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HomeMy WebLinkAboutHandouts_Regular_09/09/2010 (3) AN APPRAISAL OF THREE PARCELS OF VACANT LAND LOCATED SOUTH OF TEQUESTA DRIVE AND NORTH OF BRIDGE ROAD, BETWEEN U.S. HIGHWAY ONE AND OLD DIXIE HIGHWAY, IN TEQUESTA, FLORIDA FILE NUMBER: 10-63494 PREPARED FOR JMZ TEQUESTA PROPERTIES, INC. AS OF JULY 8, 2010 BY MICHAEL R. SLADE, MAI, SRA, CRE CALLAWAY & PRICE, INC. G��'��t� � c� � �t �,�►�►� ��' �� Callaway & Price, Inc. Real Estate Appraisers And Consultants www, ca//a wa yand price. com Licensed Rea/ Estate Brokers Please respond to West Palm Beach ofFce WEST PALM BEACH E-Mail: mrsCa�cownb.com 1639 Forum Place Suite 5 West Palm Beach, FL 33401 )uly 21, 2010 Phone (561)686-0333 Fax (561)686-3705 MichaelR. S/ade, MAI, SRA, CRE Mr. John Zuccarelli St.Cert.Gen.REA RZ116 ]MZ Tequesta Properties, Inc. Daniel P. Hrabko, Mar 209 Tequesta Drive St.Cert.Gen.REA RZ48 Tequesta, Florida 33469 Stephen D. Shaw, MAI St.Cert.Gen.REA RZ1192 Re: Tequesta Village Center FORT PIERCE/STUART Dear Mr. Zuccarelli 500 South U.S. Highway 1 Suite 107 Fort Pierce, FL 34950 We have made an investigation and analysis of three parcels Of Phone (772)464-8607 vacant land located south of Tequesta Drive and north of Bridge FaX (772)461-0809 Road, between U.S. Highway One and Old Dixie Highway, in the stua� Village of Tequesta, Florida. The Subject Property will be further Phone (772)287-3330 Fax (772)461-0809 described both narratively and legally within the following Harry D. G�ay, MAI, SRA Summary Appraisal Report. The purpose of this investigation and , St.Cert.Gen.REA RZ662 analysis is to provide our opinion of the Hypothetical Market Value i Stephen G. Neill, Jr., MAZ of the Fee Simple Estate of the Subject Property as of July 8, St. Cert. Gen. REA RZ2480 2 � 1 �. I MELBOURNEJINDIALANTIC This report hdS been prepared fOC OUI" client �MZ Tequesta 114 6th Avenue, Properties, Inc. The intended use is for internal decision making. Suite 3 The scope of work performed is specific to the needs of the Indialantic, FL 32903 Phone (321)726-0970 intended user and the intended use. No other use is intended, Fax (321)726-0384 and the scope of work may not be appropriate for other uses. Curtis L. Phillips, MAI St.Cert.Gen.REA RZ2085 The scope of work performed included a complete analysis of the Subject Property. A detailed scope of work description can be BOCA RATON found in the body of this report. Phone (561)998-8088 Fax (561)686-3705 Daniel P. Hrabko, MAI Parcels 1 and 3 are currently improved with "Paradise Park", a St.Cert.Gen.REA RZ48 community park established and built by the Village of Tequesta. Parcel 2 is improved and used as an asphalt-paved parking lot, FOUNDERS with the Village of Tequesta also making this improvement. Joe R. Price, MAI, SRA St. Cert. Gen. REA RZ555 ! Robert J. Callaway, MAI, SRA �� � � I Mr. John Zuccarelli JMZ Tequesta Properties, Inc. July 21, 2010 Page Two All three parcels are currently leased by the Village of Tequesta, for $1.00 per year, to be used for passive parks and recreation purposes. According to parties to the lease, it is likely that the lease could be waived should the owners find a buyer for the property as set forth in Section 8.03 of the lease, as discussed in more detail later in this report. This is because the Village of Tequesta has the right of first refusal to purchase the property, or the portion thereof that is offered for sale, and has expressed their strong interest in acquiring the Subject properties. Essentially, the lease could be declared null and void by the Village of Tequesta (the Lessee) upon their purchase of the Subject parcels. Further, our client has specified the purpose and intended use of the appraisal is to set a market value for the property as if unencumbered, to be used in negotiating a sales price with the Village of Tequesta. For these reasons, the lease has not been considered herein. Therefore, because we are ignoring the existing lease on this land as of the date of appraisal, this part of the valuation is based upon a Hypothetical Condition. The Dictionarv of Real Estate Appraisal, Fifth Edition 2010, by the Appraisal Institute, defines hypothetical condition on page 141 as follows: "That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions 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 an analysis. A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for the purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis, and; • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. Mr. John Zuccarelli JMZ Tequesta Properties, Inc. July 21, 2010 Page Three Therefore, based upon the scope of the assignment, our investigation and analysis of the information contained within this report, as well as our general knowledge of real estate valuation procedures and market conditions, it is our opinion that the Hypothetical Market Values of the three individual parcels, and the "bulk value if all 3 parcels were sold to one buyer", by the Sales Comparison Approach as of July 8, 2010 were: Individual Parcel Values Sales Comparison Parcel No. Sq• Ft• Value Per Sa. Ft. Aqqroach (Rounded) 1 51,988 $15.50 $810,000 2 42,770 $15.50 $660,000 3 44,534 $15.50 $690,000 Bulk Value for all 3 Parcels Sales Comparison Parcel No. Sq• Ft• Value Per Sq. Ft. A�proach All3 139,292 $14.00 $1,950,088 combined 3.20 ac. Rounded to, $1,950,000 A description of the property appraised, together with an explanation of the valuation procedures utilized, is contained in the body of the attached report. For your convenience, an Executive Summary follows this letter. Your attention is directed to the Limiting Conditions (especially Nos. 1i-14) and underlying assumptions upon which the value conclusions are contingent. Respectfully submitted, CALLAWAY & PRICE, INC. 1�j, /�? .�C��r.�. Michael R. Slade, MAI, SRA, CRE St.Cert.Gen.REA RZ116 �9'7 � � r� �� D ��_ Niccola L. Ellefson, MAI St.Cert.Gen.REA RZ2096 MRS/NLE/KPS/10-63494 Attachments r � Executive Summary PROPERTY TYPE : Vacant commercial land. LOCATION : South of Tequesta Drive and north of Bridge Road, between U.S. Highway One and Old Dixie Highway, in the Village of Tequesta, Florida. DATE OF VALUATION : July 8, 2010. DATE OF INSPECTION : ]uly 8, 2010. PROPERTY DESCRIPTION . Irregular shaped parcels containing the following land areas: Land Area Parcel No. Acres Sq• ft. Frontaae Description 1 1.19 51,988 203' Bridge Road Community Park 2 0.98 42,770 231' Tequesta Drive Parking Lot 3 1.02 44,534 203' Bridge Road "Paradise Park" Total 3.20 139,292 BUILDING . None included (see discussion of improvements). ZONING : MU, Mixed Use District, by the Village of Tequesta, Florida. LAND USE PLAN . Commercial, by the Village of Tequesta, Florida. HIGHEST AND BEST USE : Future commercial development. �� Tab/e of Contents Page No. CERTIFICATION............................................................................................. 1 LIMITINGCONDITIONS .................................................................................. 3 DEFINITION OF THE APPRAISAL PROBLEM ...................................................... 11 Purpose, Date of Value, and Interest Appraised ............................................ 11 Intended Use and User of Appraisal ............................................................. 11 LegalDescription ...................................................................................... 11 MarketValue ........................................................................................... 11 Fee Simple Estate ..................................................................................... 12 Hypothetical Conditions ............................................................................. 12 Extraordinary Assumptions ......................................................................... 12 SCOPEOF WORK ......................................................................................... 13 NEIGHBORHOOD ANALYSIS .......................................................................... 15 Preface................................................... ................................................. 15 PROPERTYDATA .......................................................................................... 17 Location ................................................................................................... 17 Zoning ....................................... ............................................................ .. 