9-3100 N 66th St Appraisal.pdf

APPRAISAL REPORT OF

A 1.93 USABLE ACRE

RESIDENTIAL SITE

LOCATED AT

3100 NORTH 66th STREET

TAMPA, HILLSBOROUGH COUNTY, FLORIDA 33619

Order #: 224209651

Project No. 2024-090-M

Job No.: 24-0204

Prepared for:

Mr. John Muller Director

Hillsborough County Facilities Management & Real Estate Services

P.O Box 1110 Tampa, Florida 33602

Requested By:

Mr. John Menard, MAI Real Estate Appraiser

Prepared by:

Ron Sparks, MAI, MBA, MRICS President

Justin Rote Director

Vantix Realty 5550 West Executive Drive

Suite 300 Tampa, Florida 33609

June 25, 2024

Prepared for:

Mr. John Muller Director Hillsborough County Facilities Management & Real Estate Services P.O Box 1110 Tampa, Florida 33602

Requested By:

Mr. John Menard, MAI Real Estate Appraiser

Re: A 1.93 usable acre residential site located 3100 North 66th Street, Tampa, Hillsborough County, Florida 33619

Dear Mr. Menard:

At your request, we have developed an appraisal of the above-referenced subject property and prepared the following appraisal report. We inspected the subject and its environs on June 7, 2024.

The purpose of this appraisal is to provide a current opinion of market value of market value of the fee simple interest in the subject. The intended use of this appraisal is to assist in the possible offing of the property to developers for affordable housing. This report is not intended for any other use. The intended users of this report are representatives of Hillsborough County. Use of this report by others is not intended.

The scope of work included the market research and analyses necessary to reach a final value estimate using the sales comparison approach to value. Market value, fee simple interest, functional utility, and other real estate terms are defined within the following appraisal report.

This appraisal was developed and is reported in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code of Professional Ethics, the Supplemental Standards of Professional Appraisal Practice of the Appraisal Institute, and client appraisal requirements. This appraisal report is qualified by the General Assumptions, the General Limiting Conditions, and the Special Assumptions included in the addenda of this report.

Mr. Menard

June 25, 2024 Page 2

Thank you for engaging us to complete this assignment. If you have any questions concerning the following appraisal report, or if we can be of any further assistance to you, please feel free to contact us at any time.

Respectfully submitted, VANTIX REALTY - VALUATION AND ADVISORY SERVICES

Ron Sparks, MAI, MBA, MRICS Justin Rote President Director State-Certified General Real Estate Appraiser RZ2286

State-Certified General Real Estate Appraiser RZ3628

Phone: 813.425.1391 Phone: 813.425.1388 Email: ron.sparks@vantix-realty.com Email: justin.rote@vantix-realty.com

Vantix Realty

CERTIFICATION OF VALUE

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

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

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions as well as the Extraordinary Assumptions, and are our personal, unbiased professional analyses, opinions, and conclusions.

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

4. We have not performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the past three-year period immediately preceding acceptance of this assignment.

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

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

7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

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

9. Ron Sparks, MAI, MRICS and Justin Rote made a personal inspection of the property that is the subject of this report.

10. No one provided significant real property appraisal assistance to the person signing this certification, except where noted in this report.

11. The reported analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

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

13. As of the date of this report, Ron Sparks, MAI has completed the requirements of the continuing education program of the Appraisal Institute.

ADDENDUM TO CERTIFICATE OF VALUE

We certify that, to the best of our knowledge and belief, This report is written in conformance with reporting requirements for an Appraisal Report, according to Uniform Standards of Professional Appraisal Practice (USPAP) and the Florida Department of Transportation's Supplement Standards.

- Ron L. Sparks, MAI, is currently licensed pursuant to the laws of the State of Florida as a State- Certified General Real Estate Appraiser RZ2286 through November 30, 2024, and Justin Rote, is currently licensed pursuant to the laws of the State of Florida as a State- Certified General Real Estate Appraiser RZ3628 through November 30, 2024.

- Ron L. Sparks, MAI, and Justin Rote, are experienced in the valuation of properties of the subject’s nature. In compliance with the Competency Rule within the USPAP, we have familiarized ourselves with the market in which this property exists through extensive data research and discussions with a variety of market participants including buyers and sellers, local realtors, local government officials, as well as developers and investors active in this market.

- To the best of our knowledge and belief, the reported analyses, opinions and conclusions contained herein were developed, and this report has been prepared, in conformance with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

- Acceptance and utilization of this appraisal report, or any portion thereof, constitutes acknowledgement and acceptance of all the General Assumptions and Special Conditions contained herein.

