Agenda 05/12/2020 Item #14B 1 (Purchase Agreement Del's Corner)05/12/2020
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting as the Community
Redevelopment Agency Board, approve an Agreement for Sale and Purchase to acquire Del’s
Corner consisting of three contiguous properties located on the southeast corner of Bayshore Drive
and Thomasson Drive, recognize and appropriate Bayshore CRA Fund (187) carry forward,
establish budget for the Triangle Property sale, and authorize necessary budget amendments.
OBJECTIVE: To acquire the three contiguous properties for future public use for the
Bayshore/Gateway Triangle CRA (BGTCRA).
CONSIDERATIONS: On January 16, 2020, the County Manager received a correspondence from Mrs.
Theresa Ackerman providing Collier County the opportunity to the purchase Del’s Corner.
The Seller's property is comprised of three contiguous parcels totaling 1.84 +/- acres. The existing store
and warehouse (.44 +/- acres) is zoned C-5, the dry storage (.77 +/acres) is zoned C-3 and C-5, and the
vacant lot (.63 +/- acres) is zoned RMF-6. All parcels have the Bayshore Mixed Use District (BMUD)
overlay.
Del’s Store is located at 2808 Thomasson Drive and is owner operated. The warehouse located at the
same address has a tenant on a verbal month to month lease. A boat storage business is located at 4825
Bayshore Drive. The business has a verbal month to month lease. The County’s standard Agreement for
Sale and Purchase has been modified to include a provision regarding the boat storage and warehouse
business. The provision requires that the County provide the businesses with a termination letter and that
the business shall vacate the premises within 60 days after receipt of termination letter. Purchaser and
Seller will agree upon the dedication verbiage and location of the memorial marker.
The BGTCRA views the properties proposed for acquisition as a very important piece of the continued
redevelopment of the Bayshore area. Planned infrastructure improvements are underway along the
Thomasson Drive corridor, which will enhance future opportunities for development of the property.
Several entities and groups existing in the area are interested in possible partnerships, and the acquisition
of the property will allow the CRA to ensure that future uses are compatible with the recently updated
Redevelopment Plan.
Two independent appraisers established valuation for the properties. The first appraisal is dated March 5,
2020 by Rachel M. Zucchi, MAI, CCIM, of RKL Appraisal and Consulting, estimated the current market
value of $2,110,000. The second appraisal is dated March 6, 2020 by Gerald A. Hendry, MAI, CCIM, of
Maxwell Hendry Simmons, Real Estate Appraisers and Consultants, estimated the current market value of
$2,125,000. Collier County's in-house Sr. Real Estate Appraiser prepared an appraisal report review and
determined the average value of both appraisals is $2,118,000 for the properties.
The Agreement for Sale and Purchase has been reviewed and approved by the County Attorney’s Office.
The location map is attached for reference.
ADVISORY BOARD RECOMMENDATION: On April 7-8, 2020, CRA staff contacted each member
of the Bayshore Gateway Triangle Local Redevelopment Advisory Board to seek input on the purchase of
the Ackerman property. This was done due to the cancellation of all Advisory Board meetings due to the
COVID-19 Virus State of Emergency. Staff received support from seven of the nine members to
purchase the property with the understanding that the timeline to execute the Agreement for Sale and
Purchase should give more clarity on closing of the sale of the CRA-owned Triangle Properties and
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alleviation of associated debt.
FISCAL IMPACT: Within the CRA financial program there are several pending matters that have been
considered. The most significant is the pending sale of the Triangle Property and the related CRA Series
2017 Taxable Note liability. The Note presently has a principal balance of $3,857,735 which will be
extinguished upon completion of the Triangle Property sale. Other pending uses of CRA reserves and
fund balance include a $500,000 payment for relocating the Crown Castle cell tower (prerequisite to the
Triangle sale), the estimated construction cost of $500,000 for the parking lot at 3221 Bayshore Drive
and $100,000 for connectivity design at the 17 Acre CRA site located at 4265 Bayshore Drive.
The proposed Agreement for Sale and Purchase includes a 120-day due diligence period, which is
sufficient time to gain clarity on the closing date of the Triangle Property and alleviation of the associated
debt.
The total cost of the acquisition should not exceed $2,126,600 ($2,118,000 for the purchase price and
$8,600 for a title commitment, title policy, closing costs and recording of the documents). If required, a
Phase II environmental study would add as much as $25,000 to the cost of acquisition. The proposed
source of funding is Bayshore CRA Fund (187). Budgeted CRA reserves currently total $2,155,400 and
are sufficient to accommodate the proposed acquisition. In addition, unappropriated carryforward of
$1,044,183 is available to fund the other pending projects and maintain a capital reserve balance of
$420,483.
The various budget actions associated with the Triangle Property sale involve proceeds of approximately
$6,372,959, paying off the CRA Series 2017 Taxable Note, approximately $3,400,000, recognizing the
cell tower relocation payment of $500,000, recording the $38,200 cash value of related Voluntary Tax
Cleanup Credits provided to the Seller, returning debt service reserves in Fund (287) to Bayshore CRA
Fund (187), and increasing Bayshore CRA reserves by approximately $2,784,759.
Budgets for the Ackerman property acquisition, parking lot construction, the 17 acre site design and the
Triangle Property sale will be established at this time through budget amendm ents reclassifying existing
reserves, recognizing and appropriating Bayshore CRA Fund (187) carryforward and Triangle sale
proceeds.
LEGAL CONSIDERATIONS: The tenancy with the boat storage business and warehouse business are
month to month and therefore Sections 83.01 and 83.03 of the Florida Statutes require no less than 15
days notice of termination to the tenant. As such, the 60 days set forth in the Agreement is appropriate.
This item has been approved as to form and legality and requires a majori ty vote for Board approval. -
JAB
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan.
RECOMMENDATION: That the Board:
1. Approve the attached Agreement for Sale and Purchase.
2. Authorize the Chairman to execute the Agreement and any additional closing documents, and accept
the Warranty Deed, once approved by the County Attorney’s Office.
3. Authorize staff to prepare related vouchers and warrants for payment.
4. Recognize and appropriate carry forward.
5. Establish the Triangle Property sale budget.
6. Authorize necessary budget amendments.
7. Direct the County Manager or his designee to proceed to acquire the Property and to follow all
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appropriate closing procedures, to acquire and obtain clear title to the Property, and to record any and
all necessary documents (once approved by the County Attorney’s Office) in the Public Records of
Collier County, Florida.
Prepared By: Sonja Stephenson, Sr. Property Acquisition Specialist, Facilities Management Division
ATTACHMENT(S)
1. Agreement for Sale and Purchase (PDF)
2. Location Map (PDF)
3. [Linked] Maxwell Hendry Appraisal report (PDF)
4. [Linked] RKL Appraisal Report (PDF)
5. Triangle Closing Summary (PDF)
6. Ackerman - Triangle BAs 5-4-20 (PDF)
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05/12/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 14.B.1
Doc ID: 12239
Item Summary: Recommendation that the Board of County Commissioners, acting as the
Community Redevelopment Agency Board, approve an Agreement for Sale and Purchase to acquire Del’s
Corner consisting of three contiguous properties located on the southeast corner of Bayshore Drive and
Thomasson Drive, recognize and appropriate Bayshore CRA Fund (187) carry forward, establish budget
for the Triangle Property sale, and authorize necessary budget amendments. (Debrah Forester, Direct or,
Community Redevelopment Agency)
Meeting Date: 05/12/2020
Prepared by:
Title: Property Acquisition Specialist – Facilities Management
Name: Sonja Stephenson
04/20/2020 5:16 PM
Submitted by:
Title: – County Manager's Office
Name: Debrah Forester
04/20/2020 5:16 PM
Approved By:
Review:
Facilities Management Toni Mott Additional Reviewer Completed 04/20/2020 5:43 PM
Facilities Management Damon Grant Additional Reviewer Completed 04/20/2020 8:31 PM
County Manager's Office Debrah Forester Additional Reviewer Completed 04/21/2020 8:11 AM
Public Utilities Department Dan Rodriguez Additional Reviewer Completed 04/21/2020 8:20 AM
Corporate Business Operations Sean Callahan Additional Reviewer Completed 04/28/2020 2:13 PM
Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 04/29/2020 9:33 AM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Skipped 04/29/2020 11:08 AM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 04/29/2020 11:44 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/29/2020 11:59 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/29/2020 2:02 PM
Budget and Management Office Ed Finn Additional Reviewer Completed 05/06/2020 10:11 AM
Facilities Management Michael Cox Director - Facilities Skipped 04/21/2020 7:17 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 05/06/2020 11:00 AM
Board of County Commissioners MaryJo Brock Meeting Pending 05/12/2020 9:00 AM
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Project: Del's Corner
Folio No(s): 52600080009
52600120008
52600160000
AGREEMENT FOR SALE AND PURCHASE
THIS AGREEMENT is made and entered into by and between THERESA
ACKERMAN, a widow (hereinafter referred to as "seller''), and Collier County, a political
subdivision of the State of Florida, (hereinafter referred to as "Purchaser,,).
WITNESSETH
WHEREAS, Seller is the owner of that certain parcel of real property (hereinafter
referred to as "Property"), located in Collier County, State of Florida, and being more
particularly described in Exhibit "A", attached hereto and made a part hereof by reference.
WHEREAS, Purchaser is desirous of purchasing the Property, subject to the
conditions and other agreements hereinafter set forth, and seller is agreeable to such
sale and to such conditions and agreements.
NOW, IHEREFORE, and for and in consideration of the premises and the
respective undertakings of the parties hereinafter set forth and the sum of ren Dollars
($10.00), the receipt and sufficiency of which is hereby acknowledged, it is agreed as
follows:
I. AGREEMENT
1.01 ln consideration of the purchase price and upon the terms and conditions
hereinafter set forth, Seller shall sell to Purchaser and Purchaser shall purchase
from Seller the Property, described in Exhibit "A".
2.01 The purchase price (the "Purchase Price") for the Property shall be Two
Million, one hundred eighteen thousand Dollars (92,1 1 8,000) U.S. Currency payable
at time of closing.
il. clo SING
3.01 The Closing (THE "CLOSING DATE", "DATE OF CLOSING", OR
'CLOSING") of the transaction shall be held on or before one hundred twenty (120)
days following execution of this Agreement by the Purchaser, unless extended by
mutual written agreement of the parties hereto. The Closing shall be held at the
Collier County Attorney's Office, Administration Building, 3299 Tamiami Trail East,
Naples, Florida. The procedure to be followed by the parties in connection with the
Closing shall be as follows:
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II. PAYMENT OF PURCHASE PRICE
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Packet Pg. 132 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
3.0't 1 Seller shall convey a marketable title free of any liens, encumbrances,
exceptions, or qualifications. Marketable title shall be determined according to
applicable title standards adopted by the Florida Bar and in accordance with
law. At the Closing, the Seller shall cause to be delivered to the purchaser the
items specified herein and the following documents and instruments duly
executed and acknowledged, in recordable form:
3.0111 Warranty Deed in favor of Purchaser conveying tifle to the
Property, free and clear of all liens and encumbrances other than:
(a) The lien for current taxes and assessments.
(b) Such other easements, restrictions or conditions of record
3.0'l 12 Combined Purchaser-Seller closing statement.
3.0113 A "Gap," Tax Proration, Owner's and Non-Foreign Affidavit,,, as
required by Section 1445 of the lnternal Revenue Code and as required
by the title insurance undenrrriter in order to insure the "gap" and issue the
policy contemplated by the title insurance commitment.
3.012 At the Closing, the Purchaser, or its assignee, shall cause to be delivered to
the Seller the following:
3.0121 A negotiable instrument (County Warrant) in an amount equal to
the Purchase Price. No funds shall be disbursed to Seller until the Tifle
Company verifies that the state of the title to the Property has not changed
adversely since the date of the last endorsement to the commitment,
referenced in Section 4.01 1 thereto, and the Title Company is irrevocably
committed to pay the Purchase Price to Seller and to issue the Owner,s
title policy to Purchaser in accordance with the commitment immediately
after the recording of the deed.
3.0122 Funds payable to the Seller representing the cash payment due
at Closing in accordance with Article lll hereof, shall be subject to
adjustment for prorations as hereinafter set forth.
3.02 Each party shall be responsible for payment of its own attorney,s fees. Seller,
at its sole cost and expense, shall pay at Closing all documentary stamp taxes due
relating to the recording of the Wananty Deed, in accordance with Chapter 201.01,
Florida Statutes, and the cost of recording any instruments necessary to clear
Selle/s title to the Property. The cost of the Owner's Form B Tifle policy, issued
pursuant to the Commitment provided for in Section 4.011 below, shall be paid by
Purchaser. The cost of the title commitment shall also be paid by Purchaser.
Paoe 2 of 10
3.0114 W-9 Form, "Request for Taxpayer ldentification and Certification,,
as required by the Internal Revenue Service.
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Packet Pg. 133 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
3.03 Purchaser shall pay for the cost of recording the Warranty Deed. Real property
taxes shall be prorated based on the current year's tax with due allowance made for
maximum allowable discount, homestead and any other applicable exemptions and
paid by Seller. lf Closing occurs at a date which the current year,s millage is not
fixed, taxes will be prorated based upon such prior year's millage.
IV, REQUIR EMENTS AND CONDITIONS
4.01 Upon execution of this Agreement by both parties or at such other time as
specified within this Article, Purchaser and/or Seller, as the case may be, shall
perform the following within the times stated, which shall be conditions precedent to
the Closing;
4.011 Within thirty (30) days after the date hereof, Purchaser shall obtain as
evidence of title an ALTA Commitment for an Owner's Title lnsurance policy
(ALTA Form B-1970) covering the Property, together with hard copies of all
exceptions shown thereon. Purchaser shall have thirty (30) days, following
receipt of the title insurance commitment, to notify Seller in writing of any
objection to title other than liens evidencing monetary obligations, if any, which
obligations shall be paid at closing. lf the title commitment contains exceptions
that make the title unmarketable, Purchaser shall deliver to the Seller written
notice of its intention to waive the applicable contingencies or to terminate this
Agreement.
4.012 lf Purchaser shall fail to advise the Seller in writing of any such objections
in Seller's title in the manner herein required by this Agreement, the title shall be
deemed acceptable. Upon notification of Purchaser's objection to tifle, Seller
shall have thirty (30) days to remedy any defects in order to convey good and
marketable title, except for liens or monetary obligations which will be satisfied
at Closing. Seller, at its sole expense, shall use its best efforts to make such
title good and marketable. ln the event Seller is unable to cure said objections
within said time period, Purchaser, by providing written notice to Seller within
seven (7) days after expiration of said thirty (30) day period, may accept title as
it then is, waiving any objection; or Purchaser may terminate the Agreement. A
failure by Purchaser to give such written notice of termination within the time
period provided herein shall be deemed an election by Purchaser to accept the
exceptions to title as shown in the title commitment.
4.013 Purchaser shall have the option, at its own expense, to obtain a current
survey of the Property prepared by a surveyor licensed by the State of Florida.
No adjustments to the Purchase Price shall be made based upon any change to
the total acreage referenced in Exhibit "A", if any. Seller agrees to furnish any
existing surveys of the Property, if any, to Purchaser within thirty (30) days of
execution of this Agreement.
V. APPRAISAL P ERIOD
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5.01 The provision was deleted as an in-house appraisal was obtained per
guidelines set forth in Section Two (4) of Ordinance 2007 -28.
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Packet Pg. 134 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
1. Soil tests and engineering studies indicate that the Property can be developed
without any abnormal demucking, soil stabilization or foundations.
2. There are no abnormal drainage or environmental requirements to the
development of the Property.
3. The Property
environmental
contamination.
ts tn
laws
compliance with all applicable State
and the Property is free from any
and Federal
pollution or
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VI. INSPECTION PERIOD
6.01 Purchaser shall have one hundred and twenty (120) days from the date of this
Agreement, ("lnspection Period"), to determine through appropriate investigation
that:
4. The Property can be utilized for its intended purpose.
6.02 lf Purchaser is not satisfied, for any reason whatsoever, with the results of
any investigation, Purchaser shall deliver to Seller prior to the expiration of the
lnspection Period, written notice of its intention to waive the applicable contingencies
or to terminate this Agreement. lf Purchaser fails to notify the Seller in writing of its
specific objections as provided herein within the lnspection Period, it shall be
deemed that the Purchaser is satisfied with the results of its investigations and the
contingencies of this Article Vl shall be deemed waived. ln the event Purchaser
elects to terminate this Agreement because of the right of inspection, Purchaser
shall deliver to Seller copies of all engineering reports and environmental and soil
testing results commissioned by Purchaser with respect to the Property.
6.03 Purchaser and its agents, employees and servants shall, at their own risk
and expense, have the right to go upon the Property for the purpose of surveying
and conducting site analyses, soil borings and all other necessary investigation.
Purchaser shall, in performing such tests, use due care and shall indemnify Seller
on account of any loss or damages occasioned thereby and against any claim made
against Seller as a result of Purchaser's entry. Seller shall be notified by Purchaser
no less than twenty-four (24) hours prior to said inspection of the Property.
VII. INSPECTION
7.01 Seller acknowledges that the Purchaser, or its authorized agents, shall
have the right to inspect the Property at any time prior to the Closing.
VIII. POSSESSION
8.01 Purchaser shall be entitled to full possession of the Property at Closing.
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Packet Pg. 135 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
9.01 Ad valorem taxes next due and payable, after closing on the property, shall
be prorated at Closing based upon the gross amount of 2019 taxes, and shall be
paid by Seller.
10.02 Should any litigation or other action be commenced between the parties
concerning the Property or this Agreement, the party prevailing in such litigation or
other action shall be entitled, in addition to such relief as may be granted, to a
reasonable sum for lts attorney's fees, paralegal charges and all fees and costs for
appellate proceedings in such litigation or other action; which sum may be
determined by the court or in a separate action brought for that purpose.
10.03 The parties acknowledge that the remedies described herein and in the
other provisions of this Agreement provide mutually satisfactory and sufficient
remedies to each of the parties, and take into account the peculiar risks and
expenses of each of the parties.
XI. SELLER'S AND PURCHASER'S REPRESENTATIONS AND WARRANTIES
1 1.01 Seller and Purchaser represent and warrant the following:
11.01 1 Seller and Purchaser have full right and authority to enter into and to
execute this Agreement and to undertake all actions and to perform all tasks
required of each hereunder. Seller is not presently the subject of a pending,
threatened or contemplated bankruptcy proceed in g.
11.012 Seller has full right, power, and authority to own and operate the
Property, and to execute, deliver, and perform its obligations under this
Agreement and the instruments executed in connection herewith, and to
consummate the transaction contemplated hereby. All necessary authorizations
and approvals have been obtained authorizing Seller and Purchaser to execute
and consummate the transaction contemplated hereby. At Closing, certified
copies of such approvals shall be delivered to Purchaser and/or Seller, if
necessary.
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IX. PRORATIONS
X. TERMINATION AND REMEDIES
10.01 lf Seller shall have failed to perform any of the covenants and/or
agreements contained herein which are to be performed by Seller, within ten (10)
days of written notification of such failure, Purchaser may, at its option, terminate
this Agreement by giving written notice of termination to Seller. Purchaser shall
have the right to seek and enforce all rights and remedies available at law or in
equity to a contract vendee, including the right to seek specific performance of this
Agreement.
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Packet Pg. 136 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
1'1 .013 The warranties set forth in this Article shall be true on the date of this
Agreement and as of the date of Closing. Purchaser's acceptance of a deed to
the said Property shall not be deemed to be full performance and discharge of
every agreement and obligation on the part of the Seller to be performed
pursuant to the provisions of this Agreement.
1 1 .014 Seller represents that it has no knowledge of any actions, suits, claims,
proceedings, litigation or investigations pending or threatened against Seller, at
law, equity or in arbitration before or by any federal, state, municipal or other
governmental instrumentality that relate to this agreement or any other property
that could, if continued, adversely affect Selle/s ability to sell the property to
Purchaser according to the terms of this Agreement.
11.015 No party or person other than Purchaser has any right or option to
acquire the Property or any portion thereof.
11.016 Until the date fixed for Closing, so long as this Agreement remains in
force and effect, Seller shall not encumber or convey any portion of the Property
or any rights therein, nor enter into any agreements granting any person or entity
any rights with respect to the Property or any part thereof, without first obtaining
the written consent of Purchaser to such conveyance, encumbrance, or
agreement which consent may be withheld by Purchaser for any reason
whatsoever.
11 .017 Seller represents that there are no incinerators, septic tanks or
cesspools on the Property; all waste, if any, is discharged into a public sanitary
sewer system; Seller represents that they have (it has) no knowledge that any
pollutants are or have been discharged from the Property, directly or indirecfly
into any body of water. Seller represents the Property has not been used for the
production, handling, storage, transportation, manufacture or disposal of
hazardous or toxic substances or wastes, as such terms are defined in
applicable laws and regulations, or any other activity that would have toxic
results, and no such hazardous or toxic substances are currently used in
connection with the operation of the Property, and there is no proceeding or
inquiry by any authority with respect thereto. Seller represents that they have (it
has) no knowledge that there is ground water contamination on the Property or
potential of ground water contamination from neighboring properties. Seller
represents no storage tanks for gasoline or any other substances are or were
located on the Property at any time during or prior to Seller's ownership thereof.
Seller represents none of the Property has been used as a sanitary landfill.
11,018 Seller has no knowledge that the Property and Seller's operations
concerning the Property are in violation of any applicable Federal, State or local
statute, law or regulation, or ofany notice from any governmental body has been
served upon Seller claiming any violation of any law, ordinance, code or
regulation or requiring or calling attention to the need for any work, repairs,
construction, alterations or installation on or in connection with the property in
order to comply with any laws, ordinances, codes or regulation with which Seller
has not complied.
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Packet Pg. 137 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
1 1 .019 There are no unrecorded restrictions, easements or rights of way (other
than existing zoning regulations) that restrict or affect the use of the property,
and there are no maintenance, construction, advertising, management, leasing,
employment, service or other contracts affecting the Property.
11.020 Seller has no knowledge that there are any suits, actions or arbikation,
bond issuances or proposals therefor, proposals for public improvement
assessments, pay-back agreements, paving agreements, road expansion or
improvement agreements, utility moratoriums, use moratoriums, improvement
moratoriums, administrative or other proceedings or governmental
investigations or requirements, formal or informal, existing or pending or
threatened which affects the Property or which adversely affects Seller,s ability
to perform hereunder; nor is there any other charge or expense upon or related
to the Property which has not been disclosed to Purchaser in writing prior to the
effective date of this Agreement.
11.021 Seller acknowledges and agrees that Purchaser is entering into this
Agreement based upon Seller's representations stated above and on the
understanding that Seller will not cause the zoning or physical condition of the
Property to change from its existing state on the effective date of this Agreement
up to and including the Date of Closing. Therefore, Seller agrees not to enter
into any contracts or agreements pertaining to or affecting the Property and not
to do any act or omit to perform any act which would change the zoning or
physical condition of the Property or the governmental ordinances or laws
governing same. Seller also agrees to notify Purchaser promptly of any change
in the facts contained in the foregoing representations and of any notice or
proposed change in the zoning, or any other action or notice, that may be
proposed or promulgated by any third parties or any governmental authorities
having jurisdiction of the development of the property which may restrict or
change any other condition of the Property.
1 1 .022 At the Closing, Seller shall deliver to Purchaser a statement (hereinafter
called the "Closing Representative Statement") reasserting the foregoing
representations as of the Date of Closing, which provisions shall survive the
Closing.
11.023 Seller represents, warrants and agrees to indemnify, reimburse, defend
and hold Purchaser harmless from any and all costs (including attorney,s fees)
asserted against, imposed on or incurred by Purchaser, directly or indirecily,
pursuant to or in connection with the application of any federal, state, local or
common law relating to pollution or protection of the environment which shall be
in accordance with, but not limited to, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, 42 U.S.C. Section 960.1 , et
seq., ("CERCLA" or "Superfund"), which was amended and upgraded by the
Superfund Amendment and Reauthorization Act of 1986 ('SARA"), including any
amendments or successor in function to these acts. This provision and the rights
of Purchaser, hereunder, shall survive Closing and are not deemed satisfied by
conveyance of title.
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Packet Pg. 138 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
11.024 Any loss and/or damage to the Property between the date of this
Agreement and the date of Closing shall be Seller's sole risk and expense.
xil. NoTt ES
12.01 Any notice, request, demand, instruction or other communication to be given
to either party hereunder shall be in writing, sent by registered, or certified mail,
return receipt requested, postage prepaid, addressed as follows:
lf to Purchaser Real Property Management Department
3335 Tamiami Trail East - Suite 101
Naples, Florida 341 12
With a copy to Jeff A. Klatzkow, County Attorney
Office of the County Attorney
Administration Building
3299 Tamiami Trail East
Naples, Florida 341 12
lf to Seller Theresa Ackerman
5610 Cynthia Lane
Naples, FL 34112-2309
\Mth a copy to N/A
12.02 The addressees and addresses for the purpose of this Article may be
changed by either party by giving written notice of such change to the other party in
the manner provided herein. For the purpose of changing such addresses or
addressees only, unless and until such written notice is received, the last addressee
and respective address stated herein shall be deemed to continue in effect for all
purposes.
XIII. REAL ESTATE BROKERS
13.01 Any and all brokerage commissions or fees shall be the sole responsibility of
the Seller. Seller shall indemnify Purchaser and hold Purchaser harmless from and
against any claim or liability for commission or fees to any broker or any other
person or party claiming to have been engaged by Seller as a real estate broker
salesman or representalive, in connectioi w]tfr this Agreement. Seller agrees to
pay any and all commissions or fees at closing pursuant to the terms of a separate
agreement, if any.
XIV. MISCELLANEOUS
14.01 This Agreement may be executed in any manner of counterparts which
together shall constitute the agreement of the parties.
14.02 This Agreement and the terms and provisions hereof shall be effective as of
the date this Agreement is executed by both parties and shall inure to the benefit of
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Packet Pg. 139 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
and be binding upon the parties hereto and their respective heirs, executors,
personal representatives, successors, successor trustee, and assignees whenever
the context so requires or admits.
14.03 Any amendment to this Agreement shall not bind any of the parties hereof
unless such amendment is in writing and executed and dated by purchaser and
Seller. Any amendment to this Agreement shall be binding upon purchaser and
Seller as soon as it has been executed by both parties.
'14.04 Captions and section headings contained in this Agreement are for
convenience and reference only; in no way do they define, describe, extend or limit
the scope or intent of this Agreement or any provisions hereof.
14.05 All terms and words used in this Agreement, regardless of the number and
gender in which used, shall be deemed to include any other gender or number as
the context or the use thereof may require.
14.06 No waiver of any provision of this Agreement shall be effective unless it is in
writing signed by the party against whom it is asserted, and any waiver of any
provision of this Agreement shall be applicable only to the specific instance to which
it is related and shall not be deemed to be a continuing or future waiver as to such
provision or a waiver as to any other provision.
14.07 lI any date specified in this Agreement falls on a Saturday, Sunday or legal
holiday, then the date to which such reference is made shall be extended to the next
succeeding business day.
14.08 Seller is aware of and understands that the "offer" to purchase represented
by this Agreement is subject to acceptance and approval by the Board of County
Commissioners of Collier County, Florida.
14.09 lf the Seller holds the Property in the form of a partnership, limited partnership,
corporation, trust or any form of representative capacity whatsoever for others,
Seller shall make a written public disclosure, according to Chapter 286, Florida
Statutes, under oath, of the name and address of every person having a beneficial
interest in the Property before Property held in such capacity is conveyed to collier
County. (lf the corporation is registered with the Federal Securities Exchange
Commission or registered pursuant to Chapter 517, Florida Statutes, whose stock
is for sale to the general public, it is hereby exempt from the provisions of Chapter
286, Florida Statutes.)
14.11 Purchaser will notify current tenants with a termination letter. Tenants will
have sixty (60) days to vacate premises upon receipt of termination letter.
14.12 Purchaser and seller will agree upon the dedication verbiage and location of
the memorial marker.
Page 9 of 10
@
14.10 This Agreement is governed and construed in accordance with the laws of
the State of Florida.
14.B.1.a
Packet Pg. 140 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
XV. ENTIREAGREEMENT
15.0'1 This Agreement and the exhibits attached hereto contain the entire
agreement between the parties, and no promise, representation, warranty or
covenant not included in this Agreement or any such referenced agreements has
been or is being relied upon by either party. No modification or amendment of this
Agreement shall be of any force or effect unless made in writing and executed and
dated by both Purchaser and Seller. Time is of the essence of this Agreement.
lN WITNESS WHEREOF, the parties hereto have signed below
AS TO PURCHASER:
ATTEST:
CRYSTAL K. KINZEL, Clerk
, Deputy Clerk
DATED ,l- 3.0 - 1o }c
WITNESSES
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
BY:
Burt L. Saunders, Chairman
Th eresa Ackerma
B
(sis natu re )
ame)
(sis n ure)
,ilr*tlt*tt-t,oe.q2;
(Printed Name)
Approved as to form and legality
Jennifer A. Belpedio
Assistant County Attorney
rinted
\A
..adp
\?'
Page 10 of 10
Dated ProjecVAcquisition Approved by BCC:_
DATED:-
AS TO SELLER:
14.B.1.a
Packet Pg. 141 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
Exhibit "A"
LOTS 1 AND 2, JONESVILLE, ACCORDING TO THE PLAT RECORDED
IN PLAT BOOK 4, PAGE 41, PUBLIC RECORDS OF COLLIER COUNTY,
FLORIDA.
AND
LOT 3, JONESVILLE, ACCORDING TO THE PLAT RECORDED IN PLAT
BOOK 4, PAGE 41, PUBLIC RECORDS OF COLLIER COUNTY,
FLORIDA.
AND
LOT 4, JONESVILLE, ACCORDING TO THE PLAT RECORDED IN PLAT
BOOK 4, PAGE 41, PUBLIC RECORDS OF COLLIER COUNTY,
FLORIDA.
@
14.B.1.a
Packet Pg. 142 Attachment: Agreement for Sale and Purchase (12239 : Del's Corner)
Location Map – Del’s Corner
DEL’S CORNER
14.B.1.b
Packet Pg. 143 Attachment: Location Map (12239 : Del's Corner)
Bayshore CRA Triangle Sale
Proceeds Distribution ‐ Preliminary Outline
Class 1 Triangle
Sum of FY20 FC Column Labels
Row Labels Uses Sources
187
Sale Proceeds
Triangle Gross Sale Amount 6,372,959
Cap
Triangle Addn'l Invest Tower Relocation 500,000
Triangle Addn'l Invest Certificate Cash for Buyer 38,200
287
Principal Payoff
Principal Bonds ‐ Triangle Sale Proceeds 3,400,000
Grand Total 3,938,200 6,372,959
Fund 187 Reserve Addition 2,434,759
Add Trans from 287 (Debt Reserve) 350,000
Addition to Reserves 2,784,759
C:\Users\edfinn\Desktop\a FY 21 BudgetTermp Holding\Management Offices\CRA\Project FY20 request Bayshore CRA & beautification Funds
14.B.1.e
Packet Pg. 144 Attachment: Triangle Closing Summary (12239 : Del's Corner)
BUDGET AMENDMENT REQUEST For Budget/Finance Use Only
BA#
JE #
BAR#
APH Date
187 Bayshore CRA
Fund No.Fund Description (type on line above)
Date Prepared:5/1/2020 (Attach Executive Summary)
Approved by BCC on: Item No.
Expense Budget Detail
Fund Center Title: Transfers Fund Center No.: 929010
Funded Program (Project) Title: 5-digit Fd Prog #:
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
929010 917870 Transfer to 787 2,751,600.00 252,115.53 3,003,715.53
-
Net Change to Budget 2,751,600.00$
Fund Center Title: Reserves Fund Center No.: 919010
Funded Program (Project) Title: 5-digit Fd Prog #:
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
919010 993000 Reserve for Capital (1,707,416.20) 2,127,900.00 420,483.80
-
Net Change to Budget (1,707,416.20)$
Revenue Budget Detail
Fund Center Title: Reserves Fund Center No.: 919010
Funded Program (Project) Title: 5-digit Fd Prog #:
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
919010 489200 Carry Forward 1,044,183.80 1,803,600.00 2,847,783.80
-
Net Change to Budget 1,044,183.80$
EXPLANATION -
Why are funds needed? (type below)
Where are funds available? (type below)
REVIEW PROCESS
Cost Center Director*:Date
Division Administrator*:Date
Budget Department:Date
Agency Manager Date
Finance Department:Date
Clerk to the Board Admin:Date
Inputted by:Date
BA number (SAP)
Funds are needed to accommodate the Ackerman Property acquisition, re-establish the Parking Lot construction
budget for the parking lot at 3221 Bayshore Drive and provide a design budget for the 17 Acre CRA lot. The
Ackerman property acquisition the Parking Lot and 17 acre project will be budgeted in CRA Capital Fund (787)
neccesitating the transfer.
From budgeted reserves and the appropriation of unbudgeted carry forward within Bayshore Gatewaty CRA Fund
(187)
14.B.1.f
Packet Pg. 145 Attachment: Ackerman - Triangle BAs 5-4-20 (12239 : Del's Corner)
BUDGET AMENDMENT REQUEST For Budget/Finance Use Only
BA#
JE #
BAR#
APH Date
787 Bayshore CRA Project Fund
Fund No. Fund Description (type on line above)
Date Prepared: 5/1/2020
Approved by BCC on: Item No.
Expense Budget Detail
Fund Center Title: Bayshore CRA Projects/Programs Fund Center No.: 138345
Funded Program (Project) Title: Ackerman-Dell's Corner 5-digit Fd Prog #: TBD
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
138345 TBD 631650 Abstract Fees 7,600.00 - 7,600.00
138345 TBD 631800 Environmental Consult 25,000.00 25,000.00
138345 TBD 649030 Clerks Recording Fees 1,000.00 1,000.00
138345 TBD 761100 Land Capital Outlay 2,118,000.00 - 2,118,000.00
Net Change to Budget 2,151,600.00$
Fund Center Title: Bayshore CRA Projects/Programs Fund Center No.: 138345
Funded Program (Project) Title: BSCRA Parking Lot - 3221 BS 5-digit Fd Prog #: TBD
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
138345 TBD 884200 Improvements General 500,000.00 - 500,000.00
-
Net Change to Budget 500,000.00$
Fund Center Title: Bayshore CRA Projects/Programs Fund Center No.: 138345
Funded Program (Project) Title: 17 Acre Parcel - 4265 BS 5-digit Fd Prog #: TBD
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
138345 TBD 634999 Other Contractual 100,000.00 - 100,000.00
-
Net Change to Budget 100,000.00$
Revenue Budget Detail
Fund Center Title: Transfers Fund Center No.: 929010
Funded Program (Project) Title: Fund 787 Res/Xfers 5-digit Fd Prog #: 99787
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
929010 99787 481187 Transfer from (187) 2,751,600.00 252,115.53 3,003,715.53
-
Net Change to Budget 2,751,600.00$
EXPLANATION -
Why are funds needed? (type below)
Where are funds available? (type below)
REVIEW PROCESS
Cost Center Director*:Date
Division Administrator*:Date
Budget Department:Date
Agency Manager Date
Finance Department:Date
Clerk to the Board Admin:Date
Inputted by:Date
BA number (SAP)
(Attach Executive Summary)
Funds are needed to accommodate the Ackerman Property acquisition, re-establish the Parking Lot construction
budget for the parking lot at 3221 Bayshore Drive and establish the design budget for the 17 acre site located at
4265 Bayshore Drive.
Transfer from Bayshore CRA Operating Fund (187).
14.B.1.f
Packet Pg. 146 Attachment: Ackerman - Triangle BAs 5-4-20 (12239 : Del's Corner)
BUDGET AMENDMENT REQUEST For Budget/Finance Use Only
BA#
JE #
BAR#
APH Date
187 Bayshore CRA
Fund No.Fund Description (type on line above)
Date Prepared: 5/4/2020 (Attach Executive Summary)
Approved by BCC on: Item No.
Expense Budget Detail
Fund Center Title: Bayshore CRA Ops Fund Center No.: 138325
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
138325 763100
Improve General (certificates addn'l
Invest & tower relocate)538,200.00 100,000.00 638,200.00
Net Change to Budget 538,200.00$
Fund Center Title: Reserves Fund Center No.: 919010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
919010 991300 Reserves for Contingency 100,000.00 27,500.00 127,500.00
919010 991300 Reserves for Unfunded Requests 2,684,759.00 -
Net Change to Budget 2,784,759.00$
Fund Center Title: Transfers Fund Center No.: 929010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
929010 912870 Transfer to (287)3,400,000.00 989,500.00 4,389,500.00
-
Net Change to Budget 3,400,000.00$
Revenue Budget Detail
Fund Center Title: Bayshore CRA Fund Center No.: 138325
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
138325 364220 Land Sales 6,372,959.00 - 6,372,959.00
-
Net Change to Budget 6,372,959.00$
Fund Center Title: Transfers Fund Center No.: 929010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
929010 481287 Transfer from 287 350,000.00 - 350,000.00
-
Net Change to Budget 350,000.00$
Why are funds needed? (type below)-
Where are funds available? (type below)
REVIEW PROCESS
Cost Center Director*:Date
Division Administrator*:Date
Budget Department:Date
Agency Manager Date
Finance Department:Date
Clerk to the Board Admin:Date
Inputted by:Date
BA number (SAP)
Recognize and appropriate land sale proceeds from sale of the Triangle Property deposited in Fund (187) and transfered to
CRA debt service fund (287) for principal prepayment with a portion of proceeds allocated for tower relocation and
recordiong cash payment for pollution cewrticicates. The estimated balance of $2,784,795 is added to reserves.
Funds are available from land sale proceeds and the transfer of Debt Service reserves from Fund (287) upon payoff of the
Series 2017 CRA Taxable Note.
14.B.1.f
Packet Pg. 147 Attachment: Ackerman - Triangle BAs 5-4-20 (12239 : Del's Corner)
BUDGET AMENDMENT REQUEST For Budget/Finance Use Only
BA#
JE #
BAR#
APH Date
287 Bayshore/Gateway Triangle CRA Debt Service
Fund No.Fund Description (type on line above)
Date Prepared: 5/4/2020 (Attach Executive Summary)
Approved by BCC on: Item No.
Expense Budget Detail
Fund Center Title: Redeem LT Debt Fund Center No.: 939010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
939010 871200 Principal 3,400,000.00 851,000.00 4,251,000.00
-
Net Change to Budget 3,400,000.00$
Fund Center Title: Transfer Fund Center No.: 929010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
929010 871200 Transfer to CRA Fund 187 350,000.00 - 350,000.00
-
Net Change to Budget 350,000.00$
Fund Center Title: Reserves Fund Center No.: 919010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
919010 991000 Reserves-Contingency (20,000) 20,000 -
919010 992000 Reserves-Debt (330,000) 330,000 -
Net Change to Budget (350,000)
Revenue Budget Detail
Fund Center Title: Transfers Fund Center No.: 929010
Funded Program (Project) Title: 5-digit Fd Prog #:
(only one Fund Center/Funded Program should be entered into this section. If amendment is for Funded Program, must enter Fund Center info)
Fund Funded Commit Commitment Item Increase Current Revised
Center Program Item Description (Decrease) Budget Budget
929010 481187 Trans from 187 3,400,000.00 989,500.00 4,389,500.00
-
Net Change to Budget 3,400,000.00$
EXPLANATION -
Why are funds needed? (type below)
Where are funds available? (type below)
REVIEW PROCESS
Cost Center Director*:Date
Division Administrator*:Date
Budget Department:Date
Agency Manager Date
Finance Department:Date
Clerk to the Board Admin:Date
Inputted by:Date
BA number (SAP)
Funds are provided from land sale proceeds from sale of the Triangle Property deposited in Fund (187) and
transfered to CRA debt service fund (287) for principal prepayment.
Funds are available from land sale proceeds transferred from Fund (187).
14.B.1.f
Packet Pg. 148 Attachment: Ackerman - Triangle BAs 5-4-20 (12239 : Del's Corner)
Appraisal Report
Improved Commercial Property/Vacant Residential Multi-family Property
Southeast corner of Bayshore Drive and Thomasson Drive
Naples, Collier County, Florida 34112
Date of Valuation: 11 February 2020
Date of Report: 6 March 2020
PO #: 4500201732
File Name: 20026001 – Del’s Market
Prepared For
Collier County Facilities Management/Real Property
3335 Tamiami Trail E, Suite 101
Naples, Florida 34112
6 March 2020
Collier County Facilities Management/Real Property
3335 Tamiami Trail E, Suite 101
Naples, Florida 34112
Attention: Mr. Roosevelt Leonard, R/W-AC, Senior Review Appraiser
Re: Appraisal of properties located on the southeast corner of Bayshore Drive and Thomasson Drive in
Naples, Florida
PO #: 4500201732
Dear Mr. Leonard:
As you requested, we have performed an appraisal of the above-referenced property, which is legally described
within the attached report. This letter is an integral part of, and inseparable from, this report.
The purpose of this appraisal is to arrive at an opinion of market value of the subject properties in their “as-
is” condition. The interest being appraised is the undivided fee simple interest in the land and existing
improvements as if otherwise free and clear of all liens, mortgages, encumbrances and/or encroachments.
The intended use of this appraisal is understood to be for potential acquisition of the properties. The intended
users of this appraisal report are Bayshore/Gateway Triangle CRA, Collier County Facilities Management/Real
Property, and Collier County Board of County Commissioners.
The subject property was inspected on 11 February 2020 by Gerald A. Hendry, MAI, CCIM. This appraisal
report is intended to conform to the Uniform Standards of Professional Appraisal Practice & the Code of
Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. This appraisal
is made subject to the Assumptions and Conditions contained within the body of this report.
