Item O4County of Monroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor David Rice, District 4
IleOI1da Keys
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Mayor Pro Tem Sylvia J. Murphy, District 5
Danny L. Kolhage, District I
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George Neugent, District 2
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Heather Carruthers, District 3
County Commission Meeting
May 16, 2018
Agenda Item Number: 0.4
Agenda Item Summary #4118
BULK ITEM: Yes DEPARTMENT: Assistant County Administrator Kevin
Wilson
TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292 -4441
no
AGENDA ITEM WORDING: Approval of a contract to purchase two (2) parcels in the City of
Layton for use as a portion of the property for a future replacement fire station in Layton and
authorization for the Mayor to execute the contract once signed by the owner. The proposed
purchase price is $577,000 paid out of Infrastructure Sales surtax funds. The contract includes a
lease of the property to the owner for up to three (3) years for a nominal fee.
ITEM BACKGROUND: Mr. Haring's property (two parcels identified as RE# 00387620 - 000000
& RE #00387640 - 000000) adjoins the three (3) parcels owned by the City of Layton on which the
Layton City Hall and existing fire station are located. One of the two parcels contains the Haring
Real Estate and Insurance offices. The other is vacant. Mr. Haring and City of Layton officials
approached the County about the possibility of purchasing the properties for future replacement of
the Layton fire station after hurricane Irma damaged the buildings on the property. Two (2)
appraisals were performed. After corrections for estimated damage, the values were set at $700,000
and $455,000. The average is $577,500. The two (2) Haring parcels comprise 18,750 SF. The three
(3) City of Layton parcels total 18,750 SF. When combined with the Haring properties these would
total 37,500 SF. This is the same size and approximate footprint of the property acquired in 2016 for
the Cudj oe fire station.
The contract includes a lease back provision to allow Mr. Haring to operate his business from the
property at a nominal rent for up to three (3) years. There is a lease cancellation provision should
the County be prepared to move forward with construction of the fire station sooner than three (3)
years.
The City of Layton has indicated a willingness to deed the three (3) City properties to the County
when the County is ready to construct a replacement fire station subject to the County's agreement to
include space for a City Hall office and City Council chambers in any replacement structure. This
latter agreement is not a part of the contract now being approved.
PREVIOUS RELEVANT BOCC ACTION: None
CONTRACT /AGREEMENT CHANGES:
new contract to purchase land
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Agreement for Sale and Punccase Layton Fire Dept (FINAL DRAFT 5 8 18)
2018 -02 -20 Appraisal (Haring)
2017 -11 -21 appraisal 68300 Overseas Hwy, Layton
FINANCIAL IMPACT:
Effective Date: 16 May 2018
Expiration Date: N/A
Total Dollar Value of Contract: $577,000
Total Cost to County: $577,000
Current Year Portion: $577,000
Budgeted: Yes
Source of Funds:
CPI: N/A
Indirect Costs: Staff time
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes
Grant: N/A
County Match: N/A
Insurance Required:
Additional Details: N/A
If yes, amount: $100 /year
REVIEWED BY:
Kevin Wilson
Completed
04/24/2018 6:53 PM
Patricia Eables
Completed
05/01/2018 5:07 PM
James Callahan
Completed
05/02/2018 7:40 AM
Budget and Finance
Completed
05/02/2018 8:16 AM
Maria Slavik
Completed
05/02/2018 8:19 AM
Kathy Peters
Completed
05/02/2018 9:34 AM
Board of County Commissioners
Pending
05/16/2018 9:00 AM
AGREEMENT FOR SALE AND PURCHASE
THIS AGREEMENT is made this day of , 2018, between
MONROE COUNTY, FLORIDA, a political subdivision of the State of Florida, as
"Purchaser" or "COUNTY ", c \o County Administrator, 1100 Simonton Street, Room 2 -205,
Key West, Florida 33040, and HARING PROPERTIES, INC., a Florida for -profit
corporation, as "SELLER ", whose mailing address is P. O. Box 838, Long Key, FL 33001-
0838.
1. In consideration of Ten Dollars ($10.00) in hand, paid by the COUNTY, the receipt of
which is hereby acknowledged, the SELLER agrees to sell to the COUNTY and the COUNTY
agrees to purchase from SELLER those certain lands upon the terms and conditions hereinafter
set forth, and for the purchase price of FIVE HUNDRED AND SEVENTY -SEVEN
THOUSAND DOLLARS AND NO /CENTS ($577,000.00) for all of the lands and other
interests, which lands shall include all tenements, hereditaments, together with all water and
other rights, easements, appurtenances, and any and all of the SELLER'S rights in or arising by
reason of ownership thereunto belonging, owned by SELLER, situated and lying in the County
of Monroe, State of Florida, more particularly described in paragraph 2 below and Exhibit "A"
attached hereto.
2. The property which the SELLER agrees to sell and the Purchaser agrees to buy pursuant to
the terms of this Agreement is that property situated at and commonly known as 68300
Overseas Highway, Layton, Long Key, Monroe County," Florida 33001, and more
particularly described as: Lots 28 and 29, Block 3, Long Key Estates Second Addition
(Alternate Key# 1475742, Parcel ID# 00387620 - 000000) and Lot 30, Block 3, Long Key
Estates Second Addition (Alternate Key# 1475769, Parcel ID# 00387640 - 000000),
including the landscape inventory detailed on Exhibit "C" attached hereto.
3. If the SELLER wishes to proceed with this transaction, the SELLER has until
, 2018, to sign and return this Agreement to the County Administrator at:
Lvlr. iKoman uxastesi
County Administrator
1100 Simonton Street, Suite 2 -205
Key West, Florida 33040
Execution of this Agreement by SELLER shall serve to warranty that HARING
PROPERTIES, INC.; is the sole owner of the property, holds a certificate of good standing
with the Florida Division of Corporations, Florida Department of State, and holds good and
sufficient title to the property subject only to those matters set forth in Exhibit `B" to this
Agreement.
4. The SELLER agrees that it has full right, power and authority to convey, and that it will
convey, to the COUNTY the fee simple title to the property, with legal and practical access
thereto clear, free and unencumbered except as stated above.
Page 1 of 12
5. SELLER shall convey a marketable title to the property to COUNTY subject only to the
aforementioned liens, encumbrances, exceptions or qualifications set forth herein. Marketable
title to the property shall be conveyed by Seller to the COUNTY by a good and sufficient
statutory warranty deed determined according to applicable title standards adopted by authority
of the Florida Bar and in accordance with law.
a. The COUNTY shall have thirty (30) days from the date that the latter of both the
SELLER and the COUNTY fully execute this Agreement (the "Effective Date ")
within which to examine title. If title to the property is found to be other than as set
forth in Exhibit `B" and if such differences render title to the property
unmarketable ( "defects "), then the COUNTY shall, within the specified time period,
notify SELLER in writing specifying the defect(s) and the SELLER will have thirty
(30) days from receipt of notice of the defect(s) within which to remove the
defect(s), failing which the COUNTY shall have the option (to be exercised within
five (5) days after the expiration of the thirty (30) day cure period) of either
accepting the title as it then is or terminating this Agreement. If the COUNTY
terminates this Agreement, the COUNTY and the SELLER shall release one
another without liability to either party of all further obligations under this
Agreement, except those which expressly survive the termination or expiration
hereof.
b. The SELLER will, if title is found defective and unmarketable, use diligent efforts to
correct the defect(s) in title within the time provided therefore, excluding the
bringing of necessary suits.
6. During the pendency of this Agreement, the SELLER further agrees not to do, or suffer
others to do, any act by which the value or title to said lands may be diminished or
encumbered. It is further agreed that any loss or damage occurring prior to the vesting of title
to the property in the COUNTY by reasons of the unauthorized cutting or removal of products
therefrom, or any other hazard, shall be borne by the SELLER. In the event any such loss or
damage occurs, the COUNTY may refuse, without liability, to accept conveyance of said lands
by written notice thereof to SELLER within ten (10) days of being notified of such loss or
damage, in which event this Agreement shall thereupon terminate and the parties shall be
released herefrom (except for these matters which expressly survive the termination hereof).
7. The SELLER further agrees that during the period covered by this Agreement the officers and
accredited agents of the COUNTY shall have at all proper times and with prior notice to
SELLER the right and privilege to enter upon said lands for the inspection and examination of
said lands and the resources upon them. COUNTY agrees to pay and be responsible for paying
all of the costs and expenses of conducting its inspection and examination of said land. The
COUNTY'S agreement to pay such costs and expenses shall survive the termination hereof
and /or the closing hereunder and the making of any payment hereunder. COUNTY shall make
available to SELLER, upon request, copies of all reports, test results, and information derived
from the above - described activities.
Page 2 of 12
8. The COUNTY, at its own expense, shall have sixty (60) days from the Effective Date of this
Agreement in which to conduct and conclude any and all inspections deemed to be necessary as
determined in Buyer's sole discretion, including but not limited to a current Phase 1
Environmental Site Assessment (ESA) to determine the existence and extent, if any, of any
hazardous materials on the property. For the purposes of this Agreement, "hazardous
materials" shall mean any hazardous or toxic substance, material or waste of any kind or any
other substance which is regulated by any environmental law. In the event the COUNTY, in its
sole discretion, determines that a Phase II Environmental Site Assessment (ESA 11) is required,
COUNTY shall have an additional sixty (60) days in which to conduct the Phase 11
Assessment.
a. If either the Phase I or Phase II ESA identifies the presence of hazardous materials
on the property, the COUNTY shall, within the sixty (60) day time period, notify
SELLER in writing of such findings and it shall with such notice provide a copy of
ESA to SELLER.
b. The SELLER will have the right, but not the obligation to, within sixty (60) days
from receipt of such notice at SELLER'S sole cost and expense, assess and clean -up
the property to the extent necessary to bring the ,property into full compliance with
any and all applicable federal, state or local laws.
c. If the SELLER refuses to act or fails to act to bring the property into full compliance
with any and all applicable federal, state, or local environmental laws within such
specified time, this Agreement shall terminate and the COUNTY and the SELLER
shall release one another of all further obligations under this Agreement except for
those which exbressly survive the termination hereof.
9. Closing shall take place on or before , 2018 (the "Closing Date ") and
provided COUNTY does not cancel this Agreement on or prior to the expiration of the
Inspection Period (as hereinafter defined), subject only to the extension of the Closing Date to
allow for the cure of defect(s) in title or the remediation of environmental conditions on the
property, each as above set forth. In the event that the Closing Date is extended to account for
the cure periods related to title defect(s) or property contamination disclosed by the ESA, then
the Closing Date shall be thirty (30) days after such cures are effected or thirty (30) days after
the COUNTY waives the curing of title defect(s) (environmental conditions requiring
remediation by SELLER not being waivable by the COUNTY) and elects to proceed with the
transaction, whichever occurs earlier. Closing on the property may occur prior to that date if all
contingencies in this Agreement have been met and both parties agree in writing to an earlier
date for closing.
10. In consideration whereof, the COUNTY agrees that it will purchase all of said lands and
other interests of SELLER therein at the closing at the purchase price of FIVE HUNDRED
AND SEVENTY -SEVEN THOUSAND DOLLARS AND NO /CENTS ($577,000.00). The
COUNTY further agrees that, upon the preparation, execution and delivery of the deed, as
hereinafter provided, it will cause to be paid to the SELLER the purchase price by a check
drawn on the account of the COUNTY or by federal wire transfer of funds, whichever
SELLER elects by giving written notice to COUNTY at least five (5) days prior to closing.
Page 3 of 12
11. The COUNTY shall pay the following expenses associated with the conveyance of the
property: deed recording fees, abstract fees, survey, the COUNTY's attorney's fees, the pro rata
share of real property taxes and assessments allocable to the period subsequent to the vesting of
title in the COUNTY, or the effective date of possession of such real property by the same,
whichever is earlier, all costs of conducting its inspections of the property, including the ESA.
12. The SELLER shall pay the expenses of documentary stamps to be affixed to the deed, real
estate commissions, if any, to SELLER'S broker only. SELLER and COUNTY shall split
equally the title examination fee and Owner's Title Policy premium. SELLER shall be
responsible for the removal and disposal of trash and debris from the property, if any. Full
possession of the premises shall pass to the COUNTY as of the date payment is made to the
SELLER subject only to the reservations and exceptions stated in this Agreement and any
additional rental provisions for the SELLER to retain possession of the property pursuant to a
Lease Agreement to be entered into between the parties.
13. SELLER will pay (i) the full amount of assessmen
ratified before closing and (ii) the amount of the 1
improvement is substantially completed as of the clos
closing. COUNTY will pay all other amounts. If
installments, COUNTY will pay installments due after c
14. It is mutually understood and agreed
given to the SELLER no later than
SELLER at the following address:
t liens that are certified confirmed and
ast estimate of the assessment if any
ng, but has not resulted in a lien before
special assessments may be paid in
losing.
acceptance of this Agreement shall be
2018. by mail addressed to the
HARING PROPERTIES, INC.
P. O. Box 838
LonelKev. FL 33001. -0838
and shall be effective upon the date of execution by the Mayor of Monroe County, Florida,
and shall be binding upon the SELLER and COUNTY provided that the notice is mailed by
said date.
15. As previously set forth, the Effective Date of this Agreement shall be that date when the
last one of the SELLER and the COUNTY has signed this Agreement.
16. This Agreement may be executed in counterparts each of which will be deemed an
original, but all of which will constitute one and the same instrument. Notwithstanding any
provision of this Agreement to the contrary, the execution and delivery of this Agreement by or
before the Effective Date is contingent upon approval by the Monroe County Board of County
Commissioners by or before the Effective Date.
17. The following additional provisions ( "additional provisions ") shall be deemed to be an
integral part of this Agreement. In the event of any conflict between the additional provisions
and any of the other provisions, terms and conditions of this Agreement, the additional
provisions shall control over those provisions, terms and conditions with which they are in
conflict:
Page 4 of 12
a. COUNTY during the Inspection Period and at its option and at its expense, may
have the property surveyed at COUNTY's expense. The survey will conform to the
minimum requirements for land surveys as developed and adopted by the Florida
Board of Land Surveyors of the Florida Department of Professional Regulation. If
the survey, certified by a registered Florida surveyor, shows any encroachment on
the property or improvements located on the property encroaching on lands of
others, or any other conditions which would render title to the property
unmarketable, same shall be treated as a title defect(s) in accordance with Paragraph
5(a) and (b) above. SELLER will deliver to COUNTY a ,copy of the survey if
existing presently in its possession within ten (10) days of the Effective Date.
b. Within thirty (30) days from the Effective Date, COUNTY shall obtain a title
insurance commitment issued by Oropeza Stones and Cardenas law office, a title
insurance company qualified to do business in the State of Florida (hereinafter, the
"Title Insurance Company "), agreeing to issue to COUNTY, upon recording of the
deed conveying the property to COUNTY, an owner's title insurance policy in the
amount of the purchase price, insuring the fee simple title in and to the property in
the COUNTY, subject only to the exceptions set forth in Exhibit "B" and those
other exceptions which do not render title to the property unmarketable. The title
insurance policy premium relating to the issuance of the COUNTY's Owner's Title
Insurance Policy shall be a shared expense of the SELLER and COUNTY and shall
be at the lowest promulgated rate available.
C. Except as otherwise provided herein, the closing of title shall take place on the
Closing Date, provided that COUNTY has not elected to cancel this Agreement on or
before the expiration of the Inspection Period. The closing of title shall take place at
221 Simonton Street, Key West, Florida 33040, or at such other place in Monroe
County as COUNTY and SELLER may agree upon not later than seven (7) days prior
to the Closing Date. The closing of title shall be accomplished "in escrow ", in
accordance with the customs and practices generally followed in Florida for such
closings and may be a "mail away" closing. The Title Insurance Company, directly
or through its agent, is hereby appointed to act as the closing and disbursing agent
(hereinafter the "Closing Agent "). All closing documents in respect to the property
and closing monies shall be delivered to the Closing Agent on or before the Closing
Date, with instructions to record all recordable documents, update abstracts through
such recording, and if no lien or encumbrance or other matter (other than those
subject to which COUNTY has agreed to accept title to the property) is shown, to
effect distribution of closing documents and closing funds promptly upon completion
of updated examination of the title to the property or, if a lien or encumbrance or
other matters (other than those subject to which COUNTY has agreed to accept on the
property) shall be shown, to promptly notify COUNTY and SELLER and await
further instruction, unless the provisions hereof otherwise direct. The Title Insurance
Company shall insure against the "gap" under F.S. 627.7841, in which event the
foregoing procedure shall not apply and the documents shall be recorded and funds
disbursed on the Closing Date.
Page 5 of 12
d. If COUNTY defaults in its performance hereunder, the SELLER shall have the right
to pursue those remedies which may be available to it in law and /or equity. If
SELLER defaults in its performance hereunder, the COUNTY shall have the right to
pursue those remedies which may be available to it in law and /or equity.
e. SELLER agrees, from time to time and at any time, including but not limited to the
Closing Date, following a reasonable request therefor by COUNTY or the Title
Insurance Company, to execute and deliver to COUNTY such further documents and
instruments in form and substance reasonably satisfactory to the Title Insurance
Company or COUNTY, as applicable, as may be necessary to confirm and /or
effectuate the obligations of SELLER hereunder and the consummation of the
transactions contemplated hereby. COUNTY agrees, from time to time and at any
time, including but not limited to the Closing Date, following a request therefore by
SELLER, or the Title Insurance Company, to execute and deliver to SELLER or the
Title Insurance Company such further documents and instruments in form and
substance reasonably satisfactory to SELLER or the Title Insurance Company, as
applicable, as may be necessary to confirm and /or effectuate the obligations of
County hereunder and the consummation of the transactions contemplated hereby.
The provisions of this Article shall survive the closing of title.
f. Notwithstanding anything contained herein to the contrary, the COUNTY may cancel
this Agreement in its sole and absolute discretion at any time prior to 5:00 p.m. on
that date which is ninety (90) days subsequent to the Effective Date ( "Inspection
Period "). During such Inspection Period, COUNTY shall have the right to inspect the
property and all aspects thereof to determine if same is suitable to COUNTY in its
sole and absolute discretion. Such inspections may include, without limitation, the
preparation of, presentation to and approval by the Monroe County Board of County
Commissioners of a business plan for the post-closing improvement and use of the
property. In the event the COUNTY does not deliver written notice of its election to
cancel this Agreement to SELLER and Escrow Agent on or before 5:00 p.m. on the
last day of the Inspection Period, then, in that event and except as otherwise provided
for in this Agreement, COUNTY shall be deemed to have waived the right of
cancellation set forth in this paragraph and shall proceed with the sale and purchase
transaction as provided herein. In the event the COUNTY does timely deliver written
notice of its election to cancel this Agreement, then this Agreement shall be deemed
cancelled and of no further force or effect whatsoever except for those provisions
hereof which expressly survive the cancellation or termination hereof. COUNTY's
failure or refusal to cancel this Agreement by the expiration of the Inspection Period
shall be deemed to further evidence the approval hereof and the sale and purchase
provided for herein by the MONROE COUNTY BOARD OF COUNTY
COMMISSIONERS.
Page 6 of 12
g. COUNTY and SELLER agree that upon closing, the SELLER may lease the property
described herein from the COUNTY at a nominal fee of One Hundred and 00 /100
($100.00) Dollars per year for up to three (3) years from the closing date pursuant to
terms and conditions as set forth in a separate Lease Agreement to be executed by the
parties.
h. This Agreement integrates and supersedes all other agreements and understandings of
every character of the parties and comprises the entire agreement between them. This
Agreement may not be changed except in writing signed by both of the parties.
Except as expressly provided for herein, no waiver of any rights or obligations
hereunder shall be deemed to have occurred unless in writing signed by the parties
against whom such waiver is asserted and no waiver shall be deemed a waiver of any
other or subsequent rights or obligations.
i. Words used herein in the singular shall
shall include words in the feminine or
so requires.
the plural and words in the masculine
ender where the text of this Agreement
j. The terms, covenants and conditions of this Agreement shall apply to, be binding
upon, inure to the benefit of, and be enforceable` against the parties hereto and their
respective successors and permitted assigns, and legal representatives. This
Agreement shall not be assignable without the prior written consent of the other party
hereto, which may be granted or withheld in such other parties' reasonable discretion.
k. In cony
shall be
costs at
the "Effecti
m. This Agref
the State of
n. Any headinj
only and sh
terms or Drc
iith any litigation arising out of this Agreement, the prevailing party
to recover all costs incurred, including reasonable attorney's fees and
of Droceedim4s.
ent shall not become effective and binding until fully executed by both
id SELLER, the date the last party fully executed this Agreement being
be governed by and construed in accordance with the laws of
serted at the beginning of any article are for convenience of reference
of limit or otherwise affect or be used in the construction of any of the
ons hereof.
o. This Agreement shall not be construed more strongly against either party regardless of
who is responsible for its preparation.
p. All Exhibits attached hereto are incorporated herein by reference and made a part
hereof as if fully rewritten or reproduced herein, including but not limited to Exhibits
"A" `B" and "C" attached hereto.
Page 7 of 12
IN WITNESS WHEREOF, the SELLER has hereunto signed this Agreement as of the
date below written and the SELLER, for and in consideration of the Ten Dollars ($10.00)
hereinabove acknowledged as received, has and does hereby grant unto the COUNTY or its
authorized representative, or any other officer or agent of the COUNTY authorized to purchase
said lands, the right to enter into this Agreement on , 2018, and to purchase
said lands as herein provided. Execution hereof by the COUNTY by or before
2018, shall be deemed to evidence approval hereof by the MONROE
COUNTY BOARD OF COUNTY COMMISSIONERS.
THIS IS TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY
UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR TO SIGNING.
SELLER:
HARING PROPERTIES, INC.
By: Date:
Authorized Signature
Print Name
Print Title
PURCHASER: "COUNTY "'
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By: Date:
Mayor David Rice
ATTEST: KEVIN MADOK, CLERK
By:
Deputy Clerk
MONROE COUNTY ATTORNEY'S OFFICE
APRROVE4 AS TO OqM n _,
PATRICIA E4BLES
ASSISTANT COU A ORNEY
DATE: m
Page 8of12
EXHIBIT "A"
(Legal Description)
That property situated at, and commonly known as, 68300 Overseas Highway, Layton, Long
Key, Monroe County, Florida 33001, and more particularly described as:
Lots 28 and 29, Block 3, Long Key Estates Second Addition
(Alternate Key# 1475742, Parcel ID4 00387620 - 000000)
and
Lot 30, Block 3, Long Key Estates Second Addition
(Alternate Key# 1475769, Parcel ID4 00387640 - 000000) `
according to the map or plat thereof, as recorded in Plat
Book 4, Page 127, of the Public Records of Monroe
County, Florida.
Page 9 of 12
EXHIBIT `B"
(Exceptions to Title)
1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing
in the public records or attaching subsequent to the effective date hereof but prior to the date
the proposed insured acquires for value of record the estate or interest or mortgage thereon
covered by this Commitment.
2. Taxes and assessments for the year 2018 and subsequent years,
payable.
3. Standard Exceptions:
A. Any encroachment, encumbrance, violation, variation, or adverE
the Title that would be disclosed by an accurate and complete lar
B. Rights or claims of parties in possession not shown by the public
C. Any lien, or right to a lien, for services, labor, or
furnished, imposed by law and not shown by the publi(
D. Taxes or assessments which are
4. Any claim that any portion of the insure
including submerged, filled or artificially
5. Any lien provided by County Ordinance c
city, town, village„ or port authority for
sewer or gas system supplying the insured
NOTE The Company reserves the right
review of the proposed documents ere
ascertaininiz details of the transaction.
ch are not yet due and
stance affecting
of the Land.
heretofore or hereafter
as existing liens in the public records.
sovereign lands of the State of Florida,
ads accreted to such land.
Chapter 159, Florida Statutes, in favor of any
d service` charges for service by any water,
arther requirements and /or exceptions upon its
estate or interest to be insured or otherwise
NOTE If the proceeds of the loan to be secured by the insured mortgage are deposited with the
Company or its authorized agent, Item 1 above shall be deemed deleted as of the time such funds
are disbursed to or for the account of the borrower. Neither the Company nor its agent shall,
however, be under any duty to disburse any sum except upon a determination that no such
adverse intervening matters have appeared of record or occurred.
Item 3A will be deleted from the policy(ies) upon receipt of an accurate survey of the
Land acceptable to the Company. Exception will be made for any encroachment, setback
line violation, overlap, boundary line dispute or other adverse matter disclosed by the
survey.
Page 10 of 12
Items 313, 3C, and 3D will be deleted from the policy(ies) upon receipt of an affidavit
acceptable to the Company, affirming that, except as disclosed therein (i) no parties in
possession of the Land exist other than the record owner(s); (ii) no improvements have
been made to the Land within 90 days prior to closing which have not have been paid for
in full; and (iii) no unpaid taxes or assessments are against the Land which are not shown
as existing liens in the public records. Exception will be made for matters disclosed in
the affidavit.
6. Restrictions, covenants, conditions, easements and other matters as contained on the Plat of
Long Key Estates Second Addition, recorded in Plat Book , Page of the Public
Records of Monroe County, Florida.
7. State Law under Chapter 76 -190 and Chapter 221 of the Florida Administrative Code
for Land Planning for the Florida Keys Area of Critical State Concern as recorded in Official
Records Book 668, Page 43.
8. County Ordinance No. 10 -1977 for the collection of waste in the County of Monroe, State of
Florida, and amendment thereof, County Ordinance No. 13 -1978.
NOTE All recording references in this commitm
Monroe County, Florida, unless otherwise noted.
NOTE In accordance with Florida Statutes
hereunder may present inquiries, obtain it
resolving complaints, by contacting
refer to the public records of
31, please be advised that the insured
.t coverage, or receive assistance in
Page 11 of 12
EXHIBIT "C"
(Detailed Landscape Inventory)
Page 12 of 12
..LAPPRAISAL Co.
February 20, 2018
Mr. Kevin G. Wilson, P.E.
Assistant County Administrator
Monroe County, FL (Florida Keys)
102050 Overseas Highway
Key Largo, Florida 33037
Appraisal Report: 68300 Overseas Highway
Layton, Long Key, Monroe County, FL 33001
P.O. 458843
Our File No.: 112 -18
Dear Mr. Wilson:
3144 \nrthslde prise, Ste 201
Key West, FT 33(40
€ ftea t . 134t5) 296 -4563
F iN (305) 922 -2117
Website: th— kersapprads;vls.esonv
F.- tli:vil: 1 iwt uatla -key wvtviiv.aisail�a ^runt
I performed an appraisal assignment and estimate of the "As Is " Market Value of the Fee Simple Estate
of the subject property commonly known, as 68300 Overseas Highway, Layton, Long Key, Florida
33001, as of Februaryl2, 2018. The reader is advised to review the Scope of Work section within this
report.
The subject property is located on the Overseas Highway, within the City of Layton at approximately
mile market 68 on Long Key. The subject site consists of three contiguous 50 feet by 125 feet
commercial lots. Lots 28 and 29 are improved, while Lot 30 is vacant. The site is an interior rectangular
parcel with a total of 150 feet of frontage along the southerly side of the Overseas Highway extending
southerly, approximately 125 feet in depth. Thus, the overall subject site consists of 18,750 square feet
or 0.43 acres of upland area.
The two westerly lots are improved with a one - story, CBS /wood frame office and residential mixed -use
structure containing a gross building area of 2,625 square feet. In addition, there is a 358 square foot
carport, plus a 61 square feet attached storage shed. The owner - occupied subj ect has been utilized as the
Haring Insurance Agency's Office, plus a two to three bedroom non - transient residence. Per the Monroe
County Property Appraiser's record the subject property was built in 1964.
Ipersonally inspected the subject building and site improvements. The overall site area and dimensions
were referenced from a Monroe County Property Appraiser's records, as a recent survey was not
available. The building dimensions were based on my on site measurements.
Mr. Kevin G. Wilson, P.E.
Assistant County Administrator
Monroe County, FL (Florida Keys)
February 20, 2018
Page 2
The subject property was impacted by Hurricane Irma, which made landfall on September 10, 2017. The
subject building was flooded by storm surge with much of the finishes removed from four feet or less
down. The City of Layton has determined that the substantial damage was approximately $72,000. I have
conservatively considered a Cost to Cure adjustment of $80,000, which has been deducted herein, in
order to arrive at the "As Is" Market Value.
This report contains the results of my investigation and analysis made in order to furnish an estimate of
the "As Is " Market Value of the Fee Simple Estate of the Subject Property. The Fee Simple Estate is
the unencumbered value of the subject property; basically, market rents and terms are considered with
no regard to existing leases and terms. The subject property consists of an owner occupied property,
which is not encumbered by any long term leases. Therefore, only the Fee Simple Interest is included
herein. However, the reader is cautioned that a title search was not made; thus, no other encumbrances
are considered herein.
Market Value is defined as the most probable price in cash (or its equivalency) for which the appraised
property will sell in a competitive market under all conditions requisite to a fair sale. Market value
assumes a normal or reasonable time for exposure on the open market.
Based on market analysis and research, it is my opinion that the "As Is " Market Value of the Fee Simple
Estate of the Subject Property, commonly known as 68300 Overseas Highway, Layton, Long Key,
Florida, 33001, subject to, definitions, assumptions and limiting conditions, as of Februaryl2, 2018 is:
SEVEN HUNDRED THOUSAND DOLLARS
($700,000)
The "As Is" Market Value for the subject property considers no personal property.
This Appraisal Report is intended to comply with the reporting requirements set forth under Standard
Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice. As such, it might not include
full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop
the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses
is retained in the appraiser's file. The information contained in this report is specific to the needs of the
client and for the intended use stated in this report.
This confidential report is prepared for the sole use and benefit of the Monroe County Board of County
Commissioners, is based, in part, upon documents, writings, and information owned and possessed by
the client, Monroe County. This report is provided for informational purposes only to third parties
authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used
in any other manner.
Mr. Kevin G. Wilson, P.E.
Assistant County Administrator
Monroe County, FL (Florida Keys)
February 20, 2018
Page 3
If you have any questions regarding this appraisal report, please feel free to contact me. Thank you for
giving me the opportunity to provide this service for you. This transmittal letter must remain attached
to the report, which contains 82 pages including related exhibits, in order for the value opinion set forth
to be considered valid.
Respectfully submitted,
S
James E. Wilson, MRICS, President
State - certified general real estate appraiser
RZ 2164
email: LLLi r L, -kew iuu'�� �.cozn
Report Attached:
UCoinrn -18 \112 -18 \Conan- 112- 18.wpd
Appraisal Report 68300 Overseas Highway, Layton , FL
TABLE OF CONTENTS
COVER PAGE
LETTER OF TRANSMITTAL
SUMMARY OF FACTS AND CONCLUSIONS ......... ............................... 3
SUBJECT PROPERTY PHOTOGRAPHS .............. ............................... 6
ASSUMPTIONS AND LIMITING CONDITIONS ...... ............................... 13
STATEMAP ...................................... .............................16
FLORIDA KEYS MAP .............................. .............................17
LOCATION MAP .................................. .............................18
AERIAL PLAT MAP ............................... .............................20
PURPOSE & INTENDED USE OF THE APPRAISAL ... ............................... 22
DEFINITIONS ..................................... .............................22
PROPERTY RIGHTS APPRAISED & DEFINITIONS ... ............................... 23
SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS ......................... 24
DEMOGRAPHICS ................................. .............................30
MARKETING TIME / EXPOSURE TIME ............ ............................... 32
OWNERSHIP /SALES HISTORY / HISTORY OF THE SUBJECT ........................ 32
ZONING......................................... .............................32
REAL ESTATE TAX AND ASSESSMENT AND BURDEN ............................. 34
Appraisal Company of Key West Page 1
Appraisal Report 68300 Overseas Highway, Layton , FL
TABLE OF CONTENTS (Continued)
DESCRIPTION OF THE SUBJECT PROPERTY ....... ............................... 39
FLOODMAP ...................................... .............................41
BUILDING SKETCH ............................... .............................45
HIGHEST AND BEST USE ........................ ............................... 46
SCOPE OF WORK ................................. .............................48
COST APPROACH ................................. .............................50
THE INCOME APPROACH ........................ ............................... 51
THE SALES COMPARISON APPROACH ............ ............................... 64
RECONCILIATION AND CONCLUSION ............ ............................... 75
CERTIFICATE OF APPRAISAL .................... ............................... 76
ADDENDA
QUALIFICATIONS OF APPRAISER JAMES E. WILSON ........................ 78
PURCHASE ORDER ....................... ............................... 82
Appraisal Company of Key West Page 2
Appraisal Report 68300 Overseas Highway, Layton , FL
SUMMARY OF FACTS AND CONCLUSIONS
Subject Property: 68300 Overseas Highway, Gulf
Layton, Long Key, Monroe County, Florida 33001
Property Type: Mixed Commercial Office /Residential /Storage Use Property
Overall Land Size:
Zoning:
Flood Zone:
Improvement Site:
Highest and Best Use:
"C ", Commercial zoning district, City of Layton, Florida
FEMA Map 12087C 1719K February 18, 2005
Zone: AE (Elevation 9 Feet)
As Improved for Mixed Commercial /Residential Use
Appraisal Company of Key West Page 3
Site Size and Description
Parcel Parcel
Alternate
Street
Upland Size Land Size
LD. Account No.
Key Address
Frontage
Sq. Ft. Acres ?
1 00387620 - 000000
1475742 68300 Overseas Hwy., Layton, FL 33001
100.001
12,5001 0.29
------- _i________i________J__------
2 ' 00387640 - 000000'
1475769 ' Lot 30 Overseas Hwy., Layton, FL 33001 '
50.00'
6,250' 0.14
Totals:
150.00;
18,750; 0.43
Zoning:
Flood Zone:
Improvement Site:
Highest and Best Use:
"C ", Commercial zoning district, City of Layton, Florida
FEMA Map 12087C 1719K February 18, 2005
Zone: AE (Elevation 9 Feet)
As Improved for Mixed Commercial /Residential Use
Appraisal Company of Key West Page 3
Appraisal Report 68300 Overseas Highway, Layton , FL
Date of Site Visit
Valuation Date:
Report Date:
Value Indications:
Exposure Time:
Extraordinary
Assumptions:
Februaryl2, 2018
Februaryl2, 2018
February 21, 2018
6 to 18 Months based on a list price within 5 percent of appraised
value and based on stable economic conditions.
None
Hypothetical Assumptions: None
Appraisal Company of Key West Page 4
Appraisal Report 68300 Overseas Highway, Layton , FL
APPRAISAL REPORT
This is an appraisal report which is intended to comply with the reporting requirements set forth under
Standard Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice for an appraisal report.
As such, it might not include full discussions of the data, reasoning, and analyses that were used in the
appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the
data, reasoning, and analyses is retained in the appraisers' file. The information contained in this report
is specific to the needs of the client and for the intended use stated in this report. The appraisers are not
responsible for unauthorized use of this report. The reader is referred to the Scope of Work section of
this report.
CLIENT: Mr. Kevin G. Wilson, P.E.
Assistant County Administrator
Monroe County, FL (Florida Keys)
102050 Overseas Highway
Key Largo, FL 33037
OWNER OF Haring Properties, Inc.
RECORD: P.O. Box 838
Long Key, Florida 33001
APPRAISER: James E. Wilson, MRICS, President
State - certified general real estate appraiser
RZ 2164
SUBJECT: 68300 Overseas Highway
Layton, Long Key, Monroe County, Florida 33001
Appraisal Company of Key West Page 5
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
Street View Looking Westerly Along Overseas Highway
Street View Looking Easterly Along the Overseas Highway
Appraisal Company of Key West Page 6
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
Front View of the Subject Property Looking SoutheasterlX
Front View of the Subject Property Looking SouthwesterlX
Appraisal Company of Key West Page 7
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
Side View of the Subject Property Looking Westerly
View of Subject Vacant Lot Looking Northwesterly
Appraisal Company of Key West Page 8
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
View of Subject Vacant Lot Looking Southerly
Interior of Carport
Appraisal Company of Key West Page 9
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
Interior of Garage
Interior View of Kitchen
Appraisal Company of Key West Page 10
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
Interior View of Kitchen
Interior View of Office Waitinz Area
Appraisal Company of Key West Page 11
Appraisal Report 68300 Overseas Highway, Layton , FL
SUBJECT PROPERTY
Interior View of Private Office
Interior View of Office Area
Appraisal Company of Key West Page 12
Appraisal Report 68300 Overseas Highway, Layton , FL
ASSUMPTIONS AND LIMITING CONDITIONS
This Appraisal Report is intended to comply with the reporting requirements set forth under Standard
Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice. As such, it might not include
full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop
the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses
is retained in the appraiser's file. The information contained in this report is specific to the needs of the
client and for the intended use stated in this report.
This confidential report is prepared for the sole use and benefit of Monroe County Board of County
Commissioners, is based, in part, upon documents, writings, and information owned and possessed by
the client, Monroe County. This report is provided for informational purposes only to third parties
authorized to receive it. Appraisal Company of Key West assumes no responsibility if this report is used
in any other manner.
THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS:
This appraisal report has been prepared to comply with my understanding of the requirements of the
Uniform Standards of Professional Appraisal Practice.
Market Value is defined as the most probable price in cash (or its equivalency) for which the appraised
property will sell in a competitive market under all conditions requisite to a fair sale. Market value
assumes a normal or reasonable time for exposure on the open market.
