The URL can be used to link to this page

Resolution No CRA 09-19-1097RESOLUTION NO. CRA 09-19-1097 A Resolution directing the South Miami Community Redevelopment Agency (SMCRA) Executive Director to negotiate a draft long-term lease agreement with Branches, Inc. to lease the Mobley Building Property and authorizing the Executive Director to advertise the opportunity to lease or otherwise receive the property, as required by law and take additional steps regarding the property. WHEREAS, the SMCRA Redevelopment Plan (Redevelopment Plan) provides that "[t]he Mobley Building, purchased by the SMCRA, has been identified as a potential business incubator facility. Other options for the 4 bays include allowing non-profit and/or social service agencies lease the space, or (although less desirable) leasing the space to for -profit businesses that will service the neighborhood;" and WHEREAS, to facilitate these objectives, the SMCRA established the SMCRA Business and Community Service Facility and other complementary small business programs at the Mobley Building property located at 5825 SW 68th Street, South Miami, FL 33143 (Mobley Building); and WHEREAS, the SMCRA Business and Community Service Facility has been renting space in the Mobley Building to small businesses and non -profits for 9 years; and WHEREAS, in May 2019, the SMCRA conveyed property within the SMCRA area known as the Madison Square property to Madison Square South Miami, LLC (LLC) to construct and operate a mixed use development which includes four separate units comprising approximately 3,600 square feet of ground floor affordable community commercial space and such mixed used development is contemplated to be completed by approximately 455 days from the date of this resolution; and WHEREAS, the new affordable community commercial space will first be offered to community run businesses whose selection will be subject to approval by the SMCRA Board and the LLC; and WHEREAS, the relocation of the SMCRA Business and Community Service Facility to the Madison Square property will address the needs of the business incubator program and will allow the SMCRA to focus the use of the Mobley Building on social services programs, as authorized by the SMCRA Redevelopment Plan; and WHEREAS, making SMCRA property available for the provision of social services f Resolution No. CRA 09-19-1097 recognizes the authority that community redevelopment agencies have to use or dispose of their property for educational or other uses; and WHEREAS, the type of social services contemplated will help enable adult family members in the area to work or have businesses with the assurance that their children and families can receive necessary education and support; and WHEREAS, the Board has regularly expressed support for Branches. Inc. to continue operating in'the SMCRA redevelopment area and offering free services, such as summer camp and after school care; and WHEREAS, Branches, Inc. has expressed an interest in expanding those services and offering other social services, if they can obtain a semi -permanent home in the redevelopment area; and WHEREAS, Branches South Miami made a presentation to the SMCRA on June U. 2018 and has recently approached the SMCRA Director about moving forward with its desire to rent the Mobley Building following the completion of the Madison Square project and has proposed terms which would be the starting point for pursuing negotiation of any future lease with Branches, Inc.; and WHEREAS, the Agency Director is requesting authority to negotiate a draft long- term lease of the Mobley Building with Branches, Inc. which would become effective upon the completion of the Madison Square project and bring it back before the SMCRA Board for consideration, subject to compliance with applicable provisions of Florida Statute Sections 163.370 and 163.380, which include advertising the contemplated long- term lease of the Mobley Building so that interested persons or entities may also submit proposals for the long-term lease or other disposition of that property; and WHEREAS, the Executive Director will consider proposals received in accordance with the advertisement, conduct additional negotiations as necessary, and present a recommendation to the SMCRA Board regarding the proposed disposition of the Mobley Building; and WHEREAS, this process will help the SMCRA Board to fulfill the goals and objectives of the adopted SMCRA Redevelopment Plan, including the provision of social services in the redevelopment area. Resolution No. CRA ,g9.19-1097 (a) negotiate a draft long-term lease agreement with Branches, Inc. to lease the Mobley Building as set forth above, subject to review and approval of such draft lease agreement for form and legality by the SMCRA Attorney; (b) advertise the proposed lease of the Mobley Building to provide an opportunity for interested persons or entities to submit proposals requesting disposition of the property; (c) receive and evaluate any additional proposals received regarding disposition of the Property, as set forth in Florida Statute Section 163.380 and make a recommendation as to how the SMCRA should proceed; and (d) place the Draft Lease Agreement, along with any other proposals for disposition of the Property, on a SMCRA Board agenda for consideration by the SMCRA Board, in accordance with all legal requirements. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 101 day of June, 2019. ATTEST: APPROVED: aki:O&I SECRETARY CHAIRP RSON READ AND APPROVED AS TO FORM: GENERAL COUNSEL 3 Board Vote: 5-0 Chairman Stoddard: Yea Vice -Chairman Harris Yea Member Welsh: Yea Member Liebman: Absent Member Gil: Yea Member Kelly Yea Member Jackson: Yea Agenda ftem NoA. South Miami Community Redevelopment Agency Agenda Item Report Meeting Date: June 10, 2019 Submitted by: Evan Fancher Submitting Department: Community Redevelopment Agency Item Type: Resolution Agenda Section: Subject: A Resolution directing the South Miami Community Redevelopment Agency (SMCRA) Executive Director to negotiate a draft long-term lease agreement with Branches, Inc. to lease the Mobley Building Property and authorizing the Executive Director to advertise the opportunity to lease or otherwise receive the property, as required by law and take additional steps regarding the property. Suggested Action: Attachments: Mo b_Lo ng-Te rm_Le ase_me m o_2019_N ew. d ocx Mobley_Long-Term_Lease_Resolution_2019_1_.doc DRAFT TERMS OF Lease CMCRA - Branches to 3.28.19 DRAFT-2.docx Market Study.pdf e®a ��II�' SMCRA w�.aacrcmrt�t,a �M: ww�,,.iny CITY OF SOUTH MIAMI COMMUNITY OFFICE OF THE DIRECTOR INTER -OFFICE MEMORANDUM AGENCY To: The Honorable Chairman & Members of the SMCRA Board FROM: Evan Fancher, Director DATE: June 10, 2019 Agenda Item No.: SUBJECT: A resolution directing the City of South Miami Community Redevelopment Agency (SMCRA) Executive Director to negotiate a draft long-term lease agreement with Branches, Inc. to lease the Mobley Building, advertise the opportunity to lease or otherwise receive the property, as required by law, and take additional steps regarding the property. BACKGROUND: The SMCRA Redevelopment Plan (Redevelopment Plan) provides that "[t]he Mobley Building, purchased by the SMCRA, has been identified as a potential business incubator facility. Other options for the 4 bays include allowing non-profit and/or social service agencies lease the space, or (although less desirable) leasing the space to for -profit businesses that will service the neighborhood;" In 2018, the SMCRA board took a number of steps in the direction of this vision. It started the year by ensuring that the SMCRA was incubating a locally owned barbershop after the passing of Rodney Williams. Next, it invited a social service provider to present their vision for what.they could do if given a long-term lease with the agency. Finally, the SMCRA board approved funding for a market study of the Mobley Building (also referred to as the Marshall Williamson Condominium Association Building). Each year the SMCRA budgets between $60,000 and $80,000 to maintain and operate the Mobley Building. In FY16/17, the SMCRA spent $53,268 to run the Mobley Building (that figure does not include the $28,875 for the Property Management Coordinator's salary). In FY 17/18, the SMCRA allocated $63,000 for property management (that does not include the $28,875 for the Property Management Coordinator's salary). Each month we collect $2,907.66 in rent from tenants at the small business incubator ($34,891.92 annually). Over the past couple years, the SMCRA converted the incubator into a condominium association for tax purposes and has successfully reduced the tax burden of the agency from $17,000 to $7,700. In addition to actions taken by the SMCRA board with regard to the vision for the MCA building, the Board has also approved new commercial space for local small businesses, when it approved the Madison Square project. I SMCRA yea 'M1kYnymxMgh4ulndn (mrt R:v m(nn Wtri uu 0..i CITY OF SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY OFFICE OF THE DIRECTOR INTER -OFFICE MEMORANDUM With the Madison Square project slated to be completed in the next 500 days, it is the opinion of staff that we should continue to use the Mobley Building as an incubator space for businesses that can be ready for Madison Square. After Madison Square is completed, we should move to the next phase of this three -step approach by using the Mobley Building as a home for a social services provider. In June of 2018, Branches made a presentation to the SMCRA Board about their interest in leasing the Mobley Building to provide social services to the community free of charge. They have provided conceptual drawings showing about a proposed $650,000 renovation to the space and they have had multiple discussions with staff about what a lease would entail. In its proposal to renovate the Mobley Building, Branches seeks no financial help from the City or SMCRA, as Branches raises money for rehabilitation and other building activities through its own capital campaigns. Staff has been presented with a draft term sheet by Branches that is by no means the final deal, but is a starting point for negotiations. Staff asks that you approve the resolution so that we can commence formal negotiations with Branches to possibly enter into a long-term lease of the Mobley Building once Madison Square is completed to provide social services, including after school programs, youth development programs, and family and community strengthening programs. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 READ AND APPROVED AS TO FORM: GENERAL COUNSEL Board Vote: Chairman Stoddard: Vice -Chairman Harris Member Welsh: Member Liebman: Member Gil: Member Kelly: Member Jackson: 7 Branches Draft Dated April 10, 2019 DRAFT TERMS OF LEASE AGREEMENT between SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY and BRANCHES, INC. The following is a summary of draft terms and conditions related to the lease agreement contemplated herein. This term sheet is not intended to be an offer from the either the Landlord or the Tenant to provide or accept a lease nor should it be construed as such, nor is intended Tenant granted any right of first refusal to enter into this or another Lease Agreement with the Landlord. Any such commitment is subject to due diligence, the approval by the Landlord's and the Tenant's respective governing boards, compliance with applicable provisions of law, including Florida Statute Section 163.380 regarding selling, leasing or otherwise transferring community redevelopment agency property, as well as the negotiation, execution and delivery of definitive agreements acceptable to the Landlord and the Tenant. Any Lease Agreement negotiated shall also include customary provisions of a commercial lease, including but not limited to requiring Tenant to carry insurance at required levels, indemnification provisions, and prohibitions against the allowance of liens on the subject property and compliance with applicable laws. Further, dependent on the terms of any negotiated draft Lease Agreement, the City Commission of the City of South Miami's approval of such agreement may be required. Landlord: SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY, a community redevelopment agency under Part III of Florida Statutes, Chapter 163, and any entity, agency, instrumentality or political subdivision succeeding to any of its functions and capabilities. Tenant: BRANCHES, INC., a Florida not -for -profit corporation. Premises All of the Land, together with the Improvements thereon, located at 5825 Southwest 68`h Street, Leased: South Miami, Florida, as more particularly shown and depicted on the site plan attached hereto as Exhibit "A". Term: Initial term of thirty (30) years, with up to two (2) thirty (30) - year renewal options. Renewal So long as Tenant [(i) occupies at least seventy percent (70%) of the Premises and (ii)] is not then Option: in default of the Lease subject to any applicable notice and cure periods, Tenant shall have up to two (2) options to renew the Lease for the Premises then under Lease on the same terms, covenants and conditions as the original lease, each for an additional consecutive thirty (30) year lease term. Tenant shall provide not less than [twelve (12)] months and not more than [eighteen (18)] months prior written notice of its intent to exercise its option, which notice shall be binding, failure of which, Tenant's option shall lapse and Landlord may freely lease the space to a third parry. Tenant The Lease will be entered into by Tenant on and is based upon the intention that Tenant will Improvements successfully complete the proposed improvements to the Premises as described in concept in Attachment to this Draft. These proposed improvements are expected to cost approximately Six Hundred Fifty Thousand Dollars ($650,000) to be paid by Tenant. In the event that Tenant has not secured the funding required to implement the Improvements within five (5) years after the commencement date of the Lease, either party shall have the right to initiate a renegotiation of the Lease by the parties in good faith and taking into account the existing circumstances affecting Tenant and Landlord. 010-8759-399912/A M ER I CAS Branches Draft Dated April 10, 2019 Annual Rent: Initial Term: Year 1: Zero and No/100's Dollars ($0.00); Years 2 —10: in equal monthly installments of One Thousand Sixty Eight and No/100's Dollars ($1,068.00) each; Years 11— 20: in equal monthly installments of Two Thousand One Hundred Thirty Six and No/100's Dollars ($2,136.00); and Years 21— 30: in equal monthly installments of Four Thousand Two Hundred Seventy Two and No/100's Dollars ($4,272.00). Renewal Terms: The Rent shall increase by percent ( 36) for each Renewal Term2 Use of The purposes and uses currently approved by the Board of Directors of Branches, Inc. (the Premises: "Board") are set forth on EXHIBIT "B"(the "Permitted Uses"). Tenant may shall use and occupy the Premises only for such additional purposes and uses approved by (1) the South Miami Community Redevelopment Plan (2) the Board of Directors of Branches, Inc. (the "Board") in writing and (3) the Landlord. The Landlord's approval shall not be unreasonably withheld, as long as such uses are authorized by the South Miami Community Redevelopment Agency Plan. Construction: Tenant shall have the right, but not the obligation, to construct any and all new buildings and improvements (collectively, the "Improvements") on the Premises as Tenant desires; provided, however, such Improvements shall be constructed (i) in compliance with all applicable building codes, rules and ordinances, (ii) at Tenant's sole cost and expense, and (Ili) pursuant to plans and specifications, and by a contractor, in the case of this clause (Ili) approved by Landlord (such approval not to be unreasonably conditioned, delayed or withheld). Fee title to the Improvements shall be and remain in Tenant until expiration of the Lease Term or earlier termination of this Lease, at which time, fee title to the improvements, except Tenant's furniture, trade fixtures, satellite communications dish and equipment, computer and other equipment and shelving, shall pass to and vest in Landlord. During the Lease Term, Tenant shall have the right to make such alterations, additions, replacements, improvements and changes (collectively, "Alterations") to the Improvements and the Premises as Tenant may deem necessary in its sole discretion; provided, however, any such Alterations shall be made (i) in compliance with all applicable building codes, rules and ordinances, (ii) at Tenant's sole cost and expense and (Ili) pursuant to plans and specifications, and by a contractor, in the case of this clause (Ili) approved by Landlord (such approval not to be unreasonably conditioned, delayed or withheld). Tenant shall comply with any applicable provisions of Florida Law in constructing such improvements, including Florida Statute Sections 255.20 and 287.055. 