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LTC 051-2020 Housing Authority Withdraws Parking Reduction Request MIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC# 051-2020 LET % R TO COMMISSION TO: Mayor Dan Gelber and Members •1 the City ommission FROM: Jimmy L. Morales, City Manager DATE: January 23, 2020 SUBJECT: Housing Authority Withdraws P• rking Reduction Request This Letter To Commission is to share with you correspondence from the Housing Authority of the City of Miami Beach (HACMB) in which the agency formally withdraws its request for a reduction in parking requirements for its North Beach lots as previously heard by the Finance and Economic Resiliency Committee (FERC). As you may recall, the Housing Authority owns several properties in North Beach which have yet to be developed: • 1144 Marseille Drive (22 units projected) • 165 - 185 South Shore Drive (40 units projected) • 280 —330 South Shore Drive (50 units projected) The Housing Authority originally requested a reduction in parking requirements from 0.50 spaces per unit to 0.25 spaces per unit. However, in correspondence received from Mike O'Hara, Director of Housing Development Programs for the Housing Authority, this request is being formally withdrawn. A copy of the correspondence is attached. The Housing Authority has also advised that it is calling a special workshop of its board to review and consider the possibility of selling the North Beach lots and using the sale proceeds to acquire properties closer to mass transit as suggested at the January 13, 2020 FERC meeting. The Housing Authority has tentatively scheduled this workshop for February 25, 2020 which is after the February FERC meeting. A copy of the appraisal that was requested at FERC is attached herein. Finally, the Housing Authority asserted that it would like to explore the reduction of City development fees. This topic is scheduled to be heard at the FERC meeting tentatively scheduled for February 21, 2020. For more information, please see me or contact Maria Ruiz, Department Director, Office of Housing & Community Services. JLM/JR/MLR/ 1 Ruiz, Maria Subject: FW: FERC Request From: Mike O'Hara<Mike@hacmb.org> Sent: Wednesday,January 15, 2020 5:38 PM To: Ruiz, Maria <MariaRuiz@miamibeachfl.gov> Cc:Tarre, Alba <AlbaTarre@miamibeachfl.gov>; Cabrera, Cristina <CristinaCabrera(a@miamibeachfl.gov>; Rubio, Marcela <MarcelaRubio@miamibeachfl.gov>; Miguell Del Campillo<miguell@hacmb.org> Subject: RE: FERC Request Importance: High Good afternoon Maria, As discussed previously, the HACMB intends to develop its North Beach properties utilizing the existing parking code requirements. Therefore, the proposed reduction of parking requirements can be withdrawn. The proposed reduction of fees for affordable housing will be beneficial to these initiatives. We look forward to continuing this discussion at the February FERC meeting. The request for the HACMB to consider selling its vacant land properties in order to create units closer to mass transit is being forwarded to the HACMB Board for discussion. Please let me know if you have any questions. Thanks, Mike Michael O'Hara,Director of Housing Development Programs Housing Authority of the City of Miami Beach(HACMB) 200 Alton Road,Miami Beach,Florida 33139 Telephone: (305) 532-6401, ext. 3033 /HACMB Main Fax: (305)674-8001 /mike(a hacmb.org 1 APPRAISAL REPORT OF FOUR REDEVELOPMENT SITES LOCATED AT SITE 1 - 165-185 SOUTH SHORE DRIVE, MIAMI BEACH SITE 2 -280-330 SOUTH SHORE DRIVE,MIAMI BEACH SITE 3 - 1144 MARSEILLE DRIVE, MIAMI BEACH SITE 4- 1144-1168 MARSEILLE DRIVE, MIAMI BEACH DATE OF VALUATION: NOVEMBER 16,2018 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants J. ALHALE APPRAISALS, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 3475 SHERIDAN STREET, SUITE 313 HOLLYWOOD, FLORIDA 33021 JOZEF ALHALE,MAI,CCIM CELL: (305)613-7477 STATE CERTIFIED GENERAL APPRAISER E-MAIL:jbalhale@aol.com NO.RZ0001557 WWW.jalhaleappraisals.com November 19, 2018 Mr. Michael O'Hara Director of Housing Development Programs Housing Authority of the City of Miami Beach 200 Alton Road,Miami Beach, Florida 33139 Re: Site 1: 165-185 South Shore Drive, Miami Beach,Florida Site 2: 280-330 South Shore Drive, Miami Beach,Florida Site 3: 1144 Marseille Drive,Miami Beach, Florida Site 4: 1144-1168 Marseille Drive,Miami Beach, Florida Dear Mr. O'Hara: Pursuant to your request for an appraisal of the above referenced properties, I submit the following appraisal report. Legal Description: Site 1 -Lots 6,7 and 8,Block 56,Normandy Gold Course Subdivision,as recorded in Plat Book 44, Page 62 of the Public Records of Miami-Dade County,Florida Site 2-Lots 3,4 and 5,Block 55,Normandy Gold Course Subdivision,as recorded in Plat Book 44, Page 62 of the Public Records of Miami-Dade County, Florida Site 3-Lots 16 and 17, Block 9,Ocean Side Section of Isle of Normandy,as recorded in Plat Book 25, Page 60 of the Public Records of Miami-Dade County, Florida Site 4 - The easterly 3/4 of Lot 13, and all of Lots 14 and 15, Block 9, Second Revised Plat of Portions of Trouville Section of Isle of Normandy, as recorded in Plat Book 40, Page 35 of the Public Records of Miami-Dade County, Florida and Ocean Side Section of Isle of Normandy, as recorded in Plat Book 25,Page 60 of the Public Records of Miami-Dade County,Florida;and Lots 16 and 17,Block 9,Ocean Side Section of Isle of Normandy,as recorded in Plat Book 25,Page 60 of the Public Records of Miami-Dade County, Florida I have made a physical inspection of the subject sites, and performed market research to provide estimates of the Highest and Best Use, the Market Value of the Fee Simple Interest in Properties One,Two and Three in"as is"condition(land value),as of November 16,2018,the Market Value of the Fee Simple Interest in Property Four, "as if'vacant(land value),as of November 16, 2018; and the Market Value of the Fee Simple Interest in Property Four in"as is"condition(land value, less estimated cost of demolition and carting of existing older improvements),as of November 16, 2018. Mr.Michael O'Hara November 19, 2018 Page Two It is my estimate that the Market Value of the Fee Simple Interest in Properties One, Two and Three in "as is" condition (land value), as of November 16, 2018, the Market Value of the Fee Simple Interest in Property Four, "as if' vacant (land value), as of November 16, 2018; and the Market Value of the Fee Simple Interest in Property Four in "as is" condition (land value, less estimated cost of demolition and carting ofexisting older improvements),as of November 16,2018, was: MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE ONE(165-185 SOUTH SHORE DRIVE,MIAMI BEACH) IN"AS IS"CONDITION(LAND VALUE) TWO MILLION FOUR HUNDRED THOUSAND DOLLARS ($2,400,000) MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE TWO(280-330 SOUTH SHORE DRIVE,MIAMI BEACH) IN"AS IS"CONDITION(LAND VALUE) FOUR MILLION DOLLARS ($4,000,000) MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE THREE(1144 MARSEILLE DRIVE,MIAMI BEACH) IN"AS IS"CONDITION(LAND VALUE) ONE MILLION THREE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($1,325,000) MARKET VALUE OF THE FEE SIMPLE INTEREST"AS IF"VACANT IN SITE FOUR(1144-1168 MARSEILLE DRIVE,MIAMI BEACH) THREE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($3,750,000) MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE FOUR(1144-1168 MARSEILLE DRIVE,MIAMI BEACH) IN"AS IS"CONDITION(LAND VALUE,LESS DEMOLITION COST) THREE MILLION SEVEN HUNDRED THOUSAND DOLLARS ($3,700,000) Sincerely, Jozef Alhale,MAI State Certified General Appraiser License No. RZ 0001557 TABLE OF CONTENTS PAGE NO. SUMMARY OF SALIENT FACTS AND CONCLUSIONS 1-3 PHOTOGRAPHS OF SITE ONE 4 PHOTOGRAPHS OF SITE TWO. 5 PHOTOGRAPHS OF SITE THREE) 6 PHOTOGRAPHS OF SITE FOUR 7 PURPOSE/FUNCTION OF THE APPRAISAL 8 SCOPE OF THE APPRAISAL . 8 PROPERTY RIGHTS APPRAISED. 8 DATE OF VALUATION AND REPORT. 8 STATEMENT OF OWNERSHIP AND HISTORY 9 ESTIMATED MARKETING AND EXPOSURE PERIOD 10 DEFINITION OF MARKET VALUE. 10 NEIGHBORHOOD ANALYSIS. 10-11 ACCESS TO THE SITES 11 DESCRIPTION OF THE SITES 11-12 UTILITIES. 12 FLOOD ZONE. 12 ZONING. 13 ASSESSMENT AND REAL ESTATE TAXES. 13 MULTI-FAMILY RESIDENTIAL MARKET OVERVIEW 14-16 HIGHEST AND BEST USE DEFINITION. 17 HIGHEST AND BEST USE,AS VACANT. 18-19 THE VALUATION PROCESS. 20 THE SALES COMPARISON APPROACH TO VALUE. 21-34 RECONCILIATION AND FINAL VALUE ESTIMATE. 35-36 CONTINGENT AND LIMITING CONDITIONS. 37-38 CERTIFICATION 39-40 ADDENDA 41 QUALIFICATIONS (Jozef Alhale,MAI,CCIM). 42 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants Subject Properties z m M Q C ��a <Ae s Uleta State p 3. D ,,c Park U Z m ' Z m '.', Z co m W 916 Oi NE 135th St mN � - 0'- A 5 A North Miami Keystone Islands v A ;C• co 922 Laurel Lq Z Bay Harbor Bal m 1 CEN h Islands., V Harbour Z A Gamma Bayshore Park 922 AlA m J m San Souci94thC1St oi D c Estates Indian Creek Surfside m gym'` Village 92nd St Aco Indian( red. mWand p 91st St "n'fH1- 7a / G<ee� 89th St Fran 88th St Miami Shores I. 0. Site 2t Q 2905 S• 5 Dr Miami BftaCR Miami Beach,R sii 33141 C\.1 , ater tc Rd cm w 77th St Atlantic 75th 1 Feirway Dr 11 Ocean ce 73rd St o n Dt '* \urm:uul� I.1311111 . ' s. Or 715 St o n p -`f or North Bay IslandSite4 Site3 to 1168 Marsolle Dr 1144MarsslleDr ttt Miami ssa Miami Beach,R 33141 Miani Beach,R 33141 Pelican I:. . .... . ....._ Harbor Park A1A 907 Baywood Park Biscayne B a y Miami Beach Legion Picnic Iola nil 0 Biscayne Bay Aquatic Preserve • rn S Fir' 4- --1 Miami Beach • ‘1/4-- Morningside Picnic Islands Op Indian Beach Park y a Pi,,e "ree Park & �m Mt Sinai Medical Center `�Q gam, 9 Miami Beach x . .112 112 ', 907 Uct d y li cu A1A I W• iZ �S f tlQp i J r,.�,,e,5--; suns.islands d r1A ' iD. . O mi 0.5 1 1.5 2 Copyright©and(P)1988-2012 Microsoft Corporation and/or its suppliers.All rights reserved.http:lhvww.microsoftcom/streets/ Certain mapping and direction data 02012 NAVTEQ.All rights reserved.The Data for areas of Canada includes information taken with permission from Canadian authorities,including.O Her Majesty the Queen in Right of Canada,O Queen's Printer for Ontario.NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ.0 2012 Tele Atlas North Amenia,Inc.All rights reserved.Tele Atlas and Tele Atlas North Arnenca are trademarks of Tele Atlas,Inc 02012 by Applied Geographic Solutions.All rights reserved.Portions 0 Copyright 2012 by Woodall Pubications Corp.All rights reserved. RealQuest.com ® - Report Page 2 of 2 Flood Map Report For Property Located At 4100' R e a I Q u e s t CoreLogic 185 S SHORE DR, MIAMI BEACH, FL 33141 Report Date:11/14/2018 County:DADE,FL Flood Zone Code Flood Zone Panel Panel Date AE 120651 -12086C0307L 09/1112009 Special Flood Hazard Area(SFHA) Within 250 ft.of multiple flood zones? Community Name In No MIAMI BEACH Flood Zone Description: Zone AE-An area inundated by 100-year flooding 411 Flood Zona. ■ to. ldOyea'rloodwaY ■ 100-year reerraap UIWN and S00-rear abodoel-n.no me protected area ■ Caere LOU-yr'flOodpMO 100-Yeat.bodplrvn Unknown or Area Not Included In Out or Spacal Flood Nieard Area Disclaimer of Use This map/report was produced using multiple sources.It is provided for informational purposes only. This map/report should not be relied upon by any third parties.It is not intended to satisfy any regulatory guidelines and should not be used for this or any other purpose. http://pro.realquest.com/jsp/report.jsp?