R9Q-Discuss- Vacation For Westerly End Of W 59th Street To Ambassa Holdings Incg MIAMI BEACH
City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 331 39, www.miomibeochfl.gov
coMMrssloN MEMORANDUM
To: Mayor Philip Levine and Members of the City Cfmmission
FROM: Jimmy L. Morales, City Manager f---a:;
DATE: September 10,2014 I 1
I
SUBJECT: A DISCUSSTON REGARDING A REQUEST FOR VACATION OF A CITY RIGHT OF
WAY, LOCATED AT THE WESTERLY END OF WEST 59TH STREET, TO AMBASSA
HOLDINGS, INC. C/O CHRISTIAN BERDOURE, IN EXCHANGE FOR A
SOUTHERLY PORTION OF THE ADJACENT LOT 25.
BACKGROUND
West 59th Street End (located westerly of North Bay Road) is a S0-foot wide City owned right of
way (ROW), per the Recorded Subdivision Plat of La Gorce-Golf Subdivision, dated April 8,
1925 by Miami Beach Bay Shore Co..
On said Subdivision PIat, westerly of and adjacent to the westerly end of West 59th Street, there
is an unnumbered parcel shown, approximately 30 feet by 50 feet. Mr. Robert J. Schidler is
listed as a previous owner of the unnumbered parcel, as well as previous owner of the southerly
and adjacent Lot 25 (the unnumbered parcel is subject to a utility easement from subdivision
developer Miami Beach Bay Shore Co., to the City of Miami Beach, dated June 29, 1925).
At its December 18, 1991 meeting, the City Commission approved Resolution No.91-20423,
granting Mr. Schindler a revocable permit to construct a wrought iron fence and automatic gate,
across the City owned West 59th Street ROW.
Ambassa Holdings, lnc. c/o Christian Berdoure, current owner of said parcels, is requesting that
the City vacate its ROW, located at the westerly end of West 59th Street (ATTACHMENT A), in
exchange for a Southerly Portion of Lot 25. The property owner will compensate the City for the
differential cost and the cost of relocating the stormwater outfall.
Pursuant to the City's existing administrative policies and procedures to consider the vacation of
the City streets, alleys, and/or rights-of-way, which also require compliance with Article ll,
Sections 82-36 through 82-40 of the City Code (which establish procedures governing the sale
or lease of public property), in addition to the previously mentioned application, prior to
considering a request for vacation, the following requirements must be satisfied:
1) The title of the Resolution approving the proposed vacation shall be heard by the City
Commission on two separate meeting dates, with the second reading to be accompanied by
a duly noticed public hearing, in order to obtain citizen input into the proposed vacation;
Asenda ttem - R?A-
Date Q-/0'/?983
Com mission Me mora ndu m -59th Sfreef
Page 2 of 2
2) The proposed vacation shall be transmitted to the Finance and Citywide Projects Committee
for its review;
3) ln order for the City Commission and the public to be fully appraised of all conditions relating
to the proposed vacation, the City's Planning Department shall prepare a written planning
analysis, to be submitted to the City Commission concurrent with its consideration of the
proposed vacation; and
4) The City shall obtain an independent appraisal of the fair market value of the property
proposed to be vacated.
On June 20,2014, the City's Public Works Department obtained an independent appraisal from
Lee H. Waronker, MAl, SRA (ATTACHMENT B) of the fair market value of the proposed parcel
to be vacated.
Although the City's procedures for the lease of sale or sale of public property also require an
advertised public bidding process, the requirement may also be waived by 5l7th vote of the City
Commission; in this case, and due to the nature of the law pertaining to the vacation of rights-of-
way, the City Administration recommends that the Mayor and City Commission waive the
competitive bidding requirement, finding that the public interest is served by waiving such
conditions.
The vacation of this City ROW serves a public purpose, by providing direct access to the water
as the current ROW stops 30 feet short of waters' edge.
GONCLUSION
The following is presented to the members of the City Commission for discussion and further
direction.
Attachment: A. Sketch of proposed vacation.
fi,1 B. West 58th and West 59th Streets appraisal
JLM/WiBAM/BB
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Address (n:rain psrcel):
Type of lJse:
Zoning:
Flood l-one:
I"and Area:
lVlain Parcel
South Tract
North Tract
Value by Ctisl Approach:
Value by Income Capitalization Approach:
Value by $ales Comparison Approach:
Main Parcel
South Tract
North Tract
Value $stimates:
Main Parcel
$outh Tract
North Tract
Date of Valuation:
Date of Report:
Summary of Pertinent Dats
Along the west sid* *f North Bay Road, between
West 58th and West 59th Streets, Miami Beach,
Miami-Dade FL
5&60 North Bsy Rosd
Miami Beach. FL, 33154
Single- f'ami [y residential land
R$-2, Single Family Residence District by the
city of Miami Beach, FL
AE {Mnp }2086CS309L)
24,4?,5 sq.fi.
5,8?0 sq.ft.*
10,?15 sq. 11.*
Not applicaLrle
Not applic*ble
$9.800,000 ($400 per sq. ft.)
$2,350,000 ($400 per sq. ft.)
52"550.000 {$250 per sq. ft.;
$9,800,000 ($400 per sq. ft.)
$3,350,000 ($400 per sq. ft,)
$z,sss,ooo isz:ob;;il. l;.i t*f$,@ 8*e-f4
lr 53&ro.**
***-"*:;*@
May 31,2014
.lune 20.2014
*Estimated by the appraisers based on messur$msnts pri:vided in droft site plan
Waronker & Rosen, Inc. * Real Extat* ;lpprrrircrr & Corsnlranrs Pngr II
986
Appraisal Report
Prepared for
Mr. Bruce A. Mowry, Ph.D., P.E.
City Engineer, Public Works Department
City of Miami Beach
Property Appraised
Valuation for Potential Land Swap
5860 North Bay Road
Miami Beach, FL 33154
Client File # 024445
Date of Valuation
May 31,2014
Prepared by
Waronker & Rosen, Inc.
5730 SW 74th Street, Suite 200
South Miami, Florida 33143
LEE H. WARONKER, MAI, SRA
CARLOS A. DIEZ, APPRAISER
File # 7766
987
Waronker &Rosen, Inc.
Real Estate Appraisers and Consultants
Lee H. Waronker, MAI, SRA Phone: (305) 665-8890 / Fax: (305) 665-5188 Josh L. Rosen, MAI
lee@waronkerandrosen.com www.waronkerandrosen.com josh@waronkerandrosen.com
June 20,2014
Miami-Dade County Offi ce
5730 SW 74th Street, Suite 200
South Miami, Florida 33143
P.E.
Department
4th Floor
Broward / Palm Beach County Office
10242 NW 47th Street, Suite 40
Sunrise, Florida 3335 I
Mr. Bruce A. Mowry, Ph.D.,
City Engineer, Public Works
City of Miami Beach
1700 Convention Ctr Drive,
MiamiBeach, FL 33139
Re: Valuation for Potential Land Swap
5860 North Bay Road
Miami Beach, FL 33154
WRI File No. 7766
Client File No. 024445
Dear Mr. Mowry:
We have prepared an appraisal report of the above referenced property for the purpose of
estimating the market value of the main parcel (5820 North Bay Road), the across the fence
value of the "south tract" (contained within the main parcel) and the across the fence value of the
"north tract" (adjacent to the main parcel), as of May 31,2014. The across the fence value of
each tract is based on an estimate of the market value of the fee simple interest of the main parcel
as though vacant, and considers any appropriate adjustments. The location of the north and south
tracts, and the terms market value, across the fence value and fee simple interest, are defined in
the pages of this report. This report has been prepared based on the scope of work which is
detailed on a following page. The reader of the appraisal is strongly advised to read the scope of
work so as to understand the scope of this appraisal.
This report is intended for use only by the client and intended users as noted herein. No
additional intended users are identified or intended. Use of this report by others is not intended
by the appraiser. No one else, or any other entities, should rely on this appraisal other than those
noted herein.
The main parcel is located along the west side of North Bay Road, between West 58th and West
59th Streets, Miami Beach, Miami-Dade County, FL. Zoning on these sites is RS-2, Single
Family Residence District by the city of Miami Beach, FL.
Waronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page I
988
Mr. Bruce A. Mowry, Ph.D., P.E., City Engineer
City of Miami Beach
Public Works
June 20, 2014
In order to prepare the analysis, we were supplied with a draft of a site plan indicating the
location of the main parcel and the north and south tracts. It should be noted that the aerial
photograph in the Miami-Dade County Property Appraiser's records indicate a parcel outline for
the main parcel (5860 North Bay Road) that does not correspond to the legal description in the
most recent recorded deed, and based on measurements taken from the aerial photograph indicate
a lot size larger than the 24,425 sq. ft. indicated in the Miami-Dade County records. No survey
was provided. For purposes of the analysis, the lot size indicated in the County records (24,425
sq. ft.) is used in the analysis. The sizes for the north and south tracts have been calculated based
upon the draft site plan provided. Any deviation from the assumptions or the draft site plan
used herein would likely result in a change in the value conclusion.
The south tract consists of a 5,870 sq. ft. portion of the main parcel extending along the
southwest property line from North Bay Road to the water's edge. The north tract consists of a
City-owned parcel adjacent to the main parcel extending along the northeast property line from
North Bay Road to a point approximately 30 feet from the water's edge. The City has
underground water/sewer facilities on the north tract. The owner of the main parcel has proposed
to the City of Miami Beach to swap the south tract in exchange for the north tract.
This valuation is based on an across the fence methodology, in which the value estimates for the
north and south tracts are based on the market value of the fee simple interest of main parcel as
though vacant. This method has been used as neither tract (north or south) would be a buildable
site by itself. Based on this approach, the valuation of the north and south tracts is based on the
market value of the main parcel with appropriate adjustments for location, but without
consideration of any loss in value due to the construction of water/sewer facilities by the City
above or below ground on the land being swapped. It also does not consider any change in the
market value per sq. ft. of the main parcel occurring as a result of the proposed land swap (as a
result of any advantages gained or lost). In the valuation of the south tract, which is contained
within the main parcel and contains both street frontage and water frontage, no adjustments are
indicated. in the valuation of the north tract, which is adjacent to the main parcel along the north
side but lacks water frontage, an adjustment was considered in recognition of the tract's non-
waterfront location.
It should be noted thatthis valuation does not consider the net impact of the proposed land swap
on the market value of the main parcel. As a result of the land swap, the main parcelwould gain
a more desirable shape, a slight improvement in the quality of its water views, and an increase in
size, but it would lose a small portion of its water frontage. The net impact of these factors is
likely to be neutral to slightly positive, and could potentially affect the values of the north and
south tracts to the owner of the main parcel, but the influence of these factors was not considered
in the valuation, which was based on the across the fence value.
Vl/aronker & Rosen, Inc. .? Real Estate Appraisers & Consultants Page 2
989
Mr. Bruce A. Mowry, Ph.D.,
City of Miami Beach
Public Works
June20,20l4
P.E., City Engineer
As a result of our investigation, the across the fence value of the south tract, as of May 31,2014,
is estimated at:
TWO MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS
($2,350,000)
As aresult of our investigation, the across the fence value of the north tract, as of May 31,2014,
is estimated at:
TWO MILLION FIVE HUNDRED FIFTY THOUSAND DOLLARS
($2,350,000)
Following the table of contents is the scope of work and the certification. The reader is advised
to review the assumptions and conditions which follow the certification to understand the
limitations applicable to this appraisal.
