1367

2.3.a

APPRAISAL REPORT Attachment: 2100 Backup Document (2100 : Resolution Authorizing the Purchase of Property Located at 1367 North Miami Avenue)

HISTORIC CITIZEN BANK BUILDING 1367 North Miami Avenue Miami, Miami-Dade County, Florida 33132 CBRE, Inc. File No. 17-397MI-0518-1

Jason Walker Executive Director OMNI / MIDTOWN CRA 1401 North Miami Avenue, 2nd Floor Miami, Florida 33136

www.cbre.com/valuation

Packet Pg. 19 © 2017 CBRE, Inc.

2.3.a

777 Brickell Avenue, Suite 910 Miami, FL 33131 T (305) 381-6472 www.cbre.com

March 28, 2017

Jason Walker Executive Director OMNI / MIDTOWN CRA 1401 North Miami Avenue, 2nd Floor Miami, Florida 33136 RE:

Appraisal of Historic Citizen Bank Building 1367 North Miami Avenue Miami, Miami-Dade County, Florida 33132 CBRE, Inc. File No. 17-397MI-0518-1

Dear Mr. Walker: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 14,820-square foot, 1 & 2-story, vacant bank building located at 1367 North Miami Avenue in Miami, Florida. The improvements were constructed in 1924 and are situated on a 0.24-acre, high density mixed-use zoned site within the Media & Entertainment District and within the OMNI CRA in downtown Miami. The subject is more fully described, legally and physically, within the enclosed report. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise As Is

Interest Appraised Fee Simple Estate

Date of Value March 22, 2017

Value Conclusion $4,500,000

Compiled by CBRE

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.


Attachment: 2100 Backup Document (2100 : Resolution Authorizing the Purchase of Property Located at 1367 North Miami Avenue)

VALUATION & ADVISORY SERVICES

2.3.a

The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES

Stuart J. Lieberman, MAI Vice President Cert Gen RZ1074 www.cbre.com/stuart.lieberman Phone: (305) 381-6472 Fax: (305) 381-6441 Email: [email protected]

James E. Agner, MAI, AI-GRS, SGA, MRICS Senior Managing Director – Florida/Caribbean Cert Gen RZ382 www.cbre.com/james.agner Phone: (305) 381-6480 Fax: (305) 381-6441 Email: [email protected]



Jason Walker March 28, 2017 Page 2

2.3.a

Certification

We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, Stuart J. Lieberman, MAI and James E. Agner, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 11. Stuart J. Lieberman, MAI has and James E. Agner, MAI has not made a personal inspection of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the persons signing this report. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Stuart J. Lieberman, MAI and James E. Agner, MAI have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

Stuart J. Lieberman, MAI Cert Gen RZ1074

James E. Agner, MAI, AI-GRS, SGA, MRICS Cert Gen RZ382 i



Certification

Aerial View

© 2017 CBRE, Inc.


2.3.a

Subject Photographs

Subject Photographs

ii

Packet Pg. 23

2.3.a

Photo 1 – Front View From N. Miami Ave.

Photo 2 – Side View From NE 14th Street

Photo 3 – 1st Floor View of Vacant Bank

Photo 4 – Vacant Building #2




Subject Photographs

iii


2.3.a

Photo 7 – 2nd Floor View of Vacant Bank

Photo 8 – 2nd Floor View of Vacant Bank

Photo 9 – View South Along N. Miami Ave.

Photo 10 – View East Along NE 14th Street

iv



Subject Photographs

2.3.a

Executive Summary

Property Name

Historic Citizen Bank Building

Location

1367 North Miami Avenue, Miami, Miami-Dade County, Florida 33132

Highest and Best Use As If Vacant

Mixed-use residential/retail, restaurant, bar/lounge/entertainment and/or hotel

As Improved

Renovate & repurpose to restaurant/bar and entertainment use, or redevelop with mixed-use residential/tower and/or renovate with residential & hotel tower overbuild

Property Rights Appraised

Fee Simple Estate

Date of Report

March 28, 2017

Date of Inspection

March 22, 2017

Estimated Exposure Time

6 to 9 Months

Estimated Marketing Time

6 to 9 Months

Land Area

0.24 AC

Zoning

T6-24 O, Urban Core Transect Zone

10,637 SF

Improvements Property Type

Office

Number of Buildings

2

Number of Stories

1&2

Gross Building Area

14,820 SF

Net Rentable Area

14,820 SF

Year Built

1924

Condition

Poor

Buyer Profile

(Mixed Use)

Investor-Local

VALUATION Land Value As If Vacant Market Value As Is On Cost Approach

Total

Per SF

$4,250,000

$399.56

$4,525,000

$305.33

$4,500,000

$303.64

Not Applicable

---

$2,075,000

$140.01

March 22, 2017

Sales Comparison Approach Income Capitalization Approach Insurable Value

CONCLUDED MARKET VALUE Appraisal Premise

Interest Appraised

Date of Value

Value

As Is

Fee Simple Estate

March 22, 2017

$4,500,000

Compiled by CBRE

v



Executive Summary

2.3.a

Executive Summary

Strengths/ Opportunities      

The subject building facade is historically relevant and may be eligible for Certificate of Transfer of Development Rights (TDRs). The subject is located along a highly visible, gateway corner of NE 14th Street and N. Miami Avenue within the Media & Entertainment District (MED). The MED district is within close proximity and walkable distance to the Adrienne Arsht Performing Arts Center, Museum Park, Bayside Marketplace, American Airlines Arena, PortMiami, Biscayne Bay and the downtown Miami central business district (CBD). The downtown Miami CBD is transitioning into a 24/7 work/live urban center. Long term outlook and population growth for the downtown Miami CBD is very positive, including Port Miami growth from the Panama Canal expansion and new residential & hotel towers recently delivered, under construction and proposed. New project cancellations, developer partnership dissolutions and self-regulating market conditions is off-setting some of the overbuild and “bubble” conditions.

Weaknesses/ Threats 

Substantial capital resources and expertise are necessary to physically restore and maintain the subject property as a viable investment.

EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as “an assumption directly related to a specific assignment, as of the effective date of the assignment results, which if found to be false, could alter the appraiser’s opinions or conclusions.” 





1

The subject property may be recognized as a Locally Designated Historic Resource and could be eligible for a Certificate of Transfer of Development Rights (TDRs). However, if TDRs are ever secured and transferred off-site, then any contributory value of TDRs cannot be attributed to the subject property interest and our market value conclusions would be impacted. We requested, but did not receive any notice of the 40-year recertification nor any mechanical, electrical, plumbing, structural, roof or environmental assessments. Our value estimates and conclusions assume mechanical & structural integrity sufficient for renovations & repurpose, and no environmental concerns. The use of these extraordinary assumptions may have affected the assignment results.

HYPOTHETICAL CONDITIONS A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis.” 

2

None noted

1

The Appraisal Foundation, USPAP, 2016-2017 ed., 3.

2

The Appraisal Foundation, USPAP, 2016-2017 ed., 3. vi



STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)

2.3.a

Table of Contents

Certification ......................................................................................................................... i Subject Photographs ............................................................................................................ ii Executive Summary ..............................................................................................................v Table of Contents ............................................................................................................... vii Introduction ........................................................................................................................ 1 Area Analysis ...................................................................................................................... 4 Neighborhood Analysis ....................................................................................................... 7 Site Analysis ...................................................................................................................... 25 Improvements Analysis ...................................................................................................... 28 Zoning .............................................................................................................................. 30 Tax and Assessment Data .................................................................................................. 33 Market Analysis ................................................................................................................. 35 Highest and Best Use ........................................................................................................ 40 Appraisal Methodology ..................................................................................................... 42 Land Value........................................................................................................................ 43 Cost Approach .................................................................................................................. 48 Insurable Value ................................................................................................................. 52 Sales Comparison Approach ............................................................................................. 54 Reconciliation of Value ...................................................................................................... 59 Assumptions and Limiting Conditions ................................................................................ 60 ADDENDA A Land Sale Data Sheets B Improved Sale Data Sheets C Legal Description D Précis METRO Report - Economy.com, Inc. E Client Contract Information F Qualifications

vii



Table of Contents

2.3.a

Introduction

OWNERSHIP AND PROPERTY HISTORY Title to the property is currently vested in the name of Big Time Equipment, Inc., who acquired title to the property in January 1998, as improved for $215,000, as recorded in Official Record Book 17965, at Page 2470 of the Miami-Dade County Public Records. This prior sale transaction of the subject appears to have been arm’s length and reasonable based upon market conditions at time of sale and interviews with the current owner, Eugene Rodriquez. The current owner utilizes the property as a film set and for storage. Based upon discussions with the owner and subscription data sources, the subject was listed “for sale” in October 2016 at a list price of $7,000,000, and went into contract at $5,500,000 to a developer who was considering a concept residential tower over build on top of the existing bank building.

The property fell out of contract and as of the effective date of this appraisal, is

reported to be “in-contract” with the Omni CRA at a purchase price of $5,500,000. However, we requested a copy of the purchase contract and none was provided for our review. It would also appear the $5,500,000 contract price is above our market value estimate as will be further presented and explained in this report. INTENDED USE OF REPORT This appraisal is to be used by the client for internal decision making and acquisition negotiations, and no other use is permitted. INTENDED USER OF REPORT This appraisal is to be used by the directors of the Omni CRA, and no other user may rely on our report unless as specifically indicated in the report. Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 3 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property.

3

Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50. 1



Introduction

2.3.a

Introduction

The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 INTEREST APPRAISED The value estimated represents fee simple estate and defined as follows: Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 5 SCOPE OF WORK This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied. CBRE, Inc. completed the following steps for this assignment: Extent to Which the Property is Identified The property is identified through the following sources:   

postal address assessor’s records legal description

4

Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472.

5

Dictionary of Real Estate Appraisal, 78. 2



DEFINITION OF VALUE

2.3.a

Introduction

The extent of the inspection included the following: building interiors, exterior areas and surrounding environs. Type and Extent of the Data Researched CBRE reviewed the following:      

applicable tax data zoning requirements flood zone status demographics income and expense data comparable sale & listing data

Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. Data Resources Utilized in the Analysis DATA SOURCES Item: Site Data Size Improved Data Building Area No. Bldgs. Parking Spaces Year Built/Developed

Source(s): Legal description, survey and Miami-Dade County Property Appraiser's website "As built" survey, owners marketing materials and Miami-Dade County Property Appraiser's website Survey and observations None Public records

Economic Data Deferred Maintenance: Building Costs: Income Data: Expense Data:

Visual observations Not applicable Market data Market data

Other Active Listing

Market and subscription data

Compiled by CBRE

3



Extent to Which the Property is Inspected

2.3.a

Area Analysis

Moody’s Economy.com provides the following Miami-Miami Beach-Kendall, FL metro area economic summary as of November 2016. The full Moody’s Economy.com report is presented in the Addenda. MIAMI-MIAMI BEACH-KENDALL, FL - ECONOMIC INDICATORS Indicators Gross Metro Product (C$B) % Change Total Employment (Ths) % Change Unemployment Rate (%) Personal Income Growth (%) Median Household Income ($ Ths) Population (Ths) % Change Net Migration (000) Single-Family Permits Multifamily Permits Fhfa House Price (1995Q1=100)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

104.1

104.4

106.3

108.4

111.1

113.8

115.9

121.3

127.0

132.2

136.5

141.0

-0.5

0.2

1.8

2.0

2.5

2.4

1.9

4.6

4.8

4.1

3.2

3.3

985.1

1,007.3

1,031.3

1,056.7

1,089.4

1,123.4

1,140.3

1,207.9

1,221.3

1,226.4

1,162.1

1,185.1

-0.3

2.2

2.4

2.5

3.1

3.1

1.5

1.9

2.0

1.9

1.1

0.4

11.1

9.4

8.4

7.6

6.9

6.1

5.3

4.6

3.9

3.4

3.4

3.8

8.9

4.6

3.2

-0.4

6.8

6.2

4.9

6.0

7.4

7.0

5.7

5.2

42.0

41.7

42.0

42.4

42.9

43.8

45.3

47.0

49.2

51.3

53.0

54.5

2,508.2

2,580.1

2,611.2

2,641.9

2,668.9

2,693.1

2,728.7

2,767.0

2,806.8

2,847.1

2,887.5

2,926.6

1.8

2.9

1.2

1.2

1.0

0.9

1.3

1.4

1.4

1.4

1.4

1.4

30.6

58.8

17.9

17.4

16.2

11.1

24.7

27.6

29.1

29.7

29.9

28.8

941.0

962.0

1,819.0

2,266.0

2,077.0

2,800.0

3,267.6

5,298.0

6,867.8

7,585.0

7,138.9

6,917.3

2,262.0

1,656.0

3,250.0

8,050.0

5,654.0

9,817.0

4,973.5

6,472.5

7,575.4

6,650.1

5,804.8

6,232.1

195.7

183.0

185.9

207.7

233.6

257.4

282.1

296.0

298.0

289.5

282.1

279.7

Source: Moody's Economy.com

RECENT PERFORMANCE Miami-Miami Beach-Kendall is not faring as well as the rest of Florida and the nation, but economic growth in the metro division has picked up since the first quarter. Miami-Miami BeachKendall's unemployment rate is no longer falling, but this has more to do with a turn up in the labor force than a worsening in employment. A more favorable mix of job creation and limited

4



Area Analysis

2.3.a

Area Analysis

6% annualized gain since April is the biggest jump for any six-month period since the decade began. More jobs and income are helping housing. According to the Miami Association of Realtors, the median sale price for a single-family home is $300,000, the highest level since the Great Recession. INTERNATIONAL APPEAL MIA's economy will grow faster than the nation's because the metro division attracts some of the most talented and productive workers from across the Western Hemisphere. MIA is the only metro area or metro division in the U.S. where more than half of the population was born in a foreign country, and more than 90% of these newcomers were born in Latin America, which includes Cuba. Over the last two generations, these migrants have transformed Miami-Miami BeachKendall from a sleepy retiree destination to the cultural, financial and media capital of Spanishspeaking America. This growth should carry on, but hostility to trade and immigration among the American electorate and the incoming administration in Washington DC represents a new threat to MIA's economy. CRUISE CONTROL After a lackluster 2016, job growth in leisure/hospitality will accelerate next year. In particular, cruise lines are helping to fuel this growth. In the last fiscal year, the city's port welcomed 5 million passengers, a world record. The current fiscal year will be even busier than the last, as two new cruise ships will begin service from PortMiami this quarter. The port is also prepping for growth beyond this quarter-the facility recently won a $33 million state grant that will be used to build a cruise terminal capable of processing more than 5,000 cruise passengers at once. Growth in the cruise industry is also good for jobs in professional services in Miami-Miami BeachKendall, which is the headquarters of Carnival Corp. and Royal Caribbean Cruises Ltd., the world's two largest cruise lines. FIU Florida International University has emerged as a key driver for Miami-Miami Beach-Kendall, but it will contribute little to growth over the next five years. With an annual operating budget of more than $1 billion, the state's second largest student body, and more than 5,000 full- and part-time employees, the school is a stable source of income for many households. However, compared with other large institutions, the economic impact of FIU is muted because 41% of its enrollees are part-time students who did not migrate to Miami-Miami Beach-Kendall; despite FIU's name, its student body mostly consists of local residents. In 2005, the administration capped enrollment in favor of improving the quality of the academic programs. In addition, student growth will be hampered because of America's shrinking population of college-aged adults. According to the U.S. Census Bureau, the number of U.S. 5



supply of labor are driving up pay; average hourly earnings are rocketing higher. The more than

2.3.a

Area Analysis

is even worse for Hispanics, who account for nearly two-thirds of FIU's enrollment-the population of college-aged Hispanics will fall by 3.3% by 2021. CONCLUSION In the near term, Miami-Miami Beach-Kendall will strengthen thanks in part to its large port, which will create jobs in trade, manufacturing and tourism. Over the forecast horizon, MiamiMiami Beach-Kendall's international character, combined with its high-skilled, bilingual workforce, will help it best the U.S. in household income growth.

6



residents who are 18 to 24 years old will decline by 1.3% over the next five years. The projection

2.3.a

Neighborhood Analysis

LOCATION The subject property is located at a gateway corner of the Media & Entertainment District within the Omni CRA at the southeast intersection of North Miami Avenue & NE 14th Street in the City of Miami, Florida. This is a redeveloping neighborhood/submarket situated at the north end of the downtown Miami central business district (CBD) and boxed in by the emerging & edgy Wynwood Arts District to the north; the high-rise residential Edgewater community and Adrienne Arsht Center for the Performing Arts to the east; the massive developing WorldCenter mixed-use project to the south; and, Interstate 95 to the west. The subject location is also located just west east of Biscayne Boulevard and in close proximity to the major transportation arteries including Interstate 195, Interstate 395, Interstate 95, as well as, the Metrorail and Metromover elevated train systems. BOUNDARIES The neighborhood boundaries are detailed as follows: North: South: East: West:

Interstate 195 (State Road 112) Miami River Biscayne Bay Interstate I-95

7




2.3.a

LAND USE The subject property is also located in the central business district of the Miami Downtown Development Authority (DDA). The general boundaries for the Central Business DDA span from Interstate 95 and the Miami River on the west, east to Biscayne Bay, and from S.W./S.E. 15th Road north to N.E. 24th Street. According to current studies, the Miami DDA area comprises the following statistics: o

DDA Area: 1.7 square miles

o

2016 Population: 88,540

o

2016 Daytime Population: 234,976

o

2021 Projected Population: 106,429

o

27,023 Residential Units Built Since 2003

o

18.7 Million Sq. Ft. of Office Space

o

7,969 Hotel Rooms

In 2010, the Miami Downtown Development Authority's (Miami DDA) board of directors voted unanimously to approve the 2025 Downtown Miami Master Plan, a 15-year roadmap for enhancing the livability and quality of life in Downtown Miami. The plan is to serve as a benchmark for encouraging investment by both the public and private sectors, with the goal of transforming Miami's urban core into the "Epicenter of the Americas." The approved Master Plan combines new land use and planning guidelines, as well as outlines a number of proposed projects, some of which are already underway. The final plan is the culmination of existing studies, as well as a series of Miami DDA Board workshops, public forums, and stakeholder meetings designed to gain a better understanding of existing conditions and gather the best and most sustainable ideas for revitalizing Downtown Miami. The Master Plan outlines five core goals for Downtown Miami (bounded at the South end by SE 15th Rd. and on the North by NE 22nd St.; on the West by I-95 and on the East by Biscayne Bay): 

Enhance Downtown Miami's standing as the business and cultural epicenter of the Americas



Leverage the City's beautiful and iconic tropical waterfront



Elevate Downtown's grand boulevards to prominence



Create great streets and community spaces throughout the district

In order to achieve the aforementioned goals and objectives, there economic incentives to entrepreneurs interested in local business opportunities, including the following:

8




2.3.a

Neighborhood Analysis Tenant Improvement Grant - Funded by Miami Downtown Development Authority and the Miami-Dade Empowerment Trust, this program reimburses a new tenant business up to $23.00 per square foot for fixed interior improvements. The program is only available for existing buildings over 25 years old, excludes certain types of businesses, and requires a minimum 5-year lease. The program is available only in the Central Business District and targets the Flagler Street Corridor. Tenant and landlord apply together and applications require renderings and business plan. 