17 LandUse Plan ........................................................................................... 18 Concurrency............................................................................................. 18 Easements and Deed Restrictions ................................................................ 18 Site Size, Shape and Access ....................................................................... 19 To pog ra p hy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FloodHazard Zone .................................................................................... 21 Assessed Value and Taxes .......................................................................... 22 PropertyHistory ........................................................................................ 22 HIGHEST AND BEST USE .............................................................................. 23 Conclusion ................................. ................... ...... 23 .. ................................... LAND VALUE ANALYSIS ................................................................................ 25 Discussion of Vacant Land Sales ................................................................. 25 Property Rights Conveyed .......................................................................... 38 Conclusion - Land Value Analysis ................................................................ 40 ADDENDA Letter of Engagement Legal Description Qualifications: Michael R. Slade, MAI, SRA, CRE Niccola L. Ellefson, MAI r Certification CERTIFICATION 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, 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 no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The analyses, opinions, and conclusion were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) and FIRREA. 8. Michael R. Slade and Niccola L. Ellefson have made a personal inspection of the property that is the subject of this report. 9. No one provided significant real property appraisal assistance to the persons signing this certification. 10. The use of this report is subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board. 11. The reported analyses, opinions and conclusion were developed, and this report was prepared, in conformity with the requirements of the Appraisal Institute's Code of Professional Ethics and Standards of Professional Appraisal Practice, which include the Uniform Standards of Professional Appraisal Practice. 1 c Certification 12. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 13. We have not provided any services regarding this property within the last three years. 14. I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 15. As of the date of this report, Michael R. Slade, MAI, SRA, and Niccola L. Ellefson, MAI have completed the requirements under the continuing education program of the Appraisal Institute. ���;�� � .���G�Z� Michael R. Slade, MAI, SRA, CRE St.Cert.Gen.REA RZ116 . , � � ••------ Niccola L. Ellefson, MAI St.Cert.Gen.REA RZ2096 2 �� Limiting Conditions LIMITING CONDITIONS 1. Unless otherwise stated, the value appearing in this appraisal represents the opinion of the Market Value or the Value Defined AS OF THE DATE SPECIFIED. Market Value of real estate is affected by national and local economic conditions and consequently will vary with future changes in such conditions. 2. The value estimated in this appraisal report is gross, without consideration given to any encumbrance, restriction or question of title, unless specifically defined. 3. This appraisal report covers only the property described and any values or rates utilized are not to be construed as applicable to any other property, however similar the properties might be. 4. It is assumed that the title to the premises is good; that the legal description is correct; that the improvements are entirely and correctly located on the property described and that there are no encroachments on this property, but no investigation or survey has been made. 5. This appraisal expresses our opinion, and employment to make this appraisal was in no way contingent upon the reporting of predetermined value or conclusion. 6. No responsibility is assumed for matters legal in nature, nor is any opinion of title rendered. In the performance of our investigation and analysis leading to the conclusions reached herein, the statements of others were relied on. No liability is assumed for the correctness of these statements. 7. Neither all nor any part of the contents of this report (especially any conclusions, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute or any of its designations) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior written consent and approval. 8. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The appraiser assumes no responsibility for such conditions or the engineering which might be required to discover these factors. 3 �� Limiting Conditions 9. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation stachybotrys chartarum (mold), asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, was not called to the attention of, nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such proximity thereto that would cause a loss in value. We are unaware of very wet conditions that may have existed for days or weeks which are required to grow mold. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. 10. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraisers have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with 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 effect upon the value of the property. Since the appraisers have no direct evidence relating to this issue, possible noncompliance with the requirements of ADA in estimating the value of the property has not been considered. 11. Our opinion of value was based on the assumption of competent marketing and management regarding the Subject Property. If there is no competent marketing and management, then the value contained herein may not apply. 12. All three parcels are currently leased by the Village of Tequesta, for $1.00 per year, to be used for passive parks and recreation purposes. According to parties to the lease, it is likely that the lease could be waived should the owners find a buyer for the property as set forth in Section 8.03 of the lease, as discussed in more detail later in this report. This is because the Village of Tequesta has the right of first refusal to purchase the property, or the portion thereof that is offered for sale, and has expressed their strong interest in acquiring the Subject properties. Essentially, the lease could be declared null and void by the Village of Tequesta (the Lessee) upon their purchase of the Subject parcels. Further, our client has specified the purpose and intended use of the appraisal is to set a market value for the property as if unencumbered, to be used in negotiating a sales price with the Village of 4 � Limiting Conditions Tequesta. For these reasons, we have valued the property under a Hypothetical Condition where the lease is not considered herein. 13. Parcels 1 and 3 are currently improved with ��Paradise Park", a community park established and built by the Village of Tequesta. Parcel 2 is improved and used as an asphalt-paved parking lot, with the Village of Tequesta also making this improvement. However, at the request of the client, we have valued the Subject Property as vacant commercial land without consideration to the existing site improvements. 5 r a Subject Photos � 4 � �, ,� � '�:� "�` . . � ��� x � r � � � � : . � "�'� . . ..^ J . _ ,.. . r ., : _ . ; "� ^ � � 3k; i ' z ± r .r�.� z " ' � ., "' 3- . , .�, .. � � � `�� � P .�.. � � _ !P T _' � • �� ��'� �,7t i. �: �' �'�'i ��" ' � r � ,��� � d - o _ . � r 4- �,:�, ��, .._ . . ... , �_� LI��" ...- . . _`_.. � +Y+y�a.+�u .r.W.-�, _ � ��Y�,. .., � �3fi' � �'r .. � it � ?�;_�m^ ' '�`"� �„ �, � :- _. <�.. ;�,,..._ ., .w' ,a - �, , t; _ - ��., '� �' ' VIEW LOOKING WEST ALONG TEQUESTA DRIVE (SP IS ON LEFT) � r"> � �� ���� t a t `` .. � .. a �* } � � � � �' - ,�..s � ' , I� �r �; ....;'�,."� ���`�. . / i. r , -�� . .. -"'- ..�.s ,�._ �` K ��.rv y ; � � � � ' �� ,�_ .+.���''��� ns " �Y �' _ ' � 7� '� - .� t„ ;�' � � . '{�- 5tW',.� s _ � . -�* .-; �'� ° � . � e - - � _ � � � �,, �,�.{ � � � U ; t � LL� r� � �.y, ,��I � :�i r ��y �� � I` I �I'I�I N i fi i nn�rnir Fnc ni nnir, RRrn�F Rnnn rc� rc nni I FFTI r? Subject Photos a: ���a� 7 �.� ` �'�'+7� .:�. :t� t ��°�� £ �x a'_ .�'°�`.� : . y, '' ; _ .. , � �_ wa �M�, �� " b�,.� a� F � * � �� � � � � - ; � q �, � a 3 �. ��.. � ' �!