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

Based upon our inspection of the subject property and its environs together with our market research, analyses, and professional judgment we conclude that the “As-Is” market value of the fee simple interest in the subject under prevailing market conditions, June 7, 2024, is:

FOUR HUNDRED SIXTY THOUSAND DOLLARS

($460,000)

Ron Sparks, MAI, MBA, MRICS President State-Certified General Real Estate Appraiser RZ2286

Justin Rote

Director

State-Certified General Real Estate Appraiser RZ3628

110 TABLE OF CONTENTS

CERTIFICATION OF VALUE

115 GENERAL ASSUMPTIONS AND SPECIAL CONDITIONS

120 SUMMARY OF SALIENT FACTS AND CONCLUSIONS

130 TYPE OF APPRAISAL AND REPORT FORMAT

140 APPRAISAL PURPOSE, INTENDED USE, AND INTENDED USER OF THE APPRAISAL

150 DEFINITION OF MARKET VALUE AND OTHER TERMS

160 PROPERTY RIGHTS (INTEREST) APPRAISED

175 SCOPE OF APPRAISAL ANALYSIS

180 APPRAISAL PROBLEM

200 IDENTIFICATION OF PROPERTY AND LEGAL DESCRIPTION

220 DESCRIPTION OF AREA AND NEIGHBORHOOD

TAMPA MULTI-FAMILY MARKET OVERVIEW

230 DESCRIPTION OF THE PROPERTY

SUBJECT PROPERTY PHOTOGRAPHS

240 ZONING, LAND USE, CONCURRENCY

250 ASSESSED VALUE AND TAXES

260 HISTORY OF THE PROPERTY (LAST 5 YEARS)

270 EXPOSURE TIME ANALYSIS

280 PUBLIC AND PRIVATE RESTRICTIONS

300 HIGHEST AND BEST USE ANALYSIS

305 APPROACHES TO VALUE USED AND EXCLUDED

310 LAND VALUATION

390 RECONCILIATION OF VALUE INDICATIONS AND FINAL VALUE ESTIMATE

ADDENDUM

• LENGTHY LEGAL DESCRIPTION

• COMPARABLE LAND SALES MAP & WRITE-UPS

• COMPARABLE IMPROVED SALES MAP & WRITE-UPS – NOT APPLICABLE TO THIS

ASSIGNMENT

• COMPARABLE RENTALS MAP & WRITE-UPS – NOT APPLICABLE TO THIS ASSIGNMENT

• CONTRACTOR’S OR SPECIALIST ESTIMATE – NOT APPLICABLE TO THIS ASSIGNMENT

• ENGINEERING/LAND PLANNING ANALYSIS – NOT APPLICABLE TO THIS ASSIGNMENT

• PROPERTY CARD

• PROPERTY OWNER CONTACT LETTER - NOT APPLICABLE TO THIS ASSIGNMENT

• APPRAISER QUALIFICATIONS

115 GENERAL ASSUMPTIONS AND SPECIAL CONDITIONS

1. The legal descriptions used in this report are assumed to be correct.

2. Sketches of the property contained in this report were created to assist the reader in visualizing the property and were based on the Hillsborough County Property Appraiser Records.

3. No responsibility is assumed for matters of a legal nature affecting title to the property nor is an opinion of title hereby rendered. The subject's title is assumed to be good and merchantable, unless otherwise stated herein.

4. Information furnished by others is assumed to be true, correct and reliable. A reasonable effort has been made to verify such information; however, the appraiser assumes no responsibility for its accuracy.

5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified within the report. The property is appraised as though under responsible ownership and competent management.

6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that would render it more or less valuable. No responsibility is assumed for such conditions or for engineering services that may be required to discover them.

7. It is assumed that there is no encroachment or trespass unless noted within the report.

8. The appraiser will not be required to give testimony or appear in court because of having made this appraisal, with reference to the subject property, unless arrangements have been previously made therefore.

9. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to who it is addressed without the written consent of the appraiser, and in any event only with properly written qualification, or as specifically amended by contract. This report is intended to be used in its entirety.

10. The distribution of the total valuation in this report between land and improvements (if applicable) applies only under the reported highest and best use of the property.

11. No environmental analysis was performed in conjunction with this appraisal assignment.

Although no environmental contamination was apparent to us, we are not experts in this field.

The client is encouraged to retain the services of a qualified environmental analyst if this issue is of concern. The appraiser hereby reserves the right to alter, amend, revise or rescind any of the value opinions herein based upon any additional environmental impact studies, research or investigations that may be performed.

12. Acceptance of and/or use of this appraisal report constitutes acknowledgement by the client of all General Assumptions and Special Conditions contained herein.

13. Payment for the preparation of this appraisal report is based on all charges due the appraiser in connection therewith, and, in no way is contingent upon the value conclusions herein.

14. This appraisal is made subject to any additional restrictions, ordinances or protective covenants which the appraiser, after due diligence and normal, standard research, may not be aware of, which would affect the subject property. Furthermore, the appraisal is subject to any and all easements, setbacks, flood elevations or restrictions, if any, that have been or might be imposed by any local, state or federal agency, and which may not be of record.