CRA Building Rehabilitation Program - Funded by Miami’s South East Overtown/Park West and Omni Community Redevelopment Agencies, this program assists properties and businesses with exterior improvements up to $65,000.00 with a matching grant.



New Markets Tax Credits - The New Markets Tax Credit (NMTCs) program is nationally recognized for steering low interest, private capital into distressed census tracts to capitalize hard to fund commercial and residential projects. In an effort to bring this focus on the City of Miami, the Economic Development Department created a Community Development Entity (CDE) for purposes of applying and allocating New Markets Tax Credits.



Empowerment Zone - Miami DDA and our partners offer a range of financial incentives that encourage targeted investments in targeted areas.



Enterprise Zone - As custodians for downtown, Miami DDA will help you navigate and understand the market potential of the various sub-districts as well as to identify investment/acquisition opportunities.



State & Local Incentives - The Beacon Council is responsible for facilitating the application process for financial incentives companies may qualify for in the Miami-Dade County area. As Miami-Dade County’s official economic development partnership, The Beacon Council has helped to secure millions of dollars for hundreds of companies over the years.

Several major projects recently completed, under construction and proposed within the Miami DDA district is highlighted as follows: 

Perez Art Museum Miami (PAMM) located at 1075 Biscayne Boulevard anchors the 29acre Museum Park (formerly Bicentennial Park) overlooking Biscayne Bay and includes gardens and sculpture installations. The programmable space is comprising 200,000-SF, of which 120,000-SF is interior and 80,000-SF is exterior. Construction commenced in January 2011 and was completed & opened by the fall 2013 with a total construction, endowment & transition budget of $220 million.

9





2.3.a



Museum Park is also the site of the Patricia & Phillip Frost Museum of Science. This 250,000 square-foot complex will be among the world’s most innovative and sustainable science museums. According to Grimshaw – which received the AIA National Honor Award for its design of the Horno: Museo del Acero in Monterrey, Mexico – the Museum is intended to act as a demonstration of ecological and sustainability principles. The building harnesses energy from water, sun, wind and even museum visitors to power exhibits and conserve resources.

The Museum is structured around a lushly landscaped indoor and outdoor “living core” of terrestrial and aquatic spaces, featuring a 600,000-gallon aquarium facility, a full dome 3-D planetarium, interactive exhibits, innovative technology and two additional wings of exhibition space, learning center and cafes. 

Brickell Citi Centre is the $1.05 billion mixed-use development underway on 9.1-acres straddling S. Miami Avenue at S.W. 7th Street and S.W. 8th Street. The project developer, Swire Properties plans 520,000-SF of luxury retail, 800 residential condominium units, 243 hotel rooms, 93 serviced apartments and an 110,000-SF office tower in the first phase. The first phase is nearing completion with various stages opening during 2016.

10




2.3.a

Neighborhood Analysis The former Capital at Brickell located at 1420 S. Miami Avenue was a proposed vertical, “big box” retail center consisting of 520,000-SF of high end retail with a parking garage on 2.3 acres. However, the developer went into bankruptcy in the wake of the “great recession” and a partnership of China City Construction International Co. and American Da Tang Group acquired the site in December 2014 for $74.74 million for plus $12.0 for pilings & other considerations. The new ownership group is seeking EB-5 Regional Center status and proposing 3.2 million square feet in a mix of condos, retail, and hotel & office towers. Miami WorldCenter is underway and spans over 27-acres between NE 7th Street, north to NE 11th Street; and, NE 2nd Avenue, west to North Miami Avenue.

The Miami World Center

includes a dynamic mix of retail, residential, office, and institutional uses. The total project was master planned in 2008 for a total of 11 to 12 million square feet, but more recently the master developer submitted plans to the City of Miami and received zoning & master development agreement approvals for the first phase of the mixed-use project in October 2014 with site demolition completed.

The firm Elkus-Manfredi Architects designed the first phase, which includes the following: 

Tower 1 – Luma at Miami Worldcenter, a 429-unit luxury rental apartment building that will be developed by ZOM at the southwest corner of NE 2nd Avenue and NE 7th Street, and set a top of a parking garage podium and retail wrap along the NE 7th Street frontage. There is a second residential tower proposed for the west end of the parking podium fronting NE 1st Avenue that is approved for another 386 apartments for a second phase with shared parking garage and shared amenity deck.

11





2.3.a

Neighborhood Analysis Tower 2 – also known as Paramount celebrated the first ground breaking in March 2016 for a 485-unit residential condominium tower in 58-stories. Unit floor plans range from 1,180 to 2,350 square feet, with list prices averaging $1.2 million or $676-PSF. The developer, Dan Kodsi reports approximately 45 percent pre-sales as of the ground breaking. 

Retail – “High Street” destination retail in collaboration with The Forbes Company and Taubman, Miami World Center will develop 450,000-SF to 1,000,000SF of pedestrianoriented shopping streetscape in anchoring the 27-acre development. The promenade will run north and south from northeast 10th street to northeast 7th street and between northeast 1st and 2nd avenues, creating a retail focal point surrounded by residential towers, a hotel and exposition center, and numerous dining and entertainment options. Forbes and Taubman will manage the leasing and marketing.

Future phases include a mixed-use tower in partnership with Newgard Development with 897 apartments, 344 hotel rooms, 38,850-square feet of office space, 21,200 square feet of retail; and the Marriott Marquis Hotel and convention space in partnership with MDM Group described as follows: 

Convention Center & Hotel - Marriott Marquis World Convention Center Hotel will feature approximately 1,800 rooms and 600,000 square feet of meeting, exhibition, and convention space. This hotel tower will have resort amenities, including pool deck with Biscayne Bay views and an 80,000-square-foot outdoor event deck.

EDGEWATER Often called an emerging neighborhood, Edgewater, and particularly East Edgewater, is enjoying resurgence in concert with the downtown Miami central business district.

The Edgewater

neighborhood is surrounded by other emerging & gentrifying submarkets including Omni,

12





2.3.a


Edgewater is driving high density, luxury residential condominium and more affordable loft and rental apartment towers. We also note the recent renovation of the Margaret Pace Park as a neighborhood & community amenity. Edgewater is also known for a mix of historic houses representing a traditional south Florida Mediterranean-style design from Miami’s golden age of architecture remain. However, high density, waterfront condominium towers like Paramount Bay, Platinum, Onyx, Blue, 1800 Biscayne Plaza, Bay House, 1800 Club, and Quantum on the Bay, Bay Parc Plaza, The Crimson, Biscayne Beach, and Opera Tower are replacing the historic charm with young professional and international residents and investors. OMNI CRA/MEDIA AND ENTERTAINMENT DISTRICT (MED) The subject property is located within the Omni CRA (Community Redevelopment Agency), which is generally delineated as being bounded by Interstate 395 to the south, NW 1st Place to the west, NE 20th Street to the north and Biscayne Bay to the east. The Omni CRA includes portions of the Edgewater neighborhood and the Media and Entertainment District (MED), which is anchored by the Adrienne Arsht Center for the Performing Arts and the former 1.07 million square foot Omni mall. Recent accomplishments and projects underway within the Omni CRA are summarized as follows:              

Creation of Margaret Pace Park Rehab and Renovation of Historic Miami Women’s Club Funds Performing Arts Center Super Block Streetscape and debt service Promote new construction of workplace housing in Downtown $5 million North Bayshore Drive road improvement project Creation of dozens of new jobs along Biscayne corridor with support of new businesses $1 million 40-year recertification of Trinity Cathedral Facilitated funding of $50 million for new Port of Miami Tunnel which will create hundreds of jobs within the CRA boundaries. (ongoing) Creation of New Museum Park infrastructure Annual funding of Arsht Performing Arts Center Reconstruction and improvements on the 14th Street Road Project Complete rehabilitation of the Firehouse #2 - new Omni CRA offices Grants Programs for infrastructure improvements to City Hall Restaurant and Braman KIA Motors Proposed purchase of the Miami Entertainment Complex (MEC), which is fully operational ND now called the VIACOM INTERNATIONAL STUDIOS, after its Operating Film and Television production firm.

According to the Arsht Center website & fact sheet, Adrienne Arsht Center for the Performing Arts of Miami-Dade County is Miami-Dade County’s largest-ever public/private-sector partnership, comprised of an $150 million private capital campaign conducted by the Performing Arts Center Foundation and public funding drawn primarily from the county’s Convention

13



Wynwood, Overtown/Park West and the Design District. However, the Biscayne Bay frontage in

2.3.a


Community Redevelopment Agency. The total project expense is $472 million. The Arsht Center was designed by world-renowned architect Cesar Pelli of Pelli Clarke Pelli Architects. The design team includes theater planning and design consultant Joshua Dachs of Fisher Dachs Associates Inc. and acoustician consultancy ARTEC Inc., both of whom have been working on the project since its inception. Situated at the cultural crossroads of the Americas and in the heart of one of the world’s fastestgrowing urban centers, the Adrienne Arsht Center for the Performing Arts of Miami-Dade County is one of the largest performing arts centers anywhere. Strategically located in downtown Miami, the Arsht Center occupies 570,000 square feet along historic Biscayne Boulevard between N.E. 13th and 14th Streets. Principal Components:       

Ziff Ballet Opera House: 2,400 seats. John S. and James L. Knight Concert Hall: 2,200 seats. Carnival Studio Theater: A flexible black-box space designed for up to 300 seats. Parker and Vann Thomson Plaza for the Arts: An outdoor social and performance space linking the two main houses across Biscayne Boulevard. Carnival Tower: An architectural icon from one of Miami’s oldest Art Deco buildings. Peacock Education Center: A 3,500-square-foot workshop and classroom space. Magnificent public art installations by five outstanding artists commissioned by Miami-Dade Art in Public Places.

Programming and Education: 

 





Adrienne Arsht Center Presents: A diverse group of more than 300 performances are selected and presented by the Arsht each year, organized into series. These series include Broadway in Miami, Jazz Roots, the Masterworks Season, Miami Made Festival, and the Summer Season, among others. The Arsht’s internationally acclaimed resident companies: Florida Grand Opera, Miami City Ballet, New World Symphony and America’s Orchestral Academy present many of their Miami performances at the Arsht Center. The Arsht also offers many free community-based performances and programs designed to make the performing arts as accessible to as wide an audience as possible. These include a monthly outdoor family event, a free gospel concert series, an annual volunteer service day and more. Since its inception, the Arsht has supported South Florida artists and the creation of new work through commissions, access to artistic advice from Arsht staff and other arts professionals, and public presentations. The Arsht also collaborates with local arts presenters to support culturally and artistically diverse entertainment. Education programs, many of which are planned with Miami-Dade Public Schools, MiamiDade County Department of Cultural Affairs, the resident companies and community-based organizations, offer unique opportunities for young people and adults to learn about and enjoy the performing arts both in the Arsht and out in their communities. Examples include AileyCamp, which debuted in 2009, and the Learning Through the Arts program, which

14



Development Tax revenues, as well as the City of Miami Omni Redevelopment District

2.3.a

provides live music, theater and dance components via the public school system’s Passport to Culture initiative. The Omni International Mall is owned by the Genting Group Resorts World Miami who acquired both the Omni Mall shortly after buying the Miami Herald site for $236 million in 2011 and later demolished the newspaper’s old building. The Malaysian based gaming & resort corporation initially announced plans for a casino resort, but the Florida Legislature has resisted all efforts to expand gambling outside of pari-mutuels and tribal properties. More recently in March 2017, Resorts World Miami filed plans for a mixed-use project to lease nearly an acre including air rights at the Adrienne Arsht Center Metromover Station and the Omni Bus Terminal for 90 years and is offering to spend $22 million in upgrades to the public transit station such as new stairs, a pedestrian bridge, elevators, escalators and flooring, the developer would build a mixed-use project. Genting’s plans call for a 36-story tower, which would top the terminal station, would include 20 floors of residential units averaging 918 square feet and a 300-room hotel with rooms averaging 350 square feet, the Next Miami reported. The tower would front a “grand public plaza” and the Boulevard Shops, which are being renovated, would also be part of the project.

The contract from Resorts World Miami came in response to a solicitation for proposals from the county in 2015. In addition, the Genting Group filed an application with the FAA to allow two towers of 649 feet each at the former Miami Herald site, but no plans are pending with the city besides a 50-slip mega-yacht marina. Residential Projects – Existing Developments There were a total of twenty (20) residential developments that were constructed between 2004 and 2013, indicating a total of 4,280 residential condominium units. The following chart

15




2.3.a


and Entertainment District: RESIDENTIAL DEVELOPMENTS Name of Development 1800 Biscayne Plaza 1800 Club 23 Biscayne Bay Bay Lofts Blue Cite City 24 Cynergi Gallery Art Moonbay New Wave Onyx Operat Tower Paramount Bay Parc Lofts Platinum Quantum Star Lofts Uptown Lofts Yorker Total Compiled by: CBRE, Inc.

Year Built 2005 2008 2013 2004 2005 2004 2007 2007 2008 2007 2006 2007 2007 2011 2005 2006 2008 2007 2005 2005

Numbe of Units 195 468 96 54 330 436 119 100 176 61 78 118 635 350 72 119 698 47 66 62 4,280

Residential Projects – Under Construction/Planned/Proposed The following are the proposed and/or approved developments at the Omni/Edgewater or Media, Arts and Entertainment District: 

Aria on the Bay - the project will be comprised of a 51-story tower with a total of 648 residential condominium units and 3 commercial spaces. The unit mix will consist of the one-, two-, three- and five-bedroom variety with units ranging from 757 SF to 4,803 SF. In addition, the property will have an office space with 2,737 SF, a commercial unit with 1,199 SF and a restaurant space containing 9,862 SF with a total commercial space of 13,798 SF. It is being developed by the Melo Group with a completion date in 2017.



Bay House - the project will be comprised of a 38-story residential tower with a total of 165 residential condominium units. The unit mix will consist of the two-, three- and fivebedroom variety with units ranging in size from 1,277 SF to 3,549 SF. It is being developed by the Melo Group.



Biscayne Beach – the project will be comprised of an 51-story high-rise development with 399 residential condominium units. The unit mix will consist of the one-, two-, three- and four-bedroom unit variety with the units ranging in size from 885 SF to 2,103 SF. It is being developed by Eastview Development and GTIS Partners with a completion date in 2016.

16



illustrates the developments that have been completed at the Omni/Edgewater or Media, Arts

2.3.a

Neighborhood Analysis The Crimson Residences at Biscayne Bay – the project will be comprised of an 18-story high-rise development with 90 residential condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety with units ranging in size from 827 SF to 1,453 SF. It is designed by IDEA Architects and will be developed by mckafka Development Group. 

Icon Bay – the project will be comprised of 7- and 42-story high-rise buildings with a total of 299 residential condominium units. The unit mix will consist of the one-, two-, three, and four-bedroom unit variety ranging in size from 1,138 SF to 2,416 SF. It is being developed by the Related Group.



Ion East Condo – the project was intended to be a 36-story high-rise mixed-use development with 328 residential condominium units. The unit mix was proposed for one-, two- and three-bedroom unit variety with units ranging in size from 720 SF to 1,803 SF. In addition, the project includes office and retail space. The developer was Sakor Development, but this project has since been cancelled.



One Paraiso Condo - the project will be comprised of a 51-story tower with a total of 272 residential condominium units and ground floor commercial space. The unit mix will consist of the one-, two-, three-, four-, five- and six-bedroom variety with units ranging in size from 1,124 SF to 4,889 SF.

In addition, the property will have a ground floor

commercial space containing 3,000 SF and storage space containing 2,000 SF. It will be developed by the Related Group with a completion date in 2017. 

Paraiso Bay Towers I & II (previously known as the Element) – the project will be comprised of two, 55-story high-rise buildings with a total of 690 residential condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety ranging in size from 1,000 SF to 2,500 SF. It will be developed by the Related Group with a completion date in 2017.



Paraiso Bayviews – the project will be comprised of a 44-story high-rise building with 388 residential and 8 commercial condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety ranging in size from 889 SF to 1,807 SF. It will be developed by the Related Group with a completion date in 2017.



Satori Hotel Residences – the project will be comprised of a 35-story high-rise building with 207 residential condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety ranging in size from 628 SF to 1,410 SF. It will be developed by the Exclusive Trust Realty.



26 Edgewater Condo – the project will be comprised of a 10-story high-rise building with 86 residential condominium units and 10,436 SF of ground floor commercial space. The unit mix will consist of the one- and two-bedroom unit variety ranging in size from 560 SF to 980 SF. It will be developed by Stripey Developments and 4R Development. 17





2.3.a


Miami Downtown Authority and Integra Realty Resources (IRR), presented as follows:

In addition, the Melo Group and local celebrities Gloria & Emilio Estafan are active within the MED submarket with the following projects under construction and planned: 

Melody, located at 245 NE 14 Street is was recently completed as a residential rental apartment tower with ground floor retail. The project features 36-stories with 497-units, 8,500-SF of retail and parking garage with 746-spaces.



14 Plaza/Art Plaza is an under construction residential tower with ground floor retail located at 47-67 NE 14th Street. The 1.02-acre site was assembled in 2014 for a total reported purchase price of $16.0 million or $306-PSF of land. The tower will comprise 650-rental units after a request to upzone the site was denied.



Gloria and Emilio Estefan are preparing to build a mixed-use project two blocks west of the Arsht Center, where public records reflect the acquisition of 51,140-SF at 1400 NE 1st Avenue in two separate transactions in 2000 and 2011, for a total purchase price of about $2 million. Preliminary renderings by Lesley Abravane show a parking garage podium with a mixed-use tower. Emilio Estefan reported to the Herald that the project will include a hotel, banquet halls, rooftop pool and a Bongos Restaurant. Construction will begin after the building is approved and could take several years to achieve approvals and develop.

