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HomeMy WebLinkAboutDocumentation_Special Meeting_Tab 03_09/16/2010 (2) 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. ����t� � �au,��t Cc�►�►'"'� �� �� Callaway & Price, Inc. Real Estate Appraisers And Consultants www, calla wa yandprice, com Licensed Real Estate Brokers Please respond to West Palm Beach ofFce WEST PALM BEACH E-Mail: mrsC�Dcowob.com 1639 Forum Place Suite 5 West Palm BeaCh, FL 33401 JU�Y 21� 2�1� Phone (561)686-0333 Fax (561)686-3705 Michael R. 5/ade, MAI, SRA, CRE Mr John Zuccareili St.Cert.Gen.REA RZ116 JMZ Tequesta Properties, IIIC. Daniel P. Hrabko, Mar 209 Tequesta Drive St.Cert.Gen.REA RZ48 Tequesta, Florida 33469 Stephen D. Shaw, MAI StCert.Gen.REA RZ1192 Re: Tequesta Village Center FORT PIERCE/STUART Dear Mr. Zuccarelli 500 South U.S. Highway i Suite 107 Fort Pierce, FL 34950 �/e have made dit 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 stUart Village of Tequesta, Florida. The Subject Property will be further Phone (772)287-3330 described both narrativel and le all within the followin Fax (772)461-0809 Y 9 Y 9 Harry D. Gray M,ar, 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 Stephen G. Neill, Jr., Mar of the Fee Simple Estate of the Subject Property as of July 8, St.Cert.Gen.REA RZ2480 2�1�. MELBOURNE/INDIALANTIC This report haS been prepared f01' 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 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. )ohn Zuccarelli JMZ Tequesta Properties, Inc. ]uly 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. Sa• Ft• Value Per Sa. Ft. Approach (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. Approach 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. 11-14) and underlying assumptions upon which the value conclusions are contingent. Respectfully submitted, CALLAWAY & PRICE, INC. '�►, /C1 .�CC�- Michael R. Slade, MAI, SRA, CRE St.Cert.Gen.REA RZ116 �9� � � Niccola L. Ellefson, MAI St.Cert.Gen.REA RZ2096 M RS/N LE/KPS/ 10-63494 Atta ch me nts � __ _ �� 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 : July 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" Tota I 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. r Tab/e of Contents Page No. CERTIFICATION............................................................................................. 1 LIMITING CONDITIONS .................................................................................. 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 FeeSimple 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 Topography.............................................................................................. 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 PropertyRights Conveyed .......................................................................... 38 Conclusion - Land Value Analysis ................................................................ 40 ADDENDA Letter of Engagement Legal Description Qualifications: Michael R. Slade, MAI, SRA, CRE Niccola L. Ellefson, MAI c 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 � 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. ���� � ������� Michael R. Slade, MAI, SRA, CRE St.Cert.Gen.REA RZ116 . - � N_._.—_ Niccola L. Ellefson, MAI St.Cert.Gen.REA RZ2096 2 r 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 Subject Photos , ` ,.� �" �. . �• � � � r �� � � � � � �� ,� � �� � ,��� ��. _;�r � .�. - ' � �„ � o � �° 'a � , , � � "��_� �---,r �.. +�`� ' ' �-� �, ' � ' � � ,� �� ��, tl � �� �; : ,� . , _ _ ' ° �- � °° �. ,� , d �- � . , , - � •: � - �, :� � � ; �,�' ,,;� , �'".�,_ -,�.�. .. _ ���� . • . ...>- �.�......��..�:-,.°....,°. _ _ � �,;,,,�,�, �` .. . -�.- .. ,; _ .,- _• :,� . . .�, �"° �'�� ��� i ���� _ �" ; �; � � . ; ,, �: , � . :., _ ::. VIEW LOOKING WEST ALONG TEQUESTA DRIVE (SP IS ON LEFT) � �, y:� � � ,� ` ; � . '� Wiai�°� �,. � _ �. . � . i �;`� � ,x w ,� ■ � � . � _ � � , � � _ �` •. �,- ;�. ��' . �"" � � � '� � .: ,�,. ��t - � � „,,.;� . �:: - � �r & �rfi� � �� � �� �. �% , ,.. `, �, _ _ - �>; i nn�rnir_ FocT ni nnir_ RRrnr_F Rnnn �cp Tc nni I FFTI c �? Subject Photos „ > --�"�._� - � >�' _ _.�;� �_:d�c , , fc, _ . +� . . ;.� . 4< 1� . � X J, .; ,F � � : - , � �. � '��� � .� � � « � - ' � '�a� � - " - �l1��'' A ��,� ,� � r,����. - �� _. . ` � . �� ' ''NA` '` 'X ; � _� �' t' ,� f � :� � x � � `�'�:� `, ���,� w _ � , ��..�,,� � 4 �. ' .�., h- � �� ��� _ -:�mf�� �, � �- � - � W �,,;�. � ,,.- � � _ ,� � � - � LOOKING SOUTH AT THE MAIN STREET ENTRANCE (OFF BRIDGE ROAD) PROVIDES ENTRY FROM THE SOUTH SIDE OF THE SUBJECT PROPERTY - � �.. :�. _�; ' h- '.�� h_..� ..,}. R. � � .µ � F . . . �."� �r -. : �x' .,',. � � . ��„ �. � � ,''�''�N„"��.sa5 ..�"`s �r �+r�r. ' ' *� ' - .3t . �. .../t_. �� �.`... �: `<%�t.� .�`.�'� .-. ��.. ' . ... i,,, �� s 1 � . . *MAtia'=..A14:.� .�.:a � � � � � - a =� �:- .,, .._s.;: � �. �::. � �� £' is d �• •. t yf, �' _ a. `,�c�,g�� . �r -��� ;: .,. . . � � � ' ' �.. . x ,. �.: . } � � »i:,' � 4 .. � , �_ , . <- .., _ .. �__ �� . .. � � , � „ ; .. :y �, £ � � � .. , _ . .,.; .. .._ , =',: ,� , -�. . , .,�� �. �,,; , � �... . ,. ,..;.: . , ;-- �u .. :�� a . ..... . PARCEL 1 7 r Subject Photos ,, �-� � y ' � . ' � , �' �~`� � ."n _ � � `� 4 +a�y " *v � � �m: � � � � ` � � _ �� W.� �t . . �`w°"`' , g e,. r ` � ��`, '`�"R� •.�' . •� _ ., ,,,,.. -�, , ., �. :� �, - : . ., ', .. ., ` � � �: � -�. � � � � � w q 1 . ,� � � ��� � �� .. �`s `1 � � � �Y e��. ���� � �-` - `� F �., �.�'rru.�.�€a�.r4.r r°�?-��:�;; � � r�.� � " � } � �,. 1 � '" s �. � . ` .� *> �: �"`re3��'9c£'� �« � . s ,�[ . rr �. � � �+�y . _ p '� , r'x ", , � F �€� �! :'L�' At ~�� � ; � � SOUTH SIDE OF PARCEL 1 ALONG BRIDGE ROAD �,� �. : � =r � _: � � � � ,. x � .��� -: §��� � � �,� �� �s,. s � . y :, � ,.. "'�: tr al� � .