15. This report is based on information obtained from several sources including the current owner of the property, local real estate brokers, Hillsborough County planning and zoning personnel, as well as others as noted within the text of this appraisal. Such information is assumed to be reliable and accurate, but we do not warrant such beyond our reasonable attempt to verify said data.

16. This report is written in conformance with reporting requirements for an Appraisal Report, according to Uniform Standards of Professional Appraisal Practice (USPAP) and the Florida Department of Transportation's Supplement Standards.

Extraordinary Assumption(s)

We have relied upon Hillsborough County Property Appraiser’s Records, plans and information provided by the client, and sources deemed reliable for our site size estimates. We assume this information to be true and correct as its use might have affected the assignment results. Should subsequent information be provided to us that substantially deviates from these estimates, we reserve the right to review our analysis and conclusions. This assumption impacts our assignment results.

We have been advised that the subject site was previously utilized as an FDOT storage lot with underground tanks. These tanks were reportedly removed, and no contamination reportedly exists on site. We assume this information is accurate. This assumption impacts our assignment results.

We are not aware of any LOIs and contracts involving the subject. We assume there are no active offers, LOIs, or contracts involving the subject. This assumption impacts our assignment results.

Hypothetical Condition(s)

None

120 SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Property Type: Vacant Land

Owner Name: Hillsborough County

Location: 3100 North 66th Street, Tampa, Hillsborough

County, Florida 33619

Extent of Inspection: The extent of our inspection entailed walking the site and making visual observations.

Property Rights Appraised: Fee Simple

Site Data:

Size: 1.93 Acres 84,071 Square Feet Frontage/Access: North 66th Street East 21st Avenue East 23rd Avenue Topography: Level and near road grade Utilities: All reported to be available Zoning: RSC-9 (Residential Single Family Conventional

- 9) by Hillsborough County Land Use: R-12 (Residential - 12) by Hillsborough County

Occupancy: Vacant Land

Highest & Best Use:

Of Land as though Vacant: Residential oriented development.

Estimated Exposure Time: 12 months

Estimated Marketing Period: 12 months

Report Format: Appraisal Report

Purpose of the Appraisal: The purpose of this appraisal is to provide a current opinion of market value of market value of the fee simple interest in the subject.

Intended Use of the Appraisal: The intended use of this appraisal is to assist in the possible offing of the property to developers for affordable housing. This report is not intended for any other use.

Intended Users of the Appraisal: The intended users of this report are representatives of Hillsborough County. Use of this report by others is not intended.

Client: Hillsborough County

Comments: The subject site is vacant. We have been advised that the subject site was previously utilized as an FDOT storage lot with underground tanks. These tanks were reportedly removed and no contamination reportedly exists on site.

130 TYPE OF APPRAISAL AND REPORT FORMAT

Pursuant to the terms of our contract, this appraisal is written in conformance with the requirements for an Appraisal Report, according to the 2020-2021 Uniform Standards of Professional Appraisal Practice (USPAP).

140 APPRAISAL PURPOSE, INTENDED USE, AND INTENDED USER OF THE

APPRAISAL

The purpose of the appraisal is to provide an opinion of market value for the fee simple interest in the subject property. The intended use of this appraisal is to assist in the possible offing of the property to developers for affordable housing. This report is not intended for any other use. The intended users of this report are representatives of Hillsborough County. Use of this report by others is not intended.

150 DEFINITION OF MARKET VALUE AND OTHER TERMS

Market Value – The most probable price that 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. (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24,1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994.)1

Fee Simple Interest – 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

1 The Dictionary of Real Estate Appraisal, Seventh Edition (Chicago: Appraisal Institute, 2022), page 118

The Dictionary of Real Estate Appraisal, Seventh Edition (Chicago: Appraisal Institute, 2022), page 73.

Functional Utility – The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms.3

160 PROPERTY RIGHTS (INTEREST) APPRAISED

The interest appraised is the Fee Simple Estate. Fee Simple Estate is defined as “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”.4 This interest considers all easements and restrictions of record.

175 SCOPE OF APPRAISAL ANALYSIS

In the course of our research for the valuation of this property, and in compliance with the competency provision of the USPAP, we performed the following tasks:

• Inspected the subject property.

• Researched the competitive market for comparable land sales in the subject MSA from 2021 to present.

• Discussed the real estate market with local market participants active in the Hillsborough County market area.

• Confirmed all comparable data with a party to the transaction (a broker, buyer, or seller).

• Analyzed all available data and applied the Sales Comparison Approach to value.

3 The Dictionary of Real Estate Appraisal, Seventh Edition (Chicago: Appraisal Institute, 2022), page 79.

4 The Dictionary of Real Estate Appraisal, Sixth Edition, 2015, Page 90.

180 APPRAISAL PROBLEM

The valuation process began when we identified the appraisal problem and ended when the report was delivered. The valuation process was accomplished through six specific steps.

The first step in the valuation process is the definition of the appraisal problem. This step includes: identification of the real estate; identification of the property rights to be valued; use of the appraisal; definition of value; date of the value estimate; description of the scope of the appraisal; and other limiting conditions.