BRICKELL FINANCIAL DISTRICT The Brickell Avenue financial district commences on the south side of the Miami River to the Rickenbacker Causeway on the south, while Biscayne Boulevard and the downtown Miami central business (CBD) is the submarket to the north of the Miami River. There is a heavy concentration of Class “A,” high-rise office & residential towers, and mixed-use retail, office, hotel & residential towers throughout the district, fronting Brickell Avenue and Biscayne Bay to the north of SE 15th Street. Properties south of SE 15th Road fronting on the east side of Brickell Avenue include primarily high-rise condominium apartment towers, with low-rise condominium apartment buildings, townhouses and spotted single family residences on the west side of Brickell Avenue. Properties on the east side of Brickell Avenue and north of SE 15th Road include both high-rise office and apartment/condominium towers. The area west of Brickell Avenue includes a mix of retail stores, offices, single family homes, duplexes and low to mid rise multifamily apartments, motels, automobile service facilities, storage

18



And, Media & Entertainment District Projects under construction as of February 2017, courtesy of

2.3.a


Brickell West neighborhood are older in age ranging back to the 1920’s. The older ages of the building improvements and intermixed uses have created a somewhat transitional area which is currently experiencing a wave of redevelopment, which includes demolition and redevelopment, as well as renovation of existing structures into small-scale commercial/residential uses. The mixed-use Mary Brickell Village development is located 1 block west of Brickell Avenue and includes a wide array of restaurants, shops and new condominium apartment buildings all in a newly constructed lifestyle center layout. It has been very well received since its opening in 2005. Brickell Key (or Claughton Island) is located at the end of S.W. /S.E. 8th Street, just east of Brickell Avenue and reflects a mixed development of Class "A" office space and luxury condominium and rental apartment buildings, as well as the Mandarin Hotel five-star development. FLAGLER STREET Flagler Street is a 12.4-mile main east–west thoroughfare in Miami. Flagler Street is the latitudinal baseline that divides all the streets on the Miami-Dade County grid plan as north or south streets. (The east-west division is along Miami Avenue) Flagler Street is named after industrialist Henry Flagler and serves as a major commercial east–west highway through central Miami-Dade County, with a mixture of residential neighborhoods (featuring apartment complexes) and strip malls, the commercial presence increasing as SR 968 approaches downtown Miami. It is also a historic street and the core of the center of the downtown Miami central business district. As such, the City of Miami and Downtown Development Authority (DDA) are commencing a $13 million restoration and street scape project featuring wider sidewalks, oak shade trees, new lighting and storm water drains to accommodate cafe tables and pedestrians. The

Miami

Commission

City recently

approved the last of the funding for the project, $920,000 for an upgraded drainage

system

and

removal of old abandoned pipes that have been beneath

Flagler

Street

pavement for decades. The street project timing is simultaneous with New York

entrepreneur

and

developer Moishe Mana who has amassed $200 million +/- worth of properties on or abutting

19



buildings, marine related sales and service businesses. A large number of the properties in

2.3.a


preserving its historic low scale. ACCESS Regional Access to the overall subject area is provided via Interstate 95 (I-95), the Dolphin Expressway (State Road No. 836) leading into State Road No. 395, the Julia Tuttle Causeway (State Road No. 195) and Biscayne Boulevard. Interstate 95 (I-95) serves to connect the subject area with areas of northern/southern Miami-Dade County, as well as to provide access to the primary easterly/westerly expressway systems. The Dolphin Expressway (State Road No. 836) is an easterly/westerly thoroughfare providing access from areas of western Miami-Dade County, as well as the Palmetto Expressway (State Road No. 826) to the overall subject area. State Road Numbers 195 and 395 (Julia Tuttle Causeway) facilitate travel between areas of western MiamiDade County and Miami Beach to the west and east, respectively, while Biscayne Boulevard reflects a well-traveled artery providing northerly/southerly access from S.E. 3rd Avenue to the south, to the Broward County line to the north. Local access in the subject area is provided by Biscayne Boulevard, Brickell Avenue, and South Miami Avenue in a north/south direction, with Flagler Street, and S.W. 8th Street providing primary access in an easterly/westerly direction. Additional access to and within the Central Business District is provided by a mass transit system known as Metrorail and Metromover. Both have a station within walking distance from the subject property. The Metrorail is an elevated track train system, which extends north and west to the City of Hialeah and south to the Dadeland area of Unincorporated Miami-Dade County. The Government Center station serves the core of the Central Business District, with the downtown Metromover emanating from the Government Center Station. The Metromover is a remote controlled elevated track vehicle system, which provides local transportation in the Central Business District. The Metromover track, which has nine stations in the Central Business District, extends southerly to SE/SW 4th Street, easterly to Biscayne Boulevard, northerly to NE/NW 5th Street and westerly to NW 2nd Avenue.

An

extension of the Downtown Metromover extends southerly to the Brickell Avenue area and northerly to the Omni area.

20



Flagler with the vision of turning the street into a restaurant, cultural and retail destination, while

2.3.a

The subject property is within closest proximity to the Omni Loop with a Metromover station located at the Adrienne Arsht Performing Arts Center located at 1300 Biscayne Boulevard or 10 blocks south of NE 23rd Street. ALL ABOARD FLORIDA 

All Aboard Florida’s Miami station will serve as its primary, multimodal hub and a true “live-work-play-commute” urban environment.



From downtown Miami, the new express passenger rail service will transport travelers to Fort Lauderdale, West Palm Beach and Central Florida.

The station and surrounding transit-oriented development will encompass nearly three million square feet and span two sites:

21




2.3.a

Neighborhood Analysis A nine-acre transportation hub in downtown Miami just east of Miami-Dade County Hall – to include mixed-use development with residential, office, commercial, and a retail concourse 

A two-acre multi-use complex in Historic Overtown at the corner of NW 2nd Avenue and NW 6th Street – to include mixed-use development with retail, commercial and parking to support and enhance the transportation hub

Terminal to feature a mix of premiere and unique dining options, shopping, and entertainment: 

Approximately 2 million square feet dedicated to office/commercial development



Approximately 1 million square feet dedicated to residential space



Adequate parking space allocated to support the development



Station to serve as a transportation gateway, iconic destination, and a landmark terminal and symbol of 21st-century Miami

The Miami River is a restricted deep water access waterway that navigates down river to the Biscayne Bay, the Port of Miami and the Atlantic Ocean. Small pleasure boat and cargo freighters navigate the Miami River via draw bridges at Brickell Avenue, Miami Avenue, the FEC railway tracks, S.W. 2nd Avenue and S.W. 1st Street. The Interstate 95 off-ramps are fixed bridges. Overall, regional and local access to and throughout the neighborhood is considered to be very good. DEMOGRAPHICS Selected neighborhood demographics in 1-, 3-, and 5-mile radii from the subject are shown in the following table:

22





2.3.a


1367 N. Miami Avenue Miami, FL Population 2021 Total Population 2016 Total Population 2010 Total Population 2000 Total Population Annual Growth 2016 - 2021 Annual Growth 2010 - 2016 Annual Growth 2000 - 2010 Households 2021 Total Households 2016 Total Households 2010 Total Households 2000 Total Households Annual Growth 2016 - 2021 Annual Growth 2010 - 2016 Annual Growth 2000 - 2010 Income 2016 Median Household Income 2016 Average Household Income 2016 Per Capita Income 2016 Pop 25+ College Graduates Age 25+ Percent College Graduates - 2016

1 Mile

3 Miles

5 Miles

39,827 35,529 30,134 20,988 2.31% 2.78% 3.68%

279,593 258,754 230,134 201,044 1.56% 1.97% 1.36%

549,634 515,355 475,162 439,672 1.30% 1.36% 0.78%

19,278 16,982 13,745 8,111 2.57% 3.59% 5.42%

118,657 108,912 94,210 74,875 1.73% 2.45% 2.32%

229,544 214,669 196,031 172,188 1.35% 1.53% 1.31%

$36,428 $59,725 $30,367 8,532 32.7%

$33,262 $57,828 $25,071 53,686 28.4%

$34,570 $58,774 $25,010 106,433 28.3%

Source: ESRI

GROWTH PATTERNS The subject neighborhood has recently undergone a substantial amount of revitalization and development/redevelopment, as reflected by the various properties that have recently been completed, currently under construction and/or are in the planning stages of development within the CBD and Brickell District. The majority of the projects that are under construction in the subject area typically reflect Class A, upper-end projects. CONCLUSION The subject submarket area was previously a 9-to-5 downtown office district that was recently transformed into a modern & dynamic, 24-hour city center with numerous deliveries of new residential condominium and office towers in the past several years. Overall, it is our opinion that the subject neighborhood will continue to be transformed and grow into a world-class city-center as public and private developments under construction and planned are completed and the neighborhood will continue to remain a desirable area with potential for appreciation over the long term.

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SELECTED NEIGHBORHOOD DEMOGRAPHICS

PLAT MAP

© 2017 CBRE, Inc.


2.3.a

Site Analysis

24

Packet Pg. 52

2.3.a

Site Analysis


Site Analysis The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY Physical Description Gross Site Area Net Site Area Primary Road Frontage Secondary Road Frontage Average Depth Excess Land Area Surplus Land Area Shape Topography Zoning District Flood Map Panel No. & Date Flood Zone Adjacent Land Uses

0.24 Acres 10,637 Sq. Ft. 0.24 Acres 10,637 Sq. Ft. N. Miami Ave 106 Feet NE 14th Street 100 Feet 100 Feet None n/a None n/a Rectangular Improved to road grade T6-24 O, Urban Core Transect Zone 120650 0312 L 11-Sep-09 X Obsolete commercial and under construction multi-family residential

Comparative Analysis

Rating

Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage

Good Good Good Assumed adequate Urban Assumed adequate

Utilities Water Sewer Natural Gas Electricity Telephone Mass Transit

Provider

Adequacy

City of Miami City of Miami Contract service FPL AT&T land lines Metromover station & Metrobus

Other

Yes

No

Detrimental Easements Encroachments Deed Restrictions Reciprocal Parking Rights

Yes Yes Yes Yes Yes Yes

Unknown X X

X X

Source: Various sources compiled by CBRE

25


2.3.a

Site Analysis

The OMNI CRA funded $6.0 million and completed the reconstruction of NE 14th Street streetscape enhancements between NE 2nd Avenue and NW 1st Avenue including wider sidewalks, decorative pavement, new curb & gutter and a 12” water main upgrade. ENVIRONMENTAL ISSUES CBRE, Inc. is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. 

We strongly recommend the client engage a qualified environmental engineer to perform a Phase I environmental assessment of the subject property.

ADJACENT PROPERTIES The adjacent land uses are summarized as follows: North: South: East: West:

14 Plaza, an under construction residential/retail tower Retail and commercial store fronts Strip retail/bar & nightclub property N. Miami Avenue frontage

The adjacent properties are a mix of vintage retail, obsolete commercial and new mixed use development. CONCLUSION The site is a strategic corner location within the Omni CRA and Media & Entertainment District. This subject site and surrounding parcels are all zoned for high density, mixed-use development that has been attracting the interest of multi-family residential developers.

26



INFRASTRUCTURE


2.3.a

Site Analysis

FLOOD PLAIN MAP

27

© 2017 CBRE, Inc.

Packet Pg. 55

2.3.a

Improvements Analysis

The following chart shows a summary of the improvements. IMPROVEMENTS SUMMARY Property Type

Office

Number of Buildings

2

Number of Stories Year Built

1&2 1924

Gross Building Area

14,820 SF

Net Rentable Area

14,820 SF

(Mixed Use)

Area Breakdown Building 1 - 1st Floor

9,338 SF

Building 1 - 2nd Floor

2,396 SF

Building 2 - One Story Site Coverage Land-to-Building Ratio Floor Area Ratio (FAR)

3,086 SF 85.6% 0.72 : 1 1.39

Parking Spaces:

None

Parking Ratio (per 1,000 SF NRA )

Zero

Improvement Summary Description Foundation Reinforced concrete Frame Concrete block, masonry, steel & wood Exterior Walls Painted stucco Interior Walls Plaster over wood strips Roof Tar & gravel 0ver flat deck Ceiling Exposed wood beam, plaster and drywall HVAC System Non-functioning Exterior Lighting Non-functioning Interior Lighting Non-functioning Flooring Concrete Plumbing Non-functioning Elevators/Stairwells Side stairwell entry to 2nd floor Life Safety and Fire None Protection Amenities None Furnishings None Parking None Landscaping Urban streetscape

Good X X

Comparative Rating Avg. Fair

Poor

X X Unknown condition X X X X X X X X X N/A X X

Source: Various sources compiled by CBRE

OVERALL CONDITION The existing improvements are essentially in shell condition with poor interior condition and good facade condition given the age & character of the property history. HISTORIC PRESERVATION The subject was originally built in 1924 for Citizens Bank and currently utilized by the owner as a film set and equipment storage. According to the City of Miami Historic & Environmental Preservation (HEP) Board Authority and the Miami 21 City Code, Chapter 23, the Transferable Development Rights (TDRs) is a vehicle that enables a historic property owner to transfer its

28




2.3.a


height or intensity to its property. Owners of a locally or nationally designated historic property that is located either in a T-4 O or higher transect zone, or is a multi-family residence located in a T4-R transect zone, may permanently sell any additional potential capacity (unused development rights) to a property located in a T-6 transect zone. The purpose of the TDR for designated historic properties is to encourage the preservation of historic buildings instead of demolition or renovations that would diminish the integrity of the property’s historic value. By creating a monetary value for the unused capacity, that would otherwise be lost when the owner maintains the historic building, the City of Miami hopes to save pieces of its history. The subject property could be eligible for a Certificate of Transfer of Development Rights (TDRs), subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff and a recordation of a restrictive covenants, which may include a stabilization and maintenance plan. ECONOMIC AGE AND LIFE CBRE, Inc.’s estimate of the subject improvements effective age and remaining economic life is depicted in the following chart: ECONOMIC AGE AND LIFE Actual Age Effective Age MVS Expected Life Remaining Economic Life Accrued Physical Incurable Depreciation

93 Years 93 Years 100 Years 7 Years 93.0%

Compiled by CBRE

The remaining economic life is based upon our on-site observations and a comparative analysis of typical life expectancies within the submarket, as well as published by Marshall and Swift, LLC, in the Marshall Valuation Service cost guide. While CBRE, Inc. did not observe anything to suggest a different economic life, a capital improvement program could extend the life expectancy. CONCLUSION Overall, there are no known factors that adversely impact the marketability of the improvements as a potential historic restoration project for an owner/user.

29



unused development capacity to another property owner who then is allowed to add “bonus”

2.3.a

Zoning

The following chart summarizes the subject’s zoning requirements. MIAMI 21 ZONING Zone Subcategory Description

Uses Permitted; Allowed by Right

Allowed by Warrant

Allowed by Exception Category Lot Area Lot Width Lot Coverage Floor Lot Ratio Frontage at Front Setback Open Space Requirement Density

T6-24 O, Urban Core Transect Zone O, Open The urban core zone consists of the highest density and greatest variety of uses, including civic buildings of regional importance. A network of small blocks has thoroughfares with wide sidewalks, with steady tree planting and buildings set close to the frontage with frequent doors & windows.

Single family residence, community residence, two-family residence, multi-family housing, dormitory, home office, live-work, bed & breakfast, inn, hotel, office, entertainment establishment, food service establishment, general commercial, place of assembly, recreational establishment, recreational facility, religious facility, learning center, pre-school, and research facility. Auto-related commercial establishment, marine related commercial establishment, open air retail, community facility, community support facility, infrastructure & utilities, marina, public parking, transit facilities, childcare, college or university, elementary school, middle or high school, and special training or vocational. Alcohol beverage service establishment and regional activity complex. Zoning Requirement 5,000-SF minimum / 100,000-SF maximum 50 feet minimum 80% maximum (see code for specific Transect Zone regulation) a. 7 with 30% additional Public Benefit or b. 16 with 40% additional Public Benefit 70% minimum 10% lot area minimum 150 dwelling units per acre Article 4. Diagram 9 Residential Density Increase - Comprehensive Neighborhood Plan;

Commercial Setbacks; Principal Front Setback Secondary Front Setback Side Setback (Residential) Rear Setback Private Frontages; Common Lawn Porch & Fence Terrace or LC Forecourt Stoop Shop front Gallery Arcade Building Height (Stories); Principal Building Benefit Height (abutting T6, T5 & T4 only) Off-Street Parking; Residential Lodging Office Commercial Civic Civil Support Educational Childcare Parking Reductions

Omni - 500 units/acre Southeast Overtown - 300 units/acre Park West - 500 units/acre CBD - 1,000 units/acre River Quadrant - 500 units/acre Little Havana - 200 units/acre Brickell - 500 units/acre Maximum area of 55,000-SF per establishment, except for public storage facilities. 10 feet minimum 10 feet minimum -0- feet minimum -0- feet minimum Prohibited Prohibited Prohibited Permitted Permitted Permitted (T6-24 L & T6-24 O) Permitted Permitted 2 story minimum / 24 story maximum, plus Public Benefit 32 stories (refer to Article 5 for specific Transect Zone regulation) 1.5 spaces / dwelling unit + 1 space for every 10 units for visitor parking 1 space / every 2 lodging units + 1 space for every 15 units for visitor parking 1 space / 800-SF of office use 3 spaces / every 1,000-SF of commercial uses 1 space / every 5 seats 1 space / every 1,000-SF of civil support use 2 space / every 1,000-SF 1 space for the owner/operator and 1 space for each employeee plus 1 drop-off space for every 10 clients cared for. See Article 4, Table 5 in Miami 21 based on Transit Corridor, bike rack, Metromover Station, off-site provision and/or shared parking provisions. Parking ratio may be reduced within ½ mile radius of TOD or within 1/4 mile radius of a Transit Corridor by 30% by process of Waiver, except when T6 is within 500-feet of T3. Parking may be provided by ownership or lease offsite within 1,000 feet by process of Waiver, except when site is within 500 feet of T3.

Source: Miami 21, As Adopted - October 2009, Revised May 2010 and Amended May 2015

30



Zoning

2.3.a

Zoning

The improvements represent a legally-nonconforming use and, if damaged, may or may not be restored without special permit application. Additional information may be obtained from the City of Miami Planning & Zoning Department, as well as, the City of Miami Historic & Environmental Preservation (HEP) Board Authority. TRANSFERABLE DEVELOPMENT RIGHTS If the subject property owner is interested and the City of Miami Historic & Environmental Preservation (HEP) Board Authority desires to preserve the existing bank office building instead permitting demolition or renovations that would diminish the integrity of the property’s historic value, then the subject property could be eligible for a Certificate of Transfer of Development Rights (TDRs). The Certificate of Transfer of Development Rights (TDRs) is subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff including a recordation of a restrictive covenants, which may include a stabilization and maintenance plan. As previously noted, the Transferable Development Rights (TDRs) is a vehicle that enables a historic property owner to transfer its unused development capacity to another property owner who then is allowed to add “bonus” height or intensity to its property. Owners of a locally or nationally designated historic property that is located either in a T-4 O or higher transect zone, or is a multi-family residence located in a T4-R transect zone, may permanently sell any additional potential capacity (unused development rights) to a property located in a T-6 transect zone. The potential sell-off of the TDRs is calculated based on the spread between the existing building square footage and the “as of right” zoning FAR/FLR (floor-area-ratio/floor-lot-ratio), subject to approval and issuance of a Certificate of TDRs from the City of Miami. In addition, the City of Miami has amended the multiplier used in the TDR calculation to 225% per square foot of the available, unused development potential permitted by the underlying Transect Zone, thereby recognizing the significance of Miami’s Locally Designated Historic Resources and the additional requirements associated with the rehabilitation of a historic property. TDRs are currently being valued in downtown Miami by property owners & merchant developer’s transactions, and by development fees set by the City of Miami Planning & Zoning Department and the City of Miami Historic Preservation Board. As such, we have compiled the following transaction summary of recent TDR transactions.