� �€ l��� � � �� � „' � � +"� � �!!'" "` ` =!� �` _:5,.'� av—=° ��e :-; � \ � ��,. . __._• `�^ °r�+�_�L�. �-, ,� _ . �� � .�•.�.., . — .�� � � �� � � �'"���a, �` '��'°�r+�' . _ r �. ��,, ,� a 'r � ;�,;'" �. � �;,:� PARCEL 2 (PARKING LOT) 8 r Subject Photos �� �` s � � '=� � �., -� ,� �, °, � r �� "; � { =a.. d �.: � ,�� ��, .. •� 4 �' Y. '3 i'�. ..:�, � t� a �� ,� �, ' � ��'. .� .� r�T `�1 , �' ,� � _ . � �„ . -� `�� , . . ^'4� �' � . � w , �y" -? r� �� 't ��+� - � 5� � � s ::� � f , -�- � :� � � _'^" ^ 'R`��� • . .s. a � , < _ -. .�„�bg��y,�+'9�4,�j�r, , ..`� �' � `_. . €� �-� '� .-'.�'°' " � �, ..._ �� �". , ,_���.,r � , �, . -��,.,' . , , , , �Ma, �: - . • _ � � :._ . . . ? �_ y -�:.�_ . ... _ �}3 ,: e � � � . � � ` . . . . . . - ..:`�',�'_ . NORTH SIDE OF PARCEL 2 ALONG TEQUESTA DRIVE � ��� `� � . \.,_ � �, ��- .� =�� �� � w�; ��: �� �� � � � � , � � - .'' � � ,, ,� � � I ���� _ � �a, •-p �* . _.� " . , , F , r ��� � Q :� ,- � � s�.: ,. � � "' �. , �r _ ,� , , d � ,. .� �� - � � a _ ' �. � * .bII. *�� � .� �.s - .� , ,, h � a � �, ���`_ �� _� �� a � �� - F 4z � �,i��'�,� �r ��'''� -x �� ..i � o Y� �'' y �, �� y��N � PARCEL 3 9 r� Subject Photos � � P � -,� ,��� _� _ ����� - � a.., y� � _ ; t . „ �... : � , �`�' �� f . .r s ,. _., < ;' � � ` -.�ra :::.�.,�_..,.m:� �: °-:y�-� _ - w . . . . (^ � . . . .�" .n � . . ' -.� w� t r� .'� � .�* " .-:``~�;::. . . .. �. `:...,k,� •�,•�-�� '"" > ' , �'^" '' , .. � MAIN STREET ROUND-A-BOUT PROVIDING INTERIOR ACCESS TO ALL PARCELS � _ � _ _ . �, � ,m �.. � _. --_ �� �' "'"�` ,, � ��� . ��__ � _. �� - , ,_, . _, -- x �, _ . . : . _ _ _ �� � � �� � ~�� . �;�. � � . �, �� , <�. ��� „� � , : F � � ��� p � �:� t� .�, �,"� ' i � �::� "'�- 't"� � 'f, A"! i f .� Z ��,�Y��. ��,, . {�. . _ n� ' '� . ��f� �x�''" - " �1� � � . . � � .. � . . ���.. � � � �_:,. ��.. . , . � s, . ... . . �r .;.. ._... .. �ti:t..;: , . . �. _..........m.�...�...,.- �:.. �Y.�Y9^ ... . �I'^' _ 4 ° ` . � �� �k � P.a� ' � w� E � �. � � .�, � � Y ����' �• $� € f� * �� 5'• ' � . M� � �, ��= � � � �,� .� w � _ ��: � � � �:+-. ; �, .��.F �; ' 4�'� ; °� ' a � 3 ,� „ �� ��� f �F� , � � d„'� _ � • a" �� ?�� � , � � d ` � . � . �, ` . ; 1 .. '. . � �� _ Gv S:t'�"' N rt f � i '} ... f-1�l�T+�f-1!1 �" . . . . ('�:}'�:� _ . � . AERIAL PHOTOGRAPH 10 � Definition of the Appraisal Prob/em DEFINITION OF THE APPRAISAL PROBLEM Purnose, Date of Value, and Interest Appraised The purpose of this investigation and analysis was to estimate the Hypothetical Market Value of the Fee Simple Estate of the Subject Property as of July 8, 2010. Intended Use and User of Appraisal This report has been prepared for our client, JMZ Tequesta Properties, Inc. The intended use is for internal decision making. The scope of work pertormed is specific to the needs of the intended user and the intended use. No other use is intended, and the scope of work may not be appropriate for other uses. Legal Description The legal descriptions were provided by the client and copies are provided in the Addenda of this report. Market Value Section 1110 of Financial Institutions Reform, Recovery, and Enforcement Act's (FIRREA) instructions to the Office of Thrift Supervision uses the definition of Market Value below as developed by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and adopted by the Appraisal Foundation's Uniform Standards of Professional Appraisal Practice. "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, 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: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and acting in what they consider their own best interests; c. a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 11 r .? Definition of the Appraisa/ Prob/em e. 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." Fee Simple Estate The Dictionary of Real Estate Appraisal, Fifth Edition 2010, by the Appraisal Institute, defines Fee Simple Estate on page 78 as follows: "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." Hypothetical Conditions The Dictionary of Real Estate Ap�raisal, Fifth Edition 2010, by the Appraisal Institute, defines Hypothetical Conditions on page 97 as follows: '�That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contract to know 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." For purposes of this assignment, and at the request of the client, we have analyzed and appraised the Subject Property as if unencumbered (see Limiting Condition 12). Extraordinary Assumptions Extraordinary assumptions are defined by The Dictionary of Real Estate Appraisal, Fifth Edition 2010, by the Appraisal Institute, on page 73 as follows: ��An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information 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." No extraordinary assumptions were employed as a basis for this analysis and appraisal. 12 r �? Scope of Work SCOPE OF WORK According to the 13th Edition of The Appraisal of Real Estate, page 135, "Scope of Work refers to the type and extent of research and analyses in an assignment. The appraiser is responsible for determining the appropriate scope of work in the appraisal assignment. Scope of work for an assignment is acceptable if it leads to credible assignment results, is consistent with the expectations of parties who are regularly intended users for similar assignments, and is consistent with what the actions of the appraiser's peers would be in the same or a similar assignment." The first step in the appraisal process is the identification of the appraisal problem which included the purpose and date of value, determining the interest being appraised, intended use and user of the appraisal, and identifying the real estate (legal description). This step also determines if the appraisal were subject to