Loading...
1A-Accept Recomm Execute Lease Agmt w- Vacation Tours For 100 16th St Suite NoREDEVELOPMENT AGENCY ITEM SUMMARY Condensed Title: Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency (RDA), accepting the recommendation of the City's Finance and Citywide Projects Committee (FCWPC); approving and authorizing the Chairperson and Secretary to execute a lease agreement between the RDA (landlord) and Vacation Tours, Inc. (Tenant), in connection with the use of suite "J" at the Anchor Shops, located at 100 161 h Street, Suite No. 5, Miami Beach, Florida (Space), for an initial term of three (3) years, commencing on March 18, 2014 and ending on March 17,2017, with one (1) renewal option of three (3) years, at the RDA's sole and absolute discretion, subject to and pursuant to the terms and conditions set forth in the agreement; and further approving and authorizing the RDA to enter into an agreement with tenant, for a month to month tenancy, until such time as a new lease is executed. Key Intended Outcome Supported: Increase resident satisfaction with the level of services and facilities. Supporting Data (Surveys, Environmental Scan, etc.): Approximately 40% of retail businesses surveyed, rank Miami Beach as one of the best places to do business and 61% of the same group would recommend Miami Beach as a place to do business. Issue: Shall the RDA approve the execution of a new lease with Tenant and further authorize the Chairperson and Secretary to execute an a reement for a month to month tenanc with Tenant endin lease execution? Item Summary/Recommendation: Tenant's current 15 year lease for space located at the Anchor Shops, on 16" Street, between Collins Avenue and Washington Avenue, is set to expire on March 17, 2014. Tenant submitted a Letter of Intent, setting forth the terms for a new Lease (Tenant's Offer), which was referred, by Staff, to the Finance and Citywide Projects Committee (FCWPC), at its February 21,2014 meeting. The FCWPC recommended that the RDA execute a new lease containing the following material terms from Tenant's Offer, and further recommended authorizing RDA to execute an agreement for a month to month tenancy, pending final lease execution: Date: Initial Lease Term: Renewal Options: Base Rent: Annual Rent Increase: CAM Pass-Through: Rent for Renewal Option Period: Guarantee: March 18, 2014 Three (3) years One (1) @ three (3) years, at Landlord's sole and absolute discretion. The initial base rent of $55.00/sq. ft. (721 square feet); $3,304.58 per month; $39,655 per year; plus applicable Sales Tax. The greater of CPI or 3% $10.00/sq. ft.; $600.83 per month; $7,210.00 per year, for first year, subject to adjustment, commencing year two, based upon Tenant's proportionate share of operating expenses, real estate taxes and insurance Reset to prevailing market rate with annual escalations by the greater of CPI or 3%. Owners and Officers Based upon the appraisal prepared by Blazejack & Company, effective as of November 1, 2013, finding that market rent for the Space is $55.00 psf and that the cost for operating expenses for similar spaces in the area is $15.00 psf, coupled with Tenant's long standing history and the benefit of not having to incur the expense of marketing and leasing the Space, the Administration recommends a resolution authorizing the RDA to execute a new lease with Tenant. based upon the material terms set forth in the Tenant's Offer, and, if necessary, to further execute an agreement for a month to month tenancy, based upon the Tenant's current rent structure, pending lease execution. Board Recommendation: Finance & Citywide Projects Committee. February 21, 2014-Recommendation in favor of execution of New Lease and an a reement for a Month to Month Tenanc , endin final lease execution. Financial Information· Source of Funds: n/a I Amount I 1 n/a Financial Impact Summary: City Clerk's Office Legislative Tracking: Max Sklar, Extension 6116 Sign-Otfs: Depa#ni DirA Ct<?J / Assistant City Ma)IBger MS w /(../' KGB --;f'r!" AJ.. -· v / / .I T:\A 9ENDA~r.March\RDA\Vacation Tours New Lease RDA Su~mary 3-5-2014 C9 MIAMIBEACH 656 Account .... City ty1~ager JLM \ Yff' ~ AGENDA ITEM I A DATE j~S-ll.f C9 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachll.gov REDEVELOPMENT AGENCY MEMORANDUM TO: Chairperson and Members of the Miami Beach R development Agency FROM: Jimmy L. Morales, Executive Director DATE: March 5, 2014 SUBJECT: A RESOLUTION OF THE CHAIR RSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT GENCY (RDA), ACCEPTING THE RECOMMENDATION OF THE Cl S FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC); APPROVING AND AUTHORIZING THE CHAIRPERSON AND SECRETARY TO EXECUTE A LEASE AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY (LANDLORD) AND VACATION TOURS, INC. (TENANT), IN CONNECTION WITH THE USE OF SUITE "J" AT THE ANCHOR SHOPS, LOCATED AT 100 16TH STREET, SUITE NO.5, MIAMI BEACH, FLORIDA (SPACE), FOR AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON MARCH 18, 2014 AND ENDING ON MARCH 17, 2017, WITH ONE (1) RENEWAL OPTION OF THREE (3) YEARS, AT THE RDA'S SOLE AND ABSOLUTE DISCRETION, SUBJECT TO AND PURSUANT TO THE TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT; AND FURTHER APPROVING AND AUTHORIZING THE RDA TO ENTER INTO AN AGREEMENT WITH TENANT, FOR A MONTH TO MONTH TENANCY, UNTIL SUCH TIME AS A NEW LEASE IS EXECUTED. ADMINISTRATION RECOMMENDATION Adopt the resolution. BACKGROUND Tenant currently operates a travel business at Suite "J" at the Anchor Shops, located at 100 161h Street, Suite No. 5, Miami Beach, Florida (Space). This Space is part of a project which has a parking garage and approximately 19,776 square feet of ground retail space (collectively, Anchor Garage and Shops), located on 161h Street, between Collins Avenue and Washington Avenue. Tenant's partner, Budget Reservation Service Corp. (Subtenant), entered into a retail sublease with MB Redevelopment, dated as of August 12, 1998, for a term of fifteen (15) years, commencing March 18, 1999 and ending March 17, 2014 (Lease) The Space has 721 square feet and was leased at an initial rate of $25.00 per square foot, subject to annual CPI escalations, commencing year eleven (11) of the Lease. At the time, MB Redevelopment, Inc. (a wholly-owned subsidiary of Loews Hotels Corp), was responsible for leasing and managing the retail spaces at The Anchor Shops, pursuant