540-2007 RDA Reso
RESOLUTION NO. 540-2007
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY (RDA) APPROVING
AND AUTHORIZING AN INITIAL APPROPRIATION OF $500,000
FROM CITY CENTER/HISTORIC CONVENTION VILLAGE (CITY
CENTER) REDEVELOPMENT AGENCY FUNDS, TO MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), A NOT FOR PROFIT COMMUNITY DEVELOPMENT
CORPORATION, FOR THE PURPOSE OF PROVIDING FUNDS
TO MBCDC FOR THE INITIAL REQUIRED DEPOSITS FOR
MBCDC'S PROPOSED PURCHASE OF THE FOLLOWING
THREE PROPERTIES LOCATED WITHIN THE CITY CENTER
RDA: 1940 PARK AVENUE; 1965-1975 WASHINGTON
AVENUE; AND 2001 WASHINGTON AVENUE, FOR THE
PURCHASE PRICE OF $13,700,000; WITH THE
AFRORESTATED PROPERTIES, WHICH ARE ALSO
HISTORICALLY DESIGNATED STRUCTURES TO BE
ACQUIRED, RESTORED, RENOVATED, OPERATED AND
MAINTAINED BY MBCDC FOR THE EXPRESS PURPOSE OF i)
PRESERVING THESE HISTORIC STRUCTURES WITHIN THE
CITY CENTER RDA, AND ii) MAINTAINING A DESIGNATED
NUMBER OF REHABILITATED/RENOVATED UNITS WITHIN
THE PROPERTIES AS AFFORDABLE HOUSING FOR LOW TO
MODERATE INCOME INDIVIDUALS; AS PROVIDED FOR IN,
AND IN CONFORMANCE WITH THE PROVISIONS OF THE CITY
CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT
AND REVITALIZATION AREA PLAN; PROVIDED FURTHER,
THAT IN THE EVENT THAT MBCDC DOES NOT PROCEED
WITH CLOSING OF THE SUBJECT PROPERTIES, THEN IT
SHALL REIMBURSE THE RDA FOR THE AFORESTATED
DEPOSITS, IN THE AMOUNT OF $500,000.
WHEREAS, Miami Beach Community Development Corporation (MBCDC), a not for
profit housing corporation and the City of Miami Beach's designated Community Housing
Development Organization (CHDO), has contracted to purchase three (3) apartment
buildings, located within the City Center/Historic Convention Village Redevelopment Area
(City Center RDA), and has requested that the RDA assist with funding for its acquisition
and rehabilitation of said buildings; and
WHEREAS, the three buildings are: the Barclay Hotel, located at 1940 Park
Avenue; the Allen, located at 2001 Washington Avenue; and the London House, located at
1965-1975 Washington Avenue; and
WHEREAS, the aforestated buildings are contributing historic significant structures
which have fallen into a state of disrepair; and
WHEREAS, pursuant to the City Center/Historic Convention Village Redevelopment
and Revitalization Area Plan, as adopted by the City Commission and the Miami Beach
Redevelopment Agency, respectively, on February 12, 1993, and as approved by the
Miami-Dade County Board of County Commissioners on March 20, 1993 (the Plan), one of
the primary Plan objectives in promoting redevelopment and revitalization in the City
Center RDA allows for the renovation and preservation of historically designated structures;
and
WHEREAS, additionally, the Plan, as required by Section 163.362, Florida Statutes
(the Community Redevelopment Act of 1969), contains an analysis of impacts of
redevelopment activity(ies) upon residents within the City Center RDA; and
WHEREAS, the Plan states that the City Center RDA contains a number of low and
moderate income, and contemplated that, as the City Center area revitalized, rents would
increase, which would force low and moderate income residents within the area to relocate;
and
WHEREAS the Plan provides that, as the City Center RDA revitalizes, the City and
the RDA would continue to create affordable housing opportunities, both within and outside
the City Center RDA, to minimize the loss of affordable housing within the area; and
WHEREAS, the City of Miami Beach's various affordable housing programs, as set
forth in the City's Five Year Consolidated Plan, address the City's affordable housing
needs throughout the City, through the allocation of various federal, State, and local
funding programs; nevertheless, as has increasingly been the case each year, cut-backs in
the available programs and funding services have resulted in domestic reductions to
available affordable housing resources, while needs, particularly for low to moderate
income individuals and families, have been disproportionately increasing; and
WHEREAS, MBCDC's proposed purchase of the aforestated properties, has
presented the RDA with a unique opportunity: the commitment of RDA funding to the
proposed project would be consistent with and satisfy one of the Plan objectives of
restoring and preserving historically contributing properties within the City Center RDA;
and, as importantly (if not more so), the proposed project presents an opportunity to