A survey of the subj ect property was not available. Thus, the appraiser could not verify if there are any
easements or encroachments. No responsibility is taken by this office for the accuracy or in regard to
any questions on the nature of encroachments, encumbrances, or dissimilarities in measurement. Any
maps or plats reproduced and included in this report are intended only for the purpose of showing spatial
relationships. They are not measured surveys nor measured maps, and no responsibility for cartographic
or surveying errors is assumed. The appraiser reserves the right to change the final indicated value
herein, if subsequent surveys are made available and any further encroachments and /or easements area
noted.
The subj ect property was impacted by Hurricane Irma, which made landfall on September 10, 2017. The
subject building was flooded by storm surge with much of the finishes removed from four feet or less
down. The City of Layton has determined that the substantial damage was approximately $72,000. I have
conservatively considered a Cost to Cure adjustment of $80,000, which has been deducted herein, in
order to arrive at the "As Is" Market Value.
Appraisal Company of Key West Page 13
Appraisal Report 68300 Overseas Highway, Layton , FL
This appraisal is to be used in whole and not in part, in particular, no part of the contents of this report
shall be conveyed to the public through advertising, public relations, news, sales or other media, without
the written consent and approval of the author, particularly as to valuation conclusions, the identity of
the appraiser or firm with which he or she is connected.
No responsibility is assumed by the Appraisers for matters which are of legal nature, nor is any opinion
on the title rendered herewith. Good title is assumed as a title search was not made available.
The property has been appraised as though free of liens and encumbrances, except as herein described.
Delinquent charges for solid waste collection, stormwater, or central sewage system or other liens against
the subject property have not been considered in the valuation contained herein as a title search was not
made available or conducted by the appraiser. The management of the property is assumed to be
competent and the ownership in responsible hands.
The management of the property is assumed to be competent and the ownership in responsible hands
The Appraiser herein is not required to give testimony in court unless arrangements have been previously
made thereof.
The Appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or
structures, which would render it more or less valuable. The Appraiser assumes no responsibility for
such conditions, or for engineering which might be required to discover such factors.
Information, estimates and opinions furnished to the appraisers, and contained in the report, were
obtained from sources considered reliable and believed to be true and correct. However, no respon-
sibility for accuracy of such items furnished to the Appraiser can be assumed by the Appraiser.
The Americans with Disabilities Act ( "ADA ") became effective January 26, 1992. The appraiser has
not made a specific survey or analysis of this property to determine whether or not it is in conformity
with the various detailed requirements of the ADA. It is possible that a compliance survey of the
property, together with a detailed analysis of the requirements of the ADA, could reveal that the property
is not in compliance with one or more of the requirements of the Act. If so, this fact could have a
negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this
issue, a possible noncompliance with the requirements of the ADA in estimating the value of the
property has not been considered.
Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the
professional appraisal organizations with which the Appraiser is affiliated.
Appraisal Company of Key West Page 14
Appraisal Report 68300 Overseas Highway, Layton , FL
The undersigned Appraiser has no present or contemplated future interest in the property and the
compensation is in no manner contingent upon the value reported.
Possession of this report does not carry with it the right of publication or advertisement of any of its
conclusions, nor may any except the applicant use the same for any purpose without the previous written
consent of the appraisers or the applicant.
This appraisal report has been made in conformity with and is subject to the requirements of the Code
of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which
the Appraiser is affiliated.
This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices
and this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or
the approval of a loan.
The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions
requires the expertise of qualified persons such as architects and engineers. Latent conditions include,
among other things, non - apparent structural conditions; presence of prohibited hazardous wastes;
presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water
contaminants; and many other conditions too numerous to mention which may affect the value of the
property being appraised. An environmental site assessment report for subject property was not
provided. The appraiser is not an expert in the field of environmental hazards. The appraiser has
assumed that subj ect property is environmentally "clean ". As a result, if environmentally clean up and /or
remediation is required then the subject's market value could be adversely affected. The former K.T.'s
Marina about one -half block easterly from the subject had some underground fuel leakage issues years
ago. I believe it has been remediated and the property has been recently razed and redeveloped. An
environmental site assessment might be warranted, if the client so desires.
ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraiser conducting this appraisal,
nor the APPRAISAL COMPANY OF KEY WEST makes any warranty, express or implied, to property
covered by this appraisal, and neither shall have any liability to any person for differences in the value
of the appraised property, or other damages, resulting from discovery of latent conditions (including
those mentioned above and others) on, or in proximity to, the appraised lands.
I hereby certify that to the best of my knowledge and belief the statements of fact contained in this report,
upon which the analyses, opinions and conclusions expressed herein are based, are true and correct; also
this report sets forth all the limiting conditions affecting the analyses, opinions and conclusions
contained in this report; also this report has been made in conformity with the Appraisal Institute.
Appraisal Company of Key West Page 15
Appraisal Report 68300 Overseas Highway, Layton , FL
TATE MAP
w
i
Appraisal Company of Key West Page 16
Appraisal Report 68300 Overseas Highway, Layton , FL
FLORIDA KEYS MAP
FLORIDA
Key Largo MM 99 - 106
Tavernier MM 91 - 92
Plantation Key MM 86 -90
(;5--- Windley Key MM84
Islamorada
Upper Matecumbe Key MM80
d o
M 1�( /E o Loner Matecumbe Key MM74
~
P 0-Fiesta Key MM70
Layton
W r � /
\ 5 ng Key MM66 -69
h Keys MM61
Key
-G sy Key MM57 -
&ar ra ey
a Shores
on
Key y Beach MM54
Vaca Key
Marathon MM50
Pigeon Key MM/
7 -mile Bridge H
Ooh Sunshine Key MM 40
Q Bahia Honda MM 37
Mne h M2T �8
• Mid f l t e or Co a 8
amrod MM 26-27
Summer�land MM 24 2$
SugarNa�` Key 2 -23
Lower Sugarloaf Key MM 17
Saddlebunch Keys MM 13
ig Coppitt MM 10
Boca Chica MM 7 - 8
Stock Island MM 5
• Key West MM 0 -4
Appraisal Company of Key West Page 17
Appraisal Report 68300 Overseas Highway, Layton , FL
LOCATION MAP
Appraisal Company of Key West Page 18
Appraisal Report 68300 Overseas Highway, Layton , FL
AERIAL LOCATION MAP
Appraisal Company of Key West Page 19
Appraisal Report 68300 Overseas Highway, Layton , FL
AERIAL PLAT MAP FOR LOTS 28 & 29
Appraisal Company of Key West Page 20
Appraisal Report 68300 Overseas Highway, Layton , FL
AERIAL PLAT MAP FOR LOT 30
Appraisal Company of Key West Page 21
Appraisal Report 68300 Overseas Highway, Layton , FL
PURPOSE AND INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is to estimate of the "As Is " Market Value of the Fee Simple Estate of the
subject property commonly known as 68300 Overseas Highway, Layton, Long Key, Monroe County,
Florida 33001, as of Februaryl2, 2018.
The intended use of this appraisal is for possible purchase by Monroe County Board of County
Commissioners and incorporate with the adjacent Fire Station to the west.
The intended user of the appraisal report is Monroe County Board of County Commissioners. This
appraisal is for exclusive use by Monroe County Board of County Commissioners. Parties that may
receive a copy of the apprisal or review report do not become intended users unless specified by the
client at the time of engagement.
MARKET VALUE DEFINITION
Market Value: as defined by the Office of the Comptroller of the Currency (OCC) is:
"The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and
assuming the price is not affected by undue stimulus. Implicit in this definition is consummation of a
sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
1) buyer and seller are typically motivated;
2) both parties are well informed or well advised and each acting in what he considers his
own best interest;
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
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.
Appraisal Company of Key West Page 22
Appraisal Report 68300 Overseas Highway, Layton , FL
PROPERTY RIGHTS APPRAISED & DEFINITIONS
This appraisal is made with the understanding that the present ownership of the property includes all the
rights that may lawfully be held under a Fee Simple Estate. These rights are sometimes referred to in
appraisal literature as the "bundle of rights." It includes the right to use, keep others from using, sell,
rent or otherwise dispose of the property. The elements which have been included in this appraisal are
the land and any existing improvements.
Fee Simple Estate Definition According to The Dictionary of Real Estate Appraisal Sixth Edition,
"Fee Simple Estate is 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."
This report contains the results of my investigation and analysis made in order to furnish an estimate of
the Market Value of the Fee Simple Estate of the subject property. The subject property consists of an
owner operated property which is not encumbered by any long term leases. Therefore, only the Fee
Simple Interest is included herein. However, the reader is cautioned that a title search was not made;
thus, no other encumbrances are considered herein.
LEGAL DESCRIPTION: The legal description for the subject property is as follows.
Lots 28, 29 and 30, Block 3, Long Key Estates, Second Addition, according to the Plat thereof, as
recorded Book 4 at Page 127 of the Public Records of Monroe County, Florida.
Appraisal Company of Key West Page 23
Appraisal Report 68300 Overseas Highway, Layton, FL
MARKET AREA (NEIGHBORHOODI ANALYSIS
The subject property is located in an urban, area commonly known as the City of Layton, Long Key in
Monroe County, Florida, which ratified the incorporation on September 18, 1963. It is located
approximately at mile marker 68, and approximately 64 miles northeasterly from Key West, stretching
across twenty -seven bridges. The subject property is located in a residential and commercial area
providing all of the services necessary within an urban area. Being a main population area of the Middle
Keys, Long Key, is supported by the larger, City of Marathon which offers much in terms of commerce,
residential housing and service as well as industrial areas. The main attraction of Layton is Long Key
State Park and the City is famous as a fishing destination, thanks in part to promotion by sports writer
Zane Grey. This is an area of mixed zoning and uses which service the demands and requirements of
the Middle Keys market.
The subject site consists of an rectangular shaped parcel with 150 feet of frontage along the southerly
side of the Overseas Highway and extending 125 feet to the deepwater canal at the rear of the property.
The commercial uses along U. S. Highway No. l include hotels, motels, restaurants, professional offices,
hospital, retail shops and marine laboratory, tourist - related businesses, service establishments, small
recreational and commercial marinas, marine related uses, and mobile home parks.
The Marathon Airport is located about 15 miles easterly from the subj ect property. Marathon Airport is
used for privately owned airplanes, as well as for light commercial and charter traffic which services the
population area. The airport was upgraded with a totally rebuilt terminal in February 1995 at a cost of
$7.8 million. The terminal reflects Florida Keys "Conch Architecture's and encompasses 19,000 square
feet. Although the main commercial carrier at the Marathon Airport has ceased service negotiations with
new providers are still on going. Rent concessions and other perks have offered. Marathon also offers
the only substantially sized shopping district for the Middle Keys community, having two large
commercial shopping centers, as well as many smaller strip shopping centers, utility company offices,
Monroe County offices, schools, etc. The City of Layton has its own municipal sewerage treatment plant.
Throughout the Florida Keys, only Key West and Key Largo provide a similar variety of services. The
subject property is located on the westerly side of the "uptown" Business District. Marathon has
developed steadily over the past three decades; this development accelerated as a result of the conversion
of the Overseas Highway from a two -lane to a four -lane highway in the late 1980's and early 1990's
through Marathon.
Appraisal Company of Key West Page 24
Appraisal Report 68300 Overseas Highway, Layton, FL
Marathon has recently opened a maj or Hyatt hotel with marina and restaurant. There is also a Courtyard
Marriot Courtyard Hotel which recently opened, plus an Hampton Inn is under construction. Many older
mom and pop motels are awaiting redevelopment. Hence, it is anticipated that within the next two years
there well be more than 300 rooms added to the present inventory.
Saply and Demand
The supply of commercial space is limited and new commercial construction has been restricted since
1996 due to a commercial building moratorium that had been in effect until the commercial rate of
growth ordinance ( NROGO) was implemented. Therefore, the current and ongoing regulations are
expected to place upward pressure on price levels of existing units. Even to a greater extent because of
the difficulty and high cost in obtaining building permits for new construction, both residential and
commercial.
Commercial real estate experienced a decline of 30% to 60% during the economic downturn in 2007-
2008. However, it appears that generally the market reached the bottom at the end of 2011 and stabilized
in 2012. There has been more transactions in 2013and 2014, lessening the supply indicating a
strengthening market.
IMPLEMENTATION OF COMMERCIAL R.O.G.O.
Sales of vacant, commercially zoned parcels within the Florida Keys have dwindled over the past few
years due to a commercial building moratorium which existed until 2002, when the non - residential rate
of growth ordinance NROGO went into effect. This system is similar to the residential R.O. G.O. system
in that it awards building permits based on a point system. The Non - Residential Rate of Growth
Ordinance (N.R.O.G.O.) was enacted with an effective date of January 1, 2002. Under the new and
current regulations the maximum allowable square footage for new commercial development is 2,500
square feet per parcel. The ordinance does provide for Administrative Relief in the event that the
applicant is not successful in obtaining an allocation award, a permit, within at least three of four
consecutive annual allocation periods. The remedies for relief are to grant the applicant an allocation
award, offer to purchase the property, or suggest such other relief as may be necessary and appropriate.
General Economic Conditions:
The Florida Keys have flourished over the past two decades with tourism developing as the County's
primary economic base. The County has had tremendous success with its advertising efforts and
attraction of tourists of all Nationalities. Hotels and motel facilities in Monroe County have flourished
over the past decade. However, we experienced a decrease in tourism as a result of the very active
hurricane seasons of 2004 and 2005, followed by the national decline in the real estate housing market
and the current economic recession and credit crisis. However, the tourism and the real estate market
had rebounded, especially the hospitality industry. Furthermore, the traffic count has returned to the
2006 -2007 levels. Hurricane Irma made landfall in the Florida Keys September 10, 2017. The subject
Appraisal Company of Key West Page 25
Appraisal Report 68300 Overseas Highway, Layton, FL
property did not appear to suffer significant storm damage (either wind or storm surge). However, many
properties within the Florida Keys sustained damage. Several high end transient operations in the Upper
Keys have numerous rooms off -line such as the Islander and the Cheeca Lodge. In addition the Hawks
Cay Resort, located in Duck Key (approximately mile marker 60) has recently laid off approximately
250 employees and hopes to re -open by mid - summer 2018. The clean -up process has been non -stop and
effective. However, at this time, the true extent of the impact is unable to measure.
Con cln si on
In summary, the subject property is located in the Middle Keys where there is a concentration of
services, employment and shopping. Only Key West and Key Largo offer similar services, each is
located 40 to 60 miles away. Residential uses are located off the highway; these neighborhoods, as well
as neighboring communities support the commercial businesses in the area. In 1994 -1995, Monroe
County moved some of its divisions to a new facility in Marathon; therefore, increasing the employment
population which requires goods and services. Marathon's central location is appealing, especially with
the increasing availability of services. The neighborhood may be undergoing an increase in desirability
in the future due to improvements with respect to goods and services and its accessibility to the
mainland. Two such developments, representative of Marathon's central region location, include the
opening of Home Depot, Office Depot and two Walgreens Drug stores. Most recently the Winn Dixie
is remodeling and expanding their store.
The surrounding structures are generally well maintained in average to above average condition. The
considerable amount of automobile traffic along U.S. Highway No. 1, a.k.a. the Overseas Highway,
provides good exposure to this area. I anticipate continued improvement in the general quality of the
neighborhood, particularly with the increased demand for this type of property due to building and
environmental restrictions placed on all properties in the Florida Keys.
The following average daily two -way traffic data for U.S. Highway No. 1 was provided by the State of
Florida Department of Transportation:
Appraisal Company of Key West Page 26
Appraisal Report 68300 Overseas Highway, Layton, FL
FACTS ABOUT LAYTON
According to the 2010 census, the population is 184 comprised of 96 Male and 88 Female. The number of
residents was 186 in 2006. The land area covers only 0.2 square miles of which 0.04 square miles is water
(bay bottom). Layton is well known for it sports fishing and Long Key State Park.
History of Layton: In the late 19th century, Long Key was used as a coconut plantation. By 1910, Layton was
becoming famous as a fishing destination, thanks in part to promotion by sports writer Zane Grey. However,
the developing tourist infrastructure on Long Key was largely destroyed by the Labor Day Hurricane of 1935.
After World War II, Mary and Del Layton, who ran a grocery business in Miami, bought 40 acres (160,000
square miles) on Long Key and started developing the property as "Layton's Long Key Fishing Camp," which
grew substantially over the succeeding years.
Layton was incorporated as a town on September 18, 1963. The land that would become Long Key State Park
was acquired between 1961 and 1973; the park opened on October 1, 1969.
Development Includes: based on 2000 US Census Bureau
84 Households and 50 families
Median Income per Household $53,750
Median Income per Family $73,750
Layton is the 12 smallest City in Florida
Survey of Market Participants
The appraiser interviewed or obtained information from the following market participants including Claude
J. Gardner Jr., (Berkshire and Hathaway Realty), Curtis A. Skomp, CCIM, (RE/Max), Brian Schmitt,
Coldwell Bankers Schmitt Real Estate, and George Garrett, Marathon Planning Director, and Mr. Phillip
"Skip" Haring, Administrative Assistant to the Mayor City of Layton. Other commercial Realtors, real estate
investors, tenants and landlords, were also contacted in my research.
In analyzing the active listings of commercial and mixed use properties, it appears that they have been on the
market from about two months to 16 months with continued reduction in listing prices. The mid point of the
listings is about nine months. Well priced properties have sold. The closed comparable sales analyzed for this
appraisal indicated days on market from zero to 160 days. With a mean at 89 days and a medium at 95 days.
A number of active listings for commercial and mixed -use properties are noted as follows.
Appraisal Company of Key West Page 27
Appraisal Report 68300 Overseas Highway, Layton, FL
Advantages and Disadvantages of Subject Property
Strengths
• Neighborhood is almost full developedwith very limited potential fornew construction of competing
office or mixed -use space.
• Great Access to Marathon Airport
• Ample On -Site Parking on the vacant lot
• The Middle Keys market has appreciating land values, which is a significant barrier to entry
• Great Access and Exposure from the Overseas Highway
• Located on a deepwater canal with access to the Long Key Bight and the Atlantic Ocean.
r,
t
Appraisal Company of Key West Page 28
Active Listings of Commercial & Mixed Use Properties
NUS
List S%Yt./ Land
$/SF
$/SF
Days
Number Property Address
Key/Island
Price GBA S% t.
GBA
Land On Market Status
Comments
'12235
iRetail/Service with 1/1 Cottage andseparate
g
572989 Overseas Hwy.
! Marathon !
$1,100,000 4,190 40,600
$262.53
$27.09
421! Active
i
130492 SF Parcel
576372 !81031 Overseas Hwy.
! Islarnorada !
$1,400,000: 8,286: 60,5481
$168.961
$23.121
1821 Active
Vacant ConrmrcialFo=Restaurant with
A partments, Ready for Redevelopnient
577448 90184 Overseas Hwy.
; Islarnorada i
$1,495,5001 6,017; 31,5001
$248.55!
$47.48!
74! Active
lFomer Bank Branch Bldg. with Drive -Thai,
i
i
i i
i i
i
i
i
i TWO -Story CBS
One-Story CBS, Multi-Unit, Fortner Bank
572069 82681 Overseas Hwy. Islanioada $1,500,000; 8,750; 15,070; $171.43; $99.54; 492; Active
L
- - - -
Li
_--- _---- i
- - - -
! Branch with D ive -Tlrru
576491 ! 14125th Street Qiff
! Marathon !
$2,200,000! 6,1281 68,290]
$359.01!
$32.22!
177! Active
i Two -Story CBS, Multi -Unit, Fomer Church
575806 122966 Overseas Hwy.
1 Cadjoe Key 1
$490,0001 1,958 12,9631
$250.261
$37.80
2341 Active
11 -Story Elevated Wood Fratre , 6 Office Suites
lFomer Bank Branch Bldg. with Drive -Thai,
123552 l305720verseas Hwy. ! Big Fine Key ! $589,000! 1,975: 28,158! $298.23 $20.92i 556! Active
i 10ne -Story CBS
575626 i 30971 Avenue A
! Big Pine Key !
$699,000! 2,271: 26,095!
$307.791
$26.79!
253! Active
i One -Story CBS w/ 3 ConnnBays
----1------------1--------1------1---
i 3 Retail/Office Bays, new roof, One -Story,
571602 !2797 Oven eas Hwy. ! Marathon ! $525,000! 2,520: 5,600! $208.33! $93.751 539! Contiigent !
iZoned MU
Mean
$252.79
$45.41
325
Median
$250.26
$32.22
253
Minimum
$16896
$20.92
74
Maximum
$359.01
$99.54
556
Advantages and Disadvantages of Subject Property
Strengths
• Neighborhood is almost full developedwith very limited potential fornew construction of competing
office or mixed -use space.
• Great Access to Marathon Airport
• Ample On -Site Parking on the vacant lot
• The Middle Keys market has appreciating land values, which is a significant barrier to entry
• Great Access and Exposure from the Overseas Highway
• Located on a deepwater canal with access to the Long Key Bight and the Atlantic Ocean.
r,
t
Appraisal Company of Key West Page 28
Appraisal Report 68300 Overseas Highway, Layton, FL
Weakness:
Finding reliable workforce and even management is difficult in the Florida Keys due to the extremely
high cost of living and lack of affordable housing.
Hurricane Irma made landfall in the Florida Keys September 10, 2017. The subject property did suffer some
storm damage along with many properties within the Florida Keys. Several high end transient operations in
the Middle to Upper Keys have numerous rooms off -line. In fact, in Hawks Cay, located in Duck Key
(approximately mile marker 60) has recently laid off approximately 250 employees and hopes to re -open by
mid - summer 2018. The clean -up process has been non -stop and effective. However, at this time, the true
extent of the impact is not known.
Appraisal Company of Key West Page 29
Appraisal Report 68300 Overseas Highway, Layton, FL
DEMOGRAPHICS
In terms of demographic trends taking place in Layton, Florida, the following data has been compiled by from
the CCIM Site To Do Business within a 40 -mile radius of the subject property:
Gesri"
58455-68705 Overseas Hwy, Long Key, Florida, 33001
Ring: 40 smile radius
Prepared by Esri
Summary
Census 2010..:
2017:
2022
Population
34,929
36,852.
38,476
Households
16,068
16,891
17,607
Families
9,416
9,820
14,198
Average Household Sire
2.14
2115
2115
Owner Occupied Hr ing Units
10,348
1 0,248
1€1,633
Renter Oeeupied Housing Units
5,720
6,643
6,474
Mediae, Age
49.6.
52.3
54.2
Trends: 2017 - 2022 Annual. Rate
Area
State
National
Population
0.87%
1.36%
6183' .,
Households
7,.30 A
0.79°,6,
Famines
0. 76%
1.25
0.71 W.
owner HHs
0.74
1 -1,9%
0.729
Median Household Income
2.61%
2.1.34?a
2.,12
2017
2022:
Households by Income
Number
Percent.
Number
Percent:.
,$15,000
1,768
10.5x:6
1,793
10.ZT.
$15,000 - $2:4,999
1.,775
10.59 "0
7,687
9.6W0
$25,000 - $34,999
5.,009
10,7%
1,664
9.51%
$35,000 - $4.9,999
1.905
11.3"':
1,597
9. ],%
$50,040 - $74,9'99
3,354
39.11
3,,107
17.6%
$75,040 - $99,994
2,005
1.1.9
2,224
12.69
$1.00,000 - $149,999
2,310
13.7%
2,833
16.1`4'
$150,1600 - 3199,999
785
4.6
3,087
6.2%
$20[1.4£10+
1,177
7.0
1,614
9.2%
Medusa HsuseFneld I-me
$56,537
$64,416
Average Household 1'ncnma
$83,644
$99,302
Per Capita lnrnme
$38,609
$45,678
Census 2010
2017
1111
2022
-.
Population by Age:
Number
Percent ...
Number
Percent:
Number
Percent:
0- 4
1,355
3.9' 9 !0
1..245
3.4
1,230
3.2 °,6
S-9
1,326
3.84'0
1,431
3.9%
1,411
3.7'?6
10 - 14
1,481
4.2%
1,517
4.1 0 ,'0
1,640
4.31
Is- i9
1,571
4.5%
1,431
3.9 0 .
1,.555
4.0%
20- 24
1,387
4.0
1..329
3.6
1,179
3.1%
25 - 34
3,288
9.4%
3,477
1.4
3,.258
8.596
35 - 44
4,245
12.2 °l0
3,952
10.7
4,215
1.1. 096
45- 54
6,492
1816
5,755
15.6
5,2738
13.5%
55 - 64.
6,886
a4.7%
7.541
20.59'0
'7,495
19.51
65- 74
4,.304
12.3
6,051
16.496
7,.257
18.91'.
75 - 84
1,979
5,7:0
2,358
6.49
3,182.
8.3 f
615+
61.7
1.8415
765
2.1n/o
847
2.2'6
Census 2016 ..
2017
202'2:.
"m and rthniclty:
Number
Percent:
:Number
Pement
.Number.
Percent.
White A[-
32,628
93.45-6
33,904
92.0
35,030
91.01
blaek Alone
918
2.6%
1,176
3..2%
7,369
3.51
American Indian Alone
1.45
0.4%
171.
015
7.94
01.5'?'0
Asian Alone
27H
11.8°"0
374
1.0%
45.5
1.24'.
P-Jir. ltilandrr Alone
2Z
0.1%
24
0.1%
2.7
0.19'0
Some other Race Alone.
373
1.1. in
475
1'3%
544
1, 4W..
Tvm or Mnre Races
565
1.6%
735
2.0%
861
2.2%
Hispanic origin (Any Race)
6,671
1:1.1%
8,20£1
22.3%
9,513
24.7
tiara Nut.: te. ,-p, in cui rr, <Iiarx.
9-ire. U'S u , ary F 11, I ,ts €trr
2061 -,12(322
February 20, 2618
Appraisal Company of Key West Page 30
Appraisal Report 68300 Overseas Highway, Layton, FL
esn' ®eMOgraphic and IncOme Profil
58455-68705 Overseas Hwy, Long Koy� Floriida, 33001
Ring: 40 rnile radius
Prepared by Esr¢
Trends 2417 - 2022
2.5
u 2
l.s
3�,
W!
s
IM Area
0.5
state
USA
9
populat
H ouseholds
Fa €4111le5 Owner HH5
y
Median HH i€{c9�
Population by Age
20-
18
16
14
12
a 8
�
5
2917
4
2922
2
0
9 -4 5 -9 10 -14
1.5 -1 20 -24
25-34 35-44 45-54 55 -54 155-74
75-84 851 .
2017 Household Income
2017 Population by Race
sxsu - saaM
94
zu »,
_
5Mx:•"9K -
s3sM sz�K
121 P1.
$C)
w
76
•,s 1. S.K
59
w 50-
49
$2G9M-
39
19.9"
'Y.4'!v
20
1 SJ
White Black Am 1d
Asian Paco €ic Cltner Two+
2 0717 Percenr. Hispanic Origin; 22 3
5 e. U.S .'C us 16110, C_rvsv s 2N O Surnrnary lrihx s sri > a•,ts - n i 200 d 20.22.
February 29, 2918
r
i
Appraisal Company of Key West Page 31
Appraisal Report 68300 Overseas Highway, Layton , FL
EXPOSURE TIME
Exposure time considers the amount of time necessary to affect a sale of the subject property on the valuation
date. In the case at hand, it is my opinion that the exposure time would be between 6 and 18 months, based
on a listing price within 5.0% of my appraised value. This exposure time appears reasonable based on analysis
of the active listings and closed sales utilized herein.
OWNERSHIP
According to the Monroe County Property Appraiser's Records, the subject property is owned by
Haring Properties, Inc.
P.O. Box 838
Long Key, FL 33001
SALES HISTORY OF SUBJECT PROPERTY AND CURRENT CONTRACTS
According to the Monroe County Property Appraiser's records, the subject property's has not sold within the
past five years.
The subject property has not been under contract for sale and purchase nor officially listed for sale over the
past five years.
ZONING AND FUTURE LAND USE
The subject is zoned "C" commercial district. The purpose of the "C" commercial category is to provide
commercial activities that will serve the needs of local residents and tourists, as well as uses that will enhance
the tourist industry in the city and the county. It is also the intent of the city to encourage commercial uses that
reflect the historic, aesthetic, and natural attributes of the Florida Keys. The maximum floor area ratio (FAR)
for this category is 0.60 square feet. Planned developments in accordance with the city's land development
regulations shall be allowed and encouraged in the commercial district.
Appraisal Company of Key West Page 32
Appraisal Report 68300 Overseas Highway, Layton , FL
ZONING AND FUTURE LAND USE MAP
City ofl,ayton, Florida
Comprehensive Plan
Single-Family
500 0 500 1000 Feet Multi- Family
Commercial
institutional
Recreation
—~ Conservation
� Water /Wet areas
M city limits
uruselwlu uo -vz -U z rmu Lutiu use riurnum
Amended; 02-07 -2008 24
Appraisal Company of Key West Page 33
FIGURE 3 -4
CITY OF LAYT€ N, FLORIDA
FUTURE LAND USE MAP
202
Appraisal Report 68300 Overseas Highway, Layton , FL
REAL ESTATE TAXES AND ASSESSMENT
2016 $162,500 $172,710 $10,637 $345,847 $345,847 $4,142.93 $498.32 $0.00 $4,641.25 1
2017 $162,500 $112,330 $11,436 $286,266 $286,266 $3,274.40 $498.32 $0.00 $3,772.72 1
According to the Monroe County Property Appraiser's records the total assessed value for the subject
property is $312,835. Based on the 2017 millage rate of $11.4383 per $1,000 of the subject's real estate tax
burden is $3,578.29, plus the non -ad valorem waste water assessment of $498.32, resulting total tax burden
is $4,076.61. The overall assessment for the subject real property is 45% of my opinion of the value;
therefore, a tax appeal is not feasible. According to the Tax Collector's office the 2017 ad valorem and non -
ad valorem taxes have been paid. Copies of the 2017 real estate and non -ad valorem tax assessment are
included on the following pages. The appraiser was not provided with a title search for the subject property.
Appraisal Company of Key West Page 34
2016 $25,000 $0 $1,694 $26,694 $26,694 $319.78 $0.00 $0.00 $319.78
2017 $25,000 $0 $1,569 $26,569 $26,569 $303.89 $0.00 $0.00 $303.89
Appraisal Report 68300 Overseas Highway, Layton , FL
Real Estate Tax Analysis:
Total Assessment per Sq. Ft. of Building Area: $119.18
Total Assessment per Sq. Ft. of Site Upland Area: $16.68
TaxBurden per Sq. Ft. of Building Area: $1.36
TaxBurden per Sq. Ft. of Site Area: $0.19
Appraisal Company of Key West Page 35
Appraisal Report 68300 Overseas Highway, Layton , FL
REAL ESTATE TAX ASSESSMENT & TAX BURDEN
DANISE 0. HENRIQUEZ. C. F.C. 2017 Paid Real Estate
ME N ROE COUNTY TAX MLECTOR NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS
donom M I
75772
GOLA 1475742
RARING PROPERTIES INC 00367620000000336435
PC Box 838 69300 OVERSEAS HVVY
LONG KEY, FL 3300t
LONG KEY ESTATES SECOND ADDITION P134-127
LONG KEY LOTS 288 29 BILK 3 OR613-729
OR614-5 OR614-59
SCHOOL STATE LAW 1,6080 286,2E8 0 286,266 460.32
SCHOOL LOCAL BOARD 1.7480 286,266 0 280.206 600.39
GENERAL REVENUE FUND 0.6949 286,2E8 0 286,266 1 98.03
F&F LAW ENFORCE JAJL JUDICIAL 1.0530 266,2613 a 200„66 659.34
HEALTH CLINIC 0.0469 286,266 0 286,266 13.4
FLORIDA KEYS MOSQUITO CONTROL 0.4646 286.2130 0 286,266 1 33.011
CITY OF LAYTON 2.4906 286,266 0 286,266 712A7
SO FL WATER MANAGEMENT DIST 0.1275 286,269 0 296,266 36 50
OKEECHOBEE BASIN 9.1384 206,266 0 286,266 N 6
LOVER. & MIDDLE KEYS FIRE &AMB 2.1214 286,266 0 296,266 607.2E
EVERGLADES CONSTRUCTION PRJT 9.0441 206,26t a 286,266 12.62
5F
FIR
TOTAL MILLAGE 11.4383 ADVALOREMTAXES S3 )
NON-AO
LAYTON WASTEWATER DIST 498.a2
r
772.72 NON-ADVALOREMASSSSMENTS $498.32
ONIIRNEIT. AINDASSESSMENT5 $3 Sm ad. f'
,
If a By
1, 2017
_ R10ase Pty
5 00
IF PAID BY
%
DANISE D HIENRIQUg, C.F.C. 2017 Paid Real Estate
MONROE COUg TAX COLL= NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS
1476742 50LA 1475742
00307620000000330436
HARING PROPERTIES INC 68308 OVERSEAS HW(
PO BOX OM
LONG KEY,FL 33001 LONG KEY ESTATES SECOND ADDITION PB4.127
LONG KEY LOTS 28 & 29 OLK 3 OR613-729
OR614-590 OR614-5S
CHECKS ON 4L8- BANKS ONLY TO DAMBE O. HENRIQUE7 010. TAX COLLECTOR PO- BOX 1129, KEY WFET, PL. 88W1 -1 : 1 24
If Postmarked By
� Di9c 31, 2017
Please Pay
$000
Paid 1210712017 RaceiptV 222-17-00000199 $3,652.54
•
zo:
Appraisal Company of Key West Page 36
Appraisal Report 68300 Overseas Highway, Layton , FL
REAL ESTATE TAX ASSESSMENT & TAX BURDEN
DANISE 0. HENRIQUEZ. C. F.C. 2017 Paid Read Estate
MO N ROE COUNTY TAX COLLECTOR NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS
=ET
54 75734' t 611LA 1476769
ut
RARING PROPERTIES INC 00367640000000336435
PO Box 838 0 VACANT LAND
LONG KEY, FL 33G0t
BK 3 LT 30 LONG KEY ESTATES SECOND ADDITION ar
PE4-127 LONG KEY OR775 -I ME OR782-1472
ORW534428013 ORI 3
T i
irrmmr
SCHOOL STATE LAW 1,6080 26.569 0 26,569 42.72
SCHOOL LOCAL BOARD 1.7480 26,569 0 20 46.44
GENERAL REVENUE FUND 9.6949 26,569 0 26,569 18.46
F&F LAW ENFORCE JAJL JUDICIAL 1.0530 26,569 a 28,509 51 95
HEALTH CLINIC 0.0469 26.569 0 26,569 1.25
FLORIDA KEYS MOSQUITO CONTROL 0.4646 26,6611 0 26,569 12.34
CITY OF LAYTON 2.4906 26,569 0 26,569 00.17
SO FL WATER MANAGEMENT DIST 0.1275 26."D 0 26,669 3.39
OKEECHOBEE BASIN (LI384 26,569 0 26,569 3.68
LOVWR & MIDDLE KEYS FIRE &AMB 2.1214 26.6110 0 26 56.36
EVERGLADES CONSTRUCTION PRJT 13.0441 26,569 a 26,569 1.17
5F
TOTAL MILEAGE 11.4383 ADVALOREMTAXES $.383.9
Jed X�T-I 11IN11% I I NON-AD VALOREM &=SW:tM
NDN-ADVALOREMASSSSMENTS
C0.11111EIT.ESAINDASSESSMENT5 $303-89 Sm ad. fo-
IT a By
46C 3t. 2017
R14ASe Pay
51I I3U
IF PAID BY
%
DANISE D HIENRIQUg, C.F.C. 2017 Paid Real Estate
MONROE C
OUgiY TAX COLL= NOTICE OF AD VALOREM TAXES AND NON-AD VALOREM ASSESSMENTS
�=, �711. 50LA 1475769
4767H
L
0030764000000330436
HARING PROPERTIES INC 0 VACANT LAND
PO BOX ON
LONG KEY, FL 33001 BK3 LT 30 LONG KEY ESTATES SECOND
ADDITION P114-127 LONG KEY OR775-1 395
0 R782.1472 0 R 1 053.14 281) B OR 13
ON 4L8- BANKS ONLY TO DAMBE D- HEMQUE7 010. TAX COLLEYfOR PO- BOX 1129, KEY WEffT. PL. &MAI -11 29
If Postmarked By
D.. 31, 2017
Please Pay
$42 Do
Paid 12M712017 Receipt# 222-17-00000199 $294.77
zo:
Appraisal Company of Key West Page 37
Appraisal Report 68300 Overseas Highway, Layton , FL
Real Estate Assessment Analysis:
The six closed comparable sales analyzed in the Sales Comparison Approach indicated an real estate tax
assessment per square foot of gross building range from $125.86 to $173.88 with a mean at $152.04 and
median at $155.50. The subject's 2017 assessment of $119.18 per square feet of gross building area is at the
lower -end of the data; thus a tax appeal does not appear warranted and the assessment appear to be
understated. The current assessment is only 45% of my opinion of final value, which is well below the
assessment to sales price ratios of the above sales comparables.
Appraisal Company of Key West Page 38
Previous Previous
Annual
Diffeience
2017 Assessed 2017
Sale
listing
SP/IP
Sales
Sales 2ndPrice/ Change Agaeciation
In Dates Assessed Asses. PerS.R Tax Burden/
Na
DOM Price
Ratio
Date
Price
Sg R Price
Rate
Years
Value Ratio
(BA Burden S.F. (RA
Sale 1
58i S1,300,000
10001.