Very truly yours,
d-*#.DJ -
Lee H. Waronker, MAI, SRA
State-Certified General Real Estate Appraiser
License No. R.Z162
State-Certified General Real Estate Appraiser
License No. R23420
yl/uronker & Rosen, Inc. €. Real Eslate Appraisers & Consultants Page 3
990
Table of Contents
Title Page
Letter of Transmittal
Table of Contents
Scope of Work
Certification
General Assumptions and Limiting Conditions
INTRODUCTION
Summary of Pertinent Data
Miami-Dade County Map
Plat Map
Aerial Photograph
Subject Photographs
Appraiser Qualifi cations
DESCRIPTION & ANALYSES
Purpose of the Appraisal
Client, Intended User and Use of the Appraisal
Definition of Across the Fence Value
Definition of Real Properfy Interest Appraised
Definition of Market Value
Location and Address
Legal Description
Owner of Record
History of the Subject Property
Site Data
Zoning
Flood Zone
Real Estate Assessment and Taxes
Description of the Site Improvements
Neighborhood Overview
Supply and Demand
Exposure Time
Typical Purchaser ofthe Subject
Highest and Best Use
Appraisal Process
Cost Approach
Income Capitalization Approach
Sales Comparison Approach
Reconciliation of Value
ADDENDA
Addendum A - County Area Description
Addendum B - Legal Description
1
4
5
6
8
10
l1
t2
13
l5
t6
19
/.J
24
24
24
24
25
26
26
26
26
27
27
2',7
28
29
30
31
5J
34
35
36
37
38
39
63
Waronker & Rosen, Inc. €, Real Estate Appraisers & Consultants Page 4
991
Scope of Work
The appraisal problem herein is to estimate the value of the south tract and the north tract. The
methodology used is to estimate the across the fence value of each tract based on the market
value of the fee simple interest in the main parcel land as though vacant. The market value
estimate employs the sales comparison approach to estimate market value of the main parcel
based on analysis of comparable sales. Forthe across the fence value estimate of the southtract,
no adjustment to the market value indication of the main parcel is indicated because the south
tract is contained within the main parcel and is representative of the main parcel because it
contains both street frontage and water frontage. For the across the fence value estimate of the
north tract, an adjustment is required for location because the north tract lacks water frontage. In
order to estimate the magnitude of this adjustment, additional sales of waterfront and non-
waterfront sites were considered in the analysis.
All appraisals begin by identifying the appraisal problem. Data on the subject property can be
derived from various sources including but not limited to, the property owner, the county
property appraiser's office, recorded plats and surveys. When possible, rnore than one source is
utilized to confirm data and the data sources are acknowledged. Land size is based on surveys
(when available), public records and recorded plats. Land measurements are not performed.
Valued herein is vacant land which can be valued by the following methods:
1. Sales Comparison Approach
2. Market Extraction
3. Allocation
4. Land Residual
5. Ground Rent Capitalization
6. Subdivision Analysis
The sales comparison approach was used herein and was considered the most applicable method
in the valuation of the main parcel. A search was performed for the sale of properties considered
comparable to the subject property. Research of comparable sales and market data include, but is
not limited to using the following data sources:
CoStar
Imapp
Newspaper clippings
Board of Realtors'Multiple Listing Service
Tri County Clippings Services (FREDI)
National Multiple Listing Service
Loopnet.com
Comparable sales are inspected and the transactional information is reported. Sale prices are
from public records and are typically confirmed with a party to the transaction, i.e. buyer, seller,
real estate agent, or closing attorney. All information is analyzed in processing the appraisal
report and as support for the estimated value. The scope of work for this assignment has been
described above and is to be typical for an assignment of the nature of the subject appraisal
problem.
ll/aronker & Rosen, Inc. * Real Estate Appraisers & Consultants Page 5
992
Certification
The undersigned does hereby certify that, to the best of my knowledge and belief:
1 . The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumplions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report
and no personal interest with respect to the parties involved.
4. I have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6. My 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 ofa subsequent event directly related to the intended use ofthis appraisal.
7. My analyses, opinions and conclusions were developed, and this report has been prepared,
in conformity with the following requirements.
. Uniform Standards of Professional Appraisal Practice (USPAP)
. The Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute. The State of Florida requirements for state-certified appraisers
8. I have complied with the USPAP Competency Rule.
9. This appraisal report sets forth all of the limiting conditions imposed by the terms of this
assignment or by the undersigned affecting the analyses, opinions and conclusions
contained in this report.
10. No one provided significant real property appraisal assistance to the person signing this
certification.
1 l. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives. Additionally, it is subject to review by the
state of Florida relating to review by the real estate appraisal subcommittee of the Florida
Real Estate Comrnisston.
As of the date of this report Lee H. Waronker, MAI, SRA, has completed the continuing
education program of the Appraisal Institute.
I, Lee H. Waronker, MAI, SRA, have made a personal inspection of the property that is
the subject ofthis report.
14. I, Carlos Diez have made a personal inspection of the property that is the subject of this
report.
12.
13.
Vl/aronker & Rosen, Inc. t Real Euate Appraisers & Consultants Page 6
993
15.
16.
Acknowledgement is given to Josh L. Rosen, MAI, in the review of this report.
Neither the undersigned, nor Waronker & Rosen, lnc. have performed any valuation or
professional services involving the subject property in any capacity, nor have we been
involved with the management, leasing, disposition, nor any similar service regarding the
subject property in the past three years.
State-Certified General Real Estate Appraiser
License No. R.Z162
State-Certified General Real Estate Appraiser
License No. R23420
Date of Report June 20.2014
Lee H. Waronker, MAI, SRA
Carlos Diez
Waronker & Rosen, Inc. & Real Estate Appraisers & Consultanls Page 7
994
General Assumptions and Limiting Conditions
This appraisal report has been made with the following general assumptions:
1. No responsibility is assumed for the legal description or for matters pertaining to legal or
title considerations. Title to the property is assumed to be good and marketable unless
otherwise stated.
2. The property is appraised free and clear of any or all liens or encumbrances unless
otherwise stated.
3. Responsible ownership and competent property management are assumed.
4. The information furnished by others is believed to be reliable but, no warranty is given
for its accuracy.
5. All engineering studies are assumed to be correct. Any plot plans or illustrative material
in this report are included only to help the reader visualize the property.
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it rnore or less valuable. No responsibility is assumed for such
conditions or for obtaining the engineering that may be required to discover them. The
values estimated herein are subject to typical inspections such as roof, structural, and
termite, if applicable.
7. It is assumed that the property is in full compliance with all applicable federal, state and
local environmental regulations and laws unless the lack of compliance is stated,
described and considered in the appraisal.
8. It is assumed that the property conforms to all applicable zoning and use regulations and
restrictions unless a non-conformity has been identified, described and considered in the
appraisal.
9. It is assumed that all required licenses, certificates of occupancy, consents, and other
legislative or administrative authority from any local, state or national government or
private entity or organization have been or can be obtained or renewed for any use on
which the opinion of value contained in this report is based.
10. It is assumed that the use of the land and improvements is confined within the boundaries
or property Iines of the property described and considered in the appraisal.
1l. Unless otherwise stated in this report, the existence of hazardous materials, which rnay or
may not be present on the property, was not observed by the appraiser. The appraiser has
no knowledge of the existence of such materials on or in the property. The appraiser,
however, is not qualified to detect such substances. The presences of substances such as
asbestos, ureaformaldehyde foam insulation or other potentially hazardous materials may
affectthe value of the property. The value estimated is predicated on the assumption that
there is no such material on or in the property 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 intended user is urged to retain an expert in
this field, if desired.
Waronker & Rosen, Inc. ,? Real Estate Appraisers & Consultants Page 8
995
12.
13.
14.
15.
16.
The physical condition of the improvements, if any, described herein was based on visual
inspection. No liability is assumed for the soundness of structural members, since no
engineering tests were made of same.
Neither all nor any part of this appraisal report shall be disseminated to the general public
using the appraiser's name or appraisal designation, without prior written consent of the
appraisers signing this appraisal report.
Authorization is not allowed for the out-of-context quoting from, or partial reprinting of,
this appraisal report.
By reason of the report, there is no requirement to testify with reference to the property
herein appraised, unless alrangements have been previously made.
The reader should be advised that our employment was not contingent on the appraisal
providing a minimum valuation, a specific calculation or the approval of a loan.
Additionally, we have complied with the USPAP Competency Rule.
Limiting Conditions:
1. The allocation of total value between land and improvements applies only under the
described utilization. The separate valuations for land and improvements must not be
used in conjunction with any other appraisal and are invalid if so used.
2. The Americans with Disability Act (ADA) became effective January 26, 1992. The
appraiser has not made a specific compliance survey and analysis of this property to
dLiermine whether or not it is in conformity with the various detailed requirements of the
requirements of the ADA. It is possible that a compliance survey of the property and a
detailed analyses of the requirements of the ADA, could reveal that the property is not in
compliance with one or more of the act. If so, this fact could have a negative impact upon
the value of the property. Since the appraiser has no direct evidence relating to this issue,
possible noncompliance with the requirements of ADA was not considered in estimating
the value of the property.
Waronker & Rosen, Inc. €, Real Estate Appraisers & Consultants Page 9
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Introduction Land Vqluation, 5860 N Road. Miami Beach, FL 33140
INTRODUCTION
>-d'a koself.
NGGdR P o R A T E D
Ll/aronker & Rosen, Inc €' Real Estate Appraisers & Consultqnts Page I0
997
Introduction
Location:
Address (main parcel):
Type of Use:
Zoning:
Flood Zone:
Land Area:
Main Parcel
South Tract
North Tract
Value by Cost Approach:
Value by Income Capitalization Approach:
Value by Sales Comparison Approach:
Main Parcel
South Tract
North Tract
Value Estimates:
Main Parcel
South Tract
North Tract
Date of Valuation:
Date of Report:
Land Valuation, 5860 N Road, Miami Beach, FL 33140
Summary of Pertinent Data
Along the west side of North Bay Road, between
West 58th and West 59th Streets, Miarni Beach,
Miami-Dade FL
5860 North Bay Road
Miami Beach, FL 33154
Single-family residential land
RS-2, Single Family Residence District by the
city of MiamiBeach, FL
AE (Map 12086C0309L)
24,425 sq.ft.
5,870 sq.ft.*
10,215 sq.ft.*
Not applicable
Not applicable
$9,800,000 ($+OO per sq. ft.)
$2,350,000 ($400 per sq. ft.)
$2,550,000 ($2SO per sq. ft.)
$9,800,000 ($400 per sq. ft.)
$2,350,000 ($400 per sq. ft.)
$2,550,000 ($250 per sq. ft.)
May 31,2014
June 20, 2014
*Estimated by the appraisers based on measurements provided in draft site plan
Vl/uronker & Rosen, Inc. * Real Estate Appraisers & Consultants Page I1
998
Road, Miami Beach, FL 33140
Miami-Dade County Map
Ll'aronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page 12
999
Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Plat Map
Note: the yellow outline denotes the boundaries of the main parcel
Waronker & Rosen, Inc. & Real Estate Appraisets & Consultants Page 13
1000
Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Draft Site Plan
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Page 14Waronker & Rosen, Inc. 8. Real Estate Appraisers & Consultants
1001
Introduction
Legend:
a
a
Lund Valuation, 5860 N Road, Miami Beach, FL 33140
Aerial Photograph
Yellow dashed line denotes current boundary of main parcel (main parcel), shaded in
yellow
Red shaded area on the right denotes south tract, to be removed from main parcel in
the proposed land swap
Blue shaded area on left denotes north tract, to be added to main parcel in the
proposed land swap
White dotted line denotes modified boundary of main parcel after the proposed land
swap
Waronker & Rosen, Inc €i Real Estate Appraisers & Consultants Page 15
1002
Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Subject Photographs
View of main parcel looking southwest from current location of driveway
at east end ofnorth tract
View looking northwest from same location as above, down the length of the north tract
Vl/aronker & Rosen, Inc. ,t Real Estate Appraisers & Consultants Page 16
1003
Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Zoomed-in view of west end of north tract,
looking northwest from drivewaY
East end of north tract, looking northwest
from west end of 59th Street
Southeast corner of main parcel (east end of
proposed south tract)
Street view: North Bay
(main parcel
Road looking south
on right)
Waronker & Rosen, Inc. '& Real Estate Appraisets & Consultsnts Page 17
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Introduction Land Valuation,5860 N Bay Road, Miami Beach, FL 33140
Street view: North Bay Road looking north
(main parcel on left)
Street view: West 59th Street, looking east
from current driveway at east end
of north tract
Waronker & Rosen, Inc. ,& Real Estate Appraisers & Consultants Page 18
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Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Appraiser Qualifications
LEE H. WARONKER, MAI, SRA
Education: Master of Science in Managernent, School of Business and Organizational
Science, Florida Intemational University, 1981 (Major-Real Estate)
Bachelor of Science Degree, The Florida State University, Tallahassee, Florida
1976 (Major - Real Estate)
Affiliations: MAI Designation (No.6738) awarded by the Appraisal Institute in 1983.
SRA (SRPA) Designation awarded by the Appraisal Institute in 1981.
State Certified General Appraiser, State of Florida, License Number RZl62,
May 1990.
