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Agenda 05/26/2020 Item #14B 1 (CRA Property Acquisition - Del's)14.B.1 05/26/2020 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, contingent on the closing of the Triangle Property sale, 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. At the May 12, 2020 meeting, the Board reviewed a purchase and sale agreement for this property and requested that the acquisition of the Del's Corner properties be made contingent on closing the Triangle Property sale, the resulting payoff of the Taxable Note, elimination of the annual debt service payment of $630,000, freeing up the $350,000 debt service reserve and eliminating the Note driven cap on operational expenditures. Staff has worked with the property owner to update the agreement to this effect. If the agreement is approved staff requests authority to process necessary, property sale, reserve, carry forward and transfer budget amendments. Packet Pg. 130 14.B.1 05/26/2020 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 alleviation of associated debt. FISCAL IMPACT: In order to both accommodate existing funding commitments and maintain a prudent financial management approach, the agreement to purchase the Del's Corner properties is contingent on closing the Triangle Property sale. The total cost of the Del's Corner property 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 could add as much as $25,000 to the cost of acquisition. Significant pending Bayshore CRA financial matters include: closing on the sale of the Triangle Property and related Taxable Note liability, 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 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 unrestricted funds by approximately $2,784,759. Budgets required for the Triangle Property sale, the Dell's Corner property acquisition, parking lot construction, and the 17 acre site design will be established at this time through budget amendments recognizing and appropriating Triangle Property sale proceeds, Bayshore CRA Fund (187) carryforward, and reclassifying existing reserves, 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 majority 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 all necessary budget amendments. 7. Direct the County Manager or his designee to proceed to acquire the Property, contingent on the Packet Pg. 131 05/26/2020 14.B.1 closing of the Triangle Property sale, and to follow all 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. Location Map (PDF) 2. [Linked] Maxwell Hendry Simmons Appraisal (PDF) 3. Agreement for Sale and Purchase (PDF) 4. [Linked] RKL Appraisal Report (PDF) 5. Triangle Closing Summary update 5-20-20 (PDF) Packet Pg. 132 14.B.1 05/26/2020 COLLIER COUNTY Board of County Commissioners Item Number: 14.B.1 Doe ID: 12393 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, contingent on the closing of the Triangle Property sale, recognize and appropriate Bayshore CRA Fund (187) carry forward, establish budget for the Triangle Property sale, and authorize necessary budget amendments. (Debrah Forester, Director, Community Redevelopment Agency) Meeting Date: 05/26/2020 Prepared by: Title: — Corporate Business Operations Name: Sean Callahan 05/15/2020 4:50 PM Submitted by: Title: County Manager — County Manager's Office Name: Leo E. Ochs 05/15/2020 4:50 PM Approved By: Review: County Manager's Office Public Services Department Facilities Management County Attorney's Office Corporate Business Operations County Attorney's Office Office of Management and Budget Budget and Management Office Budget and Management Office County Manager's Office Board of County Commissioners Debrah Forester Additional Reviewer Jennifer Reynolds Additional Reviewer Toni Mott Additional Reviewer Jennifer Belpedio Level 2 Attorney of Record Review Sean Callahan Additional Reviewer Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Debra Windsor Level 3 OMB Gatekeeper Review Mark Isackson Additional Reviewer Ed Finn Additional Reviewer Leo E. Ochs Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 05/18/2020 1:49 PM Completed 05/18/2020 1:57 PM Completed 05/19/2020 3:53 PM Completed 05/19/2020 4:04 PM Completed 05/19/2020 4:12 PM Completed 05/19/2020 4:18 PM Completed 05/20/2020 8:19 AM Completed 05/20/2020 8:57 AM Completed 05/20/2020 1:06 PM Completed 05/20/2020 1:53 PM 05/26/2020 9:00 AM Packet Pg. 133 14.B.1.a EUPW —Th*n-ftmn U Location Map — Del's Corner ' -r.aswu OR ` N 06 d L L 0 U N d ce) a) Cl) N t C� G Cu 0 0 J r-i C d t V R a Packet Pg. 134 MAXWELL HENRY SIMMONS . real estate appraisers & consultants 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 lnfo@MHSappraisal.com (239)337-0555 MHSappraisal.com 12600 World Plaza Lane, Building 463 Fort Myers, FL 33907 MAXWELL HENDRY SIMMONS real estate appraisers & consultants 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 Drivel 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 EXTENTOF INSPECTION................................................................................................................................................. 