analyzing sales of similar recently sold land parcels in order to derive an indication of the most probable sales price of the sites being appraised. The reliability of this approach is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and the absence of non -typical conditions affecting the sale. The following pages contain sales of similar land sites which have recently sold. Several other sales are considered by the appraisers, but are not included because there is too wide a difference in physical factors, location and time. In comparing the sales to the subject, consideration is given to factors of time, location, property characteristics, and terms and conditions of the sale. As indicated previously, the commercial area of Key Biscayne is located primarily on the west side of Crandon Boulevard between Harbor Drive on the north and West Mashta Drive on the south, a distance of approximately one mile. This is a relatively small commercial area with few recent land sales. Because there have been few recent commercial land sales on Key Biscayne, older commercial land sales, formerly used as service stations, in similar communities are also analyzed. Sale l is located on Crandon Boulevard, approximately three blocks north of the subject. This 61,420 square foot site sold in March of 1997 for $2,300,000 or $37.45 per square foot. This site was purchased by an adjacent owner. This site was vacant at the time of sale. A three -level retail/office building to contain 39,000 square feet is planned for the site. Sale 2 is located on Crandon Boulevard, approximately five blocks north of the subject. This 30,000 square foot site sold in April of 1997 for $960,000 or $32.00 per square foot. This site is an interior block location with frontage on Crandon Boulevard. A four-story office building has been constructed on the site. Sale 3 is located on Sunset Drive at S.W. 54th Court, just east of the Central Business District of South Miami, approximately eight miles northwest of the subject site. This 22,840 square foot site sold in October of 1997 for $1,250,000 or $54.73 per square foot. A Texaco service station, constructed on 1968, was located on the site at the time of sale. The building was totally gutted, remodeled and expanded into a retail store building. QUINLIVAN APPRAISAL 28 Sale 4 is located on Crandon Boulevard at Wood Drive, approximately two blocks south of the subject property. This site is improved with an approximate 25,000 square foot former grocery store and retail store building. This building was constructed in 1965 and is in fair condition. Based on the total sale price of $3,150,000, the indicated land value is $42.54 per square foot. Sale 5 is located on Crandon Boulevard at West Mashta Drive, approximately three blocks south of the subject site. This 20,150 square foot site sold in April of 1999 for $750,000 or $37.22 per square foot. There is a former service station on the site which has been closed since 1986. The building is currently being utilized by a florist/plant shop. The property was purchased based on land value. Sale 6 is located on US Highway 1 at S.W. 72nd Avenue in the Village of Pinecrest, approximately nine miles west of the subject property. This 48,988 square foot site is under contract for $2,450,000 or $50.01 per square foot. A Chevron service station, constructed in 1965, was located on the site. The building has been removed and will be replaced with a retail store building. A detailed profile of each sale, a plat of each sale, a summary of the sales, a sales map and a value conclusion follows herein. QUINLIVAN APPRAISAL 29 LAND SALE 1 ,-s2 ov E s 4!