Appraisal-_Vacant_Lot_06.01.2024_(1).pdf

Appraisal Report

Prepared for

Ms. Cecilia S. Miranda, Esq.

Brito, PLLC c/o Doral 10, LLC

Property Appraised

Vacant Land

+/- 412,575 square feet (9.47 acres) along the west side of NW 102nd Avenue and along the east side of NW 104th Avenue, between NW 66th Street and NW 74th Street

Doral, FL 33178

Folio’s: 35-3017-001-0210, and -0208

Date of Valuation

June 1, 2024

Date of Retrospective Valuation

March 4, 2019

Date of Inspection

June 1, 2024

Prepared by

ACP Appraisals, LLC

File # ACP19502

Alejandro C. Puente

Ph: 305-349-3019

Email: apuente@acpappraisals.com www.acpappraisals.com

June 7, 2024

Ms. Cecilia S. Miranda, Esq.

Brito, PLLC c/o Doral 10, LLC 2121 Ponce de Leon Boulevard, Suite 650 Coral Gables, FL 33134

Re: Vacant Land (Folio’s: 35-3017-001-0210, and -0208) +/- 412,575 square feet (9.47 acres) along the west side of NW 102nd Avenue and along the east side of NW 104th Avenue, between NW 66th Street and NW 74th Street

Dear Ms. Miranda, Esq.:

We have prepared this Appraisal Report of the above referenced property to estimate the market value of the fee simple interest based on a hypothetical condition as of June 1, 2024 (Scenario 1); the market value of the fee simple interest subject to an extraordinary assumption as of June 1, 2024 (Scenario 2);

the retrospective market value of the fee simple interest as of March 4, 2019 (Scenario 3); and the retrospective market rent as of March 4, 2019. Definitions for the terms market value, retrospective value, hypothetical condition, extraordinary assumption, and fee simple interest are in the pages of this report.

This report has been prepared based on the scope of work which is detailed on a following page. The reader of the appraisal is advised to read the scope of work which follows the table of contents, to understand the scope of this appraisal. Following the scope of work is the general assumptions and limiting conditions, which the reader is advised to review to understand the limitations applicable to this appraisal in addition to the certification at the conclusion of this report.

This report is intended for use only by the client and intended users as noted herein. No additional intended users are identified or intended. Use of this report by others is not intended by the appraiser.

No one else, or any other entities, should rely on this appraisal other than those noted herein.

The subject property is located along the west side of NW 102nd Avenue and along the east side of

NW 104th Avenue, between NW 66th Street and NW 74th Street at approximately NW 70th Street in the City of Doral, Miami-Dade County, FL. The subject property is comprised of two vacant parcels totaling 422,474 (9.7 acres) per the survey and Miami-Dade County Property Appraiser. Of note, the survey designates a 30-foot right-of-way along the west side of the subject property, therefore, the appraisers have determined the size to be 412,575 square feet (9.47 acres.). Parcel 1 consists of 341,630 square feet (7.84 acres) zoned MF-1, Multi-Family Residential-1 District by the City of Doral, FL.

Parcel 2 consists of 70,945 square feet (1.63 acres) zoned CC, Commercial Corridor District by the

City of Doral, FL.

Ms. Cecilia S. Miranda, Esq., Brito, PLLC c/o Doral 10, LLC

According to the client and the documentation received, the subject property was occupied on

March 4, 2019, by contractors and subcontractors of the City of Doral as a staging area for the construction of NW 102nd Avenue. Subsequently, the property was found to be contaminated. The affected areas are approximately 106,796 square feet (1.45 acres) on the eastern portion of the site of which 55,586 square feet (1.28 acres) is on Parcel 1 and 51,210 square feet (1.18 acres) is on

Parcel 2.

This appraisal is based on a hypothetical condition and an extraordinary assumption. Both are defined in The Dictionary of Real Estate Appraisal, 7th Edition (2022). A hypothetical condition is "a condition that is presumed to be true when it is known to be false. A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends or about the integrity of data used in analysis." An extraordinary assumption is “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. Comment: Uncertain information might include physical, legal or economic characteristics of the subject property, or conditions external to the property, such as market conditions or trends, or about the integrity of the data used in the analysis. (USPAP 2020-2021 ed.).

Scenario 1 – the subject property is contaminated as of the date of value June 1, 2024. Per Phase I

& Phase II Environmental Site Assessments, the existence of hazardous materials is present at the property. The value estimate is predicated on the hypothetical condition that there is no such material contaminating the property that would cause a loss in value.

Scenario 2 – the appraisers relied on the information provided by the client and letter prepared by

James T. Miller, P.E. of Hydrologic Associates U.S.A., Inc., (Hal). The affected areas are assumed to be approximately 106,796 square feet (1.45 acres) on the eastern portion of the site of which

55,586 square feet (1.28 acres) is on Parcel 1 and 51,210 square feet (1.18 acres) is on Parcel 2. In addition, this appraisal assumes the cost to remediate is $3,150,000 and loss of use to include remediation is for one year. This appraisal assumes the information to be correct and accurate. Any changes in the cost to cure or the time frame may affect the value.