maintain (and, in effect, also create new), affordable housing opportunities for low to
moderate income residents within the City Center RDA, thereby satisfying another Plan
objective of continuing to minimize and mitigate the loss of such affordable housing within
the area; and
WHEREAS, the contract purchase price for all three properties is $13,700,000, or
$263 per square foot, which is consistent with the updated appraisal valuations obtained by
MBCDC for the properties; and
WHEREAS, upon execution of the purchase and sale agreement for said
properties, MBCDC was required to provide an initial deposit in the amount of $100,000,
with an additional $400,000 deposit due on January 31,2007; and
WHEREAS, MBCDC has requested that the RDA front said deposit amounts, in
advance of the anticipated closing date, which is scheduled for April 1 ,2007; and,
WHEREAS, in order to comply with this time frame, and to enable MBCDC to
proceed with the purchase of the buildings, the Executive Director would recommend that
the Chairman and Members authorize an initial appropriation of $500,000 from City Center
RDA funds, to reimburse MBCDC for the initial deposit as well as for payment of the
second deposit (as noted-above); and
WHEREAS, the Executive Director further recommends that the aforestated
funding in the amount of $500,000, be appropriated to MBCDC with the express condition
that MBCDC warrant and represent to the RDA in writing that, in the event that MBCDC
does not, or is otherwise unable to close on the aforestated properties, then it shall
reimburse the RDA said deposit monies in full; and
WHEREAS, notwithstanding the foregoing, it is anticipated that, should MBCDC (in
discussion with RDA Staff) proceed to close on the subject properties, a request for
additional funding, representing the balance of the purchase price will be made to the
Chairman and Members of the RDA, for their consideration.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MIAMI BEACH,
FLORIDA, that the Chairman and Members of the RDA hereby approve and authorize an
initial appropriation of $500,000 from City Center/Historic Convention Village (City Center)
Redevelopment Agency Funds to Miami Beach Community Development Corporation
(MBCDC), a Not for Profit Community Development Corporation, for the purpose of
providing funds to MBCDC for the initial required deposits for MBCDC's proposed
purchase of the following three properties located with the City Center RDA: 1940 Park
Avenue; 1965-1975 Washington Avenue; and 2001 Washington Avenue, for the purchase
price of $13,700,000; with the aforestated properties, which are also historically designated
structures, to be acquired, restored, renovated, operated and maintained by MBCDC for
the express purpose of i) preserving these historic structures within the City Center RDA,
and ii) maintaining a designated number of rehabilitated/renovated units within the
properties as affordable housing for low to moderate income individuals: as provided for in,
and conformance with the provisions of the City Center/Historic Convention Village
Redevelopment and Revitalization Area Plan; provided further, that in the event that
MBCDC does not proceed with the closing of the subject properties, then it shall reimburse
the RDA for the afore stated deposits, in the amount of $500,000.
PASSED and ADOPTED this 17th day of January, 2007.
~Jf~
ATTEST:
SECRETARY CHAIRMAN
Robert Parcher David Dermer
T:\AGENDA\2007UAN17\REGULAR\RDA WASHINGTON AVE HOUSING RESO.DOC
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FORM & LANGUAGE
& F R EXECUTION
I J f )01
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MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution authorizing an initial appropriating of $500,000 from City Center RDA funds, to Miami Beach Community Development
Corporation (MBCOC), for the purpose of providing funds to MBCDC for the initial required deposits in connection with MBGDC's
proposed purchase of three properties located at 1940 Park Avenue. 1965-1975 Washington Avenue and 2001 Washington Avenue,
for the purpose of renovating and preserving historically designated structures and to preserve the existing stock of low-moderate income
housing units, in accordance with the provisions of the City Center Redevelopment Area Plan; and further, providing that in the event
MBCDC does not close on the subiect oroDerties. then it shall reimburse the RDA in full for the aforestated deoosits.
