R9L-Discuss- Vacation Of ROW At Westerly End Of West 59th St To Ambassa Holding@ MIAMIBEACH
City of Miomi Beoch, 'l 700 Convention Center Drive, Miomi Beoch, Florido 33I 39, www.miomibeochfl.gov
MMI N MEMORANDUM
TO: Mayor Philip Levine and Members
FROM: Jimmy L. Morales, City Manager
DATE: October 22,2014
SUBJECT: A DISCUSSION REGARDING A
the City rssron
FOR VACATION OF A CITY RIGHT OF
WAY, LOCATED AT THE WESTERLY END OF WEST 59TH STREET, TO AMBASSA
HOLDINGS, !NC. C/O CHRISTIAN BERDOURE, IN EXCHANGE FOR PUBLIC
ACCESS AND A UTILITY EASEMENT OVER THE SOUTHERLY PORTION OF THE
ADJACENT LOT 25 TO THE WATERS' EDGE.
BACKGROUND
West 59th Street End (located westerly of North Bay Road) is a 50-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 Plat, 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).
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 public access and a ulitity easement over the southerly portion of the adjacent Lot
25 to the waters' edge. 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;
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
Agenda ltem fl?.4 ,
oate /04?'//639
Commission Memorandu m -59th Sfreef
Page 2 of 2
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 5l7t 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.
CONCLUSION
The following is presented to the members of the City Commission for discussion and further
direction.
Attachment:
,arrfu
A. Sketch of proposed vacation.
B. West 58th and West 59th Streets appraisal
/BAM/BB
T:\AGENDA\20'14\Octobe^PUBLIC WORKS\D|scussion - West 59th Street.docx
640
Attachment * A
641
lntraduction
Attachment - B
Lqnd 9'oludtion, 5860 N Bay Rootl, Mioni Beoch, F|.33140
Losation:
Summary of Pertinent Data
Along the west side of North Bay Road, between
West 58th and West 59th Streets, Miami Beach,
Miami-Dade FL
5860 North Bay Road
Miami Beach. FI", 33154
Single-family residential land
RS-2, Single Family Residence District by the
city of Miami Beach, FL
AE (Map 12086C0309L)
24,425 sq.ft.
5,870 sq.ft.*
10,215 sq. 11.*
Not applicable
May 31 ,2014
.lune 20, 20'14
'2 Tso,oo o
l,53a,ooo
Address (main parcel):
Type of Use:
Zoning:
Flood Zone:
Land Area:
Main Parcel
South Tract
North Tract
Value by Cost Approach:
Value by lncome Capitalization Approach: Not applicable
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:
$9.800,000 ($400 per sq. ft.)
$2,350,000 (5400 per sq. ft.)
$2,550,000 ($250 per sq. ft.)
$9,800,000 ($400 per sq. ft.)
$2,350,000 ($400 per sq. ft.)
sz,sso,ooo iszso i"';;: ;;:; Irot6,@ d?rrfi
rEstimated by the appraisers based on measurements provided in draft sire plaa
Waronker & Rosen, Inc. S Real E;tate Appraisers & Consulsnts
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ir Appraisal Report
Prepared for
Mr. Bruce A. Mowry, Ph,D., P.E.
Property Appraised
Valuation for Potential Land Swap
5860 North Bay Road
Miami Beach, FL 33154
Client Bile # 024445
Date of Valuation
May 31,2014
Prepared by
Waronker & Rosen, fnc.
5730 SW 74th Sfieet, Suite 200
South Miami, Florida 33143
LEE H. WARONKER, MA[, SRA
CARLOS A, DIF,Z, APPRAISER
File # 7766
643
Waronker &Roseno Inc.
Real Estate Appraisers and Consultants
Miami-Dade County Oflice
5730 SW 74th Street, Suite 200
South Miami, Florida 33143
Broward / Palnr Beach County Office
10242 NIV 47th Street, Suire 40
Sunrise, Florida 3335 I
Lee H. waronker, I\{AI, sRA Phone : (305) 665-8890 / Fax: (305) 665-5 188 Josh L. Rosen, MAIlee@waronkerandncsen.conr www.waronkerandrosen.com josh@waronlceraqdrosen,com
June 20,2014
Mr, Bruce A. Mowry, Ph.D., P.E.
City Engineer, Public Works Departmcnt
City of MiamiBeach
1700 Convention Ctr Drive, 4th Floor
Miami Beach, FL 33139
Re:Valuation for Potential Land Swap
5860 North Bay Road
MiarniBeach, FL 33154
WRI File No.7766
Client File No. 024445
Dear Mr. Morvry:
We have prepared an appraisal report of the above referenced property for the purpose of
estimating the market value of tlie main parcel (5820 North Bay Road), the across the fence
value of the "south tract" (contained within the main parcel) and tl, e 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 estitnatc of the market value of the fee simple interest of the main parcel
as though vacant, and considers any appropriate adjushnents. The location ofthe north and south
tracts, and the terms market value, across the fence value and fee simple interest, are defined in
the pages of tliis report. This report lTas 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 otl,ers 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 5Sth 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 Beaclr, FL.
lVaronker & Rosen, Inc. & Real Estate Appraiserc & Consultants Page I
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Mr. Bruce A. Mowry, Ph.D., P.E., City Engineer
City of Miami Beach
Public Works
lune20,2014
In order to prepare the analysis, we were supplied with a draft of a site plan indicating the
looation-oflhe_main-parcel- and the norlh_and sorlh:traqtl-It-s|ould _!9__g9_ted_.th4t_the aerial
photograph in the Miami-Dade County Property Appraiscr's records indicate a parccl outline for
the main parcel (5860 North Bay Road) that does not correspond to the legal description in the
rnost 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 Miarni-Dade County records. No survey
was provided. Fol 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 lvater's edge. The north tract consists of a
City-owned parcel adjacent to the main parcel extending along the northeast property line fiom
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 owncr of the rnain parcel has proposed
to the City of Miami Beach to swap the south tract in exchange for the north tract.
TIris 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 neithet ilact (north or south) would be a buildablc
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 adjacentto the main parcelalong the north
side but lacks water frontage, an adjustment was considered in recognition of the tract's non-
waterfront location,
It .slrould be noted that this 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 parcel would 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. Tl're net impact of these factols is
likely to be neutral to slightly positive, and could potentially affect the values of the north and
south tlacts 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.
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Mr. Bruce A. Mowry, Ph,D., P.8., City Engineer
City of MiamiBeach
Public Works
June20,2014
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 FIF'TY THOUSAND DOLLARS
($2is0,000)
As a result of our investigation, the across the fence value of the north tract, as of May 3L,ZOl4,
is estimated at:
TWO MILLION FIVE IIUNDRBD FIFTY THOUSAND DOLLARS
($2J50,000)
Following the table of contents is the scope of wor[< and the ccrtification. The reader is advised
to teview the assumptions and conditions which follow the certification to understand the
linritations applicable to this appraisal.
Very truly yours,
d**vt/ ,fr^t***
Lee H. Waronker, MAI, SRA
State-Certified General Real Estate Appraiser
License No. RZl62
State-Certified General Real Estate Appraiser
License No. R23420
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Table of Contents
Title Page
Letter of Transmittal
Table of Contents
Scope of Work
Certification
_G9491a!,As_s-1r1frpt1$!_q1dl,fm,_t,tg:cql{tiolq
INTRODUCTION
Summary of Pertinent Data
Miami-Dade County Map
Plat Map
Aerial Photograph
Subject Photographs
Appraiser QuaJ ifications
DESCRIPTTON & ANALYSES
Prrrpose of the Appraisal
Client, Intended User and Use of the Appraisal
Definition of Across the Fence Value
Definition of Real Property Interest Appraised
Definition of Market Value
Location and Address
I-egal Description
Orvner of Record
History of the Subject Property
Site Data
Zoning
Flood Zone
Real Estate Assesstnent and Taxes
Desuiption of the Site Improvements
Neighborhood Overview
Supply and Demand
Exposure'lime
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
Addendurn B - Legal Description
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Scope of Work
The nppnaisal problem herein is to estimst* the yalue af ths south tract *nd tho n*rth trsct. The
methodology used is to estimate the scross the fenc* value of eaeh trect based on the market
value *f the fee simple interesl in the main parcel land os though vacant. The market value
estimale empl*ys tlte sotcs compariso* npproach to estimate market value nf thp rnain parcel
basEd on nnaly*is of comparuble sales. For the &eross the fenc* \,&lue sslimatc of the south tmct,
no *djuxunent to ths market value indication of the mnin parrel ix inqlisated because the south
lracl is'-o6illained*rvithin the main parcel and-is-representative"of*the"main parcel because it
csnt&in$ btth suwt frotrtage and water frontege. For the &Eross the fenee value estim*te of the
nurth tracl, an a{iustmrnt is required far lo*a1i*n becausn t}re nox"th traet lacks *ater frontage. ln
order to estimate the magnitude sf this adjustrnent, additional sales of rvaterfront snd nnn,
rvatsrfront sites ra,ere considernd irr the a.nalysis,
All appraisals begin hy idcnti$ing th* apprai*ol prublem. Data on thn subject property cnn be
dErived frorn various sourses including but not limited tu, the property own€r, the county
propcrty nppr*irer's oilie*, recr:r'cl*d platr and surve)'s. lVhen possibteo rnor* thar: on* sourc* is
utiiized t0 co*firm daJa and the data sources are acknowledged. Land size is bared on surve),s
(when available), public records atd recorded plats. Land measurcmenk are nct per{ormect.