to a Master Lease 657 Redevelopment Agency Memorandum Anchor Shops-Vacation Tours New Lease March 5, 2014 Page 2 of4 agreement between the RDA and MB Redevelopment, Inc. (MBRI). Pursuant to this agreement, MBRI had broad-based authority to negotiate lease terms for any and all business uses compatible with a first class retail space, which included lease terms of ten years or more and rental rates ranging from $19 to $40 per square foot. The Subtenant operated a travel business, which included selling tour packages, airline tickets, ground tours, cruises, land packages (including hotels and transfers), car rentals, train tickets and other travel-related activity ("Travel Business"). In late September of 2001, the courts ordered Subtenant to relinquish its assets to its partner, Vacation Tours of South Beach, Inc. (Vacation Tours SB) and shortly thereafter dissolved, leaving Vacation Tours SB operating the Travel Business. Pursuant to Resolution 404-2001, effective December 12, 2001, the RDA authorized the assignment of the Lease to Vacation Tours SB. In connection with said assignment, Vacations Tours, Inc., a Florida corporation (Vacation Tours), executed a Guaranty of the Lease. Vacation Tours is an entity operated by the same officers as Vacation Tours SB; to wit: Rossanna Mendez a/k/a Rosanna Mendez and Alexandra Alvarez. Vacation Tours SB was administratively dissolved on September 21, 2001 and Tenant thereafter continued to operate the Travel Business at the Space under the Vacation Tours corporate entity. A copy of the corporation detail from the Florida Secretary of State web page is attached hereto as Exhibit 1. ANALYSIS On February 7, 2014, the owners of Vacation Tours, via counsel, provided Staff with a letter of intent (Tenant's Offer), setting forth the material terms for a new lease, a copy of which is attached as Exhibit "2". The material terms set forth in the Tenant's Offer are as follows: Commencement Date: Initial Lease Term: Renewal Options: Base Rent: Annual Rent Increase: CAM Pass-Through: Financial Records: Renewal Option Period Rent: March 18, 2014 Three (3) years. One ( 1) option @ three (3) years, subject to Landlord's sole and absolute discretion. The initial base rent of $55.00/sq. ft. (721 square feet); $3,304.58 per month; $39,655 per year; plus applicable Sales Tax. The greater of CPI or 3% $10.00/sq. ft.; $600.83 per month; $7,210.00 per year, for first year, subject to adjustment, commencing year two, and annually thereafter, based upon Tenant's proportionate share of operating expenses, real estate taxes and insurance (based upon Landlord's estimate, as Landlord self-insures). The Landlord shall have the right to periodically review Tenant's financial records and statements of operation. Reset to prevailing market rate at the time renewal option is granted. Rent for the renewal period shall further continue to 658 Redevelopment Agency Memorandum Anchor Shops-Vacation Tours New Lease March 5, 2014 Page 3 of4 Guarantee: have annual increases by the greater of CPI or 3%. By Owners and Officers of the Florida corporation (Rossanna Mendez a/kla Rosanna Mendez and Alexandra Alvarez) In preparation for the marketing of this Space, in October of 2013, Director, Max Sklar, instructed staff to secure proposals for appraisals of the fair market rents in the area. Staff secured the appraisal (Appraisal), prepared by Blazejack & Company ("Biazejack"), effective as of November 1, 2013, a copy of which is attached hereto as Exhibit "3". The Appraisal concludes that the market rent for this Space, as of November 1, 2013, was $55.00 per square foot and the typical operating costs for a similar Space was approximately $15.00 per square foot. Staff further examined the available records and has found that Vacation Tours has complied with its lease obligations and has not been found to be in default. Tenant currently pays base rent, in the amount of $19,226.88/year and $1,602.24 per month, which translates into a rate of $26.67 per square foot. Staff has reviewed the Tenant's financials and is satisfied that the Tenant would be able to afford the increased rental obligation under a new lease. When comparing Tenant's Offer to the Appraisal; considering Tenant's good standing and history with the RDA; and further considering the savings related to costs typically incurred in connection with the marketing and leasing of retail space, the Administration is recommending executing a new Lease with Tenant, based upon the material terms contained in Tenant's Offer. The current Lease is due to expire on March 17, 2014 and the administration is in the process of finalizing a final approved lease; however, due to the possibility of an unforeseen delay, the Administration is also requesting authorization to execute an interim agreement for a month to month tenancy (Month to Month Agreement) with the Tenant, based upon the Tenant's current rent structure, until such time as the new lease is executed. The discussion relating to the consideration of Tenant's Offer and the Month to Month Agreement, was referred to the Finance and Citywide Projects Committee meeting (FCWPC), scheduled for February 21, 2014 and the FCWPC recommended that the Administration execute a new lease with Tenant, based upon the material terms of the Tenant's Offer and further recommended that the Administration have the authority to enter into an interim agreement with Tenant, for a month to month tenancy, pending execution of a new lease. RECOMMENDATION The Administration recommends that the Chairperson and Members of the Miami Beach Redevelopment Agency (RDA) approve a resolution accepting the recommendation of the City's Finance and Citywide Projects Committee (FCWPC}, approving and authorizing the RDA to enter into a lease agreement between the Miami Beach Redevelopment Agency (Landlord) and Vacation Tours, Inc. (Tenant), in connection with the use of Suite "J" at the Anchor Shops, located at 100 16th Street, Suite No. 5, Miami Beach, Florida (Space), for an initial term of three (3) years, commencing on March 18, 2014 and ending on March 17, 2017, with one (1) renewal option of three (3) years, at the RDA's sole and absolute discretion, subject to and pursuant to the terms and conditions set forth in the agreement; and further approving and authorizing the RDA to enter into an agreement with Tenant, for a month to month