Registered Real Estate Broker, State of Florida, License #8K0152877 (1978)
Experience: Appraised various types of properties, including:
Industrial Buildings Restaurants Warehouses
Office Buildings Hotels and Motels Hospitals
Service Stations Retail Stores Marinas
Churches & Synagogues U.S. Post Offices Historical Buildings
Residences Condominiums Special Purpose Properties
President, Waronker & Rosen, Inc., (formerly Waronker & Associates, [nc.)
Miami, Florida, from 1987 to present. Vice President, Property Consultants,
Inc. from 1979 to 1986. Appraiser, The Keyes Company, 1978 to 1979.
Appraiser, Miami-Dade County Department of Right-of-Way,1977 to 1978.
Instructor: Appraisal lnstitute. Taught Courses 1A-1, 1A-2,8-2, lB-A, lB-8, ll0, 120,
210, 310, 320, 410, 420,430, 510, 550, 600, 610 and 620, et al
Author: Seminars entitled "Dynantics of Office Building Valuation", "Wy.the
Capitalization Rate is Always 10" and the "Appraisal of Real Estate l7'n vs.
I l'h Edition".
Other: Special Master for the Dade County Valuation Adjustment Bo.ard, 1989 to
l996.Assisted in the editing of The Appraisal of Real Estate, 1l'n Edition and
l3'h Edition.
President of the Miami Chapter of the Appraisal Institute, 1990 to 1991.
?l/aronker & Rosen, Inc. {, Real Estate Appraisers & Consultunts Page 19
1006
Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Appraiser Qualifications
CARLOS A. DTEZ
Education: University of Florida (Gainesville, FL)
Bachelor of Arts. Major: Economics
Stevens Institute of Technology (Hoboken, NJ)
Substantial progress towards the degree of Master of Engineering
Affiliations: State-certified general real estate appraiser, State of Florrda,M3420
The Appraisal Institute, Candidate for Designation
CCIM Institute, Candidate Member
Appraisal Experience: Waronker & Rosen, Inc. September,2007 to Present
Appraised a wide variety of property types, including:
Vacant land Office buildings
Restaurants ShoPPing centers
Hotels Free-standing retail properties
Industrial properties Apartment buildings
Residential and Commercial Condominiums Condominium Units
Land leases (leased fee and leasehold interests) Fractured Condominium Interests
Easements (including aerial and sub-surface) Special Purpose Properties
Appraisal,Investment Analysis and General Real Estate Education:
The Appraisal Institute
100, 101: Basic Appraisal Principles and Procedures
202l. Residential Sales Comparison and Income Approaches
300: Real Estate Finance, Statistics and Valuation Modeling
400: General Market Analysis and Highest & Best Use
402 General Appraiser Site Valuation and Cost Approach
403,404: General Appraiser Income Approach (Parts I and 2)
405: General Appraiser Report Wriling and Case Studies
420:. Business Practices and Ethics
510: AdvancedlncomeCapitalization
550: Advanced Applications
530: Advanced Sales Comparison and Cost Approaches
Seminar: Hotel Appraising - New Techniques for Toda1,'s Uncertain Times
500: Advanced Market Analysis and Highest & Best Use
833: Fundamentals ofseparating Real Property, Personal Property, and Intangible Business Assets
Seminar: Marketability Studies: Advanced Considerations and Applications
CCIM Institute
Ct 101: Financial Analysisfor Commercial Investment Real Estate
CI 102: Market Analysisfor Commercial Investment Real Estate
CI 103: User Decision Analysisfor Commercial Investment Real Estate
CI 104: Investment Analysis for Commercial Investment Real Estate
FANSC: Feasibility Analysis for Retail Properties
MIMK: Advanced Market Analysisfor Commercial Reol Estate
Baruch College (CLINY) / Steven L. Newman Real Estate Institute
NCP2000: Urban Land Economics
NCP9000: Real Estate Development
Waronker & Rosen, Inc. * Real Estate Appraisers & Consultonts Page 20
1007
Introduction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Partial Client List
LENDERS TD Bank, N.A.
Totalbank
U.S. Century Bank
Wells Fargo Bank
Western Bank - Puerto Rico
Zions First National Bank
LIFE INSURANCE COMPANIES
GOVERNMENT AGENCIES
l$ United Bank
Amerasia Bank
Apollo Bank
BAC Bank
BNY Mellon Bank
BankUnited
Bank of America
Bank of Coral Gables
Bank Leumi
Branch Banking and Trust (BB&T)
Bridgelnvest, LLC
Broward Bank of Commerce
Cl Bank
CNL Bank
Capital Bank
Cigna Investments, Inc.
Citibank and Citicorp
City National Bank of Florida
Coconut Grove Bank
Comerica Bank
Credit Suisse First Boston Mortgage
Capital, LLC
Enterprise Bank ol Florida
Espirito Santo Bank of Florida
Executive National Bank
lrif,n rnira g*t
lFirst Bank of Miami
I First National Bank of South M iami
lFirstBank Florida
I ftorida Community Bank
lGibraltar Privale Bank and Trust
lGreat Florida Bank
lHssc s-t, N.a.
luottiauy Fenoglio Fowler. LP
I International Finance Bank
llsrael Discount Bank olNew York
llP More* Chase Bank
lLtoyas Int'1. Ban-[i (Lloyds of
I London)
lLrtheran Brotherhood
IMarquis Bank
lMorgun Stanley Mortgage Capital
lNorthem Trust Bank
locean Bank
lOptimumBank
I Popular Community Bank
I Professional Bank
I Regions Bank
lsrb"d.ll united Bank
lSpace Coast Credit Union
I SunTrust Bank
lTenabank. N.e.
Broward County School Board
Broward County Public Works Dept.
City of Coral Gables
City of Miami Beach
City of Miami General Services
Administration
Federal Deposit Insurance Corp. (FDIC)
Federal Home Loan Mortgage Corp.
(FHLMC)
Florida Dept. of Environmental
Protection
Florida Department of Transportation
Florida Keys Aqueduct Authority
Miami-Dade Water and Sewer
Authority
Miami-Dade Co. -Aviation Authority
Miami-Dade Co. - County Attorney's
Office
Miami-Dade Co. - General Serv. Admin.
Miami-Dade Co. - Housing & Urban Dev
Miami-Dade Co. - Public Works Dept.
Miami-Dade Co. - School Board
Miami Parking Authority
Nature Conservancy, Florida Chapter
South Florida Water Management District
United States Department of Justice
United States General Serv. Admin.
United States Postal Services
Village of Pinecrest
LAW FIRMS
Allstate Insurance Company
American General Life Insurance Co.
Equitnrst Lile lnsurance Co.
Fortis Capital Corp. & Life Insurance
Company
Franklin Life Insurance Company
General American Life Insurance Co.
Independent Order of Foresters
John Alden Life Insurance Company
Kansas City Life Insurance Company
Lumberman's Life Insurance Company
Omaha Woodmen Life Ins. Society
Standard LiG Insurance Company
State Farm Insurance ComPanY
Sun Lile Insurance Co. of America
CORPORATIONS
Church ofJesus Christ ofthe
Latter-Day Saints
Florida Power and Light Corp. (FPL)
JC Penny Corporation
The Wendy's Company
Chevron U.S.A., Inc.
Johnson and Johnson Company
DEVELOPERS AND INVESTORS
Akerman, Senterfitt & Eidson
Amstein & Lehr, LLP
Barranco & Associates, P.A.
Berger Singerman
Berman, Wolfe Rennart Vogel &
Mandler, P.A.
Carlton Fields
Colson Hicks Eidson, P.A.
Greenberg Traurig, P.A.
Holtand & Knight
Kirkpatrick and Lockhart
Kutner and Associates
Richman Greer
Shutts & Bowen, LLP
Steams, Weaver, Miller, Weissler,
Alhadeff & Sitterson, P.A.
Steel Hector and Davis
Tabas, Freedman, Soloff, Brown &
tugali, P.A
Iripp Scott
Weiss Serota Helfman Pastoriza Cole &
Boniske. P.A.
Berkowitz Development Group
Bristol Croup, Inc.
Franklin Street Properties
Flagler Development Corporation
Goldman Properties
Hampshire Real Estate ComPanies
Lennar Corporation
MDM Development, Inc.
Napolitano Realfy and Harnap Corp.
Noble House Resorts and Hotels
Ocean Properties, Ltd.
Panther Real Estate
PLC Investments, LLC
R.K. Associates, Inc.
The Scott Robins Companies
Wometco Enterprises, Inc.
Wqronker & Rosen, Inc €' Real Estate Appraiserc & Consultsnts Page 21
1008
Introiluction Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Notable Properties Appraised
Miami-Dade CountY
Miami Seaquarium Virginia Key Miami Free Zone - Global Trade Cntr Miami
Miami Intemational Airport Miami Metropolitan Hospital of Miami Miami
City of Miami Conectional Facility Miami Spinnaker Marina North Miami
Country Club of Miami Gotf Course Miami Virginia Key & Rickenbacker Marinas Key Biscayne
Mel Reese Golf course Miami waterways Yacht Basin Miami
Burger King Headquarters - Waterford Miami Porto Vita Club and Spa Aventura
Dociors Hoipital Coral Gables Ocean Steps Entertainment Center S. Miami Beach
Beacon Centre Development Miami Indian Creek Country Club Indian Creek
FBI Headquarters Miami BIV Tower Miami
Gables Waterway Executive Center Coral Gables Courthouse Tower Miami
Joe's Stone Crab restaurant Miami Beach South Shore Hospital Miami Beach
Doral Ocean Beach Resort (formerly) Miami Beach SouthCom Headquarters Miami
Metro-Dade Bus Facility Miami
Fort La u der dalelBr o w ar d C o untY
Florida Medical Center (Hospital)
Iackson Marine Center
Las Olas Centre Olfice Building
Martha s Restaurant
Various Luxury Single Family Homes
Seneca Industrial Park
Monroe CountylFlorida KeYs
Maniott Key Largo Bay Beach Resort
Islander Resort
Hawk's Cay Resor! Marina and DRI
Westin, formerly Hilton Resort and Sunset Key Island
Little Palm Island
Louis' Backyard Restaurant
Ocean Key Resort
Sloppy Joe's Bar
Truman Annex - Navy Base
Other Florida Counties
Jupiter Beach Resort
La Playa Beach Resort
Sheraton Four Points
Spring Hill Suites
Hilton Carillon Park
Outside of the United States
Various Single Family Homes
Single Family Home
Sapphire Beach Resort
Hotel Site
Montego Beach Resort
Botany Bay Subdivision (400 acres)
Ocean Club Resort
Land lease under Ritz Carlton
Various Land Hotdings
Vacant Land
Buccaneer Hotel and Golf Course
Ft. Lauderdale
Ft. Lauderdale
Ft. Lauderdale
Hollywood
Fort Lauderdale
Pembroke Park
Key Largo
Islamorada
Duck Key
Key West
Little Torch Key
Key West
Key West
Key West
Key West
Jupiter. Palm Beach Coung
Naples, Collier County
Orlando, Orange County
Tampa, Hillsborough County
St. Petersburg, Pinellas County
Cat Cay, Bahamas
Casa de Campo, Dominican Republic
St. Thomas, U.S. Virgin Islands
Grand Turks and Caicos Islands
Montego Bay, Jamaica
St. Thomas, U.S. Virgin Islands
Grand Turks and Caicos Islands
San Juan, Puerto Rico
St. Croix, U.S. Virgin Islands
West End, Grand Bahama Island
St. Croix, U.S. Virgin Islands
Waronker & Rosen, Inc. €. Real Estate Appraisers & Consultunts Page 22
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Descrintion & Analvses Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
DESCRIPTION &
ANALYSES
RPORATED
lV'aronker & Rosen, Inc. t' Real Estate Appraisers & Consultants Page 23
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Ortrrtpmr A errUt
Purpose of the Appraisal
The purpose of this appraisal is to estimate the across the fence value of the fee simple interest in
the north tract and the south tract, as of May 31,2014 for a potential land swap. The terms
across the fence value and fee simple interest are defined below, and the term market value is
defined on the following page.
Client, Intended User and Use of the Appraisal
The intended user of this appraisal is City of Miami Beach (client). The intended use of this
appraisal is for valuation in connection with a possible land swap involving a portion of the main
parcel (the south tract) and an adjacent City-owned parcel (the north tract). No additional
intended users are identified or intended.