Ke Intended Outcome Su orted:
Increase access to workforce or affordable housing; reduce the number of homeless
Issue:
Shall the Ghairman and Members of the RedevelopmentAgency of the Gity of Miami Beach, Florida, authorize an initial appropriation of
$500.000 for the purpose of securing MBCDC's aceuisition of properties located at 1940 Park Avenue, 1965-1975 Washington
Avenue and 2001 Washington Avenue, for the purpose of renovating and preserving historically designated structures and to preserve
the existinQ stock of low-moderate income housina units in the area?
Item Summarv/Recommendation:
MBGOC has entered into a contract agreement to purchase three apartment buildings located in the City Genter area and is requesting
for the ROA to assist in their acquisition. The three buildings include the Barclay Hotel, located at 1940 Park Avenue, The Allen, located
at 2001 Washington Avenue and the London House, located at 1965-1975 Washington Avenue. The City Center Redevelopment Plan
provides for the acquisition of properties within the district to allow for rehabilitation and economic reuse as well as preservation of
historically designated structures. Since all three properties are listed as contributing historic buildings, they are eligible for acquisition
under the Plan. The aceuisition of these buildings also provides the opportunity to partner with MBCDC to leverage state and federal
funds to rehabilitate the properties as affordable housing, which is also consistent with the Plan.
The contract purchase price for all three properties is $13,700,000, or $263 per square foot, which is consistent with the attached
appraisal valuations for each of the properties. Upon entering into the purchase and sale agreement, MBCDG was required to pay a
$100,000 deposit. An additional $400,000 deposit which will be required on January 31. 2007. MBCDC is asking for the RDA to front
these amounts in advance of the anticipated closing date, which is scheduled for April 1, 2007. MBCOG is also requesting
reimbursement of due-diligence related costs, associated with updating the appraisals and inspection reports, at an anticipated cost not
to exceed $25,000. In order to comply with this time frame and secure the purchase of the buildings, Staff recommends an initial
appropriation of $500,000 to reimburse MBCDC for the initial deposit as well as for payment of the second deposit (as noted-above).
Staff further recommends authorizing the Administration to negotiate a funding and/or loan agreement with MBGOG, which would go
towards securing an additional appropriation from the RDA for the balance of the purchase price plus related closing costs, as well as
provide terms and conditions obligating MaCOC to designate and maintain an agreed number of units within the properties as affordable
rental housinQ for low to moderate income residents.
Adviso Board Recommendation:
Finance & Citywide Projects Committee Oct 25 & Dee 21, 2006 Recommended approval to proceed with purchase, subject to coming
back to Gommittee with details ertainin to terms and conditions for a reement with MaGOG to urchase ro erties.
Financial Information:
'T~r"
I
1
Total
Amount
$500,000
$500,000
Account
City Center RDA
Approved
Financial Impact Summary:
Clerk's Office Le islative Trackin
Bonde. Ex! #6363
Si n-Ofts:
R lopment Coordinator
Executive Director
lD
.....