any extraordinary assumptions or hypothetical conditions. At the request of the client, we have valued the Subject Property as vacant land, a hypothetical condition. The property is improved with parking lots and a city park, which are in good condition. However, the improvements, in our opinion, do not contribute to the Highest and Best Use of the Subject site. The next step involved the inspection of the Subject Property in July 2010 by Michael R. Slade, MAI, SRA, CRE and Niccola L. Ellefson, MAI. The inspection allowed us to understand the physical components of the Subject Property. In addition to the inspection of the Subject Property, we also began the data-collection process and, subsequently, an analysis of the factors that affect the market value of the Subject Property, including property data analysis. We gathered and reviewed information from the Palm Beach County Property Appraiser's Office, the Village of Tequesta Planning and Zoning Department, and interviewed brokers and market participants to understand and describe the Subject Property and its surroundings. The third step in the process is a market area analysis and neighborhood analysis to determine the Highest and Best Use of the Subject Property as vacant. Through the Highest and Best Use analysis, we determine the issues that have an effect on the final opinion of value. To determine the Highest and Best Use, we rely on information obtained from the data-collection process. The fourth step was the application of the appropriate approach for the site valuation. No approaches were specifically omitted from this appraisal either by the client or the appraiser, The most reliable way to estimate land value is by the Sales Comparison Approach. 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. Since only one approach to value was used, no reconciliation was needed. 13 � Scope of Work The authenticity and reliability of representations made by others in the data gathering process are not warranted. We have taken due care in attempting to verify the data utilized in this analysis. However, the analysis of the data and conclusions derived therefrom are based on overall patterns in the marketplace rather than on specific representations. i 14 ' r Neighborhood Ana/ysis 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 Jon&Mn Oickinsan State Park � ;. �� N ��� � b � � 5 'p6 � � . `.�,� i^ . . : .. R��s9 A t 7 a n t i c � � - \ . bWaY Hdl Gate ,. � _-. �r�,��� � o aia. U c. e a n Courd � _._..__ ............._...RWer4.00�niry..�,��.._....Y._LUie_kd . . ... . � ....... ............. .� n ffi a o � '� SUBIECT . �3 � � ��� " m t � � Racro-dion Dept � �� p � � ' 1 � p N . Tequeg� E_Mack Dary.kd ............. � � ... _ ......... �' ........ _ _ ,.� . ....._. .._..: � � m m � 5 Jupiler Mlet \ & '� Dr . Calo�ry Roebuck Rd ° . Rood � `� � . Irnliardorvn.R� �, � � ` � - _ ��,� � �4th St a CeMer St nta !?a 1tB � �B j ' . � �{j 1 �. �7Si St � -.� .811 .. � � ' S V � y 708`... .-: -- .- � "{5,*��q_�. Wsv� �aMOMm RdW IncA P E � � !�Y'� �OB�.. . "[R �VYII fZd .,, E Iiy,�,�OWft ({� A1A m � . _ .,.,, v UPQBf . . . . 4 � ' �y � w Park� 1 \.: � ;,,, m 5th St � . ��'��t'h � . Carla� C ' M O]005 Mcrosoh NmElor ¢s s� sers. f�N ri hcs reservea. ��• 5 ;;�;f o �' ° � e Y �a {? Tmey Penna Dr ��haven Park 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 � Neighborhood Ana/ysis 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 mobite 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 r.� 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 �, 5 Rnbeit St �. aWingo:St ; = R+ � Russell �t , plt�1J r� � Ptn �. N Riverside � {n y :`• Ylfage Blvd � s t �y' :' � = ' Id � ' � a • �reCin t�neN � � r. � " �k°� Y'�att#� Shay .r� �' , • � � ',� � � R �� ro �y� E# ; ;� � � �: �i'i - y 9� —, i 5 '. �: . ° o Q. ' '� � m SIR�CT � .. �,Dauer Rtl � � o � ` Te4uesia Llr 9I�auaA� . .._ i ' R �. � � . n � ; m a n�a, - Beacan �t � # � � -: 6ndge:Rd � � � ' Dnrec RC ' Church }�d '� � m ` � v� � - FranklinJ�d m� p O'. o �bcmttlt � ETO ; s r; �ti ,� - _ _ g oy__ n �. *,1.. :.:: �, .. . ' ' . . : - .. Windsnr Rd W � 6 �, VYindsar :Rd � � Beverly Rd W �'� „ v �+ � � Rd m�' °�' 4 m nz �', �. c 5 C p�` � �. F a � � . ..j y SK N � `� � Jupi[!r . m � �"' 6 pj �W < �> � � s. s .�±+ _. s� _ ��r n M M` oh . a'nClor rts s Nas�:'PII n� Inz nserve0. �� � - .� , _,e,:, ., ,,. Zonin4 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 �� 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. Concurrencv 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 9J-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." i 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. 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 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 r � Property Data Parcel Mao ��r� r c?F �%CC?�}���;�`'�°a ���� o, �C ����[�(�3 l`��NG iN 5ECTI(�N 3i;. TOWNSMiP 4Q SaU i'H, R�NG� �3 EAST Vi��.Ai,� OF TEQU��STA, FAIM BEAGH CC;�tNTY, �i�pR�Dk AiJGUSF 20;)1 SNEET 2 OF 2 �,� .. �..—... _ _._........_ _ _......___.... _ .. _'__ _ _._..__.._._. _ ..�._...__..... _ _ r �,.r �'���d 00� dS �� .~ �• .... __. __ ..._N $9'4Y40' E 199. �. 4� • � ,�•- O<�,.i5:._ _...� � � _ _�... ....._ . ....... ........ -- -�'�� , p .✓ 1.6J.{6' 3Z.t6' ,� f18.98' _ _ '_.._-..__ .. ' S`�� ° � v � w 4 y��s�'� wnys�s' ��,S.,R -- tI .�". '� j ` � �$�� t,�• / W Y � O' � �� � \ w,r� �f � . Y � �..� \5 y+Ms . � , i � �i � . �, /' 1 . �,om 2 3� 3 � � . � a,c�.F, « a� . ,> m . xwu..i�a,x.s,�._ � e; r^' J = � .r 6 �� g � E �d � � � �"� � N . . . ..- �,a I N � <rtn�e �z tr�'�' � ..e �e R�70.00• `N u.a�.• ,.. f . -ii' / '�� �� ix a�ass��e• . ��li �' ���; q w % � ` � 'd ' � !�. y'�� n�cauaix� C-3J.i�•� o o�ie "i � - r l � � / ' �/�� � i-saor � - e � ��,; � � � `. .,.