If either the hypothetical condition or the extraordinary assumption are found to be false or different in any way, the opinions and/or conclusions of value herein would and/or could be altered. The reader is advised to be familiar with the hypothetical condition and the extraordinary assumption and how they would affect value.

Ms. Cecilia S. Miranda, Esq., Brito, PLLC c/o Doral 10, LLC

Scenario 1

Based on our research and analysis, it is our opinion that the market value of the fee simple interest based on a hypothetical condition as of June 1, 2024, is in the amount of

SEVENTEEN MILLION TWO HUNDRED THOUSAND DOLLARS

($17,200,000)

Scenario 2

Based on our research and analysis, it is our opinion that the market value of the fee simple interest subject to an extraordinary assumption as of June 1, 2024, is in the amount of

TEN MILLION SIX HUNDRED THOUSAND DOLLARS

($10,600,000)

Scenario 3

Based on our research and analysis, it is our opinion that the retrospective market value of the fee simple interest as of March 4, 2019 is in the amount of

ELEVEN MILLION FIFTY THOUSAND DOLLARS

($11,050,000)

Market Rent Analysis as of March 4, 2019

Based on our research and analysis, it is our opinion that the retrospective market rental rate as of

March 4, 2019, is in the amount of

EIGHT HUNDRED EIGHTY FOUR THOUSAND DOLLARS

($884,000 per year or $73,667 per month)

The above estimated market rental rate is on a triple net basis, which stipulates that the tenant is responsible for all operating expenses. A lease would be for 3 to 5 years with 3% annual increases.

The subject property was inspected on June 1, 2024.

This appraisal report contains a hypothetical condition and an extraordinary assumption. If either the hypothetical condition or the extraordinary assumption are found to be false or different in any way, the opinions and/or conclusions of value herein would and/or could be altered. The reader is advised to be familiar with the hypothetical condition and the extraordinary assumption and how they would affect value.

Sincerely, Alejandro C. Puente State-Certified General Real Estate Appraiser

License No. RZ3697

Table of Contents

TABLE OF CONTENTS 4

SCOPE OF WORK 5

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 6

INTRODUCTION 8

EXECUTIVE SUMMARY 8

MIAMI-DADE COUNTY MAP 10

PLAT MAP 11

AERIAL PHOTOGRAPH 12

SURVEY 13

SPECIFIC PURPOSE SURVEY 14

SUBJECT PHOTOGRAPHS 15

DESCRIPTION & ANALYSES 18

PURPOSE OF THE APPRAISAL 18

CLIENT, INTENDED USER AND USE OF THE APPRAISAL 18

DEFINITION OF REAL PROPERTY INTEREST APPRAISED 18

DEFINITION OF RETROSPECTIVE MARKET VALUE OPINION 18

DEFINITION OF MARKET VALUE 19

LOCATION AND ADDRESS 20

LEGAL DESCRIPTION 20

OWNER OF RECORD 20

HISTORY OF THE SUBJECT PROPERTY 20

SITE DATA 21

ZONING 21

FLOOD ZONE 22

REAL ESTATE ASSESSMENT AND TAXES 23

CONTAMINATION DAMAGES AND COSTS TO CURE 25

NEIGHBORHOOD OVERVIEW 28

EXPOSURE TIME 29

TYPICAL PURCHASER OF THE SUBJECT 29

HIGHEST AND BEST USE 30

APPRAISAL PROCESS 31

COST APPROACH 32

INCOME CAPITALIZATION APPROACH 33

SALES COMPARISON APPROACH – SCENARIO 1 34

SCENARIO 2 53

SALES COMPARISON APPROACH – SCENARIO 3 54

MARKET RENT ANALYSIS AS OF MARCH 4, 2019 71

RECONCILIATION OF VALUE 73

CERTIFICATION 75

ADDENDUM 77

APPRAISER QUALIFICATIONS 77

APPRAISER LICENSE 78

FLOOD MAP 79

Scope of Work

The appraisal problem herein is to estimate the to estimate the market value of the fee simple interest based on a hypothetical condition as of June 1, 2024 (Scenario 1); the market value of the fee simple interest subject to an extraordinary assumption as of June 1, 2024 (Scenario 2); the retrospective market value of the fee simple interest as of March 4, 2019 (Scenario 3); and the retrospective market rent as of March 4, 2019. For all three scenarios, the only approach to value applied in this appraisal is the sales comparison approach. Neither a cost approach nor an income capitalization approach was applied, since neither of these approaches are typically considered by purchasers of this property type.

Not using these approaches does not limit the reliability of the value estimated herein. The analysis herein is considered sufficient to develop credible assignment results in solving the appraisal problem.

This appraisal report contains a hypothetical condition and an extraordinary assumption. If either the hypothetical condition or the extraordinary assumption are found to be false or different in any way, the opinions and/or conclusions of value herein would and/or could be altered. The reader is advised to be familiar with the hypothetical condition and the extraordinary assumption and how they would affect value.