N/Aj
NA 1 1
NA 1 1 N/Aj
N/Aj
N/Aj
$1,032,058jj_ 794%j $
125.86 j $ K876.42 j $
1.08
Sale
95! $1,000,000'
110.(P /o
1211/95!
$580,000!
$0.53! $52Q000!
3.0 1 /o
21.M
m.491! 89(P /o! $
173.671$ 9,223.191$
1.64
__ 1____ _L____LL__
Sale € 131 $2,299,000! 99.W /o % 4. 2 7.9 $2,2 91 ,5 28: /ol $ $1
_8 _ 173.88 1$
__5/1/89! _$8244 __ _ ___ __2 1058.94
_ _ __. __ __ _ __. __ _ _ _
___
1.7
Sale4 160 $1,295,000i 949%r N/Ai NAi NA NAr NA NAr$1,007231 81.8 /oT$ 153.15 1 11,463.82 i 1.75
-------=-----=--------------------------------=-----------------------
Sales
i
N AB N/A
N/A
L
i
5/1/09
i
$775,000
L
i
$1.071 - $50,000
L
09 0 /1
i
7.00
L
ii i
$582,459 803% $
- - - - -
i i
157.85 ; $ 5,512.11 $
1 L
1.49
Sale6
a $2950000'
70.2%!
5/3(Y01!
$971,000!
$0.37 $1,679,0001
69%!
14.931
$887,557:: 429/o! $
12282! $ K357.50! $
1.20
Subject
NPan
89
94.8%
33%
76.0%
$152.04 $10,91533
$1.47
Mkdan
95
99.0%
3.6%
80.9%
$155.50 $9,049.81
$1.56
Mninmu
0
70.2%
-0.9%
42.9%
$125.86 $5,512.11
$1.08
Nk-dmtm
160
110.0%
69%
89.0%
$173.88 $22,05894
$1.75
The six closed comparable sales analyzed in the Sales Comparison Approach indicated an real estate tax
assessment per square foot of gross building range from $125.86 to $173.88 with a mean at $152.04 and
median at $155.50. The subject's 2017 assessment of $119.18 per square feet of gross building area is at the
lower -end of the data; thus a tax appeal does not appear warranted and the assessment appear to be
understated. The current assessment is only 45% of my opinion of final value, which is well below the
assessment to sales price ratios of the above sales comparables.
Appraisal Company of Key West Page 38
Appraisal Report 68300 Overseas Highway, Layton , FL
DESCRIPTION OF THE SUBJECT PROPERTY
Site Anal
The subject property is located on the Overseas Highway, within the City of Layton at approximately mile
market 68 on Long Key. The subject site consists of three contiguous 50 feet by 125 feet commercial lots. Lots
28 and 29 are improved, while Lot 30 is vacant. The site is an interior rectangular parcel with a total of 150
feet of frontage along the southerly side of the Overseas Highway extending southerly, approximately 125
feet in depth. Thus, the overall subject site consists of 18,750 square feet or 0.43 acres of upland area.
Easements/Encroachments: A survey of the subj ect property was not available, thus the appraiser could not
verify the existence or not of any easements or encroachments. No responsibility is taken by this office for the
accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in
measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of
showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for
cartographic or surveying errors is assumed. I reserve the right to change the final indicated value herein, if
a recent survey is are made available and any further encroachments and/or easements area noted.
Topographer Although no soil engineering report was made available to me, it appears that the site and most
of the properties in the immediate neighborhood show no signs of any subsurface instability. The subj ect site
is level and slightly above the street grade, with adequate drainage sloping toward the street.
Utilities Municipal services available and currently serving the property include electricity, water and central
sewer system. Additional utility services including: telephone, cable television and LP bottled gas are
available with the private sector. All utilities appeared to be adequate and typical for the area and use. The
electrical and plumbing systems in the buildings appeared to be in average condition.
Census Tract: According to Mr. Jim Anderson of the Tallahassee, Florida Division of the United States
Census Bureau, Monroe County is not divided into Census Tracts; but rather "Block Numbering Areas".
According to 2010 Census Maps, the subject property is located within Block Number 9710.
Flood Zone The subj ect site is located in a Special Flood Hazard Area, specifically Zone AE, Elevation 9 feet,
according to the Federal Emergency Management Agency Flood Insurance Rate Maps of Monroe County,
Appraisal Company of Key West Page 39
Site Size and Description
Parcel Parcel
Alternate
Street
UplandSize Land Size
I.D. Account No.
Key; Address
Frontage
Sq. Ft. Acres
1 '00387620-000000'
1475742 ' 68300 Overseas Hwy., Layton, FL 33001
100.00'
12,500' 0.29
2 00387640 - 000000;
1475769 1 Lot 30 Overseas Hwy., Layton, FL 33001 1
50.00;
6,250; 0.14
Totals:
1
150.00
18,750 0.43
Easements/Encroachments: A survey of the subj ect property was not available, thus the appraiser could not
verify the existence or not of any easements or encroachments. No responsibility is taken by this office for the
accuracy or in regard to any questions on the nature of encroachments, encumbrances, or dissimilarities in
measurement. Any maps or plats reproduced and included in this report are intended only for the purpose of
showing spatial relationships. They are not measured surveys nor measured maps, and no responsibility for
cartographic or surveying errors is assumed. I reserve the right to change the final indicated value herein, if
a recent survey is are made available and any further encroachments and/or easements area noted.
Topographer Although no soil engineering report was made available to me, it appears that the site and most
of the properties in the immediate neighborhood show no signs of any subsurface instability. The subj ect site
is level and slightly above the street grade, with adequate drainage sloping toward the street.
Utilities Municipal services available and currently serving the property include electricity, water and central
sewer system. Additional utility services including: telephone, cable television and LP bottled gas are
available with the private sector. All utilities appeared to be adequate and typical for the area and use. The
electrical and plumbing systems in the buildings appeared to be in average condition.
Census Tract: According to Mr. Jim Anderson of the Tallahassee, Florida Division of the United States
Census Bureau, Monroe County is not divided into Census Tracts; but rather "Block Numbering Areas".
According to 2010 Census Maps, the subject property is located within Block Number 9710.
Flood Zone The subj ect site is located in a Special Flood Hazard Area, specifically Zone AE, Elevation 9 feet,
according to the Federal Emergency Management Agency Flood Insurance Rate Maps of Monroe County,
Appraisal Company of Key West Page 39
Appraisal Report 68300 Overseas Highway, Layton , FL
Florida, Map Number 12087C1719 K, dated February 18, 2005. The subject was built prior to the inception
of FEMA regulations. It does not appear that the subject structure meets the current FEMA elevation
regulations. If the subject structure does not meet current FEMA elevation requirements, and was destroyed
more than 49.9 percent of it's building improvement value, then it would be required to meet FEMA
regulations in effect at the time of reconstruction. Monroe County does participate in a National Flood
Insurance Program and is covered by a regular program. The reader is cautioned that the subject's flood zone
should be verified by a vendor's report as required by Federal regulations.
Appraisal Company of Key West Page 40
Appraisal Report 68300 Overseas Highway, Layton , FL
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Appraisal Company of Key West Page 41
Appraisal Report 68300 Overseas Highway, Layton , FL
Improvement Anal The two westerly lots are improved with a one - story, CBS /wood frame office and
residential mixed -use structure containing a gross building area of 2,625 square feet. In addition, there is a 358
square foot carport, plus a 61 square feet attached storage shed. The owner- occupied subject has been utilized
as a Haring Insurance Agency's Office, plus a two to three bedroom non - transient residence. Per the Monroe
County Property Appraiser's record the subject property was build in 1964.
The following descriptions of the improvements were based upon a physical inspection of the interior and
exterior of the buildings and site improvements, and the Monroe County Property Appraiser's records. A
construction summary of the building improvements follows:
Foundation & Floors: The subject structure is built on concrete footer foundation with a concrete
slab on grade. The floors were finished with a combination of carpet,
finished concrete and wood laminate. The restrooms are finished with
ceramic file floors.
Exterior Walls: The exterior walls of the subject painted Stucco over CBS/Masonry exterior
walls plus vinyl lapsiding above wood frame walls. The exterior doors are
a combination of glass, metal, metal roll-up, and wood, while the windows
are a combination of glass sliding, awning, and sash.
Roof: The structure has a modified gable, hip and flat roof structure. The flat roof
is covered by a roll composition, while the gable and hip roof is covered by
metal v -crimp. The roof is assumed to be in good condition as it has been
recently installed.
Electrical Service: The electrical services to the buildings appeared adequate for the use of the
property.
Air Conditioning: The subject structure has a roof -top central air conditioner/heat systems, plus
a few wall unit air conditions.
Appraisal Company of Key West Page 42
Appraisal Report 68300 Overseas Highway, Layton , FL
Plumbing:
Furnishings &
Equipment:
Construction Quality:
Improvement Condition:
Building Ages:
The subject building has a two, three - fixture full bathroom.
The valuation of the subject property does not consider any personal
property.
Above Average
Average to Above Average (I have considered the Cost of Repairs for
Hurricane Damage).
Environmental Issues: In this appraisal assignment, the existence of potentially hazardous material
used in the construction or maintenance of the building or the overall
property, such as the presence of radon, asbestos insulation and/or existence
of toxic waste, which may or may not be present on the property, has not
been considered. The appraiser is not qualified to detect such substances. The
appraiser is not an expert in the field of environmental hazards. An expert in
the field is recommended if desired, as no environmental tests were made by
the appraiser.
ADA Compliance: The Americans with Disabilities Act ( "ADA ") became effective January 26,
1992. The Appraiser has not made a specific survey or analysis of this
property to determine whether or not it is in conformity with the various de-
tailed requirements of the ADA. The Appraiser recommends that a
Contractor or Engineer be hired to determine compliance or noncompliance,
if so desired. The Appraiser is not a contractor and is not qualified to make
a determination if the building adheres to the requirements. The property,
together with a detailed analysis of the requirements of the ADA, could
reveal that the property may or may not be in compliance with one or more
of the requirements of the Act. If so, this fact could have an effect upon the
value of the property.
Appraisal Company of Key West Page 43
Appraisal Report 68300 Overseas Highway, Layton , FL
Cost to Cure: The subject property was impacted by Hurricane Irma, which made landfall
on September 10, 2017. The subject building was flooded by storm surge
with much of the finishes removed from four feet or less down. The City of
Layton has determined that the substantial damage was approximately
$72,000. I have conservatively considered a Cost to Cure adjustment of
$80,000, which has been deducted herein.
The subject's damage is higher than half of the County Appraiser's estimate
of the Actual Cash Value or Depreciated Value of the subject building. First
of all, the assessment of the building only appears understated. Second the
City of Layton amended their ordinance to allow that storm damage can be
repaired up to 50% of the value of the building per occurrence, not
cumulative. The County considers substantial damage as repairs /renovations
over a five -year period. As a result, it appears that the subject can be repaired
and the structure will not have to be razed or demolished and rebuilt up to
current FEMA flood elevation requirements.
Appraisal Company of Key West Page 44
Appraisal Report 68300 Overseas Highway, Layton , FL
BUILDING SKETCH
u Pa t,3
2 2. V
Frei Mkhefl
68300 Overseas Highway
Layton, Monroe County, Honda
BffjrWM
4
23.7
r;
r
3 - Fix .
Fill!
2'
Bath
3- Fix.
k UR
b-Ah
N
Q
N
;1 ;1 Garage/SL:orage
Carport
ry
4. Y'
Private
Office
Private Office
"Y57 .f5 s 7' 21, 1 , � nf
L-E:=
4, 1'
54.31
Overseas Highwa
GBALI Entire Bd1g, 2625.19 2625.19 Entire Bd1g.
GAR Carport 357.65 54.30 z 3.20
Garage 752.57 1110.22 56.44 X 2.10
OTH Storage 61.20 61.20 22.80 z 54.30
33,50 z 22.10
Scaler I = 15
173.76
473.04
1238.04
740.35
Net BUILDING Area (rounded) � 2625 4 Items (rounded) 1 2625
Appraisal Company of Key West Page 45
Appraisal Report 68300 Overseas Highway, Layton , FL
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
Maximum profitability
Highest and Best Use analysis involves assessing the subject both "as if vacant" and "as improved."
"As If Vacant":
Physically Possible Use - The subject site consists of an interior commercial lot in the City of Layton in the
Florida Keys. The site has 150 feet of frontage along the southerly side of the Overseas Highway
encompasses 18,750 square feet of upland area. The subject has frontage at the rear along a deep water canal
providing access to Long Key Bight and the Atlantic Ocean.
Leery Permissible Use - The subject property is zoned C, Commercial Zoning District.
"C" commercial district. The purpose of the "C" commercial category is to provide commercial activities that
will serve the needs of local residents and tourists, as well as uses that will enhance the tourist industry in the
city and the county. It is also the intent of the city to encourage commercial uses that reflect the historic,
aesthetic, and natural attributes of the Florida Keys. The maximum floor area ratio (FAR) for this category
is 0.60 square feet. Planned developments in accordance with the city's land development regulations shall
be allowed and encouraged in the commercial district.
For further details, the reader is referred to the City of Layton Land Development Regulations.
Financially Feasible Use - The determination of financial feasibility is dependent primarily on the relationship
of supply and demand for the legally probable land uses versus the cost to create the uses. As previously
discussed, vacant land in this Commercial zoning district is limited. The general commercial uses in the
subject's area were previously discussed. It is the appraiser's opinion that, if vacant and available,
development of the subject site for Commercial Use/Mixed Use would provide a positive net return to the site
and would therefore be considered feasible.
Maximum Profitable Use - In the final analysis, a determination must be made as to which feasible use is the
Highest and Best Use of the parcel as if vacant. It is my opinion that the Highest and Best Use of the subject
Appraisal Company of Key West Page 46
Appraisal Report 68300 Overseas Highway, Layton , FL
site would be for commercial office or governmented use, as permitted by zoning with maximization of the
site.
"As Improved ":
In the final analysis, the appraiser must determine if the land alone is worth more than the existing property
"As Is" to determine if the improvements contribute to the overall property. The subject site has prime
frontage on the Overseas Highway or US Highway 1, offers good highway access. The subject's location and
layout are attractive, especially to Office or Governmented use. The subject is adjacent to the fire station and
City Hall.
The existing improvements still make a substantial contribution to the total property in excess of the value
of the site. Therefore, no alternative legal use would economically justify removal of the existing improve-
ments. Thus, in my opinion the subject property's Highest and Best Use is "As Improved" as a mixed use
property. The subject could be easily converted to a governmental use.
Appraisal Company of Key West Page 47
Appraisal Report 68300 Overseas Highway, Layton , FL
APPRAISAL DEVELOPMENT AND REPORTING PROCESS
SCOPE OF WORK
There are three typical approaches to value to consider in each appraisal assignment. The three traditional
approaches to value are the Cost Approach, the Sales Comparison Approach and the Income (Direct
Capitalization and/or Discounted Cash Flow) Approach. The three approaches to value are not always
applicable to the assignment; however, the three approaches to value are always considered.
All appraisals begin by identifying the subject property (property to be appraised) and the appraisal problem.
Data relevant to the subject property is obtained from various sources including but not limited to: the
Monroe County Property Appraiser's Office, surveys, building plans and specifications and the property
owner. If possible, more than one source is utilized to confirm information. Improvements, if applicable, are
inspected and measured by the appraiser. If and when building plans or sketches are made available, the
measurements are verified for accuracy. Land size is based on recorded plat maps, Monroe County public
records, legal descriptions or surveys (when available). The local geographical market was researched and
analyzed.
The appraiser describe the building improvements in detail, if applicable; these descriptions are based on a
physical inspection and/or plans and specifications. The appraiser is not a contractor nor structural engineer;
therefore, structure soundness or damage cannot be warranted. The appraiser will note any apparent or
potential problems such as deferred maintenance, water damage or spalling.
The Cost Approach consists of combining the estimated value of the land, based on comparable sales, with
the depreciated value of the improvements. The vacant land sales are always inspected. The cost of the
improvements is estimated by utilizing a cost service, Marshall and Swift/Boeckh, LLC, plus knowledge of
costs to construct obtained from local contractors.
Exterior site visits of the comparable improved sales are always made; interior walk - through visits are made
when possible. Sales prices for the comparable sales are obtained from the public records. Prices are
customarily confirmed with a party to the transaction, i.e., buyer, seller, closing agent/attorney, or real estate
agent. The public records are researched for mortgage terms and information.
The comparable sales are researched utilizing First America Real Estate Solution and Realist.com, (FARES),
FLEX MLS and LoopNet.com are computerized MLS (Multiple Listing System). All sources use data from
the Monroe County Property Appraiser's Office, as well as, from the public records. The data is verified and
compiled into sale sheets located within this report. Additional data sources include: newspaper clippings
and the National Multiple Listing Service. Real estate agents in the market area are interviewed for the most
current information on sales and listings. All of the information is analyzed in preparing the report and is
utilized in supporting the indicated value.
Appraisal Company of Key West Page 48
Appraisal Report 68300 Overseas Highway, Layton , FL
The reader of the appraisal should be made aware that the valuation contained herein is based on a specific
date. The value estimated on the specified valuation date will likely differ from the value one, two or three
years in the future or in the past. The reader is advised to review the Assumptions and Limiting Conditions
in Section, as well as, the Certificate of Value.
Finally, the three indicated values developed by the approaches, are reconciled to produce the final estimate
of value. A brief description of each of the approaches to value follows:
Appraisal Company of Key West Page 49
Appraisal Report 68300 Overseas Highway, Layton , FL
THE COST APPROACH
The Cost Approach is based on the principle of substitution, the belief that a purchaser would not pay more
than the cost of acquiring a similar site plus the cost of construction a replica or similar structure. "The Cost
Approach is based on the understanding that market participants relate value to cost. In the Cost Approach
the value of a property is derived by adding the estimated value of the land to the current cost of constructing
a reproduction or replacement for the improvements and then subtracting the amount of depreciation (i.e.,
deterioration and obsolescence) in the structures from all causes. Incentive for coordination by the
entrepreneur is included in the value indication. This approach is particularly useful in valuing new or nearly
new improvements and properties that are not frequently exchanged in the market. Cost Approach techniques
can also be employed to derive information needed in the Sales Comparison and Income Approaches to value.
In preparing this appraisal, the appraiser inspected the subject site and both the exterior and interior of the
building improvement. Information on comparable land sales was gathered, confirmed, and analyzed. The
subject property is utilized as apublic library. The Cost Approach consists of combining the estimated value
of the land, based on comparable sales, with the depreciated value of the improvements. A purchaser would
normally give little consideration to this value approach when his primary interest in the property is its income
stream and desirable rate of return on his equity. The two major exceptions might be in the case of apurchaser
who is acquiring a property for his own use and occupancy, an owner -user property, or in valuing a special
use property.
In the case at hand, a reliable valuation of the subject site was not possible due to the lack of recent land sales
in the market area, especially within the C, Commercial zoning district in the City of Layton. Furthermore,
due to the age and condition of the structure, a reliable depreciation estimate would be difficult. Thus, the Cost
Approach was considered, but not deemed applicable.
Appraisal Company of Key West Page 50
Appraisal Report 68300 Overseas Highway, Layton , FL
THE INCOME APPROACH
The Income Approach to value presumes that no prudent buyer will pay more for the subject property than
the capitalized rental value attainable through ownership of the property. The Income Approach represents
the value an owner may consider paying in order to gain the benefits and profits of the business as well as that
of the real estate. The buyer will be willing to pay the present value of what he considers those future benefits
to be. This approach has greatest application when the property being appraised is a type that purchasers buy
for investment purposes. In the case at hand, the subject property is 100% tenant - occupied.
The Direct Capitalization Method takes into consideration the current estimated net income, which is
capitalized at a rate of return for similar property or investments of comparable risk, to indicate the price that
a prudent and knowledgeable investor would be justified in paying for ownership. The traditional Direct
Capitalization Method was considered appropriate in valuing the subject property.
This report contains the results of my investigation and analysis made in order to furnish an estimate of the
"As Is " Market Value of the Fee Simple Estate of the Subject Property. The Fee Simple Estate is the
unencumbered value of the subject property; basically, market rents and terms are considered with no regard
to existing leases and terms. The subject property consists of an owner occupied property, which is not
encumbered by any long term leases. Therefore, only the Fee Simple Interest is included herein. However,
the reader is cautioned that a title search was not made; thus, no other encumbrances are considered herein.
Therefore, a one -year stabilized net income is estimated for the property based on market data and
comparison to most comparable rental data available was considered and will be capitalized into value
utilizing a market extracted overall capitalization rate (OAR). In short, the Direct Capitalization Method
utilizes the net annual operating income that the property is expected to produce. This estimated net income
is capitalized, according to prevailing rates of return on similar property or investments of comparable risk,
to indicate the price an investor would be justified in paying for ownership. Historical financials for the
subject property were not available.
Appraisal Company of Key West Page 51
Appraisal Report 68300 Overseas Highway, Layton , FL
Analysis of Potential Rental Income from Office. Storage, Work Shop and Open Parking
The subject property has a small floor area ratio (FAR) or building to land ratio. The office has a small
amount of parking in front; thus, the additional vacant lot would likely be utilized for parking and open
storage. The subject compasses 18,750 square feet of site area and 2,625 square feet of gross building area.
The office, residential, workshop and storage uses are all intertwined. Therefore, a tenant would likely occupy
the entire area, except for all of the dockage. As a result, I have researched leases of larger site areas including
smaller gross building areas, as open storage is the driving factor in these rentals. Therefore, Iprojected the
potential rent income based on the following rent comparables.
Office/Warehouse & Outdoor Storage Rent ConVmbles
Upland CBA Unit Nbnthly Annual
No. Address Area (SF) (SF) Use Base Rent Rent
CBA Land
ReIIbSF ReIIbSF
Terms
1 ' 89111 Overseas Hwy_, Plantation Key 1 18,000 ' 2,191' Office /Service /Storage______y_
$3,287.08'
$39,445'
$18.00
$2_19
Triple Net*
-- 1----- - - - - -- -- L--- 1---- - - - - --
-----L-----1-----
_
2 'Parcel 1, 5550 5th Ave., Stock Island 1 17,0001 0' Gen. Contractor Open Stg. +
$4,250.00'
$51,000'
$0.00
$3_00
Triple Net
- - - -
—
3 15509 5th Ave., Units 1 &2 Stock Island ! 12,6781 1,756 Marine Service /Engine Repair +
$3,000.001
$36,000:
$20.50
$2_84
Triple Net
- -
—
4 102 Ave. A, Marathon 17,950 0! Boat Storage & Dockage 1
$5,489.501
$65,8741
$0.00
$3.67
Triple Net
*Comp Adj. to Triple Net Terns Mean
$4,006.65
$48,080
$9.63
$2.93
Median
$3,768.54
$45,223
$9.00
$2.92
MWmum
$3,000.00
$36,000
$0.00
$2.19
Nbximum
$5,489.50
$65,874
$20.50
$3.67
Based on these comparables, it appears that the base rent for similar properties range from $2.19 to $3.67 per
square foot of site area per year with a mean at $2.93 and a median at $2.92. Thus, based on a market rent
comparables, I projected a market rent at $3.00 per square foot, which is at the mid range of the spectrum.
This equal an annual rental of $56,250 or $4,687.50 per month. In addition, the prof ected annual rent is $21.43
per square foot of gross building area. Thus, the rent projection is well supported.
Iprojected the overall upland lease on a triple net basis with the tenant paying utilities, his/her pro rata share
of the real estate tax, hazard insurance, plus repairs and maintenance based on total revenue. Triple net rent
is typical in the market area for most commercial properties. Frictional vacancy and collection loss was
estimated at 5 %.
Appraisal Company of Key West Page 52
Appraisal Report 68300 Overseas Highway, Layton , FL
COMPARABLE RENTS MAP
Appraisal Company of Key West Page 53
Appraisal Report 68300 Overseas Highway, Layton , FL
Rent Comparable No. 1:
89111 Overseas Highway, Plantation Key, FL
Rent Comparable No. 2
Parcel 1, 5550 5' Ave; Stock Island, FL
Rent Comparable No. 3:
5509 5�' Ave., Units 1 & 2, Stock Island, FL
Rent Comparable No. 4:
102 Ave. A, Marathon, FL
Appraisal Company of Key West Page 54
Appraisal Report 68300 Overseas Highway, Layton , FL
The rent comparables are largely leased on a triple net basis, wherein the tenants are responsible for all
utilities. The landlord is responsible for real estate taxes, property hazard insurance, repairs and maintenance,
plus management and reserves for replacement. Most of the comparables are leased similarly or have been
adjusted to modified gross terms.
Analysis of Potential Wet Slips Income
The subject has 150 linear feet of dockage along the concrete seawall extending the width of the lot with
frontage on a deepwater canal, which leads out eventually to the Atlantic Ocean with no fixed bridges. In
order to allow for adequate space for docking, I conservatively estimated three 30 foot slips. The vacant lot
does have some mangrove fringe which impedes dock space. Below are comparable wet slips dockage rates
charged by competing marinas and small dockage facilities.
Current monthly rental rates for wet slips of comparable properties range from $11.50 - $24.60 per linear foot
of boat length. I have projected a year - around market rate at the lower -end of the range at $15.00 per linear
foot, since the subject does not have typical marina services and amenities. Furthermore, Ihave estimated that
the average boat length is 30 feet. I project the frictional vacancy and collection loss at 10 %, which is
considered conservative in this market; however, many boats were damaged or destroyed in Hurricane Irma.
This potential dockage income is based on a gross basis with the landlord paying all the expenses. Currently,
one slip is owner - occupied. The remaining slips appear to be vacant.
Appraisal Company of Key West Page 55
Typical Monthly
Wet Slip
Dockage Fees
Rent
Per
Per
Comp
Lin. H.
Lin. 1L
No.
Marina
Summer
Winter
Amenities
1
(Keys Boatworks, Marathon i
$11.50 i
$13.50
iRestrooms, Cable, Water, Pump -out
2
Boot Key Mama, City of Marathon
$14.50
$19.75Restrooms,
T ------------------ - - - - °°
Water, Pump -Out
=- ms, Water,
-------=-----------------------=------=------
3
Shelter Bay Marina, Coco Plum
$11.50
$15.50
- - -- --- -- --- - - - - --
Restrooms, Water, Pump -Out
-------=-----------------------=------=-------=------------------------
4
Sombrero Resort, Key Colony
$16.50
$24.60
Restrooms, Water, Pump -Out
ms, Water,
-
-------
5
'Castaway Restaurant, Marathon '
$13.44 '
$22.84
- - -- --- -- --- - - - - --
'Dockage Adjacent to Restaurant
Mean
$13.49
$19.24
Median
$13.44
$19.75
Mnimum
$11.50
$13.50
Maximum
$16.50
$24.60
Current monthly rental rates for wet slips of comparable properties range from $11.50 - $24.60 per linear foot
of boat length. I have projected a year - around market rate at the lower -end of the range at $15.00 per linear
foot, since the subject does not have typical marina services and amenities. Furthermore, Ihave estimated that
the average boat length is 30 feet. I project the frictional vacancy and collection loss at 10 %, which is
considered conservative in this market; however, many boats were damaged or destroyed in Hurricane Irma.
This potential dockage income is based on a gross basis with the landlord paying all the expenses. Currently,
one slip is owner - occupied. The remaining slips appear to be vacant.
Appraisal Company of Key West Page 55
Appraisal Report 68300 Overseas Highway, Layton , FL
Potential Market Rent (Fee Simple) Analysis:
Market rent was projected after interviewing market participants including landlords and rental agents. The
potential rent was estimated at the lower to mid range of the comparable rents due to the subject's location
on Layton a very small city in the Florida Keys.
Wet Slips7 3 30 515.00 5450.00; 516,200 10% 1 1 514,5
Totals for Wet Storaie: 3 30 $16,200 $14,58
Office /Apt. & Land 1 ii 18,7501 54,687.501 53.00! 556,250! 5% $53,43
Totals for Commercial: 1 18,750 $4,687.50 $56,250 $53,43
Grand Totals : $72,4501 1 $68,01
Vacancy and Collection Allowance
Vacancy & Collection losses include allowances for vacancy due to tenant turnover or loss of rents from a
tenant who vacates the building or is late with payments. Typically, the market is experiencing a 3% to 10%
vacancy and collection losses on commercial retail/office use properties on an annual basis. The higher end
of the spectrum is for large, multi -unit structures. Due to the subject's good highway front location and
reasonable rental rates, I estimated a fractional 5% vacancy and collection loss rate for the commercial units.
As noted earlier, 10% vacancy was projected for the dockage. Most dockage was running at close to full
occupancy prior to Hurricane Irma.
Reimbursables: In my analysis, I considered the upland tenant to be 83% pro -rata share of expenses based
on the total effective income. In my fee simple analysis for the real estate taxes, building insurance and repairs
and maintenance, I estimated a reimbursable income equal to a percentage of the total effective income of
these income sources, adjusted for vacancy and collection losses of 5.0 %, which would be the landlord's
share.
Expense Analysis:
In my analysis, I considered the landlord's expenses for the property, which include real estate taxes, building
hazard insurance, exterior building and common area maintenance, property management and reserves for
replacement.
Real Estate Taxes: The real estate tax assessment for the subject property for 2017 is $312,835, for the entire
property the 2017 tax assessment represents approximately 45% of my final opinion of "As Is" Market Value
of the subject property. As the total appears to be understated, I projected this expense equal to the a
projected assessment of 80% of my final opinion of value of $700,000. Therefore, the assessment is $560,000
Appraisal Company of Key West Page 56
Appraisal Report 68300 Overseas Highway, Layton , FL
times the current millage rate of 11.4383/1,000, plus a waste water non -ad valorem assessment of $498.32,
resulting in a total tax burden of $4,076.61.
Building Insurance: This expense is for fire, windstorm and flood insurance for the building improvements.
Typical insurance rates in the market area indicate $2.00 to $3.00 per square foot of building area for similar
structures like the subject in similar locations. The subject's historical insurance expense was not available.
I conservatively estimated this expense at $6,563 or $2.50 per square foot of gross building area due to the
subject's being in a flood zone, its size, and construction.
Building Maintenance and Repairs Expense This expense includes all general operating expenses, including
building repairs and maintenance for the subject property. This expense typically ranges from $1.00 to $2.00
per square foot of building area for similar properties. Historical data was not available. Considering the size
of the subject property and its current condition, I utilized $1.50 per square foot of gross building area or
$3,938 for the repairs and maintenance expenses for the subject.
Utilities Expense In the case at hand, the utility expenses are paid 100% by the tenant.
Property Mana eg ment This expense includes the collection of rents and actions necessary to keep the
property in good condition and the owner informed. This expense is based on apercentage of Effective Gross
Income. Typical management expenses range from 4.0 to 10.0 percent of Effective Gross Income for
commercial properties, depending on the size of the building and the number of tenants. As the subject is
presently a three bay property, I estimated a property management fee at 5% of effective gross income.
Reserves for Replacement: This expense includes items which have a shorter economic life than the building.
Reserves for replacement typically range from 1.0% to 2.5% of Total Operating Income. I estimated a
conservative rate of 2.0% of Total Operating Income due to its large amount of concrete seawall and large flat
roof cover. My projection of $1,635 or $0.63 per square foot of gross building area is well- supported by the
RealtyRates.com Investor survey -4th Quarter 2017, which indicates that the National Surveyed Reserve
Requirements ranged from $0.28 to $0.72 with a mean at $0.52 per square foot of gross building area for
office uses. My projection is well within the range.
Appraisal Company of Key West Page 57
Appraisal Report 68300 Overseas Highway, Layton , FL
•
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Appraisal Company of Key West Page 58
'3rd Glaartcr 2017 data Copyright 2017 RcaltyRatcs.comTM
Appraisal Report 68300 Overseas Highway, Layton , FL
Income and Expense Summary: A Projected Fee Simple, Income and Expense Statement is shown for the
subject property.
Potential Gross Commercial Rental Income: $56,250
Less 5% Vacancy & Collection Allowance: $( 2,813)
Effective Gross Commercial Rental Income: $53,437
Potential Dockage Rental Income: $16,200
Less 10% Vacancy & Collection Allowance: $( 1,620)
Effective Gross Dockagel Rental Income: $14,580
Total Effective Rental Income: 1 $68,017
Plus Reimbursable Income:
Real Estate
$5,730
Insurance
$5,447
Repairs & Maintenance
$3,269
Total Reirnburs able Income
$14,446
Less 5% Vacancy & Collection Allowance:
$( 722)
Total Reimbursable Income:
$13,724
Total Operating Income: 1 $81,741
Less Operating Expenses:
% of EGI
% of TOI $ /SF of GBA
Real Estate Incl. Non -Ad Valorem
$6,904
10.15%
8.45%
$2.63
Insurance
$6,563
9.65%
8.03%
$2.50
Repairs & Maintenance
$3,938
5.79%
4.82%
$1.50
Property Management
$3,401
5.00%
4.16%
$1.30
Reserves For Replacement
1 635
2.40%
2.00%
$0.62
Total Expenses:
$22,441
32.99%
27.45%
$8.55
Net Operating Income:
Capitalization
Capitalization can be defined as a method of converting an income stream into a capital sum by dividing the
net income of the future income stream by an overall rate (OAR) or capitalization rate. The result should be
the indicated value of the total property or the income - producing package. The capitalization rate was
determined by the Mortgage Equity Method, from capitalization rates derived from the market, and from Debt
Coverage Analysis as detailed as follows.
Appraisal Company of Key West Page 59
Appraisal Report 68300 Overseas Highway, Layton , FL
National survey rates from RealtyRates.com was analyzed as follows.
Band of Investment Model or Mortgage Equity Method
An overall rate based on the Band of Investment Method was estimated at 7.57 %. Assume a mortgage of 70%
of the value, 5.5% interest with a 25 -year term, the mortgage constant will be 0.0702; a down payment of 30%
as equity and an Equity Capitalization of 8.5 %.
Comparable Sales Analysis:
I have estimated a 7.5% capitalization rate for the subject property via the Comparable Sales Method, based
on an analysis of local overall rates, which range from 5.5% to 8.8% with a mean of 7.3% and a median of
Appraisal Company of Key West Page 60
'4th Ouw to 2017 Data Copyright 2018 RcaItyRat co.com TM
Appraisal Report 68300 Overseas Highway, Layton , FL
7.2 %. The local capitalization or overall rates are noted in the Sales Comparison Approach to value.
According to RealtyRates.com, National capitalization rates range from 4.61% to 11.97% with a mean at
11.97% with a mean at 8.97 %.
Debt Coverage Analysis:
An overall rate based on the Debt Coverage Method was estimated at 7.40 %. After analysis of current
financing availability for similar properties with quoted rates ranging from 4.0% to 6.5% and loan -to -value
ratios of from 70% to 80 %, I estimated an 7.02% mortgage constant for the subject property with a loan -to-
value at 70.0 %. A conservative debt coverage ratio of 1.50 was considered appropriate for the subject
according to a survey of local commercial banks. Thus, an overall rate based on the debt coverage analysis
was estimated.
A reconciled Overall Rate (OAR) of 7.50% has been estimated for the subject property with heavy weight
being given to the Comparable Sales method as it is most reflective of the local market. The following chart
summarizes the three methods utilized.
Appraisal Company of Key West Page 61
Appraisal Report 68300 Overseas Highway, Layton , FL
Development of Capitalization Rate
Loan Ratio 70.0%
Loan Tenn (Years) 25
Loan Rate 5.00%
Equity Capitalization Rate 8.50%
Band of Investment Method
Capital Source
Mortgage Loan
Equity Funds
Overall Rate
Overall Rate Via Band of Investment Method (Rounded):
Debt Coverage Analysis
Debt Coverage Ratio
• Loan to Value Ratio
• Mortgage Constant
Overall Rate
Overall Rate Via Debt Coverage Analysis (Rounded):
Market Derived Capitalization Rates:
Realtv Rates .Com 4th Ouarter 2017:
Low
High
Average
Median
Overall Rate Via Market Approach (Rounded):
5.31%
14.65%
10.89%
N/A
Cap.
Rate
4.91
7.46 %1
1 7.50%1
1 7.40%1
Market
5.8%
8.8%
7.3%
7.2%
7.50%
lReconciled Overall Kate: 1 7.50 %1
Portion Rate
70.00% 7.02%
30.00% 8.50%
1.50
70.0%
0.0702
7.37%
National
Retail Un- Anchored Centers
Appraisal Company of Key West Page 62
Appraisal Report 68300 Overseas Highway, Layton , FL
Asa result, I estimated a 7.5% capitalization rate for the subject property, which is well- supported by market
data. The estimated value via the Income Approach is as follows.
Conclusion:
In summary, this technique is viewed as along -term investment valuation, subj ect to definitions, assumptions
and limiting conditions. The Income Approach is most applicable to properties that are purchased for rental
value. In the case at hand, the subject property has historically been utilized as a mixed office /residential and
storage use property. As such the Income Approach was considered applicable and weighted heavily in the
final reconciliation.
"AS IS" VALUE OF TH LEASED FEE INTEREST OF THE SUBJECT PROPERTY
VIA THE INCOME APPROACH, AS OF February 12, 2018 (Rounded) IS:.......... $710,000
Cost to Cure:
The Cost to Cure adjustment based on needed repairs due to Hurricane Irma is explained in detail earlier
within the Improvement Analysis Section of this report.