1 Over time, the Branches proposal is a better deal. By way of illustration: Branches Current Year 1 $ 0.00 $ 24,346.20 Years 2 —10 $115,344.00 $219,115.80 Years 11— 20 $256,320.00 $243,462.00 $512,640.00 $243,462.00 $884,304.00* $730,386.00** * Branches pays operating expenses. ** SMCRA pays operating expenses 2 We need to discuss basis for determining rent in renewal terms. Will we simply escalate the rent in effect at renewal by cpi? 9 010-8759-3999/21AM ER I CAS Branches Draft Dated April 10, 2019 Cooperation: Landlord shall agree, upon Tenant's request and provided Landlord thereby assumes no liability or obligations and no cost to Landlord, to join in or otherwise consent to any and all applications with respect to zoning, platting, site plan approval permits and any and all other permits, consents, approvals and/or authorizations (collectively, "Applications"), which are necessary or desirable for the development of the Premises for Tenant's intended use, including construction of the Improvements. However, it is expressly understood that the City of South Miami retains all of its sovereign prerogatives and rights and regulatory authority as a city under Florida laws and shall in no way be estopped from withholding or refusing to issue any approvals for building, zoning, planning, or development under present or future laws and regulations of whatever nature applicable to the planning, design, construction, and development of the Premises or the operation thereof, or be liable for the same. Maintenance: Landlord shall have no obligation to maintain and repair the Premises. Tenant shall at all times, and at Tenant's expense, maintain the Premises in good condition and repair similar to the condition of the Premises on date hereof, reasonable wear and tear excepted. Casualty If the Premises shall be damaged by fire or any other casualty, Tenant shall repair and restore the Damage: same to substantially the same condition as it was prior to the fire or other casualty (the "Casualty Restoration") on the date of the Lease. Tenant shall have the right to make application for and receive all proceeds of any casualty insurance covering the Premises, unless provided otherwise herein. If the cost of the Casualty Restoration is expected to exceed ten percent (10%) of [the fair market value of the Premises], then Tenant may elect to terminate this Lease effective by providing written notice of termination to Landlord not later than ninety (90) days after the date of the occurrence of the casualty event, provided, however, upon such termination, Tenant shall pay to the Landlord the proceeds of any casualty insurance covering the Premises, upon the written request of the Landlord within ten (10) days of receipt of the written notice of termination. If Tenant elects to terminate this Lease, then rent shall be apportioned and paid to the date specified as the termination date. Any proceeds in excess of the cost of any Casualty Restoration shall belong to Tenant alone. Condemnation: In the event of a Taking of all of the Premises, this Lease shall terminate on the date on which possession of the Premises is delivered to the condemning authority (the "Condemnation Date") and rent shall be apportioned and paid to the Condemnation Date. In the event of a Taking of a material portion but less than all of the Premises, then Tenant may elect to terminate this Lease effective as of the Condemnation Date by providing written notice of termination to Landlord not later than thirty (30) days after the Condemnation Date. If Tenant elects to terminate this Lease, then rent shall be apportioned and paid to the Condemnation Date. In any case in which this Lease shall not terminate, but shall continue as to the portion of the Premises remaining after the Taking, Tenant shall restore that portion of the Premises so remaining to as near a complete architectural unit as is practical, provided Landlord delivers to Tenant the proceeds of the condemnation award allocated to any improvements taken or damages to the remaining improvements. Utilities: Tenant shall pay all charges for all utilities and utility services, including, without limitation, water, gas, sewer, electricity, light, heat or telephone, to the Premises during Term of the Lease. Taxes: Tenant shall be liable for and shall pay when due all real property taxes that are at any time imposed or levied upon or assessed against the Premises. Tenant shall be liable for and shall pay when due all taxes levied against personal property, trade fixtures and equipment and all other taxable property located on or in the Premises. Tenant shall be liable for and shall pay when due any and all taxes related to Tenant's operation of its business at the Premises. 010-8759-3999/2JAMERICAS Branches Draft Dated April 10, 2019 The Tenant is responsible for paying any and all sales taxes and any applicable discretionary sales surtax for the Premises, in accordance with Section 212.031, Florida Statutes. Notwithstanding the foregoing, Landlord will cooperate with Tenant, as may be requested by Tenant and necessary to permit Tenant to enjoy the benefit of its tax exempt status. Default: Tenant fails to pay rent for 90 days after written notice from Landlord. Tenant defaults in the performance of any other term of the Lease and the same continues for 180 days (with an extended cure for defaults which cannot be cured within 180 days as determined by the Landlord but which are capable of cure and which Tenant is diligently proceeding to cure) following written notice from Landlord. Information: Without limiting the generality of any other provision hereof, Landlord shall have provided to Tenant at least thirty (30) days prior to the commencement of the Lease and at such times, and from time to time thereafter as Tenant may request, all such information, including, without limitation, copies of statements, invoices, and other documents and such other information as Tenant may reasonably request to establish all costs and expenses incurred or to be incurred in the operation of the Premises. Termination Without limiting any other provision herein or in the Lease, so long as Tenant [(i) occupies at least Option: seventy percent (70%) of the Premises and [(ii)] is not then in default of the Lease beyond any applicable notice and cure periods,] Tenant shall have the ongoing right to terminate the Lease, by providing not less than six (6) months prior written notice of its intent to so terminate. As a condition precedent to termination, Tenant shall be required to pay a termination fee equal to the aggregate of [(1) the unamortized transaction costs, if any, incurred by Landlord, including, but not limited to attorneys fees, plus (ii) [one (1) month] of the then applicable Rent]. Said fee to be payable 50% as of the date of Tenant's termination notice and the other 50% within [90] days following the termination notice date. Assignment and Tenant shall not have the right to assign the Lease, or to sublet the whole or any part of the Subletting: Premises, without the prior consent of Landlord (such consent not to be unreasonably conditioned, withheld or delayed). Notwithstanding the foregoing, Tenant shall have the right, without Landlord's consent, to (i) assign the Lease, or sublet the whole or any part of the Premises, for the uses permitted hereunder, to any entity of which, at the time is a part of, or member of, the organization known as Branches, Inc., and (ii) to sublet and/or permit the use of a de minimus portion of the Premises (not to exceed [80] square feet) by one or more of its partners, vendors or Community other service providers, for purposes that are consistent with, or ancillary to, one or more Benefits: Permitted Uses. Tenant shall reserve 30 spots for children residing in the Redevelopment Area to enjoy their programming at no cost (other than de minimum registration fees and incidental charges and other than pursuant to any organized fundraiser) for the duration of the lease and shall make all reasonable efforts to effectuate this. In the event those slots are not filled after a good faith and reasonable effort has been made, Tenant shall immediately notify the Agency Director in writing and discuss any enrollment grant requirements that need to be met. In addition, upon the reasonable request, Tenant agrees to work with any community based group in South Miami that desires to hold a meeting in their space and make the space available to them at cost or free, so long as the group assumes any liability for damage to the facility, the activity being performed during that meeting, and that the group's meeting and/or mission does not conflict with the 11 010-8759-3999/2/AMER I CAS Branches Draft Dated April 10, 2019 mission of Tenant. Tenant will make these judgements at their sole discretion and reserves the right to refuse any group's desire to use the facility. No Brokers: Landlord and Tenant shall represent and warrant that they neither consulted nor negotiated with any broker or finder regarding the Premises. Landlord and Tenant shall agree to indemnify, defend, and save the other harmless from and against any claims for fees or commissions from anyone with whom they have dealt in connection with the Premises or this Lease including attorneys' fees incurred in defending any claim for such fees or commissions. Governing Law: Florida (CONDOMINIUM DOCUMENTS TO BE REFERENCED) Contact Information South Miami Community Redevelopment Agency: Branches: Evan Fancher Brent McLaughlin, Executive Director SMCRA Director 11500 NW 12 Ave, Miami FL 33168 5825 SW 681' Street, Suite 400 Phone: 305-442-8306 x1006 South Miami, Florida 33143 Fax: 305-442-9726 Tel: 305/668-7236 bmclaughlin@branchesfl.org Fax: 305/284-0912 www.branchesfl.org Cell 305/979-4568 efancher@southmiamifl.eov 12 010-8759-3999/2/AMERICAS Branches Draft Dated April 10, 2019 EXHIBIT " A" Site Plan MARSHALL WILLIAMSON BUILDING A CONDOMINIUM 5825 S.W. 6M STREET, SOUTH M1AU, FL. 33143 BOUNDARY SURVEY SKEE72 OF 2 OT 4. a= 8 mm1~ LOT X BL.= a LOT 4 BLOGK 0 LOT OLM a •t�rn aplty > cogvowAo" auLrr I gm ( a o nlcomv as os It ft lam MACA "~ SCALE. 1'=30' o N 86' '34' Eti 125.00' (C) �'' 13 010-8759-3999/2/A M E R I CA S Branches Draft Dated April 10, 2019 14 010-8759-399912/AMER ICAS SW 6B TH S T Z '4k Branches Draft Dated April 10, 2019 EXHIBIT "B" Permitted Uses and Purposes Operation of the Branches program and related youth and family development activities. These activities include, but are not limited to: -After school programs - Youth development programs - Family and community strengthening programs - Other programs that support and promote the mission and vision of Branches, Inc. and Branches South Miami, as are authorized by the South Miami Community Redevelopment Agency Plan. 16 010-8759-3999/2/AMER ICAS CBRE VALUATION & ADVISORY SERVICES 0 AL REPORT In MA. SHALL WILLIAMSON SMALL BUSINESS INCUBATOR 5825 SOUTHWEST 68TH STREET SOUTH MIAMI, FLORIDA 33143 CBRE GROUP, INC. FILE NO. 18-397M1-1583-1 SOUTH MIAMI COMMUNITY REDEVELOPME NT AGENCY CBRE VALUATION & ADVISORY SERVICES 777 Brickell Ave. Ste. 1100 Miami, FL 33131 T 305-381-6480 F 305-381-6462 www.Cbre.com August 31, 2018 Mr. Evan Fancher SMCRA Director SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY 5825 Southwest 68th Street, Suite 400 South Miami, Florida 33143 RE: Appraisal of: Marshall Williamson Small Business Incubator 5825 Southwest 68th Street South Miami, Miami -Dade County, Florida CBRE, Inc. File No. 18-397MI-1583-1 Dear Mr. Fancher: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 6,408-square foot, one-story, Class-C office building located at 5825 Southwest 68th Street in South Miami, Florida. The improvements were constructed in 1983 and are situated on a .42-acre site. The subject serves as a business incubator, and is sponsored by the City of South Miami CRA. Below -market -rents and short-term leases are subsidized by the CRA in order to help foster new business development. We have conducted a market rent survey in order to determine the subject's achievable rents as a single tenant and multitenant office. We have also developed an opinion of Market Value'As Is' of the Fee Simple Estate based on these rents. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: 18 0 2018 CBRE, Inc. Mr. Evan Fancher August 31, 2018 Page 2 MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is Fee Simple Estate July 27, 2018 $800,000 Market Rent 'As Is' - Multitenant Fee Simple Estate July 27, 2018 $14.00 psf Market Rent'As Is' - Single Tenant Fee Simple Estate July 27, 2018 $12.50 psf Market Rent As Renovated - Multitenant Fee Simple Estate July 27, 2018 $18.50 psf Market Rent As Renovated - Single Tenant Fee Simple Estate July 27, 2018 $18.00 psf Compiled by CBRE The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non -intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Hector Diaz, MAI Vice President Cert Gen RZ2803 www.cbre.com/hector.diaz Phone: 305 428-6348 Fax: 305 381-6462 Email: Hector.J.Diaz@cbre.com ;�. y 4t4�e� James E. Agner, MAI, AI-GRS, SGA, MRICS Sr. Managing Director — Florida/Caribbean Cert Gen RZ382 www.cbre.com/iames.agner Phone: 305 381-6480 Fax: 305 381-6462 Email: James.Agner@cbre.com f.��, ter. i- 19 •'� 26 IS CBRE, Inc. Certification Certification We certify 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, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, James E. Agner, MAI, and Hector Diaz, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 11. Hector Diaz, MAI, has and James E. Agner, MAI, has not made a personal inspection of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the persons signing this report. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Hector Diaz, MAI, and James E. Agner, MAI, have not provided services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Hector Diaz, MAI Cert Gen RZ2803 il 400F.30 James E. Agner, MAI, AI-GRS, SGA, MRICS Cert Gen RZ382 Marshall Williamson Small Business Incubator, South Miami, Florida I._ [ u�i �= 20 V 2018 CBRE, Inc. n to 3) m ktk 09 Subject Photographs 22 Marshall Williamson Small Business Incubator, South Miami, Florida CBRE Q 2076 CBRE, Inc. Subject Photographs J ITypical office interior ITypical office interior 23 iv Marshall Williamson Small Business Incubator, South Miami, Florida CBRE C r15 CBRE, Inc. Executive Summary Property Name Location Client Highest and Best Use As If Vacant As Improved Property Rights Appraised Date of Report Date of Inspection Estimated Exposure Time Estimated Marketing Time Land Area Zoning Improvements Properly Type Number of Buildings Number of Stories Gross Building Area Net Rentable Area Year Built Effective Age Remaining Economic Life Condition Buyer Profile Financial Indicators Current Occupancy Stabilized Occupancy Overall Capitalization Rate Pro Forma Operating Data Effective Gross Income Operating Expenses Expense Ratio Net Operating Income v Marshall Williamson Small Business Incubator, South Miami, Florida Q 201E CBRE, Inc. Executive Summary Marshall Williamson Small Business Incubator 5825 Southwest 68th Street, South Miami, Miami - Dade County, FL 33143 South Miami Community Redevelopment Agency Office Continuation of existing improvements Fee Simple Estate August 31, 2018 July 27, 2018 6 Months 6 Months 0.42 AC 18,393 SF LO, Low -intensity office Office (Multi Tenant) 1 1 6,408 SF 6,408 SF 1983 30 Years 15 Years Fair Owner -User 100.0% 95.0% 7.00% Total Per SF $84,329 $13.16 $35,155 $5.49 41.69% $49,175 $7.67 E47-4i r_ 24 Executive Summary VALUATION Total Per SF Sales Comparison Approach $800,000 $124.84 Income Capitalization Approach $700,000 $109.24 CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Date of Value Value As Is Fee Simple Estate July 27, 2018 $800,000 Compiled by CBRE EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as "an assignment -specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." ' • None noted HYPOTHETICAL CONDITIONS A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis." 2 • None noted OWNERSHIP AND PROPERTY HISTORY OWNERSHIP SUMMARY Current Owner: South Miami Community Redevelopment Agency Date Purchased: Jun 21, 2001 Purchase Price: $430,000 Legal Reference 19734/4770 County/Locality Name: Miami -Dade Pending Sale: No Change of Ownership - Past 3 Years No Compiled by CBRE To the best of our knowledge, there has been no ownership transfer of the property during the previous three years and we are not aware of any active listings, LOI's, or pending contracts. 1 The Appraisal Foundation, USPAP, 2018-2019 2 The Appraisal Foundation, USPAP, 2018-2019 vi CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 25 Z 2J 18 CBRE, Inc. Executive Summary EXPOSURE/MARKETING TIME Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following: • exposure periods for comparable sales used in this appraisal; • exposure/marketing time information from the PwC Real Estate Investor Survey; and • the opinions of market participants. The following table presents the information derived from these sources. EXPOSURE/MARKETING TIME DATA Exposure/Mktg. (Months) Investment Type Range Average Comparable Sales Data 1.0 - 16.0 4.3 PwC Suburban Office National Data 1.0 - 12.0 6.5 Local Market Professionals 5.0 - 7.0 6.0 CBRE Exposure Time Estimate 6 Months CBRE Marketing Period Estimate 6 Months Source: PwC Real Estate Survey kel V11 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida C, 2016 CBRE, Inc. Table of Contents Table of Contents Certification......................................................................................................................... i SubjectPhotographs............................................................................................................ ii ExecutiveSummary ..............................................................................................................v Tableof Contents..............................................................................................................viii Scopeof Work..................................................................................................................... 1 AreaAnalysis...................................................................................................................... 5 NeighborhoodAnalysis....................................................................................................... 8 SiteAnalysis......................................................................................................................18 ImprovementsAnalysis...................................................................................................... 21 Zoning.............................................................................................................................. 24 TaxAssessment Data......................................................................................................... 25 MarketAnalysis................................................................................................................. 26 Highestand Best Use........................................................................................................ 33 Sales Comparison Approach............................................................................................. 34 Income Capitalization Approach........................................................................................ 38 Reconciliation of Value...................................................................................................... 47 Assumptions and Limiting Conditions................................................................................ 48 ADDENDA A Improved Sale Data Sheets B Rent Comparable Data Sheets C Legal Description D Client Contract Information E Qualifications 27 viii CBRE Marshall Williamson Small Business Incubator, South Miami, Florida c 2:?18 CBRE, Inc. Scope of Work Scope of Work This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied. INTENDED USE OF REPORT This appraisal is to be used for internal use, and no other use is permitted. CLIENT The client is the South Miami Community Redevelopment Agency. INTENDED USER OF REPORT This appraisal is to be used by the client, and no other user may rely on our report unless as specifically indicated in the report. Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser's responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 3 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property. DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 3 Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50. 28 Marshall Williamson Small Business Incubator, South Miami, Florida C B RE T) 2018 CBRE, Inc. Scope of Work 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. a INTEREST APPRAISED The subject operates as a multitenant office for new start-up ventures within the City of South Miami. As such, tenants are granted 12 month leases at below market rents that are subsidized by the city. At the request of the client, no consideration was given to the existing rent roll in this appraisal. Therefor the value estimated represents the Fee Simple Estate as defined below: Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. s Leased Fee Interest - The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. 6 Leasehold Interest - The tenant's possessory interest created by a lease.' Going Concern — An established and operating business having an indefinite future life. 8 Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor's records • legal description Extent to Which the Property is Inspected CBRE, Inc inspected the readily observable portions of both the interior and exterior of the subject, as well as its surrounding environs on the effective date of appraisal. We did not inspect the roof nor did we make a detailed inspection of the mechanical systems. We are not qualified 4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472. 5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 61' ed. (Chicago: Appraisal Institute, 2015), 90. 6 Dictionary of Real Estate Appraisal, 128. 7 Dictionary of Real Estate Appraisal, 128. 8 Dictionary of Real Estate Appraisal, 102. 2 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 29 2:71 c CBRE, Inc. Scope of Work to render an opinion regarding the adequacy or condition of these components. The client is urged to retain an expert in this field if detailed information is required. Type and Extent of the Data Researched CBRE reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • income and expense data • comparable data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Size Public Records Improved Data Building Area Floor plans Area Breakdown/Use Floor plans No. Bldgs. CBRE inspection and Floor plans Parking Spaces CBRE inspection and Floor plans Year Built/Developed Public Records Economic Data Deferred Maintenance: Owners statements Income Data: Market Rent Survey Expense Data: Expense Comparables Compiled by CBRE APPRAISAL METHODOLOGY In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. Fall 3 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida © 201 o CBRE, Inc. Scope of Work Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but . rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. Income Capitalization Approach The income capitalization approach reflects the subject's income -producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. Methodology Applicable to the Subject In valuing the subject, only the sales comparison and income capitalization approaches are applicable and have been used. The cost approach is not applicable in the estimation of market value due to the overall age of the improvements and the lack of investor reliance on this approach. The exclusion of said approach is not considered to compromise the credibility of the results rendered herein. 31 4 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 2 1 1 c CBRE, Inc. Area Analysis Area Analysis 27 *''-embroke _ _ Hollywood ?Plnes _ H Ilan ale �..., L eachll r . qi East Coast; Buffer Wate ■ r. Preserve Area �! ri 1 .� _Dora_ 'N, 836. 874 endc- 997 825 Homestead Florid City - r- 0 0 0 Hialeah j airy. -Miami Beach ,Oey8pi e 32 5 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida Area Analysis The subject is located in Miami -Dade County. Key information about the area is provided in the following tables. POPULATION The area has a population of 2,729,889 and a median age of 39, with the largest population group in the 30-39 age range and the smallest population in 80+ age range. Population has increased by 233,454 since 2010, reflecting an annual increase of 1.1%. Population is projected to increase by 146,294 by an additional 2023, reflecting 1.0% annual population growth. INCOME The area features an average household income of $74,076 and a median household income of $49,162. Over the next five years, median household income is expected to increase by 14.2%, or $1,391 per annum. EDUCATION A total of 28.5% of individuals over the age of 24 have a college degree, with 18.0% holding a bachelor's degree and 10.5% holding a graduate degree. AREA POPULATION BY AGE 500,000 400.000 00,000 2M.000 100,000 0 sourm'Bri 09 10-19 2029 30-39 40.49 50.59 0.69 90-79 80. POPULATION BY YEAR 3,000,000 2.900,0a0 2,e00,000 2.700,000 2,600,000 000 2,500'M z,400,0ao 2,300,000 Saurm:Essi 2020 2018 MEDIAN INCOME BY YEAR 558,00 556,000 $54,000 552,000 $50,000 54e,000 546,000 5<4.000 1 -a ¢n 2018 2023 POPULATION BY DEGREE . Bachelor's Degree • Graduate Degree r • Other Source. Lr. 6 Morshall Williamson Small Business Incubator, South Miami, Florida 2023 54T- ;1_' 33 .. CBRE, Inc. Area Analysis EMPLOYMENT Health Care/Social Auistance Retail Trade Attommp(latlpn[Fhad Sera. Pmf/xiantiRc/fech Services Chet ction EauW meal Somims Tmruportatun/Wamhousing Mmin/Suppon/Waste Mgmt Siva other Semces(eul Publ Mtn) mishvmurilg la— Eon t1h, N 4% 6% 8% im I^ ]4% The area includes a total of 1,266,183 employees and has a 6.0% unemployment rate. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Accommodation/Food Services, which represent a combined total of 34% of the population. 34 Marshall Williamson Small Business Incubator, South Miami, Florida CBRE G 201 e CBRE, Inc. Neighborhood Analysis Coral Terri 1k 976 - D < N < D � — m Miller Dr- _ -- SW 64th Si Blue Neighborhood Analysis 4S "II - SW 72nd St SW 72nd St South Miami oou . St — SW 88th St C Fairchi Tropic Botani Garde 1 Map data ©2018 Google 35 Marshall Williamson Small Business Incubator, South Miami, Florida CBRE CBRE,I-, Neighborhood Analysis LOCATION The subject is in the city of South Miami and is considered a suburban location. The City of South Miami straddles South Dixie Highway at the SW 72nd Street/Sunset Drive and SW 57th Avenue/Red Road intersect. The city is situated in southern Miami -Dade County, about 8 miles southwest of the downtown Miami central business district (CBD). LAND USE Land uses within the neighborhood and submarket area include retail, office, residential, warehouse/industrial, a hospital campus and mass transit uses. As of the date of this report, there are several small scale, mixed -use retail & office developments & redevelopments being planned and underway along the South Dixie Highway corridor, including the following: • The former Chinatown Restaurant located at 5998 South Dixie Highway was sold in 2013 to investment firm Greenstreet Real Estate Partners for $5.6 million and has since been razed for redevelopment of a new, mixed -use restaurant and office project. Michael Comras, is handling marketing and leasing, and reported the new 16,000-square-foot building will have offices on the second floor totaling about 3,300 square feet, three restaurants on the ground floor, and onsite parking. Asking rents for ground floor retail space in the area are between $65.00 a foot and $75.00 per square foot. The restaurants will be a mix of casual and upscale, but not fast food. • The former MacDonald's Imperial Cleaners store located at 5840 SW 71 st Street is in the process of being gutted and repositioned into new retail spaces, including a complete, "like new" renovation. And in between both projects is 5887 Sunset Drive, the owner is creating a pedestrian paseo between that building and the SunTrust bank branch. • East of Sunset Place, the Wendy's at 6601 Red Road sold to a group of partners for $9 million in November 2015 with a plan to redevelop the 38,000-square-foot lot into a single or dual tenant retail site plan, which is technically in Coral Gables. • On the east side of South Dixie Highway, TREO Group purchased the ground lease & air rights for land near the South Miami Metrorail station in May 2016 for $13 million. The lease includes 36,267-SF ground level site area and the air rights over the 5-story parking garage located at the corner of Southwest 70th Street and Southwest 59th Place. The land is owned by Miami -Dade County, and the lease obligates Treo to commence construction on 100,000 square feet of hotel, retail and/or residential space within three years of the transfer. Within five years, the project must be completed. Several of the more prominent and regional land uses are summarized in the following sections. 