Definition of Across the Fence Value
The values estimated herein are across the fence values, defined as follows:
Across the Fence Value:ln corridor valuation, a value opinion based on comparison with
adjacent lands including consideration of adjustment factors such as market conditions,
real property rights conveyed, and location.l
Definition of Real Property Interest Appraised
The realproperty interest appraised herein is that of the fee simple interest, defined as follows:
Fee Simple Interest: an absolute fee without limitations to any particular class of heirs,
but subject to the limitations of eminent domain, escheat, police power and taxation' An
inheritable estate.
' The Dictionary of Real Estate Appraisal, 5th ed., p' 3
lV'aronker & Rosen, Inc. .t' Real Estate Appraisers & Consaltants Page 24
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Description & Analyses Land Valuation, 5860 N Bay Rosd, Miami Beach, FL 33140
Definition of Market Value
Market Value is the major focus of most real property appraisal assignments. Both economic and
legal definitions of market value have been developed and refined.' The Uniform Standards of
Professional Appraisal Practice (USPAP) states Market Value is "a type of value, stated as an
opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such
rights), as of a certain date, under specific conditions set forth in the definition of the term
idintified by the appraiser as applicabie in the appraisal".2 This requires the appraiser to identify
the definition of market value and its authority. The definition that follows is the basis of the
valuation in this appraisal and the source is the Federal Register.
"For example, the following definition of Market Value is used by agencies that regulate
federally insured financial institutions in the U.S.:
Market Value is defined as "the most probable price which a property should bring in a
competitive and open market under all conditions requisite to a fair sale, the buyer and
seller each acting prudently, knowledgeably and assuming the price is not affected by
undue stimulus. tmplicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
. Buyer and seller are typically motivated;
. Both parties are well informed or well advised, and acting in what he or she considers his
or her own best interest;
. A reasonable time is allowed for exposure in the open market;
. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
. The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale."3
This market value definition is referenced within the appraisal regulations of the following
govemmental agencies;
. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of
1989
. Department of the Treasury
. The FederalReserve System (FRS)
. Federal Deposit Insurance Corporation (FDIC)
. Office of Thrift Supervision (OTS)
. Office of Comptroller of the Currency (OCC)
I
2
3
Appraisal of Real Estate, 14n Edition, page 58
USPAP 2014-2015, page U-3
Appraisal oJ Real Estate, l4d Edition, page 55
ll'aronker & Rosen, Inc. t, Real Estate Appraisers & Consultants Page 25
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Description & Analyses Land Valuation, 5860 N Bay Roqd, Uiarn! Beach, FL 33140
Location and Address
The main parcel, south tract and north tracts are located along the west side of North Bay Road,
between West 58th and West 59th Streets, MiamiBeach, FL.
Address (main parcel): 5860 North Bay Road
Miami Beach, FL 33154
Legal Description
The legal description of the main tract is lengthy. A copy reproduced from the most recent
recorded deed is shown in Addendum B. No separate legal description was provided for either
the south tract or the north tract.
Source : www.miamidade. gov
Owner of Record
(main parcel)
Ambassa Holdings, Inc.
c/o Christian De Berdourare
10800 Biscayne Boulevard, Suite 820
North Miami, FL 33161
Source : www.miamidade. gov
History of the Subject Property
The main parcel was last sold on May 6, 2014 for $9,650,000 ($395 per sq. ft.). This sale was
recorded in the Public Records of Miami-Dade County at Official Records Book 29153, Page
2934. According to various real estate services the subject property is not under contract or listed
for sale.
Source: www.miamidade.gov
Waronker & Rosen, Inc. .1. Real Estate Appraisers & Consultants Page 26
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Description & Analyses Land Valuatioo, 5860 ! l_E lgo!$rofr leach, FL 33 140
Site Data
The main parcel is irregular in shape. No survey was provided. Based on the legal description in
the most recent recorded deed and the recorded plat, the appraisers estirnate that there is street
frontage of approximately l0l feet along the west side of North Bay Road, and water frontage of
approximately 150 feet on Biscayne Bay. The Miami-Dade County Property Appraiser's records
indicate a parcel size of 24,425 sq. ft. Note that the aerial photograph in the County records
indicates an incorrect boundary for the subject property, based on the legal description. The site
is level and at approximate street grade. Utilities available to the site are:
Electric:
Telephone:
Water:
Sewer Disposal:
Florida Power and Light
AT&T
Municipal
Municipal
Based on the draft site plan provided, the south tract runs the length of the south perirneter of the
main tract and has an irregular shape, with frontage of 50 feet along the west side of North Bay
Road and water frontage of 25 feet on Biscayne Bay. The north tract runs along a portion of the
north perimeter of the main tract (from North Bay Road to a point 30 feet from the waterfront), is
trapezoidal in shape and has frontage of 50 feet along the west side of North Bay Road (with no
water frontage).
Zoning
The main tract is zoned RS-2, Single Farnily Residence District by the city of Miami Beach, FL.
For a detailed listing of allowable uses and restrictions, refer to the zoning code of Miami Beach,
FL.
Flood Zone
The subject sites are within Flood Zone AE, areas subject to a one percent or greater annual
chance of flooding in any given year. Base flood elevations are shown as derived lrorn detailed
hydraulic analyses. This flood zone requires mandatory purchase of flood insurance in
participating communities. This identification was located on Flood Insurance Rate Map,
Community Panel No. 12086C0309L, revised September 11,2009. For insurance purposes, a
surveyor should be contacted to verify the exact zone by a flood elevation certificate, as well
as its impact on insurance.
S o arce : www. interfloo d. com
lVaronker & Rosen, Inc. t Real Estate Appraisers & Consultants Page 27
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Description & Analyses Land Valuation, 5860 N Bay Rqa!,.tuIiami Beach, FL 33140
Real Estate Assessment and Taxes
TaxingAuthority: Miami-DadeCounty
Assessment Year: 2013
Millage Rate: 20.3368
Folio Number: 02-3215-003-0220 (main tract)
The following is a summary of the assessment:
*This is the size per the Miami-Dade County Property Appraiser's records
The real estate taxes are estimated as follows:
TAXCALCULATION TAXES PER SQ.FT.
Millage Rate (Millage Rate -1,000)0.0203368
Times Total Assessed Value x $6,653,552 $ l.05 r.78
Estimated Real Estate Taxes $ l3s,3l2 $21 .39
There is a 4olo discount given for early (November) payment of taxes which would reduce the
estimated real estate taxes to $129,900, ($135,312 minus 4Yo).
Florida Statutes require assessments to be at 100% ofjust value (market value) with an allowable
adjustment to indicate net proceeds that would be derived from a sale. This adjustment varies
dependent on the taxing authority with the Miami-Dade County Property Appraiser's office
typically designating in the range of l5%. Based upon the market value estimated herein the
assessment is below what is appropriate.
TAX ASSESSMENT
ANALYSIS
TOTAL
ASSESSMENT
SQ.FT.
SIZE*
ASSESSMENT
PER SQ.FT.
Assessed Land Value $5,949,548 24,425 $243.58
Assessed Value of Improvements 704.004 6,326 s111.29
Total Assessed Value $6,6s3,552 6,326 $1,051.78
Waronker & Rosen, Inc. €, Real Estate Appraisers & Consultants Page 28
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Description & Analyses Land Valuation, 5860 N Boy Rood, Miod Beach, FL 33140
Description of the Site lmprovements
The existing improvements consist of a single family residence originally built in 1948, but the
structure is likely to be demolished by the owner who recently purchased the property with the
intent to build a new residence.
l|/aronker & Rosen, Inc, 'l' Real Estate Appraisers & Consultants Page 29
1016
Road, Miami Beach, FL 33140
General Neighborhood Data
Location:
Built Up:
GroMh Rate:
Property Values:
Demand/Supply:
Present Land Use:
Change in Present Land Use:
Predominant Use:
Property Compatibi I ity:
General Appearance of Properties:
Appeal to Market:
Adjacent Uses
East:
West:
South:
North:
Linkages
Public Transportation:
Employment Centers:
Expressway Access:
Miami International Airport:
Neighborhood Overview
Suburban
80Yo to 90o/o
Stable
Increasing
In balance
Residential
Not likely
Residential
Very good
Very good
Very good
Single family residential (across
Biscayne Bay
Single family residential
Single family residential
Distance
Within a few blocks
Three to five miles
Five to seven miles
Ten to fifteen miles
the street)
Access
Very good
Good
Average
Average
ll/aronker & Rosen, Inc. z?' Real Estute Appraisers & Consuhants Page j0
1017
Description & Analyses Land Valuation, 5860 lr{ l!! lgo!, Mio*i leach, FL 33140
Supply and Demand
Market conditions for residential real estate in Miami-Dade County have shown substantial
improvement since the sharp declines that followed the recent recession and financial crisis, with
properties at the most desirable locations seeing very significant improvement during the past
year. Demand for larger single-family parcels on the waterfront is currently very strong, and due
to the relative scarcity of vacant waterfront land many of the most recent sales have been of
parcels improved with single-family residences (in a number of cases structures in good
condition that were marketed for sale as luxury residences), but which were purchased with the
intent to demolish and build new. Note that, because many of these properties were originally
marketed as luxury homes, their record in the Multiple Listing System (MLS) registers the sale
as an improved property, not as vacant land.
The scatter plot shown on the following page is based on data from the MLS for sales of single-
family waterfront (ocean, bay or Intracoastal Waterway) residential lots since June l, 2012with
sales prices of $5,000,000 and above. The horizontal axis is the number of months elapsed since
the sale occurred. Two series are shown: sales of improved sites (recorded in the MLS as sales of
luxury homes), and sales of vacant land. The vertical axis indicates the price per sq. ft. of land
(for both series). The vacant land series includes the recent sale of the main parcel and all of the
comparable sales considered in the sales comparison approach, among others. The improved
series is believed to include some (though an unknown number of) properties that were actually
purchased for land (with the intent to demolish and build new). The trend lines shown are based
on linear regression analysis of each series, and provide an indication of the change in values
over time. The slope of the "improved" series indicates an increase of $5.59 per sq. ft. per month
and the slope of the "vacant" series indicates an increase of $9.00 per sq. ft. per month. The
vertical difference between the trend lines is attributed to the fact that most of the sales in the
improved series were purchased with improvements that had value above the land value.
The analysis described above and shown in the chart is useful because it provides support for two
general observations. First, values overall for luxury single-family waterfront properties have
increased rapidly over the past two years. For example, the slopes of the trend lines represent
percentage increases of 160/o per year for the "improved" series and 3 loh pet year for the
"vacant" series, based on the trend line values at time period 0 (the valuation date). These levels
are well above the increases observed for the single-family market in general. Second, the faster
rate of growth in the vacant land series as compared to improved series supports the conclusion
that demand for vacant waterfront sites above $5,000,000 suitable for construction of new ultra-
luxury residences is currently very strong. This also helps explain the increasing number of sales
of improved sites in which the buyer intends to demolish instead of occupy or renovate the
existing structure.
ll/aronker & Rosen, Inc. * Real Estate Appraisers & Consultunts Page 3l
1018
Description & Analyses Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Sales of Waterfront Single-Family Lots
Miomi-Dode County / Sqle Price 55 fvtillion +
X
x
xo
o
C
c
a1
,-
s1,0s0
s9so
ssso
Szso
$5so
55so
s450
S:so
$250
S150
5s0
x
x*.
I x
xy.
3s
x x*I'*
Xx..yx"'
x o
lx
X
>1
*
1X
a
25
Source: MLS
x
2A )
x lrtlrcvid a !acant
Note: red marker indicates most recent sale of main parcel
Based on the analysis, if the main parcel were marketed for sale as a development site suitable
for construction of a new ultra-luxury residence, demand would be very strong and there would
likely be an abundance of potential buyers.
5...x......
" *x\
x-x -t<x
,. ,.)x. " "xx:x X>fl( x
X
ll'aronker & Rosen, Inc €. Real Estate Appraisers & Consultants Page 32
1019
Drtrrtptt"" & A"rU
Exposure Time
Exposure time is the "estimated length of time that the property interest being appraised would
have been offered on the market prior to the hypothetical consurnmation of a sale at market value
on the effective date of the appraisal. Exposure time is a retrospective opinion based on an
analysis of past events assuming a cornpetitive and open market"l.