Appraisal Company of Key West Page 63
Subject Property
Subject GBA:
2,625
Subject Site Size (SF):
18,750
Net Operating Income:
$59,300
Value Per
Value Per
NOI Divided by Cap Rate:
7.50%
SF of GBA
SF of Land
Indicated "As Is" Value (Rounded):
$790,000
$300.95
$42.13
Less Costs to Cure (Hurricane Damage) (Rnd): ($80,000)
Indicated "As Is" Value:
$710,000
$270.48
$37.87
Conclusion:
In summary, this technique is viewed as along -term investment valuation, subj ect to definitions, assumptions
and limiting conditions. The Income Approach is most applicable to properties that are purchased for rental
value. In the case at hand, the subject property has historically been utilized as a mixed office /residential and
storage use property. As such the Income Approach was considered applicable and weighted heavily in the
final reconciliation.
"AS IS" VALUE OF TH LEASED FEE INTEREST OF THE SUBJECT PROPERTY
VIA THE INCOME APPROACH, AS OF February 12, 2018 (Rounded) IS:.......... $710,000
Cost to Cure:
The Cost to Cure adjustment based on needed repairs due to Hurricane Irma is explained in detail earlier
within the Improvement Analysis Section of this report.
Appraisal Company of Key West Page 63
Appraisal Report 68300 Overseas Highway, Layton , FL
THE SALES COMPARISON APPROACH
This approach to value is based upon the principal of substitution; that is, when a property is placed in the
market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no
costly delays in making the substitution. The Sales Comparison Approach bases its value indication on sales
of other similar properties in the area. These sales are analyzed and compared to the subject property. The
Sales Comparison Approach bases its value indication on recent sales that are pertinent to the value of the
subject property. From these comparable sales, the appraiser must extract meaningful "common denomi-
nators" to be applied to the subject building. Typically, the sale price per square foot of gross building area,
per square foot of land area and the overall sale price are the most common denominators used in estimating
the value of the properties similar to the subject. Adjustments are made to the indicated sales price for
differences between the sale and the subject, when possible. The more similar the sale is to the subject
property, the fewer required adjustments, and the better it serves as an indicator of value.
Market Data:
The subject property consists of 2,625 square feet of gross building area located on a 18,750 square feet of
total site area. Extensive research has revealed a reliable number of potential comparable sales. Although
the sales are not identical, they are considered representative of the subject property. Due to the availability
of the commercial use properties, and the owner -user nature of the subject property, this approach was given
heavy weight in the final reconciliation.
Appraisal Company of Key West Page 64
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Appraisal Report 68300 Overseas Highway, Layton , FL
SALES COMPARISON COMPARABLES MAP
Appraisal Company of Key West Page 66
Appraisal Report 68300 Overseas Highway, Layton , FL
Sale Not - 100460 Overseas Highway Largo:
This recent comparable consists of a rectangular, interior site with 100 feet of frontage along the Overseas
Highway at approximately mile marker 100.5 and it contains 21,418 square feet of upland area. The site is
improved with a one and one -half story mixed -use CBS building, which contains 8,200 square feet of gross
building area. The current unit mix is comprised of medical office, office, retail and a two bedroom /two
bathroom upstairs apartment.
This is an arm's length transaction, wherein John H. Smith, Trustee sold the property to Commercial Center
of the Florida Keys, LLC. I recently appraised the property. This comparable was purchased for conversion
to a medical clinic.
Sale No.2 -13367 & 13369 Overseas Highway, Key Largo:
This is the recent sale of a mixed -use medical office and residential apartment property encompassing two
detached CBS structures with a total gross building area of 5,640 square feet. The facility is situated on a 1.29
acre upland site, plus there is an additional 0.91 acres of environmentally sensitive land. It appears that the
existing leases were below market. The sale was an arms length transaction, all cash, wherein Alan G.
Schmitt, Inc. Sold the property to 13367 Overseas Hwy.,LLC. A local doctor purchased the property.
Appraisal Company of Key West Page 67
Appraisal Report 68300 Overseas Highway, Layton , FL
Sale No. 3 - 81981 Overseas Highway, Fpper Matecumbe This comparable parcel consists of a
rectangular- shaped, interior parcel with approximately 300 feet fronting along the southerly side of Overseas
Highway, aka U.S. Highway No. 1, plus 300 feet along the northerly side of Old State Road 4A. The site
extends 167.46 feet in depth and contains 50,238 square feet or 1.15 acres of upland area. The site
encompasses three contiguous platted lots. The property is commonly known as Island Silver and Spice, a
former upscale retail department store featuring clothing, swim wear, shoes, jewelry, house wares and gifts.
The property is located at 81981 Overseas Highway, at about Mile Marker 82, Islamorada Florida. The
property has a prime location within the downtown central business district of Islamorada, Village of Islands
with excellent visibility from both the northbound and southbound lanes of Overseas Highway.
The comparable improvements consist of a one -story CBS /masonry structure with awood frame addition that
contains 13,179 square feet of gross building area. The building encompasses several retail areas, a retail
mezzanine, customer and private restroom facilities, storage rooms, and offices. There is a covered entry /exit
at the easterly side of the building, which is accessible from the large parking lot on the easterly two- thirds
of the overall site. According to the Monroe County Property Appraiser's records, the original portion of the
building was constructed in 1956.
This sale was an arm's length transaction. Island Silver and Spice, Inc. sold the subject to RTG Islamorada
Retail Ventures, LLC via a warranty deed that was recorded in Official Record Book 2788, Page 21 in the
Monroe County Public Records. I appraised this comparable in the past; it has been recently vacant. The
property will be redeveloped for a national tenant.
Appraisal Company of Key West Page 68
Appraisal Report 68300 Overseas Highway, Layton , FL
Sale No. 4 - 68100 Overseas Highway, on: This is the sale of a two -story mixed -use CBS structure
containing 6,544 square feet of gross building area. There is a convenience store at the first level with
apartments above. The improvements are situated on a 22,754 square foot highway front site within the City
of Layton. The parcel does have a small amount of canal frontage. This was an arm's length transaction. This
comparable is located one -half block westerly from the subject property.
Sale No. 5 - 24752 Overseas Highway, Summerland Kew This is the sale of a multi- tenant commercial
office /retail building. This property is within Summerland Key, within very close proximity (only four lots
westerly) to the subject property. It is located on the same canal as the subject property, therefore, includes
similar dockage. The one -story CBS /masonry building contains 3,690 square feet of gross building area.
According to the Monroe County Property Appraiser's records, the building was constructed in 1984. This
was a arm's length conventional financing transaction.
Appraisal Company of Key West Page 69
Appraisal Report 68300 Overseas Highway, Layton , FL
Sale No.6 - 4801 Overseas Highway, Marathon:
Although this property is identified by one County parcel number, it consists of an improved parcel, plus a
vacant parcel. The property consists of two rectangular- shaped sites, with each encompassing 6 contiguous
lots and each parcel fronting approximately 100 linear feet on the southerly side of U.S. Highway No. 1, also
known as the Overseas Highway; each parcel is approximately 200 linear feet in depth, with 100 linear feet
fronting along the northerly side of Lynmeade (Ocean) Boulevard. The vacant parcel also fronts 200 linear
feet along the westerly side of 49 Street. Each of the parcel's site area is 20,000 square feet, for an overall
total area of 40,000 square feet.
Parcel A is improved with a CBS building containing a total of 6,944 square feet of gross building area for
retail sales. The building has an unfinished, partially below grade, storage area of about 7,284 square feet. This
area has an unpaved floor and lacks lighting and air- conditioning, therefore, it has been considered as an
amenity. The structure contains a large, open retail sales area, two, 2- fixture restrooms with a sales
office /counter, a kitchenibreak area and storage area in the southwesterly end of the subject building. This
was an arm's length transaction wherein was conventional financing. This comparable set the upper -limit of
the value range. I appraised this property at the time of sale.
Units of Measure:
Typically, mixed use properties are analyzed via the sales price per square foot of gross building area.
However properties with lower FARs (floor area ratios) or building to land ratios, price per square foot per
upland site area tends to be a tighter correlation. The price per square foot of site are is a more reliable unit
of measure, in the case at hand.
Discussion of Adjustments:
Market Conditions:
Based on the sale and resale of some of the comparable sales properties in Florida Keys, the data indicates that
values generally stabilized with annual appreciation at an average of 2.3% and median at 3.6% per annum.
Appraisal Company of Key West Page 70
Appraisal Report 68300 Overseas Highway, Layton , FL
As a result, sales which transpired over a year ago were adjusted for positive market conditions at an
appreciation rate of 3% per year. An analysis of the comparable sales /resales activity is as follows.
Property Rights:
The subject is not encumbered by any leases, and is owner- occupied. Therefore only a Fee Simple analysis
is warranted herein. Comprables 3 through 6, were owner occupied or no long -term leases in place; thus, they
were considered Fee Simple. Sale 6 was leased, but the tenant purchased the property. Thus, it really sold Fee
Simple. Comparables 1 and 2 did sell with leases in place (Leased Fee). These leases were considered to be
below market; which is inferior to the subject; thus apositive adjustment was made.
Conditions of Sale:
All of the sales were arm's length transactions; thus, no adjustments were warranted herein.
Financing:
All of the comparable sales were considered cash equivalent, either cash, conventional or private financing
(purchase money mortgage) at market rates. Thus, none of the comparables required adjustment for financing.
Floor to Area (FAR):
The subj ect property has a lower FAR (Building Area to Land Area Ratio). Comparables 2 had 6 have similar
FARs; thus, they were not adjusted. Typically, a sale with a higher FAR has a higher price per square foot of
site area, which is the most reliable unit of measure, in the case at hand. Sale Nos. 1, 3, 4 and 5 have higher
FARs; thus, they were negatively adjusted.
Upland Site Area:
Market data indicates that the larger the site area, then the price per square foot of site area, decreases resulting
in an inverse relationship. Therefore, the smaller site areas require a negative adjustment. The smaller the
Appraisal Company of Key West Page 71
Previous Previous
Annual
Difference '
2017
Assessed "
2017
Sale
Listing
SP /LP
Sales
Sales
2ndPrice/
Change Appreciation
In Dates
Assessed
Asses. Per S.F.
Tag Bur
No. DOM
Price
Ratio
Date
Price
Sg Ft.
Price
Rate
Years
Value
Ratio
GBA
Burden S.F.
Sale 1
58!
$1,300,000!
100.0%!
N/A !
N/A !
N/A
N/A !
N/A !
N/A
$1,032,058i
79.4% $
125.86 ! $
8,876.42 ! $
.
----- r ------------- Y --------------- � ------ ----?------------------
Sale 2 i $1,000,000 11 0.0% i 12/ 7951 ----- $58QOOO - --- $0 - $520,000 ------
3.0% i 21.841 $979,4911 89.0% i $ 173.67 $ 9,223.19 i $
Sale 3 i
131'
$2,799,000'
99.2 0 /o'
5/1/89'
$824,500'
$0.31'
_
$1,840,500'
4.3%'
27.79'
$2,291,528'
82.5%' $
173.88 ' $
22,058.94 ' $
Sale
1601
$1,295,0001
95.1%
N /A!
N /A!
N /A!
N /A!
N /A!
N /A!
$1,002,231!
81.4%! $
153.15 ! $
11,463.82 ! $
N /Ai N /Ai N /Ai / 1/_091 $775,0001 $1.07 $50,0001 0.9%1 7.001 $582,459: 80.3% $ 157.85 $ 5,512.11 j $
0,000 i
_S
-r
Sale6 i
-- T
Oi
- -- - -T-
$2,9560001
- -T-
95.1 %i
_
_ -r
5/30/011
- - -�
$971,0001
-- -T
$0.371
--
$1,679,0001
- --
6.9%1
- -- --- T
14.991
- - - -- T
$887,5571
- - -T
31.6 %i
- -- - -----
- -� - --
Subject
Mean
89
99.9%
3.3%
74.1%
$152.04
$10,915.33
Median
95
99.2%
3.6%
80.9%
$155.50
$9,049.81
Minimum
0
95.1%
-0.9%
31.6%
$125.86
$5,512.11
Maximum
160
110.0%
6.9%
89.0%
$173.88
$22,058.94
Property Rights:
The subject is not encumbered by any leases, and is owner- occupied. Therefore only a Fee Simple analysis
is warranted herein. Comprables 3 through 6, were owner occupied or no long -term leases in place; thus, they
were considered Fee Simple. Sale 6 was leased, but the tenant purchased the property. Thus, it really sold Fee
Simple. Comparables 1 and 2 did sell with leases in place (Leased Fee). These leases were considered to be
below market; which is inferior to the subject; thus apositive adjustment was made.
Conditions of Sale:
All of the sales were arm's length transactions; thus, no adjustments were warranted herein.
Financing:
All of the comparable sales were considered cash equivalent, either cash, conventional or private financing
(purchase money mortgage) at market rates. Thus, none of the comparables required adjustment for financing.
Floor to Area (FAR):
The subj ect property has a lower FAR (Building Area to Land Area Ratio). Comparables 2 had 6 have similar
FARs; thus, they were not adjusted. Typically, a sale with a higher FAR has a higher price per square foot of
site area, which is the most reliable unit of measure, in the case at hand. Sale Nos. 1, 3, 4 and 5 have higher
FARs; thus, they were negatively adjusted.
Upland Site Area:
Market data indicates that the larger the site area, then the price per square foot of site area, decreases resulting
in an inverse relationship. Therefore, the smaller site areas require a negative adjustment. The smaller the
Appraisal Company of Key West Page 71
Appraisal Report 68300 Overseas Highway, Layton , FL
site area, the higher the price per square foot of site area. Sales 2, 3 and 6 are larger; thus, positively adjusted,
while the other sales are considered overall similar in site area.
Highway Frontage: The subject has frontage along Overseas Highway in the City of Layton. All of the
comparables are located on- the - highway; thus no adjustments were made.
Water Frontage:
The subject has 150 linear feet of deepwater, canal frontage. Sales 1, 2, 3 and 6 are non - waterfront sites,
therefore, they required positive adjustment. Sales 4 and 5 have similar canal frontage, therefore considered
similar.
Overall Location:
The subject is located in Layton, the smallest city in Key West, and one of the smallest cities in the State of
Florida. Sale 3 is located only one -half block westerly from the subject. All of the other sales are located in
superior areas; thus, negative adjustments were made.
Zoninz:
The subject is located within the C, Commercial Zoning District. Each of the comparable sales were
considered similar, therefore, they did not require an adjustment.
Condition/Quality of Construction:
The subject property is considered to be in above average condition. Sales 1, 3 and 4 were slightly inferior,
therefore, required a positive adjustment.
The following grid summarizes each sale and shows the necessary adjustments as previously described:
Appraisal Company of Key West Page 72
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Appraisal Report 68300 Overseas Highway, Layton , FL
Valuation Conclusion
In order to estimate the value of the subject property, we analyzed recent sales of commercial and
commercial/residential mixed -use properties. The subject is an owner- occupied office and residential
property, wherein the uses share some common areas. On the preceding table, a detailed adjustment grid is
presented for the subject property. The comparables indicate an adjusted value per square foot of site area for
the subject property from $18.36 to $59.62 per square foot with a mean at $43.91 and a median at $47.39.
Based on analysis and adjustments to the individual comparables, Sales 2, 4, and 6 were given the most
weight, as overall they were considered the most similar. The other Sales were moderately weighted. The
weighted average of these comparables equaled $41 (rounded) per square foot of site area. Therefore, in my
opinion the subject's overall value is calculated below, which is considered reasonable and well- supported.
7 1� otf iCe; 1Vl 111`
$41.00 X 18,750 =
$768,750
"As Is" Value via the Sales Comparison Approach (Rounded):
$770,000
Less Cost to Cure (Hurricane Damage):
($80,000)
"As Is" Value via Sales Comparison Approach (Rounded):
$690,000
"AS IS" VALUE OF THE FEE SIlVIPLE INTEREST IN THE SUBJECT PROPERTY,
AS INDICATED BY THE SALES COMPARISON APPROACH (Rounded) .................... $690,000
Note: The cost to cure adjustment was discussed earlier in detail in the Improvement Analysis section of this
report.
Subject Property - 68300 Overseas Hwy., Layton, FL
Subject GBA: 2,625
Subject Site Size (SF): 18,750 Value Per Value Per
X Indicated Price Per SF of GBA: $41 SF of GBA SF of Land
Indicated Value (Rounded): $690,000 $262.86 $36.80
I have also analyzed six, recent closed sales of commercial and mixed -use sales in the Middle Keys market
area. These sales all had low FARs and mostly waterfront; however, they lacked frontage on the Overseas
Highway. The subject's value on a per square foot of site area is $36.80. The unadjusted comparable sales
indicated a sales price per square foot of site area of $32.36 to $89.86 with a mean at $45.40 and a median of
$37.49. Therefore, the subject's value is also well- supported by this group of additional sales.
Appraisal Company of Key West Page 74
Appraisal Report 68300 Overseas Highway, Layton , FL
RECONCILIATION AND FINAL ESTIMATE OF VALUE
The following Fee Simple value indications have been developed in my analysis of the Market Data.
The greatest weight is given to that approach in which the appraiser has the highest degree of confidence. This
implies a minimum of assumptions and a sufficient quantity of data. The Cost Approach was not considered
applicable due to the age and condition of the building improvements, as estimating depreciation would be
very subject and lessen the reliability of the valuation method, plus the lack of land sales, especially in the
Commercial zoning district within the City of Layton. Based on analysis of the real estate market activity in
the subject property market area and considering the applicability and reliability of each of the approaches,
it is my opinion that the Market Value of the subject property is most accurately indicated by the Sales
Comparison Approach, due to the availability of recent similar use owner- occupied properties. Accordingly,
greatest weight has been placed on the Sales Comparison Approach. The Income Approach was weighted
moderately due to the income producing potential for subject property, (if leased as an mixed use property)
and reliable market rental income and expense data.
Based on market analysis and research, it is my opinion that the "As Is " Market Value of the Fee Simple
Estate of the Subject Property, commonly known as 68300 Overseas Highway, Layton, Florida, 33001,
subject to proposed split -out from larger parcel, definitions, assumptions and limiting conditions, as of
Februaryl2, 2018 is:
SEVEN HUNDRED THOUSAND DOLLARS
($700,000)
The "As Is" Market Value for the subject property considers no personal property.
Appraisal Company of Key West Page 75
Appraisal Report 68300 Overseas Highway, Layton , FL
CERTIFICATE OF APPRAISAL
I HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY:
Mr. Kevin G. Wilson, P.E.
Assistant County Administrator
Monroe County, FL (Florida Keys)
102050 Overseas Highway
Key Largo, FL 33037
I have personally examined the following property:
Commonly Known as: 68300 Overseas Highway
Layton, FL 33001
and based on market analysis and research, it is my opinion that the "As Is " Market Value of the Fee Simple
Estate of the above Subject Property, subject to definitions, assumptions and limiting conditions, as of
Februaryl2, 2018 is:
SEVEN HUNDRED THOUSAND DOLLARS
($700,000)
The "As Is" Market Value for the subject property considers no personal property.
I ADDITIONALLY CERTIFY that, to the best of my knowledge and belief-
0
The statements of fact contained in this report are true and correct.
o The reported analyses, opinion, and conclusions are limited only by the reported assumptions and
limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions and
conclusions.
o I have no bias with respect to the property that is the subject of this report or to the parties involved
with this assignment.
O My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
Appraisal Company of Key West Page 76
Appraisal Report 68300 Overseas Highway, Layton , FL
o My compensation for completing this assignment is not contingent upon the development or reporting
of a predetermined value or a 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.
o My analyses, opinions, and conclusions were developed and this report has been prepared in
conformity with the Uniform Standards of Professional Appraisal Practice.
o James E. Wilson has made a site visit of the exterior and interior walk - through of the property that
are the subject of this report.
o No one has provided significant professional assistance to the persons signing this report.
o The use of this report is subject to the requirements of the State of Florida relating to review by the
Florida Real Estate Appraisal Board of the Department of Professional Regulations, Division of Real
Estate.
o James E. Wilson has completed the Standard and Ethics education requirements of the Appraisal
Institute for Associate Members.
o The reported analyses, opinions and conclusions were developed, and this report has been prepared,
in conformity with the requirements of the Code of Professional Ethics and the Standards of
Professional Appraisal Practice of the Appraisal Institute.
o The appraisers has performed no services, as an appraiser or in any other capacity, regarding the
property this is the subject of this report within the three years period immediately preceding
acceptance of this assignment.
APPRAISAL COMPANY OF KEY WEST
James E. Wilson, MRICS, President
State - certified general real estate appraiser
RZ 2164
Appraisal Company of Key West Page 77
Appraisal Report 68300 Overseas Highway, Layton , FL
PROFESSIONAL QUALIFICATIONS
JAMES E. WILSON, III, MRICS
James E. Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of Science
in Business Administration with a Major in Economics from the University of Florida, 1987 -1991. His
' experience in the real estate industry began in early 1992 as a residential real estate appraiser in Pompano Beach,
h ; > Florida. He appraised a wide variety of single and multi - family residential properties in Dade, Broward, and
Palm Beach counties over a two-year period. challenge, In the search of advancement and James Wilson moved
Y p
to the City of Key West, Monroe County, Florida in order to obtain experience and practice commercial real
estate appraisal valuation techniques in a demanding and somewhat unique market area. Over the past 25 years James has been exposed to awide-
range of appraisal projects, including highest and best use studies, complex property appraisals, and wetland and environmentally sensitive
valuations including transferrable development rights. His appraisal experience includes financial and investment analysis, appraisal review,
feasibility and planning analysis, as well as market research and analysis. James Wilson is a State Certified General Real Estate Appraiser (licensed
to perform residential and commercial appraisals) and a General Associate Member of the Appraisal Institute. He is a member of RICS (Royal
Institution of Chartered Surveyors), which is an international member organization for professionals in property, land, real estate, construction and
related environmental issues. Jim is past President of the Key West Gator Club, 2013/2014 President of the Sunset Key West Rotary Club, member
of Class VII Leadership Monroe, 2012 President of the Key West Chamber of Commerce, and has been elected to continue to serve on the Board
of Directors of the Key West Chamber of Commerce. Jim is still an active member on the Board of Directors for the Key West Chamber of
Commerce.
Education: SOUTH BROWARD HIGH SCHOOL, Hollywood, FL, 1987.
UNIVERSITY OF FLORIDA, Gainesville, Florida - Bachelor of Science in Business Administration - Major
in Economics, 1987 -1991.
APPRAISAL INSTITUTE
Appraisal Reporting of Complex Residential Properties, October, 1993.
Persuasive Style in Narrative Appraisal Reports, May, 1994.
ACE 1779 - "Special Purpose Properties - The Challenge of Real Estate Appraising in Limited Markets ",
September, 1996.
410 Standards of Professional Practice, Part A (USPAP), 8/97.
420 Standards of Professional Practice, Part B, August, 1997.
520 Highest & Best Use and Market Analysis, October, 1997.
Non - Conforming Uses Seminar, January, 1998.
510 Advanced Income Capitalization, May, 1998.
530 Advanced Sales Comparison & Cost Approach, May, 1998.
540 Report Writing & Valuation Analysis, August, 1998.
550 Advanced Applications, February, 1999.
Regression Analysis in Appraisal Practice: Concepts & Applications, Seminar, March, 2000.
General Demonstration Appraisal Report Writing Seminar, March, 2000.
800 Separating Personal & Real Property from Intangible Business Assets, March, 2002.
Successful Completion of the General Comprehensive Examination for the Appraisal Institute
Uniform Appraisal Standards for Federal Land Requisitions, March, 2007
General Demonstration Appraisal Report Writing Seminar, August, 2007
Valuation of Conservation Easements, January, 2008.
Appraising Distressed Commercial Real Estate, June, 2009
Oil Spills and Property Values, Webinar, August, 2010
Business Practices and Ethics, September, 2010
A Debate of the Allocation of Hotel Total Assets, October 26, 2010
Appraisal Institute Update, May 19, 2011
Appraisal Company of Key West Page 78
Appraisal Report 68300 Overseas Highway, Layton , FL
Professional Qualifications of James E. Wilson, III (Continued)
APPRAISAL INSTITUTE
Appraisal Curriculum Overview (2 -day General) May, 2011
Perspectives from Commercial Review Appraisers, July 20, 2011
Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets, 05/07/2012 -
05/08/2012
UAD -Up Close and Personal, November, 2014
Expert Witness Testimony: To Do or Not to Do, November, 2014
Analyze This! Applications of Appraisal Analysis, November, 2014
Florida Appraisal Laws and Regulations Update
Reviewers Checklist, November, 2014
National USPAP Update Equivalent (2014 -2015) , November, 2014
Purchase Price Allocations for Financial Report and Tax, April 16, 2014
Behind the Headlines, the New Real Estate Real Estate Economy, May 16, 2014
GOLD COAST SCHOOL OF REAL ESTATE
Real Estate Principles, Practices, and Law - FREC Course I, May, 1992.
Salesman Post - License Program, February, 1994.
Mortgage Broker, Exam -Prep Program, September, 1992.
AB I - Appraisal Board - Fundamentals of R.E. Appraising, 5/92.
AB II - Appr. Board - Appraising Resid. & Income Properties, 2/94.
AB IIb - Appraisal Board - Cert. Resid. Appraisal Course, 7/94.
AB III - Appraisal Board - Certified General Appraisal Course (Income Capitalization Course), February, 1995
USPAP - Uniform Standards of Professional Appraisal Practice, 6/92.
USPAP Course, September, 1995.
A -102 - Plan Reading for Appraisers, September, 1995.
National USPAP Update Course, June 2006
Techniques of Income Property Appraisal, June 2006
McKISSOCK DATA SYSTEMS
Automated Valuation Models, October, 2000.
Uniform Standards of Professional Appraisal Practice, October,2000.
Factory Built Housing, October, 2000.
Appraiser Liability, September, 2002.
Appraising Nonconforming & Difficult Properties, September,2002.
Appraiser Liability, USPAP, September, 2002.
Appraising for the Secondary Market, October, 2004.
Appraising High -Value Residential Properties, October, 2004.
Florida Laws and Regulations, October, 2004.
Limited Appraisals and the Scope of Work Decision, October, 2004.
National USPAP Equivalent, October, 2004.
Florida Laws and Regulations, September 2006.
Disclosures and Disclaimer, September, 2006.
Appraisal Trends, September 2006.
National USPAP Update Equivalent(2008- 2009), November, 2008.
Introduction to Expert Witness Testimony, November 2008.
Mortgage Fraud - Protect Yourself, November, 2008.
Florida Appraisal Supervisor - Trainee Roles and Relationships, November, 2008.
Florida Laws and Regulations, November, 2008.
National USPAP Update Equivalent (2010- 2011), August, 2010.
Risky Business: Ways to Minimize Liability, August, 2010.
r
Appraisal Company of Key West Page 79
Appraisal Report 68300 Overseas Highway, Layton , FL
Professional Qualifications of James E. Wilson, III (Continued)
Florida Laws and Regulations, August 2010.
Florida Apprisal Supervisor- Trainee Roles and Relationships, August, 2010.
The Changing World of FHA Appraising, August, 2010.
Systems Built Housing: Advances in Housing for the New Millennium, October, 2012
Deriving and Supporting Adjustments, October, 2012
Introduction to Regression Analysis for Appraisers, October, 2012
Introduction to Residential Green Building for Appraisers, October, 2012
Florida Appraisal Laws and Regulations Update
National USPAP Update Equivalent (2012- 2013), October, 2012
Appraisal of Fast Food Facilities, November, 2016
2016 - 2017 -Hour National USPAP Update Course, November, 2016
Managing Appraiser Liability, November, 2016
Florida Appraisal Laws and Regulations, November, 2016
Advanced Hotel Appraising -Full Service Hotels, November, 2016
VALUE INFORMATION TECHNOLOGY, INC.
"Perspectives on Appraisals" FREAB Course ACE #1591, June, 1995.
NORTH BROWARD BOARD OF REALTORS
ACE 591 - Basics of Construction - How a Florida Home is Built II, January, 1994.
Certification:
State certified general real estate appraiser, as designated by the Department of Professional Regulation, State of
Florida; Registration No. RZ 2164.
Licensed Real Estate Salesperson, as designated by the Department of Professional Regulation, State of Florida;
License No. SL 0589552 (currently inactive).
Professional
Associations:
Key West Board of Realtors
General Associate Member of the Appraisal Institute
Member of RICS (Royal Institute of Chartered Surveyors), October, 2010 Member#1299389
Affiliations:
Past President of the Key West Gator Club (Alumni Organization of the University of Florida
Member of Class VIII, Leadership Monroe County
Board Member of the Rotary Club of Sunset Key West, 2013/2014 President, 2009 Treasurer, 2010 Vice
President, 2011 President- Elect,2012 President Board of Directors of the Key West Chamber of Commerce,
Current Board Member
Experience: WILCO VALUATIONS, P.A. d/b /a APPRAISAL COMPANY OF KEY WEST, James Wilson, President and
his wife, Maria Virginia Wilson, also a State Certified General Real Estate Appraiser purchased the Appraisal
Company of Key West from Mr. Richard Padron in April, 2004. Mr. Padron has continued to be a Fee
Commercial Real Estate Appraiser with the Appraisal Company of Key West, which has ensured continuity and
quality control.
APPRAISAL COMPANY OF KEY WEST, INC., Fee Commercial Real Estate Appraiser, April, 1994 to April,
2004.
F.C.P. APPRAISAL SERVICES, INC., Senior Real Estate Appraiser and Trainer, May, 1992 to April, 1994.
r
Appraisal Company of Key West Page 80
Appraisal Report 68300 Overseas Highway, Layton , FL
Appraised various types of properties in the Florida Keys, including
Retail Stores
Commercial/Residential Condominiums
Restaurants
Full - Service Marinas/Boat Yards
Strip Centers
Environmentally Sensitive Acreage
Office Buildings
Industrial Uses
Mixed -Use Properties
Guest Houses /Hotels/Motels
Service Stations
Mobile Home and RV Parks
Multi - family Projects
Warehouse (including mini- storage)
Proposed Developments
Special -Use Properties including Schools
Single - family Estates
Seafood Processing Plants
APPRAISER CERTIFICATION
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
FLORIDA REAL ESTATE APPRAISAL BD
RZ2164
En
r
Appraisal Company of Key West Page 81
Appraisal Report 68300 Overseas Highway, Layton , FL
PURCHASE ORDER
MONROE COUNTY
i 1 BOARD OF COUNTY COMMISSIONERS
1100 Simonton Street Suite 2 -213
i, Key West FL 33049
SALES TAX EXEMPT NC.. 85- 8013825294C -7
v F (jU I i PHONE:
E Ati PRAIS.AL 1 -N's OF KF.s 'W ird C.
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PURCHASE ORDER NO 0058843'
PA OE `7O. I
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H MONROE COUNTY Lt7G_I 7 - ER__7G DE2T
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ORDER DATE .:2 F11'� BUYER: mP.NIlIz -: U'ZET�.I'«
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TERMS Ilr'I' 30' t AY,
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OVERSEAS 1 =idY,
3000.0 [J OC'r
3,C'0 0 .00
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ITEM&
COST CENTER
ACCOUNT PROJECT PROJE:CTACCT
AMOUNT
PAGE TOTAL S....
3 000. :i0
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^2001
53i--iC
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TOTAL 5
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PARTIAL PAYMENT
FINAL PAYMENT
INVOICE. NO. INVOICE AMOUNT
PAYMENT DESC
PAYMENT APPROVAL PURCHASING AGENT
Appraisal Company of Key West Page 82
68300 Overseas Highway, Layton, FL 33001
APPRAISAL REPORT
REAL ESTATE APPRAISAL
Of
68300 Overseas Highway,
Layton,
FL 33001
As of
November 21st, 2017
Prepared For
Mr. Kevin Wilson.
Monroe County, FL (Florida Keys),
102050 Overseas Highway,
Key Largo,
FL 33037
Client File:
00058381
Prepared by
APPRAISERS OF THE KEYS
Kevin Talbott SRA, CertGen RZ2139
Nicholas Farrar MRICS, CertGen RZ3742
File Name:
13927
See pages 3, 63 - 67 for main info
Page 1 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
APPRAISERS OF THE KEYS
3208 Flagler Ave 305 - 296 -0831
Key West, aokreal @aol.com
FL, 33040 appraisersofthekeys.com
December 1st, 2017
Mr. Kevin Wilson.
Monroe County, FL (Florida Keys),
102050 Overseas Highway,
Key Largo,
FL 33037
Re: Appraisal Report, Real Estate Appraisal
68300 Overseas Highway,
Layton,
FL 33001
Our File #: 13927
Client File #: 00058381
Dear Mr. Wilson.
At your request, I have prepared an Appraisal Report for the above referenced property. This report is limited to
the client and intended users identified in this report. The purpose of the report is to estimate the subject's AS IS
market value, for possible purchase as of the effective date November 21st, 2017. A full external and internal
inspection of the subject property was undertaken on November 21S 2017 by Kevin Talbott, SRA.
The subject being appraised is a single story, detached commercial office building located on the south side of the
Overseas Highway in the City of Layton in the Middle Florida Keys. The subject comprises of a mixed -use property with
an office space, storage area, and a residential unit all situated on a canal front lot. The subject is a grade level property
which has suffered flood damage to the interior and wind damage to the exterior and site improvements because of the
recent disaster, Hurricane Irma which hit the Florida Keys on September 10 2017. At time of inspection the subject was
owner occupied with all utilities on and working. Based on current zoning the subject is legally permitted.
Market Value may be defined as the most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and
assuming the price is not affected by undue stimulus.
This appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), Standards 1 and 2,
and is reported in a summary format. No extraordinary assumptions or hypothetical conditions are necessary in
this assignment.
Nicholas Farrar, MRICS: I have performed no prior 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.
Kevin Talbott, SRA: I have performed no prior 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.
Appraisers of the Keys Page 2 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Please reference pages 16 -18 of this report for important information regarding the scope of research and analysis
for this appraisal, including property identification, inspection, highest and best use analysis, and valuation
methodology.
Your attention is directed to the Limiting Conditions and Assumptions section of this report (page 13). Acceptance
of this report constitutes an agreement with these conditions and assumptions. We note the following:
Hypothetical Conditions
• There are no hypothetical conditions.
Extraordinary Assumptions:
• Hazardous Waste: No information regarding the presence or absence of hazardous waste on the subject
property was provided. This appraisal assumes the absence of all hazardous waste on the subject
property. If hazardous waste is found to be present on the subject property, an adjustment to the
valuation contained in this report may be required.
• Title Conditions: No current title commitment/ report was provided for review. It is assumed that any
special exceptions, other than those noted previously in this report, are typical, and there is no adverse
impact on value. The right to modify the valuation contained in this report is reserved upon review of title
conditions.
• The appraiser has not been provided with an environmental survey of the site. An extraordinary
assumption has been used and assumes that the site does not contain significant native species or areas
of wetland that would affect development of the site.
• The appraiser has not been provided with a survey of the site. Information regarding current setbacks
have been taken from the visual inspection of the site and from aerial photography from the Monroe
County Property Appraisers website and GIS system.
• Any changes in assumptions may affect value conclusions.
Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions,
Extraordinary Assumptions, and Hypothetical Conditions (if any), we have made the following value conclusion(s):
AS IS Market Value of the Fee Simple Interest, as of November 21st, 2017 is:
$455,000
(Four Hundred and Fifty -Five Thousand Dollars)
Respectfully submitted,
� r
k .gyp i ` ,
Kevin Talbott, SRA Nicholas Farrar, MRICS
CertGen RZ2139 CertGen RZ3742
Appraisers of the Keys Page 3 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Contents
Tableof Exhibits ...................................................................................................................... ..............................6
Figures: ......................................................................................................................................................................
6
Tables: .......................................................................................................................................................................
6
SubjectPhotographs ................................................................................................................ ..............................7
Definitions .............................................................................................................................. .............................12
Limiting Conditions and Assumptions ..................................................................................... .............................14
ExecutiveSummary: ............................................................................................................................................
16
Scopeof Work ........................................................................................................................ .............................17
Preamble ................................................................................................................................ .............................19
PropertyHistory: ....................................................................................................................................................
19
AreaAnalysis: ......................................................................................................................................................
21
NeighborhoodAnalysis .............................................................................................................. .............................25
Linkages..................................................................................................................................... .............................25
HousingTrends: ......................................................................................................................................................
28
MajorEmployers: ...................................................................................................................................................
29
Unemploymenttrends: ..........................................................................................................................................
29
MarketAnalysis: ...............................................................................................................................................
30
CommercialMarket: ..............................................................................................................................................
30
Rental market and occupancy rates: ......................................................................................................................
32
Residential: .............................................................................................................................................................
33
HurricaneIrma: .......................................................................................................................................................
34
Market Participant Interviews: ...............................................................................................................................
35
Strengths/Opportunities: .......................................................................................................................................
35
Weaknesses/Threats: .............................................................................................................................................
35
LocationMap ............................................................................................................................. .............................37
Identification of the Subject ................................................................................................. ...............................
38
PropertyDescription - Site ......................................................................................................... .............................38
Aerialand Plat ............................................................................................................................ .............................39
Floodmap .................................................................................................................................. .............................40
Property Description - Improvements ....................................................................................... .............................41
YearBuilt: ...............................................................................................................................................................
41
ConstructionDetails: ..............................................................................................................................................
41
EconomicAge and Life: ...........................................................................................................................................
42
Conclusion: ..............................................................................................................................................................
42
FloorPlan: ...............................................................................................................................................................
44
Assessmentand Taxes ............................................................................................................... .............................45
Zoning ................................................................................................................................... ...............................
46
Highestand Best Use .............................................................................................................. .............................49
Highest and Best Use of the Site as Vacant: ...........................................................................................................