tenancy, until such time as a new lease is 659 Redevelopment Agency Memorandum Anchor Shops-Vacation Tours New Lease March 5, 2014 Page 4 of4 executed. It should further be noted that since Anchor Garage and Shops is owned by the RDA, it is not subject to the public hearing requirements set forth under Section 82-39 of the City Code that would normally apply to the lease of City property. Proposed retail leases involving the Anchor Shops..G.:K~~(:pproved during and as part of the RDA Board's regular agenda. JLMtK'Crst~NT F:I$AII\RHCD\Asset\Anchor Ret\Vacation Store\New Lease RDA Memo 3-5-2014 T\Vacation Tours New Lease RDA Memo 3-5-2014 Enclosures: Exhibit 1 -Corporate information Exhibit 2 -Letter of Intent Exhibit 3 -Appraisal 660 Detail by Entity Name Detail by Entity Name Florida Profit Cor oration ACATION TOURS, INC. Fllln Information Document Number FEIIEIN Number Date Filed State Status Last Event Event Date Filed Event Effective Date Prlncl al Address 4201 SW 11 ST CORAL GABLES, FL 33134 Changed: 01/26/2007 201 SW 11 ST CORAL GABLES, FL 33134 Changed: 01/26/2007 MENDEZ, ROSANNA M 201 SW 11 ST CORAL GABLES, FL 33134 ddress Changed: 01/26/2007 leer/Director Detail MENDEZ, ROSANNA M 201 SW 11 ST CORAL GABLES, FL 33134 P96000083798 650704422 10/07/1996 FL ACTIVE NAME CHANGE AMENDMENT 10/23/1997 NONE Exhibit 1 Page 1 of2 http://search.sunbiz.org/Inquiry/CorporationSear661 archResultDetail/EntityName/domp·... 2/21/2014 Detail by Entity Name Page 2 of2 ALVAREZ, ALEXANDRA 4201 SW 11 ST CORAL GABLES, FL 33134 IA.tHomel R m~ rf:ontact Us nnua e o s E-Fillng Services Document Searches Forms Help Report Year Filed Date 2012 03/09/2012 2013 02/12/2013 2014 01/18/2014 Document lmaaes 01/18/2014 --ANNUAL REPORT View image in PDF format 02l12/2013 --ANNUAL REPORT View image in PDF format 03/09/2012 -ANNUAL REPORT View image in PDF format 01l23l2Q1l -AN~UAL R~PQRT View image in PDF format Q4/01~QjQ-ANNUAL R~PORT View image in PDF format 04/20/2009--ANNUAL REPORT View image in PDF format 01/24/2008--ANNUAL REPORT View image In PDF format 01/26/2007--ANNUAL REPORT [ VIew Image in PDF format 01/23/2006--ANNUAL REPORT View image in PDF format Q~lQ~/2QQ!2 --ANNUAL REPORT View image in PDF format 02/27/2QQ~ --ANf::I!JAL REPQRT View image in PDF format 01/30/2003 --ANNUAL REPORT VIew Image In PDF format I 02/21/2002--ANNUAL REPORT View image in PDF format Q2l0§/2QQ1 --ANNUAL REPORT View image in PDF format 02/05/2000 --ANNUAL REPORT View image in PDF format 03/01/1 ~9~ --ANNUAL REPORT I VIew image in PDF format 01l20ll998 --ANNUAL REPORT l View image in PDF format 10/27/1~~7-AMENDMENT I View image in PDF format Q2l27/1 ~~7 --ANNUAL REPORT I View image in PDF format 10/07/1996 --DOCUMENTS PRIOR TO 19971 View image in PDF format ~ t!:• and Prl!lacy P<lloc!e:; State of Flonda, Depanmer~t of State htto:/ /search.sunbiz.org/lnquiry/CorporationSearc6621fchResultDetaiVEntity N arne/clomp-... 2/21/20 14 ~ 1Tii GMA GABBs, MULLEN, ANToNELLI & DIMA"'TEO LAW OFFICBS Mr.uo·DADB PALM BIIACH .po Sovnl Dlxm HlGHWA'r o 'l'laD F..- C:O.W. G.uua. PLoiiiDA n•t' 105 S. NAaalllll AVDIW • 'Dm CmaHI 8uJ1mNc Sum 7U1" Wlsr PAUII Bat.al,l'LoluDA. 3340S TIL: .561-BJ::a-6718 FAX: s6t-8JS·10)' Til.: 305-667·0223 FAx: )0.5·284-t&w VIA Email ct. US MAIL GiselaTorres@miamibeachfl.gov Gisela Nanson Torres Tourism Culture and Economic Development Department Office of Real Estate SSS 176 Street Miami Beach, Florida 33139 Re: Vacation Tours, Inc. 100 16* Street #S From the Desk of James S. Robertson, Esq. jrobertsonOgaebemullen.com Please reply to: Miami-Dade Febnuuy 13, 2014 Miami Beach, Florida 33139 Non-Binding Letter of Intent to Lease Dear Ms. Torres: Per our previous correspondence. please accept this correspondence as our non-binding Letter of Intent to lease the above-referenced property. PROPOSED TERMS AND CONDITIONS: LeaseTenn: Lease Rate: The primary tenn is to be three (3) years effective Man:h 18, 2014. The tenant will also have one renewal option for a period of three (3) years. The base rent shall be $ SS.OO per square foot with an additional S I 0.00 per square fool operating expenses. Base rent shall increase by the greater of3% per annum or CPI increase over the previous year's rental. Tenant shall have the option to renew the lease for one renewal term of three {3) yean subject to Landlord"s sole and absolute discretion. Renl during the renewal tenn shall be reset to p~ailing market rate at the time of the renewal option. Rent for the renewal period shall increase by the greaterofCPJ or 3%. Exhibit 2 663 Operating Expenses: Security Deposit: Tenants Use: Construction Allowance: Delivery of Premises: Parking: Space PI&Ming: Additional Improvements: Allowance: Refurbishments: Hours of Operation: Assignment and Subletting: Guarantee: Financial Operation: Signagc: Tenant wiiJ be responsible for its pro-rata share of operating expenses, LandJord•s insurance (detennined by Landlord as Landlord self-insures) and real estate taxes. The operating expenses that tenant shall be responsible for are all the expenses associated with the maintenance of common areas. Tenant shall be responsible for the maintenance of its premises, the utilities for its premises, the maintenance of the area conditioning system on its premises, insurance for its premises, and tenant will pay for the cleaning of its premises. Tenant Is responsible for the maintenance of the interior of the premises. Landlord is responsible for the maintenance of the roof and foundation. Landlord is responsible for the maintenance of all exterior features. Tenant is ~sponsiblc for the maintenance of the HV AC. electrical, plumbing. and other systems within the premises. Tenant shall pay a pro-rata share of the building•s electrical utilities expenses used in the operation of the building. $10.607.70 less any deposit currently being held by landlord. The premises shall be used for general office purposes related to the travel industry. None Landlord shall deliver the premises to tenant in "as is" condition. None. None. None. None. None. 7am-10pm. Tenant may assign the lease or sublease all or a portion of the premises with landlord's consent. subject to Landlord's sole and absolute discretion. By individual owners and officers. The landlord shall have the right to periodically review tenant's financial operation. All signs are to comply with the City code. 664 Americans With Disabilities Act: Tenant will be responsible for complying with the Americans with Disabilities Act of 1990 (the "ADA"). This is a non-binding letter of intent submitted to outline the material business tenns for the proposed lease by the tenant. Neither party shall be bound to this transaction until the lease, acceptable to all parties, has been executed. The only purpose of this document is to allow the landlord to review and <:onsider the proposed offer. If the landlord desires to lease the premises, a lease will be prepared using the information contained herein. It is the intention of the parties to negotiate additional tenns of the transaction and enter into a lease within thirty (30) from the execution date of this Letter of Intent. The parties arc not bound until a lease is executed. JSR/dr 665 COUNSELING REPORT MARKET RENT ANALYSIS FOR RETAIL SPACE 100 16th Street-Suite 5 Miami Beach, FL 33139 Report No. 201379 PREPARED FOR Gabriela Alfonsin Office Associate IV Tourism, Culture and Economic Development Department Office of Real Estate City of Miami Beach 555 17t11 Street, Miami Beach, FL 33139 Office-305-673-7193 x 6161 Fax-305-673-7063 Gabde!aA!fonsin@mjamibeachfl.gov PREPARED BY BLAZEJACK & COMPANY 172 W Flagler Street, Suite 340 Miami, Florida 33130 Phone: (305) 372-0211 Fax: (305) 374-1948 Exhibit 3 666 November 27, 2013 Gabriela Alfonsin Office Associate IV BLAZEJACK & COMPANY REAL ESTATE COUNSELORS Tourism, Culture and Economic Development Department Office of Real Estate City of Miami Beach. Office-305-673-7193 x 6161 Fax-305-673-7063 Subject: Counseling Report. No. 201379 Market Rent Analysis for retail space located at 100 16th Street-SuiteS, Miami Beach, Florida 33139. Dear Ms. Alfonsin: At your request, we have completed an analysis of the market rent of the above referenced property, to various Assumptions and Limiting Conditions set forth in the accompanying report. The physical inspection and analysis that form the basis of the report has been conducted by the undersigned. The accompanying report includes pertinent data secured in our investigation. exhibits and the details of the processes used to anive at our conclusion of value. The appraisal has been prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP). As a result of the examination and study, it is our opinion that the market rent of the property, as of November 1,1013, the date of appraisal, Is. RetaU Space : SSS.OO per square foot Rentable on a net basis. Total Operating Expenses: SIS/SF Rentable Respectfully submitted, BLAZEJACK & COMPANY John A Bla.zejack., MAJ. CRE, FRICS Partner State-Certified General Appraiser License N. RZ 093 Jose Wong Senior Consultant State-Certified General Appraiser License No. RZ-2797 172 W. FLAGLER STREET, SUITE 34Q-MIAMI, FLORIDA 33130.PHONE (305) 372-0211-FAX (305) 374-1948 667 Property Appraised: Property Name: Address: Folio Number Owner: Client: Interest Appraised: Purpose of Appraisal: Function of Appraisal: Date of Analysis: Date of Inspection: Date of Report CONCLUSION: RetaURent: Total Operating Expenses: 100 16th Street Suite S 201379 Market Rent SUMMARY OF FACTS AND CONCLUSIONS Retail space on first floor. Anchor Shops -Suite S 100 16"' Street-Suite S, Miami Beach, FL 33139 02-3234-919-1090 City of Miami Beach City hall City ofMiami Beach Office of Real Estate Tourism, Culture and Economic Development Department. Market Rent To estimate the market rent of the property. To provide a basis for estimating the market rent for a new lease on the subject property. This summary report is intended for use by readers familiar with the area and the property. November 01, 2013 November 23, 2013 November 27, 2013 As of November 01, 2013. $55/ Square Foot Rentable on a net basis. $15/ Square Foot Rentable on a net basis. BLAZEJACK & COMPANY REAL ESTATE COUNSELORS 668 TABLE OF CONTENTS CERTIFICATE ASSUMYf)ONS AND LIMITING CONDITIONS 100 16th Street Suite 5 201379 Market Rent Page 1 2 MARJ(ET RENT ANALYSIS 3 IDENTIFICATION OF 1lffiPROPER1Y ............................................................................................................... 4 PURPOSE DAlE AND FUNCTION OF 1lffi REPORT ....................................................................................... 4 SCOPE OF 11iE ASSIGNMENT .............................................................................................................................. S PROPERTY lllSTORY ............................................................................................................................................. 5 LEGAL DESCRfi'TION ............................................................................................................................................ 5 DEFINITIONS OF VALUE AND INTEREST APPRAISED ................................................................................ 5 MARKET RENT ANALYSIS ................................................................................................................................... 6 CONCLUSION ......................................................................................................................................................... 1 0 ADDENDA Exhibit A ExhibitB ExhibitC Retail Rent Comp Photos Engagement Letter Qualifications of the Appraisers BLAZEJACK & COMPANY REAL ESTATE COUNSELORS 669 CERTIFICATE We certify that, to the best of our knowledge and belief, • the statements of fact contained in this report are true and correct. 100 16th Street Suite S 20U79 M1rket Rent • 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 property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. • We have none performed any appraisals regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetennined results. • our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of 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 Uniform Standards of Professional Appraisal Practice. • Jose Wong has made a personal inspection of the property that is the subject of this report. • No one provided significant real property appraisal assistance to the persons signing this certification. • The reported analyses. opinions, and conclusions were developed. and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representative. • As the date of this report John Blazejack has completed the continuing education program of the Appraisal Institute. Jose Wong has completed the Standards and Ethics Education Requirement of the Appraisal Institute for Associate Members. - BLAZEJACK & COMPANY John Blazejack, MAl, CRE, FRJCS Partner Cert Gen RZ-0093 BLAZEJACK & COMPANY CERTIFICATE 670 Jose Wong Senior Consultant Cert Gen RZ-2797 100 16th Street Suite S 201379 Market Rent ASSUMPTIONS AND LIMITING CONDITIONS The appraisal is subject to the following assumptions and limiting conditions. No survey of the subject property was undertaken. 