31



ANALYSIS AND CONCLUSION

2.3.a

Zoning

Sale Price

TDRs

Price Per TDR

Icon Bay, 421 NE 28th Street, Miami, FL

$660,000

67,716

$9.75

Jul-13

Echo Brickell, 1451 Brickell Ave., Miami, FL

$1,214,400

142,868

$8.50

Sale

Jan-14

Atton Hotel, 1500 SW 1st Ave., Miami, FL

$412,500

50,000

$8.25

Bayside Motor Inn, 5101 Biscayne Boulevard, Miami, FL

Sale

Oct-14

District 36, 3635 NE 1st Ave., Miami, FL

$913,750

107,500

$8.50

5


Sale

Nov-14 Brickell Heights, 824 South Miami Ave., Miami, FL

$1,039,601

122,306

$8.50

6


Sale

Jan-15

Brickell Ten, 1010 SW 2nd Ave., Miami, FL

$602,616

71,014

$8.49

7

Cushman School, 592 NE 60th Street, Miami, FL

Sale

Feb-15

SLS Lux, 801 South Miami Ave., Miami, FL

$1,022,884

131,139

$7.80

8

New Yorker Hotel, 6500 Biscayne Blvd., 570 NE 66th Street & 589 NE 65th Street, Miami, FL

Sale

Jul-15

One Pariaso, 701 NE 31st Street, Miami, FL

$165,760

22,400

$7.40

9

7541 Bicayne Blvd., Miami, FL

Contract

Jan-17

Maizon, 1100 SW 2nd Ave., Miami, FL

$20,264

2,533

$8.00

Property Location/ Sending Site

Transaction Type Date

1

Vagabond Motel, 7301 Biscayne Blvd., Miami, FL

Sale

Jun-13

2

Royal Motel, 7411 & 7421 Biscayne Blvd., Miami, FL

Sale

3

7416 Biscayne Boulevard, Miami, FL

4

No.

Receiving Site

Compiled by CBRE

Based on the foregoing presentation, we estimate TDRs to be in the range of $8.00 to $8.50 per square foot of FAR, as of the effective date of this appraisal. In turn, we have estimated the potential contributory value of TDRs for the subject property, if the property owner were to seek historic preservation, as follows: 

T6-24 O, Urban Core Transect Zone permits an FLR of 7.0 x 10,637-SF of site area equals 74,459-SF of FAR or “as of right” potential gross floor area. The 74,459-SF of FAR minus 14,820-SF of existing building area equals 59,639-SF x 2.25 TDR Multiplier = 134,187.75-SF of TDRs.



134,187.75-SF of TDRs x $8.00 to $8.50-PSF = $1,073,502 to $1,140,595.



Rounded to $1,100,000 for potential TDR sell-off.

The foregoing calculation is subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff and a recordation of a restrictive covenants, which may include a stabilization and maintenance plan. It is important to note that we are valuing the subject property As Is, including any contributory value of the TDRs. This is consistent with the majority of comparable sales analyzed that have local or national historic landmark potential and have all traded with the TDRs intact.

32



SUMMARY OF TRANSFERABLE DEVELOPMENT RIGHT COMPARABLE SALES

2.3.a

Tax and Assessment Data

The following summarizes the local assessor’s estimate of the subject’s market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. The CBRE estimated tax obligation is also shown. AD VALOREM TAX INFORMATION Assessor's Market Value 01-3136-009-0220

2015 $1,291,600

2016 $1,398,400

Pro Forma $4,500,000

Subtotal

$1,291,600

$1,398,400

$4,500,000

Assessed Value @

100% $1,291,600

100% $1,398,400

65% $2,925,000

2.270320

2.229370

2.229370

$29,323 $28,151

$31,176 $29,928

$65,209 $62,601

General Tax Rate

(per $100 A.V.)

Total Taxes Less: 4% Early Pay Discount Source: Assessor's Office

The local Assessor’s methodology for valuation is sales comparison approach. The next reassessment of the subject is scheduled for January 1, 2018. If the subject sold for the value estimate in this report, a reassessment at that value could occur. According to a representative of the Miami-Dade County Department of Revenue, there are no delinquent property taxes encumbering the subject. TAX COMPARABLES As a crosscheck to the subject’s applicable real estate taxes, CBRE, Inc. has reviewed the real estate tax information according to Miami-Dade County for comparable properties in the market area. The following table summarizes the comparables employed for this analysis: RATIO OF ASSESSED VALUE TO SALE PRICE Old Post Office & Courthouse

Power Studios

140 Building

Dade Commonwealth Building - As Is

Wynwood Treehouse

Subject

1914 25,500

1950 22,341

1925 25,375

1927 43,265

1946 7,806

1924 14,820

Tax Year Assessor's Market Value

2016 $6,300,000

2016 $4,623,175

2016 $5,260,375

2016 $5,775,000

2016 $3,139,962

2016 $1,398,400

Date of Sale Sales Price

6/12/2014 $6,500,000

9/23/2014 $7,300,000

1/30/2015 $7,750,000

11/20/2015 $9,200,000

6/30/2016 $3,850,000

97%

63%

68%

63%

82%

Comparable Sale Year Built NRA (SF)

AV Ratio Source: Assessor's Office

33




2.3.a


Based on the foregoing, the total taxes for the subject have been estimated as $62,601, including the 4% early pay discount, based upon an assessed value of $2,925,000 or $197 per square foot.

This is above the current and historical assessment, however, is considered a realistic

scenario based on the “just value” statute, less cost of sale. For purposes of this analysis, CBRE, Inc. assumes that all taxes are current.

34



CONCLUSION

2.3.a

Market Analysis

Primary data sources utilized for this analysis include REIS, Inc., CoStar Group, Inc. and CB Marketview reports. The subject is in the Miami market and is considered an urban Class “C” office building, subject to restoration/renovation. Miami-Dade County Office, Q4 2016 Improving market fundamentals and limited development continue to contribute to the tightening vacancy, while tenants competing for premium space continue to drive rent growth in 2017. Miami-Dade County market highlights summarized as follows:



Vacancy declined to 11.6% in Q4 2016, a reduction of 30 basis points (bps) quarter-overquarter and 120 bps year-over-year, declining for 21 consecutive quarters.



Net absorption during Q4 2016 was 351,554 sq. ft., with 82,370 sq. ft., or 23.4%, in the downtown submarkets and 269,184 sq. ft. in the suburban submarkets. Year-to-date net absorption was 999,368 sq. ft., slightly under net absorption in 2015 of 1.1 million.



Miami’s CBD had over $2.5 billion in investment sales since 2012, which was 50% of all office investment sales in Miami-Dade County.



Among the suburban submarkets, Coral Gables had $868.9 million in investment sales since 2012, the largest by dollar amount, followed by Airport/Doral and Miami Beach.

35



Market Analysis


2.3.a

Market Analysis

36

© 2017 CBRE, Inc.

Packet Pg. 64

2.3.a

Market Analysis

Miami-Dade’s steady economic growth is attracting more businesses and driving corporate expansions. A strong economy characterized by job growth and rising wages is setting the stage for another year or two of continued growth. The tightening labor market is motivating employers to focus on attracting and retaining talent resulting in increased wages for the first time in eight years. Economists expect wages to continue to rise in 2017 but not at the rate seen in the previous recovery of the mid-2000s. The highest increases in job growth in the Miami metropolitan area were in professional and business services; trade, transportation & utilities, and leisure and hospitality. According to the Bureau of Labor Statistics, the Miami metropolitan area recorded an increase of 18,000 jobs in the twelve months prior to December 2016, representing a year-over-year gain of 1.6%. Unemployment declined to 5.0% in November 2016, down by 740 basis points (bps) since its highest levels in 2009 at 12.4%. LEASING ACTIVITY Landlords are optimistic as asking rents continue to rise at a substantial pace and vacancy drops to the lowest rate since 2009. The average asking lease rate for Class A properties in the CBD climbed to $51.61 per sq. ft., an increase of $4.63 year-over-year or 9.9%. Average asking rates for Class A properties in the suburban submarkets rose to $36.92, an increase of $1.90 yearover-year or 5.4%. Total vacancy declined to 11.6% in Q4 2016, down 30 basis points (bps) quarter-over-quarter and 120 bps year-over-year. Leases executed during Q4 2016 totaled approximately 621,000 sq. ft. in 120 transactions. Tenants seeking space in the market have requirements that total an additional 1.2M sq. ft. Creative industries and media entertainment were the top industries in the market, followed by business services.

37



ECONOMIC INFLUENCE

2.3.a

INVESTMENT SALES ACTIVITY Miami remains one of the world’s most attractive real estate markets because of its affordability on a relative cost basis compared to other global gateway cities. The market is perceived by some foreign investors as a relatively young city with promising growth potential. Despite the strengthening of the U.S. dollar, cross-border capital investments increased in 2016 and growth is expected to continue into 2017 though perhaps at a more moderate level. Miami’s CBD, which includes Downtown and Brickell, and Coral Gables remain the prime areas for investment due to their long-term growth potential. Miami’s CBD had over $2.5 billion in investment sales since 2012, which is 50% of all office investment sales in Miami-Dade County with an average sale price of $365.51-PSF.t. Among the suburban submarkets, Coral Gables had $868.9 million in investment sales since 2012, the largest by dollar amount, followed by Airport/Doral and Miami Beach with an average sale price of $230.82-PSF.

38



Market Analysis

2.3.a

Market Analysis

New inventory in 2016 totaled 352,783 sq. ft., which included Two Brickell City Centre delivering

its second office tower of

129,676 sq. ft. in the fourth quarter. This is just 22% of total completions in 2010 at the height of construction, when 1.6 million sq. ft. hit the market. Though construction increased to 964,273 sq. ft. in Q4 2016, the nine projects under construction

currently

will

inventory by only 2.0%.

increase

office

Two and Three

MiamiCentral will add a total of 280,000 sq. ft. to the current inventory, and 800 Waterford Way will add 246,085 sq. ft. New projects that broke ground included Canal Park Office at 3323 NE 163rd Street in North Miami scheduled to deliver 184,689 sq. ft., Giralda Place delivering 65,000 sq. ft. at 2222 Ponce de Leon Boulevard in Coral Gables and Brickell Heights Office delivering 30,000 sq. ft. of office space in the mixeduse property at 850 South Miami Avenue. OUTLOOK The commercial property market landscape in 2017 will be characterized by continued strong leasing and sale fundamentals. As for the economic landscape, the Miami market continues to grow moderately and add jobs. Employment gains continue to be strong, with unemployment dropping to 5.0 % in Q4 2016, contributing to demand for housing, office, retail and industrial properties. While many speculate about the end of the current economic cycle, the fact that the recovery has been slow and steady has led experts to believe the current growth cycle will continue into the foreseeable future.

39



DEVELOPMENT

2.3.a

Highest and Best Use

In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:    

legally permissible; physically possible; financially feasible; and maximally productive.

The highest and best use analysis of the subject is discussed below. AS VACANT The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As presented in the Market Analysis section of this report, there are a variety of mixed-uses that can be developed on the subject site if vacant, including office, retail, residential & hotel, and all are enjoying different levels of success as the economy continues to grow. Although the potential for corporate & government office uses is an obvious component in the mix of uses, the office component is lagging in secondary locations outside of the Brickell Financial District and downtown CBD. However, the remaining mix of uses, specifically residential, boutique hotel and retail are on a positive upward trend in the peripheral downtown Miami CBD submarkets including Edgewater, Media & Entertainment District and Midtown. The mixed-use trend for residential rental, boutique hotel and retail is based on the velocity of land acquisitions, projects under construction and proposed pipeline projects. However, financial feasibility and maximum profitability will ultimately be determined by the owner/developer based on projected development costs and revenue projections/generation. AS IMPROVED As improved, the subject involves an historical structure that could be eligible for preservation, restoration and repurposing to office, retail, restaurant, bar/lounge & night club and-or an entertainment use. However, the existing improvements have a nominal contribution of less than 10% of overall value when compared to Land Value As If Vacant. In addition, the cost of preservation and restoration could be very costly. Therefore, it is our opinion that the highest and best use of the subject, as improved, would be either redevelop with mixed-use residential rental tower with ground floor retail or restore/renovate for owner/occupancy. The restoration/renovation for owner/occupancy is the most productive use As Improved because the cost of restoration/renovation for a tenant occupant under an income producing investment would probably not generate sufficient net revenue to support the costs to restore/renovate plus

40




2.3.a


necessary to secure a tenant occupant. In addition, the restoration/renovation scenario for an owner/user could produce TDR sell-off to the owner that would help as an off-set to the cost of restoration/renovation.

41



the discounting necessary for lease-up costs including risk, carry and real estate commissions

2.3.a

Appraisal Methodology

In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. COST APPROACH The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. SALES COMPARISON APPROACH The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. INCOME CAPITALIZATION APPROACH The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. METHODOLOGY APPLICABLE TO THE SUBJECT In valuing the subject, only the cost approach including land valuation and the sales comparison approach are applicable and have been used. The income approach is not applicable in the estimation of market value due to the unknown costs of restoration/renovation necessary to achieve lease-up under an income producing scenario. Furthermore, the highest & best use is for an owner/user with potential for TDR sell-off. The exclusion of said approach(s) is not considered to compromise the credibility of the results rendered herein.

42



Appraisal Methodology

2.3.a

Land Value

The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE LAND SALES No.

Property Location


Zoning

Actual Sale Price

Adjusted Sale Price

1

Size (Acres)

Size (SF)

Density Allowable Allowable Indicated (UPA) Units Bldg. Area (SF) FAR

Price Per SF

Price Per SF (FAR)

1

222, 230 and 234 Northwest 24th Street Miami, FL 33127

Sale

Nov-15

T5-O, Urban Center & NRD-1

$5,850,000

$5,850,000

0.34

14,625

---

---

90,000

6.15

$400.00

$65.00

2

37-47 NE 15th Street 1523 & 1529 NE Miami Ct. & 1502 NE Miami Pl. Miami, FL 33132

Sale

Dec-15


$11,500,000

$13,464,918

0.85

37,049

149.3

127

259,340

7.00

$363.44

$51.92

3

511 NE 15th Street Miami, FL 33132

Sale

Feb-16

T6-36b O, Urban Core Transect Zone

$8,000,000

$8,000,000

0.27

11,700

148.9

40

140,400

12.00

$683.76

$56.98

4

328-342 NW 29th Street Miami, FL 33127

Sale

Sep-16

T6-8 O, Urban Core & NRD-1

$6,300,000

$6,300,000

0.48

21,000

---

---

---

---

$300.00

---

5

28-30 NE 14th Street Miami, FL 33132

Sale

Nov-16


$6,098,900

$6,098,900

0.39

17,180

---

---

---

---

$355.00

---

Contract

Feb-17


$5,500,000

$5,500,000

0.24

10,637

150.0

36.00

74,457

7.00

$517.08

$73.87

Subj.

1367 North Miami Avenue, Miami, Florida

1

Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE

The sales utilized represent the best data available for comparison with the subject and were selected from the greater Miami area within a 1-to-15 block radius of the subject. These sales were chosen based upon location, zoning/density and highest & best uses.

43



Land Value

2.3.a

Land Value

Land Sale One This comparable represents the acquisition of a 0.34-acre commercial site for retail/office development within the Wynwood District of Miami. The site is located at 222-234 NW 24th Street, Miami, Florida, immediately west of Panther Coffee and NW 2nd Avenue. This area is the heart of Wynwood where recent and proposed residential and mixed-use developments are present, and within the NRD-1, Neighborhood Revitalization District. The buyer, RedSky Capital, is proposing an 8-story, loft-style office building with ground floor retail, a breezeway for pedestrians and a rooftop terrace. RedSky paid $5,850,000, or $400-PSF of land and hired Arquitectonica to design the project, which is known as "Cube Wynwood". Permits were secured in late 2016, construction is slated to begin Q1 2017, and delivery in 2018. We adjusted Land Sale 1 upwards for interior, non-corner location and inferior frontage when compared to the subject property corner/North Miami Avenue & NE 14th Street frontage. Land Sale Two This comparable land sale comprises a two-part land assemblage & swap with an abutting owner/developer. The buyer, Miami Plaza, LLC is identified as The Melo Group who is one of the most active residential condo & rental tower developers in the submarket. The primary acquisition included 18,516-SF fronting the northeast corner of NE 15th Street and NE Miami plus two lots, totaling 10,290-SF, of non-contiguous site area for a purchase price of $11,500,000, facilitated with a $4,642,000 loan assumption from a private lender. The two, non-contiguous lots were subsequently swapped with the abutting owner/developer for the secondary acquisition comprising 18,533-SF along the northwest corner of NE 15th Street and NE Miami Place for a purchase price of $1,964,918. The abutting owner/developer paid The Melo Group $1,216,500 for the two, non-contiguous lots totaling 10,290-SF and subsequently taking control of 37,252-SF of contiguous site area fronting NE 16th Street, thereby splitting the entire block between the two developers. The acquired site is zoned T6-24 O, which allows a variety of residential and commercial uses with a maximum Floor Lot Ratio of 7.0 plus 30% public benefit and 150 dwelling units per acre. The close proximity to the 50 NE 15th Street School Board Metromover Station permits parking ratio reductions of 30% based on TOD (Transit Oriented Development) and Transit Corridor. Plus, a modified residential density increase to 500 units per acre within the Omni neighborhood. We adjusted Land Sale 2 upwards for larger size value relationship and for interior frontage when compared to the subject property North Miami Avenue frontage. Land Sale Three This comparable land sale is located at the northeast corner of Biscayne Boulevard & NE 15th Street in the Miami Arts & Entertainment District in downtown Miami, Florida. This is a strategic location with high density redevelopment potential, mass transit connectivity, setback Biscayne 44



DISCUSSION/ANALYSIS OF LAND SALES

2.3.a

Land Value

the Performing Arts, Museum Park, the American Airlines Arena and Bayside Marketplace. The buyer is an owner/developer of boutique hotels in south Florida and entered into a short term sale/leaseback with the seller who previously acquired the property in March 1998 for $440,000 and operated Sun Electronics.

The existing building was originally developed in 1941 and

comprises 4,440-SF. The seller renovated the property including roof top solar energy panels and other energy efficient features as part of the business and advocacy for alternative energy sources.