49
LegallyPermissible: ................................................................................................................................................
49
PhysicallyPossible: .................................................................................................................................................
49
FinanciallyFeasible: ................................................................................................................................................
49
MaximallyProductive: ............................................................................................................................................
50
Highest and Best Use as Improved: ........................................................................................................................
50
LegallyPermissible: ................................................................................................................................................
50
PhysicallyPossible: .................................................................................................................................................
50
FinanciallyFeasible: ................................................................................................................................................
50
MaximallyProductive: ............................................................................................................................................
50
ValuationMethodology .......................................................................................................... .............................52
CostApproach ........................................................................................................................... .............................52
IncomeApproach ...................................................................................................................... .............................52
SalesComparison Approach ...................................................................................................... .............................52
Appraisers of the Keys Page 4 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
FinalReconciliation ................................................................................................................... .............................52
AnalysisApplied ......................................................................................................................... .............................52
CostApproach ...................................................................................................................... ...............................
53
SalesComparison Approach ................................................................................................. ...............................
54
Comparables:............................................................................................................................. .............................54
ComparableSales map .............................................................................................................. .............................55
AnalysisGrid .............................................................................................................................. .............................63
Time: .......................................................................................................................................................................
64
Location/view: ........................................................................................................................................................
65
GrossBuilding Area: ...............................................................................................................................................
65
Landto Building Ratio: ...........................................................................................................................................
65
Condition: ...............................................................................................................................................................
65
Type: .......................................................................................................................................................................
65
Other: .....................................................................................................................................................................
65
Reconciliation: ........................................................................................................................................................
66
IncomeApproach to Value ................................................................................................... ...............................
68
FinalReconciliation: .............................................................................................................................................
70
Valueby all Approaches ............................................................................................................. .............................70
ValueConclusion: ...................................................................................................................................................
70
Opinionof Marketing Time ................................................................................................... ...............................
71
PrivacyPolicy Notice ............................................................................................................... .............................72
CertificationStatement ........................................................................................................ ...............................
73
AppraiserLicenses ..................................................................................................................... .............................76
Engagement letter/ Purchase Order: .....................................................................................................................
77
Warranty Deed — Improvements ............................................................................................... .............................78
WarrantyDeed —Vacant Lot ...................................................................................................... .............................79
Glossary: .................................................................................................................................................................
80
Appraisers of the Keys Page 5 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Table of Exhibits
Figures:
Figure 1—
Subject location and drive time from subject ................................................................ .............................25
Figure 2 —
Layton demographic survey (source — ESRI and Site to do Business) ............................ .............................26
Figure 3 —
Middle Keys demographic survey (source — ESRI and Site to do Business) ................... .............................27
Figure 4 —
Layton Key data (source — ESRI and Site to do Business) ............................................... .............................27
Figure 5 -
Housing profile (Key West and Monroe County) ............................................................ .............................28
Figure 6 —
Major Employers in Monroe County ............................................................................. .............................29
Figure 7 -
Employment Rates (Monroe County v Layton) .............................................................. .............................29
Figure 8 —
Inventory and Sales volumes (source Flex MLS) ............................................................ .............................30
Figure 9 —
Overall Market data (source Flex MLS) .......................................................................... .............................31
Figure 10
— Sales volumes in Monroe County in dollars (Source — CoStar) .................................... .............................32
Figure 11
- Sale volumes commercial market — Monroe County ................................................... .............................32
Figure 12
- Monroe County residential market over past 4 years .................................................. .............................34
Figure 13
- Subject Location and aerial map ................................................................................... .............................37
Figure 14
- Aerial and plat map — (source Monroe County Property Appraisers website) ............. .............................39
Figure 15
— Flood Map (source — STDB) .......................................................................................... .............................40
Figure16—
Improvements .............................................................................................................. .............................44
Figure17
— Zoning map .................................................................................................................. .............................48
Figure 18—
Comparable sales map ................................................................................................. .............................55
Tables:
Table 1-
Monroe County and Key West population ...................................................................... .............................22
Table2 -
Population breakdown ..................................................................................................... .............................22
Table 3 —
Key West Cruise ship numbers (Source: Key West Chamber of Commerce) .................. .............................23
Table 4 —
Key West Airport numbers (Source: Key West Chamber of Commerce) ........................ .............................24
Table 5 -
Key West Visitor numbers ................................................................................................ .............................24
Table 6 —
Monroe County Retail Taxable Sales ............................................................................... .............................28
Table 7 -
Real Estate taxes - 2017 assessment year ....................................................................... .............................45
Table 8 -
Comparable tax records ................................................................................................... .............................45
Table9 —
Sales Summary ................................................................................................................ .............................55
Table 10
— Sale adjustment table ................................................................................................... .............................64
Table 11—
Sales Comparison Approach Value Indicators ............................................................... .............................67
Appraisers of the Keys Page 6 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Subject Photographs
Subject rear view
Subject street view (Overseas Highway looking south)
Appraisers of the Keys
Page 7 of 85
Subject side view and view of garage access
Canal and dock (damage in recent storm)
File# 13927
Client File # 00058381
Subject Front view
Subject side view
68300 Overseas Highway, Layton, FL 33001
Vacant lot adjacent to improvements
Roof mounted central air conditioning unit
Dock damage as a result of storm
Appraisers of the Keys
Page 8 of 85
Wood dock
Soffit damage caused by storm
Interior — Office space
File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Interior — Office space
Interior — Office space
Interior — residential unit Interior — residential unit
Interior — residential unit Interior — residential unit
Appraisers of the Keys Page 9 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Dry wall cut to 3ft due to flooding Interior — residential space
Kitchen to residential space — base cabinets and drywall Bathroom
removed due to flood damage
Storage area
Interior
Appraisers of the Keys Page 10 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Storage area
Roof structure
Appraisers of the Keys Page 11 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Definitions
Market Value:'
Market value means 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 undue stimulus does not affect the price. Implicit in this definition is the
consummation of a sale as of a specified date and the passing of title from seller to buyer under
conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they consider their own best
interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable
thereto; and
(5) The price represents the normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.
The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other
precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a
competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting
prudently, knowledgeably, and for self- interest, and assuming that neither is under undue duress.
A Fee Simple estate is defined Z as:
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations
imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
A Leased Fee interest is defined Z as:
A freehold (ownership interest) where the possessory interest has been granted to another party by
the creation of a contractual landlord- tenant relationship (i.e., a lease).
Marketing Time is defined Z as:
An opinion of the amount of time it might take to sell a real or personal property interest at the
concluded market value level during the period immediately after the effective date of the
appraisal.
Marketing time differs from exposure time, which is always presumed to precede the effective
date of the appraisal.
Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement
on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property
Market Value Opinions" address the determination of reasonable exposure and marketing time.
Exposure Time is defined Z as:
(1) The time a property remains on the market.
(2) The estimated length of time the property interest being appraised would have been offered on the
market prior to the hypothetical consummation of a sale at market value on the effective date of the
appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open
' Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).
Appraisers of the Keys Page 12 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
market.
See Marketing Time, above.
Gross Building Area (GBA):
Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the
above -grade area. This includes mezzanines and basements when typically, included in the region.'
Rentable Area (RA):
For office buildings, the tenant's pro rata portion of the entire office floor, excluding elements of the
building that penetrate through the floor to the areas below. The rentable area of a floor is computed by
measuring the inside finished surface of the dominant portion of the permanent building walls, excluding
any major based; calculated according to local practice.'
Gross Leasable Area (GLA):
Total floor area designed for the occupancy and exclusive use of tenants, including basements and
mezzanines; measured from the center of joint partitioning to the outside wall surfaces.'
As Is Market Value:
The estimate of the market value of the real property in its current physical condition, use and zoning as
of the appraisal date.'
Stabilized Value:
Stabilized value is the prospective value of a property after construction has been completed and market
occupancy and cash flow have been achieved.'
z Narrativel.com. Thomas W. Armstrong, MAI
Appraisers of the Keys Page 13 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
,4 #0% °A§ ! Via# ARM
Acceptance of and /or use of this report constitutes acceptance of the following limiting conditions and
assumptions; these can only be modified by written documents executed by both parties.
This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in its entirety is
at the discretion of the client, individual sections shall not be distributed; this report is intended to be used in
whole and not in part.
No part of this appraisal, its value estimates or the identity of the firm or the appraiser(s) may be communicated to
the public through advertising, public relations, media sales, or another media.
All files, work papers and documents developed in connection with this assignment are the property of Appraisers
of the Keys. Information, estimates and opinions are verified where possible, but cannot be guaranteed. Plans
provided are intended to assist the client in visualizing the property; no other use of these plans is intended or
permitted.
No hidden or unapparent conditions of the property, subsoil, or structure, which would make the property more or
less valuable, were discovered by the appraiser(s) or made known to the appraiser(s). No responsibility is assumed
for such conditions or engineering necessary to discover them. Unless otherwise stated, this appraisal assumes
there is no existence of hazardous materials or conditions, in any form, on or near the subject property.
Unless otherwise stated in this report, the existence of hazardous substances, including without limitation
asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present
on the property, was not called to the attention of the appraiser nor did the appraiser become aware of such
during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the
property unless otherwise stated. The appraiser, however, is not qualified to test for such substances. The
presence of such hazardous substances may affect the value of the property. The value opinion developed herein
is predicated on the assumption that no such hazardous substances exist on or in the property or in such proximity
thereto, which would cause a loss in value. No responsibility is assumed for any such hazardous substances, nor for
any expertise or knowledge required to discover them.
Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance is mandatory
Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due
diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation.
Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is assumed for
matters of a legal nature.
Necessary licenses, permits, consents, legislative or administrative authority from any local, state or Federal
government or private entity are assumed to be in place or reasonably obtainable.
It is assumed there are no zoning violations, encroachments, easements, or other restrictions which would affect
the subject property, unless otherwise stated.
The appraiser(s) are not required to give testimony in Court regarding this appraisal. If the appraisers are
subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s) Appraisers of the Key's regular per
diem rate plus expenses.
Appraisals are based on the data available at the time the assignment is completed. Amendments /modifications
to appraisals based on new information made available after the appraisal was completed will be made, as soon as
reasonably possible, for an additional fee.
Appraisers of the Keys Page 14 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Hazardous Waste: No information regarding the presence or absence of hazardous waste on the subject
property was provided. This appraisal assumes the absence of any and /or all hazardous waste on the subject
property. If hazardous waste is found to be present on the subject property, an adjustment to the valuation
contained in this report may be required.
Title Conditions: No current title commitment/ report was provided for review. It is assumed that any special
exceptions, other than those noted previously in this report, are typical, and there is no adverse impact on
value. The right to modify the valuation contained in this report is reserved upon review of title conditions.
Americans with Disabilities Act (ADA) of 1990
A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity in public
accommodations, employment, transportation, government services, and telecommunications. Statutory
deadlines become effective on various dates between 1990 and 1997. Appraisers of the Keys has not made a
determination regarding the subject's ADA compliance or non - compliance. Non - compliance could have a negative
impact on value, however this has not been considered or analyzed in this appraisal.
Appraisers of the Keys Page 15 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Executive Summary:
Location:
68300 Overseas Highway, Layton, FL 33001
Assessor's Parcel ID's:
Improvements:
00387620 - 000000 - Alt Key #1475742
Vacant lot:
00387640 - 000000 — Alt Key #1475769
Property Rights Appraised:
Fee Simple
Improvements:
No. of Buildings
1
No. of Stories
1
Gross Building Area
2,640 sq. ft.
Net Rentable Area
2,640 sq. ft.
Efficiency Ratio
100.00%
Property Amenities
Off - street parking for 5 cars.
Year Built
1964
Condition
Average with deferred maintenance
Highest and Best Use:
As Vacant:
Mixed -use commercial building.
As improved:
Current use as mixed -use commercial building.
Date of value opinion:
November 21st, 2017
Exposure / Marking time
6 - 9 months / 6 — 9 months
RECONCILED VALUES
Market Value via Sales Comparison
$455,000
Approach
Market Value via Income Approach
NA
Market Value Final Reconciliation:
$455,000
E
Appraisers of the Keys Page 16 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Scope 017 05"
According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser's responsibility to develop
and report a scope of work that results in credible results that are appropriate for the appraisal problem and
intended user(s). Therefore, the appraiser must identify and consider:
• the client and intended users;
• the intended use of the report;
• the type and definition of value;
• the effective date of value;
• assignment conditions;
• typical client expectations; and
• typical appraisal work by peers for similar assignments.
This appraisal is prepared for Mr. Kevin Wilson of Monroe County, FL (Florida Keys). The problem to be solved is to
estimate the 'AS IS' market value of the subject property's Fee Simple Estate as of November 21st, 2017. The
property was inspected on November 21st, 2017 and this is the effective date. The intended use is to determine
the market value for possible purchase. The intended users of this report are the client, Monroe County only. No
other intended users have been identified.
Dissemination of this report by any party to non - client, non - intended users does not extend reliance to any other
party and Appraisers of the Keys will not be responsible for unauthorized use of the report, it's conclusions or
contents used partially or in its entirety.
Report Type: This is an Appraisal Report as defined by Uniform Standards of
Professional Appraisal Practice under Standards Rule 2 -2(a). This
format provides a summary or description of the appraisal
process, subject and market data, and valuation analyses.
Property Identification: The subject has been identified by the legal description and the
assessors' parcel number.
Inspection: A complete interior and exterior inspection of the subject
property has been made, and photographs taken.
Market Area and Analysis of Market A complete analysis of market conditions has been made. The
Conditions: appraiser maintains and has access to comprehensive databases
for this market area and has reviewed the market for sales and
listings relevant to this analysis.
Highest and Best Use Analysis: A complete as vacant and as improved highest and best use
analysis for the subject has been made. Physically possible,
legally permissible, and financially feasible uses were
considered, and the maximally productive use was concluded.
Type of Value: AS IS Market Value
VALUATION ANALYSES
Cost Approach: A cost approach was not applied due to the difficulty in
determining the level of depreciation. This is not a reliable
indicator of value and is not typically relied upon by purchasers
in the market.
Appraisers of the Keys Page 17 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Sales Comparison Approach: A sales comparison analysis was considered and developed as
there have been several sales of commercial office units. This is
typically a good indicator of value as it shows the relationship
between a willing buyer and seller with most owner occupiers
using this approach as their primary value conclusion.
Income Approach: An income analysis was considered, however was not developed
as these smaller units are typically owner - occupied and not
investor driven. This is not a reliable indicator of value.
Hypothetical Conditions: There are no Hypothetical Conditions for this appraisal.
Extraordinary Assumptions: Hazardous Waste: No information regarding the presence
or absence of hazardous waste on the subject property
was provided. This appraisal assumes the absence of any
and all hazardous waste on the subject property. If
hazardous waste is found to be present on the subject
property, an adjustment to the valuation contained in this
report may be required.
Title Conditions: No current title commitment/ report was
provided for review. It is assumed that any special
exceptions, other than those noted previously in this
report, are typical, and there is no adverse impact on
value. The right to modify the valuation contained in this
report is reserved upon review of title conditions.
The appraiser has not been provided with an environmental
survey of the site. An extraordinary assumption has been used
and assumes that the site does not contain significant native
species or areas of wetland that would affect development of
the site.
The appraiser has not been provided with a survey of the site.
Information regarding current setbacks have been taken from
the visual inspection of the site and from aerial photography
from the Monroe County Property Appraisers website and GIS
system.
Any changes in assumptions may affect value conclusions.
Appraisers of the Keys Page 18 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Preamble.
The property being appraised comprises of a single- story, mixed -use, detached commercial property located on
the south side of the Overseas Highway within the City of Layton. The subject comprises of office space, storage
areas, and a residential unit. There is also a contiguous vacant parcel of land to the north which has been included
in the appraisal. The unit is in a rural location and is surrounded by mainly commercial spaces all located on the
highway and residential properties in the established neighborhoods on the secondary streets. The subject has
good exposure to the passing traffic as it is located on the main road running though the Florida Keys, however is
located further from the main commercial centers.
The subject was owner occupied at time of inspection with all utilities on and working. The property was used by a
local business who occupied the rear residential unit. The improvements are legally conforming as per the current
zoning requirements as per the City of Layton. There is adequate off - street parking to the front with the site
accessed directly from the Overseas Highway via a curb cut. The lot to the north is currently vacant and accessed
from the Overseas Highway.
The subject is with in an area that has been designated a disaster area from the recent hurricane (IRMA) that made
landfall in the Florida Keys on September 10 2017. The subject has suffered significant damage from the recent
storm and the damages are detailed below:
1) The subject has suffered flood damage which has resulted in significant areas of the drywall to be
removed (up to 3ft) as well as localized impact damage to the drywall.
2) Because of the flooding the base cabinets and drywall to the residential kitchen have been removed
3) The wood dock to the canal has been damaged and in some places collapsed due to the storm.
4) Minor damage to the fascia and soffits to the roof line.
5) Missing sink to restroom.
The appraiser has estimated a cost to cure the deferred maintenance and this is detailed later in the report. The
client should be aware of the FEMA 50% rule regarding the repair of damages to properties within a flood zone
which were caused by a natural disaster. The cost of the repairs cannot exceed 50% of the market value of the
structure (no land value included) otherwise the improvements must be removed or brought up to code in regard
to building in a flood zone. The client should contact the local FEMA coordinator for more information.
Property History:
There have been no prior sales or transfers of the subject in the last 3 years.
The subject is currently not listed in the local MLS system (Key West Association of Realtors, Inc (KWARMLS) or on
any other commercial brokers website.
The appraisal comprises of 2 parcels of land:
68300 Overseas Highway: The last market sale was on April 1st, 1998 for $190,000. This was not found in the local
MLS system as the records do not go that far back. The sale was between HGS of Long Key Inc (Seller) and Haring
Properties, Inc (buyer) — Book and Page: 1507/1946; Document #: 1056416.
Vacant lot: The last market sale was on August 21st, 2002 for $57,500. This was not found in the local MLS system.
The sale was between Telcom Systems Ltd (Seller) and Haring Properties, Inc (buyer) — Book and Page: 1809/2489;
Document #: 1319132.
The 2 parcels have not been combined by the current owner.
Appraisers of the Keys Page 19 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
The appraisal assignment is to estimate the current 'AS IS' Market Value of the Fee Simple Estate of the property
for potential purchase. The engagement includes the adjoining vacant lot. The subject was occupied at time of
inspection and is 100% owner occupied. No Leased Fee interest has been calculated.
The property is located at 68300 Overseas Highway, Layton FL 33001.
Our investigation and analysis of the property included but was not limited to the following:
• An internal and external inspection of the subject property and its site.
• A detailed Market analysis was performed to determine market value via obtaining sales of comparable
properties.
A detailed Market analysis was performed to determine market value via obtaining rental data of
comparable properties and determining an appropriate capitalization rate. In this case not applicable
The value conclusions set forth herein is predicated upon current market conditions as they can be recognized and
interpreted.
Appraisers of the Keys Page 20 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
! <_• ° ! R ' ir?@Y
The State of Florida has increased rapidly in population from 9,746,000 in 1980 to 16,396,515, in 2007 to
18,801,310 as of the 2010 Census Data with the last estimate of 19,893,297 Florida in the past has been known
principally for its tourist attractions, citrus, and winter produce. In addition to it being a year -round resort area, the
State has experienced an influx of growth of industry and manufacturing since World War II. Florida is now less
dependent upon tourism which indicates a more stable year -round economy. The trend of the Florida economy
generally parallels that of the nation with favorable future economic forecasts.
Monroe County stretches 150 miles south and west of Miami and Miami -Dade County along a series of islands or
keys connected by 42 bridges carrying U.S. #1 (Overseas Highway) to terminus Key West, the County seat. Total
usable land area scattered over the larger keys is about 100 square miles, which includes Key West's 6+ square
miles. Of these 100 square miles, only 25% is improved. However, most of the 75% vacant land is not develop able,
meaning it is wetlands, mangroves, or native areas protecting endangered species of birds, animals, plants and
marine life.
Virtually all of this land is 0 to 18 feet above mean high water and classified within the FEMA 500 -year flood hazard
zone. The geology is mostly oolite (calcium carbonate granules) and coral rock. Tropical vegetation covers surface
areas with a wide assortment of grasses, vines, shrubs and trees such as palms and pines. The shoreline is
extensive and nearly all in mangroves, a protected species. Sand beaches are few and are usually found in five or
six state parks.
On the Atlantic Ocean or Florida Straits side of the Keys is a string of barrier reefs four to six miles off -shore with
the axis of the Gulf Stream two to four miles beyond, flowing northward. This band of turquoise and blue water
contains some of the finest sport fishing in the world. Snorkeling and scuba diving are very popular, especially at
John Pennecamp and Looe Key State Underwater Parks.
Monroe County is the southernmost of Florida's 67 counties beginning at the Miami -Dade County line about 40
miles south of Miami, extending west and north to include the Everglades National Park and part of the Big Cypress
National Preserve, and stretching 120 miles south and west along the largest of some 800 islands or Keys across 42
bridges carrying U.S. #1 (Overseas Highway) to terminus in Key West, the County seat. Total county area is 1,788
square miles, 1,672 square miles of which is national park and preserve. Unincorporated public and private usable
areas are 94 square miles plus 6.25 square miles in the City of Key West, 4.87 square miles private and 1.4 square
miles military. There is another 116 square miles in offshore Islands.
The 2014 total population of Monroe County is estimated at approximately 77,136 permanent residents increasing
to approximately 125,000 during the peak winter season. Key West has approximately 25,704 permanent residents
increasing to approximately 90,000 in season and is host to about 2.2 million tourists. This population is spread
among the Upper Keys (Key Largo to Lower Matecumbe) 28 %, Middle Keys (Long Key to Marathon) 17% and Lower
Keys (Big Pine to Stock Island) 23 %. Approximately 15,000 vehicles per day cross into Monroe County according
recent traffic counts. The overall permanent population has remained stable over the past 10 years based on
information taken from the US Census Bureau.
3 US Census Data
4 U.S. Census Bureau
Appraisers of the Keys Page 21 of 85
File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
4iF9YR" E' i` ""tFv& r435kR av 4 aferram I a'" r @Wk "f
Table 1- Monroe County and Key West population
There are a number of families who make Key West their home and are born and raised here. The demographics of
the area are similar to the remainder of Florida with an aging population. A number of the older residents typically
move away after retirement to be closer to family and improved health care. As previously stated there are a
number of non - permanent residents who visit Key West over the winter months and are typically from the
northern states. These non - permanent residents own property in Key West and are typically retired individuals.
�t1�'N�_li4ti�6861a,- ufJasl ]��;
1 Ain-,-
KLy W[:st
CoLlllty
FLnda
sti.[x's
Brenkdcawn:
2015
s 99
- 4424,
3 J'AJ, v
0 -19
18%
17%
23%
76%
35 -44
17%
2U I
74"?4.9 .
13
2111
_ A4..315 I
1 6? 41
14%
1 =111:
55
.111$
7?.aR`1!•.
1;1 =a;?`4
4iF9YR" E' i` ""tFv& r435kR av 4 aferram I a'" r @Wk "f
Table 1- Monroe County and Key West population
There are a number of families who make Key West their home and are born and raised here. The demographics of
the area are similar to the remainder of Florida with an aging population. A number of the older residents typically
move away after retirement to be closer to family and improved health care. As previously stated there are a
number of non - permanent residents who visit Key West over the winter months and are typically from the
northern states. These non - permanent residents own property in Key West and are typically retired individuals.
Table 2 - Population breakdown
Commercial fishing is equal in importance to the tourist industry. Industry in the Florida Keys, which was
dominated by commercial fishing until recently, has changed in recent years to sport fishing and diving, marinas,
motels, time -share resorts, restaurants, and other tourist - oriented businesses. Over the past ten years, the tourist
season has expanded from a few months a year to almost year round.
The United States Navy also contributes significantly to the Lower Keys economy, since Key West Trumbo Point
and Boca Chica Naval Air Station are home to naval fighter training and development. All services are represented
with highly trained units. This results not only in a substantial military population requiring housing and service
needs, but also employment for local civilians.
Monroe County growth and population has stabilized after years of growth. Much of the new resident population
has located throughout the Keys. However, the greatest concentration of growth has been in Key Largo and the
northern part of the county.
Appraisers of the Keys Page 22 of 85 File# 13927
Client File # 00058381
1 Ain-,-
KLy W[:st
CoLlllty
FLnda
sti.[x's
Brenkdcawn:
2015
7 005
2015
1 015
0 -19
18%
17%
23%
76%
35 -44
17%
13%
1'
13
.1:5 -5.4
15'%
1 6? 41
14%
1 =111:
55
1 6 11 1_
17%
13 ?;r
1 2%
65- 74
T� ..
1 2 , a €,1
1WA.
8Q.
- +5=
4%
M16
9%
15%
I .Age-
41.6
46D..8
41 -4
37,61
_mired N ee].Ylt4 F.hv"am
A m e n cam f":fdeyf
ilrider
Pop ulation
KVV
Munme
Un tcd
[;Haul
West
County
llonda
`_Sta.tC;
Breakdown.
21115
20 [ 5
''()15
2015 ..
Whi,te
€i5.3 "
690%
56.1%
613%
Mack
1(4.3
67 141_.:6
1 ti 5° 6
12.3%
11kspanic.
N- P.8%
9) +sl
23.7%
17.1!°•;1
Other
3.6%
4 p",
1,7 ' i.
S. 3
„4iiurce FS ti` . id.4l1.4 Uw., F.clddi .4 rdt"i.cjm a
Tided idi Yf
Table 2 - Population breakdown
Commercial fishing is equal in importance to the tourist industry. Industry in the Florida Keys, which was
dominated by commercial fishing until recently, has changed in recent years to sport fishing and diving, marinas,
motels, time -share resorts, restaurants, and other tourist - oriented businesses. Over the past ten years, the tourist
season has expanded from a few months a year to almost year round.
The United States Navy also contributes significantly to the Lower Keys economy, since Key West Trumbo Point
and Boca Chica Naval Air Station are home to naval fighter training and development. All services are represented
with highly trained units. This results not only in a substantial military population requiring housing and service
needs, but also employment for local civilians.
Monroe County growth and population has stabilized after years of growth. Much of the new resident population
has located throughout the Keys. However, the greatest concentration of growth has been in Key Largo and the
northern part of the county.
Appraisers of the Keys Page 22 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Tourism is now the single major economic driving force. 696,887 cruise ship passengers disembarked in Key West
in 2016. This was the 2 nd year in row with a decrease from the previous year, the figures from the Key West
Chamber of Commerce shows that the numbers decreased from 2012 to 2013 increased from 2013 to 2014 and
decreased though the end of 2016. Recent events in the cruise ship industry including several high - profile
accidents and incidents has reduced the number of passengers on ships worldwide. The number of ships visiting
Key West has decreased over the past 12 months as cruise ships are looking at different locations to dock. A vote
by the residents of Key West, in 2014, stopped any consultation on dredging the channel to allow for the larger,
more modern cruise ships. This would have involved damage to the nature reserve and sanitary through which the
ships would have passed. This has resulted in several new ships not being able to call into Key West with
companies bypassing Key West.
Key West Chuis Sh:p Data - Passenger Cournts
N..b- of Passenger Arrwags
f5iu QeOf .Ker, ft'. RV, ."A.kranons. --I
Month
2CC:6
2007
2008
2tD9
21310
20 t?,.
2012
21313.
2.1.14
2516
2'�18
2517
J�
'26,3.22
7 5.714
35,213
7 1819
62.747
9..,•'
76 t 06
61.792
31,885
83.915
63..39! :.
85.; 32
Feb-
35,508
73 .057
0rl,6.5k
77.'95
60465
32,113
X6.579
74,563
00, 365
85,501
?4,587
74,1303
Mar
1''x}`,229
97,.476
'32,145
76,309
7 2.735
0:1921
11 -352
89,825
1130.880
100.069
68,034
77,623
Ap,
89.444
81 119
76,32
72.933
72.435
7 6'1 @:.
73,143
63.,134
'3431
71 a0`r
76.324
69.843
tw+ea }
54;5`.8
46..026
44,22=.
91,420
60,829
49,7`9.3
35,563
50.210
59.'210
;30317
33.837
45,'x79
Jinn,
52,70
47.437
35,941
79,330
69:457
4:7,502
59,844
44:073
43,850
35.353
-01,523
Jul
52,586
52;62
45,2:+,5
54,231
64.665,
4,122
27.374
47.65 .
47,130
41,821
47 747
.Aug..
51,550
69 Del
3.3,3 #7
58,0.05
71.977
60+,442.
55,40'-
50.179
30,009
32,.191
41.926
Sep
41,526
57.233
45,92;
5 1,f42
53,007
4 ',555
49 :2
39,455
33,59a
37,244
31 -467
D13;180
Dc[
2'.
50 -2L'`.
51,3€0
54.745
77.422
64,161
83.263.
55..,520
49,15.3
37.570
52,206
Nov
77,532
80.735
64,95;
660,456
80.471
6.x,217
5 +9.445
65,191
6 - ,022
7.,.572
55,59'2
De
17,576
92,105
92,3 5
7 5,3'19
913.852
33
55,!40
90,415
101,161
85.260
8d284
Total
3.35,213
x16..919
740,932.
359,469
550.270
81
8..3,713
765.132
798.960
726
396,837
362.590
Key }WR tCruiJ a hop , Data - Pas -ger Counf9
Peroencage Change from Prior Year
`: " Citt of Ke t ft,t ; a- xF !
Month
2526
2007
2008
213✓J9
2010
20 €f
2012 .
2013.
2 }14
2u15
2ful6
2517
J_
-01 a
- 21.4,1.
' ":5.
16 -7%
=2.9%
=7.3°1,.
20 -5%
0. 2
_.5%
14.37
Fe3
- 129 °E
-14.6,.
"Y.5 °•6
-5,946
- 22.15o
3 "a.5%
5.3°.6
14.1`.1
TO%
5. 11
1i.8%
�7�0
Mar
-10.
-Z.7%
2.V <
4
-4' 7%
T.3 ?6
9.0`3
1.7%
2L.
7 6.77
3.52;6
1 2.5%
Ap€
-0 -2 6
- '3.3`,6
-3.4%
-6.9%
-0 .e%
- 2 1 .
.5 99,
137
24.2`1.
-h.3 "°
6.7%
- F.7 =r;
Mw
4%
- 2R.I` +e
- 3.'2`6
2 ;136.1%
- 3.32`:;
8 3
331.9%
25.9%
7.2`6
_4&8'
1 €8%
34.57
J.,
_23`,5
-24.2'7
-24.3b
213%
- 1 30 1 ,'
_S327.6
1'.111
;.3 °;•
174%
Jul
-22%
- 15.9,°
74:"x.%
41.0%
0.710
'63%
25.4ti -.
22.8!,•
1.1%
21.37
141%
Aug..
. 26.4%
W. -.:
- 51..5%
- 14.9%
21.37.
- 2.
?0.2%
2S °6
- 24:2 ^6
. 13.8`".
27.9' ;.
3" p
- 18. "!.
37.
-t9.S%
34.2%
-13.97
-2 7%
18..1 `.G.
-12.87
- :3.2`• ^;
- 15.5`.'1.
On
57.8 °�a
13. An
- 26.2%
28.6'.3
29.6%
-2.4%
122`,x,
1';,5`6
6`6
3.2.0%
N-
29 6%
21..0
8.9
-2..3%
26.056
251%
-i.3%
°
- 22.3`76
13.2`1
- 2:3.1°1.
D
1 2:%
-5. - .o
0.2%
-13.7%
200%
-8:5%
-21
47.9%
2.8%
- 45.7`°0
:3f%
Total
-3.:9%
- 3.0%
-9.3 %.
16.0`,'3
t.i °•6
-4. 6%
0.3%
-6.07
4.2%
10.8%
2.3%
10.57
Table 3 - Key West Cruise ship numbers (Source: Key West Chamber of Commerce)
Key West airport, originally built to handle 35,000 people, handled 366,649 in 2016 which was an increase over the
previous year. A regional jet service has been running since 2002, with Delta Airlines which now operates direct
regional jet service to Atlanta as well as daily flights to Miami, Tampa, Fort Lauderdale, and Charlotte with
American Airlines (American Eagle) and Silver Airways. There are direct nonstop services to New York and Chicago
over the winter months which has typically been a prelude to full time regular flights. There are low -cost airlines
which fly into Key West including Silver Airways which flies to Tampa, Ft Lauderdale and Orlando and has taken
over the routes recently vacated by Southwest. There is no commercial carrier flying internationally from Key
West, with local charter services available to the Caribbean, The Bahamas and recently to Cuba. Key West airport
also recently went under significant renovations over the past 10 years with an improved customs, arrival and
departure areas and a new parking garage.
Appraisers of the Keys Page 23 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Key W4 t Awport Da¢ - Passenger Curio is
N:u. -:her of Pa�sse.nger Arrw Is by Pfaoe
Manih
2005
20
20Qa
2002
2010 .:
2011
2012
20 3
2Q 14
20 ?5
2016
2017
Jan
25.82.7
24.7'21
22.050
26,828
24.461
�1
L.9..8
2,531'
:33..541
37,83_
32,91=9
33,3 70
35.735
Feb
724
25,1 F,
24.787
�,75s
28861
2
34,5 6
33.2'.3
67J775
3:'[.5.51
258
32,392
Mar
3t, 225
29,358
28.892
-5.4,35
29,734
5,593
37;122
41.270
48. 381
37,341
42,"599
44,013
Apr
28,076
26, *.
22.648
24,154
2"5:210
34,905
33,133
5.919
39.494:;
34,420
34,594
39.52?
May
1282:
'23,'2.98
21.026
29,625
-2.434
28 M5
3`.,245
33.454
37224
?,192
29,693
34,081
Jun
22,531.
20.2.54
18 247,921
19x"58
28.305
22,224
"31 285
24,85'2
25,284
23.5'9
Jti9
20,79 '
19,"+58
15
27',510
99.�d48
28.69;4
33128
31,080
23579
2:5,2"34
28.,2'8
.5..:...g
95,227
7 ,260
12,879
24,711
F850C
24J712
25,31:.5
26.652
22 50'2
23,650
24.467
S.ep
9..
-3 -793
8 ➢04
2'1,2:+2
+.8,500
20,157
2S,3
22,533.
18 ?98
20,7:'9
21,589
03 t
29'.,176
X0,928
15.243
265775
22,959
4. 8.2
21,BJ9
30.3.7
22.,635
25,178
28,968
Plow
22,4 +:2
2:1 43
17- "538
27,548
24.449
27 111
27,826
31,:628
23.287
25
26.919
7e..
22,65"3
21,389
19,151
22,0:_Y._
27,4.35
31,1
33,7,14
38,J12
23,916
3 ,541
37x'29
T-1
.275,254-
263,766
?"92..198
222313
7'266
333.;978.
367,8 5
386,294
361;185
345,4J2
368,:849
192,042
Key West Airport Da[ - Pas.s:en gsr Counts
Pe: roe ntage C hange from Pafior Year
M.39i
2008
2037
200a
200a
244Q
2012
2012 .
2+3'x'3
2014
2018
2016
2017
,tan
S5i1S
-a - 1
- -6%
-8.2%
192/
94%
29>r
3:1 %a
12.2%
_M%
0.55=
5.1'-
Feb
- 9431'>
-:,'%
1. %
-7
^2..p%
22.1%
5.15<
2 23.3%
-2.6'-
2.1%
22%
8.3%
5.792
Max
ti'.3"'>
5.7%
_-A
-4.7%
16..9%
29.7%
5.'i. as
12.4%
5.
•-5%
14:'2%
4.7`2
Apr
-2 W4
-2. 1%
93 ?`.>
6. E'%
7.1%
34.7%
-5.'%
8.0°
1'"'%
9.27 - %
0.3%
13.791
May
S•3.51:
-4.9%
- 9, &
- 6.5 °.6
14.31.
21.1%
16.4' *D
7. 1%
144%
0,3%
-0.4 %.
147%
Jun
19.5%
-10.1%
!7'4%
33.3 °5
St.4` %D
5 -6q,
'12.8 `>
i.T%
- 6.74a.
Ju.
-5.7%
-4.Q °.G
9.39>
19b °:
6.6%
41:3
93. I%
-2 -2J
8 %,
',0.2'3
a -8 %.
Aeg
a cry
13 -0%
13=:>
- .
27.7 '
54.
13.2°
_4.9">
7 .1`3
Sep
E.5`.
-3 -793
3
.2.5 .1
50.5:3
200-
`.C.
-3..1-
-15.1-
'3.3%
5.5%
O1 t
9.
- 14
tD . r,1+,
7%
95.7 --
5 -4 -,
24.a%
' S 1%
3.1%
Plug
3296
- 3.'S °.a
- 19
0.1
39.4'.3
13:2 °;
rL5`.>
D I
24.0
94.J%
9.1 ° +a
Dec
5.3,.
- 8.93:;
9.2%
5.2%
232%
1u.9%
8. i'•>
12.6`4
-23.8%
9.0%
18.4'.&
73.131
42.0°•6
-4.:5%
-95.8%
3:2%
21 2%
20.256
9J. {_,
S.. B%
- 7'..4%
-0.4 %
5:11
20�A92
Table 4 - Key West Airport numbers (Source: Key West Chamber of Commerce)
The Upper Florida Keys does not have a general aviation airport, there is one private airport at mile marker 90.
Visitors to the upper keys, fly into Key West or Miami airport. The Miami International Airport is approximately a
one -hour drive from the Upper Florida Keys (Key Largo).