Based upon our analysis of the data contained within the attached appraisal report, it is our opinion that the
“as-is” market values of the fee simple interest in the subject properties, as of 11 February 2020, are
Parcel A – Vacant Land (Folio #52600160000)
TWO HUNDRED FORTY FIVE THOUSAND DOLLARS - $245,000
Parcel B – “Del’s Market Property” (2808 Thomasson Drive)
ONE MILLION TWO HUNDRED FIVE THOUSAND DOLLARS - $1,205,000
Parcel C – “Boat Sales/Storage” (4825 Bayshore Drive)
SIX HUNDRED SEVENTY FIVE THOUSAND DOLLARS - $675,000
Respectfully submitted,
Gerald A. Hendry, MAI, CCIM
State-Certified General Real Estate Appraiser
RZ 2245
TABLE OF CONTENTS
SEC. I: INTRODUCTION ............................................................................................................................................. 1
SEC. II: SCOPE OF WORK ......................................................................................................................................... 3
EXTENT OF PROPERTY IDENTIFICATION ............................................................................................................................. 3
EXTENT OF INSPECTION ................................................................................................................................................. 3
TYPE AND EXTENT OF DATA RESEARCH ............................................................................................................................ 3
TYPE AND EXTENT OF ANALYSIS ...................................................................................................................................... 3
ASSUMPTIONS .............................................................................................................................................................. 5
EXTRAORDINARY ASSUMPTIONS ...................................................................................................................................... 5
HYPOTHETICAL CONDITIONS ........................................................................................................................................... 5
COMPETENCY PROVISION ............................................................................................................................................... 6
SEC. III: REGIONAL AND MARKET AREA ANALYSIS .................................................................................................. 7
SOUTHWEST FLORIDA / COLLIER COUNTY DATA ................................................................................................................ 7
CONCLUSION / LIFE CYCLE STAGE ................................................................................................................................ 11
MARKET AREA ............................................................................................................................................................ 12
SEC. IV: PROPERTY DESCRIPTION ......................................................................................................................... 16
LOCATION MAP ........................................................................................................................................................... 16
AERIAL MAP – WIDE ................................................................................................................................................... 17
AERIAL MAP – CLOSE ................................................................................................................................................. 18
LEGAL DESCRIPTION ................................................................................................................................................... 19
FLOOD MAP ............................................................................................................................................................... 20
PROPERTY PHOTOGRAPHS ........................................................................................................................................... 21
SITE CHARACTERISTICS – ALL PROPERTIES .................................................................................................................... 30
SITE CHARACTERISTICS – PARCEL A .............................................................................................................................. 34
SITE CHARACTERISTICS – PARCEL B .............................................................................................................................. 36
SITE CHARACTERISTICS – PARCEL C ............................................................................................................................. 38
IMPROVEMENT SKETCH – PARCEL B – RETAIL/WAREHOUSE BUILDING ............................................................................. 40
IMPROVEMENT SKETCH – PARCEL C - BOAT SALES/REPAIR BUILDING .............................................................................. 41
IMPROVEMENT CHARACTERISTICS – PARCEL B ............................................................................................................... 42
IMPROVEMENT CHARACTERISTICS – PARCEL C ............................................................................................................... 44
SEC. V: HIGHEST & BEST USE ANALYSIS ............................................................................................................... 46
PRESENT USE ............................................................................................................................................................ 46
HIGHEST AND BEST USE AS VACANT ............................................................................................................................. 46
HIGHEST AND BEST USE AS IMPROVED ......................................................................................................................... 49
SEC. VI: VALUATION OF SUBJECT PROPERTY ........................................................................................................ 50
THE APPRAISAL PROCESS ............................................................................................................................................ 50
THE SALES COMPARISON APPROACH TO VALUE – PARCEL A ............................................................................................. 51
THE SALES COMPARISON APPROACH TO VALUE – PARCEL B ............................................................................................ 61
THE INCOME APPROACH TO VALUE – PARCEL B .............................................................................................................. 76
THE SALES COMPARISON APPROACH TO VALUE – PARCEL C ............................................................................................ 88
SEC. VII: RECONCILIATION OF OPINIONS OF VALUE .............................................................................................. 98
COLLECTIVE VALUE OF ALL PROPERTIES ......................................................................................................................... 98
CONTRACTS, LISTINGS & SALES HISTORY ...................................................................................................................... 99
ESTIMATION OF MARKETING TIME ............................................................................................................................... 100
ESTIMATION OF EXPOSURE TIME ................................................................................................................................. 100
SEC. VIII: CERTIFICATION ..................................................................................................................................... 101
SEC. IX: ADDENDA ................................................................................................................................................ 103
QUALIFICATIONS OF GERALD A. HENDRY, MAI, CCIM ................................................................................................... 103
ASSUMPTIONS .......................................................................................................................................................... 106
EXTRAORDINARY ASSUMPTIONS / HYPOTHETICAL CONDITIONS ....................................................................................... 107
1
SEC. I: INTRODUCTION
OWNER OF RECORD: Theresa Ackerman
PROPERTY DESCRIPTION:
For purposes of this analysis, we have described the properties as Parcel A,
Parcel B, and Parcel C which are illustrated below:
ADDRESSES/TAX IDS:
Parcel A: no address established. Folio # 52600160000
Parcel B: Folio #52600120008. 2808 Thomasson Drive, Naples, Florida
34112
Parcel C: Folio #52600080009. 4825 Bayshore Drive, Naples, Florida 34112
LEGAL DESCRIPTION: Lengthy. Please see Property Description section.
SITE AREAS/
IMPROVEMENTS:
Parcel A: 0.63 acre / 27,443 square feet. No improvements.
Parcel B: 0.44 acre / 19,166 square feet. 7,520 square foot warehouse/retail.
Parcel C: 0.77 acre / 33,541 square feet. 800 square foot former
residence/office.
ZONING:
Parcel A: RMF-6-BMUD-R2
Parcel B: C-5-BMUD-NC
Parcel C: C-3-BMUD-NC
HIGHEST & BEST USE
AS VACANT:
Parcel A: Multi-family residential
Parcel B: Commercial Development
Parcel C: Commercial Development
2
HIGHEST & BEST USE
AS IMPROVED: Parcels B and C: Continued use as improved
EFFECTIVE DATE OF THE
APPRAISAL: 11 February 2020
DATE OF THE REPORT: 6 March 2020
INTENDED USER:
This appraisal is made for the exclusive use of our client, Bayshore/Gateway
Triangle CRA, Collier County Facilities Management/Real Property, and Collier
County Board of County Commissioners, and its use by others is strictly
prohibited.
INTENDED USE: The intended use of this assignment is for potential acquisition of the property.
VALUE INDICATIONS:
COST APPROACH:
SALES APPROACH:
INCOME APPROACH:
FINAL OPINION:
Parcel A
N/A
$245,000
N/A
$245,000
Parcel B
N/A
$1,205,000
$1,150,000
$1,205,000
Parcel C
N/A
$675,000
N/A
$675,000
3
SEC. II: SCOPE OF WORK
According to the Uniform Standards of Professional Appraisal Practice (USPAP), 2020/2021 Edition, the Scope
of Work includes, but is not limited to:
the extent to which the property is identified;
the extent to which tangible property is inspected;
the type and extent of data research; and
the type and extent of analysis applied to arrive at opinions or conclusions.
EXTENT OF PROPERTY IDENTIFICATION
For this analysis, the subject property was identified by a legal description and research of public records via the
internet. For this appraisal, reliance was placed primarily upon information provided by the local public records,
as well as information provided by our client.
EXTENT OF INSPECTION
For the purposes of this appraisal, Gerald A. Hendry, MAI, CCIM conducted an interior and exterior inspection of
Parcels A and B and an exterior inspection only of Parcel C. This inspection was completed on 11 February 2020.
Due to the confidential nature of this assignment, Parcel C was not inspected and the buildings were not
measured by the appraiser. The appraiser relied solely on information provided by the client and the Collier
County Property Appraiser’s public records.
TYPE AND EXTENT OF DATA RESEARCH
Data research is regularly conducted using the following sources:
Public Records
Local REALTOR® Association Multiple Listing Services (MLS)/Loopnet/CCIM
Marshall Valuation Service/ CoreLogic Commercial Cost Service/Books
CoStar comparables service
Information from contractors, brokers and agents in the area
The primary emphasis of the data research concentrated on the subject market area. Census data, as well as
municipal and governmental websites, were utilized in gathering the information analyzed. The time period
researched for any sale data encompasses the past few years up until the date of the most current data
available. All comparable data is verified with the buyer, seller or a property representative unless otherwise
indicated. In the analysis, the selling price, financing, motivation to purchase/sell and, if applicable, any lease or
income/expense information was verified as of the time of sale.
TYPE AND EXTENT OF ANALYSIS
Purpose of the Appraisal
The purpose of this appraisal is to develop an opinion of the “as is,” fee simple market value of the subject
properties as if free and clear of all liens, mortgages, encumbrances, and/or encroachments.
4
Condition Appraised
In this analysis, we are developing an opinion of the “as is” condition, defined by the Appraisal Institute in The
Dictionary of Real Estate Appraisal, Sixth Edition as follows:
The estimate of market value of real property in its current physical condition, use, and zoning as of the
appraisal date.
Real Property Interest Appraised
There are primarily two forms of interest to consider when developing an opinion of value for real property. These
are defined by The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as follows:
Fee simple interest (estate) is:
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, and escheat.
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 expires.
As the subject properties are partially owner-occupied or leased on a month to month basis, the interest being
appraised in this situation is the undivided fee simple interest in the land and existing improvements as if free
and clear of all liens, mortgages, encumbrances, and/or encroachments except as may be amended in the body
of this report.
Value Appraised
The opinion of value developed and reported herein is the market value of the subject property. Market value,
as defined by the agencies that regulate financial institutions in the United States and published by 12 CFR Ch.
V Part 564.2 (g) Office of Thrift Supervision, Department of the Treasury, is:
The most probable price that a property should bring in a competitive and open market under all conditions
requisite to a fair sale, the buyer and 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:
a. Buyer and seller are typically motivated.
b. Both parties are well informed or well advised, and acting in what they consider their
own best interests.
c. A reasonable time is allowed for exposure in the open market.
d. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
e. The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.
Approaches Developed
Given the age and condition of the improvements on both Parcels B and C, only the Sales Comparison and
Income Approaches to Value were considered for these properties. As Parcel A is vacant land, consideration was
given to the Sales Comparison Approach to Value only.
5
Report Type
This is an Appraisal Report which is intended to comply with the reporting standards set forth under Standard
Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP), 2020/21 Ed.
ASSUMPTIONS
An assumption is defined by The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as
follows:
“that which is taken to be true.”
Please see the Addenda for further details regarding the assumptions utilized in this appraisal.
EXTRAORDINARY ASSUMPTIONS
Extraordinary Assumption is defined by the Uniform Standards of Appraisal Practice (USPAP), 2020/2021
Edition, as:
“an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis
which, if found to be false, could alter the appraiser’s opinions or conclusions.”
Per USPAP standards, please note that the use of extraordinary assumptions might have affected the assignment
results. It is strongly recommended that the reader thoroughly read the entirety of these assumptions, as they
outline the limitations under which this appraisal is developed.
As requested by the client, we inspected the interior and exterior for Parcels A and B only, and the
exterior of Parcel C. No measurements were completed by the appraiser due to the confidential nature
of the assignment. As such, reliance for building sizes was based on information provided by the client
as well as Collier County public records.
HYPOTHETICAL CONDITIONS
Hypothetical Condition is defined by the Uniform Standards of Appraisal Practice (USPAP), 2020/2021 Edition,
as:
“a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist
on the effective date of the assignment results, but is used for the purpose of analysis.”
Per USPAP standards, please note that the use of hypothetical conditions might have affected the assignment
results. It is strongly recommended that the reader thoroughly read the entirety of these assumptions, as they
outline the limitations under which this appraisal is developed.
None applicable.
6
COMPETENCY PROVISION
This summary appraisal report has been prepared in conformity with the Uniform Standards of Professional
Appraisal Practice (USPAP). Within USPAP there is a Competency Provision which states, in part, “Prior to
accepting an assignment or entering into an agreement to perform an assignment, the appraiser must properly
identify the problem to be addressed and have knowledge and experience to complete the assignment
competently......” If the appraisers lack the knowledge or experience necessary for a particular assignment, this
must be disclosed and all steps necessary to complete the assignment competently must be taken. In regard to
this appraisal, we have the necessary knowledge and experience to complete the assignment.
7
SEC. III: REGIONAL AND MARKET AREA ANALYSIS
SOUTHWEST FLORIDA / COLLIER COUNTY DATA
8
Collier County, named for Barron Collier, was created from Lee County in 1923, and is the second largest county
in the State of Florida by land area. Collier County is bordered by Miami-Dade Counties to the east and Lee and
Hendry Counties to the north. The county's western boundary is the Gulf of Mexico. The county contains a total
of 2,025 square miles of land area and 91 square miles of inland water area. Collier County is the second largest
county east of the Mississippi River and is larger than the States of Rhode Island and Delaware. The present-
day Collier County encompasses 2,305 square miles, with a variety of natural inland, coastal, and barrier island
habitats, with approximately 13% of the total area being water. The year-round population is 321,520 as of the
2010 census. There are three (3) incorporated municipalities in Collier County as follows:
City of Naples: Incorporated in 1949. 14.41 Square Miles. 2010 Population: 19,537.
The city of Naples is the county seat of Collier County, as well as being the principal city of the Naples-Marco
Island Metropolitan Statistical Area. The city was originally settled in 1886, with the majority of growth occurring
after the depression and World War II. The City is home to a number of major employers, as well as non-profit
organizations and Fortune 1000 companies. The Fifth Avenue South and Third Street South corridors are
considered to be the heart, or “downtown” of the City of Naples, and this area is a popular retail and shopping
destination. The City of Naples also features a number of cultural centers and organizations including The Naples
Players, the Opera Naples, the Philharmonic Center for the Arts, the Philharmonic Orchestra and Theatre Zone
Equity Theatre Company, the Naples Jazz Orchestra, the Naples Youth Jazz Orchestra and the Naples
Philharmonic Youth Orchestra.
City of Marco Island: Incorporated in 1997. 17.1 Square Miles. 2010 Population: 16,413.
Originally named San Marco Island by Spanish explorers, Marco Island is the largest barrier island within
Southwest Florida's Ten Thousand Islands area, extending southerly to Cape Sable. The island was purchased
in the 1920’s by Barron Collier, and was originally incorporated as Collier City in 1927, but was later
unincorporated. Marco Island is generally considered to be a resort destination, and the desirability of real estate
coupled with the finite supply, has led to a rapid escalation of property values, which are significantly higher than
many other parts of Collier County.
City of Everglades: Incorporated 1923. 1.2 Square Miles. 2010 Population: 400.
The City of Everglades, known more commonly as Everglades City, is located at the mouth of the Barron River,
on Chokoloskee Bay, approximately 32 miles southeast of Naples, near the extreme southeasterly corner of
Collier County. With the establishment of the Everglades National Park in 1947, the economy of Everglades City
began to shift from industrial and agricultural to tourism and eco-tourism. The Everglades National Park visitor’s
center is located in Everglades City.
There are many other unincorporated, yet distinct, communities in Collier County, both rural and suburban in
nature. These include Ave Maria, Golden Gate, Goodland, Naples Manor, Naples Park, Immokalee, Lely Resort
and many others.
Collier County is a growing county with many diverse geographical areas and populous communities. Collier
County is second only to Lee County as the center of growth and activity for the five (5) county area (Charlotte,
Collier, Glades, Hendry, and Lee).
9
There are four basic factors that influence value according to The Appraisal of Real Estate, Fourteenth Edition.
These factors include:
I. Social Forces
II. Economic Forces
III. Governmental Forces
IV. Environmental Forces
Each of the forces interacts, resulting in increases, decreases, or stabilization of property values. As a result,
these forces also serve to directly affect the demand for real property in a particular area. The four forces that
affect values are described as follows:
I. Social Forces
Population fluctuation has a significant impact on property values. The chart below demonstrates the change in
population between the two most recent decennial Censuses..
2018
(1 JULY EST.) 2010 2000 Change
COUNTY POPULATION 378,488 322,653 257,926 +46.74%
1. United States Census Bureau
II. Economic Forces
Economic considerations involve the financial capacity of the inhabitants of a region to rent or own property and
properly maintain it. These economic forces may include income levels, unemployment rates, the economic
base of a region and the strength of development and construction.
2019 2018 2017 2016
UNEMPLOYMENT RATE1 2.5%
(September)
3.4%
(Annual)
4.1%
(Annual)
4.8%
(Annual)
AVERAGE WEEKLY WAGE1 $950 (2Q) $1,002 (4Q) $966 (4Q) $915 (4Q)
SINGLE-FAMILY MEDIAN PRICE2 $450,000
(December)
$446,000
(Annual)
$434,900
(Annual)
$420,356
(Annual)
RETAIL VACANCY RATE3 5.1% (4Q) 2.2% (4Q) 3.3% (4Q) 5.7% (4Q)
OFFICE VACANCY RATE3 8.6% (4Q) 6.8% (4Q) 6.1% (4Q) 7.2% (4Q)
INDUSTRIAL VACANCY RATE3 2.1% (4Q) 1.9% (4Q) 0.8% (4Q) 1.2% (4Q)
1. Bureau of Labor Statistics - Quarterly Employment and Wages
2. Florida Realtors
3. Costar
10
III. Governmental Forces
The county government consists of a five-member board of county commissioners, elected to four-year terms
within single-member districts. A non-elected county manager heads the government staff. Other elected
officials in the county are sheriff, tax collector, supervisor of elections, clerk of the circuit court, and property
appraiser. In addition, there are numerous special districts with independently elected boards, with the services
provided ranging from fire protection tot water & sewer service.
Services
There are two incorporated cities with the usual municipal services, such as police protection and fire protection.
The balance of the county is patrolled by the Florida State Highway Patrol and the Collier County Sheriff’s
Department. Independent fire control districts serve the balance of the unincorporated area for fire and rescue
services.
Utilities
CenturyLink is the primary telephone service provider for Southwest Florida. CenturyLink has a fiber optic
backbone that has the ability to connect all of its central offices and maintain high network availability. KMC
Telecom, Inc., along with CenturyLink, has a SONET ring surrounding Fort Myers. This SONET ring safeguards
customers from service interruptions by using diverse routing of its fiber optic cables. Electricity is supplied by
Florida Power and Light and TECO. Gas is available from any one of a number of manufactured bottled gas
dealers in the county or directly from TECO. Water and sewer service is supplied by the either city or county
government.
Medical Services
The Naples Community Hospital System is a private non-profit which oversees several facilities throughout the
county.
Educational System
The School District of Collier County oversees the uniform K-12 public educations system within Collier County.
There are also several private and parochial schools in the county. Florida Southwestern State College has a
campus in Naples, while Florida Gulf Coast University is located in south Lee County. Ave Maria University is a
newly established Catholic University located in Naples.
Transportation
By far, the major artery through Collier County is U.S. 41 (Tamiami Trail). Another major artery is Interstate 75 (I-
75), which connects Naples to the east coast population centers of Miami and Fort Lauderdale. Air service is
limited but currently expanding out of Naples Airport. Currently, sixteen airlines operate out of Southwest Florida
International Airport, just north of Naples, in Fort Myers.
IV. Environmental Forces
The county has a sub-tropical climate. The average temperature is 74 degrees. Temperature extremes are
infrequent with only a rare freeze and few readings above the mid-90s. Rainfall averages just over 53 inches
annually, with the heaviest rains during the summer months.
11
CONCLUSION / LIFE CYCLE STAGE
The subject market area is in the Growth stage of its life cycle. This market area experienced tremendous
development from 2003-2005, then an equally significant decline in property values from 2006-2011, followed
by the current growth cycle from 2012 to current. This growth trend is most pronounced within the Naples area,
but increasing property values and new development is also occurring in the eastern rural areas of the County
as well as land is becoming scarce in the central (western) areas of Collier County.
12
MARKET AREA
The subject market area boundaries are defined as the Bayshore/Gateway Triangle CRA (BGTCRA), east of the
downtown market of Naples as shown below:
This area was created by the Collier County Board of County Commissioners (Board) in 2000. The Collier County
Board of County Commissioners directed staff to prepare a “Finding of Necessity” for Bayshore/Gateway Triangle
on 11 January 2000. “Finding of Necessity” was defined as a finding that one or more geographic areas in a
municipality has conditions of “slum or blight”, and that there is a need to rehabilitate, conserve and redevelop
the area. The conclusion of the study was the Bayshore/Gateway Triangle Study Area clearly had a
predominance of defective or inadequate street layout, unsafe or unsanitary conditions, and deterioration of a
site or other improvements. On 14 March 2000, the Collier County Board of County Commissioners adopted
Resolution 2000-82, finding existence of blight conditions in this area. Subsequently, on 23 May 2000, the
community redevelopment plan was approved by the Community Redevelopment Agency.
The BGTCRA consists of approximately 1,800 acres with a mix of residential and commercial uses and was
developed to help revitalize the area. Significant public and private funds have been used in this area which has
resulted in a revived area with several projects. One of the most notable private projects is Celebration Park
which is a food truck park and outdoor bar area.
13
The following is a summary of the demographics of the Bayshore/Gateway CRA:
Of note, in 2018 the Collier County CRA approved a contract with Tindale Oliver Design (TOD) to draft an
amendment to the BGTCRA redevelopment plan with the goals to continue redevelopment efforts in this area.
The subject property is described as being Area 6:
The subject property is illustrated on the map as “North Bayshore” which is described on the following page.
Bayshore Gateway CRA Florida Collier County
2019 Total Population 7,431 21,239,528 374,752
2024 Total Population 7,723 22,730,808 408,710
2019‐2024 Population: Annual Growth Rate 0.77% 1.37% 1.75%
2019 Median Household Income $45,959 $54,238 $67,771
2019 Median Age 43.1 42.5 50.5
2019 Total Households 2,659 8,299,404 155,885
2019 Median Home Value $261,012 $234,264 $363,672
2019 Average Home Value $357,853 $300,812 $518,212
2019 Owner Occupied Housing Units by Value Base 1,351 5,374,578 112,412
Source: Esri
14
15
In this area, there have been significant infrastructure and roadway improvement work. Furthermore, according
to the TOD study, roadway improvements are recommended as follows:
Overall, this area has experienced an increase in activity as evidenced by several new developments and sales
activity. This area is in the growth and redevelopment stages of the real estate life cycle.
16
SEC. IV: PROPERTY DESCRIPTION
LOCATION MAP
17
AERIAL MAP – WIDE
18
AERIAL MAP – CLOSE
19
LEGAL DESCRIPTION
20
FLOOD MAP
21
PROPERTY PHOTOGRAPHS
SE’LY VIEW OF SUBJECT FROM BAYSHORE DRIVE
SW’LY VIEW OF SUBJECT FROM THOMASSON DRIVE
22
S’LY VIEW OF PARCEL A FROM THOMASSON DRIVE
VIEW OF PARCEL A
23
S’LY VIEW OF PARCEL B – WAREHOUSE FROM THOMASSON DRIVE
INTERIOR OF PARCEL B - WAREHOUSE
24
INTERIOR OF PARCEL B - WAREHOUSE
INTERIOR OF PARCEL B - WAREHOUSE
25
S’LY VIEW OF PARCEL B – RETAIL FROM THOMASSON DRIVE
E’LY VIEW OF PARCEL B - RETAIL
26
INTERIOR OF PARCEL B - RETAIL
INTERIOR OF PARCEL B - RETAIL
27
INTERIOR OF PARCEL B - RETAIL
INTERIOR OF PARCEL B - RETAIL
28
E’LY VIEW OF PARCEL C FROM BAYSHORE DRIVE
N’LY STREET VIEW ALONG BAYSHORE DRIVE, SUBJECT ON RIGHT
29
S’LY STREET VIEW ALONG BAYSHORE DRIVE, SUBJECT ON LEFT
W’LY STREET VIEW ALONG THOMASSON DRIVE
30
SITE CHARACTERISTICS – ALL PROPERTIES
ADDRESSES/TAX IDS:
Parcel A: no address established. Folio # 52600160000
Parcel B: Folio #52600120008. 2808 Thomasson Drive, Naples, Florida
34112
Parcel C: Folio #52600080009. 4825 Bayshore Drive, Naples, Florida 34112
LOCATION/ACCESS/
EXPOSURE:
Collectively, all three parcels are located on the southeast corner of Bayshore
Drive and Thomasson Drive in Naples, Florida. Bayshore Drive and Thomasson
Drive in front of the subject property are both two lane, paved roadways. The
properties are all located within the Bayshore/Gateway Triangle CRA. The CRA
plan was established in 2000, and in 2018, the Collier County Board of
Commissioners contracted with TOD Design Group to update the plan. In
February 2019, the CRA Advisory Board recommended an approval of the plan
and the plan was approved in 2019. The following is a link to the details on the
CRA: http://bayshorecra.com. The following map illustrates the subject’s
location in the CRA:
31
UTILITIES:
All properties have full utilities. The properties have electricity provided by
Florida Power & Light, telephone service provided by CenturyLink, central water
service provided by Collier County Utilities, and sewer service provided by the
City of Naples.
FLOOD ZONE:
The subject properties are located within Flood Zone AE-EL7 as found on Flood
Map Panel ID #12021C0582H, dated 16 May 2012. Properties located within
this area are typically required to have flood insurance under most financing
situations. This property is not located within a FEMA FIRM Floodway.
EASEMENTS,
ENCROACHMENTS, ETC.:
There are no known adverse easements, encroachments, restrictions,
encumbrances, leases, reservations, covenants, contracts, declarations,
special assessments, ordinances or other items of a similar nature. No survey
was provided.
32
BAYSHORE/GATEWAY
TRIANGLE DEVELOPMENT
OVERLAY:
The subject property has a designated future land use categorization, as
follows:
Governing Body Collier County
Future Land Use Designation Bayshore/Gateway Triangle
Redevelopment Overlay
Per the Comprehensive Plan:
F. Bayshore/Gateway Triangle Redevelopment Overlay
The Bayshore/Gateway Triangle Redevelopment Overlay, depicted on the Future Land
Use Map, is within the boundaries of the Bayshore/Gateway Triangle Redevelopment
Plan adopted by the Board of County Commissioners on June 13, 2000. The intent of
the redevelopment program is to encourage the revitalization of the
Bayshore/Gateway Triangle Redevelopment Area by providing incentives that will
encourage the private sector to invest in this urban area. This Overlay allows for
additional neighborhood commercial uses and higher residential densities that will
promote the assembly of property, or joint ventures between property owners, while
providing interconnections between properties and neighborhoods. The intent of this
Overlay is to allow for more intense development in an urban area where urban
services are available. Two zoning overlays have been adopted into the Collier County
Land Development Code to aid in the implementation of this Overlay. The following
provisions and restrictions apply to this Overlay:
1. Mixed-Use Development: Mix of residential and commercial uses are permitted.
For such development, commercial uses are limited to C-1 through C-3 zoning
district uses; hotel/motel use; theatrical producers (except motion picture),
bands, orchestras, and entertainers; and, uses as may be allowed by applicable
FLUE Policies. Mixed-use projects will be pedestrian oriented and are
encouraged to provide access (vehicular, pedestrian, bicycle) to nearby
residential areas. The intent is to encourage pedestrian use of the commercial
area and to provide opportunity for nearby residents to access these commercial
uses without traveling onto major roadways. Parking facilities are encouraged to
be located in the rear of the buildings with the buildings oriented closer to the
major roadway to promote traditional urban development.
2. Residential uses are allowed within this Overlay. Permitted density shall be as
determined through application of the Density Rating System, and applicable
FLUE Policies, except as provided below and except as may be limited by a zoning
overlay.
3. Non-residential/non-commercial uses allowed within this Overlay include
essential services; parks, recreation and open space uses; water-dependent and
water-related uses; child care centers; community facility uses; safety service
facilities; and utility and communication facilities.
Properties with access to US-41 East and/or Bayshore Drive and/or Davis Boulevard (SR 84)
and/or the west side of Airport-Pulling Road may be allowed a maximum density of 12 residential
units per acre via use of the density bonus pool identified in paragraph 11, except that no project
may utilize more than 97 units – 25% of the total density pool units available. The 97 unit cap will
terminate when the BCC adopts, by LDC amendment, limitations and a cap on the use of the 388
density pool units for any one project. In order to be eligible for this higher density, the project must
be integrated into a mixed-use development with access to existing neighborhoods and adjoining
commercial properties and comply with the standards identified in Paragraph #8, below, except for
mixed use projects developed within the “mini triangle” catalyst project site as identified on the
Bayshore/Gateway Triangle Redevelopment Overlay Map. The “mini triangle” catalyst project site
is eligible for the maximum density of 12 units per acre, with development standards as contained
in the Gateway Triangle Mixed Use District zoning overlay, adopted February 28, 2006 (Ordinance
No. 06-08), and amended December 14, 2006 (Ordinance No. 06-63). For projects that do not
comply with the requirements for this density increase, their density is limited to that allowed by
the Density Rating System and applicable FLUE Policies, except as may be limited by a future zoning
overlay.
33
BAYSHORE/GATEWAY
TRIANGLE REDEVELOPMENT
OVERLAY – CONTINUED:
5. Properties having frontage on one or more of Bayshore Drive, Davis Boulevard,
Airport Pulling Road (west side only) or US 41 East, may be allowed to redevelop
as a residential-only project at a maximum density of 8 residential units per
acre via use of the density bonus pool identified in paragraph 11 except that
no project may utilize more than 97 units – 25% of the 388 total density pool
units available. The 97 unit cap will terminate when the BCC adopts, by LDC
amendment, limitations and a cap on the use of the 388 density pool units for
any one project. In order to be eligible for this higher density the redevelopment
must comply with the following:
a. Project shall be in the form of a PUD.
b. Project site shall be a minimum of three acres.
c. Project shall constitute redevelopment of the site.
d. All residential units shall be market rate units.
For projects that do not comply with the requirements for this density increase,
their density is limited to that allowed by the Density Rating System and
applicable FLUE Policies.
6. For parcels currently within the boundaries of Mixed-Use Activity Center #16,
land uses will continue to be governed by the Mixed Use Activity Center
Subdistrict, except residential density may also be increased as provided for in
paragraphs 4 and 5, above. The development standards of the Bayshore Drive
Mixed Use Overlay District or Gateway Triangle Mixed Use Overlay District in the
Collier County Land Development Code, whichever is applicable, shall apply to
all new development within the Activity Center.
7. Existing zoning districts for some properties within the Bayshore/Gateway
Triangle Redevelopment Overlay allow uses, densities and development
standards that are inconsistent with the uses, densities and development
standards allowed within this Overlay. These properties are allowed to develop
and redevelop in accordance with their existing zoning until such time as a
zoning overlay is adopted which may limit such uses, densities and
development standards.
8. To qualify for 12 dwelling units per acre, as provided for in paragraph #4 above,
mixed use projects within the Bayshore/Gateway Triangle Redevelopment
Overlay must comply with the design standards of the Bayshore Drive Mixed
Use Overlay District or Gateway Triangle Mixed Use Overlay District in the Collier
County Land Development Code, whichever is applicable.
9. For density bonuses provided for in paragraphs #4 and #5 above, base density
shall be per the underlying zoning district. The maximum density of 12 or 8
units per acre shall be calculated based upon total project acreage. The bonus
density allocation is calculated by deducting the base density of the underlying
zoning classification from the maximum density being sought. The difference
in units per acre determines the bonus density allocation requested for the
project.
10. Only the affordable-workforce housing density bonus, as provided in the Density
Rating System, is allowed in addition to the eligible density provided herein. For
all properties, the maximum density allowed is that specified under Density
Conditions in the Density Rating System.
11. A maximum of 388 dwelling units are permitted to be utilized in this Overlay for
density bonuses, as provided in paragraphs #4 and #5 above. This 388
dwelling unit density bonus pool corresponds with the number of dwelling units
previously entitled to the botanical gardens sites prior to their rezone in 2003
to establish the Naples Botanical Gardens PUD. The “mini triangle” catalyst
project is not subject to this density bonus pool.
12. The Botanical Garden, Inc. properties located in Section 23, Township 50
South, Range 25 East, and shown on the Bayshore/Gateway Triangle
Redevelopment Overlay Map, shall be limited to non-residential uses except for
caretaker, dormitory, and other housing integrally related to the Botanical
Garden or other institutional and/or recreational open space uses.
Further details for the aforementioned future land use classifications are set
forth in the Comprehensive Plan and the reader is encouraged to review these
if further detail is required.
34
SITE CHARACTERISTICS – PARCEL A
ADDRESS/TAX ID: No address established. Folio # 52600160000
LOCATION/ACCESS/
EXPOSURE:
Parcel A is located on the south side of Thomasson Drive, just east of Bayshore
Drive. The parcel has direct access and exposure to Thomasson Drive. Overall,
vehicular access and exposure is considered to be good. Thomasson Drive
west of US 41 had a 2019 (4Q) AADT of 11,594.
SIZE (SITE AREA)/SHAPE:
Frontage (ft) 100± along Thomasson Drive
Depth (ft) 270±
Site Area (sq. ft.) 27,443±
Site Area (acres) 0.63±
Shape Rectangular
The above information was obtained from Collier County records. As no survey
was provided, this appraisal assumes that the site area is accurate.
PHYSICAL FEATURES
(TOPOGRAPHY, ELEVATION,
ETC.):
The subject parcel is partially cleared and appears to be at or near the crown
of Thomasson Drive. Drainage on the subject property appears to be adequate
and is provided by open swales.
35
ASSESSED VALUE, TAXES,
AND ASSESSMENTS:
Tax Year Market
Assessed Value
Taxable Value Taxes & Assess.
2019 $140,000 $61,600 $1,245.54
2018 $56,000 $56,000 $768.97
2017 $56,000 $56,000 $773.96
The property does not benefit from any homestead exemption or agricultural
classification. The ad valorem taxes and annual assessments due for each
period are exclusive of any early payment discounts or late payment penalties.
There are no known atypical outstanding assessments. As of the date of this
appraisal, the 2019 taxes have been paid.
ZONING:
Parcel A is zoned RMF-6-BMUD-R2 under the zoning ordinances of Collier
County. Per the Land Development Code:
Residential Multi-Family-6 District (RMF-6). The purpose and intent of the
residential multi-family-6 district (RMF-6) is to provide for single-family, two-family
and multi-family residences having a low profile silhouette, surrounded by open
space , being so situated that it is located in close proximity to public and
commercial services and has direct or convenient access to collector and arterial
roads on the county major road network. The RMF-6 district corresponds to and
implements the urban mixed use land use designation on the future land use map
of the Collier County GMP. The maximum density permissible in the RMF-6 district
and the urban mixed use land use designation shall be guided, in part, by the
density rating system contained in the future land use element of the Collier County
GMP. The maximum density permissible or permitted in the RMF-6 district shall
not exceed the density permissible under the density rating system, except as
permitted by policies contained in the future land use element.
Gateway Triangle Residential Subdistrict 2 (GTMUD-R2) Subdistrict:
Residential Subdistrict 2 (BMUD-R2). The purpose of this subdistrict is to allow for
a variety of housing types and encourage the development of multi-family
residences as transitional uses between commercial and single-family
development. The multi-family buildings shall be compatible with the building
patterns of traditional neighborhood design.
Further specific allowable uses, minimum lot sizes, etc. for the aforementioned
zoning classification, are set forth in the Land Development Code and the
reader is encouraged to review these if further detail is required. The following
is a link to the full zoning: (insert Municode link):
https://library.municode.com/fl/collier_county/codes/land_development_cod
e?nodeId=CH2ZODIUS_2.03.00ZODIPEUSACUSCOUS_2.03.07OVZODI
36
SITE CHARACTERISTICS – PARCEL B
ADDRESS/TAX ID: 2808 Thomasson Drive, Naples, Florida 34112 / Folio #52600120008
LOCATION/ACCESS/
EXPOSURE:
Parcel B is located on the southeast corner of Bayshore Drive and Thomasson
Drive in Naples, Florida. Both roads are two lane, local roadways which are
paved. Bayshore Drive north of Weeks Avenue had a 2019 (4Q) AADT of
10,302.
SIZE (SITE AREA)/SHAPE:
Frontage (ft) 220± along Thomasson Drive
Depth (ft) 100± along Bayshore Drive
Site Area (sq. ft.) 19,166±
Site Area (acres) 0.44±
Shape Rectangular
The above information was obtained from Collier County records. As no survey
was provided, this appraisal assumes that the site area is accurate.
PHYSICAL FEATURES
(TOPOGRAPHY, ELEVATION,
ETC.):
The subject parcel is partially cleared and appears to be at or near the crown
of Thomasson Drive. Drainage on the subject property appears to be adequate
and is provided by open swales.
37
ASSESSED VALUE, TAXES,
AND ASSESSMENTS:
Tax Year Market
Assessed Value
Taxable Value Taxes & Assess.
2019 $334,316 $318,734 $4,461.96
2018 $289,758 $289,758 $3,978.87
2017 $282,311 $282,311 $3,901.77
The property does not benefit from any homestead exemption or agricultural
classification. The ad valorem taxes and annual assessments due for each
period are exclusive of any early payment discounts or late payment penalties.
There are no known atypical outstanding assessments. As of the date of this
appraisal, the 2019 taxes have been paid.
ZONING:
Parcel B is zoned C-5-BMUD-NC under the zoning ordinances of Collier County.
Per the Land Development Code:
E. Heavy Commercial District (C-5). In addition to the uses provided in the
C-4 zoning district, the heavy commercial district (C-5) allows a range of
more intensive commercial uses and services which are generally those
uses that tend to utilize outdoor space in the conduct of the business. The
C-5 district permits heavy commercial services such as full-service
automotive repair, and establishments primarily engaged in construction
and specialized trade activities such as contractor offices, plumbing, heating
and air conditioning services, and similar uses that typically have a need to
store construction associated equipment and supplies within an enclosed
structure or have showrooms displaying the building material for which they
specialize. Outdoor storage yards are permitted with the requirement that
such yards are completely enclosed or opaquely screened. The C-5 district
is permitted in accordance with the locational criteria for uses and the goals,
objectives, and policies as identified in the future land use element of the
Collier County GMP.
Gateway Triangle Neighborhood Commercial District (GTMUD-NC)
Subdistrict:
Neighborhood Commercial Subdistrict (BMUD-NC). The purpose and intent
of this subdistrict is to encourage a mix of low intensity commercial and
residential uses, including mixed use projects in a single building. This
subdistrict provides for an increased presence and integration of the cultural
arts and related support uses, including galleries, artists' studios, and live-
work units . Developments will be human-scale and pedestrian-oriented.
Further specific allowable uses, minimum lot sizes, etc. for the aforementioned
zoning classification, are set forth in the Land Development Code and the
reader is encouraged to review these if further detail is required. The following
is a link to the full zoning: (insert Municode link)
https://library.municode.com/fl/collier_county/codes/land_development_cod
e?nodeId=CH2ZODIUS_2.03.00ZODIPEUSACUSCOUS_2.03.07OVZODI
38
SITE CHARACTERISTICS – PARCEL C
ADDRESS/TAX ID: 4825 Bayshore Drive, Naples, Florida 34112 / Folio #52600080009
LOCATION/ACCESS/
EXPOSURE:
Parcel C is located on the east side of Bayshore Drive, just south of Thomasson
Drive in Naples. The property has full ingress and egress with a single driveway
cut. Overall access and exposure is considered to be good.
SIZE (SITE AREA)/SHAPE:
Frontage (ft) 170± along Bayshore Drive
Depth (ft) 220±
Site Area (sq. ft.) 33,541±
Site Area (acres) 0.77±
Shape Rectangular
The above information was obtained from Collier County records. As no survey
was provided, this appraisal assumes that the site area is accurate.
PHYSICAL FEATURES
(TOPOGRAPHY, ELEVATION,
ETC.):
The subject parcel is cleared, graded, and appears to be at or near the crown
of Bayshore Drive. Drainage on the subject property appears to be adequate
and is provided by open swales.
39
ASSESSED VALUE, TAXES,
AND ASSESSMENTS:
Tax Year Market
Assessed Value
Taxable Value Taxes & Assess.
2019 $337,229 $267,203 $4,030.12
2018 $242,912 $242,912 $3,335.58
2017 $240,982 $240,982 $3,330.56
The property does not benefit from any homestead exemption or agricultural
classification. The ad valorem taxes and annual assessments due for each
period are exclusive of any early payment discounts or late payment penalties.
There are no known atypical outstanding assessments. As of the date of this
appraisal, the 2019 taxes have been paid.
ZONING:
Parcel C is zoned C-3-BMUD-NC under the zoning ordinances of Collier County.
Per the Land Development Code:
Commercial Intermediate District (C-3). The purpose and intent of the
commercial intermediate district (C-3) is to provide for a wider variety of
goods and services intended for areas expected to receive a higher degree
of automobile traffic. The type and variety of goods and services are those
that provide an opportunity for comparison shopping, have a trade area
consisting of several neighborhoods, and are preferably located at the
intersection of two-arterial level streets. Most activity centers meet this
standard. This district is also intended to allow all of the uses permitted in
the C-1 and C-2 zoning districts typically aggregated in planned shopping
centers. This district is not intended to permit wholesaling type of uses, or
land uses that have associated with them the need for outdoor storage of
equipment and merchandise. A mixed-use project containing a residential
component is permitted in this district subject to the criteria established
herein. The C-3 district is permitted in accordance with the locational criteria
for commercial and the goals, objectives, and policies as identified in the
future land use element of the Collier County GMP. The maximum density
permissible in the C-3 district and the urban mixed use land use designation
shall be guided, in part, by the density rating system contained in the future
land use element of the Collier County GMP. The maximum density
permissible or permitted in the C-3 district shall not exceed the density
permissible under the density rating system.
Gateway Triangle Neighborhood Commercial District (GTMUD-NC)
Subdistrict:
Neighborhood Commercial Subdistrict (BMUD-NC). The purpose and intent
of this subdistrict is to encourage a mix of low intensity commercial and
residential uses, including mixed use projects in a single building. This
subdistrict provides for an increased presence and integration of the cultural
arts and related support uses, including galleries, artists' studios, and live-
work units. Developments will be human-scale and pedestrian-oriented.
