20-Parcel Grp 5 Appraisal.pdf

1110 N. Florida Avenue, Suite 110 Tampa, FL 33602 813.223.9111 DohringAhern.com

APPRAISAL | BROKERAGE

APPRAISAL REPORT

Azure Estates 13 Finished Townhome Lots 12701-12722 Lockey Lane Tampa, Florida 33612

Prepared For:

Affordable Housing Services Department Hillsborough County 601 East Kennedy Boulevard Tampa, Florida 33602

Requested By:

Ms. Cheryl Howell Director

As Of:

April 4, 2022

A P P R A I S A L | B R O K E R A G E

Street View of Subject Property

Aerial View of Subject Property

TABLE OF CONTENTS

Introduction 1

Summary of Salient Facts and Conclusions 1 Purpose of the Appraisal 1 Intended Use/Client and Intended User(s) 2 Competency of the Appraisers 2 Interest Appraised 2 Effective Date of Value 2 Date of Report 2 Scope of Work 2 Inspection 4 Methodology 4

Site Description 4

Zoning 6

Flood Information 7 Utilities 7 Ownership and Subject Property History 7 Taxes and Assessments 7

Neighborhood Description 7

Highest and Best Use 16

Physically Possible 17 Legally Permissible 19 Financially Feasible/Maximally Productive 19 As If Vacant 19 As Improved 19 Market Position of Subject 20

Valuation 22

Sales Comparison Approach 22

Land Sale Write-ups 23

Land Sales Adjustment Grid 33 Comparables Map 34 Land Sales Analysis 35

“As Is” Market Value via Sales Comparison

Approach 37

Summary and Reconciliation 38

Certification 39

Assumptions 41

Definitions 44

Addenda 47

Subject Photos 47 Area Map 51 Neighborhood Map 52 Plat Map 53

Aerial Map 54 Azure Estates Plat Map 55 Zoning Map 56 Future Land Use Map 57 Flood Map 58 Wetland Map 59 Property Appraiser’s Record 80 Tax Roll (Equal Assessments Lots 1-13) 93 Engagement Letter 94

Brenda Dohring Hicks, MAI

CEO |Cert Gen RZ385

Jeff Hicks, MAI

President | Cert Gen RZ754

1110 N. Florida Avenue, Ste 110

813.223.9111

DohringAhern.com

April 11, 2022

Ms. Cheryl Howell Affordable Housing Services Department Hillsborough County 601 East Kennedy Boulevard

Re: Azure Estates 13 Finished Townhome Lots 12701-12722 Lockey Lane

Tampa, Florida 33612

Dear Ms. Howell:

Thank you for the opportunity to provide appraisal services. Based on our agreement with you, we have performed an appraisal and reported our findings in this Appraisal Report format. This report is intended to comply with the reporting requirements under Standards Rule 2.2 of the Uniform Standards of Professional Appraisal Practice (USPAP 2020-2021 edition).

The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated below. Dohring Ahern is not responsible for unauthorized use of this report.

The subject is located on the northeast corner of Lockey Lane and East 127th Avenue in Tampa, Hillsborough County. The subject comprises 13 vacant, developed townhome lots within the subdivision of Azure Estates. Azure Estates is a 26-unit PD (Planned Development) constructed in the early 1980’s.

The subject lots are rectangular comprising a total of approximately 0.65 gross acres. Based on our sales comparison analysis, there is no quantifiable discount or premium for viewing the subject lots individually or collectively.

This report is the result of the appraiser and client concurring on the appropriate valuation methods based on the subject property specifics resulting in a credible value opinion. The scope of the appraisal is addressed on the following pages, while the definition of Market Value is found at the end of this report.

This appraisal does not include any extraordinary assumptions or hypothetical conditions. The following table summarizes our relevant data and value conclusions.

Dohring Ahern

Introduction

Summary of Salient Facts and Conclusions

Property Name Azure Estates

Property Address 12701/12703/12705/12707/12709/12710/12711/12712/ 12714/12716/12718/12720/12722 Lockey Lane Tampa, Florida 33612

Property Tax Identification Number(s) U-07-28-19-1GM-000001-00007.0;U-07-28-19-1GM-000001-

00008.0;U-07-28-19-1GM-000001-00009.0;U-07-28-19-1GM-

000001-00010.0;U-07-28-19-1GM-000001-00011.0;U-07-28-

19-1GM-000001-00012.0;U-07-28-19-1GM-000002-00007.0;

U-07-28-19-1GM-000002-00006.0;U-07-28-19-1GM-000002-

00005.0;U-07-28-19-1GM-000002-00004.0;U-07-28-19-1GM-

000002-00003.0;U-07-28-19-1GM-000002-00002.0;U-07-28-

19-1GM-000002-00001.0

Owner(s) of Record Hillsborough County

Date of the Report April 11, 2022

Effective Date of the Appraisal April 4, 2022

Property Rights Appraised Fee Simple Interest

Land Area 28,484 square feet, 0.65 acres (2,191 square foot average)

Zoning The property is zoned PD “Planned Development” by Hillsborough County. The property has a R-20 “Residential 20” future land use.