� �� f � r� r. � 2 .7 � 3 ' t `� �' � � �., � W b �- b1 r + � `l. - . .. - �F1 )p SVS { 09DT ACS) � ' ,y .. ,>Y r ' 1 ai ffi tr2.�'. y ¢ �, �� . i. . 1'! � . &' "J �f' jpN , . r: . �� •. ; b n. .. 3� . 1 s� a. � 1 F �i .� . .� � 9 , .. . �,y�'� �.l -` ri �laDiJ2 S� i U7 nCt231�t'� � Y I z .. � �g � �.� �' L� � ��_ �. i � � �Ct �,� i ;a `�� � NEi'{6'SS�C 3b i5• . . . , � aB � f I w � i � �rcilr�'!'415YRr W r ...,..,.. .. _ ...... - � - r .�� � �.,� �'� �N.,u. �� E! e � �.., TMTt�"PYTGt.ME��O:r '$ � _.- L J "��'- etlb"�' � t�-�"`:�-'�� - i � :w� .� � o " , �. ' � '8 i .:.=m � � � � �� � �: v ° .R'�• � ; sessras^w i � xaar � n � 1. a � cutu�xt `� � ._ .. �.o , (� J��' -,+�� � j� 1l1.0.3' i � E 4 � �� S� I /v, `� f � � 4 E . � 'F' � ' $ � i ti ii . .: C ��� ► i' I �� 3'y' :�i 3 , � ��"� ,+1� P"�,, ' �n.`� I i \� -. ° 'T T ' n� � ,i, � Y � (� ` ` � � � � g f � � I ' I � i �� �$ �.�r R�IJ0.00' a"� �� , �� i ' f °' "+ �� �j� n-�ese'�e' � �� . i � : -�-' m..zvn.a:i�ea � r � �' F'J�hr;�L 1 -azor n.�o.ar i: r�! � ,�..��z:w�h� $ Ff i 3 o-ie��e• % i � �., ; ~ . � z i,� ., G ��° is see �: r i.ra4 Kct) � �! 4 �x� �•i i s i� � 1 E : a . ;E: ' S2 LI �' ,y t�' ! N F; E � ' , t _ � a r4 ^. g» I V $ � .., '.. -." 7 � ~ a � � ;# � �._,,,.,�%°e , $ � � s (as�s�s x .� r..,a acx> „i'°`,aw.'. . ����� i �° z � f � ` � /utm �tii '�`'�_� � � � n � ~ jn`i i N � I .q. 4 � �$ �.nKw-r �p�f f. - - . � �s I y i� �} a �}''�y . "{L,�J�P� ` F JIIS21' 110.C7 ``� 203.2F' �� j � S 89'AS'S5' W Si8.42' PuT'9alNOMY P.O.B:" � zes qi �tIDGE ZOAD _ . _ ...-.--�... _ � ._ _ .�_.._._. _ _ EM A!M' PFR OFF tt66. PC 562 :' rp rr xu� .,.. _ _. _ ...............� _ _ __ _. ................... ' , �.+a w ku'" UtI�It12S All public utilities are available to the Subject including sewer and water provided by the Village of Tequesta. AT&T and FPL provide telephone and electrical services. Topographx 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 a problem. Parcels 1 and 3 are improved with a community park, and Parcel 2 is improved with a parking lot. The topography appears to be sufficient for development of a variety of uses. 20 � Property Dai�a Census Tract The Subject Property lies within Census Tract 1.02. �_.__ � _� �,.��:�_�� _. _.:. ��_=.�W. _ ._�r��__ , __.�.��._-_--___�--..._W - � � MSA Code: � State Code � County Code: Tract Code: ` 48424 ;12 i099 �0001.02 � - � _ . _ _. _ _. ._ -` _-- �— __ _ _ _ � .�. - ___._� � _� .....:. � Summary Census Demographic Information __��-------_-_� �___ __��_�__ --_=- - ----__ ---��------___.�- �_ � _-- � __� �__ �- �� � Tract Income Level ; Upper � Tract 1' 2508 ���� ° ��� Population ! a , � � �--._ ____ _ _�._: � m��: � ..��W �� _ ����_ � Underserved or Distressed , No Tract Minority i 3.35 j Tract � % 3 ....._ _ .. .. ....._.::.;::.._........:._�f ._....:�....._.�:r. .. . ._ k � 2 8 HUD Estimated � � � MSA/MD/non-MSAIMD Median !$66,000 Minority j 84 � Family Income � ���� Population `I � � ___._�:v______. _----- , __ --- �_____ ._ ___-_ �------------- �_- i 2008 Est. Tract Median Family � Owner- ; i Income � $92,044 Occupied 997 ; j ,� Units ` �s � .�� __. �:�__ _ _ ...� �-__.._ �_ � .._�__ . _�.w __ �� ��. ___�. ..._� � 2000 Tract Median Family �$75,000 1 to 4-Family � 730 � Income _ � _ � Units ; �a��_�;e�d ��.._ � m�n__ ._ _ E 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-OOO1C) 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 c a Property Data Assessed Value and Taxes 2009 Assessed 2009 Folio Number Allocations Value Taxes 60-43-40-30-47-001-0000 Land $603,371 (Parcell) Improvements � Subtotal $603,371 $16,997 60-43-40-30-47-002-0000 Land $621,125 (Parcel2) Improvements �0 Subtotal $621,125 $16,666 60-43-40-30-47-003-0000 Land $517,177 (Parcel3) Improvements �0 Subtotal $517,177 $14,568 Totals $1,741,673 $48,231 Property Historv 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 ]MZ 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 r� 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 su�cient 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, tittle interest is expected over the near term. Properties in the immediate surroundings 23 � Highest and Best Use are fairly wel{ maintained and occupied, and the area is weli 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 r Land Va/ue Ana/ysis 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 c� Land Value Ana/ysis 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 RecordID 7324 7228 7360 7275 7366 si e o 1 t N o Par si e o si e o E si e o AlA, 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 Jupiter Branch Palm Springs Jupiter ]upiter W Palm Beach Rd, Jupiter Appraisal Date Jul-10 - - - _ _ Sale Date ]an-10 Dec-09 Dec-09 Sep-09 Current Sale Price $260,000 $1,253,000 $1,375 000 $420,000 $1 990 000 Zoning MU CN MXD IOZ (C2) GC C2 Land Size - Pcl 1 1.i94 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% Ad� 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% Ad� Price - S ft $10.32 $23.42 $14.91 $12.40 $14.52 Other Adjustments Lotati0n 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 A justment 2% - 0% 10% 15% 10% Adjusted Price/Sqft $12.38 $16.39 ;16.40 $14.26 $15.97 #10-63494 Average: $15.08 Maximum: $16.40 Minimum: $12.38 26 r Land Va/ue Ana/ysis Comparable Land Sales Map �� Dickinson � "F:, State Pa�k i�;�athar. Dfcki�son �,n A R � Sf P � UB]ECT — ' _–_l , p' I �a _ __--_ _. _ _-- , � Comparable Sale 3 , arks and �i� r � �_, 6 � Recreation Oept -- �- � _= �os Ken � y �e �tt2r St ; � --_ - �Jupit�r , ; . � �� � _ - ___ -- _— --� ���p � �._ 1 D , Comparoble Listing 5 � ; y ' � � j _ _ __- - -----' �itne * Z` E +t ! � Y Juno Beach ', Corrq�arable Sale 2 j. ' i � , i ��viati�on ---� � s� a1m Beach Gardens � �as � T F. ` , � -o� \ �� sos 811 North Palm 1� __. 1 ' � Beach _ ___ - F L O R 1 D �-.