The URL can be used to link to this page

Item N4 N4 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Board of County Commissioners Meeting April 17, 2024 Agenda Item Number: N4 2023-2205 BULK ITEM: Yes DEPARTMENT: Administration TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305)453-8788 AGENDA ITEM WORDING: Approval of a contract to purchase a parcel (RE#00484390-000000) in Key Largo from South Cliff Holdings LLC at a price of $11,950,000.00 for workforce housing and authorization for the Acting County Administrator to execute the contract and all documents required for the closing. Funding will be provided through the General Fund, or the Infrastructure Sales Tax. The contract includes a lease of the property back to the current owner for construction and management of the complex until the County assumes ownership. ITEM BACKGROUND: The subject property (identified as RE#00484390-000000) is located at 95295 Overseas Highway, Key Largo FL 33037. At its March 17, 2021, meeting, the Monroe County Board of County Commissioners (BOCC) reserved twenty-eight (28) affordable ROGO allocations (14 low income and 14 median income) for this project. South Cliff Holdings LLC, the owner of the property, approached the County about the possibility of the County acquiring the parcel for workforce housing. Staff obtained two (2) appraisals as required by F.S. 125.355 and evaluated the property both as existing and with contracted units fully constructed. Pursuant to F.S. 125.355, the proposed purchase requires an super majority vote (4/5ths)by the BOCC. Construction of the 28 units by South Cliff Holdings LLC will occur in phases. County staff has negotiated a contract that allows annual payments to the owner after the initial payment. As security for payment to South Cliff Holdings, the County would agree to appropriate the annual payments after the initial payment. The contract includes a lease back provision to allow South Cliff Holdings to manage the property during construction while allowing completed housing units to be utilized by the tenants and allowing the County to own the property prior to full payment. There is a lease cancellation provision upon payment in full by the County. This item was originally scheduled for the March 20, 2024 BOCC meeting and postponed to the April 17, 2024 BOCC meeting. Due to the time constraints in moving forward this project, it is anticipated that the negotiations concerning the lease will be ongoing and may or may not be complete prior to the BOCC meeting. Therefore, a draft of the lease, in substantially similar form, is also attached. 3077 Staff requests approval of the contract and of the lease, lease approval is subject to the County Attorney's approval of the lease document. PREVIOUS RELEVANT BOCC ACTION: July 20, 2022—BOCC passed and adopted Resolution No. 201-2022, extending the waiver of building permit fees in the amount of$211,215.00 for the 28 affordable housing allocations (14 low income and 14 median income) on the subject parcels, until such time of building permit issuance contingent on the recording of an Affordable Housing Deed Restriction. June 15, 2022 — BOCC passed and adopted Resolution No. 171-2022, extending the reservation for 28 affordable housing allocations (14 low income and 14 median income) on the subject parcels, until October 17, 2022 for building permit issuance. August 21, 2021 — BOCC passed and adopted Resolution No. 265-2021, waiving building permit fees for the 28 affordable housing allocations (14 low income and 14 median income) on the subject parcels, until July 17, 2022 for building permit issuance. March 17, 2021 —BOCC passed and adopted Resolution No. 116-2021, reserving 28 affordable housing allocations (14 low income and 14 median income) on the subject parcels, until July 17, 2022 for building permit issuance. INSURANCE REQUIRED: Yes CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Employee Housing Deed Restriction Resolution 116-2021: Reservation of Affordable ROGOs Resolution 265-2021: Waiver of Building Permit Fees Notice of Public Hearing 2024-02-20 Soutthcliff Appraisal (AOK W) 2024-03-04 Southcliff Appraisal(Duke) FINANCIAL IMPACT: Effective Date: Upon execution by the Acting County Administrator Expiration Date: Total Dollar Value of Contract: $11,950,000.00 Total Cost to County: $11,950,000.00 Current Year Portion: $1,450,000.00 Budgeted: Yes Source of funds: General Fund CPI: No Indirect Costs: Staff time / legal fees / title insurance / 2 appraisals / closing costs / Environmental Assessments, if applicable Estimated Ongoing Costs Not Included in above dollar amounts: Maintenance and repair Revenue Producing: Yes If yes, amount: Not determined at this time 3078 Grant: N/A County Match: N/A Insurance Required: Yes -Provided prior to recording with the clerk. 3079 Doc#2390470 Bk#3193 Pg#141 Recorded 9/7/2022 at 12:14 PM Pages 25 Filed and Recorded in Official Records of MONROE COUNTY KEVIN MADOK RFC: $214.00 This instrument was prepared by: Francisco Pla 1527 Shaw Dr. Key Largo,FL 33037 MONROE COUNTY PLANNING DEPARTMENT EMPLOYEE HOUSING DEED RESTRICTION THIS DEED RESTRICTION SHALL BE INCORPORATED IN WHOLE AND REFERENCED BY BOOK AND PAGE NUMBER ON ALL TRANSFERS OF THE BELOW DESCRIBED REAL PROPERTY. STATE OF FLORIDA COUNTY OF MONROE Notice is hereby given that: I. South Cliff Holdings LLC, is the sole owner of certain real property, situated, lying and being in Monroe County, State of Florida, described as follows: The Northwesterly 720 feet of the following described parcel of land: A portion of Tract 6, according to Plat of Southcliff Estates on Key Largo and recorded in Plat Book 2 at Page 45 of the Public Records of Monroe County, Florida, more particularly described as follows: From a P.R.M. at the intersection of the Southeasterly right of way line of State Road No. 5 on the agreed boundary line between Southcliff Estates and K.L.Thompson Property, as shown on plat recorded in Plat Book 2. at Page 67, Public Records of Monroe County, Florida, run Southeasterly on said agreed line, a distance of 66 feet to the Southeasterly right of way line of Old State Road 4A; thence Southwesterly along said Southeasterly right of way line, a distance of 330 feet to the Point of Beginning of the parcel hereinafter described thence continue Southwesterly on last described course, a distance of 100 feet to the Northeasterly side of the subdivision of Sunrise Point, according to the revised plat, recorded in Plat Book 3, at Page 11, Public Records of Monroe County, Florida,thence along said Northeasterly side of Sunrise Point in a Southeasterly direction, a distance of 1065 feet more or less to the shore of the Atlantic Ocean;thence Northeasterly meandering said shore to a point of intersection with a line which is 100 feet Northeasterly from and parallel to the said Northeasterly side of Sunrise Point; thence Northwesterly along said line to the Point of Beginning. And Lot 1, Block 1 of REVISED PLAT OF SUNRISE POINT, according to the Plat thereof,as recorded in Plat Book 3, at Page 11, of the Public Records of Monroe County, Florida. And Lot 2, Block 1 of REVISED PLAT OF SUNRISE POINT, according to the Plat thereof,as recorded in Plat Book 3, at Page 11, of the Public Records of Monroe County, Florida. Parcel Numbers 00483370-000100, 00484390-000000 & 00484400-000000 EMPLOYEE HOUSING DEED RESTRICTION Page 1 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 3080 Doc.#2390470 Page Number: 2 of 25 II. As shown on Exhibit A— "Site Plan" and summarized on Exhibit B —"Chart" Building Permit numbers for the 11 residential Buildings Permit Numbers are: Building#1 21301888 Building#6 22300467 Building#2 21301889 Building#7 22300468 Building#3 21301890 Building#8 22300469 Building#4 22300465 Building#9 22300470 Building#5 22300466 Building#10 22300471 Building#11 22300472 III. As Authorized by Resolution No.116-2021, Reservation of 28 Affordable ROGO Allocations (Exhibit C) and Resolution No. 171-2022 Extension of Reservation of 28 Affordable ROGO Allocations (Exhibit D) this restriction is for 14 Low Income Households and 14 Median income households as: a) 12 one bedroom apartments shall be restricted to Low income households b) 2 two bedroom apartments shall be restricted to Low Income households c) 10 two bedroom apartments shall be restricted to Median Income households d) 4 three bedroom apartments shall be restricted to Median Income households IV. As authorized by Resolution No. 265-2021 Waiver of Building Permit Fees (Exhibit E) and Resolution No.201-2022 Extension of Waiver of Building Permit Fees (Exhibit F). Building Permit Fees have been waived for the 28 unit, affordable / employee housing complex described herein. V. As authorized herein, under the owner-occupied / developer moderate income affordable / employee housing provisions set forth in the Monroe County Land Development Regulations, the owner or owners of the above-described real property have been exempted from payment of "Fair Share Impact Fees" for the 28 unit, affordable / employee housing complex described herein. VI. As authorized herein, the use of the 28 dwellings are restricted for a period of at least ninety-nine (99) years. As shown in Exhibit A and summarized in Exhibit B, 14 dwellings are being restricted to being leased or sold to households with an adjusted gross annual income no greater than one hundred (100) percent of the median and 14 dwellings to households with an adjusted gross annual income no greater than eighty percent (80) adjusted gross annual income VI I. The units subject to the restrictions herein are intended to, and shall serve only as affordable / employee, permanent housing for working households, which derive at least seventy (70) percent of their household income from gainful employment in Monroe County and meet the requirements for affordable / employee housing. EMPLOYEE HOUSING DEED RESTRICTION Page 2 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 v .. -3081 Doc. #2390470 Page Number: 3 of 25 Vlll. Maximum sales price for an owner occupied affordable/ employee housing unit shall mean : *a price not exceeding 3.75 times the annual median household income for Monroe County for a 1 bedroom unit 4.25 times the annual median household income for Monroe County for a 2 bedroom unit 4.75 times the annual median household income for Monroe.County for a 3 bedroom unit IX. The covenants shall be effective for ninety-nine (99) years, but shall not commence running until a certificate of occupancy has been issued by the building official for the dwelling unit(s) to which the covenant or covenants apply. This deed restriction shall remain in effect for ninety-nine (99) years regardless of the owner(s) or occupant(s) ability to comply or re-qualify on an annual basis or as otherwise may be required. X. At the time of sale of an owner-occupied affordable/employee housing unit, the unit may be sold only to a household within the applicable low or median income category. E.g., ' an owner-occupied affordable/employee housing unit which is encumbered by a median-income deed restriction may only be sold to another household that qualifies for the County's above-described median-income category or lower. XI. Tourist housing use or vacation rental use of affordable/employee housing units is prohibited. XI I. No Encumbrances. "Joinder of Mortgages have been provided as part of this restriction. No,additional mortgages will be obtained or recorded on the properties prior to recording of this Deed Restriction. Otherwise, I/we understand that a Joinder by the mortgagee (lender)will be required to be included with this Deed Restriction if a mortgage is obtained prior to this Deed Restriction being recorded in the Official Records of Monroe County, Florida. There is/are no non-mortgage encumbrance(s) on the property legally- described above nor will a non-mortgage encumbrance be recorded on that property prior to the recording of this Deed Restriction. I/we understand that a Joinder by the non-mortgage encumbrance-holder will be required to be included with this Deed Restriction if a non-mortgage encumbrance is obtained prior to this Deed Restriction being recorded in the Official Records of Monroe County, Florida. XIII. BORROWERS AND LENDERS TAKE NOTE: No equity may be borrowed against the value of the affordable/employee housing unit which exceeds the maximum sales price in Paragraph VIII. This prohibition is for an aggregate loan amount of all equity against the home. A series of smaller equity loans may not be obtained whose total loan amount exceeds the maximum sales price in Paragraph VIII. EMPLOYEE HOUSING DEED RESTRICTION Page 3 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 �n 3082 Doc.#2390470 Page Number: 4 of 25 XIV. All of the restrictions herein shall be binding upon any transferees, lessees, heirs, assigns or successors in the chain of title for the property and owner- occupant(s) and tenant-occupant(s) thereto, it being recognized that recordation of this Employee Housing Deed Restriction constitutes constructive notice to all interested parties. XV. There is no mortgage on this property nor will a mortgage be recorded on this property prior to the recording of this restriction. Otherwise, I/we understand a joinder by the mortgagee (lender) will be required to this restriction if a mortgage is obtained prior to this restriction being recorded in the Monroe County Public Records. XVI. Breach or Violation. In the event of breach of violation of the restrictions or terms herein, the County shall provide a written "Notice of Default" or"Notice of Violation" to the defaulting undersigned Grantor(s), the defaulting owner- occupant(s), and/or the defaulting tenant(s) thereto, and a defaulting party shall have the right to cure such breach(es) or violation(s) within thirty (30) calendar days of receipt of notice of such breach(es) or violation(s). Uncured breach(es) or violation(s) of the terms of and restrictions imposed by this Employee Housing Deed Restriction shall, without any additional notice beyond this Deed Restriction's recordation, entitle the County to immediately suspend, without liability to the County, development applications, pending permits, approvals, and inspections, of which are contingent upon the effectiveness of and compliance with this Deed Restriction, except for those permits, approvals, or inspections necessary to cure such breach(es) or violation(s). Uncured breach(es) or violation(s) of a term or restriction imposed herein shall be presumed to constitute a breach or violation of an irreparable or irreversible nature. In the event of any suit, action, proceeding, in law or in equity, by the County to enforce the restrictions or terms contained herein, if the County prevails in any such suit, action, or proceeding, on trial or appeal, the County shall be entitled to reasonable attorney's fees, including trial, appellate, bankruptcy, and post- judgment costs and collection proceedings for the maintenance or defense of any such suit, action, or proceeding, to be paid by the losing party(ies) as fixed by the court. Any judgment so rendered in favor of the County in connection with any such suit, action, or proceeding arising out of, related to, or in connection with this Deed Restriction, shall bear interest at the highest rate allowed by law. The County shall recover reasonable legal and professional fees attributable to the preparation, administration, and enforcement of such suit, action or proceeding, from any person(s) and/or entity(ies) from or to whom a demand or enforcement request is made, regardless of actual initiation of a suit, action, or proceeding. These remedies are in addition to any other remedy, fine, or penalty which may be initiated under, including, but not limited to, Chapter 162, Florida Statutes. EMPLOYEE HOUSING DEED RESTRICTION Page 4 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 J 3083 Doc.#2390470 Page Number: 5 of 25 XVII. Joint-and-Several Liability. If the undersigned Grantor(s), owner-occupant(s) thereto, or tenant-occupant(s) thereto, or successors in title to or interest in the property or any other non-County natural person(s) or legal person(s) are party(ies) to any suit, action, or proceeding, in law or in equity, initiated or filed by the County to enforce any provision, restriction., or term contained herein, and consists of more than one person(s) or entity(ies), all such person(s) and entity(ies) shall be jointly-and-severally liable. XVIII. Cumulative Remedies. In the event of any breach or violation of the restrictions or terms herein, the County shall, without liability to the County, have the right to proceed at law or in equity as may be necessary to enforce compliance with the restrictions or terms hereof, to enjoin activities, construction, maintenance, practices, repairs, and uses inconsistent with the restrictions or terms hereof, and to otherwise prevent the breach or violation of any of them, to collect damages, and is both authorized and entitled to enforce this Employee Housing Deed Restriction by emergency, preliminary, and permanent injunction, including by ex parte motion and action for such injunction(s), it being hereby expressly and specifically agreed-upon that the County has no adequate remedy at law for such breach(es) or violation(s), or such other legal method as the County deems appropriate. All rights and remedies accruing to the County are assignable in whole or in part and are cumulative; that is, the County may pursue such rights and remedies as the law and this Deed Restriction afford it in whatever order the County desires and the law permits. The County's resort to any one law(s) or remedy(ies) in advance of any other shall not result in waiver or compromise of any other law(s) or remedy(ies). The undersigned Grantor(s) hereby agree(s) to and shall pay for all costs associated with the County's actions to enforce this Deed Restriction. Failure by the undersigned Grantor(s), or owner-occupants or tenant-occupants thereto, to comply with or perform any act required by or under this Deed Restriction shall not impair the validity of this Deed Restriction or the conditions, provisions, reservations, restrictions, rights, or terms hereof or limit their enforceability in any way. Enforcement of the conditions, provisions, restrictions, and terms of this Deed Restriction shall be at the discretion of the County. The County's delay or failure to enforce or omission in the exercise of any condition, provision, reservation, restriction, right, or term contained herein, however long continued, shall not be deemed a waiver or estoppel of the right to do so thereafter as to any violation(s) or breach(es). No County waiver of a breach of any condition, provision, reservation, restriction, right, or term hereof, shall be construed to be a waiver of any succeeding breach of the same. EMPLOYEE HOUSING DEED RESTRICTION Page 5 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 ` e h� 3084 Doc.#2390470 Page Number: 6 of 25 XIX. Limitation of Liability. In the event of any litigation concerning any condition, provision, restriction, or term of this Employee Housing Deed Restriction, the undersigned Grantor(s), and owner-occupant(s) and tenant-occupant(s) thereto, hereby waive their right to a jury trial. The undersigned Grantor(s) further agree that no claim(s) shall be made by it for any delay or hindrance allegedly attributable to the County during the progress of any portion of or during the effective period of this Deed Restriction. XX. Duty to Cooperate and No Arbitration. The undersigned Grantor(s), and owner-occupant(s) and tenant-occupant(s) thereto, shall, to ensure the effective implementation of the government purpose furthered by this Employee Housing Deed Restriction, cooperate with the County's reasonable requests submitted to said Grantor(s), and owner-occupant(s) and tenant-occupant(s) thereto, regarding the conditions, restrictions, and terms contained herein. No suit, action, or proceeding arising out of, related to, or in connection with this Deed Restriction is subject to arbitration, and mediation proceedings initiated and conducted that arise out of, relate to, or are in connection with this Deed Restriction shall be in accordance with the Florida Rules of Civil Procedure. XXI. Governing Laws/Venue. This Employee Housing Deed Restriction is and the enforcement of the restrictions, terms, and obligations established therefrom are governed by the Monroe County Comprehensive Plan, the Monroe County Code(s), the Florida Building Code, and the Florida Statutes, and shall be liberally construed to effectuate the public purpose of this Deed Restriction. Exclusive venue for any dispute arising from or under, relating to, or in connection with, this Deed Restriction, shall be in the Sixteenth Judicial Circuit in and for Monroe County, Florida. XXII. Construction and Interpretation. The construction and interpretation of such, and all other, Monroe County Comprehensive Plan provision(s) and Monroe County Code(s) provision(s) shall be deferred in favor of the Monroe County (a/k/a Monroe County Board of County Commissioners) and such construction and interpretation shall be entitled to great weight on trial and on appeal. XXIII. Inconsistency, Partial Invalidity, Severability, and Survival of Provisions. If any condition, provision, reservation, restriction, right, or term of this Deed Restriction, or any portion thereof, is/are held invalid or unenforceable in or by any administrative hearing officer or court of competent jurisdiction, the invalidity or unenforceability of such condition, provision, reservation, restriction, right, term, or any portion(s) thereof, shall neither limit nor impair the operation, enforceability, or validity of any other condition, provision, reservation, right, term, or any remaining portion(s) thereof. All such other conditions, provisions, reservations, restrictions, rights, terms, and remaining portion(s) thereof shall continue unimpaired in full force and effect. EMPLOYEE HOUSING DEED RESTRICTION Page 6 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 3085 Doc.#2390470 Page Number: 7 of 25 XXIV. Captions and Paragraph Headings. Captions and paragraph headings, where used herein, are inserted for convenience only and are not intended to descriptively limit the scope and intent of the particular paragraph or text to which they refer. XXV. Authority to Attest. Each party to this Employee Housing Deed Restriction represents and warrants to the other that the execution, delivery, and performance of this Deed Restriction has been duly authorized by all necessary corporate and other organizational action, as required. XXVI. Entire Agreement. This Employee Housing Deed Restriction constitutes the entire Deed Restriction and any representation or understanding of any kind preceding the date of this Deed Restriction's execution or recordation is not binding upon the Grantor(s) or the County, except to the extent that it has been incorporated into this Deed Restriction. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] EMPLOYEE HOUSING DEED RESTRICTION Page 7 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 AN 3086 Doc.#2390470 Page Number: 8 of 25 I/we certify that I/we am/are familiar with the information herein contained and that it is true and correct; and I/we will abide by the above stated restrictions pursuant to Monroe County Code as may be amended from time to time. Owner Owner X X —" L 7*,c --Gr�� Francisco J. Pla Who ' Member Richard C. Riehl/Authori d Member 1: Wi es\S`ignature 1: Witne -nature Print ame v ifir� \� Print Na e N ^V-I� l k 2: Witness Signature 2: itness Signature Print Name Y Q(`1 A Print Name Q Y STATE OF LG�.�( STATE OF `0�aG COUNTY OF M0VIy'0e-,,, COUNTY OF M VAr0fi Sworn to and subscribed before me, by Sworn to and subscribed before me,by means of%physical presence or online means ofX physical presence or online notarization notarization this 'Z6 day of AVq V5� , 20 22. , this 2.(D day of,�J�, 20 -4�2- , by T{rgr'k6 tsc o by (PRINT NAME OF PERSON MAKING STATEMENT) (PRINT NAME OF PERSON MAKING STATEMENT) who is pers allyPwn tome ORroduc who is persona kn n to me OR roduce q-bV1 eNlC� �2 aj)identi ication. fL b ��(1 ) 3 -Oas(identification. (TYP OF (TYPE OF Mt U KJA ffaA Signattl eUt Public Signature�IWoIUYryubA � S l b Print,Name of Notary Public Print,Name of Notary Public My commission expires: 3I J(26zq My commission expires: 3)I- L Zn2 -Apr Pu'•-; LORI M.SOLLIITO '_°• �� Notary Public-State of Florida Commission#GG 953328 :ot `Y°ue�: LORI M.SO:GG D My Comm. Tres Mar 10,2024 Notary Public-S Commission#Bonded through National Notary Assn. '�'� rti My Comm.ExpireBonded through Nation EMPLOYEE HOUSING DEED RESTRICTION Page 8 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 �3087 Doc.#2390470 Pagc Numbcr: 9 of 25 This instrument was prepared by: Francisco Pla 1527 Shaw Dr. Key Largo,FL 33037 JOINDER OF MORTGAGEE Kenneth Moauro & Bernadette Moauro,(husband & wife) whose address is 9647 N. Bedrford Rd., Macedonia, Ohio 44056 having a record interest as recorded in the official records of Monroe County at Book 3097 Page 20 in the lands described in the Employee Housing Deed Restriction attached hereto between South Cliff Holdings LLC Grantor, and Monroe County, Florida, Grantee, hereby joins in, consents to, and ratifies that Employee Housing Deed Restrictionthe date indicated below. X VIE X M� � Kenn th oau o/ ortgagee Bernadette Moauro/ Mortgagee i kAw 1: Wit ess Signature 1: Witness Signature 1 Print Name 1WAia Print Name S wR id 2: 1 itness Signature 2: Witness Signature Print Name_1M,rr Print Name ►^err Iccs,Iu�•+$kl STATE OF 6 At o STATE OF Q 1 d COUNTY OF 1�G2-r�C--� COUNTY OF 612ahC- Sworn to and subscribed before me, by Sworn to and subscribed before me, by means ofXphysical presence or online means of Xphysical presence or online notarization notarization thig2�vp day of �,uGvsT- , 20 2Z this" t Today of uG�sSi , 20 ZZ , by KEivN MaAurz� by -rat AVM (PRINT NAME OF PERSON MAKING STATEMENT) (PRINT NAME OF PERSON MAKING STATEMENT) who is personally known to me OR produced who is personally known to me OR produced as identification. as identification. (T E O ID PROD ED) (TY OFi D PROR D[JFED) Ignature of Notary Public Signature of,Notary Public Print,Name of Notary Public Print,Name of Notary Public My commission ea�ir�es: /G -/a ^ 2-3 My commission expires: ro ld' 3 %11 � Oilli l,,� `�• �DNS-NQT,�.,. �`% \NS-No'). � "o EMPLOYE �aTRICTION RE No.:_G04 r., .'. O(L484390-000000 & 00484400-000060 v Rev. 12.2142(d -: 'i q T 01 �� 'SST lcXp:0OF 3088 1 �� /till ll 5— Doc.#2390470 Page Number: 10 of 25 This instrument was prepared by: Francisco Pla 1527 Shaw Dr. Key Largo,FL 33037 JOINDER OF MORTGAGEE Alice Riehl, Individually and as Trustee under Declaration of Trust known as The Alice Riehl Living Trust Dated -3/15/2016 whose address is 1005 Snapper Ln. Key Largo, Florida 33037 having a record interest as recorded in the official records of Monroe County at Book#3114 Page#1859 in the lands described in the Employee Housing Deed Restriction attached hereto between South Cliff Holdings LLC Grantor, and Monroe County, Florida, Grantee, hereby joins in, consents to, and ratifies that Employee Housing Deed Restriction on the date indicated below. Name of Mortgagee - 1: Witts> Signature Allc Riehl as Trustee!Mer the 1 Declaration of Trust know as The Alice Riehl Living Tru ated 03/15/2016 (Print KApe Name of Witness) A hce Riehl, Individually IJ Witness Signature y MCC,, 1 � Print Name: (Orin* or Type Name of Witness) STATE OF COUNTY OF M6VIr6 � Sworn to and subscribed befor me, by means of physical presence or ❑ online notarization this 2fo day of 20 22 , by Al[C<- I. RtC� I , (PRINT NAME OF PERSON MAKING STATEMENT) who i S 11 kn n to me OR produced t.klWA pL P-LIU0-63S=31-%-iid&ntification. (TYPE"OF ID PRODUCED) Signa )'V�WM(1140 Print,Type or Stamp Commissioned Name of Notary Public Po''• LORI M.SOLLITTO My commission expires: i9; Notary Public-State of Florida ®Q Commission a GG 9533I8 -3 I I0 12-02- My Comm.Expires Mar 10,2024 Bonded through National Notary Assn. EMPLOYEE HOUSING DEED RESTRICTION Page 10 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 3089 Doc.#2390470 Page Number: 11 of 25 This instrument was prepared by: Francisco Pla 1527 Shaw Dr. Key Largo,FL 33037 AFFIDAVIT OF SOUTH CLIFF HOLDINGS, LLC Before me, a notary public appeared, Francisco J Pla, &Richard C Riehl on behalf of and as Managers of South Cliff Holdings, LLC a Florida limited liability company, who after being duly sworn, depose and state as follows: 1. South Cliff Holdings LLC is a limited liability company organized under the laws of Florida("the Company") effective March 30, 2021. 2. Pursuant to the Article of Organization, Bylaws, and Operating Agreement, the Company is a manager managed company and there are two Managers as follows: Francisco J. Pla, and Richard C Riehl and we have never resigned or been removed as a managers. 3. That we have the authority to execute any and all documents on behalf of the limited liability company. 4. The undersigned make this Affidavit with full knowledge that Monroe County requires compliance for Affordable Housing requirements based on documentation executed by the managers of the Compan . X Francisco J.Pla/M ger Richard C.Riehl/ma5Wr 1: W tKos`Si�nature 1: Witness nature P nt amen! Print Nam i tiCc, 2: Witness, ignature• II` - 2: Witnes s i gnature, Print Name .(ri ' _ t\Tint Name COY u STATE OF 171OV-LA A STATE OF Fl m d m COUNTY OF UV)r0fJ COUNTY OF V1Y'0t) Sworn to and subscribed before me, by Sworn to and subscribed before me, by means of9physical presence or online means of KPhysical presence or online notarization notarization this 2(a day of Av USf , 20 22 this 261 day of hJ4 05�� , 20 22. , by f_j(01V1G1 SC 0 V f I A by }2i c(ti0-4 4fW&kS R_Ie h I, (PRINT NAM MAKING STATEM (PRINT NAME OF PERSON MAKING STATEMENT who i pe _ e rod_ who is personally known to me O roduce 41_0 2 as identification. a L• 12y0(7 ^l�`}^ l a�identi ication. (TYPE D) (TYPE Or rd J�IV Sign r Nota P 1' Signature of fobli 6" �6 �� -, Y,Ou, •" Pu-•. LORI M.SOLG5 Not y Public Print Name of Notary Public :°• ��= Notary Public-Stlorida r; Notary-State ofFConda o• Commission# 328Commission#GG 953328 ` �' M Comm.Expire ,2024My ConMyE ;tWs1AoW ires: 3llOjZ(j2� My commission expires: f . F Bonded through Nationry Assn. Bonded through National Notary Assn. 11 EMPLOYEE HOUSING DEED RESTRICTION Page 11 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 �v1 3090 Doc.#2390470 Page Number: 12 of 25 This instrument was prepared by: Francisco J.Pla 1527 Shaw Dr. Key Largo,FL 33037 Affidavit of No Encumbrances 1. WHEREAS, South Cliff Holdings LLC, is the sole owner of the following described real property located in Monroe County, Florida described as Lot(s):1 & 2, Block:1,Revised Plat of Sunrise Point Key Largo Plat Book:3 Page:11 Parcel Real Estate Numbers: 00484390-000000 & 00484400-000000 and A portion of Tract 6, Southcliff Estates Subdivision Key Largo Plat Book: 2 Page: 45 Parcel ID/Real Estate Number : 00483370-000100 2.WHEREAS, this statement is current as of this date, and that no liens, loans, mortgages or other encumbrances currently encumber the above legally described real property other than those in which Joinder(s) have been executed and submitted. 3.Now, therefore, the undersigned state that the above described property is/are free of all liens; loans, mortgages, or any other encumbrances at this time other than those in which Joinder(s) have been executed and submitted. EXECUTED ON THIS Z(a day of August, 2022. WITNESSESS TO BOTH: OWNERS 1: itness Signature / x you x e_ Richard C Riehl/Authorized Member L L, 52505 `� 1005 Snapper Ln. 1--\ h Key Largo, FL 33037 2: I!W ness Signatu x X � ` Francisco J. Pla/Authorized Member C� 1527 Shaw Dr. Key Largo, FL 33037 STATE F FLORIDA COUNTY OF MONROE Sworn n subscribed before me,by means of h sical resence notarization this 2& day o , 2 2, by Rich ar gr i§apr3oPla, th personally known to me Notary Public-state of Florida Commission#GG 953328 of e� My Comm.Expires Mar 10,2024 Sig t e o Notary Public one roug ational NotaryAssn. E O HOUSING DEED RESTRICTION Page 12 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 �n /3091 6� 11 Doc.#2390470 Page Number: 13 of 25 TABLE OF EXHIBITS 1) EXHIBIT A- SITE PLAN 2) EXHIBIT B—CHART 3) EXHIBIT C—RESOLUTION 116—2021 RESERVATION OF ROGO ALLOCATION 4) EXHIBIT D—RESOLUTION 171-2022 EXTENSION RESERVATION OF ROOGO ALLOCATIONS 5) EXHIBIT E—RESOLUTION 265-2021 WAIVER OF PERMIT FEES 6) EXHIBIT F—RESOLUTION 201-2022 EXTENSION OF WAIVER OF PERMIT FEES EMPLOYEE HOUSING DEED RESTRICTION Page 13 of 13 RE No.:_00483370-000100, 00484390-000000 & 00484400-000000 Rev. 12.21.2020 3092 ,®?OOI 3igN.G41 C) M I I I I 2 I 2 � N F ' rl oM Noo Z mw _ I m 4 cn I o H Nv�m c�^c6 >tn JOF-ch �rmizLn �� I mrv70) (3) N i m Z o O Z oo nlnoa I I -- 3 Jm~cn NWO 2 7rvZ lnmw = m N 7 01 N I I v U rvv I I Q (7 01°� m>to I T Z O r`i Q I 2 Ln -0 F cn N�w Z m W m N 70�1N I I 3k N no (D0066 >,n Z Z V r OC.jZ p0 Jo V1NmOa t- w0 mN cnr,4CJ a z ~ �- X � i I I N co • I ZI0ON J1L Z��LNa poOFNOQ 2 I I I m N O OLn N U N Ol m I lD 07 >Ln T oo�Ln. J_7 O 0 I � 2NZtnm M I N (U I I z 1D ON o In'n 5NzNwLn En # I I 3 m N 7 0 N0) Ile I I a 2 2 i N N m `~ � m `~ 01 N m N Q I K001 O I Z. O r !'i Q O cn J Ln 0Cm L, m U 7mm, mNW IN 7m m V LL I , 7 NU- H m N 0 p B coI m ro _ 170N >m I I i ppO�y -- -- —�' �— —� p. Mto 0 Jmzcn rq I a1 I m N 7 cn Ln c-I 0- L # z --- a 0 a M N ,kV MHyjH SV3%igAO CRIOGHISON U O A Doc.#2390470 Page Number: 15 of 25 EXHIBIT B CHART BUILDING# PERMIT# ADDRESS UNIT# TYPE INCOME BUILDING#1 21301888 95295 Overseas Hwy. #1 1 BED 1 BATH LOW BUILDING #1 21301888 95295 Overseas Hwy. #2 1 BED 1 BATH LOW BUILDING #1 21301888 95295 Overseas Hwy. #3 1 BED 1 BATH LOW BUILDING #1 21301888 95295 Overseas Hwy. #4 1 BED 1 BATH LOW BUILDING#2 21301889 95295 Overseas Hwy. #1 1 BED 1 BATH LOW BUILDING#2 21301889 95295 Overseas Hwy. #2 1 BED 1 BATH LOW BUILDING#2 21301889 95295 Overseas Hwy. #3 1 BED 1 BATH LOW BUILDING#2 21301889 95295 Overseas Hwy. #4 1 BED 1 BATH LOW BUILDING#3 21301890 95295 Overseas Hwy. #1 1 BED 1 BATH LOW BUILDING#3 21301890 95295 Overseas Hwy. #2 1 BED 1 BATH LOW BUILDING#3 21301890 95295 Overseas Hwy. #3 1 BED 1 BATH LOW BUILDING #3 21301890 95295 Overseas Hwy. #4 1 BED 1 BATH LOW BUILDING #4 22300465 95295 Overseas Hwy. #1 2 BED 2.5 BATH LOW BUILDING#4 22300465 95295 Overseas Hwy. #2 2 BED 2.5 BATH LOW BUILDING #5 22300466 95295 Overseas Hwy. #1 2 BED 2.5 BATH MEDIAN BUILDING#5 22300466 95295 Overseas Hwy. #2 2 BED 2.5 BATH MEDIAN BUILDING#6 22300467 95295 Overseas Hwy. #1 2 BED 2.5 BATH MEDIAN BUILDING#6 22300467 95295 Overseas Hwy. #2 2 BED 2.5 BATH MEDIAN BUILDING#7 22300468 95295 Overseas Hwy. #1 2 BED 2.5 BATH MEDIAN BUILDING#7 22300468 95295 Overseas Hwy. #2 2 BED 2.5 BATH MEDIAN BUILDING #8 22300469 95295 Overseas Hwy. #1 2 BED 2.5 BATH MEDIAN BUILDING#8 22300469 95295 Overseas Hwy. #2 2 BED 2.5 BATH MEDIAN BUILDING #9 22300470 95295 Overseas Hwy. #1 2 BED 2.5 BATH MEDIAN BUILDING #9 22300470 95295 Overseas Hwy. #2 2 BED 2.5 BATH MEDIAN BUILDING #10 22300471 95295 Overseas Hwy. #1 3 BED 2.5 BATH MEDIAN BUILDING #10 22300471 95295 Overseas Hwy. #2 3 BED 2.5 BATH MEDIAN BUILDING #11 22300472 95295 Overseas Hwy. #1 3 BED 2.5 BATH MEDIAN BUILDING#11 22300472 95295 Overseas Hwy. #2 3 BED 2.5 BATH MEDIAN 3094 Doc.#2390470 Page Number: 16 of 25 EXHIBIT C S' 1 2 RESOLUTION NO. 116 -2021 3 4 A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY 5 COMMISSIONERS APPROVING THE RESERVATION OF TWENTY- 6 EIGHT (28) AFFORDABLE ROGO ALLOCATIONS (14 LOW 7 INCOME AND 14 MEDIAN) FOR PROPOSED EMPLOYEE 8 HOUSING DWELLING UNITS ON PROPERTY OWNED BY RIEHL 9 ALICE LIVING TRUST LOCATED 95301 OVERSEAS HIGHWAY, 10 SECTION 13, TOWNSHIP 62, RANGE 38 PART TRACT 6, 11 SOUTHCLIFF ESTATES, KEY LARGO, APPROXIMATE MILE 12 MARKER 95.5, HAVING PROPERTY IDENTIFICATION NUMBER 13 00483370-000000, AND PROPERTY OWNED BY ARMANDO & 14 MARIA C. CABRERA, FOR PROPERTY LOCATED ON LOTS I & 2, 15 BLOCK I REVISED PLAT OF SUNRISE POINT, KEY LARGO 16 HAVING PROPERTY IDENTIFICATION NUMBER(S) 00484390- 17 000000 AND 00484400-000000 AS REQUESTED BY FRANK PLA, AS 18 AUTHORIZED BY THE PROPERTY OWNERS, RIEHL ALICE ----------------------- 19 LIVING TRUST AND ARMANDO & MARIA C. CABRERA, UNTIL 20 JULY 17, 2022 FOR BUILDING PERMIT ISSUANCE., 21 22 WHEREAS,the State ol'Florida and all local governments in the Florida Keys (each subject to 23 Area of Critical State Concern mandates relating to housing affordability) recognize the need for 24 affordable housing throughout the state and particularly in the Florida Keys where developable land for 25 housing is extremely limited and expensive; and '6 27 WHEREAS, the challenge of providing affordable housing opportunities in the Florida Keys is 28 one requiring sensible and responsive use of residential unit allocations, including implementation of 29 long-term preservation mechanisms; and 30 31 WHEREAS, due consideration should be given to relevant factors such as the capacity for 32 allocation recipients to promptly transform allocation awardslreservations into finished and occupied 33 aflordable/workforce housing units; and J4 .. - 35 WHEREAS. Section 138-24(b)(2) of the Monroe County Land Development Code allows 36 the BOCC to authorize reservations for "specific affordable or employee housing projects participating 37 in a federal/state housing financial assistance or tax credit program or receiving some form of direct 38 financial assistance from the county upon written request from the project sponsor and approved by 39 resolution of the Board of County Commissioners," and 40 41 . WHEREAS, Frank Pla, as authorized by the current property owners, Riehl Alice Living Trust 42 and Armando & Maria (7 Cabrera, are proposing to develop the properties with twenty-eight (28) 43 affordable employee housing units;and t 3095 Doc.#2390470 Page Number: 17 of 25 1 2 WHEREAS,the reservation of affordable housing allocations for the anticipated project does not 3 exempt the project from applicable requirements for the Monroe County Land Development Regulations, 4 Building Code and other regulatory requirements, and 5 6 WHEREAS, Riehl Alice Living 'Trust and Armando & Maria C Cabrera shall obtain all 7 required approvals from the Monroe County Planning & Fnvironmental Resources Department for the 8 project:and 9 10 WHEREAS, Riehl Alice living Trust and Armando & Maria C Cabrera shall obtain permits 1 I for the affordable housing dwelling units by July 17,2022, if the permit for a reserved ROGO allocation 12 housing unit is not issued by that time,the allocation will revert to the County; 13 14 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY 15 COMMISSIONERS OF MONROE COUNTY, FLORIDA: 16 17 Section 1: The foregoing recitals are true and correct,and are hereby incorporated as if fully 18 set forth herein. 19 20 Section 2: The Monroe Count, Planning Department shall reserve twenty-eight (28) affordable 21 ROGO allocations(14 low income and 14 median income), for the project at 95301 Overseas Highway, 22 Section 13. Township fit, Range 38 Part Tract 6, Soutlicliff Estates, Key Largo, having Property 23 Identification Number 00493370-000000, and Lots I & 2, Block 1 Revised Plat of Sunrise Point Key 24 Largo, have Property Identification Number(s) 00484390-000000 and 00484400-000000 until July 25 17, 2022. 26 27 Section 3: The developer must obtain the building permits for the twenty-eight (28) 28 affordable/employee housing units on or before June 17"', 2022. 29 30 Section 4: The developer shall comply with all Monroe County requirements, all applicable 31 Building Code requirements, and any other oversight agencies. 32 33 Section 5: The Planning and Building Department Staff is hereby authorized to process 34 expeditiously permit related applications for the above referenced project when received. 35 36 PASSED AND ADOPTED by the Board of County Commissioners of" Monroe County. 37 Florida at a regular meeting held on the 17th day of March, 2021, 38 39 Mayor Michelle Coldiron Yes 40 Mayor Pro Tern David Rice Yes 41 Commissioner Craig Cates Yes 42 Commissioner Eddie Martinez Yes_ 43 Commissioner Mike Forster Yes 44 45 2 of 3 a . 3096 Doc.#2390470 Page Number: 18 of 25 1 2 BOARD OF COUNTY COMMISSIONERS OF MONROE 3 COUNTY, FLORIDA _ y BY: ,- Mayor Michelle Coldiron N MADOK, CLERK MONROEC4 AT70RNEY 11 �` AP? TO FORM 13 AS DEPTJ Y CLERK PETER MORRIS ASSISTANT COUNTY ATTORNEY flats: 2/19/21 _Y q -7 T .ter C1 Z' Vr 3 of 3 3097 Doc.#2390470 Page Number: 19 of 25 EXHIBIT D - J 3 RESOLUTION NO. 171 -2022 75 4 A RESOLUTION OF THE AIONROE COUNTY BOARD OF COUNTY 0 5 CONIlIISSIONERS APPROVING THE RESERVATION EXTENSION $ 6 OF TWENTY-EIGHT(28)AFFORDABLE ROGO ALLOCATIONS(14 7 LOW 1NCO`'IE AND 14-MEDIAN) FOR PROPOSED EMPLOYEE S HOUSING DWELLING UNITS ON PROPERTY OWNED BY SOUTH 9 CLIFF HOLDINGS LLC LOCATED 95295 OVERSEAS HIGHWAY, 10 SECTION 13, TOWNSHIP 62, RANGE 38 PART TRACT 6, 11 SOUTHCLIFF ESTATES, K'EY LARGO, APPROXIMATE INULE 12 MARKER 95.5, i[AVING PROPERTY IDENTIFICATION NUNIBER � 13 00483370-000100, AND FOR PROPERTY LOCATED ON LOTS 1 & 2, 14 BLOCK I REVISED PLAT OF SUNRISE POINT, KEY LARGO 15 HAVING PROPERTY IDENTIFICATION NU.iBER(S) 00484390- 16 000000 AND 00484400-000000 AS REQUESTED BY FRANK PLA, c 17 UNTIL OC7'OBER 17,2022 FOR BUILDING PERrNIIT ISSUANCE. 4 is a 19 WHEREAS,the State of Florida and all local so%-crnrncnts in the Florida Keys(each subject to 20 Area of Critical State Concern mandates relating to housing affordability) recognize the need for 21 affordable housing throughout the state and particularly in the Florida Keys where developable land for a 22 housing is extremely limited and expensive;and 23 24 WHEREAS.the challenge of providing affordable housing opportunities in the Florida Keys is 25 one requiring sensible and responsive use of residential unit allocations, including implementation of N 26 long-term preservation mechanisms;and 27 0 28 WHEREAS, due consideration should b given to relevant factors such as the capacity for 0 e 29 allocation recipients to promptly transform allocation awards,reservations into finished and occupied 30 affordableiworlcforce housing units;and 31 32 WHEREAS,Section 138-24(b)(2) of the Monroe County Land Development Code allows 33 the BOCC to authorize: reservations for "specific affordable or employee housing projects 34 participating in a federal/state housinS financial assistance or tax credit program or reeciving some o 35 form of direct financial assistance from the county upon written request from the project sponsor and �. 36 approved by resolution of the Board of County Commissioners,'and 37 0 38 WHEREAS, South Cliff Holdings, LLC are proposing to develop the properties with twenty- � 39 eight(28)affordable employee housing units;and 40 41 WHEREAS, the reservation of affordable housing allocations for the anticipated project does E 42 not exempt the project from applicable requirements for the Monroe County Land Development � 43 Regulations,Building Code and other regulatory requirements.and u a t F?3t:EC8tf?g 314 `3098 Doc.#2390470 Page Number: 20 of 25 r t�SaC U J 1 WHEREAS,South Cliff Holdings,LLC shall obtain all required approvals from the Monroe 2 County Planning&Environmental Resources Department for the project;and 2 3 W 4 WHEREAS, South Cliff Holdings, LLC shall obtain permits for the affordable housing; 5 dwelling units by October 17,2022; if the permit for a reserved ROGO allocation housing unit is not s 6 issued by that time,the allocation%01 revert to the County; 0 7 W 8 NOW, THEREFORE, BE IT RESOLVED BY TIME BOARD OF COUNTY w 9 CO'NOUSSIONERS OF 1•IONROE COUNTY,FLORIDA: e 10 11 Section 1: The foregoing; recitals are true and correct, and are hereby ir:corporated as if m 12 fully set forth herein. ut 13 14 Section z The Monroe County Planning Department shall reserve twenty-eight(2.8)affordable }= 15 ROGO allocations (14 low income and 14 median Income), for the project at 95295 Overseas > 16 Highway,Sectiori 13,Township 62,Range 38 Part Tract 6,Soutitcliff Estates, Key Largo, having 17 Property Identification Number 00483370-000100,and Lots I &2,Block 1 Revised Plat of Sunrise IS Point Key Largo,have Property Identification Number(s)00484390-000000 and 00484400-000000 0 19 until October 17,2022. w 20 'o 21 Section 3; The developer must obtain the building permits for tite twenty-eight (28) 22 affordable/employee housing on or before October 17,2022. o 23 0 `o 24 Section 4: The developer shall comply with all Monroe County requirements,all applicable q 25 Building Code requirements,and any other oversight agencies. , 26 ° s 27 Section S; The Planning and Building Department Staff is hereby authorized to process 28 expeditiously permit related applications for the above referenced project when received. 29 Ce 30 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,Florida 0 31 at a regular meeting held on the 15th day of June,2022. O 32 m 33 C3 Mayor David Rice Yos w' 34 c w Mayor Pro Tem Craig Cates Yeti c 35 >= Commissioner Michelle Coldiron Yes 0 36 Commissioner James Scholl Yes l it,: `" L,-r� C ommis,-ioner Holly Merrill Rascheincl� Vr*R o 38 �j r 39 - BOARD OF COUNTY COMMISSIONERS OF MONROE n 40 Call =; _ COUNTY,FLORIDA 41 42 ``=' Mayor David c 43 (SEAL) 44 ATTEST EVINMADOK,CL?~ a 033R0$GOUH1.YhT70R"EL tr - , va`p s totta3a: _ m 45 46 AS PUTY RK t, •�w,. 2 Q packet iy� �z 3099 Doc.#2390470 Page Number: 21 of 25 EXHIBIT E 2 �: t 6 MONROE COUNTY, FLORIDA 7 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS 8 RESOLUTION NO. 265 -2021 9 10 A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY 11 COMMISSIONERS WAIVING APPROXIMATELY $211,215 IN 12 BUILDING PERMIT FEES FOR A TOTAL OF 28 AFFORDABLE 13 EMPLOYEE HOUSING DWELLING UNITS COMPRISED OF 14 LOW 14 INCOME AND 14 MEDIAN INCOME, OR BELOW, TO BE 15 CONSTRUCTED ON A PARCELS LOCATED AT 95301 OVERSEAS 16 HIGHWAY, ON KEY LARGO, HAVING REAL ESTATE (RE) NUMBERS 17 00483370-000000, 00484390-000000,AND 00484400-000000. 18 19 WHEREAS, on November 18,2009 the Monroe County Board of County Commissioners 20 ("Board") passed and adopted Ordinance 036-2009, allowing building permit fee waivers for 21 entities building low income housing leveraging state or federal funds, or affordable housing as 22 defined by state statutes; and 23 WHEREAS, on February 10, 2010, the Board passed and adopted Ordinance 004-2010, 24 allowing waivers for housing for households up to 120% of median income in Monroe County. 25 Housing exceeding 120% may also apply for a waiver if the specific project for development is 26 being subsidized with or is leveraging state or federal funding; and 27 WHEREAS, on March 17,2021,the Board passed and adopted Resolution No. 116-2021, 28 reserving 28 affordable housing allocations (14 low income and 14 median income) on the subject 29 parcels,until July 17, 2022 for building permit issuance; and 30 WHEREAS, on July 30, 2022 Frank Pla, Authorized Member for Applicant South Cliff 31 Holdings, LLC submitted the Application for Building Permit Fee Waiver. The legislative intent 32 of this Resolution is that the instant waiver shall apply to the building permit applicant of record; 33 and 34 WHEREAS, Monroe County Code Section 6-108(e) allows the Board approval for 35 waivers of building permit fees for affordable housing which have a Development Order in effect. 36 The Applicant of Record is requesting a building permit fee waiver of approximately $211,215 to 37 construct 11 multifamily buildings comprised of 12 one bedroom, one bathroom units; 12 two Page 1 of 2 n 3100 AF Doc.#2390470 Page Number: 22 of 25 38 bedroom,two and one-half bathroom units;and four(4)three bedroom,two and one half bathroom 39 units at 95301 Overseas Highway on Key Largo. 40 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY 41 COMMISSIONERS OF MONROE COUNTY,FLORIDA,THAT: 42 The foregoing recitals are true and correct and are hereby incorporated as if fully stated 43 herein; and 44 Building permit fees are waived pursuant to Monroe County Code Section 6-108(e) for the 45 multi-family buildings comprising the 28 affordable housing units described herein with the 46 condition that evidence of an Affordable Housing Deed Restriction(s) accepted and/or approved 47 by both the Senior Director of Planning & Environmental Services and the Office of the County 48 Attorney and recorded in the Public Records of Monroe County, Florida shall be provided to the 49 Building Department and said permits are issued no later than July 17, 2022. 50 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, 51 Florida, at a regular meeting held on the 18t11 day of August,2021. 52 Mayor Michelle Coldiron Yes ® Mayor Pro Ten:David Rice Yes �3 Commissioner Craig Cates Yes s Commissioner Eddie Martinez Yes s Commissioner Mike Forster Absent 59 T.) BOARD OF COUNTY COMMISSIONERS 60 Attest: KVIN MADOK, Clerk OF MONROE COU �.., 61 62 By BY "U'-fl(],,Ifrjw 63 As DepUy Clerk Mayor Michelle Coldiron LL PVTROECOUNTYATCORNEY C-; t-- Ae Leo* o-as To r• aau ^�, SCULL ASSISTANT COUNTY ATTORNF.Y Ln 08/20/21 ZD Page 2 of 2 A 3101 W Doc.#2390470 Page Number: 23 of 25 EXHIBIT F 2 d Ti1r r23- :. 4 5 zw'� 6 MONROE COUNTY, FLORIDA 7 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS 8 RESOLUTION NO. 201 -2022 9 10 A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY 11 COMMSSIONERS EXTENDING THE WAIVER OF APPROXIMATELY 12 $211,215 IN BUILDING PERMIT FEES FOR A TOTAL OF 28 13 AFFORDABLE EMPLOYEE HOUSING DWELLING UNITS 14 COMPRISED OF 14 LOW INCOME AND 14 MEDIAN INCOME, OR 15 BELOW, TO BE CONSTRUCTED ON A PARCELS LOCATED AT 95301 16 OVERSEAS HIGHWAY,ON KEY LARGO,HAVING REAL ESTATE (RE) 17 NUMBERS 00483370-000000, 00484390-000000, AND 00484400-000000. 18 19 WHEREAS, on November 18, 2009 the Monroe County Board of County Commissioners 20 ("Board") passed and adopted Ordinance 036-2009, allowing building permit fee waivers for 21 entities building low income housing leveraging state or federal funds, or affordable housing as 22 defined by state statutes; and 23 WHEREAS, on February 10, 2010, the Board passed and adopted Ordinance 004-2010, 24 allowing waivers for Housing for households up to 120% of median income in Monroe County. 25 Housing exceeding 120% may also apply for a waiver if the specific project for development is 26 being subsidized with or is leveraging state or federal funding; and 27 WHEREAS,on March 17, 2021, the Board passed and adopted Resolution No. 116-2021, 28 reserving 28 affordable housing allocations (14 low income and 14 median income)on the subject 29 parcels, until July 17, 2022 for building permit issuance; and 30 WHEREAS, on July 30, 2021 Frank Pla, Authorized Member for Applicant South Cliff 31 Holdings, LLC submitted the Application for Building Permit Fee Waiver. The legislative intent 32 of this Resolution is that the instant waiver shall apply to the building permit applicant of record; 33 and 34 WHEREAS, on June 15, 2022, the Board passed and adopted Resolution No. 171-2022, 35 extending the reservation for 28 affordable housing allocations (14 low income and 14 median 36 income) on the subject parcels, until October 17, 2022 for building permit issuance; and 37 Page 1 of 2 3102 1W Doc.#2390470 Page Number: 24 of 25 38 39 WHEREAS, Monroe County Code Section 6-108(e) allows the Board approval for 40 waivers of building permit fees for affordable housing which have a Development Order in effect. 41 The Applicant of Record is requesting a building permit fee waiver of approximately$211,215 to 42 construct 11 multifamily buildings comprised of 12 one bedroom, one bathroom units; 12 two 43 bedroom,two and one-half bathroom units;and four(4)three bedroom,two and one half bathroom 44 units at 95301 Overseas Highway on Key Largo. 45 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY 46 COMMISSIONERS OF MONROE COUNTY,FLORIDA,THAT: 47 The foregoing recitals are true and correct and are hereby incorporated as if fully stated 48 herein; and 49 Building permit fees are waived pursuant to Monroe County Code Section 6-108(e) for the 50 multi-family buildings comprising the 28 affordable housing units described herein with the 51 condition that evidence of an Affordable Housing Deed Restriction(s) accepted and/or approved 52 by both the Senior Director of Planning & Environmental Services and the Office of the County 53 Attorney and recorded in the Public Records of Monroe County, Florida shall be provided to the 54 Building Department. 55 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, 56 Florida, at a regular meeting held on the 20th day of July, 2022. 57 Mayor David Rice Yes 58 �' ' Mayor Pro Tern Craig Cates Yes 59 2 �" Commissioner Michelle Coldiron Yes 60 Commissioner James Scholl Yes 61 Commissioner Holly Merrill Raschein Yes 62 63 •9�..-.f �`�r r 64 (SEA ""'° "'` BOARD OF COUNTY COMMISSIONERS 65 Attest: KEVIN MADOK, Clerk OF MONROE COUNTY,FLORIDA 66 ` 67 By ( By 68 CD As DQj.TULy Cler Mayor David Ric 69 J L .;. _ •J� MON ROE;COU NTY.ATTORNEY' APPR.QVEO'M TO FORM: L�C' �4. KELLY DUGAN AssisTANT COUNTY.ATTDRNEY 7 i DATE: JllIy5,2022 70�? `L Page 2 of 2 k_ A 3103 Doc. #2390470 Page Number: 25 of 25 MONROE COUNTY, FLORIDA ACCEPTANCE OF EMPLOYEE HOUSING DEED RESTRICTION For-Building Permit Applications: 21301890; 21301889; 21301888; 22300472; 22300471; 22300470; 22300469; 22300468; 22300467; 22300466; and 22300465" In Witness Whereof, Grantee accepts the Employee Housing Deed Restriction granted above and executes this instrument the date set forth below. Grantee Monroe County,Florida: Ff 'Ta >rnr1 First Witness(Print Name) Senior Director,Monroe Cou n ylanning and Environmental Resources Department(Print First Witnes ( ignature) Senior Director,Monroe County Planning and Environmental Resources Department (Signature) Second Witness (Print Name) Date(Print) Approved as to form and sufficiency. Second Witnes Si nature) ;/PC STATE OF COUNTY IC�h Tyson Smith, Esq. Date: September 7,2622- Sworn to and subscribed before me, by means of)(physical +presence or❑ online notarization this 1'rn day of 3er4em- ,2aa,by E I I "r who i personally known to ni OR produced as identification. Signature of Notary c ;tiaY'o�^.., ALISON J.SMITH _°: �� Notary Puhlic State of]diCommission N HH 155 P`�,dMy Comm.Expires Jul 1Print, Type or Stamp Commissioned Name of Notary Public Bonded through National Nota My commission expires: 1 3104 4' 1 2 RESOLUTION NO. 116 -2021 3 4 A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY 5 COMMISSIONERS APPROVING THE RESERVATION OF TWENTY- 6 EIGHT (28) AFFORDABLE ROGO ALLOCATIONS (14 LOW 7 INCOME AND 14 MEDIAN) FOR PROPOSED EMPLOYEE 8 HOUSING DWELLING UNITS ON PROPERTY OWNED BY RIEHL 9 ALICE LIVING TRUST LOCATED 95301 OVERSEAS HIGHWAY, 10 SECTION 13, TOWNSHIP 62, RANGE 38 PART TRACT 6, 11 SOUTHCLIFF ESTATES, KEY LARGO, APPROXIMATE MILE l2 MARKER 95.5, HAVING: PROPERTY IDENTIFICATION NUMBER 13 00483370-000000, AND PROPERTY OWNED BY ARMANDO & 14 MARIA C. CABRERA, FOR PROPERTY LOCATED ON LOTS 1 & 2, 15 BLOCK 1 REVISED PLAT OF SUNRISE POINT, KEY LARGO 16 HAVING PROPERTY IDENTIFICATION NUMBER(S) 00484390- 17 000000 AND 00484400-000000 AS REQUESTED BY FRANK PLA, AS 18 AUTHORIZED BY THE PROPERTY OWNERS, RIEHL ALICE 19 LIVING TRUST AND ARMANDO & MARIA C. CABRERA, UNTIL 20 JULY 17, 2022 FOR BUILDING PERMIT ISSUANCE. 