3-SR 100 Site appraisal.pdf

© 2025 Colliers

City of Palm Coast Site

5740 SR 100

Palm Coast, Florida 32164

APPRAISAL REPORT

Date of Report: December 11, 2025 Colliers File Number: JAX250467

Prepared for Virginia Smith, CP Land Management Administrator City of Palm Coast 160 Lake Avenue

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Letter of Transmittal

JAX250467

December 11, 2025

Virginia Smith, CP Land Management Administrator City of Palm Coast 160 Lake Avenue Palm Coast, FL 32164

RE: City of Palm Coast Site

5740 SR 100

Palm Coast, Florida 32164

Colliers File #: JAX250467

Ms. Smith:

Pursuant with our engagement, the above captioned property was appraised utilizing best practice appraisal principles for this property type. This appraisal report satisfies the scope of work and requirements agreed upon by City of Palm Coast and Colliers Valuation & Advisory Services.

The date of this report is December 11, 2025. At the request of the client, this appraisal is presented in an Appraisal Report format as defined by USPAP Standards Rule 2-2(a). Our appraisal format provides a detailed description of the appraisal process, subject and market data and valuation analyses.

The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report:

The subject is a 8.50-acre site located at 5740 SR 100 in Palm Coast, Florida. The site consists of 23 separate parcels.

The parcels are largely vacant, with one parcel currently improved with a mobile home, that does not contribute to the overall site as vacant. The subject property is located in two zoning districts, with the frontage zoned COM-2 and the remaining zoned PSP, which will requiring rezoning prior to development with the highest and best use.

The analyses, opinions and conclusions communicated within this appraisal report were developed based upon the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assignment specific-assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”. USPAP defines a Hypothetical Condition as, “that 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 purpose of analysis”.

Value Type Interest Appraised Date of Value Value As-Is Market Value Fee Simple December 5, 2025 $2,775,000

The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at our opinion of value are fully discussed below. We advise the client to consider these issues carefully given the intended use of this appraisal, as their use might have affected the assignment results.

Extraordinary Assumptions

This Appraisal Report is not contingent on any extraordinary assumptions.

Hypothetical Conditions

This appraisal has been prepared under the hypothetical condition that the subject property, which a large portion of is currently zoned Public/Semipublic (PSP), can be readily rezoned to allow commercial development consistent with surrounding land uses and local planning objectives.

It is further assumed that the rezoning process would occur without unusual delay, cost, or opposition, and that all necessary entitlements and approvals for commercial use could be obtained through an expedited administrative process.

It is also assumed that the current right-of-ways that bisect the subject property will be abandoned by the city and would not impact development of the subject site.

These assumptions are made solely for the purpose of valuation and may not reflect the property’s actual legal or regulatory status as of the effective date of appraisal. The value opinion reported herein is contingent upon this hypothetical condition, and the results may differ materially if the property cannot, in fact, be rezoned or developed for multifamily use as assumed.

Reliance Language

The Appraisal is for the sole use of the Client; however, Client may provide only complete, final copies of the Appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Colliers Valuation & Advisory Services is not required to explain or testify as to appraisal results other than to respond to the Client for routine and customary questions. Please note that our consent to allow the Appraisal prepared by Colliers Valuation & Advisory Services or portions of such Appraisal, to become part of or be referenced in any public offering, the granting of such consent will be at our sole and absolute discretion and, if given, will be on condition that Colliers Valuation & Advisory Services will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to Colliers Valuation & Advisory Services, by a party satisfactory to Colliers Valuation & Advisory Services. Colliers Valuation & Advisory Services does consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide Colliers Valuation & Advisory Services with an Indemnification Agreement and/or Non-Reliance letter.

Colliers Valuation & Advisory Services hereby expressly grants to Client the right to copy the Appraisal and distribute it to other parties in the transaction for which the Appraisal has been prepared, including employees of Client, other lenders in the transaction, and the borrower, if any.

Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value.

It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value.

The signatures below indicate our assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal. If you have any specific questions or concerns regarding the attached appraisal report, or if Colliers Valuation & Advisory Services can be of additional assistance, please contact the individuals listed below.

Sincerely, Colliers Valuation & Advisory Services

G. Justin Lovett, MAI Valuation Services Director State Certified General Real Estate Appraiser License #RZ3006 +1 904 861 1132 justin.lovett@colliers.com

Patrick R. Phipps, MAI Managing Director | Jacksonville State Certified General Real Estate Appraiser License #RZ2954 +1 904 861 1114 patrick.phipps@colliers.com

Table of Contents

Introduction Executive Summary ___________________________________________________________________________________________ 6 Aerial Photograph_____________________________________________________________________________________________ 7 Subject Property Photographs _________________________________________________________________________________ 8 Identification of Appraisal Assignment ________________________________________________________________________ 11 Scope of Work _______________________________________________________________________________________________ 13