Valued herein is vacant l*nd lvhieh csn be valued by the tollowing methads:
l, Salss ComBxri.sun Appruach
?. ?vlarket Extrscti*n
3, Allocatiqn
4. L.flnd l{,esidual
5. 0round Rent Capitnlizntion
$. SubdivisionA,nalysi*
Thc sales comparison approach wa* us$d her:ein and was cqnsidered ths mr*t *ppliceble m*$sd
in thc yalustion sf ths main par*el" A reareh was perfrrmecl far ilre sale of pr*perties consitiered
comparable lo the subject properly" Research of compamble sales and market data include, but is
nnt limited tr uri*g t*e f*llcirying d*ta saurecs:
CoStsr
lmapp
Nelvspnper elipping*
Iloard of llealtorn' Multipl* I-isting Eerviee
Tri Cnung Clipping* Servir*s {FRf;Ul)
i$ationel Nitultiple tisling $srviue
l-oopneX.carn
Comparable s*l*s ar* insp**ted and the transaction*l information is reported. Sale prices are
from puhlic records and ars rypically confinned with a party to thc transaetion, i.s, buyer, scller,
rsol estate ageilt, or clnsing ettomsy, All information is anal;zed in processing the appraisol
report *nd ar supporl for the estimaled vulue. The scopc of work for this assignnrent has been
described nbnve and is to bn typicul for an assignment of the nature *f t]:e subjert appraisal
problem.
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Certification
The undersigned does hereby certify that, to the best of my knowledge and belief:
l. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are liniited only by reported
unbiasedassumptions and limiting conditions and are my personal, impartial,
the
and
paofessional_analy-es;upih-ion's;fr dcdif clUsiorrs:--
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 repod or to the parties
involved with this assigrunent.
5. My engagement in this assigrurent was not contingent upon developing or reporting
predetermined results.
6, My cornpensation for completing this assignment is not contingent upon the development
or reporting of a predetermined value or direction in value tl,at favors the cause bf tne
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 tenns 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 pcrson signing this
certification.
11. The use ol'this report is subjectto 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 subcomlnittee of the Florida
Real Estate Commission.
12. As of the date of this report Lee H. Waronker, MAI, SRA, has completed
education progratn of tl,e Appraisal lnstitute.
the continuing
13. I, Lee H, Waronker, MAI, SRA, have made a personal inspection of the property that is
the subject of this report.
14. I, Carlos Diezhave made a personal inspection of the property that is the subject of this
report.
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Acknowledgement is givcn to Josh L. Rosen, MAI, in the revicw of this report.
Neither the undersigned, nor Waronker & Rosen, Inc. have performed any valuation or
professional services involving the subject properly in any capacity, nor have we been
involved with the management, Ieasing, disposition, nor any similar service regarding the
subject property in the past three years,
Lee H. Waronker, MAI, SRA
State-Certified General Real Estate Appraiser
LicenseNo. M162
Date of Report lune 20^ 2014
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General Assumptions and Limiting Conditions
This appraisal report has been made with the following gencral assumptions:
L No responsibility is assumed for the legal description or for matlers pertaining to legal or
title considerations. Title to the proporty is assumed to be good and marketable unless
otherwise stated.
-Il: n'."ry'tY i: =lgl,-':1otherwlse stated.
free and clear of any or all liens or encumbrances unless2.
- _-{-.__!
Responsible ownership and competent property management are assumed.
The information furnished by others is believed to be reliable but, no warranty is given
for its accuracy.
All cngineering studies are assumed to be comect. Any plot plans or illustrative material
in this report are included only to help tbe reader visualize the property.
It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such
conditions or for obtaining the engineering that may be required to discover them. The
values estimated herein are subject to typical inspections such as roof, structural, and
terrnite, if applicable.
It is assun,ed that the property is in full cornpliance with all applicable federal, state and
local environmental regulations and laws unless the lack of compliance is stated,
described and considered in the appraisal.
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.
It is assumed that atl 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.
It is assumed that the use of the land and improvements is confined within the boundaries
or property lines ofthe property described and considered in the appraisal.
Unless otherwiso statcd in this report, the existence of hazardous materials, which may 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. Thc presences of substances such as
asbestos, ureaformaldehyde foam insulation or other potentially hazardous materials may
affect the value of the property. Tlte value estirnated 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. Tlre intended user is urged to retain an expert in
this field, if desired.
J.
4.
5.
6.
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9.
10.
11.
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12. The physical condition of the irnprovements, 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.
l3' Neither all nor any part of this appraisal report shall be disseminated to the general public
using the appraiser's name or appraisal designatiou, rvithout prior written consent of the
appraisers signing this appraisal report.
14. Authorization is not allowed for the out-of-context quoting from, or partial rrprinting of
- this applaiqal repo(._ __- __ _ _ _
By reason of the report, there is no requirement to testify with reference to the property
herein appraised, nnless arrangements have been prcviously 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:
l. The allocation of total value between land and improvements applies only under the
dcscribed utilization. The separate valuations for land and improvcments 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 anatysis of this property to
determine 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
conlpliance 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 estinlating
the value ofthe property.
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FL 33140
Location:
Summary of Pertinent Data
Along the west side of North Bay Road, between
West 58th and West 59th Streets, Miami Beach,
Miami-Dade FL
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:
5860 North Bay Road
MiamiBeach, FL 33154
S ingle-family residential land
RS-2, Single Family Residence District by the
city of MiamiBcach, FL
AE (Map 12086C0309L)
24,425 sq. ft.
5,870 sq.ft.*
10,215 sq.ft.*
Not applicable
Not applicable
$9,800,000 ($400 per sq. ft.)
S2,350,000 ($400 per sq. ft.)
$2,550,000 ($250 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
June20,2074
*Estimated by the appraisers based on measurenlents provided in draft site plan
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Inlrodactlon Land Volaalion, 5860 N Bay Rotrd, Miaml Beach, FL 33140
Miami-Dade County Map
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Miumi Beach, I?L 33140
PIat Map
Note: the yellow outline denotes the boundaries of the main parcel
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Inlroduclion Land Valuation*1860 N Bay Road, Miomi Beach, FL 33t40
Draft Site PIan
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Irii
Introduction Land Valuatiorlr5S60 N Bay Road, lliami Beach, FL 3j140
Legend:
a
o
a
a
Aerial Photograph
Yellow dashed line denotes current boundary of rnain parce [(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 denotcs modified boundary of main parcel after the proposed land
swap
llraronker & Rosen, Inc. & Real EstateAppraisers & Consultants Page I5
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Introduclion Land Valuatiott, 5860 N Bay Road, Miami Beach, FL 33140
Subject Photographs
View of main parcel looking southwest fi'om curent lor,ation of driveway
at east end ofnorth tract
View looking northwest from samc location as above, down the length of the north tract
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Road, Miami Beoch, FL 33140
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Zoomed-in view of west end of north tract,
looking northrvest 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 viel: North Bay Road looking south
(main parcelon right)
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Inlroduction
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
Land Valuation, 5860 N Miand Beach, FL 33140
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Inlroduction Land Valuation, 5860 N Bay Road, Miaui Beach, FL 33140
Appraiser Q ualifications
LEE H. WARONKER, MAIO SRA
li1:Education: Master of Science in i\tlanagement, School of Business and Organizational
-Science, Florida-International Universityt 1981 (Major - Real Estate)
Bachelor of Science Degreeo 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 arvarded by the Appraisal [nstitute in 1981.
State Cerlified General Appraiser, State of F'lorida, Licensc Number Ft2762,
May 1990.
Registered Real Estate Brokcr, State of Florida, License #BK0l 52877 (1978)
Experience: Appraised various types of properties, including:
Industrial Buildings Rcstaurants Warehouses
Office Buildings Hotels and Motels Hospitals
Service Stations Retail Stores Marinas
Churches & Synagogues U,S. Post Offices Historical Buildings
Residences Condominiums SpecialPurpose Properties
President, lYaronker & Rosen,fttc, (formerly Waronker & Associates, Inc.)
lvliami, F'lorida, 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 Institute. Taught Courses lA-1, 1A-2,8-2, IB-A, 1B-B, 1lO, l2O,
210, 370, 320, 410, 420, 430, 5 I 0, 550, 600, 6 1 0 and 620, et al
Author: Seminars entitled "Dynamics of Ofice Building Valuation", "lVhy the
Capitalization Rate is Always 10" and the "Appraisal of Real Estate 10'h vs.
l lit' Edition". '
Othcr.' Special Master for the Dade County Valuation Adjustmcnt Board, 1989 to
l996.Assisted in the editing of The Appraisal of Real Estate, t l'h Eclition and
13th Eclition.
President of the Miami Chapter of the Appraisal Institute , 1990 to 1991.
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Introduction Land Valuqlion, 5860 N Bay Road, Miami Beach, IL 33140
!