� w `'.� — ' - -: �.. _ , .:� . r . .. - __� � `��� �i'�.� ,�k� "��,s�,' ..,� _�' _.[� , g �� �' � . �.. ,��; � •� ra ?_'�`, ; j� �., <e �k i�� —..r�' � � �"'-� r� "_,..E ,,� � � ° �'-• ,t:°���` '"�t"''� � - - � r.:�,,;, k ' . . . . . . . Y � � ��1 -�r. _ , i r� '���' �r� �'.,' . . . � . . . . .. �� - � ���� s � �."� . . _ . , ._ ht'. �' s - X �'#'�a�'t= . - . .. . . .._.w.. s.� ��.__ -Y�.,.y�: LOOKING SOUTH AT THE MAIN STREET ENTRANCE (OFF BRIDGE ROAD) PROVIDES ENTRY FROM THE SOUTH SIDE OF THE SUBJECT PROPERTY � . , , .;t;,, ,� _ '� � i �_ `.�� �e1.p. �� ^ � -� ,r .�,. h y +Rt � � ���: � �yy � � � � '� �"�.� `�__JleGi �'�. �� w�sa .F . .,'�R� , �rE_ ��`' ., . �� '� ���'f.' .. ....�� . . . a`�' ._. . 4� - IG�� �..� . �� � ! � �<,:.. . - . . . . .. . - ��a , �' ; . � +'�. _ sq � x � . . . � � 'B.P t3 . " �.� "s i. �' � ;�3 � � ��� ���� ���_�� � ��- �� � : �: � �„�+� � � � � ��£� �r ' � y�9 z;�- r,�`�^� ; , °. �.f � 'G��.. �,�s''`"" i t �,.� �� ::: t � �, r< ' � . s, � ' �'t v� �. � -� r i,.,,ri � - ' Y � Y.:: '� � �� �'�� . . . PARCEL 1 7 r a Subject Photos �,. _� �` � �F" � ` � � ���'� <�.. �� � � ;�;= q ¢ : � �':�� �� � `r �� =„�:, �, � 9 . � � � � r.� , _. .c;d , : ,.f •. . ' { " , e ° � � � ,\ r � �. �.� k� - :� �' 1 � �'���� � :f� �. 4 �" � . � �" , ° `�"'� �ks e�� �'�.:"s� �� ll �_ - . � .r.. t . . . � , ,. ' 4 . ! ,c . � q f , � W _ f� r1l � _ . � £�'�� � .. �bi ° �� ^ �� �. ;-' ' ,^,: k�.'' '• _ � ��� L � 7�xs SOUTH SIDE OF PARCEL 1 ALONG BRIDGE ROAD �: r�- � 8 ���,���:: ,l S�� 4 � �� . . � . . ���'�v ✓r . . .. .. . . . 4 h{ � ,�" , �� � . . . . . �9 •,'��' � ■ � YY�Y� �G { � ' . �� �� � .. f, . �� v -nFtl :: S� ��... "' .. . � �1 � . .,�� sa� �jru , .�,. �,� v ..��iti� f'' � V R�� �� _ .t .. , ..,. . . � . . . . �, . . �;� . - . - . .._... . z a � z.+�� � - - �". .,,� . `t..':�: .� ., � �:�-ti � r � � . �i �,a..,� ; �l ��;:iz ..�` t.�,Y" � . E. PARCEL 2 (PARKING LOT) 8 r � Subject Photos .� - i�i I �` � .� f � " • � a.�� f A � ��. ',� > 1. �1 # � ,*� "^"' ;.T �! Z �. '°�' ' � �.aF y �� ° �.��y3 „ ''s.. ���. � ' � � ;�. . - M .. r�-' �.p�. .. . : .� r -."Yr � S". � . :,�F1, � • � '^" . � � .w� � ' �rAr _ . F :.� � . - * �"�r, � � . ,. �!+� . , <� � � � � . , �, �. j�' , ; z �s�,� r�� �`�� k'�� � � — � '�'4i`g ; � r � .�}• _ y �- #� -�R � � . �ti� , ,:�;: ;.;�;� ;, . � :--... . :` .� .. _ . _._ ,Yk� • ._. „ . .. . r - . -. . � ,��.�.•,__. s«.:�� �' ., _ :.. �.ca*.. . _.. . _ ., . � _� - ,._: . . .. . ._-.' ' � � ... .. _ ;-. .: ... .. . ' .-.-_ , _..._ _ �c:4. _a.:sl'i�...x•,.-� � � . � � . . � � . . � ' � � �,�',.,�-y Y � NORTH SIDE OF PARCEL 2 ALONG TEQUESTA DRIVE � ���;�: ._ �_ � � .�. t �� - �.� :� $... Y . �"p.- , � I,C 'fl � ` � ',f •.� �'�'�,.��- . : � o �. �� � � r� . � � i,��' �' -- ° � _ — - ,.�, ,�,+• ; r �' � � * � x�. ; ' � =�� }�—'� ..,� - � �r * �a „ . . � �._ , -.. _ - " r ""�� y`7' � ,'^ �� �� � � . _. �r �;. k i �+'��h�-�.�� 7�, � � �i! Y J}'F �. PARCEL 3 9 �� Subject Photos :� � . �' � � � _ � � '� .��- � -�'� ���, � � _ ;,,.�� �^ . � , - a . _ � � - _. x _ ; � . . � , � � ..�. _ I ' . _ , .� � - �..��,-� .,� ��-,°� �- . f,_ v F ,.,. �, �, ��:.� : �i.� _- � - �..r , °3:�' "> .r ' �r ' _c.� �;., : t "'�"�,,,, �; � } J' ,. '*`� � J : .�. r �� ,. ., . - ..'^�..� . - .. � . -.. a;3„F MAIN STREET ROUND-A-BOUT PROVIDING INTERIOR ACCESS TO ALL PARCELS - r -- >a ' � ��yt _, _ _ .. . ,�, , � . � r *�. ��,. � , �` � , � :� � y �'� '�i � ^ �,� ��, � �� , � � � � �� � �� � � � ' k�� ,r� � �� � ,� g �!.�, Y� � , Y` ., " .� . . ..(� . . �'�"},1g�� '� �` ,� " ' '41". ' � . � �' . Z � K#` . �.. s- . � S '�� r � �x � � � ,t+�� � � � , l�� s � � �,� �� , . . � �u N� ; '. ..: � . _ .. � . . . � , � _ . . � -ier- ::. ., .,��..._. ...V. , . .. '. � .t •.x. t �' � .. ,� :. . ..., f � " }i :#3: �I F �, � ,.- .�� . . .: : r . .. ..§I{ � � �: _ . ` ' � , n'� „ � �� � ' . . � . � ;P ��: ..,:.1 :y yr*.�� �' �:'f . v. �, �;�'. ��'" -. � � � r, � ei� :+�;. � � �i� .4� . � y � 1 � � � 1 X �. �;� ,�"€ � '}� �� � ~ r 3 ��' � ,��� � � � � � a �� : �� � -�� �� -� �� .�� � �� �� � � .� � , _ � > r,.,•....rr, � rY�:i.raLr.l AERIAL PHOTOGRAPH 10 r P Neighborhood Analysis NEIGHBORHOOD ANALYSIS Preface The relationship of the Subject Property with surrounding properties forms the basis of neighborhood analysis. The Appraisal of Real Estate 13th Edition 2008, states: Social, economic, governmental, and environmental forces influence property values in the vicinity of a subject property. As a result, they affect the value of that property. Although physical boundaries may be drawn, the most important boundaries are those that identify factors influencing property values. The area of influence, commonly called a neighborhood, can be defined as a group of complementary land uses. Neighborhood Map Jonathan Dickinson State Perk V ; o B�'^9 A t /antic Way FIe1 Ode Rotics AlA _•, 9 . y Lyle Rd ',.`_ Recreation Dept sv T I ... NieFk Deirv.Bd..................................... .. .. ............................... K 5 s m � Jr � title[ Rorb -k Rd ib cert� St Al Ir>d�arwn e m l 4th S1 118 �'!B V c ° a n "a go a ° Vtst n � ° ;ell d� E P Ott �' '1. — YY own RdW Indi E Tm, _ —L�- 786t= -:. -.__ 6 - .;- o ". J E.- '33Et =n_ a :A1R Rlverbentl Park 87A m ... q p Park 5th St Carlin C M 02a� M`c 9,,h �atlbru rs. A ri Ms reserved. -e y ° -ey Pty' R TW y PEMIB Dr , even '� The major north /south arteries are Federal Highway (U.S. Highway 1), Old Dixie Highway, and State Road A -1 -A. U.S. Highway 1 is a four lane, divided highway through the Subject neighborhood, connecting Stuart with northern Palm Beach County. U.S. Highway 1 is one of the major north /south arteries on the east coast of Florida, as well as the eastern coast of the United States. State Road A -1 -A provides access to properties situated on the Jupiter Inlet and the Atlantic Ocean in the eastern and southern portion of the neighborhood. Dixie Highway is a two -lane, roadway that parallels U.S. Highway 1 through the Subject neighborhood. Dixie Highway provides local residents with an excellent alternative to U.S. Highway 1. County Line Road and Tequesta Drive provide east /west travel, which is restricted mostly to local streets within the Subject neighborhood. There is one major 15 r Neighborhood Analysis east /west artery in the Subject neighborhood. Indiantown Road (State Road 706) is a six -lane primary artery connecting the coastal areas of southeastern Martin County and northeastern Palm Beach County with Interstate 95, to the west. Indiantown Road also has an Interchange and provides access to the Florida Turnpike. Commercial development in the Subject neighborhood is located primarily along U.S. Highway 1 and is very diverse. Commercial uses include several larger multi - tenant shopping centers, free - standing drug stores, older restaurants, gas stations, retail stores, banks, churches, nursing home facilities, and mobile home parks. The U.S. Post Office is located on U.S. Highway 1, and there are two fire stations within the neighborhood. Residential development within the Subject Neighborhood is also very diverse. To the north and south are private, up- scale, gated golf course communities with home prices ranging from $300,000 to in excess of $1,000,000. On the other end of the spectrum, there are a number of mobile home parks scattered along U.S. Highway 1, including the Lakeside Village, Hobe Village, Woodbridge, Hobe Sound and others. Not all are rental facilities as the pads have been sold to individual owners. In addition, there are a number of older, low end residential subdivisions with home values starting in the $40,000 range. The interior areas of the neighborhood offer both single - family and multi - family housing, represented by a variety of ages and price ranges. Two newer, quality residential planned developments of Tequesta Oaks and Tequesta Trace are in the neighborhood. Residential development along the Intracoastal region of the neighborhood offers a variety of home values starting from under $100,000 and exceeding $1,000,000. Immediately east of the Subject Neighborhood is Jupiter Island, an exclusive, oceanfront community. Jupiter Island is the home of many nationally renowned, wealthy families. The U.S. Highway One commercial area directly serves the commercial needs of many of the Jupiter Island residents. Conclusion The Subject neighborhood is considered to be a desirable area of northern Palm Beach County due to the quality development, combined with "small town" atmosphere, which currently exists. Interest in the neighborhood is further enhanced by the continued growth pressures being felt from Palm Beach County to the south and from Martin County to the north. The current limiting factor is the extremely slow real estate market and overall poor national economy. We expect that new development will be on hold until the real estate market improves. 