&action=confirm&type=getreport&recordno=0&r... 11/14/2018 RealQuest.com ® - Report Page 2 of 2 Flood Map Report For Property Located At � R e a I Q u e s t CoreLoyic 280 S SHORE DR, MIAMI BEACH, FL 33141 Report Date:11/14/2018 County:DADE,FL Flood Zone Code Flood Zone Panel Panel Date AE 120651-12086C0307L 09/11/2009 Special Flood Hazard Area(SFHA) Within 250 ft.of multiple flood zones? Community Name In No MIAMI BEACH Flood Zone Description: Zone AE-An area inundated by 100-year flooding Flood loner ■ Cutts too-yu`Floodwer 100ryaer Floodwey Undetermined SOU-year I oodpiam mp evee protected ante . Ceases 100-yee✓FieodpWr 100ryeer Fboc - Unknown or Area Not Included 111 Out of Seem.mood Heard Mm Disclaimer of Use This map/report was produced using multiple sources.It is provided for informational purposes only. This map/report should not be relied upon by any third parties.It is not intended to satisfy any regulatory guidelines and should not be used for this or any other purpose. http://pro.realquest.com/j sp/report.j sp?&action=confirm&type=getreport&recordno=0&r... 1 1/1 4/20 1 8 SUMMARY OF SALIENT FACTS AND CONCLUSIONS Address: Site 1: 165-185 South Shore Drive, Miami Beach, Florida Site 2: 280-330 South Shore Drive, Miami Beach, Florida Site 3: 1144 Marseille Drive,Miami Beach,Florida Site 4: 1144-1168 Marseille Drive,Miami Beach, Florida Description: Site One(165-185 South Shore Drive) - 22,570 SF interior site which is located 303.6 feet east of the northeast corner of South Shore Drive and Ray Street. The vacant site has 188 feet of frontage along the north side of South Shore Drive and the southern boundary of Normandy Golf Course,with a depth of 120 feet. Based on a maximum permitted Floor Area Ratio of 1.25, the site can be improved with up to 28,212 SF of building area. Site Two(280-330 South Shore Drive)- 30,609 SF interior site which is located 120 feet east of the southeast corner of South Shore Drive and Ray Street. The vacant site has 179.79 feet of frontage along the south side of South Shore Drive and the north side of Normandy Waterway,with a depth of 170 feet. Based on a maximum permitted Floor Area Ratio of 1.25, the site can be improved with up to 38,261 SF of building area. Site Three(1144 Marseille Drive)- 13,250 SF interior site which is located 177 feet west of the southwest corner of Rue Versailles and Marseille Drive. The vacant site has 106 feet of frontage along the south side of Marseille Drive,with a depth of 125 feet. Based on a maximum permitted Floor Area Ratio of 1.25,the site can be improved with up to 16,562 SF of building area. Site Four (1144-1168 Marseille Drive) -31,729 SF interior site which is located 177 feet west of the southwest corner of Rue Versailles and Marseille Drive. The vacant site has 254 feet of frontage along the south side of Marseille Drive,with a depth of 125 feet. Based on a maximum permitted Floor Area Ratio of 1.25, the site can be improved with up to 39,661 SF of building area. The eastern 13,250 SF portion of the overall site is vacant, while the remaining western portion is currently improved with a 3,840 SF 1-story four-plex which was built in 1954 and a 3,854 SF 1-story 5-unit multi-family dwelling built in 1954. Census Tract/Block: Sites 1 and 2: 39.160/ 1 Sites 3 and 4: 39.150/4 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 1 - SUMMARY OF SALIENT FACTS AND CONCLUSIONS Folio No: Site 1: 02-3203-007-1360; -1370 and-1380 Site 2: 02-3203-007-1160 and-1170 Site 3: 02-3210-013-1110 Site 4: 02-3210-013-1110; 02-3210-012-0310 and-0320 Owner of Record: Housing Authority of the City of Miami Beach 200 Alton Road Miami Beach,Florida 33139 Legal Description: Site 1 - Lots 6, 7 and 8, Block 56, Normandy Gold Course Subdivision,as recorded in Plat Book 44, Page 62 of the Public Records of Miami-Dade County,Florida Site 2 - Lots 3, 4 and 5, Block 55, Normandy Gold Course Subdivision,as recorded in Plat Book 44, Page 62 of the Public Records of Miami-Dade County,Florida Site 3 - Lots 16 and 17, Block 9, Ocean Side Section of Isle of Normandy, as recorded in Plat Book 25, Page 60 of the Public Records of Miami-Dade County,Florida Site 4 - The easterly 3/4 of Lot 13, and all of Lots 14 and 15, Block 9,Second Revised Plat of Portions of Trouville Section of Isle of Normandy, as recorded in Plat Book 40, Page 35 of the Public Records of Miami-Dade County,Florida and Ocean Side Section of Isle of Normandy, as recorded in Plat Book 25,Page 60 of the Public Records of Miami-Dade County, Florida; and Lots 16 and 17,Block 9,Ocean Side Section of Isle of Normandy, as recorded in Plat Book 25, Page 60 of the Public Records of Miami-Dade County,Florida Site Area: Site 1 - 22,570 SF Site 2- 30,609 SF Site 3 - 13,250 SF Site 4- 31,729 SF Flood Zone: Flood Zone "AE" - An area inundated by 100-year flooding; National Flood Insurance Program, Community Panel Number 120651-12086C0307L, as revised on September 11,2009. Zoning: RM-1 Low-Intensity Multi-Family Residential District J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -2- SUMMARY OF SALIENT FACTS AND CONCLUSIONS Highest and Best Use: The Highest and Best Use of the individual sites, as vacant, is their development with residential condominium apartment buildings. The Highest and Best Use of Site Four, as improved, is the demolition of the existing older improvements(built in 1954)and its development with a residential condominium building. Property Rights Appraised: Fee Simple Interest Date of Inspection and Valuation: November 16, 2018 Date of Appraisal Report: November 19,2018 MARKET VALUE ESTIMATES: Income Capitalization Approach to Value: Not Applicable Sales Comparison Approach to Value: $2,400,000 Site 1 As is $4,000,000 Site 2 As is $1,325,000 Site 3 As is $3,700,000 Site 4 As is $3,750,000 Site 4 As if Vacant Cost Approach to Value: Not Applicable Reconciled Final Value Estimates: $2,400,000 Site 1 As is $4,000,000 Site 2 As is $1,325,000 Site 3 As is $3,700,000 Site 4 As is $3,750,000 Site 4 As if Vacant J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 3 - Site 1 - 165-185 South Shore Drive, Miami Beach .. t 1 r , ' c. • • ' . i. _ 4 . . j`; . . ... , „., !ice ,...'«:- .. ' .a �` i V..Y :i` i. 4 f or . o- + v .---- r +, 114 ": dt • .:� ,_ .^:... -$ - ! r- -- wMr s J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 4 - Site 2 -280-330 South Shore Drive, Miami Beach • • J r _ #. lors'• ' � i4.• . 'moi a *NCO,•� 1.>✓ u - f +�"W..' 4•-Y�"-rar * +�... R..e -M ... .� �T'"...�I/�.^ria..•.,�R.. -J - • J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 5 - Site 3 - 1144 Marseille Drive, Miami Beach - ;t jI I i• • 1 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 6 - Site 4 - 1144-1158-1168 Marseille Drive, Miami Beach Limift_ , t. 7'.' i 1 ' • M- . S y,r'sr I. n A • ,. 4 i r , f _ 911 1.� , . . . ..... • . t X61 K\:1\' f t I , ,!,..... ! •',...'ft- , vv;-. - II' ry .4. .111 114 ' IT '1\ MMM ., • T r ,e / • zi ..� .� v . I J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 7 - PURPOSE/FUNCTION OF THE APPRAISAL The purpose of this appraisal report is to provide estimates of the Highest and Best Use,the Market Value of the Fee Simple Interest in Properties One, Two and Three in "as is" condition (land value), as of November 16, 2018, the Market Value of the Fee Simple Interest in Property Four, "as if' vacant (land value), as of November 16, 2018; and the Market Value of the Fee Simple Interest in Property Four in"as is"condition(land value, less estimated cost of demolition and carting of existing older improvements), as of November 16,2018. The function of this appraisal report is to assist the client(The Housing Authority of the City of Miami Beach)in executive decision making and/or collateral/asset valuation relative to the subject sites, in the North Beach section of Miami Beach. The intended user of this appraisal report is the Housing Authority of the City of Miami Beach or any of its assigns. SCOPE OF THE APPRAISAL I have made a physical inspection of the subject sites, and performed market research to provide estimates of the Highest and Best Use,the Market Value of the Fee Simple Interest in Properties One, Two and Three in "as is" condition (land value), as of November 16, 2018, the Market Value of the Fee Simple Interest in Property Four, "as if' vacant (land value), as of November 16, 2018; and the Market Value of the Fee Simple Interest in Property Four in"as is"condition(land value,less estimated cost of demolition and carting of existing older improvements),as of November 16,2018. The scope of the appraisal involves the research and analysis of factual data relative to the subject properties, as well as market data necessary for the development of the Sales Comparison Approach to Value (land valuation). The data and information used in developing our findings, projections and valuation estimates have been derived from published information, direct interviews, analysis of similar properties and other sources which were considered appropriate as of the valuation date. PROPERTY RIGHTS APPRAISED This appraisal report is made with the understanding that the present ownership of the properties includes all the rights that may be lawfully held under a fee simple estate. Fee Simple Interest is defined in The Dictionary of Real Estate Appraisal, 2010 Edition, which was sponsored by the Appraisal Institute as follows: Absolute ownership unencumbered by any other interest or estate;subject only to the limitations imposed by the governmental powers of eminent domain, escheat,police power and taxation. DATE OF VALUATION AND REPORT The date of valuation is November 16,2018. The date of the appraisal report is November 19, 2018. J.ALIIALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 8 - STATEMENT OF OWNERSHIP AND HISTORY Site One is owned by the Housing Authority of the City of Miami Beach which purchased it for $800,000 from First Citizens Bank & Trust Company on December 21, 2012,as recorded in Book 28413, Page 324 of the Official Public Records of Miami-Dade County, Florida. Site Two is owned by the Housing Authority of the City of Miami Beach which purchased it for$2,650,000 from South Shore Landowners, L.C. on March 31, 2014, as recorded in Book 29089, Page 4805 of the Official Public Records of Miami-Dade County, Florida. Site Three is owned by the Housing Authority of the City of Miami Beach which purchased it for a nominal consideration from Miami Beach Housing Initiatives,Inc.on June 30,2017, as recorded in Book 30598, Page 1840 of the Official Public Records of Miami-Dade County, Florida. The previous sale was from the Grand Tower at North Beach, LLC to Miami Beach Housing Initiatives,Inc.on May 6,2014 for$1,295,000,as recorded in Book 29142,Page 1187 of the Official Public Records of Miami-Dade County, Florida. The eastern 13,250 SF of Site Four is owned by the Housing Authority of the City of Miami Beach which purchased it for a nominal consideration from Miami Beach