Scope of Work: This appraisal includes the market research and analyses necessary to reach a final value estimate using the sales comparison approach to value. We inspected the subject, its environs, and market area. The depth of research was representative of the current real estate market and economic environment. Our judgment was used in the absence of available market data and when additional research to generate such data was not feasible in relation to its importance to the appraisal problem. This appraisal report is a record of our research, analyses, opinions, and conclusions.

The second step in the valuation process is the preliminary research, data collection, data evaluation, and data selection. This step includes: General data concerning the market area – social, economic, governmental, and environmental considerations;

competitive supply and demand data concerning listings, sales, and market conditions;

and data specific to the subject site, improvements, and sales history.

The third step in the valuation process is the highest and best use analysis of the land as though vacant and of the property as improved. The highest and best use identifies that use which is legally permissible, physically possible, financially feasible, and maximally productive.

The fourth step in the valuation process is analyses using the sales comparison approach to value. The sales comparison approach is the only applicable approach to valuing vacant land.

The fifth step in the valuation process is the reconciliation of value indications, resulting in the final value estimate.

The sixth step and final step in the valuation process is the completion and delivery of the report.

200 IDENTIFICATION OF PROPERTY AND LEGAL DESCRIPTION

The subject is a 1.93 usable acre or 84,071 square foot residential site (folio # 042448- 0000). This subject site is currently vacant.

The legal description that we relied upon is included in the addenda of this report (see tax records/acquiring deed).

220 DESCRIPTION OF AREA AND NEIGHBORHOOD

A neighborhood is “a group of complementary land uses: a congruous grouping of inhabitants, buildings, or business enterprises.”5 The neighborhood is in the stability stage of its life cycle.

Neighborhood overview – The subject property is located in eastern Hillsborough County. Hillsborough County is situated between Pasco County to the north and Manatee County to the south. The county is further bordered by Tampa Bay and Pinellas County to the west and Polk County to the east. The largest city in Hillsborough County is the city of Tampa, with downtown Tampa located approximately eight miles to the west of the subject. The subject’s neighborhood location in eastern Hillsborough County is at the crux of the Interstate 75, US Highway 301 and the Interstate 4. Major east/west roadways in the vicinity of the subject include Broadway, State Road 60 and MLK Jr. Boulevard. These are primary thoroughfares with significant commercial development in the area. Major north/south roadways in the vicinity of the subject include US Highway 41 and 301. State Road 60 is a major six lane thoroughfare which generally runs in the northeastern quadrant of Hillsborough County and connects with Polk County to the east and Pinellas County to the west.

Land use, development trends, and linkages – The most predominant commercial development in the vicinity of the subject are office and industrial uses along primary roadways and residential uses along secondary roads. The subject’s immediate area is primarily older residential in nature. Most properties in the subject neighborhood appear to have been constructed between 1960 and 1980. The original impetus for development in the subject’s neighborhood was its location near the city of Tampa and its easy access. More recent residential developments are located east of Highway 301 and Interstate 75 off of major thoroughfares. The subject’s local area appeared to be largely developed at the time of inspection, with areas in the vicinity of the subject being approximately 85 percent built up. The western sections of the district are more intensely developed than the areas east of the subject, where there still remains available land. The development pattern generally follows a direction from west toward available vacant land to the east.

Area Demographics – We have estimated the subject neighborhood to consist of a five-mile ring surrounding the subject.

In the identified area, the current year population is 208,590. In 2020, the Census count in the area was 199,223. The rate of change since 2020 was 1.42% annually. The five-year projection for the population in the area is 216,474 representing a change of 0.74% annually from 2023 to 2028.

The household count in this area has changed from 78,612 in 2020 to 83,066 in the current year, a change of 1.71% annually. The five-year projection of households is 87,385, a change of 1.02% annually from the current year total. Average household

5 The Dictionary of Real Estate Appraisal, Seventh Edition (Chicago: Appraisal Institute, 2022), page 130.

size is currently 2.45, compared to 2.47 in the year 2020. The number of families in the current year is 47,180 in the specified area.

Current median household income is $51,148 in the area, compared to $72,603 for all U.S. households. Median household income is projected to be $58,072 in five years, compared to $82,410 for all U.S. households. Current average household income is $73,918 in this area, compared to $107,008 for all U.S. households. Average household income is projected to be $86,457 in five years, compared to $122,048 for all U.S. households. Current per capita income is $29,630 in the area, compared to the U.S. per capita income of $41,310. The per capita income is projected to be $35,068 in five years, compared to $47,525 for all U.S. households.

Conclusion – The subject property is located in an established neighborhood in the stability stage of its lifecycle. The future development trends in the area should be mainly new development and redevelopment of existing properties. The immediate area appears to be stable with future growth potential.

RESIDENTIAL MARKET OVERVIEW

We have presented an overview of the national, state and Tampa MSA residential market.