MIAMIBEACH
AGENDA ITEM
DATE
.;(,4
/-/7-07
It\ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
REDEVELOPMENT AGENCY MEMORANDUM
FROM:
Chairman and Members of the Miami Beach Redevelopment Agency
Jorge M. Gonzalez, Executive Director ~ ~
January 17, 2007 (f
TO:
DATE:
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING AN INITIAL
APPROPRIATION OF $500,000 FROM CITY CENTER/HISTORIC CONVENTION
VILLAGE (CITY CENTER) REDEVELOPMENT AGENCY FUNDS, TO MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC), A NOT FOR
PROFIT COMMUNITY DEVELOPMENT CORPORATION, FOR THE PURPOSE
OF PROVIDING FUNDS TO MBCDC FOR THE INITIAL REQUIRED DEPOSITS
FOR MBCDC'S PROPOSED PURCHASE OF THE FOLLOWING THREE
PROPERTIES LOCATED WITHIN THE CITY CENTER RDA: 1940 PARK
AVENUE; 1965-1975 WASHINGTON AVENUE; AND 2001 WASHINGTON
AVENUE, FOR THE PURCHASE PRICE OF $13,700,000; WITH THE
AFORESTATED PROPERTIES, WHICH ARE ALSO HISTORICALLY
DESIGNATED STRUCTURES TO BE ACQUIRED, RESTORED, RENOVATED,
OPERATED AND MAINTAINED BY MBCDC FOR THE EXPRESS PURPOSE OF
i) PRESERVING THESE HISTORIC STRUCTURES WITHIN THE CITY CENTER
RDA, AND ii) MAINTAINING A DESIGNATED NUMBER OF
REHABILITATED/RENOVATED UNITS WITHIN THE PROPERTIES AS
AFFORDABLE HOUSING FOR LOW TO MODERATE INCOME INDIVIDUALS;
AS PROVIDED FOR IN, AND IN CONFORMANCE WITH, THE PROVISIONS OF
THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT
AND REVITALIZATION AREA PLAN; PROVIDED FURTHER, THAT IN THE
EVENT THAT MBCDC DOES NOT PROCEED WITH CLOSING OF THE
SUBJECT PROPERTIES, THEN IT SHALL REIMBURSE THE RDA FOR THE
AFORESTATED DEPOSITS, IN THE AMOUNT OF $500,000.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
Following the discussion at the October 25, 2006, Finance and Citywide Projects Committee
meeting, regarding the use of City Center/Historic Convention Village (City Center) RDA
funding to assist in the acquisition and rehabilitation of buildings within the City Center RDA,
to continue to provide affordable housing opportunities for low-moderate income residents,
the Miami Beach Community Development Corporation, (MBCDC) has contracted to
purchase three apartment buildings located in the City Center RDA and has requested
funding assistance from the RDA. The three buildings are the Barclay Hotel, located at 1940
Park Avenue; The Allen, located at 2001 Washington Avenue; and the London House,
located at 1965-1975 Washington Avenue.
Miami Beach Redevelopment Agency
January 17, 2007
City Center Property Acquisition
Page 2 of 3
Consistent with what was reported to the Finance Committee on October 25th and
subsequently at the Committee's meeting on December 215" the City Center/Historic
Convention Village Redevelopment and Revitalization Area Plan, as adopted by the Mayor
and City Commission and the Miami Beach Redevelopment Agency, on February 12, 1993,
and as subsequently approved by the Miami-Dade County Board of County Commissioners
on March 30, 1993, (the Plan), contemplates and allows for the acquisition of properties
within the City Center RDA to allow for rehabilitation and economic reuse as well as
preservation of historically designated structures. Since all three properties are listed as
contributing historic buildings, they are eligible for acquisition under the Plan.
The acquisition of these buildings also provides the opportunity to partner with MBCDC to
leverage State and Federal funds to rehabilitate the properties for low to moderate income
residents, which is also consistent with the Plan.
The Properties
Based on information compiled in the attached appraisal summaries, the Barclay Hotel was
constructed in 1935, on a 30,597 square foot site, containing 66 efficiency units, averaging
267 square feet in size. The Allen was built in 1940, on a 9,942 square foot parcel,
containing 42 units with an average size of 255 square feet. The London House was built in
1949, on a 12,059 square foot site, containing 54 units, averaging 252 square feet in size.
Both the Barclay and the London House are currently occupied as low-income rental
housing. The Allen is vacant and boarded up.
Based on engineering inspection reports obtained by MBCDC, the buildings appear to be in
fair condition. Some degree of concrete rebar spalling was observed in the basement areas
of all three buildings, which is not uncommon in structures of this age and location. The
plumbing and electrical systems in the buildings are widely deteriorated and will need to be
replaced to Code. Phase I Environmental and asbestos surveys, also obtained by MBCDC,
came back with no material findings.