Further specific allowable uses, minimum lot sizes, etc. for the aforementioned
zoning classification, are set forth in the Land Development Code and the
reader is encouraged to review these if further detail is required. The following
is a link to the full zoning: (insert Municode link)
https://library.municode.com/fl/collier_county/codes/land_development_cod
e?nodeId=CH2ZODIUS_2.03.00ZODIPEUSACUSCOUS_2.03.07OVZODI
40
IMPROVEMENT SKETCH – PARCEL B – RETAIL/WAREHOUSE BUILDING
41
IMPROVEMENT SKETCH – PARCEL C - BOAT SALES/REPAIR BUILDING
42
IMPROVEMENT CHARACTERISTICS – PARCEL B
GENERAL DESCRIPTION:
Parcel B is improved with two building improvements consisting of a retail store
operating as Del’s Market which was constructed in 1973 and a connected
building consisting of a warehouse facility which was constructed in 1981. The
retail building is currently owner occupied by Del’s Market while the warehouse
facility is currently leased on a short-term basis to an auto repair/tire facility.
The following description of the improvements is based upon an on-site
inspection conducted on 11 February 2020.
SIZE OF BUILDING:
In total, the improvements for Parcel B consist of 7,520 square feet. This
building area is allocated 3,600 square feet to the 1973 built retail building
and 3,920 square feet to the 1981 built warehouse facility. The land to building
ratio for this property is 2.5:1.
EXTERIOR WALLS /
FOUNDATION/ ROOF:
The retail building consists of a steel frame structure with a metal clad exterior
and glass store front windows and doors. The improvements consist of a gable
design roof also with a metal covering. The building is completely air
conditioned with a new air conditioning system according to the property
representative. The foundation appears to consist of monolithically poured,
steel reinforced concrete slab over compact fill with concrete footings.
The warehouse building consists of a concrete block facility. The foundation
appears to consist of a monolithically poured, steel reinforced concrete slab
over compacted fill with concrete footings. The roof of the buildings consists of
a wood truss system of a gable design with a covering of asphalt shingles. The
eave height associated with this building is estimated at 20’.
INTERIOR IMPROVEMENTS:
The retail building is designed as a convenience store with a small
restaurant/café as well as a small commercial kitchen. The interior consists of
exposed steel I-beams as well as some wood paneling walls and fluorescent
lighting. There is a very small upstairs office as well as a mechanical room.
Flooring consists of sealed and painted concrete flooring. There are several
built in areas such as a food and drink area, checkout, as well as areas for built-
in coolers. It should be noted no fixtures, equipment, or inventory are included
in this analysis. Eave height for this property is estimated at approximately 16’.
The warehouse building is a basic, open design/work area. This facility does
not have a central air conditioning system.
ELECTRICAL, PLUMBING, &
A/C SYSTEM:
The existing electrical, plumbing, and air conditioning systems (retail only)
appear to be adequate and operational and are assumed to be up to code.
43
SITE IMPROVEMENTS:
In total, the retail building consists of 12 asphalt paved parking spaces with the
asphalt considered to be in good condition. The tire store consists of a total of
five marked spaces.
PERSONAL PROPERTY,
TRADE FIXTURES, OR
INTANGIBLE ITEMS:
There are no items of personal property, trade fixtures, or intangible items
included in this opinion of value.
DEFERRED MAINTENANCE:
Deferred maintenance is defined by The Dictionary of Real Estate Appraisal,
Sixth Edition, as follows:
Items of wear and tear on a property that should be fixed now to protect the
value or income-producing ability of the property, such as a broken window,
a dead tree, a leak in the roof, or a faulty roof that must be completely
replaced. These items are almost always curable.
We did observe some deferred maintenance associated with this building as of
the date of inspection which will be factored into our estimation of effective
age.
CONDITION/ESTIMATION OF
EFFECTIVE AGE:
Overall, the subject improvements appear to be in average condition for their
age and have been adequately maintained. The estimate of effective age is
outlined below:
Actual Age 39-47 Year built – 1973 & 1981
Effective Age 30 per our observations
Total Economic Life (TEL) 45 per Marshall & Swift/ CoreLogic
Commercial Cost Service
Remaining Economic Life
(REL) 15
Accrued Physical Incurable
Depreciation 67% per Effective Age/TEL
FUNCTIONAL/EXTERNAL
OBSOLESCENCE: There is no functional or external obsolescence present.
44
IMPROVEMENT CHARACTERISTICS – PARCEL C
GENERAL DESCRIPTION:
Parcel C is improved with a small, two story former residence which is utilized
as an office and storage/repair facility. As noted in the Extraordinary
Assumption of this report, the appraisers were unable to inspect this building
due to the confidential nature of the appraisal. Therefore, we are assuming the
information listed below to be correct.
SIZE OF BUILDING: Parcel C consists of a total of 800 square feet of enclosed building area.
Furthermore, there’s a covered work area also consisting of 800 square feet.
EXTERIOR WALLS /
FOUNDATION/ ROOF:
The exterior walls consist of concrete block construction with an assumed eave
height of approximately 20’. It is assumed to consist of monolithically poured,
steel reinforced concrete slab over compacted fill with concrete footings. The
roof is assumed to be of a gable design with covering of asphalt shingles.
INTERIOR IMPROVEMENTS: The interior of the buildings are assumed to be designed for small offices and
are assumed to be in average condition.
ELECTRICAL, PLUMBING, &
A/C SYSTEM:
The existing electrical, plumbing, and air conditioning systems are assumed to
be adequate and operational and are assumed to be up to code.
SITE IMPROVEMENTS: The site improvements include a chain link fence as well as some paving as
well as shell in the parking area.
PERSONAL PROPERTY,
TRADE FIXTURES, OR
INTANGIBLE ITEMS:
There are no items of personal property, trade fixtures, or intangible items
included in this opinion of value.
45
DEFERRED MAINTENANCE:
Deferred maintenance is defined by The Dictionary of Real Estate Appraisal,
Sixth Edition, as follows:
Items of wear and tear on a property that should be fixed now to protect the
value or income-producing ability of the property, such as a broken window,
a dead tree, a leak in the roof, or a faulty roof that must be completely
replaced. These items are almost always curable.
Although the subject property was not inspected, it is assumed the building is
in similar condition as the improvements on Parcel B.
CONDITION/ESTIMATION OF
EFFECTIVE AGE:
Overall, it is assumed the subject improvements are in average condition and
have been adequately maintained. The estimate of effective age is outlined
below:
Actual Age 39 Year built – 1981
Effective Age 30 per our observations
Total Economic Life (TEL) 45 per Marshall & Swift/ CoreLogic
Commercial Cost Service
Remaining Economic Life
(REL) 15
Accrued Physical Incurable
Depreciation 67% per Effective Age/TEL
FUNCTIONAL/EXTERNAL
OBSOLESCENCE: There is no functional or external obsolescence present.
46
SEC. V: HIGHEST & BEST USE ANALYSIS
Real estate is valued in terms of its highest and best use. Highest and best use is the use which would be the
most profitable and likely use of a property. It may also be defined as that available use and program of future
utilization which produces the highest present land value. Highest and best use is defined by The Dictionary of
Real Estate Appraisal, Sixth Edition, as follows:
1. The reasonably probable use of property that results in the highest value. The four criteria that the highest
and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum
productivity.
2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially
feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative
use. This is determined by the use that a market participant would have in mind for the asset when
formulating the price that it would be willing to bid. (IVS)
3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed
in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions)
The Highest and Best Use Analysis begins with an analysis of the property as if vacant and available to be put to
its highest and best use. The property is further analyzed if there are improvements, either existing or proposed,
for the site. The four criteria of highest and best use are as follows:
Legally Permissible Use - what uses are permitted by zoning and deed restrictions on
the subject property?
Physically Possible Use - what uses are physically possible to put on the site?
Financially Feasible Use - which possible and permissible uses will produce a net return
to the owner of the site?
Maximally Productive Use - among the feasible uses, which use will produce the
highest net return?
PRESENT USE
The subject properties are presently utilized as follows:
Parcel A Vacant Land
Parcel B Warehouse and Retail Use
Parcel C Boat Storage/Sales
HIGHEST AND BEST USE AS VACANT
The highest and best use analysis of the site as though vacant assumes that a site is either vacant or can be
made so through demolition of any improvements. This analysis examines the type of improvement that is most
appropriate for a particular site.
Legally Permissible
Within this community, the future land use categories are broad indicators of growth potential such as raw
residential density and service provision, while the zoning designations control specific allowable development.
Parcel A is zoned RMF-6-BMUD-R2, Parcel B is zoned C-5-BMUD-NC, and Parcel C is zoned C-3-BMUD-NC. All of
the properties are located within the Bayshore/Gateway Triangle overlay. Parcel A is legally permissible for multi-
family development within the CRA. Parcel B is zoned for heavy commercial activity with a wide variety of
commercial potential uses. Parcel C is zoned C-3 which is an intermediate commercial zoning classification less
intense than Parcel B.
47
Physically Possible
Various physical factors have an effect on the uses to which a property may be developed. These factors include
size, shape, topography, and soil conditions.
Parcel A contains 27,443 square feet and is sufficient to accommodate a number of multi-family uses. The
parcel is serviced with full utilities and has a level topography.
Parcel B consist of 19,166 square feet or 0.44 acre and similarly is of sufficient size to accommodate any of a
number of legally permissible uses within C-5-BMUD-NC. This parcel also has full utilities and level topography.
This parcel benefits from exposure to both Thomasson Drive and Bayshore Drive.
Parcel C consists of 33,541 square feet/0.77 acre of land area. This property is also of sufficient size to
accommodate a number of legally permissible uses within C-3-BMUD-NC. This parcel is serviced with full utilities,
has a level topography, and is accessed via Bayshore Drive.
The physical aspects of all three properties do not impose apparent limitations on development other than
project size. The physical nature of the properties does not preclude any of the legally permissible uses. Based
upon the physical characteristics of the sites, the legally permissible uses would be physically possible with the
only physical constraints for each parcel being the size of development.
Financially Feasible
As long as a potential use has value commensurate with its cost and conforms to the first two tests, the use is
considered to be financially feasible. The legally permissible uses in this case are physically possible.
It is our opinion that Parcel A is legally and physically suitable for multi-family development. This market has
been extremely active as evidenced by several new projects along Thomasson Drive including the adjacent
property to the east which is currently under construction with 20 multi-family units. The following is an overview
of the multi-family market in the Bayshore/Gateway Triangle Overlay District:
Parcel B is legally and physically suited for heavy commercial development purposes. This property is located
within the C-5-BMUD-NC zoning which is one of the most intense commercial zoning categories in Collier County.
The following is an overview of the retail and industrial markets in the Bayshore/Gateway Triangle Overlay
District:
48
Retail data:
Industrial Data:
Parcel C is legally and physically suited for commercial development purposes allowable within the C-3-BMUD-
NC zoning classification. This property is most suitable for retail use.
As illustrated in the previous charts, the subject market’s retail market is experiencing relatively low vacancies
and significant rental rates. Forecasts based upon CoStar analytics are for continued increase in rental rates.
Overall, this market is a highly sought after market with the redevelopment overlay. It is our opinion the
financially feasible use for Parcel A is multi-family residential, Parcel B intensive commercial, Parcel C
commercial development.
Maximally Productive
The maximally productive use is that development option which will return the greatest profit to the eventual
developer. In more urban settings, this development option may be very specific and obvious, while in more
suburban settings, with lower ratios of existing build-out, these options may be more general and broad. In the
case of the subject property, which is located within a suburban environment, the financially feasible uses are
considered to be productive options. The potential for development exists and, therefore, the highest and best
use of the subject properties are for: Parcel A multi-family development; Parcel B heavy commercial
development; and Parcel C commercial development.
49
HIGHEST AND BEST USE AS IMPROVED
As previously discussed Parcels B and C are both improved with vertical building improvement. Parcel B is
improved with a retail and a warehouse building which were constructed in 1973 and 1981, respectively. Parcel
C is improved with a small (800 square foot) office/repair facility which was constructed in 1981.
Several factors are considered in order to determine if the subject improvements are consistent with the
previously concluded Highest and Best Use As Vacant for heavy commercial development (Parcel B) and
commercial development (Parcel C).
Regarding the legal conformity of the subject improvements, the property as improved is consistent with the
zoning and land use restrictions.
Regarding the functional design of the improvements, the design and finish meet the expectations of the
surrounding market. However, Parcel C is under-improved. It is our opinion the existing improvements, given
their small size and age, would represent only a contributory value to the entire site.
Regarding the financial feasibility of the subject improvements, the demand for existing commercial properties
such as Parcel B in this area is strong. Vacancy rates have remained low while sale prices and rental rates have
been increasing.
Overall, the existing improvements on Parcel B are consistent with the previously concluded highest and best
use as vacant. As this type of development is representative of the previously estimated highest and best of the
site, the highest and best use of the site as improved is for its current retail and industrial use. In terms of Parcel
C, it is our opinion the existing improvements represent only a contributory value to the subject property.
50
SEC. VI: VALUATION OF SUBJECT PROPERTY
THE APPRAISAL PROCESS
There are three standard approaches to property valuation:
Cost Approach to Value
Sales Comparison Approach to Value
Income Approach to Value
Each of these three approaches usually will indicate a slightly different value. After all of the factors of the three
approaches have been carefully weighed, the indicators of value are correlated to a final opinion of value.
Cost Approach to Value
The Cost Approach to Value requires estimating the replacement cost new of the improvements, utilizing current
labor and material prices and modern construction techniques. Next, accrued depreciation is estimated and
subtracted from the cost new. Finally, the land value is added to the remainder to derive a value for the property
as a whole. The Cost Approach is most reliable when the improvements are new and the opinion of land value
can be reasonably developed. Conversely, when the improvements are older and/or adequate land sales are not
available, the Cost Approach provides a less reliable result.
Sales Comparison Approach to Value
An opinion under the Sales Comparison Approach to Value is derived by comparing the property under appraisal
with other similar properties that have sold recently. The Sales Comparison Approach is most reliable when the
comparable sales are very similar to the subject property and have occurred relatively recently. Conversely, when
large or numerous adjustments are necessary, the Sales Comparison Approach is less reliable.
Income Approach to Value
The Income Approach to Value is normally applied to commercial or income-oriented properties, since it
measures the present worth of future rights to income. The Income Approach to Value, when adequate income
and expense data are available, is often the most reliable approach in the valuation of commercial properties as
it best represents investors' and lenders' actions in the marketplace.
Approaches Developed
As discussed within the Scope of Work section of this report, we have utilized the Sales Comparison Approach in
developing an opinion of market value for all of the properties. For Parcel B, we also considered an Income
Approach to Value. Furthermore, given the limited building improvements on Parcel C, we have estimated the
value via the Sales Comparison Approach to Value only. On the following pages, we will first estimate the market
value of Parcel A considering the Sales Comparison Approach to Value. Following this analysis, we will estimate
the market value of Parcel B considering the Sales Comparison and Income Approaches to Value. Lastly, we will
value Parcel C considering the Sales Comparison Approach to Value.
51
THE SALES COMPARISON APPROACH TO VALUE – PARCEL A
The Sales Comparison Approach to Value is a process of comparing sales of similar properties in the marketplace
to the subject property.
Market data, when carefully verified and analyzed, is good evidence of value because it represents the actions
and reactions of sellers, users and investors. The opinion of market value has been defined as an interpretation
of the reactions of typical users and investors in the marketplace. The Sales Comparison Approach is based
upon the principle of substitution, which states that a prudent person will not pay more to buy a property than it
would cost to buy a comparable substitute property. The price a typical purchaser pays is usually the result of
an extensive shopping process in which he/she is constantly comparing available alternatives.
The steps in the Sales Comparison Approach are:
1. Seek out similar properties for which pertinent sales and data are available.
2. Qualify the prices as to terms, motivating forces and bona fide nature.
3. Compare each of important attributes of the comparable properties with the corresponding
attributes of the property being appraised under the general division of time, location and physical
characteristics.
4. Consider all dissimilarities in terms of their probable effect upon the sale price.
5. Formulate an opinion of relative value of the property being appraised as compared with the price
of each similar property.
Source: Appraisal Institute, The Appraisal of Real Estate, 14th edition. (Chicago: Appraisal Institute, 2013).
The following multi-family land sales were considered in analyzing the subject Parcel A:
52
COMPARABLE LAND SALES MAP
53
COMPARABLE LAND SALE 1
4001
DATE OF SALE: February 25, 2020 ADDRESS: 2898 Weeks Avenue
SALE PRICE: $230,000 STRAP #: 81270040000
SALE PRICE (ADJUSTED): $230,000 SALE CONDITIONS: Arm's Length
RECORDING: 5732/3619 UTILITIES: Full
GRANTOR: Susan E Astley and David A Astley ZONING: RMF-6-BMUD-R1
GRANTEE: Richard H Grimes LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Conventional financing for $184,000
with Sierra Pacific Mortgage Company SALE HISTORY: None in previous five years
TOPOGRAPHY: Single family home ACCESS: Direct-Intersection
VERIFICATION: Diane Sullivan, Realtor HIGHEST AND BEST USE: Residential/Commercial
SITE AREA: 10,890 Square Feet
0.250 Acres
UNIT OF VALUE: $21.12 Per SF
$920,000 per AC
COMMENTS: The property is located at the southwest corner of Bayshore Drive and Weeks Avenue in the
Bayshore/Gateway Triangle Redevelopment Overlay in Naples. There is a small cottage on the property built
in 1954 containing 759 square feet and a small guest house built in 1934 containing 320 square feet.
54
COMPARABLE LAND SALE 2
4002
DATE OF SALE: February 06, 2020 ADDRESS: 2348 Jackson Avenue
SALE PRICE: $110,000 STRAP #: 51694000009
SALE PRICE (ADJUSTED): $110,000 SALE CONDITIONS: Arm's Length
RECORDING: 5729/465 UTILITIES: Full
GRANTOR: Impact Companies, LLC ZONING: RMF-6
GRANTEE: Michael J Austin and Judith C Austin LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Cash SALE HISTORY: 5/2015, $49,500
TOPOGRAPHY: Partially cleared ACCESS: Direct
VERIFICATION: D’Layne Graney, Coldwell Banker HIGHEST AND BEST USE: Residential
SITE AREA: 9,583 Square Feet
0.220 Acres
UNIT OF VALUE: $11.48 Per SF
$500,000 per AC
COMMENTS: The property is located on the south side of Jackson Avenue, west of Pine Street and south of
Tamiami Trail E in the Bayshore/Gateway Triangle Redevelopment Overlay area in Naples.
55
COMPARABLE LAND SALE 3
4003
DATE OF SALE: April 26, 2019 ADDRESS: 2745 Arbutus Street
SALE PRICE: $84,000 STRAP #: 48730400000
SALE PRICE (ADJUSTED): $84,000 SALE CONDITIONS: Arm's Length
RECORDING: 5624/550 UTILITIES: Full
GRANTOR: KCD Holdings, LLC ZONING: RMF-6-BMUD-R1
GRANTEE: Sagamore Naples LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Cash SALE HISTORY: 1/2014, $32,000
TOPOGRAPHY: Cleared ACCESS: Direct
VERIFICATION: Ani Gener, Agent HIGHEST AND BEST USE: Residential
SITE AREA: 10,019 Square Feet
0.230 Acres
UNIT OF VALUE: $8.38 Per SF
$365,217 per AC
COMMENTS: The property is located on the east side of Arbutus Street, north of Becca Avenue and south of
Tamiami Trail E in the Bayshore/Gateway Triangle Redevelopment Overlay area in Naples.
56
COMPARABLE LAND SALE 4
3594
DATE OF SALE: February 15, 2019 ADDRESS: 3030-3060 Thomasson Drive
SALE PRICE: $1,000,000 STRAP #: 52600200009 + 4 additional parcels
SALE PRICE (ADJUSTED): $1,000,000 SALE CONDITIONS: Arm's Length
RECORDING: 5599/3164 UTILITIES: Full
GRANTOR: Thomasson PHX LLC ZONING: RMF-6-BMUD-R-2
GRANTEE: Thomasson Village, LLC LAND USE: Bayshore/Gateway Triangle
Redevelopment Overlay
FINANCING: Cash to seller SALE HISTORY: 9/2015, $396,000
TOPOGRAPHY: Cleared ACCESS: Direct
VERIFICATION: Alisha Cage/Naples Realty Services HIGHEST AND BEST USE: Residential
SITE AREA: 165,092 Square Feet
3.790 Acres
ALLOWABLE UNITS: 20
UNIT OF VALUE: $6.06 Per SF
$263,852 per AC
$50,000 Per Unit
COMMENTS: The property is located on the south side of Thomasson Drive, east of Bayshore Drive in Naples.
Per the verifying party, the engineering for the site and floor plans have been completed for two, 10-unit multi-
family buildings totaling 20 units.
The five parcels associated with the sale include:
52600200009
52600240001
52600280003
52600320002
52600360004
57
COMPARABLE LAND SALE 5
4004
DATE OF SALE: February 06, 2020 ADDRESS: 2635 Van Buren Avenue
SALE PRICE: $110,000 STRAP #: 29281000004
SALE PRICE (ADJUSTED): $110,000 SALE CONDITIONS: Arm's Length
RECORDING: 5484/299 UTILITIES: Full
GRANTOR: Eddyth H Buckingham ZONING: RMF-6-BMUD-R1
GRANTEE: Lincoln Park Consulting, LLC LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Cash SALE HISTORY: None in previous five years
TOPOGRAPHY: Single family home ACCESS: Direct
VERIFICATION: Arlys Krauel HIGHEST AND BEST USE: Residential
SITE AREA: 13,939 Square Feet
0.320 Acres
UNIT OF VALUE: $7.89 Per SF
$343,750 per AC
COMMENTS: The property is located on the north side of Van Buren Avenue, west of Bayshore Drive in the
Bayshore/Gateway Triangle Redevelopment Overlay area in Naples. There is a single-family home on the
property that was built in 1956 containing 936 square feet.
58
Comparable Land Sales Chart – Parcel A
The comparable sales and our analysis thereof for Parcel A are summarized in the following chart:
Description of Sales
Sale 1 is the February 2020 sale of a multi-family property located at 2898 Weeks Avenue. Similar to the subject
property, this is located in the Bayshore/Gateway Triangle Overlay District. This property sold for $230,000 or
$21.12 per square foot. However, it should be noted this sale property included improvements which contribute
to the property value. This sale was adjusted for its slightly superior size, location being close to Tamiami Trail
East, and was adjusted for improvements. The final adjusted value indication is $14.81 per square foot.
Sale 2 is the February 2020 sale of a multi-family property located at 2348 Jackson Avenue. Similar to the
subject property, this is located in the Bayshore/Gateway Triangle Overlay District. This property sold for
$110,000 or $11.48 per square foot. This sale was adjusted for its smaller size. The final adjusted value
indication is $10.35 per square foot.
Sale 3 is the April 2019 sale of a multi-family property located at 2745 Arbutus Street. Similar to the subject
property, this is located in the Bayshore/Gateway Triangle Overlay District. This property sold for $84,000 or
$8.38 per square foot. This sale was adjusted downward for its smaller size. The final adjusted value indication
is $7.94 per square foot.
Sale 4 is the February 2019 sale of 3030-3060 Thomasson Drive which is adjacent to the subject property. This
property sold for $1,000,000 or $6.06 per square foot. This sale was adjusted upward for market conditions to
reflect increasing values in the marketplace. This resulted in an adjusted price of $6.44 per square foot. This
sale required an upward adjustment for size given its size at 3.9 acres compared to the subject’s 0.63 acre. The
final adjusted value indication is $7.72 per square foot.
Subject Comparable No. 1 Comparable No. 2 Comparable No. 3 Comparable No. 4 Comparable No. 5
Transaction Data:
Date of Sale:Feb-20 Feb-20 Apr-19 Feb-19 Mar-18
Sale Price $230,000 $110,000 $84,000 $1,000,000 $139,000
Physical Data:
Street Address:FOLIO #526001160000 2898 Weeks Ave.2348 Jackson Ave.2745 Arbutus Street 3030-3060 Thomasson Drive 2635 Van Buren Ave
City:Naples Naples Naples Naples Naples Naples
Site Area-sq.ft.27,443 10,890 9,583 10,019 165,092 13,939
Site Area-acres 0.63 0.25 0.22 0.23 3.79 0.32
Topography partially cleared partially cleared partially cleared cleared cleared partially cleared
Shape rectangular rectangular rectangular rectangular rectangular rectangular
Utilities:full full full full full full
Use Data:
Zoning:RMF-6-BMUD-R2 RMF-6-BMUC-R2 RMF-6-BMUC-R2 RMF-6-BMUD-R1 RMF-6-BMUD-R2 RMF-6-BMUD-R1
Highest and Best Use:residential, multifamily residential, multifamily residential, multifamily residential, multifamily residential, multifamily residential, multifamily
Sales Price Analysis:
Price per Square Foot (site):$21.12 $11.48 $8.38 $6.06 $9.97
Transactional Adjustments:
Financing Terms:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$21.12 $11.48 $8.38 $6.06 $9.97
Conditions of Sale:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$21.12 $11.48 $8.38 $6.06 $9.97
Expenditures After Purchase:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$21.12 $11.48 $8.38 $6.06 $9.97
Market Conditions (time):0.2%0.2%5.3%6.3%11.9%
(Adjusted Price per SF):$21.15 $11.50 $8.82 $6.44 $11.15
Physical Adjustments:
Location:-10%0%0%0%0%
Exposure (Frontage):0%0%0%0%0%
Access:0%0%0%0%0%
Size (Site Area):-10%-10%-10%20%-10%
Topography/Improvements:-10%0%0%0%0%
Shape:0%0%0%0%0%
Utilities:0%0%0%0%0%
Zoning/Land Use:0%0%0%0%0%
Net Adjustments -30%-10%-10%20%-10%
Adjusted Price $14.81 $10.35 $7.94 $7.72 $10.04
59
Sale 5 is the March 2018 sale of 2635 Van Buren Avenue. This property sold for $139,000 or $9.97 per square
foot. This sale was adjusted upward for market conditions to reflect increasing values in the marketplace. This
resulted in an adjusted price of $11.15 per square foot. After adjusting for smaller size, the final adjusted value
indication is $10.04 per square foot.
Analysis of Comparable Data
This analysis is dependent upon adjustments to the sale prices of the comparable sales based on the following
elements of comparison outlined by The Appraisal Institute:
1. Real property rights conveyed
2. Financing terms
3. Conditions of sale
4. Expenditures made immediately after purchase
5. Market conditions
6. Location
7. Physical characteristics
8. Economic Characteristics
9. Use
10. Non-realty components of value
For ease of analysis, we have divided this list into two parts. This division is based upon the type of adjustments
made for the differences. Elements 1 – 5 are considered to be transactional adjustments, whereas elements 6
– 10 are considered to be physical adjustments.
Transactional Adjustments
There were no transactional adjustments warranted for Property Rights Conveyed, Financing Terms, Conditions
of Sale and Expenditures Made Immediately after Purchase for these sales.
In considering Changes in Market Conditions since the time of sale, we must consider the significant changes in
the Southwest Florida real estate market. The property value trend found throughout Southwest Florida changed
drastically over the past decade or so, with substantial increases during the period of 2002-2005 followed by
equally substantial declines during the period of 2006-2009, and this declining trend reversing in 2012. Based
upon our paired sales analyses of sale/re-sales of properties in the region, as well as the previous discussion,
the comparable sales have been adjusted at positive 0.25% per month for market conditions over the timeframe
analyzed.
Value Conclusion
The comparable multi-family land sales range in adjusted prices as shown below:
After considering this information and considering the size of the subject property at 0.63 acre, we have
concluded a market value estimate for Parcel A at $9.00 per square foot. Heavy consideration was given to Sale
4 which is located adjacent to the subject property. However, this sale was much larger at 3.79 acres compared
Descriptive Statistics:
Multiplier:*Adj. Price per SF:
Mean:$10.17
Median:$10.04
Standard Deviation:$2.85
Minimum:$7.72
Maximum:$14.81
Range:$7.08
60
to the subject’s 0.63 acre and required upward adjustments. Also, the remaining four sales were considered.
However, these sales were much smaller than the subject property and required downward adjustments. Based
on this information, we have estimated the market value of Parcel A as follows:
Site Area (sf)Value per Sq.Ft.Opinion of Value Rounded to
27,443 $9.00 $246,985 $245,000
61
THE SALES COMPARISON APPROACH TO VALUE – PARCEL B
The Sales Comparison Approach to Value is a process of comparing sales of similar properties in the marketplace
to the subject property.
Market data, when carefully verified and analyzed, is good evidence of value because it represents the actions
and reactions of sellers, users and investors. The opinion of market value has been defined as an interpretation
of the reactions of typical users and investors in the marketplace. The Sales Comparison Approach is based
upon the principle of substitution, which states that a prudent person will not pay more to buy a property than it
would cost to buy a comparable substitute property. The price a typical purchaser pays is usually the result of
an extensive shopping process in which he/she is constantly comparing available alternatives.
The steps in the Sales Comparison Approach are:
6. Seek out similar properties for which pertinent sales and data are available.
7. Qualify the prices as to terms, motivating forces and bona fide nature.
8. Compare each of important attributes of the comparable properties with the corresponding
attributes of the property being appraised under the general division of time, location and physical
characteristics.
9. Consider all dissimilarities in terms of their probable effect upon the sale price.
10. Formulate an opinion of relative value of the property being appraised as compared with the price
of each similar property.
Source: Appraisal Institute, The Appraisal of Real Estate, 14th edition. (Chicago: Appraisal Institute, 2013).
Generally, there are two methods of analyzing this type of property within the Sales Comparison Approach, those
being the Sale Price Per Square Foot of Building Area and the Effective Gross Income Multiplier (EGIM) analyses.
Due to the typical actions of buyers and sellers for this property type within this marketplace, we have utilized
the Sale Price Per Square Foot Analysis exclusively.
In developing an opinion of the market value of Parcel B via the Sales Comparison Approach, we have analyzed
the following comparable sales:
62
COMPARABLE IMPROVED SALES MAP
63
COMPARABLE IMPROVED SALE 1
3838
DATE OF SALE: August 22, 2019 ADDRESS: 3209 Van Buren Avenue, Naples
SALE PRICE: $787,500 STRAP #: 52700960207
ADJUSTED PRICE: $787,500 ZONING: C-5-BMUD-NC-Bayshore/Gateway
Triangle Redevelopment Overlay
RECORDING: 5667/140 FUTURE LAND USE: Urban Mixed Use
District/Urban Coastal Fringe Subdistrict
GRANTOR: Port Royal Partners, LLC SITE AREA: 17,400 Sq. Ft.
GRANTEE: Richard Floyd Wear NET BUILDING AREA: 6,000 Sq. Ft.
PROPERTY RIGHTS: Fee Simple GROSS BUILDING AREA: 6,000 Sq. Ft.
FINANCING: Conventional mortgage for $630,000
with Silver Hill Funding
LAND TO BUILDING RATIO : 2.90:1
CONDITIONS OF SALE: Arm's Length YEAR BUILT: 1990
SALE HISTORY: None in previous five years CONDITION: Average
PROPERTY TYPE: Industrial Warehouse HIGHEST AND BEST USE: As Improved, Industrial
building
VERIFICATION: Bill Mankin/Colliers International
Southwest Florida
VERIFIED BY: Gerald A. Hendry
COMMENTS: The property is located on the north side of Van Buren Avenue, east of Bayshore Drive within
the Bayshore Mixed Use District Overlay in Naples. The site is improved with a steel warehouse building
constructed in 1990 containing 6,000 square feet of leasable area. The building has 345 square feet of
finished office space (6%), 16' eave height and 18' center height.
64
INCOME AND EXPENSE ANALYSIS
INCOME COMMENTS: Income/expense based on market and actual data.
OCCUPANCY AT SALE: 100
POTENTIAL GROSS INCOME: $72,000
VACANCY AND COLLECTION LOSS: $2,160
EFFECTIVE GROSS INCOME: $69,840
OPERATING EXPENSES: $11,709
NET OPERATING INCOME: $58,131
OVERALL RATE: 7.38%
POTENTIAL GROSS INCOME MULTIPLIER: 10.94
EFFECTIVE GROSS INCOME MULTIPLIER: 11.28
OPERATING EXPENSE RATIO: 16.77%
SALE PRICE PER SQUARE FOOT (GROSS): $131.25
SALE PRICE PER SQUARE FOOT (NET): $131.25
65
COMPARABLE IMPROVED SALE 2
3837
DATE OF SALE: April 16, 2019 ADDRESS: 4896 Rattlesnake Hammock Road,
Naples
SALE PRICE: $495,000 STRAP #: 63104200002
ADJUSTED PRICE: $495,000 ZONING: C-4
RECORDING: 5623/1102 FUTURE LAND USE: Commercial District/Mixed Use
Activity Center Subdistrict
GRANTOR: Sheila Ronald, Trustee SITE AREA: 18,295 Sq. Ft.
GRANTEE: Dominga Flowers of Naples, LLC NET BUILDING AREA: 2,640 Sq. Ft.
PROPERTY RIGHTS: Fee Simple GROSS BUILDING AREA: 2,640 Sq. Ft.
FINANCING: Private financing for $315,000 LAND TO BUILDING RATIO : 6.93:1
CONDITIONS OF SALE: Arm's Length YEAR BUILT: 1970
SALE HISTORY: None in previous five years CONDITION: Average
PROPERTY TYPE: Commercial Retail, Free-Standing HIGHEST AND BEST USE: As Improved, Commercial
building
VERIFICATION: Marie Macaluso/broker/EXP Realty VERIFIED BY: Gerald A. Hendry
COMMENTS: The property is located on the north side of Rattlesnake Hammock Road, east of Tamiami
Trail E in Naples. The site is improved with a retail building constructed in 1970 containing 2,640 square
feet of leasable area. The building was leased to a church on a short term basis but owner occupied
subsequent to sale.
66
INCOME AND EXPENSE ANALYSIS
INCOME COMMENTS: Income/expense based on market derived data.
OCCUPANCY AT SALE: 100
POTENTIAL GROSS INCOME: $36,960
VACANCY AND COLLECTION LOSS: $1,848
EFFECTIVE GROSS INCOME: $35,112
OPERATING EXPENSES: $7,022
NET OPERATING INCOME: $28,090
OVERALL RATE: 5.67%
POTENTIAL GROSS INCOME MULTIPLIER: 13.39
EFFECTIVE GROSS INCOME MULTIPLIER: 14.10
OPERATING EXPENSE RATIO: 20.00%
SALE PRICE PER SQUARE FOOT (GROSS): $187.50
SALE PRICE PER SQUARE FOOT (NET): $187.50
67
COMPARABLE IMPROVED SALE 3
3839
DATE OF SALE: December 19, 2019 ADDRESS: 2400 Davis Boulevard, Naples
SALE PRICE: $550,000 STRAP #: 22720440009
ADJUSTED PRICE: $550,000 ZONING: C-5-GTMUD-MXD-Bayshore Mixed Use
District Overlay
RECORDING: 5709/385 FUTURE LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle
Redevelopment Overlay
GRANTOR: Lanelle Bishop, Trustee SITE AREA: 6,098 Sq. Ft.
GRANTEE: 2400 Davis Blvd LLC NET BUILDING AREA: 2,952 Sq. Ft.
PROPERTY RIGHTS: Fee Simple GROSS BUILDING AREA: 2,952 Sq. Ft.
FINANCING: Conventional mortgage with First
Florida Integrity Bank for $412,500
LAND TO BUILDING RATIO : 2.07:1
CONDITIONS OF SALE: Arm's Length YEAR BUILT: 1957
SALE HISTORY: None in previous five years CONDITION: Average
PROPERTY TYPE: Commercial Retail, Free-Standing HIGHEST AND BEST USE: As Improved, retail
building
VERIFICATION: Michael Whalen, representative of
Grantee
VERIFIED BY: Mandy Davis
COMMENTS: The property is located at the southeast corner of Davis Boulevard and Avondale Street in
the Bayshore Mixed Use District Overlay in Naples. The site is improved with a 2,952 square foot retail
building constructed in 1957.
68
INCOME AND EXPENSE ANALYSIS
INCOME COMMENTS: Income/expense based on market derived data.
OCCUPANCY AT SALE:
POTENTIAL GROSS INCOME: $59,040
VACANCY AND COLLECTION LOSS: $2,362
EFFECTIVE GROSS INCOME: $56,678
OPERATING EXPENSES: $15,303
NET OPERATING INCOME: $41,375
OVERALL RATE: 7.52%
POTENTIAL GROSS INCOME MULTIPLIER: 9.32
EFFECTIVE GROSS INCOME MULTIPLIER: 9.70
OPERATING EXPENSE RATIO: 27.00%
SALE PRICE PER SQUARE FOOT (GROSS): $186.31
SALE PRICE PER SQUARE FOOT (NET): $186.31
69
COMPARABLE IMPROVED SALE 4
3022
DATE OF SALE: February 07, 2018 ADDRESS: 3196 Davis Boulevard, Naples
SALE PRICE: $1,525,000 STRAP #: 61843240008
ADJUSTED PRICE: $1,525,000 ZONING: C-5-GTMUD-MXD
RECORDING: 5477/3509 FUTURE LAND USE: Commercial District-Livingston
Road/Eastwood Lane Commercial Infill Subdist
GRANTOR: St Vincent De Paul Society Naples
District Council, Inc.
SITE AREA: 37,897 Sq. Ft.
GRANTEE: Davis Shop, LLC NET BUILDING AREA: 11,610 Sq. Ft.
PROPERTY RIGHTS: Fee Simple GROSS BUILDING AREA: 11,610 Sq. Ft.
FINANCING: Cash LAND TO BUILDING RATIO : 3.26:1
CONDITIONS OF SALE: Arm's Length YEAR BUILT: 1967-2002
SALE HISTORY: None in previous five years CONDITION: Average - 25 yearsw effective
PROPERTY TYPE: Commercial Retail, Free-Standing HIGHEST AND BEST USE: Commercial
VERIFICATION: Bryan Flores/Kova Commercial VERIFIED BY: Mandy Davis
COMMENTS: The property is located on the south side of Davis Boulevard, west of Airport-Pulling Road in
Naples. The site is improved with 2 retail buildings built in 1967 and 2002 containing a total of 11,610
square feet of leasable area. The property has right-in, right out access. Sale price was reduced by
$150,000 due to roof damage from Hurricane Irma.
70
INCOME AND EXPENSE ANALYSIS
INCOME COMMENTS: Income/expense based on market derived data. The seller leased the property back for
six months.
OCCUPANCY AT SALE: 100%
POTENTIAL GROSS INCOME: $152,427
VACANCY AND COLLECTION LOSS: $12,194
EFFECTIVE GROSS INCOME: $140,233
OPERATING EXPENSES: $38,431
NET OPERATING INCOME: $101,802
OVERALL RATE: 6.68%
POTENTIAL GROSS INCOME MULTIPLIER: 10.00
EFFECTIVE GROSS INCOME MULTIPLIER: 10.87
OPERATING EXPENSE RATIO: 27.41%
SALE PRICE PER SQUARE FOOT (GROSS): $131.35
SALE PRICE PER SQUARE FOOT (NET): $131.35
71
COMPARABLE IMPROVED SALE 5
3198
DATE OF SALE: May 31, 2017 ADDRESS: 4097 Bayshore Drive, Naples
SALE PRICE: $540,000 STRAP #: 53353600007 & 53353560008
ADJUSTED PRICE: $540,000 ZONING: C-4
RECORDING: 5401/2519 FUTURE LAND USE: Bayshore/Gateway Triangle
Redevelopment Overlay
GRANTOR: Allan and Susan Crum SITE AREA: 15,965 Sq. Ft.
GRANTEE: Jean B. Zehnder Revocable Trust NET BUILDING AREA: 2,400 Sq. Ft.
PROPERTY RIGHTS: Fee Simple GROSS BUILDING AREA: 2,400 Sq. Ft.
FINANCING: Cash to Seller LAND TO BUILDING RATIO : 6.65:1
CONDITIONS OF SALE: Arm's Length YEAR BUILT: 1975
SALE HISTORY: None in Prior 3 Years CONDITION: Average
PROPERTY TYPE: Commercial Flex HIGHEST AND BEST USE: Retail/Flex
VERIFICATION: Broker VERIFIED BY: K. Jacob Hutchings
COMMENTS: This is a flex/retail building located on the east side of Bayshore Drive, 1/2 mile north of
Thomasson Drive in Naples, Florida. The property was marketed for 8 months prior to its sale.
72
INCOME AND EXPENSE ANALYSIS
INCOME COMMENTS: Based on market estimates
OCCUPANCY AT SALE: N/A
POTENTIAL GROSS INCOME: $45,600
VACANCY AND COLLECTION LOSS: $2,280
EFFECTIVE GROSS INCOME: $43,320
OPERATING EXPENSES: $7,045
NET OPERATING INCOME: $36,275
OVERALL RATE: 6.72%
POTENTIAL GROSS INCOME MULTIPLIER: 11.84
EFFECTIVE GROSS INCOME MULTIPLIER: 12.47
OPERATING EXPENSE RATIO: 16.26%
SALE PRICE PER SQUARE FOOT (GROSS): $225.00
SALE PRICE PER SQUARE FOOT (NET): $225.00
73
Sale Price Per Square Foot Analysis – Parcel B
The comparable sales and our analysis thereof are summarized in the following chart:
Description of Sales
Sale 1 is the August 2019 sale of a light industrial property located at 3209 Van Buren Avenue. This property
sold for $787,500 or $131.25 per square foot. This sale required a slight upward adjustment for market
conditions which resulted in an adjusted price of $135.19 per square foot. This sale was located off of Bayshore
Drive with less exposure than the subject property and as such, was adjusted upward for location and exposure.
This sale property had a slightly lower effective age than the subject property and as such, was adjusted
downward. After adjustments, the final adjusted value indication is $158.85 per square foot.
Sale 2 is the April 2019 sale of a retail facility located at 4896 Rattlesnake Hammock Road. This property sold
for $495,000 or $187.50 per square foot. This sale was adjusted upward for market conditions which resulted
in an adjusted price of $197.81 per square foot. This sale was adjusted upward for its inferior exposure having
only minimal frontage along Rattlesnake Hammock Road. Conversely, this sale was adjusted downward for its
superior building size as well as downward for its higher land to building ratio compared to the subject property.
The final adjusted value indication is $168.14 per square foot.