- sosa == sso =' � ' ' 1 Lake Park Orange �Ivd , � ` Rivie�a Beach _�,� A t! a n t i c � I �r, ,� Palm Beach O c e a n �; � (�� � Shores } Z 7D2 G '' I Mangonia Park (! �i v >. i i L �� � i ���� ti_ ��caa B a hPalm � Royal Palm �� c ioa _ Beachp_ � —, �. io4 �- Pa lm Beac h 0 � F� A L M B E A C averhill � � �_ r – � -- - -- _ ! „ �: Com raMe Sale 4 1 � 441 �:- . _._._.. � - � 98 ` / \ v , Ai,��N��a� ', Comparabie Sale 1 �d Wellingtona -.-� 882 �� �palm S � ����e Clarke Shores P� �9 - i� �� � ' Greena�es �n j _�__ . ;�� ¢ � � _ �� , _ z o ake Worth � Far and Rec�eation � Atlantis �' t ° 'South Palm " � � Beach 2� ' � r.' Land Va/ue Analysis � Land Sale No. 1 � " - b 'r�'.'r 4 : �, .. . .. w , . � •-•� + m. - s . � _ ,�r "e` ,%.�r3� 3 � +^�s"%�-�£� . . . 'w� ���� � � � � � � ; I . s � �"'�� � - ar�-- �� ' � ..� �..w...,��.. _., ..�„.:� �. �� , � , � �_ - � ��y +� ;,��' �: s �� � . �;� �`' � � � % ,f-� r ' . � i ���� � ��. � �� f � '�� ..t .: , , , � � � � � ';�, T a � � ' _ � � ,n�� '� � ;: _ � � � ° � � �,,,. , �r= �` � � ;� �,,�� ID . ,..���. .. :. ".A,"°' ? yaia � } �� ' — �,.., ri1:1��� � "�'' .. � .,� - '� � � � � � -r � "�� � �'� �... . . - ' � . . • � � �e;,. , , , . _ . . . .. , . � • . _... �rr�- " . .. � .. '� . � . � ,� '��If'.t. - �.�-� • '� � �� �....� +w.+.'+�..-.i,,.�.,y�E �'" . . . � ,..� � �� � � w' a �` . �. � �� � �" .a'. C � .. 1 _ . � �C,`� i � � � � _ � ?� � ���� � �� r . � �' � . �'' � �'�^� �' �'� � ' '�°A".s3. f ;. ... � . .. ..ar _�_. . ., . . . _ �c.. . . Pronertv Identification Record ID 7324 Property Type Commercial Address 3956 10th Avenue N, Palm Springs, Palm Beach County Location South side of lOth 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 ' I c .? Land Value Analysis Land Sale No. 1 (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 c Land Value Analysis Land Sale No. 2 : �� � _ _. � y, �� � ,�^ � � �� � '.�� � .. � ��� � � � �� � �t�. a�a� �►�.� x # " ,�'�"° "'��.. ��U � c�� � � ::� � .�"� '�" � . ��� �., ti � � � � �-�. ,� � r ��. J � � �� ' � ,�, ���, �h 3s �,� � �+`��� � �-�\`� ��,� � i.:;� ° � � j �� � � , R � . � n,�� , . ��; � � i� �' �.����, � , �• '- � �y, � �.�:� �`ti�� ° � - � -- s � ` �, '-'�`' } r. � �: � � � ,��*= ,� � : a � - � � �> �-: „av�� •` � �r '': ' ��_, �,... , . k� e � � � � � •'�,. � y . . � � � � � `��� ��� � � ti� � � � '�, " � . � _ � .��. ' �` `�� . � '��� '�" � .. A �. � - � � � �� �� � � 4. � � � � e � ¢ r ��..7in°S.°' � � �:'�. � '�,*� ': . ,s � � �' � �,. . � ��- W ��..�. �_� � , � � ' � .� � � "`,. � � .. .� � � �. ti ���. � � �' 4 � � . Proaertv 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 AI I Shape Mostly rectangufar 30 �� Land Va/ue Ana/ysis 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 Bidg. 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 �� Land Va/ue Ana/ysis Land Sale No. 3 - . �g� �,�;...,x�.� 5..�.� � - . . ., ;.` �` F�� , ; �, - � , , � , .�,.. :. . . , Ilh�� < �. "r� _� _ � � � � � � � � �, � , � � � e �r,..�� `'",,.��.,..� �, ! �', ".. . ` d .+dr� fi , "ba,�,.° � 'F � . � .� . �� r� � �.: � -��' - � , � � �,� a�L'a. Y.?� � - . � — � . a - y , r'" ' :'sts� "� � - 5 -a, „g ' �.y�'�yq k ,�,� �� � fr��,. �l�� � ',�t ` • �-�" � " '�� 1.� �L�� ,� � � � �-� y � • '� � � � '�^� �-��, ° � � � �� � . �� � �, � •��,�' �� � �`� . � •• ` � � ` � � �s. � �� � ' — - � ' �� �`�' � � , �� - �� '�� `" � � �� ' � ?�' � � � _ � �F� ,-a'� ,€� �' :, �' ' ' �"� � t�', � � � �.�. ��t }r � �. � �'�'+�+��. ��-�`- w � �' $ti_ � � �+R, � Y i�r ; - .,i.. � �, � �" � w . � ��' + . � - �, � � � �� �` � "` � � �» p "ae �a� k : ,�'� ; �` ' � . . � . . � � �' �, :, � �>. � - • " �- � � ? ` � � 4« �� � 4 �. . , � * •, � � . . . n . � ��������I� �M�.: . � . . .,, �Ip . y � " � : ??. . _ � � � � - � - ,,. �. . . .p" y� . _�� .� _ .. � � a` � � m • �. - �, � `� C � � �, - � . , �Y�. , : . . - .. '.,� �.." , _ :;:d . .w �... . ff ��� '#w� a'�,� � - . . ° s�t-'.l! Pronertv 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 & JEC, 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 r.� Land Value Ana/ysis Land Sale No. 3 (Cont.) Land Data 2oning IOZ (C-2) Utilities All availabie 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 R 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 Va/ue Analysis Land Sale No. 4 � � � _ �. , < i � � '"� '� --�_--•.� ` �' . 4 . �� � � , � � � , , � ., � � . . . ` -� • ; � � -� = ry � � �� � � "� �,�, ' �� � .: -. � ._ � �' r F ' � � ' s �� :�� ��t �_ `• �a � $ � � ., . ,"._.__._ ,�� �� � � � , . � .,. �- ,� � ��r�..�'.s';� �.� �(� . > > ` _ � � � { � . �.�� , .� € - � ° , �� . .�,.�,� r ... ., � r '� , _ � "�� '� f` .+r+i .. �„ — -�,. _ � ss• � .: ` � � . .' � . A � r � � ,. �m.�M�� .� ;,�;¢';�, � �� � _.� z �, � : �" .�+� �.�. ��, , � � �. � � ��.� "" � �� '. s �' ' �, � �� , ,.,.. � �..—��' �„ ,,�►�� ' � � . -�,,,� , � �,�, �,, � �' - - � �,°�►. � �,� � ,� .�� .. �� �� '"`°�� ` �{eml ,.� k � � �` � � . _ �� j�,��-,�� s. ° � . , ► � ��� � ¢ r � � - �. . '�j �.�� ..---�r ���� .. ��' - ' } ° _ ` � � .. _ - ° � . • � . _ , #4 `ss 'f�t ° `' �. _ r�,� a�wns �� s ` � "� ' . � � � ' -t.,,� : , �, �; , � * ������ � � .� . . � :..,., �.'{�, �- �.b �:� � , � .^ x ;:�s�. s� � - - . ... �. � . Prooertv 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 c � Land Va/ue Analysis Land Sale No. 4 (Cont.) Land Data Zoning GC, General Commercial Topog raphy Level Utilities AI I 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 $13.77 Remarks Purchaser owned the property to the north and assembied this to his holdings. He did not think this affected the sales price. 35 r Land Va/ue Analysis Land Listing No. 5 ��� � �� '�� � �� v � � . .� y . � ,� " . � t �* ..�' � �# � , , � ,.. �� ' � � � � �� � �?� � � y i � �� � ,%,�SVV.ln' .. *M�,dII, .. � ... Ac �.. �.� j.� � . . � _ � S �� ��� ��+� .. �,$� �qe �° �y"�P. � �l. S .