Extraordinary Assumptions None

Hypothetical Conditions None

Highest and Best Use As Vacant Various residential uses commensurate with the development character of the area such as single family detached homes and attached townhomes.

Highest and Best Use As Improved n/a

Est. Exposure Time & Marketing Period 12 months

Market Value Conclusions “As Is” 13 Vacant Lots

Cost Approach n/a

Sales Comparison Approach $910,000

Income Approach n/a

Final Value Conclusion $910,000

Purpose of the Appraisal

The purpose of this appraisal is to estimate the “As Is” Market Value of the fee simple interest of the subject’s finished lots.

https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000090U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000100U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000100U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000110U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000120U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000120U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000070U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000060U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000050U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000050U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000040U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000030U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000030U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000020U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000010U

Intended Use/Client and Intended User(s)

The intended use of this report is for land valuation. It is our understanding that the intended user and client of the report is Hillsborough County, the only intended user of this report. Use of this report by Third-Parties and other unintended users is not permitted.

This report must be used in its entirety. Reliance on any portion of the report independent of others may lead the reader to erroneous conclusions regarding the property values. Dissemination of any or all of the report is strictly prohibited for any marketing efforts, print or any electronic means. The definition of Market Value relied upon is included before the Addenda.

Competency of the Appraisers

The appraisers' specific qualifications are included within this report. These qualifications serve as evidence of their competence for the completion of this appraisal assignment in compliance with the competency provision in USPAP.

The appraisers' knowledge and experience, combined with their professional qualifications, are commensurate with the complexity of this assignment. The appraisers have previously provided consultation and value estimates for properties similar to the subject in Florida.

Interest Appraised

Fee Simple Interest is 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.

Effective Date of Value

April 4, 2022

Date of Report

April 11, 2022

Scope of Work

Scope of work is the most critical decision an appraiser will make in performing an assignment.

Solving an appraisal problem involves three steps:

1. Identifying the problem

2. Determining the solution (or scope of work)

3. Applying the solution

None of the three steps can be omitted, and each must be performed in order. To analyze the problem, the appraiser identifies seven key assignment elements: (1) client, (2) intended users in addition to the client, (3) intended use, (4) objective of the appraisal, or type of value and its definition,

(5) effective date, (6) property characteristics that are relevant to the assignment such as the interest to be valued and physical and legal characteristics), and (7) assignment conditions such as hypothetical conditions, extraordinary assumptions, and other requirements. These elements provide the framework for the assignment and allow the appraiser to identify the problem to be solved.

The second step is to determine the scope of work to solve the problem. Scope of work encompasses all aspects of the valuation process, including which approaches to value will be used; how much data is to be gathered, from what sources, from which geographic area, and over what time period; the extent of the data verification process; and the extent of property inspection, if any. The scope of work decision is appropriate when it allows the appraiser to arrive at credible assignment results and is consistent with the expectations of similar clients and the work that would be performed by the appraiser’s peers in a similar situation.

Source: Appraisal of Real Estate

Source: Stephanie Coleman, Scope of Work (Chicago: Appraisal Institute)

Inspection

Jeff Hicks has inspected the subject site and the general neighborhood. Dohring Ahern, Inc.'s professionals are not engineers and are not competent to judge matters of an engineering nature, nor has Dohring Ahern, Inc. retained independent structural, mechanical, electrical, or civil engineers in connection with the report. As such, Dohring Ahern, Inc. makes no representations relative to the condition of the improvements, if any exist. Unless otherwise noted in the report, no problems were brought to the attention of Dohring Ahern, Inc.'s professionals by ownership or management.

Unless otherwise noted, Dohring Ahern, Inc.'s professionals inspected less than 100% of the entire interior and exterior portions of the improvements. If questions regarding engineering studies are critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied upon.

Data Research

We collected factual information about the subject property and the surrounding market. Our research included CoStar, Loopnet, MLS and to some degree the Hillsborough County Property Appraiser’s Office. We generally researched three years from the date of our valuation including reviewing any relevant current listings. We confirmed that information with various sources such as buyers, sellers and brokers.

Methodology

In this instance, we have used one of the three traditional approaches to value, the Sales Comparison Approach. The Cost and Income Approaches are not typically used to estimate value for developed vacant residential lots. The Sales Comparison Approach provided sales of similar residential lots as the subject in which to estimate Market Value.

Site Description

The subject is located on the northeast corner of Lockey Lane and East 127th Avenue in Tampa, Hillsborough County. The subject comprises 13 vacant, developed townhome lots within the subdivision of Azure Estates. The lots are contiguous and located across the street from one another.

The subject site is rectangular comprising approximately 0.65 gross acres. In addition, there are several box culverts leading to onsite water detention and basin.

Along the subject segment, both Lockey Lane and East 127th Avenue are undivided, two-way neighborhood feeder roads. There are four access points to the subject subdivision. The first ingress/egress point is along the southern segment at East 127th Avenue. The remaining ingress/egress points are all along North 20th Street.

Lockey Lane is a private road, not dedicated to the county, with home owner’s within the community responsible for maintenance and upkeep. There are mature trees and landscaping within the subdivision and along the perimeter of the subject.

Google Aerial

Improvements

The subject’s improved vacant townhome lots are located within the Azure Estates subdivision.