All appraisals begin by identifying the appraisal problem. Data on the subject property can be derived from various sources including but not limited to, the property owner, the county property appraiser’s office, recorded plats and surveys. When possible, more than one source is utilized to confirm data and the data sources are acknowledged. Land size is based on surveys (when available), public records and recorded plats. Land measurements are not performed.

The subject property value is in the land which can be valued by the following methods:

1. Sales Comparison Approach

2. Market Extraction

3. Allocation

4. Land Residual

5. Ground Rent Capitalization

6. Subdivision Analysis

The sales comparison approach was applied and considered the only applicable valuation method. A search was performed for the sale of properties considered comparable. Research of comparable sales and market data include, but is not limited to, using the following data sources:

CoStar

Imapp

Published Articles

Board of Realtors’ Multiple Listing Service (MLS)

Comparable sales are inspected, and transactional information is reported. Sale prices are from public records and are typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent, or closing attorney, when possible. All information is analyzed in processing the appraisal report as support for the estimated value.

The scope of work for this assignment has been described above and is typical for the appraisal problem.

General Assumptions and Limiting Conditions

This appraisal report has been made with the following general assumptions:

1. No responsibility is assumed for the legal description nor is responsibility assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable.

2. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear.

3. Responsible ownership and competent property management are assumed.

4. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

5. All engineering studies are assumed to be correct. Any plot plans or illustrative material in this report are included only to help the reader visualize the property.

6. Noted in this appraisal report are any adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in the appraisal report, the appraisers have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. The appraisers have no responsibility for any such conditions that do exist, or for any engineering or testing, that might be required to discover whether such conditions exist.

7. It is assumed that the property is in full compliance with all applicable federal, state and local environmental regulations and laws unless the lack of compliance is stated, described and considered in the appraisal.

8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions, unless a non-conformity has been identified, described and considered in the appraisal.

9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state or national government or private entity or organization have been, or can be obtained, or renewed for any use on which the opinion of value contained in this report is based.

10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and considered in the appraisal.

11. The existence of hazardous materials was present at the property. Appraisers are not experts in the field of environmental hazards and this report should not be considered an environmental assessment of the property. The client and any intended user is urged to retain an expert in this field. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser is not qualified to detect such substances. The presences of substances such as asbestos, urea formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. See hypothetical condition.

12. The physical condition of the improvements, if any, described herein was based on visual inspection. No liability is assumed for the soundness of structural members, since no engineering tests were made of same.

13. Neither all nor any part of this appraisal report shall be disseminated to the public using the appraiser’s name or appraisal designation, without prior written consent of the appraisers signing this appraisal report.

14. Neither all nor any part of this appraisal report shall be disseminated without the appraiser’s written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.

15. Authorization is not allowed for the out-of-context quoting from, or partial reprinting of, this appraisal report.

16. There is no requirement to give testimony or appear in court because of having made an appraisal of the appraised property, unless specific arrangements to do so have been made in advance, or as otherwise required by law.

17. The reader should be advised that our employment was not contingent on the appraisal providing a minimum valuation, a specific calculation or the approval of a loan. Additionally, we have complied with the USPAP Competency Rule.

18. The Client, as identified within the appraisal, is the party or parties who engaged the appraiser for a specific assignment. By receiving a copy of this report from the client, that person or persons do not become a party to the appraiser-client relationship, nor an intended user. Any person who receives a copy of this appraisal report, due to disclosure requirements that apply to an appraiser’s client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment and they are identified in the report.

19. If the valuation in the report is subject to satisfactory completion, repairs, or alterations, it is assumed that the improvements will be completed competently and without significant deviation.

If a cost to complete these improvements was provided by the client, it is assumed that the estimate is accurate, unless otherwise noted.

20. The contents of the appraisal report, except as required by the Uniform Standards of Professional

Appraisal Practice, and/or applicable federal, state or local laws, will not be disclosed.

Limiting Conditions:

1. The allocation of total value between land and improvements applies only under the described utilization. The separate valuations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.

2. The Americans with Disability Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether it is in conformity with the various detailed requirements of the requirements of the ADA. It is possible that a compliance survey of the property and a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the

Act. If so, this fact could have a negative impact upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property.

Introduction Vacant Land, Doral, FL 33178

Introduction

Executive Summary

Location: The subject property is located along the west side of NW 102nd Avenue and along the east side of NW 104th Avenue, between NW 66th

Street and NW 74th Street at approximately NW

70th Street in the City of Doral, Miami-Dade

County, FL.