�°`v .� p . ,Xlp'� ' �`.<` , .,b."� - �... ' � °'�"�° ' � ` k �� ��. � ,g, � � � .d. '�, _ $ y x_.P � � 3�,e: - 91� " ., y.� - � AE•':� "�"". "�. � '"ae` �rw, "� �;�� f , � i ,. , �' "t � - �:�, ^"^ ^�'; ,. � � y°` � � �"x,_ s�a ""�"r . '�` . � *' yF �r ,.= s - a'+"� dR ' b "° '�_. � _ !�.� � : Y� . ^'4. � � x;� ���tk °'"5.�,' i Y^.� � �,,� � _,.:�� ��. ��, - �§ `� _' T . :,s . ,s# t �� '�'� "�"Ar > _", �. :�i� . � +�t q ����: � s.. �, �� µ i �` � _.. +�s - �. ` � � �w.� .m.�s`- � � , � . . � ' 4 � - a�'" ..:F , i. 4� ,�'�-� �� � � �` ^ `" � .� � .�z ..,, � � �,. + "" � �:�. - . � � �.� ��� �'^ � k ' ��� � � `• ' � .y, .. �' ' � Y w � t �� . ��:- � ' � r x �= T � � . �;� �y � � . . . �� £ --� . �� . � _ ���' .. �_J �' `�� � �� � � � � �/� � . r : �'.:.�a.�.,.. �� r � _ � '� ��� �� �� � � '� �' �� _ , � �r , . , � � �u = .�� � � _. _ _ . �, , �, � � ,�, :� ! `� ° t. ��'�� � _ � �' , ;,� � , � �1 .� ll� , ��... p : . � . . a �� � w � "-�:� ��� a a Proaertv Identification Record ID 7366 Property Type Commercial Address Jupiter, Palm Beach County, Florida Location East side of A1A, 200 feet north of )upiter Beach Road TaxID 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 ]im Murray Listing Price $1,990,000 Land Data Zoning C2 Topography Wooded; high and dry Utilities AII available 36 �a Land Va/ue 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 ]upiter 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 �a Land Va/ue 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 Equivalencv) 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 Va/ue Ana/ysis 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 QualitX 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 �� Land Va/ue Ana/ysis Conclusion - Land Value Analysis After adjustments, the data indicated the following: ADJUSTED $/SQFT INDICATIONS Time Adj Net Adjusted Sale $/sqft Adjustment $/sqft. 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: 7MZ Teauesta Pronerties Value Estimate Sales Comparison Parcel No. Sq• Ft' Value Per Sq. Ft. A�proach (Roundedl 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 c � Land Va/ue Ana/ysis 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. �nroach All3 139,292 $14.00 $1,950,088 combined 3.20 ac. Rounded to, $1,950,000 41 i ADDENDA ENGAGEMENT LETTER i �I M�� �N � to_���. Callaway & Price, Inc. Real Estate Appraisers And Consultants � www.callawayandprice.com Ucensed Real Estate Brokers Please respond to West Palm Beach office E-Mail: mrs@cpwpb.com WEST PALM BEACH 1639 Forum Place su�te 5 April 6, 2010 West Paim Beach, FL 33401 Phone (561)686-0333 Fax (561)686-3705 Michael R. Slade, MAI, SRA, CRE St.Cert.Gen.REA RZ116 Daniel P. Hrabko, MA1 Mr. John M. Zuccarelii w sr.ce�r.�e�.ae,a az4s )MZ Tequesta Properties, Inc. Stephen D. Shaw, MAl 209 Tequesta Drive St.Cert.Gen.RER RZ1192 Tequesta, FL 33469 FORT P2ERCE/STUART 500 South U.S. Highway 1 Dear Mr. Zuccarelli: VIA EMAIL: mz ro @aol.com suite l07 � 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. st"art They are further ide�tified 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 It is our understanding that the purpose of the St.Cert.Gen.REA RZ662 appraisal is to estimate Market Value. Stephen G. Neill, lr., MAI S[.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/INDIAIANTIC 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 Indialantic, FL 32903 appropriate for other uses. Phone (321j726-0970 Fax (321)726-0384 The fee would be $3500. It is our policy to request a retainer and curas L. Pmu�ps, MA1 $1750 will suffice for this purpose. We will provide 2 originals of St.Cert.Gen.REA RZ2085 the final report. eaca w►roN We will have the report completed in approximately 2 to 3 weeks Phone (561)998-8088 rovided that we receive our authorization. Please be aware Fax (561)686-3705 p y Danie! P. Hrabko, MAr that delays in our receipt of information requested could St.Cert.Gen.REA RZ48 postpone completion. FOUNDERS We need you to supply the survey and/or legal description, if Joe R. Priee, MAI, SRA available and any other information you deemed appropriate. St.Cert.Gen.REA RZ555 Robert J. Callaway, MAI, SRA Jun i 8 201 0 1 3: �5 ,1ht� '�"fZOPERT I ES 5F� 1��''� �'C}�(l p. '7 Mr, Jahn M. ZuccareNi April 6, 201a �age Two Zf the above is agreeable to you, please slgn below as our authariz�tio� and return Et togekher with the retalner and the infarmat�on requested and we wili begin wo�k irnmediately. This agreement is subject ko the Agreements and CondEtions listed or� the attached pages, a copy of which should also be signed and retu�ned to us, Our work wil{ be dane in accordance with the Appraisal Instltute Code oF Ethics and Standards r�f Prafessiar�al Practice, Thank you fbr the apportunity to be vf service. Respectfully submitted, CALLAWAY & PRI�E, ING 1��� ` ` ' �4�f/w' � � Michae! R, Siade, MAI, SRA, CRE 5t,Cert.Gen.REA RZYy.6 MRS: Art�chments Client: Acce�ted By`Oate; Signature �,��� Date Name and Title {Printed or Typed}: �bd�f.� �-cJ c��s-s�"c.�, �� �.✓r✓��-. Client �ed ID# or SS# ; �� �` � �' � � '� �=� . Quotesl0fzuccareili LEGAL DESCRIPTI4N �RB 1 t0��3,� Pg �'7 1 . �"?C1�lbl'T + �t� r LL•'GAI. DESCRIP'I'iC�l�t f't�ttCEL NU. i I.,YING tN 5EC'I'IC?N 3t�, �`E'C?VI.�NSI��1P 40 SOk3T1-t, RANGH 43 CAST A f�ARCE:L. (7r LAND t_YtNG 4N SCC`!'ION 30, TQWNSE[tl' 40 SOUT(-(, KANGL-: 43 EAST, i't1L.M t3f�AC!-I COUNT'Y, f�LORIDA, f3�fNG M4RI; PARTiCUi_ARt.S' �C:SCRi(3ED AS' ffl�,L04�S: CQMML-NC'tNG A'1' THE POlNT OC (NT�RSECTtC}N Of' TI-iE CEN'tEltLIi*IE OF STAT� R.4A[3 NC?. 5(US HtGNWAY N0. !) WITH THE SOUTN LlwE pF SECT[ON 30, T'QWNSHIP 40 SOUTH, RANCrE 43 EAS'C; TNENCE NORTf-t 03°54'SS" EA5T (BASIS t��' CiEARiNGS}, A[.ONG TF-iE SAID CENTC:R�INE,'A UtST'�1NCE OE G9S,SS I"CE'I' TO A POtNT t)N Ti-[C EAST�RLY EX1'ENS[ON Q�' THE NORTE•� RiGHT-OC-I�JAY LtNE C}t' BRIDGE RQAd (PLR DECd S�UK I 1 GG, PAGC 5S2 OF T!