3 TYPE AND EXTENT OF DATA RESEARCH............................................................................................................................ 3 TYPE AND EXTENT OF ANALYSIS...................................................................................................................................... 3 ASSUMPTIONS.............................................................................................................................................................. 5 EXTRAORDINARYASSUMPTIONS...................................................................................................................................... 5 HYPOTHETICALCONDITIONS........................................................................................................................................... 5 COMPETENCY PROVISION............................................................................................................................................... 6 SEC. III: REGIONAL AND MARKET AREA ANALYSIS.................................................................................................. 7 SOUTHWEST FLORIDA/ COLLIER COUNTY DATA................................................................................................................ 7 CONCLUSION/ LIFE CYCLE STAGE................................................................................................................................ 11 MARKETAREA............................................................................................................................................................ 12 SEC. IV: PROPERTY DESCRIPTION.........................................................................................................................16 LOCATIONMAP........................................................................................................................................................... 16 AERIALMAP - WIDE................................................................................................................................................... 17 AERIALMAP - CLOSE................................................................................................................................................. 18 LEGALDESCRIPTION................................................................................................................................................... 19 FLOODMAP...............................................................................................................................................................20 PROPERTYPHOTOGRAPHS........................................................................................................................................... 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 PRESENTUSE............................................................................................................................................................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 SEC. I: INTRODUCTION OWNER OF RECORD: Theresa Ackerman For purposes of this analysis, we have described the properties as Parcel A, Parcel B, and Parcel C which are illustrated below: PROPERTY DESCRIPTION: Parcel A: no address established. Folio # 52600160000 ADDRESSEs/TAx IDS: 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. Parcel A: 0.63 acre / 27,443 square feet. No improvements. SITE AREAS/ Parcel B: 0.44 acre/ 19,166 square feet. 7,520 square foot warehouse/retail. IMPROVEMENTS: Parcel C: 0.77 acre / 33,541 square feet. 800 square foot former residence/office. Parcel A: RMF-6-BMUD-R2 ZONING: Parcel B: C-5-BMUD-NC Parcel C: C-3-BMUD-NC HIGHEST& BEST USE Parcel A: Multi -family residential AS VACANT: Parcel B: Commercial Development Parcel C: Commercial Development MAXWELL HENDRY SIMMONS 1 HIGHEST & BEST USE Parcels B and C: Continued use as improved AS IMPROVED: EFFECTIVE DATE OF THE 11 February 2020 APPRAISAL: DATE of THE REPORT: 6 March 2020 This appraisal is made for the exclusive use of our client, Bayshore/Gateway INTENDED USER: 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: Parcel A COST APPROACH: N/A SALES APPROACH: $245,000 INCOMEAPPROACH: N/A FINAL OPINION: $245,000 Parcel B Parcel C N/A N/A $1,205,000 $675,000 $1,150, 000 N/A $1,205,000 $675,000 MAXWELL HENDRY SIMMONS 2 SEC. 1 I: 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/ Core Logic 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. MAXWELL HENDRY SIMMONS 3 Condition Al2praised 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. MAXWELL HENDRY SIMMONS 4 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 thatthe 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. MAXWELL HENDRY SIMMONS 5 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. MAXWELL HENDRY SIMMONS 6 G.1 S EC. 111: REG 10 NAL AN D MARKET AREA ANALYS I S SOUTHWEST FLORIDA / COLLIER COUNTY DATA 0% -r-' MAXWELL HENDRY SIMMONS 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). MAXWELL HENDRY SIMMONS $ 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 2010 2000 Change (1 JULY EST.) 