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Appraiser Qualifi cations
CARLOS A.DIEZ
Education: University of Florida (Gainesville, FL)
- -Bachelor. of Arts. Major:-Economics-- .- -
Stevens Institute of Technology (tloboken, NJ)
Substantial progress towards the degree of Master of Engineering
Affiliations: State-certified general real estate appraiser, State of Florida,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 centersHotels Free-standing retail properties
Industrial properties Apartment buildings
ResidentialandCommercialCondominiums CondominiurnUnits
Land leases (leased fee and leasehold interests) Fractured Condominiurn Interests
Easements (including aerial and sub-surface) Special Purpose Properties
Appraisal, Investment Analysis and General lteal Estate Education:
The Appraisal Institute
100, 101: Basic Appraisal Principles and Pt'ocedures202: ResidenlialSalesComparisonandlncomeApproaches300: Real Estate Finance, Statistics and Valuation Modeling400: General itlarket Analysis and Higltest & Best Use402: General Appraiser Site Valuation and Cosl Approach
403,404: General Appraiser Income Approach (Parts I and 2)405: General Appraiser Report Writing and Case Studies420: Business Praclices and Ethics
510: AdvancedlncomeCapitalization550: AdtancedAppllcations
530: rldvanced Sales Contparison and Cost Approachet
Seminar: Hotel Appraising - New Techniques /or Todoy's Uncertain Times500: Advanced Markel Analysis and Highest & Best Use833: Fundamentals oJSaparating Real Property, Personol Properly, ond Intangible Basiness Assets
Seminar: Ma&elabili! Sludies: AdvancedConsiderations cndApplications
CCIM Institute
CI 101: Financial Analysisfor Commercial lhveslhent Real Estale
CI 102: lularket Analysis jor Commercial Investment Real Estate
CI 103: User DecisionAnalysisfor Comntercial Investmenl Real Estate
CI I 04: Inveslment Analysis for Commercial Investment Real Eslote
FANSC: Feasibility Analysis for Retail Prcperlies
MIMKr Advanced Market Analysis.for Commercial Real Estate
Baluch College (CLNY) / Steven L. Newman Real Estate Institute
NCP2000: Urban Land Economics
NCP9000: Real Estate Development
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Land Valuation, 5860 N Road, Miami Beach, FL 33140
Partial Client List
LENDERS TD Bank, N.A.
Totalbank
U.S. Century Bank
Wells Fargo Bark
Wcstern Bank- Pucrto Rico-Zions First National Bank
LIFE INSURA\CE CONIPANIES
GOVERNMtrNT AGENCIES
l" United Bank
Amerasia Bank
Apollo Bank
BAC ]lark
BNY Mellon Bank '- ' - - '
BankUnited
Bank of Arnerica
Bank of Cotol Gables
Bank Ieumi
Branch Barking and Trust (BB&T)
tsridgelnvest, LLC
Broward Bat* of Commerce
C1 Bark
CNIL Bank
Capital Bank
Cigna [nvestmerrts, Inc.
Citibank and Citicorp
City National Bank olFlorida
Coconut Grove Bank
Comerica Bank
Credit Suisse l'irst Boston Mortgage
Capital, LLC
Enterprise Banl< of Florida
lspirito Santo Bank of trlorida
Il,xecutive National Bank
I?ifth Third Bank
First Bank of Miami
First National Bark of South Miami
FilstBank Florida
Florida Community Bank
Gibraltar Private Bank and Trust
Great Florida Bank
HSBC Bank, N.A.
Holliday Fenoglio Forvler, LP
International Finance Bank
Israel Discount Bank ofNew York
JP Morgan Chase Bank
Lloyds ftit'1. Bank (Lloyds of
London)
Lutheran Brotherhood
Marquis Bank
Morgan Stanley Mortgage Capital
Northcrn Trust Bank
Ocean llar:k
OptimumBank
Popular Comrnunity Bank
Professional Bank
Regions Bank
Sabadell United tsank
Space Coast Credit Uniorr
SunTrust Bank
Tenabank, N.A.
Broward County Sclrool Board
Broward County Pr.rblic Works Dept.
City of Coral Gables
City of Miarni Beach
Cityof Miami Ceneral Services
Administration
Fedcral Deposit Insurance Corp. (FDIC)
Federal Home Loan Mortgage Corp.
(FHLMC)
Florida Dept. of Environmental
Plotection
Florida Department of 'Iransportation
Florida Keys Aqueduct Authority
Miarni-Dade \\/ater and Server
Authority
Miami-Dade Co. -Aviation Authority
Miami-Dade Co. - County Attorney's
Office
Mianri-Dade Co. - Gcneral Serv. Admin,
Miarni-Dade Co. . Housing & Urban Dev.
Ir{iami.Dade Co. - Public Worlcs Dept.
Miami-Dade Co, - School Board
M iarni Parking Authority
Nature Conservancy, Florida Chapter
South Florida Water Managemeut Dishict
United States Department of Justice
United States General Serr,. Admin.
Unitcd States Postal Services
Villagc of Pinecrcst
LAW FIRMS
Allstate Insurance Corrpany
American General Li[e Insurance Co.
Equitrust Life Insurance Co.
Fortis Capital Corp. & Life Insuranc<,
Company
lranklin Life Itsurance Company
General American Life lnsurance Co.
Independent Ordel of I, oresters
John Atden Life Insurance Courpany
Kansas City Lile Insulance Conrpanl'
Lumbernran's Life Insurance Company
Omaha Woodnron Life Ins. Society
Standard Life Insurance Conrpany
State Farm Insurance Conrpany
Sun Life Insurauce Co. of Anrerica
CORPORATIONS
Church ofJesus Christ ofthe
Latter-Day Saints
Florida Power and Liglrt Cbrp. (FPL)
JC Penny Corporation
The Wendy's Company
Chevron U.S.A., Inc.
Johnson and Johnson Cornpany
DEVELOPtrRS AND INVESTORS
Akerman, Senterfitt & Eidson
Amstein & Lehr, LLP
Barlanco & Assooiates, P,A,
Berger Singerman
Berman, WolG Rennart Vogel &
Mandler, P.A.
Callton Fields
Colson Hicks Eidson, P,A.
Greenberg Traurig, P.A.
Holland & I(night
Kilkpauick and Lockhart
I(utner and Associates
Richman Greer
Shutts & Bowen, LLP
Stearns, Weaver, Miller, Weissler,
Alhadeff & Sitterson, P.A,
Steel Hector and Davis
Tabas, Freedman, Soloff, Brotvn &
Rigali, P.A
Tripp Scott
Weiss Serota Hellman Pastoriza Cole &
Boniskc. P.A.
BerkowiE Deve lopment Group
Btistol Gloup, Inc.
Franklin Street Properties
Flagler Development Corporation
Goldman Pnrpertics
I{ampshire Real Estate Companies
Lcnnar Corporation
MDM Dcvclopment, Inc.
Napolitano Rcalty and Flarnap Corp.
Noblc House Rcsorts and Hotcls
Occan Propertics, Ltd.
Panther Real Estate
PLC Investments, LLC
R.K, Associate^s, Inc,
'lhe Scott Robins Companies
Wometco Entelprises, Inc.
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Introduction Laild Valualion,5860 N Bay Road, Miami Beach, FL 33140
Notable Properties Appraised
Miami-Dade County
Miami Seaquarium Virginia Key Miami Free Zone - Global Trade Cnt
Miami Internatioual Airport Miarni Metropolitan Hospital of Miami
City of_Miapi Qorrecjiona.llacility , Miqmi- __ Spimaker Marina
Counhy Club of Miami Golf Course Miami Virginia Key & Rickenbaiker l{arinas
Mel Reese CollCourse Miami Waterways Yacht Basin
lJurger King l-Ieadquarterc - Waterford Ivliami Porto Vita Club a:rd Spa
Doctors Hospital Coral Gables Ocean Steps Dntertainment Conter
Beacon Centre Development Mianri Indian Creek Counhy Club
FBI Headquarters Miami BIV Tower
Gablcs Watcrway Executive Center Coral Gables Courthouse Tower
Joe's Stone Crab restaurant Miarni Beach South Shore Hospital
Doral Ocealr Beach Resort (forrnerly) Miami Beach SouthCorn Hoadquarters
Metro-Dade Bus Facility Miami
Fort L auder daldB r o w ard Co unty
Florida Medical Ccnter (I lospital)
Jackson lvfarine Ccnter
Las Olas Centre Office Ruilding
Martha's Restaurant
Various Luxury Sitrgle Family [Iomcs
Seneca lndustrial Park
Mo nr o e Co unty /F I o rida K e7,s
lr4arriott Key Largo Bay Beach Resort
Islander Resort
Hawk's Cay Resor! Matina and DRI
We.stin, fomrerly Hijton Reson and Sunset Key Island
Little Palm Island
Louis' Backyard Rcstaurant
Ocean Key Rcsort
Sloppy Joe's Bar
Truman Annex - Navy Basc
Olher Floyida Counlies
Jupiter Beach Resort
La Playa Beach Resort
Shelaton Four Points
Spring Hill Suites
Ililton Calillon Park
Outside of the United Stiles
Various Single Family Honres
Single Farnily Home
Sapphire Beach Resort
Hotel Site
Montego Beach Resort
Botany Bay Subdivision (400 acres)
Ocean Club Resort
Land lease under Ritr Carlton
Various Land Flotdings
Vacant Land
Buccaneer HoteI and GolfCourse
Miami
Miami
North Miami
Key Biscayn<!