National and Regional Single-Family Market

According to NAR (National Association of Realtors), existing single family homes sales have decreased with projected annual sales of 3,740,000 units in April 2024 versus 3,790,000 units in April 2023. Statistics in the South have also decreased with annual sales in April 2024 of 1,720,000 versus 1,760,000 in April 2024.

As of April 2024, there was a 3.4 month supply of inventory available, which was up from a 2.9 month supply last year.

As illustrated on the following table, the median nationwide existing single family home price was $412,100 in April 2024, which is up 5.6% from a year ago. The median price in the South was $372,300, which was slightly lower from the previous year.

Florida Single Family Market

The following data was prepared by the Florida Association of Realtors (FAR).

As can be seen in the following charts, sales of single-family homes increased in the April 2024 from April 2023. The percent change was 5.8%.

STATE OF FLORIDA HISTORICAL CLOSED SALES FIGURES

Pricing has shown an increase in 2024 from 2023.

STATE OF FLORIDA MEDIAN SALES PRICE FIGURES

Tampa MSA County Single Family Market

The following data was prepared by the Greater Tampa Association of Realtors (GTAR). As can be seen in the following charts, sales of single-family homes have fluctuated over the past year. In April 2024 closed sales volume was up since April 2023.

TAMPA MSA CLOSED SALES FIGURES

Home pricing has continued to increase, with a median sales price in April 2024 of $417,800.

TAMPA MSA MEDIAN SALES PRICE FIGURES

New Home Construction

We have also analyzed data from the US Census Bureau for new home starts in the State of Florida. As can been seen in the following chart, new construction permits declined each year from 2005 through 2011. In 2012 and 2013, construction saw a significant improvement to 10,161 and 12,152 total units, respectively. For 2014, permits were similar to 2013 figures. In 2015 there has been another significant increase in permits, which have generally continued to trend upward through 2022.

Multifamily housing has had a larger influence on total starts, in recent years.

CONCLUSION

The Tampa Bay MSA experienced large growth in residential housing during the residential “boom” period of the early to mid 2000’s. Since the beginning of 2013, the market trend has generally shown increases in pricing and total homes sold.

230 DESCRIPTION OF THE PROPERTY

Location

The subject site is located at 3100 North 66th Street, Tampa, Hillsborough County, Florida 33619. The subject site is located along North 66th Street between East 21st Avenue and East 23rd Avenue. The subject has good visibility and frontage from these roadways. These roadways are secondary neighborhood thoroughfares.

Site Description, Shape, and Functional Utility

The subject site contains a total of approximately 1.93 acres or 84,071 square feet. The entire subject site is upland and usable. The subject site is rectangular and contains average functional utility.

Soil and Subsoil

During our inspection, no soil or subsoil problems were apparent. This opinion is based solely on a visual inspection of the surface of the site. We assume no responsibility for hidden or unapparent conditions beyond our expertise and professional qualifications (please see General Assumptions, Item 6).

Drainage and Topography

During our inspection the site was high and dry. The drainage appeared to be adequate. The site was relatively level and slightly below existing road grade.

Flood Zone

The subject site is located in flood zone X, an area of minimal flood risk, according to the Federal Emergency Management Agency’s (FEMA) Flood Insurance Rate Map (FIRM), Community-Panel Number 12057C 0360H, map revised: August 28, 2008.

The Flood Insurance Rate Map is for flood insurance purposes only; it does not delineate all areas which may flood. A copy of this map is included in this section.

Utilities and Government Services

All necessary utilities and government services are available to support the existing site.

Building Type: The subject site is vacant.

SUBJECT PROPERTY PHOTOGRAPHS

SUBJECT SITE VIEWING NORTH

SUBJECT SITE VIEWING NORTHWEST

SUBJECT SITE VIEWING WEST

SUBJECT SITE VIEWING SOUTH

VIEW NORTH ALONG NORTH 66th STREET

VIEW SOUTH ALONG NORTH 66th STREET

VIEW WEST ALONG EAST 21st AVENUE

VIEW EAST ALONG EAST 21st AVENUE

VIEW WEST ALONG EAST 23rd AVENUE

VIEW EAST ALONG EAST 23rd AVENUE

AERIAL MAP

Source: Hillsborough County Property Appraiser

FLOOD INSURANCE RATE MAP

Source: MapWise

240 ZONING, LAND USE, CONCURRENCY

Zoning

Zoning is public regulation of the use of private land through application of police power;

accomplished by establishing districts or areas with uniform restrictions relating to lot coverage, setbacks, types of improvement, permitted activities, signage, structure height, minimum lot area, density, landscaping, and other aspects of land use development. Zoning regulations are established by enactment of a local zoning ordinance.6

The subject is located within the RSC-9 (Residential Single Family Conventional – 9) zoning district by Hillsborough County. The purpose of this district is to provide the opportunity for 5,000 square foot or larger lot single-family conventional development in a medium density living environment in conformance with the provisions of the Comprehensive Plan.