It should be noted, that as part of its due diligence, MBCDC is obtaining updated appraisal
reports and is anticipated to engage a firm to conduct concrete testing of the building
structures. In addition, MBCDC is also working with an architect to develop options for
configuring the units. Due to the minimal size of the existing units in each if the buildings,
MBCDC has indicated that rehabilitation will likely involve combining units to provide for one
and two bedroom configurations, with kitchen and bathroom facilities, to better serve the
residents occupying them.
The contract purchase price for all three properties is $13,700,000, or $263 per square foot,
which is consistent with the attached appraisal valuations for each of the properties. As
noted above, MBCDC has already entered into a Purchase and Sale Agreement, which
required an initial deposit of $1 00,000 upon execution, and an additional $400,000 deposit
which will be required on January 31, 2007. MBCDC is asking that the RDA front these
deposit amounts in advance of the anticipated closing date, which is scheduled for April 1 ,
2007. MBCDC is also requesting reimbursement of due-diligence related costs, associated
with updating the appraisals and inspection reports, at an anticipated cost not to exceed
$25,000.
Miami Beach Redevelopment Agency
January 17, 2007
City Center Property Acquisition
Page 3 of 3
It should be noted that the Purchase and Sale Agreement does contain a financing
contingency, which provides for reimbursement of the deposit amounts, in the event MBCDC
is unable to secure the necessary funding commitments with which to purchase the
buildings.
In order to comply with this time frame and secure the purchase of the buildings, Staff
recommends an initial appropriation of $500,000 from City Center RDA funds, to reimburse
MBCDC for the initial deposit as well as for payment of the second deposit (as noted-above),
with the express condition that, in the event that MBCDC does not, or is otherwise unable to
close on the properties, then it shall reimburse the RDA the deposit monies in full. Staff
further recommends authorizing the Administration, to negotiate a funding and/or loan
agreement with MBCDC, which would go towards securing.a further appropriation from the
RDA for the balance of the purchase price plus related closing costs, as well as provide
terms and conditions obligating MBCDC to designate and maintain an agreed number of
units within the properties as affordable rental housing for low to moderate income residents,
in accordance with such guidelines and criteria as shall be determined by the RDA, the City,
and MBCDC. It is anticipated that such agreement(s) should be executed upon closing of
the sale of the buildings. Staff anticipates reporting back to the Finance Committee at its
next scheduled meeting on January 25, 2007, at which point details pertaining to the
proposed agreement(s) between the RDA and MBCDC shall be discussed.
CONCLUSION
The City of Miami Beach's various affordable housing programs, as set forth in the City's
Five Year Consolidated Plan, address the City's affordable housing needs throughout the
City, through the allocation of various federal, State, and local funding programs;
nevertheless, as has increasingly been the case each year, cut-backs in the available
programs and funding services have resulted in domestic reductions to available affordable
housing resources, while needs, particularly for low to moderate income individuals and
families, have been disproportionately increasing.
MBCDC's proposed purchase of the aforestated properties, has presented the RDA with a
unique opportunity: the commitment of RDA funding to the proposed project would be
consistent with and satisfy one of the Plan objectives of restoring and preserving historically
contributing properties within the City Center RDA; and, as importantly (if not more so), the
proposed project presents an opportunity to maintain (and, in effect, also create new),
affordable housing opportunities for low to moderate income residents within the City Center
RDA, thereby satisfying another Plan objective of continuing to minimize and mitigate the
loss of such affordable housing within the area.
~
JMGITH/KOB
Attachments
T:\AGENDA\2007\Jan17\RDA\Washington Ave Properties Memo.doc
EXECUTIVE SUMMARY
Physical Data
Project Name
The Allen
~
Current Ownership
200 1 Washin!,rton A venue, Inc.
Type of Project
Property Address
Apartment Building
2001 Washington Avenue
Miami Beach, Florida 33139
Location
NElc of Washington A venue and 20th Street,
adjacent to the Miami Beach Convention Center
Purpose of the Appraisal
Estimate the Market Value of the Leased Fee Estate
Date of Inspection
Effective Date of Value - "As Is"
Prospective Market Value ~ "As Renovated"
Date of Report
July I, 2005
July I, 2005
January I, 2006
July 14, 2005
(Subsequent to a 6-month renovation)
Tax Assessment 10 No(s).