16 � Property Data PROPERTY DATA Location The Subject Property is located south of Tequesta Drive and north of Bridge Road, between Old Dixie Highway and U.S. Highway 1, in the Village of Tequesta, Florida 33477. The Subject's location is indicated on the map below. Location Map �; yRobert:St aL , d Wingo =St m Q,4 Russell St Q4S1e�1171 Tj.� " Prno , N R Ulfage Ellvd It 5. cage t9 =si. .. Puri Shay PI Y P ° s`3 a, SUB�CT V Oov @r Rd t� in Taquesta::Dr '1Oaw+Re .':. ` -- ,A7A: Beacon St m a Bridge Ad tJ2 0014r Ra Church Rd H .. Franklin ..:Rd.... O• d' ': a Coconut Ln 707 •'.. rA Windsor Rd W Windsor :Rd E Beverly Rd W ty � tw or od Rd ce ¢? Jupitw c E o°€ e��. vev L 6 Wgilorks s ie 'A d Ms reserved. joker Zoning The Subject Property is zoned MU, Multiple Use District, by the Village of Tequesta. The purpose and intent of the MU mixed -use district is to establish a village center which creates a vital, diverse core for the principles which utilize mixed -use development concepts and which permit a combination of usually separated uses within a unified development district area. Commercial uses are intended to be limited to specialty small scale retail sales and services, business services and professional services primarily designed to serve residential neighborhoods of the village. Residential uses are intended to encourage the accomplishment of a more complete residential living environment through the application of imaginative approaches to community development which establishes neighborhood identity and focus consistent with values of the village. It is further the purpose and intent of this area to provide lands for a range of residential uses from lower density single - family to higher density residential uses. 17 P Property Data Permitted uses within this district include, but are not limited to, single and multi- family residential development, small -scale retail sales and service, business, professional and personal services, etc. There are also a variety of special exception uses allowed within this district including restaurants, hotels, adult congregate living facilities, gas stations, etc. Land Use Plan The Subject is located in an area designated as Commercial by the Comprehensive Plan of the Village of Jupiter Inlet District. The Subject's zoning conforms to the future land use classification. Concurrence In 1985, the Florida Legislature enacted the Local Government Comprehensive Planning and Land Development Regional Act (Chapter 163, Part II, Florida Statutes), commonly referred to as "The Growth Management Act ". Pursuant to Section 163.3177(10)(h), F.S., "it is the intent of the Legislature that public facilities and services needed to support development shall be available concurrent with the impacts of such development." From this statement, the term "concurrency" was derived, and is commonly used to refer to the above act and its requirements. The basis of the concurrency concept is Rule 93- 5.0055 of the Florida Administrative Code, which states that: "To ensure that facilities and services needed to support development are available concurrent with the impacts of such development, a local government must adopt a concurrency management system. Prior to the issuance of a development order or development permit, the concurrency management system must ensure that the adopted level of service standards required for roads, potable water, sanitary sewer, solid waste, drainage, parks and recreation, and mass transit, if applicable, will be maintained." To the best of our knowledge, the Subject Property would not be adversely affected by concurrency issues. Easements and Deed Restrictions We have not been provided a title search for the Subject Property. Based upon our inspection of the property records, no adverse deed restrictions were noted. As explained earlier, we are ignoring the existing lease on the property (see L.C. #12). 18 r � Property Data Site Size, Shape and Access The Subject Property consists of three irregular shaped parcels which contain the following: Land Area Parcel No. Acres Sq. ft. Frontage Description 1 1.19 51,988 203' Bridge Road Community Park 2 0.98 42,770 231' Tequesta Drive Parking Lot 3 1.02 44,534 203' Bridge Road "Paradise Park" Total 3.20 139,292 Access is available from Tequesta Drive and Bridge Road. An access road called Main Street divides the east and west areas as shown below on the survey. It should be noted that the map depicts the parcels assembled by the property owner which have since been incorporated together via a Declaration of Unity of Title. 19 Property Data Parcel MaR PLAT OF T E��80E S, VUKUA 63 E C FN, Tr E R LYING IN SECTION 3m TOWNSHIP 40 SOUm RANGE 43 EASI wuAoc or ncou/sTA. pAuy BEACH COUNTY, FIo�oA ^vo/S` ovo' s*ccr z or u ----------------- ------------' to ks lk It z L-23.14 (51968 SFt 1104 ACt) 31 I qiTVh J S 89'46'55' IN 110.001 516.42' 203,21' PLAT 90 UNDARY BRIDGE 10AD Utilities All public utilities are available to the Subject including sewer and water provided by the Village mfTequesta. AT&T and FPL provide telephone and electrical services. No topographical survey, soil or sub-soil analysis was available. However, our visual inspection revealed that the Subject is at the grade of the adjacent roads and drainage did not appear to be e problem. Parcels 1 and ] are improved with a community park, and Parcel 3 is improved with e parking lot. The topography appears tobe sufficient for development ofa variety ofuses. 20 r Property Data Census Tract The Subject Property lies within Census Tract 1.02. MSA Code: State Code County Code: Tract Code: X 48424 12 099 0001.02 Summary Census Demographic Information - -- —_ Tract Income Level Upper Tract 2508 Population I Underserved or Distressed Tract Minority Tract No 0 /o 3.35 _ - - -. 12008 HUD Estimated �- MSA/MD /non- MSA/MD Median $66,000 Minority 84 Family Income Population E 1 2008 Est. Tract Median Family Owner - Income $92,044 Occupied 997 Units I 2000 Tract Median Family $75,000 1- to 4- Family ' 730 Income Units Tract Median Family Income % 139.46 Flood Hazard Zone The Subject Property lies within Flood Zones "C" according to the Flood Insurance Rate Map (Panel Number 120228- 0001C) dated 9/30/1982 and prepared for the National Flood Insurance Program of the U.S. Department of Housing and Urban Development (H.U.D.). Flood Zone "C" indicates areas of minimal flooding. 21 r Property Data Assessed Value and Taxes 2009 Assessed 2009 Folio Number Allocations Value Taxes 60- 43- 40- 30 -47- 001 -0000 Land $603,371 (Parcel 1) Improvements $00 Subtotal $603,371 $16,997 60- 43- 40- 30 -47- 002 -0000 Land $621,125 (Parcel 2) Improvements Subtotal $621,125 $16,666 60- 43- 40- 30 -47- 003 -0000 Land $517,177 (Parcel 3) Improvements $00 Subtotal $517,177 $14,568 Totals $1,741,673 $48,231 Property History No title history was provided, nor did this office perform a title search. According to the Palm Beach County Property Appraiser's Office, Parcel 1 is under the ownership of Main Street Village, Inc., while the current owner of record for Parcels 2 and 3 is JMZ Tequesta Properties, Inc. (related entities). The parcels have been under these ownerships for at least 5 years, as far as we could determine. Parcels 1 and 3 are currently improved with "Paradise Park ", a community park established and built by the Village of Tequesta. Parcel 2 is improved and used as an asphalt -paved parking lot, with the Village of Tequesta also making this improvement. However, at the request of the client, we have valued the Subject Property as vacant commercial land. 22 �a Highest and Best Use HIGHEST AND BEST USE The Dictionary of Real Estate Appraisal Fifth Edition 2010, by the Appraisal Institute defines Highest and Best Use on page 93 as follows: "The reasonably probable and legal use of vacant land or an improved property, that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity." To estimate the Highest and Best Use of the Subject, we have considered those uses which are legally permissible, physically possible, financially feasible, and maximally productive. Consideration was given to individual features of the land such as size, shape, location, access to roadways, and the availability of utilities. Consideration was also given to the surrounding land uses and the demand for property in the current real estate market. In cases where properties are improved, the Highest and Best Use of the site "as though vacant" and the Highest and Best Use of the property "as improved" may be different. This is due to the principle of "contribution" which holds that if an improvement adds value to the site over and above land value, the Highest and Best Use of the property is as improved until such time as the improvements add no contributory value to the property. In the case of the Subject Property we have valued the Subject Property as if vacant, as requested by the client. Conclusion It is our opinion that the Highest and Best Use of the Subject is for future commercial development. 