-tE PUE3LtC REC4RD5 OF PALM �EACH COUNTY, F[.C3RlUA); TNENCE SUUTH 89°45'SS" WE�T, A1.ONG SAiD EASTERLY EX�`ENStpT+t AND SAta NOR.I'I-t R!G[-IT-OF-WAY [,iNE, A DiSTANG� C1C G73.37 �'EET TQ THE PO1NT fl�' BCGII�tNtNd; TNENCE CQNTtNUG SOUTE{ 8�°4G'SS" W�ST, hI.�NG SAtO NORTH RlGHT-OF-WAY L,tNE, A DiSTAN�B t}F 203,2I FE�T; THEhIC� N{)F'FH 00°13't?S" WEST, A DiSTANCE C?� 224.5? 1��,E7"; TEiENCE N{3RTH 89°46'SS" EAST, A F)[Sl`AhICC QF 2G3.52 FE�T; THCNGC 5t}UTH 18°43'_t3" WCST, A DiSTANCE OF 87.10 FCCZ' TCl Tt{E LiEiGINNING Of� A CURVC, BE(NG CONCAVE TC1'E'HE EAST AND HAVtNG A RADtUS C}F' 13f} �E�T; THENCE S{}UTHERLY ALC3NG THE ARC C)F SAtD CURVE TkiR4UGH A CENTRAL ANGLE OF t8°Sb't8"', FQR Al�i ARC LC�GTH 4F 42.97 FECI';'1'I�tEt�tCE 50UTH fl°13'05" �AST, A DISTANCE O� 74.49 FZET; THENCC SL)UTi�i 44°dG'SS" W�ST. A D►ST`ANCE 4f� 35.3t* FEE�' TC} TNE PC?l;�T t?F �EGINNING. ...._.�....._....._.,.,.. .._ .. > ?B I Q�'9'9�� Pg 7'� (, ' ' EX�r��T '�� � � ,: � - �.EGAL DESCRIPTION Pt�RCCL NO. 2 � - LYING 1N SECT�QN :i0, � TC7WNSHIP 40 SOUTH, Rfi�NGE 43 EAST � A PARGEL {)F LAND LYlNG 11V SECTtC?N 30, TClWNSNIP 4t3 SCIUTH, RANGE 43 � EA�ST, PALM SEACH COUNTY, FLC)R[t�A, BEtNG MQRE PARTtCULARLY � DESCRIB�D A5 FC3LL()WS: � COhtMENGING AT THE PO11�I'T t7F INTERSECTlO1V OF THE CENTERL[NE QF � STATE ROAD NO. 5(U5 HIGHWAY NO. i} WCTH TH� St)UTH LINE QF �, SEC't't�N 3U, TOWNSHtP 40 SUUTH, RANGE 43 EAS'T; THENCE NCIRTH 03°S4'SS" EAST (BASIS OF BEARtNG5), ALONG THE SAIU CENTERLtNE, A � DISTANC� UF 695.55 FEET TQ �A PUINT QN THE EASTERLY EXTENSION i0F � THE NORTH R[GHT-OF-WAY LINE OF BRIDGE ROAD {PCR DEED BOOK 116E, ; PAG6 5S2 OF THE PUBLIC RECOR�S OF PALM $EACH CC3UNTY, FLORl�A); = THENCE SOUTH $9°46'SS" WEST, ALOIVG SAID EASTERLY EXTENSION ANU SAiD NORTH RIGNT-tJF-WAY LINE, A DISTANCE OF 876.58 FEET; THENCE � N4RTH 00°13'OS" WEST, A DISTANCE OF 224.57 FE�T TQ THE POIN'T C3F ' B E G I N N i N+ G; T H E t V C E C O N T I N U E t u t J R T H 0(}° 1 3' 0 5" W E S T A C 1[ S T A N C E U F � 96.49 FEET TO A PUINT 4t�1 THE 5{3UTHERLY RIGHT-OF-WAY G1IVF C1F � � TEQUESTA DRlVE �FER OFFIC[AL RECORD BOOK fi625, PAGE 302 OF THE � PUBLIC RECORDS OF P,Ai..M $EACH COUNTY, FLORiDA); TFIENCE AL�NG � SAt[� St7UTHERLY RIGHT-QF-WAY LINE FOR THE NEXT TWO (2} COURSES, N{?RTf-I 67°59`40" EAST, A I315TANCE OF 231.34 FEET; TO THE BEGINNING 0� � A CURVE, BEING CUNCAVE TC� TH� St)UTH ANIa HAVING A RADiU5 �F 305 � FEET; THENCE Nt)RTHEASTERLY ALOl'VG THE ARC t}F SAID CURVE THRt}UGN A CENTRAL t1NGt,E f3F' 9°52'46", F(7R AN ARC LENGTH OF 52.59 � FEET; THENCE t?EPARTING SA1D RIGHT-QF-WAY SOUTH Si°!4'19" EAST � ALC?NG A NON-RAI�iAL LINE, A DISTANCE OF 38.83 FEET; TNENCE SOUTH � 00°13't15" EAST, A DISTANCE OF 68.97 FE�T TO TF-IE BEGINTJING t�F A CURVE, BEING CONCAYE TC1 THE WEST AND HAVING A RADIUS OF 7Q.00 �EET; � THENCE SOUTHETtLY ALC?NG THE ARC OF SAID CURYE THRC7UGH A � CEIVTRAL ANGLE L}F 18°56' 1 S", FC?R AN A.RC LENGT�-I OF 23. t4 FEET; � TKENCE 50UTH 18°43' 13" WEST, A i7ISTANCE OF 86A9 FEET; THENCE NOR"TH 89°46'35" EAST, A DFSTANCE C3F 2b3.52 �EET 7fl THE PC}i?�JT 4F BEGINt+1ING. � � SAID PARCEL C4NT�IN� t.(7022 ACRES MQftE OFt LESS, SUBIECT'TO � EXtSTiNG EASE�iEtdTS {)F RECCJRQ. 1 y � � � 9X{Hr1{CRU6!-P2.1k:ti:tt ) � t � 'RS 3 fd'992 Fg ?t3 ��� N�re �'riY N. 41It.iSET1, IX.EiiK RB CQUMY Fl. I.�Ce►L D�CIlIt'I:tOTt �F ?TQU�STA ASS(3C[ATBS rARC�L A PARCEL flP L.AND LYINt3 IN SECTIf�N 30� T4WNSHIP 40 SOtJTEl. RANaB 43 EAS'1'. PAI.t�! BBACH CClUt31Y, FLCiRIdA. HBt�tQ MORB PART`tCtJLJil�t1.Y DBSCltiBEQ AS FY}LLAWS: � FWt�M THB POtNT OF M1ER,S�ECTi4N O! THB CF�17Elt I.II�18 OA STATE IIQAb NQ. S (U.S. HX'lHWAY 1V�1. ij. WtTH'C� SOtti'H Ltt�E OF SFCTSON 3d,8EAA N�?N 03a'�f�11'33• EA3T. AIANO S�AID Ct:M�ERLI'�15, A DISTAi�tt��'' 69S.SS �Fl�T; 1"�iCB SLTAR 8£�LtTH Q9Md'SS" �YES"T, ALUNti 7H8 NOR'fH RI4Eit'-OF-'�+AY LiNE OP BRIDt3B itOAd AND TC9 BASTBRLY BXT"ENSiON, A DISTANCB Of �Ta3i F'E�I' TO'tNB t4IIVT' C?B BEQtNN[N(3: T'HENCE CC?NT7Ntl8 80tlt�i �9'o�sS�' WFBT, At.tfNO SAI!] NOR'f'ft ttIOHI'-0E-WAY LtN6. A DiSTANCB C1F l433 F8$T, TO'�E 1NTBRSEG"tt�l W1TH TH� �+s�na�.�r wattrr•o�-w�,r �.nas o� ow ancffiHCC�c�w�v. �ss �cau�a �rc �x� PLAT 80(?K S� PAaB t�6� PA,LM HSACK t30i1N"!Y RT@LIC ]RBCO�RD& ?HfiNGE HEAR NOATH S5oI3'43" wBST, ALCn+id 9AtR Ha19�l�t.Y RiOH7"-C1E-WAY LiNB. HEINO TW5 CHCIRD OP A CURVB HAV [MD A MDIUS OP' 23.0 F68T. A DtSTANCB OR 2'7.93 PE�i`; THhTiCE BB,ARNORTH Z2of4'ZO" WF.'�T. ALCZNO SAID� BAS't�'s7tt,Y Ri�tiT-0E-WAY L1N�, A DIS1'ATtCE t�F 219.E7 FE�Z; TN�NCB CQN'!'iritfg ALbNQ 8AtD EAS'fl3RLY 1!(CwHTT i)F•WAY C,INB, QN A HBARit�1t3 OF MORTH 22obS2'�' BAST, HBiNt4 THS CHt}lt� qF A CI1RV8 HAYIN4 A RAl'HU9 OP' 2S.OQ F�BT, A flI9TANC8 OF 33.t3 FB8'f' TO ?H� iNTFR3ECRdN WZ'!H TNE S�OVTHF.ltLY WCINT-0F WAY I.iNE 4P TBQLiE3TA DtUVE; THBNCS S�AR NOR'i'tt 67059'40" EAS'i', AZA�riiCi B�AID 34tl71�PRI.Y RICiKt`-0F•WAY L1N6. A D[ST/INCE QF 200.25 F�Si; 'Tfit3iVCE HEAR SOVtfi Oaot3jDS" EA.ST. A DtS�TANCB OF 326.3T F88T TO 'I7� PQ}NT QP HFAIM+t1Ntl; SUS�ECT'IY? AN BASEM�'M' UF TH6 WEST lO.Ob FEET UF ?HE ABO1B DESCRfHED PROPERTY CqN7'AM1NC3 2295 SQtJARE FEF.T (QAS ACRBSj MiDRB t?R I.�S9. SA1D LAND3 St'CtJA'i8. LYtNO APID BECNtti itd PALM HLACH COtJN'tY, FLORIDA. SUH]P.C"!"1't3 ALL PERTLNENT MATI"ERS QF RECOitD, THS AFORBSAID PARCEL CUN7'ATNTNCi .;�_ ACR�3. M4RE 4R LESS t�� t�UALIFICATICaNS � � _.._...