Sale 3 is the May 2018 sale of a retail facility located at 2400 Davis Boulevard within the Bayshore/Gateway
Triangle Overlay District. This property sold for $550,000 or $186.31 per square foot. This sale was adjusted
upward for market conditions which resulted in an adjusted price of $206.81 per square foot. This sale was
adjusted downward for its superior location in the Davis Boulevard corridor, however, was offset by its single
road frontage compared to the subject’s dual road frontage on Bayshore Drive and Thomasson Drive. This
property had a lower effective age than the subject property and as such, a downward adjustment was applied.
Transaction Data:
Date of Sale:Aug-19 Apr-19 May-18 Feb-18 May-17
Sale Price:$787,500 $495,000 $550,000 $1,525,000 $540,000
Physical Data:
Location:2808 Thomasson
Drive 3209 Van Buren Ave.4896 Rattlesnake
Hammock Rd.2400 Davis Blvd. 3196 Davis Blvd. 4097 Bayshore Drive
Naples Naples Naples Naples Naples Naples
Gross Sq. Ft. (Site): 19,166 17,300 18,295 6,098 37,897 15,965
Year Built: 1973-1981 1990 1970 1957 1967-2002 1975
Building Size: 7,520 6,000 2,640 2,952 11,610 2,400
Land/Building Ratio: 2.55 2.88 6.93 2.07 3.26 6.65
Zoning C-5-BMUD- NC C-5-BMUD-NC C-4 C-5-GTMUD-MXD C-5-GTMUD-MXD C-4-BMUC-NC
Sales Price Analysis:
Price per Square Foot (Net):$131.25 $187.50 $186.31 $131.35 $225.00
Transactional Adjustments:
Financing Terms:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$131.25 $187.50 $186.31 $131.35 $225.00
Conditions of Sale:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$131.25 $187.50 $186.31 $131.35 $225.00
Expenditures After Purchase:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$131.25 $187.50 $186.31 $131.35 $225.00
Market Conditions (time):3.0%5.5%11.0%12.5%17.0%
(Adjusted Price per SF):$135.19 $197.81 $206.81 $147.77 $263.25
Physical Adjustments:
Location:10%0%-10%-10%0%
Exposure (Frontage):15%10%10%10%10%
Access:0%0%0%0%0%
Quality/Appeal:0%0%0%0%0%
Condition/Effective Age:-8%0%-8%0%-23%
Building Size (Net):0%-10%-10%5%-10%
Land/Building Ratio:0%-15%0%0%-15%
Net Adjustment 18%-15%-18%5%-38%
Adjusted Price per SF:$158.85 $168.14 $170.62 $155.16 $164.53
74
In addition, this sale was adjusted downward for its smaller building size. The final adjusted value indication is
$170.62 per square foot.
Sale 4 is the February 2018 sale of a retail facility located at 3196 Davis Boulevard. This property sold for
$1,525,000 or $131.35 per square foot. This sale required an upward market conditions adjustment which
resulted in an adjusted price of $147.77 per square foot. This sale was adjusted downward for its superior
location in the Davis Boulevard corridor, however, this was offset by its single road frontage. This sale was
adjusted upward for its slightly larger building. The final adjusted value indication was $155.16 per square foot.
Sale 5 is the May 2017 sale of a retail facility located at 4097 Bayshore Drive. This property sold for $540,000
or $225.00 per square foot. This sale was adjusted upward for market conditions which resulted in an adjusted
price of $263.25 per square foot. This sale was considered to be inferior due to its single road exposure,
however, was far superior in terms of its effective age, building size, and land to building ratio. The final adjusted
value indication is $164.53 per square foot.
Analysis of Comparable Data
The Sales Comparison Approach is dependent upon adjustments to the sale prices of the comparable sales
based upon the following elements of comparison outlined by The Appraisal Institute:
1. Real property rights conveyed
2. Financing terms
3. Conditions of sale
4. Expenditures made immediately after purchase
5. Market conditions
6. Location
7. Physical characteristics
8. Economic Characteristics
9. Use
10. Non-realty components of value
For ease of analysis, we have divided this list into two parts. This division is based upon the type of adjustments
made for the differences. Elements 1 – 5 are considered to be transactional adjustments, whereas elements 6
– 10 are considered to be physical adjustments.
Transactional Adjustments
There were no transactional adjustments warranted for Real Property Rights Conveyed, Financing Terms,
Conditions of Sale and Expenditures Made Immediately after Purchase for these sales.
In considering Changes in Market Conditions since the time of sale, we must consider the significant changes in
the Southwest Florida real estate market. The property value trend found throughout Southwest Florida changed
drastically over the past decade or so, with substantial increases during the period of 2002-2005 followed by
equally substantial declines during the period of 2006-2009, and this declining trend reversing in 2012. Based
upon our paired sales analyses of sale/re-sales of properties in the region, as well as the previous discussion,
the comparable sales have been adjusted at 0.25% per month for market conditions over the timeframe
analyzed.
75
Value Conclusion
These sales range in adjusted price as illustrated below:
After considering these sales, with heaviest consideration given to Sales 1, 2, and 3, it is our opinion that the
Sale Price per Square Foot method provides an opinion of market value for the subject property of $160.00 per
square foot of building area, as illustrated below:
Descriptive Statistics:
Multiplier:*Price per SF:
Mean:$163.46
Median:$164.53
Standard Deviation:$6.41
Minimum:$155.16
Maximum:$170.62
Range:$15.46
* Based on adjusted price
Net Area (sf)Value per Sq. Ft.Opinion of Value Rounded to
7,520 $160.00 $1,203,200 $1,205,000
76
THE INCOME APPROACH TO VALUE – PARCEL B
The Income Approach to Value is based upon the premise that an investor who purchases income producing real
estate is trading a sum of present dollars for the right to receive future dollars. Income producing property is
typically purchased for investment purposes, and the projected net income stream is the critical factor affecting
its market value.
The Income Approach is also greatly affected by the principle of anticipation. This is reflected in the definition of
value which states that value is the present worth of all rights to future benefits. Therefore, the projected income
stream is of extreme importance when developing an opinion of value. The appraiser must consider both quality
and quantity of the income stream as it relates to value. Many factors can affect net income, including supply
and demand, changes in land use, or traffic patterns. External forces such as a rise in interest rates or social
changes may also affect value.
The valuation of a property utilizing the Income Approach consists of the following procedure:
1. Estimate Gross Income either by contract rent or comparison to similar properties (market rent).
2. Estimate an appropriate vacancy and collection loss.
3. Estimate expenses which consist of three categories: fixed (expenses not affected by occupancy),
variable (expenses affected by occupancy) and allowance for replacement.
4. Subtract expenses from effective gross income to estimate net operating income.
5. By use of the proper capitalization technique, convert net operating income into value.
Source: Appraisal Institute, The Appraisal of Real Estate, 14th Edition (Chicago: Appraisal Institute, 2013).
Generally, two types of analysis are utilized when developing the Income Approach: Direct Capitalization which
analyzes the income stream from a single year, and Discounted Cash Flow which analyzes the income stream
over multiple years. In this situation, we have estimated the value via the Income Approach utilizing the Direct
Capitalization method.
In developing an opinion of the market value of the subject property via the Income Approach to Value, we have
analyzed the following comparable rentals:
77
COMPARABLE RENTALS MAP
78
COMPARABLE RENTAL 1
3208
ADDRESS: 2795 Davis Boulevard, Naples, FL
BUILDING AREA: 1,050 Square Feet
MINIMUM UNIT SIZE: 1,050 Square Feet
MAXIMUM UNIT SIZE: 1,050 Square Feet
MINIMUM RENTAL RATE: $12.00 Per Square Foot
MAXIMUM RENTAL RATE: $12.00 Per Square Foot
CAM CHARGES: CAM - $4.35 per square foot
TERMS: three year lease, triple net
CURRENT OCCUPANCY: 100
COMMENTS: This rental property is located on the north side of Davis Boulevard, east of Tamiami Trail E. and
west of Airport Pulling Road. This is a 1982 built retail center known as Davis Plaza. The most recent lease
was signed in February 2020 on a 1,050 sq.ft. space for a three year term.
79
COMPARABLE RENTAL 2
3209
ADDRESS: 2495 Linwood Avenue, Naples, Fl
BUILDING AREA: 1,600 Square Feet
MINIMUM UNIT SIZE: 1,600 Square Feet
MAXIMUM UNIT SIZE: 1,600 Square Feet
MINIMUM RENTAL RATE: $14.00 Per Square Foot
MAXIMUM RENTAL RATE: $14.00 Per Square Foot
CAM CHARGES: Gross lease - no CAM
TERMS: 3-5 years, Gross lease
CURRENT OCCUPANCY: 100
COMMENTS: This is an industrial flex property located on the north side of Linwood Avenue, just south of
Davis Boulevard. This is a steel frame, metal clad industrial flex facility which was constructed in 1990. The
most recent lease occurred in February 2020 on a 1,600 square foot unit.
80
COMPARABLE RENTAL 3
3210
ADDRESS: 2825 Davis Boulevard, Naples, FL
BUILDING AREA: 9,900 Square Feet
MINIMUM UNIT SIZE: 9,900 Square Feet
MAXIMUM UNIT SIZE: 9,900 Square Feet
MINIMUM RENTAL RATE: $13.00 Per Square Foot
MAXIMUM RENTAL RATE: $13.00 Per Square Foot
CAM CHARGES: CAM - est. at $4.25 psf
TERMS: Three year lease, triple net
CURRENT OCCUPANCY: 100
COMMENTS: This rental property is locate on the north side of Davis Boulevard just west of Shadowlawn Drive
in Naples. The center is a retail/flex facility which was constructed in 1982. The most recent lease was for a
9,900 square foot space which was signed in December 2019 for a three year term.
81
COMPARABLE RENTAL 4
3211
ADDRESS: 4221 Tamiami Trail E., Naples, FL
BUILDING AREA: 5,700 Square Feet
MINIMUM UNIT SIZE: 5,700 Square Feet
MAXIMUM UNIT SIZE: 5,700 Square Feet
MINIMUM RENTAL RATE: $11.50 Per Square Foot
MAXIMUM RENTAL RATE: $11.50 Per Square Foot
CAM CHARGES: CAM - $4.20 psf
TERMS: Five year lease, Triple net
CURRENT OCCUPANCY: 100
COMMENTS: This property is located on the southeast side of Lakewood Boulevard and the northeast side of
Tamiami Trail E in Naples. The property is improved with a retail center which was constructed in 1981. The
most recent lease was a 5,700 sq.ft. space for a five year term starting February 2020.
82
COMPARABLE RENTAL 5
3212
ADDRESS: 2448 Kirkwood Avenue, Naples, Fl
BUILDING AREA: 2,150 Square Feet
MINIMUM UNIT SIZE: 2,100 Square Feet
MAXIMUM UNIT SIZE: 2,100 Square Feet
MINIMUM RENTAL RATE: $10.75 Per Square Foot
MAXIMUM RENTAL RATE: $10.75 Per Square Foot
CAM CHARGES: gross lease, no CAM
TERMS: Three years, Gross lease
CURRENT OCCUPANCY: 100
COMMENTS: This property is located on the south side of Kirkwood Avenue, just east of Avondale Street in
Naples. This property is improved with a 1986 built industrial/flex facility. The most recent lease was a 2,150
sq.ft. space, leased in October 2019 for a three year term.
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Direct Capitalization Method
The Direct Capitalization Method is defined by The Appraisal of Real Estate, 14th Edition as follows:
A method used to convert an estimate of a single year’s income expectancy into an indication of value in one
direct step, either by dividing the income estimate by an appropriate rate or by multiplying the income estimate
by an appropriate factor.
A capitalization technique that employs capitalization rates and multipliers extracted from sales. Only the first
year’s income is considered. Yield and value change are implied but not identified.
The steps of the Income Approach using direct capitalization are summarized as follows:
Estimate the Gross Income (GI) of the property.
Estimate the addition of any CAM or pass-through expense income.
Calculate the Potential Gross Income (PGI) of the property.
Add any additional income from sources other than rent.
Subtract the typical annual amount of income that will not be collected because of
vacancies and collection problems, resulting in the Effective Gross Income (EGI).
From the EGI, subtract variable expenses, fixed expenses and allowance for the
replacement of short-lived items, resulting in the Net Operating Income (NOI).
Develop a direct overall capitalization rate by dividing the known NOI's of properties
that have sold that are comparable to the subject property by the selling price of each
comparable sale. Additionally, an analysis of rates of return for competitive investment
vehicles, such as Certificates of Deposit, stocks, bonds, etc. is conducted to ensure
that a prudent investor would consider this income stream to be a worthwhile return
on investment. Reconcile them into one rate appropriate for the subject property.
Divide the NOI of the property being appraised by the appropriate capitalization rate
which gives an indicated value of the property via the Direct Capitalization Method of
the Income Approach.
Comparable Rentals & Potential Gross Income
The comparable rental data that we have analyzed is summarized in the following chart:
Based upon our analysis of this information, we have estimated a base rent for the subject property of $15.00
per square foot. We estimate a typical lease for a property similar to the subject property on a gross basis with
no passthroughs for Common Area Maintenance (CAM) income. In this analysis, we estimate a total potential
gross income for the subject property at $112,800.
BASE RENT/EFFECTIVE
RENTAL #LOCATION SQ.FT. CAM RENT COMMENTS
1 2795 Davis Blvd.$12.00 $4.35 $16.35 Lease signed 2/2020
2 2483-2495 Linwood Ave. $14.00 $0.00 $14.00 Lease start 2/2020
3 2825 Davis Blvd.$13.00 $4.25 $17.25 Lease start 1/2020
4 4221 Tamiami Trail E.$11.50 $4.20 $15.70 Lease start 2/2020
5 2448 Kirkwood Ave.$10.75 $0.00 $10.75 Lease start 10/2019
A verage $12.25 $2.56 $14.81
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Vacancy and Collection Loss/Effective Gross Income
The subject property type would typically be leased on a 3 to 5 year basis. A typical lease would include renewal
options that require advance notice to the Lessor as to whether the option will or will not be exercised. As
previously noted in the highest and best use, vacancy rates for retail users in this market are extremely low. The
following chart prepared by CoStar illustrates the vacancy trends for this retail and industrial space in the market
area:
Retail
Industrial
Based upon this information as well as the overall strength of the market, we have estimated a vacancy and
collection loss rate of 5%. This reflects both the risk of securing a tenant as well as potential collection loss over
the term of a lease. Subtracting the vacancy and collection loss from the potential gross income developed
earlier provides an effective gross income of $107,160.
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Expenses
No property expense information was provided and, therefore, we have estimated based on comparable expense
data as well as public record information.
Fixed Expenses
Fixed expenses are those expenses that do not normally vary with occupancy.
Real Estate Taxes: We have utilized the actual 2019 real estate taxes which were $4,462.
Insurance: This item represents the fire and extended coverage, liability coverage and flood coverage
needed to utilize a property for rental income. Based upon research in the marketplace, we have
estimated a rate of $0.75 per square foot of building area, or $5,640.
Variable Expenses
Variable expenses are those expenses that do normally vary with occupancy.
Management: This item represents the time and effort put forth in the management of the property. As
the subject property is a two unit facility, the amount of time/work associated with managing the
property should be minimal. Based upon market evidence, we have estimated a charge of 4% of
Effective Gross Income (EGI), or $4,286.
Maintenance/Repairs: Historically, maintenance costs for this property type have ranged from $0.25
to $1.50 per square foot. Based upon the current condition of the improvements and a review of
comparable expenses for industrial and retail facilities, we have estimated a rate of $0.65 per square
foot, or $4,888.
Utilities: This reflects the charges for any common utilities such as exterior lighting, trash pickup, any
water/sewer costs not covered in the annual lease amount, etc. We have estimated that utilities would
be passed through or paid for directly by the tenant.
Miscellaneous: Miscellaneous expenses including minor accounting costs and other fees have been
estimated at $500.
Allowance For Replacement
Historically, allowance for this property type has ranged from 1% to 2% of the Effective Gross Income (EGI).
Based upon the age and condition of the subject improvements, we estimate an allowance for replacement of
1% of effective gross income, or $1,072.
Net Operating Income
Utilizing the above information, we have estimated total operating expenses of $20,848, or 19% of effective
gross income. Subtracting the operating expenses from the effective gross income provides a net operating
income of $86,312.
Overall Capitalization Rate Analysis
The final step in the Income Approach is the selection of an appropriate overall capitalization rate. This rate is
simply a relationship between the net operating income and the sale price of a property, and represents a “return
on” and a “return of” investment. There is also an element of consideration for risk associated with the collection
of expected income.
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Market Participant Surveys
As illustrated below, the most recent information provided by the Real Estate Research Corporation indicates a
range of going-in overall capitalization rates for Second-Tier retail and industrial properties from 6.5% to 11.0%:
Comparable Sales
In addition, the overall capitalization rates indicated for the comparable sales utilized earlier are shown below:
SALE SALE BUILDING OVERALL
# DATE SIZE(sq.ft.) RATE
1 Aug-19 6,000 7.38%
2 Apr-19 2,640 5.67%
3 Dec-19 2,952 7.52%
4 Feb-18 11,610 6.68%
5 May-17 2,400 6.72%
Average 5,120 6.79%
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Conclusion
Based upon the nature of the subject property and the relative risk of vacancy/collections, we estimate a
reasonable overall capitalization rate to be 7.5%.
Value Conclusion-Direct Capitalization Method
As illustrated by the following chart, we have capitalized (divided) the net operating income at the appropriate
overall capitalization rate which indicates an opinion of market value of $1,150,000:
POTENTIAL GROSS INCOME (PGI)
Base Rent 7,520 sf x $15.00 per sf = 112,800$
CAM Passthrough 7,520 sf x $0.00 per sf = -
Total PGI 112,800$
LESS VACANCY & COLLECTION LOSS 5.0% 5,640
PLUS OTHER INCOME -$
EFFECTIVE GROSS INCOME (EGI)107,160$
LESS: OPERATING EXPENSES
Fixed Expenses
Real Estate Taxes 4,462$
Insurance 5,640
Total 10,102$
Variable Expenses
Management @ 4.0% 4,286$
Maintenance & Repairs 4,888
Tenant Improvements -
Utilities -
Janitorial -
Lease Commissions -
Miscellaneous 500
Total 9,674$
Allowance for Replacement 1.0% $1,072
Total 19%20,848
NET OPERATING INCOME (NOI)86,312$
VALUE CONCLUSION:
NOI / OVERALL RATE = VALUE
86,312$ / 7.50% $1,150,827
INDICATED VALUE BY DIRECT CAPITALIZATION APPROACH $1,150,000
DIRECT CAPITALIZATION APPROACH
88
THE SALES COMPARISON APPROACH TO VALUE – PARCEL C
The Sales Comparison Approach to Value is a process of comparing sales of similar properties in the marketplace
to the subject property.
Market data, when carefully verified and analyzed, is good evidence of value because it represents the actions
and reactions of sellers, users and investors. The opinion of market value has been defined as an interpretation
of the reactions of typical users and investors in the marketplace. The Sales Comparison Approach is based
upon the principle of substitution, which states that a prudent person will not pay more to buy a property than it
would cost to buy a comparable substitute property. The price a typical purchaser pays is usually the result of
an extensive shopping process in which he/she is constantly comparing available alternatives.
The steps in the Sales Comparison Approach are:
11. Seek out similar properties for which pertinent sales and data are available.
12. Qualify the prices as to terms, motivating forces and bona fide nature.
13. Compare each of important attributes of the comparable properties with the corresponding
attributes of the property being appraised under the general division of time, location and physical
characteristics.
14. Consider all dissimilarities in terms of their probable effect upon the sale price.
15. Formulate an opinion of relative value of the property being appraised as compared with the price
of each similar property.
Source: Appraisal Institute, The Appraisal of Real Estate, 14th edition. (Chicago: Appraisal Institute, 2013).
In estimating the market value of Parcel C, consideration was given to the following commercial land sales
primarily within the Bayshore/Gateway Triangle Overlay District which can be shown as follows:
89
COMPARABLE LAND SALES MAP
90
COMPARABLE LAND SALE 1
3999
DATE OF SALE: November 11, 2019 ADDRESS: Bayshore Drive
SALE PRICE: $429,000 STRAP #: 53353320002,53353360004,
53353400003
SALE PRICE (ADJUSTED): $429,000 SALE CONDITIONS: Arm's Length
RECORDING: 5694/3132 UTILITIES: Full
GRANTOR: Kaushik J Sanghvi and Hina K Sanghvi ZONING: C-4-BMUD-NC
GRANTEE: Pelican Marine, LLC LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Cash SALE HISTORY: None in previous five years
TOPOGRAPHY: Mostly cleared ACCESS: Direct
VERIFICATION: Roland Hauber, Permier Plus HIGHEST AND BEST USE: Commercial
SITE AREA: 22,216 Square Feet
0.510 Acres
UNIT OF VALUE: $19.31 Per SF
$841,176 per AC
COMMENTS: The property is located on the east side of Bayshore Drive, south of Lunar Street in the
Bayshore/Gateway Triangle Redevelopment Overlay area in Naples.
91
COMPARABLE LAND SALE 2
4000
DATE OF SALE: March 21, 2019 ADDRESS: 3181 Bayshore Drive
SALE PRICE: $430,000 STRAP #: 71780240009
SALE PRICE (ADJUSTED): $430,000 SALE CONDITIONS: Arm's Length
RECORDING: 5611/2265 UTILITIES: Full
GRANTOR: Roy W Martri and Yvonne E Marti-Garbee ZONING: C-4-BMUD-NC
GRANTEE: Beachwalk Brown LLC LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Conventional financing for $330,000 SALE HISTORY: None in previous five years
TOPOGRAPHY: Cleared ACCESS: Direct-Intersection
VERIFICATION: Christina Walsh, Domain Realty HIGHEST AND BEST USE: Commercial
SITE AREA: 24,829 Square Feet
0.570 Acres
UNIT OF VALUE: $17.32 Per SF
$754,386 per AC
COMMENTS: The property is located at the northeast corner of Bayshore Drive and Sabal Court in the
Bayshore/Gateway Triangle Redevelopment Overlay area in Naples. The property has frontage on a canal with
access to the Gulf of Mexico. There is a single-family home on the lot.
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COMPARABLE LAND SALE 3
3998
DATE OF SALE: March 01, 2019 ADDRESS: Bayshore Drive
SALE PRICE: $900,000 STRAP #: 71580240005 & 71580220009
SALE PRICE (ADJUSTED): $900,000 SALE CONDITIONS: Arm's Length
RECORDING: 5604/1786 UTILITIES: Full
GRANTOR: T Ryan Family II, LLC ZONING: C-4-BMUD-NC
GRANTEE: Maddox & Partners, LLC LAND USE: Urban Mixed Use
District/Bayshore/Gatewau Triangle Redev Overlay
FINANCING: Cash SALE HISTORY: None in previous five years
TOPOGRAPHY: Cleared ACCESS: Direct
VERIFICATION: Sherry Ivrin, Premier Sotheby’s HIGHEST AND BEST USE: Commercial
SITE AREA: 63,598 Square Feet
1.460 Acres
UNIT OF VALUE: $14.15 Per SF
$616,438 per AC
COMMENTS: The property is located on the east side of Bayshore Drive, south of Tamiami Trail E in the
Bayshore/Gateway Triangle Redevelopment Overlay area in Naples.
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COMPARABLE LAND SALE 4
3894
DATE OF SALE: January 29, 2019 ADDRESS: Bayshore Drive
SALE PRICE: $1,650,000 STRAP #: 61841600006, 71580260001,
71580250008
SALE PRICE (ADJUSTED): $1,650,000 SALE CONDITIONS: Arm's Length
RECORDING: 5595/555 & 5596/2618 UTILITIES: Full
GRANTOR: Parma, LLC & Edda Cantoni ZONING: C-4 (BMUD-NC), Commercial General
GRANTEE: Right Time Management, LLC LAND USE: Urban Residential Sub-District
FINANCING: Cash to seller SALE HISTORY: None in prior three years
TOPOGRAPHY: Cleared, Generally Level ACCESS: Direct
VERIFICATION: CoStar HIGHEST AND BEST USE: Commercial Development
SITE AREA: 68,781 Square Feet
1.579 Acres
UNIT OF VALUE: $23.99 Per SF
$1,044,965 per AC
COMMENTS: This is a vacant commercial parcel located on the east side of Bayshore Drive, just south of East
Tamiami Trail in Naples. The property has approximately 450' of frontage along a canal providing direct access
to Naples Bay and the Gulf of Mexico; however, there is a bridge with 12' clearance at high tide which limits
access to smaller watercraft. The property is located within the Bayshore Mixed-Use Overlay District with a
Neighborhood Commercial designation allowing for a wide variety of commercial applications.
The property was purchased through two transactions from two separate entities which closed within two
days of each other.
Parcels 71580260001 & 61841600006, $1,200,000, OR 5596/2618
Parcel 71580250008, $450,000, OR 5595/555
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COMPARABLE LAND SALE 5
3997
DATE OF SALE: August 17, 2018 ADDRESS: 3321 Bayshore Drive
SALE PRICE: $375,000 STRAP #: 71780880003
SALE PRICE (ADJUSTED): $375,000 SALE CONDITIONS: Arm's Length
RECORDING: 5544/1092 UTILITIES: Full
GRANTOR: John H Smith ZONING: C-4-BMUD-NC
GRANTEE: Collier County Community
Redevelopment Agency
LAND USE: Urban Mixed Use
District/Bayshore/Gateway Triangle Redev Overlay
FINANCING: Cash SALE HISTORY: None in previous five years
TOPOGRAPHY: Cleared ACCESS: Direct-Intersection
VERIFICATION: Dougall McCorkle, Premier
Commercial HIGHEST AND BEST USE: Commercial
SITE AREA: 20,909 Square Feet
0.480 Acres
UNIT OF VALUE: $17.94 Per SF
$781,250 per AC
COMMENTS: The property is located at the northeast corner of Bayshore Drive and Coco Avenue in the
Bayshore/Gateway Triangle Redevelopment Overlay area in Naples.
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Comparable Land Sales Chart – Parcel C
The comparable commercial sales and our analysis thereof are summarized in the following chart:
Description of Sales
Sale 1 represents the sale of a commercial property located on Bayshore Drive. This property sold for $429,000
or $19.31 per square foot. This sale required an upward adjustment for market conditions, however, no physical
adjustments were necessary. The final adjusted value indication is $19.64 per square foot.
Sale 2 is the March 2019 sale of the property located at 3181 Bayshore Drive. This property sold for $430,000
or $17.32 per square foot. This sale required an upward adjustment for market conditions which resulted in an
adjusted price of $18.32 per square foot. This sale required a downward adjustment for exposure representing
its waterfront location. The final adjusted value indication is $16.49 per square foot.
Sale 3 is the March 2019 sale of a property located on the east side of Bayshore Drive, just south of Tamiami
Trail. This property sold for $900,000 or $14.15 per square foot. This sale required an upward adjustment for
market conditions which resulted in a market conditions adjusted sale price of $14.97 per square foot. This
sale required a downward adjustment for exposure representing waterfront access. However, this was offset by
its larger size compared to the subject property. The final adjusted value indication is $14.97 per square foot.
Sale 4 is the January 2019 sale of a vacant property located at 2972 Bayshore Drive. This property sold for
$1,650,000 or $23.99 per square foot. This sale required an upward adjustment for market conditions which
resulted in an adjusted price of $25.62 per square foot. This sale required a significant downward adjustment
for exposure representing this sale property’s location on Haldeman Creek and for its location closer to Tamiami
Subject Comparable No. 1 Comparable No. 2 Comparable No. 3 Comparable No. 4 Comparable No. 5
Transaction Data:
Date of Sale:Nov-19 Mar-19 Mar-19 Jan-19 Aug-18
Sale Price $429,000 $430,000 $900,000 $1,650,000 $375,000
Physical Data:
Street Address:4825 Bayshore Drive Bayshore Dr. - no address 3181 Bayshore Drive 24/25 Bayshore Drive 2972 Bayshore Drive + 3321 Bayshore Drive
City:Naples Naples Naples Naples Naples Naples
Site Area-sq.ft.33,541 22,216 24,829 63,598 68,781 20,909
Site Area-acres 0.77 0.51 0.57 1.46 1.58 0.48
Topography cleared partial cleared cleared cleared cleared cleared
Shape rectangular rectangular slightly irregular rectangular rectangular square
Utilities:full full full full full full
Use Data:
Zoning:C-3-BMUD-NC C-4-BMUD-NC C-4-BMUD-NC C-4-BMUD-NC C-4-BMUD-NC C-4-BMUD-NC
Highest and Best Use:commercial commercial commercial commercial commercial commercial
Sales Price Analysis:
Price per Square Foot (site):$19.31 $17.32 $14.15 $23.99 $17.93
Transactional Adjustments:
Financing Terms:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$19.31 $17.32 $14.15 $23.99 $17.93
Conditions of Sale:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$19.31 $17.32 $14.15 $23.99 $17.93
Expenditures After Purchase:0.0%0.0%0.0%0.0%0.0%
(Per Square Foot):$19.31 $17.32 $14.15 $23.99 $17.93
Market Conditions (time):1.7%5.8%5.8%6.8%9.4%
(Adjusted Price per SF):$19.64 $18.32 $14.97 $25.62 $19.61
Physical Adjustments:
Location:0%0%0%-10%0%
Exposure (Frontage):0%-10%-10%-25%0%
Access:0%0%0%0%0%
Size (Site Area):0%0%10%10%0%
Topography:0% 0% 0%0%0%
Shape:0%0%0%0%0%
Utilities:0%0%0%0%0%
Zoning/Land Use:0%0%0%0%0%
Net Adjustments 0%-10%0%-25%0%
Adjusted Price $19.64 $16.49 $14.97 $19.22 $19.61
96
Trail E. This was slightly offset by this sale’s larger size compared to the subject property. The final adjusted
value indication is $19.22 per square foot.
Sale 5 is the August 2018 sale of 3321 Bayshore Drive. This property sold for $375,000 or $17.93 per square
foot. This sale required an upward adjustment for market conditions which resulted in an adjusted price of
$19.61 per square foot. No physical adjustments were necessary and the final adjusted value indication is
$19.61 per square foot.
Analysis of Comparable Data
This analysis is dependent upon adjustments to the sale prices of the comparable sales based on the following
elements of comparison outlined by The Appraisal Institute:
11. Real property rights conveyed
12. Financing terms
13. Conditions of sale
14. Expenditures made immediately after purchase
15. Market conditions
16. Location
17. Physical characteristics
18. Economic Characteristics
19. Use
20. Non-realty components of value
For ease of analysis, we have divided this list into two parts. This division is based upon the type of adjustments
made for the differences. Elements 1 – 5 are considered to be transactional adjustments, whereas elements 6
– 10 are considered to be physical adjustments.
Transactional Adjustments
There were no transactional adjustments warranted for Property Rights Conveyed, Financing Terms, Conditions
of Sale and Expenditures Made Immediately after Purchase for these sales.
In considering Changes in Market Conditions since the time of sale, we must consider the significant changes in
the Southwest Florida real estate market. The property value trend found throughout Southwest Florida changed
drastically over the past decade or so, with substantial increases during the period of 2002-2005 followed by
equally substantial declines during the period of 2006-2009, and this declining trend reversing in 2012. Based
upon our paired sales analyses of sale/re-sales of properties in the region, as well as the previous discussion,
the comparable sales have been adjusted at positive 0.25% per month for market conditions over the timeframe
analyzed.
Value Conclusion
The comparable commercial sales range in adjusted prices as shown below:
Descriptive Statistics:
Multiplier:*Price per SF:
Mean:$17.99
Median:$19.22
Standard Deviation:$2.13
Minimum:$14.97
Maximum:$19.64
Range:$4.67
* Based on adjusted price
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After considering all of this information, it is our opinion that the market value of Parcel C as though vacant is
$19.00 per square foot as illustrated below:
In addition, we have considered the contributory value of the existing improvements on the subject property. We
have estimated the improvements to have a contributory value of $50 per square foot based on the depreciated
cost estimate from Marshall Valuation Service. We have estimated the depreciated value as follows:
*Depreciated cost based on an average to good, Class C Office Building (344) as per Marshall Valuation Service depreciated
by 67%
Therefore, the collective value of the subject property is estimated as follows:
Site Area (sf)Value per Sq.Ft.Opinion of Value
33,541 $19.00 $637,283
Contributory Value of Improvements 800 sq.ft. @ $50 psf*$40,000
Site Area (sf)Value per Sq.Ft.Opinion of Value
33,541 $19.00 $637,283
Contributory Value of Improvements 800 sq.ft. @ $50 psf $40,000
TOTAL $677,283
ROUNDED TO $675,000
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SEC. VII: RECONCILIATION OF OPINIONS OF VALUE
Parcel A Parcel B Parcel C
Cost Approach to Value N/A N/A N/A
Sales Comparison Approach to Value $245,000 $1,205,000 $675,000
Income Approach to Value N/A $1,150,000 N/A
In this analysis, we considered the Sales Comparison Approach in estimating the market value of Parcel A which
was a vacant, multi-family zoned parcel. We considered a total of five multi-family land sales which were good
indicators of value.
In estimating the market value for Parcel B, consideration was given to both the Sales Comparison and Income
Approaches to Value. The Sales Comparison Approach considered a total of five improved sales. These sales
had similar attributes compared to the subject property. As a test of reasonableness, we also considered the
Income Approach to Value. In conclusion, we applied heaviest weight to the Sales Comparison Approach to
Value.
In estimating the market value of Parcel C, consideration was given to the Sales Comparison Approach to Value
as the property functions primarily as land. Some consideration was given to the contributory value of the
improvements.
Based upon the results of the analyses and data contained in this report, including any Extraordinary
Assumptions and Hypothetical Conditions outlined in the Addenda, it is our opinion that the “as is” market values
of the fee simple interest in the subject properties, as of 11 February 2020, are
Parcel A – Vacant Land (Folio #52600160000)
TWO HUNDRED FORTY FIVE THOUSAND DOLLARS - $245,000
Parcel B – “Del’s Market Property” (2808 Thomasson Drive)
ONE MILLION TWO HUNDRED FIVE THOUSAND DOLLARS - $1,205,000
Parcel C – “Boat Sales/Storage” (4825 Bayshore Drive)
SIX HUNDRED SEVENTY FIVE THOUSAND DOLLARS - $675,000
The above estimated opinions of market value are contingent upon the certification and the assumptions and
conditions of this appraisal, if any.
COLLECTIVE VALUE OF ALL PROPERTIES
As previously noted, we have estimated the value of the three properties separately which concluded a total
aggregate value as follows:
Parcel A $ 245,000
Parcel B $1,205,000
Parcel C $ 675,000
Aggregate Value $2,125,000
In this analysis, we have been asked to consider the value of the entire property. Although these properties
function as three separate properties, it is possible and likely that a potential buyer would likely acquire all three
properties. Given the velocity of sales within the overlay district as well as demand in this general area, we have
estimated that the value of all three assets would be the same as the aggregate or $2,125,000.
99
CONTRACTS, LISTINGS & SALES HISTORY
According to public records, there have been no qualified sales involving the subject properties during the past
three years. To our knowledge, the properties are not listed for sale.
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ESTIMATION OF MARKETING TIME
Marketing time is defined by the USPAP Advisory Opinion as follows:
1. The time it takes an interest in real property to sell on the market sub-sequent to the date of an appraisal.
2. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real
property at its estimated market value during the period immediately after the effective date of the appraisal;
the anticipated time required to expose the property to a pool of prospective purchasers and to allow
appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price
supportable by concurrent market conditions. Marketing time differs from exposure time, which is always
presumed to precede the effective date of the appraisal. (Advisory Opinion 7 of the Appraisal Standards
Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure
Time in Real Property and Personal Property Market Value Opinions" address the determination of
reasonable exposure and marketing time.)
Marketing time is further discussed in the Advisory Opinion referenced above as follows:
“…Marketing time occurs after the effective date of the market value opinion and the marketing time
opinion is related to, yet apart from, the appraisal process. Therefore, it is appropriate for the section
of the appraisal report that discusses marketing time and its implications to appear toward the end of
the report after the market value conclusion. The request to provide a reasonable marketing time
opinion exceeds the normal information required for the appraisal process and should be treated
separately from that process.
It is also appropriate for the appraiser to discuss the impact of price/value relationships on marketing
time and to contrast different potential prices and their associated marketing times with an appraiser’s
market value opinion for the subject property...
…Clients concerned with marketing real or personal properties who obtain a market value appraisal as
part of their decision-making process should be aware that it may be inappropriate to assume that the
value remains stable during the marketing period. Therefore, it is technically incorrect for the user of an
appraisal to take a current value opinion, carry it forward to the end of a concluded marketing period,
and then discount back to the present…”
Based upon the analysis and conclusions developed in this appraisal, the marketing time for the subject property
is estimated to be 6 to 12 months.
ESTIMATION OF EXPOSURE TIME
Inherent in an opinion of market value is the development of an estimate of exposure time for the subject
property. Exposure time is defined by the Uniform Standards of Professional Appraisal Practice (USPAP),
2020/2021 Edition, as follows:
(The) estimated length of time that 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.
Based upon the analysis and conclusions developed in this appraisal, the exposure time for the subject property
is estimated to be 6 to 12 months.
101
SEC. VIII: CERTIFICATION
We certify that, to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported assumptions
and limiting conditions and are my personal, impartial, and unbiased professional analyses,
opinions, and conclusions.
We have no present or prospective interest in the property that is the subject of this report and
no personal interest with respect to the parties involved.
We have performed no services, as an appraiser or in any other capacity, regarding the property
that is the subject of this report within the three-year period immediately preceding acceptance
of this assignment.
We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with Uniform Standards of Professional Appraisal Practice.
We have made a personal inspection of the property that is the subject of this report. For this
analysis, Gerald A. Hendry, MAI, CCIM conducted an interior and exterior inspection of the
subject property on 11 February 2020.
No one provided significant real property appraisal assistance to the person(s) signing this
certification.
The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the State of Florida relating to review by its
duly authorized representatives. This report also conforms to the requirements of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
We are currently licensed to conduct appraisal activities and have completed the continuing
education requirements set forth with the State of Florida.
102
Although other appraisers may be contacted as a part of our routine market research
investigations, absolute client confidentiality and privacy are maintained at all times with regard
to this assignment without conflict of interest.
As of the date of this report, I have completed the continuing education program of the Appraisal Institute.
Gerald A. Hendry, MAI, CCIM
State-Certified General Real Estate Appraiser, RZ 2245
103
SEC. IX: ADDENDA
QUALIFICATIONS OF GERALD A. HENDRY, MAI, CCIM
EDUCATIONAL BACKGROUND AND TRAINING:
Master of Arts in Business Administration, with a major in Real Estate and Urban Analysis, University of Florida,
1995, Gainesville, Florida.
Bachelor of Science in Business Administration, with a major in Finance, 1991, University of Florida, Gainesville,
Florida.
Principles and Practices of Real Estate, Brokers Course, Florida Real Estate Academy, 1995, Fort Myers, Florida.
Case Studies in Valuation and Report Writing, University of Florida, 1994.
Real Estate Market Analysis, University of Florida, 1993.
Preview of Urban Planning and Regional Planning, University of Florida, 1993.
Seminar in Real Estate Valuation, University of Florida, 1994.
Seminar in Real Estate Financial Analysis, University of Florida, 1995.
Land Use Economics, University of Florida, 1995.
Principles and Practices of Real Estate, Salesman Course, Florida Real Estate Academy, 1990, Fort Myers,
Florida.
Demonstration Report Writing, seminar sponsored by the Appraisal Institute, Dallas, Texas, May 1999.
Comprehensive Appraisal Workshop, Dallas, Texas, August 2000.
"Appraising and Analysis of Proposed Subdivisions and Condominiums", seminar sponsored by The Appraisal
Institute, Boca Raton, Florida, August 2002.
CCIM CI 101 - Financial Analysis for Commercial Investment Real Estate, CCIM Institute, Naples, Florida, October
2002.
The Valuation of Wetlands, seminar sponsored by The Appraisal Institute, Fort Myers, Florida, September 2004.
Case Studies in Commercial Highest and Best Use, Appraisal Institute, September 2005.
CCIM CI 102 - Market Analysis for Commercial Investment Real Estate, May 2006.
CCIM CI 103 - User Decision Analysis for Commercial Real Estate, September 2006.
CCIM CI 104 - Investment Analysis for Commercial Real Estate, August 2006.
104
Appraisal of Local Retail Properties, Appraisal Institute, May 2009.
Subdivision Valuation, Appraisal Institute, September 2009.
Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets, Appraisal
Institute, Bradenton, Florida March 2012
EXPERIENCE:
Currently an owner/partner with Maxwell, Hendry & Simmons, LLC, Fort Myers, Florida.
Owner/partner with Maxwell & Hendry Valuation Services, Inc., Fort Myers, Florida, 2004-2013.
Associate Appraiser with W. Michael Maxwell & Associates, Inc., Fort Myers, Florida, 1995-2003.
Commercial Credit Analyst with Barnett Bank of Lee County/First Florida Bank, Fort Myers, Florida, 1991-1993.
PROFESSIONAL AFFILIATIONS:
Appraisal Institute - MAI
CCIM Institute - CCIM
State-Certified General Real Estate Appraiser, RZ 2245
State-Licensed Real Estate Broker, BK #0567939
Southwest Florida CCIM District – Board of Directors 2014 – 2018, 2017 President
Real Estate Investment Society - Board of Governors 2002 - 2008, President 2007
Appraisal Institute - West Coast Florida Chapter Board of Directors 2003 - 2008
Appraisal Institute - West Coast Florida Chapter President 2008
Commercial Investment Professionals (CIP) Member
OTHER:
Qualified as an expert witness in the 20th Judicial Circuit Court of Florida and United States Bankruptcy Court
Middle District of Florida.
Special Magistrate - Lee County Value Adjustment Board 2012-2014
Guest Lecturer at Florida Gulf Coast University, College of Business Administration 2007-2016
105
RE-CERTIFICATION:
As of the date of this report, Gerald A. Hendry MAI, CCIM has completed the requirements under the continuing
education program of the Appraisal Institute.
106
ASSUMPTIONS
An assumption is defined by The Appraisal Institute in The Dictionary of Real Estate Appraisal, Sixth Edition as
follows:
“That which is taken to be true.”
Please review the following assumptions, which we have “taken to be true” about this appraisal.