2 The subject property is free and clear of all liens except as herein described. No responsibility is assumed by the appraiser for matters which, are of a legal nature, nor is any opinion on the title rendered herewith. Good and marketable title is assumed. 3 The information contained herein has been gathered from sources deemed to be reliable. No responsibility can be taken by the appraiser for its accuracy. Correctness of estimates, opinions, dimensions, sketches and other exhibits, which have been furnished and have been used in this report are not guaranteed. The value estimate rendered herein is considered reliable and valid only as of the date of the appraisal, due to rapid changes in the external factors that can significantly affect the property value. 4 This study is to be used in whole and not in part. No part of it shall be used in conjunction with any other appraisal. Publication of this report or any portion thereof without the written consent of the appraiser is not permitted. 5 The appraisers, herein, by reason of this report, are not required to give testimony in court with reference to the property appraised unless notice and proper arrangements have been previously made therefore. 6 The value estimate assumes responsible ownership and competent management The appraiser assumes no responsibility for any hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. No responsibility is assumed for engineering, which might be required to discover such factors. 7 Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media without the written consent and approval of the author, particularly as to valuation conclusions, the identity of the appraiser or fmn with which he is connected. or any reference to the Appraisal Institute. 8 Neither the existence of potentially hazardous material used in the construction or maintenance of the build, such as the presence of urea-formaldehyde foam insulation, and/or the existence of toxic waste, which may or may not be present on the property, was not observed by the appraiser; nor does the appraiser have any knowledge of the existence of urea-formaldehyde foam insulation or other potentially hazardous waste material of the improvements and the site may have an effect on the value of the property. We urge the client to retain an expert in this field if needed. 9 The Americans with Disabilities Act (ADA) became effective JanuaJY 26, 1992 sets strict and specific standards for handicapped access to and within most commercial and industrial buildings. For puipOSes of this appraisal, we are assuming the building is in compliance; however, we recommend an architectural inspection of the building to determine compliance or requirements for compliance. We assume no responsibility for the cost of such determination and our appraisal is subject to revision if the building is not in compliance. BLAZEJACK& COMPANY ASSUMPTIONS AND LIMITING CONDITIONS 671 2 MARKET RENT ANALYSIS BLAZEJACK & COMPANY MARKET RENT ANALYSIS 672 100 16th Street Suite 5 201379 Market Rent 3 100 16th Street Suite 5 201379 Marllet Rent IDENTIFICATION OF THE PROPERTY The property under analysis in this report, a retail space, is located at I 00 16th Street - Suite 5, Miami Beach, between Washington Avenue and Collins Avenue, Florida 33139. The building was built in 1998 comprising a total of 261,000 SF on a 65,701 SF lot according to Public Records of Miami Dade. The property building is located just half a block from Collins ' A venue, and the Lowes hotel. The property under analysis is a rectangular retail space located on the first floor of the building that fronts 16th Street. The building contains garage and retail spaces on the first floor. The retail space has 721 square foot of rentable area. GROUND :Pl.OOR RETAIL LBASING PLAN rll AHCHOt SUO·~ -·------------.. ------------------.. __ , _____ _ -------· _, ___ " _______ _ -------~-fliiili PURPOSE DATE AND FUNCTION OF THE REPORT The pmpose of this report is to estimate the market rent for the retail space. The date of the analysis was November 01, 2013. It is understood that the function of this report is for internal asset management planning. BLAZEJACK & COMPANY MARKET RENT ANALYSIS 673 4 SCOPE OF THE ASSIGNMENT 100 16th Street Suite 5 201379 Market Rent Tills is a summary analysis presented in a narrative report. The scope of this analysis was to inspect the property, consider market characteristics and trends, collect and analyze pertinent data, develop a conclusion and estimate the property's market rent. During the course of this assignment, we developed and analyzed current retail space rents located in the Miami Beach area The extent of verification consisted of assembling and analyzing raw data gathered from a variety of sources including public records data services, news periodicals, broker or knowledgeable third parties when available, and in-houses files. PROPERTY IDSTORY The property is held in the name of City of Miami Beach City Hall according to the Public Records of Miami Dade County. We are not aware of any transfer of the property or purchase listing or offering within the past five years. LEGAL DESCRIPTION Loll I, D, 10,1,, 12 and 13, Block 57, Flst\er's F'nt Subdivtlkm of Alton Beach, eccordlng to the Plat thereof, 11 recorded In Plat Book 2, P~ge 71 of the Public Records of Oldll County, Florida, together with Ill of 16th Street (Avenue "C"), INa and except the follotfttg diiiCribtd parcel: BEGINNING at the SouthWest comer of Block 54 olaald Flshef'e Flra18ubc:IMslon of Alton Beach Plat thence North as• 0' 53" East along the South line or nld Blodc ~. • dlltii1CI of 4-43.08 reet. 1o 1M Southeast comw or aald Bloclc &c; lhei'IQI Soulh or• 35' 04• West, • distance of 16.26 fHt. 1a • point of QJIP wllh • tangent c:urve concave to the Southwest; tbence along the •rc of aid curve liD the left. having • radlua of 25.00 feeilnd 1 central angel of DO" 00' 00", an arc dlltance or 38.27 raet. ID • point of tanaencv: thlnce North a2• ~· 52" Wast. • distance of 24.76 flet thence South 88• DO' 63"' West along a 1tne a.oo feel North or end paralel With, 111 me .. ured et right angles to the Nor1h line of Block 67 ot uld plat, • ~ of 182.18 feel to • point on lha Euterfy Rlght-of-Wiy lne of W.shlngton Avenue: lhti'ICI North 01' 59' 11• Welt llong l8ld Euteriy Right-of-VYay ine, 11 d•tanoe of 82.00 feet to the Soulhweat comer or uld Block 54 and 118 Point of beginning. 