Key West has approximately 2,464 hotel rooms, 2,077 motel rooms with another 464 rooms in guest houses,787 in
transient multi -unit complexes and 1,004 vacation rentals for a total of 6,796 units of total lodging. Reports
indicate occupancy rates of 70% in the county areas and 75 %+ for transient properties in Key West. This high
occupancy factor is due to occupancy increases in the off - season, as Key West and the Florida Keys become a year -
round tourist destination.'
t^IHknd.i ke rx %'kmriar @'e�rttn 1 c
16 `Ik'tik (fi91'.. 5 1` 1 1 1 71117 1 �1
5_., 'W.,A i.1- .r�z.„ .,wvra 1:. 112.'1. I.il5. 110 1 x0'0 1 :',11111 1.SMU',1'= [.4 .rs,r+iw 1,W4-I11
F.rr ° -V:SI Dv, Trirman _0.9jil.1 „ :9QJ00 3 1 3.31N3 .I1.�' -? 7 x 1.1:9
C'nxa.:, .saw+r''xw_nleo-r. 1,i ir, ¢79:1 t.Q - .t 1i E.95k, 951 7 2 {.`_1 3 21 ',46.
I *x: Fsy krzt 'isltr s c- IN I
^'
A.4 s1_at q : %._`
0 v..peam-s..y. ",
`a:lh:,evsl.a rniplrl 2,In 23', _Y0 _. 1__ .,u_u.Yi� I X .,.I. 1..99NF .. Wjx.'O
: rko Hppp ,r1 -wl, (d) . i"JANN 3s R5 iA, 7 NnAvi 9. b911. tk`.F
tnp,Lahs, l"'ge i,°71k fig =a3Vj; OVC i,H'R}c ?EI °s,'t1 ,�. '�, i1 ,�.11a. "da`1li
ieai A IIK V N 3 .3 1k%13 - . ,2._613, ,aln9 ..?�_.. ai 1. .r.3 4 ,d.,4A. ^11:6.41H1 i.94� }9.11
%Sor.A,, t sump e.. 6 2A^ Tq .1,.,4$+, rAa Y.I
Table 5 - Key West Visitor numbers.
In 1981, Monroe County created the County Tourist Development Council (TDC). This is a non - governmental entity
of Monroe County whose sole purpose is to promote and advertise tourism for all of Monroe County. The Monroe
County TDC is funded by a 3% tax on all overnight accommodations in Monroe County. The first two percent of this
3% tax is used to promote all of Monroe County including the City of Key West. The second portion of the TDC's
bed tax is a one percent tax on all overnight accommodations in Monroe County. This 1% revenue is then allocated
among different sections of the county (Marathon and the Lower Keys, Key Largo, Key West etc.), based on their
' Smith Travel Research, Key West Chamber of Commerce.
Appraisers of the Keys Page 24 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
pro -rated contribution of revenues. The portion of this revenue allocated to Key West is approximately 55% (per
the TDC). These funds are used for direct expenditures for advertising, promotion, tourist information services and
special events promotions. Of this total collected tax, approximately 65% goes to promotion and advertising and
35% to special events.
The Florida Keys are a series of islands, connected by a single overseas highway — US Route 1 (aka Overseas Hwy),
which is the only entrance into Key West from the Florida Mainland. For most of its length, US Route 1 is a dual
lane highway. As a result, traffic can often be slow, and transportation linkages are limited and often difficult. This
is the only road in and out of the Florida Keys and as a result any property located directly on the Overseas
Highway benefits from a high traffic count.
The subject is within the boundaries of the City of Layton, which is one of the smaller cities within the Florida Keys
The city boundaries run from mile marker 62 to 72.5 of which the majority of is water and bridges. The city is
located within the Middle Keys and is to the north of Marathon and to the south of Islamorada which are the 2
closest commercial centers. The neighborhood is approximately 60 miles from the City of Key West, the southern-
most city of the Continental United States of America, and 60 miles from the City of Miami. The neighborhood is
connected to the Florida mainland by a series of islands and bridges running from Key Largo in the North to Key
West in the South.
The neighborhood boundaries are the Duck Key to the West, Atlantic Ocean to the South, Gulf of Mexico to the
North and the Village of Islamorada to the East. The following map shows the neighborhood location in relation to
the remainder of the Florida Keys.
Figure 1— Subject location and drive time from subject.
Although the city is incorporated Monroe County provides both the police and fire departments as well as sewage
and waste disposal systems. Water is provided by the Florida Keys Aqueduct Authority whilst power is provided by
Keys Energy Service.
Linkages
By Road:
As stated earlier, because Monroe County is made up of a series of islands and is connected by a single overseas
highway — US Route 1 aka SR 5, which is the only road running from the Florida mainland to Key West. For most of
Appraisers of the Keys Page 25 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
its length, US Route 1 is a dual lane highway and traffic can often be slow, and transportation linkages are limited
and often difficult. The highway though the Layton is two lanes; one lane running both north and south.
By Air:
Layton and the Middle Keys can be accessed via air from Miami International approximately 100 miles to the north
or via Key West International, 50 miles to the southwest. The City of Marathon has an airport located to the south
which currently does not operate as a commercial airport and is used primarily by private owners, State authorities
such as the Sheriff Department and commercial package carriers such as UPS and Fed Ex. There are currently plans
to turn the airport over to a private operator with an aim to bring commercial flights back to the airport. This
would require the airport to have significant upgrades due to the short runway and inadequate facilities internally.
Customs and Border facilities are limited and are currently in the process of being expanded. There are several
smaller airstrips scattered throughout the Upper Keys which along with Marathon allows for smaller private air
planes.
By Water:
There is no commercial passenger terminal in Layton or the rest of the Middle and Upper Keys. There are several
of larger marinas in the surrounding area running from Key Largo in the North to Key West in the South which are
predominately for private use. There is a Customs and Border control center at the Marathon airport. Some of the
smaller marinas are attached to condominiums or PUD developments and are for the private use of the owners in
the development. The closest ferry terminal is in the City of Key West, 70 miles to the South. This currently has a
daily service to from Fort Meyers, FL. There have been recent plans to operate a new service from Key West to
Cuba which is in the early planning stage and has come about due to the easing of economic sanctions between
the US and Cuba.
Economy
Layton is located within the Middle Keys which encompasses several islands, 'Keys', and cities including Duck Key,
Conch Key, and Marathon which is largest island in the Middle Keys. The neighborhood and the surrounding areas
are a major sport- fishing destination, with several charter fishing boats departing from local marinas every
morning to both the Gulf of Mexico and the Atlantic Ocean. Bountiful reefs around Marathon make it a popular
diving, snorkeling, spear fishing, and lobster tickling area. The Historic Seven -Mile bridge is to the south.
Figure 2 — Layton demographic survey (source — ESRI and Site to do Business).
Appraisers of the Keys Page 26 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Figure 3 — Middle Keys demographic survey (source — ESRI and Site to do Business).
The economy is seasonally driven. The winter months are typically busier with an increase in tourist figures as
compared to the summer months. The hotels, motels and vacation rentals have very low vacancy rates over the
winter months but struggle over the summer with some hotels reporting 30 -40% vacancy at this time with
historically September being the slowest time of the year.
There is a small full time population that supports the businesses in the area with very few national business in the
area. The national tenants in the neighborhood are occupying space in the larger plazas along the main highway.
These anchor tenants are bringing local tenants in to these plazas to maximize footfall.
✓
'e fit.
Figure 4 — Layton Key data (source — ESRI and Site to do Business).
Appraisers of the Keys Page 27 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
The overall market has improved over the past few years mainly due to the return of the tourist industry after the
global recession. Hotels and guest house are reporting historically high occupancy levels and Average Daily Rates
which in turn has increased the overall retail sales in the area. The table below has been taken from statistics on
tourism provided by the Key West Chamber of Commerce and shows the year on year increases of retail receipts.
There have been 2 newer hotels completed in Marathon (Holiday Inn and a Hyatt Place) in the past 2 years and
one currently under - construction (Hampton Inn) further supporting an increase in tourist numbers. Visitors are
staying further away from Key West to escape the high prices charged at the hotels in Key West.
The table below has been taken from the Key West Chamber of Commerce and is the most update data for the
sales tax and shows that the tourist industry has continued to increase and is the main economic driver for the
area.
Monrm County Sales Tax. E'Aa
Rebi:..:I Taxahie 5:a1e4 dirt 7 - 4sn =3 ReGrfl6i.3501,
FUrd3 F2eepa. 1 IV L' Reven e F °tile 'a Ye 7 4er.2'nrs)
Pa ull
21D5 20M
2W',
2000
2YIQ
2010
20 i1
20112
20"
2714
21715
2016
.fan
5 137..12' a 1 --s22 5
1'21'2,6[4 $
.._,_ -,[2£ $
Is, 1'£,d23 4
16- .463,.9_ 5
I ?2, }
2a',% 7,362 E
1sed28,332 }
2 ?£,2�,3d4 E
-- ., ,- 15,13? }
,7'-,'20
Feb
5 ! ^3',`i,M'. $ 152,215,E9S $
1 `14,'.96 $
4'3,264,455 i
1x S'2,<-6t $
161.SSE,651 $
I'Z'.W -'`-.: $
4?9.5'.neS4 6
:.`.:L,'.i9.953 $
'.63,38? 6
c.C'23,5%a $
s."3.'3::
,ar
i 211, ?207 1 133."r.C',ESE 3
_24:6V4,EEE Z
202 a`,iE6 3
1'4.3[3,53& $
11.745
'_IM,224,H b
:IS,' E,125 $
�,E72,A ?1 b
2as,[Sssls $
2..'1
2.72
2Kediau Al -thly Housnae Casl
I5:=0C° 1 2 =3 iq..9 5
322.5,[ -6 $
2_._. -42 $
Y12. 4
210,32£,26=. 5
2 ? 2 , ° - £ }
260,_ 6, -5] E
v °,£'72,332 }
�. 42 ?,765 E
4Ld,6 ?5,542 }
a,s 0'9, #1
May
S 1U; L' $ "- ]6,701,'.64 $
12 _ r1 i,E'=2 $
IS I. ,22S $
1 ^02 35[,7.2- S
IS',52E,IXI5 $
214,04E,413 $
215,SS:.,3S3
1,151 $
3,E -S
Jun
5 151,MZ '172 $ 45.,c1_,672 $
IKsSI,Ud $
4'T ', 1 E; $
1x552.';?^ 4
IS5,'AP.SS $
1ci, $
IS' , "eEsss d
'I M
255,215,593 $
220'22212
,ul
F 1 ?2dOk 2 & 173,ar..G,6d3 S
1 44. ;374 Z
1 ,43' S
ISS,Y6,' - " - -' S
152P3E, "'6 S
'475?- 79,[33 $
ssY,'2E,'z5 $
_'9s,`E i,SJR' $
_ i.E0.° X14 $
,- ,x21,1 ]S $
23e
Aug
5 1 ? H7 1 '1'x52 4d£ 5
131642,`` -£ 1
1 O:_'SS- $
166..12[,[379 4
I6e.2.2,£3• 5
192 ,'£ 4 ,[ ? = 7
202, + -s,533 E
210, ` -,'43
Sep
5 13'5"5 $ Ia23 ,4ce $
1515'4,Gi5 $
141545,7'.2 $
f3512'-,5El $
135 ,1 $
I_. °'.'_a, I:53 $
164.523.35: d
15=_.=23, -19
56,= 11, "-53 $
2[=111734
I.�CS
5 ti 34 'IEE 1 1.2'_?..T? ' 1
11.,.1, "I' s
SN 3
102.3 =_',[5S $
IOC E'E,[i? 3
Is .sEa.6' -- b
I6,6_i 1A5 $
19,46,'_ ? - $
469,653,3• -]i $
IF .W:'SE b
%,`s:.?I?
N-
5 In, 77s,ri2 1 . •.02'1,2'.` 5
I5'.1,24[ $
.ee _, -62 $
14_ 114,£53 $
114 �"6' 5
166,156,053 }
127 "`4,3 E
19'2,2 }
-,6d' 2,717 E
I9- ,�53, =3c 5
2'3�E53.T�5
5 ti7"2 $ i5,_P, 75d $
f _tk4.x. a£4 $
39 s#7,G££ $
140 SC,159 $
114612,' $
'1976,_s[[,Clx' }
168,4[`,753 F
'I9i,G8'1,535 }
IE,8 x1,353 F
- ,.E,7,]
T
5 S 2.1.26 13,44= E 2.15 bs^3,9ee $ ..
L'- 2,4]1,644 E 1 s02,92J. 1 1,3#_2'02, @ E 21(.3,[55,435 5
_',215,777.2 § ,J47 14'% 5
_'e83,245.351 §
Z,.7,973.Y 5
�£e t "1d?23
Table 6 - Monroe County Retail Taxable Sales.
Housing Trends:
The housing on Layton is predominantly single unit homes with the majority being on canal or open water lots in
established residential neighborhoods. As with the rest of the Florida Keys there are restrictions on the number of
properties that can be built largely in part due to the ROGO (Rate of Growth Ordinance) restrictions which were set
in place to control the level of development in the Florida Keys. The housing market has continued to improve over
the past 2 -3 years with levels coming close to the pre- recession levels. There has been a shortage of supply of
homes which has driven the prices up along with the sell -off of the distressed homes and homes in poor condition.
New construction has returned to the market, with several new developments recently completed as well as a
number of individual properties.
The Florida Keys are issuing building permits on a point based system and with the average time to obtain a
building permit shorter than in previous years. ROGO exemptions have previously been made available by private
owners which have been purchased by developers.
The table below shows the breakdown of the owner occupier and renters in the City of Key West and Monroe
County.
Kev 1 {j e5t H01151I1a.
PI . 0 ile CNN -
2912 File ]eas' E-m,10
Re+; i4'c2t
h2onrae Cannn
Total Hauling Units'
1
5 917
0-up -1 H p Un m
11. (66.2 -a)
29 41 (i.5 4 °i..ml
Ac- erase -Vun'rber of Anon9a_
4.1
44
A--g, " wnbes of Vehx less:
1.9
2.0
17,'Ee - Haa. hald Income.:
552.660
S 3.418
0 0 vied 111ru.sina U. it,:
5�869
17,6967
Percent of 0-upied U.i.':
50a b
tit °'.
A, e, age Nu be, e f H.usel-ld Nfembels. - - .
2.58
2.34
'vledian Value 4reupxed Lnit_
5431.606
5357'00
' 11 &, S. l�lanthl't Heusv9e Cass
-.11 Aloxtgage
52,531
52:984
Renter 0c pied 1laaa'i aT'n its:
5..8_10
11.745
Percent of 0- upiedL nits
544b
39 °a
Average Yu-be, ofH -11.ld 2 --bers
2..'1
2.72
2Kediau Al -thly Housnae Casl
S1.4419
Si 390
Forr1.. .S C ".,rt_ras Blar a rFmds C _
Figure 5 - Housing profile (Key West and Monroe County)
Appraisers of the Keys Page 28 of 85
File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Major Employers:
There are no single large commercial employers who operate in the Florida Keys and Key West, however one of
the largest employers apart from Monroe County is the US Navy, which is based at sites both on the island of Key
West and in the Lower Keys. Typically, these employees are ex- serviceman and women who have recently retired
from the service and can take civilian jobs on the sites. There is a large labor force associated with the tourism
industry. This is the primary sector in the Florida Keys with bars, restaurants, guesthouses, and hotels making up
most of the businesses.
Pax r si� r<c.�s,� =emus
V.bafnb counly Clerk 01
4:m.r ACC,:,. rr.CC..
Figure 6 — Major Employers in Monroe County.
Many of the business owners in the Florida Keys are local "Mom and Pop' businesses with a small number of
employees who have been in the same building for many years. There are some larger national chain stores
located in Key West and Marathon which have larger employee numbers.
Unemployment trends:
Monroe County has one of the lowest unemployment rates in the country and is well below the national average.
Historically the Florida Keys has had a lower than average unemployment rate compared to the rest of the country.
The area is predominately tourist driven with second and third home buyers which causes the transient employees
to come to the area during the tourist seasons.
Appraisers of the Keys Page 29 of 85 File# 13927
Client File # 00058381
F EMPLOYEES
Figure 7 - Employment Rates (Monroe County v Layton)
68300 Overseas Highway, Layton, FL 33001
Market Analysis:
Commercial Market:
The commercial real estate market has lagged the residential market with an increase in values after the recession
mainly due to the sell -off of the distressed properties. The hospitality units have driven the market due to the
continued growth in the local tourism industry which continuesto be the case today. Commercially there are no
single, large companieswho operate in the Florida Keys with most of the business owners being local companies or
"Mom and Pop" organizations with a small number of employees who typically purchase the smaller units and
occupy them themselves. Multi -unit properties are investor driven with a mix of local and regional investors. There
are no large institutional grade properties in the Keys outside of Key West and no speculative new build. Most of
the commercial properties are older structures that have not been removed and replaced. The lack of new build is
predominately due to the current oversupply in the market and the lack of available commercial land. Other
factors restricting development include the high build costs quoted by local contractors and the unique geography
of the area.
The typical commercial purchaser is looking for smaller individual units either to use as office space or retail space
with good exposure to the passing traffic on the Overseas Highway. Larger national and regional tenants or
purchases are looking for the larger stand -alone properties or units in the larger shopping plazas and are typically
drawn towards the higher populated centers of Key West, Marathon, and Key Largo. There are several larger
shopping plazas spread out over the Florida Keys typically with a single anchor tenant. Most commercial units are
on the Overseas Highway utilizing the good exposure and visibility to the passing traffic with the residential uses
reserved for the established neighborhoods on the secondary streets.
The following pages show the trend of the local property market based when searching the Florida Keys between
mile marker 5 and 107. The properties in the City of Key West sell for higher values due to their superior location
within the prime shopping and tourist areas of the Keys and would not appeal to the same purchasers. The guest
houses, motels /hotels, restaurants, and marinas are not typically purchased on a price per square foot basis and
can distort the figures. These are typically purchased by investors who have experience in running and operating
those types of business and again are not comparable.
The data used has been obtained from the local MLS system as well as searching public records and contains all
commercial properties.
G:)
Amfiwa, Said and Nm Uwfi npa, and Inrvan0ory
Mar RoMdi Kays MLS, Inc. an ItOUN17 22 1 :03 A PM
ff
AM
C
2
r
Figure 8 — Inventory and Sales volumes (source Flex MLS)
Appraisers of the Keys Page 30 of 85
File# 13927
Client File # 00058381
'...,: pA�+r3+d I-m, 1yy 0 - AeP I
68300 Overseas Highway, Layton, FL 33001
The graph above shows the inventory and sales volumes for the commercial market. This shows that there is
currently an oversupply of properties with the sales volumes stable, on a month by month basis, over the past 3
years. This is compared to the overall commercial market in Monroe County which shows a similar pattern.
The market has been driven by sales of mixed use properties and hospitality and lodging properties as investors
are looking to capitalize on the increase in tourist figures.
N umbee 131 Li i$p
M
FF
i
Figure 9 — Overall Market data (source Flex MLS)
Li htp Prins
P$3rs v®iunrc
P IN k ti k k w h' b' �N .'A
4 '; ��. � V . Z' Y �. � 16 i
���' M�YdO LJWESin Lima NNP4 �l.7r b1M0
i # R€W %SxL. 44 hrrw
The graphs above show the overall Monroe County market and shows that the sales volume in term of dollars has
remained stable over the past 12 months with the number of listing sold also stable. The following graph supports
the data taken from the local MLS system and is provide by a 3r party commercial research website. (Costar).
Appraisers of the Keys Page 31 of 85 File# 13927
Client File # 00058381
a 11 k
A Qrpllqn fli;U. in NGnt
Al
w k ti
.. At Y4c -dw Lbi Prv. W mo kcdlar Lr. -I-
Vold W U RnQ
• ° gal kW�y. �r + &� ra
Solo m OrUnS. LL: Prkc Rllida i..
68300 Overseas Highway, Layton, FL 33001
Sales VGlumes -MMate County - C a star
Sa14, s V c'kun)
II.
_r I
y]
Esi
pif=a
Figure 10 — Sales volumes in Monroe County in dollars (Source — CoStar)
There is still an oversupply of commercial units with median marketing time of less than 12 months with the sales
volumes having fluxuations based on seasonal variations.
1.2K I.F.
qni
d
65
7M. dues
4K. du+5
ld dadc
G
2
r
Figure 11 - Sale volumes commercial market — Monroe County
Rental market and occupancy rates:
The rental market is typically stronger in the more populated centers, such as Key West, Marathon and Key Largo.
Rents in the City of Key West are within the $20.00 -40.00 per square foot range for office space with much higher
rents found the closer to the courthouse and Historic Centers with retail space on Duval St closer to $100 per sq. ft.
From research of rents in the City of Marathon, they range from $14.00 to $26.00 psf with the higher figures
Appraisers of the Keys Page 32 of 85 File# 13927
Client File # 00058381
2212 - 1 1 °pry=; -n 2C.'.a e' 3°
soldnopm vs. un
dwFluMa. ' z'MIS, Inc. on11.tls84Tait10:04AM
68300 Overseas Highway, Layton, FL 33001
located in the larger plazas occupied by an anchor tenant. The rents in the Upper Keys are in the $15.00 to $25.00
per square foot basis with the higher rents once again around the more populated areas including the commercial
corridors in Islamorada, around mile marker 80 to 85 and in Key Largo around the 100 -mile marker. Commercial
units away from these centers typically are towards the lower end of the rental range.
There are some larger plazas both solely on the 1 11 floor with a few plazas being 2 stories. Units located on the 1st
floor typically rent for more than the units on the 2nd floor and has been confirmed by rents found in the local
market. This is also reflected in the occupancy rates with several units on the 2nd and 3rd floor reporting lower
occupancy rates and longer marketing times. There are several multi- tenant properties located in the Upper Keys
which have the higher rental figures due to their location in established plazas anchored by national tenants. The
rates are higher as these properties typically have a Common Area Maintenance (CAM) fees. These plazas are
showing higher occupancy rates and lower marketing times.
Most of these smaller units are owner occupied and mainly comprise of detached 1,500 — 2,500 sq. ft. properties
or smaller mixed use properties with a residential space above which is either rented out or occupied by the
owner.
Residential:
The residential market has increased quicker than the commercial market and has been driven by the second and
third home buyers. The homes in Monroe County vary in terms of style, condition, location, and views and
comprises of several custom -built neighborhoods with no tract housing. The homes vary from the older
manufactured homes located on dry lots to larger custom built, estate style homes on large open water lots. The
subject's immediate neighborhood comprises of a mixture of older manufactured homes, either on individual
platted lots or in established parks, older grade level single unit homes to newer PUD's with modular homes built
on stilts. There has been a trend of removing the older manufactured homes and replacing them with modular or
custom built stick homes. There has been an increase in the residential construction market with several new
homes and developments being constructed with many of these developments have been for market rate units.
Development in the Florida Keys is regulated by the county under the ROGO system. The following in an extract
taken from "A New Era in Growth Management: A Layman's Guide to Residential ROGO" published by Monroe
County. 6
"The process of receiving o building permit in Monroe County is o competitive process. ROGO establishes the rules
and procedures for that competition. This competition is o point based system that allows everyone applying for a
new residential or commercial building permit to compete against each other for the limited number of allocations
issued each year. The number of allocations available is determined through the adoption of on administrative rule
on the state level. The number of allocations is based on the progress Monroe County has mode toward achieving
state set goals such as o central wastewater system being available keys wide. The total number of available
allocations is split among the three sub -areas of Monroe County. The Upper Keys, Lower Keys and the Big Pine and
No Nome Key planning area. Each applicant competes against the other applicants located within the some sub -
oreo. There is one exception to this process, applicants for offordoble housing. Affordoble housing applicants
compete against oll applicants for affordable housing permits keys wide. Allocations ore awarded each quarter in
each sub -area with the exception of Big Pine Key and No Nome Key where allocations ore awarded annually."
The following graphs have been taken from the local MLS (Key West Association of Realtors, Inc) provided by
Trendgraphix products and show the overall residential market for Monroe County.
6 http:// www. floridakeyskeywestrealestate .com /pdf /laymansguideROG0.pdf (found August 14th, 2013)
Appraisers of the Keys Page 33 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Figure 12 - Monroe County residential market over past 4 years
The graph shows the overall residential market for Monroe County and shows that the market has increased from
2012 at a steady rate. Seasonal variations effect the residential marker with typically higher sales volumes over the
winter months when tourist figures and seasonal resident numbers increase. Overall the residential market has
improved over the past 4 years with a shortage of supply in the market, however has since stabilized and is
affected by the high list prices. Sale volumes over the winter months has been lower than average.
There have been sales of affordable housing units which are restricted by the maximum sales prices designated by
either Monroe County or the City of Key West. These units are selling a 100% of their maximum price. These units
are typically townhomes located in PUD or condominium developments which offer common areas amenities such
as pools, parking, landscaping and in some cases clubhouse with gyms etc.
There is a lack of affordable housing in the county which has been recently high - lighted by a number reports
commissioned by Monroe County. The higher cost of living reported in the Florida Keys and the large number of
lower paid service industry employees along with the large number of second and third home owners has driven
both the sales and rentals out of the range of these employees. The lack of available land, zoning and the "Not in
my back yard" groups have restricted new developments of affordable housing in the County. The City of
Marathon is offering a program that allows for the transfer of ROGO units from one site to another with the old
site and improvements being designated as affordable.
Hurricane Irma:
Hurricane Irma hit the Florida Keys on September 10, 2017. The Lower Keys from mile marker 5 through 35
sustained the most wind damage along with the City of Marathon, while the Upper Keys sustained the most water
damage. The storm did impact the entire county, (Monroe County) and there are damaged properties throughout
the entire county. Historically, sales volumes increase and the mean sales price decreases after a storm, which is
typically due to investors purchasing damaged homes, AS IS, to repair and flip. After Hurricane Wilma in October
2005, values did decline, this however was mainly due to the overall economy as the nationwide recession
followed less than 18 months after the storm. After Hurricane Georges in September 1998, values were not
negatively impacted. There was a short period of lower sale prices, again mainly due to the damaged homes being
sold off AS IS. There are no historic patterns from which to derive a conclusion as to any effect on marketability or
market values. As of the effective date there have been several pending and contingent sales that were listed prior
to the storm. Based on interviews with the local realtors, most of the pending sales on homes without major
damage are moving forward at contract prices, this would indicate a stable market. There have been sales of
commercial units in the Keys since the storm also supporting the market opinion.
Appraisers of the Keys Page 34 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
- ° <_" •V0°5AWA19)AV F
Interviews were undertaken with local realtors and brokers to further support the market trends discussed above.
From these interviews the participants confirmed that the typical commercial unit is a small detached unit or a unit
situated in a strip center with the typical purchaser being owner occupiers. They report that there are local and
regional investors in the market place, however, they are looking to purchase the larger properties containing
multiple units due to the potential income stream. There have been sales of hospitality units in the area by again
local or regional investors look to take advantage of the increase in tourist numbers.
There is still a large amount of retail and office space available in the City of Marathon and the competing
neighborhoods which will keep market value and market rents stable. Higher rents are typically found in the larger
plazas with large national retailers typically taking this space. There is demand for the smaller retail space from
local tenants. Due to the recent storm, contractors and government agencies that are involved in the clean -up are
leasing space for the next few years at market levels.
There have been several sales of commercial properties in Marathon over the past 12 — 24 months not comparable
to the subject property type as they are older commercial buildings with residential properties and typically sell for
a higher price per square foot than office space due to the residential elements.
S.W.O.T Analysis (Strengths, Weaknesses, Opportunities, and Threats):
Strengths /Opportunities:
The subject is a single- story, purpose built detached office building on the Overseas Highway. The subject has good
exposure to both the north and south bound lanes of the Overseas Highway.
There is good off - street parking to the front along with parking to the rear.
Weaknesses /Threats:
The subject has been damaged as a result of the recent storm and has damage noted previously. The cost to repair
the property may result in the subject not complying with the FEMA 50% regarding properties that have significant
damage and built in a flood zone. If the cost of the repairs is determined at more than 50% of the value of the
improvements, then the structure may have to be razed or brought up to code.
The subject is situated further away from the main commercial centers of Marathon and Islamorada.
The subject is an older building in an active flood zone and has high insurance costs.
Conclusion:
The overall economy of Monroe County has improved over the past 3 -4 years with tourism still accounting for the
primary source of funds generated for the local economy. From the figures provided by Smith Travel Research and
the Key West Chamber of Commerce, tourist figures have continued to increase over the past 3 years with the
outlook for the remainder of 2017 unknown due to the recent storm. The Florida Keys has embarked on a large
marketing campaign in the national media showing that the Florida Keys is open for business with the local Tourist
Development Council (TDC) has spent over $1 million on advertising. The hotels and motels have re- opened,
however are partly occupied by FEMA workers and displaced residents. Until more permanent lodgings can be
found the hotel rooms will be occupied by those people affected by the storm. This may affect the recovery of the
area in the short term. The peak season does not start until January and it is likely that most of the clean -up from
the storm will have been completed by the start of the peak season.
There have been sales of both residential and commercial properties since the storm with only the properties with
significant damage showing larger price reductions. Homes that were not damaged have not had price revisions.
The Florida Keys is a tourist driven economy with a second and third home buyer active in the market. The high
Appraisers of the Keys Page 35 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
season starts at the beginning of year and runs through April. These months typically have a higher sales volume as
compared to the summer months with September normally the quietest time.
The commercial market has slowed mainly due to the higher list prices of the active properties. Over the past 12
months the sales volumes have decreased from the previous year with only the investors purchasing the lodging
properties propping up the market. There smaller commercial properties are being purchased by owner occupiers.
There is an oversupply of commercial properties listed for sale with the marketing times over 6 months.
The rental market has remained stable and there have been several commercial spaces both office and retail that
have been leased over the past 12 months. As stated earlier office space is being leased by local agents to
government agencies and contractors involved in the clean -up of the Florida Keys. These units are leasing at full
asking rent for up to 2 years.
Appraisers of the Keys Page 36 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Location Map
Figure 13 - Subject Location and aerial map
Appraisers of the Keys Page 37 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Identification of the Subject.
Property Description - Site.
Gross Site Area:
68300 Overseas Highway: 12,500 sq. ft. — 0. 2869 acres.
Vacant Lot: 6,250 sq. ft. — 0.1434 acres.
TOTAL: 18,750 sq.ft. — 0.4304 acres.
Primary Road Frontage: Overseas Highway — approx.150ft. (total)
Secondary Road Frontage: None
Shape: The lots are rectangular in shape.
Contiguous lots: Yes
Visibility: Good. The subject is located on the main highway running though the
Florida Keys and is surrounded by both commercial and local
government uses.
Water Frontage: Yes — canal to rear with approx. 150 ft.
Topography: The subject has level topography at grade.
Zoning:
68300 Overseas Highway: C —Commercial (City of Layton)
Vacant Lot: C —Commercial (City of Layton)
Legal Description.
68300 Overseas Highway: LONG KEY ESTATES SECOND ADDITION PB4 -127 LONG KEY LOTS 28 &
29 BLK 3 OR613 -729 OR614 -590 OR614 -591 OR915 -276 OR1029 -1865
RE 38763 COMBINED FOR ASSESSING PURPOSES 4 -1 -92 OR1507 -1946
Vacant Lot: BK 3 LT 30 LONG KEY ESTATES SECOND ADDITION PB4 -127 LONG KEY
OR775 -1395 OR782 -1472 OR1053- 1428/JB OR1327- 1390(JB) OR1809-
2489 (J M H )
Parcel ID and Alt Key #:
68300 Overseas Highway: 00387620 - 000000 - Alt Key #1475742
Vacant Lot: 00387640 - 000000 — Alt Key #1475769
Utilities: Electricity: Florida Keys Electric Corp
Sewer: FKAA.
Water: FKAA
Gas — None (Gas is not public utility in Florida Keys)
Flood Zone: Flood Zone AE, which is classified as a flood hazard area.
FEMA Map Number: 12087C1179K
FEMA Map Date: 02/18/2005
E
Appraisers of the Keys Page 38 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Easements /Encumbrances: None noted. No survey has been provided.
Environmental Issues: Hazardous Waste: No information regarding the presence or absence
of hazardous waste on the subject property was provided. This
appraisal assumes the absence of any and all hazardous waste on the
subject property. If hazardous waste is found to be present on the
subject property, an adjustment to the valuation contained in this
report may be required.
Aerial and Plat.
I Aerial map — improvements I Aerial map — Vacant lot I
hIF
KIP
4 {4
0 ' .➢'yaw Stn ti..
Plat map — improvements I Aerial map —vacant lot
Figure 14 - Aerial and plat map — (source Monroe County Property Appraisers website)
Appraisers of the Keys Page 39 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Flood map.
11 W%T?%
V�nI!
E
a4alfi
Kinp, W YA-xx 1. . Tr:el
D: 1, Y)
r i k a::'Y o I Ac a a t e
In,
j -i 'A i.x tea a - %in-'I e
ma h o
-�-I .'W�I � � I IL "I I c. F 1 -�Fa, -,:V.' F L J.'-T
' IF
PI 1 nl�;—
,—N, I k 1 .5 i a,s V
Figure 15 — Flood Map (source — STDB)
Appraisers of the Keys Page 40 of 85 File# 13927
Client File # 00058381
STDB
68300 Overseas Highway, Layton, FL 33001
ProperW $ • 2!FN Improvements
The subject being appraised is a single story, detached mixed -use property with a small office space, storage area,
and a residential unit to the rear. At time of inspection the property was 100% owner occupied with no current
lease agreements.
The building is a single story, grade level, mixed -use property with both a pitched metal roof and flat roof with
rolled asphalt covering. The pitched roof structure is timber trusses with the flat rood believed to be timber joists
with timber roof deck. The roof is set over a mix of CBS and timber framed external walls with a mix of painted
stucco finish and timber siding. The windows are a mix of single hung vinyl, sliding windows, and older metal
awning type with some windows protected by metal Bahama style shutters.
Entrance doors are a mix of solid core to the rear and glass doors to the front commercial space. There are 2 up
and over garage doors leading to the storage areas. The structure is built on a concrete slab foundation with an
access ramp to the garages.
Internally, the subject is divided into office space, storage areas, and a residential apartment to the rear. The
ceilings are 8ft. in height with a mix of acoustic drop ceilings and painted dry -lined sections. The walls are painted
dry -lined finishes to the both the internal face of the external walls as well as to the internal partitions. The
partitions have been used to delignate the residential space. The flooring to the residential space is ceramic tile
while the office space has heavy duty vinyl tile. There is exposed concrete flooring to the storage spaces. The office
space has a restroom with toilet while the residential space has a full residential bathroom. The residential space
also has a full kitchen.
The property is climate controlled by a roof mounted central air conditioning units. There is a single electrical
meter and a single water meter. The subject is connected to the mains sewer and has all countywide utilities
available. The subject has no gas supply, and this is not a public utility in the area; Propane gas is available.
There is adequate off - street parking to the front of the property which can be accessed directly from the main
highway via the curb cuts with parking up to 5 cars.
Year Built:
The property was constructed in 1964 as per the Monroe County Property Appraisers property card.
Construction Details:
EXTERIOR:
Foundation:
Poured concrete pad foundations.
Roof Cover:
Metal v -crimp and rolled asphalt.
Roof Structure:
Timber trusses and joists with plywood.
Exterior Walls:
CBS and timber framed walls with painted stucco and timber siding.
Windows /doors:
Mix of single unit, sliding and older awning windows.
Glazed and solid core entrance doors. Metal up and over garage doors
Bahamian storm shutters.
INTERIOR:
Appraisers of the Keys Page 41 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Ceilings:
8ft. height with a mix of acoustic tile and painted dry lined finishes.
Internal Walls:
Painted dry lined walls to the internal face of the external walls and to the
internal partitions.
Floors:
Ceramic and vinyl the with exposed finished concrete to the storage areas.
Doors:
Solid core paneled doors.
OTHER:
50.00%
Kitchen:
Full residential kitchen
Restrooms:
Restroom to office space with toilet.
Full residential bathroom.
HVAC:
Central air conditioning — roof mounted
Electrical / Fire protection:
3 -phase electrical system.
1 electrical meter.
Fluorescent and incandescent lighting.
Economic Age and Life:
Actual Age of improvements
53
Estimate of effective age
30
Total economic life
60
Estimate of remaining life of improvements:
30
Accrued Physical Incurable Depreciation
50.00%
Conclusion:
The subject build quality is average and has had a new roof installed in 2007. The interior of the subject is in
average to fair condition and has suffered significant damage from the recent storm and the damages are detailed
below:
1) The subject has suffered flood damage which has resulted in significant areas of the drywall to be
removed (up to 3ft) as well as localized impact damage to the drywall.
2) Because of the flooding the base cabinets and drywall to the residential kitchen have been removed.
3) The wood dock to the canal has been damaged and in some places collapsed due to the storm.
4) Minor damage to the fascia and soffits to the roof line.
5) Missing sink to restroom.
Appraisers of the Keys Page 42 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
The appraiser has estimated a cost to cure the deferred maintenance and this has been estimated at $75,000. The
client should be aware of the FEMA 50% rule regarding the repair of damages to properties within a flood zone
which were caused by a natural disaster. The cost of the repairs cannot exceed 50% of the market value of the
structure (no land value included) otherwise the improvements must be removed or brought up to code
regarding building in a flood zone. The client should contact the local FEMA coordinator for more information.