This appraisal is to be used in whole and not in part. This appraisal report has been prepared at a specified
point in time as indicated by the date of valuation. Therefore, this report can neither be used prior to, or
subsequent to, the effective appraisal date. Market values and conditions change significantly with the passage
of time. This report cannot be viewed subsequent to the appraisal date and then reliance placed on values,
opinions, and analysis made by the appraiser or other consultants in the report. The forecasts or projections
included in this report are used to assist in the valuation process and are based on current market conditions,
anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are
therefore subject to changes in future conditions, which cannot be accurately predicted by the appraiser and
could affect the future income and/or value forecasts.
No part of this report shall be used in conjunction with any other appraisal. The appraiser(s) herein, by reason
of this report, is not required to give testimony or attendance in court or any governmental hearing with reference
to the property appraised, unless arranged previously therefore. The consideration for the preparation of this
appraisal report is the payment by the client of all charges due the appraiser in connection therewith. Any
responsibility of the appraiser for any part of the report is conditioned upon full payment.
Neither all, nor any, 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
the valuation conclusion, the identity of the appraiser or firm with which he is connected, or any reference to any
professional organization of which the appraiser may be a member.
The property has been appraised as if free and clear, unencumbered by mortgages, liens, delinquent taxes,
assessments, special or unusual deed conditions or restrictions, but subject to zoning regulations. An
investigation, but no record search, has been made.
All comparable data utilized are confirmed by Costar Group, Inc., the Local Multiple Listing Service (MLS), parties
related to the sale, and/or public records. The data used in compiling this report was secured from sources
considered reliable and authentic and, so far as possible, was verified. However, no responsibility is assumed
for its accuracy or correctness.
Unless otherwise noted, no survey or plans were requested or provided and information regarding the subject
property has been gathered from the appropriate public records. It is assumed that the legal descriptions, site
sizes and boundaries utilized are correct, that the improvements (if applicable) are entirely and correctly located
on the property described, and that there are no encroachments or overlapping boundaries. Unless stated
otherwise, legal access to the property is assumed. Marketable title, but not responsibility as to legal matters, is
assumed. This appraisal is subject to a current survey and title search.
The appraiser is not qualified to ascertain the presence of internal damages to the subject structure(s) (such as
adverse settlement, insect damage, etc.), physical hazards (such as radon, urea formaldehyde foam insulation,
asbestos, lead paint, etc.), or environmental conditions (such as wetlands, eagle's nest's, etc.) and assumes no
responsibility for such conditions. Information regarding possible conditions was neither requested, nor
gathered, in conjunction with this appraisal, and the appraiser hereby reserves the right to alter, amend, revise,
or rescind any of the value opinions based upon any subsequent information, research, or investigation. Unless
otherwise stated in this report, the existence of hazardous materials on the subject property was not observed
by the appraisers. However, we are not qualified to detect such conditions. The opinions of value contained
herein are predicated on the assumption that no such conditions exist which would cause a loss in value. It is
recommended that the user retain an expert in these fields if greater detail is required.
107
It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations
and laws unless noncompliance is stated, defined, and considered in the appraisal report and it is further
assumed that all applicable zoning, land use regulations and restrictions have been complied with, unless a
nonconformity has been stated, defined and considered in the appraisal report.
This appraisal is subject to all growth management ordinances (i.e. concurrency) both local and state. The
appraiser has relied upon representations made by the developer, client or authorities considered to be
knowledgeable in this regard. A determination was not made by the appraiser as to the development potential
for the property, unless otherwise stated.
Unless otherwise noted, we were not provided with a title search, and we have assumed that the subject property
has a unified title, or in absentia, that the right of entry is barred for oil, gas, and mineral rights holders. We have
further assumed that no off-site subsurface exploration or extraction activities are occurring, or have occurred,
which would have an impact on the subsurface elements of the property, or which would adversely affect the
value of the property. No consideration was given within this appraisal as to the time or expense (if any) which
would be required to determine or obtain unified title or bar the right of entry. Should this assumption regarding
unified title later prove to be false, this could alter the opinions and conclusions contained herein.
The appraiser assumes the roof, plumbing, water treatment, heating, air conditioning, electrical, well, septic tank,
sprinkler, and other component systems (if applicable) are currently in satisfactory operating condition, unless
otherwise noted in the attached report. The appraiser assumes no liability for the failure of operation or condition
of the aforementioned systems.
The Americans with Disabilities Act (ADA) became effective on February 26, 1992. The appraiser has not made
a specific compliance survey and analysis of this property to determine if it is in conformity with the various
detailed requirements of the ADA. As the appraiser has no direct evidence relating to this issue, possible
noncompliance with the requirements of ADA in estimating the value of the property has not been considered.
This appraisal is subject to an exact determination of building square footage by a qualified architect or builder.
This report is also subject to the receipt of all necessary building permits and approvals (where applicable) to
allow for the construction of the project being appraised, if applicable.
EXTRAORDINARY ASSUMPTIONS / HYPOTHETICAL CONDITIONS
Please see the Scope of Work for further details.
4500 Executive Drive, Suite 300
Naples, FL 34119-8908
Phone: 239-596-0800
www.rklac.com
REAL ESTATE APPRAISAL REPORT
DEL'S CORNER
Commercial
2808 Thomasson Drive and 4825 Bayshore Drive
Naples, Collier County, Florida, 34112
PREPARED FOR:
Mr. Roosevelt Leonard, R/W-AC
Real Property Management
Collier County
3335 Tamiami Trail East, Suite 101
Naples, FL 34112
Client File: P.O. Number 4500201749
EFFECTIVE DATE OF THE APPRAISAL:
February 11, 2020
DATE OF THE REPORT:
March 5, 2020
REPORT FORMAT:
Appraisal Report
PREPARED BY:
RKL Appraisal and Consulting, PLC
RKL File Number: 2020-075
Del's Corner
2808 Thomasson Drive and 4825 Bayshore Drive
Naples, Florida
4500 Executive Drive, Suite 300
Naples, FL 34119-8908
Phone: 239-596-0800
www.rklac.com
March 5, 2020
Mr. Roosevelt Leonard
Collier County
3335 Tamiami Trail East, Suite 101
Naples, FL 34112
Re: Real Estate Appraisal
Del's Corner
2808 Thomasson Drive and 4825 Bayshore Drive, Naples,
Collier County, Florida, 34112
Client File: P.O. Number 4500201749
RKL File Number: 2020-075
Dear Mr. Leonard:
At your request, RKL Appraisal and Consulting, PLC has prepared the accompanying
appraisal for the above referenced property. The purpose of the appraisal is to estimate
the market value of the fee simple interest in the improved property and the vacant excess
land. The intended users for the assignment are Collier County Real Property
Management, and the intended use of the appraisal is for to assist Collier County in its
determination of market value for the potential acquisition. We use the appraisal report
option of Standards Rule 2-2 of USPAP to report the assignment results.
Please reference the appraisal scope section of this report for important information
regarding the scope of research and analysis for this appraisal, including property
identification, inspection, highest and best use analysis, and valuation methodology.
The accompanying appraisal conforms with the Uniform Standards of Professional
Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of
Professional Appraisal Practice of the Appraisal Institute, and the appraisal guidelines of
Collier County. The appraisal also conforms with the appraisal regulations issued in
connection with the Financial Institutions Reform, Recovery and Enforcement Act
(FIRREA).
The subject consists of a commercial component and residential component. The
commercial component is improved with three buildings containing a total of 8,320
square feet of rentable area. The improvements were constructed in 1973, 1981, and
1992, and are 100.0% occupied as of the effective date of the appraisal. The residential
component consists of a vacant 0.63 acre, 27,500 square foot parcel. The commercial site
consists of 1.21 acres, or 52,925 square feet.
Mr. Roosevelt Leonard
Collier County
March 5, 2020
Page 2
4500 Executive Drive, Suite 300
Naples, FL 34119-8908
Phone: 239-596-0800
www.rklac.com
Based on the appraisal described in the accompanying report, subject to the Limiting
Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions
(if any), we have made the following value conclusion(s):
VALUE CONCLUSIONS
Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value,
As Is, Improved Property
Fee Simple February 11, 2020 $1,830,000
Market Value,
As Is, Vacant Land
Fee Simple February 11, 2020 $280,000
The value conclusion(s) are subject to the following hypothetical conditions and extraordinary
conditions. These conditions may affect the assignment results.
Hypothetical Conditions: None.
Extraordinary Assumptions: Complete access to the subject property was not granted for the
purpose of this appraisal. It is an extraordinary assumption the
condition of the interior and portions of the exterior that were
not visible are commensurate with the portions that were visible.
Further, we assume the interior finish is similar to a typical
building of this type and age.
Respectfully submitted,
RKL APPRAISAL AND CONSULTING, PLC
Rachel M. Zucchi, MAI, CCIM
Florida State-Certified General Real Estate Appraiser RZ #2984
rzucchi@rklac.com; Phone 239-596-0800 Ext. 203
K. C. Lowry, MAI, CPA
Florida State-Certified General Real Estate Appraiser RZ #2355
klowry@rklac.com; Phone 239-596-0800 Ext. 202
DEL'S CORNER TABLE OF CONTENTS
TABLE OF CONTENTS
Summary of Important Facts and Conclusions ................................................................... 1
Introduction Information ..................................................................................................... 3
Subject Identification ...................................................................................................... 3
Current Ownership and Property History ....................................................................... 3
Appraisal Scope .............................................................................................................. 3
Client, Intended User, and Intended Use ........................................................................ 4
Definition of Market Value ............................................................................................. 4
Definition of Property Rights Appraised ........................................................................ 4
Purpose of Appraisal, Property Rights Appraised, and Dates ........................................ 5
Scope of Work ................................................................................................................ 5
Economic Analysis ............................................................................................................. 7
National Economic Analysis........................................................................................... 7
Florida Economic Analysis ............................................................................................. 8
Collier County Area Analysis ....................................................................................... 10
Market Area Analysis ................................................................................................... 22
Retail Market Analysis ................................................................................................. 26
Industrial Market Analysis ............................................................................................ 30
Property Description and Analysis ................................................................................... 32
Site Analysis ................................................................................................................. 32
Improvements Analysis ................................................................................................ 43
Real Estate Taxes and Assessments .............................................................................. 57
Highest and Best Use .................................................................................................... 59
Valuation Methodology .................................................................................................... 62
Analyses Applied .......................................................................................................... 63
Land Value - Residential Component ........................................................................... 64
Sales Comparison Approach ......................................................................................... 71
Income Capitalization Approach .................................................................................. 80
Reconciliation ............................................................................................................... 91
Certification ...................................................................................................................... 93
Assumptions and Limiting Conditions ............................................................................. 95
Addenda
Appraiser Qualifications ....................................................................................... Addendum A
Financials and Property Information .................................................................... Addendum B
Comparable Data .................................................................................................. Addendum C
DEL'S CORNER SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
Page 1
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
GENERAL
Subject:
Del's Corner
2808 Thomasson Drive and 4825 Bayshore Drive, Naples,
Collier County, Florida, 34112
Owner: Theresa Ackerman
Legal Description: Lots 1, 2, 3 & 4, Jonesville, according to the plat recorded in Plat
Book 4, Page 41, Public Records of Collier County, Florida
Tax Identification: 52600120008, 52600080009 and 52600160000
Intended Use: The intended use is for to assist Collier County in its
determination of market value for the potential acquisition.
Intended User(s): Collier County Real Property Management
PROPERTY
Land Area: Total: 1.85 acres; 80,425 square feet
Commercial: 1.21 acres; 52,925 square feet
Residential: 0.63 acres; 27,500 square feet
Improvements:
Building 1 Building 2 Building 3
Year Built: 1973 1981 1992
Gross Building Area (GBA): 3,600 3,920 800
Gross Leasable Area (GLA): 3,600 3,920 800
Property Totals: GBA GLA
8,320 8,320
Zoning: C-5 - BMUD - NC
C-3 - BMUD - NC
RMF-6 - BMUD - R2
Highest and Best Use
As if Vacant
Mixed-use development consistent with the Bayshore Mixed Use
Overlay District.
As Improved The highest and best use is as currently improved with residential
multi-family development of the vacant residential land and/or
future re-development of the entire site.
Exposure Time 12 months
Marketing Period 12 months
VALUE INDICATIONS
As Is, Improved
Property
As Is, Vacant
Land
Cost Approach: Not Developed Not Developed
Sales Comparison Approach: $1,830,000 $280,000
Income Approach:
$1,750,000 Not Developed
Reconciled Value(s): As Is, Improved
Property
As Is, Vacant
Land
Value Conclusion(s) $1,830,000 $280,000
Effective Date(s) February 11, 2020 February 11, 2020
Property Rights Fee Simple Fee Simple
DEL'S CORNER SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
Page 2
The value conclusion(s) are subject to the following hypothetical conditions and extraordinary
conditions. These conditions may affect the assignment results.
Hypothetical Conditions: None.
Extraordinary Assumptions: Complete access to the subject property was not granted for the
purpose of this appraisal. It is an extraordinary assumption the
condition of the interior and portions of the exterior that were
not visible are commensurate with the portions that were visible.
Further, we assume the interior finish is similar to a typical
building of this type and age.
DEL'S CORNER INTRODUCTION INFORMATION
Page 3
INTRODUCTION INFORMATION
SUBJECT IDENTIFICATION
Subject:
Del's Corner
2808 Thomasson Drive and 4825 Bayshore Drive,
Naples,
Collier County, Florida, 34112
Legal Description: Lots 1, 2, 3 & 4, Jonesville, according to the plat
recorded in Plat Book 4, Page 41, Public Records of
Collier County, Florida
Tax Identification: 52600120008, 52600080009 and 52600160000
The subject consists of a commercial component and residential component. The
commercial component is improved with three buildings containing a total of 8,320
square feet of rentable area. The improvements were constructed in 1973, 1981, and
1992, and are 100.0% occupied as of the effective date of the appraisal. The residential
component consists of a vacant 0.63 acre, 27,500 square foot parcel. The commercial site
consists of 1.21 acres, or 52,925 square feet.
CURRENT OWNERSHIP AND PROPERTY HISTORY
Owner
The owner of the property is Theresa Ackerman.
Sale History
According to public records, the subject has not sold in the last three years.
Current Listing/Contract(s):
The subject is not currently listed for sale, or under contract.
To the best of our knowledge, no other sale or transfer of ownership has occurred within
the past three years, and as of the effective date of this appraisal, the property is not
subject to an agreement of sale or option to buy, nor is it listed for sale.
APPRAISAL SCOPE
According to the Uniform Standards of Professional Appraisal Practice, it is the
appraiser’s responsibility to develop and report a scope of work that results in credible
results that are appropriate for the appraisal problem and intended user(s). Therefore, the
appraiser must identify and consider:
● the client and any other intended users;
● the intended use of the appraiser’s opinions and conclusions;
● the type and definition of value;
● the effective date of the appraiser’s opinions and conclusions;
DEL'S CORNER INTRODUCTION INFORMATION
Page 4
● subject of the assignment and its relevant characteristics
● assignment conditions
● the expectations of parties who are regularly intended users for similar
assignments; and
● what an appraiser’s peer’s actions would be in performing the same or a similar
assignment.
CLIENT, INTENDED USER, AND INTENDED USE
The client and the intended user of the appraisal are Collier County Real Property
Management. The intended use is for to assist Collier County in its determination of
market value for the potential acquisition. The appraisal is not intended for any other use
or user.
DEFINITION OF MARKET VALUE
Market value definition used by agencies that regulate federally insured financial
institutions in the United States is defined by The Dictionary of Real Estate Appraisal,
6th ed. (Chicago: Appraisal Institute, 2015) as:
The most probable price that a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently
and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit
in this definition is the consummation of a sale as of a specified date and the passing
of title from seller to buyer under conditions whereby:
Buyer and seller are typically motivated;
Both parties are well informed or well advised, and acting in what they consider
their best interests;
A reasonable time is allowed for exposure in the open market;
Payment is made in terms of cash in United States 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: 12 C.F.R. Part 34.42(g); 55 Federal Register
34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9,
1992; 59 Federal Register 29499, June 7, 1994)
DEFINITION OF PROPERTY RIGHTS APPRAISED
Fee simple estate is defined as an: “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.” (Source: The Dictionary of Real
Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)
According to Theresa Ackerman, property owner, the warehouse and boat storage are
leased on a month-to-month basis. There are no written leases. The currents rents are
DEL'S CORNER INTRODUCTION INFORMATION
Page 5
$1,000.00/warehouse and $2,200.00/boat storage per month. Del's Market is owner
occupied.
As the tenants are on a short-term month-to-month basis, the fee simple interest is
developed.
PURPOSE OF APPRAISAL, PROPERTY RIGHTS APPRAISED, AND DATES
The purpose of the appraisal is to estimate the market value of the fee simple interest in
the improved property and the vacant excess land. The effective date of the subject
appraisal is February 11, 2020. The date of inspection was February 11, 2020. The date
of the report is March 5, 2020.
SCOPE OF WORK
The problem to be solved is to estimate the market value of the fee simple interest in the
improved property and the vacant excess land.
SCOPE OF WORK
Report Type: This is an Appraisal Report as defined by Uniform
Standards of Professional Appraisal Practice under
Standards Rule 2-2(a). This format provides a summary or
description of the appraisal process, subject and market
data and valuation analyses.
Property Identification: The subject has been identified by the legal description and
the assessors' parcel number.
Inspection: A limited interior and exterior inspection of the subject
property has been made, and photographs taken.
Market Area and Analysis of
Market Conditions:
A complete analysis of market conditions has been made.
The appraiser maintains and has access to comprehensive
databases for this market area and has reviewed the market
for sales and listings relevant to this analysis.
Highest and Best Use Analysis:
A complete as vacant and as improved highest and best use
analysis for the subject has been made. Physically possible,
legally permissible and financially feasible uses were
considered, and the maximally productive use was
concluded.
Valuation Analyses
Cost Approach:
A cost approach was not applied as the age of the
improvements makes the depreciation difficult to accurately
measure.
Sales Comparison Approach:
A sales approach was applied as there is adequate data to
develop a value estimate and this approach reflects market
behavior for this property type.
Income Approach:
An income approach was applied as the subject is an
income producing property and there is adequate data to
develop a value estimate with this approach.
DEL'S CORNER INTRODUCTION INFORMATION
Page 6
Hypothetical Conditions:
None.
Extraordinary Assumptions:
Complete access to the subject property was not granted for
the purpose of this appraisal. It is an extraordinary
assumption the condition of the interior and portions of the
exterior that were not visible are commensurate with the
portions that were visible. Further, we assume the interior
finish is similar to a typical building of this type and age.
Comments
The individual sections of the report detail the additional research, confirmation, and
analysis of relevant data.
DEL'S CORNER NATIONAL ECONOMIC ANALYSIS
Page 7
ECONOMIC ANALYSIS
NATIONAL ECONOMIC ANALYSIS
The Federal Reserve Open Market Committee (FOMC) released a statement on March 3,
2020 that the fundamentals of the U.S. economy remain strong; however, the coronavirus
poses evolving risks to economic activity. In light of these risks and in support of
achieving its maximum employment and price stability goals, the Federal Open Market
Committee decided to lower the target range for the federal funds rate by 1/2 percentage
point, to 1 1/4 percent. The Committee is closely monitoring developments and their
implications for the economic outlook and will use its tools and act as appropriate to
support the economy. The move is the first time since the 2008-2009 global recession
that the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making
body, has cut its key federal-funds rate in between policy meetings.
The following table details the economic forecasts of Federal Reserve Board members
and Federal Reserve Bank presidents.
According to Freddie Mac, sustained economic growth, low interest rates, and a robust
labor market helped the U.S. housing market in 2019. In early 2019, the market
contracted as the shock of higher interest rates in 2018 and early 2019 worked through
the system. But interest rates fell throughout 2019 providing a boost to the housing
market which also benefited from robust job growth and low unemployment. With the
favorable economic environment projected to continue, modest growth is projected in
2020 and 2021. Freddie Mac expects mortgage rates to remain low over the next two
years, averaging 3.8% in 2020 and 2021.
Lawrence Yun, NAR chief economist predicts little chance of price declines as he
considers real estate to be on firm ground. “However, in order for the market to be
healthier, more supply is needed to assure home prices as well as rents do not consistently
outgrow income gains.” Apartment rents are expected to rise 3.8% and 3.6%,
respectively, in 2020 and 2021. According to the group of top economists at the National
Association of Realtors Real Estate Forecast Summit, annual commercial real estate
prices will climb 3.6% in 2020 and 3.4% in 2021.
Deloitte Center for Financial Services annual Commercial Real Estate Outlook for 2020
included a survey of 750 CRE executives—owners/operators, developers, brokers, and
DEL'S CORNER FLORIDA ECONOMIC ANALYSIS
Page 8
investors in 10 countries. The U.S. respondents expect property fundamentals to be
moderately positive for the next 18 months. A solid 73% expect increases in transactions.
The rapid adoption of smart buildings is top of mind for CRE executives that participated
in the survey.
The CBRE Real Estate Market Outlook 2020 projects a possible pivotal year for the U.S.
commercial real estate industry, with geopolitical, economic and local regulatory issues
in keen focus. Despite these transformational changes, CBRE predicts a very good year
for commercial real estate; however, they do expect some risk of oversupply in industrial
and Class A multifamily space. Additionally, while retail’s overall troubles are well
reported, the sector is expected to show good rent growth as it becomes more experiential
with limited new construction. Though business confidence has weakened and business
spending has slowed, the office market is more dynamic today due to strong but slowing
office-using job growth, the renaissance of new live-work-play neighborhoods in older
cities, and massive capital expenditure in older office inventory. Finally, as the CRE
industry becomes more dynamic and operational risk increases, alternative investments
are gaining popularity. As a result, they expect 2020 to be another big year for data
centers, alternative forms of industrial like self-storage and alternative forms of
multifamily like senior living.
The following graph from the PwC Emerging Trends in Real Estate 2020 shows
projections by property type based on U.S. respondents only. As shown, the
industrial/distribution sector has the highest projected prospects in 2020 both for
investments and development while retail is the lowest.
FLORIDA ECONOMIC ANALYSIS
According to the U.S. Census Bureau, Florida's population grew by 1.1% in 2019 (July
2018 to July 2019), the 9th highest rate in the country. Florida gained the second-most
number of people in 2019, an additional 233,420 residents, second to Texas which gained
367,215 residents. Florida has a population of 21,477,737 million as of July 2019. The
DEL'S CORNER FLORIDA ECONOMIC ANALYSIS
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Bureau of Economic and Business Research at the University of Florida projects the
state's population, which surpassed 20 million in mid 2015, to rise to 24.34 million by
2030 and 26.37 million by 2040.
Looking forward, Florida continues to draw a significant number of Baby Boomers.
According to the U.S. Census Bureau, Florida has the fifth highest median age at 42.1 (a
3.4% increase from a median age of 38.7 in 2000). Maine is first with a median age of
44.6. In January 2019, personal finance website, WalletHub, compared the 50 states
across 46 indicators, from affordability, health-related factors and overall quality of life.
Florida ranked as the top state to retire, seconded by South Dakota and Colorado. In April
2019, WalletHub determined the best small cities to start a business by comparing the
business-friendliness of more than 1,200 small-sized cities. Fort Myers was ranked No. 3.
Florida lost approximately 11% of the entire job base during the Great Recession;
however, employment is increasing. According to the Florida Department of Economic
Opportunity, Florida's seasonally adjusted unemployment rate was 3.1% in November
2019 slightly lower than the national rate of 3.5%. The Bureau of Labor Statistics
reported 10,491,944 total employees in Florida in November 2019.
According to the December 2019 Florida Forecast prepared by the Institute for Economic
Competitiveness at the University of Central Florida, strong economic growth is
forecasted in Florida over the next several years. The labor force is projected to continue
to grow at an average rate of 1.6% through 2022 with unemployment projected at 3.0% to
3.4% in 2020 through 2022. Retail sales are projected to grow at an average rate of over
4.2% during 2019-2022, boosted by a stronger national economy, continued strength in
Florida’s labor market, bigger paychecks, and rising household wealth.
DEL'S CORNER COLLIER COUNTY AREA ANALYSIS
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COLLIER COUNTY AREA ANALYSIS
Collier County has long been an attractive place to retire and it continues to be an area
that experiences a great deal of seasonal population increases. According to the Collier
County Comprehensive Planning Department, Collier County’s population increases up
to 25% between November and April due to seasonal residents and short-term
agricultural workers in the Immokalee area. The population increase creates a high
degree of seasonality within the retail, service, and hospitality sectors of Collier County’s
economy.
Collier County is located less than 150 miles from Fort Myers, Fort Lauderdale, Miami,
Sarasota, and West Palm Beach as shown in the following table.
Metro Area Miles
Fort Myers 44 Jacksonville 378
Fort Lauderdale 107 Tallahassee 435
Miami 128 Atlanta 616
Sarasota 120 New York 1,311
West Palm Beach 150 Dallas 1,315
Tampa 169 Chicago 1,335
Orlando 238
Distance to Other Major Markets
Population
The Bureau of Economic and Business Research, University of Florida released the
following population statistics for Southwest Florida. As shown, total population
increased in all six Southwest Florida counties with the greatest growth (2010-2019) in
Lee County and the second highest in Collier County.
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The following table shows the projected population through 2030. As shown, Lee County
also has the highest projected growth rates with Collier County as a close second.
2018 2020 2025
2018 2020 2025 2030 to 2020 to 2025 to 2030
Southwest Florida 1,729,267 1,798,631 1,954,857 2,089,189 0.04 0.09 0.07
Charlotte 177,987 183,728 196,018 206,145 0.03 0.07 0.05
Collier 367,347 382,826 418,396 449,537 0.04 0.09 0.07
Glades 13,002 13,208 13,570 13,853 0.02 0.03 0.02
Hendry 39,586 40,334 41,898 43,232 0.02 0.04 0.03
Lee 713,903 747,388 824,437 892,108 0.05 0.10 0.08
Sarasota 417,442 431,147 460,538 484,314 0.03 0.07 0.05
Population
Percent Change
Projections of Florida Population by County, 2020–2030, with Estimates for 2018
Source: Florida Demographic Estimating Conference, February 2019 and the University of Florida, Bureau of Economic
and Business Research, Florida Population Studies, Volume 52, Bulletin 183, April 2019
SmartAsset, a New York financial technology firm, ranked the best cities for early
retirement in the country. In 2019, SmartAsset announced Naples earned to top ranking
for the third straight year and has been in ranked in the top 10 every year of the study.
The rankings are determined based on state and local tax rates, number of doctors’
offices, recreation centers and retirement centers for every 1,000 residents, and the
amount of seniors already living in each area included in its study. New Port Richey, FL
was ranked second.
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Employment
The local economy is largely dependent on the real estate market. The national recession
and depressed real estate market caused a decline in overall employment consisting
mainly of construction related jobs. The economy has recovered and the market has
stabilized after several years of an expansion period, with sustained growth in demand
and increasing construction. All factors are increasing the demand for employment. The
following table shows Collier County employment by major industry division for the 2Q
of 2019.
Apr-19 May-19 Jun-19
Total, All Industries 154,687 151,161 142,432 $1,845,667,776 149,427 $12,352
Service-Providing 129,778 127,063 118,946 $1,551,483,743 125,262 $12,386
Leisure and Hospitality 32,430 30,849 29,115 $250,310,899 30,798 $8,128
Education and Health Services 29,581 29,207 23,737 $409,579,364 27,508 $14,889
Trade, Transportation, and Utilities 28,887 28,314 27,767 $313,313,718 28,323 $11,062
Goods-Producing 24,909 24,098 23,486 $294,184,033 24,164 $12,174
Accommodation and Food Services 23,679 22,933 21,763 $161,562,931 22,792 $7,089
Retail Trade 21,837 21,258 20,969 $191,818,418 21,355 $8,983
Health Care and Social Assistance 20,694 20,593 20,116 $288,164,164 20,468 $14,079
Construction 17,030 17,152 17,372 $213,727,230 17,185 $12,437
Professional and Business Services 16,360 16,457 16,336 $232,730,777 16,384 $14,204
Administrative and Waste Services 10,158 10,310 10,192 $94,785,166 10,220 $9,274
Educational Services 8,887 8,614 3,621 $121,415,200 7,041 $17,245
Financial Activities 8,467 8,479 8,409 $173,969,713 8,452 $20,584
Arts, Entertainment, and Recreation 8,751 7,916 7,352 $88,747,968 8,006 $11,085
Other Services, Except Public Administration 6,736 6,444 6,197 $59,346,426 6,459 $9,188
Public Administration 5,885 5,882 5,959 $89,322,537 5,909 $15,117
Professional and Technical Services 5,866 5,815 5,822 $115,702,385 5,834 $19,831
Manufacturing 4,499 4,520 4,545 $60,599,764 4,521 $13,403
*Source: Florida Department of Economic Opportunity, 2Q 2019
Industry Title Total Wages
Average
Monthly
Average
Quarterly
Employment
Florida Employment and Wages
by County
The following table shows employment projections through 2027 by the Florida
Department of Economic Opportunity. As shown, agricultural employment is projected to
decline while the education and health services industry has the largest projected growth
rate of 16.8% followed by construction.
NAICS Title 2019 2027 Growth
Percent
Growth
Total All Industries 544,690 610,095 65,405 12.0
Agriculture, Forestry, Fishing and Hunting 8,806 7,028 -1,778 -20.2
Mining 359 364 5 1.4
Construction 55,376 63,434 8,058 14.6
Manufacturing 12,281 12,998 717 5.8
Trade, Transportation, and Utilities 98,685 107,923 9,238 9.4
Information 4,662 4,580 -82 -1.8
Financial Activities 25,057 27,629 2,572 10.3
Professional and Business Services 61,818 70,985 9,167 14.8
Education and Health Services 65,607 76,642 11,035 16.8
Leisure and Hospitality 82,193 93,327 11,134 13.5
Other Services (except Government)20,580 22,347 1,767 8.6
Government 66,437 75,492 9,055 13.6
Self Employed and Unpaid Family Workers, All Jobs 42,829 47,346 4,517 10.5
Employment
CHARLOTTE, COLLIER, GLADES, HENDRY, AND LEE COUNTIES
Employment Projections 2019 - 2027
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Collier County unemployment peaked in August 2010 at 13.0%, and has been generally
declining since. The rate in 2018 ranged from a low of 3.1% to a high of 4.0%. The
preliminary reported unemployment rate in November 2019 was 2.7%, the lowest
November rate in over a decade.
The annual Collier County rate peaked in 2010 at 11.6% and declined steadily since. The
2018 annual rate was 3.4%.
As of November 2019, the unemployment rate for the State of Florida was 2.7%, down
from a peak of 11.5% in January and August 2010. On a national level, the
unemployment rate in December 2019 was 3.5%. Collier County currently has a similar
rate at 2.7% to the state levels and a lower rate than national levels.
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The local economy is largely dependent on the real estate market. The following table
from the U.S. Department of Labor shows Naples-Immokalee-Marco Island employment
from 2009 through August 2019. As shown, there were significant declines in
construction employment due mainly to the downturn in the real estate market. Goods
producing employment also decreased significantly. Both sectors have increased
substantially since 2012; however, both sectors are still below pre-recession employment
levels.
The service producing and leisure and hospitality sectors have exceed pre-recession
levels; however, growth rates leveled off since 2017. Overall total non-farm employment
also exceeds pre-recession levels. Total employment increased 3.5% in 2018. The
percentage increase in 2019 year to date is 3.0%.
Year
Service-
Providing
%
Change
Goods
Producing
%
Change
Mining, Logging, &
Const.
%
Change
Leisure and
Hospitality
%
Change
All Employees,
Total Nonfarm
%
Change
2009 98,300 -5.6% 13,000 -25.3% 10,400 -27.8% 21,000 -7.9% 111,300 -8.4%
2010 99,700 1.4% 11,500 -11.5% 9,100 -12.5% 21,300 1.4% 111,200 -0.1%
2011 103,400 3.7% 11,500 0.0% 9,000 -1.1% 22,600 6.1% 114,900 3.3%
2012 106,600 3.1% 12,100 5.2% 9,400 4.4% 23,600 4.4% 118,700 3.3%
2013 109,700 2.9% 13,500 11.6% 10,500 11.7% 24,400 3.4% 123,300 3.9%
2014 114,500 4.4% 15,400 14.1% 12,100 15.2% 25,500 4.5% 129,900 5.4%
2015 119,100 4.0% 17,000 10.4% 13,600 12.4% 26,500 3.9% 136,100 4.8%
2016 124,000 4.1% 18,700 10.0% 14,900 9.6% 27,500 3.8% 142,600 4.8%
2017 126,300 1.9% 19,400 3.7% 15,400 3.4% 28,300 2.9% 145,600 2.1%
2018 129,200 2.3% 21,400 10.3% 17,200 11.7% 29,000 2.5% 150,700 3.5%
2019*131,200 1.7% 23,400 11.6% 19,000 13.0% 30,000 2.6% 154,600 3.0%
*Through August 2019; percentage increase in comparison to August 2018 YTD
Source: U.S. Department of Labor
Naples - Immokalee - Marco Island
According to Moody's Analytics, Florida has five of the top 10 metro areas projected to
add the most jobs through 2018. Much of the expected gains are centered around
hospitality and real estate jobs. Cape Coral has had the second highest rate of net
migration in the country over the past five years as retirees and job seekers head south.
Collier County and the entire Southwest Florida Region is substantially dependent on the
real estate and construction sectors. Therefore, the area has been and should be more
susceptible to cyclical fluctuations that have occurred in other areas dominated by a
single industry. The top employers in Collier, Lee and Charlotte County as reported by
the Southwest Florida Economic Development Alliance are shown in the following table.
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DEL'S CORNER COLLIER COUNTY AREA ANALYSIS
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Development
Growth continues to shift east with Ave Maria becoming the top-selling single-family
residential community in Collier County. It has maintained the top ranking in the Naples-
Fort Myers market for the past five years and reported 259 new home sales in 2019. The
Immokalee Road corridor between Naples and Ave Maria is projected to see thousands of
new homes developed in the next few years. In January 2020, in what has been described
as one of the most important votes for the future of growth in Collier County,
commissioners approved Rivergrass Village. The village is the first of three planned
1,000-acre villages stretching from just north of Oil Well Road to east of Golden Gate
Boulevard East. Rivergrass Village will allow for up to 2,500 homes; 100,000 square feet
of retail and office uses and a minium of 25,000 square feet for civic government, and
institutional buildings. Longwater Village will allow for up to 2,600 homes; 65,000
square feet of retail and office space and 25,000 square feet for civic government, and
institutional buildings and Bellmar Village will allow for up to 2,750 homes; 85,000
square feet of retail and office space and 27,500 square feet for civic government, and
institutional buildings.
According to Collier County Planning Commission Chairman, Mark Strain, the county's
population is projected to reach more than 482,000 by 2040. There are more than $1
billion in proprosed new luxury high-rise developments near the coast including One
Naples at the northeast corner of Vanderbilt Beach Road and Gulf Shore Drive as well as
Pelican Bay and Kalea Bay in North Naples. Strain discussed several new building trends
in the county, including redevelopment, which comes with a maturing market. Strain also
reported more than 1.1 million square feet of commercially zoned land available west of
Collier Boulevard near Interstate 75, including 270,000 square feet at the Golden Gate
Commerce Park. New commercial development is very active at the intersections of
Collier Boulevard and US 41 East as well as Collier Boulevard and Immokalee Road.
Lastly, Strain reported future road projects including an overpass at Immokalee Road and
Collier Boulevard and at Collier Boulevard and US 41 East as well as a flyover at Davis
Boulevard and Collier Boulevard. Construction is scheduled to commence in 2021.
In its 3rd Quarter 2019 report, the Office of Federal Housing Enterprise Oversight
(OFHEO) found that the Naples- Marco Island MSA had a 2.45% increase in home
prices (all-transactions including purchase and refinance mortgage) over the trailing 12
months, and a 41% increase over the past five-years. Homes prices in the state of Florida
increased 4.99% over the past year (3Q 2018 - 3Q 2019) which was 27th in the nation.
The residential market has stabilized after several years of an expansion period, with
sustained growth in demand and increasing construction. The commercial market is
generally in the expansion stage which is characterized as sustained growth in demand
and increasing construction. A large portion of the new commercial development has
consisted of assisted living and memory care facilites.
The continuing care retirement community, Moorings Park, is teaming up with London
Bay Homes to develop an independent living development with 275 residences in 17
buildings. All of the buildings will be six stories over parking. Grande Lake, will be built
on 55 acres off Golden Gate Parkway, between Airport-Pulling and Livingston Roads.
DEL'S CORNER COLLIER COUNTY AREA ANALYSIS
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Prices for the units start at $1.5 million and construction on the first 47 units in three
buildings commenced in December 2018.
Arthrex, a medical device manufacturer and one of the county's largest employers, has
commenced construction of its latest expansion plan at its headquarters along Goodlette-
Frank Road. Plans include a new 300,000 square-foot, six-story office complex with an
auditorium, a four-story INNovation Hotel with approximately 160 rooms, a two-story
wellness center, and a 3-acre park. The hotel will host orthopedic surgeons from the U.S.
and around the world for medical education on the company's devices and instruments.
Arthrex has contracted with a Tampa-based company, Mainsail, to manage all elements
of the hotel operation, including employees. The hotel employees will not be Arthrex
employees, he said. Construction is scheduled to be completed in early 2020.
The first regional store for Phoenix-based Sprouts Farmers Market anchors The Landings
at Logan, a new 18-acre retail center at the southeast corner of Immokalee Road and
Logan Boulevard in North Naples. Seed to Table, a new Oakes Farm grocery store at the
northeast corner of Livingston and Immokalee Roads in North Naples opened in
December 2019. The former Albertson's was completely gutted and consists of 77,000+
square foot store with sit-down dining, a full-service bar, three bars for beer and wine,
wine room with samples on tap, a wood-fired brick oven for pizza, a raw bar, sushi bar,
grilling area, coffee bar and stations preparing fresh pasta, guacamole, cheese, cut
vegetables, sandwiches, smoothies and even homemade ice cream with indoor-outdoor
seating.
Collier County commissioners approved the purchase of 61 acres in CityGate at the
northeast quadrant of Interstate 75 and Collier Boulevard. A $60 million Amateur Sports
Complex is proposed in hopes the county will become a destination for traveling youth
sports teams and amateur athletes. Construction commenced in late 2018. The county
hopes to have the entire complex open by 2021.
Investment Trends
The following CoStar data shows Collier County trends in the Multi-Family, Retail,
Office, and Industrial sectors for 2019.
The multi-family sector continued to dominate the Southwest Florida investment market.
As shown, the multi-family market recorded the highest sales volume with the lowest
overall cap rate and a 1.8% increase in sales price over the past year.
DEL'S CORNER COLLIER COUNTY AREA ANALYSIS
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Retail investment activity declined in 2019. Overall cap rates declined slightly as did
asset value indicating the Collier County retail market may have reached or passed peak
cyclic value.
Office investment increased in 2019 with both sales volume and transactions increasing
over 2018. However, investor demand is down from the peak activity in 2015 and 2016.
Cap rates increased slightly; however, pricing also continues to increase.
Industrial sales volume was up slightly in 2019; however, overall volume had been down
in the past two years since peak volume in 2014 to 2017. Cap rates have remained fairly
stable over the past three years while pricing increased in 2019.
DEL'S CORNER COLLIER COUNTY AREA ANALYSIS
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Income
Personal income is a significant factor in determining the real estate demand in a given
market. The following table shows Collier County households by income from the
CCIM Site to do Business. Overall, Collier County has an average household income of
$104,866 and a per capita income of $43,648.
Conclusion
From 2006 through early/mid 2011 the Southwest Florida real estate market had been in
those stages of the real estate cycle best described by The Appraisal of Real Estate, 14th
Edition as decline and recession. Since early/mid 2011 to date, the commercial market
has been in the recovery and expansions stages. The expansion stage is characterized as
sustained growth in demand and increasing construction. There are some signs of an
upcoming decline, characterized by positive but falling demand with increasing vacancy,
but overall the commercial market is projected to continue to increase at a stabilized rate
through 2020.
The residential market has stabilized after several years of an expansion period, with
sustained growth in demand and increasing construction. According to the Office of
Federal Housing Enterprise Oversight (OFHEO) the Naples-Marco Island MSA, began
seeing sustained positive quarterly increases in the house price index (HPI) in mid 2012.
In its 3rd Quarter 2019 report, the Office of Federal Housing Enterprise Oversight
(OFHEO) found that the Naples- Marco Island MSA had a 2.45% increase in home
prices (all-transactions including purchase and refinance mortgage) over the trailing 12
DEL'S CORNER COLLIER COUNTY AREA ANALYSIS
Page 20
months, and a 41% increase over the past five-years. Homes prices in the state of Florida
increased 4.99% over the past year (3Q 2018 - 3Q 2019) which was 27th in the nation.
Generally, the commercial market lags the residential market. Overall, the commercial
market has been relatively stable since mid 2011 with significant improvements in 2014
and 2015 as distressed bank owned sales reduced to a generally negligible level,
vacancies continued to decline, and rental rates continued to increase. In general,
commercial property values returned to a more stabilized rate of increase in mid to late
2016. We project overall property values will continue to increase at a stabilized rate in
2020.
The area was heavily dependent on the construction sector, which saw dramatic decreases
in employment in 2007 through 2010; however, with increasing levels of new residential
development construction has increased substantially since 2012. Overall, the Collier
County unemployment rate in November 2019 was 2.7%, the lowest November rate in
over a decade.
The long term economic outlook for Collier County is positive. The area lures people
from all over the country for tourism as well as retirement, with the beaches and weather
considered major demand drivers.
The projected growth in population and employment provide an economic base that
supports demand for real estate in the subject neighborhood and for the subject property.
These conditions have resulted in increasing property values and should stimulate
continued increases within the foreseeable future.
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COLLIER COUNTY AREA MAP
Subject
DEL'S CORNER MARKET AREA ANALYSIS
Page 22
MARKET AREA ANALYSIS
Boundaries
The property is located in the East Naples Planning Community. This market area is
generally delineated as follows:
North Naples Airport
South Thomasson Drive
East County Barn Road
West Naples Bay
A map identifying the location of the property follows this section.