88klllnda Jr1nG 1nd being In lhe City of Miami Beach 8lld containing 65,810·aquln!l fltel (1.5131 Acnta} more or ..... DEFINITIONS OF V ALOE AND INTEREST APPRAJSED According to the Code of Federal Regulations, Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA"), and according to the 12th Edition of The Appraisal of Real Estate, market value is defined as follows: BLAZEJACK & COMPANY MARKET RENT ANALYSIS 674 5 100 16th Street Suite 5 201379 Market Rent Market Value The most probable price, which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title ftom seller to buyer under conditions whereby: Buyer and seller are typically motivated. 2 Both parties are well infonned or weU advised, and acting in what they consider their own best interests; 3 A reasonable time is allowed for exposure on the open market. 4 Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5 The price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Fee Simple Interest Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed governmental powers of taxation, eminent domain, police power, and escheat. Leased Fee Interest An ownership interest held by a landlord with the right to use and occupancy conveyed by a lease to others; usually consists of the right to receive rent and the right to possession at tennination of the lease. Market Rent The rental income that a property would most probably command on the open market; indicated by current rents paid and asked for comparable space as of the date of the appraisal. Source:Appraisal Institute, The Appraisal of Real Estate. 13th Edition, (Chicago, 2008) MARKET RENT ANALYSIS Retail Market We are estimating the market rent of the subject property, therefore a rent survey of the Miami Beach area was conducted. The basis for classification was location, design, and quality of construction, quality of interior finishes, age, and condition. The rent comparables selected give an indication of the level of rent that could be commanded by the subject if offered in the open market. The rent survey, a location map, and a table of adjustments can be found following. With exception of retail rent 1, all the rates in our survey are asking rates. Leasing agents interviewed in gathering rental data indicated that some concessions are generally BLAZEJACK& COMPANY MARKET RENT ANALYSIS 675 6 100 16th Street Suite 5 201319 Market Rent provided although some tenns are negotiable depending on the size of space and length of the lease. In most cases, the rates actually achieved in leases are near the asking rates. 1 Oeean lllnt Group 7,867 2010 $47 NNN $15.00 OceanFirslGroi.JI sigoed a leueconlract in Man:b 10,2013 b'tm! on 20sl s~ haifa block spac:e designated as rciB.il H, with a lmD of 10 )'CifS and optioaiD renew west of CoUins Ave. the initial term for 2 consecutive renewalleTlll! ofS )'!liS each. The lb:lp MianiBeacb is part ofBoul1111, a mix UBed bLildiDg Iiiii contains residential condominiwns and retail on the first and se~:ond level. 'Ibe total address IDr lhe total bnilding is 2100 Collins Ave. Tbe sb!p colllains 4,320 SF leascabe area on the fint floor uxl 3,547 SF on lhe JllC2Zallin::. Operating expenses an: at$15.00/SF . 2 .LIJicolll Place 823 2012 sss NNN $17.29 located on the narlhcast CIII1C' ofWashington A ve1110, ooe block solllh 16(}1 W~Ave. 3.094 of Lincoln Road. one fourth bloek west of Collins Aw:rue. Within Miami Beach walki11: disllmi:C of retail JhojJs and reslaiJ'IIItS. Tenant has Ia pay ilr FL33139 1\111 key. The retail bas average qiBlity conslrul:tion finisbi~l.lld ia in good condition. Spau 101 and lOS are available. OpntingEqlcnses 3 1541 WarblngconAve. 1,200 1952 SSJ NNN N/A Tum key opcratiomlllalian & Pemvillll rcslamanl close to uncoln .Road. Miatri Beach Ren 1h N!lcas:. The stilleasc opirea July 2020. This is an old little retail FL33l39 space. 4 1610 Wa&blngton J\ve. 1,847 1940 S1S NNN SIS.OO Frontage along Washington Avcnuc. Space consiSIJ of a 8JOIIII1Ioor IUid Miami Beach Ren IDC2a2llni ne level for a total on ,84 7 SF. Co-tenancy with McDonald's, FL33139 foot Loeker, Radio Shack, Frilz Skateshop.lt is located one halfb1ock soutb from ~oln Road. OperatiDJ Expenses areS IS/SF. 5 1502 WashJuaton A\'t. 1,741 1948 $65 NNN $13.00 Fully built out rcstauranl space. Ideal cafe wilb oOO!oor seating area. Miami Beach Adjacent to Five Gll)'l BurJen and Fries. The buildilt;was co.ctdy FL33l39 tcrovated. Near Lincoln Road and the City Center area with abundant office space and hotels in the irmnediate ares. The retail bas average quality construction finishing and is in good condition. Operating Expenses are $13.00/SF. 6 1452 WashiDgton Ave. 736 1938 $70 NNN NIA Space B with 736 SF and space C with 1,169 SF arc availableat$70/SF. Miami Beach 1,169 FL33139 7 1447 Wasblngton Ave. 1,200 1940 $70 Modified Sl3.00 This fully out m~&t.nnt space is situated right nex1 door to tbe &mous Miami Beach Gross Cameo theamr. Thia recently renovab:d spscc i a 1 llllJ key operation FL33139 ready 10 sell with all of the necessary ki~ equipment to start blsiness. Operating Expenses are S 13.00/SF. 8 1429 Washington Ave. 3,265 1920 $45 NNN $13.00 Restaurant in the heart of South Beach, steps away from Untoln Road Miami Beach and Espallola Way. Ideal for 61st casual restaurant, bistro or cafe. Its FL33139 listed for S2.S million. This is an old building that has average qi.Blity and is in fair condition. OperatiDJ Ellpenscs are $13.00/SF. SUBJECI': Anchor Shops 721 1998 This rpace is cmrendy bcing utilized as a lrlvcl agcocy. It has average 100 16th St ·Suite :5 quality cantruclion finishing and is in very good condition. Miami Beach BLAZEJACK & COMPANY 7 MARKET RENT ANALYSIS 676 BLAZEJACK & COMPANY MARKET RENT ANALYSIS l loiN (6.2'W} Retail Map Comparable 677 100 16th Street Suite 5 201379 Market Rent ~k 0 1100 1000 IDQO Oala Zoom ll-7 B HET-\II.IH \'1 <<niPS .