Current Assessed Value
02-3234-016-0080
$1,147,887
Site Description
Land Area
Density (Units per Acre)
Land Use Plan
Zoned Use
Legal Conforming Use (yes/no)
Total Parking Spaces
Parking SpaceslUnit
Flood Zone Designation
Flood Zone Map Panel
Map Date
Census Tract
9,492 SqFt or .218 Acres
192.74
Residential Multi-Family, Medium Intensity
"RM-2"
Legal Non-Conforming Use
o Spaces
0.00
"AE"
1206510184 J
July 17,1995
43.00
Building Improvements
Type of Construction
Construction Quality
Current Condition
Number of Units
Number of Buildings
Number of Stories
Year Property Built
SqFt of Gross Living Area (GLA)
SqFt of Gross Building Area (GBA)
Average Unit Size
CBS I Stucco
Average
Fair-Poor
42
One
Three
1940
10.710 SqFt
16,276 SqFt
255 SqFt
Pending Purchase Contract Price
Per SqFt ofGLA
Per SqFt of GBA
Per Unit
Date of Contract
$3,456,000
$322.69
$212.34
$82,286
February 8, 200.5
LA WSON VALUATION GROUP, INC.
EXECUTIVE SUMMARY
Prospeetive Market Value lndkations - As Renovated
Income Capitalization Approach
Direct Capitalization Approach
Projected Potentia) Gross Income (PGJ) 105.2% $9,629 $404.401
Vacancy and Credit Loss Allowance. Concessions, Non-Revenue Units -5.2% ($473) ($19,845)
Projected Effective Gross Income (EOI) lOO.OC% $9,156 $384.556
Projected Operating Expenses (DE) 36.1% $3,309 $138,967
Projected NOr Next ll-Months 63.3% $5,800 $243,605
Capitalized Value@ 6.00% $96.669 $4.060,083
6.25% $92,802 $3,897,679
Direct Capitalization Conclusion $94,762 $3,980,000
Discounted Cash Flow Analysis Conclusion $95,714 $4,020,000
Income Capitalization Approach Conclusion 595,238 $4,000,000
Salcs Comparison Approach
Price per Unit Analysis (NOI Analysis)
Per Unit (Low) $95,000 $3,990,000
Per Unit (High) $96,000 $4,030,000
Price per SqFt Analysis
Per SqFt (Low) 5375.00 $4,020,000
Per SqFt (High) 5376.00 54,030.000
EGIM Analysis
EGIM (Low) 10.40 $3,978,748
EGIM (High) 10.50 54,017,005
Sales Comparison Conclusion $95,476 $4,010,000
Reconciled Prospective Market Value ~ "As Renovated" $4,000,000
Estimated Market Value Per Unit $95,238
Estimated Market Value Per GLA 5373.48
Estimated Market Value Per Site Area . 5421.41
Market Value Indications - As Is
Reconciled Prospective MarketValue ~ "As Renovated" 595,238 $4,000,000
Less: Entrepreneurial Profit ($8,658) ($363,636)
Less: Capital Renovation and Improvements ($3,500) (5147,000)
Less: Apartment Rental Income $0 50
Less: Soft Costs (51,500) (563,000)
Total $81,580 53,426,364
Reconciled Market Value ~ "As Is" (Rounded) $3,430,000
Estimated Market Value Per Unit $81,667
Estimated Market Value Per GLA $320.26
Estimated Market Value Per Site Area . .. 5361.36
IEstimated Insurable Value - "As Is" $1,490,000 I
ii
LAWSON V ALVA nON GROUP, INC,
EXECUTIVE SUMMARY
Physical Data
Projecl Name
The London House
Current Ownership
1975 Washinh,Tton Avenue,Inc.
Type of Project
Property Address
Apartment Building
1965.1975 Washington Avenue
Miami Beach, Florida 33139
Location
SE/c of Washington Avenue and 20th Street,
adjacent to the Miami Beach Convention Center
Purpose of the Appraisal
Estimate the Market Value of the Leased Fee Estate
Date oflnspection
Effective Date of Value - "As Is"
Prospective Market Value - "As Renovated"
Date of Report
July 1,2005
July 1,2005
January 1, 2006
July 14, 2005
(Subsequent to a 6-month renovation)
Tax Assessment ID No(s).