Descriptions & Exhibits Regional Map ________________________________________________________________________________________________ 15 Regional Analysis ____________________________________________________________________________________________ 16 Local Area Map ______________________________________________________________________________________________ 24 Local Area Analysis ___________________________________________________________________________________________ 25 Site Description ______________________________________________________________________________________________ 36

Plat Map __________________________________________________________________________________________________ 38 Zoning Map _______________________________________________________________________________________________ 39

Assessment & Taxation ______________________________________________________________________________________ 41 Zoning Analysis ______________________________________________________________________________________________ 43 Highest & Best Use ___________________________________________________________________________________________ 45

Valuation Valuation Methods ___________________________________________________________________________________________ 46 Land Valuation _______________________________________________________________________________________________ 46

Land Sales Summation Table ______________________________________________________________________________ 47 Land Sales Location Map __________________________________________________________________________________ 48 Land Sales Data Sheets ____________________________________________________________________________________ 49 Calculation of Land Value __________________________________________________________________________________ 55

Certification

Assumptions & Limiting Conditions

Addenda

Professional Service Agreement Legal Description Subject Data Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services

Aerial Photograph

Executive Summary

General Information Property Name Property Type Address City Palm Coast State Florida Zip Code 32164 County Flagler Market Flagler County Submarket Palm Coast Latitude 29.475923 Longitude -81.202128 Number Of Parcels 23 Assessor Parcels Total Taxable Value $37,188 Census Tract Number 602.13

Site Information Land Area Acres Square Feet

Usable 8.50 370,364 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 8.50 370,364

Topography Level at street grade Shape Irregular Access Average/Good Exposure Average/Good Current Zoning Flood Zone Zone X (Unshaded) Seismic Zone Low Risk

City of Palm Coast Site

General Commercial | Gateway Overlay (COM-2)

08-12-31-6000-00010-0060, 08-12-31-6000-00010-0050, 08-

5740 SR 100

Land - Commercial Land

Valuation Summary

Valuation Indices As-Is

Market Value Interest Appraised Fee Simple Date of Value December 5, 2025

Final Value Conclusion Final Value $2,775,000

$/SF $7.49

Land Valuation Land Value $2,775,000

Value/SF $7.49

Aerial Photograph

Subject Property Photographs

Subject Site, Facing Northwest

Subject Site, Facing North

SR 100, Facing West, Subject on Right

SR 100, Facing East, Subject on Left

Subject Site, Facing Northeast

Subject Site, Facing West

Subject Site, Facing South

Subject Site, Facing East

Subject Site, Facing North

Existing Improvements

Identification of Appraisal Assignment

Property Identification

The subject is a 8.50-acre site located at 5740 SR 100 in Palm Coast, Florida. The site consists of 23 separate parcels.

The parcels are largely vacant, with one parcel currently improved with a mobile home, that does not contribute to the overall site as vacant. The subject property is located in two zoning districts, with the frontage zoned COM-2 and the remaining zoned PSP, which will requiring rezoning prior to development with the highest and best use.

The assessor’s parcel numbers are: 08-12-31-6000-00010-0060, 08-12-31-6000-00010-0050, 08-12-31-6000-00010- 0040, 08-12-31-6000-00010-0030, 08-12-31-6000-00010-0020, 08-12-31-6000-00010-0010, 08-12-31-6000-00040- 0040, 08-12-31-6000-00040-0060, 08-12-31-6000-00040-0010, 08-12-31-6000-00040-0020, 08-12-31-6000-00040- 0030, 08-12-31-6000-00030-0010, 08-12-31-6000-00030-0020, 08-12-31-6000-00030-0030, 08-12-31-6000-00030- 0050, 08-12-31-6000-00030-0040, 08-12-31-6000-00020-0030, 08-12-31-6000-00050-0010, 08-12-31-6000-00050- 0020, 08-12-31-6000-00050-0030, 08-12-31-6000-00050-0040, 08-12-31-6000-00050-0050, 08-12-31-6000-00050-

0060, ROW.

The legal description of the subject property is presented in the Addenda.

Client Identification

The client of this specific assignment is City of Palm Coast.

Purpose

The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest.

Intended Use

The intended use of this appraisal is to assist the client in making internal business decisions related to this asset.

Intended Users is 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. Unless approval is provided by the authors no portion of the report stands alone.

Assignment Dates

Personal Intangible Property

No personal property or intangible items are included in this valuation.

Property and Sales History

Current Owner

The subject title is currently recorded in the name of City of Palm Coast & Marguerite K Bushnell as Trustee as recorded in the Flagler County Deed Records.

Three-Year Sales History

Research of the applicable public records, private data services and an interview of the current owner and/or broker revealed that the subject property has not transferred during the past three years of the effective date of value stated in this report.

Date of Report December 11, 2025 Date of Inspection December 5, 2025 Valuation Date - As-Is December 5, 2025

Identification of Appraisal Assignment

Subject Sale Status

Research of the applicable public records, private data services and an interview of the current owner and/or broker revealed that the subject property is not under a current agreement of sale or option and is not currently offered for sale on the open market.