Mianri
Ar.entura
S. Miar:ri Beach
Indian Crcek
Miami
Miarni
Miami Beach
Miami
Ft. Laudsrdalc
Ft. Lauderdalc
Ft. Laudcrdale
Hollyr,,'ood
Fort Lauderdale
Peurbrclrc Palk
Key Largo
Islamorada
Duck Key
Key West
Littlo Torch Key
Key West
Key West
Key West
Kcy West
Jupiter, Palm Beach County
Naples, Collier Couuty
Orlando, Oraage County
'fampa, Hillsborough County
St. Petersburg, Pinellas County
Cat Cay, Bahamas
Casa dc Campo, Dominican Republic
St. Thomas, U.S. Virgir Islands
Grand Turks and Caicos Islonds
Montego Bay, Januica
St. Thomas, U.S. Virgin Islands
Grand Turks and Caicos Islands
San Juan, Puerto Rim
St. Croix, U.S. Virgin Islands
West End, Grand Bahana Island
St. Croix, U.S, Virgin Islands
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Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140Dttrrtptbr A,ArrU
DESCRIPTION &
ANALYSES
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Purpose of the Appraisal
The purpose of this appraisal is to estimate the across the fence value of the fee simple interest in
thc 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 terrn market value is
defined on the following pagc. - -
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
intcnded users arc 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:[n 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.'
Definition of Real Property Interest Appraised
The real propcrty intcrest appraiscd 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 subjectto the limitations of eminent domain, escheat, police power and taxation. An
inheritable estate.
I The Dictionaty of Real Estate Apprdisal, 5th ed., p. 3
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Drt"rtpttrr & ArrU
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Definition of Market Value
I , Market Value is the major focus of most real property appraisal assignments. Both economic and
Iegal definitions of market value have been developed and refined. t Th" Uniform Standards of
Professional Appraisal Practice (USPAP) states Market Value is "a type of value, stated as an i
| ' opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such i
rights); as of a-certain date,-under speoific eonditions set-forth in the definition of the term j
i identified by the appraiser as applicabie in the appraisal".2 This requires the appraiser to identify i
I the defrnition of market value and its authority. The definition that follows is the basis of the I
:
valuationinthisappraisalandthesourceistheFederalRegister.
i "For exampte, the following definition of Market Value is used by agencies tlrat regulat.
]i f€derally insured financial institutions in the U.S.: i
Market Value is defined as "the rnost probable price which a property should bling in a
competitive and open market under all conditions requisite to a fair sale, the buyer and
seller each acting prudently, knowledgeably and assuming tlre price is not affected by
undue stimulus.lmplicit in this definition is the consummation of a sale as of a specified
date and tlre 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 hcr own best intercst;
. 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 soid unaffectcd 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
governmental agencies;
' Title XI of thc Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of
1989
. Department of the Treasury
. The Federal Reserve System (FRS)
. Federal Deposit lnsurance Corporation (FDIC)
. Office of Thrift Supervision (OTS)
. Office of Comptroller of the Currency (OCC)
1^ Appraisal of Real Estate, l4'h Edition, page 58
' USPAP 2014-2015, page U-33 Appraisal of Real Estate,l4tr'Edition, page 55
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Description & Analyses Lantl Valuatiotr, 5860 N Bay Road, Miaml Beach, FL 33140
Location and Address
The main parcel, south tract and north tracts are located along
between West 58th and West 59th Streets, Miami Beach, FL.
Address (fuaii parcil)i - 5860 North BayRodd
Miami Beach, FL 33154
the wcst side of North Bay Road,
copy reproduced from the most recent
legal description was provided for either
Source : www,ntiamidade. gov
History of the Subject Property
The main parcel was last sold on May 6,2014 fbr $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
Legal Description
The legal description of the main tract is lengthy. A
recolded deed is shown in Addendum B. No separate
the south tract or the north tract.
Source : www.miantidade. gov
Owner of Record
(main parcel)
Ambassa Holdings, Inc.
c/o Christian De Berdourare
10800 Biscayne Boulevard, Suite 820
North Miami, FL 33161
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Description & Analyses Land Yalualion, 5860 N Boy Road, Miarnl Beach, FL 33140
Site Data
The main parcel is irregular in shape. No suwey was provided. Based on the legal description in
the most recent recorded deed and the recordcd plat, the appraisers estimate that there is street
frontage of approximately 101 feet along the west side of North Bay Road, and water frontage of
approximately 150 feet'sn 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:
Telepl'rone:
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 perimeter of the
main tract and has an irregular shape, with frontage of 50 feet along the west side of North Bay
Road and water fi'ontage of 25 feet on Biscayne Bay. The noftlr 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 fiontage of 50 feet along the west sidc of North Bay Road (with no
waLer frontagc).
Zoning
The main tract is zoned RS-2, Single Family Residence District by the city of Miarni Beach, FL.
For a detailcd listing of allowable uses and restrictions, rcfer to the zoning codc 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 from detailed
hydraulic analyscs, 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 clevation certificatc, as welt
as its impact on insurance.
So urce : www. inter/lo od. com
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Descriplion & Analyses Land Valaatiott,5860 N Bay Road, Miami Beoch, I'L 33140
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Real Estate Assessment and Taxes
TaxingAuthority: Miami-DadeCounty
Assessment Year: 2013
Millage Rate: 20.3368
FolioNuniber: 02-3215-003-0220(rnaintract)
The following is a sunrmary of the assessment:
*This is the size per the lv{iami-Dade County Property Appraiser's records.
The real estate taxes are estimated as follows:
TAX CALCULATION TAXES PER SQ.FT.
Millage Rate (Millage Rate -1,000)0.0203368
Times Total Assessed Value x$6,653,552 $ I,051,78
Estirnated ReaI Estate Taxes $r 3s,312 $2 1.39
There is a 4%o discount given for early (i.{ovember) payment of taxes which would reduce the
estimated real estate taKes to $129,900, ($135,312 minus 4%),
Florida Statutes require assessrnents to be at 100% ofjust value (market value) with an allowable
adjustrnent 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%o. Based upon the marl<et value estimated herein the
assessment is below what is appropriate.
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TAX ASSESSiVIENT
ANALYSIS
TOTAL
ASSESSNIENT
sQ.n'r.
SIZE*
ASSESSMENT
PER SQ.rrf.
Assesscd Land Vah,re $5,949,548 24,425 $243.s8
Assessed Value of Improvements 701,004 6,326 $111.29
Total Assessed Value $6,653,5 52 6,326 $ 1,05 l.78
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Descriplion & Anolyses Land Valuation, 5860 N Bay Road, llliami Beach, FL 33140
Description of the Site Improvements
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 residenco,
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Descriplion & Analyses Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
General Neighborhood Data
Location; Suburban
Built Up: 8}ohto 90%o
Growth Rate: Stable
Property Values: Increasing
Demand/Supply: In balance
Prcsent Land Use: Residential
Change in Present Land Use: Not likely
Prcdominant Use: Residential
Property Compatibility: Very good
General Appearance of Properties: Very good
Appeal to Market: Vcry good
Adjacent Uses
East:
Wcst:
South:
North:
Linkages
Public Transportation;
Employrncnt Centers:
Expressway Access:
Miami International Airport:
Neighborhood Overview
Distance
Within a few blocks
Three to five miles
Five to scven miles
Ten to fifteen miles
Single family residential (across the street)
Biscayne Bay
Single family residential
Single farnily rcsidential
Access
Very good
Good
Average
Average
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D^rrtplbr A Ar-lyg
Supply and Demand
Market conditions for residential real estate in Miami-Dade County have shown substantial
improvement since the shatp 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-farnily parcels on the warerfront is currently very strong, and due
to the relative scarcity of vacant $'aterfront land rnany of the most recent sales have been of
parcels improved with single-farnily 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 scalter plot shown on the following page is based on data from the MLS for sales of single-
family waterfront (ocean, bay or Intracoastal Waterway) residcntial lots since Junc l, 2012 rvith
sales prices of $5,000,000 and above. The horizontal axis is the number of months elapsed since
the salc 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 approaclr, among others. The improved
series is believed to include some (though an unknown number of) properlies 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 betrveen the trend lines is attributed to the fact that most of the sales in the
irnproved series rvere purchased with improvements that had value above the Iand lalue.
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 t\,vo years. For example, the slopes of the trend lines represent
percentage increases of l6Yo per year for the "improved" series and 31,%6 per year for the
"vacant" series, based on the trend line values at time period 0 (the valuation date). These levels
are well abovc 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 conciusion
that demand for vacant waterfront sites above $5,000,000 suitable for construction of new ultra-
luxury residences is currently very strong. This also helps explain the increasing number of sales
of improved sites in which the buyer intends to demolisl'r instead of occupy or renovate the
existing structure.