1. The Subject Property is zoned MU, Mixed Use District, by the Village of Tequesta. This category generally allows a wide variety of commercial uses. Further, the zoning district is consistent with the underlying commercial land use designation. 2. Physically the Subject site offers sufficient frontage and depth to support a variety of uses. The property is surrounded by parcels developed with commercial and residential uses. The topography would support most any of the legal uses. 3. The market for this property type, like virtually all property types throughout South Florida, has declined significantly during the past few years. A likely purchaser for this property would be a user for a build -to- suit project. However, due to softening market conditions, little interest is expected over the near term. Properties in the immediate surroundings 23 wo Highest and Best Use are fairly well maintained and occupied, and the area is well established with commercial and residential uses. 4. Therefore, it is our opinion that future commercial development would be the most maximally productive and Highest and Best Use of the site as of the appraisal date. The most likely purchaser of the Subject Property would be a developer or an investor /speculator. 24 c ? Land Value Analysis LAND VALUE ANALYSIS According to the 13 Edition of The Appraisal of Real Estate the valuation of land begins by identifying the real estate and property rights valued, any encumbrances, use restrictions, and the land's physical characteristics. An appraiser can use several techniques to obtain an indication of land value: • Sales Comparison • Market Extraction • Allocation • Land Residual Technique • Ground Rent Capitalization • Subdivision Development Analysis Usually the most reliable way to estimate land value is by sales comparison. When few sales are available, however, or when the value indications produced through sales comparison need additional support, alternative techniques like extraction or allocation may be applied. In the case of the Subject Property the only approach used was the Sales Comparison Approach. The Dictionary of Real Estate Appraisal Fifth Edition 2010, by the Appraisal Institute defines Sales Comparison Approach on page 175 as follows: "The process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market - derived elements of comparison." Discussion of Vacant Land Sales In order to estimate the value of the Subject site, a search was made for sales with development potential similar to the Subject. Our sale search concentrated on vacant commercial properties located in the Subject's market area, which is considered to be east central to northern Palm Beach County. The time frame of the search was from the appraisal preparation date back approximately 24 months. Our research revealed four closed sales and one active listing that were considered to be the most comparable to the Subject site. We analyzed the Subject Property based on price per square foot basis, as this was the unit of comparison most commonly used by market participants. All of the comparables were considered with regard to property rights appraised, financing, conditions of sale, time or market conditions, location, size, site quality and any other factors that affected the sale price. 25 �a Land Value Analysis As shown below, the four closed sale comparables indicated an unadjusted range from $11.09 to $25.46 per square foot prior to adjustments; Listing 5 indicated an asking price of $19.36 per square foot. VACANT COMMERCIAL LAND SALES SUMMARY Sale No. 1 2 3 4 5 O.R.BK /PG 23679/1140 23601/0421 23605/0932 23489/1341 Listing Record ID 7324 7228 7360 7275 7366 S si e of 10th NEC of Par si a SEC of W si e of E si e of AIA, Location Subject Ave. N, 160' Dr. & Indiantown Rd. Congress Ave., 200' N of Site east of Kirk Rd. University Blvd, & Daniel's Way S of Forest Hill E Jupiter Branch Palm Springs Jupiter Jupiter W Palm Beach Rd, Jupiter Appraisal Date Jul -10 - - - - Sale Date Jan -10 Dec -09 Dec -09 Sep -09 Current Sale Price 1 $260,000 $1,253,000 1 $1,375,000 $420,000 $1,990,000 Zoning MU CN MXD IOZ (C2) GC C2 Land Size - Pcl 1 1.194 ac. 23,435 49,223 89,111 30,492 102,802 Land Size - Pcl 2 0.982 ac 0.54 1.13 2.05 0.70 2.36 Land Size - Pcl 3 1.022 ac 11.09 $25.46 $15.43 $13.77 $19.36 ADJUSTMENT CONSIDERATIONS Financing Market Market Market Market Market Adjustment 0% 0% 0% 0% 0% Ad' Price - S ft $11.09 $25.46 $15.43 $13.77 19.36 Conditions of Sale Market Market Inferior Market Listing Adjustment 0% 0% 5% 0% -25% Adj Price - S ft $11.09 $25.46 $16.20 $13.77 $14.52 Market Conditions Similar Similar Similar Superior Similar Adjustment -7% -8% -8% -10% 0% Adj Price - Sclft $10.32 $23.42 $14.91 $12.40 $14.52 Other Adjustments Location 20% -20% 0% 15% 0% Size -5% 0% 5% -5% 5% Site Quality 5% 0% 5% 5% 5% Other 0% -10% 0% 0% 0% Net Adjustment 20% -30% 1 % 15% 10% Adjusted Price /Sgft 1 $12.38 $16.39 $16.40 $14.26 $15.97 #10 -63494 Average: $15.08 Maximum: $16.40 Minimum: $12.38 26 Land Value Analysis Comparable Land Sales Map Dickinson State Park Jonathan Dickinson M A R T I $t P CT ' V- 1, ' I Comparable Sale 3 arks and 711 , -sta �. Recreation Dept \ `a 706 Ken Oe nter St — .�Jupitir - -, -� Com Listing 5 710 , >= � 9 iRney \� a ' --- - - - - -- – - - - -. - - – j Juno Beach viation al Beach Gardens 786 8 -n eos 811 North Palm Beach F L O R I D C 809A J 850 Lake Park Riviera Beach A t l a n t i c Orange Blvd _ , ❑ -r:a 1° Palm Beach O c e a n Shores 702 ,, _ ., Mangonia Park r i °4A West Palm pB Royal Palm each � � t1'_ C , 4 Beach 7 — . -__- 704 Palm Beach E P A L M E A C I♦averhill r i Comparable Sale 4 441 " 98 I CorriparabFe Sale 1 v I ntl r(" ,r.� •, ll� 882 Lake Clarke Shores Wellington -- 3p.'ings Greenail es j w '802 – z Lake Worth 1 �Fai South Palm LLL Atl rttis ° ' Beach 27 r Land Value Analysis Land Sale No. 1 # ODB u r t ,�, i 111j 1 M Pronertv Identification Record ID 7324 Property Type Commercial Address 3956 10th Avenue N, Palm Springs, Palm Beach County Location South side of 10th Avenue N, 160 feet east of Kirk Rd. Tax ID 70- 43- 44- 19 -20- 017 -0010 Legal Lengthy legal Sale Data Grantor Fred W. Noyes and Jacqueline Noyes, Rep. of Estate Grantee Rizanur Altan Sale Date January 14, 2010 Deed Book /Page 23679/1140 Property Rights Fee Simple Marketing Time 3 months Conditions of Sale Arm's Length Financing Cash to seller Verification Confirmed by Jim Murray Sale Price $260,000 Land Data Zoning CN Topography Level 28 c i? Land Value Analysis Land Sale No. i (Cont.) Utilities All available Shape Rectangular Depth 220 Land Size Information Gross Land Size 0.538 Acres or 23,435 SF Front Footage 110 ft Total Frontage: 110 ft 10th Avenue N Indicators Sale Price /Gross Acre $483,277 Sale Price /Gross SF $11.09 Remarks This property was being marketed for sale at $300,000 as a vacant commercial site. According to the listing broker, the buyers are intending to use the site for a used car business and are planning to use the 1,248 SF office for the business. The improvements were old, in poor condition and not considered to contribute to the overall value of the property. The property was sold by representatives of an estate, but according to the agent, the sale price was market oriented and not distressed. 