21 22 WHEREAS,the Stale of Florida and all local governments in the Florida Keys (each subject to 23 Area of Critical State Concern mandates relating to housing affordability) recognize the need for 24 affordable housing throughout the state and particularly in the Florida Keys where developable land for 25 housing is extremely limited and expensive; and 26 27 WHEREAS, the challenge of providing affordable housing opportunities in the Florida Keys is 28 one requiring sensible and responsive use of residential unit allocations. including implementation of 29 long-term preservation mechanisms; and 30 31 WHEREAS, due consideration should be given to relevant factors such as the capacity for 32 allocation recipients to promptly transform allocation awardslreservations into finished and occupied 33 affordable/workforce housing units; and a4 -. - 35 WHEREAS. Section 138-24(b)(2) of the Monroe County Land Development Code allows 36 the BOCC to authorize reservations for "specific affordable or employee housing projects participating 37 in a federal/state housing financial assistance or tax credit program or receiving some form of direct 38 financial assistance from the county upon written request from the project sponsor and approved by 39 resolution of the Board of County Commissioners," and 40 41 WHEREAS, Frank Pla, as authorized by the current property owners, Riehl Alice Living Trust 42 and Armando & Maria C Cabrera, are proposing to develop the properties with twenty-eight (28) 43 affordable employee housing units:and I 3105 1 2 WHEREAS,(lie reservation of affordable housing allocations for the anticipated project does not 3 exempt the project from applicable requirements for the Monroe County Land Development Regulations, 4 Building Code and other regulatory requirements; and 5 6 WHEREAS, Riehl Alice Living 'Trust and Armando & Maria C Cabrera shall obtain all 7 required approvals from the Monroe Count• Planning & Environmental Resources Department for the 8 project_and 9 10 WHEREAS, Riehl Alice living Trust and Armando & Maria C Cabrera shall obtain permits 1 I for the affordable housing dwelling units by July 17,2022, if the permit for a reserved ROGO allocation 12 housing unit is not issued by that time.the allocation will revert to the County: 13 14 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY 15 COMMISSIONERS OF MONROE COUNTY, FLORIDA: 16 17 Section 1: The foregoing recitals are true and correct,and are hereby incorporated as if fully 18 set forth herein. 19 20 Section 2: Tile Monroe Count), Planning Department shall reserve twenty-eight (28) affordable 21 ROGO allocations(14 low income and 14 median income), for the project at 95301 Overseas Highway, 22 Section 13. Township 62, Range 38 Part Tract 6, Soutlicliff Estates, Key Largo, (laving Property 23 identification Number 00483370-000000, and Lots I & 2, Block 1 Revised Plat of Sunrise Point Key 24 Largo, have Property identification Number(s) 00484390-000000 and 00484400-000000 until July 25 17, 2022. 26 27 Section 3: The developer must obtain the building permits for the twenty-eight (28) 28 affordable/employee housing units on or before June 17"', 2022. 29 30 Section 4: "rhe developer shall comply with all Monroe County requirements, all applicable 31 Building Code requirements, and any other oversight agencies. 32 33 Section 5: The Planning and Building Department Staff is hereby authorized to process 34 expeditiously pennit related applications for the above referenced project when received. 35 36 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, 37 Florida at a regular meeting held on the 17th day of March, 2021. 38 39 Mayor Michelle Coldiron _Yes 40 Mayor Pro Tern David Rice YeS 41 Comm i ss ioner Crai g Cates Yes 42 Commissioner Eddie Martinez Yes_ 43 Commissioner Mike Forster Yes 44 45 2 of 3 3106 1 2 BOARD OF COUNTY COMMISSIONERS OF MONROE 3 COUNTY, FLORIDA _ 4 � iSl' .. 1 Mayor Michelle Coldiron N MADOK, CLERK MONROE COJWY ATTORNEY APP TO FORM 13 AS DEPU Y CLERK PETEAMORRe ASSISTANT COUNTY ATTORNEY ❑ate: 2/19/21 _1 4 -7 i -� i} 3 of 3 3107 f- �'11 1"t 2 4 u i4 u a 5 " 6 MONROE COUNTY, FLORIDA 7 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS 8 RESOLUTION NO. 265 -2021 9 10 A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY 11 COMMISSIONERS WAIVING APPROXIMATELY $211,215 IN 12 BUILDING PERMIT FEES FOR A TOTAL OF 28 AFFORDABLE 13 EMPLOYEE HOUSING DWELLING UNITS COMPRISED OF 14 LOW 14 INCOME AND 14 MEDIAN INCOME, OR BELOW, TO BE 15 CONSTRUCTED ON A PARCELS LOCATED AT 95301 OVERSEAS 16 HIGHWAY, ON KEY LARGO, HAVING REAL ESTATE (RE) NUMBERS 17 00483370-000000, 00484390-000000,AND 00484400-000000. 18 19 WHEREAS, on November 18,2009 the Monroe County Board of County Commissioners 20 ("Board") passed and adopted Ordinance 036-2009, allowing building permit fee waivers for 21 entities building low income housing leveraging state or federal funds, or affordable housing as 22 defined by state statutes; and 23 WHEREAS, on February 10, 2010, the Board passed and adopted Ordinance 004-2010, 24 allowing waivers for housing for households up to 120% of median income in Monroe County. 25 Housing exceeding 120% may also apply for a waiver if the specific project for development is 26 being subsidized with or is leveraging state or federal funding; and 27 WHEREAS, on March 17,2021,the Board passed and adopted Resolution No. 116-2021, 28 reserving 28 affordable housing allocations (14 low income and 14 median income) on the subject 29 parcels, until July 17, 2022 for building permit issuance; and 30 WHEREAS, on July 30, 2022 Frank Pla, Authorized Member for Applicant South Cliff 31 Holdings, LLC submitted the Application for Building Permit Fee Waiver. The legislative intent 32 of this Resolution is that the instant waiver shall apply to the building permit applicant of record; 33 and 34 WHEREAS, Monroe County Code Section 6-108(e) allows the Board approval for 35 waivers of building permit fees for affordable housing which have a Development Order in effect. 36 The Applicant of Record is requesting a building permit fee waiver of approximately $211,215 to 37 construct 11 multifamily buildings comprised of 12 one bedroom, one bathroom units; 12 two Page 1 of 2 3108 38 bedroom,two and one-halfbathroora'r units;and four(4)three bedroom, two and one half bathroom, 39 awaits at,95301 Overseas 11i ;hwway on Key 1.,ar ca. 0 NOW, THEREFORE, :BE 11' RESOLVED BV ' Il:E BOARD OF COUN"'I 41 COMMISSIONERS OF M(.)NROE COUNTY, FLORIDA, THAT: 42 'rhe foregoing recitals are trace and correct and are hereby incorporated as if fully staated. 43 herein; and 44 I4nild i ng permit lees are waived pursaaant:to M011r0e C..OUrfly Code Section -108(e) for the 45 ra ulti-fiarnily buildings comprising the: 28 affordable 110LISing marts described herein with tlae 46 condition that evidence of an Affordable Housing Deed Restriction(s) ,accepted and/or approved 7 by both the Senior Director of Planning lmvironmental Services and the C tflice of the County 48 Attorney and recorded in the 1"arbl'ie Records of Monroe County, I'lorida steal I he provided to the 9 1:laaildin; Department nand said permits are issued no later than July 17, '022. 0 PASSE,1) AND AI + wP 1 E1I by the Board cw4'C.aunty t~onunissioners of Monroe Cbunty, 1 1-1oridaa, at a regular meeting held can the 1 `u' day of AUgust, 202` , 52 Mayor Michelle C"oUr n Yes Mayor Pro den; David Rice; ..-Yes, x �".a:rn�raaaw+srnuaa�r°C',raar Cates ""r"es.e C:`c,ammissioner Eddie Martinez "des_ I C onamissioner Mike Forster A bsent. 59 BOARD 01 C:"O[1N li'Y COMMISSIONERS 60 VIN 4v1�y1�OK Clerk OFI''w�C�1^w1ROI'°. C"C�t.t � .a Attest; 1 61 2 ByUu A By 63 As Dep 'y Clerk Mayor Michelle Coldiron. �„ p aw m:•taw wow wu' s�ne;w s ' . .H �dtl➢„5i:arl. ,�"oab I^`C NtwE; o , ASSN 1'A,"1`&'6 4A'4i"w'k"Y All(NRN1"A' 08/20/21 Page 2 of 3109 NOTICE OF PUBLIC HEARING TO CONSIDER THE PURCHASE OF REAL PROPERTY FOR AFFORDABLE HOUSING NOTICE IS HEREBY GIVEN TO WHOM IT MAY CONCERN that on March 20, 2024, at 9:00 A.M., or as soon thereafter as the matter may be heard, a Public Meeting will be held at the Nelson Government Center, 102050 Overseas Hwy, Key Largo, FL 33037, pursuant to Florida Statute 125.355(1)(a),the Board of County Commissioners of Monroe County,Florida,intends to consider approval of the purchase of the following property in Monroe County, Florida: A PURCHASE OF REAL PROPERTY FOR PROPOSED EMPLOYEE HOUSING DWELLING UNITS OWNED BY SOUTH CLIFF HOLDINGS LOCATED ON LOTS 1 & 2,BLOCK 1 REVISED PLAT OF SUNRISE POINT,KEY LARGO,HAVING PROPERTY IDENTIFICATION NUMBER 00484390-000000. 3110 APPRAISAL REPORT Property Located At: SOUTHCLIFF ESTATES 95295 OVERSEAS HIGHWAY KEY LARGO,FLORIDA 33037 Property Type: MULTI-FAMILY BUILDINGS WITH 28 DESIGNATED AFFORDABLE HOUSING UNITS Prepared For: MR.KEVIN G.WILSON,P.E. MONROE COUNTY ASSISTANT COUNTY ADMINISTRATOR 102050 OVERSEAS HIGHWAY, SUITE 213 KEY LARGO,FL 33037 "As Is" Valuation Date: FEBRUARY 20, 2024 "As Proposed" Valuation Date: DECEMBER 31, 2025 Prepared By: James E.Wilson, MAI, MRICS, President Maria Virginia Wilson State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 2686 APPRAISAL COMPANY OF KEY WEST 3706 N. Roosevelt Boulevard, Suite 208 Key West, Florida 33040 Our File No.: 100-24 3111 APPRAISAL- Co . Officc(3,05),296-4563 :ivy 1wol ft 33040 %i° io j rr xwmmmmm wwwmwwa E-juuulp.p� 4racy�wp,�p�uuis�rN , �a March 20, 2024 Mr. Kevin G. Wilson, P.E. Monroe County Assistant County Administrator 102050 Overseas Highway, Suite 213 Key Largo, FL 33037 Email: Wilson-Kevingl onroeCounty-FL.Gov Subject: Appraisal Report: "As Is" Southcliff Estates based on Entitlements for 28 Affordable Housing Units Plus Infrastructure and Construction Completed the February 20, 2024 95295 Overseas Highway Key Largo, Florida 33037 Prospective Upon Completion of Construction Proposed Multi-Family Building with 28 Affordable Housing Units Southcliff Estates 95295 Overseas Highway Key Largo, Florida 33037 Our File No.: 100-24 Dear Mr. Wilson: We have personally examined and appraised the above property for the purpose of reporting to you our opinion of the "As Is"Market Value of the Fee Simple Estate of the subject property, as of February 20, 2024 and the "As Prospective"Market Value Upon Completion of the Fee Simple Estate of the subject property, as of December 31, 2025. The reader is advised to review the Scope of Work section within this report. The assumptions and the real estate referenced above are more clearly defined in the general and extraordinary assumptions and limiting conditions and in the property description section of this report. The attached appraisal report has been prepared to comply with my understanding of the requirements of the Uniform Standards of Professional Appraisal Practice. According to the survey provided,performed by Form Tech Land Surveying, 12995 S.W.42"dStreet, Suite 3,Miami,Florida, dated February 2, 2023,the subject site consists of an irregular-shaped site containing 85,306 square feet or 1.96 acres. The subject site include approximately 212 linear feet along the southeasterly side of Overseas Highway. 3112 Mr. Kevin G. Wilson, P.E. Monroe County Assistant County Administrator March 20, 2024 Page 2 At the time of the site visit, the subject property included three structures under construction. The proposed project will consist of 28 employee housing units, as designated under the affordable guidelines set forth by Monroe County, Florida. The appraisers have relied upon plans and specifications created by Keys Engineering, Daryle L. Osborn, 91700 Suite 1, Tavernier, Florida 33070. In addition, the appraisers referenced floor plans, prepared by T.E.S.T Civil Engineering Design& Consulting, 1790 Highway AIA, Suite 209, Satellite Beach,Florida 32937. The subject property will consist of 28 affordable employee housing units. The project will include a total of 12 buildings, eleven housing dwellings and one office/storage building. The following chart depicts the unit mix: "Proposed" Building Improvements Site Plan Total Proj. Bldg. Bldg. # Bldg. Sq.Ft. No.of No.of Year Nos. Type of Units Use/Tylie Sq Ft. Porches Bedrms Baths Built 1 A 4 Four:1 Bedroom 1 Bath 2,4441 160 4 4 2024 2 A 4 Four:1 Bedroorif 1 Bath 2,444 160 4 4 2024 3 A 4 Four:1 Bedroorif 1 Bath 2,444 160 4 4 2024 4 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 5 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 6 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 2161 4 4.5 1 2025 7 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 8 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 9 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 10 C 2 Two:3 Bedrooms/2.5 Bathrooms 2,444 220 6 4.5 2025 11 C 2 Two:3 Bedrooms/2.5 Bathrooms 2,444 220 6 4.5 2025 28 12 Office Office/Storage 879 0 2-Fix 1 2025 Gross Building Area: 26,923 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. The Fee Simple Interest is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and terms. The Leased Fee Interest is the ownership interest held by the Lessor,which includes the right to receive the contract rent specified in the lease. At the time of the site visit, the subject property was not encumbered by any long term leases. The proposed plan for the subj ect property is to lease the residential apartments on an annual basis. Due to the desperate need for affordable or workforce housing, market rental rates have skyrocketed and affordable units are rented immediately with waiting lists for most complexes. Therefore,the appraisers anticipate that the new apartments will be fully leased upon completion of the property and achieve stabilized occupancy. 3113 Mr. Kevin G. Wilson, P.E. Monroe County Assistant County Administrator March 20, 2024 Page 3 It is our opinion,based on analysis of market data, site visit and walk through of the subject property and research, plus review of the construction site plan, floor plans, construction costs, that our opinion of the As Is "Market Value of the Fee Simple Estate in the Subject Property based on entitlements for 28 affordable housing units, infrastructure in place plus partial construction of three of the subj ect buildings, located at 95295 Overseas Highway, Key Largo, Monroe County,Florida, subject to definitions, assumptions and limiting conditions, as of February 20, 2024 is: THREE MILLION EIGHT HUNDRED FORTY THOUSAND DOLLARS ($3,840,000) Furthermore, it is our opinion, based on analysis of market data, site visit and walk through of the subject property and research, plus review of the construction site plan, floor plans, construction costs, and construction time line for the proposed multi-family buildings that our opinion of the Prospective Market Value of the Fee Simple Interest in the Subject Property Upon Completion of Construction based on 28 affordable housing units,located at 95295 Overseas Highway,Key Largo, Monroe County,Florida,subj ectto definitions,assumptions and limiting conditions,as of December 1, 2025 is: ELEVEN MILLION TWO HUNDRED THOUSAND DOLLARS ($11,200,000) 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. 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. The appraisers are not responsible for unauthorized use of 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. 3114 Mr. Kevin G. Wilson, P.E. Monroe County Assistant County Administrator March 20, 2024 Page 4 If you have any questions regarding this appraisal report, please feel free to contact us. This transmittal letter must remain attached to the report, which contains 124 pages including related exhibits, in order for the value opinion set forth to be considered valid. Respectfully submitted, James E. Wilson, MAI, MRICS, President Maria Virginia Wilson State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ 2686 email: iim(-&,fla-kevsappraisals.com Report Attached C:\Comm-24\l00-24\New folder\Comm-24-100.wpd 3115 An Appppraisal Repport 95295 Overseas Hig�hwaayy, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111�1111111111111111111111111111111111111111111111111III�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII TABLE OF CONTENTS COVER PAGE LETTER OF TRANSMITTAL SUMMARY OF FACTS AND CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 SUBJECT PROPERTY PHOTOGRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 STATEMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 FLORIDA KEYS MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 LOCATION MAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 AERIAL PLAT MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 PURPOSE& INTENDED USE OF THE APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 LEGAL DESCRIPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . 20 MARKETING TIME/EXPOSURE TIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 OWNERSHIP/SALES HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 ZONING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 REAL ESTATE TAX AND ASSESSMENT AND BURDEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 DESCRIPTION OF THE SUBJECT PROPERTY/HISTORY OF THE SUBJECT . . . . . . . . . . . . . 34 SURVEY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 FLOOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 SITE PLAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Appraisal Company of Key West Page 1 3116 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll TABLE OF CONTENTS (Continued) BUILDING IMPROVEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 HIGHEST AND BEST USE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 SCOPEOF WORK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 COST APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 INCOME APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 THE SALES COMPARISON APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 RECONCILIATION AND CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 CERTIFICATE OF APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 ASSUMPTIONS AND LIMITING CONDITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 ADDENDA QUALIFICATIONS OF APPRAISER JAMES E. WILSON . . . . . . . . . . . . . . . . . . . . . . . 117 QUALIFICATIONS OF APPRAISER MARIA VIRGINIA WILSON . . . . . . . . . . . . . . . . 121 Appraisal Company of Key West Page 2 3117 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll SUMMARY OF FACTS AND CONCLUSIONS Subject Property Address: Southcliff Estates 95295 Overseas Highway Key Largo, Florida 33037 Client/Intended User: Mr. Kevin G. Wilson, P.E. Monroe County Assistant County Administrator 102050 Overseas Highway, Suite 213 Key Largo, FL 33037 Property Type: "As Is" Land with Partially Constructed Duplexes and Entitlements for 28 Residential Units,subj ect to Monroe County,Florida Affordable Housing Guidelines "Prospective" 11 Buildings Containing a total of 28 Residential Apartments 1 Office/Storage Building Land Size: 85,306 Square Feet or 1.96 Acres of Upland Zoning: SC, Suburban Commercial, Monroe County Future Land Use: MC, Mixed Use/Commercial Flood Zone: Map No. 12087C0936K; February 18, 2005; Zone, AE Elev. 8 Improvement Description: "Prospective" "Proposed" Building Improvements Site Plan Total Proj. Bldg. Bldg. # Bldg. Sq.Ft. No.of No.of Year Nos. Type ofUnits Use/Type S Fk Porches Bedrms Baths Built 1 A 4 Four:1 Bedroom/1 Bath 2,444 160 4 4 2024 2 A 4 Four:1 Bedroom/1 Bath 2,444 160 4 4 2024 3 A 4 Four:1 Bedroom/1 Bath 2,444 160 4 4 2024 4 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 5 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 6 B 2 Two:2 Bedroom/2.5 Bathrooms 21304 216 4 4.5 2025 7 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 8 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 9 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 10 C 2 Two:3 Bedrooms/2.5 Bathrooms 2,444 220 6 4.5 2025 11 C 2 Two:3 Bedrooms/2.5 Bathrooms 2,444 220 6 4.5 2025 28 12 Office Office/Storage 1 879 0 1 2-Fix 2025 Gross Building Area: 1 26,923 Appraisal Company of Key West Page 3 3118 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll "As Is" Values: Cost Approach: Not Applicable Income Approach: Not Applicable Sales Comparison Approach: $3,840,000 "As Is" Market Value as of February 20,2024 (Rounded): $3,840,000 a "Prospective" Values: Cost Approach: $13,200,000 Income Approach: $9,700,000 Sales Comparison Approach: $11,200,000 Prospective Market Value Upon Completion of Construction as of December 1,2025 (Rounded): $11,200,000 Highest and Best Use: Prospective, Three Quadraplex Buildings, Eight Duplex Buildings Containing 28 Affordable Housing Units. Date of"As Is" Valuation: February 20, 2024 Date of"Prospective" Valuation: December 1, 2025 Date of Site Visit: February 20, 2024 Date of Report: March 20, 2024 Marketing Time: 6 to 12 Months based on a list price within 5 percent of appraised value and based on stable economic conditions. Exposure Time: Equal to present marketing time. Support for the marketing and exposure time estimate is discussed within the body of this report. Appraisal Company of Key West Page 4 3119 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Extraordinary Assumptions: Permitting will be acquired Construction costs to remain stable Hypothetical Assumptions: None Appraisal Company of Key West Page 5 3120 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII AN 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 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. CLIENT/ INTENDED USER: Mr. Kevin G. Wilson, P.E. Monroe County Assistant County Administrator 102050 Overseas Highway, Suite 213 Key Largo, FL 33037 APPRAISERS: James E. Wilson, MAI, MRICS, President State-certified general real estate appraiser RZ 2164 Maria Virginia Wilson State-certified general real estate appraiser RZ 2686 SUBJECT: Southcliff Estates 95295 Overseas Highway Key Largo, Florida 33037 Appraisal Company of Key West Page 6 3121 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll PHOTOGRAPHS OF SUBJECT PROPERTY a. Street View of Subject Property Looking Southwesterly along Overseas Highway Street View of Subject Property Looking Northeasterly along Overseas Highway Appraisal Company of Key West Page 7 3122 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll PHOTOGRAPHS OF SUBJECT PROPERTY t! Al R Street View of Subject Property Looking Southeasterly along Snapper Lane 011 i UDC � � "��f✓��1/�i/�/��,. View of Subject Property Appraisal Company of Key West Page 8 3123 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll PHOTOGRAPHS OF SUBJECT PROPERTY tfr� 1 View of Subject Property F o. !P'xlla r s View of Subject Property Appraisal Company of Key West Page 9 3124 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll SUBJECT PROPERTY J ��r View of Subject Property View of Subject Property Appraisal Company of Key West Page 10 3125 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll PHOTOGRAPHS OF SUBJECT PROPERTY t p c/ w�✓ r/��wrlil��/�llr�� „��i� I View of Subject Property 11 F View of Subject Property Appraisal Company of Key West Page 11 3126 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll PHOTOGRAPHS OF SUBJECT PROPERTY View of Subject Property ra k � r W W I View of Subject Property Appraisal Company of Key West Page 12 3127 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII STATE MAP Appraisal Company of Key West Page 13 3128 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII FLORIDA KEYS MAP .-Kay Ua go XMI 9"?-1.06 .,T&Y.rarl."r Mir.... 91-9:z .9,raek.4rry KxNy MM23ra a rr lwwra JA I I,Fe 4%eat,. M9at,e:�.c N_xxm}rc M"�7g MMd3e7 cy '� �° e� S�c,nr�ra• Mat!!u1Jrri'4,re� 1¢,^W M8M';'rr k� T.�caytsxrp MP �.�r �a "`LxrerM, Nf"rr,y MMCPetrw� -..G =Fy Key M9M'S'r-64) `.:c..aw .�Key Colorq MaaC,h htMww", ..V,°re a Xes••y M=,.'aatbion MM50 111corare. Koy M;MVaS.. rn•rr&1 Br7d#ya �a :tarnr,u fx'1.raeu; ,d YMMy �P 01 Za e,,,ag�xremez�arye.r�rk �M =b 25 �L✓xNas i" °+'%x.Y�mi:t4�JY\]�' Pt..aay MM. 1••L"Y" Sa&11,6hurar„le KryEro"M 1'}-•'bra 01A 0.D.a^iMICI, MM ldy 'E4ar 1 C".h.M..cax MMM 7-6 Key Ydaara t KM fl-ty Appraisal Company of Key West Page 14 3129 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII LOCATION MAP Fn 11 i VIA JF:"rF 'rYMa d V i? Yt � 0 um r � ..�, .w�a,.�� tflf: rota ��I��9vPI, � � p„ N fop III .ui&III IINra A N li r� d". � IN Bay Hzubw Ur N Day, ,a tt l 111, 10 f �I ' �fill '`"664, i of fll �w Appraisal Company of Key West Page 15 3130 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII AERIAL PLAT MAP Monroe County L � Overview Legend Cermler-Time Easinnents 6 � Hoolks LoI Lines C;1 r, Road Center u Cundo Bud d1ag dew hJamra� ubdivisions I1;samcells �'1'�a ' � � � � 4"��°Vtl✓ 1 Iy` I ` li Q lid r� j 5 Pare411D 0()484390-00J7d1O() AJtematetD 1,:594008 Owf*rAddress`a(3l1TNi,c I,If=Ilt'7t,1.1P1t:.1�y�..l„ti:: See/Twp/Rng 13162f.H class COMMERCIAL, 1.5 2 7 Shaw Dr Property Address 95h��2�A9.'"0VERSI AS I-1u f�e Largo, 'L 3303 '1 KEY LA1T1:.) pelwsMtr-ict `a"1W K, OriefToA PI ',11,T$,j&2IREV'I$Ff,1 PLAT CST'31,NRISC PONT PFf'3=T1,&LNWW8„Y7 or u T oF PT TR�.!,O�JTI I rf fST5RON.45 KEY l,ARtCjO Description iDR250,5201,22OR282,,209/12C3R411'1C,5jPrJ6GR412•k314/1.5,C)R582,9a6OR2R 08 4,30R540w7"97/98OR748 74�0/41COR795,399 17R1316 128eii 11717Ri;1 50,-10e7;2OR816-1,788,1899°L7R;1,?50,73,q5C3R752C3'1633V34R/SORr2520°163SS'36eRfSOR25W11.1637a"l3t'3R.I5 OR2608449 R2787-WCOR2846-1911112'OR2846-1.91.,Y14ORM,3-3r55s1iEW04-21OR3097001i3"OR31141847 tNol6'r 1'4rat5rcbeu7 ed,u,q�le,p ir;otlgurTY tl,N', MrT�tl��&r,x 11"1 VWQV,n. Tl"t Data.tl Jphrtn.i&&1.11 9,1Xi'74,�PJ J"'.i'I AM Do, pedlry SriJ1mr-"d s:, ,an r�.n Appraisal Company of Key West Page 16 3131 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII PURPOSE, INTENDED USE & INTENDED USERS OF THE APPRAISAL The purpose of this appraisal is to report our opinion of the "As Is"Market Value of the Fee Simple Interest in the Subject Property, as of February 20, 2024. The subject property (land together with the existing improvements) known as Southcliff Estates,95295 Overseas Highway, Key Largo, Florida 33037. In addition,the appraisers reported the "Prospective"Market Value of the Fee Simple Interest in the Subject Property Upon Completion as of December 1, 2025. The values herein do not consider any personal property. The intended use of this appraisal is to provide general information for possible purchase by Monroe County Board of County Commissioners. The intendeduser of the appraisal reportis Mr.Kevin G.Wilson,P.E.,Monroe County Assistant County Administrator, Monroe County Board of County Commissioners and County Staff. 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. PROPERTY RIGHTS APPRAISED 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 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 Leased Fee Interest is an ownership interest held by the landlord,who conveys the rights of use and occupancy to a tenant by lease. The landlord's rights include the right to receive rent and the right of possession at the end of the lease period. LEGAL DESCRIPTION We have made an appraisal report with respect to the subject property for which a metes and bounds legal description was made available from the previously mentioned survey. The legal description is as follows. Appraisal Company of Key West Page 17 3132 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIS,qr,r C,Y care S,RIEPC)R T ......................... d IK, V,f J IK 11Y rIf!,1, 6', 11Ff.k'w I'll, Rlf I tl 011111, rya;3 ........... ........... ........... LOCATION SKETCH ......... DEFINITIONS: 1. Appraisal is the act or process of developing an opinion of value; an opinion of value. 2. Appraisal Report is the written or oral communication of an appraisal; the document transmitted to the client upon completion of an appraisal assignment. Reporting requirements are set forth in Standard 2 of the Uniform Standards of Professional Appraisal Practice. 3. Cash Equivalence is a price expressed in terms of cash,as distinguished from a price expressed totally or partly in terms of the face amounts of notes or other securities that can not be sold at their face amounts. Calculating the cash-equivalent price requires an appraiser to compare transactions involving atypical financing to transactions involving comparable properties financed at typical market terms.1 4. Extraction is a method of estimating land value where in the depreciated cost of the improvements on the improved property is estimated and deducted from the total sale price to arrive at an estimated sale price for the land; most effective when improvement contribute little to the total sale price of the property.2 5. Fee Simple Estate is absolute ownership unencumbered by any other interest, subject only to the governmental limitations imposed by the government powers of taxation, eminent domain, escheat, police power, and taxation.3 Appraisal Company of Key West Page 18 3133 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 6.Leased Fee Interest is an ownership interest held by the landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor(the leased fee owner)and the lessee are specified by contract terms contained within the lease. 7. Market Value is 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 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 own 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." (Source: Code of Federal Regulations, Title 12, Chapter I,Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Appraisal Company of Key West Page 19 3134 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII SUBJECT'S MARKET AREA (NEIGHBORHOOD)ANALYSIS The subj ect property is an interior,parcel with limited highway frontage,located near mile marker 95.3 within the Central Business District of Key Largo. The subject site is located on the southerly side of Overseas Highway, also known as U. S.Highway No. 1,which is the main and only highway connecting the Florida Keys to the mainland. The subject property is situated approximately 95 miles northeasterly from Key West, stretching across 40 bridges. The Florida Keys are a chain of islands extending in a southwesterly direction from the Southern tip of Florida, which are connected by a series of bridges. U.S. Highway No. 1, Overseas Highway provides access to these various islands from the mainland. The Florida Keys extends an estimated 125 miles in length. The subject neighborhood is bordered on the north by the Monroe-Dade County Line, on the east by the Atlantic Ocean, on the west by Florida Bay and the Gulf of Mexico, and on the south by Tavernier and Plantation Key. Overseas Highway divides Key Largo in half,with the subject property located within the northerly half, with access from the north and south-bound lanes. Key Largo contains many residential subdivisions,with commercial uses concentrated along the highway and main thoroughfares. Some areas have been sparsely developed and/or left undeveloped, since much of the large island is native area and environmentally sensitive. Key Largo is known for its water sports and relaxed atmosphere just a short drive from the urban centers of Miami,Fort Lauderdale and the Palm Beaches. Located on the island is the John Pennecamp State Park, which features coral reef trips for snorkelers and scuba divers. Most of the structures are CBS/masonry buildings or smaller single family CBS or frame homes with evidence of mobile homes in some of the older neighborhood subdivisions or where zoning historically permitted mobile homes. Most of the mobile home subdivisions in the area are quite attractive, including the trailer/RV parks within the neighborhood. In other adjacent and nearby subdivisions,the newer homes are frame and CBS construction built-up on"stilts",with elevated floors built on concrete reinforced columns in compliance with flood zone regulations. Most of the Florida Keys are located within a Flood Zone Area, as designated by FEMA. The area's principal land uses are residential and commercial uses with very limited industrial uses. The subject site has direct access from the north- bound lane of U.S. Highway No. 1, a two-way, four lane asphalt paved divided thoroughfare running northeasterly and southwesterly. It is the main artery through the Florida Keys. Public schools in the area include kindergarten through twelfth grade at Key Largo Elementary, Plantation Key School and recently reconstructed,Coral Shores High School,plus classes offered locally by the Florida Keys Community College. Recreational facilities in the area include: John Pennecamp State Park, the Islamorada City Park, Indian Key State Historic Site, plus many marinas, beaches and other watersports locations. Appraisal Company of Key West Page 20 3135 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Police protection is provided by the Monroe County Sheriffs Department and the Florida Highway Patrol. Fire protection is provided by a volunteer fire department. A full service,nonprofit medical and surgical hospital, Mariners Hospital, is located about eight miles southwesterly from the subject property. The hospital was recently completed at its new Tavernier location; it contains 35 medical/surgical beds, a three bed pediatric unit and a four-bed intensive care unit. The Plantation Key Convalescent Center is located in Plantation Key, within one mile of the new hospital facility. Public utilities include electric service provided by the Florida Keys Electric Co-op; potable water is furnished by the Florida Keys Aqueduct Authority,managed by the South Florida Water District. Solid waste collection is provided by a private firm. Sewage service is not publically provided at this time in the subject's area. A connection to a central wastewater system is planned in the future. On-site sewage systems including septic tanks and aerobic systems are typical. In summary, the subject property is located near mile marker 95 within about four miles southeasterly from the Central Business District of Key Largo, the main key in the Upper Keys where there is a concentration of services, employment and shopping. Key Largo has a hub and concentration of commercial retail, services, and office uses. Residential uses are located off the highway; these neighborhoods as well as neighboring communities support the commercial businesses in the area. The surrounding structures are generally well maintained in average to good condition. The considerable amount of automobile traffic along U.S. Highway No. 1 provides good exposure to this area. The neighborhood had undergone an increase in desirability and property values,due in part to improvements with respect to goods and services and its accessibility to the mainland. Tourism, the economic base of Key West and the Florida Keys, has experienced steady growth over the last few decades. 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. 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 other relief as may be necessary and appropriate. Appraisal Company of Key West Page 21 3136 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll General Economic Conditions: The Florida Keys,is the perfect alternative to Caribbean travel;it offers all of the comforts and luxuries of the mainland,yet privacy,full marina facilities, amenities and a tropical setting for vacationers. The Florida Keys have flourished over the past 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. Monroe County has the lowest unemployment rate in the state of Florida. There had been a definite decline in values in the residential housing market during the national recession,anywhere from 30%to 60%,depending on property type,price range and location. However, the residential real estate market has rebound and stabilized toward the end of 2011. Tourism, the economic base of Key West and the Florida Keys, experienced steady growth through the early and mid 2000's. However, between 2006 and 2010, declines were observed due to the national recession, the residential housing slump,the credit crisis and high fuel prices. Stabilization was noted in the residential real estate market in late 2011, with significant increases in 2015 and year-to-date 2022. In fact, Post COVID, 2021 and 2022 indicated record sales prices for residential homes. Tourism and lodging have rebounded with accelerated appreciation throughout the Florida Keys.The"COVID Bump"is beginning to wane,as national recession concerns are at least slowing to stabilizing the markets.Metropolitan areas in Florida with a lot of new construction are seeing declines in activity and prices. Commercial real estate has also been appreciating since 2012 in the Key Largo, Upper Keys market, as well as throughout the Florida Keys. Generally, rents, rent escalators and expense pass-thru's have returned to the level when the market peaked in 2006-2007. The supply of commercial use properties is being rapidly absorbed and the vacancy rates appear to be in decline. Retail rental rates have also rebounded since the last Great Recession and after the COVID-19 lockdowns of 2020. Significant rental increases have been noted since the first quarter of 2022 due to rampant inflation. There has been a large amount of sales activity of high gross sales restaurants through out the Florida Keys over the past five years. Restaurant operations have experienced significant growth in gross revenue in 2021 and a record year of 2022. Year-end 2023 has generally declined as the "Covid Bump" has ended, but still substantially above the steady growth of 2019. Overall inflation and an extended recession are concerns going forward in 2024. Advantages and Disadvantages of Subject Property: Strengths • Good Exposure from both north and south bound lanes the Overseas Highway • Appreciating Market Values • Ample On-Site Parking • New Construction • Lack of comparable properties for sale Weakness: Appraisal Company of Key West Page 22 3137 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII • Potential for increase in construction costs • A possibility of an extended National recession, high interest rates, and inflation Market Participants: The appraisers interviewed or obtained information from the following market participants including Mr. Claude J. Gardner Jr. And Mr.Will Langley, (Berkshire Hathaway,Knight&Gardner Realty), and Curtis A. Skomp, CCIM, (RE/Max Real Estate), and Brian Schmitt, Coldwell Banker Schmitt Real Estate Co.Various commercial Realtors,real estate investors,tenants and landlords,were also contacted for this report. Appraisal Company of Key West Page 23 3138 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIDEMOGRAPHICS In terms of demographic trends taking place in Upper Keys, the following data has been compiled: (Desri- Prepared by Esn Mng:35 mfle radius Summery Ceris.-'2010 2020 202S Populatic 33 317 35797 36 37a H.us'6.id, 14:251 14:513 14:718 2 F-illes 8,598 8,661 8,749 -A rage Hou..ficild Size 2.23 2.26. _26 0 ner occupied H u usfoo units 8,1356 8,694 8,826 Renter Occuov.d Housing 1lpit5, 5,395 5,819 5,892 Malian Age 47.6 49.6 50.6 Trends-2020'-2028 Annual Rate Area state National POPWatrnm C13z% 1 33% 0 72. -/. Hauseh.ids 0 28% 1 27%b 0.72% F.rmli., 0.20%. 1.239/. 064% Owner HHs 0.30-/. 1.22% 0,72% Medi-i Hocisch.ld 1-.- 2.180% 1.51% 1 6(rj. 2020-� 202S Househo,ds by Income, Number Parcent Number pe'.."t 1 110 6% 921 6 3% $15 0 0-$24 999 1: T 251 9.6% 1,Isr 7 9-/. $25ZO-$34�999 1,452 ,452 jMD% 1,396 9 5-16 0$35,000-$49,999 1 1 4 12 6 % i,849 8 9 $50,000 $74999 1:'92'0' '3,2 :1 4 1 126% $75,00 a-$99,999 1,926 t 313% 2,045 13 9-/. $IGG,00 0-$149�999 1,974 13.61/11 2 199 14 99% $150,00 P-$ 99 999 971 6,7% 1:104 7 5% $200,000-1 2,01,6 13,99/. 2,189 14 9% Median HOL'sehold Income $6�9,808 $76,557 Average H-ehuld Income $108,177 $118,484 F'r C.P't.Income $44,240 $48,349 C.np;us 20ioi 2020 203E Populatlon,by Age Number Percent Number Percent Number Percent 0-4 1,491 4,59K0 1,367 3,8% 1,408 3 9%, 5-9 1 502 4,5 1,:41 -hl 1 411 1,449 4 G 10-14 1:597 4.8]-/. sso 4.3-c. 1,574 4.3% 15-19• 1,545 4.6% 1,420 4.0-4. 1,459 4,0% 20-24 1 457 4A% 1,617 4,59,b 1,505 4 3% 25_34 3�496 1 CIS-A 4199 1 1,79/. 3966 109-41 35-44 4, 104 1 Z'3-/. -ZV4 1 I L 4% 4:352 I z a% 45-54 5 744 17,2% 5,087 14.2% 4,612 127%55_64 5:960 17,9-/. 6,390 17,9% 6,097 16 8%, 65-74 3,924 11,S-/. 5,587 1516% 6,320 16 8-11. 75_84 1,907 5.7-/" 2,303 6A% 3,024 8 3% as+ 588 1.8% 735 2 1% 800 2 2-/. Census 2010 2020 202S Race and EithnicitV Number Percent Number Percent Number Percent Wh!W At... 30,463 91.4% 31,472 87.9% 31,826 87 5% .'ac'Alone 1,211 3.69/., 2,119 5.9% 2,150 5 9-/. American Indian Aiune 145 GA-A :17-9 015% 1.90 05% Asian.,At,,,, 242 0,7% 338 019% 391 1 1% Pacific1'1.n,d.,Alone 22 0.1% 22 DA% 23 0.1.% Socce"ther Race Alone. 723 1,01,1 2.94 1,079 3 0-/. TWn o,Mo,e Race, sit 1.5-/. 661 1 1 8% 721 20% H,.P.Mc Ongin(Any Race) 8,527 25.6%. 11,239 31.4% 12,649 34.8 data Nt-1---i ..pre-d 1.A'.'ll'urel t dalMr.. S..-ij C""-' cr-us 2010 Fij. flre-U,;for 2020 btid 20P5, July 08,2020 Appraisal Company of Key West Page 24 3139 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIII (Desri, Prepared by Earl Ring;35 mile radius Trends 2020-2025 :;-" 2- C ei 1.8- 1.6- M 1.4- 1.2- 18 of 018- 0 Area 'C 0.4- N State < (ffi, USA Population Households Families owner Hs Median HH Income Population by Age 16- 14- 12- Fill, to- 8- 11R, 6- 4- 2020 2025 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85-t 2020 Household Income 2020 Population by Race $25K-ry3- Chu so- 5—' $2,,K 70'- 60- $—-�74. 5�5K 7b% 50- 40- 30- S7,K 99K 20,- 14 0- Wh,te Black Am 1,d. ASia, Pacific Other T-1 2020 Percent Hispanic Origin:31.4% Source:Ll S.D,41stc,Btj,MU,C—Ul�2U10 Swrnrrarl Rle 1. Esd fomaa.%is for 2020 and 2025 July 08,2020 Appraisal Company of Key West Page 25 3140 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Active Listin&s: Currently there are no truly similar real estate listings for comparable affordable housing apartment complexes offered for sale in the Florida Keys Market. MARKETING TIME Based on sales of comparable residential multi-family properties in the subject's market area, the appraisers estimated to be a 6 to 12 month marketing time if listed within 5.0 percent of the appraised value. The market time estimate is based on interviews of real estate agents and market time information for the comparable properties. This marketing time could be negatively affected by competition from similar facilities. Multi-family properties have become more marketable since COVID-19,as employers are buying similar properties to offer as workforce housing for staff. 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 equal to the marketing time, based on a listing price within 5.0% of my appraised value. OWNERSHIP According to the Monroe County Public Records, the subject parcel is owned by: South Cliff Holdings, LLC 1527 Shaw Drive Key Largo, Florida 33037 SALES HISTORY, CURRENT LISTING& SALES CONTRACT According to the Monroe County Property Appraiser's records, the subject property transferred from Armando and Maria C. Cabrera, Grantor, to South Cliff Holdings, LLC, Grantee April 21, 2021 for $415,000. The affordable housing entitlements were obtained afterwards. Although the Local Board of Realtors,MLS does not indicate the subject property is listed for sale,Monroe County has offered South Cliff Holdings $11,500,000 for the completed project. A contract was not provided to the appraisers. The client has provided the offer information. Appraisal Company of Key West Page 26 3141 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII No other sales were noted in the Public Records of the Clerk of the Court,Monroe County,Florida. The subject has not been listed for sale over the past three years. ZONING The Subject Property is located within the SC Zoning District. The purpose of the SC district is to establish areas for commercial uses designed and intended primarily to serve the needs of the immediate planning area in which they are located. This district should be established at locations convenient and accessible to residential areas to reduce trips on U.S. 1. Sec. 130-93. Suburban Commercial District(SC). (a) The following uses are permitted as of right in the Suburban Commercial district: (1) Commercial retail,office,restaurant uses,or any combination thereof,of low and medium intensity, and of less than 2,500 square feet of floor area; (2) Institutional residential uses,involving less than ten dwelling units or rooms; (3) Commercial apartments involving less than six dwelling units; (4) Commercial recreation uses limited to: a. Bowling alleys; b. Tennis and racquetball courts; C. Miniature golf and driving ranges; d. Theaters; e. Health clubs; and f. Swimming pools; (5) Institutional uses; (6) Public buildings and uses; (7) Accessory uses; (8) Vacation rental use of nonconforming detached and attached dwelling units,if a special vacation rental permit is obtained under the regulations established in section 134-1; (9) Collocations on existing antenna-supporting structures,pursuant to section 146-5©; (10) Attached wireless communications facilities, as accessory uses,pursuant to section 146-5(d); (11) Replacement of an existing antenna-supporting structure pursuant to section 146-5(b); (12) Stealth wireless communications facilities, as accessory uses,pursuant to section 146-5(e); (13) Satellite earth stations, as accessory uses,pursuant to section 146-5(f); (14) Attached and detached dwellings involving less than six units,designated as employee housing as provided for in section 139-1; and (15) Wastewater nutrient reduction cluster systems that serve less than ten residences. (b) The following uses are permitted as minor conditional uses in the Suburban Commercial district, subject to the standards and procedures set forth in chapter 110, article III: (1) Commercial retail,office,restaurant uses,or any combination thereof,of low and medium intensity, and of greater than 2,500 but less than 10,000 square feet of floor area,provided that access to U.S. 1 is by way of: a. An existing curb cut; b. A signalized intersection;or C. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (2) Commercial retail,restaurant uses, or any combination thereof,of high intensity, and of less than 2,500 square feet in floor area;provided that access to U.S. 1 is by way of: Appraisal Company of Key West Page 27 3142 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII a. An existing curb cut; b. A signalized intersection;or C. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (3)Institutional residential uses involving ten to 20 dwelling units or rooms,provided that: a. Access to U.S. 1 is by way of: 1 An existing curb cut; 2 A signalized intersection;or 3 A curb cut that is separated from another curb cut on the same side of U.S. 1 by at least 400 feet; (4) Commercial apartments involving six to 18 dwelling units,provided that: a. The hours of operation of the commercial uses are compatible with residential uses; b. Access to U.S. 1 is by way of: 1 An existing curb cut; 2 A signalized intersection;or 3 A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; C. Tourist housing uses,including vacation rental uses,of commercial apartments are prohibited; (5)Hotels of fewer than 25 rooms,provided that: a. One or more of the following amenities are available to guests: 1 Swimming pool; 2 Docking facilities;or 3 Tennis courts., (6) Campgrounds and recreational vehicle parks,provided that: a. The parcel proposed for development has an area of at least five acres; b. If the use involves the sale of goods and services, other than the rental of camping sites or recreational vehicle parking spaces,such use does not exceed 1,000 square feet and is designed to serve the needs of the campground; and C. The parcel proposed for development is separated from all adjacent parcels of land by at least a class C bufferyard; (7)Light industrial uses,provided that: a. The parcel proposed for development does not have an area of greater than two acres; b. The parcel proposed for development is separated from any established residential use by at least a class C bufferyard; and C. All outside storage areas are screened from adjacent use by a solid fence,wall or hedge at least six feet in height; (8)Parks; and (9) Attached and detached dwellings involving six to 18 units,designated as employee housing as provided for in section 139-1. (10) Commercial recreation uses (indoor and outdoor), excluding amusement or sea life parks and drive-in theaters,provided that: a. The parcel of land proposed for development does not exceed five acres; b. The parcel proposed for development is separated from any established residential use by a class C bufferyard;and C. All outside lighting is designed and located so that light does not shine directly on any established residential use; ©The following uses are permitted as major conditional uses in the Suburban Commercial district subject to the standards and procedures set forth in Chapter 110,Article III: (1) Commercial retail,office,restaurant uses,or any combination thereof,of low and medium intensity, and of greater than 10,000 square feet in floor area,provided that access to U.S. 1 is by way of: a. An existing curb cut; b. A signalized intersection;or C. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; Appraisal Company of Key West Page 28 3143 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII (2) Commercial retail,restaurant uses,or any combination thereof,of high intensity, and greater than 2,500 square feet in floor area,provided that access to U.S. 1 is by way of: a. An existing curb cut; b. A signalized intersection;or C. A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (3) Institutional residential uses involving 20 or more dwelling units or rooms;provided that: a. Access to U.S. 1 is by way of: 1 An existing curb cut; 2 A signalized intersection;or 3 A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; b. Tourist housing uses, including vacation rental uses, of institutional residential units are prohibited; (4) Hotels providing 25 or more rooms,provided that: a. The hotel has restaurant facilities on the premises; b. One or more of the following amenities are available to guests: 1 Swimming pool;or 2 Docking facilities;or 3 Tennis courts., and C. Access to U.S. 1 is by way of: 1 An existing curb cut; 2 A signalized intersection;or 3 A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; (5)Marinas,provided that: a. The parcel proposed for development has access to water at least four feet below mean sea level at mean low tide; b. The sale of goods and services is limited to fuel,food,boating,diving and sport fishing products; C. All outside storage areas are screened from adjacent uses by a fence,wall or hedge of at least six feet in height; d. Any commercial fishing activities are limited to the landing of catch,mooring and docking of boats and storage of traps and other fishing equipment; and e. Each nonwaterside perimeter setback of the parcel proposed for development must have a class C bufferyard within a side yard setback of ten feet; (6)Agricultural uses,limited to mariculture,provided that: a. The parcel proposed for development is separated from any established residential use by at least a class C bufferyard; and b. All outside storage areas are screened from adjacent uses by a solid fence,wall or hedge at least six feet in height; (7)Heliports or seaplane ports,provided that: a. The helicopter is associated with a government service facility,a law enforcement element or a medical services facility; b. The heliport or seaplane port is a Federal Aviation Administration certified landing facility- C. The landing and departure approaches do not pass over established residential uses or known bird rookeries; d. If there are established residential uses within 500 feet of the parcel proposed for development, the hours of operation for non-emergency aircraft shall be limited to daylight; and e. The use is fenced or otherwise secured from entry by unauthorized persons; (8) New antenna-supporting structures,pursuant to section 146-5(a); (9) Attached and detached dwellings involving more than 18 units, designated as employee housing as provided for in section 139-1. Appraisal Company of Key West Page 29 3144 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII No further changes in zoning is anticipated in the foreseeable future. The Proposed subject project appears to be a legal, conforming conditional use with respect to current zoning district. The subject's proposed residential rental use (multi-family dwellings)is permitted as of right within the SC zoning district. The subject is located in the MC, Mixed Use/Commercial per the Future Land Use Map (FLUM). The subject property is located within an area designated Tier III(infill area). Appraisal Company of Key West Page 30 3145 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ZONING MAP f y Appraisal Company of Key West Page 31 3146 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII REAL ESTATE TAX AND ASSESSMENT AND BURDEN Real Estate Tax Assessment& Burden Parcel No.00484390-000000-Alternate Key 1594008 Building Misc. Total Real Estate Solid Waste Wastewater Total Tax Year I-and Improvements Imprv. Assessment Tax Burden Non-AdValorem Non-AdValorem Tax Burden Millage 2023 J$676,6851 $0 $0 $0 $5,371.121 $0.001 $0.001 $5,371.121 7.9374 Based on the date of this report the 2023 millage rate of$7.9374 per $1,000 and the subject's 2023 assessed value, the indicated real estate tax burden for this subject parcel is $5,371.12, or $0.06 per square foot of upland area. The building and site improvements will receive full assessment once completed, as a result, the real estate tax burden may increase. According to the County Tax Collector's office,the subj ect property appears to have no delinquent taxes. However, a title search was not performed. However, as the client, Monroe County, is the potential buyer of the subject property; thus, no tax burden will be levied. This is discussed in the Income Approach section. Appraisal Company of Key West Page 32 3147 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIITAX INFORMATION NGTdCE OF AD VALOREM TAXES AND NWAD VALOREM A SSESSMEIka'S 15w08 WOK 15N008 SOUTH CLIFF 1104MINi6S LLC 11D48439D=00136238 1527 Sbow Of 9S2%allEfiSEAS 4&Y Key Largo,FL 33037 2743 BK I LTS 11 6.2 REWSED PLAT OF SUNFJSE POINT P53-11&NWLY 720 FEET CW PT TR 6 SOILN HCLJf:F ESTS PO TAXING AUTHORITY TELEPHONE AWMEDVAlUE EX]EAWTIONAMT rAXABLF VMU,E NULAGE RATE TAXIESLEVED SCHOOL STATE LAW 305-29 14W 676,6,85 0 676,665 I'mo 74300 tWHUQL LUCAL bUAKU 3U5-.PJJ-14UU wt�'"5 0 w6'1a b I e9w I""I 6'w GL-NLRAL HJNU 3Ub-292-4413 beb'66'b u 61601b 016923 60381 F&F LAW ENFOKC�E JAIL 305-292-7I317 68'6695 u 676,68S 1 law 1,209.91 HEALTH CLINIC 305,293-75M 676,685 0 676,685 0 0368 26.26 GENERAL PURPOSE 305-292-4473 676,685 0 676,685 01 1165 119,43 MU$QUI I:Q GON!ii KCx 3u5-2%!