Market Area Access and Linkages
The roadways that are utilized for primary access to the subject area are as follows.
Tamiami Trail, the area’s major roadway, extends westward into Naples then swings
northward as the major arterial roadway through Naples and into Lee County. Tamiami
Trail extends south past Marco Island and then east to Miami.
Additionally, Davis Boulevard, another major roadway in the subject’s area, has its origin
at the western apex of the Triangle, a nickname for the area which originated from the
triangular shape the major roadways configure, and extends eastward as a major arterial
for the southeastern portion of the County. It provides a connection with I-75 and, thus, is
a significant linkage. Airport Pulling Road also has its origin at Tamiami Trail and
extends northward as a major arterial roadway providing access to the Naples Airport and
the northwestern portion of the County.
Two north-south streets, Commercial Drive and Shadowlawn Drive, and an east-west
street, Linwood Avenue, serve the internal portions of the Triangle. Shadowlawn Drive is
a northerly extension of the Bayshore Drive alignment and extends to the north of Davis
Boulevard into a residential area. Linwood Avenue extends from Airport Pulling Road to
Commercial Drive.
Bayshore Drive is a curbed four-lane section with a median from Tamiami Trail
southward to Thomasson Drive. South of Thomasson it is a two-lane facility with side
swale drainage facilities. Bayshore reaches a dead-end approximately 0.8 miles south of
Thomasson. Thomasson Drive is the second major street serving the Bayshore area by
providing two lanes of service extending eastward to Tamiami Trail.
Redevelopment Area
The Bayshore and Gateway Triangle Redevelopment area is located on the southeastern
edge of the City of Naples in Collier County. US Highway 41 (Tamiami Trail) is the
common boundary of the two sub-areas with the Gateway Triangle area lying to the north
of Tamiami Trail and the Bayshore area to the south. Davis Boulevard (State Road 84)
DEL'S CORNER MARKET AREA ANALYSIS
Page 23
further defines the Triangle on the north, with commercial properties facing the north side
of Davis being included in the redevelopment area. The eastern boundary of the Triangle
is defined by Airport Pulling Road (County Road 31) with properties facing the eastern
side the road being included. The area also includes the Collier County Government
Complex which extends further to the east. The name of the area is derived from the
triangle formed by these three arterial roads. The Triangle area contains approximately
291 acres.
The Bayshore area extends south of Tamiami Trail as a large rectangular area that is
accessed primarily by and extends to the east and west of Bayshore Drive. The eastern
and northern boundaries are defined by US-41. Thomasson Dr. identifies the southern
boundary and the western boundary is defined by Naples Bay.
The Bayshore and Gateway Triangle area is beset by many problems that are typical of
older urban areas that have been passed over in the wave of newer urban development:
dilapidated and vacant structures; inadequate site amenities; inadequate drainage and the
reuse of older structures by marginal or less-desirable users. At the same time, the area
possesses a number of assets and presents some clear opportunities that are supportive of
redevelopment.
Development Activity and Trends
WoodSpring Suites, a national lodging brand acquired in early 2019 by Choice Hotels
International, one of the world's largest hotel companies opened a four-story, 123 room
extended stay hotel at the southeast corner of Tamiami Trail E. and Pine Street in late
2019.
Porsche of Naples opened a new 31,000 square foot dealership with an adjacent 33,000
square foot parking garage at the northwest corner of Davis Blvd and Airport Road in
2017.
Continental Properties completed construction of the Springs at Hammock Cove, an East
Naples apartment complex located along Thomasson Drive near the Isles of Collier
Preserve in early 2020. The development has 14 two-story buildings with a total of 340
apartments.
Arboretum, a new Mattamy Homes development is located at the northwest corner of
Bayshore Drive and Thomasson Drive. At build out, the development will consist of 200
coach homes and twin villas ranging in size from 1,300 to 1,800 square feet. Prices are
start in the low $300,000s.
Site work has commenced on the parcel immediately adjacent to the subject for 20
cottage style homes in two, 10-plex buildings.
The Gebelhoff Group of Companies, LLC, located along Van Buren Avenue, are
marketing new construction homes in the Bayshore area including "Multi-Generational
Homes" and "Cozy Cottages." The Multi-Generational Homes are unique in that the
DEL'S CORNER MARKET AREA ANALYSIS
Page 24
home can have space for a multi-generational family. That is one bedroom and one bath
has its own living space perfect for the in-law, adult child or live in care giver. Pricing
starts in the low $250,000's (excluding lot, clear, fill and options). The Cozy Cottage is an
Old Florida home 3 bed, 2 bath, 2 car garage starting in the low $200,000's (excluding
lot, clear, fill and options).
Demand Generators
One of the strongest assets of the area is its location at the convergence of major regional
roadway facilities and the high capacity of these facilities. Tamiami Trail, Davis
Boulevard, and Airport Pulling Road are all six-lane arterial roads that link the area to all
parts of Collier County, Naples, and the region. These roadways bring thousands of local
commuters and visitors to and through the subject area daily.
Additionally, Naples Municipal Airport is located just north of the market area and the
Collier County Government Center is located at the intersection of Airport Road and
Tamiami Trail.
Demographics
The following table shows the historical, current and projected population, households,
housing, and income demographics for the immediate market area defined as a 3 mile
radius from the subject. The table was developed using data from STDBOnline.com.
DEL'S CORNER MARKET AREA ANALYSIS
Page 25
Outlook and Conclusions
As with Collier County, the long term economic outlook for East Naples is positive. The
area had been experiencing revitalization/speculation through the recent real estate boom
as developers and users were looking for a well priced alternative to competing properties
on Tamiami Trail and Airport Road. Overall, we project overall property values will
continue to increase at a stabilized rate in 2020.
Market Area Map
DEL'S CORNER RETAIL MARKET ANALYSIS
Page 26
RETAIL MARKET ANALYSIS
The following table developed from CoStar summarizes the overall retail market
statistics as of year-end 2019 for the Collier County Retail Market. As shown, current
rental rents are $23.33 per square foot triple net while vacancy rates are 6.3%.
According to the CoStar retail report, vacancies continued to increase and are
approaching the long-term average. This is in contrast to most Florida markets with
average vacancies well below their own long-term averages.
Retail demand, generally a strength of Naples due to very high median income levels and
robust population and job growth, appears to have slowed. In addition to negative net
retail absorption 2019, leasing activity and retail sector job growth also declined.
Annual rent growth was nearly flat over the course of 2019. However, many Florida retail
markets experienced slowing rent growth and Naples still outperformed a number of its
peer markets.
Supply increased in 2019, with retail construction at its highest point in a decade,
approaching 500,000 square feet. While this isn't a substantial increase relative to recent
elevated construction levels, it could exacerbate the already strained retail demand.
Investment activity also fell to the lowest sales volume in six years. Market cap rates
slipped slightly and annual price growth was slightly negative, both of which support an
investment market that may have reached peak cyclic value.
DEL'S CORNER RETAIL MARKET ANALYSIS
Page 27
East Naples Retail Submarket
The subject is located within the CoStar defined East Naples Retail Submarket. The
following table summarizes the asking rents in each of the Collier County retail
submarkets. As shown, the City of Naples submarket has the highest asking rent followed
by the North Naples submarket. The Naples Submarket commands the highest rents for
any submarket outside of South Florida. Tenants along Fifth Avenue in Old Naples,
predominately boutiques and high-end retail, pay the highest rents in the market to
capitalize on the high visibility and walk-ability. Proximity to wealthy households along
the beach also spurs tenants to pay higher rents.
The following graph shows average rental rates and occupancy levels for each submarket.
The size of the bubble relates to the size (SF) of the submarket. As shown, the North
Naples submarket is the largest submarket followed by the East Naples submarket. As
previously mentioned, the City of Naples and North Naples submarkets have the highest
average rental rates. With exception of the Lely submarket all submarkets have stabilized
occupancy rates above 90%. The Lely submarket has a 85% occupancy rate.
DEL'S CORNER RETAIL MARKET ANALYSIS
Page 28
The following table developed from CoStar summarizes the overall year-end 2019 retail
market statistics for the East Naples Retail Submarket. As shown, current market rents
are $17.11 per square foot triple net and have decreased 2.2% over the past twelve
months. Vacancy rates are currently 5.0%.
As shown in the following graph, net absorption is projected to remain positive through
2023 with East Naples vacancy rates stabilizing in the 3% range and Collier County
stabilizing in the 4% range.
DEL'S CORNER RETAIL MARKET ANALYSIS
Page 29
Rental rates are projected to remain flat through 2023.
VACANCY AND RENTAL RATE TRENDS
The following graph shows vacancy and rental rates for all classes of retail space within a
two mile radius of the subject. The data developed from CoStar includes a survey of
1,923,826 square feet of rentable area. As shown, rental rates have increased since mid
2017. The current average rental rate is $16.53/sf triple net. Vacancy rates have also
generally declined during this time period and are currently 5.4%.
DEL'S CORNER INDUSTRIAL MARKET ANALYSIS
Page 30
INDUSTRIAL MARKET ANALYSIS
The following table developed from CoStar summarizes the overall industrial market
statistics as of year-end 2019 for the Collier County Industrial Market. As shown, current
rental rents are $11.37 per square foot net and have increased 1.6% over the past twelve
months. Vacancy rates are currently 2.1%.
CoStar defines Flex Buildings as versatile buildings that may be used in combination
with office, research and development, quasi-retail sales, industrial, warehouse, and
distribution uses. Logistics Buildings are distribution and warehouse properties and
Specialized Buildings are all other industrial buildings.
According to the CoStar industrial report, industrial demand reasserted downward
momentum on vacancies in the latter half of 2019, somewhat reversing six straight
quarters of flat or negative absorption. While the average vacancy rate still hasn't
recovered to the record lows experienced just prior to the recent slippage, the market is
healthy by historical standards. Current vacancies are less than half of the long-term
average.
The mildly recovering vacancy trends weren't enough to slow the rate of annual rent
growth cooling in Naples in 2019. After reaching a record high of over 6% annually to
close the prior year, rent growth slipped to less than half of that by the end of 2019.
Industrial investor demand was down for the second consecutive year, though Naples did
post a sales volume above the long-term average. Market cap rates have essentially held
flat over the past three years. Naples has among the nation's best population and job
growth rates this cycle, both of which should provide enough fuel to easily sustain the
existing industrial inventory.
DEL'S CORNER INDUSTRIAL MARKET ANALYSIS
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East Naples Industrial Submarket
The subject is located within the CoStar defined East Naples Industrial Submarket. The
following table summarizes the net asking rents in each of the Collier County industrial
submarkets. As shown, the Marco Island submarket has the highest net asking rent
followed by the City of Naples submarket.
The following graph shows average rental rates and occupancy levels for each submarket.
The size of the bubble relates to the size (SF) of the submarket. As shown, the East
Naples submarket is the largest submarket followed by the North Naples submarket. As
previously mentioned, the Marco Island and City of Naples submarkets have the highest
average rental rates. With exception of Golden Gate (94.8%) all submarkets have
stabilized occupancy rates above 95%.
DEL'S CORNER SITE ANALYSIS
Page 32
PROPERTY DESCRIPTION AND ANALYSIS
SITE ANALYSIS
The following description is based on our property inspection and public records. The
property consists of a commercial component and residential component.
Land Summary
Parcel ID Gross Land Area
(Acres)
Gross Land Area
(Sq Ft)Zoning
52600120008 0.44 19,264 C-5 - BMUD - NC
52600080009 0.77 33,661 C-3 - BMUD - NC
52600160000 0.63 27,500 RMF-6 - BMUD - R2
Commercial 1.21 52,925
Residential 0.63 27,500
Totals 1.85 80,425
SITE
Location: The subject is located at the southeast corner of Thomasson Drive
and Bayshore Drive within the Bayshore Mixed Use Overlay
District.
Current Use of the Property: Improved with Del's Market, warehouse, and boat storage.
Shape: The site is roughly rectangular.
Road Frontage/Access:
The subject property has good access with frontage as follows:
• Thomasson Drive: 292 feet (Commercial component 192 feet)
(Residential component 100 feet)
• Bayshore Drive: 275 feet (Commercial component only)
The site has an average depth of 275 feet. It is a corner lot.
Traffic Count (2019): 10,863 (Bayshore); 5,800 (Thomasson)
Visibility: Good
Topography: The subject has level topography at grade and no known areas of
wetlands.
Soil Conditions: We were not provided with a soils report for the purpose of this
appraisal. We are not experts in soils analysis; however, the soil
conditions observed at the subject appear to be typical of the region
and adequate to support development.
Utilities:
Electricity: FP&L
Sewer: Collier County sewer
Water: Collier County water
Underground Utilities: The site is not serviced by underground
utilities
Adequacy: The subject's utilities are typical and adequate for the
market area.
Site Improvements: • Street Lighting: There is street lighting along Thomasson Drive
DEL'S CORNER SITE ANALYSIS
Page 33
and Bayshore Drive.
• Sidewalks: There are sidewalks along Thomasson Drive and
Bayshore Drive.
• Curbs and Gutters: There are drainage swales along Thomasson
Drive and Bayshore Drive.
• Curb Cuts: The subject has one curb cut servicing the Boat
Sales/Shop parcel and one large curb cut servicing the Store.
There are no curbs or drainage swales along the Thomasson
Drive commercial parcel frontage allowing for direct access to
all parking spots. There is one curb cut along Thomasson Drive
servicing the Residential parcel.
• Landscaping: The subject has average landscaping.
Flood Zone: The subject is located in an area mapped by the Federal Emergency
Management Agency (FEMA). The subject is located in FEMA
flood zone AE, which is classified as a flood hazard area.
FEMA Map Number: 12021C 0582H
FEMA Map Date: May 16, 2012
The subject is in a flood zone. The appraiser is not an expert in this
matter and is reporting data from FEMA maps.
Environmental Issues: We were not provided with an environmental assessment report for
the purpose of this appraisal. Environmental issues are beyond our
scope of expertise; therefore, we assume the property is not
adversely affected by environmental hazards.
Encumbrance / Easements: A current title report was not provided for the purpose of this
appraisal. We are not aware of any easement, restrictions, or
encumbrances that would adversely affect value. Therefore, our
valuation assumes the subject has a clear and marketable title with
no adverse easement, restrictions, or encumbrances.
Site Comments: The site has average and typical utility.
ZONING
Zoning Code C-5 - BMUD - NC
Zoning Authority Collier County
Zoning Description Heavy Commercial District within the Bayshore Mixed
Use Overlay District Neighborhood Commercial
Subdistrict (BMUD-NC)
Permitted Uses
Heavy Commercial District (C-5)
Accounting; full-service automotive repair; automotive
dealers (new and used); banks; carwashes; churches;
dry-cleaning; eating places; food stores; funeral
services; gasoline service stations; group care facilities;
hardware stores; health services and clinics; heavy
construction equipment rental and leasing; hotels and
motels; laundries and dry-cleaning; medical and dental
laboratories; paint stores; retail nurseries; and
veterinary services; et al.
Current Use Legally Conforming The subject is legal and conforming use.
Zoning Change Likely A zoning change is unlikely.
Minimum Lot Area (SF) 10,000
DEL'S CORNER SITE ANALYSIS
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Maximum Density/FAR Hotels 60% Destination resort 80%; BMUD-NC - 12
units per acre comprised of density allowed by the
underlying zoning district and available density
bonuses.
ZONING
Zoning Code C-3 - BMUD - NC
Zoning Authority Collier County
Zoning Description Commercial Intermediate District within the Bayshore
Mixed Use Overlay District Neighborhood Commercial
Subdistrict (BMUD-NC)
Permitted Uses
Commercial Intermediate District (C-3)
Accounting; automotive services; business services;
child day care; churches; dry-cleaning; eating places;
food stores; funeral services; gasoline service stations;
group care facilities; hardware stores; health services;
laundry; real estate offices and travel agencies; et al.
Current Use Legally Conforming The subject is legal and conforming use.
Zoning Change Likely A zoning change is unlikely.
Minimum Lot Area (SF) 10,000
Maximum Density/FAR None; BMUD-NC - 12 units per acre comprised of
density allowed by the underlying zoning district and
available density bonuses.
ZONING
Zoning Code RMF-6 - BMUD - R2
Zoning Authority Collier County
Zoning Description Residential Multi-Family-6 District within the
Bayshore Mixed Use Overlay District Residential
Subdistrict 2 (BMUD-R2)
Permitted Uses
Residential Multi-Family-6 District
Single-family dwellings; Duplexes, two-family
dwellings; Multi-family dwellings; Townhouses;
Family care facilities; and Educational plants and
public schools with an agreement with Collier County
Current Use Legally Conforming The subject is legal and conforming use.
Zoning Change Likely A zoning change is unlikely.
Minimum Lot Area (SF) 6,500 SF (Single-family); 12,000 SF (Duplex); 5,500
per unit (3+ units)
Maximum Density/FAR 6 units per acre; BMUD-R2 - Maximum Density is
limited to the maximum density allowed by the
underlying zoning district and any available density
bonuses.
Following is an excerpt from the Collier County Land Development Code:
Bayshore Mixed Use Overlay District (BMUD). This section provides special
conditions for the properties adjacent to Bayshore Drive as identified by the designation
"BMUD" on the applicable official Collier County Zoning Atlas Map or map series.
DEL'S CORNER SITE ANALYSIS
Page 35
1. Purpose and Intent. The purpose and intent of this District is to encourage
revitalization of the Bayshore Drive portion of the Bayshore Gateway Triangle
Redevelopment Area with pedestrian-oriented, interconnected projects. The Overlay
encourages uses that support pedestrian activity, including a mix of residential, civic and
commercial uses that complement each other and provide for an increased presence and
integration of the cultural arts and related support uses. When possible buildings , both
commercial and residential, are located near the street , and may have front porches
and/or balconies.
3. Relationship to the Underlying Zoning Classification and Collier County Growth
Management Plan.
a. The purpose of the BMUD is to fulfill the goals, objectives and policies of the Collier
County Growth Management Plan (GMP), as may be amended. Specifically, the BMUD
implements the provisions of section V.F, Bayshore Gateway Triangle Redevelopment
Overlay, of the Future Land Use Element. Portions of the Bayshore Overlay District
coincide with Mixed Use Activity Center #16 designated in the Future Land Use Element
(FLUE) of the Collier County GMP. Development in the activity center is governed by
requirements of the underlying zoning district and the mixed use activity center
subdistrict requirements in the FLUE, except for site development standards as stated in
section 4.02.16 of the LDC.
b. Property owners within the BMUD may establish uses, densities and intensities in
accordance with the LDC regulations of the underlying zoning classification, or may
elect to develop/redevelop under the provisions of the applicable BMUD Subdistrict. In
either instance, the BMUD site development standards as provided for in section 4.02.16
shall apply (Shown below).
DEL'S CORNER SITE ANALYSIS
Page 36
Bayshore Mixed Use District (BMUD) Subdistricts.
Neighborhood Commercial Subdistrict (BMUD-NC). The purpose and intent of this
subdistrict is to encourage a mix of low intensity commercial and residential uses,
including mixed use projects in a single building. This subdistrict provides for an
increased presence and integration of the cultural arts and related support uses, including
galleries, artists' studios, and live-work units. Developments will be human-scale and
pedestrian-oriented.
Residential Subdistrict 2 (BMUD-R2). The purpose of this subdistrict is to allow for a
variety of housing types and encourage the development of multi-family residences as
transitional uses between commercial and single-family development. The multi-family
buildings shall be compatible with the building patterns of traditional neighborhood
design.
We were not supplied with a survey indicating building setbacks and have assumed that
the improvements conform to current building codes.
DEL'S CORNER SITE ANALYSIS
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Zoning Map
Improved Property
C-3 BMUD-NC
Improved Property
C-5 BMUD-NC
Vacant Land
RMF-6 BMUD-R2
DEL'S CORNER SITE ANALYSIS
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FUTURE LAND USE DESIGNATION
Designation Bayshore/Gateway Triangle Redevelopment Overlay
Description The intent of the redevelopment program is to
encourage the revitalization of the Bayshore/Gateway
Triangle Redevelopment Area by providing incentives
that will encourage the private sector to invest in this
urban area. This Overlay allows for additional
neighborhood commercial uses and higher residential
densities that will promote the assembly of property, or
joint ventures between property owners, while
providing interconnections between properties and
neighborhoods.
Permitted Uses Mixed-Use Development: Mix of residential and
commercial uses are permitted. For such development,
commercial uses are limited to C-1 through C-3 zoning
district uses; hotel/motel use; theatrical producers
(except motion picture), bands, orchestras, and
entertainers; and, uses as may be allowed by applicable
FLUE Policies. Mixed-use projects will be pedestrian
oriented and are encouraged to provide access
(vehicular, pedestrian, bicycle) to nearby residential
areas. The intent is to encourage pedestrian use of the
commercial area and to provide opportunity for nearby
residents to access these commercial uses without
traveling onto major roadways. Parking facilities are
encouraged to be located in the rear of the buildings
with the buildings oriented closer to the major roadway
to promote traditional urban development.
Permitted Density Properties with access to Bayshore Drive may be
allowed a maximum density of 12 residential units per
acre via use of the density bonus pool, except that no
project may utilize more than 97 units – 25% of the
total density pool units available.
Conformity The subject property conforms to all requirements of
the Future Land Use Element of the Comprehensive
Plan.
Concurrency As of the effective date of this appraisal, traffic,
utilities, etc. are at concurrent levels with the future
land use requirements.
Moratorium As of the effective date of this appraisal, there are no
building moratoriums affecting the subject property.
DEL'S CORNER SITE ANALYSIS
Page 39
Aerial
Vacant Land
Improved Parcels
DEL'S CORNER SITE ANALYSIS
Page 40
Flood Map
Plat Map
Subject
Residential Land
Lot 4
Commercial Parcels
Lots 1, 2 & 3
DEL'S CORNER SITE ANALYSIS
Page 41
Site Photographs
Thomasson Drive - Easterly
(Photo Taken on February 16, 2020)
Thomasson Drive - Westerly
(Photo Taken on February 16, 2020)
DEL'S CORNER SITE ANALYSIS
Page 42
Site Photographs
Bayshore Drive - Northerly
(Photo Taken on February 16, 2020)
Bayshore Drive - Southerly
(Photo Taken on February 16, 2020)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 43
IMPROVEMENTS ANALYSIS
The subject consists of a commercial component and residential component. The
commercial component is improved with three buildings containing a total of 8,320
square feet of rentable area. The improvements were constructed in 1973, 1981, and
1992, and are 100.0% occupied as of the effective date of the appraisal. The residential
component consists of a vacant 0.63 acre, 27,500 square foot parcel. The commercial site
consists of 1.21 acres, or 52,925 square feet.
IMPROVEMENTS DESCRIPTION
Property Type: Commercial
Property Sub Type: Retail / Warehouse
Occupancy Type: Multi-tenant
Building Name/ID Year Built Condition Number of Stories
Gross Building
Area Rentable Area Overhead Door / Storage
Del's 24-Hour Store 1973 Average One with mezzanine 3,600 3,600 One (1), 10' x 12' Overhead Door
Warehouse 1981 Average One 3,920 3,920
3' high (19' x 4') Concrete Loading Dock; Two (2),
8' x 4' Overhead Doors
Boat Sales/Shop 1992 Average Two 800 800
800 SF consisting of three (3) covered bays attached
to office. Lot is fenced.
Totals 8,320 8,320
Notes:
Building Summary
The following description is based on our limited property insp ection and public records. The square footage reported herein is based on public records.
GENERAL
Building Description: Retail / Warehouse
Construction Class: Class C and Class S
Appeal/Appearance: Average
Year Built: 1973, 1981, and 1992
Actual Age (Yrs.): 28 - 47
Effective Age (Yrs.): 25
MVS Expected Life (Yrs.): 45
Remaining Useful Life (Yrs): 20
Condition: Average
Number of Buildings: One
Ratios:
Commercial Site Area (SF): 52,925
Floor Area Ratio (FAR): 0.16 (Commercial Component)
Building Efficiency Ratio: 100.0%
Land to Building Ratio: 6.36 to 1 (Commercial
Component)
FOUNDATION, FRAME & EXTERIOR
Foundation: Poured concrete slab
Structural Frame: Heavy Steel Frame (Store); Concrete Block (Warehouse /
Shop)
Exterior: Metal (Store) ; Painted stucco (Warehouse / Shop)
Windows: Fixed Casement
Roof/Cover: Gable / Metal (Store); Wood frame with shingles
(Warehouse / Shop)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 44
Service Access/ Overhead Doors: One (1), 10' x 12' Overhead Door (Store); Two (2), 8' x 4'
Overhead Doors (Warehouse) one with 3' high (19' x 4')
Concrete Loading Dock. Shop has three (3) covered bays
attached to office.
INTERIOR
Interior Layout: Store: Open retail/grocery sales with Ackerman's
Neighborhood Eatery, self-serve beverage area, and bait
shop. The store has a mezzanine area which is used for a
manager's office and storage area. Warehouse: Open
storage area for tire sales/repair. Shop: Boat pre-owned
sales and storage.
Percent Retail Space: 53%
Floor Cover: Painted Concrete (Store); Concrete (Warehouse / Shop)
Walls: Insulated metal; drywall (Store); Painted concrete block
(Warehouse); Drywall (Shop)
Ceilings: Insulated metal (Store); Exposed rafters (Warehouse);
Acoustic ceiling panels (Shop)
Lighting: A mix of fluorescent and incandescent lighting.
Restrooms: Two restrooms with lavatory and commode Store and
Warehouse; Shop has three fixture restroom with
lavatory, commode, and shower.
MECHANICAL SYSTEMS
HVAC: Package Units (Store); Warehouse (None); Assumed
window air conditioning unit (Shop)
Electrical: Average
Plumbing Condition: Average
Sprinkler: None
Elevators: None
Security: Private
Commercial parcels are improved with 3,600/sf Store with mezzanine; a 3,920/sf
Warehouse; and an 800/sf Boat Sales Building on two-floors with 800/sf attached
covered bays. There is a full bathroom with shower in the building. The Boat Sales area
is fenced for inventory and storage.
PARKING AND LANDSCAPING
Parking: Type: Paved open surface parking (Store/Warehouse)
Number of Spaces: 19
Condition: Average
Parking Ratio: 396 SF per space.
Landscaping: The subject has average landscaping.
PROPERTY ANALYSIS
Design & Functional Utility: The overall design and utility of the building is adequate
for its current use.
Deferred Maintenance: There was no deferred maintenance noted on the date of
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 45
inspection.
Capital Improvements: We were not made aware of any planned capital
improvements.
Comments: The quality, maintenance, and overall appeal of the
subject are considered to be consistent with that of
competing properties. According to Nick Malliarys,
property contact, the roof on the boat sales building was
replaced approximately two years ago after Hurricane
Irma. Additionally, the restaurant in the store was
updated and the restrooms redone for ADA compliance.
The parking lot was also recently repaved.
Occupancy Status
The property is 100.0% leased on a month-month basis to two tenants (warehouse and
boat sales/shop). The owner occupies the store. The following table provides a summary
of the sizes and percentages leased of the principal building areas.
Units/ SF % of SF SF %
Space Type Tenants Total Total Leased Vacant Vacant
Retail 1 3,600 43.3% 3,600 0 0.0%
Warehouse 2 4,720 56.7% 4,720 0 0.0%
Totals 3 8,320 100.0% 8,320 0 0.0%
Americans with Disabilities Act
There do not appear to be any ADA violations based on our inspection of the subject
property. However, we are not experts in matters pertaining to the Americans with
Disabilities Act and therefore recommend a further study to assess the ADA compliance.
Hazardous Substances
We were not provided with an environmental assessment report for the purpose of this
appraisal. Environmental and hazardous substance issues are beyond our scope of
expertise. Unless otherwise stated, we assume no hazardous conditions exist on or near
the subject.
Personal Property
The Retail Building includes a fully equipped Ackerman's Neighborhood Eatery
(restaurant) and self-serve beverage area.
Improvement Analysis Conclusion
The quality, maintenance, and overall appeal of the subject are considered to be
consistent with that of competing properties. According to Nick Malliarys, property
contact, the roof on the boat sales building was replaced approximately two years ago
after Hurricane Irma. Additionally, the restaurant in the store was updated and the
restrooms redone for ADA compliance. The parking lot was also recently repaved.
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 46
Collier County Property Appraiser Building Sketch
Retail / Store
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 47
Warehouse
Boat Sales / Storage
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 48
Improvement Photographs
Del's 24-Hour Store - Southerly
(Photo Taken on February 11, 2020)
Del's 24-Hour Store - Easterly
(Photo Taken on February 16, 2020)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 49
Improvement Photographs
Del's 24-Hour Store - Easterly
(Photo Taken on February 16, 2020)
Boat Storage Area - Easterly
(Photo Taken on February 11, 2020)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 50
Improvement Photographs
Warehouse Building - Southerly
(Photo Taken on February 11, 2020)
Warehouse Building - Southerly
(Photo Taken on February 11, 2020)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 51
Improvement Photographs
Boat Sales Building - Easterly
(Photo Provided by Property Contact)
Boat Sales Building - Westerly
(Photo Provided by Property Contact)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 52
Improvement Photographs
Boat Storage Area - Easterly
(Photo Provided by Property Contact)
Del's 24-Hour Store
(Photo Provided by Property Contact)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 53
Improvement Photographs
Del's 24-Hour Store
(Photo Provided by Property Contact)
Del's 24-Hour Store Restaurant Area
(Photo Provided by Property Contact)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 54
Improvement Photographs
Del's 24-Hour Store Kitchen Area
(Photo Provided by Property Contact)
Restroom in Del's 24-Hour Store
(Photo Taken on February 11, 2020)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 55
Improvement Photographs
Del's 24-Hour Store Bait Shop Area
(Photo Provided by Property Contact)
Del's 24-Hour Store - Mezzanine Office
(Photo Taken on February 11, 2020)
DEL'S CORNER IMPROVEMENTS ANALYSIS
Page 56
Improvement Photographs
Warehouse Building
(Photo Taken on February 11, 2020)
Boat Sales Office
(Photo Provided by Property Contact)
DEL'S CORNER REAL ESTATE TAXES AND ASSESSMENTS
Page 57
REAL ESTATE TAXES AND ASSESSMENTS
The real estate tax assessment of the subject is administered by Collier County. In 2008,
Florida voters amended the Constitution to give non-homestead property owners some
protection against increases in their annual property tax assessments. As amended, the
Florida Constitution now prohibits the assessment of certain non-homestead property
from increasing by more than 10% per year. The 10% cap applies to most types of
commercial property, including non-homestead residential property (i.e. apartments and
other rental property) and nonresidential property (i.e. commercial property and vacant
land). The cap was set to expire on January 1, 2019; however, in November 2018 Florida
voters amended the Constitution to make the cap permanent. The protection of the 10%
cap is lost when there is a change of ownership or control. The property tax identification
number and assessed value of the property for tax year 2019 are as follows:
ASSESSED VALUES
Tax Identification Number 52600120008 (Retail/Warehouse)
Land Assessed Value $144,480
Building Assessed Value $189,836
10% Assessment Cap -$15,582
Total Assessed Value $318,734
Tax Identification Number 52600080009 (Boat Sales/Shop)
Land Assessed Value $252,459
Building Assessed Value $84,770
10% Assessment Cap -$70,026
Total Assessed Value $267,203
Tax Identification Number 52600160000 (Residential)
Land Assessed Value $140,000
Building Assessed Value $0
10% Assessment Cap -$78,400
Total Assessed Value $61,600
Totals
Total Land Assessed Value $536,939
Total Building Assessed Value $274,606
10% Assessment Cap -$164,008
Total Assessment $647,537
Total Assessment per GLA $77.83
Total Assessment per Land Acre $350,720
Rates, Taxes, More
Tax Rate 1.50%
Ad Valorem Tax Amount $9,738
Special Assessment Amount $0
Special Assessment Comments None
Total Tax Liability $9,738
Property Tax Comments The 2018 and 2019 taxes have been paid.
The tax assessment for entire property is currently $77.83 per square foot, or $97.54 per
square foot excluding the assessment cap. The assessment for the commercial component
DEL'S CORNER REAL ESTATE TAXES AND ASSESSMENTS
Page 58
is $80.71 excluding the assessment cap. The assessment for the residential component is
$5.09 per square foot excluding the assessment cap. Based on our valuation analysis, the
subject’s assessment appears low.
DEL'S CORNER HIGHEST AND BEST USE
Page 59
HIGHEST AND BEST USE
Highest and best use may be defined as:
The reasonably probable use of property that results in the highest value. The four
criteria the highest and best use must meet are legal permissibility, physical
possibility, financial feasibility, and maximum productivity. 1
Physically possible for the land to accommodate the size and shape of the
ideal improvement.
Legally permissible under the zoning regulations, building codes,
environmental regulations, and other restrictions that apply to the site. A
property use that is either currently allowed or most probably allowable.
Financially feasible to generate sufficient income to support the use.
Maximally productive, or capable of producing the highest value from
among the permissible, possible, and financially feasible uses.
Highest and Best Use As If Vacant
Physically Possible
The total subject parcel is 1.85 acres or 80,425 square feet with 292 feet of frontage along
Thomasson Drive and 275 feet along Bayshore Drive. The physical characteristics of the
subject tract should reasonably accommodate any use that is not restricted by its size.
The subject's utilities are typical and adequate for the market area. The site is roughly
rectangular.
The site is located in a FEMA flood zone AE area per FEMA Flood Map Number:
12021C 0582H, dated May 16, 2012, which is classified as a flood hazard area.
There are no known physical reasons that would unusually restrict development. The site
is considered to have a functional utility suitable for a variety of uses.
Legally Permissible
The subject site is zoned C-3 (Commercial Intermediate District); C-5 (Heavy
Commercial District); and RMF-6 (Residential Multi-Family) within the Bayshore Mixed
Use Overlay District Neighborhood Commercial Subdistrict (BMUD-NC) and Bayshore
Mixed Use Overlay District Residential Subdistrict 2 (BMUD-R2).
The purpose and intent of the Neighborhood Commercial Subdistrict (BMUD-NC) is to
encourage a mix of low intensity commercial and residential uses, including mixed use
projects in a single building. This subdistrict provides for an increased presence and
integration of the cultural arts and related support uses, including galleries, artists'
studios, and live-work units. Developments will be human-scale and pedestrian-oriented.
1 The Dictionary of Real Estate Appraisal 6th ed. (Chicago: Appraisal Institute, 2015)
DEL'S CORNER HIGHEST AND BEST USE
Page 60
The purpose of the Residential Subdistrict 2 (BMUD-R2) is to allow for a variety of
housing types and encourage the development of multi-family residences as transitional
uses between commercial and single-family development. The multi-family buildings
shall be compatible with the building patterns of traditional neighborhood design.
The C-3 district permits all uses in C-1 and C-2 as well as activity centers. The C-5
district permits all uses in C-1, C-2, C-3 and C-4 as well as heavy commercial services.
RMF-6 district provide lands for single-family, two-family and multi-family residences
having a low profile silhouette, surrounded by open space, being so situated that it is
located in close proximity to public and commercial services and has direct or convenient
access to collector and arterial roads on the county major road network.
The intent of the Bayshore/Gateway Triangle Redevelopment Overlay Future Land Use
Designation program is to encourage the revitalization of the Bayshore/Gateway Triangle
Redevelopment Area by providing incentives that will encourage the private sector to
invest in this urban area. This Overlay allows for additional neighborhood commercial
uses and higher residential densities that will promote the assembly of property, or joint
ventures between property owners, while providing interconnections between properties
and neighborhoods.
Recognizing the principle of conformity, we consider the prevailing land use patterns in
the area. Therefore, only mixed-use residential and commercial uses consistent with the
Bayshore Mixed Use Overlay District are given further consideration in determining the
highest and best use of the site, as if vacant.
Financially Feasible
Financial feasibility is an analysis of the ability of a property to generate sufficient
income to support the use, or a reasonable probability of producing a positive income
stream net of operating expenses, financial costs, and capital amortization.
From 2006 through early/mid 2011 the Southwest Florida real estate market had been in
those stages of the real estate cycle best described by The Appraisal of Real Estate, 14th
Edition as decline and recession. The residential market has stabilized after several years
of an expansion period, with sustained growth in demand and increasing construction.
Generally, the commercial market lags the residential market. Overall, the commercial
market has been relatively stable since mid 2011 with significant improvements in 2014
and 2015 as distressed bank owned sales reduced to a generally negligible level. In
general, commercial property values returned to a more stabilized rate of increase in mid
to late 2016. There are some signs of an upcoming decline, characterized by positive but
falling demand with increasing vacancy, but overall the commercial market is projected
to continue to increase at a stabilized rate through 2020.
On this basis, barring unforeseen changes in the market, a well-designed mixed use
commercial and residential product that is appropriately marketed and priced, should be
received favorably by the market.
DEL'S CORNER HIGHEST AND BEST USE
Page 61
Maximally Productive
The maximally productive land use yields the highest value of the possible uses. Mixed-
use development consistent with the Bayshore Mixed Use Overlay District. is the only
use that meets the tests of physically possible, legally permissible, and financially
feasible. Therefore, mixed-use development consistent with the bayshore mixed use
overlay district. is concluded to be the maximally productive and highest and best use of
the site.
Highest and Best Use as Improved
As of the effective date of this appraisal, the existing improvements are 100.0% occupied
and produce a positive net operating income that is projected to continue. A continuation
of the current use is concluded to be financially feasible due to the quality, age and
location of the improvements.
There are no apparent alternative uses that would indicate a higher present value that the
current use. Furthermore, the value of the existing improvements, as is, exceeds the value
of the site. Therefore, the highest and best use is as currently improved with residential
multi-family development of the vacant residential land and/or future re-development of
the entire site.
Most Probable Buyer
Considering the size, class, and location of the property, the most probable buyer is an
owner-user or developer.
DEL'S CORNER VALUATION METHODOLOGY
Page 62
VALUATION METHODOLOGY
Three basic approaches may be used to arrive at an estimate of market value. They are:
1. The Cost Approach
2. The Sales Comparison Approach
3. The Income Approach
Cost Approach
The Cost Approach estimates the current cost to construct the existing structure including
an entrepreneurial incentive, depreciation, and the estimated land value. This approach is
particularly applicable when the improvements represent the highest and best use of the
land and are relatively new. It is also applicable when the property has unique or
specialized improvements for which there is little or no sales data from comparable
properties.
Sales Comparison Approach
The Sales Comparison Approach compares sales of similar properties with the subject
property. Each comparable sale is adjusted for its inferior or superior characteristics. The
values derived from the adjusted comparable sales form a range of value for the subject.
By process of correlation and analysis, a final indicated value is derived. This approach is
most reliable in an active market, and is least reliable when valuing a property for which
no direct comparable sales data is available.
Income Approach
The Income Approach converts the anticipated flow of future benefits (cash flows and
reversion) to a present value estimate through a capitalization and or a discounting
process. This approach generally reflects a typical investor’s perception of the
relationship between the potential income of a property and its market value.
Final Reconciliation
The appraisal process concludes with the Final Reconciliation of the values derived from
the approaches applied for a single estimate of market value. The reconciliation of the
approaches is based on an evaluation of the quantity and quality of the available data in
each approach. Furthermore, different properties require different means of analysis and
lend themselves to one approach over the others.
DEL'S CORNER VALUATION METHODOLOGY
Page 63
ANALYSES APPLIED
A cost analysis was considered and was not developed because the age of the
improvements makes the depreciation difficult to accurately measure.
A sales comparison analysis was considered and was developed because there is
adequate data to develop a value estimate and this approach reflects market behavior for
this property type.
An income analysis was considered and was developed because the subject is an income
producing property and there is adequate data to develop a value estimate with this
approach.
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 64
LAND VALUE - RESIDENTIAL COMPONENT
The subject’s land value has been developed via the sales comparison approach.
Sales Comparison Approach – Land Valuation
The Sales Comparison Approach is based on the premise that a buyer would pay no more
for a specific property than the cost of obtaining a property with the same quality, utility,
and perceived benefits of ownership. It is based on the principles of supply and demand,
balance, substitution and externalities. The following steps describe the applied process
of the Sales Comparison Approach.
• The market in which the subject property competes is investigated; comparable
sales, contracts for sale and current offerings are reviewed.
• The most pertinent data is further analyzed and the quality of the transaction is
determined.
• The most meaningful unit of value for the subject property is determined.
• Each comparable sale is analyzed and where appropriate, adjusted to equate with
the subject property.
• The value indication of each comparable sale is analyzed and the data reconciled
for a final indication of value via the Sales Comparison Approach.
Land Comparables
We have researched four comparables for this analysis; these are documented on the
following pages followed by a location map and analysis grid. All sales have been
researched through numerous sources, inspected and verified by a party to the
transaction. For this analysis, we use the price per square foot as the appropriate unit of
comparison because market participants typically compare sale prices and property
values on this basis.
Comp Address Date Price
Comp City Land SF Price Per SF
Subject Thomasson Drive - Lot 4 2/11/2020
Subject Naples 27,500
1 3010-3040 Thomasson Drive 2/15/2019 $1,000,000
1 Naples 165,000 $6.06
2 3278 Thomasson Drive 3/20/2018 $260,000
2 Naples 27,411 $9.49
3 2898 Weeks Ave 2/25/2020 $230,000
3 Naples 11,078 $20.76
4 2745 Arbutus St 4/26/2019 $84,000
4 Naples 10,019 $8.38
Two adjacent parcels improved with 2 homes and 2 efficiency's (1951, 1950 ,1982). The
main house (4Bed/2Bath) rents for $1,000/ month. Guest house (2Bed/2Bath) rents for
$950. Each efficiency (1Bed/1Bath) rents for $650 and $525. Tenants are all on a month
to month agreement and want to stay. Property was sold as-is and for lot value only.
Zoning allows for a new single family home and guest house or up to 4 units as multi-
family. Listed for $299,900 in Jan 2018.
Ready to build multi-family site. Sellers paid and received DEP permits, army corp of
engineers approval, etc. Land is cleared. Site engineering plans were also included for
20 cottage style homes (two, 10-plex units). Each unit is 3-bedroom with garage and
1,500 SF. Land was listed for $1,250,000 in April 2018. Site development is underway as
of March 2020. Seller provided $150,000 concession.