The appraiser's estimate of $75,000 to cure includes the replacement of the kitchen, drywall, paint, replacement
of the missing soffit and fascia's, and the repair of the dock. The appraiser is not a licensed contractor or cost
estimator and the cost used have been based on industry price books, discussions with local contractors, and
from market data on properties damage by the recent storm. It is the appraiser's recommendation that a licensed
contractor provide a cost to cure the damages and these should be forwarded to the appraiser. Any changes in
assumptions could affect value conclusions.
Appraisers of the Keys Page 43 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Floor Plan:
Figure 16 — Improvements
Appraisers of the Keys Page 44 of 85 File# 13927
Client File # 00058381
T37:._crG1 nXA -zr. be-2 I. Me:k, FL. I M0 2 Q'Axt
68300 Overseas Highway, Layton, FL 33001
i >a »# - AN' § 40 Ft >
County Appraised Value
Land
$162,500
$162,500
$162,500
30046
$25,000
$25,000
$25,000
Improvements
$182,173
$183,347
$123,766
Overseas Hwy,
$1,528
$1,694
$1,569
Tax Market Value
$344,673
$345,847
$286,266
$26,528
$26,694
$26,569
Assessment Ratio
100%
100%
100%
100%
100%
100%
Assessed Value
$344,673
$345,847
$286,266
$26,528
$26,694
$26,569
Taxable Value
$344,673
$345,847
$286,266
1974
$26,528
$26,694
$26,569
Tax Rate
12.1149
11.9791
11.4383
2017
12.1149
11.9791
11.4383
Tax Rate Per
$1,000.0
$1,000.0
$1,000.0
$1,000.0
$1,000.0
$1,000.0
Real Estate Taxes
$4,176.00
$4,143.00
$3,274.00
$288,610
$321.00
$320.00
$304.00
Special Assessments
$498.32
$498.32
$498.32
$288,610
$0.00
$0.00
$0.00
Total Taxes
$4,674.00
$4,641.26
$3,772.72
1764
$321.38
$319.77
$303.90
Payment Status
Paid
Paid
Current
$118.50
Paid
Paid
Current
Amount Due
$0.00
$0.00
$3,772.72
$0.00
$0.00
$303.90
Table 7 - Real Estate taxes - 2017 assessment year
Note: 1 Total Assessed Value taken from Monroe County Property Appraisers website and records. Other taxes are for the
City of Key West waste water. (Non -Ad Valorem taxes).
Tax History:
Many purchasers and investors are aware that real estate may be reassessed upon the completion of construction,
substantial remodeling or renovation or a market sale. The subject appears to be assessed in line with similar
properties in the area and should not be appealed. The assessed value has remained stable over the past 3 years.
The current Monroe County Property Appraisers website does not show the breakdown of the assessed value in
terms of land and improvements and they have been combined as shown above. Many purchasers and investors
are aware that real estate may be reassessed upon the completion of construction, substantial remodeling or
renovation or a market sale. Based on the appraiser's analysis the majority of the sales in the area have not been
re- assessed to the sales price.
68300
22814
30046
101621
Address
Overseas Hwy,
Overseas
Overseas
Overseas
201 20th St,
Layton
Highway,
Highway, Big
Highway, Key
Marathon
Cudjoe Key
Pine Key
Largo
Year Built
1964
1976
1974
1959
1986
Tax Year
2017
2017
2017
2017
2017
Assessed Value
$312,835
$217,426
$265,012
$216,002
$288,610
$216,002
$288,610
$246,763
Market VaIue
$312,835
$217,426
$265,012
$332,058
$288,610
$217,426
$332,058
$275,777
GBA
2640
1820
1764
1408
2320
1408
2320
1828
Assessed vaI ue per GBA
$118.50
$119.46
$150.23
$153.41
$124.40
$119.46
$153.41
$136.88
Sale Date
-
6/16/2017
1/27/2016
5/20/2015
10/14/2016
Sale Price
-
$390,000
$510,000
$599,000
$700,000
$390,000
$700,000
$549,750
Old Assessed value
-
$202,164
$265,012
$187,949
$289,668
$187,949
$289,668
$236,198
New Assessed Value
-
$217,426
$265,012
$216,002
$288,610
$216,002
$288,610
$246,763
Percentage Change
-
7.02%
0.00%
12.99%
-0.37%
0%
13%
5%
Percentage of Sale
1 -
55.75%
51.96%
36.06%
41.23%
36%
56%
46%
Table 8 - Comparable tax records
Appraisers of the Keys
Page 45
of 85
File#
13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Zoning
The City of Layton has zoned the lots C - Commercial. The information has been taken from the City of Layton
Planning department. Below is an extract from the City of Layton's Code of Ordinance.
• ARTICLE II. -ZONING DISTRICTS ESTABLISHED; ZONING AND LAND USE MAP
• Sec. 126 -26. - Zoning district specified.
(a) Declaration of zoning districts. In order to regulate and limit the height and size of buildings, to regulate and
limit the intensity of use of land area, to regulate and determine the area of open space within and around
surrounding buildings, to classify, regulate and redistrict the location of commercial uses and the locations of
buildings designed for specified residential uses, the city hereby is divided into five districts known as:
(1) "SF" single - family district.
(2) "MF" multifamily district.
(3) "C" commercial district.
(4) "CD" conservation district.
(5) "PD" public use district.
(b) "SF" single family district. The purpose of the "SF" single - family category is to provide for single - family
detached residential development along with recreational, governmental, and educational uses allowable as a
special exception if it can be demonstrated that they are not disruptive to a residential environment. The
maximum density for this category is 8.7 units per acre.
(c) "W" multifamily district. The purpose of the "MF" multifamily category is to provide for a housing mix in the
city and to provide for buffer areas between single - family areas and other uses and facilities. Other uses which
can occur in this category are recreational, governmental, and educational uses as a special exception if it can
be demonstrated that they are not disruptive to a residential environment. The maximum density for the
multifamily category is 12.0 units per acre.
(d) "C" commercial district. The purpose of the "C" commercial category is to provide commercial activities that will
serve the needs of local residents and tourists, as well as uses that will enhance the tourist industry in the city
and the county. It is also the intent of the city to encourage commercial uses that reflect the historic,
aesthetic, and natural attributes of the Florida Keys. The maximum floor area ratio (FAR) for this category is
0.60 square feet. Planned developments in accordance with the city's land development regulations shall be
allowed and encouraged in the commercial district.
(e) "CD" conservation district. The "CD" conservation category is intended to recognize, and discourage
development in, areas containing highly environmentally sensitive areas that should be preserved. As such,
development is discouraged in this area in order to protect fisheries and vegetative communities. However, a
density of one unit per five acres may be transferred to developable areas of the city, including onsite
transfers to non - jurisdictional areas north of Zane Grey Creek, except for single - family areas. The maximum
density of any non - jurisdictional onsite areas designated as conservation to which densities are
transferred /clustered is four units per acre, provided such areas do not require fill within jurisdictional
wetlands for access. Any development on non - jurisdictional areas shall also provide a minimum setback of 20
feet from Zane Grey Creek and wetlands, and this area shall be revegetated with transitional plant species.
Height shall be limited to two habitable stories and a minimum of 50 percent of the site shall be maintained as
open space. Further, it is the intent of the city to establish an interlocal agreement with the county, or some
other appropriate instrument or method, to allow the transfer of these units to developable areas of the
county. Further, all lands from which units are transferred shall be deeded or transferred in some manner in
perpetuity to the city or other government upon approval by the city council.
Appraisers of the Keys Page 46 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
(f) VD" public use district. The "PD" public use category is intended to accommodate public, governmental,
institutional, or recreation uses.
(LDR 2002, § 13.01)
Commercial District:
The "C" commercial district is intended to provide retail commercial activities and services that will serve the
needs of local residents and tourists, as well as encourage uses that will enhance the tourist industry in the city
and the county. It is also the intent of the city to encourage those uses in the commercial "C" district that will
enhance the aesthetic and historical character of the city.
Permitted Uses: Business Services
Accessory Uses: Uses customarily incidental to permitted uses
Special Exemptions: Restaurant, Sale of alcoholic beverages in conjunction with a permitted or special
exception use, Tourist attractions, not including fairs, carnivals and other temporary
amusements, Tourist lodging facilities.
Food and convenience stores, marinas, Marine research facilities, Boat rentals, service
and sales, Automobile service stations, planned commercial development, planned unit
development: (FAR greater than 60% with maximum impervious surface ratio of 40%.),
Mixed use developments, Shopping centers and Fishing, boating and other types of
lodges and clubs associated with the natural attributes of the Florida Keys.
Sec. 126 -119. - Schedule of site regulations.
Minimum lot size:
5,000 sq.ft.
Maximum density:
For tourist lodging facilities, 16 units per net acre.
Minimum dwelling size:
200 sq.ft.
Minimum lot width:
50 feet
Maximum lot coverage: 60% impervious surface ratio
Set Backs: Front = 10 feet
Side = 5 feet
Rear = 15 feet
Canals = 20 feet
Max Building height: 30 feet
Appraisers of the Keys Page 47 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
City C?F I,pw a, Flocida
Curnprchero:Jyc Plain
subject
Figure 17— Zoning map
Appraisers of the Keys Page 48 of 85 File# 13927
Client File # 00058381
FIGORE 3-4
C17Y OF YT N, FLORIDA
FUTURE LAM.", USE MA:)
2020
68300 Overseas Highway, Layton, FL 33001
Highest and Best Use
Highest and best use may be defined as:
"The reasonably probable and legal use of vacant land or improved property, which is physically possible,
appropriately supported, financially feasible, and that results in the highest value."
1. Legally Permissible: What uses are permitted by zoning and other legal restrictions?
2. Physically Possible: To what use is the site physically adaptable?
3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the
site?
4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the
highest present worth)?
Highest and Best Use of the Site as Vacant:
Legally Permissible:
The subject site is in the C — Mixed Use commercial zoning district, as designated by the City of Layton planning
department. The section above details the current legally permissible uses. There are no known easements that
could adversely affect the development of marketability of the subjects' parcel. The Commercial (C) zoning
accommodates commercial uses that serve the needs of both residents and the tourist industry. Permitted uses
under right include business services as of right and other business uses including restaurants, lodging,
convenience stores, marinas, boat rentals, and mixed -use developments. Single family and multi - family homes are
not permitted under right. Due to the location on the main highway and that the neighboring lots are all zoned
commercial it is unlikely that a zoning change could occur.
Physically Possible:
The subject's sites comprise of 2 contiguous parcels of land one containing 12,500 sq.ft. and the other 6,250 sq.ft,
both rectangular in shape. The larger parcel has 100ft. on to the Overseas Highway and a depth of 125ft while the
smaller lot has a 50ft frontage on to the Overseas Highway and a depth of 125ft. The Commercial (C) zone has a
minimum lot size of 5,000 sq. ft. for commercial properties with a Floor Area Ratio (FAR) restriction of 0.60. There
is a maximum build height of 30ft. and 2 stories is permitted. All county utilities service the site.
Due to the lack of new commercial development the appraiser has determined that the site has adequate square
footage to support all types of commercial development. The subject is an infill lot and has canal frontage. Density
restrictions would limit the physically possible uses to business services, small retail, and convenience stores.
There is inadequate water frontage for marinas.
Financially Feasible:
The subject has good exposure to the passing traffic as it is on the main highway. The neighboring sites are
commercial with the residential uses in established neighborhoods behind. There is limited demand for new office
and retail in the area with no new construction. There have been resales and leases in the market but none in the
5 miles surrounding the subject. There is good demand for mixed -use properties that include a residential element
either for an owner occupier or in the terms of multiple units an investor. The most financially feasible use would
be to hold the site for development of an mixed -use commercial space including a residential space until demand
for the commercial market returns.
Appraisers of the Keys Page 49 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Maximally Productive:
A determination must be made as to which of the feasible uses is the Highest and Best use of the parcel if vacant.
The Highest and Best Use is the use that produces the highest or greatest return to the land. As stated in the
Physically Possible section the Highest and Best use would be to combine the 2 parcels to increase the lot size to
allow for a larger building and open storage. The subject's lots are bounded by mainly commercial properties and
benefits from good exposure to the passing traffic on the Overseas Highway. There is demand for hotel uses,
however due to the small site size and lack of available hotel licenses makes this use not productive. This
therefore, results in the Highest and Best use to develop the site to maximum density with a mixed uses
commercial development with a residential element. Development should be held until the commercial market
improves with the most likely developer being an owner occupier building the unit to their own specifications.
Use Mixed -use commercial
Timing Future
Market Participants
- Users: Owner occupier.
- Most Probable Buyers Owner occupier.
Highest and Best Use as Improved:
Legally Permissible:
The subject site is in the C — Mixed Use commercial zoning district, as designated by the City of Layton planning
department. The section above details the current legally permissible uses. There are no known easements that
could adversely affect the development of marketability of the subjects' parcel. The Commercial (C) zoning
accommodates commercial uses that serve the needs of both residents and the tourist industry. Permitted uses
under right include business services as of right and other business uses including restaurants, lodging,
convenience stores, marinas, boat rentals, and mixed -use developments. Single family and multi - family homes are
not permitted under right. The subject's current use is legally permissible and is the Highest and Best Use.
Physically Possible:
The subject was constructed in 1964. As per zoning, the subject's improvements are legal non - conforming and
does not comply with current FAR ratios. The property could be rebuilt if unintentionally destroyed to the current
building size and footprint. The subject's current use is the Highest and Best physically possible use.
Financially Feasible:
The subject is a mixed -use commercial building. The most financially feasible use would be its current use as it
does bring the highest return to the land. The cost to convert to any other use would not bring any higher rents or
returns to the land.
Maximally Productive:
The final step is to analyze the site "as improved" The existing improvements are compared to the ideal
improvements.
Appraisers of the Keys Page 50 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
The current use is legal conforming and the highest and best use of the subject's land as improved would be it
current use as a mixed -use commercial property as it does contribute value to the site. None of the comparable
sales have been purchased for any other uses, have not been converted or demolished.
Use Mixed -use commercial
Timing Now
Market Participants
- Users: Owner occupier.
- Most Probable Buyers Owner occupier.
Appraisers of the Keys Page 51 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Valuation Methodology
Three basic approaches may be used to arrive at an estimate of market value. They are:
1. The Cost Approach
2. The Income Approach
3. The Sales Comparison Approach
Cost Approach
The Cost Approach is summarized as follows:
Cost New
- Depreciation
+ Land Value
= Value
Income Approach
The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate
through a capitalization and or a discounting process.
Sales Comparison Approach
The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable
sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales
form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived.
Final Reconciliation
The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied
for a single estimate of market value. Different properties require different means of analysis and lend themselves
to one approach over the others.
Analysis Applied
A Cost Approach was not applied and is not considered for this report due to the difficulty in determining
depreciation and the lack of commercial land sales. This is not a reliable indicator of value and is not typically relied
upon by purchasers in the Florida Keys.
A Sales Comparison analysis was considered and developed as there have been sales of similar mixed -use
commercial buildings in the last 3 years and is typically the driving factor when purchasing these smaller units.
Most of the buyers have been owner occupiers.
An Income Approach was considered but has not been developed. The typical purchaser would be an owner
occupier and is not investor driven as the property is not a multi- tenant building. There have been several leases in
the Middle Keys for both office /retail properties and small residential units.
Appraisers of the Keys Page 52 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Cost Approach
The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no
more for a property than the cost to construct a similar and competitive property, assuming no undue delay in the
process. The Cost Approach tends to set the upper limit of value before depreciation is considered. The applied
process is as follows:
Estimate the land value per its Highest and Best Use by using the Sales Comparison Approach; the process
is as follows:
o Comparable sales, contracts for sale and current offerings are researched and documented
o Each comparable is analyzed and adjusted to equate with the subject property.
The value indication of each comparable is analyzed and the data reconciled for a land value
indication.
• Estimate the replacement cost of the building and site improvements.
• Estimate the physical, functional, and /or external depreciation accrued to the improvements.
• Sum the depreciated value of the improvements with the value of the land for an indication of value.
The cost approach was not developed due to the difficulty in determining depreciation and the lack of commercial
land sales. The cost approach is not typically relied upon by purchasers in the Florida Keys.
Appraisers of the Keys Page 53 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property
than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is
based on the principles of supply and demand, balance, substitution, and externalities. The following steps
describe the applied process of the Sales Comparison Approach.
• The market in which the subject property competes is investigated; comparable sales, contracts for sale
and current offerings are reviewed.
• The most pertinent data is further analyzed and the quality of the transaction is determined.
• The most meaningful unit of value for the subject property is determined.
• Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property
• The value indication of each comparable sale is analyzed and the data reconciled for a final indication of
value via the Sales Comparison Approach.
Comparables:
Ideal comparable sales are sometimes unavailable due to the unique attributes of the subject property and the
local Florida Keys market. The subject property is a detached mixed -use commercial property currently occupied
by the owner and being used as an office with storage. The Highest and Best use of the site is to combine the 2
contiguous parcels of land with the improvements being a mixed -use property with residential element.
The search parameters were for all mixed -use properties in the Florida Keys which have sold in the last 2 years.
One sale of a non - mixed -use property has been used as it has up and over garage doors and was used for storage
with ancillary office space. This has been added to show that there is demand for units with storage. Street retail
units have been used and are considered comparable to the subject based on rental analysis. Theses space are
used interchangeable by owners.
The appraiser has attempted to identify the most comparable sales considering the most likely buyer and demand
profile for the subject. In this regard, we have researched the following comparable sales for this analysis. These
are documented on the following pages followed by a location map and analysis grid. All sales have been
researched through numerous sources, inspected, and verified by a party to the transaction.
Appraisers of the Keys Page 54 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Sales Summary
Address
City
Subject
68300 Overseas
Highway
Layton
Sale #I
22814 Overseas
Highway
Cudjoe Key
Sale # 2
30046 Overseas
Hwy
Big Pine Key
Sale # 3
101621
Overseas Hwy
Key Largo
Sale #4
201 20th St
Marathon
Sale # 5
81167 Overseas
Highway
Upper
Matecumbe Key
Sale # 6
98310 Overseas
Highway
Key Largo
Sale # 7
81611 Old
Highway
Upper
Matecumbe Key
Sale Price
N/A
$390,000
$510,000
$599,000
$700,000
$600,000
$415,000
$775,000
Date of Sale
N/A
6/16/2017
1/29/2016
512012015
10/12/2016
11/29/2017
8/3/2017
8/29/2016
Year Constructed
1964
1976
1974
1959
1986
1959
1985
1977
Actual Age at Sale
41
43
58
31
58
32
40
Analysis Price
N/A
$390,000
$510,000
$599,000
$700,000
$600,000
$415,000
$775,000
SF of GBA
2,640
1,820
1,768
1,408
2,320
2,150
2,293
2,160
Price /SF of GBA
N/A
$214.29
$288.46
$425.43
$301.72
$279.07
$180.99
$358.80
Units
1
1
2
1
2
1
1
2
Price /Unit
N/A
$390,000
$255,000
$599,000
$350,000
$600,000
$415,000
$387,500
Mixed Use,
Mixed Use,
Mixed Use,
Marine Repair,
Mixed Use,
Mixed Use,
Mixed Use,
Current Use
Retail,
Retail,
Street Retail
Office,
Service
Office, Multi-
Office, Multi-
Retail,
Residential
Residential
Industrial
Family
Family
Residential
Percent Office
62%
38%
64%
100%
52%
75%
36%
52%
Land Size sq.ft.
18,750
8,084
16,875
22,000
21,184
25,210
13,885
9,975
Site Size (Acres)
0.43
0.19
0.39
0.51
0.49
0.58
0.32
0.23
Land to Building Ratio
7.10
4.44
9.54
15.62
9.13
11.73
6.06
4.62
Floor Area Ratio
0.14
0.23
0.10
0.06
0.11
0.09
0.17
0.22
Table 9 - Sales Summary
Comparable Sales map.
Appraisers of the Keys Page 55 of 85 File# 13927
Client File # 00058381
Figure 18- Comparable sales map
68300 Overseas Highway, Layton, FL 33001
Improved Sale No. 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction
Name
Lower Keys Electrical
Date of Sale
06 -16 -2017
Address
22814 Overseas Highway
Adjusted Sale
$390,000
Price
City
Cudioe Key
Price Per SF
$557.14
State
Florida
Sale Status
Closed
Seller
Douglas Bell
Sale Conditions
Arm's Length
Buyer
Lower Keys Electric Inc
Rights Conveyed
Fee Simple
Recording Date
Days on Market
0
Book /Page
2860 -689
Confirmed With
Buyer /Seller /contract
Legal Description
BK 1 LT 16 CUDJOE OCEAN SHORES
CUDJOE KEY PB5 -107 OR564- 756/59 OR700 -480 OR783-
630/33 OR808- 382D/C OR781 -1504 OR845 -2157 OR845 -2158 OR846 -2158 OR898 -927C
OR911- 1521/25 OR923 -2040 OR1188 -668 OR1633 -2206 OR2528-
380/40OF/J OR2559-
1880/81
Site
Land Sq. ft.
8,084
Topography
Level
Frontage
Overseas Highway
Zoning
SC
Shape
Nearly rectangular
In Flood Plain?
Yes
Utilities
Electric and water
Environ. Issues?
None
Improvements and Financial Data
GBA
1,820
PGI
NA
Rentable Area
700
EGI
NA
No. of Units
1
Expense Ratio
NA
Year Built
1976
NOI
NA
Building Condition
Average
OAR
NA
C ......................................................................................................................................................................................................................................................................................
...............................
Remarks ....................................................................................................................................................................................................................................................................................
..............................�
Mixed use commercial unit with small office space to the front and a 2 bed 1 bathroom unit to the rear. Located on
the main highway with additional storage garages below. Conventional financing, purchased by the tenant and not
listed in the local MLS system.
Appraisers of the Keys Page 56 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Mixed use property located on Big Pine Key with a small (1128 sf) of commercial space and an efficiency unit (640
sf) to the rear. Property presented in average condition with good exposure to the passing traffic on the Overseas
Hwy. Purchased with cash as an arm's length transaction. Arm's length transaction
Appraisers of the Keys Page 57 of 85 File# 13927
Client File # 00058381
Improved Sale No. 2
Transaction
Name
30046 Overseas Hwy
Date of Sale
01 -29 -2016
Address
30046 Overseas Hwy
Adjusted Sale
$510,000
Price
City
Big Pine Key
Price Per SF
$288.46
State
Florida
Sale Status
Closed
Seller
Humphrey Holdings LLC
Sale Conditions
Arm's Length
Buyer
Octopuss Gardens of Key Inc
Rights Conveyed
Fee Simple
Recording Date
02 -01 -2016
Days on Market
24
Book /Page
2780 -558
Confirmed With
Claude Gardner
Legal Description
26 66 29 BIG PINE KEY PT S1/2 OF W1/2 OF NW1 /4 OR403 -897 OR672- 519/520 OR674-
212/13 OR756 -1596 OR823 -2384 OR829- 552/53C OR933 -1677 OR1355- 1527/28/TR OR2360-
246/47 OR2780- 558/59
Site
Land Sq. ft.
16,875
Topography
Level
Frontage
Highway
Zoning
SC
Shape
Rectangular
In Flood Plain?
No
Utilities
Water, sewer
Environ. Issues?
None
Improvements and Financial Data
GBA
1,768
PGI
NA
Rentable Area
1,768
EGI
NA
No. of Units
2
Expense Ratio
NA
Year Built
1974
NOI
NA
Building Condition
Average
OAR
NA
C ......................................................................................................................................................................................................................................................................................
...............................
Remarks ...................................................................................................................................................................................................................................................................................
..............................�
Mixed use property located on Big Pine Key with a small (1128 sf) of commercial space and an efficiency unit (640
sf) to the rear. Property presented in average condition with good exposure to the passing traffic on the Overseas
Hwy. Purchased with cash as an arm's length transaction. Arm's length transaction
Appraisers of the Keys Page 57 of 85 File# 13927
Client File # 00058381
Improved Sale No. 2
68300 Overseas Highway, Layton, FL 33001
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction
Name
101621 Overseas Hwy
Date of Sale
05 -20 -2015
Address
101621 Overseas Hwy
Adjusted Sale
$599,000
Price
City
Key Largo
Price Per SF
$425.43
State
Florida
Sale Status
Closed
Seller
Ellis Land Investments
Sale Conditions
Arm's Length
Buyer
R1101 Investments
Rights Conveyed
Fee Simple
Recording Date
Days on Market
8
Book /Page
2742 -1386
Confirmed With
Jim Signor
Legal Description
BK 10 LOTS 14, 15, 22 AND
23 LARGO GARDENS P134 -38 KEY
LARGO OR268 -319 OR359 -339
OR368 -896 OR388 -293 OR389 -962 OR443- 226/27 OR646 -547 OR754 -1830 OR767 -217
OR811 -1826 OR902 -1725 OR1043- 1059AFF OR1475- 2264R/S OR1679 -1308 OR1936 -1071
OR2742 -1386
Site
Land Sq. ft.
22,000
Topography
Level
Frontage
Overseas Hwy
Zoning
SC
Shape
Rectangular
In Flood Plain?
No
Utilities
All county utilities
Environ. Issues?
No
Improvements and Financial Data
GBA
1,408
PGI
NA
Rentable Area
1,408
EGI
NA
No. of Units
1
Expense Ratio
NA
Year Built
1959
NOI
NA
Building Condition
Average
OAR
NA
C ......................................................................................................................................................................................................................................................................................
...............................
Remarks ....................................................................................................................................................................................................................................................................................
..............................�
Single level commercial building located on the Overseas Hwy at mile marker 101. Average condition with newer
roof and exterior stucco. Has good exposure to the passing traffic and access to both the Overseas Hwy and a rear
road. Comprises of 4 lots. Property was purchased by the neighbor as an arm's length transaction. Purchased with
cash. Listed for 8 days. Originally listed on 02/17/2015 for $599,000 and contingent on 02/25/2015. No price
revisions
Appraisers of the Keys Page 58 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction
Name
NA
Date of Sale
10 -12 -2016
Address
201 20th St
Adjusted Sale
$700,000
Price
City
Marathon
Price Per SF
$301.72
State
Florida
Sale Status
Closed
Seller
D & F Seafood
Sale Conditions
Arms Length
Buyer
W& M US LLC
Rights Conveyed
Fee Simple
Recording Date
10 -26 -2016
Days on Market
69
Book /Page
2822 -1401
Confirmed With
Clara Mayette - 305 - 395 -2095
Legal Description
PT OF LTS 7 8 & 9 BLK 1 PARRISH SUB MARATHON SUB SUB OF GOV LT 2 SEC 9 TWP 66S R32E
PB2 -18 A /K /A FISHERMENS POINTE LOT 1 (.25AC) & 1/25% IN COMMON ELEMENTS OR853-
288/289 OR929- 2483/2484 OR936 -1611 OR936- 1612/1613 OR1032- 1293/94/PR OR1479-
1468/69QC OR 1479- 1472/73QC OR1666- 387/44OREST OR2028 -1211 OR2033- 527/29
Site
Land Sq. ft.
21,184
Topography
Level
Frontage
20th St
Zoning
MU -M
Shape
Rectangular
In Flood Plain?
Yes
Utilities
All county utilities
Environ. Issues?
None
Improvements and Financial Data
GBA
2,320
PGI
NA
Rentable Area
2,320
EGI
NA
No. of Units
2
Expense Ratio
NA
Year Built
1986
NOI
NA
Building Condition
Average
OAR
NA
C ......................................................................................................................................................................................................................................................................................
............................... Remarks ....................................................................................................................................................................................................................................................................................
..............................�
2 adjoining lots with improvements including a fish house and apartment. There was a separate vacant lot and 2
boat slips at the end of the street. Both lots were purchased together. Originally listed in the local MLS system (MLS
571022) for $590,000 on 05/24/2016 and contingent on 08/01/2016. The vacant lot to the south was listed
separately as MLS #571021 for $350,000. Both lots were sold together.
Appraisers of the Keys Page 59 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction
Name
NA
Date of Sale
11 -30 -2017
Address
81167 Overseas Highway
Adjusted Sale
$600,000
Rentable Area
2,150
Price
$34,500
City
Upper Matecumbe Key
Price Per SF
$279.07
State
Florida
Sale Status
Closed
Seller
Suzanne Miller
Sale Conditions
Arm's length
Buyer
Unknown
Rights Conveyed
Fee Simple
Recording Date
Not recorded
Days on Market
566
Book /Page
Not recorded
Confirmed With
Tom McDermott (Realtor)
Legal Description
32 63 37 ISLAND OF UPPER MATECUMBE PB1 -41 PT LOT 4
G47 -154 G41 -395 G41 -395 OR117-
511/512 OR783- 802/803 OR935 -78/79 OR935 -83AFF OR978- 1933/1934 OR987 -2180
OR1099- 1287/1288 OR2402- 2040/42 OR2402- 2043/45 OR2402-
2046/48 OR2402- 2055/57
Site
Land Sq. ft. 25,210 Topography Level
Frontage Overseas Highway Zoning HC
Shape Irregular In Flood Plain? No
Utilities All county utilities Environ. Issues? No
Remarks
Mixed use commercial building in the heart of Islamorada with 3 office space, 1 bed 1 bath apartment, and 5
storage units. Presented in average condition with some updates to the apartments. Income figures provided by
the realtor. Expense information estimated. Sold as an arm's length transaction via the local MLS system. Property
was market for 566 days due to a tenant agreement. Mixed use commercial unit with 3 office space, 1 bed 1 bath
apartment, and 5 storage shed to the rear. Apartment has been updated with a newer kitchen. Motivated seller.
Appraisers of the Keys Page 60 of 85 File# 13927
Client File # 00058381
Improvements and Financial Data
GBA
2,150
PGI
$34,500
Rentable Area
2,150
EGI
$34,500
No. of Units
1
Expense Ratio
20.29%
Year Built
1959
NOI
$27,500
Building Condition
Average
OAR
4.58%
EGIM
17.390
Remarks
Mixed use commercial building in the heart of Islamorada with 3 office space, 1 bed 1 bath apartment, and 5
storage units. Presented in average condition with some updates to the apartments. Income figures provided by
the realtor. Expense information estimated. Sold as an arm's length transaction via the local MLS system. Property
was market for 566 days due to a tenant agreement. Mixed use commercial unit with 3 office space, 1 bed 1 bath
apartment, and 5 storage shed to the rear. Apartment has been updated with a newer kitchen. Motivated seller.
Appraisers of the Keys Page 60 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction
Name
NA
Date of Sale
08 -03 -2017
Address
98310 Overseas Highway
Adjusted Sale
$415,000
Price
City
Key Largo
Price Per SF
$283.47
State
Florida
Sale Status
Closed
Seller
TD Bank NA
Sale Conditions
Foreclosure
Buyer
Wire Nuts Electric of South
Rights Conveyed
Fee Simple
Florida
Recording Date
08 -08 -2017
Days on Market
35
Book /Page
2868 -111
Confirmed With
Deb Bennett (Realtor)
Legal Description
BK LT 1 CARIBBEAN HEIGHTS
PB3 -129 KEY LARGO OR556 -210
OR787 -452 OR1146 -525
OR1146 -526 OR1412 -483 OR1631
-1715 OR2223 -1769
Site
Land Sq. ft.
13,885
Topography
Level
Frontage
Overseas Highway
Zoning
IS
Shape
Irregular
In Flood Plain?
No
Utilities
All county utilities
Environ. Issues?
None
Improvements and Financial Data
GBA
2,293
PGI
NA
Rentable Area
1,464
EGI
NA
No. of Units
1
Expense Ratio
NA
Year Built
1985
NOI
NA
Building Condition
Average
OAR
Na
C ......................................................................................................................................................................................................................................................................................
...............................
Remarks ....................................................................................................................................................................................................................................................................................
..............................�
Mixed use property with a small office space to the 1st floor and a 3bed 2bath apartment to the upper floors.
Purchased by a local contractor who intends to occupy the building. Sold as a foreclosure and purchased with cash
Listed in the local MLS system (576011) as a foreclosure. Originally listed on 06/20/2017 for $484,900 and
contingent on 07/25/2017 after price revisions to $459,900. Sold as an REO with a motivated bank seller.
Appraisers of the Keys Page 61 of 85 File# 13927
Client File # 00058381
Improved Sale No. 6
68300 Overseas Highway, Layton, FL 33001
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction
Name
NA
Date of Sale
08 -29 -2016
Address
81611 Old Highway
Adjusted Sale
$775,000
Price
City
Upper Matecumbe Key
Price Per SF
$694.44
State
Florida
Sale Status
Closed
Seller
Gallery at Morada Bay
Sale Conditions
Arm's length
Buyer
Craig & Cheryl Mcbay
Rights Conveyed
Fee Simple
Recording Date
09 -07 -2016
Days on Market
146
Book /Page
2814 -1432
Confirmed With
Pierre Bellion (Realtor)
Legal Description
BK 2 LT 3 MATECUMBE BEACH PB 1 -133 UPPER MATECUMBE
G55- 541 -542 OR457 -507Q
OR784- 395 -407 OR786- 286/298 PROB #79- 62 -CP -23 OR719
-154 OR1020 -62 OR1292 -1153C
OR1292 -1154 OR1670- 1784T/C OR1954 -1517 OR2814- 1432/33
Site
Land Sq. ft.
9,975
Topography
Level
Frontage
Old Highway
Zoning
VC
Shape
Rectangular
In Flood Plain?
No
Utilities
All county utilities
Environ. Issues?
None
Improvements and Financial Data
GBA
2,160
PGI
NA
Rentable Area
1,116
EGI
NA
No. of Units
2
Expense Ratio
NA
Year Built
1977
NOI
NA
Building Condition
Good
OAR
NA
C ......................................................................................................................................................................................................................................................................................
...............................
Remarks ....................................................................................................................................................................................................................................................................................
..............................�
2 story, mixed use building in the heart of Islamorada. Large retail space to the 1st floor and a 2bed lbath
apartment to the 2nd floor. Property had been updated over the years and was in good condition. Sold as an arm's
length transaction listed in the local MLS system (569650). Originally listed on 01/25/2016 for $890,000 and
contingent on 06/19/2016. No price revisions.
Appraisers of the Keys Page 62 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
�E .. Tr>—(M
The above sales have been analyzed and compared with the subject property. We have considered
adjustments in the areas of:
• Property Rights Sold
• Financing
• Conditions of Sale
• Market Trends
• Location
• Physical Characteristics
Comparable Sale Adjustments
The subject is a single story, detached, mixed -use commercial building with a residential element. The subject is it
the City of Layton in the Middle Keys and is further from the main commercial areas of Marathon and Islamorada.
The subject is on the main road running through the Florida Keys and has good exposure to the passing traffic and
is neighbored by commercial uses; residential uses are in established neighborhood.