Azure Estates is a planned development with its own private roadway and Declaration of Restrictions, Limitations, Conditions, and Agreements. A recorded copy of the agreement is provided in the Addenda.

As of the date of inspection, 13 of the total 26 townhome lots, have been improved with townhome units. The individual lot dimensions are approximately 21’ x 85’. The 13 existing townhomes, constructed in 1985, are 3Br/2Ba comprising approximately 1,300 square feet of living area.

Resales presented below range between $150,000-$170,000, with annual Home Owner’s

Association (HOA) fees about $800 per year.

Zoning

The property is zoned PD “Planned Development” by Hillsborough County. The property has a R-20 “Residential 20” future land use.

Flood Information

The subject site is generally at road grade. Per FEMA Map No., 12057C0216H dated August 8, 2008, the property is situated in Flood Zone X. Flood hazard insurance is not required for buildings situated in this zone.

Utilities

Water service is provided by Hillsborough County. Sewer service is provided by Hillsborough County. Phone service to the general area is provided by Frontier Communication. Police and fire services are provided by Hillsborough County. Electricity service is provided by Tampa Electric.

Ownership and Subject Property History

According to the Hillsborough County Property Appraiser’s Office, the current owner of record is Hillsborough County. The property is identified as:

U-07-28-19-1GM-000001-00007.0

U-07-28-19-1GM-000001-00008.0

U-07-28-19-1GM-000001-00009.0

U-07-28-19-1GM-000001-00010.0

U-07-28-19-1GM-000001-00011.0

U-07-28-19-1GM-000001-00012.0

U-07-28-19-1GM-000002-00007.0

U-07-28-19-1GM-000002-00006.0

U-07-28-19-1GM-000002-00005.0

U-07-28-19-1GM-000002-00004.0

U-07-28-19-1GM-000002-00003.0

U-07-28-19-1GM-000002-00002.0

U-07-28-19-1GM-000002-00001.0, within section 07, township 28 and range 19.

No sale of the property was noted in a five year sales search. We are not aware that the subject is currently under contract or available for sale.

Taxes and Assessments

The current just market assessment for the property is $57,460 or $2.02 per square foot. The current total real estate taxes are $67.99. Current taxes have been paid. There are no delinquent real estate taxes.

Neighborhood Description

The neighborhood analysis provides the link between factors which influence the area as a whole and those which influence a particular property. The reason we analyze the neighborhood in the appraisal process is to determine how the four forces affecting value; social, economic, government and environmental, influence property values in the specific area in which the subject is located.

https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000090U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000100U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000110U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000001000120U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000070U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000060U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000050U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000040U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000030U https://gis.hcpafl.org/propertysearch/#/parcel/basic/1928071GM000002000020U

The stages of a neighborhood are generally described as follows.

➢ Growth - A period in which the neighborhood gains public favor and acceptance;

➢ Stability - A period of equilibrium without market gains or losses;

➢ Decline - A period of diminishing demand;

➢ Revitalization - A period of renewal, modernization and increasing demand.

Zip Code Boundaries

Source: STDB

The subject neighborhood is generally defined as south of Fletcher Avenue, east of Armenia Avenue, north of Waters Avenue and west of Bruce B. Downs Boulevard. The development character along Busch Boulevard is commercial with retail and office as the primary uses. One noticeable trend in the area is the conversion of single-family homes to office use, primarily owner-occupied.

The subject neighborhood is largely built out with commercial development along the main arterials, such as Busch Boulevard, Nebraska, Fowler and Fletcher avenues with supporting residential development.

Single-family homes in the area generally range from 1,200 to 1,700 square feet, excluding extremes.

The following table summarizes demographics in a one-mile radius of the subject property.

Population within the radius is 22,286. The median age is 31.9 and median household income is $27,925. There are 960 businesses and 15,033 employees in the radius. White Collar employment is 45%, Blue Collar is 33%, and Services round out the remaining 22%. The unemployment rate in the radius is 9.7%.

Fowler Avenue reflects mixed commercial, having the majority of the national retailers including University Square Mall located at the northwest quadrant of Fowler Avenue and Bruce B Downs Boulevard. University Mall was purchased by RD Management for $29.5 million in 2014. The site comprises a total of 96 acres.

Construction began in early 2016 redeveloping the west side of the mall, dividing the former JCPenney space between three new anchor tenants on two floors. Dillard’s will also be moving from its current location in the mall to the vacant former Macy’s space. Two free-standing restaurants outparcels are planned along Fowler Avenue.

Various uses are being considered such as Diamond View launched Vū, a 10,000 square foot virtual production studio in a former anchor space at the mall. The new studio has LED Volume or curved LED screens to replace green screens.

The former Sears site was purchased by a Chicago developer Core Spaces who plans a $60 million student housing project to be known as Hub Tampa. The 4.5 acre site was purchased for $6.17 million with plans for373 units, 887 bed student housing development.

Hub Tampa

Fowler Avenue is the main access to MOSI. It also provides secondary access to the USF campus, and the area’s major hospitals. Fletcher Avenue reflects mixed commercial, and is the main access to the major hospitals and the USF campus. There is a 12,000 square foot Pepin Heart Hospital & Research Institute that was developed on the USF campus by University Community Hospital.