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. -Ak k- 2019 2018 2017 2016 UNEMPLOYMENT RATE' 2.5% 3.4% 4.1% 4.8% (September) (Annual) (Annual) (Annual) 7 AVERAGE WEEKLY WAGE' $950 (2Q) $1,002 (4Q) $966 (4Q) $915 (4Q) SINGLE-FAMILY MEDIAN PRICE2 $450,000 $446,000 $420,356 $434,900 (December) (Annual) (Annual) (Annual) 3.3% (4Q) RETAIL VACANCY RATES 5.1% (4Q) 2.2% (4Q) 5.7% (4Q) OFFICE VACANCY RATES 8.6% (4Q) 6.8% (4Q) 6.1% (4Q) 7.2% (4Q) INDUSTRIAL VACANCY RATES 2.1% (4Q) 1.9% (4Q) 0.8% (4Q) 1.2% (4Q) ML 1. Bureau of Labor Statistics - Quarterly Employment and Wages 2. Florida Realtors s. Costar MAXWELL HENDRY SIMMONS 9 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 (1- 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-9Os. Rainfall averages just over 53 inches annually, with the heaviest rains during the summer months. MAXWELL HENDRY SIMMONS 10 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. MAXWELL HENDRY SIMMONS 11 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: 11AkWOW AA EMmww rr = %a rr.w 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. MAXWELL HENDRY SIMMONS 12 The following is a summary of the demographics of the Bayshore/Gateway CRA: 2019 Total Population 7,431 21,239,528 374,752 2024Total 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 $2341264 $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 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. MAXWELL HENDRY SIMMONS 13 EXECUTIVE SUMiIARY 5.0.5 Focus of Redevelopment The following pro'vidos a focus of redevelopment for each Character Area based on tint specAc cha,a:terist es. described in Map S-ES-2 and the most ,e e: ant rede• elapment sr a— , es. 1. Mini Tilangle/Davis • Urban -style mixed use commercial redevelopment, including cap,talizaron on the Mini Triangle as a catalyst development srte and urban -sane parking solutions • Park development at retention pond site ■ Complete Streets design and commercial redevelopment along Unwood Ave and other nearby commercial roadways; oedew,an sca':e street des gn tetween hlin, TrEang e, Gnwotid Ave, and the prcposed retenrcn pond park • unproved access to Mini Tr ar.gle de-re[opment from US 41, Davis Blvd, and Linwood Ave • Mufti -modal connectivity: • Across Davis Blvd • Between Mini Triangle, Unwood Ave, ❑rcaosed retention pond park, and earern Triangle neighborhood ■ To Downtown Naples pate nsially via Davis Blvd, US 41, and Gordon River Bridge improvements • Additional infrastructure improvements: sanitary __..a•s, e'ectrical, stormwater 2. Shadowlawn • Residential structural enhancement and upgrades ■ Avoidance of incompa ible uses • Trans rcna elements tet.t-ear ji?fe-e-k- Jse3 lnfi!I development on vacant residential lots • Flooding and drainage on neighborhood stints • Complete Street improvements along Shadowlawn Drive 3. Airport Pulling ■ Transitions between residential meighborhocc and commercial development • Eventual street enhancements, particularly connectivity across Airport Pulling Rd • Commercial fagade improvements 4. Tamiami • Connectivity to Downtown Naples via U5 41 • Redevelopment of Courthouse Shadows • Tenant opportunity and site improvements 'o- walkable design at Gulfgatt Plaza 5. Wir&tar • Complete Streets and MSTU improvements Wong major corn munirl roadways, including 8ayshore Drive, Thcmasson Drive, and Hamilton Avenue • Access to Bayview Park 6. North Bayshore • Corridor commercial development along Bayshore Drive, inciud,rig Haldeman Creek Entertainment Center near Creek and crearive parking solutions • Larger redevelopment opportunities of 17-Acre S,te and De?'z 24 property • Arts and culture--anentrd de:e oPrime rrt ■ Transitional elements berween corridor commercial and residential areas along Bayshore Drive and Thomasson Drive • Development of vacant residential lots Bayshore Gateway Triangle CRA Area Plan —May 2019 MAXWELL HENDRY SIMMONS 14 In this area, there have been significant infrastructure and roadway improvement work. Furthermore, according to the TOD study, roadway improvements are recommended as follows: p4admWimpryinin" t>; us n1 Zon in Recomrnlndation to coordinate on future g Resurfacing and certain safety improvements improvements with FDOT to