Definitions

This section summarizes the definitions of value, property rights appraised, and value scenarios that are applicable for this appraisal assignment. All other applicable definitions for this assignment are located in the Valuation Glossary section of the Addenda.

Definitions of Value

Given the scope and intended use of this assignment, the following definition of value is applicable:

Market Value

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. 1

Property Rights Appraised

The property rights appraised constitute the fee simple interest.

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.2

Value Scenarios

As-Is Value

The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.3

1 Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472 2 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 3 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022

Scope of Work

Introduction

The appraisal development and reporting processes requires gathering and analyzing information about those assignment elements necessary to properly identify the appraisal problem to be solved. The scope of work decision must include the research and analyses that are necessary to develop credible assignment results given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. The scope of work for this appraisal assignment is outlined below:

· The appraisers analyzed the regional and local area economic profiles including employment, population, household income, and real estate trends. The local area was further studied to assess the general quality and condition, and emerging development trends for the real estate market. The immediate market area was inspected and examined to consider external influences on the subject.

· The appraisers confirmed and analyzed legal and physical features of the subject property including sizes of the site, flood plain data, seismic zone, zoning, easements and encumbrances, access and exposure of the site.

· The appraisers completed a land market analysis that included market and sub-market overviews. The Flagler County market and Palm Coast sub-market overviews analyzed supply/demand conditions using vacancy, absorption, supply change and rent change statistics. Conclusions were drawn regarding the subject property’s competitive position given its physical and locational characteristics, the prevailing economic conditions and external influences.

· The appraisers conducted Highest and Best Use analysis and conclusions were drawn for the highest and best use of the subject property As-Vacant. The analysis considered legal, locational, physical and financial feasibility characteristics of the subject site.

· The appraisers confirmed and analyzed financial features of the subject property including potential entitlement issues, and tax and assessment records. This information as well as trends established by confirmed market indicators was used to forecast performance of the subject property.

· Selection of the valuation methods was based on the identifications required in USPAP relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment conditions.

This appraisal developed the Sales Comparison Approach to value, which was adjusted and reconciled as appropriate. The appraisal develops an opinion of the As-Is Market Value of the subject property’s fee simple interest.

· Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are fully described within this document.

· We understand the Competency Rule of USPAP and the authors of this report meet the standards.

· No one provided significant real property appraisal assistance to appraisers signing this certification.

Scope of Work

Sources of Information

The following sources were contacted to obtain relevant information:

Subject Property Inspection

Sources of Information Item Source Tax Information Flagler County Tax Assessor Zoning Information City of Palm Coast Zoning Code Site Size Information Flagler County Tax Assessor Building Size Information Flagler County Tax Assessor New Construction City of Palm Coast / Flagler County Flood Map FEMA Demographics Esri ArcGIS® Comparable Information See Comparable Datasheets for details Legal Description Grant Deed from RealQuest Other Property Data Flagler County Property Records

Subject Property Inspection Appraiser Inspected Extent Date of Inspection G. Justin Lovett, MAI Yes Site Only December 5, 2025 Patrick R. Phipps, MAI No - -

Regional Map

Regional Analysis

The Daytona-Palm Coast, Florida Metropolitan Statistical Area is a Combined (CMSA) consisting of Flagler County and Volusia County in the state of Florida. The principal cities in the CMSA are Deltona, Daytona Beach and Port Orange, all located in Volusia County.

The Daytona-Palm Coast CMSA is located on the eastern coast of Florida. It is south of St. Augustine Beach north of Titusville.

The Volusia/Flagler area is best known for its tourism industry, which attracts millions of visitors each year. Motorsports dominate the area, with several race track venues as magnets. The best known is Daytona International Speedway, where the headquarters of NASCAR is located.

The main natural attraction for tourists are the beaches of Volusia and Flagler counties, with Daytona Beach, Flagler Beach, New Smyrna Beach, and Ormond Beach being the largest draws. Summer is usually the High Season for beach tourism in this area.

Community Descriptions

Deltona is a suburban city just north of Sanford, FL which is on the northern boundary of the Orlando MSA. It is a principal city in the CMSA and is the most populous city in Volusia County. The city is mostly residential, and primarily serves as a commuter town for the nearby cities of Orlando and Daytona Beach. As such, the city’s economy is largely impacted by state and regional economy, which depends solely on surrounding communities and cities for work, shopping and entertainment. It is home to Daytona State College, the Fathi Hall building. The city’s land use is almost entirely residential representing over 75 percent of the structures.

DeLand is just north of Deltona and is about 35 miles or 30-40 minutes north of the Orlando CBD. It was founded in 1876 and is home to Stetson University, Florida’s oldest private college. DeLand has a small downtown historic district but is largely influenced by its proximity to Orlando, the university and nearby hospitals. It is also known as the skydiving capital of the world and the industry employs over 500 people in the local area.