US Highway 41/Nebraska Avenue reflects mixed commercial and industrial uses. There are numerous unanchored retail buildings along Nebraska Avenue, many built in the 1960s and 1970s. Auto repair shops and neighborhood used car lots are also a prevalent use in the subject neighborhood.

Bruce B Downs Boulevard reflects mostly general commercial uses, and is a major north/south connector the east/west corridors and the neighborhoods supporting uses.

It is likely that the neighborhood will continue to facilitate commercial growth along these corridors.

To a larger extent, the subject neighborhood is impacted by USF. With an enrollment of approximately 47,000 at its four campuses, USF trails only the University of Florida, located in Gainesville, in number of students.

The school offers a full curriculum, including several doctoral programs and, second to the University of Florida, has the largest medical school program in the state. Because the school has a large commuter population and due to the variety of programs offered, the neighborhood has become more diverse than typical university areas. The school is expected to continue to expand, especially in the medical-related fields. This should continue to have a positive impact on the neighborhood and surrounding area.

There are few developable commercial sites along the areas corridors. The university has ample developable land on-site, but none which would be sold off. The university has recently built a new research center and upgraded their entrance to the campus. A $10-million, 45,000 square foot Chester H.

Ferguson Hall was developed on the campus by the USF College of Business Administration. There is a research office park on the south side of Fowler Avenue south of the university. This space is considered R&D, or service center space.

Newer development in this area includes the 234,000 square foot USF-Carter Research Park, developed by USF and Carter Development, which will be two buildings on 22 acres on Spectrum Boulevard. H. Lee Moffitt Cancer Center has developed a $9-million, 71,000 square foot facility on Magnolia Drive.

Busch Gardens is the state's fifth largest tourist attraction, with reported attendance in excess of 2.0 million per year. The park including Adventure Island was purchased in October 2009 by Blackstone Group for $2.3 billion (including Sea World) from Anheuser-Busch InBev.

There are two relatively new student housing projects, the Province and Sterling North, located on the west and east side of N. 42nd Street, north of Fletcher Avenue just north of USF. These properties reflected 1970s vintage apartments, Campus Walk Townhomes a 296 unit project and Springwood Apartments which comprised 57 units. The combined sites comprised 23.19 acres. The buyer was Dinerstein Companies from Houston. These improvements were razed to make way for Sterling North Campus a student housing project. The project includes five-bedroom townhomes and 1-4 bedroom apartments. This LEED certified project comprises 206 units with 704 beds.

The subject neighborhood is considered to be stable with some signs of redevelopment. No significant expansion or decline is evident. The outlook for the neighborhood is expected to remain positive in the foreseeable future.

Our neighborhood description, also called an area of influence, is defined as a group of complimentary land uses. Districts are a type of market area characterized by homogeneous property uses. In broader terms, the market area can encompass one or more neighborhoods and districts or both. A market area reflects similar properties that effectively compete with the subject property. The foregoing residential sales trends and demographic data provide a snapshot of the neighborhood.

Please refer to the Highest and Best Use section of this report for subject-specific market trends.

Economic Drivers

Per December 2021 National Economic Outlook prepared by PNC, the U.S. economy added just

210,000 jobs in November, according to a survey of employers from the Bureau of Labor Statistics (BLS), well below the consensus expectation of 500,000. However, job growth was revised higher in September and October by a combined 82,000.

BLS revisions to job growth in recent months have been upward, and much larger than normal. The unemployment rate fell to 4.2% in November from 4.6% in October, even with a large increase in the labor force. The unemployment rate, which was 3.5% in February 2020 before the pandemic, soared to 14.8% in April 2020 and has been steadily falling since then.

Employment from a survey of households, different from the survey of employers, rose by a huge

1.136 million in November, the largest increase since October 2020. Although the headline November jobs number was disappointing, the overall report was much better.

Real GDP increased 2.1% at an annualized rate in the third quarter, according to the Bureau of Economic Analysis, much weaker than the annualized pace of 6.5% in the first half of the year. The Delta variant weighed on consumer activity in the third quarter.

In addition, supply-chain disruptions were drags on consumer purchases of durable goods;

homebuilding, because of shortages of building materials; business fixed investment; and business inventory accumulation. Those categories will turn into big positives for growth in 2022 as supply-chain disruptions fade.

The Tampa Bay Area (TBA) ranks high among other metro areas of the southeast. TBA has a population of 3.1 million ranking 2nd in the region, a net migration rate of 54,300 ranking 1st in the region, a baby boomer population of 24.8% ranking 2nd in the region, and an unemployment rate of 3.5% ranking 12th in the region. TBA ranks 9th in five-year population growth rate at 6.7%, 3rd in 10-year job growth with an anticipated 256,000 new jobs.

COVID-19

A highly virulent pandemic of respiratory disease caused by the novel Coronavirus (abbreviated COVID-19) evolved into a global presence in Q1 2020. COVID-19 can cause mild to severe illness with persons 65 and older most severely impacted. The United States as of March 1, 2022 has given 554 million vaccination doses, 215 million people fully vaccinated or 65.2% of the population.