Address: Not yet assigned

Folio: 35-3017-001-0210 and 35-3017-001-0208

Type of Use: Vacant Land

Zoning: Parcel 1 – MF-1, Multi-Family Residential-1

District and Parcel 2 – CC, Commercial

Corridor District by the City of Doral, FL

Flood Zone: Zone X and AH (Map 12086C0278L, revised

09/11/09)

Land Area:

Parcel 1: 341,630 square feet (7.84 acres)

Parcel 2: 70,945 square feet (1.63 acres)

Total: 412,575 square feet (9.70 acres)

Scenario 1

Value by Cost Approach: Not applicable

Value by Income Capitalization Approach: Not applicable

Value by Sales Comparison Approach: $17,200,000

Market Value Estimate

Based on a Hypothetical Condition: $17,200,000

Date of Valuation: June 1, 2024

Date of Retrospective Valuation: March 4, 2019

Value by Sales Comparison Approach: $10,600,000

Market Value Estimate of the Fee Simple Interest: $10,600,000

Date of Valuation: June 1, 2024

Scenario 3

Value by Sales Comparison Approach: $11,050,000

Retrospective Market Value Estimate of the Fee Simple Interest: $11,050,000

Market Rent Analysis

Estimate of Retrospective Market Rental Rate: $884,000 or $73,667 per month

The above estimated market rental rate is on a triple net basis, which stipulates that the tenant is responsible for all operating expenses. A lease would be for 3 to 5 years with 3% annual increases.

Date of Inspection: June 1, 2024

Date of Report: June 7, 2024

If either the hypothetical condition or the extraordinary assumption are found to be false or different in any way, the opinions and/or conclusions of value herein would and/or could be altered. The reader is advised to be familiar with the hypothetical condition and the extraordinary assumption and how they would affect value.

Miami-Dade County Map

Subject

Subject

Plat Map

Parcel 1

Parcel 2

Aerial Photograph

Parcel 2

Survey

Specific Purpose Survey

Subject Photographs

View of the site looking west from NW 102nd Avenue.

View of the site looking east from

NW 104th Avenue.

Street Views

Looking south along NW 102nd Avenue.

The subject property is to the right.

Looking north along NW 102nd Avenue.

The subject property is to the left.

Looking north along NW 104th Avenue.

The subject property is to the right.

Looking south along NW 104th Avenue.

The subject property is to the left.

Description & Analyses Vacant Land, Doral, FL 33178

Description & Analyses

Purpose of the Appraisal

The purpose of this appraisal is to estimate the market value of the fee simple interest based on a hypothetical condition as of June 1, 2024; the market value of the fee simple interest as of June 1, 2024; and the retrospective market value as of March 4, 2019. The subject property was inspected on

June 1, 2024. The terms fee simple interest and retrospective market value are defined below and the term market value is defined on the following page.

Client, Intended User and Use of the Appraisal

The intended user of this appraisal is Ms. Cecilia S. Miranda, Esq., Brito, PLLC c/o Doral 10, LLC

(client). The intended use of this appraisal report is for litigation purposes. No purchaser or seller of the subject property, nor any borrower are intended users of this appraisal and no such parties should use or rely on this appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. No additional intended users are identified or intended.

Definition of Real Property Interest Appraised

The real property interest appraised herein is that of the fee simple interest, defined as follows:

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".

Source: The Dictionary of Real Estate Appraisal, 7th Edition, 2022, Page 73

Definition of Retrospective Market Value Opinion

A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”

Source: The Dictionary of Real Estate Appraisal, 7th Edition, 2021, page 166

Definition of Market Value

Market Value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined, although a multiplicity of sometimes conflicting market value definitions used for different purposes can present potential problems in appraisal assignments.1 The Uniform Standards of Professional Appraisal Practice

(USPAP) states Market Value is “a type of value, stated as an opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal”.2 This requires the appraiser to identify the definition of market value and its authority.

The definition that follows is the basis of the valuation in this appraisal and the source is the

Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75

Number 237, Page 77472.

Market Value is defined as “the most probable price which a property should bring in a competitive and open market under all condition’s 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 are 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

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.” 2F

This market value definition is referenced within the appraisal regulations of the following governmental agencies:

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of

Department of the Treasury

The Federal Reserve System (FRS)

Federal Deposit Insurance Corporation (FDIC)

Office of Comptroller of the Currency (OCC)

1 The Appraisal of Real Estate, 15th Edition, page 48 2 USPAP 2020-2021 ed., page 5 3 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472

Location and Address

The subject property is located along the west side of NW 102nd Avenue and along the east side of

NW 104th Avenue between NW 66th Street and NW 74th Street at approximately NW 70th Street in the City of Doral, Miami-Dade County, FL.