Daytona Beach is historically known as having a beach where the hard packed sand allows motorized vehicles to drive on the beach. This made Daytona Beach a mecca for motorsports with the old Daytona Beach Road Course having hosted races for over 50 years. This course was replaced in 1959 by the Daytona International Speedway. The city is also the headquarters for NASCAR and the Grand American Road Racing Association. Daytona Beach is a year-round resort area, but is also a seasonal town, with large groups of out-of-towners descending upon the city for various events, notably “Speedweeks” in early February when over 200,000 NASCAR fans come to attend the season-opening Daytona 500.

Ormond Beach is just north of Daytona Beach. It was once the domain of the Timucuan Indians and in the late-1800s became a haven for wealthy northerners to vacation and retire. Ormond Beach is an active commercial and residential market. Manufacturing is a large industry and the Ormond Beach Business Park and Airpark, a foreign trade zone, is located here. The business park is home to 29 companies that provide more than 2,000 jobs.

Palm Coast is located between St Augustine and Daytona Beach. It was developed by ITT Community Development Corporation (Levitt) in 1969, the original development plan encompassed 48K home sites on approximately 42K acres.

The plan included paved streets and water/sewer. An extensive water management system was designed to replenish the area's water table, which includes 46 miles of freshwater canals and 23 miles of saltwater canals. In 1975, the Palm Coast Service District was established and included almost 40K acres. Funds for the district were derived primarily from Ad Valorem taxes and were utilized to provide public services including: fire services, street lighting, animal control and emergency services. In 1999 the City of Palm Coast was officially incorporated.

http://en.wikipedia.org/wiki/Manatee_County,_Florida http://en.wikipedia.org/wiki/Sarasota_County,_Florida http://en.wikipedia.org/wiki/Florida http://en.wikipedia.org/wiki/Florida

Demographic Analysis

The following is a demographic study of the region sourced by Esri ArcGIS®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Demographic changes are often highly correlated to changes in the underlying economic climate. Periods of economic uncertainty necessarily make demographic projections somewhat less reliable than projections in more stable periods. These projections are used as a starting point, but we also consider current and localized market knowledge in interpreting them within this analysis. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures.

Population According to Esri ArcGIS®, a Geographic Information System (GIS) Company, the Deltona-Daytona Beach-Ormond Beach metropolitan area had a 2024 population of 718,006 and experienced an annual growth rate of 1.7%, which was higher than the Florida annual growth rate of 1.3%. The metropolitan area accounted for 3.2% of the total Florida population (22,779,514). Within the metropolitan area the population density was 452.3 people per square mile compared to the lower Florida population density of 424.6 people per square mile and the lower United States population density of 95.8 people per square mile.

Household Trends The 2024 Households number of households in the metropolitan area was 304,360. The number of households in the metropolitan area is projected to grow by 1.4% annually, increasing the number of households to 326,120 by 2029 Households. The 2024 average household size for the metropolitan area was 2.30, which was -9.09% smaller than the United States average household size of 2.53 for 2024. The average household size in the metropolitan area is anticipated to retract by 0.35% annually, reducing the average household size to 2.26 by 2029.

Population Year US FL Cbsa 2020 Population 331,839,624 21,595,172 670,539 2024 Population 338,440,954 22,779,514 718,006 2029 Population 344,873,411 23,862,875 757,076

2020-2024 CAGR 0.5% 1.3% 1.7%

2024-2029 CAGR 0.4% 0.9% 1.1%

Source: Esri ArcGIS®

Population Density Year US FL Cbsa 2024 Per Square Mile 95.8 424.6 452.3 2029 Per Square Mile 97.6 444.8 477.0 Source: Esri ArcGIS®

Number of Households Year US FL Cbsa 2024 Households 130,716,571 9,084,882 304,360 2029 Households 134,930,577 9,618,827 326,120

2024-2029 CAGR 0.6% 1.1% 1.4%

Source: Esri ArcGIS®

The Deltona-Daytona Beach-Ormond Beach metropolitan area had 26.12% renter occupied units, compared to the higher 33.63% in Florida and the higher 35.64% in the United States.

The 2024 median household income for the metropolitan area was $69,695, which was -11.85% lower than the United States median household income of $79,068. The median household income for the metropolitan area is projected to grow by 3.72% annually, increasing the median household income to $83,659 by 2029.

As is often the case when the median household income levels are higher or lower than the national average, the cost of living index is also constant with that trend. According to the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index, the S.Pd.CBSA.Name MSA’s cost of living is 98.9 compared to the national average score of 100. The ACCRA Cost of Living Index compares groceries, housing, utilities, transportation, health care and miscellaneous goods and services for over 300 urban areas.