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Descriplion & Ana$sa Land Valuation, 5860 N Bay Roud, Mlami Beach, FL 33140
c
o
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o
s1,0s0
s990
S8so
STso
$6so
S5so
s4so
S3so
S 2so
S1 so
ss0
Sales of Waterfront Single-Family Lots
Miami^Dode County / Sole Price $5 Million +
x
. x-
x
XX
X,
x. x xXXaXXxx""'"x3fx x xX a* xx x x x xx., .-l tx#*
",]firr,r.t 'sr
t
axtrx
252015105-1
Months Ago
Source: MLS x lrnproved a Vacant
Note: red marker indicates most recent sqle of rnain 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 bc very strong and there would
likely be an abundance ofpotential buyers.
ll/aronker & Rosen, Inc ,i. Real Eslale Appralsars & Consultants Page 32
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Descripliott & Analyses Lond Valuation, 5860 N Boy Road, Miami Beach, FL 33140
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 consummation of a sale at market value
on the effective date of the appraisal. Exposure tirne is a retrospective opinion based on an
analysis of past events assuming a competitive and open market"r,
This analysis considers the exposure time at a market related price such as tlre estimated rnarket
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 lvas
250, based on a sample of 11 sales. Lower priced waterfront lots tended to sell in less timc. 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 properly would have been properly marketed and priced. If the property were not to have
been priced correctly or marketed through proper channels, then it is not likely that neither the
estimated market value nor the estirnated exposure time rvould have been achieved,
' Uniform Staudards ofProfessional Appraisal Practice (USPIP) 2014-2015 Edition, Page IJ-3
ll/aronker & Rosen, Inc €, Real Estate Appt'aisers & Con.sultants Page 33
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Description & Analyses Land Valuation, 5860 N Bay Rond, Miaml Beoch, FL j3140
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 timo it might take to sell a real or personal properly
interest at the concluded market value level during the period immediately after the effective date
of an appraisal, The rnain 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 markcting time is estirnated at six to nine months, This assurnes that the property is properly
marketed and priced correctly. trI
Typical Purchaser of the Subject
Tlre main parcel is a large waterfront residential lot. There is significant dernand for such
properlies in Miarni Bcach, and a rclativc 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.
ttl Tlte Dictionary of Real Estate Appraisal,5th edition, pagc 121
Vf/aronker & Rosen, Inc, & Reol Estate Approisers & Consaltants Page 34
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Ducription & Anolysa Land Valaation, 5860 N Bay Rood, Miami Beach, FL 33140
Highest and Best Use
The site is valued for its highest and bost use, which may be defined as follows:
That 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 permitted on the subject site with
respcct to zoning ordinances and deed restrictions?
2. Physically Possihle. What uses of those legally allowed are physically possible
on the subject site?
3. Financiatly Feasible. Of those uses determined to be physically possible and
legally permissible, which ones will produce a positive return?
4. N{aximally Productive. Of those that are feasible, Iegally permissible, and
physically possible, which will produce the highest rate of return or value?
As Vacant
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 strcngthen 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.
ll'aronker & Rosen, Inc, tt Real Estate Appraisers & Consultants Page 35
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ri
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Description & Analyses Land Valuation, 5860 N Bay Road, Miami Beach, FL 3i140
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 estirnates of value for nerv construction.
This approach entails estirnating 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 entreprcneurial
incentive is added to arive at the estirnated value by the cost approach.
The income capitalization approach is based on tho concept that value is created by the
expectations of future benefits and higher earnings should result in higher values. lncome
producing real estate is purchased for the right to receive future income. The income
capitalization approach consists of rnethods to analyze a propefty's capacity to generate income,
and a reversion, and conveft these monetary benefits into an estimate of value.
The sales comparison approach is based on the principle of substitution which suggests that,
within conrpetitive 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 finalsteps 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 revicwed 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 ofvalue.
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 & Ilosen, Inc, * Real Estate Appraisers & Consuilants Page 36
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Cosl Approach Land Valuatlott, 5860 N Bay Road, Miami 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. Estirnate the value ofthe land as though vacant and available to be developed to its highest and
best use.
2. Determine which cost basis is most appiicable 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 frorn 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 improvemcnts.
6, Estimate the atnount of depreciation in the structure and, if necessary, allocate it among the three
major categories: physical deterioration, functional obsolescence, and external obsolescence.
1. Deduct the estimated depreciation from the total cost of the improvements to derive an estirnate
of their depreciated cost.
8. Estimate the contributory value ofany site improvenrents that have not already been considered,
(Site improvelnents are often appraised attheir 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
ofthe property.
10. Adjust for personal property (e.g., furniture, fixtures, and equipment) or intangible assets that are
included in the appraisal.
11. 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 lppraisal ofReal Estate, i4th Edition, 2013, Pages 568 and 569
lVaronker & Rosen, Inc, .? Real Estale Appraisers & Consullants Page j7
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iri;
Income Copilolizotion Approach Lond Voluotiott, 5860 N llolt Rood, Miomi Beach, FL 33140
Income Capitalization Approach
Income producing real estate is typically purchased as an investment, and from an investor's
point of vierv eaming powsr is tl,e critical element affecting property value. One basic
investment premise holds that the higher the earnings, the higher value, provided the amount of
the risk rcmains 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 and reversion) and convert these benefits into an indication ofpresent 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 principlc of
anticipation is fundamintal to the approach.2
An inconre capitalization approach was not applied as it was not w,ithin tlre scope of this
appraisal. Since this approach is typically not considered by purchasers ofthis property type, not
using it does not limit the reliability of the value estimated hcrein.
I Appraisal of Reat Estate, l4'l'Edition,2013, Page 439
' rbid.,439
ll/aronker & Rosen, Inc. ,1. Real Eslote Appraisers & Consultants Page 38
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Sales Conqarison Approach Land Vqluation, 5860 N Bay Road, Miami Beach, FL 33140
Sales Comparison Approach
The sales comparison approach is based on the principle of substitution, The principle of
subslitution holds thot 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
arnount 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 subrnitted). 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 nathematical techniques. Sales are adjustcd to
the main parcel on a dollar or a percentage basis. One method of supporting adjustments is
through paired data analy,sis. 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 subjeot are given a minus (-) adjustment.
Those characterislics of the sales considered inferior to the subject are given a plus (+)
adjustment. Each sale is given an ovcrall 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 14'h Edition, 2013, page 379
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Sales Comparison Approoch Land Valuation, 5860 N Bay Roatl, Miami Beach, FL 33140
Vacant Land Sales Grid
Following is a grid of the comparable sale properties used for comparison to the main parcel.
Salc
No,
Salc
Dnte Locntion
lYater
Frontage Viow Sale Price
Sq. Ft.
Size
Price/
Sq. Ft.
I February
2014
6455 Pine Tree Drive Circle
Miami Beach
360',Waterways $7,000,000 27,860 $25 l
2 April 2014 34 La Gorce Drive
Miami Beach
136'Bay $ 14,000,000 22,912 $6r1
3 January 2014 6596 Allison Road
Miami Beach
200'Waterway $11,700,000 43,200 $27 I
4 April 2014 1757 West 27th Sreet
Miami Beach
I 00'Waterrvay,
Parrial Bay
View
$6J?s,000 20,000 $339
5 Dccember
2013
6440 Noah Bay Road
Miami Reach
1 00,Watcrway
and Bay
View
$6,600,000 27,577 $239
6 September
2013
6010 North Bay Road
Miatni Bcach
7s'Portion of
Bay
s6,2s0,000 21,228 s294
7 Marcb20l4 845 E Di Lido Drive
Miami Beach
9z',Bay $5,700,000 l1 ?5i 842?
Subject May 2014 5860 North Biy Road
l\'Iiami Beach
150,Bay $9,650,000 24,425 s395
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:l 'I
Sal es Contp ar is o tt App ro ach.Land Valuation, 5860 N Bq Road, Miami Beach, FL 33140
Vacant Land Sales Map
llaronker & Rosen, Inc, .i, Reol Estate Appraisers & Consultants Page 41
683
Sales tantpatilan J.ppmreh Land lialll.aiioa, 5f60l$"8rpEocd, rlfiarnf Seu*h, FL 31140r@is.s@EErffitE lE!:rffi
Compar*bte ktnil Sals I
Lscation
6455 Pine Tree Drive Circle
Miami Beoch, fL 33141
Property Type
Vacant Residential Lot
$qu*re Fe*t
?7,9$0
Pricc/Ss,Ft-
$?s r "?6
IYAE" No"
30361 5
Reeordirg kfarmatioa
Sale Prirc:
Salc Dats:
OltBlPnge:
Gruntor:
Crenleer
Legal Description:
Folio No.:
financing & Prior S*le
Financing:
Frior Sale:
Fropcrty Dscripiion
Zoning:
Slrape:
T*pngraphy;
Commenfe
$7,000,000
Fsbruary 2014
2e03611?38
fie*rgcs Levy and Yaleri* Levy
Brickvicrv 3l14, LLC
Lengthy legal descripti*n. Re&r ts the recprdiag instrument"
02-3?r I-013-S{}50
All sash to the ssller
I$one in the past {ive years
RS-3, Single Family Residenre District by the city cf Miami
Beneh, FL
Irrrgular
Crade level
"l-his is & "tip" lct located on the norlhsast side ol" Pine Trre Drive Circle, a small xtreet that lonps
betrve*n La frorce Drive and Fin* Trec Drivr. {t bsne{its ltam wide lyater vie\ils fa.cing nei*h
toward La ilorcs Isls:rd find sast to,w*rd Allison istrnri. Total w*ter frcntage is approximatcly
360 feet. It was irnprnved with a ?,555 sf residcn*e built in 1950, but ihe buyer ix dernolishing it
to make wey for a new residence.
lfaro**er & I(or^ea, /n* $ fr*al list*te "{ppralcers & Corlsr*amtr Page 42
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Soles Comparisonlppyoach Land Valuation, 5860 N Bay Road, Miami Beaclt, FL 33140
rlil
l;rl
Comparable Land Sule 2
Location
34 La Gorce Drive
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
22,912
Price/Sq,Ft.