� �ualificafions - Michae! R. Sfade, MAI, SRA, CRE Prnfessiflnal Designatians\Licenses\Certifications Member, Appraisal insfiitute, MRI �esignation # 6864, and SRA Designation Member, American Society of Real Estate Caunselars, CRE Designatian Florida State-Certified Gener�l Reai Estate Appraiser RZ116 Real Estate Broker BK0128222, State of Florida Appraisal Institute Approved Instructor {1986-1993) for: Course 2Q1 - Principles of Income Property Appraisal Caurse 310 - Basic Income Capitalization Professianal Ex�erience Principal, Callaway & Price, Inc. since 1981 Staff Appraiser, Call�way & Price, Inc., 1975 to 1981 Special Master/Magiskrate, Tax Appeal Hearings, Palm Beach County Qualified As An Expert Witness Braward County, Florida Palm Beach County, Florida Martin County, Florida Federa! District Caurt of Sauthern District of Florida United States Bankruptcy Caurt Southern Florida Supreme Ccaurt of the State of N�w York (far Florida prape��ties) New Jersey Superior Courfi Geoaraphic Experience Throughout Flarida Ecfucation Mast�rs af Business Administr�tinn, Florida AClantic University E3achelor of Science, Accounting, Florid� Atlantic University Society of Real Estate Apprais�rs: Course 101 - Introductian ta A��pr�ising Real Estate Cqurse 201 - Principles of Income Property Appraisir�g Course 202 - Advanced Applications American Tr�stitute af Real Estatc Appraisers: Course II - Urb�n Properties ' Course IV - Condernnation Standards of Professional Practice Num�rous seminars sponsared h�y the A�praisal institute anc! c�ther arganizations i � uat�fieations - Michaef R. S/ade, M�4I, SRA, CRE Organizations and Affiliatians Appraisal Institute: Ethics Administration, Pask National Chairman Ethics & Caunseling, Past National Vice Chairman Review & Counseling Division, Past National Chairman 5outh Florida-Caribbean Chapter, Past President American Society of Real Estate Counselors: Southern Florida Chapter, past Treasurer Urban �and Institute, Member Palm Beach County Housing Authority: Past Chairman/Board Member (GubernaCorial Appaintment} Ghamber o� Commeree of the Palm Beaches: Board of Directars, Past Member of the Executive Comrnittee, Treasurer Ecanomic Developrnent Committee, Past Chair and Mernber Society of Real Estate Appraisers {now Appraisal Institute}: Yaung Advisory Council, Past National Chairman and Member Boys Town of South Florida, Chairman of the Board of Directors Guardian ad Litem VolunCeer, South Florida Awards anc! Honors Robert �. Foreman Memorial Award frorn the Appraisal InsCitute, i999 Alumni Talon Award from Florida Atlantic University, 2001 r,. •� STATF G?F Fl.faf?t�7A. L»�Y�._4'•Pt�S .It =�6' il ?�`�€'St+ A21P P�t)FIi; RE�d[.tr,A"T<jid � _'.l,�:.'N!1}e2 fi�.i,.l.+ f;3`I'A:.t`. t.Yk'z:?.1`Jt1L L+U �3t{;�!{i:II_C150�54_' __ _� r�. :. t . .�„�r. ; !�1 :�t.t� � l�.�'I< ._...... . -----.. _..___— ' - . __ _ _ � , _„ _ _ ..._ _. � tOj t7 ^Cl'I�i Q831F�4 i� nCt��Z15 5 _..... 'Ctter. .::i}tI' I..H i,djN�'E2A'-. �l.i�k?-i..l >'.;:+: I'iaAte3 b�F.c I& GTS3tiIFIEU tlizd�r tha Frovi�io:ia '��f �?x.��:t�x. �£�'� F9. B:{{>S.k;l�lOA CiA�C?; Ii��V :,i(),. �f,7.a :;T,AG�:� T'::°t"'!�-}!Y[< :t?f_F::;'C tla�`� :t��x cbi kL3�_.�. �i•r�. 1�E: .' `'e1L�'1 n��? �2! F� . a�il � I �;'3.kF?1:1A: .'.kit:3' r_"hliKLES 9a. "�tt4tJ0 �i;tTYt'Tc^ti4'>7i ,t,EC'tit"'7:."? Y � t�: ��,_...� v �� C r�k.3%F[tLt [sw G:.{�,. I I c.� ua lificati on� — Niccola L. El/efson MAI _ __ �. �_-___ _.._ _ � � _ _ r Professionai Designatians\Licenses\Certifications Niember, Appraisal Institute, MAI Designation #11777 Flarida State-Certified General Appraiser RZ2096 Professional Experience Appraisal Consultant, Callaway & Price, Tnc., since January 2003 Senior Appraiser, Palm Beach Caunty Rroperty Appraiser's Office, 2Q01-2003 President, Cignal Appraisal Consultants & Real Estate Analysts, 1994 to present Appraiser and Consultant, Rae Westberry & Associates, 1992-1994 Assistant Vice President, Landauer Real Estate Consultants, 1989-1992 Manager, Market Research and Real Estate Analysis, MIG Campanies, 1986-1989 Education Bachelor of Arts Degree, Business Administration, UniversiCy of Wisconsin Appraisal Institute; � Course 1A2 - Basic Valuation, 1991 Caurse 310 - Basic Income Capitalization, 1992 Caurse 2-1 - Case Studies in Real Estate Valuation, 1993 Course S10 - Advance Income Capitalization, 1994 Course 410/420 - Standards of Professional Practice, 1995 Course 54Q - Report Writing, 1996 Course 550 - Advanced Applications, 1998 Caurse 410J420 - Standards of Prafessiona{ Practice, 20Q0 Course 8�Q - Separating Real and Personal Property from Intangible Business Assets, 2002 Numerous seminars spansored by the Apprai�al Institute and other organizations Geogra.p.hic Experience Throughout Florida Arizona Arkansas California Georgia Minnesota Nevada North Carolina Tenn�ssee Texas Washington 5tate Appraisinq\Consultinc�Experkise Agricultural Land/Graves Large-Seale Planned Develapments R�artment Complexes, 8-40C1+ Units Life Care Facifities Automabile Dealerships Marinas Cc�mmercial Buildings Mitigation Banks Churches Mobile Horne Parks Condc�minium Projects Multi-Tenant Shapping Centers Er�viro�mentally Sensitive ���nds (7Ffice Buildings Galf Courses Proper�y ir� Utigation F3c�tcls and Motels Proposed Sut�clivision -Residential Ir�dustrial Properties Shopping Centers Vacant Commercial and R�sici�ntial Land Special FurE�osc� Properties �c�a/ificafions - Niecvla L. Etlefson, MAI � ��� � � � � � ..� _� .�.�._ __�_,_� _ ____ _— �„J ,• 4 � .�. � � - �, Sl`AT� O� F1,O�i�D,4 DNPARTt�v^ q y USt t a�^S� At�n �r�ov�.�s�axns, ucaU�,�xxr�N E �I,''J�ILtA R�C, $&.A'C'IS T+P�TtA 5A1. ED .��'[�NLR,9pV25t39991 � . . , . � y _.... _ ...._.,. _.. � ; �'�s`��.�s��'a�o�s'o dv�3z�a xz���s_.. .. . --------_..w ' 'i`he GLP_T2P2�1};G�iF,Ril. RT?I'�RIBS� Y � �i�iaed bg2QVa��.T9.'i���&RTIF�ED �3�1t��=' C21C p�'OVt�tC+t�� r,rf Caa:�r.ar: +�75 F9: L'�rp�za�inn datet N4l" 30. 3U20 �. � " ' � BLLF.,F3ON-' �iICCt�i,a r. � 1639 B�JR{�ii P1,14GF, fiUIT� 5 > � 9�l3ST PALN, BBACA FL 33'��}3 i CIi7tiI2L7'E G�i.hRY tt, DRA.^.a � C�V[tF't�QR .r ' '�1$CR91`;1RY ; . : � DtSP _e._.._.�..�,.._