91 9 C B R M Marshall Williamson Small Business Incubator, South Miami, Florida ,t 2018 CBRE, Inc. l Neighborhood Analysis Metrorail Station The South Miami Metrorail station is located at 5801 South Dixie Highway and is two blocks west of Red Road (West 57th Avenue). The station opened to service May 20, 1984. Several station statistics are summarized as follows: • Line(s): Green Line & Orange Line • Connections: Local Transit Metrobus: 37, 57, 72, 500 Midnight Owl • Platforms: 1 island platform • Tracks: 2 • Parking: Two Garages with 1,774 spaces • Bicycle: Rack • Station code: SMI • Owned by: Miami -Dade County • Ridership: 2.2 million The system Metrorail system map is presented on the following page. 37 10 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 271 E CBRE, Inc. cu WAM,5PRING.)v( w woe ALLAPATTAH k SANTA CLARA INTERNIATIONAL CIVIC AIRPORT CENTER �J HISTORIC OVERTOWN/LYRIC THEATRE GOVERNMENTCENTER(0i) BRICKELLOOiD VIZCAYA COCONUT GROVE DOUGLAS ROAD UNIVERSITY SOUTH MIAMI (D DADELAND NORTH 11+� DADELAND SOUTH f � TRANSFER TO SOUTH CAD[ IIUk9TW'AY METRORAIL Orange Line I Station Green Line/Station Station Serving Both Lines Station Served by Downtown Express Recommended Transfer Station ��•VVV®^^^ Station Connects with Metromwer ® Station Connects with Tri-Rail 0 Station Connects with Airport 0 NORTH CONNECTING SERVICES — Metromover Tri-Rail Line (tri-rall.com) MIA Mover Line(miami-alrport.com) --- South Dade Transitway Neighborhood Analysis m Marshall Williamson Small Business Incubator, South Miami, Florida CBRE C 201E CBRE, Inc. Neighborhood Analysis South Miami CRA The South Miami Community Redevelopment Agency redeveloped plan was approved by the Miami -Dade County Board of County Commissioners on May 19, 1998. A subsequent supplement to the plan was approved on February 1, 2005. The SMCRA adopted redevelopment plan is the guiding document for redevelopment in the SMCRA Area. The plan contains a variety of projects, programs and initiatives designed to improve quality of life and physical conditions in the community redevelopment area. Established by Ordinance No. 12-97-1633. The city commission designates the geographic area within the city of South Miami described generally as being bounded by SW 62nd Avenue on the West; SW 62nd Street on the North; SW 57th Avenue on the East; and SW 72nd Street on the south as the South Miami Redevelopment Area. South Miami Hospital Another major land use and employment center within the South Miami community is the South Miami Hospital that is owned & operated by Baptist Health South Florida. Located at 6200 SW 73 Street, South Miami, Florida 33143, the hospital is currently licensed for 452 beds, and provides health or quality care in the following primary areas: • Maternity services. • Pediatric developmental delays and disabilities. • Robotic surgery. • Addiction treatment. • Weight -loss surgery. • Comprehensive cancer program. • Outpatient services. • Cardiovascular services. The Shops at Sunset Place Along the east side of Dixie Highway and north of Sunset Drive is The Shops at Sunset Place, a multi -level, open air shopping mall at the intersection of South Dixie Highway (US 1) and Red Road (West 57th Avenue). The mall opened in 1999 and is owned by Federal Realty, Grass River Property, and Comras Company. It is anchored by AMC Theaters, which is a 24-screen theater having 92,000 SF. It also includes LA Fitness, Splitsville Bowling, Banana Republic, Gap, Forever 21, Buffalo Wild Wings and numerous local shops. Unlike other major malls, aside from the AMC Theaters, there are no other major anchor spaces. The mall has historically struggled to establish a desirable client base and it has struggled to attract larger stores more traditionally associated with regional malls. In October 2015, Simon Property Group sold the mall to Federal Realty, Grass River Property, and the Comras Company for $110 million. Since that time, the new owners have been attempting to secure a zoning change and approvals to redevelop the property 39 12 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida ?:? IF CBRE, Inc. Neighborhood Analysis to allow for higher density, high-rise structures and add a hotel and residential towers to front South Dixie Highway. However, to date, they have been unsuccessful in those attempts as the City authorities are reluctant to increase density and height at that location. As reported by the Miami Herald in late 2017, the new owners of the failing Shops at Sunset Place planned to sink tens of millions into radically remaking the mall and helping revive the fortunes of South Miami's troubled downtown by adding apartments, a hotel and a public plaza and promenade. Now it looks like the ambitious pedestrian -friendly makeover, which enjoyed broad support from downtown property and business owners and South Miami residents, may not happen in the near future, if at all. In late November 2017, by a 3-2 vote, the city commission rejected a package of special zoning rules that would have allowed the redevelopment of the portion of the mall that sits along U.S. 1. Current regulations restrict building heights to four stories in downtown South Miami. That two - acre redevelopment was the linchpin of a broader plan to revitalize the mall by opening it up to the downtown South Miami streets and turning it into the town's central gathering space. Its owners say the open-air mall is "a sinking ship' because its design turns inward like a fortress. Federal's plan, designed by Miami architect and urban designer Bernard Zyscovich, called for demolishing most of the portion of the mall along U.S. 1 and replacing that with an 18-story hotel and a separate apartment building set amid a green promenade and a public town square. The plan would have added an extensive tree canopy, significantly wider sidewalks and also would have given the rest of the mall a clean, contemporary look by stripping off its dated pastel color scheme and themed decorative detail. Rendering of proposed redevelopment of Sunset Place EEO 13 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 0 2016 ORE, ) m. Neighborhood Analysis Federal, which paid $110 million in 2015 for the mall in partnership with Miami developers Grass River Property and The Comras Company, needed a unanimous vote in favor of the zoning changes to move forward. Even a split vote in favor would have allowed the zoning package to go to a second reading with conditions from commissioners that could have won final approval. An overwhelming majority of speakers in the South Miami commission hearing favored the project, with some downtown business owners pleading with commissioners to approve the project as a way to draw people to revitalize the rest of downtown. The once -thriving district has appeared to have lost some foot traffic amid increased competition from online retail and revitalized urban districts like Brickell, Dadeland, and Miracle Mile in Coral Gables. After months of discussion, an amendment to the city's charter was approved by voters on August 28'h, 2018. This measure requires only a four -fifths majority vote of the city commission, rather than a unanimous vote, in order to relax the land use code in a downtown district that includes the mall. This measure could allow passage of the zoning changes necessary for the $300 million revamp of the mall to go forward. The existing requirement of unanimity was approved by voters in 2008 as a way of restricting development within the City of South Miami. Mayor Phillip Stoddard maintains the city has paid a steep price for the 2008 referendum, losing out on commercial revenue as its downtown languishes relative to the Dadeland and Coral Gables submarkets. The site of the Shops at Sunset Place at the intersection of South Dixie Highway and West 57'h Avenue has seen more than three decades of stagnation. A retail and office complex with a movie theatre called The Bakery Centre first opened there in 1986. It was demolished 10 years later, and Sunset Place was built in 1999 by Simon Properties. LUDLAM TRAIL & UNDERLINE TRAIL The proposed Ludlam Trail is a proposed 6.2-mile multi -use trail intended to connect the downtown Miami river front with the Dadeland submarket via the proposed Underline trail within the former Florida East Coast railway right-of-way. The trail is intended to provide dedicated and direct route for cyclists and pedestrians to schools, parks, employment and shopping. In addition, the design plan includes a walkable service area connected to five (5) greenways, five (5) schools, four (4) parks and two (2) transit hubs. :51 '" Marshall Williamson Small Business Incubator, South Miami, Florida CBRE 2. 12 CBRE, Inc. Neighborhood Analysis The Underline runs on the M-Path, underneath the Metrorail tracks in Miami -Dade, starting in Brickell and going through Coconut Grove, Coral Gables and South Miami and ending at Dadeland Station. It runs through three municipalities and involves agencies such as the county's transit department and the Florida Department of Transportation. DEMOGRAPHICS Selected neighborhood demographics in from the subject are shown in the following table: SELECTED NEIGHBORHOOD DEMOGRAPHICS 5825 Southwest 68th Street 1 Mile Radius 3 Mile Radius 5 Mile Radius South Miami, FL 33143 Population 2023 Total Population 2018 Total Population 2010 Total Population 2000 Total Population Annual Growth 2018 - 2023 Annual Growth 2010 - 2018 Annual Growth 2000 - 2010 Households 2023 Total Households 2018 Total Households 2010 Total Households 2000 Total Households Annual Growth 2018 - 2023 Annual Growth 2010 - 20-18 Annual Growth 2000 - 2010 Income 20,174 122,021 378,784 19,273 115,616 362,517 17,792 106,005 340,825 16,105 102,021 325,916 0.92% 1.08% 0.88% 1.00% 1.09% 0.77% 1.00% 0.38% 0.45% 6,910 46,129 138,785 6,578 43,749 133,119 6,072 40,328 125,985 5,767 38,727 119,780 0.99% 1.07% 0.84% 1.01 % 1.02% 0.69% 0.52% 0.41% 0.51% 2018 Median Household Income $721141 $72,558 $56,287 2018 Average Household Income $115,353 $122,767 $96,108 2018 Per Capita Income $40,796 $46,911 $35,561 2018 Pop 25+ College Graduates 5,787 41,121 101,795 Age 25+ Percent College Graduates - 2018 54.4% 51.6% 38.2% Source: ESRI CONCLUSION In summary, the subject submarket area was enjoying a redevelopment cycle of high density, mixed -use retail, residential and office condominium developments driven by the proximity of the South Dixie Highway corridor, Metrorail and other supporting urban, in -fill infrastructure. The subject location within proximity to the South Miami Metrorail Station is likely to remain desirable for high density, mixed -use development and positive appreciation over the long term. 42 15 Marshall Williamson Small Business Incubator, South Miami, Florida 0 2010^ CBRE, Inc. Site Analysis SURVEY MARSHALL WILLIAMSON BUILDING A CONDOMINIUM 5825 S.W. 68th STREET, SOUTH MIAFL. 33143 BOUNDARY SURVEY SHEET 2 OF 2 UM ., stoat a MAW SECUM cs MAN= or t�ora+or fv" for .3, A= s for a, stoat a tot stoat a PB f imfv s caror U00 f Di L � I mar I PA o& PA t PA sas, rats. PA 2. Pa roe, WAAA /SPM1�' SCALE. 1'430' N 86' '34" Et 125.00' (C) tLa M1 am 0 43 16 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida w : C E CBRE, Inc. Site FLOOD PLAIN MAP Ell " Marshall Williamson Small Business Incubator, South Miami, Florida CBRE 91 201 E CBRE, Inc. Site Analysis Site Analysis The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area 0.42 Acres 18,393 Sq. Ft. Net Site Area 0.42 Acres 18,393 Sq. Ft. Primary Road Frontage SW 68th St 125 Feet Excess Land Area None n/a Surplus Land Area None n/a Shape Rectangular Topography Level, At Street Grade Zoning District LO, Low -intensity office Flood Map Panel No. & Date 12086CO458L 11-Sep-09 Flood Zone Zone X (Unshaded) Office, automotive, residential, and Adjacent Land Uses municipal uses Earthquake Zone N/A Comparative Analysis Visibility Average Functional Utility Average Traffic Volume Average Adequacy of Utilities Assumed adequate Landscaping Average Drainage Assumed adequate Utilities Water Municipal Yes Sewer Municipal Yes Electricity FP&L Yes Telephone Private Providers Yes Mass Transit Miami -Dade Mass Transit Yes Other Y= ma Unknown Detrimental Easements X Encroachments X Deed Restrictions X Reciprocal Parking Rights X Source: Various sources compiled by CBRE INGRESS/EGRESS ngress and egress is available in both directions via a driveway along SW 681h Street. 45 18 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida C 27I 3 CBRE, Inc. Site Analysis EASEMENTS AND ENCROACHMENTS There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. COVENANTS, CONDITIONS AND RESTRICTIONS There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision. CONCLUSION The subject site is well -suited to a variety of commercial uses with adequate access and visibility. The size of the site is typical for the area and use, and there are no known detrimental uses in the immediate vicinity. Overall, there are no known factors which are considered to prevent the site from development to its highest and best use, as if vacant, or adverse to the existing use of the site. 46 19 CORE Marshall Williamson Small Business Incubator, South Miami, Florida C 201 B CBRE, Inc. IMPROVEMENTS LAYOUT I a6'tart� faz tW 4(610(6/9 ie� s0. Fr t) 8.20' I JV F 9 d0• no, I3&40' 10A0 1 I Fr. WT JA Sa Fr. g t) OFTER10R ,(141 Sa t (195 N I awl frepC41,) .. I Uw 30) h 1Q.i0 I190' 0.70, 8 I Rw iff :,�$y d N K DOORIIG{Y A b ( 36.40 Mwr 46 NO lr o CROR CORAMM 14.W' I2.00 sr. p ,;1 o WMOR MALL ut+r x sa Fr.:) 14.00 I(566 1 40' 2 I (�r�) i f o (39W t) Id (139 S0. FT. t) I'22,30• 19 w' W51 4.w 21.30, wr fT. t) (131 Sa fT t) 00• I (16 .. NVIET tJOR WALL ' RS I 11.65• WROM (n'pew M� R CL t« (11'POG{Lj 990' 15' 1.1, 12t3 IHALLWAY 1.20' g h S IANlT 1C 10.35 rw.LwAY 140• IA I (159 so. Fr. g 19 � RE51 DDOR I � (14� :i Roo+w 9-90• - 1393� �� - �200� 20 Marshall Williamson Small Business Incubator, South Miami, Florida Improvements Analysis BAY 4 (1.376 SO. FT. t) BAY 3 (1,576 sa FF BAY 2 '1.576 sa Fr. a; BAY 1; 1,37E Sa Fr. *; 47 C 2 � I ? CBRE, Inc. Improvements Analysis Improvements Analysis The following chart shows a summary of the improvements. IMPROVEMENTS SUMMARY AND ANALYSIS Property Type Office (Multi Tenant) Number of Buildings 1 Number of Stories 1 Gross Building Area 6,408 SF Net Rentable Area 6,408 SF Site Coverage 34.8% Land -to -Building Ratio 2.87 : 1 Floor Area Ratio (FAR) 0.35 Parking Improvements Open Parking Spaces: 24 Parking Ratio (per 1,000 SF NRA) 3.75 Year Built 1983 Actual Age 35 Years Effective Age 30 Years Total Economic Life 45 Years Remaining Economic Life 15 Years Age/Life Depreciation 66.7% Functional Utility Typical Improvement Summary Description Comparative Rating Good Avg. Fair Poor Foundation Reinforced concrete X Frame Steel X Exterior Walls Painted masonry X Interior Walls Textured and painted drywall X Roof Built-up composition X Ceiling Suspended acoustical the X HVAC System Roof mounted HVAC units X Exterior Lighting Mercury vapor fixtures X Interior Lighting Recessed fluorescent fixtures X Flooring Carpet and vinyl the X Plumbing Assumed adequate X Life Safety and Fire Fire extinguishers and keypad X Protection alarm Furnishings Personal property excluded N/A Parking Asphalt paved open parking X Landscaping Gross, shrubs, and decorative X trees Source: Various sources compiled by CBRE CONDITION ANALYSIS Our inspection revealed the subject to be in fair overall condition. It has served for years as a small business incubator and is in need of a general upkeep and maintenance program. Some upgrades that would benefit the building include new paint, wifi, and general upkeep of the plumbing and parking lot. However, we are not aware of any items of deferred maintenance that require immediate attention. 48 21 Marshall Williamson Small Business Incubator, South Miami, Florida Q 2010- CBRE, Inc. Improvements Analysis CONCLUSION The improvements are considered to be in fair overall condition and are considered to be typical of Class-C office buildings in regard to improvement design and layout, as well as interior and exterior amenities. Overall, there are no known factors that could be considered to adversely impact the marketability of the improvements. 49 22 CBE Marshall Williamson Small Business Incubator, South Miami, Florida 0, S CBRE, Inc. ZONING MAP ...... FIR PR 6701 , PUD-M 5737 5949 3 1 i 6825 LO- ...—. —. #* 5798 5780 'TODD MU-4 m 5791 5876 5750 5811 — r.'--` S�q v% Sri Zoning 1 1 1 1 1 j 65 1 1 1 6790 a'DD-MU -4 5712 >9 J ��r S, 5907 s S�9i3s s �QG �QQ a�sOs; 6845 BS. ��` SMA N 69Tt ST_ TODD U-4 '°� ' - �' O s ° Iq i 50 23 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida © 2018 CBRE, Inc. Zoning Zoning The following chart summarizes the subject's zoning requirements. ZONING SUMMARY Current Zoning LO, Low -intensity office Legally Conforming No - See Comments Intended Purpose The purpose of this district is to permit low -intensity office development and redevelopment, without necessarily being compatible in appearance with single-family residential areas. This district is appropriate in areas designated "Low -Intensity Office" on the citys adopted Comprehensive Plan. Uses Permitted Public & institutional uses (convalescent home, park, playground), business & professional services (office, bank, hotel/motel), and radio/tv station. Zoning Change Not likely Category Zoning Requirement Minimum Lot Size 7,500 Sq. Ft. Minimum Lot Width 75 Feet Maximum Height 2 stories; 30 feet Minimum Setbacks Front Yard 20 Feet Street Side Yard 15 Feet Interior Side Yard 10 Feet Rear Yard 15 Feet Maximum FAR/Density 0.70 Parking Requirements 1 space / 250 SF of Bldg. Subject's Actual Parking 0.94 spaces / 250 SF of Bldg. Source: Planning & Zoning Dept. CONCLUSION The improvements represent a legally non -conforming use due to insufficient off-street parking, but, if damaged, may be restored without special permit application. Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct. 51 24 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida Z 21" CBRE, Inc. Tax Assessment Data Tax Assessment Data The following summarizes the local assessor's estimate of the subject's market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. Our analysis revealed no tax history for the subject prior to 2017 and that some but not all of the subject condominium units are assessed. The CBRE estimated tax obligation is also shown. AD VALOREM TAX INFORMATION Parcel Assessors Parcel No. 2017 Pro Forma 1 09-4025-086-0010 $146,173 2 09-4025-086-0020 39,237 3 09-4025-086-0030 41,870 4 09-4025-086-0040 42,397 5 09-4025-086-0050 40,553 6 09-4025-086-0060 100,573 7 09-4025-086-0070 36,603 8 09-4025-086-0080 148,453 9 09-4025-086-0090 51,350 10 09-4025-086-0100 37,130 11 09-4025-086-0110 228,003 12 09-4025-086-0120 150,623 13 09-4025-086-0130 148,433 Subtotal $1,211,398 $800,000 Assessed Value @ 100% 85% $1,211,398 $680,000 General Tax Rate (per $1,000 A.V.) 19.882400 19.882400 Ad Valorem Taxes: $7,272 $13,520 Non -Ad Valorem Taxes: - - Total Taxes: $7,272 $13,520 Less 4% early pay discount: (291) (541) Net Takes: $6,982 $12,979 Source: Assessors office Based on the foregoing, the total taxes for the subject have been estimated as $12,979 for the base year of our analysis, based upon an assessed value of $680,000 or $106 per square foot. This is above the current and historical assessment, however, is considered a realistic scenario if the subject were to transact on the open market. For purposes of this analysis, CBRE, Inc. assumes that all taxes are current. 52 25 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 0 2016 CBRE, Inc. Market Analysis Market Analysis The market analysis forms a basis for assessing market area boundaries, supply and demand factors, and indications of financial feasibility. Primary data sources utilized for this analysis include CBRE Research and ESRI. The subject is in the Kendall submarket of the Miami -Dade County office market and is considered a Class C office. MIAMI-DADE COUNTY OFFICE MARKET OVERVIEW The following discussion illustrates some general observations in the surrounding office market, as reported in CBRE's Miami -Dade County Office MarketView for the second quarter 2018. Investor interest in Miami's CBD takes the spotlight ToW Vacancy (ease Rate -Cla A Net Absorption completions 10.5% ® $44.28 PSF O 145,000 SF O 190,000 SF Figure]: Total 9umncy—n— Net Abmrpfon (cross A 8 B) AllionsofSF 1.5 1.0 0.5 0.0 -0.5 'Anox indicate change from pw*m year. Vacancy Rote (�) 20 is 10 5 2010 2011 2012 2013 2014 2015 2016 2017 2018 al tttttttiiiiiii 02 ttttttiiiiiiii 03 ttttttt1111111 04 —Vammy Rate (R ) source: ®RE Research, 012018. 0 Highlights • Total vacancy was 10.5% in Q2 2018, declining 30 bps quarter -over -quarter and 50 bps year -over -year. • Net absorption (move-ins/move-outs) during Q2 2018 was 144,524 sq. ft., with 91,257 sq. ft. in the downtown submarkets and 53,267 sq. ft. in the suburban submarkets. • New -to -market tenants are currently seeking to occupy over 270,000 sq. ft. in the coming months. 53 26 CBRE .Marshall Williamson Small Business Incubator, South Miami, Florida .. G i, CBRE, Inc. Market Analysis • Tenants seeking space in the market have requirements for 1.4 million sq. ft. Business services, which includes co -working providers, legal and financial services were the top industries in the market. • Miami ranked #8 out of the top 50 metros in the U.S. for "Best Places for Job Seekers in 2018" from data collected by job site Indeed on CNBC.com. Investment Sales Activity Investor interest in the urban core took the spotlight in Q2 2018. Two prominent office buildings traded, one in Downtown and one in Brickell, totaling $375.5 million. Year-to-date sales have already surpassed sales for the entire year in 2017 in Miami's CBD. 1111 Brickell last sold for $184 million in 2013, generating a 35% return on Prudential Global Investment Management's investment over a five-year period. Crocker Partners purchased SunTrust International in 2011 for $82.5 million, selling at a price 54% higher than the previous sale. Leasing Activity Strong leasing activity continued in Q2 2018, leading to a tightening office market. Leasing activity totaled approximately 622,300 sq. ft., across 110 transactions. The majority of the lease transactions were larger than usual, at 5,000 sq. ft. and greater, and took place in the Downtown, Coconut Grove and Coral Gables submarkets. Miami's rental rates were among the highest in the region, with continued growth and diminished supply. The average asking lease rate for all classes in the CBD climbed to $42.66 per sq. ft. in Q2 2018, an increase of $1.01 year -over -year or 2.4%. In the suburban submarkets, the average asking rate for all classes was $34.33, an increase of $1.82 year -over -year or 5.6%. Vacancy remained on a downward trend, decreasing by 30 basis points (bps) to 10.5% quarter -over -quarter and by 50 bps year -over -year. Figure 3 Market S1alistirs—All Classes Suau@an Total _l' -g; i 7a-cl - - - Sance: CBRE Research, 02 201 & 54 27 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 0 2018 Off, Inc. Market Figure4 Sigrificurd0220180uupondes' 7 Airpor✓ fal Dom Icourt Blue Cress Blue Shield (Boddo Blue) MIN] 81,000 Downlawm One Rheer iew *ue GSA - Odhd States of Nnerim 21,237 Coconut Grove SBSBsmyneBonk Tow Rit{adlonYacht Collection 14,400 Carol Gables Alhamhm Phm Bedcmochore$ims 11,700 Algmi Lakes Lincoln Square Norm CommunitComadaa for Life, Inc 11,612 Sauce: CBRE Research, 02 2018. Figure5 Signifimnt(1220181-a Executed 'Does not indude renemis NA Ew Dxk Parbae NwKd Cella d: SWIM 30,280 Dowtom LVU Group -:—e:.i 60®onlRewewd 30,00) Cord Gables BoraB Budding - New line 29,374 Dwmtom Throe RarreClwhnl Nnleote 24,M9 Damtam Ciligrv+a Cagier - New lmse 23,128 Source- CBRE Research, 02 20M Rgure 6: Top 02 20191IS Millions) Soft fe,Dok :. zr r: -::-:':'Flaidi Km leae AN Do.owwn .. - - r1�. Velar) 501100all xwd 30,0001 Cad Bowe - - - -z wm New Ww 29,374, Dawnwm T6ae A4am(cm2l 'Ire L= 24,009 Domam (Base Catr - • :. '.en Lase 23.128 55 28 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida C 26 o CBRE, Inc. Market Analysis Figure 7: Under Construction (SF) Submarket Property Carol Gables The Mco Cool Gables- North Owner Agave Holdings Developer Bui Agave Holdings ding (SF) Delivery 289,998 Dote 2020 Mums Bead 16690 Collins Ave. Cneahce Why Group Cm** Realty Group 102,287 2019 Cotanuf Grove MorySt. Term Group Teno Gmup 95,000 2018 BGcayneBWCoinda CUBE Wyrmd RedskyCapitol loesnors RedSoCapital lnvestmans 87,511 2018 Carol Gables allow The solution Group USG) The Solunon Group USG) 83,726 2018 North Miami ConalPark Office EdtardoNomnm EduardoNowum 74,336 2018 Carol Gables G+mIdoMace - West Tower TmnsamedmHMingCorp TroesomeomHoldingCup. 71,582 2018 Coral Gables Sunset Oifie Ceder Catherine LA Corhenne lone 60,799 2018 llwyne Bid Comdar Wr wood 25 Anna Ear End Capital Partners, UC East End Capital Partners, UC 60,D00 2019 Coconut Grove 34W3404 Main Higdway Opamon Dmiopmem USA Optimum Deselopmem USA 44,293 2018 ham Lakes 15121 NW 67th Ave. The Graham Companies The Gorham Companies 3B,B85 2019 Math Munn 2420 NE Miami Gardens Dome Madoll, Fov.. Tmrel Dmd Mendall, ForestTmvel 36,935 2019 Brsmyne Bid Camda The Wyawood Gamge Goldman Dueldpnem, UK Goldman Deelopment, ULC 30,000 2018 Source: CBRE Research, 02 2018 Development Office properties under construction totaled 1,075,352 sq. ft. as of Q2 2018 and are set to deliver over the next three years. Two MiamiCentral delivered 190,000 sq. ft., leaving the Miami CBD with zero projects under construction. The office tower was 43% pre -leased upon completion with major tenants including The Cisneros Group, Ernst & Young and Spaces (Regus Business Centers). Three office properties broke ground in Q2 2018 including 16690 Collins Avenue in the Miami Beach submarket, 15121 NW 67th Avenue in the Miami Lakes submarket and 2420 NE Miami Gardens in the North Miami submarket. Coral Gables remains the submarket with the largest square footage under construction with a total of 506,105 sq. ft. in Miami -Dade County, followed by Biscayne Boulevard (which includes Wynwood), Coconut Grove and North Miami. 63 29 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida V 201d CBRE, Inc. Figure 9: Completions 000's of SF) 2,000 - — 1,500 1,000 500 Market Forecast 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: CBRE Research, 02 2018. Economic Influence Office -using employment growth driven by job growth continued in the 12 months prior to May 2018 bringing an additional 12,100 jobs in the Miami metropolitan division, representing a year -over -year gain of 1.0% according to the Bureau of Labor Statistics (BLS). Miami's annual job growth was driven by gains in manufacturing (+7,200), construction (+46,400) and trade, transportation & utilities (+2,700). COMPETITIVE PROPERTIES Comparable properties were surveyed in order to identify the current occupancy within the competitive market. The comparable data is summarized in the following table: 57 30 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida (C 251 9 CBRE, Inc. Market Analysis SUMMARY OF COMPARABLE OFFICE RENTALS Comp. No. Name Location Occupancy 1 Sunset Office Park 9380 SW 72nd Street, 96% Miami, FL 2 27th Avenue Multitenant Offices 348-352 NW 27th Avenue, 100% Miami, FL 3 Airport West Office 3425 NW 73rd Avenue, 100% Miami, FL 4 Freestanding Commercial Building 5391 NW 36th Street, 0% Miami Springs, FL 5 Multi -Tenant Retail/Office 1565 & 1569 NW 36th Street, 82% Miami, FL 6 Freestanding Commercial Building 2190 NW 7th Street, 100% Miami, FL 7 The Landing - Class C 7235, 7255, 7400 & 7415 98% Corporate Center Drive, Miami, FL Subject South Miami CRA Office Building 5825 Southwest 68th Street, 100% South Miami, Florida Compiled by CBRE The majority of comparable properties surveyed reported occupancy rates of 96% or better, and they reflect a range of conditions from fair to average. Market Activity Brokers and market participants we interviewed for this appraisal report good market demand for office space, which is typically driven by local and regional employment figures. However, tenants are not willing to overpay for spaces with dated interiors or a lack of amenities. In the premium locations, tight parking is a fact of life that tenants cannot avoid, but in secondary locations we did see the impact of insufficient parking on asking rents. SUBJECT ANALYSIS The subject is situated just outside of the Coral Gables submarket, and given the size and layout of the improvements it would appeal as a multitenant office, but could easily be repositioned for single tenant or owner -occupied use. The market data in our sales comparison approach reflects a mix of occupants, but owner -users tend to be the dominant buyer of older, smaller office buildings such as the subject although leased asset investors can and do participate as well. 58 31 C B FR E Marshall Williamson Small Business Incubator, South Miami, Florida V 201 c CBRE, Inc. Market Analysis Occupancy The subject's occupancy is detailed in the following chart. OCCUPANCY Year % PGI FY 16/17 FY 17/18 Budget CBRE Estimate 100% 100% 95% Compiled by CBRE Based on the foregoing analysis, CBRE's conclusion of stabilized occupancy for the subject is illustrated in the following table. This estimate considers both the physical and economic factors of the market. OCCUPANCY CONCLUSIONS Suburban Miami -Dade County 91.5% Kendall Submarket 92.2% Rent Comparables 94.2% Subject's Current Occupancy 100.0% Subject's Stabilized Occupancy 95.0% Compiled by CBRE CONCLUSION Solid market fundamentals are driving Miami's strong performance in both leasing and investment activity, which is forecasted to continue through 2018. The opening of MiamiCentral and delivery of the second office tower at the train station, Two MiamiCentral, are instrumental in making Miami's CBD and Miami -Dade County in general increasingly relevant and sought-after. Together with a tightening labor force and new -to -market tenants entering the market, demand will continue to outpace supply even as new projects slowly increase office inventory. 59 32 C BF I E Marshall Williamson Small Business Incubator, South Miami, Florida 3 CBRE, Inc. Highest and Best Use Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT The property is zoned for office use and is of sufficient size to accommodate various types of development. The immediate area includes various office land uses. Considering the surrounding land uses, location attributes, legal restrictions and other factors, it is our opinion that an office oriented use would be reasonable and appropriate. Therefore, it is our opinion that the highest and best use would be for office -related use, time and circumstances warranting. AS IMPROVED As improved, the subject involves a Class-C office suitable for single or multitenant occupancy. The current use is legally permissible (non -conforming) and physically possible. The improvements continue to contribute value to the property and based on our analysis, the existing use is financially feasible and the maximally productive use. The most likely buyer for the subject property is as follows: • Owner -User Therefore, it is our opinion that the highest and best use of the subject, as improved, is for continued office related use. .c 33 CB10H E Marshall Williamson Small Business Incubator, South Miami, Florida 0 2018 CBRE, Inc. Sales Comparison Approach Sales Comparison Approach The following map and table summarize the comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda. 27 I Pembroke Pines Miramar Francis East Coast Buffer Water S. Taylor Wildlife... Preserve Area W01 Miami Lakes O 826 Hialeah Hollywood 4P Hallandale Beach Aventura A1A Doral sa6 Miami Beach Miami O Coral Gables spa Key Biscayne Kendall 826 994 Cutler Bay 0 Naranja Homestead Florida City Biscayne Bay Aquatic Preserve t m ar U h m Biscayne National Park Map data ©2018 Google 61 34 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida .. SG I'd CBRE, Inc. Sales Comparison Approach SUMMARY OF COMPARABLE OFFICE SALES Transaction YOC / NRA Actual Sale Adjusted Sale Price NOI No. Property Name Type Date Reno'd (SF) Price Price t Per SF t Oa. Per SF OAR 1 Single Tenant Office, Sale Sep-16 1958 5,700 $500,000 $500,000 $87.72 0% n/o n/a 6229 Miramar Parkway Miramar, FL 33023 2 Single Tenant Hollywood Office, Sale Dec-16 1973 4,453 $625,000 S625,000 S140.35 0% n/a n/a 3211 NW 74th Avenue Hollywood, FL 33024 3 1180 Building, Sale Nov-17 1962 5,000 $543,000 $543,000 $108.60 0% n/a n/a 1180 N Kromo Avenue Homestead, FL 33030 4 Plaza 2650 Office, Sale !an-18 1972 23,169 $4,200,000 S4,200,000 $181.28 83% $9.06 5.00% 2650 SW 27th Avenue Miami, FL 33133 Subi. Marshall Williamson Small Business --- --- 1983 6,408 --- --- --- 95% $7.67 --- Pro Incubator, Forma 5825 Southwest 68th Street South Miami, FL 33143 Adustod sale price for cash equivalency, loaso-up and/or deferred maintenance (whore applicable) Compiled by CBRE Our search for comparable sales focused on smaller Class-C offices that best reflect the subject's overall marketability. Comparables # 1, 2, & 3 were used as single tenant offices at the time of sale and Comparable #4, the largest, was operating as a multitenant office at the time of sale. They reflect a range of locations, quality/condition, and marketability that effectively bracket the subject. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. 