Address: Not yet assigned

Legal Description

FLA FRUIT LAND CO SUB PB 2-17

TRACT 21 LESS E250FT

Parcel 2

FLA FRUIT LAND CO SUB PB 2-17

E250FT OF TRACT 21 LESS E35FT TO

CO SUBJECT TO CANAL EASEMENT

Source: Miami-Dade County Property Appraiser

Owner of Record

Doral 10, LLC

PO Box 140520

Coral Gables, FL 33114

Source: Miami-Dade County Property Appraiser

History of the Subject Property

There have been no recorded sales of the subject property in the past five years. Based on a search of various real estate services, including the MLS, and CoStar.com, the subject property is not listed for sale as of the date of values herein. On January 10, 2019, the City of Doral presented a letter of intent for the proposed purchase of the subject property for $10,750,000, based on an appraisal dated

November 2, 2018, prepared by Slack, Johnston, Magenheimer. The letter of intent was signed by the property owner on January 14, 2019. On June 1, 2022, Lennar Homes, LLC presented a letter of intent to purchase Parcel 1 of the subject property for $7,500,000, intending to build a minimum of

58 homesites and agreeing to pay $129,310 for each approved homesite above 58. On October 18, 2023, Lennar Homes, LLC presented another letter of intent to purchase the entire subject property for $12,500,000, or $208,333.33 per approved homesite.

Source: Miami-Dade County Property Appraiser, MLS, and CoStar

Site Data

Zoning

Parcel 1 is zoned MF-1, Multi-Family Residential-1 District by the City of Doral, FL. The intent and purpose of the multifamily residential-1 district (MF-1) is to provide a townhouse zoning district in order to permit separate ownership of one-family dwelling units upon compliance with certain rules, regulations and standards, and to authorize the grouping of separately owned one-family dwelling units into a group of townhouses in such a manner as to make efficient, economical and aesthetically pleasing use of land, so restricted that the same will be continually well-maintained in order to preserve the health, welfare, safety, morals and convenience of the neighborhood and surrounding area. For a detailed listing of allowable uses and restrictions, refer to the zoning code of the City of

Doral, FL.

Parcel 2 is zoned CC, Corridor Commercial District by the City of Doral, FL. The corridor commercial district (CC) was established to provide for medium to high-intensity business uses on major corridors and prime commercial areas. For a detailed listing of allowable uses and restrictions, refer to the zoning code of the City of Doral, FL.

Flood Zone

The subject is within Flood Zone X and AH. Flood Zone X is areas of minimal flood hazard from the principal source of flood in the area and determined to be outside the 0.2 percent annual chance of a flood. This flood zone has non-mandatory, but available, purchase of flood insurance in participating communities. Flood Zone AH is areas subject to a one percent or greater annual chance of shallow flooding in any given year. Flooding is usually in the form of ponding with average depths between one and three feet. Base flood elevations are shown as derived from detailed hydraulic analyses. This flood zone requires mandatory purchase of flood insurance in participating communities. This identification was located on Flood Insurance Rate Map, Community Panel No. 12086C0278L, revised September 11, 2009. For insurance purposes, a surveyor should be contacted to verify the exact zone by a flood elevation certificate, as well as its impact on insurance.

Source: www.miamidade.gov and www.imapp.com

Real Estate Assessment and Taxes

The Miami-Dade County Property Appraiser reports two values; Assessed Value and Market (Just)

Value, also referred to as Just Value. Millage rates are multiplied times the respective values to calculate real estate taxes.

Nonresidential properties are subject to the Non-Homestead Cap which limits increases in the assessed value to 10% annually. Single family residences are subject to the Save Our Homes

Amendment which limits the increase for a home to 3% annually, or the Consumer Price Index (CPI), whichever is less. A change in ownership resets the base year of the cap to the following year. When this occurs, the assessed value will be equal to the market (just) value. There is no cap on the increase in market value.

To calculate real estate taxes, the school board millage rate is multiplied times the market (just) value.

In addition, the county, city and regional millage rate is multiplied times the assessed value. The results of each are added together to indicate the total real estate taxes.

Following is a summary of the reported market (just) and assessed values.

There is a 4% discount given for early (November) payment of taxes which would reduce the estimated real estate taxes.

Florida Statutes require assessments to be at 100% of market (just) value with an allowable adjustment (discount) to indicate net proceeds that would be derived from a sale. This adjustment varies dependent on the taxing authority with the Miami-Dade County Property Appraiser’s office typically having a discount in the range of 15% of the sales price.

Contamination Damages and Costs to Cure

The subject property is contaminated as of the date of value June 1, 2024. Per Phase I & Phase II

Environmental Site Assessments, the existence of hazardous materials is present at the property. In a letter, dated June 16, 2022, James T. Miller, P.E. of Hydrologic Associates U.S.A., Inc., (HAl) stated the following:

“As authorized, Hydrologic Associates U.S.A., Inc., (HAl) has completed the Site Assessment Report

Addendum (SARA) on the above referenced subject site as per the requirements of Miami-Dade County

Department of Regulatory and Economic Resources-Division of Environmental Resources

Management (DERM) in its review letter, dated September 3, 2019.

The results of the SARA indicate that the soil at the (0 - 2') and (2' - 4') intervals across the eastern portion of the subject site is impacted with Total Arsenic, Total Barium, and Benzo(a)Pyrene

Equivalent (BaPE) concentrations above the Direct Exposure Soil Cleanup Target Levels (SCTL5) as per Chapter 24-44 of the Code of Miami-Dade County.