/ as 621 x3/112' 75 5 7S t1 i (1 3 7 /074. l I7/ 7 II/ 7• 4+ Trs \MAC FARLAN ES 7.:5 9/-67 ` /%'S. /2/47f d/7 CR�DON PARK MOIrE S. I. 0 Ir QUINLIVAN APPRAISAL LAND SALE 1 DATE: March 14, 1997 PRICE: $2,300,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 17568, Page 1149 FOLIO NUMBER: 24-4232-002-0090 GRANTOR: 200 Palms Corporation GRANTEE: Tesaurus Holdings, Inc. LEGAL: South 150 feet of the North 350 feet of Tract 3, MATHESON ESTATES, according to the plat thereof, as recorded in Plat Book 46, Page 86, of the Public Records of Dade County, Florida. LOCATION: 200 Crandon Boulevard Key Biscayne, Florida SITE DESCRIPTION: Dimensions: 150 Feet x 409.5 Feet Size: 61,420 Square Feet 1.41 Acres Zoning: BU -1, Neighborhood Business Current Use: Vacant UNIT PRICE: $37.45 per Square Foot FINANCING: First mortgage from Colonial Bank of $2,000,000. REMARKS: This site is currently vacant. The buyer is an adjacent owner. A three -level retail/office building to contain 39,000 square feet is planned for the site. QUINLIVAN APPRAISAL 30 LAND SALE 2 n�, .f / / / ,gy f Lt1l i / � I r L • ''_. eJ / _ (- ,, ; fi ' �y//J $ �I -. _� T9. L _— i - e\ -:: ),,,).'"*".. f — JRCN / ' / ``ir N4/4 L ��--- N �s — �� / r� �-- ) ,y I ;,.K14F( L ' ---, LT , „i C.? 1,,,f • • • -1-cam / , / / / T/ i /' / ,T6 / sli -;fl F Sp 7 L _L QUINLIVAN APPRAISAL LAND SALE 2 DATE: PRICE: TYPE INSTRUMENT: RECORDATION: FOLIO NUMBER: GRANTOR: GRANTEE: LEGAL: LOCATION: SITE DESCRIPTION: Dimensions: Size: Zoning: Current Use: UNIT PRICE: FINANCING: REMARKS : April 14, 1997 $960,000 Special Warranty Deed O. R. Book 17600, Page 2182 24-4232-002-0060 Anna Matheson, Robert H. Matheson, Dorothy Cuayo & Christine Anderson L D Pankey Dental Foundation, Inc. The North 150 feet of the West 200 feet of Tract 2, MATHESON ESTATES, according to the plat thereof, as recorded in Plat Book 46, Page 86, of the Public Records of Dade County, Florida. 1 Crandon Boulevard Key Biscayne, Florida 150 Feet x 200 Feet 30,000 Square Feet 0.69 Acres BU -1, Neighborhood Business Office building under construction $32.00 per Square Foot Cash. A four-story office building has been constructed on the site. QUINLIVAN APPRAISAL 31 LAND SALE 3 e e ?1 UP 1 . 7 1 to K U '. 0 REMO u !t 218 y hi = I R^5 II i fO , . . • . 21 •aI 1T� -:7 1 14 ,:�, i ;2 \fit QUINLIVAN APPRAISAL LAND SALE 3 DATE: October 29, 1997 PRICE: $1,250,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 17852, Page 4235 FOLIO NUMBER: 03-4130-009-1560 GRANTOR: David C. Walters, et ux GRANTEE: Sir Matrix Paws, Inc. LEGAL: The West 9 feet of Lot 23, all Lots 24-27 and East 19.4 feet of Lots 28, Block 205, CORAL GABLES RIVIERA SECTION 14, according to the plat thereof, as recorded in Plat Book 28, Page 32, of the Public Records of Miami -Dade County, Florida. LOCATION: 1515 Sunset Drive Coral Gables, Florida SITE DESCRIPTION: Dimensions: 100 Feet x 228.4 Feet Size: 22,840 Square Feet 0.52 Acres Zoning: CB Current Use: Service Station UNIT PRICE: $54.73 per Square Foot FINANCING: Cash. REMARKS: The site was improved at the time of sale with a closed service station. The building was gutted and converted to a store building with two stores. QUINLIVAN APPRAISAL 32 LAND SALE 4 P., DR. :11 = �i .� 2_a. \ TRY I -ay P K G m14 ft-: �, E _ (63.6 9) E WOOD Tr a, S " • QUINLIVAN APPRAISAL LAND SALE 4 DATE: June 1, 1998 PRICE: $3,150,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 18131, Page 1089 FOLIO NUMBER: 24-5205-001-0080 GRANTOR: John Catsimatidis GRANTEE: Coolidge - South Market Equities Ltd. LEGAL: Lengthy legal. A portion of Tract C, BISCAYNE KEY ESTATES, according to the plat thereof, as recorded in Plat Book 50, Page 61, of the Public Records of Dade County, Florida. LOCATION: 724 Crandon Boulevard Key Biscayne, Florida SITE DESCRIPTION: Dimensions: Irregular Size: 74,052 Square Feet 1.7 Acres Zoning: BU -1, Neighborhood Business Current Use: Grocery store and retail store UNIT PRICE: $42.54 per Square Foot FINANCING: New First Mortgage with Capital Trust REMARKS: This site is improved with a one-story former grocery store and retail building. The building contains approximately 25,000 square feet and was constructed in 1965. The building is in fair condition. This property sold in January of 1986 for $2,616,400. QUINLIVAN APPRAISAL 33 LAND SALE 5 J $ 4 • , 1_ 7 # 1 o if; 100 IS elf \ M 0 9 ' J J I1f • 104 • '44 WO LLWO t S • 10 Ice 90 7 7 J N `* 100 ` — r —oo 111 .. QUINLIVAN APPRAISAL LAND SALE 5 DATE: April 16, 1999 PRICE: $750,000 TYPE INSTRUMENT: Warranty Deed RECORDATION: O. R. Book 18571, Page 1258 FOLIO NUMBER: 