Average Household Size Year US FL Cbsa 2024 2.53 2.45 2.30 2029 2.50 2.43 2.26

2024-2029 CAGR (0.24%) (0.16%) (0.35%)

Source: Esri ArcGIS®

Housing Units US FL Cbsa

Owner Occupied 64.36% 66.37% 73.88% Renter Occupied 35.64% 33.63% 26.12% Source: Esri ArcGIS®

Median Household Income Year US FL Cbsa 2024 $79,068 $74,715 $69,695 2029 $91,442 $87,659 $83,659

2024-2029 CAGR 2.95% 3.25% 3.72%

Source: Esri ArcGIS®

Apparel, 7.33% Computers, 0.84%

Education, 5.12%

Entertainment, 13.37%

Eating Out, 12.35%

Food at Home, 23.61%

Health Care, 26.60%

Furnishings, 10.35% Auto Maint., 0.42%

Consumer Spending Deltona-Daytona Beach-Ormond Beach

Employment

Total employment has increased annually over the past decade in the state of Florida by 1.9% and increased annually by 1.8% in the area. From 2023 to 2024 unemployment increased in Florida by 0.4% and increased by 0.5% in the area. In the state of Florida unemployment has increased over the previous month by 0.3% and increased by 0.4% in the area.

$0

$2,000

$4,000

$6,000

$8,000

Consumer Spending Comparison Average Household

United States Florida Deltona-Daytona Beach-Ormond Beach

Employment & Unemployment Statistics 2015 - 2024 Total Employment Unemployment Rate

Florida

Year Total % ∆ Yr Ago Total % ∆ Yr Ago

2015 9,067,636 2.0% 265,199 2.2% 5.3% 5.5% 6.0%

2016 9,313,287 2.7% 270,061 1.8% 4.9% 4.9% 5.3%

2017 9,545,001 2.5% 275,690 2.1% 4.4% 4.3% 4.6%

2018 9,731,497 2.0% 280,744 1.8% 3.9% 3.6% 3.9%

2019 9,923,974 2.0% 283,818 1.1% 3.7% 3.2% 3.6%

2020 9,249,303 (6.8%) 266,239 (6.2%) 8.1% 8.0% 8.1%

2021 9,813,713 6.1% 283,937 6.6% 5.3% 4.7% 4.8%

2022 10,378,726 5.8% 298,329 5.1% 3.6% 3.0% 3.4%

2023 10,704,831 3.1% 307,335 3.0% 3.6% 3.0% 3.4%

2024 10,781,312 0.7% 310,181 0.9% 4.0% 3.4% 3.9%

CAGR 1.9% - 1.8% - - - -

Source: U.S. Bureau of Labor Statistics *Unadjusted Non-Seasonal Rate

United States*

Deltona-Daytona Beach-Ormond Beach, FL Metropolitan Statistical Area Florida

Deltona-Daytona Beach- Ormond Beach, FL

Metropolitan Statistical Area

The following chart displays the unemployment rates for the United States, Florida, and subject MSA.

Major Employers

The preceding chart depicts the top employers in Volusia County. Principal employers are spread throughout diverse sectors, including education and healthcare/social assistance. The largest employer is Volusia County School District.

The school district supervises 92 schools and serves approximately 61,000 students. The second largest employer is AdventHealth, a faith-based, non-profit health care system headquartered in Altamonte Springs, Florida. This health care provider operates facilities within nine states across the United States. Halifax Health is the third largest employer. With a medical center in Port Orange, the hospital has an intensive care unit and a nuclear medicine department.

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5% Unemployment Rates

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul 2025 Aug

USA 3.9% 3.9% 4.0% 3.8% 4.4% 4.5% 4.2% 3.9% 4.0% 4.4% 4.6% 4.5%

Florida 3.5% 3.5% 3.5% 3.2% 3.7% 3.7% 3.5% 3.5% 3.5% 3.9% 4.1% 4.4%

Area 4.1% 4.0% 4.1% 3.7% 4.4% 4.3% 4.0% 4.0% 4.0% 4.6% 4.7% 5.1%

Top Employers Employer Name Employees Industry Volusia County Schools 8,212 Education AdventHealth Systems 7,923 Health Care Halifax Hospital System 4,447 Health Care Publix Supermarkets, Inc. 4,106 Retail Trade Walmart Associates, Inc. 3,504 Retail Trade State of Florida 2,758 Public Administration County of Volusia 2,740 Public Administration Embry-Riddle Aeronautical University 1,939 Education Stetson University 1,502 Education Daytona State College 1,438 Education Amazon 1,300 Logistics Florida Healthcare Plans 1,099 Healthcare Brown & Brown 1,030 Financial Activities City of Daytona Beach 996 Public Administration Volusia County Sheriff's Office 844 Public Safety Brunswick Corporation (Boston Whaler) 841 Manufacturing U.S. Postal Service 719 Transportation and Warehousing U.S. Government 698 Public Administration City of DeLand 540 Public Administration City of Port Orange 493 Public Administration Source: Volusia County Economic Development Department

The CBSA’s largest employers are national and multinational corporations spanning a variety of industries including healthcare, technology, manufacturing, education and retail. Most larger companies are located in Volusia County. Of note, the Daytona market features a number of companies that have made the area their national headquarters.

Notable companies that call Daytona home are Security First, Brown & Brown Insurance, Synergy Billing, International Speedway Corporation, LPGA, NASCAR and Boston Whaler.