Source: Our World in Data

COVID-19's long-term effects on commercial real estate are difficult to quantify. Organizations such as the Urban Land Institute, Costar, and CB Richard Ellis are surveying real estate professionals such as brokers, property managers, buyers/sellers, and appraisers to assist in keeping up to date on its implications. Landlords continue to evaluate and work with those tenants most impacted on their ability to pay rent, regardless of lease language. It remains to be seen the long-lasting effects of the recent rent ending of the eviction moratorium.

As a response to potential re-use of some structures to alternative uses, the concept of upzoning is being discussed in various municipalities. Upzoning would allow for greater density and affordable housing in most instances. It remains to be seen if upzoning will be initiated in the subject's municipality.

Short-term effects for some properties might include landlords offering rent abatement or lease extensions and lender loan modifications, possibly forbearance. The key to this health crisis is its duration.

The majority of restrictions by state and local governments have been lifted. The general consensus of market participants is relatively positive long term outlook. That said, we do not anticipate any substantive effect on market value when viewed through the investor lens of a typically holding period for a particular property type.

As of March 2022, Florida had 36.2 million people have been vaccinated reflecting 66% of the population. With the vaccine and boosters available nationwide, a more hopeful attitude is emerging.

Offices, restaurants and general socializing are normalizing. More recently, subsequent variants have resulted in increased infections but not deaths. Hospitalizations continue with the unvaccinated.

Schools are open with masking rules in Florida largely gone.

The majority of the market data in this report took place after the start of pandemic. Therefore, it is our opinion that the impact of COVID on the subject property is inherently addressed.

Highest and Best Use

According to the Dictionary of Real Estate Appraisal, highest and best use is defined as: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are physically possible, legally permissible, financially feasible and maximally productive.

Alternatively, the probable use of land or improved property, specific with respect to the user and timing of the use, that is adequately supported and results in the highest present value.

Source: The Appraisal of Real Estate 15th Edition

When a site is improved, we must recognize that the highest and best use may differ from the existing use; however, the existing use will continue, unless and until, land value (at its highest and best use) exceeds the total value of the property in its present use. The definition of highest and best use recognizes the contribution of a specific use to the community or to individual property owners.

The determination of highest and best use results from the appraiser's judgment and analytical skill;

i.e., determination of highest and best use is an opinion, not a fact to be found. In appraisal practice, the concept of highest and best use is the premise upon which value is based. In the context of investment value, "most profitable use" is another alternative term but the degree of risk must be considered.

The highest and best use concept requires an analysis of the subject as if it were vacant and also as improved to determine if the land is more valuable as vacant than the property as improved. There are four criteria that must be met. The highest and best use must be 1) physically possible; 2) legally permissible; 3) financially feasible; and, 4) maximally productive. These criteria are generally considered sequentially and the analysis may indicate more than one use.

Source: Stephanie Coleman, Scope of Work (Chicago: Appraisal Institute)

Physically Possible

The subject is located on the northeast corner of Lockey Lane and East 127th Avenue in Tampa, Hillsborough County. The subject comprises 13 vacant, developed townhome lots within the subdivision of Azure Estates. The subject site is rectangular comprising approximately 0.65 gross acres.

The subject site, given its size, stage of horizontal development, and configuration, is well suited for townhome development. All utilities are available to the property, further promoting its potential.

Average daily traffic is the total volume passing a point or segment of a roadway facility, in both directions, during a 24-hour period. A reported 10,463 cars per day pass along North 15th Street nearby the subject. A traffic count area map is presented below.

Traffic Count Map

Source: STDB

Legally Permissible

The property is zoned PD “Planned Development” by Hillsborough County. This zoning classification is based on site plan approval. The property has a R-20 “Residential 20” future land use. The subject lots are approved for one townhome per lot In keeping with the existing subdivision and townhome development requirements.

Financially Feasible/Maximally Productive

Those uses which are financially feasible and that use which is maximally productive are generally closely related. Any use that results in a net return to the land after satisfying the return to the improvements is considered to be financially feasible; however, that use which returns the maximum dollars to the land is considered the use which is maximally productive.

As If Vacant

It is our opinion that the highest and best use of the subject property, as if vacant, would be for its current proposed use for single family attached residential product.

As Improved

Based on the following February 2022 information from the National Association of Realtors (NAR), there were 477 closed townhome and condo sales in Hillsborough County. This reflects an 8.3% decrease from the previous year with 520 sales.

The median sale price of townhomes has increased from $207,310 to $269,000, or a 29.8% increase.

The average sale price of townhomes and condos in Hillsborough County have also increased from $283,831 to $309,376. The median time to contract has dropped 53.8% to 26 days.

The median sale price for townhomes and condos and post row county have steadily increased since 1Q 2018 with a peak in 2Q 2020.

Source: NAR

Source: NAR

Market Position of Subject

To determine the market position of the subject, we have conducted a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Identifying aspects of the subject under these four categories provides qualitative insights on the market position of the subject relative to its competitive set and provides additional context for the selection of comparables and adjustments.

Strengths

• Developed townhome lots in an underserved submarket for newer residential product.

Weaknesses

• New townhome price points are lower than many parts of the city and county.

Opportunities

• Submarket is underserved and lacks affordable new construction.