This analysis considers the exposure time at a market related price such as the estimated market
value herein. In estimating exposure time, sales are analyzed, real estate brokers and property
owners are interviewed and statistics from published surveys are considered. Based on data
obtained from the MLS, the median number of days on the market for waterfront single-family
residential lots selling for $5,000,000 and up in Miami-Dade County since January 1,2013 was
250, based on a sample of 11 sales. Lower priced waterfront lots tended to sell in less time. The
analysis also indicates that market conditions are on an improving trend, with demand gaining
strength.
The exposure time for the subject is estimated at six to nine months. This estimate considers that
the property would have been properly marketed and priced, If the property were not to have
been priced correctly or rnarketed through proper channels, then it is not likely that neither the
estimated market value nor the estimated exposure time would have been achieved.
' Uniform Standards of Professional Appraisal Practice {USPAP) 2014-2015 Edition, Page U-3
Woronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page 33
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& Analyses Land Vqluation, 5860 N Bay Road, Miami Beach, FL 33140
Marketing Time
Marketing time differs from exposure time which is presumed to precede the effective date of
appraisal. It is an opinion of the amount of time it might take to sell a real or personal property
interest at the concluded market value level during the period immediately after the effective date
of an appraisal. The main parcel is a large waterfront lot in a very desirable location with limited
available product. There is significant demand for such product with marketing times decreasing.
The marketing time is estimated at six to nine months. This assumes that the property is properly
marketed and priced correctly. t1l
Typical Purchaser of the Subject
The main parcel is a large waterfront residential lot. There is significant demand for such
properties in Miami Beach, and a relative scarcity of vacant lots, which has prompted many
buyers to purchase improved sites for demolition and new construction. The typical purchaser
would be a wealthy individual or family.
l\ The Dictionary of Real Estate Appraisal, 5'h edition, page l2l
Vl/aronker & Rosen, Inc. €' Real Estate Appraisers & Consultants Page 34
1021
Description & Analtses Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Highest and Best Use
The site is valued for its highest and best use, which may be defined as follows:
fhat reasonable and probable use that will support value
as defined as of the effective date of the appraisal.
In analyzing the highest and best use, the following four questions are answered:
1. Legally Permissible. What uses are legally perrnitted on the subject site with
respect to zoning ordinances and deed restrictions?
2. Physically Possible. What uses of those legally allowed are physically possible
on the subject site?
3. Financially Feasible. Of those uses determined to be physically possible and
legally perrnissible, which ones will produce a positive retum?
4. Maximally Productive. Of those that are feasible, legally permissible, and
physically possible, which will produce the highest rate of return or value?
As Vucant
The zoning on the main parcel is RS-2, Single Family Residence District by the city of Miami
Beach, FL. The subject location is desirable. The market continues to strengthen and values are
high enough to feasibly construct on the site. Therefore, the highest and best use as though
vacant, would be to construct a luxury single-family residence on the site.
As Improved
The subject properties are being valued as vacant land and therefore an analysis of the highest
and best use as improved is not applicable.
Waronker & Rosen, Inc. .*. Real Estate Appraisers & Consultants Page 35
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Dttrrtpttrr & ArrU
Appraisal Process
An analysis of three separate approaches to value; sales comparison approach, cost approach,
and income capitalization approach, will be considered to estimate the value of the main parcel.
Although these three approaches to value are considered within every appraisal report, they may
not be applicable to each and every property being appraised.
The cost approach is based on the principle of substitution which states that an informed
purchaser would not pay more for a property than the cost of reproducing a property with the
same utility. The cost approach can often yield reliable estimates of value for new construction.
This approach entails estimating the cost of producing the improvements, deducting an estimate
of depreciation, then adding the value of the site as if vacant. To this value an entrepreneurial
incentive is added to arrive at the estimated value by the cost approach.
The income capitalization approach is based on the concept that value is created by the
expectations of future benefits and higher eamings should result in higher values. Income
producing real estate is purchased for the right to receive future income. The income
capitalization approach consists of methods to analyze a property's capacity to generate income,
and a reversion, and convert these monetary benefits into an estimate of value.
The sales comparison approach is based on the principle of substitution which suggests that,
within competitive markets, similar products will realize similar prices. Inherent in this concept
is the premise that a purchaser would not pay more for a property than the cost to acquire another
property with the same amenities and utility.
The final steps in the appraisal process are review and reconciliation of the data and conclusions.
In reaching a final conclusion of value, the entire process involving the approaches that were
estimated must be reviewed for accuracy, completeness and consistency. After analysis,
evaluation and reconciliation of the indications a value is estimated. The essence of this final
reconciliation should be a defensible and rational conclusion of value.
The only approach used in this appraisal is the sales comparison approach. The income
capitalization approach and the cost approach are not applicable to the valuation of the main
parcel.
ll'aronker & Rosen, Inc. t Real Estate Appraisers & Consultants Page 36
1023
Cost Approach Land Valuatioo, 5860 N Boy Rood,Mirfr Beach, FL 33140
-
Cost Approach
The basis of the cost approach is the principle of substitution. This principle suggests that a
prudent buyer would not pay more for a property than the cost to acquire a similar site and
construct comparable improvements.
Following are the procedures for preparing the cost approach.
l. Estimate the value of the land as though vacant and available to be developed to its highest and
best use.
2. Determine which cost basis is most applicable to the assignment: reproduction cost or
replacement cost.
3. Estimate the direct (hard) and indirect (soft) costs of the improvements as of the effective
appraisal date.
4. Estimate an appropriate entrepreneurial profit or incentive from analysis of the market.
5. Add estimated direct costs, indirect costs, and the entrepreneurial profit or incentive to arrive at
the total cost of the improvements.
6. Estimate the amount of depreciation in the structure and, if necessary, allocate it among the three
major categories: physical deterioration, functional obsolescence, and external obsolescence.
7. Deduct the estimated depreciation from the total cost of the improvements to derive an estimate
of their depreciated cost.
8. Estimate the contributory value of any site improvements that have not already been considered.
(Site improvements are often appraised at their contributory value - i.e., directly on a depreciated-
cost basis - but may be included in the overall cost calculated in Step 3 and depreciated, if
necessary).
9. Add land value to the total depreciated cost of all the improvements to develop the market value
of the property.
10. Adjust for personal properfy (e.g., fumiture, fixtures, and equipment) or intangible assets that are
included in the appraisal.
I 1. Adjust the value conclusion, which reflects the value of the fee simple estate, for the property
interest being appraised to arrive at the indicated value ofthe specified interest in the property. I
As the main parcel is being valued as vacant land, the cost approach is not applicable.
I The Appraisal of Real Estate, l4th Edition, 2013, Pages 568 and 569
Vl/aronker & Rosen, Inc. & Real Estate Appraisers & Consultants Page j7
1024
Income Capitalization Approach Land valuation, 5860 N Bqt Road, Miami Beach' FL 331!!
-
lncome C apitali zttion Approach
Income producing real estate is typically purchased as an investment, and from an investor's
point of view earning power is the critical element affecting property value. One basic
investment premise holds that the higher the eamings, the higher value, provided the amount of
the risk remains constant. An investor who purchases income-producing real estate is essentially
trading present dollars for the expectation of receiving future dollars. The income capitalization
approach to value consists of methods, techniques, and mathematical procedures that an
appraiser uses to analyze a property's capacity to generate benefits (i.e., usually the monetary
benefits of income und ,.r..iion; and "onr".t these benefits into an indication of present value.l
In the income capitalization approach, an appraiser analyzes a property's capacity to generate
future benefits and capitalizes the income into an indication of present value. The principle of
anticipation is fundamentalto the approach.2
An income capitalization approach was not applied as it was not within the scope of this
appraisal. Since this approach is typically not considered by purchasers of this property type, not
using it does not limit the reliability of the value estimated herein.
I Appraisal of Real Estate, l4rh Edition, 2013,Page 439
' ruid.,qlg
Waronker & Rosen, Inc. * Real Estate Appraisers & Consultants Page 38
1025
Sales Comparison Approach Land Valuation, 5860 N Boy Rood, Miod Beach, FL 33140.
Sales Comparison Approach
The sales comparison approach is based on the principle of substitution. The principle of
substitution holds that the value of property tends to be set by the cost of acquiring a
substitute or alternative property of similar utility and desirability within a reasonable
amount of time.l
In the Sales Comparison Approach, an opinion of market value is developed by comparing
properties similar to the main parcel that have recently sold, are listed for sale, or are under
contract (i.e., for which purchase offers and a deposit have been recently submitted). A major
premise of the sales comparison approach is that an opinion of the market value of a property
can be supported by studying the market's reaction to comparable and competitive properties.
Qualitative analysis is a relative comparison process without mathematics. Sales are ranked
based upon their desirability as compared to the subject. Comparisons can be expressed as
plus or minus as opposed to dollar or percentage adjustments.
Quantitative analysis is the process of applying mathematical techniques. Sales are adjusted to
the main parcel on a dollar or a percentage basis. One method of supporting adjustments is
through paired data analyszs. This method analyzes two sales and attributes the difference in
their sales prices to the characteristic which is different. This analysis requires an abundance
of sales data which is frequently not available.
Qualitative analysis is used herein to estimate a value by the sales comparison approach.
Characteristics of the sales considered superior to the subject are given a minus (-) adjustment.
Those characteristics of the sales considered inferior to the subject are given a plus (+)
adjustment. Each sale is given an overall adjustment indicating how it compares to the subject.
On the following page is a grid of the sales used for comparison to the main parcel.
I The Appraisal of Real Estate 14th Edition, 2013,page379
Vl/aronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page 39
1026
Sales Comparison Approach Land Valuatirn, 586! l! lol lg!!, Miod leach' FL 33140.
Vacant Land Sales Grid
Following is a grid of the comparable sale properties used for comparison to the main parcel.
Sale
No.
Sale
Date Location
Water
Frontage View Sale Price
Sq. Ft.
Size
Price/
Sq. Ft
February
2014
6455 Pine Tree Drive Circle
Miami Beach
360'Waterways s7,000,000 27,860 s25 I
2 April 2014 34 La Gorce Drive
Miami Beach
t36',Bay $14,000,000 22,912 s61 I
3 January 2014 6596 Allison Road
Miami Beach
200'Waterway $11,700,000 43,200 $271
4 April 2014 1757 West 27th Street
Miami Beach
100'Waterway,
Partial Bay
View
s6,775,000 20,000 s339
5 December
2013
6440 North Bay Road
Miami Beach
100'Waterway
and Bay
View
s6,600,000 27,517 $239
6 September
2013
6010 North Bay Road
Miami Beach
75'Portion of
Bay
s6,250,000 21,228 s294
'1 March 2014 845 E Di Lido Drive
Miami Beach
92'Bay s5,700,000 13,353 s427
Subject May 2014 5860 North Bay Road
Miami Beach
[50'Bay $9,650,000 24,425 s395
lAaronker & Rosen, Inc. * Real Estate Appraisers & Consultants Page 40
1027
Sales Comparison Approach Land Valuation, 5860 N Bay Road, Miqmi Beach, FL 33140
Vacant Land Sales Map
lVsronker & Rosen, Inc. .i, Real Estate Appraisers & Consultants Page 4I
1028
Sales Comparison Approach Land Valuatior, 5860 N Bry Rood, Mio*freach, FL 3314!
Comparable Land Sale 1
Location
6455 Pine Tree Drive Circle
MiamiBeach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
27,860
Price/Sq.Ft.
s2sr.26
WAR No.
30361 5
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
$7,000,000
February 2014
2903611238
Georges Levy and Valerie Levy
Brickview 3ll4,LLC
Lengthy legal description. Refer to the recording instrument.
02-3211-013-0050
All cash to the seller
None in the past five years
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Irregular
Grade level
This is a "tip" lot located on the northeast side of Pine Tree Drive Circle, a small street that loops
between La Gorce Drive and Pine Tree Drive. It benefits from wide water views facing north
toward La Gorce Island and east toward Allison Island. Total water frontage is approximately
360 feet. It was improved with a 7,565 sf residence built in 1950, but the buyer is demolishing it
to make way for a new residence.
Waronker & Rosen, Inc. 8' Real Estate Appraisets & Consultants Page 42
1029
Sales Comparison Approach Land Valuation, 5860 l,l !9! lo!!, M:o*i leach' FL 33140.
Comparable Land Sale 2
Location
34La Gorce Drive
MiamiBeach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
22,912
Price/Sq.Ft.