-0w beb'eft tj WIb"bd$ UA. $44 M C LOCAL KOAU PA I HU 3U5-29»?-M1t wb'665 0 616'665 (J'31 W 316'" SFWM 1Nd5 6U04,12-2045 676,685 U 676,685, 01,0948 64,15 OKEECHOBEE BASIN 800`432-2045 676,685 a 676,605 0 1026 6943 EVERGLADES CONST PR 800432-21345 676,6815 0 6761,686 0 0327 22-13 K L L INt Ntz*C a k'MtHG 3195-0$'SbIe w6'wb u W6'b65 I'IbSO: eol"'.Z AD �RE M�ME S, 7 9374 S.9,371 121 f"? j: 21 LEVYINGAtM101RITV MUEP$WNE uriffs AMOU -----------—--------— NONAD,VALOREM ASSESSMENTS, $000 II ................................................................ WVIOV VK'11h 051 T111101"C'I"k 11",M"p rH V, 15940W o a f'r o It PO BOX 1129,KE."Y VVESr,FIL 330141-11,29 30S-295 S00(1� 'PAY�5tiFV 0114E AMOUNT Nov 30,2023 4% 55'I.%28 SOUTH CLIFF HOLDINGS LLC E]i Jan 09,201.4, 3% S5,209.99 1527 Sbaw Dr Key Larqo�FL 33037,2743 pl l Jan 31,2024 2% 35�16'3-70 F] Feb 29,2014 1% $S 317.41 Mery 3 1,'2=4 $5,37112 PLEASE 04AKT,C14ECIKS PA1iAf)Lr,V 0: -PIJ Asw N<)]1"1'4i t r,He II ow I uvw- SAM 5 V TOR US FtMUSONLY 1 OLS94008 2023 1 Appraisal Company of Key West Page 33 3148 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll DESCRIPTION OF THE SUBJECT PROPERTY Site Analysis: According to the survey provided,performed by Form Tech Land Surveying, 12995 S.W. 42"d Street, Suite 3, Miami, Florida, dated February 2, 2023, the subject site consists of an irregular shaped site containing 85,306 square feet or 1.96 approximate acres. The subject site include approximately 212 linear feet along the southeasterly side of Overseas Highway. The appraisers utilized the site area and dimension provided by the survey. Accordingly, the subject site contains: Upland Site Area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,306 square feet or 1.96 acres Any deviations from these sizes could result in a change in value. In the appraisal of the subject property, we have assumed that there are no toxic or environmental hazards present. Appraisal Company of Key West Page 34 3149 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII SURVEY e ICY j y ry yl I r pr ld � u+ �rPi, ti M pp rr�� ti cc wn "v f ��llk Y (n I�b is " �RE �r P{ i„n r gym( w t k�. PPf��adr z if g g g rp� pilil� f & I � ( Y r, Art 1 n �to ,A+reed VA r.. A P iIOJ UYI I N YFX P NJ Appraisal Company of Key West Page 35 3150 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Topographer Although no soil engineering report was made available to us,it appears that the subject sites and most of the properties in the immediate neighborhood show no signs of any subsurface instabil- ity. However, the appraisers are not experts in the detection of subsurface instability. Some areas of standing water can be observed in low areas along the street after heavy rains. This is typical of many areas within the neighborhood. Census Tract: According 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 the preliminary Monroe County 2010 Census Maps the subj ect property is located within Block Number 9705. Flood Zone: The subject property is located in Flood Zone Areas AE,Elevation 8 feet(most southerly portion of the site), as defined by the Federal Emergency Management Agency, Flood Insurance Rate Maps of Monroe County, Florida, Map Number 12087C 0936 K, dated February 18, 2005. Monroe County participates in a National Flood Insurance Program and is covered by a regular program. The are proposed constructed and are assumed to meet current FEMA elevation requirements. Appraisal Company of Key West Page 36 3151 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll FLOOD MAP National Flood hazard Layer FIRMette Legennd er w I.u.r 5pum Row MA/NnIM nMLMG Ab,�uWWw x5wd � e '�>,,.r yr /r'�G / �`✓'� &IP �� ry �5 ,i'.ar ,,, �'I ,� Rlual �wM1!fFh w2 f�uwpf„ �'Ya.wra�x Yrw* 1 n asp 0 � % iG ��h � M 7 ennry 4�Nmrcw.W w Y R ;' lh� � �Pp ify WGVRCF � � anwenwe 7� p rrrwr ,9Y °' u , k.1 i R. ✓ �/� � �' iN:%P71akIMky � '� � � tl4 d 1nm UIM I�rooflp no ,. '.14uY1'rro = :_ r a d� r ✓rl, ,� mg y� �re�ia��Y�u� �YmYYiwhYtr�,� �� »�. G 250 boo 'I,GG6 i;oG 2'.,MU N v,iwirauu wu. a��vnuw lin,r�r,y�n,rw.�x��:�usc�s ranr�r�nwr vrr�w aeaza Access: As per the previously referenced survey,the subject property has approximately 212 linear feet of frontage along the easterly side of Overseas Highway approximately 120 linear feet along the northerly side of Snapper Lane. Easements/Encroachments: According to the previously mentioned survey,no encroachments appear to exist on the subject property. Minor encroachments are typical in this market and typically do not affect the sale of property. 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. If an updated survey,once construction is completed,is made available and if any discrepancies are noted due to easements and/or encroachments, we reserve the right to change the final indicated value herein, if necessary. Utilities: The subj ect parcel will be serviced by public water and electric utilities,with the private sector providing cable TV and LP bottled gas. At the time of the site visit,the subject property water hook-up was still in need of being completed. Each unit will have an electric and water meter, cable TV, telephone connections. Appraisal Company of Key West Page 37 3152 M LO co a Mop � F 19s ,,.L 14 ip v mm � rasp ni .� ......... r .:: --------------- ._.,.,... ._.—_---w_ �C � An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Building Improvements: At the time of the site visit, the subject property included three structures under construction. The proposed project will consist of 28 affordable housing units, as designated under the affordable guidelines set forth by Monroe County, Florida. The appraisers have relied upon plans and specifications created by Keys Engineering,Daryle L. Osborn, 91700 Suite 1,Tavernier,Florida 33070. In addition, the appraisers referenced floor plans, prepared by T.E.S.T Civil Engineering Design & Consulting, 1790 Highway AlA, Suite 209, Satellite Beach,Florida 32937. The subject property will consist of 28 affordable housing units. The project will include a total of 12 buildings, eleven housing dwellings and one office/storage building. Construction specifications, floor plans and elevations are included. The following table is a summary of the eight units that are included in my valuation. The following chart depicts the unit mix: "Proposed" Building Improvements Site Plan Total Proj. Bldg. Bldg. # Bldg. Sq A No.of No.of Year Nos. Type of Units Use/Type Sq Ft. Porches Bedrms Baths Built 1 A 4 Four: 1 Bedroom/1 Bath 2,444 160 4 4 2024 2 A 4 Four: 1 Bedroom/1 Bath 2,444 160 4 4 2024 3 A 4 Four: 1 Bedroom/1 Bath 2,444 160 4 4 2024 4 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 5 B 2 Two:2 Bedroom/2.5 Bathrooms 21304 216 4 4.5 2025 6 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 2161 4 4.5 2025 7 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 2161 4 4.5 2025 8 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 9 B 2 Two:2 Bedroom/2.5 Bathrooms 2,304 216 4 4.5 2025 10 C 2 Two:3 Bedrooms/2.5 Bathrooms 2,444 220 6 4.5 2025 11 C 2 Two:3 Bedrooms/2.5 Bathrooms 2,444 220 6 1 4.5 2025 28 12 Office Office/Storage 879 0 2-Fix 2025 Gross Building Area: 26,923 Appraisal Company of Key West Page 39 3154 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Proposed Buildings Element Description Basic Structure: Two-Story CBS Block with Stucco Residential Apartment Structures Plus One, CBS Block Office/storage use Structure Foundation: Built-up concrete Slab/Wood Joist in between lst and 2nd Level Use: 3 Multi-Family Quadraplex Bldgs., Eight Duplex Bldgs., One Office/Storage Building Year Built: To be Completed 2024-2025 Floor Structure: Concrete Slab I't Level/Wood Joist Second level Exterior Walls: Painted CBS Block Exterior Windows: Single Hung Insulated Windows (Hurricane Impact Resistant) Exterior Doors: Metal (Hurricane Impact) Roof: Galvalume Metal Roofing Cover,Wood Trusses Interior Floor Finish: Ceramic Tile Floor Interior Ceilings: Painted Drywall Interior Walls: Painted Drywall Electric Service: Assumed to Meet Code Plumbing: Bldg. A: One 3-Fixture Bath/Bldg. B &C: Two and One Half Bathrooms Air Conditioning: Central Air Conditioning Systems Amenities: Off Street Parking, Office with computer access available to tenants Construction Quality: 2.0 - Average Improvement Condition: New Building Ages: Actual Age: New Effective Age: New Economic Life: 50 Years Remaining Economic Life: 50 Years Appraisal Company of Key West Page 40 3155 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIBUILDING TYPE "A" FLOOR PLAN ----------- ---------------- ----- -----.> v-, TJIVA32 A.417D H Incs ............................. . .. ...... 7777'Z'77 ............. ................... ............... �Y" 7 ........... .......... Ij j ............ mm. .......... ......... "W q ------------ -Y th ......................... ........... Appraisal Company of Key West Page 41 3156 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIBUILDING TYPE "A" ELEVATIONS ----------- ---------------Og > " � A- v_, A"* GJIVA3 g4oD J "A --------------- i'4 ............... ........... 0 �Y 112 rvrvrvrvrvry EJ El 7 la A ........... ti Appraisal Company of Key West Page 42 3157 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII BUILDING TYPE `B" FLOOR PLANS V� ":4W ill ryryII11 .,� ENT 1 i 7aM i';M 'M Frei . f �,.�. T C °P Ix ' "iIf��.� r r .y�l,TAW-,; Pr " I. rtdl'1 rl�i', r Appraisal Company of Key West Page 43 3158 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII BUILDING TYPE `B" ELEVATIONS ldRl IVY IIII, 1�a a .. 11 11 rT ST LL ¢ � I me ��, °1 — ..... _ a — 4 rv. ',,T .I.Md, ., .,. 1 laz .._._.... ; fir _ _ E �.�r��TION� k... RVG iI „„ w ICII u,IN uYn rx F k I r e 111 Appraisal Company of Key West Page 44 3159 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII BUILDING TYPE "C" FLOOR PLANS a LC1, Via; w � f . � -- 5:�K � � . I NIV , < N fi W w P I . 4 II w a j ID Cy R iui psi G�4, Ifl d ...mac,„w :—rc L., a µlb* Appraisal Company of Key West Page 45 3160 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII BUILDING TYPE "C" ELEVATIONS xr w _ .II .......... @ IC �a t L ........ ,,,®,,,,,,,,,,,,, .�.. a f l:A w.m. ........... aui°`7 C:1 ID Appraisal Company of Key West Page 46 3161 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII OFFICE BUILDING FLOOR PLAN x as I o! 7I 'a GpNbu w t l' ar+ j�J rtrt gg 7 d ar.r qva, w� a a. Vm Y : t cMr,o o r ^a- r I VM" 4 M r r y I� 4 m HA �w v+� ��x�,rr�aro� SWING IGBHIUMPoNMI'G'1� 000IM�hbAMNJG �. TT 1 HM. VVISIT0�ROOM 1 09�AA.I ral 51ul�.�... '� ��Y"I ut RKA IIHYR ygY ,Gi bf' Our's[ILIX,wr?�r7kt4o(N# u %F:ti rIJF , Tsar .o-61 Appraisal Company of Key West Page 47 3162 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII OFFICE BUILDING ELEVATIONS Fy 6 z op u -Yrfi�-:@�mw WR��i.......♦. .=.:=� � ...' �.� ,_ � ry C4 H ig A �8 F Mti Al k ------------ .. ... Appraisal Company of Key West Page 48 3163 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll HIGHEST AND BEST USE In order to estimate the Highest and Best Use of the subject property, the appraisers have considered those uses that are physically possible, legally permissible, maximally productive, and financially feasible. "As If Vacant": The subject overall site consists of an estimated upland area of 1.96 acres. The subject lot is located on the corner of Overseas Highway and Snapper Lane. It is located in a SC, Suburban Commercial District. The Highest and Best Use of the subject property "as if vacant" would be for development of the property with maximum allowable number of nontransient affordable/employee housing residential units as permitted by the zoning. "As Is Prospective": The subject property is planned to be developed with 28 affordable designated residential apartments. Due to the desperate need for affordable or employee housing, market rental rates have skyrocketed and affordable units are rented immediately with waiting lists for most complexes. The new structures consist of a total of 26,044 square feet of gross living area. The project will consist of 11 residential buildings and one office/storage use building. The mix of apartments include 12 one bedroom/one bathroom units, 12 two bedroom/two and one half bathrooms and four three bedroom/two and one-half bathroom housing apartments that are subj ectto the current affordable housing rental limits. Fourteen of the one bedroom/one bathroom units are low (80% of the median income) or a maximum $1,736 per month,while 14 of the units are median or a maximum of$2,443 per month for two bedroom units and $2,713 per month for three bedroom units. At the time of inspection, the infrastructure and first three buildings were under construction with about$1.2 million spent to date. Our overall opinion of the Prospective Market Value of the Fee Simple Estate,Upon Completion of Construction and Upon Achieving Stabilized Occupancy as of December 1,2025 is$11.2 million.The increase from the current land value of $2.6 million is about $8.6 million, while the construction costs, indirect costs, and entrepreneurial incentive total about$9.2 million. Ordinarily,this would indicate that the project is not feasible. However, the developer only paid $415,000 for the raw land. Although, it is quite costly in time,opportunity cost and dollars to obtain the entitlements and permits.there is still quite a profit when considering the land value cost and the current land value considering the 28 affordable housing units entitlements. As a result,the proj ect is feasible.It has been noted that manly large resorts and employers are acquiring smaller multi-family projects or apartment buildings. There units are a mix of properties that are subj ectto the affordable housing guidelines or market rate. Generally,these properties are rented to employees and reduced rates. Due to demand, the sales prices have dramatically increased, with capitalization rates have declined significantly. Cash flow does not appear to be the motivating factor, but the need on attracting and refraining key employees. Appraisal Company of Key West Page 49 3164 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII CONCLUSION OF HIGHEST AND BEST USE Based on the preceding analysis of the Highest and Best Use of the subject site as if it were vacant and available for development and, "As Improved", it is our opinion that the Highest and Best Use is "As Proposed" for affordable employee housing. Appraisal Company of Key West Page 50 3165 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII SCOPE OF WORK APPRAISAL DEVELOPMENT AND REPORTING PROCESS 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. The appraisers performed a summary appraisal report, as defined by the Uniform Standards of Professional Practice. Data relevant to each of the approaches is developed and analyzed to produce a value from each of the approaches. Each of the approaches utilizes data that is gathered from the market place. Items of both similarity and dissimilarity in comparable properties are analyzed and adjustments are made for the differences. All appraisals begin by identifying the subject property (property to be appraised) and the appraisal problem. Data relevant to the subj ectproperty 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 appraisers. 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 describes the building improvements in detail,if applicable;these descriptions are based on a walk through and/or plans and specifications, if available. The appraiser is not a contractor nor a 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. 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, Loopnet and CRSData.com, F1exMLS.com, a 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 the Addenda of 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. Since a large portion of the subject's value is land value, plus the improvements are new construction with minimal depreciation, then the Cost Approach is reliable in the case at hand. Finally, the three Appraisal Company of Key West Page 51 3166 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII indicated values developed by the approaches,are reconciled to produce the final estimate of value. The appraisers placed heavy weight on the Income Approach,with moderate weight on the Sales Comparison Approach and moderate weight on the Cost Approach in the final reconciliation of values. A brief description of each of the approaches to value follows: THE COST APPROACH The Cost Approach is determined by taking the value of the land and adding to it the depreciated value of the present improvements. A separate land analysis is done to determine the value of the land. This approach is based on the Principle of Substitution, which states that a purchaser will not pay more for an existing property than the cost to reproduce it,in a similar area, assuming that it could be reproduced without delay. The subject property is an investment-type property; hence, the Cost Approach does not measure the potential income production. Due to availability of recent redevelopment land sales with entitlements and the subject structures as new construction,the appraisers have deemed the Cost Approach applicable herein and weighted moderately 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 buyer will only be willing to pay the present value of what he/she consider those future benefits to be. This approach is considered to be the strongest indicator of current fair market value when the property is purchased as an income-producing property having a reliable historical cashflow. In the case at hand, the subject property will be an income producing type property, once completed as an affordable housing rental complex. The value indicated by this approach was weighted heavily in the final analysis. THE SALES COMPARISON APPROACH This approach is also based on the Principle of Substitution. When applied, it states that when similar (comparable) properties in similar locations are adjusted for any dissimilarities, the value from these comparable properties can indicate an estimate of value. This approach was weighted moderately in the final reconciliation, as no comparable are truly"look alike" properties. Appraisal Company of Key West Page 52 3167 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII SUMMARY OF ANALYSIS AND VALUATION THE COST APPROACH The Cost Approach is determined by taking the value of the land and adding to it the depreciated value of the present improvements. A separate land analysis is considered to determine the land value. This approach is based on the fact that a purchaser will not pay more for an existing property than the cost to reproduce it in a similar area, assuming that it could be reproduced without delay. There can be complications in applying this approach, because identifying sales of vacant land to develop a value indication for the subject property can be difficult. Another problem in applying this approach arises if the building improvements are older, for accurately estimating the depreciation in older buildings is also difficult and unreliable. Since estimates of depreciation will have a significant impact on the resulting value estimate,the reliability of the Cost Approach diminishes when valuing older properties as well as not having a good indicator of vacant land due to the lack of available land sales for comparison purposes and due to the current development restrictions. The subject property consists of a partially vacant parcel with three buildings under construction. Eight additional residential buildings will be constructed plus an office/storage building. The project has entitlements for 28 affordable units. The Cost Approach consists of combining the estimated value of the land, based on comparable sales, with the depreciated value of the improvements (no depreciation in the case at hand, as the proposed improvements will be new construction). 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 a purchaser 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,the subject complex is located within a mixed-use neighborhood of Stock Island. The appraisers researched and analyzed five land redevelopment sales, in order to estimate the subject property's land value. The current costs to construct the improvements can be obtained from cost estimators, cost estimating publications, builders and contractors. Depreciation is measured through market research and the application of specific valuation procedures. Market Data A thorough search was conducted for recent sales. A survey of the market area resulted in reliable market data within the subject's market area. The following chart summarizes relevant units of measure of the comparable sales. Appraisal Company of Key West Page 53 3168 cfl M N Q x f 00 O VJ � VJ N ti b 69 r N 01 �n M � � 69 69 69 rl 69 �O M 01 M �n 01 �O VJ M a\ 7 VJ �O M Vl 0 0 M M Ni M VJ 01 N r ONO VJ'-I Ell E N o0O '-I rT .y .y N r N 7 vMi x C, 00 O M �O O 00 ^I O O O O O O O O O O O O O O Ov o N A M O O O O O O O O O O O O O O O O O O O O N M O 'O 'x T o N O p, ai ai � A •� ti V � � OM Val � rO An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII COMPARABLE LAND SALES V r � rah i r a r i I U11ow-,,Rd.y .r,r"I�� 64.11 11111f, 30 r Appraisal Company of Key West Page SS 3170 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Discussion of Comparable Redevelopment Land Sales: Land Sale No. 1 - 120/130 Pescayo Avenue & 96 Coco Plum Drive: This is the assemblage of two large tracts, located basically across the street(Coco Plum Drive)from each other. The western parcel was purchased by Coco Vista Community Ltd (The Vestor Companies, Inc.)from Seaview Commons H,LLC (Brian Schmitt)for$4.5 million. The eastern parcel was purchased by the same entity and sold by Seaview Common, LLC (Brian Schmitt) for $3,675,000. Thus, the total acquisition price was $8,175,000. The western parcel has entitlements for 60 affordable housing units and contains 104,800 square feet of upland, while the eastern parcel had entitlements for 49 affordable housing units and contain 73,519 square feet of upland. Thus, the total upland area is 178,319 square feet or 4.09 acres with a total of 109 affordable housing development rights. This was an arm's length transaction with conventional financing. I flu �rl /j Western Parcel Eastern Parcel Appraisal Company of Key West Page 56 3171 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Land Sale No. 2- 12 Lots in Big Pine Key: This assemblage if individual lots consists of 12 vacant residential lots within Big Pine Key purchased the Monroe County Land Authority. The lots span over a couple of blocks and are identified separately by the Monroe County Property Appraisers office. However,the Highest and Best use is to value the lots as one economic unit; as a bulk-sale. At the time of inspection, the subject property each lot included a Residential Rate of Growth Ordinance (ROGO) unit which is necessary for development. The buyer purchased the lots for development of detached affordable/workforce single family homes. The project will be called Seahorse Cottages at Big Pine Key II. I appraised this bulk-sale at the time of sale. This was an arm's length transaction with cash to the seller. f� i of Appraisal Company of Key West Page 57 3172 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Land Sale No. 3 -5531-5547 College Road, North Stock Island; City of Key West: This property is located on the easterly boundary of the City of Key West and within the north side of Stock Island. Sunset Marina accessed via a private drive from College Road. The marina boasts deep water control depth for large vessels and offers direct access to the Gulf of Mexico and Atlantic Ocean access with no bridges through nearby Key West Harbor. The Sunset Marina of Key West encompasses 3.15 acres of upland, which is the "Parent Parcel". This Parcel was subdivided into four units and a common elements parcel (parking) via a land condominium, Sunset Parcels, A Condominium. This property encompasses two land condominium parcels. The first component of the property, Unit 1 contains 0.47 acres of upland area, which is currently used for boat and trailer parking (temporary storage). This land area will be redeveloped with 37 affordable housing apartments. In addition, the property includes Unit 4, a vacant parcel containing 1.00 acre of upland, which is proposed to be developed with 23 market rate apartments.Unit 1 is adj acent to the Sunset Marina Dockominium of Key West, while Unit 4 is adjacent to a Salt Pond's area with views of the Great White Heron National Wildlife Refuge and the Gulf of Mexico. This was an arm's length transaction with conventional financing. i ,,� r �,,q r"✓�,#,'� it 1/�,n rI/��ii j/�////// lii //��%%�f zei Z Appraisal Company of Key West Page 58 3173 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Land Sale No. 4 -30 Puerta Drive, Big Coppitt Key: This comparable consists of Parcels 9, 10 and 11. The overall site has a gross site are of 21.05 acres of both upland(14.77 acres)and wetlands(environmentally sensitive area of 6.28 acres). This comparable was sold and developed with 208 affordable housing units.My office appraised this property subsequent to the transaction. This was an arm's length transaction with conventional financing. nIlVill�iow� �� G � I �IIIIII Appraisal Company of Key West Page 59 3174 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Land Sale No. 5 -541 White Street, Key West,FL: This comparable consists of 24.18 acre irregular-shaped corner site withing the HSMDR, Historic Special Medium Density Residential District. The site was improved with 49, two-story wood frame townhouse buildings containing 157, two-bedroom townhouses. The property was formerly military housing known as Peary Court. It sold to a private developer in August 2013 for$35 million. When the market was still relatively soft. The property recently resold for$60 million. The buyer received $12.5 million in grants to deed restrict all 157 units as moderate affordable housing units; thus, there are rent restrictions. The entitlements include three more units that burned down in the past, plus 48 more affordable units. As a result, the total is for 208 affordable housing units,which are deed restricted. As a result,the unrestricted price is$60 million,while the affordable restricted price is$47.5 million. After deduction of the contributory value of building and site improvements at$24.7 million, the extracted land value is $22.8 million(restricted to affordable housing), or$109,615 per unit. My office appraised this property for the City of Key West, prior to the transaction. i 7 ,% li All n AN Appraisal Company of Key West Page 60 3175 cfl ti M � a M ,� N Z II II II II c yg O II II v� N in v' O v w M b 0 � o _ °en M M r .may O en Zn a V? Zn in N V 0 o w .a p ds 64 N � w a � � w � w Ea° Ea° o v3 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Market Conditions: The appraisers considered this market segment to be stable from 2015 to 2019 with significant recent appreciation in 202 to present. However,the appraisers projected market conditions(time)adjustments to the older comparable sales as a conservative rate of 3%percent per annum. "As Is"Land Value for Subject Property Based on Current Entitlements: The land comparables presented above indicate an adjusted price range between $54,144 to $121,916 per unit,with a mean and median of$90,850 and$96,543 per unit,respectively. Sale Nos. 1 and 2 were weighted heavily, due to their recency while the remaining sales were moderately weighted, the appraisers estimated an adjusted weighted average of$93,000 per affordable unit. Furthermore, the subj ect property owner and contractor of the proj ect provided the appraisers construction cost expenses as of the date of the site visit. The expenses incurred for the construction completed up until the site visit have been added to the overall land value of$2,600,000 to arrive at the "As Is" Valuation. The overall value for the subject property is as follows. 593,000 X 28 = $2,600,000 Plus Construction Costs Spent: $1,235,000 "As Is"Valuation: $3,840,000 "AS IS" VALUE OF THE SUBJECT PROPERTY, AS INDICATED BY THE SALES COMPARISON APPROACH,SUBJECT TO AFFORDABLE HOUSING FOR 28 DWELLING UNITS AS OF FEBRUARY 20, 2024 (Rounded):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,840, 000 Note: At the time of the site visit, the infrastructure and partial construction of the first three buildings were underway. The developer indicated that approximately $1,235,000 was spent to date. As a result, "As Is" Value conclusion is the Land Value, plus the Construction Cost to date. Estimate of Improvement Costs and Summary for the Prospective Value Upon Completion of Construction: The replacement cost of the improvements has been estimated using the Marshall BoeckhValuation/CoreLmic Service and our knowledge of actual cost to construct in the area. These costs are continuously updated and adjusted for local differences. The Marshall BoeckhValuation/CoreLmic Service cost estimates include labor materials and sales tax, average architect and engineer's fees,job supervision and insurance,and contractor's overhead and profit. The cost estimates do not include: costs of buying/assembling the land (i.e. escrow fees, legal fees, demolition, storm drains or rough grading), costs of land planning or preliminary concept and layout for a large development, discounts or bonuses for financing, developer's overhead and profit, and interest or taxes on land. Their cost estimate was similar to the actual construction bid considering buying the modular construction units, size installation, and completing items on site. Appraisal Company of Key West Page 62 3177 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII On the following pages,the replacement cost new and depreciated cost approach for the subj ect property is detailed herein. Marshall& SwiftBoeckh BVS/CoreLogic cost estimator was utilized to derive the appropriated replacement cost new of the subject property and the improvements. Appraisal Company of Key West Page 63 3178 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Valuation Detailed Report y Property Express ]V1412024 1d"ALIU Tr' tr ti .... .......................�.m�m�m�m�m�m�m�m�m�,�,www�.�.�_....m�-wwwwww. wwwwwwwwwwwwwww .......�.� Valuation Number 100-24 Effective Dale: 11'212tt12024 'Value Easi : New Cons"ction Emriuuration Date:: 02t190026 Cost as of 0212024 ....................................... ........ ......... ......... ..... MMMM 9629 Overseas Highwvay 95295 Overseas Highway KEY LARGO,FL 33037 US . LOCATION 1-952,95 Overseas Highway _... k...« _ ,mm- ----_„------_„-_ 95295 Overseas IHighway ------- __. 95295 Overseas Highway KEY LARGO,FL 3,3037 USA .. t�muouatmory��d'ustments _ . . ... .. ... ... ... ... ... ... Chimatic legion: 3 Warm i-ligh 0nd Regucwn: 3-Major Darnagle SeismicZone- 1 .Ito DamruageBUILDING A-Building Type A, Section I ��we �... ..--- ..e.-- ..--- e.--- ..e.-- ..--- e.--- ..e.-- ..--- --...w, SUPER TRU TUBE Occupancy: 1010 ApairlrmwenL 2-4 Units Story Heuglwt: S tt, Construction Type: 100 Mascnry(ISO 2) Nuunmiuer of Slone& 2 Gross FloorArea: 2,444 sq,k Irregular None AdjustnmenC onstruuctuon Quality- 2 it•-Average Year B uirt: 2024 Adjustments tlserAdlmrstmmnent Factor. 1,20-resort ra+'uultrlatier 11ir Labor Shortage HilNide Constructrow Degree of Slope Level Site Accessibility^: wood Site Position.Unknown S&I onditionu: Good Fees Architect Fees. 8 is included page 1 of"I'I Appraisal Company of Key West Page 64 3179 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIValuation Detailed Report Property Express Ccare � Policy Number'100-24 311412024 Overhead and Profit, 25%is included jiiiiiiiiiiib CO-S1-5- I-J'se-r S y-,,,s e-m--P.-'r a v i d-e-�d..... ...R.e-p-lar-)eM e-ai I&CIUS-torl SUPERSIRUCTU,R!E Site Preparation $511 Foundatioris 539,353 Foundation Wall lriterior Foundabons Slab On Ground Extenor $135,282 Framing Exter orWall 15%Wall Openings Exterior Wafl '1010%Concrete Block Structural Floor Roof $55,789 Material 100%,Aluminumi Pitch 100%Medium(8:12 to IZ 12 pitch) Interior $192,508 Ffoor Finish 1010%Tile,Ceramic Ceding I'mish 1010%Drywall 1010%Paint parfibous, Length 407 ft Struchire 100%Studs,Girts, etc. Finish 100%Drywall 11010%Paint Mechanicals $242,043 Hearing 100%Forced Warm Air Cooling 1,010%Forced Coal Air Fire Protection 0%Sprinkler System 0%Manual Fire Alarm ystern Cl%Automatic Fire Alarm System Page 2 of 11 Appraisal Company of Key West Page 65 3180 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Valuation Detailed RepoTt Property Express Po icy Number 100-24 3114r2024 SUMMARY OF COSTS, Uset Pwrtatrrdled System Ptara�Ided Reple�ernertt Exclusion m _..__.__m _m ....._. ,.. ., Plumbing 6 Total Fixtures CUectnceU '100 Average Quality Elevators fU Passenger 0 Freight uilit-ins $32,242. SUBTOTAL RC $697,72,9 ADDITIONS custarn Items Covenad Entry $12,000 Total Addatirans $12,0001 TOTAL RC Section 1 S709,729 TOTAL RC BUILDING ING A Building Type A $709,729 _. ._.... ... ....... 1 1�er'flra T SUPERSTRUCTURE Occupancy 100%Apartment, Units Story Heighr: 9 ft. Construc on Type: 100%Masonry(ISO 2"q Number of Stabes 2 Gross Flow Area. 2, g4 sq,ft. NirregWor Norge. Adjustment: Construction Quality: 2.0-Average Year BuiUU:_ Ardju stments User Adjustment Factor 1,20_Restart Multiplier 1 '10-Labor Shortage Hills&Construction: Degree of Slope,level Site Accessibility Good Site Position:Unknown Soil Condition, Graced Pees Arthitect'Lees. d%is rncNuded Overhead;end Profit_ 25%is ancludedl SUMMARY OF COST' 101w#irovilrted _ System P'roidi Ted _ Replacement 'Exclusion SUPERSTRUCTURE mite Preparation $482 Page 3 of,N 1 Appraisal Company of Key West Page 66 3181 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIValuation Detailed Report Property Express Policy Number 100-24 311412024 SUMMARY OF COSTS User P,r o vidled System provided Replacemerlit Exclusion ...... —---—------------ ............---- ................ Foundations $37,809 Foundation Wah Interior Foundations Stab On Ground Extenor $130,263 Framing Extehor all 15%Wall Opening.% Exterior all 100%Concrete Block Structural Floor Roof S53,277 Material' 100%Alurnimum, Pitch 100%Medium 12 to 11 2-112 pitch) Interior $181,96a Floor Finish 11010% Tile, eran* Geding Finisti 1010%Drywall 100%Paint Partitions Length 384 I'L Structure '1010%Studs,this, etc. Finnish 1,00%Drywafl 11010%Paint Mech2rljC21S 5163,950 Heating 100%Forced Warrn Air Cooling '100%Forced Cool Air Fire protection 0%Sprinkler System 0%Manual Fire Alarm Systems 0%Automatic Fire Alarm System Plumbinq 15 T ola I Fixtu res Electrical 100%Average Qualfty Elevators 0 Passenger Page 4 of 11 Appraisal Company of Key West Page 67 3182 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Valuation Detailed Report: 0 Property Express Funky Number 100-24 3114r2O24 SU MAMYMARY 017 COSTS Usor provided System Provided I+"tetrlacennertt` Exclusion tI Freight Built-ins $30,395 SUBTOTAL IBC $598,136 AMiT ON Custom Items Covered Entries $15,0010 Total Additions $15,000, Tt3T'AIL RC Section 1 $613,13G TOTAL RC BUILDING B Building Type 8 613,136 :BUILDING Birfrlleirng,c ------------------------------------------------------------- - �rot�rrnn 1 ...,,.., ........ ...... ,... ... ,..................................... ......... ........ ... ....... ..M.... SUPERSTRUCTURE Qccuparncy° 100%Apartrnent,2-4 Ulnits Story tterght. 91 ft. o nstn ction"I"ype. 1011%1wMaso"i (ISO 2) Number of Stories, 2 Gross:Floor Area: 2,444 sqft Irregular None Adjustment.. Construction Quality:: 10-Average Year Built" ddnrstawnts User Adjustment Factor 1.2.0.Resort IuuMu tnpher 1.10 Labor Shortage Hillside Construction-, Degree of tope Leven SiteAccessibiility-. Good Site Position:Unknown SoilCondition! Good Fees Architect Fees: d%is rncluuded Overhead and Profit, 2 is included rUMMIMAll Y OF COST^ Lls- r 1nrovided.n ...� ystemn Provide �..m Replacermremnt.., Exclusion SUPERSIRLicirtiRE Site Preparation Foundations $r39,3 3 Foundation WaIll Interior Foundabo ns Page 5 of I'1 Appraisal Company of Key West Page 68 3183 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIValuation Detailed Report Property ExpTess r Policy Number '100-24 311412024 SIUIMMAIRY OF,COSTS, User Provided Syslem Provided Replacement Exclusion 111-1---..............--.11-1-111--------------- -—----.............. ........ �t ah On Ground Exterior $135,282 Framring Exte6or Wall '1 %wafl open4igs Exterior Wall 100%C'oncrele Block Structural Floor Roof $5,5,789 Material '11010%Aluminum P40 1010%Medium(8:12 to 12 12 plitch) Interior $1912,508 Floor Finish '1010% Tile,Ceramic Ceiling Finish 100%Drywall 1010%Paint Part.dimns Length 407 ft. Structure 11010%Studs,Girts, etc. Finish '1010%Drywall 100%paint. Mechanicals $167,757 Heating 100%Forced Warm Air Cooling 1010%Forced Coal Aw Fire Protectron 0%Sprinkler System 0%Manual Fire Alarm Syslem 0%,Automatic Fire Alarm System Plumbing 15 Total Fixtures Electncal 10,0%,Average QuaI4 Elevators 0 Passenger 0 Freight Bujift-ins $32,242 ------ ---- SUBTOTAL RC %Z3,442 Page 6 of 11 Appraisal Company of Key West Page 69 3184 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIValuation Detailed Repo�rt o Property ExpTess o r e Po6cy Number: '100-24 3M4r2024 ADDITIONS Custom Items Covered Entries 51-9,000 -—---------....................---............................................................................................................................................................................................................................................................................................ ............-'-"..........---- ........... Total Additions $15,0001 TOTAL,RC Section 1 S638,442 TOTAL RC BUILDING C Building c $638,442 .......... BuIldinigi D Section"l ............................................................................................................................................................................................................................................RSTRUCTURE occupancy: 4010%Office,ILow-Rise Story Height 9 f1 Construction Type: 100%Masonry(ISO 2) Nuimber of Stone& I Gross,Floor Area: 879 sql,ft, Irreguitar None Adlustment Construction Quality, 2.0..Average Year Built Adjustments User Ad ustrnent FaCtDr 1.20-Resort Mu$tipfier 1 10-Labor Shortage Hillside Constructon. Degree of Slope.�Levei Site Accessibihtya Good Site Positiow Unknown Soil)Conditon: Good Fees Architect Feew 8%is mduded Overhead and Profit 25%is included SUMMARY OF COSTS User provided System Pirovided Replacement, Exclusion I ....................................................................................................................................................................................................... SUPERSTRUCTURE Site Preparation $367 Foundatmns $30,794 Foundabon Wall Interior Foundations Shale On,Ground Exterior $49,832 Framing Exterior Wall '15%WWI Openings Page 7of'11 Appraisal Company of Key West Page 70 3185 An Appraisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Valuation Detailed Report Property Express Policy Number '100-24 311412024 UMMAR"1r' ICOSTS tls r Provided System Provided Rep lamc�einvat Exclusion �. . _.,,�,m ... Exterior Wall '1010 Concrete Block. Structural Floor Roof S43,250 Material, 1 fl0 ltlurnirwurn, Pitch 100%Mediums(8:1 to 12,12 pitch) Interior $'46,449 Flog Finish '110 %Tile,Ceramic. Ceding,Finish 100 Drywall 100 Paint P'artlticrws Length 56 ft. Structure 100%Studs,Girts„ etc. Finish 11010 Drywall echaruicats $80„4 4 Healing '1010%Rooftop Unit Cooling 100 Rooftop Unit Fire Protection Plumbing 3 Total Fixtures Flectrrcal 1 f1t1%Average duality Elevators tt Passenger 0 Freight u dit-iris 15,566 TOTAL RC Section 1 $266„695 TOTAL RC BUILDING D Building D $266,695 Replacement SqTt. $f$rgYt. LtgATll1'1... ... -. ..... . -... .......................................... Replacement $„rq,Ft. '$t'srq.Fit. VALUATION GRAND Tt TAL $ 22 ,Ittl1 I1071 $ 76 �. ; _.�.. �.-- �.�.�.�.� �.�.-- �.�..r. _.. �._�Y _ � ------------ Paige 8 of 11 Appraisal Company of Key West Page 71 3186 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIValuation Detailed Report Property Express Corek EQUIPMENT REPORT Po icy Number'100-2.4 311412024 VALUATION Valuation Numiber, 100-24 Effectye Date-. 02/2012024 Value Basis New Construclion Expiration Dater 0211912025 Cost as of" 02Q024 .......... —----- 95295 Overseas Highway 95295 Overseas Hqhway KEY LARGO,IFL 33�O3�7 USA [i:66A'Tf0,N' 1 9 52'-,9,-5,0 e a sih_w'"a''y'- —--------------------------------------------------------------------- 1 .'. ..' .1�....11.................................................. .............. ...... 95295 Overseas Highway. 95295 Overseas Highway KEY I.ARGO,,FL 33�037 USA, Equipment.Buildfirrg items and sits improvements Replacement Depreciated Building A,Section 1 Custom Items (1)Covered Entry S12,000 $12,000 Building B,Section I Custom Items ('11)Covered Entries, $15,000 $15,000 Building C,Section 1 Custom Items (1)Covered Entries, $15,000 $15,0010 —I1 ................ ...... ........$ .........................S_42,000 11 -95295 Overseas 1-fighway,TOTAL TOTAL - $42,,000 ------------- Paige 9 of 11 Appraisal Company of Key West Page 72 3187 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Valuation Detailed Report Property Express SUMMARY REPORT Poky Number 100-24 114r2024 �VALUATIO NCI ` Valuation Number 100-24 EffectTye Date., 02/2012,024 Value Basis" New Construction Expiration Date_ 02119/2025 Gast as of 002.024 --—-------------- ---—----- BUSINESS .61, � . .........4'111 1-1- .-l- -11,.. ...... .......... .. rseas Highway 95295 Overseas Highway KEY LARGO,FL 33037 USA "T-1 0--N'I"--'9'5,29 5 0"—ver"s-e'o-"s' y--—--------------------------------------------------------------------------- ....................................................................................................................................... 95295 Overseas Highway 916295 Overseas Highway KEY LARGO,FL 33037 USA BUILDING A:SUPERSTRUCTURE Eta plaic ement q.Ft. $1Sq.F1. Seclion 1 109% Apartment,241.1snits 5697,729 2,444 $285 �Sec'iian .... ..I Section 1 100% Apartment,2-4 Units $69�7,729 2,444 $286 Total Adftons: 512,000 .. IL DIN ....G........T.....O...T....A............O....u.....l.t...d..i n.g....A............................................ .........$7 09,72.9............................,4....4.............................$.2...9.0 .. . .... . . , ......... - ...... . .......... ......... .... ......... . .... ........... .........BUILDING INSURANCE SUMMARY Total Insured Amount $0 Percent of Insurance to Value 0% 100%Co-insurance Rectutrement $�709,729 $709329 -1100%variance ($709,729) BUILDINIGS:SUPERSTRUCTURE Replacement sq'Xt. $I$q.Ft. ................................................................................ .................................................................. ............... Section 1 100% Apartment.2-4Unds $598,136 2,304 $260 Section Totals Replacement Sq.Ft. SISq.Ft. Section 'l 100% Apartment,2-4 Units $69,6,,E 36 2,304 $260 Total Additions- $613,136 2,304 $266 ................................................................ .................. ............................................................................................................ BUILDING INSURANCE SUMMARY Total Insured Amount Percent of Insurance to Value 0% 100%Co-insurance Requirement $613,1345 $613,136 page 10 of'11 Appraisal Company of Key West Page 73 3188 An,,,"sal,,Report 95295 Overseas Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIValuation Detailed Report Property Express, SUMMARY REPORT Poky Number '100-2.4 311412024 -4010%vaTlance ($613,136y 46 itL 6 i 4 6 L''w''$"'U' I-f It S'�T,R'0CT"-U R E.. ................................. R"ep-la-c-a in'o"n't" 'S q'.F,'t',........ .... ........... Section 't 1100% Apartment,2-4 Units S623,442 2,444 $255 Seclion Totals Replacement Sq.Ft $/Sq.Ft. ............... Section 'l '100% Apartment,2'-4 Units $623,442 2,444 S255 Total Acfdffions: 5 115,000 BUILDINIG TOTAL,Building C S638.442 2,444 $2611 ............. .................................... BUILDING INSURANCE SUMMARY Total Insured Arno unt $0 Percent of Insurance to Value 0% 10,01%Co-insurance Requirement $638,442 $638,442 A 010%Variance ($63B,"2) G D.,SSUPER STRUCT. URE . Replacement Sq.Ft $1S%Ft.... ... . ...........-- ................................................ eee ........................................................ .........Sect 1 100% Office,Low-Rise $266,695 879 $303 Section Totals Replacement S qFt" S tSq Ft, ...............................-—---------------............................................ Section 1 1010% Office,Low-Rme $266,695 879 $303 BUILDING TOTAL,Building D $266,695 879 $30,3 BUILDING INSURANCE SUMMARY Total Insured Arnount so Percent of Insurance to Value 0% 100%Co-tnsurance Requirement $266,696 $266,695 -100%,Variance ($266�,695) Replacement Sq.Ft� SlSq.Fl. ........................................................................................................................................................... ................................... LOCATION TOTAL,Location 1 S2,228,001 'alpm $2'76 Replacement Sq.FL $1Sq.Ft. ............................................................................... ................ ........................ VALUATION GRAND T01FAL $2,222,0,01 8,01711 $276 End of Report Page 11 of 11 Appraisal Company of Key West Page 74 3189 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII i NZE 111MI, am W,, N 11 Quantity/ Effective Total Replacement Depreciate Detailed Cost Estimate Size Unit Cost Age Life e reciatic Cost New Value(A) Estimated Cost:Building A Building A Structure: 2,444 $285.49 0 50 0.0% $697,729 $697,729 Attached Porches 1 0.0% $12,000 $12,000 Cost for 1 Building Type A: $709,729 $709,729 Total Cost for 3 Building Type A Structures: $2,129,187 $2,129,187 Estimated Cost:Building B Building B Structure: 2,304 $259.61 0 50 0.0% $598,136 $598,136 Attached Porches 1 0.0% $15,000 $15,000 Cost for 1 Building Type B: $613,136 $613,136 Total Cost for 6 Building Type B Structures: $3,678,816 $3,678,816 Estimated Cost:Building C Building C Structure: 2,444 $255.09 0 50 0.0% $623,442 $623,442 Attached Porches 1 0.0% $15,000 $15,000 Cost for 1 Building Type C: $638,442 $638,442 Total Cost for 2 Building Type CStructures: $1,276,884 $1,276,884 Estimated Cost:Building D Building D Structure(Office): 879 $303.41 0 50 0.0% $266,695 $266,695 Total Cost for Building Type D Structure: $266,695 $266,695 Total Estimated Replacement Cost for Buildings $7,351,582 $7,351,582 Plus: Site Improvements&Extras: Fence 1 $22,000 0 17 0.0% $22,000 $22,000 Roadway 1 $80,000 0 25 0.0% $80,000 $80,000 Landscaping: 1 $55,000 0 25 0.0% $55,000 $55,000 Total Site Improvements&Extras: $157,000 $157,000 Estimated Value before:Indirect Cost Plus Ent.Profit $7,508,582 $7,508,582 Plus Indirect Costs*: 0.0% $944,000 $944,000 Plus Fntre enurialIncentive**: 0.0% $751,000 $751,000 $1,695,000 $1,695,000 Land Value(28 Units): 85,306 SF $2,600,000 $2,600,000 Estimated Cost Approach: $11,803,582 $11,803,582 Prospective Market Value Upon Completion Via the Cost Approach(Rounded): I S11,800,0001 S11,800,000 Appraisal Company of Key West Page 75 3190 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Indirect Costs: The Indirect Costs in the Reconstruction Cost are based on expenditures for items other than labor and materials, such as professional fees, financing costs, and taxes and insurance during construction. Because of the construction expenses incurred in the Monroe County, including impact fees for similar use structures, plus permit fees, these Indirect Costs are a necessary part of my Cost Approach analysis. It is based on estimated impact fees, plus a percentage (10%) of the Reproduction Cost,which we have found to be consistent. In the case at hand,the overall impact fees were estimated at$192,100. Entrepreneurial Incentive: This cost is a percentage of the replacement cost new of the structures. It is a market-derived percentage which reflects the amount that a developer expects to receive in addition to costs. Based on research within my market area, 5%-15%is a typical anticipated profit or incentive. Depreciation can be categorized into the following groups: a. Physical deterioration. This is an element of accrued depreciation, which can be curable or incurable. Curable physical deterioration is a curable defect caused by deferred maintenance. Incurable physical deterioration is an incurable defect caused by physical deterioration that is impractical or uneconomic to correct. b. Functional obsolescence. This is a loss in value caused by factors inherent within a building or building equipment unit. Factors include changes in construction materials and techniques, which result in excess capital costs in existing facilities;lack of full use of space; and an inability to expand or update the property. C. Economic obsolescence. This is caused by external factors such as general economic conditions, availability of financing, or disharmonious property uses. As the subj ect property project is under construction and will be new once completed, no depreciation has been considered. Indicated Value of Fee Simple Estate Via the Cost Approach (rounded): . . . . . . . . $ 11,800,000 The following construction costs were provided by the subject property owner and contractor of subject project: Appraisal Company of Key West Page 76 3191 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Building A Style: ESTIMATE BUILDING A fp 2024129 PREPARATION PLANS $6,000.00 SURVEY $500.00 SU RV EY-Stake O u t $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Se we r co nne ct $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELLCOMPLETE $188,000.00 ROOFING COMPLETE $12,000.00 W I N DOW S AN D DOO RS $16,000.00 EXTERIOR FINISHES Stucco $21,000.00 Paint $10,400.00 Rail i ngs $16,000.00 Gutters $2,200.00 MEP HVAC $22,000.00 PLUMBING $40,000.00 ELECTRICAL $36,000.00 INTERIOR FINISHES FRAMING INTERIOR $10,000.00 INSULATION $8,800.00 DRYWALL $18,000.00 DOORS $5,200.00 MILLWORK $5,200.00 CABINETS $16,000.00 COUNTERTOPS $12,800.00 MISC.HARDWARE $2,000.00 PAINTING $8,200.00 CLEANING $1,200.00 FLOORING $15,800.00 SITE FINAL GRADE $1,200.00 STO N E YA RD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DUMPSTERS $1,500.00 TERMITE-SOIL POISONING $800.00 BLOWER DOO R C ERTI F ICATE $1,600.00 GREEN BUILDING CERTIFICATE $4,000.00 APPLIANCES $11,800.00 FIRE SUPPRESSION $14,000.00 Appraisal Company of Key West Page 77 3192 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Continued Building A Style: FIRE ALARM $12,800.00 OPERATIONAL COST INSURANCE $6,500.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $10,000.00 ALLOWANCES $20,000.00 PROFIT&OVERHEAD EXCLUDED FROMTHISEXERCISE TOTAL $565,300.00 Please note that the contractor's construction costs have excluded"Profit& Overhead" in information provided. Our building cost is about 25% higher, but it does include contractor's profit and overhead. Appraisal Company of Key West Page 78 3193 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Building B Style: ESTIMATE BUILDING B fp 2024129 PREPARATION PLANS $6,000.00 SURVEY $500.00 SU RV EY-Stake O u t $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Se we r co nne ct $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELLCOMPLETE $188,000.00 ROOFING COMPLETE $12,000.00 W I N DOW S AN D DOO RS $12,000.00 EXTERIOR FINISHES Stucco $21,000.00 Paint $10,400.00 Railings $4,400.00 Gutters $2,200.00 Fire Rate $4,000.00 MEP HVAC $22,000.00 PLUMBING $40,000.00 ELECTRICAL $36,000.00 INTERIOR FINISHES FRAMING INTERIOR $10,000.00 INSULATION $8,800.00 DRYWALL $18,000.00 DOORS $5,200.00 MILLWORK $5,200.00 CABINETS $8,800.00 COUNTERTOPS $6,800.00 MISC.HARDWARE $4,000.00 PAINTING $8,200.00 CLEANING $1,200.00 FLOORING $15,800.00 SITE FINAL GRADE $1,200.00 STO N E YA RD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DUMPSTERS $1,500.00 TERMITE-SOIL POISONING $800.00 BLOWER DOO R C ERTI F ICATE $1,600.00 GREEN BUILDING CERTIFICATE $4,000.00 APPLIANCES $5,900.00 Appraisal Company of Key West Page 79 3194 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Continued Building B Style: FIRE SUPPRESSION $0.00 FIRE ALARM $0.00 OPERATIONAL COST INSURANCE $6,500.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $10,000.00 ALLOWANCES $20,000.00 PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $509,800.00 Please note that the contractor's construction costs have excluded"Profit& Overhead"in information provided. Appraisal Company of Key West Page 80 3195 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Building C Style: ESTI MATE BUILDING C f p 2024129 PREPARATION PLANS $6,000.00 SURVEY $500.00 SURVEY-Stake Out $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Sewer connect $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELLCOMPLETE $188,000.00 ROOFING COMPLETE $12,000.00 WINDOWS AND DOORS $12,000.00 EXTERIOR FINISHES Stucco $21,000.00 Paint $10,400.00 Rail i ngs $4,400.00 Gutters $2,200.00 Fire Rate $4,000.00 MEP HVAC $22,000.00 PLUMBING $40,000.00 ELECTRICAL $36,000.00 INTERIOR FINISHES FRAMING INTERIOR $10,000.00 INSULATION $8,800.00 DRYWALL $18,000.00 DOORS $6,200.00 MILLWORK $6,200.00 CABINETS $8,800.00 COUNTERTOPS $6,800.00 MISC.HARDWARE $4,000.00 PAINTING $8,200.00 CLEANING $1,200.00 FLOORING $15,800.00 SITE FINAL GRADE $1,200.00 STO N E YA RD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LAN DSCAPE $2,500.00 TRASH/DUMPSTERS $1,500.00 TERMITE-SOIL POISON ING $800.00 BLOWER DOOR CERTIFICATE $1,600.00 GREEN BUILDING CERTIFICATE $4,000.00 APPLIANCES $5,900.00 Appraisal Company of Key West Page 81 3196 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Continued Building Style C: FIRE SUPPRESSION $0.00 FIRE ALARM $0.00 OPERATIONAL COST INSURANCE $6,500.00 CLOSING COSTS $0.00 PROJ ECT MANAGEMENT $10,000.00 ALLOWANCES $20,000.00 PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $511,800.00 Please note that the contractor's construction costs have excluded"Profit& Overhead"in information provided. Appraisal Company of Key West Page 82 3197 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Building D Style (Office): ESTIMATE OFFICE BUILDING fp 2024129 PREPARATION PLANS $3,500.00 SURVEY $500.00 S U RV EY-Stake Out $500.00 SU RV EY-Fou ndati on $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Sewer connect $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELLCOMPLETE $68,000.00 ROOFING COMPLETE $8,000.00 W I N DO W S AN D DOO RS $3,600.00 EXTERIOR FINISHES Stucco $6,000.00 Paint $3,200.00 Rail i ngs $2,600.00 Gutters $1,600.00 MEP HVAC $4,100.00 PLUMBING $9,000.00 ELECTRICAL $3,800.00 INTERIOR FINISHES FRAMING INTERIOR $0.00 INSULATION $1,600.00 DRYWALL $0.00 DOORS $600.00 MILLWORK $1,200.00 CABINETS $0.00 COUNTERTOPS $0.00 MISC.HARDWARE $500.00 PAINTING $3,200.00 CLEANING $300.00 FLOORING $5,200.00 SITE FINAL GRADE $1,200.00 STO N E YARD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DUMPSTERS $0.00 TERMITE-SOIL POISONING $300.00 BLOWER DOOR CERTIFICATE $400.00 GREEN BUILDING CERTIFICATE $2,200.00 APPLIANCES $0.00 Appraisal Company of Key West Page 83 3198 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Continued Building Style D (Office): FIRE SUPPRESSION $0.00 FIRE ALARM $0.00 OPERATIONAL COST INSURANCE $2,200.