The seller listed the property for $8,998,000 as a "for sale by owner" redevelopment

opportunity. We adjusted Land Sale 3 downwards for superior frontage along Bayshore Drive & NE 15th Street, downwards for superior location east of Biscayne Boulevard and downwards for superior zoning/density when compared to the subject property. Land Sale Four This comparable land sale comprises three (3) lots with two (2) obsolete office/warehouse buildings and a surface parking that date back to the 1950s & 1960s. The properties were tenant occupied by 328 Design Group and HES-Group. The site location is along the south side of NW 29th Street and within the NRD-1 Neighborhood Revitalization District boundary. The site is zoned T6-8 O, Urban Core Transect Zone that permits up to 150 dwelling units per acre and 2 to 8 story building height limits plus a 4-story benefit height and favorable setback & off-street parking requirements. The buyer is a local investor/speculator. We adjusted Land Sale 4 upwards slightly for larger size/value relationship and upwards for inferior, non-corner and inferior street frontage, and upwards for inferior location at the north edge of the Wynwood Arts District when compared to the subject property North Miami Avenue & NE 14th Street frontage. Land Sale Five This comparable sale is an obsolete retail strip building dating to 1945 that was previously owned by night club entrepreneur Carmel Ophir who operated Barfly and The Vagabond at this location. In 2014, the property traded to Russell Bruce (a.k.a. Global Adversity, LLC) for $2,700,000 with the transaction facilitated with a $2,497,500 SBA loan in favor of C1 Bank. Russell Bruce combined & renovated several of the former bar spaces to open Railroad Blues. However, the C1 Bank & the loan was acquired by Bank of Ozarks and there was pressure from the lender who forced a loan payoff and sale to A & E District 14 Street LLC. That transaction was followed by a sell-off to Coral Ritz Residences, LLC for $6,098,900. The site fronts NE 14th Street and is improved with a 5,400-SF strip retail building built-out with bar/night club interiors and fenced patio bar area. We adjusted Land Sale 5 upward slightly for larger size/value relationship and upwards for inferior street location when compared to the subject North Miami Avenue frontage.

45



Bay views from future upper floors, and high scoring walkability to the Adrienne Arsht Center for

2.3.a

Land Value

Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. LAND SALES ADJUSTMENT GRID Comparable Number Transaction Type Transaction Date Zoning

Actual Sale Price 1

Adjusted Sale Price Size (Acres) Size (SF) Density (UPA) Allowable Units Allowable Bldg. Area (SF) Indicated FAR Price Per SF Price Per Bldg. Area Price Per Unit Price ($ PSF) Property Rights Conveyed 1 Financing Terms Conditions of Sale Market Conditions (Time) Subtotal Size Shape Corner Frontage Topography Location Zoning/Density Utilities Highest & Best Use Total Other Adjustments Value Indication PSF of Site Value Indication PSF of FAR Value Indication Per Unit

1 Sale Nov-15 T5-O, Urban Center & NRD-1 $5,850,000 $5,850,000 0.34 14,625 ----90,000 SF 6.15 $400.00 $65.00 --$400.00 0% 0% 0% 0% $400.00 0% 0% 5% 5% 0% 0% 0% 0% 0% 10% $440.00 $71.50 ---

2 Sale Dec-15 T6-24 O, Urban Core Transect Zone $11,500,000 $13,464,918 0.85 37,049 149.32 127 Units 259,340 SF 7.00 $363.44 $51.92 $106,023 $363.44 0% 0% 0% 0% $363.44 10% 0% 0% 5% 0% 0% 0% 0% 0% 15% $417.96 $59.71 $121,928

3 4 5 Sale Sale Sale Feb-16 Sep-16 Nov-16 T6-36b O, T6-8 O, Urban T6-24 O, Urban Core Core & NRD-1 Urban Core Transect Zone Transect Zone $8,000,000 $6,300,000 $6,098,900 $8,000,000 $6,300,000 $6,098,900 0.27 0.48 0.39 11,700 21,000 17,180 148.92 ----40 Units ----140,400 SF ----12.00 ----$683.76 $300.00 $355.00 $56.98 ----$200,000 ----$683.76 $300.00 $355.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $683.76 $300.00 $355.00 0% 5% 5% 0% 0% 0% 0% 5% 0% -10% 5% 5% 0% 0% 0% -10% 10% 0% -20% 0% 0% 0% 0% 0% 0% 0% 0% -40% 25% 10% $410.26 $375.00 $390.50 $34.19 ----$120,000 -----

Subject Contract Feb-17 T6-24 O, Urban Core Transect Zone $5,500,000 $5,500,000 0.24 10,637 150.00 36 Units 74,457 SF 7.00 $517.08 $73.87 $152,778 $517.08 0% 0% 0% 0% $517.08 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $517.08 $73.87 $152,778

1

Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE

SUPPLEMENTAL COMPARABLE LISTING DATA We also considered active listings within the Media & Entertainment District presented as follows: SUMMARY OF COMPARABLE LAND LISTINGS Property Location

Transaction Type Status

A

45 NE 16th Street, Miami, FL

Listing

B

1317 N. Miami Ave., Miami, FL

Listing

No.

Subject 1367 North Miami Avenue, Miami, Florida

Contract

Under Contract

Zoning T6-24 O, Urban Core Transect Zone

Active T6-24 O, Urban 650 DOM Core Transect Zone Feb-17


List Price

Size (Acres)

Size (SF)

Price Per SF

$14,000,000

0.67

29,100

$481.10

$7,500,000

0.41

18,000

$416.67

$5,500,000

0.24

10,637

$517.08

Compiled by CBRE

46



SUMMARY OF ADJUSTMENTS

2.3.a

Land Value

The comparables sales presented produced an overall unadjusted value indicator range from $300.00 to $683.76 per square foot of rentable area. After considering and-or applying adjustments for property rights conveyed, financing terms & conditions, conditions of sale, market conditions (time), size, shape, corner/frontage, topography, location, and zoning density, the range of value indicators was narrowed substantially to $375.00 to $440.00 per square foot of site area. Based on the preceding analysis, Comparables 2 & 4 were the most representative of the subject site, and warranted greatest consideration because of recent sale transaction dates, location and zoning/density. In conclusion, a price per square foot of site area near the midpoint of the unadjusted, at the low end of the active listing range and within the narrow adjusted range of value indicators was most appropriate for valuing the subject site As If Vacant and available to be put to its Highest & Best Use. The following table presents the land valuation conclusion:

CONCLUDED LAND VALUE AS IF VACANT $ PSF $390.00 $410.00

Subject SF x x

10,637 10,637

Indicated Value As If Vacant: (Rounded $ PSF)

Total = =

$4,148,305 $4,361,039 $4,250,000 $399.56

Compiled by CBRE

47



CONCLUSION

2.3.a

Cost Approach

In estimating the replacement cost new for the subject, the following methods/data sources have been utilized (where available): 

the comparative unit method has been employed, utilizing the Marshall Valuation Service (MVS) cost guide, published by Marshall and Swift, LLC;

MARSHALL VALUATION SERVICE Direct Cost Salient details regarding the direct costs are summarized in the Cost Approach Conclusion at the end of this section. The MVS cost estimates include the following: 1. average architect’s and engineer’s fees for plans, plan check, building permits and survey(s) to establish building line; 2. normal interest in building funds during the period of construction plus a processing fee or service charge; 3. materials, sales taxes on materials, and labor costs; 4. normal site preparation including finish grading and excavation for foundation and backfill; 5. utilities from structure to lot line figured for typical setback; 6. contractor’s overhead and profit, including job supervision, workmen’s compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc.; 7. site improvements (included as lump sum additions); and 8. initial tenant improvement costs are included in MVS cost estimate. However, additional lease-up costs such as advertising, marketing and leasing commissions are not included. Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Making these adjustments, including the appropriate local and current cost multipliers, the direct building cost is indicated. Additions Items not included in the direct building cost estimate include parking and walks, signage, landscaping, and miscellaneous site improvements. The cost for these items is estimated separately using the segregated cost sections of the MVS cost guide. Indirect Cost Items Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include developer overhead (general and administrative costs), property taxes, legal and insurance costs, local development fees and contingencies, lease-up and marketing costs and miscellaneous costs. The concluded indirect cost allowance is 20.0%.

48



Cost Approach

2.3.a

Cost Approach

The concluded direct and indirect building cost estimates obtained via the MVS cost guide are illustrated as follows: MARSHALL VALUATION SERVICE COST SCHEDULE Primary Building Type: Effective Age: Condition: Exterior Wall: Number of Stories: Building MVS Sec/Page Quality/Bldg. Class Building Component Component Sq. Ft. Base Square Foot Cost

15/17 Good/B Shell & Interior 11,734 SF $201.95

11' & 14' 2 14,820 SF 14,820 SF --2 15/34 Average/C Shell 3,086 SF $59.06

($27.75) ($5.52) $20.20 $188.88

--($2.16) --$56.90

Height and Size Refinements Number of Stories Multiplier Height per Story Multiplier Floor Area Multiplier Subtotal

1.000 1.046 0.932 $184.13

1.000 0.977 1.083 $60.21

Cost Multipliers Current Cost Multiplier Local Multiplier Final Square Foot Cost

1.02 0.96 $180.30

1.04 0.97 $60.74

Square Foot Refinements Hot & Chilled Water (zoned) Elevator - None Historically Relevant Facade Subtotal

Office 93 YRS Poor CBS, Masonry, Steel & Wood 1&2

Height per Story: Number of Buildings: Gross Building Area: Net Rentable Area: Average Floor Area: 1

10.0%

Base Component Cost

$2,115,629

$187,429

Base Building Cost (via Marshall Valuation Service cost data) Additions Concrete Sidewalks & Curbs, Storm Water Drainage, Utilities & Misc. Site Improvements Direct Building Cost

$300,000 $2,603,058

Indirect Costs Direct and Indirect Building Cost Rounded

$260,306 $2,863,364 $2,863,000

10.0% of Direct Building Cost

$2,303,058

Compiled by CBRE

49



MVS Conclusion

2.3.a

Cost Approach

The indicated direct and indirect building costs for the subject are illustrated as follows: DIRECT AND INDIRECT COST CONCLUSION Source MVS Cost Guide CBRE Estimate

Subject Estimate $2,863,000 $2,863,000

Per SF $193.18 $193.18

Compiled by CBRE

ENTREPRENEURIAL PROFIT Entrepreneurial profit represents the return to the developer, and is separate from contractor’s overhead and profit. The concluded entrepreneurial incentive is 15.0% of building cost and land value. ACCRUED DEPRECIATION There are essentially three sources of accrued depreciation: 1. physical deterioration, both curable and incurable; 2. functional obsolescence, both curable and incurable; and 3. external obsolescence. Physical Deterioration The following chart provides a summary of the remaining economic life. ECONOMIC AGE AND LIFE Actual Age Effective Age MVS Expected Life Remaining Economic Life Accrued Physical Incurable Depreciation

93 Years 93 Years 100 Years 7 Years 93.0%

Compiled by CBRE

Functional Obsolescence Based on a review of the design and layout of the improvements, no forms of curable functional obsolescence were noted. Because replacement cost considers the construction of the subject improvements utilizing modern materials and current standards, design and layout, functional incurable obsolescence is not applicable. External Obsolescence Based on a review of the local market and neighborhood, no forms of external obsolescence affect the subject.

50



DIRECT AND INDIRECT COST CONCLUSION

2.3.a

Cost Approach

The value estimate is calculated as follows. COST APPROACH CONCLUSION Primary Building Type: Effective Age: Condition: Exterior Wall: Number of Stories:


Height per Story: Number of Buildings: Gross Building Area: Net Rentable Area: Average Floor Area:

11' & 14' 2 14,820 SF 14,820 SF ---

Direct and Indirect Building Cost Entrepreneurial Incentive

$2,863,000 15.0% of Total Building Cost & Land Value

$1,066,950

Replacement Cost New Accrued Depreciation Incurable Physical Deterioration

$3,929,950

93.0% of Replacement Cost New less Curable Physical Deterioration

$0 $0

Functional Obsolescence External Obsolescence Total Accrued Depreciation

($3,654,854)

93.0% of Replacement Cost New

Depreciated Replacement Cost

($3,654,854) $275,097

Land Value Indicated Value Rounded Curable Physical Deterioration Lease-Up Discount Indicated As Is Value Rounded Value Per SF

$4,250,000 $4,525,097 $4,525,000 $0 $0 $4,525,000 $4,525,000 $305.33

Compiled by CBRE

51



COST APPROACH CONCLUSION

2.3.a

Insurable Value

Insurable value is defined as follows: 1. the value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting costs of noninsurable items (e.g., land value) from market value. 2. value used by insurance companies as the basis for insurance. Often considered to be replacement or reproduction cost plus allowances for debris removal or demolition less deterioration and noninsurable items. Sometimes cash value or market value, but often entirely a cost concept. 6 3. a type of value for insurance purposes. 7 CBRE, Inc. has followed traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry-accepted publications such as the Marshall Valuation Service. The methodology employed is a derivation of the cost approach and is not reliable for insurable value estimates. Actual construction costs and related estimates can vary greatly from this estimate. The insurable value estimate presented herein is intended to reflect the value of the destructible portions of the subject, based on the replacement of physical items that are subject to loss from hazards (excluding indestructible items such as basement excavation, foundation, site work, land value and indirect costs). In the case of the subject, this estimate is based upon the base building costs (direct costs) as obtained via the Marshall Valuation Service cost guide, with appropriate deductions. This analysis should not be relied upon to determine proper insurance coverage as only consultants considered experts in cost estimation and insurance underwriting are qualified to provide an insurable value. It is provided to aid the client/reader/user as part of their overall decision making process and no representations or warranties are made by CBRE, Inc. regarding the accuracy of this estimate. It is strongly recommended that other sources be utilized to develop any estimate of insurable value.

6

Marshall & Swift/Boeckh, LLC, Marshall Valuation Service, (Los Angeles: Marshall & Swift/Boeckh, LLC, 2010), Sec 3, p 2.

7

Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010), 102. 52



Insurable Value

2.3.a

Insurable Value

Primary Building Type: Effective Age: Condition: Exterior Wall: Number of Stories:


Height per Story: Number of Buildings: Gross Building Area: Net Rentable Area: Average Floor Area:

11' & 14' 2 14,820 SF 14,820 SF ---

Building MVS Sec/Page Quality/Bldg. Class Building Component Component Sq. Ft. Base Square Foot Cost

0 0 0 0 SF $0.00

0 0 0 0 SF $0.00

1 0 15/17 0 Good/B 0 Shell & Interior 0 SF 11,734 SF $0.00 $201.95

Square Foot Refinements Hot & Chilled Water (zoned) Elevator - None Historically Relevant Facade Subtotal

$0.00 $0.00 10.0% $0.00

$0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

($27.75) ($5.52) $20.20 $188.88

--($2.16) --$56.90

Height and Size Refinements Number of Stories Multiplier Height per Story Multiplier Floor Area Multiplier Subtotal

0.00 0.00 0.00 $0.00

0.000 0.000 0.000 $0.00

0.000 0.000 0.000 $0.00

1.000 1.046 0.932 $184.13

1.000 0.977 1.083 $60.21

Cost Multipliers Current Cost Multiplier Local Multiplier Final Square Foot Cost

0.00 0.00 $0.00

0.00 0.00 $0.00

0.00 0.00 $0.00

1.02 0.96 $180.30

1.04 0.97 $60.74

$0

$0

$0

$2,115,629

$187,429

Base Component Cost

Base Building Cost Insurable Exclusions

(via Marshall Valuation Service cost data)

10.0% of Total Building Cost

2 15/34 Average/C Shell 3,086 SF $59.06

$2,303,058 ($230,306)

Indicated Insurable Value

$2,072,752

Rounded

$2,075,000

Value Per SF

$140.01

Compiled by CBRE

53



INSURABLE VALUE

2.3.a

Sales Comparison Approach

The following map and table summarize the comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE OFFICE SALES No.

Property Name


Land (Acres)

YOC / Reno'd

NRA (SF)

Actual Sale Price

Adjusted Sale Price 1

Price Per SF 1

Occ.

1

Old Post Office & Courthouse, 100 NE 1st Avenue Miami, FL 33132

Sale

Jun-14

0.21

1914 / 2003

25,500

$11,000,000

$6,500,000

$254.90

39%

2

Power Studios, 55-57 N.E. 1st Street Miami, FL 33132

Sale

Sep-14

0.30

1950

22,341

$7,300,000

$7,300,000

$326.75

50%

3

140 Building, 140 N Miami Avenue Miami, FL 33128

Sale

Jan-15

0.34

1925

25,375

$7,750,000

$7,750,000

$305.42

89%

4

Dade Commonwealth Building, 139 NE 1st Street, Miami, FL 33132

Sale

Nov-15

0.17

1927 / 2004

38,122

$9,200,000

$9,200,000

$241.33

39%

5

Wynwood Treehouse, 2210 NW Miami Court Miami, FL 33127

Sale

Jun-16

0.31

1946 / 1995

7,806

$3,850,000

$3,850,000

$493.21

0%

Subj. Historic Citizen Bank Building, 1367 North Miami Avenue Miami, FL 33132

Contract

Mar-17

0.24

1924

14,820

$5,500,000

$5,500,000

$371.12

0%

1

Adjusted sale price for cash equivalency, lease-up and/or deferred maintenance (where applicable) Compiled by CBRE

54




2.3.a


selected from our research of comparable improved sales within a 1-to-15 block radius of the subject. These sales were chosen based upon location, age/condition, size and physical characteristics. DISCUSSION/ANALYSIS OF IMPROVED SALES We have considered similarities and differences for each of the comparable improved sales in direct comparison to the subject property at stabilization. We have considered adjustments to the comparable sales for differences and improving market conditions (time), condition of sale, i.e. premium for assemblage to an abutting property of same owner/buyer, location, size/value, age/condition, off-street parking and land-to-building ratios when compared to the subject property As Is. In addition, we are valuing the subject property As Is, including any contributory value of the TDRs. This is consistent with the majority of comparable sales analyzed that have local or national historic landmark potential and have all traded with the TDRs intact. Improved Sale One According to historic accounts and official references, this comparable sale property was constructed over three years, between 1912–14, and was designed by Kiehnel and Elliott and Oscar Wenderoth. In January 1989, the subject property was added to the U.S. National Register of Historic Places. More recently, the 1st & 2nd floor of the property was tenant leased to Office Depot in 1991 and then to the Miami Center for Architecture & Design in 2012, and still occupies the 1st & 2nd floors based on a five (5) and six (6) month lease term with an effective date of June 12, 2012, plus one (1), five (5) year option to extend. The underlying site zoning is a high density, T6-80, Urban Core classification and the historic status makes the ownership of the property eligible for the sell-off of approximately 188,920-SF of Transfer of Development Rights (TDRs), i.e. the spread between the existing building square footage and the “as of right” zoning FAR/FLR (floor-area-ratio/floor-lot-ratio), subject to approval and issuance of a Certificate of TDRs from the City of Miami. The prior owner acquired the property in 2000 and was considering a condo conversion plan. The current owner/buyer paid $11,000,000 for the Post Office and a 15,000-SF surface parking lot fronting NE 2nd Street. We have abstracted the surface lot from the acquisition of the Post Office by allocating $300.00-PSF to the site area based on market conditions at time of sale in June 2014. The current owner/developer is proposing a $6,336,000 construction cost budget to renovate and repurpose the property into a food hall with market and artisan retail & restaurant vendors and has gutted the basement (6,000-SF for back-of-house), and the 3rd floor & the 4th floor (3,500-SF attic) in preparation of that plan. The difference between the gross building area and the net rentable area presented is the basement & attic areas are in As Is condition at time of sale. 55



The sales utilized represent the best data available for comparison with the subject. They were

2.3.a


the effective date of this appraisal. We also adjusted Sale 1 upwards for larger size/value relationship, downwards for superior age/condition and downwards for superior zoning/density & potential for TDRs when compared to the subject property. Improved Sale Two This comparable sale is a mixed-use retail/office building that abuts & wraps around the Old Post Office & Courthouse at the corner of NE 1st Street & NE 1st Avenue and was built in the 1950’sbuilt as an addition to the Historic Post Office.