Current Assessed Value
02-3234-016-0080
$1,491,519
Site Description
Land Area
Density (Units per Acre)
Land Use Plan
Zoned Use
Legal Conforming Use (yes/no)
Total Parking Spaces
Parking SpaceslUnit
Flood Zone Designation
Flood Zone Map Panel
Map Date
Census Tract
12,059 SqFt or .277 Acrcs
195.06
Residential Multi~Family, Medium Intensity
"RM~2"
Legal Non-Conforming Use
o Spaces
0.00
"AE"
1206510184 J
July 17. 1995
43.00
Building Improvements
Type of Construction
Construction Quality
Current Condition
Number of Units
Number of Buildings
Number of Stories
Year Property Built
SqFt of Gross Living Area (GLA)
SqFt of Gross Building Area (GBA)
Average Unit Size
CBS / Stucco
Average
Fair~Poor
54
Two
Two and Three
1949
13,608 S4jFt
19,934 Sq~t
252 SqFl
Pending Purchase Contract Price
Per SqFl of GLA
Per SqFl of GBA
Per Unit
Date of Contract
$4,224,000
$310.41
$211.90
$78,222
February 8, 2005
LAWSON VALUATION GROUP, INC.
4'
~~'\
EXECUTIVE SUMMARY
ProspcctiyC !\larket Value Indications - As Renovated
Inl~olllc Capitalization Approach
Direct Capitalization Approach
Projected Potential Gross Income (PGI) 105.2% $9.629 $519,945
Vacancy and Credit Loss Allowance, Concessions. Non--Rcvenue Units -5.2% ($473) ($25,515)
Projected Effective Gross Income (EGJ) 100.0% $9,156 $494,430
Projected Ope:raling Expenses (OE) 37.9% $3,473 $] 87,569
Projected NOI Next Il-Months 61.5% $5,635 $304,309
Capitalized Value @ 6_00% $93,923 $5.071,821
6.25% $90,166 $4,868,948
Direct Capitalization Conclusion $92,037 $4,970,000
Discounted Cash Flow Analysis Conclusion $92,963 $5,020,000
Income Capitalization Approach Conclusion $92,593 $5,000,000
Sales Comparison Approach
Price per Unit Analysis (NOI Analysis)
Per Unit (Low) $93,000 $5,020,000
Per Unit (High) $94,000 $5,080,000
Price per SqFt Analysis
Per SqFt (Low) $368.00 $5,010,000
Per SqFt (High) $369.00 $5,020,000
EGIM Analysis
EGIM (Low) 9.90 $4,869,594
EGIM (High) 10.00 $4,918,782
Sales Comparison Conclusion $92,407 54,990,000
Reconciled Prospective Market Value - "As Renovated" $5,000,000
Estimated Market Value Per Unit $92,593
Estimated Market Value Per GLA $367.43
Estimated Market Value Per Site Area $414.63
Market Value Indications - As I.
Reconciled Prospective Market Value. "As Renovated" $92,593 55,000,000
Less: Entrepreneurial Profit ($8,418) ($454,545)
Less:. Capital Renovation and Improvements ($3,500) ($189,000)
Less: Apartment Rental Income $0 $0
Less: Soft Costs ($1,500) ($81,000)
Total $79,175 $4,275,455
Reconciled Market Value - "As Is" (Rounded) S4,280,000
Estimated Market Value Per Unit $79,259
Estimated Market Value Per GLA $314.52
Estimated Market Value Per Site Area .. $354.92
I Estimated Insurable Value - "As Is" $1,830,000 I
II
LAWSON V ALUA nON GROUP, INC,
EXECUTIVE SUMMARY
Physical Data
Project Name
The Barclay
Current Ownership
1940 Park A venue Inc.
Type of Project
Property Address
Apartment Building
J 940 Park A venue
Miami Beach, Florida 33139
Location
Between Washington A venue and Park A venue, 200 feet north
of 19th Street, adjacent to the Miami Beach Convention Center
Purpose of the Appraisal
Estimate the Market Value of the Leased Fee Estate
Date of Inspection
Effective Date of Value - "As Is"
Prospective Market Value - "As Renovated"
Date of Report
July 1,2005
July I, 2005
January I, 2006
July 14, 2005
(Subsequent to a 6-month renovation)
Tax Assessment 10 No(s).