Daytona / Palm Coast Transportation

Roadway Volusia and Flagler Counties are connected by Interstate 95. This is a major highway which traverses the eastern seaboard from the New England States down through South Florida.

Volusia County Public Transit System (VOTRAN) is the name of the local Volusia County bus service. The buses offer service throughout the county, Monday through Saturday. There is also a VOTRAN transfer station (Intermodal Transit Facility - ITF) located inside the Volusia County Parking Garage in Daytona Beach.

SunRail Service to Orlando is planned to be expanded. The SunRail is a commuter rail running from Volusia to Osceola County with the initial phase started in 2013. Presently service goes as far as Debary. The expansion is planned to extend service to the DeLand Amtrak station.

The CMA has an abundance of highways and roadways. The following is a summary details area thoroughfares:

· Interstate 95 is the largest of the roadway which connects through both counties as well as traversing to South Florida.

· Interstate 4 connects to Interstate 95 south of Daytona Beach. Interstate 4 connects the area to the greater Orlando and Tampa Bay areas.

· U.S. Highway 1 is a smaller roadway that runs parallel to Interstate 95. It also assists many commuters and travelers throughout the CMSA.

· US 17 is on the western side of the CMSA and traverses in a north-south direction.

· SR A1A is a roadway that travels north and south on the coastal areas of the CMSA http://en.wikipedia.org/wiki/Interstate_95_in_Florida http://en.wikipedia.org/wiki/Interstate_4 http://en.wikipedia.org/wiki/U.S._Route_1_in_Florida http://en.wikipedia.org/wiki/US_17 http://en.wikipedia.org/wiki/Florida_State_Road_A1A http://en.wikipedia.org/wiki/File:I-95.svg http://en.wikipedia.org/wiki/File:I-4.svg http://en.wikipedia.org/wiki/File:US_1.svg http://en.wikipedia.org/wiki/File:US_17.svg http://en.wikipedia.org/wiki/File:Florida_A1A.svg

Rail SunRail (formerly referred to as Central Florida Commuter Rail) is a commuter rail system in-process of the phased development in the greater Orlando area linking Poinciana to DeLand through Downtown Orlando. When completed, SunRail will run for 61 miles with 17 stations along the CSX Transportation "A" Line (former Atlantic Coast Line Railroad main line).

The SunRail system is being financed by the counties, state, and federal government. The first phase commenced operation in 2013. The new commuter rail system is to be financed by federal government, state and counties. Volusia, Seminole, Orange and Osceola counties as well as the City of Orlando are the partners in the project. Fifty percent of the funding is to come from a federal transit "New Starts" grant. The local partners are responsible for 25 percent of the cost and another 25 percent is to be paid by the State of Florida. This includes the cost to make track improvements, construct train stations and purchase rail cars.

The construction of SunRail’s Phase 2 Northern Expansion includes one new commuter SunRail station at DeLand, Florida and approximately 12 miles of expanded commuter rail service between the DeBary Station and the DeLand Amtrak Station in Volusia County on the existing Central Florida Rail Corridor (CFRC). The Phase 2 Northern Expansion is currently expected to open by summer 2024.

Railroad systems in the area consist of CSX, and Florida East Coast.

Education Embry Riddle Aeronautical University was started as a regional school for pilots and aircraft mechanics but now enrolls 32,000 students worldwide and 5,100 students in Daytona Beach. More than 30 majors are offered at the Daytona Beach campus, including Aeronautical Science, Aerospace Engineering, Human Factors Psychology, Homeland Security, Engineering Physics, Safety Science, and various Business programs. Called "the Harvard of the sky," it is the world's largest, fully accredited university system specializing in aviation and aerospace. The university is a major research center in partnership with the aerospace industry, other universities and government agencies.

The Daytona Beach campus has a fleet of 42 Cessna Skyhawks, 7 Piper Arrows, 10 Diamond DA42 IV's, and the Super Decathlon. The ERAU Flying Club’s two (2) Cessna 172s and the two Cessna 150s of the Eagles Flight Team are also parked on the ramp. The size of the aircraft fleet is second in the country. Embry-Riddle's Daytona Beach campus has one of the most extensive Reserve Officers' Training Corps (ROTC) programs in the United States and the nation's largest Air Force ROTC program. The ROTC program frequently wins national competitions. The engineering physics program at the Daytona Beach campus is currently the largest undergraduate engineering physics program in the country and the only one specializing in aerospace.

Daytona State College is a public state college and is a member institution of the Florida College System. DSC is home to the Southeast Museum of Photography, and has partnered with the Volusia and Flagler County school districts to form the Advanced Technology College, which allows high school juniors and seniors to earn college credits via dual enrollment. DSC offers the Associate of Arts and various Associate of Science degrees, and an enrollment of 26,000 students.