It is HAl's opinion that the widespread impacts of these contaminants in the soil are the result of stockpiling, mixing and placement of the soil, concrete slurry, and asphalt millings mixtures that occurred on the eastern portion of the subject site during the construction of a nearby roadway.

If the excavation extends vertically to four feet below land surface (bls), HAT estimates that approximately 18,400 cubic yards of impacted material will be excavated and properly disposed of in the eastern portions of the subject site. If the excavation extends vertically to six feet bls, HAT estimates that approximately 9,200 cubic yards of additional impacted material will be excavated and properly disposed of in the eastern portions of the subject site.

In addition, the stockpiles (SP-1, SP-2A, SP-3, SP-4, SP-5, SP-6, SP-7 and SP-8) on the subject site will be properly removed and disposed. HAT estimates the volumes of these stockpiles are approximately 1,450 cubic yards of rock/soil, 10 cubic yards of concrete debris, 10 cubic yards of tires, 30 cubic yards of asphalt millings/soil, and 145 cubic yards of vegetated material/soil.

It should be noted a stockpile of limerock and soil (SP-2A/SP-2B) exists on the subject site and the adjacent property to the north. SP-2A is the portion of this stockpile that exists on the subject site. It is likely that during the removal of SP-2A some of the soil from the offsite portion of the stockpile (SP-

2B) will cave in onto SP-2A. HAl has anticipated an additional 200 cubic yard as a contingency if the cave in occurs. A site plan showing the extent of impacted material and the stockpiles is provided in

Attachment I.

The cost to properly remove/load/transport/dispose/backfill of the 0-4ft below land surface material

18,400 cu yards is estimated to be $2,900,000. If the excavation extends to 6ft bls the cost is estimated at $1,500,000. The cost to properly dispose of the stockpiles/solid waste material is estimated to be

$250,000. Please note that the impacted soil has not been delineated completely therefore, additional costs will apply.”

On the following page is a site plan (referenced above) of the subject property depicting the disturbed

(contaminated) areas:

The affected areas are approximately 106,796 square feet (1.45 acres) on the eastern portion of the site of which 55,586 square feet (1.28 acres) is on Parcel 1 and 51,210 square feet (1.18 acres) is on

Parcel 2.

As per Hydrologic Associates U.S.A., Inc., if the extent of the excavation of the impacted soil is four feet below land surface, then 496,235.96 cubic feet or 18,400, cubic yards (rounded) of impacted material will need to be excavated and properly disposed of. The cost to properly remove/load/transport/dispose/backfill the 0 to 4 feet below land surface material is estimated to be at $2,900,000. If the extent of the impacted soil is at six feet below land surface, 744,353.94 cubic feet or 27,600 cubic yards (rounded) of impacted material will be excavated and properly disposed of at estimated cost of $4,400,000. An additional $250,000 was quoted to properly dispose of the stockpile/sold waste material.

Neighborhood Overview

General Neighborhood Data

Location: Suburban

Built Up: 80% to 90%

Growth Rate: Increasing as of March 4, 2019 and

Stable as of June 1, 2024

Property Values: Increasing as of March 4, 2019 and

Stabilizing after significant increases as of June 1, 2024

Demand/Supply: In balance

Present Land Use: Commercial, residential, and vacant land

Change in Present Land Use: Likely

Predominant Use: Commercial, residential, and vacant land

Property Compatibility: Average

General Appearance of Properties: Average to good

Appeal to Market: Average

Adjacent Uses

East: Waste Management Facility

West: Single family residential

South: Single family residential

North: Townhomes

Linkages Distance Access

Public Transportation: Along NW 104th Avenue Excellent

Employment Centers: Three to five miles Average

Expressway Access: Two to three miles Average

Miami International Airport: Seven to ten miles Average

Exposure Time

Exposure time is the “1. the time a property remains on the market. 2. An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. (USPAP, 2020-2021 ed.)”1.

This analysis considers the exposure time at a market related price, such as the estimated market value herein. In estimating exposure time, sales are analyzed, real estate brokers and property owners are interviewed and statistics from published surveys are considered.

An exposure time for the subject is estimated at three to six months as of March 4, 2019 and six to twelve months as of June 1, 2024. This estimate considers that the property would have been properly marketed and priced. If the property were not to have been priced correctly, or marketed through proper channels, then it is likely that neither the estimated market value, nor the estimated exposure time, would have been achieved.

Typical Purchaser of the Subject

The subject is vacant land. A typical purchaser of the property would be a developer or investor to construct on the site.

1 The Dictionary of Real Estate Appraisal, 7th Edition, page 68

Highest and Best Use

Highest and best use is defined as follows:

“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” 5F

In analyzing the highest and best use, the four criteria are Answered in order:

1. Legal Permissibility. What uses are legally permitted on the subject site with respect to zoning ordinances and deed restriction.

2. Physical Possibility. What uses of those legally allowed are physically possible on the subject site?

3. Financial Feasibility. Of those uses determined to be physically possible and legally permissible, which ones will produce a positive return?