62 35 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 0 2018 CBRE, Inc. Sales Comparison Approach OFFICE SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 Transaction Type Sale Sale Offer Sale Transaction Date Sep-16 Dec-16 Nov-17 Ian-18 Year Built/Renovated 1958 1973 1962 1972 Property Type Office Office Office Office NRA (SF) 5,700 4,453 5,000 23,169 Actual Sale Price $500,000 $625,000 $543,000 $4,200,000 Adjusted Sale Price 1 $500,000 $625,000 $543,000 $4,200,000 Price Per SF 1 $87.72 $140.35 $108.60 $181.28 Occupancy 0% 0% 0% 83% NOI Per SF n/a n/a n/a $9.06 OAR n/a n/a n/a 5.00% Adj. Price Per SF $87.72 $140.35 $108.60 $181.28 Property Rights Conveyed 0% 0% 0% 0% Financing Terms 1 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Market Conditions (Time) 10% 0% 0% 0% Subtotal - Price Per SF $96.49 $140.35 $108.60 $181.28 Location 15% 0% 10% -15% Size 0% 0% 0% 5% Age/Condition 0% 0% 0% -5% Quality of Construction 0% 0% 0% 0% Parking 0% 0% 0% 0% Tenancy 0% 0% 0% 0% Amenities 0% 0% 0% 0% Revenue 0% 0% 0% -5% Total Other Adjustments 15% 0% 10% -20% Indicated Value Per SF $110.97 $140.35 $119.46 $145.02 Absolute Adjustment 25% 0% 10% 30% 1 Adjusted for cash equivalency, lease -up and/or deferred maintenance (where applicable) Compiled by CBRE Subj. Pro Forma 1983 Office 6,408 95% $7.67 63 36 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida 2 �' ? CBRE, Inc. Sales Comparison Approach SALE PRICE PER SQUARE FOOT CONCLUSION Prior to adjustment, the comparables form a wide range of values from $88 to $181 per square foot. After adjustment, the range is narrower from $1 11 to $145 per square foot and an average of $129. All of the comparables were given similar weight in our final reconciliation. The following chart presents the valuation conclusion: SALES COMPARISON APPROACH NRA (SF) X Value Per SF — Value 6,408 X $110.00 = $704,880 6,408 X $140.00 = $897,120 VALUE CONCLUSION Indicated Stabilized Value $800,000 Deferred Maintenance $0 Lease -Up Discount $0 Indicated As Is Value $800,000 Rounded $800,000 Value Per SF $124.84 Compiled by CBRE 37 Marshall Williamson Small Business Incubator, South Miami, Florida i 64 0 201 c CBRE, Inc. Income Capitalization Approach Income Capitalization Approach The following map and table summarize the primary comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda. Miami NW 41 st St NW 361h StCDInternational 948 1 qu AIr 0 WYNWOC 9 ALLAPATTAH 826 836 836 953 O LITTLAONA Fontainebleau FLAGAMI 968 41 41 Westchester West Miami 0 933 University Park Coral Terrace Vizcaya Museum & Gardens NORTHEAST COCONUT GROVE Olympia Tropical Park 959 COCONUT GROVE Heights 973 826 Coral Gables Glenvar Miami Sunset Heights South 986 a 1 0 0 Map data ©2018 Google 65 38 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida :'0 B CBRE, Inc. Income Capitalization Approach SUMMARY OF COMPARABLE OFFICE RENTALS YOC / Quoted Expense Pass Thru/ Gross Equiv. No. Property Name Location Rendd Property Type Occ. NRA (SF) Rental Rate Bash Stop Amt. Rent 1 Sunset Office Park 9380 SW 72nd Street 1981 Vintage Office 96% 65,455 $18.00 PSF Full Service n/a Miami, FL 2 27th Avenue Multitanant 348.352 NW 271h Avenue 1971 Vintage Office 100% 3,075 $15.60 PSF Medifi-d G • n/a Mo$ Miami, FL 3 Airport West Office 3425 NW 73rd Avenue 1990 Vintage Office 100% 4,864 $14.00 PSF m-"-d coves n/a Miami, FL 4 Freestanding Commercial 5391 NW 36th Street 1951 Renovated 0% 4,748 S15.00 PSF NNN S6.00 PSF S21.00 PSF Building Miami Springs, FL 5 Multi -Tenant Retail/Office 1565 & 1569 NW 361h Street 1940 Renovated 82% 27,085 $20.00 PSF NNN S5.00 PSF $25.00 PSF Miami, FL / 2017 6 Freestanding Commercial 2190 NW 71h Street 1961 Renovated 100% 6,315 $17.00 PSF NNN S9,00 PSF $26.00 PSF Building Miami, FL 7 The Lending - Class C 7235, 7255, 7400 3 7415 1981 Renovated 98% 175,073 $19.00 PSF NNN $5.50 PSF $24.50 PSF Corporate Center Drive Miami, i. / 2016 Subi. Marshall Williamson Small 5825 Southwest 68th Street, 1983 Vintage Office 100% 6,408 Business Incubator South Miami, Florida Compiled by CBRE DISCUSSION/ANALYSIS OF RENT COMPARABLES Our market rent survey included offices in vintage condition as well as renovated spaces. Our research of the local area did not find any Class C spaces currently available, and so we had to widen our search to central Miami -Dade and west Kendall. Given the subject's proximity to Coral Gables, we did find a good amount of Class A/B offices with a range of asking rents from about $30 to $45 psf, as well as offices within retail buildings asking about $25 psf. However these are not direct competitors of the subject and do not reflect achievable rents for the subject even after renovation. Rent Comparables #1, 2, & 3 represent the best data for comparison with the subject in 'as is' condition. They are of similar age and amenities and they form a range of asking rents from $14.00 to $18.00 psf on modified or full service gross terms. We note that Comparable #1 is twin buildings directly on Sunset Drive and brackets the upper extents of the range. Given the subject's interior street location and stand-alone nature, Comparables #2 & 3 are considered the best indicators of market rent. In order to judge if there is upside rent potential to justify a renovation program for the subject, we included Comparables #4 through 7, which are renovated offices. Notably these listings have slightly higher base rents, but all are on NNN terms whereby the tenant is responsible for a pro rata share of most operating expenses. In order for a more direct rent comparison we calculated the gross equivalent rents for these listings as shown in the right -most column in the table above. Comparables #4, 5, 6, & 7 form a much higher range of gross rents from $21.00 to $26.00 psf, but it is important to note that these brokers admit they are more negotiable in terms of base rent and reimbursements. Furthermore, most of these listings are situated directly on primary streets. Considering the subject's location within a mixed -use block, the gross ee 39 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida C 201 F CBRE, Inc. Income Capitalization Approach CREDIT LOSS The credit loss estimate is an allowance for nonpayment of rent or other income. The subject's credit loss is detailed as follows: CREDIT LOSS Year Total % PGI CBRE Estimate $897 1.0% Compiled by CBRE EXPENSE REIMBURSEMENTS We modelled the subject's leases on full service gross terms whereby all operating expenses are included in the base rent. EFFECTIVE GROSS INCOME The subject's effective gross income is detailed as follows: EFFECTIVE GROSS INCOME Year Total $/SF FY 16/17 $41,748 $6.51 FY 17/18 Budget $45,000 $7.02 CBRE Estimate $84,329 $13.16 Compiled by CBRE Our income forecasts are market -based and bear little resemblance to the subject's historical operation as a business incubator. OPERATING EXPENSE ANALYSIS Expense Comparables The following chart summarizes expenses obtained from recognized industry publications and/or comparable properties. 42 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida Z, I E CBRE, Inc. Income Capitalization Approach EXPENSE COMPARABLES Comparable Number 1 2 Subject Location Miami W Palm Beach South Miami, FL NRA (SF) 39,069 37,392 6,408 Expense Year 2017 Budget 2017 Pro Forma Revenues $/SF $/SF $/SF Effective Gross Income $14.10 $21.12 $13.16 Expenses Real Estate Taxes $1.89 $1.94 $2.03 Property Insurance 0.56 0.81 0.65 Utilities 0.55 0.56 1.00 CAM/Repairs 0.47 2.03 1.00 Janitorial 0.37 0.23 0.35 Management Fee 0.46 0.80 0.46 Nonreimbursable Landlord Expense - - - Replacement Reserves - - - $5.49 Operating Expenses $4.30 $6.37 Operating Expense Ratio 30.5% 30.2% 41.7% 1 (Mgmt. typically analyzed as a % of EGQ 3.3% 3.8% 3.5% Compiled by CBRE The comparable data and projections for the subject are summarized as follows: OPERATING EXPENSES Year Total $/SF FY 16/17 $24,485 $3.82 FY 17/18 Budget $34,280 $5.35 Expense Comparable 1 N/A $4.30 Expense Comparable 2 N/A $6.37 CBRE Estimate $35,155 $5.49 Compiled by CBRE The subject's per square foot operating expense pro forma is in line with the total per square foot operating expenses indicated by the expense comparables indicated above. NET OPERATING INCOME CONCLUSION The comparable data and projections for the subject are summarized as follows: NET OPERATING INCOME Year Total $/SF FY 16/17 $17,263 $2.69 FY 17/18 Budget $10,720 $1.67 CBRE Estimate $49,175 $7.67 Compiled by CBRE Our pro forma forecast is based on our market rent estimate as a multitenant office in 'as is' condition. 70 43 OB4RE Marshall Williamson Small Business Incubator, South Miami, Florida 2018 CBRE, Inc. Income Capitalization Approach DIRECT CAPITALIZATION Direct capitalization is a method used to convert a single year's estimated stabilized net operating income into a value indication. Comparable Sales Only one of the comparable sales presented in our sales comparison approach reported a capitalization rate, so we augmented this with six more sales from Miami -Dade and Broward Counties. These are presented in the table below in summary format to protect confidentiality. The overall capitalization rates (OARs) confirmed for the comparable sales analyzed in the sales comparison approach are as follows: COMPARABLE CAPITALIZATION RATES Sale Sale Price Sale Date $/SF Occupancy Buyers Primary Analysis OAR 4 Jan-18 $181.28 83% Trailing Actuals 5.00% Secondary Sale Sale Price Sale Date $/SF Occupancy Buyers Primary Analysis OAR 5 May-16 $255.33 100% Pro Forma (Stabilized) 7.07% 6 Dec-16 $143.50 0% Trailing Actuals 6.92% 7 Mar-17 $215.43 67% Pro Forma (Stabilized) 6.35% 8 Oct-17 $201.27 100% Pro Forma (Stabilized) 7.45% 9 Feb-18 $200.84 98% Pro Forma (Stabilized) 6.53% 10 Jul-18 $212.11 100% Pro Forma (Stabilized) 7.54% Indicated OAR: 94% 5.00%-7.54% Compiled by: CBRE Published Investor Surveys The results of the most recent investor surveys are summarized in the following chart. OVERALL CAPITALIZATION RATES Investment Type OAR Range Average CBRE Miami (Suburban) Class A 6.50% - 7.25% 6.88% Class B 7.50% - 8.50% 8.00% Class C 8.50% - 9.50% 9.00% CBRE Suburban Office Class A Class B Class C PwC Suburban Office National Data 5.00% - 9.50% 6.38% 6.50% - 10.00% 8.24% 7.50% - 13.00% 9.67% 4.35% - 10.00% 6.61 % Indicated OAR: 7.00%-8.00% Compiled by: CBRE 44 Marshall Williamson Small Business Incubator, South Miami, Florida CBRE 71 9 3 CBRE, Inc. Income Capitalization Approach Market Participants The results of recent interviews with knowledgeable real estate professionals are summarized in the following table. OVERALL CAPITALIZATION RATES Company OAR Income Date of Survey CBRE 7.00%-7.75% Market Rent Jul-18 Cushman & Wakefield 6.50%-7.50% Market Rent Aug-18 Indicated OAR: 6.50%-7.50% Compiled by: CBRE Band of Investment The band of the investment technique has been utilized as a crosscheck to the foregoing techniques. The Mortgage Interest Rate and the Equity Dividend Rate (EDR) are based upon current market yields for similar investments. The analysis is shown in the following table. BAND OF INVESTMENT Mortgage Interest Rate 4.50% Mortgage Term (Amortization Period) 25 Years Mortgage Ratio (Loan -to -Value) 75% Mortgage Constant (monthly payments) 0.06670 Equity Dividend Rate (EDR) 9.00% Mortgage Requirement 75% x 0.0667 = 0.05003 Equity Requirement 25% x 0.09000 = 0.02250 100% 0.07253 Indicated OAR: 7.30% Compiled by: CBRE Capitalization Rate Conclusion The following chart summarizes the OAR conclusions. OVERALL CAPITALIZATION RATE - CONCLUSION Source Indicated OAR Comparable Sales 5.00%-7.54% Published Surveys 7.00%-8.00% Market Participants 6.50%-7.50% Band of Investment 7.30% CBRE Estimate 7.00% Compiled by: CBRE 72 45 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida © 2018 CBRE, Inc. Income Capitalization Approach Direct Capitalization Summary A summary of the direct capitalization is illustrated in the following chart. DIRECT CAPITALIZATION SUMMARY Income $/SF/Yr Total Potential Rental Income $14.00 $89,712 Vacancy 5.00% (0.70) (4,486) Credit Loss 1.00% (0.14) (897) Net Rental Income $13.16 $84,329 Vacancy & Credit Loss 6.00% 0.00 - Effective Gross Income $13.16 $84,329 Expenses Real Estate Taxes $2.03 $12,979 Property Insurance 0.65 4,165 Utilities 1.00 6,408 CAM/Repairs 1.00 61,408 Janitorial 0.35 2,243 Management Fee 3.50% 0.46 2,952 Operating Expenses $5.49 $35,155 Operating Expense Ratio 41.69% Net Operating Income $7.67 $49,175 OAR - 7.00% Indicated Stabilized Value $702,493 Rounded $700,000 Deferred Maintenance - Lease -Up Discount - Indicated As Is Value $702,493 Rounded $700,000 Value Per SF $109.24 Compiled by CBRE 73 46 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida r. 7J 1 E CBRE, Inc. Reconciliation of Value Reconciliation of Value The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS Sales Comparison Approach $800,000 Income Capitalization Approach $700,000 Reconciled Value $800,000 Compiled by CBRE The subject is suitable either for single or multitenant occupancy. In valuing the subject, the Sales Comparison Approach yields a higher value due to the influence and participation of owner - users, and is therefore considered most reliable and has been given primary emphasis. The income capitalization approach is well supported and is given secondary emphasis. Based on the foregoing, the market value of the subject has been concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is Fee Simple Estate July 27, 2018 $800,000 Market Rent 'As Is'- Multitenant Fee Simple Estate July 27, 2018 $14.00 psf Market Rent 'As Is' - Single Tenant Fee Simple Estate July 27, 2018 $12.50 psf Market Rent As Renovated - Multitenant Fee Simple Estate July 27, 2018 $18.50 psf Market Rent As Renovated - Single Tenant Fee Simple Estate July 27, 2018 $18.00 psf Compiled by CBRE 74 47 CBE Marshall Williamson Small Business Incubator, South Miami, Florida C 201 c CBRE, Inc. Assumptions and Limiting Conditions Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other .conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE- has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off -site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super -efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. 75 48 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida ? 