$61 1.03
WAR NO,
303616
Recording Information
Sale Price:
Sale Date:
ORRiPage:
Grantor:
Grantee:
Legal Description:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This lot is located on the southwest side of La Gorce Island, an exclusive guard-gatcd residential
community. It benefits from wide open bay views facing southwest. Total water frontage is
estimated at. 136 feet, It was improved with a 4,846 sq. ft. residence built in 1941that the buyer
is demolishing to make way for a new residence.
$l4,ooo,ooo
Aptil2014
2914013016
Joseph Z. Fleming and Betty C. Fleming
34 La Gorce Circle Partners, LLC
Lot 17, Block l, 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
02-321 0-003-0 1 40
All 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
Waronlcer & Rosen, Inc. c& Real Estate Appraisers & Consultants Page 43
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Sales Comparison Approach Land Valualion, 5860 N Bay Road, t{iami Beach, FL 33110.
Contparable Land Sale 3
Location
6596 Allison Road
MiamiBeach, 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:
$11,700,000
January 2014
2899911584
Frank Bramson and Phyllis G. Bramson
Michael Burke and Brigitte Burke
Lots 30,31 and thc North 25 feet of Lot 32, Block,INDIAN
CREEK, aocording to the Plat thereof, as recorded in Plat Book
31, Page 75 of tlie Public Records of Miami-Dade County,
Florida
02-321 l -003-0300
All 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
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
This lot is located on the west side of Allison Island, with 200 feet of water tiontage 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 rvas in the process of demolishing an older residence and
splitting the lot into tu,o equal size lots. It was marketed for sale as either one larger lot or two
smaller lots and was on the market for about six months when it sold as a single lot.
Waronker & Rosen, Inc. ,1. Real Eslate Approisers & Cortsultanls Page 44
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Sales Comparison App ro aclt Land Valualion, 5860 N Bay Road, Miami Beach, FL 33140
Comparable Land Sale 4
Location
I757 West 27th Street
MiamiBeach, FL 33140
Property Type
Vacant Residential Lot
Square tr'eet
20,000
Price/Sq.Ft.
$338.7s
WAII No.
30361 8
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Gmntor:
Grantee:
Legal Description:
Folio No.:
F inancing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topogmphy;
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 vielvs
facing northwest.
$6,775,000
April2014
2912712276
Campbell Avery Smith, as trustee
1757 W 27th Street, LLC
Lot22, Block 2H, ISLAND NO. 2, 3RD REVISED PLAT OF
SUNSET ISLANDS, according to the Plat thereof, as recorded
in Plat Book 40, Page 8 of the Public Records of Miami-Dade
County, Florida
02-3228-001-1260
Al[ cash to the seller
None in the past five years
RS-2, Single Farnily Residence District by the city of Miarni
Beach, FL
Rectangular
Grade level
lVaronker & Rosen, Inc €, Real Eslole Appraisers & Consultants Page 45
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Solcs Crrmparttor App
Comparable Land Sale 5
Location
6440 North Bay Road
MiamiBeach, FL 3314.|
Property Type
Vacant Residentiai Lot
Square Fect
27,517
Price/Sq.Ft.
fi239.33
WAR No.
3036 1 9
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
Legal Dcscription:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Comments
$6,600,000
December 2013
289ss12075
Versel Overseas Limited
6440 NBR, LLC
Lengthy legal description. Refer to the recording instrument.
02-321 s-003-0020
All 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 incorectly shows 200 feet of water frontage.
i'
I
tl
I
1i
{;t
ll/aronker & Rosen, Inc. €, Real Estate Appraisers & Cottsullants Page 46
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Sales Compafison Approach Land Valuation, 5860 N Bay Road, I|[iami Beach, FL 33140
Comparable Land Sale 6
Location
6010 North Bay Road
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Squarc Feet
21,228
Price/Sq.Ft.
$294.42
WAR No.
303620
Recording Information
Sale Price:
Sale Date:
ORBiPage:
Grantor:
Grantee:
Legal Description:
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Dcscription
Zoning:
Shape:
Topography:
Comments
$6,250,000
September 2013
28846/3885
FCI Miami Beach Two, LLC
6010 NBR, LLC
Lot 18, tslock 1, LAGORCE GOLF SLIBDIVISION, according
to the Plat thereof, as recorded in Plat Booh l4, Page 43 of the
Public Records of Miami-Dade County, Florida
02-321 s-003-0170
All cash to the seller
Iune 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.
lVaronker & Rosen, Ine .!, Ileal Estale Appraisers & Consultants Poge 47
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Sales Contparison Approach Land Valuatlott, 5860 N Bay Road, Miomi Beach, FL 33140
Comparable Land Sale 7
Location
845 E DiLido Drive
MiamiBeach, FL 33l39
Property Type
Vacant Residential Lot
Square Feet
13,353
Price/Sq.Ft,
$426,87
WAR No.
303623
Rccording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee;
Legal Description:
$5,700,000
March 2014
2907713233
Sunrise Ventures Holdings, lnc.
Mark Lyn
Lot 27, Block 4, Di 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 Wsst
bonndary 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,
02-3232-01I -0780
AII cash to the seller
April 201 0 for $2,450,000
RS-3, Single Family Residence District by the city of Miami
Beach, FL
Irregular
Grade level
Folio No.:
Financing & Prior Sale
Financing:
Prior Sale:
Property Description
Zoning:
Shape:
Topography:
Commcnts
This waterfront lot is located at the north end of Di Lido Island. It has approximately 97 feet of
rvater frontage and wide open bay views facing north.
lVaronker & Rosen, Inc, & Real Estale Appraisers & Consullants Page 48
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Sales Comparisott Approach Land Valuation, 5860 N Bay Road, Miomi Beach, FL 33140
Adjustment Grid
Below is a grid which illustrates qualitative adjustments used to compare the comparable sales to
the rnain 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 adjustrnents made. A plus (+; sign indicates the unit of comparison
of the sale must be adjusted upward as that characteristic is inferior to the subject, A minus (-)
sign indicates the urrit of comparison of the sale must be adjusted downward since the
characteristic is supcrior to the subject. An equal (=) sign indicates the comparable sale
characteristic is sirnilar to the subject,
Snle
No.
Price/
Sq. Ft.
Market
Conditions.Location
Water
Frontage/Views
Slze/
Shape
Overall
Adjustment
I $2s I ++++
2 s6l I
3 s271 +++l-++
4 $339 F ++++
5 $239 +++++
6 s294 ++++
'1 $427 +
After considoring the individual differences, either a plus (+), minus (-) or equal (=) sign has
been placed in the "Overall" column. This indicates the overall adjustment that the salc would
require as cornpared to the main parcel.
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Sales Comparison Approach Land Valuation, 5860 N Bay Road, Miami Beaclt, FL 33140
Conclusion of Land Value by the Sales Comparison Approach
The sales comparison approach compared sirnilar properties to the main parcel and adjustments
were made for the pertinent characteristics. Based on these comparisons a value was estimated
for the 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 size/shape. No adjustmcnt is required fot 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 fi'ontage, and the ratio of water frontage to lot
size, Size/shape adjustrnents 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 residcnce 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 r,vhich 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 pcr sq. ft. is supported by the analysis.
Also considered are the following current listings:
Current Listings of Vacant Waterfront Single-Family Sltes
Address
2 INDIAN CREEK DR
4INDIAN CREEK DR
5840 N BAY RD
6455 PINETREE DR
266 S HIBISCUS DR
28 S TARISLAND DR
1460 W 28 ST
3O8O N BAY RD
420 W s1 ST
861. N VENETIAN DR
Media n
City
lndian Creek
lndian Creek
Miami Beach
Miami Beach
Miami Beach
Mia mi Beach
Mia mi Beach
Miami Beach
Miami Beach
Miami
List Price
526,000,000
s25,000,000
s 1s,e00,000
S 11,eoo,ooo
s 11,400,00o
$ 1O,5OO,OOO
s7,4s9,ooo
S6,ze9,ooo
Ss,soo,ooo
Ss,3oo,ooo
S1o,95o,ooo
Lot Size
(sq. ftJ
80,00o
80,o00
37,A95
27,860
21,000
40,ooo
20,oo0
20,500
28,550
1s,o00
28,255
Price
per sq. ft.
s32s.00
s3 r.2.s0
s419.s8
S4?7.74
ss42.86
Szoz,so
Saz+.gs
S3o7.z7
S191,97
S3s3,33
S339,17
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Sales Comparison Apprcach Land Vqluation, 5860 N Bay Road, Miami Beach, FL 33140
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 sirnilar in size and shape and
is listed for $419.58 per sq. ft. The listings representthe subject's main competition if it were to
be offered for sale at this time, 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 s{. ft., or $9,800,000 (rounded).