29 r Land Value Analysis Land Sale No. 2 pal 72 fit p i:n y 40 - VL ML Ot Y +' F n V R iL � Property Identification Record ID 7228 Property Type Commercial Address Jupiter, Palm Beach County, Florida Location Northeast corner of Parkside Drive and University Blvd. Tax ID 30- 42- 41- 23 -09- 004 -0000 Legal Parcel 4 of Abacoa Town Center Plat No. 2 Sale Data Grantor TC II Office LLC Grantee UPC Investors, LLLP Sale Date December 17, 2009 Deed Book /Page 23601/0421 Recorded Plat 102/155 Property Rights Fee Conditions of Sale Arm's length Financing Cash to seller Verification Confirmed by Nicci Ellefson Sale Price $1,253,000 Land Data Zoning MXD, Mixed Use Topography Cleared, ready to build Utilities All Shape Mostly rectangular 30 �a Land Value Analysis Land Sale No. 2 (Cont.) Land Use Mixed -Use Land Size Information Gross Land Size 1.130 Acres or 49,223 SF Actual /Planned 62,984 Building SF Indicators Sale Price /Gross Acre $1,108,850 Sale Price /Gross SF $25.46 Sale Price /Planned $19.89 Bldg. SF Remarks Site was approved at the time of sale for a 4- story, 62,984 square foot office building. Plans are to complete construction of the building by late 2010 /early 2011. The buyer intends to occupy a large portion of the building. 31 r ? Land Value Analysis Land Sale No. 3 ok WIL 711r s r i e Property Identification Record ID 7360 Property Type Commercial, Medical Office Address Jupiter, Palm Beach County, Florida Location Southeast corner of Indiantown Road and Daniel's Way Tax ID 30- 42- 41- 01 -00- 000 -7160 & -7170 Legal Lengthy metes and bounds Sale Data Grantor MNB2, LLC &I EC, LLC Grantee STORM73LLC Sale Date December 17, 2009 Deed Book /Page 23605/0932 Property Rights Fee Simple Marketing Time 4 years Conditions of Sale Arm's Length (see remarks) Financing Cash (no financing involved) Verification Rebel Cook, broker; Other sources: Costar; public records, Confirmed by Jim Murray Sale Price $1,375,000 32 Land Value Analysis Land Sale No. 3 (Cont.) Land Data Zoning IOZ (C -2) Utilities All available to site Shape Rectangular Landscaping Wooded Land Use Commercial, by Town of Jupiter Land Size Information Gross Land Size 2.046 Acres or 89,111 SF Front Footage 307 ft Total Frontage: 307 ft Indiantown Road Actual /Planned 24,000 Building SF Indicators Sale Price /Gross Acre $672,139 Sale Price /Gross SF $15.43 Sale Price /Planned $57.29 Bldg. SF Remarks This is the sale of property assembled in 2004 & 2005, and then approved for the development of "Warrior Plaza ", a 24,000 sq. ft. medical office project. According to the listing broker on the sale, the property was listed for several years with price reductions over time, until she got the listing and the seller was ready to get rid of the property. The list price, with approvals, was originally $2.5 million, then reduced to $1.8 million before finally selling. The seller was very motivated and worked the sale into a 1031 exchange. This sale was an all -cash transaction with a 20 -day closing. The approvals expire in Aug. or Sept. 2010 according to the broker who is now listing the property for the current owner at $2.5 million. 33 r � Land Value Analysis Land Sale No. 4 AV ZD 1 ' • , ° I eci �� , Pro [)erty Identification Record ID 7275 Property Type Commercial Address 1769 S. Congress Ave., West Palm Beach, Palm Beach County, Florida Location West side of Congress Ave., approx. 275 feet south of Forest Hill Blvd. Tax ID 70- 43- 44- 07 -01- 002 -0190 Legal Lengthy Sale Data Grantor Peter R. Greenstein, LLC Grantee Elwill Associated, Inc. Sale Date September 24, 2009 Deed Book /Page 23489/1341 Conditions of Sale Arms Length Financing All cash to seller and no effect on sales price Verification Ted Brown, listing broker; Other sources: Deed, Co -Star, Property Appraiser office, Confirmed by Dwain McPeake Sale Price $420,000 34 I r � Land Value Analysis Land Sale No. 4 (Cont.) Land Data Zoning GC, General Commercial Topography Level Utilities All Shape irregular Land Use Commercial Land Size Information Gross Land Size 0.700 Acres or 30,492 SF Indicators Sale Price /Gross Acre ,$600,000 Sale Price /Gross SF $13.77 Remarks Purchaser owned the property to the north and assembled this to his holdings. He did not think this affected the sales price. 35 I CMM Land Value Analysis Land Listing No. 5 AMP- n � .p 'h 4. t 3. 1 Property Identification Record ID 7366 Property Type Commercial Address Jupiter, Palm Beach County, Florida Location East side of AlA, 200 feet north of Jupiter Beach Road Tax ID 30- 43- 41- 06 -00- 001 -0012 Legal Lengthy metes and bounds Sale Data Grantor 3D Development Company, LLC Survey Date March 26, 2010 Property Rights Fee Simple Marketing Time 5 mos. Conditions of Sale Arm's length Financing Cash to seller Sale History 3/04 for $1,500,000 Verification Richard Apple, listing broker; Other sources: Loopnet; Public Records, Confirmed by Jim Murray Listing Price $1,990,000 Land Data Zoning C2 Topography Wooded; high and dry Utilities All available 36 r � Land Value Analysis Land Listing No. 5 (Cont.) Shape Irregular Land Use Commercial Land Size Information Gross Land Size 2.360 Acres or 102,802 SF Front Footage 317 ft AIA; 271 ft Dubois Road Indicators Sale Price /Gross Acre $843,217 Sale Price /Gross SF $19.36 Remarks This is a wooded site along the east side of A1A, north of Jupiter Beach Road. The broker has received some calls in the 4 -5 months since listing the property, but no serious offers. The site was initially offered at $2.4 million and reduced to the current asking price over time. The broker stated there are no approvals in place, but indicated the site lies within the Tequesta Inlet Village District. 37 Land Value Analysis Property Rights Conveyed All the sales in this analysis were transferred on a Fee Simple Estate basis, with the buyers receiving full property rights ownership. We are also unaware of any adverse deed restrictions or any other property rights limitations which would have affected the sales. Therefore, no adjustment was considered necessary for property rights conveyed. Terms of Financing (Cash Equivalency. The transaction price of one property may differ from that of a similar property due to atypical financing arrangements. In a case where favorable financing is established, a cash equivalency adjustment is often necessary. However, all of the sales analyzed herein involved either market terms or cash to Grantor. Therefore, no adjustments were made, nor any cash equivalency performed. Conditions of Sale Adjustments for conditions of sale usually reflect the motivations of the buyer and seller at the time of conveyance. Based on our confirmations, only one of the closed sales, Sale 3, involved atypical conditions of sale. According to our discussion with the listing broker, this property was marketed for sale for several years prior to the seller becoming very motivated to affect a sale with a significant price reduction and a requirement for a 20 -day closing period. The seller was motivated to sell the property as part of a 1031 tax exchange. As a result, we have adjusted this sale upward to reflect more typical conditions of sale. In addition, Listing 5 required a downward adjustment for conditions of sale. Properties for sale, especially during periods of soft market conditions, typically sell for less than the listing price. In our opinion, a fairly significant downward adjustment was necessary based on our discussion with the listing broker. None of the remaining comparables required adjustment for conditions of sale. Time or Changes in Market Conditions Market conditions generally change over time and may be caused by inflation, deflation, fluctuations in supply and demand, or other factors. The closed sales occurred from September 2009 to January 2010. The listing was current as of the appraisal date. The available data indicates that price levels for this property type peaked during 2005 to 2008 and have since declined along with the general economy. Based on the available data, we applied a -1.0% per month downward time adjustment to the sales, which transpired approximately seven to 10 months prior to the date of value. 