$611.03
WAR No.
303616
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
$ 14,000,000
April20l4
29t401301.6
Joseph Z. Fleming and Betty C. Fleming
34 La Gorce Circle Partners, LLC
Lot 17, Block 1, LA GORCE ISLAND, according to the Plat
thereof, as recorded in Plat Book 34, Page 83 of the Public
Records of Miami-Dade County, Florida
02-32t0-003-0 140
All cash to the seller
None in the past five years
RS-2, Single Family Residence District by the city of Miami
Beach, FL
lrregular
Grade level
This lot is located on the southwest side of La Gorce Island, an exclusive guard-gated residential
community. tt benefits from wide open bay views facing southwest. Total water frontage is
estimated at136 feet. It was improved with a4,846 sq. ft. residence built in 1941 thatthe buyer
is demolishing to make way for a new residence.
\l/aronker & Rosen, Inc. * Real Estate Appraisers & Consultants Page 43
1030
Sales Comparison Approach Land Valuatioo, !860 N Boy fuod, Mio*freach, FL 33140.
Comparable Land Sale 3
Location
6596 Allison Road
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
43,200
Price/Sq.Ft.
$270.83
WAR No.
303617
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
$l1,700,000
January 2014
2899911s84
Frank Bramson and Phyllis G. Bramson
Michael Burke and Brigitte Burke
Lots 30,31 and theNorth 25 feet of Lot 32, Block,INDIAN
CREEK, according to the Plat thereof, as recorded in Plat Book
31, Page 75 of the Public Records of Miami-Dade County,
Florida
02-3211-003-0300Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoningl'
Shape:
Topography:
Comments
This lot is located on the west side of Allison lsland, with 200 feet of water frontage and views
of the waterway facing west toward La Gorce Island. It is a large lot, most lots on the island
being about half the size. The seller was in the process of demolishing an older residence and
splitting the lot into two equal size lots. It was marketed for sale as either one larger lot or two
srnaller lots and was on the market for about six months when it sold as a single lot.
Al1 cash to the seller
None in the past five years
RS-2, Single Family Residence District by the city of Miami
Beach, FL
Square
Grade level
ll'aronker & Rosen, Inc. t' Real Estate Appraisets & Consullants Page 44
1031
Sales Comparison Appro ach Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Comparoble Land Sale 4
Location
1757 West 27th Street
MiamiBeach, FL 33140
Property Type
Vacant Residential Lot
Square Feet
20,000
Price/Sq.Ft.
$338.7s
WAR No.
30361 8
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
$6,775,000
April20l4
29127t2276
Campbell Avery Smith, as trustee
1757 W 27th Street, LLC
Lot22, Block 2H, ISLAND NO. 2, 3RD REVISED PLAT OF
SLINSET ISLANDS, according to the Plat thereof, as recorded
in Plat Book 40, Page 8 of the Public Records of Miami-Dade
County, Florida
02-3228-001-1260Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This lot is located on the north side of one of the Sunset Islands, with 100 feet of water frontage
facing north, with views facing north toward another of the Sunset Islands, and partial bay views
facing northwest.
All cash to the seller
None in the past five years
RS-2, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
Ll/sronker & Rosen, Inc. .i. Real Estate Appraisers & Consultants Page 45
1032
Sales Comparison Approach Land Valuation,5860 N Bay Road, Miami Beach, FL 33140
Comporable Land Sale 5
Location
6440 North Bay Road
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
27,577
Price/Sq.Ft.
$239.33
WAR No.
30361 9
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
$6,600,000
December 2013
289551207s
Versel Overseas Lirnited
6440 NBR, LLC
Lengthy legal description. Refer to the recording instrument.
02-3215-003-0020
AII cash to the seller
None in the past five years
RS-2, Single Family Residence District by the city of Miami
Beach, FL
Irregular
Grade level
This lot has about 100 feet of water frontage facing northwest toward La Gorce Island and
Normandy Isle. Based on a reading of the legal description and the recorded plat, the parcel
boundary shown in the county's aerial photograph incorrectly shows 200 feet of water frontage.
V[/aronker & Rosen, Inc. .i. Real Estate Appraisers & Consullants Page 46
1033
Sales Comparison Approach Land Valuation, 5860 N loy los[ fuIllmi leach, FL 33140
.
Comparable Land Sale 6
Location
6010 North Bay Road
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
21,228
Price/Sq.Ft.
$294.42
WAR No.
303620
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
$6,250,000
September 2013
28846/3885
FCI Miami Beach Two, LLC
60IO NBR, LLC
Lot 18, Block l, LAGORCE GOLF SUBDIVISION, according
to the Plat thereof, as recorded in Plat Book 14, Page 43 of the
Public Records of Miami-Dade County, Florida
02-3215-003-0170
All cash to the seller
June 2012 for $5,500,000
RS-2, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
This is an elongated lot with a depth of about 280 feet and about 75 feet of water frontage with
open views facing northwest toward Normandy Isle and North Bay Village in the distance.
Waronker & Rosen, Inc. .*. Real Estate Appraisers & Consultants Page 47
1034
Sales Comparison Approach Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Comparable Land Sale 7
Location
845 E Di Lido Drive
MiamiBeach, FL 33139
Property Type
Vacant Residential Lot
Square Feet
13,353
Price/Sq.Ft.
$426.87
WAR No.
303623
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
$5,700,000
March 2014
29077t3233
Sunrise Ventures Holdings, Inc.
Mark Lyn
Lot 27, Block 4, Dl LIDO, together with a strip of land
contiguous to the northern boundary line of Lot 27,Block 4,DI
LIDO, lying between the northerly extension of the West
boundary line of said Lot 27 and the northerly extension of the
East boundary line of Lot 27, as recorded in PIat Book 8, Page
36, of the public records of Miami-Dade County, Florida.
02-3232-011-0780Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This waterfront lot is located at the north end of Di Lido Island. It has approximately 92 feet of
water frontage and wide open bay views facing north.
All cash to the seller
April 2010 for $2,450,000
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Irregular
Grade level
yy'aronker & Rosen, Inc, .e. Real Estate Appraisers & Consultants Page 48
1035
Sales Comparison Approach Land Valuation, 586!! !!! Ro!!$romi leach, FL fiUq
Adjustment Grid
Below is a grid which illustrates qualitative adjustments used to compare the comparable sales to
the main parcel. Percentage adjustments were not utilized. In order to utilize percentage
adjustments it would be necessary to pair (compare) sales to extract value differences. This is
difficult as there is normally insufficient data to provide pairings for all value differences. Below
is a grid which illustrates the adjustments made. A plus (+) sign indicates the unit of cornparison
of the sale must be adjusted upward as that characteristic is inferior to the subject. A rninus (-)
sign indicates the unit of comparison of the sale must be adjusted downward since the
characteristic is superior to the subject. An equal (:) sign indicates the comparable sale
characteristic is similar to the subject.
SaIe
No.
Price/
Sq. Ft.
Market
Conditions Location
Water
Frontage/Views
Size/
Shape
Overall
Adjustment
I $25 I ++++
2 $611
J $271 ++++
4 $339 +++++
5 s239 +++++
6 $294 ++++
7 s427 +
After considering the individual difflerences, either a plus (+), minus (-) or equal (:) sign has
been placed in the "Overall" column. This indicates the overall adjustment that the sale would
require as cornpared to the main parcel.
ll/aronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page 49
1036
Sales Compa4lon Approach Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Conclusion of Land Value by the Sales Comparison Approach
The sales comparison approach compared similar properties to the main parcel and adjustments
were made for the pertinent characteristics. Based on these comparisons a value was estimated
forthe main parcel. Sale prices per square foot range from $239.33 to $611.03 with a mean of
$348 per square foot and a median of $294 per square foot.
Comparative analysis indicates that adjustments are required for market conditions, location,
water frontage/views, and sizelshape. No adjustment is required for conditions of sale or zoning.
Market conditions adjustments consider the improvement in overall market conditions during the
period since the oldest sale occurred. Location adjustments consider general characteristics of the
site and overall desirability of the area. Water frontage/views consider the quality and
desirability of water views, the extent of water frontage, and the ratio of water frontage to lot
size. Size/shape adjustments consider the tendency for larger lots to sell for a lower price per sq.
ft., based on the diminishing value of additional land area above a minimum threshold amount
needed to support construction of a residence suitable for the property. They also consider the
greater desirability of more square-like and rectangular shapes in comparison to highly irregular
and elongated shapes which tend to constrain design choices and raise construction costs.
The adjustments indicate that the main parcel should achieve a sale price per sq. ft. above Sales
7,3,4,5 and 6 (a range of $239 to $339), below Sale 2 at $611, and slightly below Sale 7 at
$427. Consideration was also given to the recent sale in May 2014 of the main parcel for $395
per sq. ft. A value of $400 per sq. ft. is supported by the analysis.
Also considered are the following current listings:
Current Listings of Vacant Waterfront Single-Family Sites
Address
2 INDIAN CREEK DR
4 INDIAN CREEK DR
5840 N BAY RD
5455 PINETREE DR
266 S HIBISCUS DR
28 S TARISLAND DR
1460 W 28 ST
3O8O N BAY RD
420 W 51 ST
851 N VENETIAN DR
Media n
City
lndian Creek
lndian Creek
Miami Beach
Miami Beach
Miami Beach
Miami Beach
Miami Beach
Miami Beach
Miami Beach
Miami
List Price
s26,0OO,OO0
s2s,ooo,ooo
s 1s,9oo,ooo
s 11,9oO,OOO
s11,4oO,Ooo
Slo,soo,ooo
57,499,0OO
s6,299,O00
Ss,soo,ooo
5s,3oo,ooo
s 10,eso,ooo
Lot Size
(sq.ft.)
80,000
80,000
37,895
27,860
2L,OOO
40,0o0
20,000
20,500
28,650
15,000
28,2s5
Price
per sq. ft.
s32s.oo
S312.so
S4ts.s8
5427.74
Ss42.86
s252.sO
5374.9s
5307.27
s 191.97
s3s3.33
S339.17
Waronker & Rosen, Inc, €. Real Estate Appraisers & Consultants Page 50
1037
Srttt Cr*prrttr" ep
The listings range from $192 per sq. ft. to $543 per sq. ft. with a median of $339.17. The listing
at 5840 N Bay Road is located two lots south of the main parcel, is similar in size and shape and
is listed for $419.58 per sq. ft. The listings represent the subject's main competition if it were to
be offered for sale at this tirne, and do not contradict the value indication by analysis of the
comparable sales.
Based on the analysis, the market value of the land as though vacant is estimated at $400 per sq.
ft., times 24,425 sq. ft., or $9,800,000 (rounded).
Valuation of the South Tract
The south tract is contained within the main parcel, containing 24oh of its total land area, 50Y, of
its streetfrontage and l7o/, of its water frontage, it is fairly representative of the main parcel as a
whole. As a result, no adjustment is indicated to the market value estimated for the main parcel
for the across the fence value estimate of the south tract. Therefore, based on the main parcel
market value of $400 per sg. ft., the across the fence value of the south tract is estimated at $400
tirnes 5,870 sq.ft., or $2,350,000 (rounded).
Valuation of the North Tract
The north tract is adjacent to the main parcel along its north side, and has the same amount of
street frontage as the south tract, but lacks water frontage, as it extends to a point 30 feet from
the water's edge. Anl.thing constructed on it would however beneht from water views looking
west and northwest over the 30 feet atthe northwest corner of the rnain parcel. An adjustment to
the market value estimated for the main parcel is indicated, but note that the north tract is a City-
owned parcel unlike any other parcel based on its location. Therefore, only a general comparison
to other parcels can be made.
Generally, the north tract is inferior to the main parcel because it lacks water frontage. At the
subject location, where large single-family parcels with substantial water frontage are among the
most valuable in the region, this is a significant factor. It is also superior to otherwise similar
non-waterfront parcels (including those on the east side of N Bay Road) because land on the west
side of N Bay Road benefits from proximity to the water. Based on this, an appropriate location
adjustrnent to the market value estimate for the main parcel would put the across the fence value
of the north tract somewhere well below $400 per sq. ft. but above values observed for non-
waterfront parcels. On the following page is a summary grid of several sales of non-waterfront
parcels in the area, along with two sales of single-family lots that benefit from ocean frontage but
which are disadvantaged by an undesirable shape. The summary grid is followed by detailed
descriptions of each sale.
Woronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page 5l
1038
Sales Comparison Approach Land Valuatior, 586! l',1 lg lo!!$io*i leach' FL 33140.
Vacant Land Sales Grid
Following is a grid of the cornparable sale properties used for comparison to the main parcel.
Sale
No,
Sale
Date Location SaIe Price
Sq. FL
Size
Price/
Sq. Ft.
8 April
2013
2057 N Bay Road
Miami Beach
$650,000 6,063 $107.2 r
9 December
2013
116 3rd Rivo Alto Terrace
Miami Beach
$ I ,1 60,000 7,500 s 154.67
l0 February
2013
7830 Attantic Way
Miami Beach
$ l ,025,000 6.250 $ 164.00
1l May
2014
7801 Coltins Avenue
Miami Beach
$962,500 6,s00 $ 148.0 8
12 May
z0t4
1351 S Venetian Way
Miami
$830,000 7,500 $l r0.67
13 August
2013
7833 Atlantic Way
Miami Beach
$3,200,000 r 3,000 $246.1 5
t4 July
2013
7709 Atlantic Way
Miami Beach
$3,8 75,000 13,000 s298.08
Waronker & Rosen, Inc. ,& Real Estate Appraisers & Consultqnts Page 52
1039
Sales Comparison Approach Land Valuation, S]Weach, FL 33140_
Vacant Land Sales Map
(For Analysis of I'{orth Troct)
Vl/aronker & Rosen, Inc. €. Real Estate Appraisers & Consultants Page 53
1040
Sales Comparison Approach Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Comparable Land Sale I
Location
2057 N Bay Road
MiamiBeach, FL 33140
Property Type
Vacant Residential Lot
Square Feet
6,063
Price/Sq.Ft.
$ 107.21
WAR No.
303636
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This single-family lot is locatedontheeast side ofN BayRoad, with 49 feetof frontage between
N Michigan Avenue and W 21st Street. The location is across the street from the waterfront
parcels.
$650,000
April20l3
2862s12128
Sam Kvitko
Giusi Properties, lnc.
Lot25, Block 16, SLTNSET LAKE SUBDIVISION, according
to the Plat thereof,, as recorded in Plat Book 8, Page 52 of the
Public Records of Miami-Dade County, Florida
02-3227-008-1610
Recorded deed, MLS
All cash to the seller
None in the past five years
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
Waronker & Rosen, Inc. ,1. Real Estate Appraisers & Consultunts Page 54
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Sales Comparison Approach Land Valuation, 5860 N Bay Road, Mismi Beach, FL 33140
Comparable Land Sale 9
Location
116 3rd Rivo Alto Terrace
Miami Beach, FL 33139
Property Type
Vacant Residential Lot
Square Feet
7,500
Price/Sq.Ft.
$ 154.67
WAR No.
303635
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This single-family lot is an interior parcel located on 3rd Rivo Alto Terrace, between East and
West Rivo Alto Drives, on Rivo Alto Island (one of the Venetian Islands).
$1,160,000
December 2013
289791575
Union Mexico Money Support, Inc.
Eight Venetian, Inc.
Lot2, Block 8, zuVO ALTO, according to the Plat thereof, as
recorded in Plat Book 7, Page 74 of the Public Records of
Miami-Dade County, F lorida
02-3233-001-0910
Recorded deed, MLS
All cash to the seller
February 2013 for $1,050,000
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
Vl/aronker & Rosen, Inc. €. Real Estate Apprsisers & Consultants Page 55
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Sales Comparison Apprcach Land Valuation, 5860 N Bay Road, Mismi Beach, FL 33140
Comparable Land Sale 10
Location
7830 Atlantic Way
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
6,250
Price/Sq.Ft.
$ 164.00
WAR No.
303633
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
$1,025,000
February 2013
28499/3636
Altos del Mar, Ltd.
Macanao Entertainment, LLC
Lot 3, Block 12, CORRECTED PLAT OF ALTOS DEL MAR
NO. l, according to the Plat thereof, as recorded in Plat Book
31, Page 40 of the Public Records of Miami-Dade County,
Florida
02-3202-004-0540
Recorded deed, MLS
All cash to the seller
None in the past five years
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This single-family lot is located on Atlantic Way with 50 feet of frontage between 78th and 79th
Streets, and additional frontage of 50 feet at the rear along the east side of Collins Avenue, in a
gated residential community. The location is one block from the ocean and just south of North
Shore Park.
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1043
Sales Comparison Approach Land Valuation, 5860 N Boy Rood' Miod Beach, FL 33140-
Comparable Land Sale 11
Location
7801 Collins Avenue
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
6,500
Price/Sq.Ft.
$ r48.08
WAR No.
303634
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
$962,500
May 2014
2914014116
Altos delMar, Ltd.
Henry Ahn and Raye Dube
The West 65 feet of Lots 5 and 6,
MAR, according to the Plat thereof,
31, Page 40 of the Public Records
Florida
02-3202-004-0560
Recorded deed, MLS
All cash to the seller
None in the past five years
Block 12, ALTOS DEL
as recorded in Plat Book
of Miami-Dade County,
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This is a single-family lot located at the northeast comer of Collins Avenue and 78th Street in a
gated residential community. The location is one block from the ocean.
RS-3, Single Family Residence District by the city of Miamr
Beach, FL
Rectangular
Grade level
ll/aronker & Rosen, Inc. *. Real Estate Appraisers & Consultants Page 57
1044
Sales Comparison Approach Land Valuation, 5860 N Bry Rrod'Miod Beach, FL 33!!L.
Comparable Land Sale 12
Location
1351 S Venetian Way
Miami, FL 33139
Property Type
Vacant Residential Lot
Square Feet
7,500
Price/Sq.Ft.
$110.67
WAR No.
303637
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This single-family lot is located
on San Marco Island, one of the
$830,000
May 2014
2916212924
Mario Jaile and Mercedes Jaile
Domingo Pardo, as Trustee
Lot 8, Block 7, SAN MARCO, according to the Plat thereof, as
recorded in Plat Book 9, Page 2l of the Public Records of
Miami-Dade County, F lorida
01-3232-001 -06 1 0
Recorded deed, MLS
All cash to the seller
None in the past five years
T3-R, Single Family Residence by the city of Miami, FL
Rectangular
Grade level
at the northwest comer of S Venetian Way and NE 13th Place
Venetian Islands.
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Sales Comparison Approach Land Valuation, 5860 IY l!)4!o4, M.*i leach, FL 33140:
Comparable Land Sale 13
Location
7833 Atlantic Way
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
13,000
Price/Sq.Ft.
g246.ts
WAR No.
303638
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This single-family lot is located on the east side of Atlantic Way, between 78th andT9th Streets,
with frontage of 50 feet on Atlantic Way and on the beach. The location is a gated residential
community. This is an interior parcel with a depth of 260 feet. This was a bank sale by the lender
that foreclosed on the previous owner's loan.
$3,200,000
August 2013
287831tr84
Bank of America, N.A.
Loxodonta Ventures, LLC
Lot2, Block 5, CORRECTED PLAT OF ALTOS DEL MAR,
according to the Plat thereof, as recorded in Plat Book 31, Page
40 of the Public Records of Miami-Dade County, Florida
02-3202-004-0190
Recorded deed, MLS
All cash to the seller
None in the past five years
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
Wqronker & Rosen, Inc. t Real Estate Appraisers & Consultants Page 59
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Sales Comparison Approach Land Valuation, 5860 I'{ Bay Road, Miqmi Beach, FL 31!40
Comparable Land Ssle 14
Location
7709 Atlantic Way
MiamiBeach, FL 33141
Property Type
Vacant ResidentialLot
Square Feet
13,000
Price/Sq.Ft.
$298.08
WAR No.
303639
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Description:
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This single-family lot is located on the east side of Atlantic Way, betweenTTth and 78th Streets,
in a gated residential community. It is an interior lot with frontage of 50 feet along both Atlantic
Way and the beach, and a depth of 260 feet.
$3,875,000
July 2013
28757/623
1037 Orlando, LLC
Kadey Family Beach, LP
Lot 5, Block 6, CORRECTED PLAT OF ALTOS DEL MAR,
according to the Plat thereof, as recorded in Plat Book 31, Page
40 of the Public Records of Miami-Dade County, Florida
02-3202-004-0280
Recorded deed, MLS
All cash to the seller
May 2012 for $3,500,000
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
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Sales Comparison Approach Land Valuation, 5860 N Bay Road, Miami Beach, FL j3140
-
Analysis
Sales 8, 9 and 12 are smaller non-waterfront sites that sold in the range of $107 to $155 per sq.
ft. Sales 10, I l, 13 and 14 are all located in Altos del Mar, a small single-family subdivision and
gated community located between Collins Avenue and the ocean. Sales 10 and 1 1 are smaller
non-waterfront lots with partial frontage on Collins Avenue that sold at $164 and $148 per sq. ft.,
whereas Sales l3 and l4 are larger lots with ocean frontage and views, selling for $246 and $298
per sq. ft. Note that Sale 13 at$246 per sq. ft. was a bank sale of a foreclosed property and likely
reflects distressed or liquidation sale conditions. After adjusting for this, this sale indicates a
value nearthat of Sale 14, which is identical in size and shape and has a very similar location.
Note also that Sales 13 and 14 are disadvantaged by a very narrow shape (both have a depth of
260 feet but a width of only 50 feet), which would severely constrain development and design
possibilities. It should also be noted that though these have ocean frontage, they are set back
from the beach some distance, slightly diminishing the quality of the views. The shape and view
factors help explain why these properties achieved a lower price per sq. ft. than the market value
estimated for the main parcel, in spite of the fact that they are a very scarce type of property in
the local market (single-family lots with ocean frontage).
Conclusion
The inferior non-waterfront sales ranged from $107 to $164 per sq. ft. The two waterfront sales
are at $246 and $298 per sq. ft., with the lower figure requiring a positive adjustment for
conditions of sale. The two waterfront sales are inferior to the main parcel, mainly due to severe
shape disadvantages, and achieved values per sq. ft. within the range of all but the two highest
sales considered in the main parcel valuation. The sales indicate the following ranges;
Non-waterfront sales (Sales 8 to l2)
Atlantic Way (Sales 13 &.14)
Main parcel sales (Sales I to 7)
$107 to $164 per square foot
$246 and $298 per square foot
$271 to $61 1 per square foot
The analysis indicates that a large negative adjustment to the market value estimated for the main
parcel would be appropriate. This would put the value below the range of the rnain parcel sales
(Sales I to 7), above the range of the non-waterfront sales (Sales 8 to 12), below Sale 14 (which
is severely disadvantaged by shape but which benefits from ocean frontage), and near Sale l3
(which is very similar to Sale l4 but which was also a distressed sale). Based on this, an across
the fence value of $250 per sq.ft. is indicated. At 10,215 sq. ft., this equates to a value of
$2,550,000 (rounded).
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1048
Sales Comparison Approach Land Valuqtion, 5860 N Bay Road, Miami Beach, FL 331!0.
Potential Impact on the Market Value of the Main Parcel
Based on the across the fence values estimated above, the netvalue of the proposed land swap is
$200,000 (the amount by which the value of the north tract exceeds the value of the south tract).
The reader should note that the across the fence values estimated above do not consider the
potential impact of the proposed land swap on the market value of the main parcel. In other
words, they ignore the possibility that the value of the land swap to the owner of the main parcel
may be higher or lower than the net value based on the across the fence values of the north and
south tracts. As a result of the proposed swap, the main parcel would be impacted by the
following changes:
. Water frontage would be reduced from 150 feet to 125 feet
o An enhancement of the utility of the north 30 feet of the existing water frontage as a
result of the annexation of the north tract, which would make possible better quality
views from that portion of the water frontage.
o An enhancement in the overall shape of the parcel, which is currently disadvantaged by
having a 1,647 sq. ft. semi-"orphaned" segment at the northwest end on the waterfront.
The boundary at the southeast end would become irregular, but this occurs at the street
frontage where it has much less irnpact than on the waterfront.
o The overall size of the parcel would increase from24,425 to 28,770 sq. ft.
The net impact of these changes is likely to be neutral to slightly positive, making it possible that
to the owner of the main parcel the value of the proposed land swap could be greater than the net
value based on the across the fence values. However, these factors were not considered and are
not reflected in the across the fence values estimated which are based on market value and not a
value to an adjoining owner.