713 CBRE, Inc. Assumptions and limiting Conditions (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 76 49 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida V 2018 CBRE, Inc. Assumptions and Limiting Conditions 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 77 50 CBRE Marshall Williamson Small Business Incubator, South Miami, Florida ,)13 CBRE, Inc. Addenda ADDENDA 78 0 2018 CBRE, Inc. Addenda Addendum A IMPROVED SALE DATA SHEETS 79 C 2018 CBRE, Inc. Sale Office - Single Tenant No. I Property Name Single Tenant Office Address 6229 Miramar Parkway Miramar, FL 33023 County Broward Govi./Tax ID 5141 25 04 1750 Net Rentable Area (NRA) 5,700 sf _ 14 to Condition Average Number of Buildings N/A - Parking Type/Ratio Surface/ N/A Year Built/Renovated 1958/ N/A FloorCountN/A Occupancy Type Single Tenant Land Area Net 0.507 oc/ 22,087 sf Actual FAR 0.26 Zoning N/A Construction Class/ Type N/A/ N/A External Finish Masonry Amenities N/A Transaction Details Type Sale Interest Transferred Fee Simple Condition of Sale None Recorded Buyer CLAYBORNE GROUP LLC Buyer Type N/A Recorded Seller EXOTICA ACADEMY INC Marketing Time 16 Month(s) Listing Broker Roger Shields Doc # N/A Buyers Primary Analysis N/A Static Analysis Method N/A Source Static Analysis -N/A NOI / sf Static Analysis -N/A IRR N/A OER Static Analysis -N/A Expenses /sf Static Analysis -N/A Cap Rate Static Analysis -N/A Primary Verification Roger Shields (786) 447-2049 Transaction Date 09/28/2016 Recording Date N/A Sale Price $500,000 Financing N/A Cash Equivalent $500,000 Capital Adjustment $0 Adjusted Price $500,000 Adjusted Price / sf $87.72 Occupancy at Sale N/A Underwritten Occupancy Static Analysis -N/A Potential Gross Income Static Analysis -N/A Vacancy/Collection Loss Static Analysis -N/A Effective Gross Income Static Analysis -N/A Expenses Static Analysis -N/A Net Operating Income Static Analysis -N/A This sale represents a single tenant office building sold on September 28th, 2016 for $500.000 or $87.72/SF. The broker reported that the property was being utilized as a beauty school prior to sale and that the owner of the property was headed into bankruptcy. However, the broker stated that the property was not foreclosed on and sold for market value. The property was supposedly in "bad shape" when it sold which contributed to its extended time on the market (1 year and 3 months). Additionally, of closing, there was a $2,500 seller contribution. Furthermore, the broker mentioned that the sale might have included two parcels, however, after reviewing the deed and contiguous properties, no additional information could be verged. RE 0 2018 CBRE, Inc. C B R E Sale Office - Single Tenant 2 Property Name -No. Single Tenant Hollywood Office .. Address 3211 NW 74th Avenue Hollywood, FL 33024 County Broward Gcvt./Tax ID 51-41-03-05-0630 Net Rentable Area (NRA) 4,453 sf v. Condition Average - - - Number of Buildings 1 Packing Type/Ratio Surface/ N/A _ —= Year Built/Renovated 1973/ N/A Floor Count 1 Occupancy Type Single Tenant Land Area Net 0.289 ac/ 12,600 sf Actual FAR 0.35 ' Zoning C-3 Construction Class/Type C/Average Exterrol Finish Masonry Ameniti,es N/A Type Sale Primary Verification Deed, Listing Broker -Dominic Montalbano Interest Transferred Fee Simple Transaction Date 12/15/2016 Condition of Sale Arms -Length Recording Date 12/27/2016 Recorded Buyer Sprague Real Estate Holdings, Inc. Sale Price $625,000 Buyer7ype N/A Financing All Cash Recorded Seller 3211 North 74th Avenue, Inc. Cash Equivalent $625,000 Marketing Time N/A Capital Adjustment $0 Listing Broker Montalbano Commercial Adjusted Price $625,000 Doc # 114118573 Adjusted Price / sf $140.35 Buyers Primary Analysis N/A Occupancy at Sale N/A Static Analysis Method N/A Underwritten Occupancy Static Analysis -N/A Source Static Analysis -N/A Potential Gross Income Static Analysis -N/A 'NOI / sF Static Anolysis-N/A Vacancy/Collection Loss Static Analysis -N/A IRR N/A Effective Gross Income Static Analysis -N/A OER Static Analysis -N/A Expenses Static Analysis -N/A Expenses /sf Static Analysis -N/A Net Operating Income Static Analysis -N/A Cap Rate Static Analysis -N/A This comparable represents a 4,453 SF single tenant office building located at 3211 NW 74th Avenue in Hollywood, Florida. The improvements were constructed in 1973 on a 0.29-acre site. The building is masonry construction and was considered in average condition at the time of our research. The leasing broker reported the property would require some work prior to occupancy. The property is vacant and available for sale or for lease. Asking base rent is $14.00/SF, NNN. Lease term is negotiable and the owner is seeking 3 years at the quoted rental rate. Concessions are not typically provided; however, a minor build out allowance or free rent would be provided to ready the property for occupancy. The property sold for $625,000 or $140.35 PSF. m P z7,,,CBRE 1� CBRE Offer • - Tenant No. Property Name 1180 Building Address 1180 N Krome Avenue Homestead, FL 33030 County Govt./Tax ID Net Rentable Area (NRA) Condition Number of Buildings Parking Type/Ratio Year Built/Renovated Floor Count Occupancy Type Land Area Net Actual FAR Zoning Construction Class/ Type External Finish Amenities Type Interest Transferred Condition of Sole Recorded Buyer Buyer Type Recorded Seller Marketing Time Listing Broker Doc # Buyers Primary Analysis Static Analysis Method Source NOI / sf Miami -Dade Portion of 10-7812-001-0010 5,000 sf Average 1 Surface/ 4.00:1,000 sf 1962/ N/A 1 Owner/User N/A/ N/A N/A B-1 C/ Average Concrete Block Surface Parking Offer Fee Simple None C&L Investments of Homestead, LLC Private Investor Regional Properties, Inc. 1 Month(s) Gerald Whitney #305-301-5591 30765/811 Price (Primary Unit of Comparison) N/A Static Analysis -N/A Static Analysis -N/A Primary Verification Transaction Date Recording Date Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Adjusted Price / sf Occupancy at Sale Underwritten Occupancy Potential Gross Income Vacancy/Collection Loss Broker, Public Records 11/10/2017 N/A $543,000 Cash to Seller $543,000 $0 $543,000 $108.60 0% Static Analysis -N/A Static Analysis -N/A Static Analysis -N/A F7 IRR N/A Effective Gross Income Static Analysis -N/A OER Static Analysis -N/A Expenses Static Analysis -N/A Expenses /sf Static Analysis -N/A Net Operating Income Static Analysis -N/A Cap Rate Static Analysis -N/A Comments This is the sale of an office building located at the southwest corner of North Krome Avenue and NW 12th Street in Homestead, Miami -Dade County, Florida. The property consists of a 5,000 SF building built in 1962 and considered to be in good -condition. At the time of sale, the property was vacant. The listing price was $675,000 or $135/SF. The property is part of an overall folio number; however, it is in the process of being allocated it's own parcel number. The property sold in November 2017 for $543,000, or $108.60 psf. This was described as an arm's length transaction. m 0 201 B CBRE, Inc. C B R E Sale Office - Multi Tenant No. 4 Property Name Plaza 2650 Office Address 2650 SW 27th Avenue Miami, FL 33133 i�County Miami -Dade Govt./Tox ID 01-4116-023-0060 Net Ren+able Area (NRA) 23,169 sf Condition Average Number of Buildings 1 Parking Type/Ratio Surface/ N/A Year Bvilt/Renovated 1972/ N/A - Floor Count 3Occupancy Type Type Multi -tenant Land Area Net 0.427 or/ 18,600 sf Actual FAR 1.44 Zoning T5 O Construction Class/ Type B/ Average External Finish Concrete Amenities N/A Type Sale Interest Transferred Leased Fee Conditicn of Sale Arm's Length Remaini ig Lease Tenn N/A Recorded Buyer 2650 United, LLC Buyer Type N/A Recorded Seller Steven M. Weinger 81ra J. Kurzbon Marketing Time N/A Listing BFoker N/A Doc # 30842-0746 Primary Verification Transaction Date Recording Date Avg. Credit Rating Sale Price Financing Cash Equivalent Capital Adjustment Adjusted Price Adjusted Price / sf Buyer - Daniel Koweblum/FM Capital O1/17/2018 O1/25/2018 N/A $4,200,000 Market Rate Financing $4,200,000 $0 $4,200,000 $181.28 Buyefs Primary Analysis Static and Yield Capitalization Analyses Occupancy at Sale 83% Static Analysis Method Trailing Actuals Underwritten Occupancy N/A Source Buyer Potential Gross Income N/A NOI / sf $9.06 Vacancy/Collection Lou N/A IRR N/A Effective Gross Income N/A OER N/A Expenses N/A Expenses /sf $0.00 Net Operating Income $210,000 Cap Rate 5.00% This comparable represents the sale of a 23,169-square foot multi -tenant office building located at 2650 SW 37th Avenue, Miami, Florida. The properly is a few blocks north of US Highway 1 /Dixie Highway on the southbound side of SW 371h Ave/Douglas Road. The building was constructed in 1972 on a 0.4-acre site. The site is zoned T5-0, which allows for high density development of most property types with a 5-story maximum and 65 residential units per acre. The property sold in January 2018 for $4,200,000 or $181.28/SF. The buyer reported occupancy of 83% and a 5% cap rate based on in place income. This was a value add transaction with potential for future assemblage or redevelopment. The buyer is now quoting $30/SF, MG with an undisclosed TI package to update a large vacant space. The site is two blocks north of the Douglas Station mixed -use redevelopment project. The project includes 970 residential units, 150 hotel keys, 70,000-square feet of retail and a public plaza with Metromil access. W CBRE, CBRE Addenda Addendum B RENT COMPARABLE DATA SHEETS 0 201 B CBRE, Inc. Rental Survey Office - Multi Tenant I Properly Name Sunset Office Park -No. Address 9380 SW 72nd Street k ., Miami, FL 33173 County Miami -Dade ' Govl./Tox ID 30-4033-001-0250 i i+ Net Rentable Area (NRA) 65,455 sf Condition Average Number of Buildings 2 Parking Type/Ratio Open/ 2.87:1,000 sf Year Built/Renovated 1981/ N/A _ Floor Count 2 Occupancy Type Mulfi-tenant Land Area Net 2.300 ac/ 100,188 sf Actual FAR 0.65 Zoning RU-5A Construes ion Class/ Type C/ Average External Finish Stucco Amenities N/A Reimbursements Full Service Rent Changes/Steps N/A Occupancy 96% Free Rent 1 Mo(s). Tenant Size 450 - 877 sf TI Allowance $0.00 per sf Lease Tenn 36 - 60 Mo(s). Reimbursement Amount $0.00 per sf Survey Date 08/2018 Total Oper. & Fixed Exp. N/A Verification Bony Hechtman / 305-270-0913 Annual Base Rent $18.00 per sf Free Annual Tenancy Term Type of Rent Changes/ Rent TI Base This comparable consists of twin office buildings, each with 2 stories and approximately 32,728 SF, with a street address of 9370 & 9380 SW 72nd Street, Miami, Florida. The buildings were constructed in 1981 and are of vintage design and appeal, but with adequate offstreet parking. Tenancy primarily consists of local professional and medical tenants. Currently four small office suites of 450, 604, 839, and 877 SF are vacant and available at an asking rent of $18.00 psf on full service gross terms. These rates and terms are consistent with recent leasing at the property the past 12 to 18 months. '.*M CBRE. CBRE Property Name Address County Govt./Tax ID Net Rentable Area (NRA) Condition Number of Buildings Parking Type/Ratio Year Built/Renovated Floor Count Occupancy Type Land Area Net 271h Avenue Multitenant Offices 348-352 NW 27th Avenue Miami, FL 33125 Miami -Dade 01-4104-012-0900 3,075 sf Average 1 Open/ 1.95:1,000 sf 1971/ N/A 1 Multi -tenant 0.098 ac/ 4,250 sf Actual FAR 0.72 Zoning T6-8 O Construction Claw/ Type C/ Average External Finish Stucco Amenities N/A Reimbursements Modified Grow Rent Changes/Steps N/A Occupancy 100% Free Rent 1 Mots). Tenant Size 1,000 sf TI Allowance $0.00 per sf Lease Term 36 - 60 Mo(s). Reimbursement Amount $0.00 per sf Survey Date 08/2018 Total Oper. & Fixed Exp. N/A Verification N/A Annual Base Rent $15.60 per sf Actual Leases Free Annual Tenancy Term Type of Rent Changes/ Rent TI Base Tenant Name Use Type Size (Mo.) Lease Start Date Reimbs. Steps (Mo.) Allowance Rate No actual leases available for this property. Commen This comparable is a vintage commercial building subdivided into 3 equal bays with a street address of 348, 350, 352 NW 27th Avenue, Miami, Florida. The bays have good frontage to the street and the building has minimal setback, such that the bays are suitable for office or retail use. Most tenants are office or personal service providers. In August 2017 the middle bay, #350, became vacant until May 2018 when a new lease was signed that commenced the following month. Disclosed lease terms are $1,300 monthly rent, or $15.60 psf, net of tenant utilities. There was one month of free rent granted, but no TI Allowance. W 02018 CBRE, Inc. G B R E Rental Survey Office - Single Tenant No. 3' Property Name Airport West Office Address 3425 NW 73rd Avenue . Miami, FL 33122 - County Miami -Dade Govt./Tm ID 30-3026-021-0070 Net Rentable Area (NRA) 4,864 id '.pa.,..,.,: - Condition Average Number of Buildings 1 �g B Parking Type/Ratio Open/ 2.47:1,000 sF Year Built/Renovated 1990/ N/A Floor Count 1 Occupancy Type Single Tenant Land Area Net 0.353 cc/ 15,354 sf Actual FAR 0.32 Zoning I11-2, Industrial Consaution Class/ Type C/ Average Extemal Finish Stucco Amenities N/A Quofr>d Terms Reimhc -sements Modified Gross Rent Changes/Steps Occupancy 100% Free Rent Tenant Size 4,864 sf TI Allowance Lease Term 36 Mo(s). Reimbursement Amount Survey Date 08/2018 Total Oper. & Fixed Exp. Verification William Colas / 786-371.6037 Annual Base Rent Tenancy Term Type of N/A 0 Mo(s). $0.00 per sf $0.00 per sf N/A $14.00 per sf Free Annual Rent Changes / Rent TI Base Steps (Mo.) Allowance Rate No actual leases available for this property. This is o single tenant office building with a street address of 3425 NW 73rd Avenue, Miami, Florida. It is situated in between Miami Internat'I Airport and the Palmetto Expressway/SR-826 in the Airport West submorket. This is an area dominated by warehouses and offices that focus on freight forwarding and import/export services via the airport. The building is described as being in fair to average condition inside and out, and was offered in'as is' condition. It become vacant in March 2017 and anew lease commenced in November 2017. Specified terms ore $14.00 psf in rent on a modified gross basis (net of tenant utilities, interior maintenance). m CBRE, Inc. C B R E RentalOffice Property Name Freestanding Commercial Building Address 5391 NW 361h Street Miami Springs, FL 33166 ' County Miami -Dade ,+`tt Govt./Tax ID 05-3119-010-4700 Net Rentable Area (NRA) 4,748 sf t _ r Condition Average Number of Buildings 1 - -_ Parking Type/Ratio Open/ 2.95:1,000 sf Year Built/Renovated 1951/ N/A Floor Count 1 Occupancy Type Single Tenant Land Area Net 0.310 ac/ 13,500 sf Actual FAR 0.35 Zoning B-2, General Business Construction Claw/ Type C/ Average External Finish Stucco Amenities N/A Reimbursements NNN Occupancy 0% Tenant Size 4,748 sf Lease Term 36 - 60 Mo(s). Survey Date 08/2018 Verification George Smith / 786.797-0903 Actual Leases Tenancy Term Type of Rent Changes/Steps 3%/CPI Free Rent 1 - 3 Mo(s). TI Allowance $5.00 - $10.00 per sf Reimbursement Amount $6.00 per sf Total Oper. & Fixed Exp. N/A Annual Base Rent SI5.00 per sf Free Rent Changes / Rent TI Annual Base Comments This comparable is a freestanding commercial building directly across the street from Miami International Airport with a street address of 5391 NW 36th Street, Miami, Florida. The building has good frontage along a primary commercial artery but lacks windows or a commercial storefront, and has been used as a uniform supply store for the airlines. It is now vacant and suitable for office or retail services use at an asking rent of $15.00 psf NNN- Operating expenses were not disclosed, and for purposes of this analysis we have estimated reimbursements of $6.00 psf, for a gross asking rent of $21.00. Some free rent and TI Allowance are available as indicated above. 