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $5,000.00 ALLOWANCES PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $148,100.00 Please note that the contractor's construction costs have excluded"Profit& Overhead"in information provided. Appraisal Company of Key West Page 84 3199 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 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 only be willing to pay the present value of what she/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 will be an income-producing property, upon completion. The Direct Capitalization Method takes into consideration the current estimated net income, which is capitalized in accordance with prevailing rates 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 as it assumed it will reach stabilization once completed due to the demand in affordable housing. The Income Approach stresses analysis of the income stream which the property is capable of producing. This approach is considered to be the strongest indicator of current fair market value when the property is purchased as an income-producing property having a reliable historical cash flow. The value indicated by this approach was considered due to the reliable income and expense data within the subjects' market area, and weighted heavily in the Prospective valuation of subject property. Similar apartment complexes are typically purchased for their income-producing potential. Hence, the appraiser has considered the Income Approach the most reliable indicator of value and weighted heaviest in the final reconciled value for the of the subject property upon. The Fee Simple Interest is the unencumbered value of the subject property;basically, market rents and terms are considered with no regard to existing leases and terms. The Leased Fee Interest is the ownership interest held by the Lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease terminates. The subject property is not encumbered by any long term leases. The new structures consist of a total of 26,044 square feet of gross living area. The common area office structure contains 879 square feet of gross building area. The project will consist of 11 residential buildings and one office/storage use building. The mix of apartments include 12 one bedroom/one bathroom units, 12 two bedroom/two and one half bathrooms and four three bedroom/two and one-half bathroom employee housing apartments that are subj ect to the current affordable housing rental limits. Fourteen of the units are low(80%of the median income)or a maximum $1,736 per month for the one bedroom units,while 14 of the units are median(100%of the median income)or a maximum of$2,443 per month for two bedroom units and $2,713 per month for three bedroom units. Appraisal Company of Key West Page 85 3200 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII The 2023 Affordable Rental Income Limits are as follows: MONROF C 01 JN IN.VIA:1W A 1"1ANNI G,&i�N''�^1[�1�NM 1 1 Al ozlrSm r1�u�C��s 1ar��" 1��1 naw.rs r 271)8 R:ivc wea.w klrn y,Suite 401),Max,afljogi,H 11050 (305)289-�2500 Rental Affordable 1"Jousing Units Monroe County 2023 Qualifying Income Limits Income Limits for Single Persons Household Sire Very Low Low Median moderate 1 P rsun $35,000 S6(1,800 $7'6,000 ! '1 2110 2 Persons $43,400 S69,450 54(6,800 $104,1 60 3 Pcr atw $4 g 50 75,150 $97,700 $117,�240 4 Persons $54,250 _ WOO()OO $1t15,5(1(4 5130,200 _. 5 Persons, _ $511,6W) $93,750 $117,200 $1=40,640 6 Pe,rmis $62„950 5100,7(.1(1 $125„900 $151,080 7 Persons V',7,300 $107,650 $134, �,)(9 $161,5 0 Persons $71,6514 51 14,600 $143,300 �.. $171 m".160 _ 11urMC"C §11l1-V �,ffinan'ublc•t�lmjsmg;;1)0V atkjns Income Limits for Married or:Domestic Partners hl ��nwclrold irc� Very Low Law 1411ediall Moderate 2 Persotws $57,867 $92,601) $1 i13,73,3 $13 , 80 3 Persons, $65„133 ' 104„200 $1344,2(Y7 $156,320 =4 Persons $72,333 $115,733 $144,667 $173,600 S Irc's,onsn 78,133 5125, 00 $156,2,67 $157,52() -. _..... 6 Persons $ 3,"133 5134,267 $167, 67 S201,440 7 Pcmms, S89,733 S 143„533 $179,467 $215,360 8 Pusoias '3ya)5,533 S 152,800 $191„067 5229,280 Po Su1""C:"§1 49-II{nsrygdr?(y1 Maximuni ,Monthly Rental Rates 1 llit Size �ler1, UW Low Median Moderate E4°iicicj,iq $950 51,520 $1,900 52,180 1 bedroonw $1,085 $1,736 $2,170 $2,(°4)4 2 berdroorms $1,221 $1,95f4 $2„4�43 $2,�93] 3 bcdroonis S1,356 $2 170 $2,713 S3,255 4+bedmoms $1,465 $2,344 542,930 t"3,5M 11cl,MCC and Dufl`ra"iRmm, Appraisal Company of Key West Page 86 3201 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Another residential apartment complex, known as Seaward landing is located in Marathon and offers one, two and three bedroom units. This project is also under affordable guidelines. The rents for this project range from $2,050 for one bedroom units, $2,290 for two bedroom units and $3,051 for three bedroom units. This project is a workforce housing project whereby the tenants are required to be at 120% of the Area Median Income. Furthermore, a project known as The Quarry 11,located in Big Coppitt Key, offers affordable workforce housing for very low to moderate income limits. This project includes one,two and three bedroom units with rents ranging from $1,071 to $2,226 for one bedroom units depending on income level, rents ranging from $1,292 to $2,677 two bedroom units depending on income level and lastly, the three bedrooms unit rents range from $1,497 to $3,096 depending on income levels. There are only six out of 96 units a the very low income level. Finally, Keys Lake Villas in Key Largo is a 110 unit wood frame two-story project that is subject to moderate income affordable housing rental restrictions. The two bedroom/one bathroom units rent for $1,845 per month, while the 3 bedroom2 bathrooms units rent for $2,835 per month. Appraisal Company of Key West Page 87 3202 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Based upon the guidelines set forth by Monroe County, Florida and comparables, the appraisers have projected the following prospective potential rent schedule. Please note that the subject project is planned to be completed in 2025; thus, we forecasted a conservative 5% increase in rents about 2023 restrictions. Projected Rent Site Plan Current 2025 Bldg. Unit Bldg. Sq Ft. Income Projected Projected Nos. # Use/Type S .R. Porches Level Rent Rent 1 1 1 Bedroom/1 Bath 611 401 Low $1,736 $1,823 2 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 3 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 4 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 2 1 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 2 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 3 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 4 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 3 1 1 1 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 2 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 3 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 4 1 Bedroom/1 Bath 611 40 Low $1,736 $1,823 4 1 2 Bedroom/2.5 Bathrooms 1,152 108 Low $1,954 $2,052 2 2 Bedroom/2.5 Bathrooms 1,152 108 Low $1,954 $2,052 5 1 2 Bedroom/2.5 Bathrooms 1,152 108 Median 1 $2,443 $2,565 2 2 Bedroom/2.5 Bathrooms 1,152 108 Median $2,443 $2,565 6 1 2 Bedroom/2.5 Bathrooms 1,1521 108 Median $2,443 $2,565 2 2 Bedroom/2.5 Bathrooms 1,152 108 Median $2,443 $2,565 7 1 2 Bedroom/2.5 Bathrooms 1,152 108 Median 1 $2,443 $2,565 2 2 Bedroom/2.5 Bathrooms 1,152 108 Median $2,443 $2,565 8 1 2 Bedroom/2.5 Bathrooms 1,152 108 Median $2,443 $2,565 2 2 Bedroom/2.5 Bathrooms 1,152 108 Median $2,443 $2,565 9 1 2 Bedroom/2.5 Bathrooms 1,152 108 Median 1 $2,443 $2,565 2 2 Bedroom/2.5 Bathrooms 1,152 108 Median $2,443 $2,565 10 1 3 Bedrooms/2.5 Bathrooms 1,222 110 Median $2,713 $2,849 2 3 Bedrooms/2.5 Bathrooms 1,222 110 Median $2,713 $2,849 11 1 3 Bedrooms/2.5 Bathrooms 1,222 110 Median $2,713 $2,849 2 3 Bedrooms/2.5 Bathrooms 1,222 110 Median $2,713 $2,849 28 Totals: 26,044 $60,022 $63,026 Appraisal Company of Key West Page 88 3203 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII The office building includes a computer area for tenants and office space for property manager if space is needed. As it offers services attached to the project, a separate rent has not been applied to this space. As previously noted these estimate rents are subject to on the Monroe County Affordable Rent Guidelines and based on Rent Comparables. The Effective Gross Rental Income is $63,026 per month times 12 months or $756,312 annually less $15,126 (2%a/c) equals $741,186. Vacancy and Collection Allowance: Within the affordable and work force housing market, new construction has been slow; therefore, demand continues to be great hence vacancies and collections have been nominal. The subject property's historical vacancy and collection rates have been minimal. According to local affordable or workforce housing apartment complexes and mobile home parks.Three projects that the appraisers were aware of were fully pre-leased with a waiting list upon completion. A conservative 2%vacancy and collection loss was projected due to demand and small number of units. As a result, the subject's property will achieve stabilized occupancy upon completion of construction. Appraisal Company of Key West Page 89 3204 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll The following chart depicts the appraiser projections for the subject property. WE Income&Expense 28 New Atfordablc Units S $lUnit % Effective Gross Rental Income: S741,186 $26,471 %ofEGI Total Operating Income: S741,1861 S26,471 Operating Expcnscs: %ofTOI Real Estate Taxes $0 $0 0.0% Insurance $52,088 $1,860 7.0% General&Administrative $11,118 $397 1.5% Salaries&Wages/Management $37,059 $1,324 5.0% Repairs&Maintenance $22,236 $794 3.0% Common Area Utilities $4,800 $171 0.6% Reserves $7,412 $265 1.0% Total Expenses S134,713 $4,811 18.2% Net Operating Income: I S606,473 $21,660 81.8% Real Estate Taxes: As the client and potential buyer is a government entity,the subject property will not be assessed a real estate tax burden and has not been included in the valuation herein. Insurance: The appraisers were not provided insurance projections. As a result, the appraisers have estimated the following insurance expense of$52,088 based on the new construction and hurricane impact windows and doors. If this expense is higher, than projected the valuation maybe affected. General&Administrative: Based upon other properties and market data,the appraisers projected 1.5% of effective rental revenue. Management Fees: Typical managementfees are based on Total Operating Income(T.O.I.)which ranges from 4%to 8%for commercial multi-unit apartment properties. Due to the number of units and layout, unit mix, we projected 5% of Total Income. Repairs and Maintenance: This expense is for common area repairs and routine maintenance. The appraisers projected this expense at 3% of Total Income due to it being a new complex. Typical range of expenses is 2%to 5%. Appraisal Company of Key West Page 90 3205 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Utilities and Common Area Services: The new apartments and the utilities will be separately metered and billed to the tenants. This is utilities for common area. The appraisers projected this expense at approximately 0.6% or $400 a month. Reserves for Replacement: This expense includes items which have a shorter economic life than the building. The economic lives of the items are estimated by their quality, durability and the amount of the use(wear and tear)expected to be received. The appraisers projected 1.0%of Total Income,which equals $252 per unit, which is well supported by lgt Quarter 2024 RealtyRates.com information, indicating the minimum of$165 per unit and the typical reserve expense per unit at$418. The subject buildings and units are all on the smaller side of the spectrum. 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 below. Band of Investment Model or Morwa�ze Equity Method: Assume a mortgage of 70% of the value, 6.0%interest with a 30-year term,the mortgage constant will be 0.0773; a down payment of 30% as equity and an Equity Capitalization of 8.0%. Comparable Sales Analysis: Based on sales comparable, the appraisers have estimated 6.0% capitalization rate for the subject property via the Comparable Sales Method, based on the following Multi-family properties, plus RealtyRates.com which indicates national surveyed rates for garden/suburban apartments at 5.32%to 11.13%with a mean at 7.8%. The local market based on multi-family housing sales was 6.6%to 8.3% with a mean of 7.6%and a median of 7.6%. We also, analyzed sales of much larger affordable housing projects, the Capitalization rates ranged from 4.3%to 6.0%with a mean at 5.1% and a median at 4.9% Based on the subject's use,design,tenant mix, smaller number of units and location,the appraisers have estimated an overall rate at the midrange of the market spectrum at 6%. Debt Coverage Analysis: An overall rate based on the Debt Coverage Method was estimated at 7.3%. After analysis of current financing availability for similar properties with quoted rates ranging from 5.0%to 6.5% and loan-to- value ratios of from 70%to 80%, the appraisers estimated a 7.73% mortgage constant for the subject property with a loan-to-value at 70.0%. A debt coverage ratio of 1.35 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 at 7.3%. A reconciled Overall Rate (OAR) of 6.25% 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 91 3206 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Reconciliation: The three methods utilized in estimating an OAR for the subject property indicate the following Overall Rates: Development of Capitalization Rate Loan Ratio 70.0% Loan Term(Years) 30 Loan Rate 6.00% Equity Capitalization Rate 8.00% Band of Investment Method Cap. Capital Source Portion Rate Rate Mortgage Loan 70.00% 7.19% 5.04% Equity Funds 30.00% 8.00% 2.40% Overall Rate 7.44% Overall Rate Via Band of Investment Method(Rounded): 7.40% Debt Coverage Analysis Debt Coverage Ratio 1.30 X Loan to Value Ratio 70.0% X Mortgage Constant 0.0719 Overall Rate 6.55% Overall Rate Via Debt Coverage Analysis (Rounded): 6.50% Market Derived Capitalization Rates: Local Realty Rates .Com 1st Quarter 2024: Mkt. Apartments Garde n/Suburban Low 5.32% 6.6% High 11.13% 8.3% Average 7.80% 7.6% Median N/A 7.6% Overall Rate Via Market Approach (Rounded): 6.001NO Reconciled Overall Rate: 6.25% Appraisal Company of Key West Page 92 3207 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illlllllllllllllllllllllllllllllllllllllllllllillllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Capitalization: The appraisers projected a reconciled capitalization rate of 6.25% percent based on the current capitalization rate estimated as follows. It is anticipated that the risk is less with the new buildings completed. The Capitalization rate does consider the current higher interest rates, if the long-term interest rates drop in later 2024 and 2025, then there could be some movement downward in the rate. The subject's Prospective Value via the Income Approach is the Net Operating Income divided by the Capitalization Rate. Subject Gross Building Area: 26,923 No. of Units: 28 Net Operating Income: $606,473 Value Per Value Per Divided by Capitalization Rate: 6.25% SF of Land Unit "As Is" Value Via the Income Approach (Rnd): $9,700,000 $360.29 $346,429 "PROSPECTIVE"VALUE OF THE SUBJECT PROPERTY UPON COMPLETION OF CONSTRUCTION AND UPON ACHIEVING STABILIZED OCCUPANCY VIA THE INCOME APPROACH (ROUNDED) Is: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,700,000 Conclusion The Income Approach is a reliable approach to properties that are purchased for their income capabilities.In the case at hand,the subject property will consists of a total of 28 non-transient affordable housing units. As previously noted, there is a limited supply of similar use properties and there are barriers for new potential competition. This approach was considered and weighted heavily in the final indicated value for the subject property. Appraisal Company of Key West Page 93 3208 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII THE SALES COMPARISON APPROACH The Sales Comparison Approach is an appraisal technique in which the market value estimate is based on the prices paid in actual market transactions and current listings. The actual transaction will fix the lower limits of value in a static or advancing market and higher limit in a declining market. It is a process of correlation and analysis of similar properties that recently sold in the subject's market area. This approach 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 denominators"to be applied to the subject building. Typically,the sales price per square foot of the building area and sales price per unit, and the overall sale prices are the most common denominators used in estimating the value of the properties similar to the subject. In this case, the subject property consists of 11 new CBS block structures encompassing 28 affordable housing residential units. The gross living area of the subject property is 26,044, plus 879 square feet of office/storage use resulting in a total of 26,923 square feet of gross building area. In the case at hand, the best indicator of value was price per unit. Adjustments are made to the indicated sale prices 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 A thorough search was conducted for recent sales of similar multi-family projects; however, extensive market research has revealed an extremely limited number of sales similar to the subject property especially with affordable housing rental guidelines. Therefore, the Sales Comparison Approach was given moderate weight. The following chart summarizes relevant units of measure of the comparable sales. Appraisal Company of Key West Page 94 3209 0 N M � C �00 00 M R R M R 69 69 69 69 z R \O M N N� 69 69 69 69 vl M O \O O r M I v1 vMi 00 N M M M M R 69 69 69 (A C ^I G p d � W � w 0 10 00 M N R r 10 00 a ~ M h N O O O Z o 0 N o O M N N N O O M ai O O G y OID A O U to ti ,ram O N An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII SALES COMPARABLE MAP IN /r / r r / �i f �r r / a i r, / r .r a it r � W r / // rr / / / / f u r r r / r / r / / f / Appraisal Company of Key West Page 96 3211 An Appppsisal Repport 95295 Overseas Hig�hwaayy, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111�1111111111111111111111111111111111111111111111111III�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IMPROVED SALE NO. 1 NO PROPERTY TYPE: Multi-Family CURRENT USE: Multi-Family PROPERTY LOCATION: 5176 Suncrest Road, Stock Island, Florida 33040 DATE OF SALE: 003/30/23 DAYS ON MARKET: N/A SALE PRICE: $2,900,000 LISTING PRICE: N/A RATIO: N/A GRANTOR: Longstock H, LLC GRANTEE: KW Suncrest, LLC DOCUMENT TYPE: Warranty Deed: OR Book 2262, Page 3218 LEGAL DESCRIPTION: Lots 27-28 suncrest and Adj Bay Bottom PARCEL ID: RE 900132680-000000 ALTERNATE KEY# 1167142 VERIFICATION: Monroe County Public Records/Owner/Seller/Inspection Appraisal Company of Key West Page 97 3212 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll IMPROVED SALE NO. 1 (Continued) FINANCING: Cash CONDITIONS OF SALE: Arms Length PRIOR SALES LAST 3 YEARS: 04/22/2022 $3,000,000 LAND SIZE: 24,500SF GROSS BUILDING AREA: 6,420 SF ZONING: MU, Mixed Use, Monroe County BUILDING DESCRIPTION: Two, Quadraplex Story Structures CONSTRUCTION: Modular CONDITION: Very Good/Excellent YEAR BUILT: 2021 PARKING: Off-Street, Covered parking, On-Site WATERFRONT: Environmentally Sensitive wetlands PRICE PER SQUARE FOOT OF GBA: $451.71 PRICE PER UNIT: $362,500 EST. EFFECTIVE GROSS INCOME: $237,489 (Projected) EST. NOI- NET OPERATING INCOME: $176,648 EST. EGIM- EFFECTIVE GROSS INCOME MULTIPLIER: 12.2 EST. OVERALL RATE: 6.1% COMMENTS: This sale is improved with two, elevated two-story wood frame modular construction structures containing a total gross area of 6,420 square feet,which encompasses eight two bedroom/two bathroom apartments. These units are designated as workforce housing. The buildings were constructed in 2021. APPRAISED BY OUR OFFICE: Yes DATE: November 2021 FILE NUMBER: 253-21 Appraisal Company of Key West Page 98 3213 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IMPROVED SALE NO. 2 , A PROPERTY TYPE: Multi-Family CURRENT USE: Multi-Family PROPERTY LOCATION: 1209 Virginia Street, Units 1-1A-8, Key West, Florida 33040 DATE OF SALE: 11/30/2021 DAYS ON MARKET: 203 SALE PRICE: $3,800,000 LISTING PRICE: $4,000,000 RATIO: 95.0% GRANTOR: James Hettinger GRANTEE: LLC for Noble House (Hotels Owners) DOCUMENT TYPE: Warranty Deed LEGAL DESCRIPTION: Units Nos. 1, IA,through 8 of Casa Gato Condominium, a Condominium, according to the Declaration of Condominium recorded in Official Records Book 1403,Page(s) 1469, Public Records of Monroe County,Florida, and all subsequent amendments thereto,together with their undivided shares in the common elements. PARCEL ID: RE #0033840-000100 (Association), 0033840-000100, 0033840-000102, 0033840- 0001003, 0033840-000104, 0033840-0001005, 0033840-0001006, 0033840-0001007 and 0033840- 000108 VERIFICATION: Monroe County Public Records/MLS/Listing Agent/Realtor FINANCING: Conventional CONDITIONS OF SALE: Arms Length Appraisal Company of Key West Page 99 3214 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll IMPROVED SALE NO. 2 Continued) PRIOR SALES LAST 3 YEARS: None recorded LAND SIZE: 16,167 SF GROSS BUILDING AREA: 8,229 SF ZONING: HMDR, Historic Medium Density Residential, City of Key West BUILDING DESCRIPTION: One, two-story frame residential use building containing seven units, plus two, one-story CBS/Masonry cottages CONSTRUCTION: Wood Frame & CBS/Masonry CONDITION: Average/Above Average YEAR BUILT: 1911 PARKING: Off Street(Two Spaces) WATERFRONT: No PRICE PER SQUARE FOOT OF GBA: $461.78 PRICE PER UNIT: $422,222 EST. EFFECTIVE GROSS INCOME: $216,200 EST. NOI- NET OPERATING INCOME: $162,150 EST. EGIM- EFFECTIVE GROSS INCOME MULTIPLIER: 17.6 EST. OVERALL RATE: 4.3% RENT DATA: 3/2 $2,500 per month, RENTABLE SPACE: 7,142 SF 1/1 $1,80041,950 per month COMMENTS: This is the sale of a nine unit, non-transient residential use property. This property is not subject to affordable housing restrictions; however, the rents were similar to the upper tier of restrictions.This property was originally constructed as the Mercedes Hospital.In 1991 it was converted to condominium ownership as the Casa Gato Condominium. The units were never sold individually but rented as a multi-family project. This comparable recently sold to Noble House,owners of several resort Appraisal Company of Key West Page 100 3215 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII hotels and was purchased for employee workforce housing as one economic unit. There are seven units in the main structure and two cottages near the pool. The unit mix ranges from one bedroom/one bathroom to three bedroom/two bathroom units. APPRAISED BY OUR OFFICE: N/A DATE: N/A FILE NUMBER: N/A Appraisal Company of Key West Page 101 3216 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IMPROVED SALE NO. 3 PROPERTY TYPE: Multi-Family CURRENT USE: Multi-Family PROPERTY LOCATION: 5312 Third Avenue, Stock Island, Florida 33040 DATE OF SALE: 04/03/2020 DAYS ON MARKET: N/A SALE PRICE: $4,400,000 LISTING PRICE: N/A RATIO: N/A GRANTOR: 5312 Third Avenue, LLC GRANTEE: SPGL, LLC DOCUMENT TYPE: Warranty Deed: OR Book 3017, Page 220 LEGAL DESCRIPTION: 12-14, Block 53, Stock Island Maloney Sub, PARCEL ID: RE 900126710-000000 ALTERNATE KEY# 1160911 VERIFICATION: Monroe County Public Records/Owner/Seller Appraisal Company of Key West Page 102 3217 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll IMPROVED SALE NO. 3 (Continued) FINANCING: Cash CONDITIONS OF SALE: Arms Length PRIOR SALES LAST 3 YEARS: None LAND SIZE: 22,500SF GROSS BUILDING AREA: 12,775 SF ZONING: MU, Mixed Use, Monroe County BUILDING DESCRIPTION: Six, Two Story Structures CONSTRUCTION: Most CBS/Masonry, Some Wood Frame CONDITION: Excellent YEAR BUILT: 1953/1998/1963/2018 PARKING: Off-Street, On-Site WATERFRONT: No, Dry PRICE PER SQUARE FOOT OF GBA: $344.42 PRICE PER UNIT: $314,286 EST. EFFECTIVE GROSS INCOME: $380,000 EST. NOI- NET OPERATING INCOME: $270,000 EST. EGIM- EFFECTIVE GROSS INCOME MULTIPLIER: 11.6 EST. OVERALL RATE: 6.1% COMMENTS: This sale consists of six, two-story CBS/Masonry structures containing a total of 14 units. This property also includes a private swimming pool. This property was historically utilized for low income housing and became lender owned. Later, the property was purchased in 2014 and totally renovated with three new structures built in 2018.It was later purchased during the start of the COVID- 19 Pandemic for workforce housing. According to the owner, he sold the property at a discount quickly Appraisal Company of Key West Page 103 3218 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII due to COVID-19. This property was purchased for County Sheriff and Law Enforcement workforce housing. APPRAISED BY OUR OFFICE: N/A DATE: N/A FILE NUMBER: N/A Appraisal Company of Key West Page 104 3219 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Adjustment Grid: Each of the comparable sales was analyzed in order to make comparisons to the subject parcel. Due to the lack of paired sales, percentage adjustments were not utilized. Based on the characteristics of the individual sales,the appraisers have provided an adjustment grid which details the required adjustments for the comparable properties based on the comments above. A plus (+) sign indicates that the comparable's characteristic is inferior to the subject's, therefore requiring an upward adjustment. A minus (-) sign indicates that the comparable's characteristic is superior to the subject's, therefore requiring a downward adjustment. An equal (=) sign reflects that the comparable's characteristic is similar to the subject's. The following grid summarizes each sale and shows the necessary adjustments as previously described: Adjusted Sales Price NA $2,900,000 $4,062,000 $4,943,000 Sales Date NA 3/30/2023 11/30/2021 4/3/2020 GBA(SF) 33,351 6,420 8,229 12,775 No.of Units 28 8 9 14 Average Size Per Unit 1,191 803 914 913 Lot Size 85,306 24,500 16,167 22,500 Location Mixed Similar Similar Similar Construction Quality CBS/Masonry Frame Modular Combo Older CBSIMasonry Condition At Time of Sale New Excellent/New Avg/Abv Avg Excellent Adjustments Adjusted Price Per Unit NA $362,500 $451,333 $353,071 Financing/Sales Cond. NA No.of Units 28 Average Size Per Unit 1,191 + + + Location Mixed + --- + Construction Quality CBS/Masonry + + _ Condition At Time of Sale New = + _ Indicated Overall Adjustment ++ + Note:+Indicates Comp Inferior to Subject(Pos Adj to Subject) Effective Date: 2/20/2024 $400,000 Appraisal Company of Key West Page 105 3220 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illlllllllllllllllllllllllllllllllllllllllllllillllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Discussion of Comparables Sales: Each of the comparable sales was also analyzed in order based on the following factors to make comparisons to the subject property. Although not all of the sales are identical to the subject property, they were still considered representative of the market. I analyzed three comparable sales in the previous adjustment grid as they are considered the most similar to the subject.Each sale is considered generally similar to the subject, although none of the sales are identical. 1. Market Conditions: I utilized sales from April 2020 to present. I only included sales which transpired, post the COVID-19 pandemic outbreak. Sales activity and prices actually increased significantly in 2021, mainly due to employers looking to acquire workforce housing to attract and keep staff. An older comparable indicated a paired sales an appreciation rate of 5.6%per annum, the appraisers conservatively applied a three percent appreciation rate per annum for a positive market conditions to Sales 2 and 3. 2. Financiny,/Condition of Sale: All of the comparable sales were considered cash equivalent, either cash or owner financing at market rates. Thus, none of the comparables required adjustment for financing. All of the Sales were considered to be an arm's length transactions. Sale 3 was purchased for workforce housing when it was purchased by a benefactor for law enforcement housing. The seller sold the property at a discount during the lockdowns of COVID-19 pandemic. Thus, it was positively adjusted herein. 3. Number of Units: Typically number of units and sales price per unit are inversely related. Lower number of units typically sell at a higher price per unit. As a result, each comparable required an adjustment. 4. Average Unit Sise: The subject encompasses 28 units, with an average size of approximately 1,191 square feet of gross living area. The appraisers estimated the average unit size of the comparables. Typically,the larger the average unit size,then the higher the price per unit. All of the sales were smaller in average size; thus, they were positively adjusted herein. 5. Location: The subject is located on a dry tract in a mostly residential area, towards the rear of the parcel. Sales 1 and 3 have mixed, residential and warehouse/light industrial uses nearby. Thus,they were positively adjusted. Sale 2 is located in a superior location in Mid Town Key West, which required a significant negative adjustment. 6. Construction and Condition: Sales 1 and 2 were considered overall inferior in quality of construction as the subject property is new construction with impact windows and doors and CBS block. Sale No. 3 was considered similar overall in quality of construction and condition. Sales 1 was recently constructed and considered similar overall in condition. Appraisal Company of Key West Page 106 3221 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Value Conclusion: Based upon the adjustment grid,the appraisers estimated a value per unit of$400,000 to be deemed appropriate for the subj ect property based upon the condition,the utility, and size. The appraisers placed the most weight on Sales No. 1 and 2, as they are more recent. $/Unit Number of Units = Value (rounded) $400,000 X 28 = $11,200,000 The comparable sales indicated an unadjusted value per unit range from $353,071 to $451,333 with a mean at$362,500 and a median at$388,968. The subject's value at$11,200,000 is $400,000 per unit, which is reasonable based on it being brand new construction with upgraded finishes (for affordable housing). In addition,the Sunset Marina Apartments,which is located on North Stock Island,consists of a recently built 60-unit modular elevated two-story apartment complex. This project contains 23 market rate units and 37 affordable housing units. This property had six offers from about $24 to $26 million, but the accepted deal fell thru due to the onset of COVID-19 Pandemic. The property was taken off the market, but the highest offer was at$433,333, per unit. PROSPECTIVE MARKET VALUE UPON COMPLETION OF CONSTRUCTION AND ACHIEVING STABILIZED OCCUPANCY OF THE FEE SIMPLE ESTATE OF THE SUBJECT PROPERTY AS INDICATED BY THE SALES COMPARISON APPROACH(Rounded). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,200,000 Appraisal Company of Key West Page 107 3222 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII RECONCILIATION AND CONCLUSION The following indications of values have been developed in my analysis of market data. t 11 l Cost Approach: Not Applicable Income Approach: Not Applicable Sales Comparison Approach: $3,840,000 "As Is" Market Value as of February 20,2024 (Rounded): I $3,840,000 r Jf f Cost Approach: $13,200,000 Income Approach: $9,700,000 Sales Comparison Approach: $11,200,000 Prospective Market Value Upon Completion of Construction as of December 1,2025 (Rounded): $11,200,000 The Cost Approach is based on the estimated value of the land(developed through comparison),and the depreciated cost of the site improvements. Since a large portion of the subject's value island value,plus the existing improvements are proposed, new construction, there is no depreciation, then the Cost Approach is reliable for the"Prospective" Valuation. The Cost Approach was weighted moderately in the final reconciliation. The Income Approach is most applicable to properties that are typically purchased for their income- producing capabilities. Commercial property usually does fall within this category when purchased by investors who hold it for its potential rental income. The subject property will be developed with 28 affordable housing units. Thus,this approach was considered as most appropriate and weighted heavily in the final value conclusion as the subject property will be an investment property with reliable market data available herein. The Sales Comparison Approach is a direct measure of the buying and selling behavior of the partici- pants in the real estate market. This approach directly measures what sellers are accepting and buyers are paying for property. Therefore, if a significant number of comparable sales have occurred and are available for analysis,then the Sales Comparison Approach becomes an important method in developing a value indication. This approach was deemed applicable; however, was only moderately weighted in the final value, as the recent sales available for analysis were different from the subject in age, condition and location. Appraisal Company of Key West Page 108 3223 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII It is our opinion,based on analysis of market data, site visit and walk through of the subject property and research,plus review of the construction site plan,floor plans,construction costs,that our opinion of the "As Is" Market Value of the Fee Simple Estate in the Subject Property based on entitlements for 28 affordable housing units, plus considering the infrastructure and partial construction, located at 95295 Overseas Highway,Key Largo,Monroe County,Florida,subj ect to definitions,assumptions and limiting conditions, as of February 20, 2024 is: THREE MILLION EIGHT HUNDRED FORTY THOUSAND DOLLARS ($3,840,000) Furthermore,it is our opinion,based on analysis of market data, site visit and walk through of the subj ect property and research, plus review of the construction site plan, floor plans, construction costs, and construction time line for the proposed multi-family buildings that our opinion of the Prospective Market Value of the Fee Simple Interest in the Subject Property Upon Completion of Construction and Upon Achieving Stabilized Occupancy based on 28 affordable housing units, located at 95295 Overseas Highway, Key Largo, Monroe County, Florida, subject to definitions, assumptions and limiting conditions, as of December 1, 2025 is: ELEVEN MILLION TWO HUNDRED THOUSAND DOLLARS ($11,200,000) Appraisal Company of Key West Page 109 3224 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll CERTIFICATE OF APPRAISAL WE HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY: MR.KEVIN G.WILSON,P.E. MONROE COUNTY ASSISTANT COUNTY ADMINISTRATOR 102050 OVERSEAS HIGHWAY,SUITE 213 KEY LARGO,FL 33037 We have personally examined the following described property: COMMONLY KNOWN AS: SOUTHCLIFF ESTATES 95295 OVERSEAS HIGHWAY KEY LARGO,MONROE COUNTY,FLORIDA 33037 and based on analysis of market data, site visit and walk through of the subject property and research, plus review of the construction site plan,floor plans,construction costs,that the estimate Asls"Market Value of the Fee Simple Estate in the Subj ect Property based on entitlements for 28 affordable housing units,plus considering the infrastructure and partial construction, located at 95295 Overseas Highway, Key Largo, Monroe County,Florida, subject to definitions, assumptions and limiting conditions, as of February 20, 2024 is: THREE MILLION EIGHT HUNDRED FORTY THOUSAND DOLLARS ($3,840,000) Furthermore,it is my opinion,based on analysis of market data, site visit and walk through of the subj ect property and research, plus review of the construction site plan, floor plans, construction costs, and construction time line for the proposed multi-family building that the estimate Prospective Market Value of the Fee Simple Interest in the Subj ect Property Upon Completion of Construction and Upon Achieving Stabilized Occupancy based on 28 affordable housing units,located at 95295 Overseas Highway,Key Largo, Monroe County, Florida, subject to definitions, assumptions and limiting conditions, as of December 1, 2025 is: ELEVEN MILLION TWO HUNDRED THOUSAND DOLLARS ($11,200,000) WE ADDITIONALLY CERTIFY that, to the best of our knowledge and belief: o The statements of fact contained in this report are true and correct. Appraisal Company of Key West Page 110 3225 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII o The reported analyses,opinion,and conclusions are limited only by the reported assumptions and limiting conditions,and are our personal,impartial,and unbiased professional analyses,opinions and conclusions. o We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. o Our engagement in this assignment was not contingent upon developing or reporting predetermined results. o We have not made a prior appraisal of the subject property in the prior three years. o Our 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, while directly related to the intended use of this appraisal. o Our 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, MAI and Maria Virginia Wilson have made a site visit of the property that is the subject of this on February 20, 2024. o The use of this report is subject to the requirements of the State of Florida relating to review by theFlorida Real Estate Appraisal Board of theDepartment of Professional Regulations,Division of Real Estate. 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 use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. o James E.Wilson,MAI,MRICS,has completed both the Standards and Ethics education program requirements of the Appraisal Institute for Members. Appraisal Company of Key West Page 111 3226 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�llllllllllllllllllllllllllllllllllllllllllllllllllll�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII APPRAISAL COMPANY OF KEY WEST James E. Wilson, MAI, MRICS, President Maria Virginia Wilson State-certified general real estate appraiser State-certified general real estate appraiser RZ 2164 RZ2686 Appraisal Company of Key West Page 112 3227 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ASSUMPTIONS AND LIMITING CONDITIONS APPRAISAL DEVELOPMENT AND REPORTING PROCESS: In preparing this appraisal, the appraiser inspected the subject site and both the exterior and interior of some of the improvements. Information on comparable land and improved sales were gathered, confirmed, and analyzed. This is an appraisal report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a)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. Such discussion of the data would not change the appraisers' 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. The appraisers are not responsible for unauthorized use of this report. In preparing this appraisal, the appraiser visited the subject site. Information on comparable land redevelopment sale, improved sales, rent and expense was gathered, confirmed, and analyzed. THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS: 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 they are connected. The distribution of value between land and building applies only underthe present program of utilization and is invalidated if used in making a summation appraisal. No responsibility is assumed by the Appraiser for matters,which are of legal nature, nor is any opinion on the title rendered herewith. Good title is assumed. The property has been appraised as though free of liens and encumbrances, except as herein described. The management of the property is assumed to be competent and the ownership in responsible hands. According to the survey provided, performed by Form Tech Land Surveying, 12995 S.W. 42"d Street, Suite 3, Miami, Florida, dated February 2, 2023, the subject site consists of an irregular shaped site containing 85,306 square feet or 1.96 acres. The subject site include approximately 212 linear feet along the southeasterly side of Overseas Highway. Any deviations from these sizes would likely result in a change in value. In the appraisal of the subj ect property, we have assumed that there are no toxic or environmental hazards present. Appraisal Company of Key West Page 113 3228 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 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. Minor encroachments are typical in this market and have not affected the sale of properties. If an updated survey is made available and if any discrepancies are noted due to easements and/or encroachments,we reserve the right to change the final indicated value herein. The Fee Simple Interest is the unencumbered value of the subject property; basically, market rents and terms are considered with no regard to existing leases and terms. The Leased Fee Interest is the ownership interest held by the Lessor, which includes the right to receive the contract rent specified in the lease. At the time of the site visit,the subject property was not encumbered by any long term leases. The proposed plan for the subject property is to lease the residential apartments on an annual basis. Due to the desperate need for affordable or workforce housing, market rental rates have skyrocketed and affordable units are rented immediately with waiting lists for most complexes. Therefore,the appraisers anticipate that the new apartments will be fully leased upon completion of the property and achieve stabilized occupancy. We have assumed the time for permits and construction of the project to be completed by late 2024 based on information obtain from the developer.The appraiser has assumed that the subject property will receive all necessary permits and certificate of occupancies. We have assumed that the construction projection will not significant increase to the completion of the project. No personal property has been included in this appraisal report. The Appraisers herein is not required to give testimony in court unless arrangements have been previously made thereof. The Appraisers assume 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 appraiser, 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 Appraisers are assumed by the Appraisers. 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. The Appraisers have 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 appraiser or the applicant. Appraisal Company of Key West Page 114 3229 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII The appraisers do not assume the responsibility for the condition of any of the mobile home improvements or physical condition of the structure without the benefit of an engineering report. The improvements were not considered to have any contributory value, other than their entitlements. In this appraisal assignment,the existence of potentially hazardous material used in the construction or maintenance of the building, such as the presence of radon, asbestos insulation and/or existence of toxic waste,which mayor may not be present on the property, has not been considered. The appraiser is not qualified to detect such substances. 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,possible noncompliance with the requirements of the ADA in estimating the value of the property has not been considered. 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 Appraisers are affiliated. 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. The appraisers conducting this appraisal are not qualified to detect latent conditions and have conducted this appraisal upon the assumption that no latent conditions (including those mentioned above and others) exist on the property covered by this appraisal. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraiser conducting this appraisal, nor the APPRAISAL COMPANY OF KEY WEST make 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. 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. We hereby certify that to the best of our 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 Appraisal Company of Key West Page 115 3230 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII conclusions contained in this report; also this report has been made in conformity with the Appraisal Institute. Appraisal Company of Key West Page 116 3231 An Appsisal Report 95295 Overseas Highway, Key Largo, FL IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII PROFESSIONAL QUALIFICATIONS JAMES E. WILSON, III, MAI, 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,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. In the search of advancement and challenge,James Wilson moved 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 30 years James has been exposed to a wide-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 Member of the Appraisal Institute,MAI. He is also 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,2012/2024 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,2024 President of 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 Appraisal Company of Key West Page 117 3232 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Professional Qualifications of James E. Wilson, III(Continued) APPRAISAL INSTITUTE 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 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 General Demonstration Report Writing, Online, October 28,2019 Valuation of Donated Real Estate Including Conservation Easements, Virtual Classroom,FL June 25,2020 South Florida RE Market Through the Eyes of the Property Appraiser Office November 20,2020 2021 South Florida RE Forum: The Evolution of Appraisal August 20,2021 Business Practices and Ethics,February 17,2022 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. Appraisal Company of Key West Page 118 3233 An Appsisal Report 95295 Overseas Highway, Key Largo, FL Illllllllllllllllllllllllllllllllllllllllllllltlllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllll�llllllllllllllllllllllllllllllllllllllllllllllllllll�Illlllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Professional Qualifications of James E. Wilson, III(Continued) 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. 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 2016-201 7-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 Florida Appraisal Laws and Regulations,October 31,2018 2018-2019 7-Hour National USPAP Update Course,November 2018 Appraising Small Apartment Properties,November 2018 Appraisal of Land Subject to Ground Leases,November 2018 The Basics of Expert Witness for Commercial Appraisers,November 2018 2020-2021 7-Hour USPAP Update Course for Non-Residential Real Property,November 2020 Essential Elements of Disclosures and Disclaimers,November 2020 Evaluations,Desktops,and other Limited Scope Appraisals,November 2020 Florida Appraisal Laws and Regulations,November 2020 That's a Violation,November 2020 2022-2023 7-hour National USPAP Update Course,November 2022 Supervisor-Trainee Course for Florida,November 2022 Best Practices for Completing Bifurcated and Hybrid Appraisals,November 2022 Appraisal of REO and Foreclosure Properties,November 2022 Florida Appraisal Laws and Regulations,November 2022 The Basics of Expert Witness for Commercial Appraising,November 2022 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 MAI,Member of the Appraisal Institute,March,2020 Member#224192 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 Appraisal Company of Key West Page 119 3234 An Appraisal Report 95295 Overseas Highway, Key Largo, FL Board Member of the Rotary Club of Sunset Key West,2013/2014 President,2009 Treasurer,2010 Vice President,2011 President-Elect,2012 President Board ofDirectors of the Key West Chamber of Commerce, Board Member for 10+years 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. 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. 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 Rb day 6s,Gnamnrnor n ev& 'm S,Goff'41,5eawttary i it x t'J.� i` pr STATE OF FLORIDA j - DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL'�TAT �'aPPRAISAL BD j THE cilnR1IFol l)GENERA("", 04r S UNDER Tl"M PRavrsHOtg �s�O l�+ � 0 75 F�' 0 TUTES X%G// f ,ii/ bL11cE9fitU14Mst RB&f ..........� EXPIIRATIION DATE.NOVEMBER 30,2024 Atp ys a dy{kerns nhim at tatyfpYr i&,Luc"se:. I Do not altev this document in any form. this is your trkense,It is unla+fid for anyone ne other than the licensee to use th�iis do urnent, Appraisal Company of Key West Page 120 3235 An Appraisal Report 95295 Overseas Highway, Key Largo, FL Professional Qualifications Maria Virginia Wilson, State Certified General Real Estate Appraiser Maria Virginia Wilson has been a resident of Florida since 1973. Her education includes a Bachelor of Liberal Arts with a Major in French from the University of Florida, 1987-1992. Maria V. Wilson has a diverse background in banking and the real estate appraisal industry. Her experience in real estate appraising started as a State Registered Assistant Real Estate Appraiser. Over the past 20 years,Maria has acquired experience with a wide-range of residential and commercial appraisal projects. Maria has excelled in her education and successfully achieved her current designation of State Certified General Real Estate Appraiser. Education: SHORECREST PREPARATORY SCHOOL, St.Petersburg, Florida 1987 UNIVERSITY OF FLORIDA, Gainesville, Florida-Bachelor of Liberal Arts- Major in French, 1987-1992 GOLD COAST SCHOOL OF FLORIDA, Miami and Ft. Lauderdale,Florida Principles, Practices and Law-FREC Course 1, 1992 Successful Completion of ABI- Appraisal Board - Fundamentals of R.E. Appraising 6/94 Successful Completion of ABII- Appraising Resid. & Income Prop. 10/99 Successful Completion of ABIII- Certified General Appraisal Course III 07/03 Successful Completion of the Mortgage Broker Course - 06/03 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. Appraisal Company of Key West Page 121 3236 An Appraisal Report 95295 Overseas Highway, Key Largo, FL Risky Business: Ways to Minimize Liability, August, 2010. 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 Analyze This, Applications of Appraisal Analysis, November, 2014 Expert Testimony: To or Not to Do, November, 2014 UAD: Up Close and Personal, November, 2014 Reviewers Checklist, November, 2014 Florida Appraisal Laws and Regulations Update, November, 2014 National USPAP Update Equivalent(2014-2015), November, 2014 National USPAP Update Equivalent(2016-2017), November, 2016 Managing Appraiser Liability, November 2016 Appraisal of Owner-Occupied Commercial Properties, November 2016 Understanding Residential Construction, November 2016 Florida Appraisal Laws and Regulations,November 2016 Evaluating Today's Residential Appraisal: Reliable Review, September 2018 Florida Appraisal Laws and Regulations Update, September 2018 Limited Scope Appraisals and Appraisal Reports: Staying Compliant and Competitive, September 2018 National USPAP Update (2018-2019), September 2018 Real Estate Damages- Appraising After a Natural Disaster, September 2018 That's a Violation: Appraisal Standards in the Real World, September 2018 The Appraisal of 2-4 Unit Properties, September 2018 National USPAP Update (2020-2021), June 2020 Florida Appraisal Laws and Regulations Update, June 2020 Diversify your Appraisal Practice with Estate Appraisals, June 2020 Residential Property Inspection for Appraisers, June 2020 The Appraisal of 2-4 Unit Properties, June 2020 Mortgage Lending Appraisal Requirements: Fannie Mae and Freddie Mac,June 2020 The Fundamentals of Appraising Luxury Homes, November 2022 2022-2023 7-hr National USPAP Update Course, November 2022 Bifurcated and Hybrid Appraisals: A Practical Approach, November 2022 Fundamentals of Expert Witness Testimony, November 2022 Florida Appraisal Laws and Regulations Update, November 2022 Fundamentals of Appraising Luxury Homes, November 2022 Appraisal Company of Key West Page 122 3237 An Appraisal Report 95295 Overseas Highway, Key Largo, FL Measuring 1-4 Unit Residential Properties-with ANSIZ765 Standard,November 2022 Supporting Adjustments: The Journey from Analysis to Adjusting , November 2022 Certification: State-certified general real estate appraiser, RZ 2686, (2003). Florida Real Estate Salesperson, SL 3476916 (2020) 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. Appraisal Company of Key West, Inc. ( 1997-2004) Barnett Bank(1994-1997) Area of Expertise: • Analysis and evaluation of many types of real estate • Types of properties appraised, evaluated, and analyzed: Single Family Homes Industrial Uses Multi-Family Dwellings Guest Houses Rental Analysis Vacant Land Office Buildings Motels Mixed-Use Property Strip Centers Commercial/Residential Condominiums Retail Stores Appraisal Company of Key West Page 123 3238 An Appraisal Report 95295 Overseas Highway, Key Largo, FL APPRAISER CERTIFICATION Ron pa'Sankua,Governor Melanie S.Griffon,Secretary dbp" 0 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REALT`E4PPRAISAL BD THE CERTIFIED IFIED UNDER THE ,r PRCDVISICrINS H 7 ,1 CITES /%i r r pd VI PV AA r /ir """ LICfiNL hdUIN� Ef� f� 2t8! V EXPMATIONk DATE: NOVEMBER 30,2024 Always verify(licenses online at MyFiarWaticeinse.cam Do not alter this document in any form. ARM., This os your Hcense.It is unlawful for anyone other than the licensee to use this document. Appraisal Company of Key West Page 124 3239 WALTER DIUKE + PARTNERS --------------------------- C 0 M M E R C I A L REAL ESTA"rE VALUATION REAL ESTATE APPRAISAL REPORT OF SOU...................... c 1 S 0 NI ........... ...................... AII RO P IEr IIW Y1................... REN F''A INCOME IIE IID C 0 IIM IIM J IIIIII"TY to rko, 0 E E:: OCA E::I)A 95295 Overseas Highway Key Largo, Florida 33037 A)11 Afi Kevin G. Wilson, P.E. Assistant County Administrator Monroe County 0000 �0 (P I 102050 Overseas Hwy., Suite 213 A 001000001001111111" Key Largo, FL 33037 1) IlBY Walter B. Duke, 111, MAI, CCIM '83 Kaitlyn Evans 2860 State Road 84, Suite 109 Fort Lauderdale, FL 33312-4804 3240 ODMMEROAL REAL ESTATE VALUAT�ON .'