4. Maximum Productivity. Of those that are feasible, legally permissible, and physically possible, which will produce the highest rate of return or value?

As Vacant

Parcel 1 is zoned MF-1, Multi-Family Residential-1 District and Parcel 2 is zoned CC, Corridor

Commercial District by the City of Doral, FL.

As of March 4, 2019, the market was strong enough and values were high enough to feasibly construct on Parcel 1. Therefore, the highest and best use as though vacant is to construct townhouses to the highest density possible. As of March 4, 2019, Parcel 2 didn’t have street frontage as NW 102nd

Avenue had yet to be constructed. Therefore, the highest and best use as though vacant was to hold

Parcel 2 for future development as permitted by zoning. This would likely be an office building or a commercial building.

As of June 1, 2024, the highest and best use as though vacant is to remediate the site due to contamination and construct townhomes on Parcel 1 and an office building or a commercial building on Parcel 2.

As Improved

The subject property is vacant land and therefore an analysis of the highest and best use as improved is not applicable.

1 Source: The Dictionary of Real Estate Appraisal, 7th Edition, Page 88

Appraisal Process

An analysis of three separate approaches to value; sales comparison approach, cost approach, and income capitalization approach, will be considered to estimate the value of the subject property.

Although these three approaches to value are considered within every appraisal report, they may not be applicable to every property being appraised.

The cost approach is based on the principle of substitution which states that an informed purchaser would not pay more for a property than the cost of reproducing a property with the same utility. The cost approach can often yield reliable estimates of value for new construction. This approach entails estimating the cost of producing the improvements, deducting an estimate of depreciation, then adding the value of the site as if vacant. To this value an entrepreneurial incentive is added to arrive at the estimated value by the cost approach.

The income capitalization approach is based on the concept that value is created by the expectations of future benefits and higher earnings should result in higher values. Income producing real estate is purchased for the right to receive future income. The income capitalization approach consists of methods to analyze a property's capacity to generate income, and a reversion, and convert these monetary benefits into an estimate of value.

The sales comparison approach is based on the principle of substitution which suggests that, within competitive markets, similar products will realize similar prices. Inherent in this concept is the premise that a purchaser would not pay more for a property than the cost to acquire another property with the same amenities and utility.

The final steps in the appraisal process are review and reconciliation of the data and conclusions. In reaching a conclusion of value, the entire process involving the approaches that were estimated must be reviewed for accuracy, completeness and consistency. After analysis, evaluation and reconciliation of the indications a value is estimated. The essence of this final reconciliation should be a defensible and rational conclusion of value.

The only applicable approach used in this appraisal is the sales comparison approach. The income capitalization approach and the cost approach are not applicable to the valuation of the subject property.

Cost Approach Vacant Land, Doral, FL 33178

Cost Approach

The basis of the cost approach is the principle of substitution. This principle suggests that a prudent buyer would not pay more for a property than the cost to acquire a similar site and construct comparable improvements.

Following are the procedures for preparing the cost approach.

1. Estimate the value of the land as though vacant and available to be developed to its highest and best use.

2. Determine which cost basis is most applicable to the assignment: reproduction cost or replacement cost.

3. Estimate the direct (hard) and indirect (soft) costs of the improvements as of the effective appraisal date.

4. Estimate an appropriate entrepreneurial profit or incentive from analysis of the market.

5. Add estimated direct costs, indirect costs, and entrepreneurial incentive to arrive at the total cost of the improvements.

6. Estimate the amount of depreciation in the improvements and, if necessary, allocate it among the three major categories: physical deterioration, functional obsolescence, and external obsolescence.

7. Deduct the estimated depreciation from the total cost of the improvements to derive an estimate of their depreciated cost.

8. Estimate the contributory value of any site improvements that have not already been considered. (Site improvements are often appraised at their contributory value - i.e., directly on a depreciated-cost basis - but may be included in the overall cost calculated in Step 3 and depreciated, if necessary).

9. Add land value to the total depreciated cost of all the improvements to develop an indication of the market value of the fee simple interest in the real property.

10. If appropriate, adjust for the property interest being appraised to derive the indicted value of the specified interest in the property.

11. If the property will experience net income shortfalls during a lease-up period, then calculate a rent-up adjustment to account for the cost of leasing (distinct from leasing commissions).

12. Adjust for personal property (e.g., furniture, fixtures, and equipment) or intangible assets that are included in the appraisal. 6F

As the subject property is vacant land, the cost approach is not applicable.

1 The Appraisal of Real Estate, 15th Edition, 2020, Pages 532 and 533

Income Capitalization Approach Vacant Land, Doral, FL 33178

Income Capitalization Approach

“Income producing real estate is typically purchased as an investment, and from an investor’s point of view earning power is the critical element affecting property value. A basic investment premise holds that the higher the earnings, the higher value, provided the risk remains constant. An investor purchasing income-producing real estate is essentially trading present dollars for the expectation of receiving future dollars. The income capitalization approach to value consists of methods, techniques, and mathematical procedures that an appraiser uses to analyze a property’s capacity to generate benefits (i.e., usually the monetary benefits of periodic income and reversion from a future sale) and convert these benefits into an indication of present value”.1

“In the income capitalization approach, an appraiser analyzes a property’s capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to the approach”.8F

As the subject property is vacant land, and there are sufficient land sales for comparison, the income capitalization is not applicable.