0 2016 C8RF. inr. C B R E Property Name Multi -Tenant Retail/Office Address: 1565 & 1569 NW 36th Street Miami, FL 33142 County Miami -Dade GoN./Tax ID 01-3123-019-0110 Net Rentable Area (NRA) 27,085 sf Condition Average Number of Buildings 1 Parking Type/Ratio SurFace/ N/A Year Built/Renovated 1940/2017 Floor Count 1 Occupancy Type Multi -tenant Land Area Net 0.918 ac/ 40,000 sf Actual PAR 0.68 Zoning T6-8-0 Construction Class/ Type C/ Average External Finish Masonry Amenities N/A ii' _ IIIILI: I� �CIR II�III:)) I111111111111 IImill _ - __�I�IfI �mimO i((i(iimiimmmiminmuum IT` Reimbursements NNN Rent Changes/Steps 3%Annually Occupancy 82% Free Rent 0 Mo(s). Tenant Size 5,000 sf TI Allowance $0.00 per sf Lease Tern 36 Mo(s). Reimbursement Amount N/A Survey Date 06/2018 Total Oper. & Fixed Exp. N/A Verification Luis Guevara / 305-576-7474 Annual Base Rent $20.00 per sf Free Annual Tenancy Tenn Type of Rent Changes / Rent TI Base property. This comparable represents a 27,085-square foot retail/office building located at 1565 & 1569 NW 36th Street, Miami, Florida. The improvements were originally constructed in 1940 and partially renovated in 2017. The space is suitable for retail or office users and has good parking' in the rear. The leasing broker reported the quoted rent for a 5,000-square foot vacant space is $20/SF, NNN. The most recent lease was for approximately 5,000-square feet at $15/SF, NNN for a 3-year term. The tenant was a computer processing company and the space was delivered as is. The property is approximately 82% occupied. Liu 31E CBRE. CBRE Property Name Freestanding Commercial Building Address 2190 NW 7th Street Miami, FL 33125 County Miami -Dade Govt./Tm ID 01-4103-004-0080 Net Rentable Area (NRA) 6,315 sf Condition Average Number of Buildings 1 Parking Type/Ratio Open/ 3.96:1,000 sf Year Built/Renovated 1961/ N/A Floor Count 1 Occupancy Type Single Tenant Land Area Net 0.376 ac/ 16,365 sf Actual FAR 0.39 Zoning T6.8 O Construction Class/ Type C/ Good External Finish Stucco Amenities N/A Quoted Terms Reimbursements NNN Occupancy 100% Tenant Size 6,315 sf Lease Term 36 - 120 Mo(s). Survey Date 06/2018 Verification Alejandro Navin / 305-803-5800 Actual Leases Tenancy Term Type of Rent Changes/Steps 3%per year Free Rent N/A TI Allowance N/A Reimbursement Amount $9.00 per sf Total Oper. & Fixed Exp. N/A Annual Base Rent $17.00 per sf Free Annual Rent Changes/ Rent TI Base Steps (Mo.) Allowance Rate No actual leases available for this property. Comments This comparable is a freestanding commercial building at a lighted intersection. The property is situated within the Little Havana neighborhood of the City of Miami, with a street address of 2190 NW 71h Street, Miami. There is also a rear parking lot that contains 25 parking spaces, which is a desirable feature in this submarket. The building interior is described by the leasing agent as an open floor plan, but its lack of commercial glazing or storefront lends it more to office use than retail use. The property was leased in 2017 for $17.00/SF, NNN with an estimated operating expenses of $9.00/SF, reflecting an overall effective rental rate of $26.00/SF. The lease was for 5-years. The property is currently 100% leased. Vl C 201€ CBRE. Inc `B R E Rental Survey Office - Multi Tenant No. 7 Property Name The Landing - Class C Address + 7235, 7255, 7400 & 7415 Corporate Center Drive Miami, FL 33126 County Miami -Dade Govt./Tox ID N/A 7g{ Net Rentable Area (NRA) 175,073 sf Condition Good Number of Buildings 4 Parking Type/Ratio N/A/ N/A Year Built/Renovated 1981 / 2016 Floor Count 1 Occupancy Type Multi -tenant Land Area Net N/A/ N/A Actual FAR N/A Zoning I1.1-2 Constriction Class/ Type C/ Average External Finish Masonry Amenities 24-hour Security, Conference Facility, Controlled Access, Indoor Athletic Facility, Institutional Quality, On -Site Restaurant / Deli, On -Site Management, On -Site Security Personnel, Outdoor Amenity, Public Business Center, Surface Parking, Video Monitored Occupancy 98% Tenant Size 1,100 - 18,000 sf Lease Term 63 Mo(s). Survey Date 07/2018 Verification Richard Bamonte / (305) 381-6450 Tenancy Term Type of Apr 201 Free Rent 0 - 3 Mo(s). TI Allowance $0.00 - $55.00 per sf Reimbursement Amount $5.50 per sf Total Oper. & Fixed Exp. N/A Annual Base Rent $19.00 per sf Annual Free TI Base Rent Changes / Rent Allowance Rate pet i ic. Rare Office 5,232 63 New Apr 2018 NNN 3%Annually 3.00 N/A $19.00 Technologies U.5. INC Polio Operations, Office 10,357 132 New Feb 2017 NNN 3%Annually N/A $55.00 $15.25 Inc. This comparable represents the single -story office buildings located at 7235, 7255, 7400 & 7415 Corporate Center Drive, Miami, Florida. The improvements were constructed between 1981 & 1983 as a part of The Landing, which is an I I -building business park consisting primarily of Class A, B and C office space. The park is located on the west side of Miami International Airport. It was acquired by current ownership in 2014 and subsequently renovated. Asking base rent is $21/SF, NNN. The most recent leases indicate base rents of $19.00-$20.00/SF, NNN with expense reimbursements of approximately $5.50/SF and annual escalations of 3%. Free rent and/or TI is provided. Free rent is typically outside the lease term. Tls have been as high as $55/SF as spaces are being renovated to Class A interior finishes and some tenants also converted rent abatement into additional TI dollars. These four buildings are 97.5% occupied with one vacancy. g ;JG CBRE, Inc C B R E Addenda Addendum C LEGAL DESCRIPTION 92 0 2018 CBRE, Inc. 7/251'2018 Miami -Dade Official Records - Print Document N O. 561-314-0769 FAX N O. 561-314-0770 r ,EXACTA - INC. L.B. Ml 3460 FAIRLANE FARMS RdAD, SUITE 6, WELLINGTON. FL. 33414 MARSHALL WILLIAMSOM BUILDING A CONDOMINIUM 5825 S. W. 68th STREET, SOUTH MIAM, FL. 33143 BOUNDARY SURVEY SHEET 1 OF 2 LEGAL DESCRIP770N. LOTS 18, 19. 20. 21 AND 22. IN BLOCK 8. OF REALTY SECURITIES CORPORATION'S TOWNSITE OF LARKINS. ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 2. PAGE 105, OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY. FLORIDA. SURVEY NOTES: 1. THIS SURVEY REPRESENTS A BOUNDARY SURVEY AS DEFINED BY STANDARDS OF PRACTICE FOR SURVEYING AND MAPPING. CHAPTER 5J-17, FLORIDA ADMINISTRATIVE CODES. THIS SURVEY IS NOT VAUD WITHOUT THE SIGNATURE AND THE ORIGINAL RAISED SEAL OF A FLORIDA LICENSED SURVEYOR AND MAPPER. 2. THE SYMBOLS REFLECTED IN THE LEGEND AND ON THIS SURVEY MAY HAVE BEEN ENLARGED FOR CLARITY. THE SYMBOLS HAVE BEEN PLOTTED AT THE CENTER OF THE FIELD LOCATION AND MAY NOT REPRESENT THE ACTUAL. SHAPE OR SIZE OF THE FEATURE THE INFORMATION DEPICTED ON THIS SURVEY REPRESENTS THE RESULTS OF A FIELD SURVEY ON THE DATE INDICATED AND CAN ONLY BE CONSIDERED AS A REPRESENTATION OF THE GENERAL CONDITIONS EXISTING AT THAT TIME. 3. THE BEARINGS SHOWN HEREON ARE BASED ON BEARING OF S. 8702'41 " W.. ALONG A LINE 5.00 FEET NORTH OF AND PARALLEL WITH THE NORTH RIGHT OF WAY LINE OF S.W. 68th STREET AND REFER TO THE FLORIDA STATE PLANE COORDINATES SYSTEM, EAST ZONE, 1983 (1990) ADJUSTMENT. 4. THE SURVEYOR DID NOT INSPECT THE PROPERTY SHOWN HEREON FOR ENVIRONMENTAL HtAZARDS. IRRIGATION EQUIPMENT, TREES AND LANDSCAPING NOT LOCATED OR SHOWN HEREON.FENCES AND WALL DIMENSIONS ARE APPROXIMATE. THE SURVEYOR DID NOT DETERMINE OWNERSHIP OF FENCES AND WALLS. SUBSURFACE UTILITIES, FOUNDATIONS AND ENCROACHMENTS WERE NOT LOCATED AND ARE NOT SHOWN HEREON. ADDITIONS OR DELETIONS TO SURVEY MAPS OR REPORTS BY OTHER THAN THE SIGNING PARTY OR PARTIES ARE PROHIBITED WITHOUT WRITTEN CONSENT OF THE SIGNING PARTY OR PARTIES. 5. EXACTA COMMERCIAL SURVEYORS. INC.. DID NOT SEARCH THE PUBLIC RECORDS OF MAMI-DADE COUNTYY, FLORIDA FOR OWNERSHIP. RIGHTS -OF -WAY, EASEMENTS OR OTHER MATTERS AFFECTING THE PROPERTY BEING SURVEYED. THERE MAY BE ADDITIONAL RESTRICTIONS NOT SHOWN ON THIS SURVEY THAT MAY BE FOUND IN THE PUBLIC RECORDS OF MAMI-DARE COUNTY. FLORIDA. 6. THE PROPERTY SHOWN HEREON LIES WITHIN FLOOD ZONE 8, AS SHOWN IN FLOOD INSURANCE RATE MAP 12086C 0458 L. COMMUNITY NUMBER 120658, CITY OF SOUTH MAMI. MAMI-DADE COUNTY, FLORIDA. MAP REVISED DATE. SEPTEMBER It. 2009. 7. THE INFORMA7ION CONTAINED IN THIS DOCUMENT WAS PREPARED BY EXACTA COMMERCIAL SURVEYORS. INC. EXACTA HAS TAKEN ALL REASONABLE STEPS TO ENSURE THE ACCURACY OF THIS DOCUMENT. WE CANNOT GUARANTEE THAT ALTERATIONS AND/OR MODInCAflONS WILL NOT BE MADE BY OTHERS AFTER IT LEAVES OUR POSSESSION. THIS DOCUMENT MUST BE COMPARED TO THE ORIGINAL HARD COPY (WHICH SEARS THE RAISED SURVEYOR'S CERTIFICATION SEAL IF APPLICABLE) TO ENSURE THE ACCURACY OF THE INFORMATION CONTAINED HEREON AND TO FURTHER ENSURE THAT ALTERATIONS AND/OR MODIFICATIONS HAVE NOT BEEN MADE EXACTA MAKES NO WARRANTIES, EXPRESS OR IMPLIED, CONCERNING THE ACCURACY OF THE INFORMATION CONTAINED IN THIS OR ANY DOCUMENT TRANSMITTED OR REVIEWED BY COMPUTER OR OTHER ELECTRONIC MEANS. CONTACT EXACTA DIRECTLY FOR VERIFICATION OF ACCURACY. 8. THE PROPERTY SHOWN HEREON CONTAINS 0.42 ACRES (18,393 SQUARE FEET). MORE OR LESS. THIS SURVEY IS CERTIFIED TO: SOUTH MAUI COMMUNITY REDEVELOPMENT AGENCY. CERTnCATE: THIS IS TO CERTIFY THAT THIS BOUNDARY SURVEY WAS MADE UNDER MY RESPONSIBLE CHARGE AND IS ACCURATE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. .IAVIER OE LA ROCH A PROFESSIONAL SURVEYOR AND MAPPER NO. 6080 STATE OF FLORIDA 2EXACTA COMMERCIAL SURVEYORS, INC. L.B. 7551 wjawerOexactocomm.com IjjW' 10/0/16 I J.E.C. I "AA I N/A I Book30353/Page46 CFN#20160730032 t u SM 3. _ F Page 46 of 89 93 https:/An djrdeR6j,dadecierk.eom/0fficialrecordsIPrintDocument.aspx?QS=YaoUfOmKry2dgudxi3j4DkaX7GnAZnBLxH3JiywfmHsyACeFpl6EvC2bV... 1/15 Addenda Addendum D CLIENT CONTRACT INFORMATION 0 2018 CBRE, Inc. CBRE, Inc. 777 Brickell Avenue, Suite 1100 Miami, Florida 33131 w .cbre.us/valuation June 6, 2018 lames E. Agner, AM, Ai-GRS, FARICS Sr. Managing Director - Florida & Carib. Evan Fancher Director SOUTH MIAMI COMMUNITV REDEVELOPMENT AGENCY 5825 SW 68" Street, Suite 400 South Miami, Florida 33143 Phone: 305.668.7236 Email: efoncher@southmiamifl.gov RE: Assignment Agreement Office Building Mobley Building, 5825 SW 68"' Street South Miami, Florida Dear Mr. Fancher: We are pleased to submit this proposal and our Terms and Conditions for this assignment. PROPOSAL SPECIFICATIONS Purpose: To estimate the Market Value of the referenced real estate 1. Determine the Market Rent for each of the units 2. Market Value of the subject property 3. Market Rent assuming the entire subject building were rented to a single tenant on a long term lease (10 Years) Premise: As Is Rights Appraised: Fee Simple Intended Use: Internal Decision Making purposes Intended User: The intended user is SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY ("Client"), and such other parties and entities (if any) expressly recognized by CBRE as "Intended_ Users" (as further defined herein). Reliance: Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an 95 Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. Inspection: CBRE will conduct a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of appraisal. Valuation Approaches: All three traditional approaches to value will be considered. Report Type: Standard Appraisal Report Appraisal Standards: USPAP Appraisal fee: $5,500 Expenses: Fee includes all associated expenses Retainer: A retainer is not required for this assignment Payment Terms: Final payment is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. The fee is considered earned upon delivery of the draft report. We will invoice you for the assignment in its entirety at the completion of the assignment. Delivery Instructions: CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report. An Adobe PDF file via email will be delivered to efoncher@southmiamifl.gov. The client has requested No (0) bound final copy lies). Delivery Schedule: Preliminary Value: Not Required Draft Report: 15 business days after the Start Date Final Report: Upon Client's request Start Date: The appraisal process will start upon receipt of your signed agreement and the property specific data. Acceptance Date: These specifications are subject to modification if this proposal is not accepted within 10 business days from the date of this letter. When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties hereto. MM.Cbre.us/valmaim 201c CBRE, Inc. We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us. Sincerely, CBRE, Inc. Valuation & Advisory Services James E. Agner, MAI, AI-GRS, MRICS Sr. Managing Director - Florida & Carib. As Agent for CBRE, Inc. T 305.381.6480 james.agner@cbre.com w .cbre.us/vatualion :. CBRE, Inc. FOR SOUTH MIAMI COMMUNITY REDEVELOPMENT AGENCY ("CLIENT"): ,lbh► 9= Signa�� Date i WiIk. add&r QIAO�A'- Name Title Phone Number E-Mail Address ADDITIONAL OPTIONAL SERVICES Assessment & Consulting Services: CBRE's Assessment & Consulting Services group has the capability of providing a wide array of solution -oriented due diligence services in the form of property condition and environmental site assessment reports and other necessary due diligence services (seismic risk analysis, zoning compliance services, construction risk management, annual inspections, etc.). CBRE provides our clients the full complement of due diligence services with over 260 employees in the U.S. that are local subject matter experts. Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full complement of consulting services, or you may reach out to us at WhitePlainsProposals@cbre.com. We will route your request to the appropriate manager. For more information, please visit wwwxbre.com/assessment. ~a Initial Here - w .cbre.us/vatucrion C 207& CBRE, Inc. Addenda Addendum E QUALIFICATIONS 0 2G 18 CBRE, Inc. __— Experience Hector Diaz, MAI, is a Vice President with over 12 years of commercial real estate appraisal and consulting experience throughout South Florida. Mr. Diaz is in the Valuation & Advisory Services Group's Miami office in the Florida/Caribbean Region. His primary geographical location is Southeast Florida, which includes Miami -Dade, Broward, Palm Beach, and Monroe Counties. Mr. Diai s experience encompasses a wide variety of property types including single and multi- family residential, professional/medical/dental offices, automobile dealerships, retail shopping centers, mixed -use residential, industrial flex warehouses, bulk distribution, cold storage warehouses, research and development, service stations and convenience stores, financial institutions, restaurants, and marinas and working waterfront. Professional Affiliations / Accreditations • Appraisal Institute— Designated Member (MAI) • Certified General Real Estate Appraiser, State of Florida, #RZ2803 Education • University of South Florida, Tampa, FL — Bachelor of Science in Electrical Engineering - 1989 Clients Represented Fifth Third Bank • Bonk of the Ozarks Popular Community Bank • Ally Financial • SunTrust Bank PNC Bank • Mercantil Bank TD Bank • Iberia Bank • Bank of the West Ocean Bank • AIG Investments • Bank Hapoolim B.M. BB&T • Biscayne Bank FirstBank Florida • JP Morgan Chase Bank • Florida Community Bank 100 ® 2012 CBRE, Inc. RICK SCOTT, GOVERNOR f KEN LAWSON, SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date: NOV 30, 2018 DIAZ, HECTOR JAVIER 777 BRICKELL AVENUE SUITE 900 MIAMI FL 33131 0 issuFn inrs1nm6 rIIGPl AY AS RFn1IIRFr) RY I AW cwna i isiminnnalaj Clients Represented LNR Partners • Bank of America Merrill Lynch SunTrust Bank PNC Bank Mercantil Popular Community Bank 5/3 Bank Iberia Bank • Santander Bank Regions Bank TD Bank • Bank United BB&T Bank CitiBonk • Deutsche Bank • Ocean Bank • Centennial Bank Bank of the Ozark • First Bank Florida Experience James Agner is the Senior Managing Director of the Valuation & Advisory Services for the Florida - Caribbean Region. Located in the CBRE Miami office since 1995, Mr. Agner has over thirty years of real estate appraisal and consulting experience throughout the State of Florida, with primary experience in South Florida and in the Caribbean. Mr. Agner is a designated member of the Appraisal Institute (MAI) and General Review Specialist (AI-GRS), member of the Society of Golf Appraisers (SGA), and Royal Institution of Chartered Surveyors (MRICS) and is licensed as a Certified General Real Estate Appraiser in the State of Florida and Georgia. He also has provided expert witness testimony in the Circuit Courts - State of Florida and United States Bankruptcy Courts. As Senior Managing Director, Mr. Agner leads a valuation and advisory staff in Miami and Palm Beach Counties that provides exceptional quality appraisal work and client service in South Florida, Treasure Coast and the Florida Keys. He also coordinates all activities for Florida and in the Caribbean, including overseeing new business development, client relations and appraisal quality control production. Mr. Agner is also the National Director of the Golf Valuation Group and the Net Lease Valuation Group for CBRE. Professional Affiliations / Accreditations • Appraisal Institute - Designated Member (MAI), Certificate No. 7791 • Appraisal Institute - General Review Specialist (AI-GRS), Certificate No. 69150 • Society of Golf Appraisers (SGA), Certificate No. 25 • Royal Institution of Chartered Surveyors - Member (MRICS), Certificate No. 7505662 • Certified General Real Estate Appraiser, State of Florida, #RZ382 • Certified General Real Estate Appraiser, State of Georgia, #345321 • Licensed Real Estate Broker, State of Florida, BK402088 Education Florida State University, Tallahassee, FL Bachelors of Science in Business Administration, Marketing - 1981 102 --®2oi8 CarsE,-Mc.-- - } H w IY 0 W U) Z 0 [A Q� J z w Y w 0 Z w 7 0 0 U to Y v w Z 00 w FY 0 J � a J za U� o LL o. o °L 0 a~ LL a 0 aw LIJ U) ~ U) w y y d' m !2 00 z LL Z w a w G (n w Q i a- m`co Q ao J W t N �u-06 wF OM Zw' � Q) o z LLL! > v LL QM cr. fl o UJ aUiEa0. t M C X F-ZW m m n 0 0 0 0 ui N m J cy w W * w w -! 0 w N g • i, d t ',I tO T O M w Cc)N w >LL o W� < W Q � Y O j U U) Zmt.-¢ 103 ¢�cn� CBRE VALUATION & ADVISORY SERVICES HECTOR DIAZ, MAI Valuation & Advisory Services 305-428-6348 Hector.J. Diaz@cbre.com JAMES AGNER, MAI Valuation & Advisory Services 305-381-6480 James.Agner@cbre.com www.cbre.com 104 CBRE