Housing Initiatives, Inc. on June 30, 2017, as recorded in Book 30598, Page 1840 of the Official Public Records of Miami-Dade County, Florida. The previous sale was from the Grand Tower at North Beach, LLC to Miami Beach Housing Initiatives, Inc. on May 6, 2014 for $1,295,000,as recorded in Book 29142,Page 1187 of the Official Public Records of Miami- Dade County,Florida. The center 10,021 SF of Site Four is owned by the Housing Authority of the City of Miami Beach which purchased it for a nominal consideration from Miami Beach Housing Initiatives, Inc. on June 30, 2017, as recorded in Book 30598, Page 1838 of the Official Public Records of Miami-Dade County, Florida. The previous sale was from MP Investment Properties,Inc.to Miami Beach Housing Initiatives,Inc.on January 21,2014 for $575,000,as recorded in Book 28998,Page 1940 of the Official Public Records of Miami- Dade County, Florida. The western 8,458 SF of Site Four is owned by the Housing Authority of the City of Miami Beach which purchased it for a nominal consideration from Miami Beach Housing Initiatives, Inc. on June 30, 2017, as recorded in Book 30598, Page 1832 of the Official Public Records of Miami-Dade County, Florida. The previous sale was from Michael Moskwa to Miami Beach Housing Initiatives, Inc. on August 13, 2014 for $635,000, as recorded in Book 29269,Page 4046 of the Official Public Records of Miami-Dade County, Florida. As per the Public Records of Miami-Dade County, Florida,there was no other arm's length transfer of ownership at the subject properties during the five year period prior to the valuation date. We have not been informed of any other current listings, options and/or pending contracts in effect at the subject properties,as of the date of valuation. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -9- ESTIMATED MARKETING AND EXPOSURE PERIOD Based on my analysis of the market,recent listings which have been since closed,as well as discussions with owners and Realtors active in the subject area,it is the appraiser's opinion that if the individual subject sites were listed for sale with an experienced Realtor, the marketing and marketing and exposure period would be approximately six to twelve months. Accordingly, this marketing and exposure period is considered to currently represent the most probable amount of time necessary to expose and actively market the subject properties to achieve a sale consistent with the Market Value. DEFINITION OF MARKET VALUE Market Value is defined in The Interagency Appraisal and Evaluation Guidelines, dated December 2,2010, 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 acting prudently and knowledgeably,and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 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 fmancing or sales concessions granted by anyone associated with the sale. NEIGHBORHOOD ANALYSIS Sites One and Two are located along South Bayshore Drive,just west of Bay Drive, in Normandy Isle,in the North Beach section of Miami Beach,Florida. Sites Three and Four are located along Marseille Drive,just west of Bay Drive, in Normandy Isle, in the North Beach section of Miami Beach,Florida. The subject properties are located just north of 715` Street which connects Normandy Isle with Collins Avenue and the Atlantic Ocean. The property uses along South Shore Drive and Marseille Drive consist of low-rise apartment buildings of rental and condominium variety, while the property uses along 715Street, Harding Avenue and Collins Avenue consist of low-rise to mid-rise apartment buildings of rental and condominium variety,motels,apartment-hotels ,and commercial uses. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 10 - NEIGHBORHOOD ANALYSIS The subject area is connected to mainland Miami via the John F. Kennedy Causeway(SR No.934)which divides into 71st Street and Normandy Drive as it enters Miami Beach;and Julia Tuttle Causeway(I-95)which becomes Arthur Godfrey Road(41st Street)as it enters Miami Beach. The area is serviced by Harding Avenue,Collins Avenue,Normandy Drive and 71'Street which connect the area with the causeways which all connect the area with the cities of Surfside,North Bay Village, Bal Harbour and North Miami Beach. Miami Beach is an island located just off the southeast coast of Miami-Dade County,Florida. The island is approximately one mile wide,ten miles long and travels in a northerly/southerly direction parallel to mainland Miami-Dade County. The town of Surfside borders Miami Beach to the north starting at approximately 87th Street. The Atlantic Ocean acts as the eastern and southeastern border,while Biscayne Bay/the Intracoastal Waterway lies to the west. Five causeways connect Miami Beach to the mainland; the MacArthur Causeway (Highway No.41);the Venetian Causeway; the Julia Tuttle Causeway(Interstate 195);the Broad Causeway(State Road No.922)and the North Dade Causeway(State Road No.934). As the City's economy drastically improved in the last twenty-five years,Miami Beach has experienced an influx of younger and more affluent residents. Close proximity to Miami's downtown business district,the Art Deco entertainment district and access to the beach are all considered to be contributing factors to the area's discovery as a place to live and work. The continued faith in the City's economy is reflected by the consistent increase in building permit activity over the last twenty-five years. Developers and real estate professionals in Miami Beach have been aggressively marketing their properties to local and out-of-town residents and families. The area surrounding the subject sites has been developed with mostly residential facilities and therefore,no nuisances,hazards or other adverse influences were observed. No notable signs of external obsolescence were observed and the overall appeal of the improved properties is considered to be above average to good. ACCESS TO THE SITES South Shore Drive provides direct access to Sites One and Two. Marseille Drive provides direct access to Sites Three and Four. DESCRIPTION OF THE SITES Site One(165-185 South Shore Drive)-22,570 SF interior site which is located 303.6 feet east of the northeast corner of South Shore Drive and Ray Street. The vacant site has 188 feet of frontage along the north side of South Shore Drive and the southern boundary of Normandy Golf Course, with a depth of 120 feet. Based on a maximum permitted Floor Area Ratio of 1.25,the site can be improved with up to 28,212 SF of building area. Site Two(280-330 South Shore Drive)-30,609 SF interior site which is located 120 feet east of the southeast corner of South Shore Drive and Ray Street. The vacant site has 179.79 feet of frontage along the south side of South Shore Drive and the north side of Normandy Waterway, with a depth of 170 feet. Based on a maximum permitted Floor Area Ratio of 1.25,the site can be improved with up to 38,261 SF of building area. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 11 - DESCRIPTION OF THE SITES Site Three(1144 Marseille Drive)- 13,250 SF interior site which is located 177 feet west of the southwest corner of Rue Versailles and Marseille Drive. The vacant site has 106 feet of frontage along the south side of Marseille Drive, with a depth of 125 feet. Based on a maximum permitted Floor Area Ratio of 1.25,the site can be improved with up to 16,562 SF of building area. Site Four (1144-1168 Marseille Drive) - 31,729 SF interior site which is located 177 feet west of the southwest corner of Rue Versailles and Marseille Drive. The vacant site has 254 feet of frontage along the south side of Marseille Drive,with a depth of 125 feet. Based on a maximum permitted Floor Area Ratio of 1.25,the site can be improved with up to 39,661 SF of building area. The eastern 13,250 SF portion of the overall site is vacant, while the remaining western portion is currently improved with a 3,840 SF 1-story four-plex which was built in 1954 and a 3,854 SF 1-story 5-unit multi-family dwelling built in 1954. The existing older improvements at Site Four have no contributory value,as they do not reflect the Highest and Best Use of Site Four,as improved or"as if'vacant. The subject sites are level at street grade and do not have any apparent drainage or other problems which would restrict or limit the use of the sites. No soil boring tests or engineering reports were submitted to the appraiser;however,the sites are assumed to have stable subsoil conditions as do most properties in the immediate area. The appraiser has not been informed of any adverse subsoil conditions revealed by an environmental assessment conducted by a firm with experience in identifying such substances,nor is he qualified to detect such substances that may exist. It is assumed that the subject sites would be typical for properties located in the subject area with no apparent soil problems which would restrict or limit the usage of the sites. If any adverse subsoil conditions are identified and do exist, these conditions would be considered to have a material affect on the Market Value estimates. The valuation analysis assumes the sites to be free of any adverse subsoil conditions, and is subject to the satisfactory removal of any contaminating materials in accordance with technical, environmental and governmental guidelines. UTILITIES Public utilities available to the subject sites include electricity, water, sewer, gas and telephone service. Electricity is provided by FPL.Police and fire protection,water and sewer services are provided by the City of Miami Beach. FLOOD ZONE Flood Zone "AE" - An area inundated by 100-year flooding; National Flood Insurance Program, Community Panel Number 120651-12086C0307L, as revised on September 11, 2009. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 12 - ZONING The subject sites are zoned as RM-1 Low-Intensity Multi-Family Residential District which allows single-family detached dwellings,townhomes,apartments apartment-hotels,hotels, hostels, and suite hotels. The maximum permitted Floor Area Ratio is 1.25. ASSESSMENT AND REAL ESTATE TAXES The subject sites are located within the City of Miami Beach and are subject to both the City of Miami Beach and Miami-Dade County ad valorem taxes. The Florida Statutes provide for assessment and collection of yearly Ad Valorem Taxes on Real and Personal Property. The assessment for the property is established each year as of January 1st by the Miami-Dade County Property Appraiser's Office at 100% of"Just Value". The tax due is computed according to annual millage rates established by Dade County. Millage rates are the amount paid to each taxing body for every$1,000 of assessed value. Taxes are payable in November with a 4%discount and become delinquent on April 0. Site One is assessed at$2,031,300 or$90/SF of site area,with no real estate taxes(owned by a non-profit local government agency). Site Two is assessed at$2,754,810 or$90/SF of site area,with no real estate taxes (owned by a non-profit local government agency). Site Three is assessed at$928,193 or$70.05/SF of site area,with no real estate taxes(owned by a non-profit local government agency). Site Four is assessed at$2,241,723 or$70.65/SF of site area,with no real estate taxes(owned by a non-profit local government agency). J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 13 - MULTI-FAMILY RESIDENTIAL MARKET OVERVIEW Rental Apartment Market According to the Housing Report prepared by Reinhold P.Wolff Economic Research,Inc., the vacancy rate in mature(18 months and older)rental apartment complexes in Miami-Dade County was 4.1% in August 2018; 5.0% in May 2018; 4.7% in February 2018, 4.5% in November 2017;4.4%in August 2017;3.6%in May 2017,3.6%in February 2017;3.9%in November 2016;3.9%in November 2016;3.4%in August 2016; 2.9%in May 2016;3.4% in February 2016; 2.9%in November 2015; 3.0%in August 2015; 3.3%in May 2015; and 3.9%in February 2015. The subject sub-market of Central/North Beach sub-market had a vacancy rate of 2.8%for 1,281 units in February 2012; 4.9% for 1,281 units in May 2012; 4.4% for 1,617 units in August 2012; 3.4% for 1,617 units in November 2012; 9.1% for 1,617 units in February 2013;6.1%for 1,617 units in May 2013;.2%in August 2013 for 1,617 units;5.5%for 1,617 units in November 2013;4.3%for 1,617 units in February 2014; 1.9%for 1,617 units in May 2014; 3.4%in August 2014 for 2,046 units; 1.9%for 1,617 units in November 2014; 1.7% for 1,617 units in February 2015;2.4%for 1,617 units in May 2015;2.5%for 1,617 units in August 2015; 4.0% for 1,617 units in November 2015; 1.1% for 1,617 units in February 2016; 1.5% for 1,617 units in May 2016; 2.7% for 1,902 units in August 2016; 2.0% for 1,902 units in November 2016;4.0%for 1,902 units in February 2017;5.0%for 1,902 units in May 2017;5.0%for 1,902 units in August 2017;5.2%for 1,902 units in November 2017; 4.5% for 1,902 units in February 2018; 4.5% for 1,902 units in May 2018; and 3.4% for 1,902 units in August 2018. The neighboring South Beach sub-market had a vacancy rate of 4.0% for 2,046 units in February 2012;4.7%for 2,046 units in May 2012; 4.6%%for 2,046 units in August 2012; 4.3% for 2,046 units in November 2012; 8.1%for 2,046 units in February 2013; 2.5%for 2,046 units in May 2013; 4.1% for 2,046 units in August 2013; 1.4% for 2,046 units in November 2013;4.5%for 2,046 units in February 2014; 5.4%for 2,046 units in May 2014; 5.2% in August 2014 for 1,617 units; 5.7% for 2,046 units in November 2014; 3.7% for 1,617 units in February 2015; 3.8%for 1,617 units in May 2015; and 4.4% for 1,872 units in August 2015;6.3%for 1,617 units in November 2015; 5.7%for 1,617 units in February 2016; 5.9% for 1,617 units in May 2016; 4.3% for 1,872 units in August 2016; 3.3% for 1,872 units in November 2016;4.4%for 1,872 units in February 2017;3.7%for 1,872 units in May 2017;7.7%for 1,872 units in August 2017;7.4%for 1,872 units in November 2017; 5.8% for 1,872 units in February 2018; 6.2% for 1,872 units in May 2018; and 5.5% for 1,872 units in August 2018. The overall average monthly rent for apartments in mature rental developments in Miami- Dade County increased by $16 to $1,885 from May to August 2018. The August 2018 overall average rent of$1,85 is 8.5% greater than the $1,737 average rent found a year earlier. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 14- MULTI-FAMILY RESIDENTIAL MARKET OVERVIEW --Continued— Rental Apartment Market-Continued The overall average monthly rent for apartments in mature rental developments in Miami- Dade County increased by $39 to $1,869 from February to May 2018. The May 2018 overall average rent of$1,869 is 6.7% greater than the $1,751 average rent found a year earlier. The overall average monthly rent for apartments in mature rental developments in Miami- Dade County increased by $91 to $1,830 from November 2017 to February 2018. The February 2018 overall average rent of$1,830 is 4.9%greater than the$1,744 average rent found a year earlier. The overall average monthly rent for apartments in mature rental developments in Miami- Dade County increased by $2 to $1,739 from August 2017 to November 2017. The November 2017 overall average rent of$1,739 is .8%greater than the$1,725 average rent found a year earlier. The overall average monthly rent for apartments in mature rental developments in Miami- Dade County declined by$14 to$1,737 from May 2017 to August 2017. The August 2017 overall average rent of$1,737 is 4.4% greater than the $1,664 average rent found a year earlier. The overall average monthly rent for apartments in mature rental developments in Miami- Dade County increased by$7 to $1,771 from February 2017 to May 2017. The May 2017 overall average rent of$1,751 is 3.2% greater than the $1,696 average rent found a year earlier. Condominium Apartment Market As per the 3`d Quarter 2018 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,a total of 241 new condominium units were sold(deeded) in Dade County during the 2nd quarter of 2018. The rd quarter sales were 75.9% greater than the 137 units sold in the 1'quarter of 2018,and 13.1%more than the 213 units sold in the 2nd Quarter of 2017. New condominium sales through June 2018, totaled 378 units, 4.3% less than the 395 units sold during the same period in 2017. As per the 2"d Quarter 2018 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,a total of 137 new condominium units were sold(deeded) in Dade County during the 151 quarter of 2018. The lS`quarter sales were 23.5% less than the 179 units sold in the 4"'quarter of 2017,and 24.7% less than the 182 units sold in the 1st Quarter of 2017. New condominium sales in 2017, totaled 784 units, 23.7% less than the 1,027 units sold in 2016. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 15 - MULTI-FAMILY RESIDENTIAL MARKET OVERVIEW --Continued— Condominium Apartment Market-Continued As per the 1" Quarter 2018 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,a total of 179 new condominium units were sold(deeded) in Dade County during the 4th quarter of 2017. The 4th quarter sales were 14.8% less than the 210 units sold in the 3'd quarter of 2017,and 40.7%less than the 302 units sold in the 4t1' Quarter of 2016. As per the 4"'Quarter 2017 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,a total of 210 new condominium units were sold(deeded) in Dade County during the 3'd quarter of 2017. The 3'd quarter sales were 1.4%less than the 213 units sold in the 2"d quarter of 2017,and 20.7% more than the 174 units sold in the 3`d Quarter of 2016. New condominium sales through September 2017, totaled 605 units, 16.6% less than the 725 units sold in the same period in 2016. As per the 3'd Quarter 2017 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,a total of 213 new condominium units were sold(deeded) in Dade County during the 2nd quarter of 2017. The 2"d quarter sales were 17%more than the 182 units sold in the 111 quarter of 2017,and 13.3%more than the 188 units sold in the 2"d Quarter of 2016. New condominium sales through June 2017,totaled 395 units,28.3% less than the 551 units sold in the same period in 2016. As per the 2"d Quarter 2017 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,a total of 182 new condominium units were sold(deeded) in Dade County during the 1"quarter of 2017. The 1"quarter sales were 39.7% less than the 302 units sold in the 4th quarter of 2016,and 49.9%less than the 363 units sold in the 1" Quarter of 2016. New condominium sales in 2016 totaled 1,027 units,42.5%less than the 1,786 units sold in 2015. As per the 3'd Quarter 2018 Dade County Housing Market Report prepared by Reinhold P. Wolff Economic Research,Inc.,there were 63,2,39,60,58,43,48 and 50 units of quarterly used condominium sales in the3rd Quarter 2016 through 2nd Quarter 2018,respectively. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 16 - HIGHEST AND BEST USE DEFINITION The Highest and Best Use is a market-driven concept. It may be briefly defmed as representing the most profitable,competitive use to which a site can be put,or that use which may reasonably be expected to produce the greatest net return to the land over a given period of time. In addition,the concept may further be defined as the available use and program of future utilization that produces the highest present land value. Highest and Best Use is further defmed in The Dictionary Real Estate Appraisal, 2010 Edition,which was sponsored by the Appraisal Institute as follows: That reasonably probable and legal use of vacant land or an improved property that is physically possible,appropriately supported,fmancially feasible,and that results in the highest value. It is to be recognized that in cases where a site has existing improvements on it,the Highest and Best Use may very well be determined to be different from the existing use. The existing use will continue,however,unless and until land value in its Highest and Best Use exceeds the total value of the property in its existing use. The estimate of Highest and Best Use is based upon four stages of analysis: 1. The possible use or uses which are physically possible for the site under analysis. 2. The permissible use or uses which are permitted relative to zoning, historic preservation regulations, environmental controls and/or deed restriction of the site under analysis. 3. The feasible use or uses which are considered economically and fmancially feasible for the site in terms of existing and projected market conditions. 4. The Highest and Best Use in consideration of those legally permissible, physically possible, fmancially feasible and maximally productive uses which will result in the highest net return or the highest present worth. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 17- HIGHEST AND BEST USE,AS VACANT The estimate of the Highest and Best Use of the land,as if vacant,requires market analysis in terms of market conditions of supply and demand. The value of land is based upon the level of utility that is in demand and that will produce amenities or net income to the user. Therefore,the use which creates the greatest land value and which is considered compatible in terms of the restriction imposed by the physical,legal,financial and maximally productive factors is inherent in this analysis. The physically possible uses of the subject sites, as vacant, would include a variety of commercial and multi-family residential uses. This is based upon analysis of the size, frontage, exposure, access, location and buildable utility characteristics of the 22,570 SF, 30,609 SF, 13,250 SF and 31,729 SF subject interior sites. Analysis of the permissible uses at the subject sites takes into account those uses which would be permitted by existing zoning and/or deed restrictions, providing that no deed restrictions are in effect at the subject sites which would restrict bertain uses of the sites. The subject sites are zoned as RM-1 Low-Intensity Multi-Family Residential District which allows single-family detached dwellings,townhomes,apartments apartment-hotels,hotels, hostels, and suite hotels. The maximum permitted Floor Area Ratio is 1.25. After analysis of the physically possible and legally permissible uses to which the subject sites could conceivably be put,a study of those uses which would be maximally productive is required. Therefore,an alternative use analysis was performed relative to that use which would represent the Highest and Best Use of