Valuotion of the South Tract
The south tract is contained within the main parcel, containing 24o/o of its total land area, 50oh of
its street frontage and 17%o 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 sq. ft., the across the fence value of the south tract is estirnated at $400
times 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 rvater's edge, Anything constructed on it would however benefit from water views looking
west and northwest over the 30 feet at the nofthwest corner of the main parcel. An adjustment to
the market value estimated for the main parcel is indicated, but note that the north tract is a City-
orvned parcel unlikc any other parcel based on its location. Therefore, only a general comparison
to other parcels can be made.
Generally, the nofth 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
adjustment to the market value estimate for the main parcel lvould put the across the fence value
of the north tract somewhere well below $400 per sq. ft. but above values obseryed 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.
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soles comparison Ap tioh 5860 N Bay Road, Miami Beacb 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 I-ocetion Sale Price
Sq. Ft.
Size
Price/
Sq. Ft.
8 April
2013
2057 N Bay Road
Miarni Beach
$6s0,000 6,063 st07.2t
9 December
2At3
116 3rd Rivo Alto Tenace
Miami Beach
$ I,l 60,000 7,500 $ 154.67
l0 lfebruary
2013
7830 Atlantic Way
Miami Beach
$ I,02s,000 6,2s0 $164.00
11 Moy
2014
7801 Collins Avcnus
Miami Bcach
$962,s00 6,500 $ 148.08
t2 Mav
2014
1351 S Venetial Way
Miami
$830,000 7,500 $ l 10,67
i3 August
2013
7833 Atla:rtic Way
Miami Beach
$3,200,000 13.000 ti246. l5
14 July
2013
7709 Atlantic Way
Miami Beach
$3,8i5,000 13,000 $298.08
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Sales Comparison Approaclt. Land Valualion, 5860 N Bay Road, Miami Beach, FL 33140
Vacant Land Sales Map
(For Analysis of North Tract)
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Sales Comporison Approach Land Valuation,5860 N Bay Road, Miami Beaclt, FL 33140
Comparable Land Sale I
Location
2057 N Bay Road
MiamiBeach, FL 33140
Property Type
Vacant Residontial Lot
Square Feet
6,063
Price/Sq.Ft.
$107,21
WAR No.
303636
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantol
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 N Bay Road, with 49 feet of frontage between
N Michigan Avenue and W 21st Street. The location is across the street from the waterfront
parcels.
$650,000
April2013
2862512128
Sam Kvitko
Giusi Properties,Inc.
Lot25, Block 16, SUNSET LAI(E 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-t6t0
Rccorded 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
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Sales Comparisott Approach Land Valuation, 5860 N Bay Road, Miami Beach, FL 33140
Comparuble Land Sale 9
Location
t 16 3rd Rivo Alto Terrace
MiamiBeach, FL 33139
Property Type
Vacant Residential Lot
Square F eet
7,500
Price/Sq.Ft.
$1s4.67
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 lslands).
$ 1,160,000
December 2013
28979t575
Union Mexico Money Support, Inc.
Eight Venetian, Inc.
Lot 2, Block 8, RIVO ALTO, according to the Plat thereof, as
recorded in Plat Book 7, Page 74 of the Public Records of
Miami-Dade County, Florida
02-3233-00 l-0910
Recorded deed, MLS
All cash to the seller
February 2013 for $1,050,000
RS-3, Single Farnily Residence District by the city of Miami
Beach, FL
Rectangular
Grade level
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Sales Comparison Approach Land Vafuation, 5860 N Bay Road, Miami 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.
$ r 64,00
WAR No.
303633
Recording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Grantee:
I-egal Description:
$1,025,000
February 2013
2849913636
Altos del Mar, Ltd,
Macanao Entertainment, LLC
Lot 3, Block 12, CORREC'IED PLAT OF ALTOS DEL MAR
NO. 1, according to the PIat thereof, as recorded in Plat Book
31, Page 40 of the Public Records of Miami-Dade County,
Florida
02-3202-004-0s40
Recorded deed, MLS
All cash to the seller
None in the past five years
RS-3, Single Family Residenoe District by the city of Miami
Reach, FL
Roctangular
Grade level
Folio No.:
Verification:
Financing & Prior Salc
Financing:
Prior Sale:
Properfy Description
Zoning:
Shape:
Topography:
Cornrnents
This single-family lot is located on Atlantic Way with 50 feet of tiontage 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 Norlh
Shore Park.
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Srlrt Cr^p*rtrn App
Comparable Land Sule l1
Location
7B0l Collins Avenue
Miami Beach, FL 33141
Property Type
Vacant Residential Lot
Square Feet
6,500
Price/Sq.Ft.
$148.08
WAR No.
303634
Recordin g Inforrnation
Sale Price:
Sale Date:
OM/Page:
Grantor:
Grantee:
Legal Description:
$962,500
May 2014
2914014116
Altos delMar, Ltd,
Henry Ahn and Raye Dube
TIre West 65 feet of Lots 5 and 6, Block 12, 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
02-3202-004-0560
Recorded deed, MLS
All cash to the seller
None in the past five years
RS-3, Single Family Rcsidence 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 is a single-family lot located at the northeast corner of Collins Avenue and 78th Street in
gated residential community. The location is one block from the ocean.
Vl/aronku & Rosen, Inc. .i. Real Estate Appraisers & Consuhants Page 57
699
){
lt
Sales Comparison Approach Land Valuation,5860 N Bol Road, Miami Beach, FL 33140
Comparable Lond Sale 12
Location
1351 S Venetian Way
Miami, FL 33139
Property Type
Vacant Residential Lot
Square Feet
7,500
Price/Sq.Ft.
$ 1i0,67
WAR No.
303637
Recording fnformation
Sale Price:
Sale Date:
ORB/Pagcr
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 at the northwest corner of S Venetian Way and NE 13th Place
on San Marco Island, one of the Venetian Islands.
$830,000
May 2014
29t62/2924
Mario Jaile and Mercedes Jaile
Domingo Pardo, as Trustee
Lot 8, Block 7, SAN MARCO, according to the Plat thereof, as
recorded in PIat Book 9, Page 21 of the Public Records of
Miami-Dade County, Florida
01-3232-001-0610
Reoorded deed, MLS
All cash to the seller
None in the past five years
T3-R, Single Family Residence by the city of Miarni, FL
Rectangular
Grade level
li
t,
li
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Sales Comparisott Approach Lund Valuation, 5860 N Bay Road, Miami Beach, FL 33140
-
Comparable Land Sale 13
Location
7833 Atlantic Way
MiamiBeach, FL 33141
Property Type
Vacant Residential Lot
Square Fcet
13,000
Price/Sq.Ft.
$246,1s
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 TBth and 79th 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.
$3,20o,ooo
August 2013
28783fit84
Bank of America, N.A
Loxodonta Ventures, LLC
Lot 2, Block 5, CORREC'IED PLAT OF ALTOS DEL MAR,
according to the Plat thereof as recorded in PIat Book 31, Page
40 of the Public Records of Miami-Dade County, Florida
02-3202-004-0t90
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
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Sales Comparison Approach Land Valuatiott, 5860 N Boy Road, Miami Beach, FL 33140
Comparable Land Ssle 14
Location
7709 Atlantic Way
MiamiBeaclt, FL 33141
Property Type
Vacant Residential Lot
Square Feet
13,000
Price/Sq.Ft.
$298.08
WAR No.
303639
Rccording Information
Sale Price:
Sale Date:
ORB/Page:
Grantor:
Crantee:
Legal Description:
Folio No.:
Verification:
Financing & Prior Sale
Financing:
Prior Saie:
Property Dcscription
Zoning'.
Shape:
Topography:
Comments
'l'his single-family lot is located on the east side of Atlantic Way, betweenT?th and 78th Streets,
in a gated residential community. [t is an interior lot with frontage of 50 feet along both Atlantic
Way and the beach, and a dcpth of 260 foet.
$3,875,000
July 2013
28757/623
1037 Orlando, LLC
Kadey Family Beach, LP
Lot 5, Block 6, CORREC'IED 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
Rccorded deed, MLS
All cash to the seller
May 2012 for $3,500,000
RS-3, Single Family Residence District by the city of Miarni
Beach, FL
Rectangular
Grade level
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Sales.9ompsri:on Approqch - Lsnd _VJluation, 5860 N Bay Road, htlami Beoch, 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, 1 1 , 1 3 and l4 are all located in Altos del Mar, a small single-family subdivision and
gated community located between Collins Avenue and the ocean. Sales l0 and 11 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 near that of Sale 14, which is identical in size and shape and has avery similar location.