�eca� Veer�r;B�asil Ei raarizl.�p p,u<rp,„r;�,ro March 4, 2024 Kevin G. Wilson, P.E. Assistant County Administrator Monroe County 102050 Overseas Hwy., Suite 213 Key Largo, FL 33037 Re: Southcliff Estates A Proposed Multifamily Development Rent& Income Restricted Community 95295 Overseas Highway Key Largo, Florida 33037 Dear Mr. Wilson: As requested, Walter Duke + Partners has performed a real estate appraisal of the above referenced property. The attached Appraisal Report is intended to comply with the reporting standards set forth under Standard Rule 2-2 of the Uniform Standards of Professional Appraisal Practice (USPAP). The subject property is a proposed 28-unit multifamily development to be known as Southcliff Estates. Property highlights are as follows: Physical— • Upon completion, the development will consist of 28 units within 11 buildings located on a 1.56- acres site. • The buildings will be configured as: 0 2 duplexes (2 units in each) consisting of 3 bedrooms; 2-1/2-bathroom units (total of 4 units) 0 6 duplexes (2 units in each) consisting of 2 bedrooms; 2-1/2-bathroom units (total of 12 units) 0 3 quadplexes (4 units in each) consisting of 1 bedroom; 1-bathroom units (total of 12 units) 0 A separate office/cabana building • The proposed project will be developed on a 1.56-acre site located on the east side of Overseas Highway(US-1), near Mile Marker 95. • Construction is underway with completion anticipated by December 2025. The proposed unit mix is summarized as follows: 3241 Mr. Kevin G. Wilson, P.E. Monroe County March 4, 2024 Total Unit No.of Unit Rentable Type Units Size Area 1/1 12 651 7,812 2/2.5 12 1,140 13,680 3/2.5 4 1,260 5,040 Residential Total/A\(g 28 948 26,532 Office 870 Overall Total 27,402 Economic/Financial— • The subject property is deed restricted for 14 low-income households and 14 median income households, as dictated by Monroe County. Qualifying households reflect an adjusted gross annual income no greater than 100% or 80% of the median area income. Additionally, qualifying residents shall derive at least 70% of their household income from gainful employment in Monroe County. The restriction is in place for 99 years beginning upon issuance of the certificates of occupancy. • Accordingly, of the subject's 28 total units, all units will be income and rent restricted with 14 units set aside at 80%AMI and 14 units set aside at 100%AMI. • The developer is currently in negotiation to sell the subject property to the county. A land lease will then be executed between the county and the developer for 99 years. Therefore, a leasehold interest is considered. • With the tremendous demand for affordable housing in this market, as well as market rate housing, it is expected that the subject will be completely pre-leased before construction is completed, and no rent loss during lease up is expected. The purpose of the appraisal is to estimate the Hypothetical Market Value "As If Complete & Stabilized", of the leasehold interest in the subject property, subject to the income and rent restrictions in place, as of February 10, 2024. The appraisal is subject to the assumptions and contingent and limiting conditions set forth in the report. VALUE CONCLUSION Interest Date of Value Appraisal Premise Appraised Value Conclusion Hypothetical Market Value"As If Complete&Stabilized" Leasehold February 10,2024 $11,500,000 The accompanying appraisal report describes in detail the neighborhood, site, improvements, approaches to value, and other pertinent data that was used to solve the appraisal problem. The appraisal report has been prepared in conformance with the appraisal regulations issued by the federal banking regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA); the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation; and the Code of Professional Ethics and Standards of Appraisal Practice of the Appraisal Institute. This Appraisal Report was prepared for and submitted to Mr. Kevin G. Wilson, P.E. and Monroe County for the specific intended use of internal due diligence. This report cannot be used by any other person/entity or for any other purpose. Use of this report by others is not intended by Walter Duke + Partners. No other party other than Monroe County are intended users of this appraisal report and no 2860 W State Road 84,Suite 109 1 Fort Lauderdale,Florida 33312-4804 1 T 954.587.2701 1 F 954.587.2702 1 WalterDuke.com Since 1975 3242 Mr. Kevin G. Wilson, P.E. Monroe County March 4, 2024 other party should use or rely on the appraisal for any other purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. Extraordinary Assumptions— None. Hypothetical Conditions — The value conclusions within this appraisal report are premised upon hypothetical conditions. A hypothetical condition is defined in the Dictionary of Real Estate 7th Edition (2022) as "a condition which is contrary to known facts but is supposed for the purpose of the analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends: or about the integrity of the data" that exist on the effective date of the assignment results." It is applicable to this appraisal because a change in the hypothetical conditions would cause a change in the opinions and conclusion herein. The appraisal employs the following hypothetical conditions: 1. Under the "As If Complete and Stabilized" valuation scenario, the concluded value is considered to be hypothetical because it is assumed that construction is complete and stabilization has been reached as of the current valuation date, when in actuality, completion of construction and stabilization is not anticipated until December 2025. The use of these hypothetical conditions is permitted by the USPAP because: • It is used for purposes of reasonable analysis; • the hypothetical condition results in a credible appraisal analysis; and • disclosure requirements set forth in the USPAP for a hypothetical condition have been complied with. Should you have any questions regarding this report, please do not hesitate to call. Thank you for the opportunity to serve you. Sincerely, Walter Duke + Partners 4,Al V�_, Walter Bryan Duke, III, MAI, CCIM Kaitlyn Evans State-Certified General Real Estate Appraiser RZ375 State-Certified General Real Estate Appraiser RZ4470 2860 W State Road 84,Suite 109 1 Fort Lauderdale,Florida 33312-4804 1 T 954.587.2701 1 F 954.587.2702 1 WalterDuke.com Since 1975 3243 INTRODUCTION 2 Appraisal Summary Walter Duke + Partners File Number 240117-A USPAP Reporting Format Appraisal Report Property Name Southcliff Estates Location 95295 Overseas Highway Key Largo, Monroe County, Florida 33037 Property Type/Class Class "C" Multifamily Development Rent& Income Restricted Community Parcel Numbers 00484390-000000 Site Area (Per Survey) 85,306 Square Feet (1.96 Acres) Zoning Designation SC, Suburban Commercial Future Land Use Designation MC, Mixed Use/Commercial Tier III Flood Zone AE FEMA Map Panel Number 12087C0936-K; date February 18, 2005 Census Tract 9706.00 Improvements Residential Buildings/Stories 12/ 1 &2 Number of Dwelling Units 28 Net Rentable Area (Apartments) 26,532 Square Feet Average Unit Size 948 Square Feet Density (Units/Acre) 18 Units/Acre Office Building Size 870 Square Feet Year Built/Condition Proposed (2025)/New Appraisal Assumptions Stabilized Potential Gross Income $720,264 Stabilized "All In" Vacancy Rate 2.00% Stabilized Effective Gross Income $705,859 Stabilized Operating Expenses/Unit $4,285 Stabilized Net Operating Income $585,883 Overall Capitalization Rate 5.00% Hypothetical Market Value "As If Complete & Stabilized" $11,500,000 Interest Appraised "As If Complete &Stabilized" Leasehold Interest Appraisal Date February 10, 2024 Report Date March 4, 2024 WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3244 INTRODUCTION 3 Appraisers Walter B. Duke, III, MAI, CCIM Kaitlyn Evans 2860 W State Road 84, Suite 109 Fort Lauderdale, FL 33312-4804 WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3245 INTRODUCTION 4 Table of Contents AppraisalSummary.................................................................................................................2 Certificationof Appraisal .........................................................................................................7 PHOTOGRAPHS .......................................................................................................................8 PREMISES OF THE APPRAISAL............................................................................................ 13 AppraisalFormat................................................................................................................... 14 Type and Definition of Value................................................................................................. 14 Intended Use of the Appraisal............................................................................................... 14 Termsand Definitions........................................................................................................... 14 PropertyRights Appraised .................................................................................................... 14 Dateof Appraisal .................................................................................................................. 14 Dateof Report ...................................................................................................................... 14 PRESENTATION OF DATA..................................................................................................... 15 Scopeof Work...................................................................................................................... 16 PropertyIdentification........................................................................................................ 16 PropertyInspection ........................................................................................................... 16 Type and Extent of Data Research.................................................................................... 16 Analysis Applied to Arrive at Opinion or Conclusions ........................................................ 17 PropertyInformation.......................................................................................................... 17 Extraordinary Assumptions / Hypothetical Conditions........................................................ 17 StreetAddress...................................................................................................................... 18 LegalDescription.................................................................................................................. 19 Pending Sale/Ownership History........................................................................................... 19 RealEstate Tax Analysis......................................................................................................20 Schedule of Assessment and Taxation..............................................................................20 Subject Property's Assessment and Taxation....................................................................20 State of Florida Tax Credit Overview.....................................................................................21 LiveLocal Act .......................................................................................................................22 Florida's Economic Conditions..............................................................................................24 GeneralOverview..............................................................................................................33 DevelopmentHistory.........................................................................................................34 Current Development ........................................................................................................34 Summary...........................................................................................................................36 Multifamily Market Overview.................................................................................................38 PrimaryMarket Area.............................................................................................................39 5-Mile PMA...........................................................................................................................39 SiteDescription.....................................................................................................................40 Zoning & Land Use...............................................................................................................41 Zoning...............................................................................................................................41 TierOverlay District...........................................................................................................42 LandUse...........................................................................................................................42 Survey ..................................................................................................................................43 Improvement Description ......................................................................................................44 SitePlan ...............................................................................................................................46 Market Participants/Most Probable Purchaser ......................................................................47 Marketability (SWOT Analysis)..............................................................................................47 ExposureTime......................................................................................................................48 Reasonable Marketing Time .................................................................................................48 WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3246 INTRODUCTION 5 ANALYSIS OF DATA...............................................................................................................49 TheAppraisal Process..........................................................................................................50 Highestand Best Use ...........................................................................................................51 Highest and Best Use As Vacant.......................................................................................51 Highest and Best Use as Improved ...................................................................................52 Estimateof Land Value.........................................................................................................53 Comparable Land Sales Summary &Adjustment Table........................................................54 Comparable Land Sales Location Map .................................................................................55 CostApproach to Value........................................................................................................60 Developer's Cost Estimate ................................................................................................60 Marshall Valuation Service................................................................................................61 ComparableCost Data......................................................................................................62 Reconciliation of Cost Data ...............................................................................................63 Entrepreneurial Profit/Incentive .........................................................................................64 Accrued Depreciation........................................................................................................64 Cost Approach Summary ..................................................................................................64 Income Capitalization Approach............................................................................................71 ContractRent....................................................................................................................71 Stabilized Vacancy and Collection Allowance....................................................................72 Potential and Effective Gross Rental Income Estimate......................................................73 OperatingExpenses..........................................................................................................74 Operating Expense Conclusion .........................................................................................78 Net Operating Income (NOI)..............................................................................................78 Selection of Overall Capitalization Rate.............................................................................79 Reconciliation of Overall Capitalization Rate.....................................................................81 Direct Capitalization of Net Operating Income...................................................................81 Reconciliation and Final Market Value Estimates..................................................................82 Market Value "As If Complete and Stabilized" ...................................................................82 ADDENDA................................................................................................................................84 ASSUMPTIONS, CONTINGENT & LIMITING CONDITIONS DEFINITIONS DEVELOPER PROJECT DATA COMPARABLE SALE PROFILES— LAND COMPARABLE SALE PROFILES— LI HTC DEMOGRAPHICS FLORIDA'S ECONOMIC CONDITIONS QUALIFICATIONS Index of Tables Replacement Cost New Estimate via Marshall .........................................................................62 Construction Cost Comparables...............................................................................................63 Market Value Indicator via Cost Approach................................................................................64 Rent Calculations and Developer's Projected Rents.................................................................72 Stabilized Vacancy and Collection Allowance Summary...........................................................73 Potential and Effective Gross Income.......................................................................................74 Operating Expense Comparables.............................................................................................75 Stabilized Income and Expenses..............................................................................................79 Overall Rates from Comparable Sales .....................................................................................80 WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3247 INTRODUCUON 0 Stabilized Market Value via Income Approach — Restricted......................................................81 Reconciliation of Value Indicators.............................................................................................82 WALTER +PARTNERS COMMERCIAL REAL ESTATE wumAmmw INTRODUCTION 7 Certification of Appraisal I certify that, to the best of my knowledge and belief, . . . • the statements of facts contained in this appraisal report, upon which the analyses, opinions, and conclusions were based, are true and correct. • the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analysis, and conclusions. • 1 have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. my compensation is not contingent upon a minimum valuation or an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. • the appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. • 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 Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP). • the Appraisal complies with the current version of the FIRREA of 1989, including its Title XI regulations. • the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • the use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. • Walter B. Duke, 111, MAI, CCIM made a personal inspection of the subject property on February 10, 2024. Kaitlyn Evans did not personally visit the subject property. • as of the date of this report, Walter B. Duke, 111, MAI, CCIM, has completed the continuing education program for Designated Member of the Appraisal Institute. • No one provided significant professional assistance to the person signing this report. The analyses, conclusions, and opinions contained in the report are the principal effort of the undersigned. However, certain functions, such as data collecting and verification, may have been performed by other members of the staff. • Neither of the undersigned nor any other staff of Walter Duke + Partners have performed appraisal or other services regarding the subject property during the past three years. Walter Duke + Partners, 4'Al V�_' Walter Bryan Duke, 111, MAI, CCIM Kaitlyn Evans State-Certified General Real Estate Appraiser RZ375 State-Certified General Real Estate Appraiser RZ4470 COMMERCIAL REAL ESTATE VALUATION 3249 PHOTOGRAPHS PHOTOGRAPHS WALTER �l. KE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3250 PHOTOGRAPHS 9 r� J N: SATELLITE AERIAL VIEW i uy i r, h v n p r ! J 1 N I u f i b CLOSE UP AERIAL VIEW WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3251 PHOTOGRAPHS 10 "411 ur od"', 77 hu � r- w�+�✓� � ,� :r1�� III � i i ��', �,I��C � p '42,v � "'r�r l<C/i/ %n� a „u�" uf�g!mvrnr,,,, rPr: ✓,�,:o,. rya ,,, , y ✓yT„ y r i` r � ..fir ,� �� taut✓ FA �� 1 ,+w s� 11��"%,� a�^�ia✓ �;pry�?� . . �r^�.«,i v, � ,. mN.� _ If ppp r � k SKETCH RENDERING OF SUBJECT UPON COMPLETION 'Elm I� ��t u(dr �'�� lira/�/'/i✓/ .'�fr U (,� u r�y�rp�✓ / i ;, %/�/>✓fii �'ii of /��r✓✓rr/i"�''ri , �, or ,Kt i/J/�� gl lGi/��ii/� q✓ r r�k i�! ;I ti � Pfi bjJ/ ✓re��tr��(o��4s1 � r a✓ruriiy`�°1 �'W/N%F r � ��ry ��J��1'�i�Il(y�/i�✓1✓laiP (✓r ur,rF b r u�ku 1��r�y�r i v�0v�'�v'"��yPU(!Jlr t ✓✓ PHOTO OF SUBJECT SITE LOOKING NORTHWEST WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3252 PHOTOGRAPHS 11 i%Oiiii�� 11111111111fdJ�flyNl�ll�lnloyiir�m%�lo ��J�;��S�rflflrr � Gr fl�fl�1i r l I f.h„amfry mw�i, a rR ui, l aivIN PHOTO OF SUBJECT SITE LOOKING NORTHEAST STREET SCENE LOOKING NORTH ON OVERSEAS HIGHWAY WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3253 PHOTOGRAPHS 12 STREET SCENE LOOKING SOUTH ON OVERSEAS HIGHWAY w, I mow: iti7� rr r , Aiulirnihuu 'i VIEW WEST ALONG SNAPPER LANE WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3254 PREMISES OF THE APPRAISAL PREMISES OF THE APPRAISAL WALTER �l. KE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3255 PREMISES OF THE APPRAISAL 14 Appraisal Format Per the prior agreement between Walter Duke + Partners and the client, this Appraisal Report is presented in a format which conforms to the Uniform Standards of Professional Appraisal Practice (USPAP). Type and Definition of Value The value opinions developed within this analysis are that of Market Value, as defined within the Addenda of this report. Intended Use of the Appraisal This Appraisal Report was prepared for and submitted to Mr. Kevin G. Wilson, P.E. and Monroe County for the specific intended use of internal due diligence. This report cannot be used by any other person/entity or for any other purpose. Use of this report by others is not intended by Walter Duke + Partners. No other party other than Monroe County are intended users of this appraisal report and no other party should use or rely on the appraisal for any other purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. Terms and Definitions Real Estate and Appraisal specific terms are defined within the Addenda of this report. Property Rights Appraised The property rights appraised are all those rights in the Leasehold Estate ("As If Complete and Stabilized"). The appraisal is subject to the assumptions and contingent and limiting conditions set forth in the report. Date of Appraisal The effective date of this appraisal is February 10, 2024. Date of Report The date of this report is March 4, 2024. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3256 PRESENTATION OF DATA PRESENTATION OF DATA WALTER D�l. KE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3257 PRESENTATION OF DATA 16 Scope of Work The scope of work performed in a real estate appraisal is a description of the amount and type of information researched and the analysis applied in an assignment. Based upon the engagement letter, the scope of work for this assignment is as follows: Property Identification The subject property was identified by name, location and property description, as provided by the client in the engagement letter, as well as other property-specific information provided by the developer. Property Inspection The vacant subject site was visually inspected February 10, 2024, by Walter B. Duke, III, MAI, CCIM, the date in which the subject pictures were taken. The visual inspection of the subject property was considered adequate to identify characteristics of the subject property for purposes of this appraisal. Type and Extent of Data Research General — • Land and improved sales comparables were obtained through a search of the data-services that categorize public records. • Data sources included CoStar.com, the largest and most reliable on-line data- services available in Florida. • The physical characteristics of the sales were ascertained by a combination of public records, physical inspection, appraiser's files, listing information, verification with buyers, sellers, brokers and records contained in the Property Appraiser's Office. • The reported sale prices were verified by telephone or email verification with a party familiar with the transaction. • A search and analysis of comparable rental properties was conducted. • Rental information was derived from a combination of public records, owner's representative, brokers, personal inspection or appraiser's files. Specific— • The market area searched for comparable land and improved sales included the subject submarket and surrounding areas. The geographic parameters of the research are consistent with the investment market in which the subject competes. COMMERCIAL REAL ESTATE VALUATION 3258 PRESENTATION OF DATA 17 • The market area searched for comparable affordable rental apartment communities included the subject's submarket. The geographical search parameters were extended to include all of the South Florida Region as there is limited data in the subject's immediate submarket. • The developer's cost budget, Marshall Valuation Service and cost comparables were utilized in estimating Replacement Cost New of the subject improvements. • The developer's pro forma and expense comparables were utilized in estimating stabilized operating expenses. • The overall capitalization rates were well supported by indications from comparable sales, published data, market participants, band of investment model and debt coverage ratio. Analysis Applied to Arrive at Opinion or Conclusions The Cost Approach, Sales Comparison Approach and Income Approach were utilized to develop a credible opinion of value. Property Information Walter Duke + Partners also performed research necessary to produce the most current and relevant data available for the assignment. This includes tax and assessment information, easement and other private as well as public deed restrictions, zoning and history of the property. Other items relative to the subject property were provided by the developer. These items include: • Survey, site plan and building plans • Development budget • Unit mix, set-asides, utility allowances and projected rents • Pro forma • Deed restrictions • Other general property information For the purposes of this appraisal, this information is assumed to be accurate, factual and correct. Extraordinary Assumptions / Hypothetical Conditions Extraordinary Assumptions— None WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3259 PRESENTATION OF DATA 18 Hypothetical Conditions — The value conclusions within this appraisal report are premised upon hypothetical conditions. A hypothetical condition is defined in the Dictionary of Real Estate 7th Edition (2022) as "a condition which is contrary to known facts but is supposed for the purpose of the analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends: or about the integrity of the data" that exist on the effective date of the assignment results." It is applicable to this appraisal because a change in the hypothetical conditions would cause a change in the opinions and conclusion herein. 1. Under the "As If Complete and Stabilized" valuation scenario, the concluded value is considered to be hypothetical because it is assumed that construction is complete and stabilization has been reached as of the current valuation date, when in actuality, completion of construction and stabilization is not anticipated until December 2025. The use of this hypothetical condition is permitted by the USPAP because: • It is used for purposes of reasonable analysis; • the hypothetical condition results in a credible appraisal analysis; and • disclosure requirements set forth in the USPAP for a hypothetical condition have been complied with. Street Address According to the Monroe County Property Appraiser, the subject site reflects the following street addresses. 95295 Overseas Highway Key Largo, Monroe County, Florida 33037 WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3260 PRESENTATION OF DATA 19 Legal Description The Northwesterly 720 feet of the following described paircel of land. A portion of Tract 6,according to Plat of Souithcliff Estates on IKey Lairgo and recorded in Plat Book 2 at Paige 45 of the Public Records of Monroe County,Florida,more particuilarly described as follows- From a,P.R.M.at the intersection of the Southeasterly right of way line of State Road No.5 on the agreed boundary line between Souithcliff Estates and K.L.Thompson Property,as shown on plat recorded in Plait Book 2.at Page 67,Public Records of Monroe County,Florida,,run Southeasterly on said agreed line,a distaince of 66 feet to the Southeasterly right of way line of Old State Road 4A;thence Southwesterly along said Southeasterly right of way line,a distance of 330 feet to the Point of Beginning of the parcel hereinafter described thence continue Southwesterly on laist described course,a distance of 100 feet to the Northeasterly side of the subdivision of Sunrise Point,according to the revised plat,recorded in Plait Book 3,at Page 11,Public Records of Monroe County,Florida,thence along sa,id Northeasterly side of Sunrise Point in a,Southeasterly direction,a distance of 1065 feet more or less to the shore of the Atlaintic Ocean;thence Northeasterly meaindering saild shore to a,point of intersection with a line which is 100 feet Northeasterly from aind parallel to the said Northeasterly side of Sunrise Point;thence Northwesterly along said line to the Point of Beginning. And Lot 1,Block I of REVISED PLAT OF SUNRISE POINT,according to the Plat thereof,as recorded in Plait Book 3,at Paige 11,of the Public Records of Monroe County,Florida. And Lot 2,Block I of REVISED PLAT OF SUNRISE POINT,according to the Plat thereof,as recorded in Plait Book 3,at Paige 11,of the Public Records of Monroe County,Florida. Pending Sale/Ownership History According to the Monroe County Property Appraiser, the current owner of record is as follows: SOUTH CLIFF HOLDINGS LLC 1527 Shaw Drive Key Largo FL 33037 The subject was recently purchased on April 21, 2021, for a consideration of $916,000. (Instrument Number 2319320). At the time of purchase, the subject was three separate parcels, which have now been combined into one. This sale was advised to be arm's length. The current owner of the subject property entered into an agreement with Monroe County which entails an Employee Housing Deed Restriction being placed on the property for a 99 year term. This restriction, presented in the addenda, restricts the property for use as a 28-unit workforce housing community with restricted rental rates for a 99-year term. The agreement was advised to also involve selling the property to Monroe County and leasing the property back for a term of 99 years. Therefore, the interest appraised is the leasehold interest. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3261 PRESENTATION OF DATA 20 Real Estate Tax Analysis In Florida, the assessed values for real and commercial personal properties are established each year as of January 1, by each County Property Appraiser's Office. Under the Florida Constitution and Statutes, this value is to be the "Just Value" of the property. "Just Value" is considered to be synonymous with "Market Value." The tax due is computed by multiplying the annual millage rate with the assessed value of the property. Millage rates are the amounts paid to each taxing body for every $1,000 of Assessed Value (25 mills equal $25 per $1,000 of Assessed Value). Millage rates are established by all of the various taxing bodies that exist within a given taxing district. Schedule of Assessment and Taxation Property taxes are paid in arrears with the assessment and taxation process spread out over the year, as follows: January 1 to June 30 Assess all parcels in the county July 1 Tax Roll certified to Department of Revenue August 1 TRIM Notices are mailed to property owners September 15 Deadline to apply for appeal of Assessed Value November 1 Taxes payable with a 4%discount December 1 Taxes payable with a 3%discount January 1 Taxes payable with a 2% discount February 1 Taxes payable with a 1%discount March 1 Taxes are due April 1 Taxes are past due May 31 Two-month grace period ends June 1 Tax Certificates sold at auction Subject Property's Assessment and Taxation The subject was recently transferred from three folio numbers into one, and the tax assessment does not reflect actual figures. However, the county does report that there is currently $5,317.41 of delinquent taxes outstanding on the subject property. Additionally, under the agreement with the county and per confirmation with the Monroe County Property Appraiser's office, the subject is expected to be tax exempt. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3262 PRESENTATION OF DATA 21 State of Florida Tax Credit Overview • The Housing Credit (HC) program provides for-profit and nonprofit organizations with a dollar-for-dollar reduction in federal tax liability in exchange for providing equity financing for the rehabilitation (with or without acquisition), or new construction of low and very low-income rental housing units. A Housing Credit allocation to a development can be used for 10 consecutive years once the development is placed in service and is designed to subsidize either 30 percent (the 4 percent tax credit) or 70 percent (the 9 percent tax credit) of the low-income unit costs in a development. Qualifying buildings include garden, high-rise, townhouses, duplexes/quads, or mid- rise with an elevator. Ineligible development types include hospitals, sanitariums, nursing homes, retirement homes, trailer parks, and life care facilities. This program can be used in conjunction with the HOME Investment Partnerships program, the State Apartment Incentive Loan program, the Predevelopment Loan program, or the Multifamily Mortgage Revenue Bonds program. • Each development must set aside a minimum percentage of the total units for eligible low or very low income residents for the duration of the compliance period, which is a minimum of 30 years with the option to apply for a Qualified Contract after the 14th year, unless this option is waived by the Applicant in the Application, or pursuant to requirements in a competitive solicitation. Applicants must commit to one of the following set aside commitments: (i) at least 20 percent of the housing units set aside for households earning 50 percent or less of the area median income (AMI), (ii) 40 percent of the units set aside for households earning 60 percent or less of the AMI, or (iii) 40% of the units set aside for households whose earnings may range from 20% to 80% of the AMI provided the average on the income designations within that range do not exceed 60% of the AMI. • Because of the competition among developers seeking an allocation of tax credits from Florida Housing, most Developers commit to provide deeper set asides and for a longer period of time than the minimums described above as required by the IRS Code. • Housing need is assessed based on the current statewide market study, and funds are distributed annually to meet the need and demand for targeted housing in large, medium, and small-sized counties throughout Florida. Additionally, competitive 9 percent housing credits are sometimes reserved for affordable housing that addresses specific geographic or demographic needs, including the homeless, elderly, persons with special needs, the Florida Keys Area of Critical State Concern, or for disaster recovery efforts. • The Housing Credit program is governed by the U.S. Department of Treasury under Section 252 of the Tax Reform Act of 1986 and Section 42 of the Internal Revenue Code, as amended. Each year, the U.S. Department of Treasury awards each state WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3263 PRESENTATION OF DATA 22 an allocation authority consisting of a specific per capita dollar amount multiplied by the state population plus the state's share of the national pool (unused credits from other states). Starting in 2003, the per capita amount is adjusted annually for inflation. The current per capita amount is $2.8125. Live Local Act In March 2023, Governor DeSantis signed SB102 aka the Live Local Act, into law. The main policies in the Live Local Act, organized by policy topic, are summarized below: Funding & Tax Credits • Proposes a record $811 million for affordable housing programs including: $252 million for SHIP, $259 million for SAIL, $100 million for the Florida Hometown Hero Housing Program, $100 million for a CHIRP-like program, and up to $100 million for a new Live Local Tax Donation program • Redirects up to an additional $150 million/year for 10 years to SAIL to be used on defined projects • Creates a new Live Local Corporate Tax Donation program allowing taxpayers to donate funds directly to FHFC for the SAIL program in return for tax credits against corporate and insurance liability tax • Codifies the Florida Hometown Hero program in state law • Increases the Community Contribution Tax Credit (CCTC) and expands the Job Growth Grant Fund for affordable housing-related infrastructure expenses Affordable Housing Tax exemptions • Creates a new affordable housing property tax exemption for non-FHFC multifamily developments of over 70 affordable units • Authorizes cities and counties to provide property tax incentives for developments that serve households at 60% AMI or below • Creates a new sales tax refund for certain affordable developments Zoning, Land Use, and Role of Local Government • Proscribes standards on zoning, density, and height for certain multi-family affordable housing developments in commercial areas. For height, an affordable housing development would be allowed the highest height currently allowed within 1 mile of the proposed development or 3 stories, whichever is higher. For example, if a county limits height to 4 stories within 1 mile of a proposed development through a county charter or other land development regulation, that development could only be built up to 4 stories. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3264 PRESENTATION OF DATA 23 • Amends land use tool for affordable housing at ss. 125.01055(6) and 166.04151(6) to exclude "residential" zones and removes prohibition on SAIL- funded projects • Requires cities and counties to post inventory of lands appropriate for affordable housing on its website and encourages local governments to adopt best practices • Prohibits local governments from enacting rent control • Requires local governments to post expedited permitting procedures online State Housing Strategy • Makes substantial amendments to the state's housing strategy at s. 420.0003. Florida Housing Finance Corporation & Technical Assistance • Changes board makeup of FHFC, makes changes to FHFC budget request process, and makes amendments to the Qualified Contracts • Allows FHFC to contract with Catalyst Program provider to provide training on using publicly owned land for affordable housing WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3265 PRESENTATION OF DATA 24 Florida's Economic Conditions The Summary of Commentary on Current Economic Conditions is a regionalized economic report published by the Federal Reserve Board eight times a year. This report is informally referred to by economists as The Beige Book. The Atlanta Fed territory includes Alabama, Florida, Georgia, and portions of Louisiana, Mississippi, and Tennessee. The most recent Beige Book, issued January 17, 2024, reported that the economy of the Sixth District grew slowly from mid-November through December. Labor availability and employee retention continued to improve, but hiring slowed for some firms, and wage pressures eased further. Nonlabor costs moderated for the most part, and pricing power slipped. Holiday retail sales were mixed; auto sales were strong. Travel activity was healthy, but spending at hotels continued to slow. Despite declines in mortgage interest rates, the housing market remained encumbered by the lack of affordability. Commercial real estate activity was sluggish. Transportation activity remained weak. Lending grew for certain types of loans, but consumer lending declined. Activity in the energy sector was robust. Agriculture conditions were mixed. Source: The Summary of Commentary on Current Economic Conditions(The Beige Book) FLORIDA MARKET MSA SNAPSHOT �I Orlando , 'W ' 5�56 6 im2 h9111)pF, t95 PA71¢Ign ;. 56 5 4,�ayvda Vwl`u Rmg C'anawra0y r 378 8 201,, 3 69% '$265,585 81!53 3 4 PRAllan(20216 u��1 N U M .m..lncludea 0 0ando-Kni5im inwe-„anlo d M'SA So ald Flortca W4 , 8116'$n 11�l"nei4 481 Mdw33%, 532,317 Mama lmtI Faird M1�.., 415'� � ;153,317� 77759 20 htdllart(2929"I� IlinGludea IM ami,Qada.�tawarb,,and Palm Beach G�aunthaa 4pa�.,T Hach€M;, P 2&4 ..I 2,5 M ll (0ZIe i„ Iaru 2Ca271 Tampa Bay f�lllu`�I,vlik „228„99 1,;2„T„Ju6Jlidru Z,6E,a,pMtlYcrt9, F+am T)nmpa,)rtdb'. 43.2 9.19dr 4.001% $249,660 6517 33 E44al lion,(2021l $C Palarah urg,-Claaem star ltN,l;d Arnpa3l;� 1 � `P U +uuf(i 4uuclaude5 Talnidan•I"at.6"mYanabtrrrd•Cla aPvmaYpV M3Fz Jacksonville ID ,i �� ///';%"%%//��ji��ii/o ;G„GJ,�,250 6,,A,Y,Jnr, 2AThI ion $64„08 Jar,9M,➢,,�led�,w1,7 P„¢ray,pP�e�katan,7iY!( (MY L/ �Gpf 391 91011% 3301M 'S26f,1310 2?l2 1031ttlll..42'Ct2'Rd of �JI1,I l+l+l Ilneludaa xaclkmm—lle USA Scarce.CCGlar 57QB atc. COMMERCIAL REAL ESTATE"VALUATION 3266 PRESENTATION OF DATA 25 As of early 2024, most seaports and airports in Florida have fully recovered and are expanding. Cargo based ports fared better in the pandemic, but cruise travel continues to recover and expand. International travel and business travel are approaching 2019 levels and increasing. Domestic travel and hotel occupancies are excellent and there is active commercial real estate development in all markets of Florida. In summary, the Florida economy is very good and values in commercial and residential real estate are trending upward at record levels although transactions have dropped precipitously due primarily to current high interest rates. Headwinds include labor and housing shortages as well as rising property insurance costs and the bank credit crunch that is impacting the broader economy as well. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3267 PRESENTATION OF DATA 26 Monroe County Regional Overview Encompassing an area of approximately 3,737 square miles, 73% of which is water, Monroe County lies at the southern tip of Florida. Often referred to as the Florida Keys, Monroe County is a curved, bow-like chain of low-lying islands that separates the Atlantic Ocean and Florida Bay from the Gulf of Mexico. The Keys stretch for approximately 112 miles southwest from the Miami-Dade/Monroe County line to the City of Key West, Monroe's County seat. While Monroe County includes 822 islands, approximately only 30 are inhabited. The majority of these are connected by the Overseas Highway (U.S. Highway No. 1), which is the only road providing access to the Florida Mainland from the Keys. Monroe County is split into three geographical areas known as the Upper Keys, Middle Keys and Lower Keys. Key Largo is in the Upper Keys, which also includes Tavernier, Plantation Key, Windley Key, Upper Matecumbe and Lower Matecumbe. The island of Key Largo actually extends from Ocean Reef Club, on the north, to Tavernier, near Mile Marker 91. The Middle Keys consist of Conch Key, Boot Key, Crawl Key, Pigeon Key, Long Key, Duck Key, Grassy Keys, Key Colony Beach, and Marathon. The Lower Keys consist of Big Pine Key, Bahia Honda Key, Saddlebunch, Torch Keys, Big Coppitt, Geiger, Key Haven, Boca Chica, Stock Island and Key West. This listing only includes those areas with resident population. Land mass of the Florida Keys varies from only one mile wide at one point to measuring 120 miles long at another. Thus, land use patterns differ from those typical on the mainland. Neighborhoods in Monroe County are typically mixed-use with business and commercial properties situated along Overseas Highway. Property along the coast of the Atlantic Ocean or the Florida Bay consists of single-family residential with some condominiums and destination resorts. The Florida Keys have a very suitable climate for year-round outdoor activity. The mild winter temperature of the Florida Keys offers a unique refuge for many tropical native plants that will not grow anywhere else in the continental United States. Demographics Per the Florida Legislature's Office of Economic and Demographic Research, Monroe County has 84,765 residents as of 2023 a 2.28% increase since 2020. While the median household income is $75,919, approximately 15% of the population, live in poverty. In the graph on the following page, the county's population has risen and fallen with national spending trends on tourism as depicted from 1970 until 2017. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3268 PRESENTATION OF DATA 27 POPULATION TRENDS AND KEY NDICATORS 84,765 37,475 123 50.1 S75,919 $690 481 1113 47 66 110, 1% 1 IL : ram" it I P G 6.2%, M3% 22.4 ..,. ,„ 21.1 X, 1 4,0% 5.3% MONSOON Seasonal population is difficult to estimate; however, the population is estimated to be 50% greater during the months of December to May. Uncontrolled development in the Keys has long been a concern of environmentalists. Monroe County is designated by the State of Florida as an "Area of Critical State Concern." This requires the Monroe County Department of Community Affairs (DCA) to maintain land use and related development. These areas include North Key Largo, Ohio Key, Big Pine Key, and Windley Key. Any development in these areas is subject to impact reports, conformity to environmental standards, and a multitude of other state and federal agency approvals and permits. Due to implementation of Monroe County's Rate of Growth Ordinance (ROGO), construction is limited, with much construction taking place on parcels that have already been built upon with vested rights. Brief History Descriptions of the Florida Keys from the 16th century range from flowering with the Fountain of Youth to a twisted and tortured mess. During the time of Spanish rule, trade routes were created between Europe and Central and South America. Cuba was a significant port. However, the area's shallow waters were responsible for the demise of several ships, and their valuable contents were spread along the reef. Pirates took advantage. Small communities sustained themselves from the water's fertile fishing and goods salvaged from shipwrecks. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3269 PRESENTATION OF DATA 28 In 1821, Spain ceded Florida to the United States, and Key West was transformed into a small naval depot a year later to help rid the area of pirates. Shortly after Florida was granted statehood in 1845, the depot was constructed into Fort Zachary Taylor, an important outpost during the Civil War. By 1870, Monroe County's population was 5,657 with 641 residents living outside of Key West. The island economy of Key West benefitted significantly from Henry Flagler's railroad from Miami, completed in 1912. But the Hurricane of 1935 destroyed all rail service and killed over 800 people. State-sponsored projects helped build The Keys into a modern community. These included a pipeline built to transport fresh water to residential areas from the Everglades as well as the construction of U.S. Highway 1 (Overseas Highway), linking Key West to Maine. Commercial expansion and advertising initiatives helped tourism evolve into one of the area's main industries. Economy Monroe County has major retail and commercial centers in Key Largo, Marathon, and Key West, although there are numerous hotels, motels, residential and a few industrial developments situated along the Overseas Highway and some on nearby secondary roads. Major private industries include construction, retail and hotel (lodging). Commercial fishing continues to be an active part of the economy. Crawfish and shrimp are the major catches and make up approximately 75 percent of the marine catch. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3270 PRESENTATION OF DATA 29 In the last several decades, Monroe County residents have been dependent mainly on the leisure and hospitality industry for employment, followed by retail services, commercial fishing, transportation, utilities and government. Tourism accounts for $2.7 billion of the Key's economy with 60% attributed to tourist spending. Special events attract large numbers of tourists such as Fantasy Fest in Key West and spiny lobster (crawfish) recreational mini-season. The current economy is due to a formerly rapidly growing population, growth in tourism, increases in income and higher levels of consumer spending. On Sept. 10, 2017, Hurricane Irma struck the Keys on as a Category 4 hurricane. No part of the Keys was spared, yet Marathon and the Lower Keys from Mile Marker 16 to 40 were hit the hardest. Monroe County tourism was struck as well, with tourism transient room revenue taking a dip from $947,344,000 in 2016 to $899,227,000 in 2017. In 2022, Monroe County has recovered from the strongest storm in half-century but as in other area of the county is recovering from the Covid-19 pandemic. Transportation While most visit The Florida Keys via the Overseas Highway, Monroe County is also accessible via small harbors and personal docks that exist throughout the county. The Key West harbor accommodates cruise ships, ferry service and personal watercraft. Marathon Airport located mid-way in the island chain is a two-runway, general aviation airport located at 8800 Overseas Highway, in Marathon. Operational statistics list types of aircraft based on the field, single- and multi-engine airplanes, jet, helicopters and bi- planes. Aircraft operations are broken into local general aviation, transient general aviation, air taxi, commercial and military. Key West International Airport on the northeast end of the city of Key West hosts four airlines and five on-site rental car agencies. General aviation aircraft can be accommodated with advance arrangements. Government Five commissioner districts plus an unincorporated area comprise Monroe County. The Board of County Commissioners includes one member elected from each district with the title County Mayor given to the chairperson chosen by majority vote of the Board. The Board appoints a Mayor and a County Administrator. A local television outlet broadcasts local government meetings and weather updates. Public services include five WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3271 PRESENTATION OF DATA 30 county sheriff's stations, eight fire stations, and two air ambulance stations. They also include 17 parks, 4 beaches and 4 pools. Education Monroe County school district includes three elementary schools, four K-8 centers, three high schools, four charter schools, two Montessori centers and five special centers that include adult education and Head Start. The Florida Keys Community College has campuses in Key West, Marathon and Tavernier. Public libraries are in Key West, Big Pine Key, Marathon, Islamorada and Key Largo. The Keys also have several museums, most which are in Key West. Recreation The Keys' mild climate and island location makes watersports the area's primary activity. Seaplane and boat tours are available year-round for diving and fishing. Key Largo, known as the "Diving Capital," is home to John Pennekamp Coral Reef State Park, the only underwater park in the country covering 178 square miles of coral reefs, sea grasses and mangroves. Other parks in the county include Bahia Honda State Park, Looe Key Marine Sanctuary and Long Key State Park. Key Colony Beach also features a nine-hole public golf course and an 18-hole championship golf course. Summary Well-planned development of resort properties (hotels, motels, etc.) together with improvements to bridges and roadways are likely to maintain the health of the Florida Keys' overall economy. Monroe County has recovered from the aftermath of Hurricane Irma. However, the pandemic had tourism come to a halt in 2020 when the Keys were shut down for two months and the only people allowed in were those who lived or worked here. The economy has since rebounded and is considered significantly better than pre pandemic levels as it relates to the marina market with regard to rental rates and occupancies. COMMERCIAL REAL ESTATE VALUATION 3272 PRESENTATION OF DATA 31 Regional Location Map ktoore,Hava West POInv 'Befle Wade Mumma Lake LarTp; �a tiax HoaVain Ever rjhiy1k,,-g, Poma . ur quIllo O, (3�� llU��; fpstlM a yn e; 1'401°TWslead �,�4,a b h tl 11 Rn'NJr k:gcI es, ,I COMMERCIAL REAL ESTATE"VALUATION 3273 PRESENTATION OF DATA 32 Neighborhood Location Map , 3uu�Ull* wl SIX A -Oyd,l FNair'i_IU�g�r^uu gem R^°i',Y I�'��11 romAp��rl��mb,u�IV K;rHi°,^,I,',,,,,kpi�,i F briyj�jf�" -. � mr. LP = ,,,, ,,,,,,,,, ,,,,,,,, ,,,,,,,,, ,,,,,,,,, COMMERCIAL REAL ESTATE VALUATION 3274 PRESENTATION OF DATA 33 Neighborhood /Area Description General Overview The subject property is located in the Florida Keys near Mile Marker 95 on the Overseas Highway, in an area commonly identified as Key Largo. The subject property is located at the southern portion of the Key and facing the eastern shoreline of the Atlantic Ocean. Key Largo is the first key within the string of islands and home to tropical hardwoods, winding creeks, two state parks, a national park, and a portion of a national marine sanctuary. None of Key Largo is an incorporated municipality, so it is governed at the local level by Monroe County. Key fro rio Ofi ellf,frl4';tiJl`Ri Key Largo is the largest section of the Keys at 33 miles long. Key Largo is connected to the mainland in Miami-Dade County by two routes. The first route is the Overseas Highway, the southernmost portion of U.S. Highway 1, which enters Key Largo at Jewfish Creek near the middle of the island and turns southwest. The second route is Card Sound Road, which connects to the northern part of Key Largo at Card Sound Bridge and runs southeastward to connect with County Road 905, which runs southwest and joins U.S. 1 at about mile marker 106. These routes originate at Florida City on the mainland. KeyLargo is a popular tourist destination and 9 p p calls itself the "Diving Capital of the World" because the living coral reef a few miles offshore attracts thousands of scuba divers and �rar, sport-fishing enthusiasts. Key Largo's proximity to the Everglades also makes it a premier destination for kayakers and ecotourists. rev paw✓ COMMERCIAL REAL ESTATE VALUATION i 3275 PRESENTATION OF DATA 34 .,lp/�,;;Wu,,�m�r t,,,IIW r 'M� W r 0,,;✓a��fll John Pennekamp Coral Reef State Park, to the east, the first underwater park in the United States, which protects only living barr er r of inthe Florida c ntinental United eStates.T ec p ark is approximately 25 miles in length and extends 3 miles into the Atlantic Ocean. Pictured to the right is the Christ of the Abyss Statue in John Pennecamp Park. Development History Water and electrical service was brought to the community in the 1940s. The majority of commercial development consists of buildings along US 1. Typical commercial uses include retail stores and strip centers catering to both visitors and local residents, hotels and motels, restaurants, small offices, and marinas (on sites abutting water). Housing is primarily single-family residential, situated in neighborhoods that are set back from US 1. Accommodations are represented by small family-owned properties to vacation homes and condominiums or large resorts are available for all types of visitors. Current Development Neighborhood shopping centers, with grocery store anchors are present on Key Largo. As the key stretches for 33 miles there are various locations with national retailers and a good supply of supporting uses. There are numerous resorts and hotel developments, ranging from Q ,r�li4Y+ll'�i yiwh'h°� 'il, small locally own boutique hotels to 4 international brands like Marriot and Hampton Inn, as well as various " mobile home and RV resorts located throughout the island. There are also chain restaurants and retailers, however, the majority of restaurants and businesses are locally owned. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3276 PRESENTATION OF DATA 35 Schools for the neighborhood are also located throughout the key. Key Largo School is a K-8 public school located in the northern part of the key. There is a Montessori Academy of The Upper Keys and an Ocean Studies Charter School (K-5) located in the middle of the key. High School is served by Coral Shores High School located in the southern portion toward Tavernier and Plantation Key. The closest hospital serving this area is the Mariners Hospital in Tavernier. This is a Baptist Health location that has an emergency room and specialized branches. Like other parts of the Keys, Key Largo offers abundant water-related recreation to attract its share of tourists. There are many options for recreational boating and fishing, as well as kayaking, snorkeling and diving. The abundant saltwater and backcountry fishing have helped earned the area's reputation as "The Sport Fishing Capital of the World," as demonstrated at many annual fishing tournaments. There were 28,966 boats registered in Monroe County in 2019; and there are many more boats registered in South Florida and seasonal boats from other areas that seek temporary or permanent00, storage in the Keys. Man of the Y Y smaller boats are stored "at home" (primary home or vacation home) on trailers. However, because of "a a size and convenience many boats are berthed in commercial marina facilities such as those in Key Largo mentioned above. Larger boats (sport fishing, trawlers, sailboats, etc.) require in-the-water "wet slip" dockage. Other boats of appropriate size, weight, and configuration are stored out-of-the water in "dry racks." Boats suitable for dry rack storage are typically powered by outboard engines and have a relatively low profile (although dry storage is preferred by many inboard-powered go-fast boats). Dry storage racks may be open to the elements, partially enclosed, or fully enclosed for maximum protection from sun and weather. There are many remaining vacant areas in Key Largo, but the majority are located in protected wetlands or tidal areas, owned by the State of Florida. The county's ROGO, and this factor, have severely limited the number of sites for development of new WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3277 PRESENTATION OF DATA 36 properties during the past two decades. Additionally, as mentioned in the Regional Overview, development will cease in 2023 when no new building permits will be issued. Demographics Demographic profiles for the one-, three- and five-mile radius surrounding the subject are presented in the Addenda Section of the report. Key facts of the 5-mile radius are presented below. 29% 72 447 HINJI,`(JME Hox Ili ld! Eq Income tfify li) Il rrau atl 0.r . all yiy �°f ,,,, II 1,1,ID r.( ID y".1 r 0, MIIN aµµ, r t J t o i' V, .. !f."'' -2<4: MMIIUIU ,470 1 1t i G)q 1 '� 37 (4 ',e I 1 21* I I:iY ''i, d ,� .it' V .„A o ..,,"f.✓1l I vf1 6ar5 slwatiuc�disf.�an,y,m, I"�-nma f`,rx.nl:y ,. Summary Over the long term, it is anticipated that this region will continue to attract new businesses and residents, with an accompanying increase in demand for goods and COMMERCIAL REAM.,ESTATE"VALUATION 3278 PRESENTATION OF DATA 37 services but will be tempered by the significant development restrictions common in the Keys due to the sensitive ecological environment. Increased demand for all types of services in Monroe County should continue, albeit at a much more moderate rates than that of the levels seen pre-Covid-19 and in 2019. As of 2024, a near-full recovery has been made and The Florida Keys is seeing abundant visitor action. WALTER D� it E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3279 PRESENTATION OF DATA 38 Multifamily Market Overview The Florida Keys are not included within any Costar-defined multifamily market. This is due to the relatively low number of multifamily properties located here. A custom search was conducted for the subject's general area, consisting of Key Largo to Islamorada. A total of 36 multifamily properties resulted. The search resulted included a range of properties from duplexes to traditional apartment buildings, to mobile home parks. Key indicators included a 1.8% vacancy rate and a 6.0% cap rate. ',rdiIPu„d`u G ade h'i�496iPA r=P p /I � Z�^91 �U W Ph4))P,t i. 4Y ors; The Florida Keys are largely a single-family home and vacation destination, where most of the homes are high-value. The economy is primarily dependent on tourism and the housing affordability for service industry and community support workers is an issue. Affordable and workforce housing is in very high demand. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3280 PRESENTATION OF DATA 39 Primary Market Area The Primary Market Area (PMA), which is where most of the demand will originate, is defined as the 5-mile radius surrounding the subject. A map of the subject PMA is presented below along with key indicators. 5-Mile PMA R0IPUI...AT10N TRENDS AICJID IBEX IINDICA1.ORS � a V 1/ 9,191 4,3470 2.13 53.8 !677,447 S714 694 1137 43 61 ti ' '' ' " '"r' '"' IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlw�� ' V��f�llllllllllllllllllllllllllllllllllllllllllll 6 2`%, 34.5`/ 23.5`ir1 MOOR ! Di ^c 1t2' NSA N I .y r'-.; IP',6% 13.8% 4.3% esri" „ .. The data used in this analysis was provided by STDB (Site To Do Business). A complete demographic report, including population growth, household growth and income characteristics can be found in the addenda. A summary of the demographic profiles of the historical, current, and projected population in the PMA is presented in the table on the following page. Population with Household Statistics -5-Mile PMA 2020 2023 2028 Total Population 9,093 9,191 9,243 Total Number of Households 7,200 7,322 7,357 Percentage of Renter-Occupied Households 18.3% 19.6% 19.3% COMMERCIAL REAL ESTATE VALUATION 3281 PRESENTATION OF DATA 40 Site Description Physical Characteristics Site Area 85,306 Square Feet (1.96 Acres) Shape L-shaped Topography General) level; street grade Street Frontage Overseas Highway & Snapper Lane Zoning Classification SC, Suburban Commercial Zoning Authority Monroe Count Future Land Use Designation MC, Mixed Use/Commercial Tier III Flood Zone AE Flood Map Panel Number 12087C0936-K; date February 18, 2005 Census Tract 9706.00 Adjacent Land Uses — North Vacant Land Adjacent Land Uses —South Single Family Homes Adjacent Land Uses — East Vacant Land / Ocean Adjacent Land Uses —West Single Family Homes Comparative Analysis of Site Evaluation/Rating Vehicular Access Access to the site is currently available along Snapper Lane Vehicular Exposure/Visibility Good visibility from adjacent roadways for residential use Drainage Assumed adequate upon completion, appeared adequate upon site inspection Utilities Provider Electric Florida Keys Electric Co-op Water/Sewer Florida Keys Aqueduct Authority Other Easements/Encroachments There are no easements or encroachments encumbering the subject that would impede development. Reciprocal Parking Agreements None Aerial View f COMMERCIAL REAL ESTATE VALUATION 3282 PRESENTATION OF DATA 41 Zoning & Land Use Zoning The subject is zoned SC, Suburban Commercial. The purpose of the SC district is to establish areas for commercial uses designed and intended primarily to serve the needs of the immediate planning area in which they are located. This district should be established at locations convenient and accessible to residential areas to reduce trips on U.S. 1. Permitted uses include commercial retail, office, restaurant uses, institutional residential uses, involving less than 10 dwelling units or rooms, commercial apartments involving less than 6 units, limited commercial recreation uses, public uses, and parks. Additional conditional uses include: • Institutional residential uses involving ten to 20 dwelling units or rooms, provided that: o Access to U.S. 1 is by way of: ■ An existing curb cut; ■ A signalized intersection; or ■ A curb cut that is separated from another curb cut on the same side of U.S. 1 by at least 400 feet; • Commercial apartments involving six to 18 dwelling units, provided that: o The hours of operation of the commercial uses are compatible with residential uses; ■ Access to U.S. 1 is by way of: ■ An existing curb cut; ■ A signalized intersection; or ■ A curb cut that is separated from any other curb cut on the same side of U.S. 1 by at least 400 feet; • Tourist housing uses, including vacation rental uses, of commercial apartments are prohibited • Hotels of fewer than 25 rooms, provided that: o One or more of the following amenities are available to guests: ■ Swimming pool; ■ Docking facilities; or ■ Tennis courts; • Campgrounds and recreational vehicle parks, provided that: o The parcel proposed for development has an area of at least five acres; o If the use involves the sale of goods and services, other than the rental of camping sites or recreational vehicle parking spaces, such use does not COMMERCIAL REAL ESTATE VALUATION 3283 PRESENTATION OF DATA 42 exceed 1,000 square feet and is designed to serve the needs of the campground; and o The parcel proposed for development is separated from all adjacent parcels of land by at least a class C bufferyard; The stated permitted density for residential uses is 3 DU/AC, with incentives 6 DU/AC, and affordable housing 18 DU/AC. Tier Overlay District In 2005-2006, Monroe County designated parcels into a tier system to assist with allocating/awarding permits to appropriate areas/properties from an environmental and planning perspective. Generally, the tier designations are: • Tier I - Environmentally sensitive land • Tier 11 - Transition or sprawl reduction area on Big Pine Key or No Name Key • Tier III - Infill area, not nearly as environmentally sensitive (lots that are 50 percent or more developed) platted subdivisions with adequate infrastructure • Tier IIIA - Special protection areas (no IIIAs on Big Pine Key or No Name Key), the intent is for the areas that do not fit into Tier I or Tier III to be placed in IIIA (e.g., the environmentally sensitive areas that were split by roads, were invaded with exotic plants or trees, or included some types of vesting) The subject is designated as Tier III — Infill Area which is favorable for development. Land Use The subject reflects a MC, Mixed-Use/Commercial land use designation, which is consistent with its zoning designation. Plat Book/ Page The subject is recorded in Plat Book 3, Page 11 of the Public Records of Monroe County, Florida. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3284 LO co N M CIO 4 y. a: auwo- l/'ru 3,a9.b4w � Z ar u P, LLB Wti � I G ui i �� yl� �.r ,"A• c, co 0 gy 'F � ----- r� II I JE.� ----- �. CO LL e -- 0 ------ � 0 1. M "y � � I r I t I r- u F�n -- FAA , I r � —m. Ab5 »r aa�, n WIN 1r .,� '� L.'" b a rug I � PRESENTATION OF DATA 44 Improvement Description Category Physical Characteristics Building Type Garden/Walk-Up Residential Rental Apartments Building Class Class "B" Residential Buildings 11 Stories 2 Dwelling Units 28 Size 26,532 Square Feet of Net Rentable Area The apartment unit mix is as follows: Total Unit No.of Unit Rentable Type Units Size Area 1/1 12 651 7,812 2/2.5 12 1,140 13,680 3/2.5 4 1,260 5,040 Residential Total/A\(g 28 948 26,532 Office 870 Overall Total 27,402 Component Construction Detail Design/Layout The subject will include 11 residential buildings which will all be two-stories in height and house a total of 28 apartment units. Each building will have surface parking spaces in front of the buildings. Other site improvements will include a office/cabana building and landscaping. Structure Concrete frame on concrete slab, stem wall Interior Walls Painted drywall Roof Hip or Gable Floors Ceramic and vinyl tile HVAC Central Utility Meters In-unit electric; Separate meters Staircases Exterior and interior for two-story units Security Features Unknown Fire Safety Fire/smoke detectors and wet sprinkler system throughout Laundry Washer/dryer in units Electrical Adequate for use Windows Aluminum frame impact windows Doors Exterior— hollow metal, Interior— hollow core wood WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3286 PRESENTATION OF DATA 45 Component Construction Detail Patio/Balcony Included in each unit Parking 60 total parking spaces, including 3 handicap Age/Condition The subject improvements will represent new construction upon completion. The estimated economic life of this type of property is typically perceived by the market to be approximately 50-60 years. However, adequate maintenance and period renovations/updates can serve to extend the economic life of the improvements. Personal Property The subject will contain numerous items considered to be personal property or trade fixtures. The primary items with respect to the subject are expected to include, but are not limited to: ■ kitchen appliances, washer/dryers ■ common area furnishings ■ maintenance and office equipment ■ fitness equipment These items are commonly found in rental apartment complexes of the type and class of the subject and are typically included in the purchase and sale of the overall property. It should be noted that some buyers make an extraordinary allocation to personal property in order to reduce documentary stamp taxes, control real estate tax increases, and to depreciate the personal property allocation on a shorter schedule. Despite that, in all of the sales we examined, all purchase and investment decisions were based on the total "package" of real and personal property. Based on market perceptions and methodologies, the appraisers' estimate of overall value includes the personality itemized above. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3287 co co N M I � � LL i wi I ; W I ' W CL i LLB t ddu ` I m I I fa r e i u v.ttr,. i -------------------------- i k-yy M I a t'rr I i I I JI �11Y�9 RD a�J °;K ks Mi � I r- PRESENTATION OF DATA 47 Market Participants/Most Probable Purchaser Given the property class and considering the rent restrictions in place, the most probable purchaser of the subject is a national investor/operator that specializes in affordable low- income housing. Marketability (SWOT Analysis) In order to determine the marketability of the subject property, a SWOT analysis has been undertaken. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are internal to the subject and deal with what a property can and cannot control. Opportunities and Threats are external forces that cannot be controlled directly by the subject, but the subject can adapt to external factors. Factors serving to affect the desirability and marketability of the subject include: Strengths • Good location o Stable surrounding neighborhood with built-in demand for this class and quality of residential housing o Close proximity to the mainland o Good supply of basic supporting services in general area, i.e., restaurants, employment, hotels, educational facilities and shopping • Significant demand for affordable and workforce housing within submarket • New construction with functional layout and modern design Weaknesses • Minimal but small size creates operating inefficiencies. Opportunities • Under supplied and pent-up demand for affordable and workforce apartment product in the subject submarket • Strong current rental apartment market • Florida has been and continues to be a pandemic winner and targeted location • The Florida Keys have been and are expected to continue to be a vacation destination. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3289 PRESENTATION OF DATA 48 Threats • National political climate. • Inflation. • High interest rates • High insurance costs Exposure Time Exposure time is a historical event, which according to the definition of Market Value, precedes the effective date of the appraisal. The Appraisal Standards Board of the Appraisal Foundation defines Exposure Time as..."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 upon an analysis of past events assuming a competitive and open market." Based upon interviews with market participants, including sellers, investors and brokers, the appraisers believe a reasonable exposure time for the subject property to be between three and six months. The investment value estimate set forth in this report represents our estimate of value, as of the appraisal date, based on a precedent exposure to the open market of three to six months. Reasonable Marketing Time The reasonable marketing time represents the most probable time required to expose the subject property on the open market to consummate a sale at a market level price. Based upon interviews with market participants, marketing time is a difficult variable to estimate. Participants interviewed within the course of this report indicated that marketing time is a direct function of price and exposure. These variables are interconnected and cannot be estimated independently. Fundamental economic theory indicates that value and marketing time are directly related and must be estimated simultaneously in order to be meaningful. Based on the subject investment criteria, a marketing period of approximately three to six months would be required to sell the subject property. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3290 ANALYSIS OF DATA ANALYSIS OF DATA WALTER D�l. KE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3291 ANALYSIS OF DATA 50 The Appraisal Process The appraisal process normally gives consideration to the "three approaches" as they are typically referred to. They include the Cost Approach, the Sales Comparison Approach and the Income Approach. The Appraisal of Real Estate, 15th ed., 2020, outlines the mechanics of each approach as follows: Cost Approach In this approach, an estimated reproduction or replacement cost of the building and land improvements as of the date of the appraisal is developed together with an estimate of the losses in value that have taken place due to wear and tear, design and plan or neighborhood influences. To the depreciated building cost estimate, the estimated value of the land is added. The total represents the value indicated by the Cost Approach. Sales Comparison Approach In this approach, the subject property is compared to similar properties that have been sold recently or for which listing prices or offering figures are known. Data for generally comparable properties are used and comparisons are made to demonstrate a probable price at which the subject property would be sold if offered on the market. Income Capitalization Approach In this approach, the current rental income to the property is calculated with deductions for vacancy and collection loss and expenses. The prospective net operating income of the property is then estimated. To support this estimate, operating statements for the subject property in previous years and for comparable properties are reviewed along with available operating cost estimates. An applicable capitalization method and appropriate capitalization rates are developed and used in computations that lead to an indication of value. From the value estimates indicated by the three approaches, a final estimate of the property's value is selected through the process of reconciliation. The three approaches are seldom completely independent. An appraisal is composed of several integrated, interrelated and inseparable procedures that have a common objective — a convincing, reliable estimate of value. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3292 ANALYSIS OF DATA 51 Highest and Best Use The definition of highest and best use (see glossary in the Addendum) implies recognition of the contribution of specific use to the community environment or to community development goals, in addition to wealth maximization of individual property owners. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (Market Value), another appropriate term to reflect highest and best use would be most probable use. In the context of investment value, an alternative term would be most profitable use. Highest and Best Use As Vacant Highest and best use must meet four criteria: Legal Permissibility, Physical Possibility, Financial Feasibility and Maximal Productivity. Walter Duke + Partners has analyzed the criteria with regard to the subject site as follows. ■ Legally Permissible The most significant legal constraint to land use is zoning, which specifies the type and intensity of land use. Zoning laws are designed to allow for the orderly development of communities rather than permitting a disorganized sprawl. The goal in general terms is to provide for comparable neighboring land uses, coordinate the development of primary infrastructure and reduce the overall cost of providing the necessary services to the community. According to the Monroe County, the subject is zoned SC, Suburban Commercial, with a Tier III designation, which permits development. The county has relatively detailed criteria for development, but this district permits a wide range of uses. According to the Employee Housing Deed Restriction in place, the property is restricted to operating as a 28-unit, low and medium income residential property for the following 99 years. ■ Physically Possible The subject site consists of a rectangular parcel totaling 1.96 acres. The topography of the site is generally level and near road grade with abutting streets, and all utilities are available to the site. The surrounding sites are developed with various commercial and residential uses. Overall, the subject site appears to be physically capable of accommodating any of the legally permitted and approved uses of the site. WALTER D� it E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3293 ANALYSIS OF DATA 52 ■ Financially Feasible This analysis deals with any use that will return any net return to the site over a given period of time. As stated throughout this appraisal, the subject will operate as an affordable housing property with all of the units set aside for workforce residents with household incomes at or below 80% and 100% of the area median income, as required by the anticipated underlying deed restriction. As such, the most financially feasible use to the property, as vacant, appears to be for affordable/workforce multifamily rental residential development. ■ Maximally Productive Use Maximum profitability deals with the use that will produce the greatest net return to the owner of the site over a given period of time; it is also the highest and best use of the site if vacant. With consideration to cost of construction, market acceptability, and cash flow, a mixed-income rental apartment project that caters to mixed-income tenants is considered to represent the maximum profitability of the site. Highest and Best Use as Improved Once a parcel of land is improved with a building, the two parts form an integral unit and, for all practical purposes, they are all inseparable. However, when the market value of the land alone, if vacant and available for use, exceeds the value of the property as improved, the improvements are no longer a viable contribution to the property and a new use must be adopted. In analyzing the highest and best use of the property as improved, several principles of real estate values must be considered. They include conformity, supply and demand, change and balance. As improved, the subject improvements will conform to the other newer competitive rental apartment projects which provide affordable housing to low-income residents in the subject's market. It appears to be well located for this type of rental apartment usage, providing excellent access to basic transportation, shopping and medical facilities. The improvements will provide a viable contribution to the site. Given the stable apartment rental market, operation of the subject as an affordable/workforce housing apartment community represents the Highest and Best Use as Improved. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3294 LAND VALUATION 53 Estimate of Land Value The sales comparison method was determined to be the appropriate methodology for estimating land value. This technique is accomplished by searching for sales of similarly zoned land, examining the motivations behind the purchase, reducing the sale prices into value indicators, comparing each sale with the subject, and finally reconciling the comparisons into a final value estimate. The subject site comprises 1.96 acres and possesses a SC zoning designation. The highest and best use of the site was determined to be for an affordable housing multifamily apartment project consistent with the proposed development. A search was conducted for recent sales of competitive multifamily development sites located throughout the subject submarket. The land comparables were reconciled using a common unit of comparison. According to brokers, developers and market participants, the most commonly used value indicator for vacant land within this market, for a highest and best use for multifamily residential development, is the sale price per planned/allowable unit. A Comparable Vacant Land Sales Summary and Adjustment Table is presented on the following page accompanied by a location map. COMMERCIAL REAL ESTATE VALUATION 3295 cfl N M L 0'. a'. N m uMi �MFo- Y7- �M cuui yC°' o6o, o©©© 000 Q nc_'f ~. �y ro :z c cti w W N wi m m m � Z f' in m c Qy mm m mM Ncoo c c» o ,o,a��a o g,ao g g o m © 4!U in o© © uJ J ro O � 'n 'n T m o5'?-T N NMa ro oi © 000ci M I2 a 1 oo O a D ro l T U ." m LEI W } © O o0'SY .- N 01 pf U1 m N M a N f9f O O Q o O o o l 0 o o Rf� p Aro N CN�+I© e}fl N G. ©©©© do Rh N 22 �r m o a,v o rw r.o' o in 'a p;$ o a ;Y p n. n. mrZ ,two ©coral© ©©©© ©©v�u�© © © ^: = O p0 p]O o roT N C]@i CI o Q o o N b (q Q M m L1 to CU N ro u) h }.C d'�\g n ro W fT a''M oa o ©mug©© © © rn m cn In' N 1/1 N N © Q Y H N m p 64 O W 69 0 © U3 ti } J � ©Iq o..o a a in. al / o o � � 2 �>-o m � ©©o o©moo o �. v o I,.�t� ro o Q } +eh Q E M M U F- N U m � N L r Q �n CL U r' con aom cis� m m� tm+i r©i. N�o aci n�. � W 2 ro I*a rn � m orb' b. noioo�+ oti N Y v® n W m l L in U N m m �4 ro z ( a LL � D w a a T oU m 6� � � M wv LLLi1 Q Q r» T N o v" 41l u Q cn a 0 UD a s w c o U 2� A W U m m o c'. J o c w m Zrn Q m m K oa �_.. O FU F,l MH O 400 mdLL V7 Q 2 o c O `m m a s JOLL't U7N F- C] CS LAND VALUATION 55 Comparable Land Sales Location Map �„ I xiig,r t .t PYI TIf�'14 n,iff tll N(.:V /�I/1YYY V. M rl vrr t r pip Adjustments The most appropriate method to value the subject property is direct comparison with like property sales. A comparative analysis is necessary to extract differences, if any, in the features and attributes that differentiate the sales from the subject. In the following pages, comparable sales are summarized and a discussion of the various factors that may affect value is set forth. Property Rights Conveyed — Each of the sales were verified to have transferred a Fee Simple interest. The subject is currently vacant and therefore, similar to the comparables. No adjustment was applied. Conditions of Sale (Motivation) — When the conditions of a sale are atypical the result may be a price that is higher or lower than that of a normal transaction. Further, when non-market conditions of the sale are noted, the sale should be related to the subject property only with great care. Typically, market-based adjustments are very difficult to make for such situations. With regard to the comparable sales, all were verified arm's WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3297 LAND VALUATION 56 length transactions. That is, all of the sales involved typically motivated buyers and sellers acting in their own self-interest. None of the sales reported abnormal conditions, and no adjustments were warranted. Cash Equivalency (Financing) — The transaction price of one property may differ from that of an identical property because financing arrangements vary. If a buyer of a certain property assumed an existing mortgage at a favorable (below current market) interest rate, the buyer may have paid a higher price than a purchaser of the subject can be expected to pay under current market financing terms. Other forms of favorable financing often include below market seller financing, such as purchase money and/or wraparound mortgages. The financing arrangements for each comparable sale were analyzed. Each sale appears to have been conducted with cash or typical financing terms and reflected no significant effect upon the respective purchase price. Therefore, no adjustments for financing have been made. Market Conditions (Time) — Market conditions may change between the time of sale of a comparable property and the date of the appraisal of the subject properties. Under these circumstances, the price of the comparable property would be different at the date of the appraisal, and an adjustment should be considered. Time itself does not necessitate an adjustment, but rather a shift in market conditions over time. If market conditions have not experienced any significant change, no adjustment would be required, even if a considerable amount of time had passed. To ensure that the comparable sales represent current market conditions, the most recent "arm's length" transactions from this submarket were utilized. The Comparable Sales examined are the most recent "arm's length" sale transactions of vacant land or improved properties sold for land value within this submarket. The sales occurred between June 2022 and October 2023 with one currently pending sale. Within the data set, there does not appear to be a direct correlation between time and price per square foot. No adjustment was applied. Location —An adjustment for location may be required if the Iocational characteristics of a comparable property are significantly different from those of the subject property. All of the sales were located in Monroe County and considered good locations for affordable housing developments. No adjustment was warranted. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3298 LAND VALUATION 57 Ocean Access —The subject is a dry lot and does not have water frontage. Sales 2 and 6 were located along the water and require a downward adjustment. Site Conditions — Site conditions include current site improvements, access to the site, and site configuration. The subject is currently improved with various residential structures and reflects a corner location. The subject is an L-shaped site with access from Overseas Highway. Each of the sales reflected favorable site conditions for development. No adjustments were warranted. Zoning — The subject reflects a zoning designation of SC, Suburban Commercial, and workforce/affordable housing is listed as a permitted use. Each of the comparable sales also permits affordable housing and are considered generally similar. The subject's district permits affordable housing at a density of 18 DU/AC. The permitted density varies between zoning districts. • Sale 1 reflects a mixed zoning and it is unknown what the actual permitted density would be, although, the HC district permits 15 DU/AC for affordable housing. A slight upward adjustment is applied. • Sale 2 had a site plan in place for 8 single family homes at the time of sale, which results in a lower density of approximately 2 DU/AC. The permitted density for affordable housing is 15 DU/AC. A slight upward adjustment is applied. • Sale 3 was zoned MF, Multifamily, but did not have a site plan in place or plans to develop at the time of sale. The zoning code states that a density of 15 DU/AC for affordable housing is permitted. A slight upward adjustment is applied. • Sales 4 and 5 are zoned RH which permit affordable housing developments at a density of 25 DU/AC and require a downward adjustment. • Sale 6 is also zoned Mixed Use and had a site plan approved for 14 homes. The zoning permits 15 DU/AC for affordable housing. A slight upward adjustment is applied. Approvals — For this analysis, the site is considered to be approved for the proposed development. Sales 2, 4, 5, and 6 were sold with approvals in place and are considered similar. Sale 1 and Sale 3 did not have approvals in place for any development and required an upward adjustment. Size — In observing and analyzing land sales within the Southeast Florida real estate market, a relationship has been noted. Typically, there is an inverse relationship WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3299 LAND VALUATION 58 between size of the site area and price per unit (square foot). This is because a larger site results in a higher overall sale price, reducing the number of potential purchasers. The comparables range in size from 0.78 to 3.65 acres. The subject comprises 1.96 acres and is within the range of comparables. The theory of economies of scale does not necessarily apply for development sites that are in high demand. Within the data set, there does not appear to be a direct inverse relationship between price and size. No adjustments are applied. Reconciliation Six recent sales were analyzed. A comparative process was undertaken whereby a direct comparison was made between the subject site and the comparables, using the price per square foot and price per unit methodology. Factors relating to conditions of sale (motivation), financing, market conditions (time), location, site size, site conditions, zoning issues and surrounding uses were all considered. The comparables possessed both similar and different characteristics to the subject property. • The sales required minimal adjustments, indicating they are each relatively similar to the subject. • Each sale was located in a district that permitted affordable housing, but Sales 4 and 5 were the only sales that were planned for affordable housing. These sales were considered superior to the subject as they permitted a higher density, and were adjusted downward. The adjusted prices were the same and resulted at a price of$63,750 per unit. • On a per unit basis, Sale 3 fell close to Sales 4 and 5, resulting in an adjusted price of $66,127. This property did not have a development planned and this is based on the permitted number of affordable units per the zoning code. • Sales 2 and 6 resulted in higher prices per unit, as they both had plans for lower density, single family home developments that would be for sale to individual buyers and are considered less similar to the subject. • On a per square foot of site area basis, the adjusted indicators ranged from $16.51 to $42.58 with an average of$32.89 per square foot. • The subject was acquired in 2021 for a price equivalent to $10.74 per square foot and $32,714 per planned unit. According to the data set, both indicators are slightly low. There has been a general appreciation of market conditions since that time, although it has been mitigated by inflation, interest rates, and insurance costs. WALTER D� it E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3300 LAND VALUATION 59 • Other sources of comparable data include one contract that we are aware of that was previously in negotiations but was cancelled. This was an affordable housing site in Sugarloaf Key that equated to $50,000 per planned unit. • Lastly, the broader market, throughout Miami-Dade County, reflects more affordable housing activity. Six recent sales were observed that traded for between $22,588 and $41,667 per unit, reflecting a slightly lower average than the Monroe County sales presented earlier. Monroe County has less supply of land and similar, if not more, demand for affordable housing which could lead to higher pricing than in Miami-Dade County. • Therefore, the land value is estimated as follows: Value Estimate Per Unit $60,000 Multiplied by: Number of Units 28 Market Value "As Is" $1,680,000 Rounded $1,680,000 COMMERCIAL REAL ESTATE VALUATION 3301 COST APPROACH 60 Cost Approach to Value The Cost Approach is primarily based on the principle of substitution. The principle of substitution states that a person is not justified in paying more for a property than that amount by which he/she can obtain, by purchase of a site and construction of a structure, without undue delay, a property of equal desirability and utility. When the subject represents a proper investment, meeting the definition of highest and best use, then this approach is based on the assumption that the reproduction cost is near the upper limit of value. The Cost Approach consists of four distinct steps: 1. Valuation of the land as vacant. (Previous Section) 2. Estimation of Reproduction or Replacement Cost New of the existing structure and/or improvements. 3. Estimate of accrued depreciation. 4. The addition of the land value and the depreciated reproduction or replacement cost of the structure and/or improvements to a value conclusion. Developer's Cost Estimate The subject developer provided a cost analysis for the construction of the proposed property. Direct costs include hard construction costs for the apartment building and site improvements. Indirect costs include all other items, with a separate category provided for financing costs. A copy of the full budget, as provided by the developer, can be found in the Addenda. The budget is summarized below: Developer's Cost Budget Summary Building Each Total BuildingType A (3) $571,300 $1,713,900 Building Type B (6) $515,800 $3,094,800 Building Type C (2) $517,800 $1,035,600 Office Bldg (1) $161,600 $161,600 Site Work $1,051,800 $1,051,800 Total Costs $710571700 Per Unit $252,061 WALTER D�Ul +PARTNERS, COMMERCIAL REAL ESTATE VALUATION 3302 COST APPROACH 61 Marshall Valuation Service Costs within the Marshall and Swift Commercial Cost Book, herein after referred to as Marshall, reflect reliable cost estimates when utilized properly. Indicated costs are regionalized by the use of local multipliers and updated by current cost multipliers. Classification of the subject via Marshall requires a certain degree of subjectivity. Based on the physical characteristics of the subject (type and quality of building systems), it is the appraisers' opinion that the subject's building improvements are best represented by the base costs from Section 12, Page 16, for Good Quality Class C Multiple Residences. Marshall cost figures include many indirect costs such architect fees, engineering fees, contractor overhead, sales taxes, permit fees, insurance and interest on interim financing. However, real estate taxes, contingencies, marketing/lease-up, impact fees and financing costs are not included. Therefore, additional costs are added to the indirect cost section of the Marshall estimate, and estimates of financing costs (including points and attorney fees) are added under financing charges. Real estate taxes and loan costs are also utilized in the additional indirect costs. Application of Marshall for the subject results in the following cost estimate: A detailed analysis of Estimated Replacement Cost via Marshall is presented on the following page. COMMERCIAL REAL ESTATE VALUATION 3303 COST APPROACH 62 Replacement Cost New Estimate via Marshall Apt Building Area - Gross SF 27,402 Total Apartment Units 28 Category Multiple Residences Class/Type C/Good Section/Page No. 12/16 Base Cost Per SF $147.00 Adjust for Sprinkler System $4.50 Adjusted Base Cost Per SF $151.50 Adjustments: Building Height Multiplier 1.000 Current Multiplier 0.990 Local Multiplier 1.140 High Wind Multiplier 1.080 Adjusted Base Cost Per SF $184.66 Gross SF 27,402 Total Base Cost $5,060,095 Balconies - 1,588 SF x$39.25/SF $538,729 Office Building $136,590 Amenities Package $102,200 Total Direct Building Costs $5,837,614 Site Work $426,530 Total Direct Replacement Costs $6,264,144 Additional Soft Costs - 15% $939,622 Total Direct& Indirect Cost Via Marshall $7,203,766 Per Unit $257,277 Per SF $263 Comparable Cost Data Actual costs of three similar apartment projects located in the region have been analyzed in order to ascertain the reasonableness of the cost estimate submitted by the developer and estimated from Marshall. The cost comparables present a range of per- unit costs (direct and indirect) for the subject project. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3304 COST APPROACH 63 Construction Cost Comparables Comparable 1 2 3 4 5 6 7 Building Type High-Rise Mid-Rise High-Rise Mid-Rise High-Rise High-Rise High-Rise No.of Units 362 417 465 400 195 96 112 Project Type Market Market LIHTC/Mkt LIHTC/Mkt LIHTC/Mkt LIHTC/Mkt LIHTC/Mkt Year Built Proposed Proposed Proposed Proposed Proposed 2021-2022 2020 Budget Budget Budget Budget Budget 2024 Jun-2024 Apr-22 Feb-22 Feb-22 Direct Costs $99,290,624 $100,692,518 $103,528,530 $78,841,241 $37,941,398 $22,669,500 $22,608,347 Per Unit $274,283 $241,469 $222,642 $197,103 $194,571 $236,141 $201,860 Indirect Costs $22,902,256 $20,806,562 $30,333,624 $28,670,615 $9,649,039 $5,013,354 $5,690,417 Per Unit $63,266 $49,896 $65,234 $71,677 $49,482 $52,222 $50,807 Total Costs $122,192,880 $121,499,080 $133,862,154 $107,511,856 $47,590,437 $27,682,854 $28,298,764 Per Unit $337,549 $291,365 $287,876 $268,780 $244,054 $288,363 $252,668 As indicated, the cost comparables range from $244,054 to $337,549 per unit. The comparables represent recently constructed or proposed LIHTC apartment projects with structured parking located in Miami-Dade and Broward Counties, along with two recently proposed market rate projects reflecting the most recent cost estimates. In general, the subject improvements are considered similar to the cost comparables with regard to quality and comprehensiveness. Reconciliation of Cost Data Total costs derived from these sources are summarized as follows: Source Total Replacement Per Unit Cost New(RCN) Developer's Budget $7,057,700 $252,061 Marshall $7,203,766 $257,277 Cost Comparables $7,882,614 $281,522 Reconciled RCN $7,100,000 $253,571 The three cost sources produced a range of costs from $7,057,700 to $7,882,614 or $252,061 to $281,522 per unit. Primary weight is given to the developer's budget, which is close to the figures produced by Marshall and the cost comparables, but still at the higher end. Therefore, the reconciled RNC for the proposed subject property is estimated to be approximately $7,100,000 or $253,571 per unit. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE"VALUATION 3305 COST APPROACH 64 Entrepreneurial Profit/Incentive Entrepreneurial profit/incentive was abstracted from information on similar properties made available to us by developers, contractors and entrepreneurs. These case studies are retained in the appraisers' files. The basis for calculation of entrepreneurial profit was total direct, indirect costs and land. As expected, a wide range of profits was observed in the market. Entrepreneurial profits within the region generally range from 15% to 30% of total direct, indirect and land costs. A figure of 20% is considered to best represent the entrepreneurial profit expected by developers of the subject property type. Therefore, a 20% return adequately compensates the developer for acquisition, zoning/approvals, construction and lease-up risk. This figure is supported by entrepreneurial profit comparables, which are retained in our files due to their confidential nature. Accrued Depreciation The subject improvements are proposed and will represent new construction upon completion. No deferred maintenance or wear and tear is anticipated. For purposes of this analysis, the subject is estimated to possess a new chronological age, thus having no significant physical depreciation "As If Complete & Stabilized." Elements of economic obsolescence are observed given the difference in the Cost Approach and concluded market value estimates. Cost Approach Summary In summary, replacement costs, along with the value of the subject site, were incorporated into a Schedule of Estimated Replacement Costs for the subject and value indication via the Cost Approach to Value. This schedule is presented as follows: Market Value Indicator via Cost Approach Reproduction Cost New(RCN)of Improvements $7,100,000 Entrepreneurial Profit 20.0% $1,756,000 Total Reproduction Cost New $8,856,000 Less: Accrued Depreciation Total Accrued Depreciation $0 Depreciated Reproduction Cost New $8,856,000 Add: Land Value $1,680,000 Stabilized Market Value Indicator via the Cost Approach $10,536,000 COMMERCIAL REAL ESTATE VALUATION 3306 COST APPROACH 65 This value estimate from the Cost Approach does not change due to the rent restrictions placed on the units at the proposed subject property in order to allow the developer to qualify for affordable housing incentives. This is due to the nature of the methodology of this approach, which applies the contributory value of the improvements, added to the value of the land. This methodology does not employ consideration of the income stream to the property which reflect the restricted rents. Instead, this approach to value presents a pure Market Value benchmark estimate for analysis. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3307 SALES COMPARISON APPROACH 66 Sales Comparison Approach to Value The Sales Comparison Approach is based upon the principal of substitution; that is, when a property is replaceable in the market, its value tends to be set at the cost to acquire an equally desirable substitute property, assuming no costly delay in making the substitution. The application of this traditional appraisal technique requires a systematic procedure which is outlined as follows: • Research of the market to obtain information about sale transactions, listings and other offerings of properties similar to the subject. • Verification of the factual data pertaining to the transaction and determining if the transactions represent an "arm's length" sale. • Conclude relative units of comparison recognized by the market and develop a comparative analysis for each unit. • Contrast the subject property and the sale transactions based upon elements of comparison. • Reconcile the multiple value indicators into a single indication of market value. The validity of this approach is very much dependent on the availability or quantity of the data and the relevance or quality of the data. The market data serve as a basis for making comparative sales analyses in order to make a reasonable estimate of the value of the property being appraised. In order to make an estimate of Market Value, it is imperative to use a unit of comparison that is commonly accepted by those buyers and sellers who are actively engaged in trading particular types of real estate. In this instance, we have chosen the Sale Price per Unit indicator as the appropriate unit of comparison. It is important to recognize the quality of information and its applicability in deriving the proper indicators for the Sales Comparison Approach. The preliminary sales search included all of Monroe County, which did not return any multifamily affordable housing transactions in the past two years. Sales of affordable housing properties in general are limited; therefore, the search parameters were expanded to include comparable markets throughout the state. An ample number of market rate sales were found within the South Florida Region. Four recent sales of LIHTC apartment projects have been examined for the purposes of this analysis. The selected sales are considered to provide a sufficient basis for comparison and valuation of the subject property via the direct sales comparison approach to value. Comparable Improved Sales Summary Tables and Location Maps are located on the following pages. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3308 0) 0 M M a'. (.D >. a 0 "T rd i as 2w1 • C, M 77 C, u-a � r.� s p w tco 0) j / as [p Q � CQ s Cv g CQ c) " ' Kt CL 97 j (m} 4:� r (") co � N > C� ITS GS7 ED CN "? Fwi jsal T 5 U-) % ) d C1 S w � f!J } CCUCN 4 ee U E E U t 469 31 uj Q _ CD � C,.7 .Q fJJ 1, L j. fJ7 c'a t�rl USS M Cj c-vJ C� c, CL CD E _ c� E 0 CL M � oC) � (Dr L) Q.Q ffJ co t5 „ N f 7 rq 5 u fJ l � U w ID C6,w cw � sD Rf Sri caa Q (Oj UD OD co Nr ffJuj r C14 CD U SI r' `4 0 f s (D fJJ 1,J UJ H (G CN CN UD .N 0 LL CD 0) sU cU 0 (D � "� CW7 Q) � t_ _ ffJ � C c w CC u 'Q C.} f l ff7 gram- � < cU f ff7 LL d 0 CL CL 0 .cW ns s 0 � IF, u SALES COMPARISON APPROACH 68 Comparable LIHTC Sales Location Map m *i'u 1 1 I10 f ��v uJf rvf H P i Va.VD1UEll 1 f �r a,nfl x�� rA¢ViI� .. / I„ i uTf21��VP�/fl i oo s � r f kcibpr rM wi i1i I' y DugifV Y 4YV'k fay'f,,� o �flutlx7Qid dl�u iiiiiiiiiiirvii V viiiiiiiiiiiiiii Ji,„ ��ol PrhV 01�1 of✓uf,,� i �. a""A"' V a�iirr�f s�kg�.frfy "Y4 yr iiiiiiiiiiii�iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii� i T a r ' Fl ;a fine, WALTER D,UiKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3310 SALES COMPARISON APPROACH 69 Analysis of Sales Each of the comparable sales represents an income and rent restricted apartment property located in a comparable market throughout Florida. The sales comparison analysis is best applied to properties which feature a great deal of homogeneity, such as residential homes. In such an analysis, pairing together of two recently sold properties with many similarities can produce quantifiable trends in value based on a few dissimilar attributes. However, for more complex commercial properties such as office buildings, retail shopping centers and large multifamily apartment projects, this comparative analysis becomes quite difficult due to the larger variations in physical attributes and amenities between most properties. Such is also the case for large-scale apartment projects since these properties can vary in unit sizes, project amenities, density, location and many other factors. Direct comparison between the comparables and the subject property was made using the following factors which may affect value: property rights conveyed, financing terms, conditions of sale, market conditions (time), location, age/class/condition, unit mix, project amenities and economic characteristics. Property Rights Conveyed Each of the properties used in this analysis sold as a leased fee interest. Upon completion and stabilization, the subject will also reflect a leasehold interest, but as stated earlier, the leased fee and leasehold interest are considered similar. Therefore, no adjustments are warranted. Conditions of Sale and Financing Terms Each sale was considered an arm's length transaction, and the properties sold with terms which involved cash or financing which was judged to be cash-equivalent for the market at the time of sale. Therefore, the sales were considered similar with regard to conditions of sale and financing. Market Conditions The comparable sales transferred between November 2022 and October 2023. Market conditions for this property type are considered to be relatively similar throughout this time frame. No adjustments are applied. Location As discussed, comparable LIHTC sales were found throughout the state, and as such, the general market areas are considered to possess different Iocational characteristics. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3311 SALES COMPARISON APPROACH 70 Age/Class/Condition The subject property is proposed and therefore will be in new condition upon completion. All five sales represent older construction, inferior conditions and inferior garden-style building designs. Upward adjustments were applied to each sale accordingly. Unit Mix Given that LIHTC rent restrictions are based on the number of bedrooms in a unit, the particular unit mix of a property has a significant effect on the overall rental income a LIHTC property can generate. The subject includes one-, two-, and three bedroom floor plans. Project Amenities All five sales benefit from superior amenity packages including swimming pools. Set Asides The subject and all of the comparables reflected rent restricted units and are considered similar. However, the subject's county-dictated rates are much higher than the comparables due to a higher median AMI. As each of the comparables are rent restricted, physical factors do not directly impact achievable income. Therefore, in the following table, the subject and each of the comparables is compared on a NOI per unit basis. Comparable Sales NOI/Unit Comparison Sale 1 Sale 2 Sale 3 Sale 4 NOI/Unit $6,176 $6,023 $6,474 $7,308 Subject NOI/Unit $20,924 $20,924 $20,924 $20,924 % Difference 238.8% 247.4% 223.2% 186.3% Sale Price/Unit 1 $150,6251 $150,579 $143,868 $176,667 Adjusted Value $510,318 $523,112 $464,981 $505,797 As indicated, the adjustments range from 186% to 247%. Heavy adjustments at this level indicate that either this method is not appropriate or relevant, or the data is not relevant to this analysis. The differences between the subject and these comparables is mainly due to size, as well as the achievable restricted rent. Therefore, this approach is not considered relevant to this analysis and will not be considered in the final reconciliation of value. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3312 INCOME CAPITALIZATION APPROACH 71 Income Capitalization Approach Investment properties are normally valued in proportion to their ability to produce income. Therefore, analysis of the property in terms of its ability to provide a sufficient net annual return on investment capital is an important means of valuing any real estate asset. An investor's total expected return includes full recovery of the amount invested, the "return of capital," and a profit, the "return on capital." Rates of return can be categorized as either income rates or yield rates. An income rate is the ratio of one year's income to value; it may be used as a capitalization rate to convert income into value. A yield rate is applied to a series of individual incomes to obtain the present value of each. Overall capitalization and equity capitalization rates are income rates. They are not rates of return on capital and do not reflect the eventual equity yield rate. An overall capitalization rate is an income rate for a total property that reflects the relationship between its annual net income expectancy and total property value; it is used to convert net operating income into an indication of overall property value. The capitalization rate selected for valuation may be an income rate or yield rate, but it should represent the annual rate of return necessary to attract investment capital. Because rates of return are prospective, market perceptions of risk and changes in purchasing power due to inflation or deflation are important considerations. The capitalization rates chosen should simulate market expectations. A conversion of income considers competitive returns offered by alternative investment opportunities. The Income Approach, when properly applied, is generally considered the most accurate indicator of value for income-producing properties. The subject represents a typical income-producing property. In order to best reflect the methodologies and techniques used by market participants. A direct capitalization analysis was utilized to derive a value via the Income Approach to Value. Contract Rent The subject property is a proposed 28-unit garden multifamily development. Upon completion, the project will contain a mix of one-, two-, and three-bedroom apartment units within eleven 2-story residential buildings. All of the subject's 28 units will be income and rent restricted at either 80% or 100% of the county AM I. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3313 INCOME CAPITALIZATION APPROACH 72 The chart below reflects the following for each subject unit type: Rent Calculations and Developer's Projected Rents Avg No. of Unit Monthly Monthly Annual Type Units Size Rent Income Income 1-Bedroom/1-Bathroom 12 651 $1,736 $20,832 $249,984 2-Bedroom/2.5-Bathroom 2 1,140 $1,954 $3,908 $46,896 2-Bedroom/2.5-Bathroom 10 1,140 $2,443 $24,430 $293,160 3-Bedroom/2.5-Bathroom 4 1,260 $2,713 $10,852 $130,224 Total 28 $720,264 These rental rates are set by Monroe County and are the maximum rents permitted for each unit type for 2023. These rental rates will be used for the following analysis. Stabilized Vacancy and Collection Allowance Physical Vacancy Physical vacancy at affordable housing projects throughout all of the South Florida market typically represents only the time to turn the units over, and unit turnover is significantly less than typical market-rate communities. These low vacancy levels are a result of the lower restricted rental rates, which provide for significant demand for lower- income households seeking attractive housing. The subject, upon completion, will represent a newly constructed, quality rental apartment project in an area with high demand and limited inventory of affordable housing. Therefore, it is assumed the community's rent restricted units will typically operate near full occupancy, with physical vacancy attributed primarily to tenant turnover. Therefore, with consideration given to the specific attributes of the subject, including its new construction and design, the subject's stabilized physical vacancy rate for its 28 affordable units is estimated to be 1.0% over a long-term investment period. Rental Concessions/Specials Workforce and affordable housing properties do not typically offer concessions or specials. This is considered reasonable given the high occupancy and strong demand for affordable and workforce rental apartment units in the market. Additionally, no concessions are projected by the developer. WALTER ' CI E +PARTNERS, COMMERCIAL REAL ESTATE VALUATION 3314 INCOME CAPITALIZATION APPROACH 73 Collection Allowance The appraisers have examined operating statements of numerous apartment projects in the region. Rent loss due to collection allowance and miscellaneous losses generally ranges between 0.5% and 2.0% of potential gross rental income. Typically, rent restricted apartment communities have a lower collection risk than market rent properties since the in-place rental rates are tied directly to a tenant's income and ability to pay. Therefore, a projection of 1.0% is considered reasonable for the subject's affordable units. Non-Revenue Units Regarding rent loss due to non-revenue units, rental complexes may keep units off-line to show as models or to rent to property employees at discounted rates as part of the compensation package. Affordable housing projects typically do not keep any units offline given the strong demand and limited inventory of affordable rent restricted units in the market, nor do small to medium sized apartment projects. None are assumed to be offline. Therefore, the overall stabilized vacancy and collection allowance, over an investor's long-term holding period, is estimated to be 2.00% if the units are leased as planned as a rent-restricted community. This percentage is built-up as follows: Stabilized Vacancy and Collection Allowance Summary Restricted Physical Vacancy 1.00% Concessions 0.00% Collection Loss 1.00% Non-Revenue Units 0.00% Total 2.00% Potential and Effective Gross Rental Income Estimate Based on the previous analysis of the various sources of income which the subject should generate, including apartment rents and miscellaneous income (less a stabilized vacancy and collection allowance), the projected stabilized potential gross rental income estimates for the subject property are set forth in the following charts. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3315 INCOME CAPITALIZATION APPROACH 74 Potential and Effective Gross Income Potential Income from Rental Units Avg No.of Unit Monthly Monthly Annual Type Units Size Rent Income Income 1-Bedroom/1-Bathroom 12 651 $1,736 $20,832 $249,984 2-Bedroom/2.5-Bathroom 2 1,140 $1,954 $3,908 $46,896 2-Bedroom/2.5-Bathroom 10 1,140 $2,443 $24,430 $293,160 3-Bedroom/2.5-Bathroom 4 1,260 $2,713 $10,852 $130,224 Total 28 $720,264 Potential Gross Rental Income(PGI) $720,264 Less: Collection&Vacancy Loss 2.00% of PGI ($14,405) Total Income from Other/Miscellaneous Sources $0 Effective Gross Income $705,859 Operating Expenses The following analysis provides projections of the operating expenses the subject property can reasonably be expected to incur during the first year of the projection period. Fixed expenses, primarily property tax and insurance payments, are operating expenses that generally do not vary with occupancy levels and have to be paid whether the property is occupied or vacant. Variable costs are operating expenses that generally vary with the level of occupancy or the intensity of operation and may include maintenance, utilities, management fees, administration and payroll expenses. A summary breakdown of the estimated outgoings for the subject was provided by the developer and is considered in this estimate. However, actual expenses incurred at comparable LIHTC apartment projects were obtained to test the reasonableness of these projected costs for the subject during that period. Emphasis was placed upon newer communities similar to the subject design. The identity of the expense comparables has been kept confidential due to their proprietary nature. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3316 INCOME CAPITALIZATION APPROACH 75 Operating Expense Comparables Comparable Number 1 2 3 4 5 6 Building Type Mid-Rise Low-Rise High-Rise Mid-Rise High-Rise Mid-Rise No.of Units 100 56 466 400 195 149 Project Type LIHTC LIHTC Mkt/LIHTC Mkt/LIHTC Mkt/LIHTC WF/LIHTC Year Built 1990 2008 Proposed Proposed Proposed Proposed Expense Year 2023 Budget Budget Budget Budget Budget 2023 May-22 Apr-22 Feb-22 Dec-21 Expense Expense Expense Expense Expense Expense EXPENSES /Unit /Unit /Unit /Unit /Unit /Unit Fixed Expenses R.E.Taxes $0 $0 $2,650 $0 $2,375 $975 Insurance $889 $1,399 $1,200 $750 $850 $900 Total Fixed Expenses $889 $1,399 $3,850 $750 $3,225 $1,875 Administrative Costs Management $816 $446 $963 $512 $682 $617 Payroll $1,911 $898 $1,400 $1,100 $1,400 $950 Marketing $0 $0 $500 $100 $500 $100 Administrative $549 $1,284 $350 $250 $350 $600 Total Administrative Costs $3,276 $2,628 $3,213 $1,962 $2,932 $2,267 Maintenance Costs Utilities $1,114 $1,234 $900 $600 $400 $450 Maintenance $3,537 $2,105 $900 $700 $850 $1,225 Total Maintenance Costs $4,651 $3,339 $1,800 $1,300 $1,250 $1,675 Replacement Reserves $0 $200 $300 $300 $300 $300 TOTAL EXPENSES $8,816 $7,566 $9,163 $4,312 $7,707 $6,117 Real Estate Taxes Real estate assessments can vary widely between rent restricted properties as a result of the differing rent limits, set-asides and tax exemptions, and associated market values. In the case of the subject, after the transaction is finalized, the subject property will be owned by the county, and therefore, be completed tax exempt. No real estate taxes are expected to be incurred. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3317 INCOME CAPITALIZATION APPROACH 76 Insurance Hazard insurance premium includes, as a minimum, fire, extended coverage and owner's general liability. Some policies will also include loss of rent, special plate glass and elevator riders. Flood insurance is also included in this category. No expense was advised for this category as the developer's insurance quotes were still pending at the time of valuation. Therefore, the expense comparables are consulted. Insurance rates have been rapidly increasing over the past few years. The most current indication of insurance on the expense comparables table is Comp 2 which reported a 2023 expected expense of$1,300 per unit. This figure will be used for the subject property. Property Management An off-site management fee is required for the subject property type and is applicable whether management services are contracted or provided by an owner. The expense of management is typically expressed as a percentage of effective gross income and ranges from 2.5% to 5.0%, depending on the type, size and complexity of the project as well as its age and condition. This expense does not include salaries and benefits for on-site management personnel, but instead is the compensation to the management company for overseeing the project. Competition for management contracts has been historically fierce in this market, thus keeping management fees at relatively low levels. In addition, rapidly rising rents over the past several years have placed pressure on management companies to lower their fees, which are based on a percentage of the income generated by these properties. For the small size of the property, an expense of 3% is estimated. This falls in line on a per-unit basis with the expense comparables. Payroll In addition to salaries and wages, this expense category includes the costs relating to payroll taxes and benefits, such as medical, life and disability insurance paid by the employer. Due to the subject's small size, the developer did not include a payroll expense on the proforma. Any payroll expenses is expected to be minimal for the subject, and is included in the management expense. Marketing This expense category includes advertising, marketing and other miscellaneous leasing expenses. Higher marketing costs are typically required at market rate communities due to significantly more competition and an ample supply of units in the market, compared to affordable housing projects which typically remain fully leased with waiting lists. The WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3318 INCOME CAPITALIZATION APPROACH 77 developer's did not include any marketing expense. Therefore, emphasis is given to the comparables and a marketing expense of$100 per unit is estimated. General Administrative General administrative and miscellaneous costs at the subject can include bookkeeping fees, legal fees, office expenses, miscellaneous administrative costs, licenses, fees, etc. The developer's budgeted administrative expense of $400 per unit is in line with the comparables. Therefore, weighing the comparables and the developers projection, an administrative expense of$400 per unit is estimated for purposes of this analysis. Utilities Utilities at the subject include electricity, water/sewer, and trash. As discussed, the subject units are separately metered for electric, and residents pay their individual costs. The owner remains responsible for electric costs necessary to operate common areas and vacant units, as well water/sewer for the entire community. The wide-ranging utility costs of the comparables are reflective of their specific utility structures, with the higher costs representing properties in which all utilities are including in the rent, and the lower costs representing properties in which tenants pay both electric and water/sewer. As noted, the subject will operate with tenants paying their own electric, while water/sewer will be included in the rent and paid for by the owner. Therefore, the developer's budgeted utility expense of $1,000 per unit falls within the range of comparables, and a similar utility expense of $1,000 per unit is estimated for purposes of this analysis. Maintenance Expenses These charges handle the costs to repair and maintain the subject's improvements over the long term. In rental apartment projects, many services are also performed and expended on an annual contract basis as "Contract Services." Typically, these include grounds maintenance, pool service, fire safety, pest control, security and elevator maintenance, which are include in the expense comparables. The comparables and subject developer's budget include contract services within this expense category, however a breakout of individual costs was not made available. The developer's budgeted maintenance expense of $900 per unit is well supported by the comparables, falling toward the lower end of the range. Therefore, a similar maintenance expense of$1,000 per unit is estimated for purposes of this analysis. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3319 INCOME CAPITALIZATION APPROACH 78 Reserves for Replacements This expense item is an allowance in the annual operating statement to provide for the periodic replacement of building components that tend to wear out more rapidly than the building itself. These items must be replaced periodically during the building's economic life in order to adequately sustain a projected level of income. The annual allowance for such items equates to the estimated replacement cost prorated over the anticipated economic life of the item. Typically, $250 to $350 per unit is an acceptable amount in this market and is adequate for investment in a sinking fund to provide periodic replacement of short-lived items in an apartment property. This is illustrated by several sales of rental complexes in this market during the past several years, in which reserves were typically allocated in this range. The developer did not include an expense for reserves. Therefore, an estimate of$300 per unit is utilized for purposes of this analysis. Operating Expense Conclusion Total stabilized expenses for the subject property are projected to be $4,285 per unit including reserves, assuming the planned operation as a rent restricted apartment community. The subject expense projections under the planned rent-restricted operation fall toward the bottom of the expense comparables, and are considered reasonable due to the small size of the subject. Net Operating Income (NOI) Total expenses were deducted from the projected effective gross income revealing the projected net operating income. A complete Schedule of Stabilized Income and Expenses can be found on the following pages. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3320 INCOME CAPITALIZATION APPROACH 79 Stabilized Income and Expenses Potential Gross Income from Rentals $720,264 Less: Vacancy and Collection Loss 14 405 Effective Rental Income $705,859 Add: Other/Miscellaneous Income $00 Effective Gross Income (EGI) $705,859 Less: Expenses % Per Fixed Expenses EGI Annual Unit Totals Real Estate Taxes $0 $0 Insurance $36,400 $1,300 Total Fixed Expenses 5.2% $1,300 $36,400 Variable Expenses Management Fees 3.0% $21,176 $756 Payroll $0 $0 Marketing $2,800 $100 Administrative $11,200 $400 Utilities $28,000 $1,000 Maintenance $12,000 $1,000 Total Variable Expenses 10.7% $2,685 $75,176 Total Operating Expenses 15.8% $3,985 $111,576 Reserves for Replacement 1.2% $8,400 $300 $8,400 Total Expenses 17.0% $4,285 $119,976 NET OPERATING INCOME 83.0% $20,924 $585,883 Selection of Overall Capitalization Rate Market Comparison Generally, the best indication of an overall capitalization rate is derivation from comparable sales. The overall rates of capitalization derived from such sales are typically influenced by the status of leasing and occupancy, existing rent levels and upside potential, protection against increasing expenses, the age and condition of the improvements, the long-term economic outlook and competitive position of the property. In addition, financing considerations, the relationship and needs of the parties involved, tax considerations and a host of other non-market factors frequently influence actual sales. As a result of these factors, a range of capitalization rates was reflected by the WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3321 INCOME CAPITALIZATION APPROACH 80 sales utilized in the Sales Comparison Approach section of this report. These rates are summarized below: Overall Rates from Comparable Sales Sale No. Sale Date OAR 1 Oct-23 4.10% 2 Sep-23 4.00% 3 Sep-23 4.50% 4 Nov-22 4.14% Low 4.00% High 4.50% Average 4.18% Median 4.12% Market Participant Interviews Although the subject is not rent restricted like a Low Income Housing Tax Credit property, for purposes of this valuation analysis, Walter Duke + Partners interviewed several brokers active in the brokerage of Florida tax credit assets as well as affordable properties throughout the United States. It is their opinion that LIHTC cap rates are expected to be between 4.00% and 5.00% based on the following key points: • Sub 5% cap rates for tax-credit properties are underway due to recent expected rent growth. • Out-of-State buyers are paying a premium to buy into the Florida Market due to the new 100% tax exemption for Year 15, the cost of money and buyers chasing yield in the current low-yield environment. • The pool of potential purchasers for the subject asset type has deepened since the yield compression. • They have yet to see closed sales since LIHTC buyers appear to be buying the interest of the general partners. • A gradual shift in capitalization and yield rates is inevitable as buyers and sellers establish a new equilibrium in the current higher interest rate environment. • This information is taken into consideration, but it is not exactly relative to the subject's situation. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3322 INCOME CAPITALIZATION APPROACH 81 Reconciliation of Overall Capitalization Rate • The LI HTC sales presented provide a range of recent overall rates for typical rental apartment investments in South Florida from 4.00% to 4.50%. • Market participant Interviews are given some weight. • Interest rates are currently high. • Insurance rates are currently high. • The subject reflects a leasehold interest which would indicate a slightly higher cap rate. • The subject is tax exempt which eliminates property tax increase risk Based on the foregoing market derived information, an appropriate capitalization rate for the subject property, subject to the income and rent restrictions in place, is estimated to be 5.00%. Direct Capitalization of Net Operating Income Direct Capitalization is a method used to convert an estimate of a single year's anticipated net operating income into an indication of value in one step. Based upon generally accepted real estate appraisal practice, this is accomplished by dividing the estimated net operating income by the appropriate, market-oriented overall capitalization rate (OAR). The calculations of the estimate of Stabilized Market Value via direct capitalization in the Income Approach to Value are as follows: Stabilized Market Value via Income Approach — Restricted Net Operating Income (NOI) $585,883 Divided by: Overall Capitalization Rate 5.00% Stabilized Market Value Indicator $11,717,659 via Income Approach Rounded $11,720,000 COMMERCIAL REAL ESTATE VALUATION 3323 RECONCILIATION 82 Reconciliation and Final Market Value Estimates Market Value "As If Complete and Stabilized" Three approaches to value were considered in valuing the subject property in this scenario. One was considered to not be applicable in this scenario. The other two formed the following range of indicated values: Reconciliation of Value Indicators Approach to Value Value Indicator Cost Approach $10,540,000 Sales Comparison Approach N/A Income Capitalization Approach $11,720,000 In the Cost Approach to Value, a preliminary indication of value is obtained by adding the estimate of the land value, as vacant, to the estimated reproduction cost of the subject improvements, less accrued depreciation. To estimate the value of the land, comparable sales of similar sites were selected and analyzed. To estimate the reproduction cost new, the appraisers utilized projected cost figures from the developer, Marshall Valuation Service and actual construction costs of comparable rental apartment projects. Depreciation analysis was not undertaken as the subject improvements are proposed and will be in new condition. This approach is considered relevant as a purchaser would likely consider the costs to build new. In the Sales Comparison Approach to Value, comparable sales were selected and analyzed. The appraisers' analysis entails a comparison of the subject property with others of similar design, utility and use which have recently sold. Comparison of these recent sales to the subject property was undertaken concerning factors which may affect value. The majority of rent restricted properties that have traded in the recent past reflect low-income affordable housing, whereas the subject is considered workforce housing and is able to achieve more revenue in comparison. In this regard, the recent sales were not considered comparable enough to produce an accurate indication of value. This approach was not considered applicable. In the Income Approach to Value, actual rental rates were employed to estimate the projected income. Expenses were market oriented and support was given by analyzing actual expenses of similar restricted rental apartment properties in the region. Net income before recapture was capitalized via direct capitalization since the property is valued assuming stabilized operations. The overall rate was extracted from the market, WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3324 RECONCILIATION 83 based on recent comparable sales, market participant interviews, investor surveys, and specific property factors. The Income Approach is considered to best reflect the methodologies and analyses that a typical purchaser would employ in undertaking a purchase of an income-producing property such as the proposed subject. Therefore, it has particular applicability and is given primary reliance in estimating the subject's value. The cost approach is given supporting weight. Based on the preceding information and the analysis set forth herein, it is apparent that the quantity and quality of data analyzed were sufficient to make reasonably accurate estimates of Market Value, as follows: The Hypothetical Market Value "As if Complete and Stabilized" of the leasehold interest in the subject property, subject to the income and rent restrictions in place, as of February 10, 2024, is estimated to be: VALUE CONCLUSION Interest Date of Value Appraisal Premise Appraised Value Conclusion Hypothetical Market Value"As If Complete&Stabilized" Leasehold February 10,2024 $11,500,000 COMMERCIAL REAL ESTATE VALUATION 3325 ADDENDA ADDENDA WALTER D�l. KE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3326 ADDENDA ASSUMPTIONS, CONTINGENT & LIMITING CONDITIONS WALTER DUKE PARTNERS COMMERCIAL REAL ESTATE VALUATION 3327 ADDENDA Basic Assumptions, Contingent and Limiting Conditions 1. This appraisal report is made expressly subject to the following assumptions and limiting conditions and any special limiting conditions contained in the report which are incorporated herein by reference. 2. This appraisal represents the best opinion of the appraiser(s) as to Market Value of the property as of the appraisal date. The term"Market Value" is defined in the appraisal report. 3. The legal description furnished is assumed to be correct. The appraiser(s) assumes no responsibility for matters legal in character, nor does he/she render any opinion as to the title, which is assumed to be good. All existing liens and encumbrances, if any, have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management. 4. Any sketch in this report is included to assist the reader in visualizing the property. The appraiser(s) has made no survey of the property and assumes no responsibility in connection with such matters. 5. The appraiser(s) believes to be reliable the information, which was furnished by others, but he/she assumes no responsibility for its accuracy. 6. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client, without the previous written consent of the appraiser(s) or the client, and then, only with proper qualification. 7. The appraiser(s) is not required to give testimony in deposition or in court, or give testimony at a governmental hearing by reason of this appraisal with reference to the property in question, unless arrangements have been previously made with the approval of the appraiser(s). Said arrangements must be prior to 30 days of the anticipated date. Further, the appraiser(s) reserves the right to consider and evaluate additional data that becomes available between the date of this report and the date of trial, if applicable, and to make any adjustments to the value opinions that may be required. 8. No testimony will be rendered unless the entire appraisal fee has been paid. Further, all testimony will be subject to expert witness fees previously approved by the appraiser(s). 9. The distribution of the total value of this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 10. The land, and particularly the soil, of the area under appraisement appear firm and solid. Subsidence in the area is unknown or uncommon, but this appraiser(s) does not warrant against this condition or occurrence. Subsurface rights (mineral and oils)were not considered in making this appraisal. 11. The appraiser(s) carefully inspected the buildings involved in this appraisal report and damage, if any, by termites, dry rot, wet rot, or other infestations, was reported as a matter of information by the appraiser(s), but he/she does not guarantee the amount or degree of damage, if any. 12. All furnishings and equipment, except those specifically indicated and typically considered as a part of real estate, have been disregarded by the appraiser(s). Only the real estate has been considered. 13. The comparable sales data relied upon in this appraisal is believed to be from reliable sources; however, it was not possible to inspect the interiors of all of the comparable, and it was necessary to rely on information furnished by others as to physical and economic data. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3328 ADDENDA 14. The appraiser(s) has inspected, as far as possible, the land and the improvements thereon; however, it was not possible to personally observe conditions beneath the soil or hidden structural components within the improvements; therefore, no representations are made herein as to these matters and, unless specifically considered in the report, the value estimate is subject to any such conditions that could cause loss in value. Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements, unless otherwise stated. 15. Disclosure of the contents of this appraisal report is governed by the Bylaws and Regulations of the Appraisal Institute. 16. Unless otherwise stated in the report, the existence of hazardous substances including, without limitation, asbestos, radon gas, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of the appraiser(s), nor did the appraiser(s) become aware of such during the appraiser's inspection. The appraiser(s) has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser(s), however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. 17. The appraisal is as of the date specified and covers the legally described property only. The current purchasing power of the U.S. Dollar is the basis for the value reported. The appraiser(s) assumes no responsibility for economic or physical factors occurring at some later date, which may affect the opinions herein stated. 18. This appraisal is presented as a complete, bound report, and may be considered valid only so long as it is presented in its entirety. Further, all pages listed in the Table of Contents must be present and the appraiser's signature accompanied by the raised seal. 19. Neither all, nor any part of the content of the report, or copy thereof, [including conclusions as to the property value, the identity of the appraiser(s), or the firm with which the appraiser(s) is connected], shall be used for any purposes by anyone but the client specified in the report, the mortgagee or its successors and assigns, mortgage insurer, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency or instrumentality of the United States or any State, or the District of Columbia, without the previous written consent of the appraiser(s); nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales or other media, without the written consent and approval of the appraiser(s). 20. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser(s) has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser(s) has no direct evidence relating to this issue, the appraiser(s) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. The appraiser(s) recommends that the entities affected by the Act conduct an "ADA Audit" of the facilities. The ADA Audit should be performed by competent legal professionals who are familiar with the detail and specificity of the Act, in conjunction with architects and engineers versed in its technical requirements. The cost to cure any non-compliant item(s) may serve to reduce the value estimate contained in this report and the WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3329 ADDENDA appraiser(s) assumes no responsibility for any such condition, nor for any expertise or engineering knowledge required to discover them. 21. Any projected cash flows included in the analysis are forecasts of estimated future operating characteristics and are predicated on the information and assumptions contained within this report. Any projections of income, expenses and economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of market expectations of future income and expenses. The achievement of any financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary from the projections considered herein. There is no warranty or assurances that these forecasts will occur. Projections may be affected by circumstances beyond anyone's knowledge or control. Any income and expense estimates contained in this report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 22. The analyses contained in this report may necessarily incorporate numerous estimates and assumptions regarding Property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by the analysis will vary from estimates, and the variations may be material. 23. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraphs, several events may occur that could substantially alter the outcome of the estimates such as, but not limited to changes in the economy, interest rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. In making prospective estimates and forecasts, it is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 24. Acceptance of delivery or the payment for this report constitutes acceptance of this condition and all other contingent conditions set forth herein. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3330 ADDENDA DEFINITIONS WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3331 ADDENDA APPRAISAL DEFINITIONS Absolute net (bond) lease. A lease in which the tenant is responsible for payment of all expenses including but not limited to real estate taxes, insurance, maintenance, utilities, janitorial and structural repairs. The intent of this lease type is that the landlord absorbs no expenses relating to the operation or repair of the leased space. Aggregate of retail values (ARV). The sum of the appraised values of the individual units in a subdivision, as if all of the units were completed and available for retail sale, as of the date of the appraisal. The sum of the retail sales includes an allowance for lot premiums, if applicable, but excludes all allowances for carrying costs. Appraisal. (Noun) The act or process of developing an opinion of value. (Adjective) Of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Client. The party or parties who engages an appraiser (by employment or contract) in a specific assignment. Discounted cash flow (DCF) analysis. The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams as well as the quantity and timing of the reversion and discounts each to its present value at a specified yield rate. DCF analysis can be applied with any yield capitalization technique and may be performed on either a lease-by-lease or aggregate basis. Effective rent. The rental rate net of financial concessions such as periods of no rent during the lease term; may be calculated on a discounted basis, reflecting the time value of money, or on a simple, straight-line basis. 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. An extraordinary assumption may be used in an assignment only if: ■ It is required to properly develop credible opinions and conclusions; ■ The appraiser has a reasonable basis for the extraordinary assumption; ■ Use of the extraordinary assumption results in a credible analysis; and ■ The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. 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. Floor area ratio (FAR). The relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. See also land-to-building ratio. Full service lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real estate taxes, insurance, maintenance, all utilities and janitorial. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3332 ADDENDA Going-concern value. 1. The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; also called value of the going concern. 2. Tangible and intangible elements of value in a business enterprise resulting from factors such as having a trained work force, an operational plant, and the necessary licenses, systems, and procedures in place. 3. The value of an operating business enterprise. Goodwill may be separately measured but is an integral component of going-concern value. Gross lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real estate taxes, insurance, and maintenance, but not tenant utilities and janitorial. Highest and best use. The reasonably probable and legal use of vacant land or an improved property, which 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 profitability. 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 about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: ■ Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; ■ Use of the hypothetical condition results in a credible analysis; and ■ The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. Industrial gross lease. A lease in which the landlord is responsible for all payment of all expenses pertaining to base year real estate taxes, base year insurance, and maintenance, but not tenant utilities and janitorial. Tenant is responsible for any increases over base year (first lease year) real estate taxes and insurance. Inspection, property inspection. In accordance with generally accepted appraisal standards an inspection is the act of touring or viewing a property. It is a cursory or superficial visual observation of the property which is not intended to be confused with an assessment of a building, structure or mechanical systems performed by a professional engineer or general contractor. Intended use. The use or uses of an appraiser's reported appraisal, consulting, or review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment. Intended user. The client and any other party as identified, by name or type, as users of the appraisal, consulting, or review report, by the appraiser based on communication with the client at the time of the assignment. Investment value. The value of a property interest to a particular investor or class of investors based on the investor's specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3333 ADDENDA Leased fee estate. An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease. Market value. As defined in the Agencies' appraisal regulations, the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best 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 comparable thereto; and 5. the price represents a normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. SOURCE: Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472. Neighborhood shopping center. The smallest type of shopping center, generally with a gross leasable area of less than 100,000 square feet. Typical anchors include supermarkets and pharmacies. Neighborhood shopping centers offer convenience goods and personal services, and usually depend on the market support of more than 1,000 households. Net lease. A lease in which the tenant is responsible for expenses payment of all expenses pertaining to real estate taxes, insurance, maintenance, utilities and janitorial. The landlord is responsible only for expenses relating to structural repairs. Overall capitalization rate (Ro). An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value; used to convert net operating income into an indication of overall property value (Ro = lo/Vo). Personal property. Identifiable portable and tangible objects which are considered by the general public as being "person", e.g. furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate. Prospective value estimate. A forecast of the value expected at a specified future date. A prospective value estimate is most frequently sought in connection with real estate projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long-term occupancy at the time the appraisal report is written. Retrospective value opinion. An opinion of value that is likely to have applied as of a specified historic date. A retrospective value opinion is most frequently sought in connection with appraisals for estate tax, condemnation, inheritance tax, and similar purposes. Scope of work. The type and extent of research and analyses in an assignment. Shell space. Space in which no interior finishing has been installed, including even basic improvements such as ceilings, interior walls and floor coverings. WALTER DIUCKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3334 ADDENDA Use value. 1. In economics, the attribution of value to goods and services based upon their usefulness to those who consume them. 2. In real estate appraisal, the value a specific property has for a specific use; may be the highest and best use of the property or some other use specified as a condition of the appraisal; may be used where legislation has been enacted to preserve farmland, timberland, or other open space land on urban fringes. Vacancy and collection loss. An allowance for reductions in potential income attributable to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. Variable expenses. Operating expenses that generally vary with the level of occupancy or the extent of services provided. Yield capitalization. The capitalization method used to convert future benefits into present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investment's income pattern, value change, and yield rate. Yield rate (Y). A rate of return on capital, usually expressed as a compound annual percentage rate. A yield rate considers all expected property benefits, including the proceeds from sale at the termination of the investment. Yield rates include the interest rate, discount rate, internal rate of return (IRR), overall yield rate (Yo) and equity yield rate (YE). WALTER ' CI E +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3335 ADDENDA DEVELOPER PROJECT DATA WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3336 SOUTH CLIFF ESTATES-28 UNITS PROPOSED ANNUAL RENT SCHEDULE-2023 BUILDING#1 ROGO MAX RENT 23' Unit 1-A 1-BEDROOM 1-BATH LOW $1,736.00 Unit 1-B 1-BEDROOM 1-BATH LOW $1,736.00 Unit 1-C 1-BEDROOM 1-BATH LOW $1,736.00 Unit 1-D 1-BEDROOM 1-BATH LOW $1,736.00 BUILDING#2 Unit 2-A 1-BEDROOM 1-BATH LOW $1,736.00 Unit 2-B 1-BEDROOM 1-BATH LOW $1,736.00 Unit 2-C 1-BEDROOM 1-BATH LOW $1,736.00 Unit 2-D 1-BEDROOM 1-BATH LOW $1,736.00 BUILDING#3 Unit 3-A 1-BEDROOM 1-BATH LOW $1,736.00 Unit 3-B 1-BEDROOM 1-BATH LOW $1,736.00 Unit 3-C 1-BEDROOM 1-BATH LOW $1,736.00 Unit 3-D 1-BEDROOM 1-BATH LOW $1,736.00 BUILDING#4 Unit 4-A 2 BEDROOM 2.5 BATH LOW $1,954.00 Unit 4-B 2 BEDROOM 2.5 BATH LOW $1,954.00 BUILDING#5 Unit 5-A 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 Unit 5-B 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 BUILDING#6 Unit 6-A 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 Unit 6-B 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 BUILDING#7 Unit 7-A 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 Unit 7-B 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 BUILDING#8 Unit 8-A 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 Unit 8-B 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 BUILDING#9 Unit 9- A 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 Unit 9-B 2 BEDROOM 2.5 BATH MEDIAN $2,443.00 BUILDING#10 Unit 10-A 3 BEDROOM 2.5 BATH MEDIAN $2,713.00 Unit 10-B 3 BEDROOM 2.5 BATH MEDIAN $2,713.00 BUILDING#11 Unit 11-A 3 BEDROOM 2.5 BATH MEDIAN $2,713.00 Unit 11-B 3 BEDROOM 2.5 BATH MEDIAN $2,713.00 PROPOSED GROSS INCOME MONTHLY $60,022.00 ANNUAL $720,264.00 3337 ESTIMATE BUILDING A fp 2024129 PREPARATION PLANS $6,000.00 SURVEY $500.00 SURVEY-Stake Out $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Sewer connect $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELL COMPLETE $188,000.00 ROOFING COMPLETE $12,000.00 WINDOWS AND DOORS $16,000.00 EXTERIOR FINISHES Stucco $21,000.00 Paint $10,400.00 Railings $16,000.00 Gutters $2,200.00 MEP HVAC $22,000.00 PLUMBING $40,000.00 ELECTRICAL $36,000.00 INTERIOR FINISHES FRAMING INTERIOR $10,000.00 INSULATION $8,800.00 DRYWALL $18,000.00 DOORS $5,200.00 MILLWORK $5,200.00 CABINETS $16,000.00 COUNTER TOPS $12,800.00 MISC.HARDWARE $2,000.00 PAINTING $8,200.00 CLEANING $1,200.00 FLOORING $15,800.00 SITE FINAL GRADE $1,200.00 STONE YARD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DU M PSTERS $1,500.00 TERMITE-SOIL POISONING $800.00 BLOWER DOOR CERTIFICATE $1,600.00 GREEN BUILDING CERTIFICATE $4,000.00 APPLIANCES $11,800.00 FIRE SUPPRESSION $14,000.00 FIRE ALARM $12,800.00 OPERATIONAL COST INSURANCE $6,500.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $10,000.00 ALLOWANCES $20,000.00 $571,300.00 PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $565,300.00 3338 ESTIMATE BUILDING B fp 2024129 PREPARATION PLANS $6,000.00 SURVEY $500.00 SURVEY-Stake Out $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Sewer connect $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELL COMPLETE $188,000.00 ROOFING COMPLETE $12,000.00 WINDOWS AND DOORS $12,000.00 EXTERIOR FINISHES Stucco $21,000.00 Paint $10,400.00 Railings $4,400.00 Gutters $2,200.00 Fire Rate $4,000.00 MEP HVAC $22,000.00 PLUMBING $40,000.00 ELECTRICAL $36,000.00 INTERIOR FINISHES FRAMING INTERIOR $10,000.00 INSULATION $8,800.00 DRYWALL $18,000.00 DOORS $5,200.00 MILLWORK $5,200.00 CABINETS $8,800.00 COUNTER TOPS $6,800.00 MISC.HARDWARE $4,000.00 PAINTING $8,200.00 CLEANING $1,200.00 FLOORING $15,800.00 SITE FINAL GRADE $1,200.00 STONE YARD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DU M PSTERS $1,500.00 TERMITE-SOIL POISONING $800.00 BLOWER DOOR CERTIFICATE $1,600.00 GREEN BUILDING CERTIFICATE $4,000.00 APPLIANCES $5,900.00 FIRE SUPPRESSION $0.00 FIRE ALARM $0.00 OPERATIONAL COST INSURANCE $6,500.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $10,000.00 ALLOWANCES $20,000.00 PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $509,800.00 $515,800.00 3339 ESTIMATE BUILDING C fp 2024129 PREPARATION PLANS $6,000.00 SURVEY $500.00 SURVEY-Stake Out $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Sewer connect $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELL COMPLETE $188,000.00 ROOFING COMPLETE $12,000.00 WINDOWS AND DOORS $12,000.00 EXTERIOR FINISHES Stucco $21,000.00 Paint $10,400.00 Railings $4,400.00 Gutters $2,200.00 Fire Rate $4,000.00 MEP HVAC $22,000.00 PLUMBING $40,000.00 ELECTRICAL $36,000.00 INTERIOR FINISHES FRAMING INTERIOR $10,000.00 INSULATION $8,800.00 DRYWALL $18,000.00 DOORS $6,200.00 MILLWORK $6,200.00 CABINETS $8,800.00 COUNTER TOPS $6,800.00 MISC.HARDWARE $4,000.00 PAINTING $8,200.00 CLEANING $1,200.00 FLOORING $15,800.00 SITE FINAL GRADE $1,200.00 STONE YARD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DU M PSTERS $1,500.00 TERMITE-SOIL POISONING $800.00 BLOWER DOOR CERTIFICATE $1,600.00 GREEN BUILDING CERTIFICATE $4,000.00 APPLIANCES $5,900.00 FIRE SUPPRESSION $0.00 FIRE ALARM $0.00 OPERATIONAL COST INSURANCE $6,500.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $10,000.00 ALLOWANCES $20,000.00 PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $511,800.00 $517,800.00 3340 ESTIMATE OFFICE BUILDING fp 2024129 PREPARATION PLANS $3,500.00 SURVEY $500.00 SURVEY-Stake Out $500.00 SURVEY-Foundation $500.00 Survey-Elevation Certificates $700.00 Soil Test/Geotech $300.00 PRE-FOUNDATION SITE WORK Storm Sewer Sanitary Sewer connect $2,000.00 Water Line Connect $2,000.00 Excavation $2,000.00 FOUNDATION&SHELL COMPLETE $68,000.00 ROOFING COMPLETE $8,000.00 WINDOWS AND DOORS $3,600.00 EXTERIOR FINISHES Stucco $6,000.00 Paint $3,200.00 Railings $2,600.00 Gutters $1,600.00 MEP HVAC $4,100.00 PLUMBING $9,000.00 ELECTRICAL $3,800.00 INTERIOR FINISHES FRAMING INTERIOR $0.00 INSULATION $1,600.00 DRYWALL $0.00 DOORS $600.00 MILLWORK $1,200.00 CABINETS $0.00 COUNTER TOPS $0.00 MISC.HARDWARE $500.00 PAINTING $3,200.00 CLEANING $300.00 FLOORING $5,200.00 SITE FINAL GRADE $1,200.00 STONE YARD $1,300.00 PARKING SLAB $0.00 MISC PADS ENTRY WALKS $2,000.00 LANDSCAPE $2,500.00 TRASH/DU M PSTERS $0.00 TERMITE-SOIL POISONING $300.00 BLOWER DOOR CERTIFICATE $400.00 GREEN BUILDING CERTIFICATE $2,200.00 APPLIANCES $0.00 FIRE SUPPRESSION $0.00 FIRE ALARM $0.00 OPERATIONAL COST INSURANCE $2,200.00 CLOSING COSTS $0.00 PROJECT MANAGEMENT $5,000.00 ALLOWANCES $10,000.00 PROFIT&OVERHEAD EXCLUDED FROM THIS EXERCISE TOTAL $158,100.00 $161,600.00 3341 SOUTH CLIFF ESTATES SITE DEVELOPMENT COST ESTIMATE 2024129 PREPARATION/Permits MCU EXPENSES $100,000.00 PERMITS Buildings Waived by BOCC $231,000 Permits Site/GENERAL $15,000.00 CLEARING $1,000.00 BIOLOGICAL Permit $89,000.00 WATER PER UNIT $0.00 Water TAP SDC Fee Waive in progress $83,000 SEWER Tap BUFFER TANK Fee Waive in progress $116,000 ELECTRICAL MAIN Fee to FKAA $6,800.00 PREPARATION COST $211,800.00 DEVELOPMENT COST UTILITIES, ROADWAY, LANDSCAPE ENGINEERING $50,000.00 SURVEYING $14,000.00 CLEARING $45,000.00 Excavation Grading $30,000.00 GRAVEL $130,000.00 SEWER $80,000.00 WATER $130,000.00 FIRE WATER PIPING FIRE SUPPRESSION LINE $22,000.00 FIRE WELL FIRE WELL SYSTEM $32,000.00 ELECTRICAL $150,000.00 ROADWAY $80,000.00 LANDSCAPE PC $55,000.00 FENCE $22,000.00 CARRY COSTS DEVELOPMENT COSTS $1,051,800.00 $1,051,800.00 fp 2024 129 3342 ADDENDA COMPARABLE SALE PROFILES - LAND WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3343 Pending Land Sale No. 1 ii � /rim D,rr r. r w iw"i �YW It 1� k 1 r rr Property Identification Record ID 3710 Property Type Vacant Commercial Property Name Commercial Land Site Address 87462 Old Hwy, Islamorada, Monroe County, Florida 33036 Tax ID 00413320-000000 Sale Data Property Rights Fee Simple Marketing Time 2 Months Verification February 08, 2024; Confirmed by Kate Evans Contract Price $1,375,000 Cash Equivalent $1,375,000 Land Data Zoning RI and HC Topography Level Utilities All Available Shape Irregular Approvals No 3344 Pending Land Sale No. 1 (Cont.) Land Size Information Gross Land Size 0.778 Acres or 33,905 SF Indicators Sale Price/Gross Acre $1,766,554 Sale Price/Gross SF $40.55 Remarks This is the pending sale of a commercial-zoned vacant land site located within the Village of Islamorada. The property is in the middle of Overseas Highway and Old Highway and has visibility and access from both sides. The zoning designation is split between RI, Residential Single Family, and HC,Highway Commercial. Due to the split zoning, it is unknown what exact developments would be approved on this site,but HC permits a wide variety of uses. Affordable housing is one permitted use,which permits up to 15 deed restricted units per acre. The broker advised that the property was under contract at a price "close to" the asking price and he was not aware of any development plans by the buyer. 3345 Land Sale No. 2 i r, Y y l y r o, fG, i ; Property Identification Record ID 3708 Property Type Vacant Commercial Property Name MU Zoned Site Address 1622 Overseas Highway, Marathon, Monroe County, Florida 33050 Tax ID 00102600-000000 Sale Data Grantor 1622 Overseas Highway, LLC Grantee Wharf Marina, Inc. Sale Date October 09, 2023 Deed Book/Page 3246/1146 Property Rights Fee Simple Marketing Time 2 Years Conditions of Sale Arm's Length Verification February 12, 2024; Confirmed by Kate Evans 3346 Land Sale No. 2 (Cont.) Sale Price $6,450,000 Cash Equivalent $6,450,000 Land Data Zoning MU, Mixed Use Topography Mostly level with tapering into water Utilities All Available Shape Rectangular Approvals Yes Land Size Information Gross Land Size 4.753 Acres or 207,057 SF Useable Land Size 3.653 Acres or 159,141 SF , 76.86% Wetlands Land Size 1.100 Acres or 47,916 SF , 23.14% Indicators Sale Price/Gross Acre $1,356,931 Sale Price/Gross SF $31.15 Sale Price/Useable Acre $1,765,491 Sale Price/Useable SF $40.53 Remarks This is the sale of a residential developent site located in Marathon within the Florida Keys. This property is zoned MU, Mixed Use, and was entitled for 8-10 single family homes at the time of sale. The broker advised that this was an arm's length transaction and he was not sure if the buyer ended up moving forward with the original plans or not. Under this zoning, affordable housing is also permitted at a density of 15 DU/AC. 3347 Land Sale No. 3 'IIw <i r a r Property Identification Record ID 3577 Property Type Residential, Multi-family Address 80862 Old Highway, Islamorada,Monroe County, Florida 33036 Location Upper Matecumbe Key Tax 1D 00096280-000000 Sale Data Grantor Comcast Grantee Mau Robert and Kathy Trustee Sale Date September 16, 2022 Deed Book/Page 3194/1267 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification March 14, 2023; Other sources: CoStar, Confirmed by Andrew Rolf Sale Price $700,000 Cash Equivalent $700,000 3348 Land Sale No. 3 (Cont.) Land Data Zoning MF, Multi-Family Topography Level Utilities All available Shape Rectangular User 5 Yes Concurrency Yes Approvals No Land Size Information Gross Land Size 0.776 Acres or 33,815 SF Indicators Sale Price/Gross Acre $901,730 Sale Price/Gross SF $20.70 Remarks This is the sale of a MF zoned site, located on Upper Matecumbe Key of Islamorada, Florida. The property was brought to market earlier in 2022 at a listing price of$1,082,080. The buyers own the adjacent property and intended to incorporate the site into their property. No entitlements or approvals were in place at the time of sale. 3349 Land Sale No. 4 uu 31 ti a Property Identification Record ID 3579 Property Type Multi-family, Rental Apartment Property Name Seaview Commons II Address 120 & 130 Pescayo Avenue, Marathon, Monroe County, Florida 33050 Location SWC Pescayo Avenue &Coco Plum Drive Tax ID 00363551-000700 Sale Data Grantor Seaview Commons 11 Grantee Coco Vista Community, LTD Sale Date June 30, 2022 Deed Book/Page 3182/2236 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification March 16, 2023; Confirmed by Andrew Rolf Sale Price $4,500,000 Cash Equivalent $4,500,000 Land Data Zoning RH, Residential High Topography Level Utilities All available 3350 Land Sale No. 4 (Cont.) Shape Rectangular User 5 Yes Concurrency Yes Approvals Yes Land Size Information Gross Land Size 2.406 Acres or 104,800 SF Planned Units 60 Indicators Sale Price/Gross Acre $1,870,420 Sale Price/Gross SF $42.94 Sale Price/Planned Unit $75,000 Remarks This is the sale of a vacant development site in Marathon, Monroe County. The site was acquired for the development of Coco Vista, a 109-unit affordable apartment commiunity. The community will span across two adjacent properties: this one with 60 nits and the other with 49 (acquired in a separate transaction). It will be comprised of one-,two-,and three-bedroom units with a clubhouse, fitness center, and recreation area. The project will be overseen by Vestcor, a developer based in Jacksonville that specializes in affordable housing projects. The projected breakdown of units is as follows: 17 units for families at 30%of AMI ($25,320 annual household income), 37 units for families at 60%of AMI($50,640 annual household income), 20 units for families at 70%of AMI($59,080 annual household income), 5 units for families at 80%of AMI ($67,232 annual household income), 30 units at upward of 120%of AMI(up to $100,848). 