The current buyer is assembling multiple

properties within the downtown CBD submarket. The tenant base is comprised mostly of ground floor retail Chrono Sky Inc. Watch Shop, Yaffa & Sons Jewelry, Precious and Hippiechic. Seconed floor tenants comprise George Kovacs Investments, H & S Jewelry, Inter Arms Trading, JNS Jewelry Repair and Mario's Casting Jewelry. The transaction was facilitated with a short term, $4,000,000 purchase money mortgage. property in March 2012 for $2,200,000.

We also noted the seller previously acquired the

We adjusted Sale 2 downwards for superior property rights conveyed, i.e. leased fee interest with tenant revenue and upwards for improving market conditions between sale transaction date and effective date of the appraisal. We also adjusted Sale 2 upwards for larger size/value relationship, downwards for superior age/condition and downwards for superior retail tenancy when compared to the subject property. Improved Sale Three This is the sale of a multi-tenant building located at the southwest corner of NW 2nd Street and North Miami Avenue, within the CBD of Miami, Miami-Dade County, Florida.

The property

consists of a two-story building with 25,375 SF situated on a 0.34-acre site. The property was built during 1925 and was in fair condition at time of sale. The property was under contract for 30 to 45 days and closed January 2015 for $7,750,000 ($305.42/SF of building area). The buyer purchased the property with the intent to remodel & re-lease with retail and office tenants. This was an "arm’s length" transaction. We adjusted Sale 3 downwards for superior property rights conveyed, i.e. leased fee interest with tenant revenue and upwards for improving market conditions between sale transaction date and effective date of the appraisal. We also adjusted Sale 3 upwards for larger size/value relationship and downwards for superior zoning/density & potential for TDRs when compared to the subject property. Improved Sale Four This comparable sale property is a 27,911-square foot (usable and 38,122-square feet of rentable area, including common areas), seven-story, urban office building located at 139 N.E. 1st Street in the downtown Miami central business district (CBD). The improvements were constructed in 1925, renovated in 2004 and are situated on a 0.172-acre, high density, urban

56



We adjusted Sale 1 upwards for improving market conditions between sale transaction date and

2.3.a


originally developed to 17-stories and severely damaged in the Hurricane of 1926 forcing the removal of the top 10-floors. Also notable, is the property was added to the U.S. National Register of Historic Places in January 1989 based on the neo-classicism architectural style that represents the opulence of the 1920's economic boom.

The purchase contract is dated

September 2014 at a purchase price of $9,200,000 with the closing date revised several times and ultimately closing in November 2015. The buyer intends on adding 7-floors stacked on top of the existing roof and converting the subject property into a 122-room boutique hotel including retail/restaurant space and a sundeck with spa on the existing roof/future 8th floor. We adjusted Sale 4 downwards for superior property rights conveyed, i.e. leased fee interest with tenant revenue and upwards for improving market conditions between sale transaction date and effective date of the appraisal.

We also adjusted Sale 4 upwards for larger size/value

relationship, downwards for superior age/condition and downwards for superior zoning/density & potential for TDRs when compared to the subject property. Improved Sale Five This comparable sale is a vacant 7,806-SF office/warehouse property with fenced yard located at the northwest corner of NW 22nd Street and NW Miami Court within the Wynwood Arts District. The property was broker listed at $4,100,000 and contracted "all cash" at $3,850,000. The property was marketed as a renovation investment and the buyer finalized the approvals to demolish 4,608-SF of warehouse area and redevelop /renovate a total of 7,750-SF for multitenant retail showroom with open floor plans, mezzanines, glass storefronts, vanilla shell condition, polished concrete floors, exposed duct work and on-site parking. Rental rates for renovated retail space is $45.00-PSF, triple net for 1,028 & 2,095 square foot bays. We adjusted Sale 5 downwards for smaller size/value relationship, downwards for superior age/condition, downwards for superior off-site parking and downwards for superior one-story retail re-purpose versus multi-story when compared to the subject property. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.

57



core zoned site. Currently, the property is 39% leased. We also noted, that the property was

2.3.a


Comparable Number Transaction Type Transaction Date Year Built/Renovated NRA (SF) Actual Sale Price Adjusted Sale Price 1 Price Per SF 1 Occupancy Adj. Price Per SF Property Rights Conveyed Financing Terms 1 Conditions of Sale Market Conditions (Time) Subtotal - Price Per SF Location Size Age/Condition Quality of Construction Parking Tenancy Multi-Story vs. 1-Story Zoning/Density/TDRs Total Other Adjustments Indicated Value Per SF

1 Sale Jun-14 1914 / 2003 25,500 $11,000,000 $6,500,000 $254.90 39% $254.90 0% 0% 0% 10% $280.39 0% 10% -5% 0% 0% 0% 0% -5% 0% $280.39

2 Sale Sep-14 1950 22,341 $7,300,000 $7,300,000 $326.75 50% $326.75 -5% 0% 0% 10% $341.45 0% 10% -10% 0% 0% -5% 0% 0% -5% $324.38

3 Sale Jan-15 1925 25,375 $7,750,000 $7,750,000 $305.42 89% $305.42 -5% 0% 0% 5% $304.66 0% 10% -10% 0% 0% 0% 0% -5% -5% $289.42

4 Sale Nov-15 1927 / 2004 38,122 $9,200,000 $9,200,000 $241.33 39% $241.33 -5% 0% 0% 5% $240.73 0% 20% -5% 0% 0% 0% 0% -5% 10% $264.80

5 Sale Jun-16 1946 / 1995 7,806 $3,850,000 $3,850,000 $493.21 0% $493.21 0% 0% 0% 0% $493.21 0% -10% -5% 0% -10% 0% -10% 0% -35% $320.59

Subject Contract Mar-17 1924 14,820 $5,500,000 $5,500,000 $371.12 0% $371.12 0% 0% 0% 0% $371.12 0% 0% 0% 0% 0% 0% 0% 0% 0% $371.12

1

Adjusted for cash equivalency, lease-up and/or deferred maintenance (where applicable) Compiled by CBRE

SALE PRICE PER SQUARE FOOT CONCLUSION Overall, Comparables 1, 3 & 5 were the most representative of the subject, and warranted greatest consideration because of location and physical characteristics. In addition, we have also considered the contract purchase price reported for the subject property. The following chart presents the valuation conclusion: SALES COMPARISON APPROACH NRA (SF) 14,820 14,820

X X X

Value Per SF $280.00 $320.00

= = =

Value $4,149,600 $4,742,400

VALUE CONCLUSION Indicated Value Deferred Maintenance Lease-Up Discount Indicated As Is Value Rounded Value Per SF

$4,500,000 $0 $0 $4,500,000 $4,500,000 $303.64

Compiled by CBRE

58



OFFICE SALES ADJUSTMENT GRID

2.3.a

Reconciliation of Value

The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS As Is on March 22, 2017 $4,525,000 $4,500,000 Not Applicable $4,500,000

Cost Approach Sales Comparison Approach Income Capitalization Approach Reconciled Value Compiled by CBRE

The cost approach typically gives a reliable value indication when there is substantial depreciation of the improvements and a majority of the value is attributed to land value. Considering the quality & quantity of comparable land sale data and substantial amount of depreciation present in the property, the reliability of the cost approach is considered good.

Therefore, the cost

approach is considered equally applicable to the subject and is given weighted emphasis in the final reconciliation. In the sales comparison approach, the subject is compared to similar properties that have been sold recently or for which listing prices or offers are known. The sales used in this analysis are considered comparable to the subject, and the required adjustments were based on reasonable and well-supported rationale. In addition, market participants are currently analyzing purchase prices on investment properties as they relate to available substitutes in the market. Therefore, the sales comparison approach is considered to provide a reliable value indication, but has been given secondary emphasis in the final value reconciliation. Based on the foregoing, the market value of the subject has been concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise As Is

Interest Appraised Fee Simple Estate

Date of Value March 22, 2017

Value Conclusion $4,500,000

Compiled by CBRE

59



Reconciliation of Value

2.3.a

Assumptions and Limiting Conditions

1.

2.

3.

CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i)

Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company.

(ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report.

60




2.3.a

(xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4.

CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report.

5.

CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit.

6.

All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property.

7.

Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections.

8.

The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property.

9.

No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters.

10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests.

61




2.3.a

13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user.

62




ADDENDA

© 2017 CBRE, Inc.

Packet Pg. 91


2.3.a

Addenda

Addendum A

LAND SALE DATA SHEETS

© 2017 CBRE, Inc.

Packet Pg. 92


2.3.a

Addenda

2.3.a

Land - Mixed-Use

Property Name Address

Cube Wynwood Site 222, 230 and 234 Northwest 24th Street Miami, FL 33127 United States

Government Tax Agency

Miami-Dade

Govt./Tax ID

01-3125-034-0440; -0450; -0460

No. 1

Site/Government Regulations Land Area Net

Acres 0.336

Square feet 14,625

Land Area Gross

0.336

14,625

Site Development Status Shape Topography Utilities

Semi-Finished Rectangular Level, At Street Grade All to site

Maximum FAR Min Land to Bldg Ratio

6.15 0.16:1

Maximum Density

N/A

Frontage Distance/Street

150 ft NW 24th Street

General Plan Specific Plan Zoning

N/A N/A T5-O, Urban Center & NRD-1

Entitlement Status

N/A

Sale Summary Recorded Buyer True Buyer Recorded Seller True Seller

RS JZ NW 24th, LLC RedSky Capital Fortis Development Group N/A

Marketing Time Buyer Type Seller Type Primary Verification

N/A Developer N/A Buyer

Interest Transferred Current Use Proposed Use Listing Broker Selling Broker Doc #

Fee Simple/Freehold Vacant Land Retail/Office mixed-use N/A N/A 29862/4803

Type Date Sale Price Financing Cash Equivalent Capital Adjustment

Sale 11/17/2015 $5,850,000 Cash to Seller $5,850,000 $0

Adjusted Price

$5,850,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 11/2015 Sale RS JZ NW 24th, LLC

Seller Fortis Development Group

Price $5,850,000

Price/ac and /sf $17,426,273 / $400.00



Sale

2.3.a

Sale

Land - Mixed-Use

No. 1

Units of Comparison

$17,426,273.46 / ac

N/A / Allowable Bldg. Units $65.00 / Building Area

Financial No information recorded Map & Comments This comparable represents the acquisition of a 0.34-acre commercial site for retail/office development within the Wynwood District of Miami. The site is located at 222-234 NW 24th Street, Miami, Florida, immediately west of Panther Coffee and NW 2nd Avenue. This area is the heart of Wynwood where recent and proposed residential and mixed-use developments are present, and within the NRD-1, Neighborhood Revitalization District. The buyer, RedSky Capital, is proposing an 8-story, loft-style office building with ground floor retail, a breezeway for pedestrians and a rooftop terrace. RedSky paid $5,850,000, or $400-PSF of land and hired Arquitectonica to design the project, which is known as "Cube Wynwood". Permits were secured in late 2016, construction is slated to begin Q1 2017, and delivery in 2018.



N/A / Unit

$400.00 / sf

2.3.a

Land - Mixed-Use


Miami Plaza 37-47 NE 15th Street 1523 & 1529 NE Miami Ct. & 1502 NE Miami Pl. Miami, FL 33132 United States Miami-Dade

Govt./Tax ID

01-3136-008-0320, 0330, 0340 & 01-3136-0050-1010 & 0315


No. 2


Acres 0.851

Square feet 37,049

Land Area Gross

0.851

37,049


Finished Rectangular Level, At Street Grade All Available


7.00 0.14:1

Maximum Density

149.32 per ac

Frontage Distance/Street Frontage Distance/Street Frontage Distance/Street

N/A NE 15th Street N/A NE Miami Place N/A NE Miami Court


Mixed-use residential tower TBD T6-24 O, Urban Core Transect Zone

Entitlement Status

N/A


Miami Plaza LLC Melo Group 4 RIL, LLC & Prince Albert, LLC Alex Sherman & Jeff Kluger


N/A Developer Developer Alex Sherman, Broker/Owner


Fee Simple/Freehold Obsolete warehouse Mixed-use residential/retail Affinity International Realty #305-376-4145 N/A 29886/2888 & 29892/2447


Sale 12/10/2015 $11,500,000 Cash to Seller $11,500,000 $1,964,918

Adjusted Price

$13,464,918

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 12/2015 Sale Miami Plaza LLC

Seller 4 RIL, LLC & Prince Albert, LLC

Price $11,500,000

Price/ac and /sf $15,831,767 / $363.44



Sale

2.3.a

Sale

Land - Mixed-Use

No. 2

Units of Comparison

$15,831,767.20 / ac

$106,023 / Allowable Bldg. Units $51.92 / Building Area

Financial No information recorded Map & Comments This comparable land sale comprises a two part land assemblage & swap with an abutting owner/developer. The buyer, Miami Plaza, LLC is identified as The Melo Group who is one of the most active residential condo & rental tower developers in the submarket. The primary acquisition included 18,516-SF fronting the northeast corner of NE 15th Street and NE Miami plus two lots, totaling 10,290-SF, of non-contiguous site area for a purchase price of $11,500,000, facilitated with a $4,642,000 loan assumption from a private lender. The two, non-contiguous lots were subsequently swapped with the abutting owner/developer for the secondary acquisition comprising 18,533-SF along the northwest corner of NE 15th Street and NE Miami Place for a purchase price of $1,964,918. The abutting owner/developer paid The Melo Group $1,216,500 for the two, non-contiguous lots totaling 10,290-SF and subsequently taking control of 37,252-SF of contiguous site area fronting NE 16th Street, thereby splitting the entire block between the two developers. The acquired site is zoned T6-24 O, which allows a variety of residential and commercial uses with a maximum Floor Lot Ratio of 7.0 plus 30% public benefit and 150 dwelling units per acre. The close proximity to the 50 NE 15th Street School Board Metromover Station permits parking ratio reductions of 30% based on TOD (Transit Oriented Development) and Transit Corridor. Plus, a modified residential density increase to 500 units per acre within the Omni neighborhood.



N/A / Unit

$363.44 / sf

2.3.a

Land - Mixed-Use


Sun Electronics 511 NE 15th Street Miami, FL 33132 United States


Miami-Dade

Govt./Tax ID

01-3231-009-0010

No. 3


Acres 0.269

Square feet 11,700

Land Area Gross

0.269

11,700


Finished Rectangular Level, At Street Grade In-place


12.00 0.08:1

Maximum Density

148.92 per ac

Frontage Distance/Street Frontage Distance/Street

N/A Biscayne Blvd. N/A NE 15th Street


Mixed-use Boutique hotel T6-36b O

Entitlement Status

None


One Miami Biscayne Bay & Arts District Hotel, LLC Vinay Rama, Mandala Holdings Sun Electronics International Inc. John Kimball


42 Month(s) End User End User John Kimball, Grantor


Fee Simple/Freehold Obsolete office Boutique hotel FISBO N/A 29967/566


Sale 2/19/2016 $8,000,000 All Cash $8,000,000 $0

Adjusted Price

$8,000,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 02/2016 Sale One Miami Biscayne Bay & Arts District Hotel, LLC

Seller Sun Electronics International Inc.

Price $8,000,000

Price/ac and /sf $29,784,066 / $683.76



Sale

2.3.a

Sale

Land - Mixed-Use

No. 3

Units of Comparison

$29,784,065.52 / ac

$200,000 / Allowable Bldg. Units $56.98 / Building Area

Financial No information recorded Map & Comments This comparable land sale is located at the northeast corner of Biscayne Boulevard & NE 15th Street in the Miami Arts & Entertainment District in downtown Miami, Florida. This is a strategic location with high density redevelopment potential, mass transit connectivity, setback Biscayne Bay views from future upper floors, and high scoring walkability to the Adrienne Arsht Center for the Performing Arts, Museum Park, the American Airlines Arena and Bayside Marketplace. The buyer is an owner/developer of boutique hotels in south Florida and entered into a short term sale/leaseback with the seller who previously acquired the property in March 1998 for $440,000 and operated Sun Electronics. The existing building was originally developed in 1941 and comprises 4,440-SF. The seller renovated the property including roof top solar energy panels and other energy efficient features as part of the business and advocacy for alternative energy sources. The seller listed the property for $8,998,000 as a "for sale by owner" redevelopment opportunity.



N/A / Unit

$683.76 / sf

2.3.a

Land - Mixed-Use


328-342 NW 29th Street 328-342 NW 29th Street Miami, FL 33127 United States


Miami-Dade

Govt./Tax ID

01-3125-024-2830, 2840 & 2850

No. 4


Acres 0.482

Square feet 21,000

Land Area Gross

0.482

21,000


Finished Rectangular Level, At Street Grade Available to site


N/A N/A

Maximum Density

N/A


N/A NW 29th Street


Neighborhood Revitalization District - NRD-1 TBD T6-8 O, Urban Core

Entitlement Status

N/A


RM 1 29th Wynwood, LLC Sam Strauch, Metrik Real Estate Gianno Associates LLC Art Cornfeld


N/A Private Investor Private Investor Buyer & Public Records


Leased Fee Showroom/Warehouse TBD Off-Market Transaction N/A 30214/2755


Sale 9/2/2016 $6,300,000 All Cash $6,300,000 $0

Adjusted Price

$6,300,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller 09/2016 Sale RM 1 29th Wynwood, LLC Gianno Associates LLC

Price $6,300,000

Price/ac and /sf $13,067,828 / $300.00



Sale

2.3.a

Sale

Land - Mixed-Use

No. 4

Units of Comparison

$13,067,828.25 / ac

N/A / Allowable Bldg. Units N/A / Building Area

Financial No information recorded Map & Comments This comparable land sale comprises three (3) lots with two (2) obsolete office/warehouse buildings and a surface parking that date back to the 1950s & 1960s. The properties were tenant occupied by 328 Design Group and HES-Group. The site location is along the south side of NW 29th Street and within the NRD-1 Neighborhood Revitalization District boundary. The site is zoned T6-8 O, Urban Core Transect Zone that permits up to 150 dwelling units per acre and 2 to 8 story building height limits plus a 4-story benefit height and favorable setback & off-street parking requirements. The buyer is a local investor/speculator.