38 r � Land Value Analysis Location In terms of location, it is our opinion that Sale 2 was located in area (Abacoa PUD) that is superior to the Subject and warranted a downward adjustment. Sale 3 and Listing 5 were considered to have a similar overall location in terms of traffic volume, exposure, and price levels, and did not require adjustment for this factor. Sales 1 and 4 warranted upward adjustments based on the lower overall property values in their respective areas. Size The Subject Parcels 1, 2, and 3 contain 1.194, 0.982, and 1.022 acres, respectively, as compared to the comparables that ranged from 0.54 to 2.36 acres. Typically, a smaller parcel will sell for more per square foot than a larger parcel when all other things are equal. Sales 1 and 4 were smaller than the Subject Parcels and were adjusted downward accordingly. Conversely, Sale 3 and Listing 5 were larger than the Subject and were, therefore, adjusted upward for this factor. The remaining sale, Sale 2, was similar to the Subject in this respect and was not adjusted. Site Quality The Subject site is cleared, and ready to build. Sale 2 is similar and required no adjustment. The remaining comparables required demolition costs to remove existing buildings, or clearing costs to remove existing heavy vegetation. Therefore, these comparables were considered to be inferior to the Subject, and upward adjustments were required for differences overall site quality. Other (Miscellaneous) In terms of other adjustments that appear to be warranted, Sale 2 was adjusted downward based on approvals in place for development at the time of sale. Each of the sales was selected based partially on their having commercial zoning designations. However, only Sale 2 required adjustment for existing approvals which benefit a prospective buyer and typically represent a premium to value. It is noted that Sale 3 was purchased with approvals; however, they were soon to expire and the buyer does not plan on developing the site. As a result, this comparable was not adjusted for this factor. 39 r ? Land Value Analysis Conclusion - Land Value Analysis After adjustments, the data indicated the following: ADJUSTED $ /SQFT INDICATIONS Time Adj Net Adjusted Sale $ /sgft Adjustment $ /sgft. 1 $10.32 20% $12.38 2 $23.42 -30% $16.39 3 $14.91 10% $16.40 4 $12.40 15% $14.26 5 $14.52 10% $15.97 Average $15.08 The overall average of the adjusted sale prices is $15.08 per square foot. Sale 1 appears to be inconsistent with the other comparables; however it is the most recent transaction. Therefore, if the high and low ends of the range are eliminated (Sales 1 and 3, respectively), the average equates to $15.54 per square foot. Sales 3 and Listing 5 required the least net physical adjustments and indicated values of $16.40 and $15.97 per square foot, respectively. Based on the available data and current market conditions, we have concluded that a value of $15.50 per square foot appears to be a well supported indication of value for the Subject Property. As a result, our opinion of the Hypothetical Market Value for the individual parcels, as of July 8, 2010, is calculated as follows: JMZ Teauesta Properties Value Estimate Sales Comparison Parcel No. Sq. Ft. Value Per Sq. Ft. Approach (Rounded) 1 51,988 $15.50 $810,000 2 42,770 $15.50 $660,000 3 44,534 $15.50 $690,000 Further, if the three parcels were sold "in bulk" to one purchaser, we would consider the larger overall land area of all three parcels combined, or 3.20 acres. As noted earlier, a larger parcel will sell for less per square foot than a smaller parcel when all other things are equal. It is our opinion that the value per square foot would be slightly lower, at $14.00 per square foot, due to the larger land area of all three parcels in bulk (or a 10% reduction in value as compared to the individual smaller parcel sales). 40 r P Land Value Analysis Based upon the scope of the assignment, our investigation and analysis of the information contained within this report, as well as our general knowledge of real estate valuation procedures and market conditions, it is our opinion that the Hypothetical Market Value of the Fee Simple Estate of the Subject Property, if all three parcels were sold in bulk to one buyer, as of July 8, 2010 was: Value Estimate - Sales Comparison Parcel No. Sq. Ft. Value Per Sq. Ft. Approach All 139,292 $14.00 $1,950,088 combined 3.20 ac. Rounded to, $1,950,000 41 ADDENDA ENGAGEMENT LETTER Me- k Lie Callaway & Price, Inc. Real Estate Appraisers And Consultants / � % ► t www.callawayandprice.com lam/ Licensed Real Estate Brokers Please respond to West Palm Beach office E -Mail: mrs @cpwpb.com WEST PALM BEACH 1639 Forum Place Suite 5 April 6, 2010 West Palm Beach, FL 33401 Phone (561)686 -0333 Fax (561)686 -3705 Michael R. Slade, MAI, SRA, CRE St.Cert.Gen.REA RZ116 sole Daniel P. Hrabko, MAI Mr. John M. Zuccarelli A IF- St. RZ48 JMZ Tequesta Properties, Inc. Stephen D. Shaw, MAI 209 Tequesta Drive St.Cert.Gen.REA RZ1192 Tequesta, FL 33469 FORT PIERCE /STUART 5 South U.S. Highway 1 S 107 jmzprop@aol.com Dear Mr. Zuccarelli: VIA EMAIL: @aol.com p p Fort Pierce, FL 34950 Phone (772)464 -8607 We would be pleased to prepare an appraisal on 3 vacant parcels Fax (772)461 -0809 of land located on Main Street, that total just over 3 acres of land. Stuart They are further identified by their folio numbers as 60-43-40-30 - Phone (772)287 -3330 Fax (772)461 -0809 47- 001 -0000, 60- 43- 40- 30 -47- 002 -0000 and 60-43-40-30-47 - Harry D. Gray, MAI SRA 003 -0000. It is our understanding that the purpose of the St.Cert.Gen.REA RZ662 appraisal is to estimate Market Value. Stephen G. Neill, Jr., MAI St.Cert.Gen.REA RZ2480 The intended user is JMZ Tequesta Properties, Inc. The intended use is for internal decision making. The scope of work performed MELBOURNE /INDIALANTIC is specific to the needs of the intended user and the intended use. 114 6th Avenue, No other use is intended, and the scope of work may not be Suite 3 appropriate for other uses. Indialantic, FL 32903 Phone (321)726 -0970 Fax (321)726 -0384 The fee would be $3500. It is our policy to request a retainer and Curtis L. Phillips, MAI $1750 will suffice for this purpose. We will provide 2 originals of St.Cert.Gen.REA RZ2085 the final report. BOCA RATON We will have the report completed in approximately 2 to 3 weeks Phone (561)998 -8088 p rovided that we receive our authorization. Please be aware Fax (561)686 -3705 p ve y that delays in our receipt of information requested could Daniel P. Hrabko, MAI St.Cert.Gen.REA RZ48 postpone completion. FOUNDERS We need you to supply the survey and /or legal description, if Joe R. Price, MAI, SRA available and any other information you deemed appropriate. St.Cert.Gen.REA RZ555 Robert J. Callaway, MAI, SRA Jun 18 2010 13:25 JwZ `xOPERllss 56122? p'; Mr. John M.ZwccangQ April 5,2D10 pegeTvvw If the above is agreeable to you, please sign below as our authorization and return it together with the retainer and the information requested and we will begin work immediately. This agreement Is subject to the Agreements and Conditions listed on the attached pages, a copy of which should also be signed and returned to uy. Our work will be done in accordance with the Appraisal Institute Code of Ethics and Standards oy Professional Practice, Thank you for the opportunity Umbeofservice. Respectfully submitted, [ALLAVVAY&PR[CE, INC. Michael R. Slade, MAI, SRA, CRE SLCe±.Gen.REARZl16 MRS: Attachments Client: AccestedBy\Da&e: Date Signature Name and Title (Printed or Typed): +'C Client Fed lD# or B5#; Quoteo1OVzuccare||| LEGAL DESCRIPTION "RB I OSS;2 pa 77 LEGAI, DESCRIPTION PARCEL NO, I LYING IN SECTION 30, `roWNSI-IIP 40 SOUTH, RANGE 43 EAST A PARCEL OF LAND LYING IN SECTION 30, TOWNSHIP 40 SOUTH. RANGE 43 EAST. PALM BEACH COUNTY. FLORIDA, 13EING MORE PARTICULARLY DESCRIBED AS' FOLLOWS: COMMENCING AT THE POINT OF INTERSECTION OF THE CENTERLINE OF STATE ROAD NO. 5 (US HIGHWAY NO, 1) WITH THE SOUTH LINE OF SECTION 30, TOWNSHIP 40 SOUTH, RANGE 43 EAST; THENCE NORTH 03 EAST (BASIS OF BEA ALONG THE SAID CENTERLINEA DISTANCE OF 695.55 FEET TO A POINT ON THE EASTERLY EXTENSION OF THE NORTH RIGHT-OF-WAY LINE OF BRIDGE ROAD (PER DEED BOOK 1166, PAGE 552 OF T14E PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA); THENCE SOUTH 89 WEST, ALONG SAID EASTERLY EXTENSION AND SAID NORTH RIGHT-OF-WAY LINE, A DISTANCE OF 673.37 FEET TO THE POINT OF BEGINNIN48, THENCE CONTINUO SOUTH 89 WEST, ALONG SAID NORTH RIGHT-Or-WAY LINE, A DISTANCE OF 203.21 FEET THENCE NORTH 00 WEST. A DISTANCE OF 224.57 FEET, • THENCE NORTH 89 EAST, A DISTANCE OF 263,52 FEET, THENCE SOUTH 18 ° 43'.13" WE-S A DISTANCE OF 87.10 FEET TO THE BEGINNING OF A CURVE, BEING CONCAVE TO THE EAST AND HAVING A RADIUS OF 130 FEET, THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 18 FOR AN ARC LE\GTH OF 42.97 FEET; THENCE SOUTH 0 EAST, A DISTANCE OF 74.99 FEET, THENCE SOUTH 4446*55" WEST. A DISTANCE OF 35.36 FEET TO THE POINT OF BEGINNING. 