24-5205-001-0100 GRANTOR: Nomar Investments, Inc. GRANTEE: TRC Real Estate Investments, Inc. LEGAL: Lengthy legal - A portion of Tract D, BISCAYNE KEY ESTATES, as recorded in Plat Book 50, Page 61, of the Public Records of Miami -Dade County, Florida. LOCATION: 800 Crandon Boulevard Key Biscayne, Florida SITE DESCRIPTION: Dimensions: Irregular Size: 20,150 Square Feet 0.463 Acres Zoning: BU -1, Neighborhood Business Current Use: Florist Shop (former service station) UNIT PRICE: $37.22 per Square Foot FINANCING: Purchase money mortgage of $450,000. REMARKS: An older service station which is presently used as a flower shop is located on this site. Said improvements are considered to contribute no value to the purchase price. This site sold previously in August of 1999 for $641,000 or $31.81 per square foot. QUINLIVAN APPRAISAL 34 LAND SALE 6 TR "A•"u SUCHMANA, PARK ‘92t rt4/ 2 K s 1925 /42 t% h / a QUINLIVAN APPRAISAL LAND SALE 6 DATE: Under contract (expected to close in September 2000) PRICE: $2,450,000 TYPE INSTRUMENT: Special Warranty Deed RECORDATION: O. R. Book N/A, Page N/A FOLIO NUMBER: 20-5002-000-0222 GRANTOR: Chevron USA Inc. GRANTEE: Not Available LEGAL: Lengthy legal. A portion of SW'/4 of NW'/4 of NE'/4 of Section 2, Township 55, Range 40, Miami -Dade County, Florida LOCATION: 9095 S. Dixie Highway Pinecrest, Florida SITE DESCRIPTION: Dimensions: Irregular Size: 48,988 Square Feet 1.12 Acres Zoning: BU -1A Current Use: Vacant UNIT PRICE: $50.01 per Square Foot FINANCING: New 1st Mortgage REMARKS: A Chevron service station constructed in 1965 was located on the site. The building was removed and will be replaced with retail stores. QUINLIVAN APPRAISAL 35 COMPARABLE LAND SALES rn Springs 12111 si Perimeter Rd NW 7th _ t W Fla ter SALE 3 1515 Sunset Drive .Coconut Grove SALE 2 Crandon Boulevard ANTIC ami Beach O CEAN\\ SUBJECT 530 Crandon Boulevard SALE 5 800 Crandon Boulevard SALE 1 200 Crandon Boulevard SALE 4 '24 Crandon Boulevard QUINLIVAN APPRAISAL SUMMARY OF LAND SALES CHARACTERISTIC SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 DATE OF SALE 3/14/97 4/14/97 10/29/97 6/1/98 4/19/99 Under contract SALE PRICE S2,300,000 $960,000 $1,250,000 $3,150,000 $750,000 S2,450,000 RECORDATION 17568/1149 17600/2182 17852/4235 18131/1089 18571/1258 N/A ADDRESS 530 Crandon Blvd. 200 Crandon Blvd. 1 Crandon Blvd. 1515 Sunset Drive 724 Crandon Blvd 800 Crandon Blvd. 9095 S. Dixie Hwy LOCATION 3 Blocks N 5 Blocks N 8 miles northwest 2 Blocks S 3 Blocks S 9 miles west SIZE (SQ. FT.) 12,705 61,420 30,000 22,840 74,052 20,150 48,988 SIZE (ACRES) 26 1.41 0.69 .52 1 7 463 1.12 ZONING AT TIME OF SALE BU -1 BU -1 BU -1 CB BU -1 BC -I BU -1A PRESENT USE Service Station Vacant Office Building Retail store building Retail building Former service station Vacant PRICE PAID/SQ. FT. S37.45 $32.00 $54.73 $42.54 537 22 550.01 LAND VALUE Conclusion The sales range in unit price from $32.00 to $54.73 per square foot of land area. The sales range in time from March of 1997 to a current contract. There has been an increasing trend in prices over this time period. The sales were financed with conventional loans from lending institutions at market interest rates or purchase money mortgages at market interest rates. Adjustments for financing were therefore not required. Four of the sales (Sales 1, 2, 4 and 5) are located on Crandon Boulevard within a five block radius of the subject property. These sales and the subject property are similarly zoned BU -1. Sales 4 and 5 contained older building improvements at the time of sale but were purchased primarily for land value. The unit price of Sale 1 at $37.45 per square foot should indicate a lower limit of the value of the subject property. This site was vacant at the time of sale. This sale is similar in zoning but larger in size and older in time. The unit price of Sale 2 at $32.00 per square foot should also indicate a lower limit of the value of the subject property. This site is larger in size, slightly inferior in location and older in time. The unit price of Sale 3 at $54.73 per square foot should be fairly indicative of the