Parcel located on the southwest corner of Weeks Ave and Bayshore Drive. Adjacent
to the parking for Celebration Park. The is an old FL cottage and guest home on the
property built in 1934 + 1954. Property was listed for $299,900 in Nov. 2019 and
reduced to $249,900 in Dec. 2019.
Comments
Cleared parcel along Arbutus St. Listed for $89,900.
Del's Corner - Residential Parcel
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 65
Comparables Map
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 66
Analysis Grid
The above sales have been analyzed and compared with the subject property. We have
considered adjustments in the areas of:
Effective Sale Price
This takes into consideration unusual conditions involved in the
sale that could affect the sales price, such as excess land, non-
realty components, commissions, or other similar factors.
Usually the sale price is adjusted for this prior to comparison to
the subject.
Real Property Rights Property rights dissimilar to the subject which affect value.
Financing Terms
Favorable or unfavorable seller financing, or assumption of
existing financing.
Conditions of Sale
Circumstances that atypically motivate the buyer or seller, such
as 1031 exchange transaction, assemblage, or forced sale.
Market Conditions Inflation or deflation since sale date due to economic influences
Location Market or submarket area influences on sale price; surrounding
land use influences.
Physical Characteristics Attributes such as size, shape, utilities, frontage, zoning, etc.
On the following page is a sales comparison grid displaying the subject property, the
comparables and the adjustments applied.
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 67
Name
Address
City
Date
Price
Price Adjustment
Adjusted Price
Land SF
Land SF Unit Price
Property Rights Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0%
Financing
Private
Equity 0.0% Cash to seller 0.0% Conventional 0.0% Cash to seller 0.0%
Conditions of Sale Arm's Length 0.0% Arm's Length 0.0% Arm's Length 0.0% Arm's Length 0.0%
Market Trends Through 2/11/2020 10.0%
Location
% Adjustment
$ Adjustment
Land SF
% Adjustment
$ Adjustment
Topography
% Adjustment
$ Adjustment
Shape
% Adjustment
$ Adjustment
Zoning Type
% Adjustment
$ Adjustment
Net Adjustments
Gross Adjustments
3/20/20182/11/2020 2/15/2019
$260,000
$0
10.0%
-5%
$9.05
0%
$0.00
Rectangular
$0.00
0%
$0.00
$8.38
10,019
Cleared
RMF-6-BMUD-R1
2745 Arbutus St
$8.38
7.9%
$84,000
$84,000
Naples
4/26/2019
0%
Improved
0%
-$2.08
0%
10,019
Similar
-5%
$0.00
Improved
-$1.14
-$1.04
Rectangular
-$0.45
0%-10%-10%
Comp 3
Superior
0%
Cleared and filled
$0.00
$1.70
RMF-6-BMUD-R2
0%
RMF-6-BMUD-R2
-$2.08
$0.00
RMF-6-BMUD-R1
$20.76
11,078
0%
$9.49
Del's Corner -
Residential Parcel
Land Analysis Grid Comp 1 Comp 4
2745 Arbutus St
2898 Weeks Ave
Naples
Compass Place 3278 Thomasson Drive
3010-3040 Thomasson
Drive
$850,000
Comp 2
Naples
Thomasson Drive - Lot
4
3278 Thomasson Drive
NaplesNaples
$20.76
11,078
$260,000 $230,000
2898 Weeks Ave
165,000
$0
2/25/2020
$230,000$1,000,000
-$150,000 $0
27,500
$5.15
27,411
$9.49
Fee Simple
Transaction Adjustments
Adjusted Land SF Unit Price $5.15 $20.76
27,500
$0.00
0%
9.9%
$0.00
165,000
30%
Similar
19.8%
$11.37
0%
Adjusted Land SF Unit Price $5.66
Average Similar
Level
27,411
$0.00
$0.00
Rectangular Rectangular
0%
$0.00
Rectangular
RMF-6 - BMUD - R2
$0.00
0%
$0.00
Adjusted Land SF Unit Price
-25.0%
30.0% 25.0%
-10.0%
$0.00
0.0%
0% -10%
$7.36 $8.59$15.57
30.0%
$10.23
-5.0%
5.0%
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 68
Comparable Land Sale Adjustments
Price Adjustment
The seller of Comparable 1 provided a $150,000 seller concession. This sale is adjusted
downward appropriately.
Property Rights
All of the comparables transferred in fee simple interest; therefore, no adjustments for
property rights are required.
Financing
All of the comparable sales had market orientated financing or were cash transactions;
therefore, no adjustments for financing are required.
Conditions of Sale
All of the comparable sales were arm’s length transactions; therefore, no adjustments for
conditions of sale are required.
Economic Trends
The following graph developed from CoStar shows all residential land sales south of U.S.
41 between Naples Bay and Collier Boulevard that closed within the last two years
excluding outliers.
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 69
As shown, pricing has remained fairly stable over the past two years. However, it is noted
this is unadjusted raw data and does not relate directly to the subject.
Additionally, we note a 0.76 acre lot along Coco Avenue sold in October 2017 for
$413,000 or $12.48/SF. The lot was re-listed in January 2019 for $600,000 and reduced
several times. The current asking price is $536,000 or $16.19/SF which indicates a 13%
average annual appreciation rate over the 2017 purchase price.
Based on the previous analysis and considering the ongoing redevelopment in the
immediate market area, we conclude to a 10.0% annual market trends adjustment.
Location
Comparables 1 and 2 are located adjacent to the subject along Thomasson Drive.
Comparable 3 is located at the corner of Weeks Avenue and Bayshore Drive near
Celebration Park, the new food truck park. It is considered superior in location to the
subject and adjusted downward accordingly. Comparable 4 is located in an area of older
multi-family product and is considered relatively similar overall in terms of location.
Size
Size and price per square foot are typically inversely related; therefore comparable 1 is
adjusted upward for its larger size while comparables 3 and 4 are adjusted downward for
their smaller size.
Topography
The subject is cleared and level similar to comparables 1 and 4. Comparables 2 and 3 are
both improved with older interim residences and are adjusted downward accordingly.
Configuration
All of the comparables are relatively similar in terms of configuration; therefore, no
adjustments are required.
Zoning
All of the comparables are relatively similar in terms of zoning type; therefore, no
adjustments are required.
DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT
Page 70
Sales Comparison Approach Conclusion – Land Valuation - Residential Component
All of the value indications have been considered. Comparables 1 and 2 are located
immediately adjacent to the subject. Comparable 1 is significantly larger in size while
comparable 2 is similar in size. Based on the preceding analysis we arrive at our final
reconciled per square foot value of $10.00.
4 % Δ
42.85%
-25.00%
-4.63%
Reconciled Final Value:
Reconciled Value/Unit Value:
Indicated Value:
$10.00
27,500
$275,000
$280,000
Land Value Ranges & Reconciled Values
Subject Size:
High:
Average:
Low:
Number of Comparables: Unadjusted Adjusted
$7.36
$15.57
$10.44
$20.76
$10.95
$5.15
DEL'S CORNER SALES COMPARISON APPROACH
Page 71
SALES COMPARISON APPROACH
The Sales Comparison Approach is based on the premise that a buyer would pay no more
for a specific property than the cost of obtaining a property with the same quality, utility,
and perceived benefits of ownership. It is based on the principles of supply and demand,
balance, substitution and externalities. The following steps describe the applied process
of the Sales Comparison Approach.
• The market in which the subject property competes is investigated; comparable
sales, contracts for sale and current offerings are reviewed.
• The most pertinent data is further analyzed and the quality of the transaction is
determined.
• The most meaningful unit of value for the subject property is determined.
• Each comparable sale is analyzed and where appropriate, adjusted to equate with
the subject property.
• The value indication of each comparable sale is analyzed and the data reconciled
for a final indication of value via the Sales Comparison Approach.
Comparables
We have researched five comparables for this analysis. These are documented on the
following pages followed by a location map and analysis grid. All sales have been
researched through numerous sources, inspected and verified by a party to the
transaction. For this analysis, we use the price per square foot as the appropriate unit of
comparison because market participants typically compare sale prices and property
values on this basis.
DEL'S CORNER SALES COMPARISON APPROACH
Page 72
Comp Address Price Price Per SF Year Built
Comp City Date GLA Construction
Subject 2808 Thomasson Drive and 4825
Bayshore Drive
1973, 1981, and 1992
Subject Naples 2/11/2020 8,320 Class C and Class S
1 4097 Bayshore Drive $540,000 $225.00 1975
1 Naples 5/31/2017 2,400 Metal
2 3209 Van Buren Ave $787,500 $131.25 1990
2 Naples 8/22/2019 6,000 Steel
3 2059 Tamiami Trail E $2,250,000 $239.36 1977 / Renovated
3 Naples 9/5/2019 9,400 CBS
4 3196 Davis Blvd $1,525,000 $131.35 1967
4 Naples 2/7/2018 11,610 Steel Frame
5 4896 Rattlesnake Hammock Road $495,000 $187.50 1970
5 Naples 4/16/2019 2,640 CBS
This freestanding building has limited frontage on Rattlesnake Hammock
Road and almost no visibility. The building was being used as a church on
a month to month lease but is moving out subsequent to the sale. The
buyer will occupy the building with flower shop.
Two-story building located along north side of Tamiami Trail E (US 41).
Originally built in as Thalheimers Jewelers auction gallery. Since
Thalheimers sold the property in 2002, it has been occupied by several
clubs and restaurants. Property was vacant at time of sale. Purchased by
local architect, Matthew H. Kragh. Mr. Kragh reports they are doing an
extensive interior and exterior renovation and liked the location in the
Bayshore Gateway Triangle, a redevelopment area. Former bars on the first
and second floors will be converted into conference rooms with work
stations nearby. The venue’s large kitchen will be completely refurbished
and remain operational as a commercial kitchen for private client lunches
and dinners and special functions and events.
St Vincent DePaul Society used building as a thrift store for more than 30
years. The original 7,410 sf metal building was constructed in 1967 and a
4,200 sf addition was added in 2002. The seller leased the building back for 6
months. The buyer leased the property for a reported $12/sf NNN after the
seller vacated. Located across from new Porsche of Naples dealership.
There was reported roof damage from Hurricane Irma and the price was
reduced $150,000.
Industrial building located along Van Buren Ave within the Bays hore Mixed
Use Overlay District. Building was listed for $875,000. Steel construction
with 16' eave height and 18' center height. Building is mostly warehouse
space with a small office in front.
This freestanding retail building was completely renovated in 2015 and a
stucco facade was installed in the front. It has approximatly 1,700/sf (71%)
office/showroom and the remainder is warehouse with 2 OH doors.
Property was previously used for astro-turf business and was vacant at the
time of sale. Income and expense data is proforma by the appraiser.
Comments
Comparables Map
DEL'S CORNER SALES COMPARISON APPROACH
Page 73
Analysis Grid
The above sales have been analyzed and compared with the subject property. We have
considered adjustments in the areas of:
Effective Sale Price
This takes into consideration unusual conditions involved in the sale
that could affect the sales price, such as excess land, non-realty
components, commissions, or other similar factors. Usually the sale
price is adjusted for this prior to comparison to the subject.
Real Property Rights Property rights dissimilar to the subject which affect value.
Financing Terms
Favorable or unfavorable seller financing, or assumption of existing
financing.
Conditions of Sale
Circumstances that atypically motivate the buyer or seller, such as
1031 exchange transaction, assemblage, or forced sale.
Market Conditions Inflation or deflation since sale date due to economic influences
Location Market or submarket area influences on sale price; surrounding land
use influences.
Physical Characteristics Attributes such as size, shape, utilities, frontage, zoning, etc.
Age/Condition Attributes such as size, shape, age, number of stories, etc.
Economic Characteristics Material differences between the subjects’ net operating income and
the net operating income of the comparables on a per unit basis.
On the following page is a sales comparison grid displaying the subject property, the
comparables and the adjustments applied.
DEL'S CORNER SALES COMPARISON APPROACH
Page 74
Name
Address
City
Date
Price
Price Adjustment
Adjusted Price
GLA
GLA Unit Price
Property Rights Fee simple 0.0%
Fee Simple 0.0%Fee Simple 0.0% Fee Simple 0.0% Fee simple 0.0%
Financing Cash to seller 0.0%Private Equity 0.0%Conventional 0.0%Cash to seller 0.0%Private equity; seller 0.0%
Conditions of Sale Arms length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0% Arms length 0.0%
Market Trends Through 2/11/2020 10.0%
Location
% Adjustment
$ Adjustment
GLA
% Adjustment
$ Adjustment
Year Built
% Adjustment
$ Adjustment
Condition
% Office/% AC Area 53% 53% 71% 71% 10% 10% 100% 100% 100% 100% 100% 100%
% Adjustment
$ Adjustment
Land to Building Ratio
% Adjustment
$ Adjustment
Zoning Type
% Adjustment
$ Adjustment
Net Adjustments
Gross
4896 Rattlesnake
Hammock Road
$495,000
2/7/2018
$0
$787,500
$0
2/11/2020
$1,675,000
$0
$540,000
8,320 2,400 6,000
$0.00
C-4
0%
6.93:1
-10.0%
35.0%
-15.0%
$244.65
40.0%
$182.55$219.70
20.0%
$232.86
80.0%
60.0%
Adjusted GLA Unit Price
0%
$0.00
-15% 0% 0%
1977 / Renovated
$0.00 $0.00
0%
1973, 1981, and 1992
-$43.66
1975
-10%
1990
-5%
5/31/2017
Average
8,320 2,400 6,000 9,400
-5%
Adjusted GLA Unit Price
5%0%
Similar
$6.87
Adjusted GLA Unit Price
Fee Simple
$2,250,000
Naples
$787,500
9/5/2019
$1,525,000
8/22/2019
3196 Davis Blvd
Del's Corner - Commercial
Parcels
Analysis Grid
4097 Bayshore
Drive
NaplesNaples
4097 Bayshore
Drive
2808 Thomasson Drive and
4825 Bayshore Drive
Comp 4
$225.00 $131.25
$131.25$225.00
Transaction Adjustments
Naples
4/16/2019
9,400
$495,000
2059 Tamiami Trail
E
3209 Van Buren
Ave
$540,000
The Colosseum
$150,000
Naples Naples
$187.50
$144.27
21.1%4.2%
$0
$2,250,000
$187.50
2,640
$239.36
11,610
8.2%
Office/Warehouse
-$12.48
Restaurant / Bar
C-5-BMUD-NC
0%
$61.79
$27.46
$24.95
10%
-$20.28
$69.90
C-4-GTMUD-MXD
0%
$0.00
40%
Open Retail Space
-10%
10%
0%
11,610
-15%
2,640
-$30.42
-10%
1970
$17.48
5%
-$17.48
10%
$20.28
$202.83
Inferior
4.6%
Inferior Similar
$174.75
$144.27
$137.32 $249.51
$239.36
$291.07
29.4%
Superior
$0.00
0%
$0.00
$0.00
$0.00
Thrift StoreStore / Warehouse / Boat
Sales
-$13.73
-15%
0% 45%
4.87:1
-$37.43
2.90:16.36 to 1
20%
6.53:1
-$14.55
0%
3.25:1
C-5 & C-3 BMUD - NC C-4-BMUD-NC
$0.00$0.00
C-5; GTMUD-MXD
-20.0%
$0.00
40.0%
0%
$212.08
Retail/Warehouse
$0.00
60.0%
1967
-5%
$10.14
-$12.48
4896 Rattlesnake
Hammock Road
Comp 5
Former St Vincent
DePaul Thrift Store
Comp 3
3209 Van Buren
Ave
Comp 1 Comp 2
DEL'S CORNER SALES COMPARISON APPROACH
Page 75
Comparable Sale Adjustments
Price Adjustment
The price of comparable 4 was reduced by $150,000 due to roof damage from Hurricane
Irma.
Property Rights
All of the comparables transferred in fee simple interest; therefore, no adjustments for
property rights are required.
Financing
All of the comparable sales had market orientated financing or were cash transactions;
therefore, no adjustments for financing are required.
Conditions of Sale
All of the comparable sales were arm’s length transactions; therefore, no adjustments for
conditions of sale are required.
Economic Trends
The following graph developed from CoStar shows all retail and industrial sales,
excluding outliers, in East Naples Submarket over the past three years.
The trend indicates an increasing trend in sales prices over the past three years. However,
it is noted this is unadjusted raw data and does not relate directly to the subject.
DEL'S CORNER SALES COMPARISON APPROACH
Page 76
Based on the previous analysis and considering the ongoing redevelopment in the
immediate market area, we conclude to a 10.0% annual market trends adjustment.
Location
The comparables are all located in the East Naples submarket. Comparable 1 is located
along Bayshore Drive similar to the subject. Comparable 2 is located along Van Buren
Avenue, off Bayshore Drive, in an industrial/residential area. It is considered inferior to
the subject in terms of location and exposure.
Comparable 3 is located along Tamiami Trail E (US 41) with significantly higher traffic
counts. It is adjusted downward appropriately.
Comparable 4 is considered to have a similar location along Davis Boulevard.
Comparable 5 is located along Rattlesnake Hammock Road. However, the parcel is very
irregular with only approximately 40 feet of frontage along Rattlesnake Hammock Road
and the building is set back approximately 180 feet from the road at the end of a long
drive way. There is almost no visibility from Rattlesnake Hammock Road. Overall, it is
considered inferior to the subject and adjusted upward accordingly.
Physical Characteristics
This adjustment reflects differences in attributes such as size, shape, number of stories,
etc. Size and price per square foot are typically inversely related; therefore comparables 1
and 5 are adjusted downward for their smaller size.
Age
This adjustment reflects differences in age and condition. For this analysis, comparables
4 and 5 are adjusted upward for their older age while comparables 2 and 3 are adjusted
downward for their newer age. Comparable 3 has been renovated multiple times over the
years.
Condition
The subject is improved with a 3,600/sf Store which consists of retail/grocery sales area
with Ackerman's Neighborhood Eatery, self-serve beverage area, and bait shop. The store
has a mezzanine area which is used for a manager's office and storage area. The 3,920/sf
Warehouse building is an open storage area for tire sales/repair. The 800/sf Boat Sales
Building consists of two-floors with 800/sf attached covered bays. The Boat Sales area is
fenced for inventory and storage. Approximately 53% of the subject building is finished
out office/retail area and air conditioned area.
Due to the varying building types, a mix of retail, restaurant, and industrial sales are
analyzed.
Comparables 1 and 2 are retail/warehouse and office/warehouse buildings with varying
levels of finish.
DEL'S CORNER SALES COMPARISON APPROACH
Page 77
Comparable 3 is a two-story, full-service restaurant and bar. It was purchased by a local
architect and will be converted to offices. The venue’s large kitchen will be completely
refurbished and remain operational as a commercial kitchen for private client lunches and
dinners and special functions and events. Comparable 4 was a thrift store consisting of
open retail area. Comparable 5 was occupied by a church and purchased by a flower shop
for owner occupancy.
Marshall Valuation Service estimates that the cost to finish out office area in a warehouse
is /sf and the cost to air condition a warehouse is $7.75/sf. The following chart
summarizes the calculations upon which the adjustments were made. It is noted that this
chart does not include factors such as differences in quality of finish out, depreciation or
size differentials, etc. This has been taken into consideration in the concluded
adjustment.
Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5
SF 8,320 2,400 6,000 9,400 11,610 2,640
SF/Office 4,400 1,700 600 9,400 11,610 2,640
% Office 53% 71% 10% 100% 100% 100%
% Office Cost of Building Cost 37% 44% 10% 53% 53% 53%
% Difference -7% 27% -16% -16% -16%
Sale Price $ Adjustment -$15.84 $35.59 -$37.41 -$22.55 -$29.31
% Adjustment Office -7% 27% -16% -16% -16%
SF/Warehouse 3,920 700 5,400 0 0 0
SF/Warehouse AC 000000
% of Warehouse AC 0% 0% 0% 0% 0% 0%
% AC Whse Cost of Building Cost 0% 0% 0% 0% 0% 0%
% Difference 0% 0% 0% 0% 0%
Sale Price $ Adjustment $0.00 $0.00 $0.00 $0.00 $0.00
% Adj Whse 0% 0% 0% 0% 0%
Total Indicated Adjustment -7% 27% -16% -16% -16%
Concluded Adjustment -5% 20% -15% -10% -10%
Land to Building Ratio
This adjustment category generally reflects material differences between the size of the
land and the size of the building. The subject land to building ratio is 6.36 to 1 and the
comparables are different to various degrees.
Following are several recent commercial land sales along Bayshore Drive.
As shown, the sales range from $375,000 to $1,650,000 with an average of $756,800 or
from $13.77 to $19.07 per square foot with an average of $17.21 per square foot.
# MLS / Tax ID Address Date Price SF $/SF Zoning
1 218020152 24&25 Bayshore Dr 3/1/2019 $900,000 65,340 $13.77 C-4; BMUD-NC
2 217059635 / 215010451 2924 + 2972 Bayshore Dr 1/31/2019 $1,650,000 91,476 $18.04 C-4; BMUD-NC
3 216000076 3181 Bayshore Dr 3/21/2019 $430,000 24,945 $17.24 C-4; BMUD-NC
4
53353320002/5335336000
4/53353400003 Bayshore Dr south of Lunar St 11/11/2019 $429,000 22,500 $19.07 C-4; BMUD-NC
5 218016358 3321 Bayshore Drive 12/4/2018 $375,000 20,913 $17.93 C-4; BMUD-NC
Min $375,000 20,913 $13.77
Avg $756,800 45,035 $17.21
Max $1,650,000 91,476 $19.07
DEL'S CORNER SALES COMPARISON APPROACH
Page 78
Comparables 2, 3, and 4 are all waterfront. However, all three sites have heavy vegetation
along the water with no docks in place. Comparable 5 is a corner lot.
Based on the previous analysis, and considering the subject's location at the corner of
Bayshore Drive and Thomasson Drive, the subject's commercial land is estimated at the
high end of the range of approximately $19.00/sf.
The following chart summarizes the calculations upon which the adjustments were made.
It is noted that this chart does not include factors such as location of building on the site;
usability of the unimproved land; overall sizes of site and improvements; etc. These
factors have been taken into consideration in the concluded adjustments.
Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5
Sale Price $540,000 $787,500 $2,250,000 $1,525,000 $495,000
Bldg/sf 8,320 2,400 6,000 9,400 11,610 2,640
Lot size/sf 52,925 15,682 17,400 45,738 37,760 18,266
Land to Bldg Ratio 6.36 6.53 2.90 4.87 3.25 6.92
Land needed to equal subject
Land to Bldg Ratio 15,267 38,167 59,795 73,854 16,794
Difference/Land/SF -415 20,767 14,057 36,094 -1,472
Value of difference -$7,887 $394,578 $267,090 $685,779 -$27,976
% of Sale Price -1% 50% 12% 45% -6%
Concluded Adjustment 0% 45% 10% 40% 0%
Zoning
The comparables all have similar C-4 and C-5 zoning designations. The subject and
comparables 1 through 4 are all located within the Bayshore Mixed Use and Gateway
Triangle Mixed Use Overlay Districts. Comparable 5 is zoned C-4 and it is located
outside the overlay districts. Overall no adjustments for zoning could be supported;
therefore, none are made.
DEL'S CORNER SALES COMPARISON APPROACH
Page 79
Sales Comparison Approach Conclusion
All of the value indications have been considered. Comparables 1 and 2 are within closest
proximity of the subject. Comparable 1 also has a similar land to building ratio; however,
it is smaller in size. Comparables 1, 3, and 5 have the least net adjustments and
comparable 1 has the least gross adjustments. Overall, we consider the size of the subject
and the varying uses in arriving at our final reconciled per square foot value of $220.00.
5 % Δ
39.08%
2.21%
17.73%
Unadjusted
High:
$1,830,000
Indicated Value:
Reconciled Value/Unit Value:
Subject Size:
Number of Comparables: Adjusted
$131.25
Reconciled Final Value:
$1,830,400
Average:$185.48
Value Ranges & Reconciled Values
$239.36
Low:$182.55
$244.65
$218.37
$220.00
8,320
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 80
INCOME CAPITALIZATION APPROACH
The Income Approach to value is based on the present worth of the future rights to
income. This type of analysis considers the property from an investor's point of view, the
basic premise being that the amount and quality of the income stream are the basis for
value of the property.
Direct capitalization and discounted cash flow analysis are the two most common
capitalization methods. In direct capitalization, a single year’s expected income is divided
by an appropriate capitalization rate to arrive at a value indication. In discounted cash
flow analysis, anticipated future net income streams and a future resale value are
discounted to a present value at an appropriate yield rate.
In this analysis, we use only the direct capitalization analysis as the subject property is
largely owner occupied.
Direct Capitalization Analysis
The steps involved in capitalizing the subject's net operating income are as follows:
• Develop the subject's Potential Gross Income (PGI) through analysis of the
subject’s actual historic income and an analysis of competitive current market
income rates.
• Estimate and deduct vacancy and collection losses to develop the Effective Gross
Income (EGI).
• Develop and subtract operating expenses to derive the Net Operating Income
(NOI).
• Develop the appropriate capitalization rate (Ro).
• Divide the net operating income by the capitalization rate for an estimate of value
through the income approach.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 81
Potential Gross Income (PGI)
Rent Roll
The following rent roll details the current occupancy and rent status on a unit by unit
basis.
Rent Roll
Rent Roll % of
Lease
Date
Lease
Date Lease Contract Contract
Tenant/Unit Name Space Type SF Total Start End Type Rent* Rent/SF
Del's Market Retail 3,600 43.3% Gross $72,000 $20.00
Warehouse - Tire sales/repair Warehouse 3,920 47.1% Gross $54,880 $14.00
Boat Sales / Storage Warehouse 800 9.6% Gross $26,400 $33.00
Totals 8,320 100.0% Total $153,280 $18.42
Leased 8,320 100.0% Total Commercial $153,280 $18.42
Vacant 0 0.0%
*Contract Rent = Annualized rent as of appraisal date Rent per SF for occupied space
Owner Occupied
Month-to-Month
Month-to-Month
According to Theresa Ackerman, property owner, the warehouse and boat storage are
leased on a month-to-month basis. There are no written leases. The currents rents are
$1,000.00/warehouse and $2,200.00/boat storage per month. Del's Market is owner
occupied.
The warehouse rent of $1,000/month or $3.06/sf is significantly below market. Therefore,
market rent is shown in the previous table.
The boat sales/storage rent of $2,200/month or $33.00/sf is market orientated and used in
the following analysis.
Lease Structure
The predominant lease structure in the subject property is gross.
Market Rent
Market Rent Comparables
We have researched six comparables for this analysis. These are documented on the
following pages followed by a location map and analysis grid.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 82
Comp # Name Year Built
City/State Condition Type Size Rent/SF
1 2825 Davis Boulevard 1982
1 Naples, Florida Average NNN 9,900 $13.00
2 Naples Flooring 1999
2 Naples, Florida Average NNN 1,826 $18.00
3 The Hitching Post Units
11536 1974-1981
3 Naples, Florida Average Triple net 1,225 - 6,000 $18.50
4 1801 J & C Boulevard 1984
4 Naples, Florida Average Gross 5,040 $14.52
5 Ming Enterprise Building 1985
5 Naples, Florida Average NNN 1,263 - 10,647 $10.00
6 All Sod Nursery 1959
6 Naples, Florida Poor NNN 3,336 $27.07
This freestanding building has 2,000/sf of AC showroom,
office, 1 restroom and 7,900/sf of AC warehouse with 2 OH
doors and 3 restrooms. Zoned C-4.
Unit is finished out as a cafe and lease includes some FF&E.
Rent is flat for first 2 years and then 3% esc per year.
Retail strip center located along south side of Tamiami Trail
East. CAM includes water and sewer. Office, retail, and
restaurant space.
This freestanding building has a 550/sf AC office area and the
remainder of the building is warehouse with 5 OH doors.
Multi unit office/warehouse complex just east of Airport Road.
Industrial/Warehouse space available for $10/sf with $3.20/sf
CAM.
Building was constructed in 1959 and is outmoded in terms of
construction and functionality. Lease is essentially a land lease
of a 64,469 square foot Industrial zoned site located on the
north side of Radio Road in the Naples Production Park.
Comments
Comparables Map
5
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 83
Analysis Grid
The above rentals have been analyzed and compared with the subject property. We have
considered adjustments in the areas of:
Lease Terms
Conditions of Lease
Other
Economic Trends (time)
Location
Physical Characteristics
Following is a rental comparison grid displaying the subject property, the comparables
and the adjustments applied.
Name
Address
City
Tenant
Date
Rent/SF
Lease Type
Term
Size
Conditions of Lease Normal 0% Normal 0% Listing -5% Normal 0% Listing -5%Normal 0%
Other Similar 0% Similar 0% Similar 0% Similar 0% Similar 0% Similar 0%
Market Trends/Year
Location
% Adjustment
$ Adjustment
Year Built
% Adjustment
$ Adjustment
Condition
% Adjustment
$ Adjustment
Comm 1 SF
% Adjustment
$ Adjustment
Net Adjustments
Adjustments
2/11/2020
Naples
Del's Corner
800 - 3,920
Adjusted Rent
0.0%0.0%
Adjusted Rent $13.00
0.0%
0.0%
$0.00
$0.00
NNN
$13.00
Store / Warehouse /
Boat Sales
$0.00
Retail /
Warehouse
0%
0%
1973, 1981, and 1992 1982
Similar
Expenses
Adjusted Rent
4584 Enterprise
Ave
115536 and 11560
Tamiami Trail East
Comp 1
2825 Davis
Boulevard
$0.00
5 years
$27.07
Land Lease -
64,469 SF
NNN
3,336
$27.07
$0.00
0%
5/1/2019
All Sod Nursery,
Inc
Naples
Comp 6
All Sod Nursery
4701 Radio
Road
$27.07
$34.22
$7.15
Café
$0.00
0%0%
$0.00
Warehouse
0%
$0.00
0%
$0.00
0%
$0.00
Warehouse
1,826
$0.00
0%
3,336
$0.00
$9.50$14.52
0%
Similar
0.0%
1959
5%
Inferior
1985
$0.00
0.0%
$0.00
$3.20
$12.70
0%
$0.64
0% 0%
1,225 - 6,000
0%
$0.00
0%
1,263 - 10,647
$0.00
5,040
0%
Retail
$17.58
$5.17
1,826
$18.00
$18.50
3-5 years
Triple net
5 years
$18.00
Superior
-$2.32
-10%
$5.65
1974-1981
-5%
Superior
$0.00
$14.52
$0.00$0.00
0%
1999
0.0%
-$1.16
$23.17
$9.50
4/1/20192/11/2020
Naples
Listing Caribbean Logistics
& Investment
Listing
$14.52
1,225 - 6,000
0%
$0.73
Inferior
5%
1984
36 months
Naples
2/11/2020
$10.00
NNNGross
Naples
$14.52
$23.23
0.0%
1,263 - 10,647
2-3 years
0.0%
5,040
$17.58
Comp 5Comp 2
771 Airport Road
North, Unit 2
Naples Flooring 1801 J & C
Boulevard
Comp 3
The Hitching Post
Units 11536
1801 J & C
Boulevard
Comp 4
Ming Enterprise
Building
Naples
6/1/2018
WT Cafe of Collier
2825 Davis
Boulevard
$13.00
1/1/2020
2808 Thomasson
Drive and 4825
Bayshore Drive
36 months
9,900
Naples
Lease Analysis Grid
$18.00
NNN
World Cat
Powerboats
$5.00
$18.00
0%
Average
Transaction Adjustments
$0.00
9,900
0%
$0.00
Adjusted Rent $18.00 $20.90$22.01
-5.0%
$15.25
5.0%
-10.0%
5.0% 10.0% 5.0%
5.0% 5.0% 0.0%
$13.34 $34.22
0.0%
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 84
Comparable Rent Adjustments
Conditions of Lease
Comparables 3and 5 are active listings and are adjusted downward for potential
negotiations.
Economic Trends
The comparables are all recent contract leases or active listings; therefore, no adjustments
are required.
Expense Structure
For this analysis, comparables 1, 2, 3, 5, and 6 are adjusted upward for their net lease
structures.
Location
Comparables 1 and 6 are located along Davis Boulevard and Radio Road and are
considered relatively similar in terms of location. Comparables 2 and 3 are located along
Airport Pulling Road and Tamiami Trail East and are adjusted downward for their
superior location and exposure accordingly. Comparables 4 and 5 are located in industrial
parks with inferior exposure and are adjusted upward accordingly.
Age
For this analysis, all of the comparables are relatively similar in terms of age and
condition; therefore, no adjustments are required.
Condition
As in the Sales Comparison Approach, a mix of retail, restaurant, and industrial leases are
analyzed.
Comparable 1 is retail/warehouse, comparable 2 is a cafe in a strip center, and
comparable 3 is retail space in a strip center. All three comparables are used to support
the Del's Market space.
Comparables 4 and 5 are warehouse space and are used to support the rent for the
Warehouse Building.
The Boat Sales / Storage area is essentially a land lease as the building area consists of
only 800 square feet on approximately 33,661 square foot site (2.38% land to building
ratio). Comparable 6 is a very similar land lease with 3,336 square feet of improvements
on a 64,469 square foot site (5.17% land to building ratio). Comparable 6 has a higher
land to building ratio; however, the improvements are in poor condition. Overall it is
considered relatively similar to the subject.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 85
Size
For this analysis, all of the comparables are relatively similar in terms of size; therefore,
no adjustments are required.
Market Rent Reconciliation
The retail/warehouse comparables range from $18.00 to $22.01 per square foot with an
average of $20.30 per square foot.
The warehouse comparables range from $13.34 to $15.25 per square foot with an average
of $14.29 per square foot.
The land lease is $34.22 per square foot which supports the current monthly rent for the
Boat Sales / Storage area.
Based on the preceding analysis, we have reconciled to the following market rent of for
the subject space.
Market Rent and Terms Reconciliation
Market Rent by Space Type
Space Type Rent Increases Type Term
Retail $20.00 2-3% per annum Gross 3-5 years
Warehouse $14.00 2-3% per annum Gross 2-3 years
Boat Sales / Storage $33.00 2-3% per annum Gross 3-5 years
Expense Reimbursements
The subject is analyzed on a gross basis with no expense reimbursements.
Vacancy and Collection Loss
Based on a review of market conditions and the subject’s operating history we have
projected vacancy and collection loss at 5.00%.
Expenses Analysis and Projection
Real Estate Tax
Real Estate Tax expense of $8,492 or $1.02 per square foot is based on the 2019 tax
liability for the commercial component.
Insurance
Insurance expense of $8,320 or $1.00 per square foot is based on expenses at comparable
properties.
Utilities
Utilities expense of $832 or $0.10 per square foot is based on expenses at comparable
properties.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 86
Repairs/Maintenance
Repairs/Maintenance expense of $8,320 or $1.00 per square foot is based on expenses at
comparable properties.
General/Administrative
General/Administrative expense of $1,664 or $0.20 per square foot is based on expenses
at comparable properties.
Management
Management expense of $4,368 or $0.53 per square foot is based on 3% of effective
gross income.
Replacement Reserves
Investors in Southwest Florida do not typically include reserves for replacement as a line
item expense above the net operating income line. Therefore, reserves for replacement is
not included in the following analysis.
Capitalization Rate
The capitalization rate is the factor that coverts the stabilized net operating income (NOI)
to a present value. It is the ratio of net income to value or sale price.
NOI ÷ Sale Price = Capitalization Rate
For example, if a property sells for $500,000, and has a stabilized NOI of $50,000, the
indicated capitalization rate is 10%.
Market Extracted Rates
The table below details capitalization rates extracted from the market. The following cap
rates were derived using net operating income (NOI) that does not include a replacement
reserve expense line item. The reserve allowance is generally considered by Southwest
Florida investors as an expense below net operating income and incorporated within the
overall cap rate.
Comparable Price Date NOI NOI/SF Cap Rate
1 $540,000 5/31/2017 $37,500 $15.63 6.94%
2 $787,500 8/22/2019 $31,735 $5.29 4.03%
3 $2,250,000 9/5/2019 $158,484 $16.86 7.04%
4 $1,525,000 2/7/2018 $122,485 $10.55 8.03%
5 $495,000 4/16/2019 $29,000 $10.98 5.86%
Comparable Sale Cap Rates
The comparable cap rates range from 4.03% to 8.03% with an average of 6.38%.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 87
Survey Data
The following table from the RealtyRates Market Survey shows overall capitalization
rates for un-anchored Class A&B Neighborhood, Community & Strip Retail Centers in
Florida ranging from 8.4% to 9.5%. The overall average for the regions is 9.0%.
The following table from the PwC Real Estate Investor Survey shows overall
capitalization rates for National Strip Shopping Centers ranging from 4.50% to 10.0%
with an average of 6.75%. Non-institutional properties (such as the subject) typically
have overall cap rates ranging from approximately 6.0% to 8.0% with an average of
7.0%.
As shown, overall cap rates for National Strip Shopping Centers have increased by only 5
basis points over the past year. Half of investors surveyed project cap rates will continue
to increase over the next six months while the other half project rates to hold steady.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 88
The following table from the RealtyRates Market Survey shows overall capitalization
rates for Industrial Flex/R&D space in Florida ranging from 8.4% to 9.6%. The overall
average for the regions is 9.2%. Overall capitalization rates for Industrial Warehouse
space in Florida ranging from 8.4% to 9.3%. The overall average for the regions is 8.9%.
The following table from the PwC Real Estate Investor Survey shows overall
capitalization rates for National Warehouse space ranging from 3.75% to 6.40% with an
average of 4.87%. Non-institutional properties (such as the subject) typically have overall
cap rates ranging from 6.50% to 9.00% with an average of 7.75%.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 89
As shown, overall cap rates for national warehouse buildings have increased by 31 basis
points over the past year. The majority of investors project cap rates will hold steady over
the next six months.
Capitalization Rate Conclusion
Based on the preceding analysis we place greatest reliance on the overall capitalization
rates derived from the comparable sales and conclude to an overall capitalization rate of
6.50%.
DEL'S CORNER INCOME CAPITALIZATION APPROACH
Page 90
Capitalization to Value
Unit/Space Type Income Method Units/SF Annual % of PGI
Del's Market $20.00 $/SF/Year 3,600 $72,000 47.0%
Warehouse - Tire sales/repair $14.00 $/SF/Year 3,920 $54,880 35.8%
Boat Sales / Storage $33.00 $/SF/Year 800 $26,400 17.2%
$153,280 100.0%
5.00% $7,664
$0
$145,616 95.0%
Expense Amount Annual $/SF
Real Estate Tax $8,492 $8,492 $1.02
Insurance $1.00 $8,320 $1.00
Utilities $0.10 $832 $0.10
Repairs/Maintenance $1.00 $8,320 $1.00
General/Administrative $0.20 $1,664 $0.20
Management 3% $4,368 $0.53
$31,997 $3.85
21.97%
$113,619 $13.66
6.50%
$1,747,991 $210.10
$1,750,000 $210.34
Net Operating Income (NOI):
Capitalization Rate:
Value (NOI/Cap Rate):
Rounded:
Total Expenses:
Expense Ratio (Expenses/EGI):
$/SF
$/SF
% of EGI
Method
$/Year
$/SF
$/SF
Potential Gross Income:
Vacancy & Collection Loss
Other Income:
Effective Gross Income (EGI):
Income Capitalization Analysis
Direct Capitalization Analysis Conclusion
Based on the preceding analysis detailed above, we have reconciled to a direct
capitalization approach value of $1,750,000 as of February 11, 2020.
DEL'S CORNER RECONCILIATION
Page 91
RECONCILIATION
The process of reconciliation involves the analysis of each approach to value. The
quantity and quality of data applied the significance of each approach as it relates to
market behavior and defensibility of each approach are considered and weighed. Finally,
each is considered separately and comparatively with each other.
Value Indications
Commercial Residential
Cost Approach: Not Developed Not Developed
Sales Comparison Approach: $1,830,000 $280,000
Income Approach: $1,750,000 Not Developed
Cost Approach
A cost analysis was considered and was not developed because the age of the
improvements makes the depreciation difficult to accurately measure.
Sales Comparison Approach
The sales comparison approach is most reliable in an active market when an adequate
quantity and quality of comparable sales data are available. Typically, this is the most
relevant method for owner-user properties, because it directly considers the prices of
alternative properties with similar utility for which potential buyers would be competing.
The subject property consists of retail, warehouse, and sales/storage area. It is partially
owner occupied and partially leased with two month-to-month leases. The analysis and
adjustment of the sales provides a reasonably narrow range of value indications. While it
does not directly account for the income characteristics of the subject, this approach is
given primary weight.
The sales comparison approach is the only applicable approach in the valuation of the
Residential Component.
Income Approach
The income approach is usually given greatest weight when evaluating investment
properties. The value indication from the income approach is supported by market data
regarding income, expenses and required rates of return. An owner/user is the most likely
purchaser of the appraised property, and a typical owner/user would not place greatest
reliance on this analysis. For these reasons, the income approach is given secondary
weight in the conclusion of value.
DEL'S CORNER RECONCILIATION
Page 92
Value Conclusion
Based on the data and analyses developed in this appraisal, we have reconciled to the
following value conclusion(s), as of February 11, 2020, subject to the Limiting
Conditions and Assumptions of this appraisal.
VALUE CONCLUSIONS
Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value,
As Is, Improved Property
Fee Simple February 11, 2020 $1,830,000
Market Value,
As Is, Vacant Land
Fee Simple February 11, 2020 $280,000
The value conclusion(s) are subject to the following hypothetical conditions and extraordinary
conditions. These conditions may affect the assignment results.
Hypothetical Conditions: None.
Extraordinary Assumptions: Complete access to the subject property was not granted
for the purpose of this appraisal. It is an extraordinary
assumption the condition of the interior and portions of the
exterior that were not visible are commensurate with the
portions that were visible. Further, we assume the interior
finish is similar to a typical building of this type and age.
Exposure and Marketing Times
Exposure time is always presumed to precede the effective date of the appraisal and is the
length of time the subject property would have been exposed for sale in the market had it
sold on the effective valuation date at the concluded market value. Marketing time is an
estimate of the amount of time it might take to sell a property at the estimated market
value immediately following the effective date of value.
Based on our review of recent sales transactions for similar properties and our analysis of
supply and demand in the local market it is our opinion that the probable marketing and
exposure time for the property is 12 months.