The sales used are the most recent and similar when searching the Lower, Middle and Upper Keys. As discussed in
the market analysis section of the report there have been very few commercial sales in Monroe County that are
directly comparable to the subject. The sold properties in the neighborhood vary in terms of condition, GLA, and
type with the lodging and large retail spaces not comparable to the subject. Adjustments have been made based
on market analysis and paired sales and have been summarized below:
Appraisers of the Keys Page 63 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Sale Adjustments
Adjusted Price Indications
Minimum Adjusted Price /SF
$180.99
$200.00 /SF
MaximumAdjusted Price /SF
$230.77
$528,000
Average Adjusted Price /SF
Address
Subject
68300 Overseas
Sale # I
22814 Overseas
Sale # 2
30046 Overseas
Sale # 3
101621
Sale # 4
20120th St
Sale # 5
81167 Overseas
Sale # 6
98310 Overseas
Sale # 7
816110
Highway
9 Y
H
9 Y
H
Y
Overseas H
Y
H
9 Y
H
9 Y
H
9 Y
City
Layton
Cudjoe Key
Big Pine Key
Key Largo
Marathon
pe
Key Largo
Matecpmbe Key
Matecu Ke
SF of GBA
2,640
1,820
1,768
1,408
2,320
2,150
2,293
2,160
Units
1
1
2
1
2
1
1
2
Year Constructed
1964
1976
1974
1959
1986
1959
1985
1977
Date of Sale
N/A
6/16/2017
1/29/2016
512012015
10/12/2016
11/29/2017
8/3/2017
8/29/2016
Average with
Building Condition
Deferred
Average
Average
Average
Average
Average
Average
Good
Maintenance
Percent Office
61.50%
38%
64%
100%
52%
75%
36%
52%
Land to Building Ratio
7.10
4.44
9.54
15.62
9.13
11.73
6.06
4.62
Land sq ft
18,750
8,084
16,875
22,000
21,184
25,210
13,885
9,975
Parcel Type
Interior
Interior
Interior
Interior
Corner
Interior
Corner
Corner
Construction Quality
Average
Average
Average
Average
Good
Average
Average
Average
Construction Class
D -Wood Frame
C - Masonry
C - Masonry
C - Masonry
C - Masonry
C - Masonry
D -Wood Frame
C - Masonry
Density(Units /Acre)
465.00%
1078%
516%
198%
411%
691%
627%
873%
NOI
$27,500
Overall Rate
N/A
N/A
N/A
N/A
N/A
3.79%
N/A
N/A
EGIM
N/A
N/A
N/A
N/A
N/A
21.01
N/A
N/A
Sale Price
N/A
$390,000
$510,000
$599,000
$700,000
$725,000
$415,000
$775,000
Gross Buildin SF
2
1
1
1408
2
2
2
2160
Unadjusted Price /SF
$214.29
$288.46
$425.43
$301.72
$337.21
$180.99
$358.80
Time Adjusted Price /SF
N/A
$214.29
$288.46
$425.43
$301.72
$320.35
$180.99
$358.80
Adjusted Price /SF
N/A
$203.57
$230.77
$212.71
$211.20
$192.21
$180.99
$215.28
Property Rights
0.00%
0.00%
0.00%
0.00%
-5.00%
0.00%
0.00%
Property Rights
$0.00
$0.00
$0.00
$0.00
- $16.86
$0.00
$0.00
Terms /Financing
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Terms /Financing
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Conditions of Sale
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Conditions of Sale
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Time/Market Conditions
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Time/Market Conditions
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Time Adjusted Price/SF
$214.29
$288.46
$425.43
$301.72
$320.35
$180.99
$358.80
Location
0.00%
0.00%
0.00%
0.00%
-5.00%
0.00%
-5.00%
Location
$0.00
$0.00
$0.00
$0.00
- $16.02
$0.00
- $17.94
View
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
View
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Gross Building Area
- 20.00%
- 20.00%
- 30.00%
0.00%
0.00%
0.00%
0.00%
Gross Building Area
- $42.86
- $57.69
- $127.63
$0.00
$0.00
$0.00
$0.00
Site /Land to Building Ratio
15.00%
0.00%
- 25.00%
0.00%
- 35.00%
0.00%
15.00%
Site /Land to Building Ratio
$32.14
$0.00
- $106.36
$0.00
- $112.12
$0.00
$53.82
Building Condition
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
- 50.00%
Building Condition
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
- $179.40
Residential Use
0.00%
0.00%
5.00%
0.00%
0.00%
0.00%
0.00%
Residential Use
$0.00
$0.00
$21.27
$0.00
$0.00
$0.00
$0.00
Other
0.00%
0.00%
0.00%
- 30.00%
0.00%
0.00%
0.00%
Other
$0.00
$0.00
$0.00
- $90.52
$0.00
$0.00
$0.00
Total Adjustments
Net % Adjustments
-5.0%
-20.0%
-50.0%
-30.0%
-43.0%
0.0%
-40.0%
Net $ Adjustments
- $10.72
- $57.69
- $212.72
- $90.52
- $145.00
$0.00
- $143.52
Total % Adjustments
35.0%
20.0%
60.0%
30.0%
43.0%
0.0%
70.0%
Total$ Adjustments
$75.00
$57.69
$255.26
$90.52
$145.00
$0.00
$251.16
Adjusted Price /SF
$203.57
$230.77
$212.71
$211.20
$192.21
$180.99
$215.28
Adjusted Price Indications
Minimum Adjusted Price /SF
$180.99
$200.00 /SF
MaximumAdjusted Price /SF
$230.77
$528,000
Average Adjusted Price /SF
$206.68
$530,000
Median Adjusted Price/ SF
$211.20
Standard Deviation /SF
$15.07
Table 10 - Sale adjustment table
Comparable Sale Adjustments
Time:
From the market analysis shown earlier in the report the market has stabilized and all of the sales have closed
since the beginning of 2015. No time adjustments are warranted based on the market analysis section of the
report.
Appraisers of the Keys Page 64 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Location /view:
The subject is in the City of Layton, which is a small city to the north of Marathon, and is on the main road running
through the Florida Keys and has good exposure to the passing traffic with other similar commercial uses
surrounding the subject. There have been no sales of directly comparable sales in Layton, however, there has been
a recent sale of a larger mixed -use property sold that has been used to determine any adjustments. Sales 5 and 7
require location adjustments as they are in the heart of the main commercial centers of the Village of Islamorada
considered superior to the subjects' location. The other sales are all located further away from the main
commercial centers and have similar population centers and no adjustments are warranted. Although Sale 4 is
within the City of Marathon it is set off the main highway.
All of the sales except for Sale 4 are on the Overseas Highway and have a similar view and exposure to the passing
traffic as the subject.
Gross Building Area:
The subject comprises of 2,640 square feet of usable building space and is divided in to a mix of office, storage, and
residential space. Sales 4, 5, 6, and 7 all have similar GBA to the subject and no adjustments are warranted. Sales 1,
2, and 3 are smaller properties and a negative adjustment is warranted. The adjustment has been based on
diminishing returns with typically smaller units selling for a higher price per square foot than larger units and vice
versa.
Land to Building Ratio:
The Highest and best use of the property is to combine the 2 contiguous lots into one parcel. As previously
discussed there is limited demand for small commercial lots and the vacant lot to the north could be used with the
improvements for additional parking or storage space. The land to building ratio used has been determined
including the 2 lots. Sales 2, 4, and 6 have similar land to building ratio and no adjustment is warranted. Sales 1 and
7 are inferior in land to building ratio requiring a positive adjustment with Sales 3 and 5 having a larger land to
building ratio.
The land to building ratio is a driving factor in the market as there is a lack of vacant commercial land that can be
developed or used as storage. Purchasers, especially those in the construction, auto - repair, or marine repair
industries, are looking for improvements with surplus land.
Condition:
The subjects overall condition is average with significant deferred maintenance as previously discussed and is dealt
with later in the report. The damage to the unit is curable functional obsolescence. Sales 1, 2, 3, 4, 5, and 6 are all
in average condition while Sale 7 has been fully renovated superior to the subject.
Type:
The subject is a detached, mixed -use commercial building with a single residential unit to the rear. All of the sales
except Sale 3 have a residential element and all have a single unit. There have been other sales with multiple
residential units that have not been used as these are investor driven due to the potential income streams. The 7
sales used were all purchased by an owner occupier who either uses the residential space for themselves or for
employees. Sale 3 has been added as it has a similar use as a storage space with office.
Other:
The subject is a canal front lot with limited dockage to the rear. There have been very few sales of commercial
units like the subject on canals. There is no market data to support adjustments for the benefit or detriment to
having the canal. This is not a driving factor in the purchase of commercial properties unless there is significant
waterfrontage or dockage. Sale 4 has 2 assigned commercial boat slips in an adjoining marina and was these were
the driving factor behind the purchase requiring an adjustment.
Appraisers of the Keys Page 65 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Reconciliation:
Sale 1 is a recent sale of a commercial property in the Lower Keys. This is a slightly smaller property with smaller
residential unit to the rear. This sold outside of the local MLS system to the prior tenant as an arm's length
transaction. This had covered parking and storage to the 1" floor. This is given emphasis as it is a mixed -use
property that would appeal to an owner occupier. This has been added as it is a recent sale having closed in the
last 6 months and is in a similar location away from the main commercial centers.
Sale 2 is a mixed -use commercial building with a small residential space to the rear with office /retail space to the
front. This is an older sale having closed in early 2016 and has a similar exposure and location to the subject. This
was sold as an arm's length transaction via the local MLS system. This is given some emphasis as it is on a similar
lot with a similar land to building ratio.
Sale 3 is a commercial building with office space and no residential element located on the Overseas Highway in
the Upper Keys. This has been added as it has similar storage elements but is a smaller unit but on a large lot. This
is given less emphasis and is also one of the older sales having closed in the middle of 2015.
Sale 4 is a mixed -use commercial building with boat dockage in an adjoining marina. The property is in Marathon,
the next city to the south, and comprises of a storage area, office, and residential use. This property is set back off
the main highway and has superior boating as it has 2 slips in a commercial marina with deep boating depth. This is
given some emphasis as it is a similar mixed -use property with a similar GBA and land to building ratio. This sold
just over 12 months ago.
Sale 5 is the most recent sale having closed in between the effective date and the report date. The property is in
the heart of the main commercial center of Islamorada superior to the subject. This is a mixed -use property with 3
offices, a residential unit, and storage areas to the rear. This is in average condition and has a similar GBA as the
subject. This has a slightly superior land to building ratio. This is given the most emphasis as it is the most recent
sale and further supports the lack of time adjustments and shows that the market has not been adversely affected
by the recent storm. The subject did sell below the typical sale to list ratio due to motivation of the seller for
personal reasons.
Sale 6 is a recent sale of a mixed -use property on the Overseas Highway which comprises of a small office unit to
the 1" floor and a larger residential unit to the upper floors. This is set on the Overseas Highway and has good
exposure to the passing traffic. This was sold as a foreclosure and sets the bottom of the market. This is given less
emphasis as it was a foreclosure.
Sale 7 is a sale of a mixed -use commercial unit with a retail space to the 1 11 floor and a large residential unit to the
2 " floor. This is close to Sale 5 and is within the heart of the main commercial centers of Islamorada superior to
the subject. This unit has been updated to both the residential and commercial spaces and is superior to the
subject. This sold just over 12 months ago and is given some emphasis.
The comparable properties used form a range of values of unadjusted values from $180.99 to $425.43 with an
average of $292.68, median of $288.46 and a standard deviation of $76.44. The wide range of values is due to the
differences in location, land to building ratio, and GBA. After adjustments, based on paired sales and market data,
detailed above, the adjusted range of values is tightened to $167.45 to $230.77 per square foot; with the average
of $203.14, a median of $211.20 and a standard deviation of $20.11.
Appraisers of the Keys Page 66 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Minimum Adjusted Price/SF $180.99
$200.00 /SF
MaximumAdjusted Price /SF $230.77
$528,000
Average Adjusted Price/SF $206.68
$530,000
Median Adjusted Price/ SF $211.20
Standard Deviation/ SF $15.07
Subject Site 2,640 Gross Building Ai
Indicated Unit Value $200.00 per SF
Indicated Value $528,000
Rounded $530,000
Table 11— Sales Comparison Approach Value Indicators.
The 7 closed sales are the most similar and recent sales of similar commercial buildings in the Lower, Middle and
Upper Keys with Sales 1, 5, and 6 being the most recent sales. Most weight and emphasis is given to Sales 1 and 5
as they are the most recent sale having closed in the last 6 months and both have office, storage, and residential
units and would appeal to the same purchasers. Some weight and emphasis is given to Sales 2 and 7 as they are
similar mixed -use commercial unit but sold over 12 months ago. Less weight and emphasis is given to the other
sales as they are not as similar to the subject as the other sales. Sale 3 has been added as it is a similar commercial
building with storage and office but no residential units. Sale 4 has been added as it has water access but is
superior to the subject as it has access to 2 commercial boat slips with deep dockage. Sale 6 is given less emphasis
although it is a recent sale as is was a foreclosure sale.
The sales used are the most recent and similar as compared to the subject and have been confirmed by a party to
the transaction. The sales used require net and gross adjustments mainly due to condition, location, and GBA
adjustments. The data is reliable, and the sales used are the most recent and similar sales when searching the
Lower, Middle and Upper Keys.
After adjustments that have been based on paired sale and market and statistical analysis most emphasis is given
to Sales 1 and 5. It is the appraiser's opinion that the subject would fall within the middle of the range of these
values supporting an opinion of value of $200.00 per square foot. The subject's opinion of value is towards the
lower end of the unadjusted values on a price per square foot basis mainly due to its location being further away
from the main commercial areas.
Therefore, taking the $200.00 per square foot and multiplying this by the Gross Building Area (GBA) of 2,640 sq.
ft., indicates a market value of $528,000 or $530,000 rounded.
The subject has deferred maintenance which is considered curable. The damage was as a result of the recent
storm and included both flood and wind damage. From discussions with local contractors the cost to repair the
damage is estimated at $75,000 and this has been deducted from the figure above to calculate the AS IS market
value.
$530,000 minus $75,000 = $455,000
Therefore, the AS IS of market value via the Sales Comparison Approach is:
AS IS Market Value as of November 21st, 2017 is:
$455,000
(Four Hundred and Fifty -Five Thousand Dollars)
Appraisers of the Keys Page 67 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Income Approach to Value
Income Approach Capitalization Premise
Capitalization in Real Estate terminology is the process by which an income projection is converted into an
indication of value. The element that transforms the income projection is a rate that reflects the return necessary
to attract investment capital. The process of Income Capitalization generally reflects the principle of anticipation.
Thought of as the present worth of an anticipated future benefit, anticipation follows a pattern similar to investor
thinking and motivation.
Income producing real estate is typically purchased as an investment, and from an investor's point of view, earning
power is the critical element affecting property value. One investment premise holds that the higher the earnings,
the higher the value, provided the amount of risk remains constant. An investor who purchases income producing
real estate is essentially trading present dollars for the expectation of receiving future dollars. The Income
Capitalization Approach to value consists of methods, techniques, and mathematical procedures that an appraiser
uses to analyze a property's capacity to generate benefits and convert these benefits into an indication of value.
The capitalization process must reflect the possibility that actual future income, expenses, and property may differ
from those originally anticipated by an investor on the date of the appraisal. The more uncertainty there is
concerning the future levels of these variables, the riskier the investment. Investors expect to earn a higher rate of
return on investments that are riskier. This should be reflected in the support for the discount rate and
capitalization rate obtained from market research.
Direct Capitalization and Yield Capitalization are two generally accepted capitalization methods. Direct
Capitalization is widely used when properties are already operating on a stabilized basis and there is an ample
supply of comparable sales with similar risk levels, incomes, expenses, physical and location characteristics, and
future expectations. This methodology may be less useful for properties going through an initial lease -up or when
income and expenses are expected to change in an irregular pattern over time. Comparables with similar future
expectations may not be available in these cases and one of the Yield Capitalization techniques may be more
appropriate. The advantages of Direct Capitalization are that it is simple to use, easy to explain, often expresses
market thinking, and provides strong market evidence of value when adequate sales are available.
Direct Capitalization is distinct from Yield Capitalization in that the former does not directly consider the individual
cash flows beyond the first year. Although Yield Capitalization explicitly calculates year -by -year effects of potential
changing income patterns, changes on the original investment's value, and other considerations, Direct
Capitalization processes a single year's income into an indication of value. Either Direct Capitalization or Yield
Capitalization may correctly produce a supportable indication of value when based on relevant market information
derived from comparable properties, which should have similar income - expense ratios, land value to building
value ratios, risk characteristics, and future expectations of income and value changes over a typical holding
period. A choice of capitalization method does not produce a different indication of value under this circumstance.
The Direct Capitalization technique projects the net operation income attributable to the real estate and
associated personally, which is the remaining income after subtracting vacancy losses and operating expenses
from the potential gross income. Next, a capitalization rate is selected, which is used to capitalize the net
operating income by the rate selected.
The potential gross income is the total income attributable to real property at full occupancy before operating
expenses and vacancy and collection losses are deducted. The effective gross income is the anticipated income
from all operations of the real property, adjusted for vacancy and collection losses. This adjustment covers losses
incurred due to unoccupied space, turnover, and non - payment of rent by tenants. The net operating income is the
actual or anticipated net income remaining after all operating expenses are deducted from the effective gross
income. Net operating income is expressed as an annual amount. In certain income applications, a single year's
net operating income may represent a steady stream of fixed income that is expected to continue for a number of
Appraisers of the Keys Page 68 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
years. Operating expenses are the periodic expenditures necessary to maintain the real property and continued
production of the effective gross income, assuming prudent and competent management. Operating expense
statements that conform to this definition are used for appraisal purposes. A reconstructed operating statement
may differ from statements prepared for an owner because they often include non -cash expenses such as
depreciation or interest expenses.
Income rates express the relationship between one year's income and the corresponding capital value of the
property. An overall capitalization rate is an income rate for a total property that reflects the relationship between
a single year's net operating income into an indication of overall property value or price. It is used to convert net
operating income into an indication of overall property value. An overall capitalization rate is not a rate of return
on capital or a full measure of investment performance. It may be more than, less than, or equal to the expected
yield on the capital invested, depending on the projected income or value changes.
Whether estimating an income or yield rate, the conversion of income into property should represent the annual
rate of return the market indicates is necessary to attract investment capital. This rate is influenced by factors
such as:
• The degree of risk
• Market expectations
• Prospective rates of return for alternative investments
• Rates of return earned by comparable properties in the past
• Availability of debt financing
• Prevailing tax law
Generally, the higher overall capitalization rates are associated with less desirable properties and the lower overall
capitalization rates with more attractive properties. The suitability of a particular rate of return, which is the full
recovery of the amount invested and a reward for the assumed risk, cannot be proven with market evidence, but
the rate estimated should be consistent with the data available. Rate estimation requires appraisal judgment and
knowledge of prevailing market attitudes and economic indicators. Typically, investors expect to receive a return
on capital that represents the time value of money, with an appropriate adjustment for perceived risk. The
minimum rate of return for invested capital is sometimes referred to as the safe rate, or the rate on insured
savings accounts or securities. Theoretically, the difference between the total rate of return on capital and the
safe rate may be considered a premium to compensate the investor for risk.
(Source: The Appraisal of Real Estate- Thirteenth Edition, The Appraisal Institute, 2008)
The subject is a small office building with the typical buyer and occupier being an owner occupier. These single unit
properties are not investor driven. The typical investor is purchasing properties with multiple units to maximize the
income stream. There is inadequate data to determine capitalization rates for these owner - occupied units and this
approach has not been developed. It would not give a reliable indication of value and is not utilized by the owner
occupier.
Appraisers of the Keys Page 69 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
The previous sections of the report considered the three approaches to value. The analysis of all pertinent facts
and data considered to influence the value of the subject property has led to the following value opinions:
The nature of reconciliation depends on the appraisal problem specific to the subject property, the approaches
that have been used, and the reliability and adequacy of the data used. The inapplicability of the Cost Approach to
value constitutes the Sales Analysis Approach and the Income Approach to value as the most reliable indications of
value for the subject property.
The Sales Analysis Approach to value in this appraisal has been developed and is reliable. There have been several
sales of mixed -use commercial buildings in the last 3 years that are comparable to the subject. The sales that have
occurred are the most similar in terms of Gross Building Area and condition. The Sales Analysis Approach is
typically a good indicator of value as it takes account the relationship between a buyer and seller and is typically
the main approach to value relied upon by owner occupiers and is given the most emphasis.
The Income Approach has not been developed as this is not a reliable indicator of value when appraising these
smaller buildings. The typical buyer would be an owner occupier who is not looking for a return on income. The
property is set up for a single occupier and has no significant common areas. There have been several recent leases
of commercial and residential units in the market to show that there is demand, however these units have been in
multi- tenant /unit properties or in the larger plazas. This approach was therefore not developed as these unit do
not appeal to investors.
The Cost Approach is not reliable due to the difficulty in estimating depreciation. Although there have been
commercial land sales in the neighborhood over the past 36 months, most purchasers base their decisions on
economic factors, including projected net income and return on investment. These older properties, as they grow
older and deteriorate, making quantifying the loss in value difficult therefore this approach is less reliable.
Value by all Approaches
To estimate the market value of the subject property, the data pertaining to the property has been analyzed by the
Cost, Sales Comparison, and Income Approaches. The value estimates indicated by the 3 approaches are as
follows:
Cost Approach Not Developed
Sales Comparison Approach $455,000
Income Capitalization Approach Not Developed
Value Conclusion:
The typical purchaser would be a local owner occupier with the Sales Comparison Approach given most emphasis
as it is a good indicator of value and is the most reliable approach to value. The Income Approach has not been
developed as the typical purchaser would not be an investor due to the lack of potential income streams. An
owner occupier would not consider the Income Approach to value when making purchasing decisions. This is not a
reliable indicator of value. Most weight and emphasis is therefore given to the Sales Comparison Approach when
to determine an estimate of value. Therefore, in recognition of the purpose of this appraisal, and the type of
property appraised our value opinions are as follows:
Current AS IS Market Value of the Fee Simple Interest, as of November 21st, 2017 is:
$455,000
(Four Hundred and Fifty -Five Thousand Dollars)
Appraisers of the Keys Page 70 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Opinion of Marketing Time
Reasonable marketing time is: an opinion of the amount of time it might take to sell a real or personal property
interest at the concluded market value level during the period immediately after the effective date of an appraisal.
Marketing time differs from exposure time, which is always presumed to precede the effective date of an
appraisal.
Source: Uniform Standards of Professional Appraisal Practice (USPAP), 2016 -2017
6 - 9 months is an estimated marketing time.
6 - 9 months is an estimated exposure time.
The subject has been listed for over 18 months mainly due to the high list price.
Appraisers of the Keys Page 71 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
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Title V of the Gramm - Leach - Bliley Act (GLBA) generally prohibits any financial institution, directly or through its
affiliates, from sharing any nonpublic personal information about you with a nonaffiliated party unless the
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collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the
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Appraisers of the Keys, Inc.
We may collect nonpublic personal information about you from the following sources:
Information, such as your social security number, that we receive from you, your lender, or others involved in your
transaction, such as the real estate agent, on applications or other forms;
Information about your transactions with us, our affiliates, or others, such as your loan account balances, payment
history, parties to transactions, transaction expenses and your home's appraised value;
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Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal
information will be collected about you.
We may disclose any of the above information that we collect about our customers or former customers to our
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We also may disclose this information about our customers or former customers to nonaffiliated companies that
perform marketing services on our behalf or with whom we have joint marketing agreements. Entities with whom
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Inc. uses to protect this information and to use the information for lawful purposes.
WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE
THAT IS NOT SPECIFICALLY PERMITTED BY LAW.
We restrict access to nonpublic personal information about you to those employees who need to know that
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Appraisers of the Keys Page 72 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
• We certify that, to the best of our knowledge and belief:
• The statements of fact contained in this report are true and correct.
• 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.
• We have no present or prospective future interest in the property that is the subject of this report, and
have no personal interest with respect to the parties involved.
• We have no bias with respect to the property that is the subject of this report, or to the parties involved
with this assignment.
• Our engagement in this assignment was not contingent upon developing or reporting predetermined
results.
• 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
estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related
to the intended use of this appraisal.
• Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).
• No one provided significant real property appraisal assistance to the person(s) signing this certification.
• We certify sufficient competence to appraise this property through education and experience, in addition
to the internal resources of the appraisal firm.
• Kevin Talbott SRA: I have performed no prior services, 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.
• Nicholas Farrar, MRICS: I have performed no prior services, 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.
• The appraiser certifies and agrees that this appraisal report was prepared in accordance with the
requirements of Title XI of the Financial Institutions, Reform, Recovery, and Enforcement Act (FIRREA) of
1989, as amended (12 U.S.C. 3331 et seq.), and any applicable implementing regulations in effect at the
time the appraiser signs the appraisal certification.
• 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."
• "As of the date of this report, I Kevin Talbott have completed the continuing education program for
Designated members of the Appraisal Institute."
Appraisers of the Keys Page 73 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
• As of the date of this report, I Nicholas Farrar have completed the Standards and Ethics Education
Requirements for Candidates of the Appraisal Institute.
• Kevin Talbott, SRA, Cert Gen RZ2139 inspected the property and reviewed the report.
• Nicholas Farrar, MRICS, CertGen, RZ3742 inspected the exterior of the property, inspected the
comparable properties from the exterior, collected data and narrated the report.
#s
Nicholas Farrar, MRICS
CertGen RZ3742
Appraisers of the Keys Page 74 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
ADDENDUM
Appraisers of the Keys Page 75 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Appraisers of the Keys Page 76 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Engagement letter / Purchase Order:
IVIONROrf COUNTY PURCHASE ORDER NO.
BOARD OF COUNTY COMMISSIONERS
110f1 Simunfun Sfi L S uite 2-2 13 PT..GF NO. I
Key 'A(95r,, Fl 3U40 P COPY
SAL.'-: TAX EXEM:� NO: 8G-20'3 52940 -7
OPDER DA 7E - 3 1 ; 0 - ?: I -, I BU ER: 7.n.rTV SIMMTT AG � -O-: t C 5246 I R=Q- D. I
7E-MG I= ', :j DAY. DES: .
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C-0 kPT, RRPOR7 7�7 65300 OVRr,.:N-R 9W 2 , 0 CC 21 0 f
ZIA1
17 COST=4TER ACCOUNT FFCJ-=C7 PROJECTACC7 r,?.qOJN PAGE TLf $ 2. 4y C - j0
.1= ::1 A!Y: - C 2. - TOTAL $ 2. 40 C' -- Hoj
I 'PAL I'A.W LN I
FIN.AL PAYMENT
INVOICE NO.
PAYMENT
PAYMENTAPPROVAL
Appraisers of the Keys Page 77 of 85
INVOICEPAIOUN
P JrCl 1ASING AG :KT
File# 13927
Client File # 00058381
•
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17 COST=4TER ACCOUNT FFCJ-=C7 PROJECTACC7 r,?.qOJN PAGE TLf $ 2. 4y C - j0
.1= ::1 A!Y: - C 2. - TOTAL $ 2. 40 C' -- Hoj
I 'PAL I'A.W LN I
FIN.AL PAYMENT
INVOICE NO.
PAYMENT
PAYMENTAPPROVAL
Appraisers of the Keys Page 77 of 85
INVOICEPAIOUN
P JrCl 1ASING AG :KT
File# 13927
Client File # 00058381
•
•
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68300 Overseas Highway, Layton, FL 33001
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Appraisers of the Keys
Page 78 of 85
File# 13927
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Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
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Appraisers of the Keys Page 80 of 85 File# 13927
Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
Glossary:
This glossary contains the definitions of common words and phrases, used throughout the appraisal industry, as
applied within this document. Please refer to the publications listed in the Works Cited section below for more
information.
Works Cited:
• Appraisal Institute. The Appraisal of Real Estate. 13th ed. Chicago: Appraisal Institute, 2008. Print.
• Appraisal Institute. The Dictionary of Real Estate Appraisal. 5th ed. 2010. Print.
Band of Investment
A technique in which the capitalization rates
attributable to components of a capital investment
are weighted and combined to derive a weighted -
average rate attributable to the total investment.
(Dictionary, 5th Edition)
Common Area
1. The total area within a property that is not
designed for sale or rental but is available for
common use by all owners, tenants, or their
invitees, e.g., parking and its appurtenances,
malls, sidewalks, landscaped areas, recreation
areas, public toilets, truck and service facilities.
2. In a shopping center, the walkways and areas
onto which the stores face and which conduct
the flow of customer traffic. (ICSC) (Dictionary,
5th Edition)
Common Area Maintenance (CAM)
1. The expense of operating and maintaining
common areas; may or may not include
management charges and usually does not
include capital expenditures on tenant
improvements or other improvements to the
property.
• CAM can be a line -item expense for a group
of items that can include maintenance of the
parking lot and landscaped areas and
sometimes the exterior walls of the
buildings.
• CAM can refer to all operating expenses.
• CAM can refer to the reimbursement by the
tenant to the landlord for all expenses
reimbursable under the lease. Sometimes
reimbursements have what is called an
administrative
marketing fee, can be a substitute for or an
addition to a management fee.
2. The amount of money charged to tenants for
their shares of maintaining a center's common
area. The charge that a tenant pays for shared
services and facilities such as electricity, security,
and maintenance of parking lots. The area
maintained in common by all tenants, such as
parking lots and common passages. The area is
often defined in the lease and may or may not
include all physical area to be paid for by all
tenants. Items charged to common area
maintenance may include cleaning services,
parking lot sweeping and maintenances, snow
removal, security, and upkeep. (ICSC) (Dictionary,
5th Edition)
Debt Coverage Ratio (DCR)
The ratio of net operating income to annual debt
service (DCR = NOI /Im), which measures the relative
ability of a property to meet its debt service out of net
operating income; also called debt service coverage
ratio (DSCR). A larger DCR indicates a greater ability
for a property to withstand a downturn in revenue,
providing an improved safety margin for a lender.
(Dictionary, 5th Edition)
Discount Rate
A yield rate used to convert future payments or
receipts into present value; usually considered to be
a synonym for yield rate. (Dictionary, 5th Edition)
Effective Age
The age of property that is based on the amount of
observed deterioration and obsolescence it has
sustained, which may be different from its
chronological age. (Dictionary, 5th Edition)
load. An example would be a 15% addition to
total operating expenses, which are then
prorated among tenants. The administrative
load, also called an administrative and
Effective Date
1. The date on which the analyses, opinion, and
advice in an appraisal, review, or consulting
service apply.
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2. In a lease document, the date upon which the
lease goes into effect. (Dictionary, 5th Edition)
Exposure Time
1. The time a property remains on the market.
2. The estimated length of time the property
interest being appraised would have been
offered on the market prior to the hypothetical
consummation of a sale at market value on the
effective date of the appraisal; a retrospective
estimate based on an analysis of past events
assuming a competitive and open market.
(Dictionary, 5th Edition)
Gross Building Area (GBA)
Total floor area of a building, excluding unenclosed
areas, measured from the exterior of the walls of the
above -grade area. This includes mezzanines and
basements if and when typically included in the
region. (Dictionary, 5th Edition)
Gross Leasable Area (GLA)
Total floor area designed for the occupancy and
exclusive use of tenants, including basements and
mezzanines; measured from the center of joint
partitioning to the outside wall surfaces. (Dictionary,
5th Edition)
External Obsolescence
An element of depreciation; a diminution in value
caused by negative externalities and generally
incurable on the part of the owner, landlord, tenant.
(Dictionary, 5th Edition)
Extraordinary Assumption
An assumption, directly related to a specific
assignment, which, if found to be false, could alter the
appraiser's opinions or conclusions. Extraordinary
assumptions presume as fact otherwise uncertain
information about physical, legal, or economic
characteristics of the subject property; or about
conditions external to the property such as market
conditions or trends; or about the integrity of data
used in an analysis. (USPAP, 2010 -2011 ed.)
(Dictionary, 5th Edition)
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.
(Dictionary, 5th Edition)
Functional Obsolescence
The impairment of functional capacity of a property
according to market tastes and standards.
(Dictionary, 5th Edition)
Functional Utility
The ability of a property or building to be useful and
o perform the function for which it is intended
according to current market tastes and standards; the
efficiency of a building's use in terms of architectural
style, design and layout, traffic patterns, and the size
and type of rooms. (The Appraisal of Real Estate, 13th
Edition)
Highest & Best Use
The reasonably probable and legal use of vacant land
or an improved property that is physically possible,
appropriately supported, financially feasible, and that
results in the highest value. The four criteria the
highest and best use must meet are legal
permissibility, physical possibility, financial feasibility,
and maximum productivity. Alternatively, the
probable use of land or improved property— specific
with respect to the user and timing of the use —that
is adequately supported and results in the highest
present value. (Dictionary, 5th Edition)
Highest and Best Use of Land or a Site as Though
Vacant
Among all reasonable, alternative uses, the use that
yields the highest present land value, after payments
are made for labor, capital, and coordination. The use
of a property based on the assumption that the parcel
of land is vacant or can be made vacant by
demolishing any improvements. (Dictionary, 5th
Edition)
Highest and Best Use of Property as Improved
The use that should be made of a property as it exists.
An existing improvement should be renovated or
retained as is so long as it continues to contribute to
the total market value of the property, or until the
return from a new improvement would more than
offset the cost of demolishing the existing building
and constructing a new one. (Dictionary, 5th Edition)
Hypothetical Condition
That which is contrary to what exists but is supposed
for the purpose of analysis. Hypothetical conditions
assume conditions contrary to known facts about
physical, legal, or economic characteristics of the
subject property; or about conditions external to the
property, such as market conditions or trends; or
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Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
about the integrity of data used in an analysis.
(Dictionary, 5th Edition)
Leased Fee Interest
Afreehold (ownership interest) where the possessory
interest has been granted to another party by
creation of a contractual landlord- tenant relationship
(i.e., a lease). (Dictionary, 5th Edition)
Market Area
The area associated with a subject property that
contains its direct competition. (Dictionary, 5th
Edition)
Market Rent
The most probably rent that a property should bring
is a competitive and open market reflecting all
conditions and restrictions of the lease agreement,
including permitted uses, use restrictions, expense
obligations, term, concessions, renewal and purchase
options, and tenant improvements (Tls). (Dictionary,
5th Edition)
Market Value
The major focus of most real property appraisal
assignments. Both economic and legal definitions of
market value have been developed and refined.
1. The most widely accepted components of market
value are incorporated in the following definition:
The most probable price that the specified
property interest should sell for in a competitive
market after a reasonable exposure time, as of a
specified date, in cash, or in terms equivalent to
cash, under all conditions requisite to a fair sale,
with the buyer and seller each acting prudently,
knowledgeably, for self- interest, and assuming
that neither is under duress.
2. Market value is described in the Uniform
Standards of Professional Appraisal Practice
(USPAP) as follows: A type of value, stated as an
opinion, that presumes the transfer of a property
(i.e., a right of ownership or a bundle of such
rights), as of a certain date, under specific
conditions set forth in the definition of the term
identified by the appraiser as applicable in an
appraisal. (USPAP, 2010 -2011 ed.) USPAP also
requires that certain items be included in every
appraisal report. Among these items, the
following are directly related to the definition of
market value:
• Identification of the specific property rights
to be appraised.
• Statement of the effective date of the value
opinion.
• Specification as to whether cash, terms
equivalent to cash, or other precisely
described financing terms are assumed as
the basis of the appraisal.
• If the appraisal is conditioned upon financing
or other terms, specification as to whether
the financing or terms are at, below, or
above market interest rates and /or contain
unusual conditions or incentives. The terms
of above —or below— market interest rates
and /or other special incentives must be
clearly set forth; their contribution to, or
negative influence on, value must be
described and estimated; and the market
data supporting the opinion of value must be
described and explained.
3. The following definition of market value is used
by agencies that regulate federally insured
financial institutions in the United States: The
most probable price that a property should bring
in a competitive and open market under all
conditions requisite to a fair sale, the buyer and
the 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:
• Buyer and seller are typically motivated;
• Both parties are well informed or well
advised, and acting in what they consider
their best interests;
• A reasonable time is allowed for exposure in
the open market;
• Payment is made in terms of cash in U.S.
dollars or in terms of financial arrangements
comparable thereto; and
• The price represents the normal
consideration for the property sold
unaffected by special or creative financing or
sales concessions granted by anyone
associated with the sale. (12 C.F.R. Part
34.42(g); 55 Federal Register 34696, August
24, 1990, as amended at 57 Federal Register
12202, April 9, 1992; 59 Federal Register
29499, June 7, 1994)
4. The International Valuation Standards Council
defines market value for the purpose of
international standards as follows: The estimated
amount for which a property should exchange on
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Client File # 00058381
68300 Overseas Highway, Layton, FL 33001
the date of valuation between a willing buyer and
a willing seller in an arm's - length transaction
after proper marketing wherein the parties had
each acted knowledgeably, prudently, and
without compulsion. (International Valuation
Standards, 8th ed., 2007)
5. Market value is the amount in cash, or on terms
reasonably equivalent to cash, for which in all
probability the property would have sold on the
effective date of the appraisal, after a reasonable
exposure of time on the open competitive
market, from a willing and reasonably
knowledgeable seller to a willing and reasonably
knowledgeable buyer, with neither acting under
any compulsion to buy or sell, giving due
consideration to all available economic uses of
the property at the time of the appraisal.
(Uniform Standards for Federal Land
Acquisitions) (Dictionary, 5th Edition)
Marketing Time
An opinion of the amount of time it might take to sell
a real or personal property interest at the concluded
market value level during the period immediately
after the effective date of the appraisal. Marketing
time differs from exposure time, which is always
presumed to precede the effective date of an
appraisal. (Advisory Opinion 7 of the Standards Board
of The Appraisal Foundation and Statement on
Appraisal Standards No. 6, "Reasonable Exposure
Time in Real Property and Personal Property Market
Value Opinions" address the determination of
reasonable exposure and marketing time).
(Dictionary, 5th Edition)
Net Operating Income (NOI)
The actual or anticipated net income that remains
after all operating expenses are deducted from
effective gross income but before mortgage debt
Scope of Work
The type and extent of research and analyses in an
assignment. (Dictionary, 5th Edition)
service and book depreciation are deducted.
(Dictionary, 5th Edition)
Obsolescence
One cause of depreciation; an impairment of
desirability and usefulness caused by new inventions,
changes in design, improved processes for
production, or external factors that make a property
less desirable and valuable for a continued use; may
be either functional or external. (Dictionary, 5th
Edition)
Parking Ratio
A ratio of parking area or parking spaces to an
economic or physical unit of comparison. Minimum
required parking ratios of various land uses are often
stated in zoning ordinances. (Dictionary, 5th Edition)
Rentable Area
For office buildings, the tenant's pro rata portion of
the entire office floor, excluding elements of the
building that penetrate through the floor to the areas
below. The rentable area of a floor is computed by
measuring to the inside finished surface of the
dominant portion of the permanent building walls,
excluding any major vertical penetrations of the floor.
Alternatively, the amount of space on which the rent
is based; calculated according to local practice.
(Dictionary, 5th Edition)
Replacement Cost
The estimated cost to construct, at current prices as
of the effective appraisal date, a substitute for the
building being appraised, using modern materials and
current standards, design, and layout. (Dictionary, 5th
Edition)
2. The original installation of finished tenant space
in a construction project; subject to periodic
change for succeeding tenants. (Dictionary, 5th
Edition)
Stabilized Occupancy
An expression of the expected occupancy of a
property in its particular market considering current
and forecasted supply and demand, assuming it is
priced at market rent. (Dictionary, 5th Edition)
Tenant Improvements (Tls)
1. Fixed improvements to the land or structures
installed and paid for use by a lessee.
Vacancy and Collection Loss
A deduction from potential gross income (PGI) made
to reflect income reductions due to vacancies, tenant
turnover, and non - payment of rent; also called
vacancy and credit loss or vacancy and contingency
loss. Often vacancy and collection loss is expressed as
a percentage of potential gross income and should
reflect the competitive market. Its treatment can
differ according to the interest being appraised,
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68300 Overseas Highway, Layton, FL 33001
property type, capitalization method, and whether
the property is at stabilized occupancy. (Dictionary,
5th Edition)
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