1 The Appraisal of Real Estate, 15th Edition, 2020, Page 412 2 Ibid., 412

Sales Comparison Approach – Scenario 1 Vacant Land, Doral, FL 33178

Sales Comparison Approach – Scenario 1

The sales comparison approach is based on the principle of substitution. The principle of substitution holds that the value of property tends to be set by the cost of acquiring a substitute or alternative property of similar utility and desirability within a reasonable amount of time. 9F

In the Sales Comparison Approach, an opinion of market value is developed by comparing properties to the subject property that have recently sold, are listed for sale, or are under contract (i.e., for which purchase offers and a deposit have been recently submitted). A major premise of the sales comparison approach is that an opinion of the market value of a property can be supported by studying the market’s reaction to comparable and competitive properties.

Qualitative analysis is a relative comparison process without mathematics. Sales are ranked based upon their desirability as compared to the subject. Comparisons can be expressed as plus or minus as opposed to dollar or percentage adjustments.

Quantitative analysis is the process of applying mathematical techniques. Sales are adjusted to the subject property on a dollar or a percentage basis. One method of supporting adjustments is through paired data analysis. This method analyzes two sales and attributes the difference in their sales prices to the characteristic which is different. This analysis requires an abundance of sales data which is frequently not available.

Qualitative analysis is used herein to estimate a value by the sales comparison approach.

Characteristics of the sales considered superior to the subject are given a minus (-) adjustment. Those characteristics of the sales considered inferior to the subject are given a plus (+) adjustment. Each sale is given an overall adjustment indicating how it compares to the subject.

On the following page is a grid of the sales used for comparison to the subject property.

1 The Appraisal of Real Estate 15th Edition, 2020, page 352

Vacant Land Sales Grid – Parcel 1

As of June 1, 2024

Following is a grid of the comparable sale properties used for comparison to the subject property.

Sale

Date Location Zoning Sale Price

Size

Sq.Ft.

Sale

Price/

Sq.Ft.

March

South side of SW 72nd Street at

SW 74th Avenue

Miami

EU-1 $13,250,000 566,280 $23

July

590 NW 159th Street

Miami

RU-4 $8,285,000 307,476 $27

May

8290 SW 120th Street

Miami

RU-1 $21,500,000 433,422 $50

January

East side of SW 127th Avenue just north of SW 152nd Street

Miami

RU-4L $10,546,100 539,928 $20

November

27077 South Federal Highway

Miami

LCCUC $9,000,000 205,889 $44

Subj.

Parcel 1

East side of NW 104th Avenue at approximately NW 70th Street

(Folio: 35-3017-001-0210)

Doral

MF-1 341,630

On the following page is a sales map, indicating the location of the sales and the subject property.

Vacant Land Sales Map

Sale 1

Property Description

Square Feet: 566,280

Acres: 13.00

Topography: Grade level

Shape: Irregular

Zoning: EU-1, Single-Family One Acre Estate District by the City of

Miami-Dade County, FL

Recording Information

Sale Price: $13,250,000

Sale Date: March 12, 2023

ORB/Page: 33624/4305

Grantor: The University Baptist Church of Coral Gables, Inc.

Grantee: CC Homes at Sunset, LLC

Financing: All cash to seller

Prior Sale: None in the past five years

Units of Comparison

Price/Sq.Ft.: $23.40

Price/Acre: $1,019,231

Price/Unit: $509,615

Comments

This is the sale of vacant land located along the south side of SW 72nd Street between SW 72nd Court and

SW 75th Avenue in unincorporated Miami-Dade County, FL. The property is approved to develop 26 single-family homes while preserving 2-acres of land, and share costs for infrastructure and roadways with the adjacent land owners, who are building a new church.

Property Location

South side of SW 72nd Street at SW

73rd Court

Uninc. Miami-Dade, FL 33143

Miami-Dade County

Property Identification

Folio: 30-4035-052-0010

Property Type

Sale 2

Square Feet: 307,476

Acres: 7.06

Topography: Grade level

Shape: Rectangular

Zoning: RU-4, High Density Apartment House District by Miami-Dade

County, FL

Recording Information

Sale Price: $8,285,000

Sale Date: July 1, 2022

ORB/Page: 33275/2154

Grantor: Evangel Church International, Inc.

Grantee: Golden Glades Owner, LLC

Financing: All cash to seller

Prior Sale: None in the past five years

Units of Comparison

Price/Sq.Ft.: $26.95

Price/Acre: $1,173,729

Price/Unit: $35,106

Comments

This is the sale of a vacant parcel located at the southeast corner of NW 159th Street and…