Future Land Use

The subject site has future land use designation of R-12 (Residential - 12) by Hillsborough County. This future land use district allows for a maximum density of 12 units per acre. Typical uses within this future land use district include residential, urban commercial, offices, multi-purpose projects, and mixed-use development.

Concurrency

The availability of utilities and government services must be concurrent with the impacts of development. A complete analysis of concurrency as it relates to the subject is beyond our expertise. We assume no responsibility for any concurrency issues, or the civil engineering, urban planning, or legal knowledge required to identify and quantify them. We assume that the subject meets concurrency requirements.

6 The Dictionary of Real Estate Appraisal, Seventh Edition (Chicago: Appraisal Institute, 2022), page 207.

250 ASSESSED VALUE AND TAXES

According to the Hillsborough County Property Appraiser the subject identified, assessed, and taxed as follows:

Property tax bills are issued in November of each year, at which time a 4% discount is allowed. The discount decreases by 1% per month until April 1st of the following year, which is the final due date, after which a penalty is added. There do not appear to be any delinquent property taxes.

260 HISTORY OF THE PROPERTY (LAST 3 YEARS)

The subject is currently under the ownership of Hillsborough County. We have been advised that the subject site was previously utilized as an FDOT storage lot with underground tanks. These tanks were reportedly removed.

We are not aware of any listings, LOIs, or contracts involving the subject. This information was requested, but not provided by the owners. There have been no arm’s length sales in the past three years.

Parcel # 2023 Assessment 2023 Taxes*

042448-0000 $105,519 $0.00

Source: Hillsborough County

*The subject contains a governmental tax exemption.

SUBJECT TAX INFORMATION

270 EXPOSURE TIME ANALYSIS

Exposure time is defined as “the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical sale at market value as of the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market.7

Our estimated exposure time for the subject property is based on the time required to market and sell a variety of residential, commercial and industrial properties in the subject’s market area. Information in this regard was obtained through our verification of sales data, collection of general market data for analysis of neighborhood trends, and in conversations with area real estate brokers. Most of the market participants we spoke with acknowledged an exposure time for property similar to the subject in the 12-month range, assuming the property was actively marketed and priced correctly. Thus, it is our opinion that if the subject property were on the market today, an exposure time of approximately 12 months would be considered reasonable to secure a buyer, at the value concluded herein.

280 PUBLIC AND PRIVATE RESTRICTIONS

Public Restrictions: None known beyond zoning and land use regulations.

Private Restrictions: None known

7 FDOT Supplemental Standards of Appraisal, Revised 01/2014.

300 HIGHEST AND BEST USE ANALYSIS

The highest and best use is the reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.8

Whether the subject property is vacant or improved as of the date of valuation, it is necessary to estimate the highest and best use of the property “as though vacant”, in either case, and “as improved”, if such is the case. The following is an in depth analysis of these criteria and how they bear upon the highest and best use of the subject property “as though vacant”.

Highest and Best Use of Land as though Vacant

We evaluated the subject site based upon those land uses that are legally permissible, physically possible, financially feasible, and maximally productive.

Legally Permissible – The subject site was reportedly successfully rezoned to the PD (Planned Development) The subject is located within the RSC-9 (Residential Single Family Conventional – 9) zoning district by Hillsborough County. The purpose of this district is to provide the opportunity for 5,000 square foot or larger lot single-family conventional development in a medium density living environment in conformance with the provisions of the Comprehensive Plan.

The subject site has future land use designation of R-12 (Residential - 12) by Hillsborough County. This future land use district allows for a maximum density of 12 units per acre. Typical uses within this future land use district include residential, urban commercial, offices, multi-purpose projects, and mixed-use development..

The subject can be legally developed with a residential oriented use.

Physically Possible – Physically possible uses are based upon, “the size, shape, area, terrain, and accessibility of a parcel of land and the risk of natural disasters such as floods or earthquakes which affect the uses under which it can be developed. The utility of a parcel may also depend on its frontage and depth. Irregularly shaped parcels can cost more to develop and, after development, may have less utility than regularly shaped parcels of the same size. Ease of access enhances the utility of a site.”9 The following physical considerations affect the subject:

▪ The subject site is located along North 66th Street between East 21st Avenue and

East 23rd Avenue. The subject has good visibility and frontage from these roadways.

8 The Dictionary of Real Estate Appraisal, Seventh Edition (Chicago: Appraisal Institute, 2022), page 88.

The Appraisal of Real Estate, p. 304.

▪ The subject site contains a total of approximately 1.93 acres or 84,071 square feet.

The entire subject site is upland and usable. The subject site is rectangular and contains average functional utility.

▪ The site’s topography is relatively level and are slightly below road grade.

▪ The subject site is located in flood zones “X”, an area of minimal flood risk.

▪ The subject site is located in an established and stable/growing area.

The subject site could legally and physically be developed with a residential orient use.