Summary

The Daytona-Palm Coast CMSA was one of the hardest hit metros of the recession but due to a well-diversified economy, Volusia County has been able to recover along with the nation and state, and is has shown moderate to strong levels of growth over the prior 1-2 years. Flagler County, which, as a result of significant population growth, was heavily reliant on construction and real estate employment, continues to recover while focusing on industry and economic diversity. The regions effort to diversify their economy combined with the resurgence of home construction has accelerated recovery. Overall, combined with the moderate costs of living and no state taxes, the CMSA is expected to continue to experience population growth.

Local Area Map

Local Area Analysis

In this section of the report, we provide details about the local area and describe the influences that bear on the real estate market as well as the subject property. A map of the local area is presented on the prior page. Below are insights into the local area based on fieldwork, interviews, demographic data and experience working in this market.

Local Area Profile

The subject property is located in Palm Coast, Florida, within Flagler County. According to the 2020 census, the population was 89,258. The subject is in the southern portion of Palm Coast along SR 100. The area is 70 miles south of Jacksonville and 75 miles north of Orlando. Air transportation is provided by the Daytona Beach International Airport, approximately 20 miles south of the subject’s immediate area.

Demographic Profile

Below is a demographic study of the area, sourced by Esri ArcGIS®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of properties and geographical areas.

Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures.

Transportation Routes

Major traffic arteries are shown in the chart below:

Public Transportation is not available near the subject property.

Commercial Development Description

Palm Coast Town Center

In 2018, the Community Redevelopment Agency re-evaluated Palm Coast's Town Center, which is located just north of the Airport along State Road 100. The Agency found that an Innovation District would not only be a great fit for growing Town Center, but also would be economically, socially, and culturally viable for the future for Palm Coast. As

Local Area Demographics Description 1 mile 3 miles 5 miles Description 1 mile 3 miles 5 miles Population Average Household Income

2010 Population 925 16,806 47,730 2024 $48,175 $91,178 $101,095 2020 Population 1,507 21,454 58,845 2029 $74,151 $102,799 $113,614 2024 Population 1,910 25,220 67,948 Change 2024-2029 53.92% 12.75% 12.38% 2029 Population 4,061 30,493 78,608 Median Household Income Change 2010-2020 62.92% 27.66% 23.29% 2024 $33,617 $68,362 $77,071 Change 2020-2024 26.74% 17.55% 15.47% 2029 $49,317 $79,719 $86,442 Change 2024-2029 112.62% 20.91% 15.69% Change 2024-2029 46.70% 16.61% 12.16%

Number of Households Per Capita Income 2010 Households 365 6,465 18,945 2024 $24,790 $38,518 $42,837 2020 Households 797 8,558 23,990 2029 $41,700 $45,273 $49,356 2024 Households 1,059 10,646 28,745 Change 2024-2029 68.21% 17.54% 15.22% 2029 Households 2,353 13,418 34,109 Households by Income (2022) Change 2010-2020 118.36% 32.37% 26.63% Less than $15,000 13.61% 7.53% 6.16% Change 2020-2024 32.87% 24.40% 19.82% $15,000 - $24,999 23.25% 7.81% 6.68% Change 2024-2029 122.19% 26.04% 18.66% $25,000 - $34,999 11.20% 9.54% 7.66%

Housing Units $35,000 - $49,999 23.73% 15.47% 14.28% Owner Occupied 302 7,775 22,220 $50,000 - $74,999 8.80% 17.06% 16.76% Renter Occupied 757 2,871 6,525 $75,000 - $99,999 8.55% 14.13% 14.85%

Housing Units by Year Built $100,000 - $149,999 7.23% 15.36% 18.57% Built 2020 or Later 29 442 1,001 $150,000 - $199,999 1.33% 8.01% 7.24% Built 2010 to 2019 156 1,781 4,284 $200,000 or More 2.41% 5.10% 7.78% Built 2000 to 2009 495 4,918 12,333 Housing by Units in Structure Built 1990 to 1999 145 1,730 5,181 1, Detached 221 8,186 23,856 Built 1980 to 1989 4 861 3,742 1, Attached 128 601 1,265 Built 1970 to 1979 12 254 1,313 2 0 123 377 Built 1960 to 1969 0 36 223 3 or 4 87 194 510 Built 1950 to 1959 0 85 266 5 to 9 152 242 314 Built 1940 to 1949 0 0 4 10 to 19 60 165 432 Built 1939 or Earlier 51 62 152 20 to 49 8 155 366

Home Values 50 or More 236 397 573 Average $334,611 $404,813 $420,416 Mobile Home 0 105 794 Median $348,760 $360,151 $361,861 Boat, RV, Van, etc. 0 0 12

Source: Esri ArcGIS®

Major Roadways & Thoroughfares Highway Direction Function Distance From Subject Interstate 95 north-south US Highway 1 north-south Surface Streets Direction Function Distance From Subject State Road 100 east-west Belle Terre Parkway north-south Seminole Woods Blvd north-south

Interstate Highway Local Highway

Primary Arterial This is within 2 miles of the subject property.

This is just down the street from the subject property.

Secondary Arterial This is within 1 miles of the subject property.

This is within 2 miles of the subject property.