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Reconciliation Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Reconciliation of Value
The reconciliation process considers the approaches which were utilized in this report. Each
approach to value is analyzed as to its reliability and applicability. These approaches indicated
the following values:
Cost Approach
lncome Capitalization Approach
Sales Comparison Approach
Main Parcel
South Tract
North Tract
Not applicable
Not applicable
$9,800,000
82,3s0,000
$2,5 50,000
The cost approach estimates the land value and adds the depreciated value of the improvements.
As the land being appraised is vacant, this approach is not applicable and was not applied herein.
The incorne capitalization approach analyzes the projected income and expenses of a property
and capitalizes the net income into a value estimate. Typically vacant land is not purchased based
on its ability to generate income. This method is not applicable and was not applied herein.
The sales comparison approach compares sales of similar properties to the main parcel and is the
only applicable approach to value. These sales were analyzed for differences such as conditions
of sale, financing, market conditions, location, zoning, shape/size, and other characteristics. The
strength of this approach relies on the quality of the comparable sales. Sales which closely
resemble and can be compared easily with the subject are most desirable. The sales utilized were
considered cornparable and make the sales comparison approach the only reliable indication of
value. It was used to estimate the market value of the main parcel, and also the adjustment
needed for the across the fence value estimate of the north tract. The across the fence value of the
south tract is equivalent to the market value per sq. ft. of the main parcel.
As the main parcel and the north and south tracts are valued as vacant land, total reliance was
placed on the sales comparison approach, Based on the analysis, the market value of the main
parcel as though vacant as of May 31,2014 is estimated at $9,800,000, the across the fence value
of the southtractas of May 31,2014 is estimated at $2,350,000, and the across the fence value
of the north tract as of May 31,2014 is estimated at $2,550,000.
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ADDENDA
RPORATED
ll'aronker & Rosen, Inc. ,i.Real Estate Appraisers & Consultants
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ADDENDUMA
COUNTY AREA DESCRIPTION
Waronker & Rosen, Inc. ,?Real Estate Appraisers & Consultants
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Miami-Dade County and Area Description
General Overview
Miami-Dade County, often referred to as "Miami" is known internationally for its weather,
beaches, banking, find art, shopping, and Latin culture. While many pass through the Cruise
Capital of the World, 2.5 million people call it home.
Miami-Dade County is at the southeastern tip of Florida and is the south-easternmost state in the
continental United States. Its land area is approximately 1,946 square miles and is bordered by
Broward, Collier, and Monroe Counties to the north, southwest, and south, respectively. The
county is bordered by the Atlantic Ocean to the East and Everglades National Park to the West.
Demographics
As of the 2013 Census report, Miami-Dade County has 2,496,435 residents. Over half of those
were born outside the United States; 70 percent fall between the ages of 25 and 55. As depicted
in the following graph, the county's population has risen steadily since 1970.
Miami-Dade County Population Projections
2015 Projection
based on 2011
Estimate
Percentage change
2011 to 2015
2020 Projection
based on 2011
Estimate
Percentage change
20ll to 2020
2,591,790 3.8%2,717,631 4.9o/o
Miami has a positive reputation for intemational business, and developers are marketing their
new projects to those individuals. Therefore, the county's population is expected to increase at an
even greater rate approaching the year 2020.
llaronker & Rosen, Inc. *Real Estate Appraisers & Consultants
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Miami is the largest city in the County. Other populous municipalities include Hialeah, Miami
Gardens, Miami Beach, and unincorporated land. Actively growing are some new cities since
2000 such as Cutler Bay and Doral.
Brief History
Miami was founded in 1866 after the end of Spanish rule in Florida. Before the tum of the
century, prominent figures such as William and Mary Brickell and Henry Flagler established a
.o*rnunity and connected the young city to the rest of the United States. Island people moved
here for work.
In 1910, John Collins discovered fresh water on Miami Beach, and within a decade, the
population soared, and businessmen bought up the land. The city quickly became a popular spot
^foi tourists, but it crumbled under the hurricane of 1926. During the decades of war, parts of
Miami-Dade County became training grounds for military. Residents then slowly built back up
the tourism industry.
The early 1960's marked the beginning of the arrival of large numbers of Cuban Refugees into
Miami-Ijade County and South Florida. In the years following, significant numbers of
immigrants have come from Haiti, Cuba and other Latin American countries.
Government
Miami-Dade County has a strong mayor form of govemment, with nine elected individuals (one
mayor and eight commissioners) making up the Miami-Dade County Board of Commissioners.
Thi mayor appoints a professional administrator to manage the daily activities of the county
government and a county attomey to handle its legal matters.
Some governmental activities, services and functions previously handled by individual
municipalities are now handled by the county. Among these are real property assessment and
valuation, health and welfare, most water and sewers, traffic engineering, public libraries, public
transportation, public housing, urban renewal, seaport, airport, regional parks and air and water
polluiion contiol. In addition to these, Miami-Dade County provides
_
services to the
unincorporated areas of the county such as: police and fire protection, building and zoning
regulatibn, trash and garbage collection and disposal, parks and recreation, consumer protection
and corrections and rehabilitation of adults and youth offenders'
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Economic Base
The primary industries that support Miami-Dade County's economy through employment are
trade, transportation and utilities, followed by education/health services and government. The
most known is tourism, a major industry for Miami-Dade County. The following chart reflects
the county's demographics by trade, with tourisrn ranking the highest number of companies,
followed by retail and finance, insurance and real estate.
Miarni-Dade County
Demographics by Trade
s0000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
r No. of Companies
Source: The Beacon Council
A year-round growing season allows the agricultural industry to be the top vegetable supplier
and producer in the country. The industry employs more than 20,000 people and produces more
than $2.7 billion in economic benefits each year. As a result, agritourism has sprouted an
industry throughout the agricultural area where visitors can sample and purchase locally grown
products.
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Transportation
Miami International Airport (MIA) and its linkages are considered to be the driving force for
growth behind its surrounding area. Airport traffic in 2013 included over 40 million passengers,
2 million tons of freight, and 2 million tons of cargo. Other airports within the county include
Kendall-Tamiami Airport and Opa-locka Executive Airport. The aviation industry directly and
indirectly contributes $26.7 billion and282,043 jobs to the local economy.
PortMiami annual activity includes 4.3 million cruise passengers and 7.4 millions of tons of
cargo. The port contributes more than $27 billion annually to the South Florida econorny and
helps provide direct and indirect employment for more than 207,000 individuals. It is currently
undergoing construction for a two-way underwater tunnel between the port and downtown
Miami. Scheduled to be completed in 2015 is the Deep Dredge Project, set to deepen the
channel from its current 4Z-foot depth to minus 50 feet in order to accommodate super cargo
ships now being constructed.
Within Miami-Dade County, major roads include the Palmetto Expressway (State Road No.
826), a major north/south expressway; the Dolphin Expressway (State Road No. 836), a major
east/west expressway; Interstate 95 and the Florida Turnpike. All of these represent Miami's
expressway network and make almost any destination in Miami-Dade County within 30 to 45
minutes driving time.
Transportation systems include a Busway in south Miami-Dade County linking to Metrorail, an
elevated rail rapid transit system connecting portions of Miami-Dade County. In July 2012, a
new Metrorail station in MIA links south Miami-Dade County, downtown Miami and the entire
elevated rail line. The enables seamless connections to the Metromover systems and to a web of
transportation arteries in neighboring counties leading to the rest of Florida.
The Miami Intermodal Center (MIC) links the airport, East/West Rai[, Amtrack, Tri-Rail,
Airport/Seaport Connector and Metrorail mainline rail. Located near the State Road No.
836/State Road I l2 Connector, it presently contains the bulk of the rental car agencies. East of
the airport in the future it will contain retail, commercial, residential and tourist-designed
development.
The Metromover automated people mover system is located in downtown Miami and is an off-
shootof the Metrorail system. There are also Metrobus buses, mostof which are in service daily
throughout the county. The Metromover system includes the Brickell Avenue financial district
and also runs north to the Omni area. Other transportation services in Miami-Dade County
include Tri-Rail, railroads and taxicabs. Railroad service by Amtrak is accessible in northwest
Miami-Dade. Tri-Rail is South Florida's commuter train system which services Miami-Dade,
Broward and Palm Beach Counties.
Education
Based upon student population, the Miami-Dade County School system is the fourth largest
public school system in the nation with 415 institutions including elementary, middle, high, K-8,
charter, alternative and magnet schools. Many private institutions exist as well.
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Several colleges and universities located in the county are University of Miami, Barry
University, Florida International University, Miami-Dade Community College, St. Thomas
University, Florida Memorial College and Johnson & Wales University.
Medical
Miami-Dade County has the largest concentration of medical facilities in Florida. The largest
institution is Jackson Memorial Medical Center, the second largest public hospital in the nation
which shares many teaching, treatment and research capacities with the University of Miami.
Private hospitals include Baptist Health System, Mercy, Miami Children's, and Mount Sinai.
Sports
Professional, college and even local neighborhood sports draw spectators, participants and
investors to a high degree and create a positive atmosphere. Professional football (Miami
Dolphins), basketball (Miami Heat), baseball (Miami Marlins) and ice hockey (Florida Panthers)
are continual draws. As of January 2014, business negotiations are currently underway to bring
Major League Soccer to Miami. There are two horse tracks and a dog track. Several of these
tracks have been approved for slot gambling or table gambling, depending upon location in a
municipality or Indian reservation. Also offered are golf, tennis, as well as the numerous water
sports, given the significant bodies of water.
Arts and Culture
Known for the wealth of ethnic diversity and heritage, Miami-Dade County has a cultural mix of
festivals, concerts, theater, and dance performances. Adrienne Arsht for the Performing Arts of
Miami-Dade County opened in 2006 and is home to the Concert Association of Florida, Florida
Grand Opera, Miami City Ballet, and the New World Symphony. The county is also home to
several museums and wildlife attractions.
Summary
During its history, Miami-Dade County and the Greater Miami area have experienced significant
changes and groMh. Trends indicate that the growth will continue with Miami-Dade County
rapidly becoming an intemational city with a diverse culture. The economic base and the
bilingual population should continue to attract new residents and businesses into Greater Miami.
Sources including, but not limited to:
United States Census Bureau (Jan. 2014). http://quickfacts.census.sov/ofdistates/12ll2086.html
Miami-Dade County Portal (ian. 20I4). www.miamidade.sov
The Beacon Council (Jan. 2014). www.beaconcouncil.com
Federal Reserve Economic Data (Jan. 2014). http://research.stlouisfed.ors/fred2l
Miami Herald (various articles). http://www.miamiherald.com/
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ADDENDUMB
LEGAL DESCRIPTION
ll/aronker & Rosen, Inc. &Real Estate Appraisers & Consultants
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Parcel A:
Lot25,in Block l-A or LA GORCE GOLF SUBDIVISION, according to the plat thereof, recorded
in Plat Book 14, at Page 43, of the Public Records of Miami-Dade County, Florida.
Parcel B:
Commence at the Northeast comer of Lot 25, Block 1-A, LA GORCE GOLF SUBDIVISION,
according to the Plat thereof recorded in Plat Book 14, at Page 43, or the Public Records of
Miami-Dade County, Florida: thence Northwesterly along the Northeasterly line ofthe aforesaid Lot
25, a distance of 193.5 feet to a point of beginning of tact of land hereinafter described; thence
Northerly 54.9 feet more or less to a point on the Southwesterly line of Tract A of Subdivision of
Latz(,Block l, LA GORCE GOLF SUBDIVISION, according to the Plat thereof recorded in Plat
Book 38, at Page 67 of the Public Records of Miarni-Dade County, Florid4 said point being 215.1
feet Northwesterly from the Southeast comer of the aforesaid Tract A; thence Northwesterly along
the Southwesterly line of aforesaid Tract A, a distance of 30 feet more or less to the water's edge
of Biscayne Bay; thence Southerly meandering the water' s edge of Biscayne 54,9 feet more or less
to point of intersection with the Northeasterly line of Lot 25, Block 1-A, LA GORCE GOLF
SLIBDIVISION, according to the PIat thereof, recorded in Plat Book 14, at Page 43, of the Public
Records of Miami-Dade County, Florida; thence Southeasterly along the Northeasterly line of
aforesaid l-at25, a distance of 30 feet more or less to the point of beginning.
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