Threats

• Affordable multifamily rental alternatives within the submarket.

It is our opinion that the highest and best use of the subject property is considered its intended approved townhome use. Based on our sales comparison analysis, there is no quantifiable discount or premium for viewing the subject lots individually or collectively.

A typical buyer would be a local developer. With the highest and best use identified, we can proceed with our valuation.

Valuation

Sales Comparison Approach

Direct Sales Comparison is a valuation technique in which the value estimate is predicated on prices paid in actual market transactions. In this process, comparison is made between vacant residential lots having a satisfactory degree of similarity to the subject site.

We have presented transactions involving sites purchased as vacant developed residential lots. A land adjustment grid and comparable map is presented thereafter.

Land Sale Write-ups Land Sale No. 1

Property Identification

Record ID 10096

Property Type Residential

Address SWC North Semmes Street & East Bird Street, Tampa, Hillsborough County, Florida 33604

Location North Tampa

Tax ID 149694-0000

Latitude, Longitude W28.022303, N82.441765

Sale Data

Grantor West Florida Wholesale Properties, LLC

Grantee Tampa Brothers Investment, LLC

Sale Date March, 2022

Deed Book/Page 2022139727

Financing Cash to Seller

Verification Jessica Alfonso, Preston & Farley, Inc. ; 813-254-3111, March, 2022; Confirmed by Alan Mills

Sale Price $75,000

Land Sale No. 1 (Cont.)

Land Data

Zoning RS-50

Land Size Information

Gross Land Size 0.121 Acres or 5,250 SF

Indicators

Sale Price/Gross Acre $622,286

Sale Price/Gross SF $14.29

Sale Price/ Unit $75,000

Remarks

This property is located on the SWC North Semmes Street & East Bird Street in Tampa. The property reflects a 0.12 acre vacant developed single family/duplex lot zoned RS-50 "Residential

50". The property sold in March 2022 for $75,000. The seller was West Florida Wholesale

Properties, LLC of Tampa. The buyer was Tampa Brothers Investment, LLC of Tampa. No other sale was noted in the past three years.

Land Sale No. 2

Record ID 10095

Property Type Residential

Address SWQ East 147th Avenue & North 30th Street, Lutz, Hillsborough County, Florida 33549

Location Northwest Tampa

Tax ID 035149-0000

Latitude, Longitude W28.082704, N82.428647

Land Sale No. 2 (Cont.)

Sale Data

Grantor Be & Bo Homes, LLC

Grantee Anita de la Cruz

Sale Date June, 2021

Deed Book/Page 2021296390

Financing Cash to Seller

Verification Aida Walali, Be & Bo Homes, LLC; 813-522-9668, March, 2022;

Confirmed by Alan Mills

Sale Price $60,000

Zoning RSC-6

Gross Land Size 0.207 Acres or 9,000 SF

Sale Price/Gross Acre $290,400

Sale Price/Gross SF $6.67

Sale Price/ Unit $60,000

This property is located in the SWQ East 147th Avenue & North 30th Street in Lutz. The property reflects a 0.21 acre vacant developed single family/duplex lot zoned RSC-6 "Residential

6 U/Ac". The property sold in June 2021 for $60,000. The seller was Be & Bo Homes, LLC of

Plano, TX. The buyer was Anita de la Cruz of Tampa. No other sale was noted in the past three years.

Land Sale No. 3

Record ID 10098

Property Type Residential

Address SEQ Livingston Avenue & Irene Street, Lutz, Hillsborough

County, Florida 33559

Location North Tampa

Tax ID 035124-0000

Latitude, Longitude W28.083443, N82.430194

Grantor Casa Del Pueblo, LLC

Grantee Absolute Screens, LLC

Sale Date March, 2021

Deed Book/Page 2021113757

Financing Cash to Seller

Verification Gary Loupin, Loupin Construction, LLC; 813-722-1259, March, 2022; Confirmed by Alan Mills

Sale Price $53,500

Land Sale No. 3 (Cont.)

Zoning RSC-6

Gross Land Size 0.197 Acres or 8,580 SF

Sale Price/Gross Acre $271,615

Sale Price/Gross SF $6.24

Sale Price/ Unit $53,500

This property is located in the SEQ Livingston Avenue & Irene Street in Lutz. The property reflects a 0.20 acre vacant developed single family/duplex lot zoned RSC-6 "Residential 6". The property sold in March 2021 for $53,500. The seller was Casa Del Pueblo, LLC of Tampa. The buyer was Absolute Screens, LLC of Lutz. No other sale was noted in the past three years.

Land Sale No. 4

Record ID 10097

Property Type Residential

Address NWC North Central Avenue & East 130th Avenue, Tampa, Hillsborough County, Florida 33612

Location North Tampa

Tax ID 021961-0000

Latitude, Longitude W28.065089, N82.455474

Sale Data

Grantor Keathel Chauncey

Grantee Hector Enrique Cruz Gomez

Sale Date August, 2020

Deed Book/Page 2020391239

Financing Cash to Seller

Verification Susan Leininger, Keller Williams Tampa; 813-264-7754, March, 2022; Confirmed by Alan Mills

Sale Price $41,000

Zoning RSC-9

Land Sale No. 4 (Cont.)