N/A / Unit

$300.00 / sf


2.3.a

Land - Mixed-Use


28-30 NE 14th Street 28-30 NE 14th Street Miami, FL 33132 United States


Miami-Dade

Govt./Tax ID

01-3136-009-0070, 0080 & 01-3136-009-010

No. 5


Acres 0.394

Square feet 17,180

Land Area Gross

0.394

17,180


N/A N/A N/A N/A


N/A N/A

Maximum Density

N/A


72 ft NE 14th Street 200 ft NE Miami Court


N/A N/A T6-24 O, Urban Core Transect Zone

Entitlement Status

N/A


Coral Ritz Residences LLC Jorge Buitrago & Fabian Gonzalez A & E District 14 Street, LLC Henry Cuervo


N/A Private Investor Private Investor Thomas Sherman, P.A. & Public Records


Fee Simple/Freehold Obsolete retail strip & nightclub TBD "Off-Market" transaction N/A 30327/2584


Sale 11/22/2016 $6,098,900 All Cash $6,098,900 $0

Adjusted Price

$6,098,900

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 11/2016 Sale Coral Ritz Residences LLC

Seller A & E District 14 Street, LLC

Price $6,098,900

Price/ac and /sf $15,463,742 / $355.00


Sale


2.3.a

Sale

Land - Mixed-Use

No. 5

Units of Comparison

$15,463,742.39 / ac

N/A / Allowable Bldg. Units N/A / Building Area

Financial No information recorded Map & Comments This comparable sale is an obsolete retail strip building dating to 1945 that was previously owned by night club entrepreneur Carmel Ophir who operated Barfly and The Vagabond at this location. In 2014, the property traded to Russell Bruce (a.k.a. Global Adversity, LLC) for $2,700,000 with the transaction facilitated with a $2,497,500 SBA loan in favor of C1 Bank. Russell Bruce combined & renovated several of the former bar spaces to open Railroad Blues. However, the C1 Bank & the loan were acquired by Bank of Ozarks and there was pressure from the lender who forced a loan payoff and sale to A & E District 14 Street LLC. That transaction was followed by a sell-off to Coral Ritz Residences, LLC for $6,098,900. The site fronts NE 14th Street and is improved with a 5,400-SF strip retail building built-out with bar/night club interiors and fenced patio bar area.


N/A / Unit

$355.00 / sf


Addendum B

IMPROVED SALE DATA SHEETS

© 2017 CBRE, Inc.


2.3.a

Addenda

Packet Pg. 103

2.3.a

Office - Multi Tenant


Old Post Office & Courthouse 100 NE 1st Avenue Miami, FL 33132 United States


Miami-Dade

Govt./Tax ID

01-0110-050-1140

No. 1


Acres 0.214

Square feet 9,330

N/A

N/A

Land Area Gross Site Development Status Shape Topography Utilities

Finished Rectangular Level, At Street Grade N/A

Maximum Floor Area Maximum FAR

N/A N/A

Actual FAR

3.75


112 ft NE 1st Ave 82 ft NE 1st Street

Zoning

N/A

General Plan

Historic Post Office

Improvements Gross Building Area Net Rentable Area (NRA) Usable Area Load Factor Status Occupancy Type Year Built

35,000 sf 25,500 sf 17,000 sf N/A Existing Multi-tenant 1914

Year Renovated

2003

Amenities

N/A

Floor Count Parking Type Parking Ratio Condition Exterior Finish Investment Class

4 Surface 1.96/1,000 sf Good N/A N/A

Number of Buildings

1


Stambul USA Daniel Pena Giraldi Old Post Office LLC Scott Robbins


13 Month(s) Developer Developer Daniel Pena Giraldi, Buyer/Developer


Leased Fee Office Food Hall Tony Cho, Metro 1 Commercial Mika Mattingly, Sterling Equity 29193/1394


Sale 6/12/2014 $11,000,000 Other(See Comments) $11,000,000 $-4,500,000

Adjusted Price

$6,500,000


Sale


2.3.a


Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 06/2014 Sale Stambul USA

Seller Old Post Office LLC

No. 1 Price $11,000,000

Cash Equivalent Price/sf $431.37

Units of Comparison Static Analysis Method Buyer's Primary Analysis Net Initial Yield/Cap. Rate Projected IRR

Other (see comments) Replacement Cost Analysis N/A N/A

Actual Occupancy at Sale

39%

Eff Gross Inc Mult (EGIM) Op Exp Ratio (OER) Adjusted Price / sf Wtd. Avg. Lease Expiry

N/A N/A $254.90 N/A

Financial No information recorded Map & Comments According to historic accounts and official references, this comparable sale property was constructed over three years, between 1912±14, and was designed by Kiehnel and Elliott and Oscar Wenderoth. In January 1989, the subject property was added to the U.S. National Register of Historic Places. More recently, the 1st & 2nd floor of the property was tenant leased to Office Depot in 1991 and then to the Miami Center for Architecture & Design in 2012, and still occupies the 1st & 2nd floors based on a five (5) and six (6) month lease term with an effective date of June 12, 2012, plus one (1), five (5) year option to extend. The underlying site zoning is a high density, T6-80, Urban Core classification and the historic status makes the ownership of the property eligible for the sell-off of approximately 188,920-SF of Transfer of Development Rights (TDRs), i.e. the spread between the existing building square footage and the ³as of right´zoning FAR/FLR (floor-area-ratio/floor-lot-ratio), subject to approval and issuance of a Certificate of TDRs from the City of Miami. The prior owner acquired the property in 2000 and was considering a condo conversion plan. The current owner/buyer paid $11,000,000 for the Post Office and a 15,000-SF surface parking lot fronting NE 2nd Street. We have abstracted the surface lot from the acquisition of the Post Office by allocating $300.00-PSF to the site area based on market conditions at time of sale in June 2014. The current owner/developer is proposing a $6,336,000 construction cost budget to renovate and repurpose the property into a food hall with market and artisan retail & restaurant vendors and has gutted the basement (6,000-SF for back-of-house), and the 3rd floor & the 4th floor (3,500-SF attic) in preparation of that plan. The difference between the gross building area and the net rentable area presented is the basement & attic areas are in As Is condition at time of sale.


Sale


2.3.a



Power Studios 55-57 N.E. 1st Street Miami, FL 33132 United States


Miami-Dade

Govt./Tax ID

01-0110-050-1150

No. 2

Site/Government Regulations Land Area Net Land Area Gross Site Development Status Shape Topography Utilities

Acres 0.300

Square feet 13,068

N/A

N/A

Finished L Shaped Level, At Street Grade All available


N/A N/A

Actual FAR

2.07


N/A NE 1st Street N/A NE 1st Ave

Zoning

N/A

General Plan

Mixed-use redevelopment


27,028 sf 22,341 sf 0 sf 0.00 Existing N/A 1950

Year Renovated

N/A

Amenities

N/A


2 On-Street N/A Average Concrete Block C

Number of Buildings

1


Moishe Mana Moishe Mana Aaron Realty Corp. N/A


N/A Developer Private Investor Mika Mattingly, Buyer's Broker


Leased Fee Mixed-use retail/office TBD N/A Sterling Equity Realty LLC 29324/1248


Sale 9/23/2014 $7,300,000 Other(See Comments) $7,300,000 $0

Adjusted Price

$7,300,000


Sale


2.3.a


Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 09/2014 Sale Moishe Mana 12/2011 Available/Listing N/A

Seller Aaron Realty Corp. Ameri Center

No. 2 Price $7,300,000 $3,800,000

Cash Equivalent Price/sf $326.75 $170.09


Other (see comments) Other N/A N/A


50%


N/A N/A $326.75 N/A

Financial No information recorded Map & Comments This comparable sale is a mixed-use retail/office building that abuts & wraps around the Old Post Office & Courthouse at the corner of NE 1st Street & NE 1st Avenue and was built in the ¶s-built as an addition to the Historic Post Office. The current buyer is assembling multiple properties within the downtown CBD submarket. The tenant base is comprised mostly of ground floor retail Chrono Sky Inc. Watch Shop, Yaffa & Sons Jewelry, Precious and Hippiechic. Seconed floor tenants comprise George Kovacs Investments, H & S Jewelry, Inter Arms Trading, JNS Jewelry Repair and Mario's Casting Jewelry. The transaction was facilitated with a short term, $4,000,000 purchase money mortgage. We also noted the seller previously acquired the property in March 2012 for $2,200,000.


Sale


2.3.a



140 Building 140 N Miami Avenue Miami, FL 33128 United States


MIami-Dade

Govt./Tax ID

01-0110-060-1010

No. 3


Acres 0.344

Square feet 15,000

Land Area Gross

0.344

15,000


Finished Rectangular Generally Level All Available


N/A N/A

Actual FAR

1.69


N/A NW 2nd Street N/A N. Miami Ave

Zoning

T6-80 O, Urban Core

General Plan

N/A


N/A 25,375 sf N/A N/A Existing Multi-tenant 1925

Year Renovated

N/A

Amenities

N/A


N/A On-Street 0.00/1,000 sf Fair Stucco C

Number of Buildings

1


One Hundred Forty Holdings, LLC Moishe Mana Brown Asset Two, LLC Brown Asset Two, LLC


N/A Developer Private Investor Listing Broker, Public Records & Media


Fee Simple/Freehold Office w/ Ground Retail Office w/ Ground Retail Mika Mattingly N/A 29486/1853



Adjusted Price

$7,750,000


Sale


2.3.a


Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 01/2015 Sale One Hundred Forty Holdings, LLC

Seller Brown Asset Two, LLC

No. 3 Price $7,750,000





89%


N/A N/A $305.42 N/A

Financial No information recorded Map & Comments This is the sale of a multi-tenant building located at the southwest corner of NW 2nd Street and North Miami Avenue, within the CBD of Miami, Miami-Dade County, Florida. The property consists of a two-story building with 25,375 SF situated on a 0.34 acre site. The property was built during 1925 and was in fair condition at time of sale. The property was under contract for 30 to 45 days and closed January 2015 for $7,750,000 ($305.42/SF of building area). The buyer purchased the property with the intent to remodel & re-lease with retail and office tenants. This was an "arms length" transaction.


Sale


2.3.a



Dade Commonwealth Building - As Is 139 NE 1st Street Miami, FL 33132 United States


Miami-Dade

Govt./Tax ID

N/A

No. 4


Acres 0.170

Square feet 7,500

N/A

N/A

Land Area Gross Site Development Status Shape Topography Utilities



N/A N/A

Actual FAR

3.72


50 ft NE 1st Street

Zoning

T6-80, Urban Core Transect Zone

General Plan

N/A


43,265 sf 38,122 sf 27,911 sf N/A Existing Multi-tenant 1927

Year Renovated

2004

Amenities

N/A


7 None 0.00/1,000 sf Average Masonry C

Number of Buildings

1


Dream Downtown Miami, LLC Wynwood Fund Titan Development Partners, LLC Titan Development Partners, LLC


24 Month(s) Private Syndicator Private Investor Contract & Appraisal on-file


Leased Fee Office Re-purposed to boutique hotel N/A N/A 29862-4695



Adjusted Price

$9,200,000


Sale


2.3.a


Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer 11/2015 Sale Dream Downtown Miami, LLC 11/2015 Sale Dream Downtown Miami, LLC 09/2013 N/A N/A 05/2013 N/A N/A

Seller Titan Development Partners, LLC Titan Development Partners, LLC N/A N/A

No. 4 Price $9,200,000


$9,200,000

$241.33

N/A N/A

N/A N/A




39%


N/A N/A $241.33 N/A

Financial No information recorded Map & Comments This comparable sale property is a 27,911-square foot (usable and 38,122-square feet of rentable area, including common areas), seven-story, urban office building located at 139 N.E. 1st Street in the downtown Miami central business district (CBD). The improvements were constructed in 1925, renovated in 2004 and are situated on a 0.172-acre, high density, urban core zoned site. Currently, the property is 39% leased. We also noted, that the property was originally developed to 17-stories and severely damaged in the Hurricane of 1926 forcing the removal of the top 10-floors. Also notable, is the property was added to the U.S. National Register of Historic Places in January 1989 based on the neo-classicism architectural style that represents the opulence of the 1920's economic boom. The purchase contract is dated September 2014 at a purchase price of $9,200,000 with the closing date revised several times and ultimately closing in November 2015. The buyer intends on adding 7-floors stacked on top of the existing roof and converting the subject property into a 122-room boutique hotel including retail/restaurant space and a sundeck with spa on the existing roof/future 8th floor.


Sale


2.3.a



Wynwood Treehouse 2210 NW Miami Court Miami, FL 33127 United States


Miami-Dade

Govt./Tax ID

01-3125-067-0020

No. 5


Acres 0.306

Square feet 13,345

Land Area Gross

0.306

13,345




N/A N/A

Actual FAR

0.58


N/A NW Miami Court N/A NW 22nd Street

Zoning

T5-O, Urban Center & NRD-1

General Plan

Wynwood


N/A 7,806 sf N/A N/A N/A Single Tenant 1946

Year Renovated

1995

Amenities

N/A


1 N/A 0.00/1,000 sf Fair N/A N/A

Number of Buildings

N/A


Nostrand Avenue Holdings of Brooklyn, LLC Phil Knoll Montauk Miami Realties, Inc. Tim Zyto


4 Month(s) Private Investor Private Investor Tony Cho, Listing Broker

Interest Transferred Current Use Proposed Use Listing Broker Selling Broker

Fee Simple/Freehold Vacant office/warehouse Renovate to retail Metro 1 Commercial #305-571-9991 Tom Rotsztain, Rotsztain & Sulichin #305-7882878 30141/136

Type Date Sale Price Financing Cash Equivalent

Sale 6/30/2016 $3,850,000 Cash to Seller $3,850,000

Capital Adjustment

$0

Adjusted Price

$3,850,000

Doc #


Sale


2.3.a


Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller 06/2016 Sale Nostrand Avenue Montauk Miami Realties, Holdings of Brooklyn, LLC Inc.

No. 5 Price $3,850,000





0%


N/A N/A $493.21 N/A

Financial No information recorded Map & Comments This comparable sale is a vacant 7,806-SF office/warehouse property with fenced yard located at the northwest corner of NW 22nd Street and NW Miami Court within the Wynwood Arts District. The property was broker listed at $4,100,000 and contracted "all cash" at $3,850,000. The property was marketed as a renovation investment and the buyer finalized the approvals to demolish 4,608-SF of warehouse area and redevelop /renovate a total of 7,750-SF for multi-tenant retail showroom with open floor plans, mezzanines, glass storefronts, vanilla shell condition, polished concrete floors, exposed duct work and on-site parking. Rental rates for renovated retail space is $45.00-PSF, triple net for 1,028 & 2,095 square foot bays.


Sale


Addendum C

LEGAL DESCRIPTION

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Addendum D

PRÉCIS METRO REPORT - ECONOMY.COM, INC.

© 2017 CBRE, Inc.


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MIAMI-MIAMI BEACH-KENDALL FL Data Buffet® MSA code: IUSA_DMMIA

ECONOMIC DRIVERS TOURIST

FINANCIAL

DESTINATION

CENTER

LOGISTICS

EMPLOYMENT GROWTH RANK 2015-2017

2015-2020

2nd quintile

2nd quintile

140

$£€

83

�� RECOVERY ��

At Risk

Moderating Recession

In Recession

STRENGTHS & WEAKNESSES »» »» »» »»

STRENGTHS

Strong ties to Latin America. Luxury status attracts international capital. International trade poised to accelerate. Well-developed shipping and distribution infrastructure.

WEAKNESSES

»» High household debt burden. »» Congested roads and airport. »» Industrial structure that leaves economy susceptible to business cycle downturns.

RISK EXPOSURE 2016-2021

LONG TERM

46 1st quintile

X

SHORT TERM

X

FORECAST RISKS

Highest=1 Lowest=401

UPSIDE

»» International ties boost construction, finance and trade by more than expected. »» Commercial development and transit hub shift MIA’s growth path upward. »» Stronger population growth.

DOWNSIDE

»» Foreclosures undermine house prices, balance sheets suffer. »» International immigration weakens. »» Strong dollar slows international tourism.

MOODY’S RATING

Aa2

COUNTY AS OF APR 11, 2016

LIVING

VITALITY RELATIVE

U.S.=100%

U.S.=100%

RANK

62 Best=1, Worst=401

ANALYSIS Recent Performance. Miami-Miami BeachKendall is not faring as well as the rest of Florida and the nation, but economic growth in the metro division has picked up since the first quarter. MIA’s unemployment rate is no longer falling, but this has more to do with a turn up in the labor force than a worsening in employment. A more favorable mix of job creation and limited supply of labor are driving up pay; average hourly earnings are rocketing higher. The more than 6% annualized gain since April is the biggest jump for any six-month period since the decade began. More jobs and income are helping housing. According to the Miami Association of Realtors, the median sale price for a single-family home is $300,000, the highest level since the Great Recession. International appeal. MIA’s economy will grow faster than the nation’s because the metro division attracts some of the most talented and productive workers from across the Western Hemisphere. MIA is the only metro area or metro division in the U.S. where more than half of the population was born in a foreign country, and more than 90% of these newcomers were born in Latin America, which includes Cuba. Over the last two generations, these migrants have transformed MIA from a sleepy retiree destination to the cultural, financial and media capital of Spanish-speaking America. This growth should carry on, but hostility to trade and immigration among the American electorate and the incoming administration in Washington DC represents a new threat to MIA’s economy. Cruise control. After a lackluster 2016, job growth in leisure/hospitality will accelerate next year. In particular, cruise lines are helping to fuel this growth. In the last fiscal year, the city’s port welcomed 5 million passengers, a world record. The current fiscal year will be even busier than the last, as two new cruise ships will begin service from PortMiami this quarter. The port is also prep-

2010 2011 2012 2013 2014 2015

INDICATORS

ping for growth beyond this quarter—the facility recently won a $33 million state grant that will be used to build a cruise terminal capable of processing more than 5,000 cruise passengers at once. Growth in the cruise industry is also good for jobs in professional services in MIA, which is the headquarters of Carnival Corp. and Royal Caribbean Cruises Ltd., the world’s two largest cruise lines. FIU. Florida International University has emerged as a key driver for MIA, but it will contribute little to growth over the next five years. With an annual operating budget of more than $1 billion, the state’s second largest student body, and more than 5,000 full- and part-time employees, the school is a stable source of income for many households. However, compared with other large institutions, the economic impact of FIU is muted because 41% of its enrollees are part-time students who did not migrate to MIA; despite FIU’s name, its student body mostly consists of local residents. In 2005, the administration capped enrollment in favor of improving the quality of the academic programs. In addition, student growth will be hampered because of America’s shrinking population of college-aged adults. According to the U.S. Census Bureau, the number of U.S. residents who are 18 to 24 years old will decline by 1.3% over the next five years. The projection is even worse for Hispanics, who account for nearly twothirds of FIU’s enrollment—the population of college-aged Hispanics will fall by 3.3% by 2021. In the near term, Miami-Miami Beach-Kendall will strengthen thanks in part to its large port, which will create jobs in trade, manufacturing and tourism. Over the forecast horizon, MIA’s international character, combined with its high-skilled, bilingual workforce, will help it best the U.S. in household income growth. 1-866-275-3266 Kwame Donaldson [email protected] November 2016