Current Assessed Value
02-3234-016-0110
$2,252,355
Site Description
Land Area
Density (Units per Acre)
Land Use Plan
Zoned Use
Legal Conforming Use (yes/no)
Total Parking Spaces
Parking SpaceslUnit
Flood Zone Designation
Flood Zone Map Panel
Map Date
Census Tract
30,597 SqFI or .702 Acres
93.96
Residential Multi.Family, Medium Intensity
"RM-2"
Non-Conforming Use
13 Spaces
0.20
"AE"
1206510184 J
July 17, 1995
43.00
Building Improvements
Type of Construction
Construction Quality
Current Condition
Number of Units
Number of Buildings
Number of Stories
Year Property Built
SqFt of Gross Living Area (GLA)
SqFt of Gross Building Area (GBA)
Average Unit Size
CBS! Stucco
Average
Fair-Poor
66
One
Three
1935
17,622 SqFt
31,]69 SqFt
267 SqFt
Pending Purchase Contract Price
Per SqPt ofGLA
Per SqFt ofGBA
Per Unit
Date of Contract
$5,120,000
$290.55
$164.27
$77.576
February 8, 2005
LA WSON VALUATION GROUP, INe.
EXECUTIVE SUMMARY
Prospective l\1arkct Value Indications - As Renovated
Income Capitalization Approach
Direct Capitalization Approach
Projected Potential Gross Income (PGIJ 105.2% $9,629 $635.488
Vacancy and Credit Loss Allowance, Concessions, Non-Revenue llnils -5.2% ($473) ($31,185)
Projected Effective Gross Income (EGl) 100.0% $9.156 $60003
Projected Operating Expenses (OE) 39.1% $3.578 $236,171
Projected NOI Next 12~Months 60.4% $5.531 $365,014
Capitalized Value@ 6.00% $92.175 $6,083,560
6.25% $88,488 $5,840,217
Direct Capitalization Conclusion $90,303 $5,960.000
Discounted Cash Flow Analysis Conclusion $91,364 $6,030,000
Income Capitalization Approacb Conclusion $90,909 $6,000,000
Sales Comparison Approach
Price per Unit Analysis (NOI Analysis)
Per Unit (Low) $90.000 $5.940,000
Per Unil (High) $92,000 $6,070,000
Price per SqFt Analysis
Per SqFt (Low) $341.00 $6,010,000
Per SqFt (High) $342,00 $6,030.000
EGIM Analysis
EGIM (Low) 9,90 $5,951.726
EGIM (High) 10,00 $6.011,844
Sales Comparison Conclusion 590,909 $6,000,000
Reconciled Prospective Market Value - "As Renovated" 56,000,000
Estimated Market Value Per Unit $90,909
Estimated Market Value Per GLA $340.48
Estimated Market Value Per Site Area $196.10
Market Value Indications - As Is
Reconciled Prospective Market Value - "As Renovated" $90,909 $6,000,000
Less: Entrepreneurial Profit ($8,264) ($545,455)
Less: Capital Renovation and Improvements ($3,500) ($231,000)
Less: Apartment Rental Income 50 $0
Less: Soft Costs ($1,500) ($99,000)
Total 577,645 $5,124,545
Reconciled Market Value - "As Is" (Rounded) 55,120,000
Estimated Market Value Per Unit 577,576
Estimated Market Value Per GLA $290.55
Estimated Market Value Per Site Area .. . 5167.34
IEstlmated Insurable Value;' "As Is" 52,840,000 I
tt
LAWSON VALUATION GROUP, INC.