Financially Feasible – “Financially feasible uses produce an income of return, equal to or greater than the amount needed to satisfy operating expenses, financial obligations, and capital amortization. All uses that are expected to produce a positive return are regarded as financially feasible. If the uses are not income-producing, the analysis will determine which are likely to create a value or result in a profit equal to or greater than the amount needed to develop and market the property under those uses. Analyses of supply and demand and of location are needed to identify those uses that are financially feasible and, ultimately, the use that is maximally productive.”10 The following financial considerations affect the subject:

The financial feasibility of a building is based on the amount of rent which can be generated, less operating expenses required to generate that income; if a residual amount existing, then the land is being put to a productive use. The immediate surrounding land uses near the subject are residential oriented uses with some commercial development along primary roadways. These nearby residential uses are one indication that a residential oriented development is financially feasible. As such, it appears that a residential oriented use is financially feasible.

Maximally Productive – The final test of highest and best use of the site as though vacant is that the use be maximally productive, yielding the highest return to the land.

The following considerations affect the maximally productive use of the subject:

▪ The neighborhood is in the stability stage of the neighborhood life cycle. The neighborhood benefits from a stable residential base.

▪ The immediate surrounding land uses near the subject are residential oriented uses with some commercial development along primary roadways

Among the legally permissible, physically possible, and financially feasible uses, based upon our market research and judgment, the maximally productive use of the subject site, considering its current size, would be to develop with a residential oriented use.

The Appraisal of Real Estate, p. 305.

Conclusion: Highest and Best Use As Though Vacant

Based on the foregoing, the highest and best use of the property as though vacant is to develop with a residential oriented use.

Highest and Best Use of Property As Improved

Not applicable. The subject site is essentially vacant land.

302 HIGHEST AND BEST USE CONCLUSION

The highest and best use of the property “as vacant” is for a residential oriented use.

305 APPROACHES TO VALUE USED AND EXCLUDED

There are three approaches to value that are typically used to estimate value. They are defined as follows:

• Cost Approach – A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive or profit; deducting depreciation from the total cost; and adding the estimated land value. Adjustments may then be made to the indicated fee simple estate in the subject property to reflect the value of the property interest being appraised.11

• Income Capitalization Approach – Specific appraisal techniques applied to develop a value indication for a property based on its earning capability and calculated by capitalization of property income.12

• Sales Comparison Approach – The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison.13

The sales comparison approach is the only applicable approach to valuing vacant land. This approach to value is presented on the following pages.

11 The Dictionary of Real Estate Appraisal, Sixth Edition, p. 54.

12 The Dictionary of Real Estate Appraisal, Sixth Edition, p. 115.

13 The Dictionary of Real Estate Appraisal, Sixth Edition, p. 207.

310 LAND VALUATION

The subject site is valued via the sales comparison approach.

335 SALES COMPARISON APPROACH

The sales comparison approach is based upon the following principles:

▪ Supply and Demand: Property prices result from negotiations between buyers and sellers. Buyers make up the market demand and the properties offered for sale currently or in the foreseeable future make up the supply. To estimate demand, appraisers consider the number of potential users of a particular type of property, their purchasing power, and their tastes and preferences. To analyze supply, appraisers focus on existing properties on the market as well as properties that are being constructed, converted or planned.

▪ Substitution: The principle of substitution holds that the value of a property tends to be set by the price that would be paid to acquire a substitute property of similar utility and desirability within a reasonable amount of time.

▪ Balance: The forces of supply and demand tend toward equilibrium, or balance, in the market, but absolute equilibrium is almost never attained.

Due to shifts in population, purchasing power, and consumer tastes and preference, demand varies greatly over time. The construction of new buildings, conversion of existing buildings to other uses, and demolition of old buildings cause supply to vary as well. Another aspect of this principle holds that the relationship between land and improvements and the relationship between a property and its environment must both be in balance for a property to achieve its optimum market value.

▪ Externalities: External forces affect all types of property in positive or negative ways. Periods of economic growth and economic decline influence property values. An appraiser analyzes the market area of the subject property to identify all significant external influences. To a great extent, the adjustments made to the sale prices of the comparable properties for differences in location reflect these external forces. The condition and lighting of streets, the convenience of transportation facilities, the adequacy of police protection, the enforcement of municipal regulations, real estate tax burdens, and the proximity to shopping and restaurant facilities can all vary with location, making one location more or less attractive than another.14

14 The Appraisal of Real Estate, 14th Edition, p. 378-379.

To apply the sales comparison approach, the appraiser follows a systematic procedure:

1. Research the competitive market for information on properties that are similar to the subject property and that have recently sold, are listed for sale, or are under contract. Information on agreements of sales, options, and bona fide offers may also be collected. The characteristics of the properties such as property type, date of sale, size, physical condition, location, and land use constraints should be considered. The goal is to find a set of comparable sales or other evidence such as property listings or contracts as similar as possible to the subject property to ensure they reflect the actions of similar buyers. Market analysis and highest and best use analysis set the stage for the selection of appropriate comparable sales.