113 losse Pg 78 LEGAL DESCRIPTION PARCEL NO, 2 LYING IN SECTION 30, TOWNSHIP 40 SOUTH, RANGE 43 EAST A PARCEL OF LAND LYING IN SECTION 30, TOWNSHIP 40 SOUTH, RANGE 43 EAST, PALM BEACH COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE POINT OF INTERSECTION OF THE CENTERLINE OF STATE ROAD NO. 5 (US HIGHWAY NO. 1) WITH THE SOUTH LINE OF SECTION 30, TOWNSHIP 40 SOUTH, RANGE 43 EAST; THENCE NORTH 03 EAST (BASIS OF BEARINGS), ALONG THE SAID CENTERLINE, A DISTANCE OF 695.55 FEET TO A POINT ON THE EASTERLY EXTENSION OF THE NORTH RIGHT-OF-WAY LINE OF BRIDGE ROAD (PER DEED BOOK 1166, PAGE 552 OF THE PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA); THENCE SOUTH 89*46'55 WEST, ALONG SAID EASTERLY EXTENSION AND SAID NORTH RIGHT-OF-WAY LINE, A DISTANCE OF 876.58 FEET, THENCE NORTH 00 0 13'05" WEST, A DISTANCE OF 224.57 FEET TO THE POINT OF BEGINNING; THENCE CONTINUE NORTH 00°13 '05" WEST, A DISTANCE OF 96.49 FEET TO A POINT ON THE SOUTHERLY RIGHT-OF-WAY LINE OF TEQUESTA DRIVE (PER OFFICIAL RECORD BOOK 6625, PAGE 302 OF THE PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA), THENCE ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE FOR THE NEXT TWO (2) COURSES. NORTH 67 0 59'40" EAST, A DISTANCE OF 231.34 FEET; TO THE BEGINNING OF A CURVE, BEING CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 305 FEET. THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 9 FOR AN ARC LENGTH OF 52,59 FEET, THENCE DEPARTING SAID RIGHT-OF-WAY SOUTH 5 1 * I 0'19" EAST ALONG A NON-RADIAL LINE, A DISTANCE OF 38.83 FEET; THENCE SOUTH 00 °13'05" EAST, A DISTANCE OF 68.97 FEET TO THE BEGINNING OF A CURVE, BEING CONCAVE TO THE WEST AND HAVING A RADIUS OF 70.00 FEET; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 18 0 56'18", FOR AN ARC LENGTH OF 23.14 FEET; THENCE SOUTH 18 0 43'13 " WEST, A DISTANCE OF 86.09 FEET; THENCE NORTH 89"46 EAST, A DISTANCE OF 263.52 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 1.0022 ACRES MORE OR LESS, SUBIECT TO EXISTING EASEMENTS OF RECORD, 41! i 0992 Rg 79 �1Y H. WILKEN, CLERK PB COUNTY, FL zYi tBM;C T.ECAL DI4SCRIPTION OF TZQUWrA ASSOCIATYS PARCEBL A PARCEL OF LAND LYING IN SECTION 30. TOWNSHIP 40 SOUTH, RANGE 43 EAST, PALM BEACH COUNTY, FLORIDA. DIEING MORE PARTICULARLY DESCRISED AS FOLLOWS: FROM THE POINT OF INTERSECTION OF THE CENTER LIMB OF STATE ROAD NO .3 (U.S. HIGHWAY NO. 1). WITH THE SOUTH LINE OF SECTION 30,BEAR NORTH 03054'35• EAST, ALONG SAID CENTERIjNE, A DLWANCEOF 695.55 FERT. THIDiCfi BEAR SOUTH 39046'55" WEST, ALONG THR NORTH AIGHr4F -WAY LINE OF BRIDGE ROAD AND ITS EASTERLY E)MENSION, A DISTANCE OP 876S1 FEET TO THE POINT OF BFAMNING; THENCE CONTINUE SOUTH 2%46 WEST. ALONG SAID NORTH RIOHT".WAY LINE, A DISTANCE Of 94.23 FEIBT, TO THE INTERSECTION W'TH THE EASTERLY RJOHT -0P -WAY LINE OF OLD DVM MOHWAY. AS RECORDED IN ROAD PLAT BOOK 3, PAGE 146, PALM BEACH COUNTY PUBLIC RECORDS; THEIRCB SEAR NORTH 36o13 WEST. ALONG &AID' EASTERLY RIGHT-OF-WAY LING, REM THE CHORD OF A CURVE, HAVING A RADIUS OF 23.4 FEET. A WBTANCE OF 27.95 FEET; THENCE BEAR NORTH 22o142V WEST, ALONG SAID EASTERLY RIGHT -0F -WAY UNE, A DISTANCE OF 219.57 FEET, THENCE CONTINUE ALONG SAID EASTERLY RIMIT -OF -WAY LINE, ON A BEARING OF NORTH 22oST4V EAST. BEING THE CHORD OF A CURVE HAVING A RADIUS OF 23.00 FEET. A DISTANCE OF 35A3 FEET TO THE M I WLWA'RON WITH THE SOUTHERLY RIGHT -4P- -WAY LINE OF TSQUESTA DRIVE; "THENCE BEAR NORTH 67o59'4V EAST, ALONG SAID SOUTHERLY RIGHT-OF WAY LINE, A DISTANCE OF 200.25 FEBT; THENCE BEAR SOUM OOo13'05" EAST, A DISTANCE OF 326.37 FEET TO THE POINT OF BEGINNING; SUBJECT" TO AN EASEMENT OF THIS WEST 10.00 FEET OF THE ABOVE DESCRIBED PROPERTY CONTAINING 2245 SQUARE FEET (0.03 ACRES) MORE OR LESS. SAID LANDS SI UATB, LYING AND SEINE IN PALM BEACH COUNTY, FLORIDA. SUBJECT TO ALL PERTINENT MATTERS OF RECORD• THE AFURBSAID PARCEL CONTAINMG �_ ACRE& MORE OR LESS QUALIFICATIONS Professional Desicinations\Licenses\Certifications Member, Appraisal Institute, MAI Designation #68f4, and 8RADesignation Member, American Society of Real Estate Counselors, [REDesignation Florida State-Certified General Real Estate Appraiser RZ116 Real Estate BrnkerBKD128Z22, State VfFlorida Appraisal Institute Approved Instructor (1986-1993) for: Course 201 - Principles of Income Property Appraisal Course 310 - Basic Income Capitalization Professional Experience Principal, Callaway &Price, Inc. since 1g81 Staff Appraiser, Callaway & Price, Inc., 1975 to 1981 Special Maater/Magistrate, Tax Appeal Hearings, Palm Beach County Qualified As An Expert Witness Broaard County, Florida Palm Beach County, Florida Martin County, Florida Federal District Court of Southern District of Florida United States Bankruptcy Court Southern Florida Supreme Court ofthe State of New York (for Florida properties) New Jersey Superior Court Geographic Experienc Throughout Florida Education Masters of Business Administration, Florida Atlantic University Bachelor ofScience, Accounting, Florida Atlantic University Sudety of Real Estate Appraisers: Course 101 ' Introduction to Appraising Real Estate Course 201 ' Principles o/ Income Property Appraising Course 2U2- Advanced Applications American Institute of Real Estate Appraisers: Course D- Urban Properties [ourseIV - Condemnation Standards ofProfessional Practice Nunnerousserninars sponsored by the Appraisal Institute and other organizations irm P Qualifications - Michael R. Sla&, MAX, SRA, CRE Organizations and Affiliations Appraisal Institute: Ethics Administration, Past National Chairman Ethics fkCounseling, Past National Vice Chairman Review 8kCounseling Division, Past National Chairman South Florida-Caribbean Chapter, Past President American Society of Real Estate Counselors: Southern Florida Chapter, past Treasurer Urban Land Institute, Member Palm Beach County Housing Authority: PaotChairrnan/Boand Member (Gubernatorial Appointment) Chamber of Commerce of the Palm Beaches: Board of Directors, Past Member ofthe Executive Committee, Treasurer Economic Development Committee, Past Chair and Member Society of Real Estate Appraisers (now Appraisal Institute): Young Advisory Council, Past National Chairman and Member Boys Town of South Florida, Chairman of the Board ofDirectors Guardian ad L|benoVolunteer, South Florida Awards and Honors Robert L. Foreman Memorial Award from the Appraisal Institute, 1999 Alumni Talon Award from Florida Atlantic University, 2001 8TATForRom|DA uap�zn'��/ or *vez�o�p mn p��pnyszmrX. -n� warwcu ^,~w^.a«L vo Thu -�MV-VXxp G�wmnA p ,:x mdez the n,u,l"i="s 'itr Cu- *r� Fe. x�aos c�os`x/. xouuzr vsr� _aL� zc^ FL ;-14o- CHARLIE 1uU_'Iz u^^uLu- e). n—bmtjrj mivra,mx ^� �cumMcuL° Uw* oacxnTAsx irm _P quafifications - Niccola L. Ellefson, !A1 Professional Designations\Licenses\Certification Member, Appraisal Institute, MAl Designation #11777 Florida State-Certified General Appraiser RZZOg6 Professional Exl2erience Appraisal Cn | Callaway &Price, January 2003 Senior Appraiser, Palm Beach County Property Appraiser's Office, 2001-2003 President, Cignal Appraisal Consultants m xaa| Estate An present Appraiser and Consultant, Roe Westberry Q`Associates, 1992-1994 Assistant Vice President, Landauer Real Estate Consultants, 1989-1992 Manager, Market Research and Real Estate Analysis, MlG Companies, 1986-1989 Education Bachelor ofArts Degree, Business Administration, University of Wisconsin Appraisal Institute: Course 1A2- Basic Valuation, 1991 Course 310 - Basic Income Capitalization, 1992 Course 2-1- Case Studies in Real Estate Valuation, 1993 Course 51O' Advance Income Capitalization, 1994 Course 41O/42O- Standards of Professional Practice, 1995 Course 54O' Report Writing, 1996 Course 55O- Advanced Applications, 1998 Course 410/420 - Standards of Professional Practice, 2008 Course 800 - Separating Real and Personal Property from Intangible Business Assets, 2002 Numerous seminars sponsored by the Appraisal Institute and other organizations aeog.raphic Experience Throughout Florida Arizona Arkansas California Georgia Minnesota Nevada North Carolina Tennessee Texas Washington State Appraisinci\Consulting- Expertise Agricultural Land/Groves Large-Scale Planned Developments Apartment Complexes, 8-400+ Units Life Cane Facilities Automobile Dealerships Marinas Commercial Buildings Mitigation Banks Churches Mobile Home Parks Condominium Projects Multi-Tenant Shopping Centers Environmentally Sensitive Lands Office Buildings Golf Courses Property in Litigation Hotels and Motels PnopnsedSubdivision -Residentia| Industrial Properties Shopping Centers vacant Commercial and Residential Land Special Put Properties Qualifications - Nkcola L. Ellefson,, MAX STATE OF FLORIDA A I DHPARTMRN? 8JXBUGTUy5n 96 R YR0VZ.q A7SAL 3M0NArj ID RnGULATIUN PL 7AT9 APP CRUSE MR The CEPTIPIED:CE! MRAL APPU.ISSA the provieione or chAw 475 rS. Expiration datei 1 40V 30. 20iO BLUFSON' NICCOTA L 1639 FOR(m PLArm, SUITE 5 1. WEST PALM, BEACA FL $3401 CHAAL TIE --tR14T 4PURLES W, DRRaD sse"TARY UISKAYAS-RCOUIRMBYLN-V....