value of the subject site. While this site is located further away from the subject site, it is located in a similar area - the Central Business District area of South Miami. The site also contained an older service station on the property at the time of sale. The unit price of Sale 4 at $42.54 per square foot should indicate a lower limit of the value of the subject site. The site contained substantial building improvements which contributed little, if any value, to the property. However, this is a much larger site; generally, a larger site will sell at a lower unit price. This sale is also older in time. The unit price of Sale 5 at $37.22 per square foot should reflect a lower limit of the value of the subject site. This site is similar in zoning and land size but its location further south on Crandon Boulevard and is considered inferior to the location of the subject property. The unit price of Sale 6 at $50.01 per square foot should be fairly indicative of the value of the subject site. Similar to Sale 3, this site is located further away, but located in a similar community. The site also contained a service station on the site which was removed and will be replaced with a retail store building. QUINLIVAN APPRAISAL 36 Based on the above analysis of the land sales, the subject site is estimated to have a value of $50.00 per square foot: 12,705 Sq. Ft. x $50.00 per Sq. Ft. = $635,250 Land Value Indication (rounded) = $635,000 QUINLIVAN APPRAISAL 37 QUINLIVAN APPRAISAL ASSUMPTIONS AND LIMITING CONDITIONS This Appraisal Report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. If no survey has been furnished to the appraiser, all measurements have been confirmed either in the field, in the plat book or by other reliable sources and are presumed to be accurate. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and considered in the Appraisal Report. 9. It is assumed, unless a study has been provided otherwise, that no hazardous material such as asbestos, urea formaldehyde or other toxic waste exists in the property. The existence of a potentially hazardous material could have a significant effect on the value of the property. QUINLIVAN APPRAISAL 38 10. In reference to proposed construction, the real estate taxes and other expenses are estimated. These amounts are not guaranteed. 11. It is assumed in the valuation of the subject land site, unless a compliance letter has been furnished to us, that the State of Florida Growth Management Act does not prevent the issuance of a building permit. 12. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. l 3. It is assumed that the utilization of the land and improvements is within the boundaries of property lines of the property described and that there is no encroachment or trespass unless noted in the report. This Appraisal Report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation of this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety. 3. The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. QUINLIVAN APPRAISAL 39 QUALIFICATIONS OF THE APPRAISER J. MARK QUINLIVAN Experience: Engaged in the field of real estate appraising since 1972. Associated with F. Robert Quinlivan, MAI, from 1972 to 1985. Currently President of Quinlivan Appraisal, P.A., a Real Estate Appraising and Consulting Firm, established in 1964. Graduate: University of Notre Dame BBA - Bachelor of Business Administration (Major in Finance and Business Economics) University of Maryland MBA - Master of Business Administration (Concentration in Finance) University of Miami Law School JD - Juris Doctor (Concentration in Real Estate and Taxation) Florida International University MSM - Master of Science in Management (Major in Real Estate) University of Miami MALS - Master of Arts in Liberal Studies (Humanities) Professional Affiliations: Member of the Appraisal Institute (MAI N° 5791) Member of the Florida Bar (N° 239992) Real Estate Broker, State of Florida (N° 0125264) Certified General Appraiser, State of Florida, License N° RZ0000112 QUINLIVAN APPRAISAL 40 Qualified as an Expert Witness in the Following Courts: Miami -Dade, Broward, Palm Beach and Monroe County Circuit Courts United States Bankruptcy Court United States District Court Other Activities: Appraiser Special Master (1978 - 1980), Miami -Dade County Property Appraisal Adjustment Board Past President - Miami Chapter N° 71, Society of Real Estate Appraisers (1983 - 1984) Past President - South Florida Chapter N° 24, Appraisal Institute (1988) Past Governing Councilor of the American Institute of Real Estate Appraisers (1990) Young Advisory Council of Society of Real Estate Appraisers (1979 and 1980) Editorial Review Board (1981 - 1991) TIIE REAL ESTATE APPRAISER AND ANALYST published quarterly by the Society of Real Estate Appraisers Recent Publications: "Non -Conforming Use Properties: The Concept of Positive Economic Obsolescence", The Appraisal Journal, January 1981, Pages 45-51. (Arthur A. May Memorial Award 1982). QUINLIVAN APPRAISAL 41 Quinlivan Appraisal has prepared Appraisal Reports for the following: Institutions and Corporations: American Savings of Florida Archdiocese of Miami Atlantic Security Bank The Bank of Coral Gables Banco Atlantico Banco Industrial de Venezuela Banco Santander International Barnett Bank Barry University Ben Franklin Savings Bessemer Trust Company Capital Bank Central Bank Chevron Oil Company Chase Manhattan Bank Chase Federal Bank Chemical Bank Citibank Citicorp Savings City National Bank of Miami Consolidated Bank Coral Gables Federal Savings and Loan Association County National Bank Crown Life Insurance Company Eagle National Bank East Little Havana Development Corporation Eastern National Bank Equibank of Pittsburgh Espirito Santo Bank First Nationwide Bank First Union Bank Florida Power and Light Company Hemisphere National Bank Intercontinental Bank International Bank of Miami, N.A. Jefferson Bank Jewish Home for the Aged, Inc. QUINLIVAN APPRAISAL 42 Marine Midland Bank McCaughan Mortgage Company, Inc. McDonalds Corp. Mega Bank Miami -Dade Water and Sewer Authority NationsBank Northern Trust Bank of Florida Ocean Bank Pacific National Bank Ready State Bank Resolution Trust Corporation Savings of America Shell Oil Company Skylake State Bank SunTrust Bank Swire Properties Texaco Terremark Totalbank Trade National Bank Trust for Public Lands UniBank Universal National Bank University of Miami Governmental Agencies: City of Coral Gables City of Hialeah City of Miami City of Miami Beach City of Miramar City of North Miami Beach Miami -Dade County Aviation Department Miami -Dade County Department of Development & Facilities Management Miami -Dade County HUD Miami -Dade County Property Appraisal Adjustment Board Miami -Dade County Public Schools Miami -Dade County Public Works Department Miami -Dade County Transportation Administration Federal Deposit Insurance Corporation (FDIC) QUINLIVAN APPRAISAL 43 Miami -Dade Water & Sewer Department South Florida Water Management District State of Florida, Department of Community Affairs State of Florida, Department of Corrections State of Florida, Department of Environmental Protection State of Florida, Department of Insurance State of Florida, Department of Rehabilitation and Liquidation State of Florida, Department of Transportation Town of Golden Beach United States Army Corps of Engineers United States Department of Commerce United States Department of the Interior United States General Services Administration Village of Key Biscayne Law Firms: Cole, Davidson, Carter, Smith, Salter & Barkett, P.A. Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. Dubbin, Berkman, Bloom & Karan Floyd, Pearson, Richman, Greer, Weil, Brumbaugh & Russomanno, P.A. Shutts & Bowen Kelley, Drye & Warren Blackwell & Walker Steel, Hector & Davis Mershon, Sawyer, Johnston, Dunwody & Cole Sullivan, Admire & Sullivan, P.A. Types of Properties Appraised: Single Family Residences Apartment Buildings Office Buildings Retail Stores Shopping Centers Condominium Apartment Buildings Golf Courses Residential Subdivisions Automobile Dealerships Vacant Land Hotel/Motels Warehouses Nursing Homes Mobile Home Parks Schools Service Stations Marinas Wetlands QUINLIVAN APPRAISAL 44