2. Verify the information by confirming that the data obtained is factually accurate and that the transactions reflect arm’s-length market considerations. Verification should elicit additional information about the property such as buyer motivation, economic characteristics (of the property is income-producing), value component allocations, and other significant factors as well as information about the market to ensure that the comparisons are credible.

3. Select the most relevant units of comparison used by participants in the market (e.g. price per acre, price per square foot, price per front foot, price per dwelling unit) and develop a comparative analysis for each unit. The appraiser’s goal is to define and identify a unit of comparison that explains market behavior.

4. Look for differences between the comparable sale properties and the subject property using all appropriate elements of comparison. Then adjust the price of each sale property, reflecting how it differs, to equate it to the subject property or eliminate that property as a comparable. This step typically involves using the most similar sale properties and then adjusting for any remaining differences. If a transaction does not reflect the actions of a buyer who would also be attracted to the subject property, the appraiser should be concerned about comparability.

5. Reconcile the various value indications produced from the analysis of comparables into a value conclusion. A value opinion can be expressed as a single point estimate, as a range of values, or in terms of a relationship (e.g., more or less than a given amount). 15

15 The Appraisal of Real Estate, 14th Edition, p. 381-382.

340 COLLECTION OF COMPARABLE SALES

We primarily researched the Tampa Bay MSA in an effort to find comparable sales that were most similar to the subject property. From the data available for analysis, we selected six comparable land sales.

We have analyzed these comparables on an overall price per square foot. These comparable land sale write-ups and location maps are presented in the addenda of this report and will be discussed on the following pages.

Land Sale 1 – involves the sale of a residential site located at 6510 East 25th Avenue, Tampa, Hillsborough County, Florida. This site contains approximately 0.30 usable acres or 13,121 usable square feet. This site sold in March of 2023 for a consideration of $62,500 or $4.76 per square foot.

Land Sale 2 – involves the sale of a residential site located at 2314 South 46th Street, Tampa, Hillsborough County, Florida. This site contains approximately 0.72 upland acres or 31,363 square feet. This site sold in August of 2022 for a consideration of $150,000 or $4.78 per square foot.

Land Sale 3 – involves the sale of a residential site located at 4703 Garden Lane, Tampa, Hillsborough County, Florida. This site contains approximately 0.97 upland acres or 42,188 square feet. This site sold in October of 2022 for a consideration of $201,300 or $4.77 per square foot.

Land Sale 4 – involves the sale of a residential site located at 7208 East 21st Avenue, Tampa, Hillsborough County, Florida. This site contains approximately 2.10 upland acres or 87,556 square feet. This site sold in May of 2024 for a consideration of $325,000 or $3.71 per square foot.

Land Sale 5 – involves the sale of a residential site located at 12208 Four Oaks Road, Tampa, Hillsborough County, Florida. This site contains approximately 4.65 upland acres or 202,554 square feet. This site sold in March of 2022 for a consideration of $1,250,000, or $6.17 per usable square foot.

Land Sale 6 – involves the sale of a residential site located at the Northeast corner of 65th Street & East 21st Avenue, Tampa, Hillsborough County, Florida. This site contains approximately 1.64 upland acres or 71,280 square feet. This site sold in January of 2024 for a consideration of $400,000, or $5.61 per usable square foot.

345 COMPARABLE LAND SALES ADJUSTMENT GRID

SUBJECT

ADDRESS/LOCATION

City Tampa, FL

Tampa, FL

PROPERTY DATA

GROSS LAND AREA - SF 84,071 13,121 31,363 42,188 87,556 202,554 71,280

GROSS LAND AREA - ACRES 1.93 0.30 0.72 0.97 2.01 4.65 1.64

USABLE LAND AREA - SF 84,071 13,121 31,363 42,188 87,556 202,554 71,280

USABLE LAND AREA - ACRES 1.93 0.30 0.72 0.97 2.01 4.65 1.64

TOPOGRAPHY Level, near road grade

OFF-SITE RETENTION No No No No No No No

CORNER INFLUENCE Yes No No No No Yes Yes

CONFIGURATION Rectangular

PUBLIC WATER AVAILABLE Yes Yes Yes Yes Yes Yes Yes

PUBLIC SEWER AVAILABLE Yes Yes No Yes Yes Yes Yes

ZONING RSC-9 RSC-9 RSC-9 RSC-6 RSC-9 RSC-9 RSC-9

SALE DATA

SALE DATE Mar-23 Aug-22 Oct-22 May-24 Mar-22 Jan-24

SALE PRICE $62,500 $150,000 $201,300 $325,000 $1,250,000 $400,000

SALE PRICE - PER USABLE ACRE $207,492 $208,335 $207,846 $161,691 $268,817 $244,444

SALE PRICE - PER USABLE SF $4.76 $4.78 $4.77 $3.