3351 Land Sale No. 5 T , lid k�I Immb I v o a m , ' V Ym , a � Property Identification Record ID 3580 Property Type Multi-family, Rental Apartment Address 96 Coco Plum Drive, Marathon, Monroe County, Florida 33050 Location NWC Coco Plum Drive &Avenue D Tax ID 00363700-000000 Sale Data Grantor Seaview Commons, LLC Grantee Coco Vista Community, Ltd. Sale Date June 30, 2022 Deed Book/Page 3182/2239 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification March 16, 2023; Confirmed by Andrew Rolf Sale Price $3,675,000 Cash Equivalent $3,675,000 Land Data Zoning RH, Residential High Topography Level Utilities All available 3352 Land Sale No. 5 (Cont.) Shape Rectangular User 5 Yes Concurrency Yes Approvals Yes Land Size Information Gross Land Size 1.688 Acres or 73,519 SF Planned Units 60 Indicators Sale Price/Gross Acre $2,177,437 Sale Price/Gross SF $49.99 Sale Price/Planned Unit $61,250 Remarks This is the sale of a vacant development site in Marathon, Monroe County. The site was acquired for the development of 49 affordable multifamily rental apartment units. 3353 Land Sale No. 6 i wa ,,wtin " u i r C b b N (( � I H &� m IIIIII� 1 II ( u i i Property Identification Record ID 3578 Property Type Residential, Multi-family Address 59720 Overseas Highway, Marathon, Monroe County, Florida 33050 Location Grassy Key Tax ID 00100110-000000, -000200 Sale Data Grantor Jojo's of the Florida Keys, LLC Grantee Grassy Key Ventures, LLC Sale Date June 10, 2022 Deed Book/Page 3178/1707 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification March 14, 2023; Other sources: CoStar, Confirmed by Andrew Rolf Sale Price $2,948,300 Cash Equivalent $2,948,300 Land Data Zoning MU, Mixed-Use 3354 Land Sale No. 6(Cont.) Topography Level Utilities All available Shape Irregular User 5 Yes Concurrency Yes Approvals Yes Land Size Information Gross Land Size 3.800 Acres or 165,528 SF Planned Units 14 Indicators Sale Price/Gross Acre $775,868 Sale Price/Gross SF $17.81 Sale Price/Planned Unit $210,593 Remarks This is the sale of a water-fronting site on Grassy Key of Marathon, Florida. Prior to sale,the sellers successfully took the property through the site plan approval process for the development of 14 single family homes. However,the confirming source reported that workforce housing will likely be built on the site. The site was previously utilized as JoJo's Restaurant and was brought to market with a list price of$3,495,000. 3355 ADDENDA COMPARABLE SALE PROFILES - LIHTC WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3356 Multi-Family Sale No. 1 Jill 411 , H r Property Identification Record ID 1557 Property Type Garden(3 stories or less) Property Name Sorrento - LIHTC Address 8991 S.W.41st Street, Miramar, Broward County, Florida 33025 Location NWC NW 37th Street and FL Turnpike Extension Tax ID 51-41-29-15-0010, 0090 MSA Fort Lauderdale Market Type Suburban Sale Data Grantor ZOM Foxcroft LP Grantee Sorrento FL Acquisition, LLC(Related) Sale Date October 02, 2023 Deed Book/Page 1189139727 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Equivalent Verification Nick Kasper; nmk@zomliving.com, October 30, 2023; Other sources: CoStar, Confirmed by Andrew Rolf Sale Price $48,200,000 Cash Equivalent $48,200,000 Adjusted Price $48,200,000 3357 Multi-Family Sale No. 1 (Cont.) Land Data Land Size 12.640 Acres or 550,598 SF Zoning RM3, Residential Multi-Family Topography Level Utilities All Available Shape Irregular Unit Mix No. of Mo. Unit Type Units Size SF Rent/Mo Rent/SF 1/1 120 651 2/2 164 898 3/2 36 1,187 Total Units 320 Avg.Unit Size 838 Rentable SF 268,124 General Physical Data No. of Buildings 14 Construction Type Concrete Electrical Sub-metered HVAC Central Parking Surface Stories 3 Utilities with Rent Trash Collection Unit Amenities Patios/Balconies, Security System,Microwaves, Washer/Dryer Project Amenities Clubhouse, Exercise/Fitness, Gated, Business Center,Pet Play Area Year Built 2012 Condition Good Income Analysis Potential Gross Income $4,432,156 Vacancy $44,322 Effective Gross Income $4,387,834 Expenses $2,411,634 Net Operating Income $1,976,200 Indicators Sale Price/Rentable SF $179.77 Sale Price/Unit $150,625 Occupancy at Sale 99% PGIM 10.88 EGIM 10.98 3358 Multi-Family Sale No. 1 (Cont.) Expenses/SF $8.99 Rentable Expenses/Unit $7,536 Expenses as %of PGI 54.41% Expenses as %of EGI 54.96% Overall or Cap Rate 4.1% NOUSF $7.37 Rentable NODUnit $6,176 Remarks This is the sale of Sorrento, an LIHTC affordable multifamily community with units set aside at 50% (64 units) and 60% (256 units) of AML According to the confirming source, a full real estate tax exemption that will be available in 4 years. After the initial 15 year LIHTC compliance period,real estate taxes will be 100% abated, so long as the property maintains its affordable status,which the property has due to an extended use agreement with 38 years remaining. As such, the future upside in the asset increased the marketability and the buyer was paying for future increases in NOI that were not captured in the estimated cap rate at sale. 3359 Multi-Family Sale No.2 r r i +�ryIV�IIIIII 1 31111W� Ik(� � J d Property Identification Record ID 1537 Property Type Garden(3 stories or less) Property Name Malibu Gardens (LIHTC) Address 13700 SW 268th Street, Miami, Miami-Dade County,Florida 33032 Tax ID 30-6934-017-0010 Market Type Low-Income Multifamily Sale Data Grantor Landmark Cos. Grantee Lincoln Avenue Communities Sale Date September 26,2023 Deed Book/Page Not yet available Property Rights Leased Fee Conditions of Sale Arm's length Financing Cash equivalent Verification Francisco Rojo (Landmark, seller); francisco@landmarkco.net, September 27,2023; Confirmed by Steve Kuhn 3360 Multi-Family Sale No.2(Cont.) Sale Price $39,000,000 Cash Equivalent $39,000,000 Land Data Land Size 18.271 Acres or 795,885 SF Zoning UC-R Topography Level, street grade Utilities All available Shape Generally rectangular Unit Mix No. of Mo. Unit Tyne Units Size SF Rent/Mo. Rent/SF 1/1 48 630 2/1 104 860 3/2 63 1,070 4/2 44 1,255 Total Units 259 Avg.Unit Size 936 SF 242,310 General Physical Data No. of Buildings 17 Construction Type CBS Electrical Adequate for use,individually HVAC Central Parking Surface Stories 2 Utilities with Rent Water, Sewer, Trash Collection Unit Amenities Patios/Balconies, Ceiling Fans, Washer/Dryer Connections Project Amenities Outdoor Pool, Clubhouse,Laundry, Exercise/Fitness, Playground Year Built 1995 Condition Average Income Analysis Net Operating Income $1,560,000 Indicators Sale Price/Gross SF $160.95 Sale Price/Unit $150,579 Occupancy at Sale 100% Overall or Cap Rate 4% NOI/SF $6.44 Gross NODUnit $6,023 3361 Multi-Family Sale No.2(Cont.) Remarks This is the sale of Malibu Gardens, a garden-style apartment community located in the Naranja neighborhood of southwest Miami-Dade County, Florida. The property operates under the low- income housing tax(LIHTC)program and provides affordable housing to qualified, low-income families earning up to 60% of the area median income (AMI). Built in 1995, the property was substantially rehabbed in 2014 using 4% LIHTCs, tax-exempt bonds, HOME Investment Partnership Program (HOME)funds, and Miami-Dade County surtax loans. All 259 units are currently restricted to 40%, 50% or 60% AMI pursuant to the LIHTC,bond, HOME and surtax LURA's. The property's initial 15-year compliance period expires in 2028, and the extended compliance period expires in 2048. Malibu Gardens currently operates with a real estate exemption on all but six units. The transaction produced an actual capitalization rate of 4.0%based on the annualized first 8 months of 2023,which included the seller's current insurance costs. The seller indicated that while the buyer's projected insurance costs were unknown, they are likely lower due to a greater geographic diversity,ultimately providing for a slightly higher proforma capitalization rate. The buyer, Lincoln Avenue Communities,is one of the nation's fastest-growing developers,investors and operators of affordable and workforce housing,with a presence in 26 states and a portfolio of 120 properties comprising 22,000+units. 3362 Multi-Family Sale No.3 //�� f �� V IIIIIIIIIIIIIIOuuuuuuuumouuuuuumuu " '� ro 71 u9w,Kti ,aw auu 1 '� I�IiZ� Morin ,.�. •. � I ✓ �,,,„ ,��, ,,, ,�a�i�� r, , , ,, ,r,,, / /yip�/ /��Gib/i��%/oii/�i/�Oi//i1/%O%/i/%/11r11�1%1,llll//lull/rlr0//llll�i�il�ll, U�////�/�///./////////i�/��r/i�%//i/i�///„//Gi,ia/aii////�0,//Di//,.(�.,.,,,,,,✓//////ice/%%//%// ,,,�,,,�iiG/rarde�„�i/ii/OiG�aiaaali,�n ,,,,...M.,N...:.:....... ,//i/l//i�/,////li/,l////////////////�f//��1,�,�)�lJlli/,, Property Identification Record ID 1538 Property Type Mid-rise (4 to 8 stories) Property Name Sunrise Commons (LIHTC) Address 26600 SW 146th Court, Homestead, Miami-Dade County, Florida 33032 Tax ID 30-6934-023-0010 Market Type Low-Income Multifamily Sale Data Grantor Landmark Cos. Grantee Lincoln Avenue Communities Sale Date September 26,2023 Deed Book/Page Not yet available Property Rights Leased Fee Conditions of Sale Arm's length Financing Cash equivalent Verification Francisco Rojo (Landmark, seller); francisco@landmarkco.net, September 27,2023; Confirmed by Steve Kuhn Sale Price $15,250,000 Cash Equivalent $15,250,000 3363 Multi-Family Sale No.3 (Cont.) Land Data Land Size 2.225 Acres or 96,903 SF Zoning UC-R Topography Level, street grade Utilities All available Shape Generally rectangular Unit Mix No. of Mo. Unit Type Units Size SF Rent/Mo. Rent/SF 1/1 8 691 2/2 90 940 3/2 8 1,127 Total Units 106 Avg.Unit Size 935 SF 99,144 General Physical Data No. of Buildings 1 Construction Type CBS Electrical Adequate for use,individually HVAC Central Parking Garage Stories 5 Utilities with Rent Water, Sewer, Trash Collection Unit Amenities Patios/Balconies, Ceiling Fans, Washer/Dryer Connections Project Amenities Outdoor Pool, Clubhouse,Laundry, Exercise/Fitness,Elevators Year Built 2009 Condition Average Income Analysis Net Operating Income $686,250 Indicators Sale Price/Gross SF $153.82 Sale Price/Unit $143,868 Occupancy at Sale 100% Overall or Cap Rate 4.5% NOI/SF $6.92 Gross NODUnit $6,474 Remarks This is the sale of Sunrise Commons, a mid-rise apartment community located in Homestead, Miami-Dade County, Florida. The property operates under the low-income housing tax(LIHTC) program and provides affordable housing to qualified, low-income families earning up to 60%of the area median income (AMI). Built in 2009, the property was originally financed with 9% 3364 LIHTCs and Miami-Dade County/Florida Housing Finance Corporation surtax loans. All 106 units are currently restricted to 33% or 60%AMI pursuant to the LIHTC and surtax LURA's. The property's initial 15-year compliance period expires in 2024, and the extended compliance period expires in 2059. Sunrise Commons currently pays full real estate taxes but will quailfy for exemption in 2025. The transaction produced an actual capitalization rate of 4.5%based on the annualized first 8 months of 2023,which included the seller's current insurance costs. The seller indicated that while the buyer's projected insurance costs were unknown, they are likely lower due to a greater geographic diversity,ultimately providing for a slightly higher proforma capitalization rate. The buyer, Lincoln Avenue Communities,is one of the nation's fastest-growing developers,investors and operators of affordable and workforce housing,with a presence in 26 states and a portfolio of 120 properties comprising 22,000+units. 3365 Multi-Family Sale No.4 fffffff it Y r r; i I�l�llf�if/t'i �yJ� / i / Property Identification Record ID 1497 Property Type Garden(3 stories or less) Property Name Monterra- LIHTC Address 2601 Solano Avenue, Cooper City, Broward County, Florida 33024 Location NWC University Drive and Sheridan Street Tax ID 5141-04-03-0080 MSA Fort Lauderdale Market Type Suburban Sale Data Grantor ZOM Monterra LP Grantee RFM-ESG Monterra LLC Sale Date November 01, 2022 Deed Book/Page 118503908 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Equivalent Verification Trip Stephens; scs@zomliving.com,November 10, 2022; Other sources: CoStar, Confirmed by Andrew Rolf Sale Price $55,500,000 Cash Equivalent $55,500,000 Downward Adjustment $2,500,000 3366 Multi-Family Sale No.4(Cont.) Adjusted Price $53,000,000 Land Data Land Size 12.640 Acres or 550,598 SF Zoning PMUD, Planned Mixed Use Topography Level Utilities All Available Shape Rectangular Unit Mix No. of Mo. Unit Tyne Units Size SF Rent/Mo. Rent/SF 1/1 96 651 2/2 156 898 3/2 48 1,187 Total Units 300 Avg.Unit Size 865 Rentable SF 259,560 General Physical Data No. of Buildings 12 Construction Type Concrete Electrical Sub-metered HVAC Central Parking Surface Stories 3 Utilities with Rent Trash Collection Unit Amenities Patios/Balconies, Security System,Microwaves, Washer/Dryer Project Amenities Clubhouse, Exercise/Fitness, Gated, Business Center,Pet Play Area Year Built 2012 Condition Good Income Analysis Net Operating Income $2,192,250 Indicators Sale Price/Rentable SF $204.19 Adjusted Sale Price/Unit $176,667 Adjusted Occupancy at Sale 98% Overall or Cap Rate 4.14% NOUSF $8.45 Rentable NODUnit $7,308 Remarks 3367 This is the sale of Monterra, an LIHTC affordable multifamily community with units set aside at 50% and 60% of AML According to the confirming source, the contract was signed in early August and the deal was impacted by upward interest rate movement. The buyer assumed existing debt which was favorable to the buyer and resulted in a higher recorded sale price. Other items that made the deal attractive to the buyer,were 2023 rental rate increases based on 50% and 60% of AMI, as well as the pending real estate tax exemption that will be available in 4 to 5 years. After the initial 15 year LIHTC compliance period,real estate taxes will be 100% abated, so long as the property maintains its affordable status,which the property has due to an extended use agreement. As such, the future upside in the asset increased the marketability and the buyer was paying for future increases in NOI that were not captured in the estimated cap rate at sale. 3368 ADDENDA DEMOGRAPHICS WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3369 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 1 mile radius 2023-2028 2023-2028 Summary 2023 2028 Change Annual Rate Population 1,072 1,185 113 2.02% Households 548 612 64 2.23% Median Age 53.5 53.5 0.0 0.00% Average Household Size 1.96 1.94 -0.02 -0.20% 2023 2028 Income Inequality Measures Number Percent Number Percent Household 548 100% 612 100% <$15,000 73 13.3% 72 11.8% $15,000-$24,999 18 3.3% 17 2.8% $25,000-$34,999 9 1.6% 6 1.0% $35,000-$49,999 25 4.6% 23 3.8% $50,000-$74,999 148 27.0% 161 26.3% $75,000-$99,999 51 9.3% 40 6.5% $100,000-$149,999 88 16.1% 97 15.8% $150,000-$199,999 56 10.2% 95 15.5% $200,000+ 79 14.4% 100 16.3% Median Household Income $75,192 $90,368 Average Household Income $123,393 $140,784 Per Capita Income $62,937 $72,623 2023 2028 Households by Income Number Percent Number Percent P90-P10 Ratio 19.0 17.2 P90-P50 Ratio 2.8 2.4 P50-P10 Ratio 6.7 7.1 80-20 Share Ratio 24.4 19.2 90-40 Share Ratio 4.1 4.5 Households in Low Income Tier 95 17.3% 92 15.0% Households in Middle Income 306 55.8% 313 51.1% Households in Upper Income Tier 146 26.6% 207 33.8% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3370 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 1 mile radius 2023 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 13 58 61 81 132 136 66 <$15,000 2 4 6 6 16 23 17 $15,000-$24,999 0 0 1 0 3 6 7 $25,000-$34,999 0 0 0 0 3 3 2 $35,000-$49,999 0 1 1 2 5 9 7 $50,000-$74,999 7 23 18 17 30 38 15 $75,000-$99,999 1 6 6 8 14 11 4 $100,000-$149,999 2 10 12 17 21 23 4 $150,000-$199,999 1 6 8 14 17 6 4 $200,000+ 0 7 9 16 24 17 6 Median HH Income $61,737 $76,636 $92,575 $115,679 $90,574 $65,198 $50,000 Average HH Income $76,200 $121,638 $131,736 $158,168 $138,861 $108,778 $84,890 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 15.4% 6.9% 9.8% 7.4% 12.1% 16.9% 25.8% $15,000-$24,999 0.0% 0.0% 1.6% 0.0% 2.3% 4.4% 10.6% $25,000-$34,999 0.0% 0.0% 0.0% 0.0% 2.3% 2.2% 3.0% $35,000-$49,999 0.0% 1.7% 1.6% 2.5% 3.8% 6.6% 10.6% $50,000-$74,999 53.8% 39.7% 29.5% 21.0% 22.7% 27.9% 22.7% $75,000-$99,999 7.7% 10.3% 9.8% 9.9% 10.6% 8.1% 6.1% $100,000-$149,999 15.4% 17.2% 19.7% 21.0% 15.9% 16.9% 6.1% $150,000-$199,999 7.7% 10.3% 13.1% 17.3% 12.9% 4.4% 6.1% $200,000+ 0.0% 12.1% 14.8% 19.8% 18.2% 12.5% 9.1% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3371 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 1 mile radius 2028 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 15 64 72 88 132 153 88 <$15,000 2 4 6 5 13 22 20 $15,000-$24,999 0 0 1 0 2 6 8 $25,000-$34,999 0 0 0 0 1 3 2 $35,000-$49,999 0 1 1 1 3 9 7 $50,000-$74,999 8 24 19 16 29 44 21 $75,000-$99,999 1 5 5 6 10 9 4 $100,000-$149,999 2 11 14 17 20 28 5 $150,000-$199,999 2 9 14 22 27 11 9 $200,000+ 0 9 12 19 27 23 10 Median HH Income $63,145 $86,109 $110,425 $141,877 $115,862 $69,675 $54,963 Average HH Income $84,688 $134,917 $151,412 $177,332 $161,331 $126,846 $102,781 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 13.3% 6.2% 8.3% 5.7% 9.8% 14.4% 22.7% $15,000-$24,999 0.0% 0.0% 1.4% 0.0% 1.5% 3.9% 9.1% $25,000-$34,999 0.0% 0.0% 0.0% 0.0% 0.8% 2.0% 2.3% $35,000-$49,999 0.0% 1.6% 1.4% 1.1% 2.3% 5.9% 8.0% $50,000-$74,999 53.3% 37.5% 26.4% 18.2% 22.0% 28.8% 23.9% $75,000-$99,999 6.7% 7.8% 6.9% 6.8% 7.6% 5.9% 4.5% $100,000-$149,999 13.3% 17.2% 19.4% 19.3% 15.2% 18.3% 5.7% $150,000-$199,999 13.3% 14.1% 19.4% 25.0% 20.5% 7.2% 10.2% $200,000+ 0.0% 14.1% 16.7% 21.6% 20.5% 15.0% 11.4% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3372 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 3 mile radius 2023-2028 2023-2028 Summary 2023 2028 Change Annual Rate Population 4,022 4,095 73 0.36% Households 1,989 2,053 64 0.64% Median Age 55.2 56.6 1.4 0.50% Average Household Size 2.02 1.99 -0.03 -0.30% 2023 2028 Income Inequality Measures Number Percent Number Percent Household 1,989 100% 2,053 100% <$15,000 175 8.8% 163 7.9% $15,000-$24,999 154 7.7% 132 6.4% $25,000-$34,999 82 4.1% 70 3.4% $35,000-$49,999 275 13.8% 248 12.1% $50,000-$74,999 383 19.3% 384 18.7% $75,000-$99,999 171 8.6% 126 6.1% $100,000-$149,999 296 14.9% 319 15.5% $150,000-$199,999 195 9.8% 301 14.7% $200,000+ 258 13.0% 310 15.1% Median Household Income $68,496 $79,969 Average Household Income $115,432 $133,646 Per Capita Income $56,122 $65,905 2023 2028 Households by Income Number Percent Number Percent P90-P10 Ratio 13.0 12.3 P90-P50 Ratio 3.1 2.7 P50-P10 Ratio 4.2 4.5 80-20 Share Ratio 20.8 19.0 90-40 Share Ratio 4.2 4.6 Households in Low Income Tier 363 18.3% 324 15.8% Households in Middle Income 1,138 57.2% 1,080 52.6% Households in Upper Income Tier 489 24.6% 649 31.6% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3373 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 3 mile radius 2023 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 45 174 199 313 467 513 278 <$15,000 4 12 12 14 35 56 42 $15,000-$24,999 6 9 7 14 29 48 41 $25,000-$34,999 2 7 7 10 11 26 18 $35,000-$49,999 6 22 24 33 62 79 50 $50,000-$74,999 14 47 36 51 79 101 55 $75,000-$99,999 3 17 20 23 43 46 19 $100,000-$149,999 6 29 39 62 77 65 19 $150,000-$199,999 3 15 31 51 57 28 11 $200,000+ 0 18 24 56 75 64 21 Median HH Income $54,578 $68,291 $91,185 $106,752 $84,052 $59,300 $45,022 Average HH Income $65,044 $108,351 $124,858 $144,759 $131,059 $106,145 $79,142 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 8.9% 6.9% 6.0% 4.5% 7.5% 10.9% 15.1% $15,000-$24,999 13.3% 5.2% 3.5% 4.5% 6.2% 9.4% 14.7% $25,000-$34,999 4.4% 4.0% 3.5% 3.2% 2.4% 5.1% 6.5% $35,000-$49,999 13.3% 12.6% 12.1% 10.5% 13.3% 15.4% 18.0% $50,000-$74,999 31.1% 27.0% 18.1% 16.3% 16.9% 19.7% 19.8% $75,000-$99,999 6.7% 9.8% 10.1% 7.3% 9.2% 9.0% 6.8% $100,000-$149,999 13.3% 16.7% 19.6% 19.8% 16.5% 12.7% 6.8% $150,000-$199,999 6.7% 8.6% 15.6% 16.3% 12.2% 5.5% 4.0% $200,000+ 0.0% 10.3% 12.1% 17.9% 16.1% 12.5% 7.6% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3374 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 3 mile radius 2028 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 42 153 226 283 435 554 359 <$15,000 4 9 11 10 28 51 51 $15,000-$24,999 4 5 6 9 19 42 46 $25,000-$34,999 1 5 7 7 7 22 21 $35,000-$49,999 5 15 22 22 46 77 62 $50,000-$74,999 14 41 36 40 69 111 72 $75,000-$99,999 2 11 16 15 27 37 18 $100,000-$149,999 7 28 45 56 76 80 28 $150,000-$199,999 5 19 51 68 82 50 26 $200,000+ 0 19 32 57 81 85 36 Median HH Income $59,164 $76,852 $112,374 $130,447 $110,503 $67,384 $50,000 Average HH Income $77,848 $126,151 $144,661 $168,379 $153,669 $126,811 $95,711 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 9.5% 5.9% 4.9% 3.5% 6.4% 9.2% 14.2% $15,000-$24,999 9.5% 3.3% 2.7% 3.2% 4.4% 7.6% 12.8% $25,000-$34,999 2.4% 3.3% 3.1% 2.5% 1.6% 4.0% 5.8% $35,000-$49,999 11.9% 9.8% 9.7% 7.8% 10.6% 13.9% 17.3% $50,000-$74,999 33.3% 26.8% 15.9% 14.1% 15.9% 20.0% 20.1% $75,000-$99,999 4.8% 7.2% 7.1% 5.3% 6.2% 6.7% 5.0% $100,000-$149,999 16.7% 18.3% 19.9% 19.8% 17.5% 14.4% 7.8% $150,000-$199,999 11.9% 12.4% 22.6% 24.0% 18.9% 9.0% 7.2% $200,000+ 0.0% 12.4% 14.2% 20.1% 18.6% 15.3% 10.0% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3375 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 5 mile radius 2023-2028 2023-2028 Summary 2023 2028 Change Annual Rate Population 9,191 9,243 52 0.11% Households 4,300 4,375 75 0.35% Median Age 53.8 55.3 1.5 0.55% Average Household Size 2.13 2.11 -0.02 -0.19% 2023 2028 Income Inequality Measures Number Percent Number Percent Household 4,300 100% 4,375 100% <$15,000 369 8.6% 332 7.6% $15,000-$24,999 328 7.6% 276 6.3% $25,000-$34,999 174 4.0% 153 3.5% $35,000-$49,999 488 11.3% 456 10.4% $50,000-$74,999 853 19.8% 817 18.7% $75,000-$99,999 354 8.2% 265 6.1% $100,000-$149,999 613 14.3% 656 15.0% $150,000-$199,999 422 9.8% 621 14.2% $200,000+ 699 16.3% 800 18.3% Median Household Income $72,447 $88,274 Average Household Income $125,840 $143,616 Per Capita Income $58,470 $67,526 2023 2028 Households by Income Number Percent Number Percent P90-P10 Ratio 13.3 12.2 P90-P50 Ratio 3.0 2.5 P50-P10 Ratio 4.4 4.9 80-20 Share Ratio 22.6 20.8 90-40 Share Ratio 4.8 5.0 Households in Low Income Tier 769 17.9% 669 15.3% Households in Middle Income 2,337 54.3% 2,204 50.4% Households in Upper Income Tier 1,194 27.8% 1,502 34.3% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3376 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 5 mile radius 2023 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 82 384 462 714 1,035 1,049 574 <$15,000 10 29 31 33 87 100 79 $15,000-$24,999 11 18 15 35 70 90 89 $25,000-$34,999 4 16 17 23 21 54 38 $35,000-$49,999 10 39 46 54 108 141 90 $50,000-$74,999 23 86 78 112 166 248 140 $75,000-$99,999 8 38 42 58 87 85 35 $100,000-$149,999 11 65 85 132 162 125 32 $150,000-$199,999 3 34 69 113 126 57 18 $200,000+ 1 58 79 154 207 148 52 Median HH Income $53,867 $76,825 $100,773 $111,881 $92,565 $61,292 $47,908 Average HH Income $66,876 $124,934 $139,383 $156,040 $142,697 $111,485 $82,243 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 12.2% 7.6% 6.7% 4.6% 8.4% 9.5% 13.8% $15,000-$24,999 13.4% 4.7% 3.2% 4.9% 6.8% 8.6% 15.5% $25,000-$34,999 4.9% 4.2% 3.7% 3.2% 2.0% 5.1% 6.6% $35,000-$49,999 12.2% 10.2% 10.0% 7.6% 10.4% 13.4% 15.7% $50,000-$74,999 28.0% 22.4% 16.9% 15.7% 16.0% 23.6% 24.4% $75,000-$99,999 9.8% 9.9% 9.1% 8.1% 8.4% 8.1% 6.1% $100,000-$149,999 13.4% 16.9% 18.4% 18.5% 15.7% 11.9% 5.6% $150,000-$199,999 3.7% 8.9% 14.9% 15.8% 12.2% 5.4% 3.1% $200,000+ 1.2% 15.1% 17.1% 21.6% 20.0% 14.1% 9.1% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3377 • Gesno 95295 Overseas Hwy, Key Largo, Florida, 33037 Prepared by Esri Ring: 5 mile radius 2028 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 75 355 500 637 942 1,105 761 <$15,000 10 22 27 22 64 87 98 $15,000-$24,999 8 11 12 21 47 76 100 $25,000-$34,999 2 13 16 15 14 48 45 $35,000-$49,999 9 31 47 38 82 134 117 $50,000-$74,999 22 72 70 82 135 250 185 $75,000-$99,999 6 25 33 40 58 68 36 $100,000-$149,999 12 68 95 122 160 151 49 $150,000-$199,999 6 49 107 146 172 99 41 $200,000+ 1 62 93 151 210 192 91 Median HH Income $57,314 $101,201 $118,848 $138,143 $117,672 $69,140 $51,796 Average HH Income $75,596 $146,147 $158,108 $178,623 $164,515 $133,250 $99,497 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 13.3% 6.2% 5.4% 3.5% 6.8% 7.9% 12.9% $15,000-$24,999 10.7% 3.1% 2.4% 3.3% 5.0% 6.9% 13.1% $25,000-$34,999 2.7% 3.7% 3.2% 2.4% 1.5% 4.3% 5.9% $35,000-$49,999 12.0% 8.7% 9.4% 6.0% 8.7% 12.1% 15.4% $50,000-$74,999 29.3% 20.3% 14.0% 12.9% 14.3% 22.6% 24.3% $75,000-$99,999 8.0% 7.0% 6.6% 6.3% 6.2% 6.2% 4.7% $100,000-$149,999 16.0% 19.2% 19.0% 19.2% 17.0% 13.7% 6.4% $150,000-$199,999 8.0% 13.8% 21.4% 22.9% 18.3% 9.0% 5.4% $200,000+ 1.3% 17.5% 18.6% 23.7% 22.3% 17.4% 12.0% Data Note:2023 household income represents an estimate of annual income as of July 1,2023 and 2028 household income represents an estimate of annual income as of July 1,2028. Source: Esri forecasts for 2023 and 2028. February 06, 2024 3378 ADDENDA FLORIDA'S ECONOMIC CONDITIONS WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3379 Florida's Economic Conditions The Summary of Commentary on Current Economic Conditions is a regionalized economic report published by the Federal Reserve Board eight times a year. This report is informally referred to by economists as The Beige Book. The Atlanta Fed territory includes Alabama, Florida, Georgia, and portions of Louisiana, Mississippi, and Tennessee. The most recent Beige Book, issued January 17, 2024, reported that the economy of the Sixth District grew slowly from mid-November through December. Labor availability and employee retention continued to improve, but hiring slowed for some firms, and wage pressures eased further. Nonlabor costs moderated for the most part, and pricing power slipped. Holiday retail sales were mixed; auto sales were strong. Travel activity was healthy, but spending at hotels continued to slow. Despite declines in mortgage interest rates, the housing market remained encumbered by the lack of affordability. Commercial real estate activity was sluggish. Transportation activity remained weak. Lending grew for certain types of loans, but consumer lending declined. Activity in the energy sector was robust. Agriculture conditions were mixed. Labor Markets — Labor markets continued to cool, and some employers slowed hiring. Most contacts continued to report that labor markets had softened from earlier in the year amid more available labor and stronger retention rates. Many indicated that staffing levels had improved from a year ago; however, hiring in the leisure and hospitality sector remained challenging. Additionally, the lack of affordable housing was cited as an impediment to attracting workers to some areas. Weaker demand for products and services caused some employers to reduce hours or slow hiring which they expected to continue through the first half of 2024. One firm said that they were choosing to hold positions open and were "slow walking" new hires, as they sought to supplement productivity with Generative A.I. across all business lines and functions. Most firms indicated that wage pressures continued to ease, and more modest wage growth is expected in the coming year. Prices — Nonlabor input cost increases moderated over this reporting period. Firms cited improvements in supply chain predictability, contributing to lower freight and shipping costs. Construction costs were mixed; lumber costs decreased while concrete increased. Food product costs declined. The easing of some input costs was offset by persistent growth in labor and insurance costs, and most firms held consumer prices steady even amid diminishing pricing power. The Atlanta Fed's Business Inflation Expectations survey showed year- over-year unit cost growth decreased significantly in December to 2.9 percent, on 3380 average, from 3.2 percent in November; firms' year-ahead inflation expectations for unit cost growth remained relatively unchanged in December at 2.4 percent, on average. Construction and Real Estate-Although mortgage rates retreated during the fourth quarter of 2023, home sales in the District were slow to respond, as most markets remained unaffordable for median income earners. Homeowners also faced challenges with other rising costs, such as property insurance. Florida, with strong demand generated from out-of-state buyers, is the only Sixth District state reporting increases in existing home sales compared with a year ago. Inventories of homes for sale, though still tight, were boosted by new construction. Sales strategies varied by homebuilder; smaller builders focused on reducing home sizes, while larger builders reported buying down interest rates to generate demand. The Sixth District's office market continued to encounter negative absorption rates and diminishing occupancies. Leasing activity at the end of 2023 dropped to 2020 levels, creating a "tenant's market," where landlords were forced to offer incentives. Market conditions are expected to remain challenged in 2024 as new construction is delivered. Other property segments experienced weakening conditions as well; contacts in industrial markets reported that the amount of square feet in the pipeline is running well ahead of absorption, resulting in higher vacancy levels. Contacts expressed concerns over rising commercial real estate loan maturities in 2024. Consumer Spending and Tourism - Consumer spending generally continued the trend of normalization from the pandemic's strong pace of growth. Holiday sales were mixed. In line with pre-pandemic trends, contacts reported managing inventories more closely and many offered customary promotions and discounts. Auto sales remained strong, On average, retailers' outlook remains positive for the first half of 2024. Holiday travel activity was characterized as healthy, on balance, by tourism and hospitality contacts. Spending on merchandise, food, and services in hotels, however, decreased compared with the same time last year. Contacts are cautiously optimistic about travel demand in the first quarter, but characterize the environment as normalizing back to pre-pandemic levels. Transportation - Transportation activity remained muted over the reporting period. Railroads reported declines in year-to-date total traffic; intermodal 3381 shipments were down significantly. Trucking firms cited continued softness in freight volumes, which is expected to continue well into 2024. Some carriers anticipate that additional trucking capacity will be taken offline in the next year as small owner-operators fold, and large carriers reduce capacity amid deteriorating demand. A few logistics contacts hinted at re-emerging supply chain constraints resulting from drought conditions in the Panama Canal, as shippers are forced to deploy to the Suez Canal, extending lead times for products from China and southeast Asia. Manufacturing — Manufacturing activity slowed slightly. Some contacts reported declines in new orders and backlogs of work, along with rising finished goods inventories and faster supplier delivery times. The Manufacturing Sector Report of the Atlanta Fed's Business Inflation Expectations Survey showed that for the majority of respondents, demand had decreased or was on par with year-earlier levels. The outlook is cautiously optimistic but concerns such as inflation, interest rates, and geopolitical uncertainty were mentioned. Banking and Finance — Lending at Sixth District financial institutions increased since the previous report, especially for multifamily and home equity loans. Consumer lending contracted overall, alongside a rise in delinquencies in credit cards, auto loans and unsecured personal loans. Demand and large time deposit balances continued to increase as banks paid higher interest rates on deposits. However, these higher funding costs have led to earnings concerns. Hence, some banks restructured securities portfolios and reinvested proceeds into higher-yielding securities to protect margins. Energy — Energy contacts reported historically high levels of crude oil production and record amounts of gas flow to liquefied natural gas export plants. Contacts also continued to report planning and development of industrial decarbonization and renewable energy projects; however, a few contacts noted that some of these projects are being delayed by federal approval processes. Utility contacts reported growing electricity demand, especially in the industrial and commercial segments, attributed to clean energy transitions at production facilities and hospital and healthcare projects, respectively. Agriculture — Low cattle supply led to higher cattle prices, but consumers substituting less expensive proteins prevented full pass-through of prices. Domestic demand for chicken rose, but demand was down overall as cases of avian flu led to additional export restrictions and lower egg supply. Milk prices rose amid growing domestic demand for dairy, but low export levels continued to 3382 depress the market. There was little change in demand or supply for row crops, but demand for cotton remained weak. Source: The Summary of Commentary on Current Economic Conditions(The Beige Book) FLORIDA MARKET MSA SNAPSHOT 4mr4arrnS+m MR10", y^63ry,,68 4 13 26%am t 3"0% S265 5 3 OrtancX I4r„K,;i 4 Will— r02�fd'dl n 4. 6t?'3 + dS V1it5Y3 ltl Np 11 rum r2p2"U'1 .� I M� k-Wdes Irmludas Orlanoo-Kis�siaimeR-SanfordMSA Sough Pl"Wa Cx,'14§;�6,6 rat�'H 3�'�9�� $78 y Bd' 5dl127 11 W11�m I2S24I (, m4a lnC;l Porn art mn mq77159 2'4 h2 iton(2G20k"' k-Wdms M am,:)ade,armmn®d and Palm Beach Cwnije& 23Lu„ ,w 5 Million r302'T'k T'anipa Bay .3,� ,54 p� 'MA.n ?0(5 N 524 l s 049,rt. , Tampa W1„arvpovY Porn Taumam,$my ,?3.2 9.I SI 65J'47 33Mililan Qdf)21G iu II r Ia P p `I iV a k r �rwww' $1J2 Includsa Taimpa al..Palmrabur6-CUearu¢alar NISA Jacksonville LAP,,UP 67„Aryfl{{IS+au 1"4T,4'ill!m "4,449 Jar Y,I1;0,pjrmrlfU F¢nrf,r�Jagchsrin?;jlll/ �� /A� 391 2091 360% $261.610 2712 103 Million=21 I (Source uoUlar,STg6 etc. As of late 2023, most seaports and airports in Florida have fully recovered and are expanding. Cargo based ports fared better in the pandemic, but cruise travel continues to recover and expand. International travel and business travel are approaching 2019 levels and increasing. Domestic travel and hotel occupancies are excellent and there is active commercial real estate development in all markets of Florida. In summary, the Florida economy is very good and values in commercial and residential real estate are trending upward at record levels although transactions have dropped precipitously due primarily to current high interest rates. Headwinds include labor and housing shortages as well as rising property insurance costs and the bank credit crunch that is impacting the broader economy as well. 3383 ADDENDA QUALIFICATIONS WALTER D�Ul +PARTNERS COMMERCIAL REAL ESTATE VALUATION 3384 �� l� °� ��' �� «�� @��. � U��U��' COMMERCIAL,REAL ES1`AlE VALUAT|ON 13,Du1�10 III M&I CCIM x"mC iflu o-0=mA I q� a, 75 QUALIFICATIONS (�� ^�`'' `�'' '`�' ` ' '~�'~`� ~�' WA| l-ER B. DUKE, |||/ MA|/ Cy`|M EDUCATION University ofFlorida, GainoeviUo, Florida Major in Real Estate B.S. Dognao in Business Administration Appraisal Institute, American Institute of Real Estate Appraisers and Society of Real Estate Appraisers oona oourso, o|o«dvoe. seminars and comprehensive examination. APPRAISAL/REAL ESTATE EXPERIENCE 1QQ2—Present President&CEO, Walter Duke+ Partners, Inc. 1988-1992 Senior Appraiser, C|obue Valuation Co . Inc. 1985-1987 Staff Appraiser, C|obue Valuation Co . Inc. 1983-1984 Brokor-8a|oeporeon. Carmel Bay Realty Appraisal assignments include the valuation and/or evaluation of a wide variety of commercial, residential and industrial properties in Florida prepared for banks,savings and loans,savings bank, insurance companies, estates, governmental agencies, RE|T'e. mortgage bankers, attorneys and individual investors. Property types include, but are not limited to, proposed and existing office bui|dinge, commercial oondominiume, warehouse and industrial proportioe, shopping centers and retail dovo|opmont, market and tax credit apartments, acreage tracts, commercial/industrial land and special purpose properties including marinae, boatyarde, religious and/or educational facilities, fixed base operations (FBO). Qualified Real Estate Valuation Expert Witness: U.8. Bankruptcy Court, Southern District ofFlorida 17thJudioia| Circuit Court, BmwardCounty PROFESSIONAL AND BUSINESS AFFILIATIONS MA|, Member, Appraisal Institute, No. 8584 CC|M. Certified Commercial Investment Member No. 7130 Registered Real Estate Broker-Salesperson—State of Florida, No. 0398140 Certified General Appraiser—State of Florida, No. RZ375 Former Mombor, Review and Counseling Division—Region XSouth Florida-Caribbean Chapter ofAppraisal Institute: President 2OOO. 2nd Vice President 1QQQ. Secretary 1QQ8. Treasurer 1QQ7 Regional Representative: Region X Leadership Fort Lauderdale—Class IV, 1998 Appraisal Institute, Leadership Advisory Council, 1997 Mombor, Realtor's Commercial Alliance Former Member, Appraisal Journal Editorial Review Board Mombor, Commercial Realtors of Greater Fort Lauderdale Member, Executives'Association of Fort Lauderdale umm vvState nvau ow.Suite 109 | Fort Lauuoma/o.r/vnuacn1u-4uow | roewsor.uno1 | roew.sor.urou | www wafterouw*com Jmro 1975 3385 QUALIFICATIONS OF WALTER B. DUKE, III, MAI, CCIM Page 2 Member, Marine Industries Association of South Florida(MIASF) Director, Marine Industries Association of South Florida(2014-2020) Director, CCIM Fort Lauderdale/Broward District(2018—Current) Director, Broward Workshop Chairman,Affordable Housing Sub-Committee, Broward Workshop Co-Chair, Affordable Housing Pillar, Prosperity Partnership/GFLA CIVIC AND CHARITABLE ACTIVITIES Mayor, City of Dania Beach, 2012-2014 City Commissioner, City of Dania Beach, 2009—2011, 2015-2016 Chairman, Dania Beach Community Redevelopment Agency 2012-2014 Member, Broward Metropolitan Planning Organization 2012-2016 Leadership Fort Lauderdale—Class IV, 1998 AWARDS AND RECOGNITION Appraisal Institute—Recipient of the Volunteer of Distinction Award Jubilee Center of South Broward—Recipient of the Compassion Award Golden Anchor Award Recipient-Highest honor bestowed by the Marine Industries of South Florida, (MIASF) Dania Beach Lions Club-Recipient of the Nicholas James Costello Award for service to the community Gold Coast Magazine Fort Lauderdale-named as a 2016 Power Couple along with wife Lisa Symphony of the Americas, honored along with wife Lisa as a couple of"Style and Substance" South Florida Business Journal—One of five notable figures who are"Making Waves in the Marine Industry" RECENT SPEAKING ENGAGEMENTS Keynote-Commercial Real Estate Trends"-Berger Commercial Realty Lunch N Learn Series Keynote-Florida Commercial Real Estate Market'-South Florida Loan Committee Keynote-Market Update—South Florida Commercial Real Estate"AmericanSociety of Appraisers(ASA) Keynote-Commercial Real Estate Overview-Broward Council of the Miami Association of Realtors Panelist-Market Perspectives on Valuation, National Association of Office and Industrial Properties(NAIOP) Speaker-South Florida Commercial Real Estate Financing and Valuation" South Florida CCIM Chapter Panelist-MIASF Better Business Series"—Marine Industries of South Florida(MIASF) Speaker-2040 Regional Transportation Plan Rollout-Southeast Florida Transportation Council Keynote-Global Real Estate Trends Applicable to Fort Lauderdale—Fort Lauderdale Historical Society Speaker—Broward County Economy-Executives Association of Fort Lauderdale 59th Annual Economic Outlook Speaker—Broward County Economy-Executives Association of Fort Lauderdale 60th Annual Economic Outlook Keynote—Covid Impacts on CRE: American Society of Appraisers Speaker—Broward County 2021 Economic Forecast: Broward-Fort Lauderdale CCIM Chapter Moderator—South Florida Property Appraiser Panel American Institute of Real Estate Appraisers Moderator -Developer Panel—Realtors Commercial Alliance Panelist—Covid Impacts on Commercial Real Estate—Miami Association of Realtors Moderator—South Florida Capital Markets—Broward Fort Lauderdale CCIM Chapter Panelist—Safety, Opportunity&Sustainability Marine Industry—Downtown Council FTL Chamber of Commerce Presenter—Marina Industries Association of South Florida Leadership—Anchor Members Moderator—Gold Coast Commercial Real Estate Outlook—Realtors Commercial Alliance Moderator—2022 Commercial Real Estate Outlook Conference—Developer Panel—CCIM Broward/Fort Lauderdale Speaker- Dollars and Sense of Affordable Housing—Broward Housing Council RECENT PUBLISHED ARTICLES AND INDUSTRY CONTENT Author-Top 5 Misconceptions About Commercial Real Estate Appraisals Author—Dredging of the Dania Cut Off Canal Spurs Economic Growth Author—What Type of Commercial Lease is Best for You? Author—How Walkable Communities Increase Property Values Author—Selling Your Marina? 5 Key Factors to Consider 2860 W State Road 84,Suite 109 I Fort Lauderdale,Florida 33312-4804 I T 954.587.2701 I F 954.587.2702 1 mnAna.Wa1k,.ir1lXA1ka,.n;o nu S7nce 1975 3386 QUALIFICATIONS OF WALTER B. DUKE, III, MAI, CCIM Page 3 Author—Millennials Finally Leaving the Nest—Fort Lauderdale Rental Market Booming Author—The Importance of LIHTC Market Feasibility Studies Author—When is the right time to sell a marina?"—Boating Industry Magazine—August 13, 2015 Author— Business is Booming at Walter Duke + Partners Author—Top 10 Takeaways from this year's ICSC Conference Co-Author—Big Profits/Low Risk: 7 Bank Lease Deal Trends Author—Top 5 Misperceptions About Commercial Real Estate Appraisals Author—All you need to know about Florida Charter Schools Author—Top 4 Reasons Why Baby Boomers Still Own the Share of US Small Businesses Author—Three Reasons to be Happy in Your Upside Down Condo! Author—Three Troubling Trends in the South Florida Condo Market"Author—Free Beer Included in Your Office Space? Guest Columnist/South Florida Business Journal—Ask these questions before running for office, 2015 Author—Low Income Housing Tax Credit: A Government Program That Works Contributor-Time to Sell Your Marina?—Trade Only Today Magazine—December, 2015 Issue Author—Boom Interrupted: Six Signs Commercial Real Estate Could Be Peaking Author—Thinking Outside the Box to Create Value in Church Property Author— From the Desk of Duke: SHIP and SAIL Big Winners! Columnist/MIASF Fort Lauderdale must be vigilant to maintain its title as Yachting Capital of the World Author- Is the Condo Market Keeping You Up at Night? Author-Top 3 Reasons For An Improved Housing Market Sea Level Rise: Does the Business Community Care? Author—The American Dream Interrupted: 3 Ways Government Can Help Author—Nine Noteworthy Trends You Should Know Author—Its Gut Check Time in the Miami Condo Market Author—Six Headwinds That Could Derail Florida Commercial Real Estate and the Trump Economy Author—Opportunity is Knocking! Are you Ready? Author—Florida has Hurricane Amnesia Author—Is FTL Still the"Yachting Capital of the World'? Author—COVID-19; Florida CRE Winners and Losers Author—Office: You Can't Live with It, You Can't Live Without It Author—CRE Valuation Professionals Shouldn't Overreact to COVID-19 Author—Florida Charter School Market Poised for Growth Author—Top Takeaway from the 2022 CCIM Outlook Conference RECERTIFICATION AND CONTINUING EDUCATION The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAls and SRAs who meet the minimum standards of this program are awarded periodic education certification. I am currently certified under this program. 2860 W State Road 84,Suite 109 I Fort Lauderdale,Florida 33312-4804 I T 954.587.2701 I F 954.587.2702 1 ,na,na,na.Wn,1kn1lXA1ka,.n;o nu Since 1975 3387 WALTER DUKE + PARTNERS COMMEROAL REAL ESTATE VALUATIiON S'dara S"el r s,('r,oI o I o a A Jq Irta is er3,5 QUALIFICATIONS OF KAITLYN EVANS EDUCATION University of North Florida, Jacksonville, Florida Bachelor of Business Administration Degree—2015 Major— Marketing Minor—Spanish Language REAL ESTATE APPRAISAL EDUCATION/EXPERIENCE 2023— Present State Certified General Appraiser, Walter Duke + Partners, Inc. 2017—2023 Trainee Appraiser, Walter Duke + Partners, Inc. . Appraisal assignments include the valuation and/or evaluation of a wide variety of commercial properties in Florida prepared for banks, savings and loans, insurance companies, estates, governmental agencies, REITs, mortgage bankers and individual investors. Property types include, but are not limited to, proposed and existing multifamily residential, Low Income Housing Tax Credit multifamily, retail and office buildings, medical and veterinary offices, warehouses and industrial properties, commercial and industrial zoned land, and mixed-use properties. Other valuation services include market rent comparability studies and cost valuations. PROFESSIONAL AFFILIATIONS State-Certified General Appraiser—State of Florida No. RZ4770 Notary Public—State of Florida No. HH 323552 (Exp. 10/19/2026) 2860 W State Road 84,Suite 109 1 Fort Lauderdale, Florida 33312-4804 1 T 954.587.2701 1 F 954.587.2702 1 www corri Since 1975 3388 ADDENDA LICENSES i*'� kIEPARTMENT ,I,, ySTATEOF FLORIDAOF(BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL E,.TAT APPRAISAL BD TUE SER Mel IS, Ea;MlF O MINDER�WIlt imvaslc��J�l'�a� � ��E� ��TU1"ES: rw ��/ '�� EXPIRATION ED•ATIE"NOVEMOEDD 30...,:2024 Al—pa CyI A—raa rum.m h4yf'IcxdclL ��.ern 0.nQk after phk,ml c rcrmem Im ,g f...rrv. Thik,h'5 mrr kelm —11 l5.Ecntl whin rmr afty0me,o mem thaa the Ricelm5mds to mad"tNs docuumemk6 ��. 6w tvr I.nn a�nrtru.9emwsrrm MaNMtaxW b I;iN4n'4u.¢Yrm vp'y N Y �FrN)I� STATE OF FLORIDA 444 "DEPARTIMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD IHt'u:&9E flh lLfl4 ,N~ ,Rfik I)""J Y"6E4y,HE, I441^"11M.Y I UNDI,K'IHf.., hldcvlSlFf UhI13Pk&r L IAIUI S ACM/ 10, o LIICE �aPUIGNE4E 6dFaa E}CPl'RATI�3N CfAlfE 7J�LM^JEh76EN131D„2!024 Af—r.'moffy Mw uur+a~r qm m,mu Mylfrw,kw a uunu MEN Ib4uFR yul G�ralu✓a bM rank avltez'R9x urneut in ally Rr rna_ Vl is ficellse ID'ms arm � 9" ar wri.ivrdnrd Pour acryurrrc sAtrrw Rh:.rer t9ic lal Tncuseff,to use Mar:+�M.rovaruwrrvt. WALTER D,UCKE +PARTNERS COMMERCIAL REAL ESTATIE"VALUATION 3389 WALTER DUKE + PARTNERS .:OMMER. IAI.. REAL ESTATE @,..UATI .N Partial Client List BANKS/LENDERS Mercantile Bank Drury Development Corporation American Maritime Officers Amerinational New Wave Loans Easton&Associates Avison Young American National Bank NorthMarq Eden Multifamily BBX Capital Amarillo National Bank Northern Trust Bank of Florida EJS Capital Partners Bradford Marine Bank Leumi Ocean Bank El Ad National Properties Brightline Bank of America, N.A. OptimumBank Flagler/Codina Development Budget Rent-A-Car Corporation Bank of Florida Pacific National Bank Florida Crystals Coastal Waste&Recycling Bank OZK Pacific Western Bank Florida East Coast Industries Colliers Bank United,F.S.B. PNC Bank Florida East Coast Realty Cushman Wakefield Banesco USA Popular Community Bank Fort Partners Derecktor Shipyards BBVA/Compass Bank Professional Bank Foundry Commercial Florida Crystals Capital Bank RBC Bank Fuse Group Foundry Commercial Capital One Bank Regions Bank Gatlin Development Company Fox Rock Catholic Order of Foresters Sabadell United Bank Genting Group Gulfstream Park Racing Assoc. Centerstate Bank Safra National Bank of New York Graham Companies Holman Automotive CIBC World Markets Seacoast Bank Halmos Holdings Huizenga Holdings CIT Bank Seltzer Management Group Hudson Capital Group IRG Sports&Entertainment Citibank,F.S.B. Stonegate Bank Informa Keith Citizens Bank Sun State Bank Ireland Companies Lago Mar Beach Resort&Club City National Bank Surety Bank J.Milton Family Partners Las Olas Companies CLI Capital Synovus Hix Snedeker Lowes Home Centers CNL Bank Textron Financial Hooper Construction Miami Dolphins Coconut Grove Bank TD Bank Jeff Greene Partners Moss Construction Comerica TIAA Bank Lincoln Property Company Palm Peterbilt Truck Centers Commerce Bank,N.A. Total Bank Mast Acquisitions Pantropic Power Credit Suisse Truist McCourt Development Pinecrest School ECCU U.S.Bank Merrimac Ventures Roscioli Yachting Center Fidelity Bank of Florida U.S.Century Bank Metropica Seminole Indian Tribe of Florida Fifth Third Bank United National Bank Mill Creek Residential Trust Sheltair First American Bank Valley National Bank M.R.McTigue&Cc Tampa Electric(TECO) First Citizens Bank We Florida Financial MIRK Partners Uniform Advantage First Horizon Bank Wells Fargo Bank Nautical Ventures Westrec Marinas First Housing Zeigler Capital Markets Netz Real Estate Fund WS Development First Republic Bank DEVELOPERS/INVESTORS New Urban Development Yacht Management Group Florida Shores Bank 13th Floor Investments Olen Properties GOVERNMENT/MUNICIPAL First United Bank Aetna Realty Pebb Capital Broward County Housing Authority Flagler Bank Allen Morris Commercial Real Pillar Multifamily BCPA Fuse Group Estate Plaza Equity Partners Broward County,Florida GE Capital Alliance Companies Premier Developers Broward Health Gibraltar Private Bank&Trust Alta Development RAM Real Estate Development Broward Regional Health Planning Grand Bank and Trust of Florida Altman Companies Raza Development Council Grandbridge Real Estate Capital American Land Company Red Apple Development City of Boca Raton Grove Bank&Trust Atlantic Pacific Companies Related Group City of Coconut Creek Heartland Bank Bachow Ventures Richman Capital I City of Coral Springs Housing Trust Group Bergeron Development Rilea Group City of Coral Gables HSBC Bank USA Blue Water Developers Ross Realty Investments City of Fernandina Beach Hudson Valley Bank Brandon Companies Segbro Companies City of Fort Lauderdale Iberia Bank Bridge Development Servitas City of Hallandale Beach Israel Discount Bank Centerline Homes Stiles Corporation City of Hialeah International Finance Bank Charter Schools USA Taplin Companies City of Hollywood Ironstone Bank Codina Partners Terra City of Homestead Key Bank, N.A. Colliers International S Florida Trinsic Residential Group City of Oakland Park Landmark Bank Cornerstone Group Woolbright Development City of Miami Beach Legacy Bank of Florida Crocker Partners ZOM Companies City of Miramar Locality Bank Cymbal Development CORPORATE/COMPANIES City of Oakland Park Mack RE Strategies Dezer Properties Aelion Enterprises City of Sunny Isles Beach 3390 WALTER DUKE + PARTNERS .:OMMER. IAI.. REAL ESTATE @,..UATI .N Partial Client List City of Sunrise Society of New Saavedra Goodwin City of West Palm Beach LIFE COMPANIES Shutts,LLP City of Wilton Manors AEGON USA Realty Advisors Tripp Scott Fort Lauderdale DDA Aetna Life Insurance White&Case,LLP Fort Lauderdale Executive Airport Allstate Life Insurance Company MORTGAGE/WALL STREET First Housing Development Corp. Berkshire Life Insurance Co. Ackman Ziff First Housing Finance Corp. First Colony Life Insurance Co. AGM Financial Hialeah Housing Authority Genworth Financial Aztec Group Holy Cross Hospital Great American Life Insurance Co. Berkadia Housing Authority of Broward Guardian Life Insurance Berkshire Mortgage Finance County IDS Life Insurance Co, Chrysler Credit Corporation Housing Authority City of Ft.Laud. ING Life Insurance Dockerty Romer&Company Lee County Jefferson Pilot Life Insurance Co. Florida Bond&Mortgage Miami Parking Authority John Hancock Mutual Life Miami-Dade Housing Authority Lafayette Life Insurance Co. McDowell Housing Partners Life of Georgia Insurance Co. Monroe County Lincoln National Life Ins.Co. Palm Beach Housing Authority Met Life Mortgage Pasco Housing Authority Minnesota Life Insurance Co. Port of Palm Beach Mutual Life Insurance Co. Sarasota Manatee Airport Nationwide Life Insurance Authority New York Life School Board of Broward County New England Mutual Life South Florida Community Land Northwestern Mutual Life Trust Pacific Life Insurance Co. Town of Miami Lakes Principal Real Estate Investors Town of Southwest Ranches Provident Mutual United States Department of Prudential Insurance Corporation Justice Southern Farm Bureau Life United States Postal Service Insurance Vitas Healthcare State Farm Life Insurance INSTITUTIONAL/NON- Thrivent Financial for Lutherans PROFIT TransAmerica Life Aids Healthcare Foundation LAW FIRMS American Maritime Officers(AMO) Akerman LLP Archdioceses of Miami Arnstein&Lehr LLP Bonnet House Museum&Gardens Berger Singerman LLP Boys & Girls Club of Broward Brinkley Morgan Solomon County Buchanan Ingersoll&Rooney PC Broward Health Cooney Trybus Kwavnick Peets CSC of Broward County Dunay, Miskel&Backman Dan Marino Foundation Frank Weinberg&Black, PL First Housing Corporation Greenberg Traurig Florida Inland Navigation District Gunster Habitat for Humanity Lochrie&Chakas,PA Henderson Behavioral Health Loving Scully Law Group Holy Cross/Trinity Health Mastriana&Christiansen,PA Housing Trust Group Mombach, Boyle, Hardin & Las Olas Chabad Jewish Center Simmons, P.A. Memorial Healthcare Systems Moskowitz, Mandell, Salim & Nova Southeastern University Simowitz Salvation Army Nexterra Law South Broward Hospital District Olive Judd Urban League Rafool Law Firm Volunteers of America Rice Pugatch Robinson Storfer & Watchtower Bible and Tract Cohen 3391