DEL'S CORNER CERTIFICATION
Page 93
CERTIFICATION
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, unbiased professional
analyses, opinions and conclusions.
3. We have no present or prospective interest in the property that is the subject of this
report, and have no personal interest with respect to the parties involved.
4. We have no bias with respect to the property that is the subject of this report or to
the parties involved with this assignment.
5. Our engagement in this assignment was not contingent upon developing or
reporting predetermined results.
6. Our compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined value or direction in value that favors
the cause of the client, the amount of the value opinion, the attainment of a
stipulated result, or the occurrence of a subsequent event directly related to the
intended use of this appraisal.
7. 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 & Standards of Professional Appraisal Practice of the Appraisal Institute.
8. My reported analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of Professional
Appraisal Practice
9. The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
10. Rachel M. Zucchi, MAI, CCIM has made an inspection of the subject property. K.
C. Lowry, MAI, CPA has not made an inspection of the subject property.
11. No one provided significant real property appraisal assistance to the person signing
this certification.
12. We have experience in appraising properties similar to the subject and are in
compliance with the Competency Rule of USPAP.
DEL'S CORNER CERTIFICATION
Page 94
13. This appraisal is not based on a requested minimum valuation, a specific valuation,
or the approval of a loan.
14. We have not relied on unsupported conclusions relating to characteristics such as
race, color, religion, national origin, gender, marital status, familial status, age,
receipt of public assistance income, handicap, or an unsupported conclusion that
homogeneity of such characteristics is necessary to maximize value.
15. Rachel M. Zucchi, MAI, CCIM and K. C. Lowry, MAI, CPA have not performed
any services, as an appraiser or in any other capacity, regarding the property that is
the subject of this report within the three-year period immediately preceding the
agreement to perform this assignment.
16. As of the date of this report, Rachel M. Zucchi, MAI, CCIM and K. C. Lowry,
MAI, CPA have completed the continuing education program for Designated
Members of the Appraisal Institute.
Rachel M. Zucchi, MAI, CCIM
Florida State-Certified General Real Estate Appraiser RZ #2984
rzucchi@rklac.com; Phone 239-596-0800 Ext. 203
K. C. Lowry, MAI, CPA
Florida State-Certified General Real Estate Appraiser RZ #2355
klowry@rklac.com; Phone 239-596-0800 Ext. 202
DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS
Page 95
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is based on the following assumptions, except as otherwise noted in the
report.
1. The title is marketable and free and clear of all liens, encumbrances,
encroachments, easements and restrictions. The property is under responsible
ownership and competent management and is available for its highest and best
use.
2. There are no existing judgments or pending or threatened litigation that could
affect the value of the property.
3. There are no hidden or undisclosed conditions of the land or of the improvements
that would render the property more or less valuable. Furthermore, there is no
asbestos in the property.
4. The revenue stamps placed on any deed referenced herein to indicate the sale
price are in correct relation to the actual dollar amount of the transaction.
5. The property is in compliance with all applicable building, environmental, zoning,
and other federal, state and local laws, regulations and codes.
6. The information furnished by others is believed to be reliable, but no warranty is
given for its accuracy.
This appraisal is subject to the following limiting conditions, except as otherwise
noted in the report.
1. An appraisal is inherently subjective and represents our opinion as to the value of
the property appraised.
2. The conclusions stated in our appraisal apply only as of the effective date of the
appraisal, and no representation is made as to the effect of subsequent events.
3. No changes in any federal, state or local laws, regulations or codes (including,
without limitation, the Internal Revenue Code) are anticipated.
4. No environmental impact studies were either requested or made in conjunction
with this appraisal, and we reserve the right to revise or rescind any of the value
opinions based upon any subsequent environmental impact studies. If any
environmental impact statement is required by law, the appraisal assumes that
such statement will be favorable and will be approved by the appropriate
regulatory bodies.
5. Unless otherwise agreed to in writing, we are not required to give testimony,
respond to any subpoena or attend any court, governmental or other hearing with
reference to the property without compensation relative to such additional
employment.
6. We have made no survey of the property and assume no responsibility in
connection with such matters. Any sketch or survey of the property included in
this report is for illustrative purposes only and should not be considered to be
DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS
Page 96
scaled accurately for size. The appraisal covers the property as described in this
report, and the areas and dimensions set forth are assumed to be correct.
7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if
any, and we have assumed that the property is not subject to surface entry for the
exploration or removal of such materials, unless otherwise noted in our appraisal.
8. We accept no responsibility for considerations requiring expertise in other fields.
Such considerations include, but are not limited to, legal descriptions and other
legal matters such as legal title, geologic considerations such as soils and seismic
stability, and civil, mechanical, electrical, structural and other engineering and
environmental matters.
9. The distribution of the total valuation in the report between land and
improvements applies only under the reported highest and best use of the
property. The allocations of value for land and improvements must not be used in
conjunction with any other appraisal and are invalid if so used. The appraisal
report shall be considered only in its entirety. No part of the appraisal report shall
be utilized separately or out of context.
10. Neither all nor any part of the contents of this report (especially any conclusions
as to value, the identity of the appraisers, or any reference to the Appraisal
Institute) shall be disseminated through advertising media, public relations media,
news media or any other means of communication (including without limitation
prospectuses, private offering memoranda and other offering material provided to
prospective investors) without the prior written consent of the person signing the
report.
11. Information, estimates and opinions contained in the report, obtained from third-
party sources are assumed to be reliable and have not been independently verified.
12. Any income and expense estimates contained in the appraisal report are used only
for the purpose of estimating value and do not constitute predictions of future
operating results.
13. If the property is subject to one or more leases, any estimate of residual value
contained in the appraisal may be particularly affected by significant changes in
the condition of the economy, of the real estate industry, or of the appraised
property at the time these leases expire or otherwise terminate.
14. No consideration has been given to personal property located on the premises or
to the cost of moving or relocating such personal property; only the real property
has been considered.
15. The current purchasing power of the dollar is the basis for the value stated in our
appraisal; we have assumed that no extreme fluctuations in economic cycles will
occur.
16. The value found herein is subject to these and to any other assumptions or
conditions set forth in the body of this report but which may have been omitted
from this list of Assumptions and Limiting Conditions.
DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS
Page 97
17. The analyses contained in the report 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 our analysis
will vary from our estimates, and the variations may be material.
18. The Americans with Disabilities Act (ADA) became effective January 26, 1992.
We have not made a specific survey or analysis of any property to determine
whether the physical aspects of the improvements meet the ADA accessibility
guidelines. In as much as compliance matches each owner’s financial ability with
the cost to cure the non-conforming physical characteristics of a property, we
cannot comment on compliance to ADA. Given that compliance can change with
each owner’s financial ability to cure non-accessibility, the value of the subject
does not consider possible non-compliance. A specific study of both the owner’s
financial ability and the cost to cure any deficiencies would be needed for the
Department of Justice to determine compliance.
19. The appraisal report is prepared for the exclusive benefit of the Client, its
subsidiaries and/or affiliates. It may not be used or relied upon by any other party.
All parties who use or rely upon any information in the report without our written
consent do so at their own risk.
20. No studies have been provided to us indicating the presence or absence of
hazardous materials on the subject property or in the improvements, and our
valuation is predicated upon the assumption that the subject property is free and
clear of any environment hazards including, without limitation, hazardous wastes,
toxic substances and mold. No representations or warranties are made regarding
the environmental condition of the subject property and the person signing the
report shall not be responsible for any such environmental conditions that do exist
or for any engineering or testing that might be required to discover whether such
conditions exist. Because we are not experts in the field of environmental
conditions, the appraisal report cannot be considered as an environmental
assessment of the subject property.
21. The person signing the report may have reviewed available flood maps and may
have noted in the appraisal report whether the subject property is located in an
identified Special Flood Hazard Area. We are not qualified to detect such areas
and therefore do not guarantee such determinations. The presence of flood plain
areas and/or wetlands may affect the value of the property, and the value
conclusion is predicated on the assumption that wetlands are non-existent or
minimal.
22. RKL Appraisal and Consulting, PLC is not a building or environmental inspector.
RKL Appraisal and Consulting, PLC does not guarantee that the subject property
is free of defects or environmental problems. Mold may be present in the subject
property and a professional inspection is recommended.
DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS
Page 98
23. The appraisal report and value conclusion for an appraisal assumes the
satisfactory completion of construction, repairs or alterations in a workmanlike
manner.
24. The intended use of the appraisal is stated in the General Information section of
the report. The use of the appraisal report by anyone other than the Client is
prohibited except as otherwise provided. Accordingly, the appraisal report is
addressed to and shall be solely for the Client’s use and benefit unless we provide
our prior written consent. We expressly reserve the unrestricted right to withhold
our consent to your disclosure of the appraisal report (or any part thereof
including, without limitation, conclusions of value and our identity), to any third
parties. Stated again for clarification, unless our prior written consent is obtained,
no third party may rely on the appraisal report (even if their reliance was
foreseeable).
25. All prospective value estimates 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 paragraph,
several events may occur that could substantially alter the outcome of our
estimates such as, but not limited to changes in the economy, interest rates, and
capitalization rates, behavior of consumers, investors and lenders, fire and other
physical destruction, changes in title or conveyances of easements and deed
restrictions, etc. It is assumed that conditions reasonably foreseeable at the present
time are consistent or similar with the future.
DEL'S CORNER ADDENDA - APPRAISER QUALIFICATIONS
ADDENDA
DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS
ADDENDUM A
APPRAISER QUALIFICATIONS
DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS
4500 Executive Drive, Suite 300
Naples, FL 34119-8908
Phone: 239-596-0800
www.rklac.com
RKL Appraisal and Consulting, PLC
COMPANY PROFILE:
RKL Appraisal and Consulting, PLC was founded in 2009 by three designated Members
of the Appraisal Institute. It is our mission to maximize our over 70-years of combined
appraisal experience to provide our clients with the highest quality of Real Estate
Appraisal and Consulting Services.
Rachel M. Zucchi, MAI, CCIM K.C. Lowry, MAI, CPA Louis C. Bobbitt, MAI
Partner / Managing Director Partner Senior Partner
rzucchi@rklac.com klowry@rklac.com lbobbitt@rklac.com
BUSINESS FOCUS:
Practice is focused on community/neighborhood shopping centers, retail and office
buildings, industrial warehouse/distribution buildings, residential and commercial
condominium and subdivision projects, hotels and motels, vacant land and special
purpose properties. Specialized services include appraisal review, business valuations,
market feasibility studies, acquisition/disposition counseling, and litigation support in
connection with real estate transactions including bankruptcy, eminent domain, estate
valuations, and matrimonial and equitable distribution. Clients served include banks and
financial institutions, developers and investors, law firms, business/industry and
government, life insurance companies and pension fund advisors, and mortgage bankers.
DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS
PROFESSIONAL QUALIFICATIONS OF
Rachel M. Zucchi, MAI, CCIM
EXPERIENCE: Partner / Managing Director of RKL Appraisal and Consulting, PLC
Naples, FL (2009 – Present)
President of D&R Realty Group, Inc.
Naples, FL (2009 – Present)
Senior Real Estate Analyst, Integra Realty Resources – Southwest Florida
Naples, FL (2003 – 2009)
Research Associate, Integra Realty Resources – Southwest Florida
Naples, FL (2002-2003)
PROFESSIONAL
ACTIVITIES:
Member:
President
Vice President
Secretary / Treasurer:
Region X Representative:
Board of Directors:
LDAC Attendee:
Member:
Member:
Licensed:
Licensed:
Appraisal Institute – MAI Certificate Number 451177
Appraisal Institute Florida Gulf Coast Chapter (2020)
Appraisal Institute Florida Gulf Coast Chapter (2019)
Appraisal Institute Florida Gulf Coast Chapter (2017 / 2018)
Appraisal Institute Florida Gulf Coast Chapter (2017 - 2020)
Appraisal Institute Florida Gulf Coast Chapter (2015 & 2016)
Leadership Development & Advisory Council
Appraisal Institute - Washington, D.C. (2016, 2017, 2018)
CCIM Institute - CCIM Designation Pin Number 21042
Naples Area Board of REALTORS
Florida State Certified General Real Estate Appraiser
License No. RZ 2984
Real Estate Broker (Florida)
License No. BK3077672
EXPERT WITNESS: Qualified as an expert witness in the Twentieth Judicial Circuit Court of Collier County
EDUCATION: Bachelor of Arts
Major in Economics
Florida Gulf Coast University, 2002
Graduated Magna Cum Laude
Honor Society, Key Club, Phi Eta Sigma
Presented at Eastern Economic Association Conference
Successfully completed real estate and valuation courses and seminars sponsored by the
Appraisal Institute and others.
BUSINESS FOCUS: Actively engaged in real estate valuation and consulting since 2003. Practice is focused on
community/neighborhood shopping centers, power centers, office-buildings,
warehouse/distribution, multi-family and single family subdivisions, condominium
developments, hotels/motels, vacant land and special purpose properties. Specialized
services include market feasibility studies and litigation support in connection with real
estate transactions. Clients served include banks and financial institutions, developers and
investors, law firms, government, and property owners. Valuations have been performed for
eminent domain, bankruptcy, estate, matrimonial/equitable distribution, financing, and due
diligence support.
DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS
DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS
PROFESSIONAL QUALIFICATIONS OF
KENNETH C. LOWRY, MAI, CPA
REAL ESTATE
EXPERIENCE:
RKL APPRAISAL AND CONSULTING, PLC
Naples, Florida
Partner (2009 – Present)
INTEGRA REALTY RESOURCES – SOUTHWEST FLORIDA - NAPLES
Naples, Florida
Senior Real Estate Analyst (1996 – 2009)
STEVEN GRAVES ASSOCIATES
Greenwood, Indiana
Fee Appraiser (1994 – 1996)
AVL APPRAISAL SERVICES, INC.
Greenwood, Indiana
Appraiser/Vice President (1991 – 1996)
AMERICAN COMMUNITY DEVELOPMENT CORPORATION
Indianapolis, Indiana
Controller (1990 – 1991)
MANSUR DEVELOPMENT, INC.
Indianapolis, Indiana
Senior Accountant (1988 – 1990)
PROFESSIONAL
ACTIVITIES:
Member:
Licensed:
Licensed:
Appraisal Institute – MAI Certificate No. 12501
Florida State Certified General Real Estate Appraiser
License No. RZ 2355
Indiana State – Certified Public Accountant #CPO8800355
EXPERT WITNESS: Qualifies as an expert witness in the Twentieth Judicial Circuit Court of Collier
County, Lee County, and Charlotte County
EDUCATION: Bachelor of Science-1981; Indiana University–Bloomington; School of Business;
Accounting Major.
Successfully completed numerous real estate and business valuation courses and
seminars sponsored by the Appraisal Institute, Institute of Business Appraisers,
accredited universities and others.
BUSINESS FOCUS: Actively engaged in real estate valuation and consulting since the early 1990’s.
Practice is focused on community/neighborhood shopping centers, power centers,
office buildings, warehouse/distribution, multi-family, condominium projects, hotels
and motels, vacant land and special purpose properties. Specialized services include
appraisals, business valuations, market feasibility studies, and litigation support in
connection with real estate transactions. Clients served include banks and financial
institutions, developers and investors, law firms, business/industry and government,
and mortgage bankers. Valuations have been performed for condemnation purposes,
estate, financing, and due diligence support.
DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS
DEL'S CORNER ADDENDUM B - FINANCIALS AND PROPERTY INFORMATION
ADDENDUM B
FINANCIALS AND PROPERTY INFORMATION
$ 0
$ 0
$ 144,480
$ 189,836
$ 334,316
$ 15,582
$ 318,734
$ 334,316
$ 318,734
Collier County Property AppraiserProperty Summary
Parcel No 52600120008 Site Address *Disclaimer 2808 THOMASSON DR Site City NAPLES Site Zone *Note 34112
Name / Address ACKERMAN, THERESA
5610 CYNTHIA LN
City NAPLES State FL Zip 34112-2309
Map No. Strap No. SectionTownshipRange Acres *Estimated
5A23 430900 35A23 23 50 25 0.44
Legal JONESVILLE LOT 3 OR 446 PG 655
Millage Area 63 Millage Rates *Calculations
Sub./Condo 430900 - JONESVILLE School Other Total
Use Code 14 - SUPERMARKETS 5.083 8.6675 13.7505
Latest Sales History
(Not all Sales are listed due to Confidentiality)
Date Book-Page Amount
09/25/19 5677-1903
01/03/19 5587-786
2019 Certified Tax Roll
(Subject to Change)
Land Value
(+) Improved Value
(=) Market Value
(-) 10% Cap
(=) Assessed Value
(=) School Taxable Value
(=) Taxable Value
If all Values shown above equal 0 this parcel was created after the Final Tax Roll
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Collier County Property AppraiserProperty Detail
Parcel No 52600120008 Site Address *Disclaimer 2808 THOMASSON DR Site City NAPLES Site Zone *Note 34112
Name / Address ACKERMAN, THERESA
5610 CYNTHIA LN
City NAPLES State FL Zip 34112-2309
Permits (Provided for reference purposes only. *Full Disclaimer. )
Tax Yr Issuer Permit # CO Date Tmp CO Final Bldg Type
0 COUNTY PRBD20180103731 ROOF
1972 COUNTY 72-1748 07/18/72
1981 COUNTY 81-2814 10/19/81 06/11/81
1998 COUNTY 9802-1906 04/02/98
2007 COUNTY 0509-3559
Land
# Calc Code Units
10 COMMERCIAL SF 19264
Building/Extra Features
# Year Built Description Area Adj Area
10 1973 METAL-STEEL FRAME 3600 3600
20 1981 FACTORY BLDG 3920 3920
30 1981 ASPH P 2646 2646
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$ 0
$ 0
$ 56,200
$ 0
$ 0
$ 252,459
$ 84,770
$ 337,229
$ 70,026
$ 267,203
$ 337,229
$ 267,203
Collier County Property AppraiserProperty Summary
Parcel No 52600080009 Site Address *Disclaimer 4825 BAYSHORE DR Site City NAPLES Site Zone *Note 34112
Name / Address ACKERMAN, THERESA
5610 CYNTHIA LANE
City NAPLES State FL Zip 34112
Map No. Strap No. SectionTownshipRange Acres *Estimated
5A23 430900 25A23 23 50 25 0.77
Legal JONESVILLE LOTS 1 AND 2, OR 1007 PG 1828
Millage Area 63 Millage Rates *Calculations
Sub./Condo 430900 - JONESVILLE School Other Total
Use Code 25 - REPAIR SHOPS, LAUNDRIES, LAUNDROMATS 5.083 8.6675 13.7505
Latest Sales History
(Not all Sales are listed due to Confidentiality)
Date Book-Page Amount
09/25/19 5677-1903
01/03/19 5587-782
02/01/83 1007-1828
07/01/78 761-361
12/01/73 567-5
2019 Certified Tax Roll
(Subject to Change)
Land Value
(+) Improved Value
(=) Market Value
(-) 10% Cap
(=) Assessed Value
(=) School Taxable Value
(=) Taxable Value
If all Values shown above equal 0 this parcel was created after the Final Tax Roll
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Collier County Property AppraiserProperty Detail
Parcel No 52600080009 Site Address *Disclaimer 4825 BAYSHORE DR Site City NAPLES Site Zone *Note 34112
Name / Address ACKERMAN, THERESA
5610 CYNTHIA LANE
City NAPLES State FL Zip 34112
Permits (Provided for reference purposes only. *Full Disclaimer. )
Tax Yr Issuer Permit # CO Date Tmp CO Final Bldg Type
1955 COUNTY 00
1992 COUNTY 92-10749 12/07/92 08/11/92 RESIDENCE
Land
# Calc Code Units
10 COMMERCIAL SF 33661.25
Building/Extra Features
# Year Built Description Area Adj Area
10 1992 RESIDENTIAL 400 1060
20 1992 ASPH P 7310 7310
30 1955 CONC P 480 480
40 1992 CLF6 732 732
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$ 0
$ 0
$ 0
$ 6,000
$ 140,000
$ 0
$ 140,000
$ 78,400
$ 61,600
$ 140,000
$ 61,600
Collier County Property AppraiserProperty Summary
Parcel No 52600160000 Site Address *Disclaimer Site City Site Zone *Note
Name / Address ACKERMAN, THERESA
5610 CYNTHIA LN
City NAPLES State FL Zip 34112-2309
Map No. Strap No. SectionTownshipRange Acres *Estimated
5A23 430900 45A23 23 50 25 0.63
Legal JONESVILLE LOT 4 OR 795 PG 1921
Millage Area 63 Millage Rates *Calculations
Sub./Condo 430900 - JONESVILLE School Other Total
Use Code 0 - VACANT RESIDENTIAL 5.083 8.6675 13.7505
Latest Sales History
(Not all Sales are listed due to Confidentiality)
Date Book-Page Amount
09/25/19 5677-1903
01/03/19 5587-784
02/00/79 795-1921
01/01/79 789-837
2019 Certified Tax Roll
(Subject to Change)
Land Value
(+) Improved Value
(=) Market Value
(-) 10% Cap
(=) Assessed Value
(=) School Taxable Value
(=) Taxable Value
If all Values shown above equal 0 this parcel was created after the Final Tax Roll
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Collier County Property AppraiserProperty Detail
Parcel No 52600160000 Site Address *Disclaimer Site City Site Zone *Note
Name / Address ACKERMAN, THERESA
5610 CYNTHIA LN
City NAPLES State FL Zip 34112-2309
Permits (Provided for reference purposes only. *Full Disclaimer. )
Tax Yr Issuer Permit # CO Date Tmp CO Final Bldg Type
Land
# Calc Code Units
10 RESIDENTIAL FF 100
Building/Extra Features
# Year Built Description Area Adj Area
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DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ADDENDUM C
COMPARABLE DATA
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID 5269 Date 2/15/2019
Address 3010-3040 Thomasson Drive Price $1,000,000
City Naples Price per SF $6.06
State Florida Financing Private Equity
Tax ID 52600200009, 52600240001,
52600280003, 52600320002,
52600360004
Property Rights Fee Simple
Grantor Thomasson PHX, LLC Days on Market 234
Grantee Thomasson Village, LLC Verification Source Alisha Cage; Naples
Legal Description Lots 5-10, Jonesville
Acres 3.8 Topography Cleared and filled
Land SF 165,000 Zoning Residential
Road Frontage 600 Flood Zone Zone AE
Shape Rectangular
Utilities All public
Land Comparable 1
Transaction
Site
Ready to build multi-family site. Sellers paid and received DEP permits, army corp of engineers approval, etc. Land is
cleared. Site engineering plans were also included for 20 cottage style homes (two, 10-plex units). Each unit is 3-
bedroom with garage and 1,500 SF. Land was listed for $1,250,000 in April 2018. Site development is underway as of
March 2020. Seller provided $150,000 concession.
Comments
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID 5270 Date 3/20/2018
Address 3278 Thomasson Drive Price $260,000
City Naples Price per SF $9.49
State Florida Financing Cash to seller
Tax ID 52600480007 + 52600480104 Property Rights Fee Simple
Grantor Brian C. Monschein Days on Market 23
Grantee Just LLC Verification Source Scott Henderson;
Downing Frye Realty Inc
Legal Description Lots 14, Jonesville
Acres 0.6 Topography Improved
Land SF 27,411 Zoning Residential
Road Frontage 100 Flood Zone Zone AE
Shape Rectangular
Utilities All public
Two adjacent parcels improved with 2 homes and 2 efficiency's (1951, 1950 ,1982). The main house (4Bed/2Bath) rents
for $1,000/ month. Guest house (2Bed/2Bath) rents for $950. Each efficiency (1Bed/1Bath) rents for $650 and $525.
Tenants are all on a month to month agreement and want to stay. Property was sold as-is and for lot value only.
Zoning allows for a new single family home and guest house or up to 4 units as multi-family. Listed for $299,900 in
Jan 2018.
Land Comparable 2
Comments
Site
Transaction
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID 5271 Date 2/25/2020
Address 2898 Weeks Ave Price $230,000
City Naples Price per SF $20.76
State Florida Financing Conventional
Tax ID 81270040000 Property Rights Fee Simple
Grantor Susan E. and David A. Astely Days on Market 44
Grantee Richard Grimes Verification Source Diane Sullivan; Naples
Beach & Bay Realty Inc
Legal Description Rebecca Weeks Lots 1+2
Acres 0.3 Topography Improved
Land SF 11,078 Zoning Residential
Road Frontage 75 Flood Zone Zone AE
Shape Rectangular
Utilities All public
Transaction
Land Comparable 3
Parcel located on the southwest corner of Weeks Ave and Bayshore Drive. Adjacent to the parking for Celebration
Park. The is an old FL cottage and guest home on the property built in 1934 + 1954. Property was listed for $299,900 in
Nov. 2019 and reduced to $249,900 in Dec. 2019.
Site
Comments
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID 5272 Date 4/26/2019
Address 2745 Arbutus St Price $84,000
City Naples Price per SF $8.38
State Florida Financing Cash to seller
Tax ID 48730400000 Property Rights Fee Simple
Grantor KCD Holdings, LLC Days on Market 4
Grantee 4771 First Ave NW Verification Source Ani Rodriguez; Xclusive
Homes LLC
Legal Description Lengthy legal
Acres 0.2 Topography Cleared
Land SF 10,019 Zoning Residential
Road Frontage --Flood Zone Zone AE
Shape Rectangular
Utilities All public
Comments
Cleared parcel along Arbutus St. Listed for $89,900.
Site
Transaction
Land Comparable 4
Improved Sale No. 1
Property Identification
Record ID 1887
Property Type Commercial, Retail store
Property Name 4097 Bayshore Drive
Address 4097 Bayshore Drive, Naples, Collier County, Florida 34112
Location ES Bayshore Drive
Tax ID 53353600007, 53353560008
Latitude N1 26° 6'56.00"N
Longitude N1 81°46'12.15"W
MSA Naples
Market Type Suburban
Sale Data
Grantor Alan and Jan Crum
Grantee Jean B. Zehnder Revocable Trust
Sale Date May 31, 2017
Deed Book/Page 5401-2519
Property Rights Fee simple
Conditions of Sale Arms length
Financing Cash to seller
Sale History No sales previous three years
Verification Robert Carroll, broker; 261-3400, August 30, 2017; Confirmed
by Louis Bobbitt
Sale Price $540,000
Cash Equivalent $540,000
Improved Sale No. 1 (Cont.)
Land Data
Land Size 0.367 Acres or 15,965 SF
Front Footage 106 ft Total Frontage: 106 ft Bayshore;
Zoning C-4-BMUD-NC, Commercial
Topography Level
Utilities All Public
Dimensions 106' x 150'
Shape Rectangular
Flood Info Zone X
Depth 150
General Physical Data
Building Type Single Tenant
Gross SF 2,400
Net SF 2,400
Construction Type Metal
Roof Type Gable/metal
Foundation Slab on grade
HVAC Package in office/showroom
Stories Single
Floor Height 12
Year Built 1975 Remodeled in 2015
Condition Average
Income Analysis
Potential Gross Income $50,000
Vacancy $5,000
Effective Gross Income $45,000
Expenses $7,500
Net Operating Income $37,500
Indicators
Sale Price/Gross SF $225.00
Sale Price/Net SF $225.00
Floor Area Ratio 0.15
Land to Building Ratio 6.53:1
Gross Income Multiplier 10.80
Eff. Gross Income
Multiplier
12.00
Expenses/Sq. Ft. $3.13
Overall or Cap Rate 6.94%
Net Operating Income/Sq.
Ft.
$15.63
Remarks
This freestanding retail building was completely renovated in 2015 and a stucco facade was
installed in the front. It has approximately 1,700/sf (71%) office/showroom and the remainder is
warehouse with 2 OH doors. Property was previously used for astro-turf business and was vacant
at the time of sale. Income and expense data is proforma by the appraiser.
Improved Sale No. 2
Property Identification
Record ID 2385
Property Type Industrial, Light Industrial
Property Name 3209 Van Buren Ave
Address 3209 Van Buren Ave, Naples, Collier County, Florida 34112
Location NS Van Buren Ave - Kelly Plaza
Tax ID 52700960207
Latitude N1 26° 7'4.94"N
Longitude N1 81°46'1.03"W
MSA East Naples
Market Type Suburban
Sale Data
Grantor Port Royal Partners, LLC
Grantee Richard Floyd Wear
Sale Date August 22, 2019
Deed Book/Page 5667/140
Property Rights Fee Simple
Conditions of Sale Arm's Length
Financing Private Equity
Mortgagee Silver Hill Funding, LLC
Original Mortgage $630,000
Sale History None in previous 3 years
Verification Christine McManus, CCIM, SIOR; 239-261-3400, March 03,
2020; Other sources: Listing Brochure, Confirmed by Rachel
Zucchi
Sale Price $787,500
Cash Equivalent $787,500
Improved Sale No. 2 (Cont.)
Land Data
Land Size 0.399 Acres or 17,400 SF
Front Footage 100 ft Total Frontage: 100 ft Van Buren Ave;
Zoning C-5-BMUD-NC, Commercial
Topography Level
Utilities All Public
Dimensions 100' x 175'
Shape Rectangular
Flood Info Zone AE
Depth 175
General Physical Data
Building Name 3209 Van Buren
Building Type Single Tenant
Gross SF 6,000
Net SF 6,000
Construction Type Steel
Foundation Concrete Slab
Stories 1
Year Built 1990
Condition Average
Income Analysis
Potential Gross Income $48,000
Vacancy $2,400
Effective Gross Income $45,600
Expenses $13,865
Net Operating Income $31,735
Indicators
Sale Price/Gross SF $131.25
Floor Area Ratio 0.34
Land to Building Ratio 2.9:1
Gross Income Multiplier 16.41
Eff. Gross Income
Multiplier
17.27
Expenses/Sq. Ft. $2.31
Overall or Cap Rate 4.03%
Net Operating Income/Sq.
Ft.
$5.29
Remarks
Industrial building located along Van Buren Ave within the Bayshore Mixed Use Overlay
District. Building was listed for $875,000. Steel construction with 16' eave height and 18' center
height. Building is mostly warehouse space with a small office in front. Advertised as short-term
partial lease-back with seller leasing 1/2 of the building for 6 months at $2,000/month. According
to the listing agent, the buyer occupied the building and the seller did not lease any space.
Income/expense data is pro-forma based on market.
Improved Sale No. 3
Property Identification
Record ID 2384
Property Type Retail, Restaurant
Property Name The Colosseum
Address 2059 Tamiami Trail E, Naples, Collier County, Florida 34112
Location NS Tamiami Trail E
Tax ID 77510080006
Latitude N1 26° 8'9.83"N
Longitude N1 81°46'44.05"W
MSA East Naples
Market Type Suburban
Sale Data
Grantor 2059 Tamiami Trail East, LLC
Grantee MSK 2059, LLC
Sale Date September 05, 2019
Deed Book/Page 5670/2176
Property Rights Fee Simple
Conditions of Sale Arm's Length
Financing Conventional
Mortgagee FineMark National Bank & Trust
Original Mortgage $2,600,000
Sale History None in previous 3 years
Verification Matthew Kragh, MHK Architecture & Planning; 239-919-0786,
March 03, 2020; Confirmed by Rachel Zucchi
Sale Price $2,250,000
Cash Equivalent $2,250,000
Improved Sale No. 3 (Cont.)
Land Data
Land Size 1.050 Acres or 45,738 SF
Front Footage 180 ft Total Frontage: 180 ft Tamiami Trail E (US 41);
Zoning C-4-GTMUD-MXD, Commercial
Topography Level
Utilities All Public
Shape Irregular
Flood Info Zone AE
Depth 560
General Physical Data
Building Name The Colosseum
Building Type Single Tenant
Gross SF 9,400
Net SF 9,400
Construction Type CBS
Roof Type Flat
Foundation Concrete
Stories 2
Year Built 1977
Condition Average
Income Analysis
Potential Gross Income $214,320
Vacancy $10,716
Effective Gross Income $203,604
Expenses $45,120
Net Operating Income $158,484
Indicators
Sale Price/Gross SF $239.36
Sale Price/Net SF $239.36
Floor Area Ratio 0.21
Land to Building Ratio 4.87:1
Gross Income Multiplier 10.50
Eff. Gross Income
Multiplier
11.05
Expenses/Sq. Ft. $4.80
Overall or Cap Rate 7.04%
Net Operating Income/Sq.
Ft.
$16.86
Remarks
Two-story building located along north side of Tamiami Trail E (US 41). Originally built in as
Thalheimers Jewelers auction gallery. Since Thalheimers sold the property in 2002, it has been
occupied by several clubs and restaurants — Sway Lounge, Loft 59, Wise Guys Supper and
Comedy Club, The Colosseum and finally Blue Flame of Naples. Property was vacant at time of
sale. Purchased by local architect, Matthew H. Kragh. The firm plans to relocate in Oct 2020
from current location on 6th Ave. S., to the subject building. Mr. Kragh reports they are doing an
extensive interior and exterior renovation and liked the location in the Bayshore Gateway
Triangle, a redevelopment area. Former bars on the first and second floors will be converted into
conference rooms with work stations nearby. The venue’s large kitchen will be completely
refurbished and remain operational as a commercial kitchen for private client lunches and dinners
and special functions and events. Income/expenses are based on market data.
Improved Sale No. 4
Property Identification
Record ID 2023
Property Type Retail, Retail store
Property Name Former St Vincent DePaul Thrift Store
Address 3196 Davis Blvd, Naples, Collier County, Florida 34104
Location SS Davis Blvd, W of Airport Rd S
Tax ID 61843240008
Latitude N1 26° 8'16.51"N
Longitude N1 81°46'3.20"W
MSA East Naples
Market Type Suburban
Sale Data
Grantor St Vincent De Paul Society Naples Distric Council, Inc.
Grantee Davis Shop, LLC
Sale Date February 07, 2018
Deed Book/Page 5477/3509
Property Rights Fee Simple
Conditions of Sale Arm's Length
Financing Cash to seller
Sale History None in previous 3 years
Verification Patty McClimans; SVN; 239-963-4288, May 08, 2018;
Confirmed by Rachel Zucchi
Sale Price $1,525,000
Cash Equivalent $1,525,000
Land Data
Land Size 0.867 Acres or 37,760 SF
Front Footage 128 ft Total Frontage: 128 ft Davis Blvd;
Zoning C-5; GTMUD-MXD, Commercial
Improved Sale No. 4 (Cont.)
Topography Level
Utilities All Public
Dimensions 128' x 295'
Shape Rectangular
Flood Info Zone AE
Depth 295
General Physical Data
Building Name St Vincent De Paul
Building Type Single Tenant
Gross SF 11,610
Net SF 11,610
Construction Type Steel Frame
Roof Type Metal; Gable
Foundation Concrete
Stories 2
Year Built 1967 2002
Condition Fair
Income Analysis
Potential Gross Income $168,345
Vacancy $16,835
Effective Gross Income $151,510
Expenses $29,025
Net Operating Income $122,485
Indicators
Sale Price/Gross SF $131.35
Sale Price/Net SF $131.35
Floor Area Ratio 0.31
Land to Building Ratio 3.25:1
Gross Income Multiplier 9.06
Eff. Gross Income
Multiplier
10.07
Expenses/Sq. Ft. $2.50
Overall or Cap Rate 8.03%
Net Operating Income/Sq.
Ft.
$10.55
Remarks
St Vincent DePaul Society used building as a thrift store for more than 30 years. The original
7,410 sf metal building was constructed in 1967 and a 4,200 sf addition was added in 2002. The
seller leased the building back for 6 months. The buyer leased the property for a reported $12/sf
NNN after the seller vacated. Located across from new Porsche of Naples dealership. There was
reported roof damage from Hurricane Irma and the price was reduced $150,000. Income and
expense data is proforma based on market.
Improved Sale No. 5
Property Identification
Record ID 1751
Property Type Commercial, Religious Facility
Property Name 4896 Rattlesnake Hammock Road
Address 4896 Rattlesnake Hammock Road, Naples, Collier County,
Florida 34113
Location NQ of Tamiami Trail E and Rattlesnake Hammock Road
Tax ID 63104200002
Latitude N1 26° 6'33.80"N
Longitude N1 81°44'55.55"W
MSA East Naples
Market Type Suburban
Sale Data
Grantor Sheila Ronald Trust
Grantee Dominga Flowers of Naples, LLC
Sale Date April 16, 2019
Deed Book/Page 5623/1102
Property Rights Fee simple
Conditions of Sale Arms length
Financing Private equity; seller
Mortgagee Velocity Commercial Capital, LLC; Seller
Sale History No sales previous three years
Verification Marie Macaluso, broker; 206-4466, December 16, 2016; Other
sources: MLS Listing, Confirmed by Louis Bobbitt
Sale Price $495,000
Improved Sale No. 5 (Cont.)
Cash Equivalent $495,000
Land Data
Land Size 0.419 Acres or 18,266 SF
Zoning C-4, Commercial
Topography Level
Utilities All Public
Shape Irregular
Flood Info Zone AE
General Physical Data
Building Type Single Tenant
Gross SF 2,640
Net SF 2,640
Construction Type CBS
Roof Type Gable/shingle
Foundation Slab on grade
HVAC Package
Sprinklers None
Stories Single
Floor Height 9
Year Built 1970
Condition Average
Income Analysis
Potential Gross Income $37,000
Vacancy $2,000
Effective Gross Income $35,000
Expenses $6,000
Net Operating Income $29,000
Indicators
Sale Price/Gross SF $187.50
Sale Price/Net SF $187.50
Floor Area Ratio 0.14
Land to Building Ratio 6.93:1
Gross Income Multiplier 13.38
Eff. Gross Income
Multiplier
14.14
Expenses/Sq. Ft. $2.27
Overall or Cap Rate 5.86%
Net Operating Income/Sq.
Ft.
$10.98
Remarks
This freestanding building has limited frontage on Rattlesnake Hammock Road and almost no
visibility. The building was being used as a church on a month to month lease but is moving out
subsequent to the sale. Financed by private equity ($315K) and seller ($30K). The buyer will
occupy the building with flower shop. Income/expenses are pro-forma based on market.
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID Name
Address Lessor
City GBA
State Rent Steps
Market Expense Recoveries
Year Built Concessions
Condition Tenant Improvements
Tenant Size $/SF TypeDateTerm
World Cat Powerboats 9,900 $13.00 NNN 1/1/2020 36 months
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
Lease Comparable 1
Second generation
$5.00 per SF
None
East Naples
This freestanding building has 2,000/sf of AC showroom, office, 1 restroom and 7,900/sf of AC warehouse with 2 OH
doors and 3 restrooms. Zoned C-4.
3% Annual
Comments
Naples
Average
Florida
2825 Davis Boulevard
2575
Leases
1982
2825 Davis Boulevard
2825 Davis LLC
9,900
Location Building
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID Name
Address Lessor
City GBA
State Rent Steps
Market Expense Recoveries
Year Built Concessions
Condition Tenant Improvements
Tenant Size $/SF TypeDateTerm
WT Cafe of Collier 1,826 $18.00 NNN 6/1/2018 5 years
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
Naples 16,987
Florida Flat for 2 yrs; 3% per year
Average Second generation
$5.17
771 Airport Road North, Unit 2 Lyjac Properties LLC
Unit is finished out as a cafe and lease includes some FF&E. Re nt is flat for first 2 years and then 3% esc per year.
Comments
1999 None
Leases
East Naples
Lease Comparable 2
2593 Naples Flooring
Location Building
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID Name
Address Lessor
City GBA
State Rent Steps
Market Expense Recoveries
Year Built Concessions
Condition Tenant Improvements
Tenant Size $/SF TypeDateTerm
Listing 1,225 - 6,000 $18.50 Triple ne t 2/11/2020 3-5 years
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
2566 The Hitching Post Units
11536
JCS Realty Group LLC115536 and 11560 Tamiami Trail
East
Average
Naples 46,302
Lease Comparable 3
As is1974-1981
Second generation
Florida 3% annually
East Naples $5.65
Leases
Comments
Retail strip center located along south side of Tamiami Trail East. CAM includes water and sewer. Office, retail, and
restaurant space.
Location Building
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID Name
Address Lessor
City GBA
State Rent Steps
Market Expense Recoveries
Year Built Concessions
Condition Tenant Improvements
Tenant Size $/SF TypeDateTerm
Caribbean Logistics & Invest 5,040 $14.52 Gross 4/1/2019 36 months
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
1801 J & C Boulevard Indigo RE, Inc.
Lease Comparable 4
Location
2373 1801 J & C Boulevard
1984 None
Average Second generation
Naples 5,040
Florida 4% Annual
Building
North Naples None
Leases
Comments
This freestanding building has a 550/sf AC office area and the remainder of the building is warehouse with 5 OH doors.
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID Name
Address Lessor
City GBA
State Rent Steps
Market Expense Recoveries
Year Built Concessions
Condition Tenant Improvements
Tenant Size $/SF TypeDateTerm
Listing 1,263 - 10,647 $10.00 NNN 2/11/2020 2-3 years
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
Location Building
Ming and Kwang
Development Corp
Leases
17,500
Florida
4584 Enterprise Ave
2594 Ming Enterprise Building
Second generation
CPI
Multi unit office/warehouse complex just east of Airport Road. Industrial/Warehouse space available for $10/sf with
$3.20/sf CAM.
Comments
Naples
Lease Comparable 5
Naples $3.20
1985 Negotiable
Average
DEL'S CORNER ADDENDUM C - COMPARABLE DATA
ID Name
Address Lessor
City GBA
State Rent Steps
Market Expense Recoveries
Year Built Concessions
Condition Tenant Improvements
Tenant Size $/SF TypeDateTerm
All Sod Nursery, Inc 3,336 $27.07 NNN 5/1/2019 5 years
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
0 $0.00 1/0/1900
Comments
Building was constructed in 1959 and is outmoded in terms of construction and functionality. Lease is essentially a land
lease of a 64,469 square foot Industrial zoned site located on the north side of Radio Road in the Naples Production Park.
1959 None
2595 All Sod Nursery
Lease Comparable 6
Location Building
NonePoor
$7.15
5% per year
Naples 3,336
Florida
FAM Satpro LLC
Naples
Leases
4701 Radio Road