Primary Arterial

This is within 4 miles of the subject property.

defined by the Brookings Institute, an Innovation District," facilitates the creation and commercialization of new ideas and support for economies by growing jobs in ways that leverage their distinct economic attributes. Palm Coast has been attracting residential and commercial developers to its Town Center Innovation District, and multiple developments are opening or are expected to open over the coming months. A number of parcels in Town Center northwest of the City Hall building have sold or are under contract to developers and the area continues to expand.

The Town Center at Palm Coast CDD is organized similar to other local governments in Florida, in that the legislative body is composed of a five-member board known as the Board of Supervisors. The Board establishes the policy of the District in accordance with Florida law. The Board, by law, must hire a District Administrator and District Counsel.

Staff members operate utilizing the same formalities as a County Administrator and County Attorney. The Board, through review of advertised Requests for Qualifications, ranks and selects a District Engineer to perform the engineering needs of the District. District Administration staff and the District Attorney administer the operations of the District and implement the Board’s policies and contracts. A map of the Town Center is displayed below.

Retail & Lifestyle Retail and general commercial is located throughout the area and consists of several big box centers, national full and quick service restaurants, banks, etc. There is no shortage of surrounding supporting uses in the immediate area. The highest concentration of Retail and accessory uses is located just east along Palm Coast Parkway near the intersection with I-95. Within the node there is an Aldi, Kohls, CVS, Publix Supermarket, Bealls, Winn-Dixie, Walmart Supercenter, Home Depot, Lowes Home Improvement, Hobby Lobby, Staples and many restaurants.

Palm Coast landing is located at the intersection of Belle Terre Parkway and E Moody Boulevard and is anchored by a Target and includes a Walgreens, CVS Pharmacy, TJ Max and Petsmart. Also at the intersection is a Starbucks, Tractor Supply and ALDI Supermarket. A Publix Supermarket is located along Belle Terre Parkway and Central Avenue. At the intersection of Old King Road and E Moddy Boulevard is Winn-Dixie. A Publix Supermarket is located at the intersection of Roberts Road and Moody Boulevard. Also at the intersection is a CVS Pharmacy.

Office & Medical AdventHealth Palm Coast is a comprehensive, full service, 99-bed acute care community hospital located in Palm Coast.The hospital is fully accredited by the Joint Commission on Accreditation of Healthcare Organizations.

AdventHealth Palm Coast was originally the Bunnell Community Hospital. As the area continued to grow, AdventHealth acquired the Bunnell facility in 2000 and AdventHealth Palm Coast was built in 2002 to meet the healthcare needs of the residents of Flagler County and the surrounding communities. AdventHealth Palm Coast continues to add services and in 2011 opened the Parkway Medical Plaza, a stand-alone facility that houses physicians’ offices, Imaging services, an adult and children’s rehabilitation center and a walk-in clinic.

Advent Health Palm Coast Parkway is north of the subject on the south side of Palm Coast Parkway. The $164M hospital is 158,000-square foot structure four stories high that opened in August 2023. The new hospital added 24 emergency-room beds with a total 99 beds that doubled the number of hospital beds in Palm Coast. Next to the new hospital is a new 30k SF medical office building. The 30,000-square-foot medical office building recently opened to patients with specialties of surgeons, orthopedics, gastroenterology, urology and GYN. Together with the new hospital the new campus will employ from 300 to 500 people, in addition to the 1,100 at the original campus on State Road 100.

Of note the subject is conveniently located about a 25-minute drive north of Daytona Beach. Daytona Beach is home to a number of national headquarters. Headquarters include NASCAR, Grand-Am, International Speedway Corporation, LPGA, Synergy Billing, Boston Whaler. In addition, Brown and Brown who has held a headquarters in Daytona Beach since 1939 and is ranked as the sixth-largest insurance company nationally and seventh largest in the world based on annual revenue.

Community Services, Education, Recreation Community services and facilities are readily available in the surrounding area. These include public services such as fire stations, hospitals, police stations, and schools (all ages). Public transportation is available throughout the area.

There are a number of parks, and other recreational facilities in the area.

About six miles east of the subject is Flagler Beach. Flagler Beach is considered by many as Florida's finest beach for natural, unspoiled beauty. There is more than 19 miles of uncrowded cinnamon colored sand with plenty of room for sports, fishing or just relaxing in the sun. The vibe is low-key and laid-back. The area includes eclectic shops, waterfront restaurants surfing, a fishing pier and free beach access.

The Daytona State College’s Flagler/Palm Coast Campus is among Daytona State’s fastest-growing regional campuses.

The campus offers college credit, college preparatory and the first year of the two-year Associate Degree Nursing program. All general education requirements for the associate of arts degree can be completed here as well as some associate of science programs such as business administration, which includes 3 certificates. Facilities include a nursing laboratory, two science laboratories, an Academic Support Center, writing center, two computer laboratories, an amphitheater and modern classrooms. Nearly 3,000 students attended this campus last year, and the numbers are projected to continue to rise.