Gross Land Size 0.180 Acres or 7,820 SF

Sale Price/Gross Acre $228,384

Sale Price/Gross SF $5.24

Sale Price/ Unit $41,000

This property is located on the NWC North Central Avenue & East 130th Avenue in Tampa. The property reflects a 0.18 acre vacant developed single family/duplex lot zoned RSC-9 "Residential

9". The property sold in August 2020 for $41,000. The seller was Keathel Chauncey of Tampa.

The buyer was Hector Enrique Cruz Gomez of Tampa. No other sale was noted in the past three years.

Land Sale No. 5

Record ID 10093

Property Type Bulk Lots

Address NWQ West Kenyon Avenue and High Street, Tampa, Hillsborough County, Florida 33614

Location Carrollwood

Tax ID 024720-2672

Latitude, Longitude W28.033199, N82.497998

Grantor JDDG Investments, LLC

Land Sale No. 5 (Cont.)

Grantee Palm Ranch Homes, LLC

Sale Date August, 2019

Deed Book/Page 26873/1561

Financing Cash to Seller

Verification Barry Jackson, Strategic Properties Group; 813-994-5252, March, 2022; Confirmed by Alan Mills

Sale Price $1,600,000

Zoning PD

Gross Land Size 0.826 Acres or 36,000 SF

Actual Units 20

Sale Price/Gross Acre $1,936,000

Sale Price/Gross SF $44.44

Sale Price/Actual Unit $80,000

This property is located in the NWQ West Kenyon Avenue and High Street in Tampa. The property reflects a 0.83 acre vacant developed townhome community consisting of 20 finished lots zoned PD "Planned Development". The property sold in August 2019 for $1.6 million or

$80,000 per finished lot. The seller was JDDG Investments, LLC of Tampa. The buyer was Palm

Ranch Homes, LLC of Pembroke Pines. No other sale was noted in the past three years.

Land Sales Summary and Adjustment Grid Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5

Location: 12701 Lockey

Lane

SWC North

Semmes Street &

East Bird Street

SWQ East 147th

Avenue & North

30th Street

SEQ Livingston

Avenue & Irene

Street

NWC North

Central Avenue

& East 130th

Avenue

NWQ West

Kenyon Avenue and High Street

Submarket: North Tampa North Tampa Northwest

Tampa

North Tampa North Tampa Carrollwood

O.R. Book/Page: 2022139727 2021296390 2021113757 2020391239 26873/1561

Seller: West Florida

Wholesale

Properties, LLC

Be & Bo Homes, LLC

Casa Del Pueblo, LLC Keathel

Chauncey

JDDG

Investments, LLC

Buyer: Tampa Brothers

Investment, LLC

Anita de la Cruz Absolute Screens, LLC Hector Enrique

Cruz Gomez

Palm Ranch

Homes, LLC

Date of Sale: March, 2022 June, 2021 March, 2021 August, 2020 August, 2019

Sale Price: $75,000 $60,000 $53,500 $41,000 $1,600,000

No of Units: 13 1 1 1 1 20

Site Size (SF): 28,484 5,250 9,000 8,580 7,820 36,000

Site Size (Acres): 0.65 0.12 0.21 0.20 0.18 0.83

Unadjusted Price/Unit: $80,000 $60,000 $53,500 $41,000 $80,000

Adjustments

Rights Transferred: Fee simple Fee simple Fee simple Fee simple Fee simple

Financial Considerations: Market Market Market Market Market

Conditions of Sale: Arm's Length Arm's Length Arm's Length Arm's Length Arm's Length

Market Conditions - Time: Stable Stable Stable Stable Stable

Time Adj. Cash Equiv. Price/Unit: $80,000 $60,000 $53,500 $41,000 $80,000

Location: Average Superior Inferior Inferior Inferior Superior

-10% 10% 10% 20% -10%

Site Size (Gross Acres): 0.65 0.12 0.21 0.20 0.18 0.83

0.05 Each

Zoning: PD PD RSC-6 RSC-6 RSC-9 PD

Utilities: All Available Similar Similar Similar Similar Similar

Net Adjustments: -10% 10% 10% 20% -10%

Adjusted Price/Unit: $72,000 $66,000 $58,850 $49,200 $72,000

Land Sales Adjustment Grid

Comparables Map

Land Sales Analysis

The preceding sales were confirmed to offer the best indication of value of the subject site via the Sales Comparison Approach. A number of sales were examined, and in the final analysis they were narrowed to the five most comparable transactions. We have researched sales specifically for vacant developed residential sites in the general subject market area.

There are several units of comparison generally employed in the analysis of land. In this instance, the market dictates the most appropriate index is price per vacant lot. The adjustment categories include location, site size, zoning and utilities.

All of the transactions were financed at market terms by third party financial institutions; hence, no adjustments for financing were required. If atypical financing were involved in the transaction, the appraiser would determine if those terms had a quantifiable effect on the sale price necessitating an adjustment.

Each transaction was confirmed to be arm's length between willing buyers and sellers; therefore, no adjustments for abnormal conditions of sale were necessary. However, if a listing is included in the analysis, a downward adjustment is considered to reflect a typical cushion for negotiations.