\I).Jl'ST\IE\ I CRm 100 16th Street Suite 5 201J79 Market Rent . . . . --. -. . . . -. . . .. .,, .,-.. -... '~ 'II c f t 1 ,; ' ,', f f ; ' I :c ~ ~ f • ~; •-\ .i ) ! t ; (,} '/ 'l 't 1 j 1}-·1' : Location 10% -20% -15% ~15% -15% -25% -20% -15% Building Quality 0% 0% 0% 0% 0% OOA. 0% 5% Condition 0% 0% 5% 5% S% 5% 5% 5% Size S% 0% 0% 0% 0% 0% 0% 0% Others 0% 10% 0% 0% 0% 0% 0% 0% Overall Adjustment ,. 15% ,. ~10% , -10% , -10% , -10% ,. -20% ,. -15% ,. -5% .Adjusted Rent $54 $50 $48 $68 $59 $56 $60 $43 A\erage All Comps: $541 Chosen Retail Rent {$/SF} for Subject $55 NNN LE(;El\'D . . ·;s ~ .. _:· :-·'11} ·;;. '--. ~ • ";" r· -; .. l ;.·~·, '": .. : t~ ("· .. -·-•.. -:. -.--.. r. .. ,.......... • ..... ~-~-... ·~ .. ~ '?"'~ --:""..... ......, ..... ~.:!ij1!' • ..&'.t!L !.J:_l'~i!d~ ~ I L'._P .l t~ . - . -·. = + Base on comparison with the market data we concluded that the market rent for the subject retail space (721 SF) to be $55 per square foot rentable net per year for vacant space. BLAZEJACK & COMPANY MARKET RENT ANALYSIS 678 9 Operating Expenses 100 16th Street Suite S 201379 Market Rent The annual operating expenses of the subject property were projected in this analysis based on similar properties. HI' I All. -1110 16th STRIT I' OPJ:It\'IJ:\(; FXI't::\SFS S L\TJ:\1 F'\ r !\0\'F,IBLR 01, WD EXPENSD: h!:!!' HXm EXPJlNSD Property Taxes $2,760 > $3.83 luaunmce $793 I1N TOTAL FIXED EXPENSES: $3,553 $4.93 V ARIABLI:EXPliNSiili Adminilltrative 4 General $1,045 $1.45 Rapair&IMamtcaauce $540 $0.75 Utilities $1,160 $1.61 Cleanins $215 $0.30 Otbcn $4,195 $5.82 ~-l,!.q! $0.15 $1,263 $10,07 l:W:A" W~lii ~ ~ Our estimated total stabilized Operating Expenses for the stabilized year is $15 per square foot of rentable area. CONCLUSION Market Retail Rent is based on a triple net lease basis, where the tenant pays all expenses, including utilities, water, electricity, common areas, cleaning, taxes. and insurance. The market rent for the subjeet located at 100 16th Street in Miami Beach as of November 1, 2013 is $55 per square foot of rentable area net. Operating expenses are $15/ per square foot of rentable area. BLAZEJACK&COMPANY MARKET RENT ANALYSIS 679 10 BLAZEJACK & COMPANY ADDENDA ADDENDA 680 100 16th Street Suite 5 201379 Market Rent 11 BLAZEJACK & COMPANY ADDENDA Exhibit A Retail Rent Comp Photos 681 100 16th Street Suite S 201379 Market Rent 12 Retail Rent l On 20st St, half a block west of Collins Ave. BLAZEJACK & COMPANY ADDENDA Retail Rent 2 1601 Washington Ave. 682 100 16th Street Suite 5 201379 Market Rent 13 BLAZEJACK & COMPANY ADDENDA Retail Rent 3 1541 Washington Ave. Retail Rent 4 1610 Washington Ave. 683 100 16th Street Suite 5 201J79 Market Rent 14 BLAZEJACK & COMPANY ADDENDA Retail RentS 1502 Washington Ave. Retail Rent 6 1452 Washington Ave. 684 100 16th Street Suite S 201379 Market Rent 15 BLAZEJACK & COMPANY ADDENDA Retail Rent 7 1447 Washington Ave. Retail Rent 8 1429 Washington Ave. 685 100 16th Street Suite 5 201379 Market Rent 16 BLAZEJACK & COMPANY ADDENDA ExhibitB Engagement Letter 686 100 16th Street Suite 5 201379 Market Rent 17 (9 MIAMf BEACH City of Miami leach, 1700 Convention Center Drive, Mlomi Beoc:h, Florida 33139, www.mlomlbeochR.gov TOURISM, CULTURE AND ECONOMIC DEVELOPMENT DEPARTMENT Office of Reel EJtata Tel: 305-873-71B3/ FIX: 305-673-7033 October 18, 2013 VIA US MAIL AND E-MAIL Mr. John Blazejack Blazejack & Company 172 West Flagler Street, Suite 340 Miami, FL 33130 Re: Market Rent for City-owned property occupied by Vacation Tours, Inc •• located at 100 16th Stree~ Suite 6, Miami Beach, FL 33139. Dear Mr. Blazejack: Please be advised that the City of Miami Beach (City) is seeking bids to establish the market rent of the above referenced retail space, which is more specifically described below: City-owned retail space, occupied by Vacation Tours, Inc. rvacation Tour Space·), having approximately 721 square feet, located at 100 16" Street, Suite 5, Miami Beach, Florida 33139, a/kla Suite "J oftheAnchorShops, currently being utilized as a travel agency, as set forth in the attached Legal description (Exhibit "A•) and Ground Floor Leasing Plan (Exhibit "8"). The City and the Miami Beach is currently contemplating a lease for the Vacation Tour Space, for an initial term of three (3} years with two (2) additional renewal options, of three (3) years and three years (3} and 364 days, respectively, with the rent resetting itself to market rate at each renewal interval. As such, the appraisal should determine the following: A. Market rent for retail space of similar class designation and size, including annual per square foot rent rate as of November 1, 2013; end B. Respective prorata operating costs associated with this type of use. This information will be utilized by the City to determine the market rent for the Vacation Tour Space in order to negotiate a new lease agreement with the current tenant, or with a new tenant. Please submit a proposal to provide these services, within seven (7) business days from receipt of this request. Your proposal should reflect the shortest possible time frame in which you can accomplish the requested scope including the cost, and the date by which a full certified appraisal Indicative of the market rent will be completed and delivered to the City. Please include a resume for the appraiser who will be preparing the appraisal on behalf of the City, including the license information for said appraiser. 687 Request for Appraisal Vacation Tours, Inc. October 18, 2013 Page2of2 Be reminded that TIME IS OF THE ESSENCE for this project and, ss such, weighting oftumaround time will be given additional consideration for this proposal. Please submit your cost and time frame proposal via e-mail to gtorres@miamlbeachfl.gov. If you have any questions or require additional information please do not hesitate to contact me at 673-7000 Ext. 6955. cc: Max Sklar, Tourism, Culture and Economic Development Director Enclosures: Legal Description-Exhibit "A" Ground Floor Retail Leasing Plan-Exhibit •B" F;\RHCD\$ALL\ECON\$AU\-'SSE"Jp"opertyappraiaer2013Kcitymanager.dOCK . ---688··-·--......... ··-··· --····-· . ---- BLAZEJACK & COMPANY ADDENDA Exhibit C Qualitlcatlon of the Appraiser 689 100 16th Street Suite 5 201379 Market Rent 19 100 16th Street Suite S 201379 Market Rent QUALIFICATIONS JOHN A. BLAZEJACK, MAl, CRE, FRICS Partner Blazejack & Company Academic Florida State University, B.A. Florida International University -M.S.M. Rea! Estate Most Recent Courses 1992 -Level ll Course 520 • Highest and Best Use and Market Analysis 2000 -Level U Course 530 -Advanced Sales Comparison and Cost Approaches 2008 -Member of review team for revised course on Market Analysis & Highest & Best Use 2008-Member of the review team for new course on Advanced Market Analysis & HBU 2010-Valuation for Financial Reporting 2012-Member of review team for Marketability Studies and Advanced Marketability Studies seminars Experience Mr. Blazejack, President ofBlazejack & Company, has been active as a rea] estate counselor since 1970. His experience includes residential and income property appraisals, market and feasibility studies, and acquisition and disposition reports. The work has been for a wide range of property types including office, industrial, commercial and special use properties, hotels and recreational facilities. These assignments have been conducted in over twenty states and extensively throughout Florida. Mr. Blazejack is a qualified expert witness who has testified in Federal district and lower courts. He is an approved instructor of both the Appraisal Institute (AI) and the American Bankers Association. Mr. Blazejack is a past president of the Greater Miami Chapter of the Society of Real Estate Appraisers and was the 1992 President of the South Florida Chapter of the AI. Designations and Licenses MAI Member, Appraisal Institute, Certificate Number 6089, currently certified. CRE Member, American Society of Real Estate Counselors, Certificate Number 1131. FRICS Fellow of the Royal Institute of Chartered Surveyors Number 1250175 Registered Florida Real Estate Broker State-Certified General Real Estate Appraiser, License Number RZ93. Affiliations Mr. Blazejack is the past President of the Real Estate Counseling Group of America (RECGA). Published Articles The Appraisal Journal, Spring, 2011 Price versus Fundamentals -From Bubbles to distressed Markets By Stephen F. Fanning, MAl John A. Blazejack, MAl and George R. Mann, MAl Real Estate Issues, Volume 34, Number 1, 2009 When Will the Miami Condominium Market Recover? By Richard Langhorne, CRE, FRICS and John A. Blazejack, MAl, CRE, FRJCS BLAZEJACK & CO:MPANY ADDENDA 690 20 JOSE WONG Blazejack & Co. e-maU: jose@blazejack.com Academic • Appraisal Institute Course 110: Course 120: Course ACE 2150: Course310: Course320: Course 41 0: Course420: Course 510: Course 520: Course 530: Course 540: Course550: Course610: Course 620: Seminar: Seminar: Seminar: Seminar: Seminar: Seminar: Seminar. Seminar: Seminar: Training: Seminar: QUALIFICATIONS Appraisal Principles Appraisal Procedures Attacking and Defending an Appraisal. Basic Income Capitalization General Applications. 100 16th Street Suite S 201379 Market Rent Standards of Professional Practice. Part A (USPAP) Business Practice and Ethics. Advance Income Capitalization Highest & Best Use Advance Sales Comparison & Cost Approaches. Report Writing. Advanced Applications. Alternative Uses & Cost Valuation of Small Mixed·Use Properties. Sales Comparison Valuation of Small Mixed-Use Properties. Argus Training. Effective Appraisal Writing. Report Writing and Valuation Analysis DEMO General Demonstration Appraisal Report Writing A Comprehensive Guide to Valuing Improved Subdivisions. Introduction to Land Valuation Advanced Spreadsheet Modeling for Valuation Applications Regression Analysis. Critical Thinking. 2013 Value Adjustment Board Training for Real property Appraiser Special Magistrates. Developing a Supportable Workfile. • Various appraisal seminars. • He's pursuing the Appraisal Institute MAl designation. He's taken all the courses required for the MAl designation. • Ricardo Palma University (Lima, Peru). Degree in Civil Engineering. BLAZEJACK & COMPANY ADDENDA 691 21 Experience as Appraiser 100 16th Street Suite 5 201379 Market Rent Commercia] Appraiser at Blazejack & Co. September 2007 -present. He's worked 14 years in this company. Commercial appraisals on many property types in Florida and USA. His professional experience includes Highest and best use analysis, commercial appraisals on numerous property types such as warehouses, apartment complexes, condominium buildings, office buildings, shopping centers, retail, special purpose properties, marinas, subterranean rights, air rights, and vacant lands. Commercial Review Appraiser at Bayview Lending Group LLC, May 2007 -August 2007. Review Appraisals on different property types in Florida. He worked as head of the Commercial Appraisal Review Department at Greenpoint Mortgage. He covered the South West, Central and Northeast area of Florida. Apri12006-February 2007. His professional experience in the state of Florida and the Caribbean include highest and best use anaJysis, commercial appraisals on numerous property types such as warehouses, apartment complexes, condominium buildings, office buildings, shopping centers, retail, restaurants, special purpose properties, and vacant lands. He worked as a commercial appraiser at Blazejack & Company March 1999-Ap. 2006. Between 1987 and 1998 (11 years), prior to conducting work in Florida, he conducted commercial and residential appraisals on houses, retail outlets, hotels, apartments, condominiums, offices, warehouses, factories, and hospital in Peru. Mr. Wong has experience using a variety of software programs like Microsoft Word, Excel, database IRJS, Data Comp 3.5, Street Atlas USA 6.0 (mapping), Marshall & Swift (Cost program}, Argus (Cash Flow Analysis}, Co Star, Loopnet and MLS. He is fluent in Spanish. Experience as ClvU Enzineer He has worked both in the private and public sector as a Civil Engineer for approximately 14 years. He worked as Supervisor En,gineer and Superintendent Engineer in different civil engineering jobs in Peru. Responsibilities included subdivisions, installation of water, sewer, lighting, roads, and massive construction of houses, apartment buildings, condominium buildings, retails, warehouses, and factories. He constructed and managed the financial arrangements for the construction of condominium buildings in Peru. He made studies of costs and budgeting for the construction of these jobs. Designations and Licenses Real State Certified General Appraiser, License Number RZ2797 General Associate Member, Appraisal Institute Member, Engineer Association of Peru. BLAZEJACK & COMPANY ADDENDA 692 22 RESOLUTION TO BE SUBMITTED 693