Note also that Sales 13 and 14 are disadvantaged by a very narrow shape (both trave 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 haye ocean frontage, they are set back
frorn the beach some distance, slightly diminishing the quality of the views. T'he 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
conditiotts of sale. The two rvaterfront sales are inferior to the main parcel, mainly due to seyere
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 salos indicate the following ranges;
Non-waterfront sales (Sales 8 to 12)
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 main parcel sales
(Sales 1 to 7), above the range of the non-waterfront sales (Sales 8 to l2), below Sale 14 (which
is severely disadvantaged by shape but whi<;h benefits from ocean frontage), and near Salc 13
(which is very similar to Sale 14 but which was also a distressed sale). Based on this, an across
the fence va,lue of $250 per sq. ft. is indicated. At 10,215 sq. ft,, this equates to a valuc of
$2,550,000 (rounded).
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Srl"t Cr^p"rtttr A
Potential Impact on lhe Market Value of the Main Parcel
IJased on the across the fence values estimated above, the net value of theproposed 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 considcr the
potential impact of the proposed land swap on the market value of thc main parcel. In other
words, they ignore the possibility that the value of the land swap /o the owner of the main parcel
may be higher or lower tltan 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 feetr An enhancement of the utility of the north 30 feet of the existing water flontage as a
result of thc annexation of the notth hact, which would make possible better quality
views from that portion of the water frontagc.r An enhancement in the overall shape of the parcel, which is currently disadvantaged by
having a1,647 sq. ft. semi-"olphaned" segment at the northwest end on the waterfront.
Thc boundary at thc southeast end would become irregular, but tlris occurs at the street
frontage where it has much less impact than on the waterfront.
o The overall size of the parcel wou(d increase from 24,425 to 28,770 sq. ft,
The net irnpact of these changes is likely to be neutral to slightly positive, making it possible that
to lhe owner of the nain 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 considcred and are
not reflected in the across the fence values estirnated which are based on market value and not a
value to an adjoining owner.
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Reconciliation _ Land Valualiolt, 5860 N Bay Road, Miami Beach, FL i3140
Reconciliation of Value
The reconciliation process considers the approaches
approach to value is analyzed as to its reliability and
the following values:
Cost Approach
Income Capitalization Approach
Sales Comparison Approach
Main Pqrcel
South Tract
North Tract
which were utilized in this report. Each
applicability. These approaches indicated
Not applicable
Not applicable
89,800,000
$2,350,000
$2,550,000
The cost approach estimates the land value and adds the deprrcciated value of the improvements.
As the land being appraised is vacant, this approach is not applicable and was not applied herein.
The income 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 rvere analyzed for differences such as conditions
of sale, f,tnancing, 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 cornpared easily with the subject are most desirable. The sales utilized were
considered comparable 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 valucd 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 tlre south tract as of May 3l,Z0l4 is estimated at $2,350,000, and the across the fence value
of the north tract as of May 31,2014 is estirrated at $2,550,000.
lYoronkar & Rosctt, Inc. * Real Estate Appraisers & Consultants Page 63
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ADDENDA
R P O R AT E D
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ADDENDUM A
COUNTY AREA DESCRIPTION
ll/orunker & Ilosen, Inc. ,i,Real Estale Appralsers & Consultants
707
Miami-Dade County and Area Description
General Overview
Miami-Dade County, often refemed to as "Miami" is known intcrnationally for its weather,
beaches, banking, find art, shopping, and Latin culture. While many pass through the Cruise
Capital of tl.re World, 2.5 million people call it home.
Miami-Dade County is at the southeastern tip of Florida and is the south-eastemmost 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 repoft, 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 201I
Estimate
Percentago change
2011 to 2015
2020 Projection
based on 2011
Estimate
Perceutage change
201L to 2020
2,591,790 3.8%2,717,631 4.gYo
Miami has a positive reputation for international business, and developers are rnarketing their
new projects to those individuals. Therefore, the county's population is expected to increase at an
even grcater rate approaching the year 2020.
Vloronker & Rosen, Inc. ,lrReal Estate Apptaisets & Consultunts
708
:l
Miami is the largest city in fhe County. Other populous municipalities include Hialeah, Miami
Gardens, Miami Beach, and unincorporated [and. Actively growing are some new cities since
2000 suclr as Cutler l3ay and Doral.
Brief History
Miami was founded in 1856 after the end of Spanish rule in Florida. Before the turn of the
century, prominent figures such as William and Mary Brickell and Henry Flagler established a
community and connected the young city to the rest of the United States. Island people moved
hcre 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
for tourists, but it crumbled under the hurricane of 1926. During the decades of war, parts of
Miarni-Dade County became training grounds for military. Rcsidents then slowly built back up
the tourism industry.
The early 1960's marked the beginning of the arival of large numbers of Cuban Refugees into
Miami-Dade County and South Florida. In the years following, significant nurnbers of
immigrants have come from Haiti, Cuba and other Latin American countries.
Government
Miami-Dade County has a strong mayor form of goverflment, with nine elected individuals (one
mayor and eight commissioners) making up the Miami-Dade County Board of Commissioners.
The rnayor appoints a professional administrator to manage the daily activities of the county
government and a county attorney 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
pollution control. in addition to these, Miami-Dade County provides services to the
unincorporated areas of thc county such as: police and fire protection, building and zoning
regulation, trash and garbage collection and disposal, parks and recreation, consurner protection
and corrections and rehabilitation ofadults and youth offenders.
Wsronker & Rosen, Inc. &Real Dstate Appraiserc & Consultants
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Economic Base
The primary industries that support Miami-Dade County's economy through employrnent 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 dcmographics by trade, with tourism ranking the highest number of companies,
followed by retail and finance, insurance and real estate.
Miami-Dade County
Demographics by Trade
s0000
45000
40000
35000
30000
2s000
20000
15000
10000
5000
I 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 $2.7 billion in economic benefits each year. As a result, agritourism has sprouted an
industry throughout thc agricultural area where visitors can sample and purchase locally grown
products.
i . t-f'*-r---r"'',*-[---r-.'-f'-';'-,-'r--,
| ^"")-ir."$'p--."1".r'$
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ll'arcnker & Rosen, Inc, ,lrReal Estate Appruiset's & Consultants
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Transportation
Miami International Airporl 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 and282,043jobs to the localeconomy.
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 economy and
helps provide direct and indirect employment for more than 207,0A0 individuals. [t 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
clrannel from its current 4?-foot depth to minus 50 feet in order to accommodate super cargo
ships now being constructed.
Within Miami-Dade County, major roads include the Polmetto Expressway (State Road No.
826), a rnajor north/south cxpressway; the Dolphin Expressway (State Road No. 836), a major
easVwest expressway; Interstate 95 and the Florida Ttnnpike. All of these represent Miami's
expresslvay 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 Miarni-Dade County, downtown Miami and the entire
elevated rail line. The enables seamless connections to the Metrornover systems and to a web of
transpofiation arteries in neighboring counties leading to the rest of Florida.
The Miami Intermodal Center (MIC) links the airport, East/West Rail, Amrack, Tri-Rail,
Airport/Seaport Connector and Metrorail mainline rail, Located near the State Road No.
836/State Road 112 Connector, it presently contains the bulk of the rental car agencies. East of
the airport in the future it will contain retail, oommercial, residential and tourist-designed
development.
The Metromover automated people lnover system is located in downtown Miami and is an off-
shoot of the Metrorail system. There are also Metrobus buses, rnost of which are in service daily
throughout the county. The Metromover system includes the Brickell Avenue frnancial district
and also runs north to the Ornni area. Other transportation services in Miami-Dade County
include 'l'ri-Rail, railroads and taxicabs. Railroad service by Amtrak is accessible in northwest
Miami-Dade. Tri-Rail is South Florida's commuter train system which seryices Miami-Dade,
Broward and Palm Beach Counties.
Education
Based upon student population, the Miarni-Dadc County School system is the fourth largest
public school system in the nation with 415 institutions including elementary, middle, high, K-8,
chafter, 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. Thornai
University, Florida MemorialCollege 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 naiion
which shares many teaching, treatment and research capacities witli 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 Panrhers)
are continual draws. As of January2014, 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 siot gambling or table gambling, depending upon location in a
municipality or Indian rescrvation. Also offered are golf, tennis, as well as the numerous water
sports, given the significant bodies of water.
Arts and Culture
I(nown for the wealth of ethnic diversity and heritage, N,fiami-Dade County has a cultural mix of
festivals, concerts, theater, and dance performances. Adrienne Arsht for the Performing A11s 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 experienccd significant
changes and growth. Trends indicate that the growth will continue with Miami-Dade County
rapidly becoming an international city with a diverse culture. The economic base and thb
bilingual population should continue to attract new residents and businesses into Greater Miami.
Sources including, but not limited to:
United States Census Bureau (Jan, 20i4). htto://quickfacts.census,sov/ofd/states/12ll2086.htntl
Miarni-Dade County Portal (Jan. 2014), vnvw.miamidade.sov.
The Beacon Council (Jan. 2014). www.beaconcouncil.com
Federal Rescrve Economic Data (Jan. 2014). http://research.stlouisfbd.ore/fi.ed2l
Miami Ilerald (various articles). http://www.miamiherald.corn/
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ADDENDUMB
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