Nonetheless, the amount of adjustment, if any, would depend on the asking price as it relates to the market at that time. Some transactions might include a bank sale sometimes referred to as "short sale".

An adjustment will be made if warranted based on confirmation of that transaction.

Adjustments for time and price trends attempt to quantify changes in market conditions between the date of each sale and the date of the appraisal, based on current market conditions and available properties. All of the transactions are relatively timely, taking place from August 2019 to March, 2022.

Adjustment for this category would be based on any quantifiable appreciation or depreciation, typically identified through paired sales analysis.

Adjustments for location typically are associated with the general demographics of the area and property specific influences such as traffic counts, ingress/egress, proximity to linkages such as interstates and overall characteristics of an area.

Site size is an adjustment in which comparables site size is compared to the subject. Depending on the market segment, variation in site size can have effect up to a point on the price per square foot index.

Typically, if a comparable site is larger than the subject site, an upward adjustment is applied to reflect economies of scale. Conversely, if a comparable site is smaller than the subject site, a downward adjustment was applied. This category can also include adjustments for parcels that may have off-site retention and reflect a fully buildable lot.

Zoning is an important consideration in land sales analysis as it specifies the development potential of a given parcel. In this category, the comparables’ zoning classification relative to allowable uses, building setbacks and other restrictions are compared to the subject. Generally speaking, zoning classifications that allow more uses and flexible development are superior.

The availability of municipal services, specifically water and sewer, is an important attribute to a typical site. The adjustment would be applied if the comparable has a different availability of municipal services as the subject. This is especially true for parcels that may need to have municipal lines extended to the property at a cost.

After adjustments, the sales range from $49,200 to $72,000 per developed lot, with a mean of $60,000 per developed lot. Based on the relative merits of each sale, but placing greater emphasis on Comparable 5, a bulk finished townhome lot sale; we have concluded to value of the subject finished townhome lots at $70,000 per lot.

In addition to the Sales Comparison Approach, and as a general rule for townhome builders in the Tampa Bay area, 30% to 35% of the average sale price for new townhome construction is allocated to the land acquisition of the underlying developed lot.

Included below are recent comparable townhome sales, with similar characteristics to the existing townhome product in Azure Estates, are in the $200,000 range. In this instance, for a townhome builder to maintain a 35% finished lot ratio to the base sale price, a finished lot market value would be in the $70,000 range. Similar to the foregoing lot valuation.

Our math is as follows:

13 Finished Townhome Lots x $70,000/Lot = $910,000

“As Is” Market Value via Sales Comparison Approach $910,000

Summary and Reconciliation

Market Value Conclusions “As Is” 13 Vacant Lots

Cost Approach n/a

Sales Comparison Approach $910,000

Income Approach n/a

Final Value Conclusion $910,000

The subject is located on the northeast corner of Lockey Lane and East 127th Avenue in Tampa, Hillsborough County. The subject comprises 13 vacant, developed townhome lots within the subdivision of Azure Estates. Azure Estates is a 26-unit PD (Planned Development) constructed in the early 1980’s.

The subject lots are rectangular comprising a total of approximately 0.65 gross acres. Based on our sales comparison analysis, there is no quantifiable discount or premium for viewing the subject lots individually or collectively.

In this instance, we have used one of the three traditional approaches to value, the Sales Comparison Approach. The Cost and Income Approaches are not typically used to estimate value for developed vacant residential lots. The Sales Comparison Approach provided sales of similar residential lots as the subject in which to estimate Market Value. We have determined the following value opinion as of April 4, 2022 as follows:

“As Is” Fee Simple Interest Market Value

NINE HUNDRED TEN THOUSAND DOLLARS

($910,000)

Following is the Certification, Assumptions, subject photographs and other information related to the appraisal. The above value opinion is based on a 12-month marketing and exposure period. We appreciate the opportunity to provide this appraisal service. Should you have any questions about the appraisal report or the methodology applied, please feel free to give us a call.

Respectfully submitted, DOHRING AHERN, INC.

President Cert Gen RZ754

Certification

We certify that, to the best of our knowledge and belief:

The statements of fact contained in this report are true and correct.

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.

We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

The signatories of this appraisal report nor Dohring Ahern have been sued by a regulatory agency or financial Institution for fraud or negligence involving an appraisal report.

Compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in 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.

Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, 2020-2021 Edition.

Jeff Hicks has made a personal inspection of the property that is the subject of this report.

No one provided significant real property appraisal assistance to the persons signing this certification.

Our analyses, opinions, and conclusions have been developed, and this report has been prepared, in compliance with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of The Appraisal Foundation, and in accordance with the appraisal-related mandates within Title XI of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). This report was also prepared in conformance with the State of Florida Standards for Certified General Real Estate Appraisers.

We have not relied on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value.

It is our opinion that the subject does not include any enhancement in value as a result of any natural, cultural, recreational or scientific influences retrospective or prospective.

We have extensive experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

As of the date of this report, Jeff Hicks, MAI and Brenda Dohring Hicks, MAI have completed the continuing education program for Designated Members of the Appraisal Institute.

We have not relied on the work of others if we have a reasonable doubt that the work is credible.

We have performed no services as an appraiser, or in any capacity, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of the assignment.

The market value of the…