2016 2017 2018 2019 2020 2021

104.1 104.4 106.3 108.4 111.1 113.8 Gross metro product (C09$ bil) -0.5 0.2 1.8 2.0 2.5 2.4 % change 985.1 1,007.3 1,031.3 1,056.7 1,089.4 1,123.4 Total employment (ths) -0.3 2.2 2.4 2.5 3.1 3.1 % change 11.1 9.4 8.4 7.6 6.9 6.1 Unemployment rate (%) 8.9 4.6 3.2 -0.4 6.8 6.2 Personal income growth (%) 42.0 41.7 42.0 42.4 42.9 43.8 Median household income ($ ths) 2,508.2 2,580.1 2,611.2 2,641.9 2,668.9 2,693.1 Population (ths) % change 1.8 2.9 1.2 1.2 1.0 0.9 30.6 58.8 17.9 17.4 16.2 11.1 Net migration (ths) 941 962 1,819 2,266 2,077 2,800 Single-family permits (#) 2,262 1,656 3,250 8,050 5,654 9,817 Multifamily permits (#) 195.7 183.0 185.9 207.7 233.6 257.4 FHFA house price (1995Q1=100) 64

BUSINESS

113% 112% 115%

Best=1, Worst=408

BUSINESS CYCLE STATUS Expansion

RELATIVE COSTS


115.9 121.3 127.0 132.3 136.8 141.4 1.9 4.6 4.7 4.1 3.4 3.4 1,142.2 1,166.4 1,189.8 1,212.8 1,228.8 1,235.3 1.7 2.1 2.0 1.9 1.3 0.5 5.3 4.6 3.9 3.5 3.4 3.7 4.9 6.0 7.3 7.1 6.0 5.4 45.3 47.0 49.2 51.3 53.0 54.6 2,728.7 2,767.0 2,806.8 2,847.1 2,887.4 2,926.5 1.3 1.4 1.4 1.4 1.4 1.4 24.7 27.6 29.1 29.7 29.9 28.8 3,345 5,557 7,033 7,630 7,183 6,978 5,671 7,409 7,925 7,080 6,000 6,330 282.0 296.3 300.3 292.7 284.7 281.8

MOODY’S ANALYTICS / Précis® U.S. Metro / South / November 2016


2.3.a

PRÉCIS® U.S. METRO SOUTH �� Miami-Miami Beach-Kendall FL BUSINESS CYCLE INDEX

3-MO MA May 16

JAN 2002=100

Jun 16

Jul 16

Aug 16

Sep 16

Oct 16

125

Employment, change, ths

2.0

2.9

3.4

2.8

1.8

0.2

120

Unemployment rate, %

5.6

5.4

5.3

5.2

5.2

5.2

Labor force participation rate, %

59.8

59.4

59.1

59.0

59.0

59.1

115

Employment-to-population ratio, %

56.5

56.2

56.0

55.9

56.0

56.1

Average weekly hours, #

35.1

35.1

35.1

35.0

35.0

35.1

105

Industrial production, 2007=100

102.8

102.9

103.0

103.0

103.0

102.9

100

Residential permits, single-family, #

3,125

3,073

2,557

3,013

3,308

3,004

95

Residential permits, multifamily, #

5,313

3,756

2,739

3,904

4,794

7,410

Better than prior 3-mo MA

Unchanged from prior 3-mo MA

110

07

Worse than prior 3-mo MA

MIA

CURRENT EMPLOYMENT TRENDS % CHANGE YR AGO

Total 1.8 1.8 1.3 -0.1 -0.2 0.1 Mining Construction 13.8 15.3 10.4 -2.3 -4.7 Manufacturing 1.4 Trade -0.1 1.1 1.4 2.9 0.0 -1.5 Trans/Utilities Information -1.5 -1.3 -1.8 3.2 4.4 3.5 Financial Activities Prof & Business Svcs. 1.7 2.5 3.0 3.1 1.4 0.5 Edu & Health Svcs. Leisure & Hospitality 0.9 2.0 1.5 2.7 0.9 -0.6 Other Services Government -0.3 -0.4 -0.1

13

14 15 16 Goods producing Private services

Sources: BLS, Moody’s Analytics

1998Q1=100, NSA 350 300 250 200 150 100 50 98

09

10

11

12

13

14

15 16F 17F 18F 19F 20F 21F 22F 23F 24F 25F FL

2

0

2

3

4

6

MIA

EDUCATIONAL ATTAINMENT % OF ADULTS 25 AND OLDER 80%

10 17

10 18

12 19

Unit Labor

60%

24

30

29

Energy

40%

State and local taxes

20%

29

28

Office rentOffice rent

0%

20

12

13

MIA

FL

Unit labor

State and local taxes

Source: Moody’s Analytics

1

8

FL

4

10

U.S.

Sources: Census Bureau, ACS, Moody’s Analytics, 2015

100%

2009

16

RENTAL, % INVENTORY FOR RENT

U.S.

Total

20

13 U.S.

HOMEOWNER, % HOUSES FOR SALE

U.S.=100

0

10

JAN 2006=100

BUSINESS COSTS

2008

07 FL

VACANCY RATES

MIA

Energy

04

RELATIVE EMPLOYMENT PERFORMANCE


Total

01 MIA

0

08

U.S.

Sources: FHFA, Moody’s Analytics


130 125 120 115 110 105 100 95 90 85 07

FL

16

HOUSE PRICE

% CHANGE YR AGO, 3-MO MA Feb 16 Jun 16 Oct 16

10 8 6 4 2 0 -2 -4 -6

06

13

Source: Moody’s Analytics

Sources: BLS, Census Bureau, Moody’s Analytics

11 12 Government

10

40 60 2013

80 100 120 140

2014

29

< High school Some college Graduate school

U.S.

High school College

Sources: Census Bureau, Moody’s Analytics, 2015

POPULATION BY AGE, % ≥75 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 0

1

2

MIA

3

4

5

6

7

8


ECONOMIC HEALTH CHECK

U.S.

Sources: Census Bureau, Moody’s Analytics, 2015

MOODY’S ANALYTICS / Précis® U.S. Metro / South / November 2016 65


2.3.a

PRÉCIS® U.S. METRO SOUTH �� Miami-Miami Beach-Kendall FL

TOP EMPLOYERS

MIGRATION FLOWS

INDUSTRIAL DIVERSITY

Baptist Health Systems of Southern Florida 14,627 University of Miami 13,428 Publix Super Markets Inc. 12,000 Jackson Health System 10,010 American Airlines 9,939 Miami-Dade Community College 6,787 AT&T 6,629 Wells Fargo & Co. 5,100 American Sales & Management 3,500 Macy’s 3,368 Miami Children’s Hospital 3,345 Royal Caribbean Intl./ Celebrity Cruise 3,331 Mount Sinai Medical Center 3,221 JPMorgan Chase and Co. 3,200 Florida Power & Light Co. 3,178 Florida International University 3,132 Carnival Cruise Lines 3,065 Winn-Dixie Stores Inc. 3,000 HCA 2,412 Veterans Affairs Medical Center 2,300

INTO MIAMI FL

Most Diverse (U.S.) 1.00

Fort Lauderdale FL New York NY West Palm Beach FL Orlando FL Tampa FL Austin TX Atlanta GA Cape Coral FL Los Angeles CA Washington DC Total in-migration

0.80

0.62 0.60 0.40 0.20 0.00

Least Diverse

EMPLOYMENT VOLATILITY Due to U.S. fluctuations

Fort Lauderdale FL Austin TX West Palm Beach FL Orlando FL New York NY Tampa FL Atlanta GA Cape Coral FL Houston TX Jacksonville FL Total out-migration

80% 60%

140

97 40%

PUBLIC Federal 19,714 State 17,978 Local 100,351 2015

100

20% 0%

Not due to U.S.

Due to U.S.

MIA

% of Total Employment

Mining Construction Manufacturing Durable Nondurable Transportation/Utilities Wholesale Trade Retail Trade Information Financial Activities Prof. and Bus. Services Educ. and Health Services Leisure and Hosp. Services Other Services Government

MIA FL U.S. $5,467 $7,023 $110,528 $54,575 $50,987 $64,354 $55,504 $68,746 $80,667 nd $72,931 $82,450 nd $60,466 $77,689 $58,753 $58,935 $67,456 $75,006 $76,500 $82,548 $35,761 $33,779 $34,289 $144,170 $88,771 $110,216 $37,488 $37,441 $54,785 $52,015 $52,409 $67,615 $52,776 $52,875 $53,853 $33,659 $28,369 $27,201 $28,963 $32,615 $36,830 $80,557 $71,992 $75,980

Sources: Percent of total employment — BLS, Moody’s Analytics, 2015, Average annual earnings — BEA, Moody’s Analytics, 2014

PER CAPITA INCOME HIGH-TECH EMPLOYMENT MIA 28.0 2.5

44

U.S. 6,767.6

4.8

HOUSING-RELATED EMPLOYMENT

40

Ths

36

% of total

MIA 104.6 9.3

10 11

12 13

Sources: BEA, Moody’s Analytics

66

14 15

U.S. $48,112 U.S. - $48,112

U.S. 13,151.2

HIGH

% of total

MID

Ths

08 09

20,000 15,000 10,000 5,000 0 12

13

14

15

2012 2013 2014 2015

Domestic -17,931 -21,354 -27,787 -32,723 Foreign 35,818 38,777 43,953 43,862 17,887 17,423 16,166 11,139 Total Sources: IRS (top), 2014, Census Bureau, Moody’s Analytics

NAICS Industry

9.3

Source: Moody’s Analytics, 2015

LOW

48

06 07

25,000

LEADING INDUSTRIES BY WAGE TIER

$ THS

SA_ 2015 MIA $43,980 FL - $44,429 FL $44,429 - $43,980

-23,965

NET Net MIGRATION, # Migration, SA_

Average Annual Earnings

MIA FL U.S. 0.0% 0.1% 0.5% 3.6% 5.3% 4.5% 3.5% 4.2% 8.7% 57.6% 67.9% 63.0% 42.4% 32.1% 37.0% 6.0% 3.3% 3.8% 6.5% 4.1% 4.1% 13.3% 13.4% 11.0% 1.7% 1.7% 1.9% 7.0% 6.6% 5.7% 14.2% 15.1% 13.9% 15.3% 14.8% 15.5% 11.9% 14.0% 10.7% 4.7% 4.1% 4.0% 12.3% 13.4% 15.5%

29,394 6,477 4,120 3,902 3,699 2,916 2,508 1,895 1,646 1,255 93,489

Net migration

U.S.

COMPARATIVE EMPLOYMENT AND INCOME Sector

19,270 5,134 2,828 2,410 1,882 1,812 1,515 1,137 1,033 998 69,524

FROM MIAMI FL

Relative to U.S.

100%

Sources: Guide to Military Installations, 2011, South Florida Business Journal, 2014, The Beacon Council, April 2007

Number of Migrants

6211 5411 GVF 5221 GVL 6221 GVS 4811 7225 7211 4451 5613

Offices of physicians Legal services Federal Government Depository credit intermediation Local Government General medical and surgical hospitals State Government Scheduled air transportation Restaurants and other eating places Traveler accommodation Grocery stores Employment services

Location Employees Quotient (ths) 1.2 2.5 0.9 1.2 0.9 1.2 0.5 4.5 1.0 2.1 1.3 0.7

24.1 22.0 19.6 15.3 100.2 43.0 18.1 14.3 77.8 29.7 25.9 19.2


EMPLOYMENT & INDUSTRY

Source: Moody’s Analytics, 2015

MOODY’S ANALYTICS / Précis® U.S. Metro / South / November 2016


2.3.a

Moody’s Analytics helps capital markets and credit risk management professionals worldwide respond to an evolving marketplace with confidence. With its team of economists, the company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research, and financial risk management. By offering leading-edge software and advisory services, as well as the proprietary credit research produced by Moody’s Investors Service, Moody’s Analytics integrates and customizes its offerings to address specific business challenges. Concise and timely economic research by Moody’s Analytics supports firms and policymakers in strategic planning, product and sales forecasting, credit risk and sensitivity management, and investment research. Our economic research publications provide in-depth analysis of the global economy, including the U.S. and all of its state and metropolitan areas, all European countries and their subnational areas, Asia, and the Americas. We track and forecast economic growth and cover specialized topics such as labor markets, housing, consumer spending and credit, output and income, mortgage activity, demographics, central bank behavior, and prices. We also provide real-time monitoring of macroeconomic indicators and analysis on timely topics such as monetary policy and sovereign risk. Our clients include multinational corporations, governments at all levels, central banks, financial regulators, retailers, mutual funds, financial institutions, utilities, residential and commercial real estate firms, insurance companies, and professional investors. Moody’s Analytics added the economic forecasting firm Economy.com to its portfolio in 2005. This unit is based in West Chester PA, a suburb of Philadelphia, with offices in London, Prague and Sydney. More information is available at www.economy.com. Moody’s Analytics is a subsidiary of Moody’s Corporation (NYSE: MCO). Further information is available at www.moodysanalytics.com.

About Moody’s Corporation Moody’s is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody’s Corporation (NYSE: MCO) is the parent company of Moody’s Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody’s Analytics, which encompasses the growing array of Moody’s nonratings businesses, including risk management software for financial institutions, quantitative credit analysis tools, economic research and data services, data and analytical tools for the structured finance market, and training and other professional services. The corporation, which reported revenue of $3.5 billion in 2015, employs approximately 10,400 people worldwide and maintains a presence in 36 countries. © 2016, Moody’s Analytics, Moody’s, and all other names, logos, and icons identifying Moody’s Analytics and/or its products and services are trademarks of Moody’s Analytics, Inc. or its affiliates. Third-party trademarks referenced herein are the property of their respective owners. All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT. All information contained herein is obtained by Moody’s from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. Under no circumstances shall Moody’s have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of Moody’s or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if Moody’s is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The financial reporting, analysis, projections, observations, and other information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell, or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER. Each opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation prior to investing.


About Moody’s Analytics


Addendum E

CLIENT CONTRACT INFORMATION

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QUALIFICATIONS

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Stuart J. Lieberman, MAI is a Vice president with over 28 years of real estate appraisal and consulting experience. Mr. Lieberman is in the Valuation & Advisory Services Group’s Miami office in the South Florida/Caribbean Region.

STUART J. LIEBERMAN, MAI Vice President Valuation and Advisory Services T. +1 305 381 6472 F. +1 305 381 6441 [email protected] CLIENTS REPRESENTED  Bank of America Merrill Lynch SunTrust Bank  BankUnited   TotalBank  Mercantil Commercebank  Stonegate Bank  Broward County  Shutts & Bowen, LLP  Akerman Senterfitt  Flagler Development  Woolbright Development  Miami-Dade County, Internal Services Dept.

Since 1987, Mr. Lieberman has provided real estate valuation and consulting services to the financial lending community, institutional clients, government agencies, corporate entities, legal & accounting professionals, developers and private individuals. Mr. Lieberman has experience providing market studies, feasibility studies, highest & best use analysis, market rent studies, expert testimony & litigation support and portfolio analysis. Mr. Lieberman’s experience encompasses a wide variety of property types including single & multi-family residential, senior housing, mobile home parks, high density urban & ocean front developments, open space & public parks, automobile dealerships, service stations & convenience stores, funeral homes, medical office & surgical centers, mixed-use office, financial institutions & branch banks, retail shopping centers & regional malls, parking garages, restaurants & night clubs, movie theatres, health & fitness clubs, marinas & shipping terminals, FBOs (fixed base operations), industrial flex warehouses, bulk distribution, truck terminals, refrigeration warehouses, R&D, business parks, self-storage facilities; and, special purpose properties, including bowling alleys, broadcasting facilities, car wash, historical properties, public & private schools, day care facilities, houses of worship & religious facilities, tourist attractions, sport arenas and entertainment venues & theatres.

CREDENTIALS Professional Affiliations/Accreditations/Certifications 

Appraisal Institute – Designated Member No. 12003

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Certified General Real Estate Appraiser, State of Florida License RZ 1074

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Licensed Real Estate Broker – Associate, State of Florida License BK 0477878

EDUCATION 

University of South Florida, Tampa, FL, BA, Political Science – 1985

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Appraisal Institute, American Institute of Real Estate Appraisers, Society of Real Estate Appraisers and Florida Real Estate Commission core courses, electives and seminars.


PROFESSIONAL PROFILE


Attachment: 2100 Backup

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JAMES E. AGNER, MAI, AI-GRS, SGA, MRICS Senior Managing Director Florida-Caribbean Region Valuation and Advisory Services T. +1 305 381 6480 F. +1 305 381 6441 [email protected] www.cbre.com/James.Agner CLIENTS REPRESENTED  LNR Partners  Bank of America Merrill Lynch  SunTrust Bank  PNC Bank  Mercantil  Popular Community Bank  5/3 Bank  Sabadell  Santander Bank  Regions Bank  TD Bank  Bank United  BB&T Bank  CitiBank  Deutsche Bank  Ocean Bank

James Agner is the Senior Managing Director of the Valuation & Advisory Services for the Florida-Caribbean Region. Located in the CBRE Miami office since 1995, Mr. Agner has over thirty years of real estate appraisal and consulting experience throughout the State of Florida, with primary experience in South Florida and in the Caribbean. Mr. Agner is a designated member of the Appraisal Institute (MAI) and General Review Specialist (AI-GRS), member of the Society of Golf Appraisers (SGA), and Royal Institution of Chartered Surveyors (MRICS) and is licensed as a Certified General Real Estate Appraiser in the State of Florida and Georgia. He also has provided expert witness testimony in the Circuit Courts – State of Florida and United States Bankruptcy Courts. As Senior Managing Director, Mr. Agner leads a valuation and advisory staff in Miami and Palm Beach Counties that provides exceptional quality appraisal work and client service in South Florida, Treasure Coast and the Florida Keys. He also coordinates all activities for Florida and in the Caribbean, including overseeing new business development, client relations and appraisal quality control production. Mr. Agner is also the National Director of the Golf Valuation Group and the Net Lease Valuation Group for CBRE.

CREDENTIALS Professional Affiliations/Accreditations/Certifications 

Appraisal Institute - Designated Member (MAI), Certificate No. 7791

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Appraisal Institute – General Review Specialist (AI-GRS), Certificate No. 69150

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Society of Golf Appraisers (SGA), Certificate No. 25

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Royal Institution of Chartered Surveyors - Member (MRICS), Certificate No. 7505662

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Certified General Real Estate Appraiser, State of Florida, RZ382

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Certified General Real Estate Appraiser, State of Georgia, #345321

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Licensed Real Estate Broker, State of Florida, BK402088

EDUCATION 

Florida State University, Tallahassee, FL, Bachelors of Science in Business Administration, Marketing - 1981


PROFESSIONAL PROFILE


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Attachment: 2100 Backup Document (2100 : Resolution Authorizing the Purchase of Property Located

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