the subject sites,as if vacant. Sites One and Two are located on S.Bayshore Drive,while Sites Three and Four are located on Marseille Drive, west of Bay Drive, in Normandy Isle, in the North Beach section of Miami Beach,Florida. The subject sites are located just north of 71'Street which connects Normandy Isle with Collins Avenue and the Atlantic Ocean. The property uses along South Shore Drive and Marseille Drive consist of low-rise to high-rise apartment buildings of rental and condominium variety, while the property uses along 71st Street, Harding Avenue and Collins Avenue consist of low-rise to mid-rise apartment buildings of rental and condominium variety,motels,apartment-hotels, commercial uses and houses of worship. As the City's economy drastically improved in the last twenty-five years,Miami Beach has experienced an influx of younger and more affluent residents. Close proximity to Miami's downtown business district,the Art Deco entertainment district and access to the beach are all considered to be contributing factors to the area's discovery as a place to live and work. The continued faith in the City's economy is reflected by the consistent increase in building permit activity over the last twenty-five years. Developers and real estate professionals in Miami Beach have been aggressively marketing their properties to local and out-of-town residents and families. The area surrounding the subject sites has been developed with mostly residential facilities and therefore,no nuisances,hazards or other adverse influences were observed. No notable signs of external obsolescence were observed and the overall appeal of the improved properties is considered to be above average to good. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 18 - HIGHEST AND BEST USE,AS VACANT Based upon analysis of those uses which would be considered physically possible, legally permissible and economically feasible,it is the appraiser's estimate that the Highest and Best Use of the subject sites would be their development with residential condominium apartment buildings. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 19 - THE VALUATION PROCEDURE The valuation procedure is defined in the 2010 Edition of the Dictionary of Real Estate Appraisal which was sponsored by the Appraisal Institute as follows: The act, manner and technique of performing the steps of a valuation method. In order to provide estimates of the Market Value of the Fee Simple Interest in Properties One,Two and Three in"as is"condition(land value),as of November 16,2018,the Market Value of the Fee Simple Interest in Property Four, "as if' vacant (land value), as of November 16,2018;and the Market Value of the Fee Simple Interest in Property Four in"as is" condition (land value, less estimated cost of demolition and carting of existing older improvements),as of November 16,2018,we have utilized the Sales Comparison Approach to Value. The Sales Comparison Approach to Value is based upon a comparison between recently sold sites and the subject sites, utilizing the sale price per square foot of buildable area unit of comparison. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -20 - THE SALES COMPARISON APPROACH (LAND VALUATION) In order to estimate the value of the subject sites,the land is analyzed as vacant and available to be put to its Highest and Best Use. There are several different techniques which can be utilized in the valuation of land. The technique selected must relate to the specific factors inherent in the appraisal problem at hand. The land valuation technique selected must reflect the prudent and rationale behavior of the most probable, typically informed purchaser/investor. In addition,the availability of reliable and verified market data further leads to the selection of the applicable land valuation technique. 1.The Sales Comparison Approach analyzes the sales of similar vacant sites, with comparison and adjustment made from these sales to the subject sites. The Sales Comparison Approach to Value is based on the principle of substitution; that is, when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property assuming no costly delay in making the substitution. The Sales Comparison Approach to Value is based on a comparison between recently sold sites in Miami Beach and the subject site,utilizing the sale price/SF of buildable area method of comparison. 2.The Abstraction Method analyzes the sales of improved properties with an allocation made between land and improvement value. The indicated allocation may establish a typical ratio of land value to total value or to derive from the portion of the sales price allocated to land an estimate of land value for use as a comparable land sale. 3.The Cost of Development Method provides an estimate of the value of undeveloped land based upon the creation of a platted subdivision,development and sale of said parcel. The method assumes that the most probable purchaser of the land would be a developer/investor who plans to dispose of the developed sites at a profit. The costs of development are subtracted from the estimated proceeds of sale resulting in a net income projection which is discounted over the market absorption period. 4.The Land Residual Method treats the net income available to support the investment in the site as a residual. The income required to cover the investment in new improvements that represent the Highest and Best Use of the site is deducted from the Net Operating Income resulting in an estimate of the net income to the land which is then capitalized to estimate the land value. The comparable land sales are considered reasonably similar to the subject property in terms of zoning, location, physical characteristics, topography and buildable utility. The sales represent bona-fide"arm's length"transactions which are representative ofprevailing market values. Our analysis has taken into account those differentials relative to fmancing,time of sale,size,location,frontage/exposure,zoning,developmental potential and functional utility of the comparable sales as they compare to the subject sites. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -21 - Comparable Land Sales North Miami Beach pieta River State Recreation Area Hautover Park 909 a Q NE 146th St > 'f C NE_143rd_St , U1 r", LjL Ur�----•-•�,� n. - Oteta State U Qp 1 North Miami Park = CO , AIA .7;-•,,, — 916 NE 135th St u � �' , ,Keystone Islands x 922 ,Fii Laurel L8 1� Bay Harbor Bal •i 4 ?North Islands, Harbour o i Gana\ Bayshore Park 922 J Sale4 CI 8943 Harding Ave San Souci 94th St Miami Beach,FL 33154 Estates Indian Creek „Su Village„ 92nd St Iijdiau Creek . Surfside Island O 91st St iiBeach Gte� 89th St Sate3 Flan 88th St 7945HadingAve Miami Morn Beach,Ft 33141 Shores = ` ° A t la n t i c .: Site2 iter site t 2835 Shoe Dr 165 S Shad nr Miami Bach,8.33141 Mian Be Shcel D.,c„ a...: •.(1 ' Rd 8Eo71KS Mian Beach,R.33141 �itway lar North Sr�cre roc lilt k �, \urnrimh Island5 yy or ri D O e co Site4 Or Site3 m 1168MarelieDr 1144MarlleDr Eco4 Miam Beach,R 33141 Novi Beach,H 33141 , Pelican t.. . .. ...-..- .n Harbor Park Biscayne ..s� Ba Aquatic 907 Biscayne Bay y q , Preserve Sale 2 6372 Collins Ave Bird tics Miami Beach Mian Beech,FL 33141 7%,,` 4 P 0 U 4, Fa' 0*.',‘ � Miami Beach eta C 10 cr Ntorningsidc Picnic Islands \lop c P 0 U Q O Polo Pay*1 cti ac Mt Sinai Medical Center c Q co ry 0 6 �Miami Beach 76 907 2 o C AIA » 112 y U 5 cr Q i 0 mi 0.5 1 1.5 2 Copyright®and(P)1988-2012 Microsoft Corporation and/or its suppliers.All rights reserved.http:Avww.microsoft.com/streets/ Certain mapping and direction data 02012 NAVTEQ.All rights reserved.The Data for areas of Canada indudes information taken with permission from Canadian authorities,including:O Her Majesty the Queen in Right of Canada,0 Queen's Printer for Ontario.NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ.02012 Tele Atlas North America,Inc.All rights reserved.Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas,Inc 0 2012 by Applied Geographic Solutions.All rights reserved.Portions 0 Copyright 2012 by Woodall Pubfcations Corp.All rights reserved. COMPARABLE LAND SALES Subplot Land Land Land Land land Land Mei Baba 1 8W 2 Sala 3 SW 4 Wang 5 Wine 6 Address 165-185 SOUTH 880 71ST 6372-6382 COLLINS AVE 7945 HARDING 8943 HARDING 7913 WEST 7922 EAST SHORE DRIVE STREET &6375 INDIAN CREEK DR. AVENUE AVENUE DRIVE DRIVE MIAMI83EACH MIAMI BEACH MIAMI BEACH MIAMI BEACH SURFSIDE N.BAY VILAGE N.BAY VILAGE FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA Frontage/Exposure On S.SHORE DRIVE (71ST STREET) COLLINS AVENUE HARDING AVENUE HARDING AVENUE WEST DRIVE EAST DRIVE BAY DRIVE INDIAN CREEK DRIVE 80TH STREET Water Frontage No Yes No No No Yes Yes Folio No. 02-3203-007-1360 02-3210-013-0190 02-3211-007-2050 02-3202-007-0200 14-2235-005-0170 23-3209-001-0013 233209-001-0650 02-3203-007-1370 02-3211-007-1530 02-3203-057-1380 02-3211.007-1540 Net Site Size (SF) 22,570 19,414 20,413 5,500 5,750 43,901 11,200 Net Site Size (Acre) 0.52 0.45 0.47 0.13 0.13 1.01 - 0.26 Zoning RM-1 CD-2 RM-2 RM-1 RD-1 RM-70 RM-70 Floor Area Ratio FAR) 1.25 2.00 2.00 1.25 1.77 - - Buildable ken 28,212 38,828 40,826 6,875 10,200 - - Date of Sale - 8/8/2017 2/2/2017 10/20/2016 8/4/2015 LISTED LISTED Grantor - ELIZABETH MYPP HOLDINGS LLC AZ BELL ROAD,LLC ROSTRA,LLC AL GOLETA,TRUSTEE CEDAR ISLAND.LP STONE.TRUSTEE Grantee - BAY DR LLC& 6372 LLC ERIC ASRR SUZER USTED LISTED KG NORMANDY,LLC DOELLE 8955,LLC O.R.Book/Page - 30651/3625 30414/4507 30286/902 29726/4270 LISTED USTED Consideration - $3,500,000 $5,500,000 5890,000 $1,050,000 $10,400,000 $2,520,000 Financing - CASH TO CASH TO CASH TO CASH TO LISTED USTED THE SELLER THE SELLER THE SELLER THE SELLER Sale Price - $3,500,000 $5,500,900 $890,000 $1,050,000 $10,400,000 $2,520,000 Sale Price/SF of Net Site Area - $160.26 $269.44 $161.62 $182.61 ' $236.90 $225.00 Sale Price/SF of Maximum Buildable Mea - $90.14 $134.72 $129.45 $102.94 $117.93 $112.01 Time Adjustment -6% -7.4% -10.3% -11.6% -18.2% 0% 0% Time Adjusted Sale Price - 83,239,500 $4,935,600 $786,400 $858,700 $10,400,000 $2,520,000 Time Adjusted Sale Price Per Sq.Ft.of Site Area - $156.86 $241.79 $142.98 $149.34 $236.90 $225.00 Time Adjusted Sale Price Per Sq.Ft.of Buildable Area - $83.43 $120.69 $114.39 $84.19 $117.93 $112.01 ADJUSTMENTS: Location: - 0% -10% 0% 0% 0% 0% Frontage/Exposure: - 10% -10% -10% 0% 0% 0% Water Frontage: -10% 0% 0% 0% -20% -2011, Size/Physical Development Potential: - ca, Q9i ].Q5n 191 dQY LI, Total: - 0% -20% 0% 10% -30% Plus:Estimated Demolition Cost - $0 $0 $6,000 $7,000 SO SO Adjusted Price - 53,239,500 $3,946,500 $792,400 $951,600 $7,280,000 $2,142,000 Adjusted Price/SF of Net Site Area - $166.86 $193.43 $144.07 $165.50 $165.83 $191.25 Adjusted Price/SF of - Buildable Area p $83.43 $96.72 $115.28 $93.29 $82.55 $95.21 Asking Asking il J.ALHALE APPRAISALS,INC. THE SALES COMPARISON APPROACH(LAND VALUATION) --Continued-- ANALYSIS OF COMPARABLE SALES (SITE ONE- 165-185 S. SHORE DRIVE) Financing The comparable sales were"arm's length"and"cash to the seller"transactions,with typical terms of purchase and therefore,no adjustment for fmancing was required. Time of Sale The comparable land sales analyzed herein have occurred between August 2015 and August 2017, in addition to the two current listings. Due to the softening market conditions in the residential sub-market and abundant inventory to be yet absorbed, we have utilized a negative 6%/year time adjustment to reflect current market conditions in the subject area. Location The comparable sales are located between 63`' Street and 89th Street, in the North Beach section of Miami Beach. However,Comparable Land Sale Number Two required a negative locational adjustment due to its specific location on Collins Avenue and Indian Creek Drive, at 63`d Street. FrontageNisibility/Exposure Site One,with frontage on one street,is superior to Comparable Land Sale Number One,and inferior to Comparable Land Sale Numbers Two and Three with multiple street frontages. Comparable Sale Numbers One,Five and Six required a negative adjustment for their water frontage along the bay or waterway. Configuration Site One and the comparable sites are generally shaped adequately for development, with adequate frontage and depth,thereby requiring no adjustment for configuration. Size/Scale and Physical Development Potential and Functional Utility Comparable Sale Numbers Three,Four and Six were inferior to Site One in terms of physical development potential and functional utility due to their significantly smaller size, thereby requiring a positive adjustment. Comparable Sale Number Five was superior to Site One in terms of physical development potential and functional utility due to its significantly larger size, thereby requiring a negative adjustment. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -24- THE SALES COMPARISON APPROACH (LAND VALUATION) --Continued— ANALYSIS OF COMPARABLE LAND SALES(SITE ONE-165-185 S.SHORE DRIVE) Topography Site One and the comparable land sales were generally level at street-grade. However, we have estimated the cost of demolition at the comparable sales and the subject site,if there were older improvements which would be razed for redevelopment. CORRELATION OF VALUE The comparable sales indicated unadjusted sale price/SF of site area of$166.86, 241.79 $142.98, $149.34, $236.90(asking price)and$225 (asking price). The comparable sales indicated unadjusted sale price/SF of buildable area of$83.43, $120.89,$114.39,$84.19,$117.93 (asking price)and$112.01 (asking price). After the analytical adjustments,the comparable sales indicated adjusted sale price/SF of buildable area of$83.43, $96.72, $115.26, $93.29, $82.55 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit)and $95.21 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit). Based on the preceding analysis, $80/SF to $90/SF of buildable area reflect a reasonable range of Market Value of the Fee Simple Interest in Site One,in"as is"condition(as vacant land). Then: 28,212 SF x$80/SF = $2,256,960 28,212 SF x$90/SF = $2,539,080 Estimated Market Value of the Fee Simple Interest in Site One, in"as is" Condition(Rounded) $2,400,000 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -25 - COMPARABLE LAND SALES Mimi Land Land Land Land Land Land 81Y 2 Bah 1 Sala 2 Sale 3 Sala 4 Listing 5 WIN 6 Address 280-330 SOUTH 880 71ST 6372-6382 COLLINS AVE 7945 HARDING 8943 HARDING 7913 WEST 7922 EAST SHORE DRIVE STREET 6 6375 INDIAN CREEK DR. AVENUE AVENUE DRIVE DRIVE MIAMI BEACH MIAMI BEACH MIAMI BEACH MIAMI BEACH SURFSIDE N.BAY VILAGE N.BAY VILAGE FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA Frontage/Exposure On S.SHORE DRIVE (71ST STREET) COLLINS AVENUE HARDING AVENUE HARDING AVENUE WEST DRIVE EAST DRIVE BAY DRIVE INDIAN CREEK DRIVE 80TH STREET Water Frontage Yes Yes No No No Yes Yes Folio No. 02-3203-007-1160 02-3210-013-0190 02-3211-007-2050 02-3202-007-0200 14-2235-005-0170 23-3209-001-0013 23-3209-001-0650 02-3203-007-1170 02-3211-007-1530 02-3211-007-1540 Net Site Size (SF) 30,609 19,414 20,413 5,500 5,750 43,901 11,200 Net Site Size (Acre) 0.70 0.45 0.47 0.13 0.13 1.01 0.26 Zoning RM-1 CD-2 RM-2 RM-1 RD-1 RM-70 RM-70 Floor Area Ratio (FAR) 1.25 2.00 2.00 1.25 1.77 - - Buildable Axes 38,261 38.828 40,826 6.875 10,200 - - Date of Sale - 8/8/2017 2/2/2017 10/20/2016 8/4/2015 LISTED USTED Grantor - EUZABETH MYPP HOLDINGS LLC AZ BELL ROAD,LLC ROSTRA,LLC AL COLETA,TRUSTEE CEDAR ISLAND.It STONE,TRUSTEE Grantee - BAY DR LLC 6 6372 LLC ERIC ASRR SUZER USTED LISTED KG NORMANDY,LLC DOELLE 8955,LLC O.R.Book/Page - 30651/3625 30414/4507 30286/902 29726/4270 LISTED USTED Consideration - $3,500,000 $5,500,000 $890,000 $1,050,000 $10,400,000 52,520,000 Financing - CASH TO CASH TO CASH TO CASH TO LISTED USTED THE SELLER THE SELLER THE SELLER THE SELLER Sale Price - 53,500,000 65.500.000 5890,000 $1,050,000 $10,400,000 52,520.000 Sale Price/SF of Net Site Area - 2180.28 $269.44 $191.82 5182.81 2238.90 $225.00 Sale Price/SF of Maximum Buildable Anna - $90.14 $134.72 $129.45 5102.94 $117.93 $112.01 Time Adjustment -6% -7.4% -10.3% -11.6% -18.2% 0% 0% Time Adjusted Sale Price - $3,239,500 $4,935,600 $786,400 5858,700 510,400,000 52,520,000 Time Adjusted Sale Price Per Sq.FL of Site Avec - $166.66 $241.79 $142.96 $149.34 9236.90 5225.00 Time Adjusted Sale Price Per Sq.Ft.of Buildable Area - $83.43 $120.89 $114.39 584.19 $117.93 8112.01 ADJUSTMENTS: Location: - 0% -10% 0% 0% 0% 0% Frontage/Exposure: - 10% -10% -10% 0% 0% 0% Water Frontage: 5% 20% 20% 20% 0% 0% Size/Physical Development Potential - IL% Ili 121 ]Ila MI a Total: - 15% 0% 20% 30% -5% 5% Plus:Estimated Demolition Cost - $0 $0 $6,000 $7.000 so SO Adjusted Price - 23,725,400 $4,935,600 $949,700 $1,123,300 $9,660,000 $2,646,000 Adjusted Pnce/SF of Net Site Area - $191.89 $241.79 $172.87 $195.38 $225.05 $238.25 Adjusted Price/SF of - Buildable Area $95.95 $120.89 $138.14 $110.13 $112.04 $117.81 Asking Asking J.ALHALE APPRAISALS,INC. THE SALES COMPARISON APPROACH (LAND VALUATION) --Continued-- ANALYSIS OF COMPARABLE SALES (SITE TWO-280-330 S. SHORE DRIVE) Financing The comparable sales were"arm's length" and"cash to the seller"transactions,with typical terms of purchase and therefore,no adjustment for fmancing was required. Time of Sale The comparable land sales analyzed herein have occurred between August 2015 and August 2017, in addition to the two current listings. Due to the softening market conditions in the residential sub-market and abundant inventory to be yet absorbed, we have utilized a negative 6%/year time adjustment to reflect current market conditions in the subject area. Location The comparable sales are located between 63`" Street and 89th Street, in the North Beach section of Miami Beach. However,Comparable Land Sale Number Two required a negative locational adjustment due to its specific location on Collins Avenue and Indian Creek Drive, at 63rd Street. FrontageNisibility/Exposure Site Two,with frontage on one street,is superior to Comparable Land Sale Number One, and inferior to Comparable Land Sale Numbers Two and Three with multiple street frontages. Comparable Sale Numbers One(limited water frontage) and Comparable Sale Numbers Two, Three and Four with no water frontage, required a positive adjustment for lack of or inferior water frontage along the bay or waterway. Configuration Site Two and the comparable sites are generally shaped adequately for development,with adequate frontage and depth,thereby requiring no adjustment for configuration. Size/Scale and Physical Development Potential and Functional Utility Comparable Sale Numbers Three, Four and Six were inferior to Site Two in terms of physical development potential and functional utility due to their significantly smaller size, thereby requiring a positive adjustment. Comparable Sale Number Five was superior to Site Two in terms of physical development potential and functional utility due to its larger size, thereby requiring a negative adjustment. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -27- THE SALES COMPARISON APPROACH (LAND VALUATION) -- Continued— ANALYSIS OF COMPARABLE LAND SALES(SITE TWO-280-330 S.SHORE DRIVE) Topography Site Two and the comparable land sales were generally level at street-grade. However,we have estimated the cost of demolition at the comparable sales and the subject site, if there were older improvements which would be razed for redevelopment. CORRELATION OF VALUE The comparable sales indicated unadjusted sale price/SF of site area of$166.86, 241.79 $142.98, $149.34, $236.90 (asking price)and$225 (asking price). The comparable sales indicated unadjusted sale price/SF of buildable area of$83.43, $120.89,$114.39,$84.19,$117.93 (asking price)and$112.01 (asking price). After the analytical adjustments,the comparable sales indicated adjusted sale price/SF of buildable area of$95.95,$120.89,$138.14,$110.13,$112.04(asking price;based on maximum density of 70 units per acre and 1,250 SF average building area per unit)and $117.61 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit). Based on the preceding analysis,$100/SF to$110/SF of buildable area reflect a reasonable range of Market Value of the Fee Simple Interest in Site Two,in"as is"condition(as vacant land). Then: 38,261 SF x$100/SF = $3,826,100 38,261 SF x$110/SF = $4,208,710 Estimated Market Value of the Fee Simple Interest in Site Two, in"as is" Condition(Rounded) 54,000,000 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -28 - LOMPAHAIILE LAND SALES 899-0e1 Lad Land land Land Land Land 81N 3 Bala 1 1 .2 BEN 3 Sale 4 LYIYq 5 Using 8 Address 1144 MARSEILLE 880 71ST 6372-6382 COLLINS AVE 7945 HARDING 8943 HARDING 7913 WEST 7922 EAST DRIVE STREET 8 6375 INDIAN CREEK DR. AVENUE AVENUE DRIVE DRIVE MIAMI BEACH MIAMI BEACH MIAMI BEACH MIAMI BEACH SURFSIDE N.BAY VILAGE N.BAY VILAGE FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA Frontage/Exposure On MARSEILLE DRIVE (71ST STREET) COLLINS AVENUE HARDING AVENUE HARDING AVENUE WEST DRIVE EAST DRIVE BAY DRIVE INDIAN CREEK DRIVE 80TH STREET Water Frontage No Yes No No No Yes Yes Folio No. 02-3210-013-1110 02-3210-013-0190 02.3211-007-2050 02-3202-007-0200 142235-005-0170 23-3209-001-0013 23-3209-001-0650 02-3211-007-1530 02-3211-007-1540 Net Site Size (SF) 13,250 19,414 20,413 5,500 5,750 43,901 11,200 Net Site Size (Acre) 0.30 0.45 0.47 0.13 0.13 1.01 0.28 Zoning RM-1 CD-2 RM-2 RM-1 RD-1 RM-70 RM-70 Floor Area Ratio (FAR) 1.25 2.00 2.00 1.25 1.77 - .. Buildable Area 16,562 38,828 40,826 6,875 10,200 - - Date of Sale - 8/8/2017 2/2/2017 10/20/2016 8/4/2015 LISTED LISTED Grantor - ELIZABETH MYPP HOLDINGS LLC AZ BELL ROAD,LLC ROSTRA,LLC AL COLETA,TRUSTEE CEDAR ISLAND,LP STONE,TRUSTEE Grantee - BAY DR LLC& 6372 LLC ERIC ASRR SUZER USTED LISTED KG NORMANDY,LLC DOELLE 8955,LLC O.R.Book/Page - 30651/3625 30414/4507 30286/902 29726/4270 LISTED USTED Consideration - $3,500,000 55,500,000 $890,000 $1,050,000 $10,400,000 $2,520,000 Financing - CASH TO CASH TO CASH TO CASH TO LISTED USTED THE SELLER THE SELLER THE SELLER THE SELLER Sale Price - $3,500,000 $5,500,000 5890.000 $1.050,000 510,400.000 $2,520,000 Sale Price/SF of Net Site Area - $180.28 $289.44 $181.82 $182.81 $238.90 $225.00 Sale Price/SF of Maximum Buildable Area - $90.14 $134.72 $129.45 $102.94 $117.93 $112.01 Time Adjustment -6% -7.4% -10.3% -11.6% -18.2% 0% 0% Time Adjusted Sale Price - $3,239,500 $4,935,600 $786,400 $858,700 510.400,000 $2,520.000 Time Adjusted Sale Price Per Sq.Ft.of Site Area - $199.85 $241.79 $142.98 $149.34 $236.90 $225.00 Time Adjusted Sale Price Per Sq.Ft.of Buildable Area I - $93.43 $120.99 $114.39 $84.19 $117.93 $112.01 1 ADJUSTMENTS: Location: - 0% -10% 0% 0% 0% 0' Frontage/Exposure: - 10% -10% -10% 0% 0% 0' Water Frontage' -10% 0% 0% 0% -20% Size/Physical Development Potential: - - 10% -10% a Sinn° -15% Total: - -10% -30% -5% 5% -35% Plus:Estimated Demolition Cost - $0 $0 $6,000 $7,000 $0 so Adjusted Price - $2,911,900 $3,454,900 $753,100 $908,600 $6,760,000 $2,016,000 Adjusted Pnce/SF of Net Site Area - $150.18 $169.25 $138.93 $158.02 $153.98 $180.00 Adjusted Price/SF of - Bulldeble Area $75.09 $84.82 $109.54 $89.08 $78.88 $89.81 Asking _ Asking J.ALHALE APPRAISALS,INC. THE SALES COMPARISON APPROACH(LAND VALUATION) --Continued-- ANALYSIS OF COMPARABLE SALES (SITE THREE- 1144 MARSEILLE DRIVE) Financing The comparable sales were"arm's length"and"cash to the seller"transactions,with typical terms of purchase and therefore,no adjustment for financing was required. Time of Sale The comparable land sales analyzed herein have occurred between August 2015 and August 2017, in addition to the two current listings. Due to the softening market conditions in the residential sub-market and abundant inventory to be yet absorbed, we have utilized a negative 6%/year time adjustment to reflect current market conditions in the subject area. Location The comparable sales are located between 63'd Street and 89"' Street, in the North Beach section of Miami Beach. However,Comparable Land Sale Number Two required a negative locational adjustment due to its specific location on Collins Avenue and Indian Creek Drive, at 63'd Street. Frontage/Visibility/Exposure Site Three,with frontage on one street,is superior to Comparable Land Sale Number One, and inferior to Comparable Land Sale Numbers Two and Three with multiple street frontages. Comparable Sale Numbers One,Five and Six required a negative adjustment for their water frontage along the bay or waterway. Configuration Site Three and the comparable sites are generally shaped adequately for development,with adequate frontage and depth,thereby requiring no adjustment for configuration. Size/Scale and Physical Development Potential and Functional Utility Comparable Sale Numbers Three and Four were inferior to Site Three in terms of physical development potential and functional utility due to their significantly smaller size, thereby requiring a positive adjustment. Comparable Sale Numbers One, Two and Five were superior to Site Three in terms of physical development potential and functional utility due to their significantly larger size,thereby requiring a negative adjustment. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 30 - THE SALES COMPARISON APPROACH (LAND VALUATION) -- Continued— ANALYSIS OF COMPARABLE LAND SALES (SITE THREE - 1144 MARSEILLE DRIVE) Topography Site Three and the comparable land sales were generally level at street-grade. However,we have estimated the cost of demolition at the comparable sales and the subject site, if there were older improvements which would be razed for redevelopment. CORRELATION OF VALUE The comparable sales indicated unadjusted sale price/SF of site area of$166.86, 241.79 $142.98, $149.34, $236.90 (asking price) and $225 (asking price). The comparable sales indicated unadjusted sale price/SF of buildable area of$83.43, $120.89, $114.39, $84.19, $117.93 (asking price) and $112.01 (asking price). After the analytical adjustments,the comparable sales indicated adjusted sale price/SF of buildable area of$75.09, $84.62, $109.54, $89.08, $76.66 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit)and $89.61 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit). Based on the preceding analysis, $80/SF of buildable area reflects a reasonable estimate of Market Value of the Fee Simple Interest in Site Three, in"as is"condition(as vacant land). Then: 16,562 SF x $80/SF = $1,324,960 Estimated Market Value of the Fee Simple Interest in Site Three, in"as is" Condition(Rounded) $1,325,000 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 31 - COMPARABLE LAND SALES !MOW Land Land Land Land Land Land 8na 4 Bale 1 Sale 2 Sala 3 Sale 4 Listing 5 Doling 6 Address 1144-1168 MARSEILLE 880 71ST 6372-6382 COLLINS AVE 7945 HARDING 8943 HARDING 7913 WEST 7922 EAST DRIVE STREET 8 6375 INDIAN CREEK DR. AVENUE AVENUE DRIVE DRIVE MIAMI BEACH MIAMI BEACH MIAMI BEACH MIAMI BEACH SURFSIDE N.BAY VILAGE N.BAY VILAGE FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA FLORIDA Frontage/Exposure On MARSEILLE DRIVE (71ST STREET) COLLINS AVENUE HARDING AVENUE HARDING AVENUE WEST DRIVE EAST DRIVE BAY DRIVE INDIAN CREEK DRIVE 80TH STREET Water Frontage No Yes No No No Yes Yes Folio No. 02-3210-013-1110 02-3210-013-0190 02-3211-007-2050 02-3202-007-0200 142235-005-0170 23-3209-001-0013 23-3209-001-0650 02-3210-012-0320 02-3211-007-1530 02-3210.012-0310 023211-007-1540 Net Site Size (SF) 31,729 19,414 20,413 5,500 5,750 43,901 11,200 Net Site Size (Acre) 0.73 0.45 0.47 0.13 0.13 1.01 0.26 Zoning RM-1 CD-2 RM-2 R61-1 RD-1 RM-70 RM-70 Floor Area Ratio (FAR) 1.25 2.00 2.00 1.25 1.77 - - Buildable Area 39,661 38,828 40,826 6,875 10,200 - - Date at Sale - 8/8/2017 2/2/2017 10/20/2016 8/4/2015 LISTED USTED Grantor - ELIZABETH MYPP HOLDINGS LLC AZ BELL ROAD,LLC ROSTRA,LLC AL COLETA,TRUSTEE CEDAR ISLAND,LP STONE,TRUSTEE Grantee - BAY DR LLC 8 6372 LLC ERIC ASRR SUZER USTED LISTED KG NORMANDY,LLC DOELLE 8955,LLC O.R.Book/Page - 30651/3625 30414/4507 30286/902 29726/4270 LISTED LISTED Consideration - $3,500,000 $5,500,000 8890,000 $1,050,000 $10,400,000 $2,520,000 Financing - CASH TO CASH TO CASH TO CASH TO LISTED USTED THE SELLER THE SELLER THE SELLER THE SELLER Sale Price - $3,500,000 $5,500,000 $890,000 $1,050,000 $10,400,000 $2,520,000 Sale Price/SF of Net Site Area - $180.28 $269.44 $161.82 $182.61 $236.90 $225.00 Sale Price/SF of Maximum Buildable Area - $90.14 $134.72 $129.45 $102.94 $117.93 $112.01 Time Adjustment -6% -7.4% -10.3% -11.691, -18.2% 0% 0.. Time Adjusted Sale Price - $3,239,500 $4,935,600 $786,400 $858,700 $10,400,000 92,520.0%• Time Adjusted Sale Pnce Per Sq.Ft.of Site Area - $166.96 $241.79 $142.98 5149.34 $236.90 $225.00 Time Adjusted Sale Price Per Sq.Ft.of Buildable Area - $83.43 $120.69 $114.39 $84.19 $117.93 $112.01 ADJUSTMENTS: Location: - 0% -10% 0% 0% 0% 0% Frontage/Exposure: - 10% -10% -10% 0% 0% 0% Water Frontage: -10% 0% 0% 0% -20% -20". Size/Physical Development Potential, 22.R°(a • 1IYa 01Ya 199i Iii Total: - 0% -20% 0% 10% -25% -15" Plus.Estimated Demolition Cost - $0 $0 56,000 57.000 SO 50 Adjusted Price - $3,239,500 83,948,500 $792,400 $961,600 $7,800,000 $2,142,000 Adjusted Price/SF of Net Site Area - $188.88 $193.43 $144.07 $185.50 $177.87 $191.25 Adjusted Price/SF of - Buildable Area $83.43 $98.72 $115.28 $93.29 $88.45 $95.21 Asking Asldng - J.ALHALE APPRAISALS,INC. THE SALES COMPARISON APPROACH(LAND VALUATION) --Continued-- ANALYSIS OF COMPARABLE SALES(SITE FOUR-1144-1168 MARSEILLE DRIVE) Financing The comparable sales were"arm's length"and"cash to the seller"transactions,with typical terms of purchase and therefore,no adjustment for fmancing was required. Time of Sale The comparable land sales analyzed herein have occurred between August 2015 and August 2017, in addition to the two current listings. Due to the softening market conditions in the residential sub-market and abundant inventory to be yet absorbed, we have utilized a negative 6%/year time adjustment to reflect current market conditions in the subject area. Location The comparable sales are located between 63'd Street and 89`" Street, in the North Beach section of Miami Beach. However,Comparable Land Sale Number Two required a negative locational adjustment due to its specific location on Collins Avenue and Indian Creek Drive, at 63'd Street. Frontage/Visibility/Exposure Site Four,with frontage on one street,is superior to Comparable Land Sale Number One, and inferior to Comparable Land Sale Numbers Two and Three with multiple street frontages. Comparable Sale Numbers One,Five and Six required a negative adjustment for their water frontage along the bay or waterway. Configuration Site Four and the comparable sites are generally shaped adequately for development,with adequate frontage and depth,thereby requiring no adjustment for configuration. Size/Scale and Physical Development Potential and Functional Utility Comparable Sale Numbers Three, Four and Six were inferior to Site Four in terms of physical development potential and functional utility due to their significantly smaller size, thereby requiring a positive adjustment. Comparable Listing for Sale Number Five was superior to Site Four in terms of physical development potential and functional utility due to its larger size,thereby requiring a negative adjustment. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -33 - THE SALES COMPARISON APPROACH (LAND VALUATION) -- Continued— ANALYSIS OF COMPARABLE LAND SALES (SITE FOUR- 1144-1168 MARSEILLE DRIVE) Topography Site Four and the comparable land sales were generally level at street-grade. However, we have estimated the cost of demolition at the comparable sales and the subject site, if there were older improvements which would be razed for redevelopment. CORRELATION OF VALUE The comparable sales indicated unadjusted sale price/SF of site area of$166.86, 241.79 $142.98, $149.34, $236.90 (asking price) and$225 (asking price). The comparable sales indicated unadjusted sale price/SF of buildable area of$83.43, $120.89, $114.39, $84.19, $117.93 (asking price) and $112.01 (asking price). After the analytical adjustments,the comparable sales indicated adjusted sale price/SF of buildable area of$83.43, $96.72, $115.26, $93.29, $88.45 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit)and $95.21 (asking price; based on maximum density of 70 units per acre and 1,250 SF average building area per unit). Based on the preceding analysis, $90/SF to $100/SF of buildable area reflect a reasonable range of Market Value of the Fee Simple Interest in Site Four,as vacant. The estimated cost of demolition of the two 1-story buildings was deducted to arrive at the"as is"value. Then: 39,661 SF x $90/SF = $3,569,490 39,661 SF x $100/SF = $3,966,100 Estimated Market Value of the Fee Simple Interest in Site Four, "as if' Vacant (Rounded) $3,750,000 Less: Estimated Cost of Demolition and Carting of Existing Vacant Improvements $50,000 Estimated Market Value of the Fee Simple Interest in Site Four in"as is" Condition(Rounded) $3,700,000 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 34 - RECONCILIATION AND FINAL VALUE ESTIMATE MARKET VALUE ESTIMATES: Income Capitalization Approach to Value: Not Applicable Sales Comparison Approach to Value: $2,400,000 Site 1 As is $4,000,000 Site 2 As is $1,325,000 Site 3 As is $3,700,000 Site 4 As is $3,750,000 Site 4 As if Vacant Cost Approach to Value: Not Applicable Reconciled Final Value Estimates: $2,400,000 Site 1 As is $4,000,000 Site 2 As is $1,325,000 Site 3 As is $3,700,000 Site 4 As is $3,750,000 Site 4 As if Vacant In order to provide estimates of the Market Value of the Fee Simple Interest in Properties One,Two and Three in"as is"condition(land value),as of November 16,2018,the Market Value of the Fee Simple Interest in Property Four, "as if' vacant (land value), as of November 16,2018;and the Market Value of the Fee Simple Interest in Property Four in"as is" condition (land value, less estimated cost of demolition and carting of existing older improvements),as of November 16,2018,we have utilized the Sales Comparison Approach to Value. The Sales Comparison Approach to Value is based upon a comparison between recently sold sites and the subject sites, utilizing the sale price per square foot of buildable area unit of comparison. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 35 - RECONCILIATION AND FINAL VALUE ESTIMATE It is my estimate that the Market Value of the Fee Simple Interest in Properties One,Two and Three in"as is"condition(land value),as of November 16,2018,the Market Value of the Fee Simple Interest in Property Four, "as if' vacant (land value), as of November 16, 2018;and the Market Value of the Fee Simple Interest in Property Four in"as is"condition (land value,less estimated cost of demolition and carting of existing older improvements), as of November 16,2018, was: MARKET VALUE OF THE FEE SIMPLE INTEREST N SITE ONE(165-185 SOUTH SHORE DRIVE,MIAMI BEACH) IN"AS IS"CONDITION(LAND VALUE) TWO MILLION FOUR HUNDRED THOUSAND DOLLARS ($2,400,000) MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE TWO(280-330 SOUTH SHORE DRIVE, MIAMI BEACH) N"AS IS"CONDITION(LAND VALUE) FOUR MILLION DOLLARS ($4,000,000) MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE THREE(1144 MARSEILLE DRIVE, MIAMI BEACH) N"AS IS"CONDITION(LAND VALUE) ONE MILLION THREE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($1,325,000) MARKET VALUE OF THE FEE SIMPLE INTEREST IN SITE FOUR(1144-1168 MARSEILLE DRIVE,MIAMI BEACH) "AS IF"VACANT THREE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($3,750,000) MARKET VALUE OF THE FEE SIMPLE INTEREST N SITE FOUR(1144-1168 MARSEILLE DRIVE, MIAMI BEACH) N"AS IS"CONDITION(LAND VALUE,LESS DEMOLITION COST) THREE MILLION SEVEN HUNDRED THOUSAND DOLLARS ($3,700,000) J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 36 - CONTINGENT AND LIMITING CONDITIONS We assume no responsibility for matters legal in nature,nor do we render any opinion as to the title,which is assumed to be marketable. The properties are appraised as though under responsible ownership and management. When applicable,the sketch in this report is included to assist the reader in visualizing the properties,and we assume no responsibility for its accuracy. We have made no survey of the properties. We are not required to give testimony or appear in court because of having made this appraisal, with reference to the properties in question,unless arrangements have been previously made thereof. Additional professional valuation services rendered would require further compensation under a separate contractual agreement. Where applicable, the distribution of the total valuation in this report between land and improvements applies only under the existing program of utilizations. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. We assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. We assume no responsibility for such conditions or for engineering which might be required to discover such factors. Information, estimates and opinions furnished to us and contained in this report were obtained from sources considered reliable and believed to be true and correct. However,no responsibility for accuracy can be assumed by us. No one other than the undersigned prepared the analyses, conclusions and estimates concerning the real estate set forth in this appraisal. Neither all nor any part of the contents of this report,or copy thereof, shall be used for any purpose by any but the client without the previous written consent of the appraiser, and/or the client; nor shall it be conveyed by any including the client to the public through advertising, publications, news, sales or other media, without the written consent and approval of the author,particularly the valuation conclusions,identity of the appraiser,or any reference to any professional society or institute or any initialed designation conferred upon the appraiser. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute,the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of Florida for state certified real estate appraisers,as well as current Federal regulatory agency criteria. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -37- CONTINGENT AND LIMITING CONDITIONS --Continued— The existence of hazardous materials, which may or may not be present on the properties, was not observed. We have no knowledge of the existence of such materials on or in the properties, nor are we qualified to detect such substances. The presence of potentially hazardous materials and/or substances may affect the value of the properties. The value estimate reflected in this appraisal report is predicated on the assumption that there is no such material on or in the properties that would cause a loss in value. No responsibility is assumed for any such conditions,or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. The Americans with Disabilities Act("ADA")became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the"ADA". It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the "ADA"could reveal that the property is not in compliance with one or more of the requirements of the Act. Since we have no direct evidence relating to this issue, we did not consider possible non-compliance with the requirement of"ADA"in estimating the value of the property. The appraisal report can not be used in connection with a real estate syndicate(s)or securities related activity(ies) and is invalid if so used without the previous knowledge or written consent of the appraiser. Said activities include but would not be limited to activities which are required to be registered with the United States Securities and Exchange Commission or any state regulatory agency regulating investments made as a public offering, as well as activities involving Real Estate Investment Trusts,Limited Partnerships,Mortgage Backed Securities and any other transaction which is subject to the securities Exchange Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Advisors Act of 1940 or State Blue Sky or securities laws or any amendments thereto. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants - 38 - CERTIFICATION The undersigned do hereby certify that,to the best of our knowledge and belief, except as otherwise noted in the appraisal report: - The statements of fact contained in this report, upon which the analyses, opinions and conclusions expressed herein are based,are true and correct. - I have performed no services as an appraiser regarding the properties that are the subject of this appraisal assignment,within the three year period preceding the acceptance of this assignment. - The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are our personal,unbiased professional analyses, opinions and conclusions. - We have no present or prospective interest in the properties that are the subject of this report and we have no personal interest or bias with respect to the parties involved. - The amount of our compensation is not contingent upon the development or reporting of a predetermined value of direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - Our analyses,opinions and conclusions were developed,and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and the requirements of the State of Florida for state certified real estate appraisers,as well as current Federal regulatory agency criteria. - My engagement in this assignment was not contingent upon developing or reporting predetermined values. The appraisal assignment has not been based on a required minimum valuation,a specific valuation, or the approval of a loan. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives,as well as the Florida Real Estate Appraisal Board. - As of the date of this report, Jozef Alhale has completed the requirements of the continuing education program of The Appraisal Institute. - The appraiser has visually inspected the perimeters of the subject fenced sites which are described in this report. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -39 - CERTIFICATION - No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report, nor provided significant professional assistance to the person signing this report. It is the opinion of the undersigned that the estimated Market Value of the Fee Simple Interest in Properties One,Two and Three in"as is"condition(land value),as of November 16,2018,the Market Value of the Fee Simple Interest in Property Four,"as if'vacant(land value), as of November 16, 2018; and the Market Value of the Fee Simple Interest in Property Four in"as is"condition(land value,less estimated cost of demolition and carting of existing older improvements), as of November 16,2018,was as described herein. Jozef Alhale, MAI State Certified General Appraiser License No. RZ 0001557 J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -40 - ADDENDA J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -41 - JOZEF ALHALE,MAI,CCIM 3475 Sheridan Street,Suite 313 Hollywood,Florida 33021 (305) 613-7477 jbalhalena,aol.com www.jalhaleappraisals.com QUALIFICATIONS Experience: Thirty years in the field of real estate appraisal, appraisal review, consultation, expert witness, economic research and market analysis. Membership: Appraisal Institute,MAI Designee CCIM Institute,CCIM Designee-District Board Member 2019 Miami Society of Commercial Realtors Miami Association of Realtors Professional Experience: J. Alhale Appraisals,Inc.,President, September 2009 to present J.B.Alhale&Associates, Inc.,President, May 1994 to present Keller Williams Commercial, Licensed Agent, May 2017 to present Dixon and Friedman, Inc., Senior Appraiser, Oct. 1991 -May 1994 R.G. Davis&Associates, Inc., Fee Appraiser,Jan. 1991 -Oct. 1991 Izenberg Appraisal,Inc., Staff Appraiser,July 1988 -Dec. 1990 Education: Master of Science,Computer Science Rensselear Polytechnic Institute,Troy,New York Bachelor of Arts, Cum Laude,Computer Science New York University,New York,New York Associate Engineering Degree,Computer Science Tel Aviv University,Tel Aviv, Israel Licensed: State Certified General Real Estate Appraiser-State of Florida Real Estate Salesman- State of Florida Assignments: Vacant land, industrial facilities, shopping centers, office buildings, rental and condominium apartment buildings, hotel/motel facilities, other special-purpose properties, air rights, as well as valuation of Leased Fee and Leasehold Interests, undivided partial interests for financing, litigation, divorce, estate taxes, gift taxes, trusts, etc. Economic research, expert witness, Highest and Best Use analysis, market analysis,feasibility analysis pertaining to commercial,industrial, lodging, retail, office, multi-family residential and special-purpose properties. J.ALHALE APPRAISALS,INC. Real Estate Appraisers and Consultants -42 -