develop and incorporate a Overlay and turrentty programmed in FDOTTranspartatipn community vision for ccmpro ensne Corn p[ere Streets Landscaping Improvement Program. improvements along this corridor Isee Secr.on 5.3.5J. Davis eoulevard Resurfaongprojer. beg,nning as part of FDOT Streezli rting Transportaii".. mpro'lenient Program and Zoning projects. Overlay Roundabout will be put in at sayshore and Thomasson as a bayshore Bayshore Drive Beautification MS U project. Landscaping • Bayshore Cr needs to be considered for streersca pe a'ld roadwwa Updates via rile Ea., shore Beautification MM, Recommendation to coordinate on future impro-,*menis with FDOT to develop and incorporate a comm unigr vision for comprehensive Complete Streets improNernents along this corridor [see Seca on 5.3.5j. Recommendation included to make Complete Streets mmprehansive roadway improvements along sayshore Orrve and evaluate opportunity to underground a-.*rhead utilities Isee Section 5.3.5. Section 5.3A and capital funding in Section 5.61. 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. MAXWELL HENDRY SIMMONS 15 SEC. IV: PROPERTY DESCRIPTION LOCATION MAP Bonita Springs Bird Rookery Swamp Al orar.,gvree North Naples ry 4, Vineyards Pa�x sr-o;�;. Naples Zoo at Golden Gate Catibbear, Gardens r _ ry Naples SUBJECT Lely Lely Rosort Picayune Keewaydin Strand Island State Forest old Marco Junction Marco Island G aodla nd Ten Thousand Island Collier -Seminole State Park a, Cape Ronnano - Ten Thousand Islands... MAXWELL HENDRY SIMMONS 16 # mr N& 0 %Aa4W--�ds weZ IL 4F. 7% Ir N -41 AERIAL MAP - CLOSE . No ,.Thomassan DR )Pik' jA -1 46; 1p Thor MAXWELL HENDRY SIMMONS 18 LEGAL DESCRIPTION Lots 1 & 2, Jonesville, according to the plat recorded in Plat Book 4, Page 41, Public Records of Calder County, Florida as recorded on January 40, 2019 at O.R. Book 5587, Pages 782-783, Public Records of Collier County, Florida. Lot 3, Jonesville, according to the plat recorded in Plat Book 4, Page 41, Public Records of Collier County, Florida as recorded on January 0, 2019 at O.R. Book $587, Pages 7W787, Public Records of Collier County, Florida. Lot 4, Jonesville, according to the plat recorded in Plat Book 4, Page 41, Public Records of Collier County, Florida as recorded on January 4th, 2019 at O.R. Book 5587, Pages 784-795, Public Records of Collier County, Florida. MAXWELL HENDRY SIMMONS 19 ilk FLOOD MAP National Flood Hazard Layer FI RMette :; , ; Legend E r re aEwar roa orrnum rswEuo vuo iuo x nnaroc clan enuEt tmo m iB93'43.�"N Wrthoul Base Fbod E l..w tBFE) - n - --- zone A v, Aaa SPECIAL FL... Wrt h BFor Dapthrone Ae, w, Av, vs,xu - - - - - - - - - - - - - - HAZARD AREAS R g.tort' Fkwdry - i.�f,S R25E S1. 02?6 Annul Chance Floul 16-+�rd, Arm _ � _ of 1%enn uel chancefl000' wRh avar�e - - depth l�s than onefoo[or with diair�e erg of less than one square mikx rune x Zet7@ HE [ETB Feet] Fu[ure CantlRior¢ 1% Annual C —Fku H—rd ro.ez Ar®with R�ucai Flout R'sk due m OTHERAREASOF lrtvue. Sea Not�.ronex FLOOD HAZARD« �� Ar®with Flout R'skdue to lease roneo T5p5 825E 514 - _ -__ DAr®of Minirr®IFIouiI�N ron.i Effective LOMRt Zone AE OTHER AREAS Area of Urcle[ermirad Fbd Hazard ronvo Feet) ± _ GENERAL - -- Channel, 0.ilvert,orSmrm Sewer STRUCTURES Irtvee, piW,or Fbotl�tiall - ' Crams Sactior wfth l% Annual Chance M6 ter Su dace Elaeation • COLL'[I:I•: taC1UN1Y o- CaanalT"m _ _� base Flom' Eleatic. Li-,.FE) �'„'„' • - L it etbn Bcuntlary & aline - ' - - --'%R.s:. =.:.,.£ ':� �- OTHER - Proflls Beeline - - - - _ - - - - - FEATURES Hxdrogiaphic F—1 .,, DOW Data Available .1� No zi , pate Available MAP PANE LS Unmapped Thepintlspkyeoont a mepisanappmaimate 4 pointselectul bye usethr eW doe oep— enaMhorRative property bcatbn. e complimth FEMA'sstandaNsforthe we of fom-dgal -fit is nMvotl es tloscri betl below. Thebasemapshowne,Iwrth FEMAS basemap accurary stardarcG Theflootl laze rtl iMorrtction ¢ tler tlirec[ ly from the aurhoritatrve N FHL web serue� prw d®i by FEMA. Th's nap �L.L' L--0. was exportedon3/412020at1095:39AM and does rut ut¢equent to thistleteard cede.changesordff-i if time. The NFHLand effe tiue informal bn may chargeor ' +L � biome suparserletl by rewtle[a over time. Ski-" Th¢map image is —rfth—p mg.V.ilhefolbwirg map elemen.dorwtapp®rbesemepima°jery,iloulxore66eG, L'SOS The; stjonal'M ap: O rthu m , A 'I �14R lee m legend, scab fir, map cr�tion date,communrty ids M'rflers, unRmaped aW nemodern'I¢ad... mnnot be uus�dBoresfor ��'18.38"N Feel �'6M0 �� 0 250 500 1,000 1,500 2,000 regulatory purposes. MAXWELL HENDRY SIMMONS 20 PROPERTY PHOTOGRAPHS i SW'LY VIEW OF SUBJECT FROM THOMASSON DRIVE MAXWELL HENDRY SIMMONS 21 lio _ h _:fit • � a A}` Pi- �' ;"4'.-�2�'1- ifs •• - � .•Y• ��..: `. lkAll Iff DEl•5 WHOI [SALE WAR[ 1■ ' �,or S'LY VIEW OF PARCEL B - RETAIL FROM THOMASSON DRIVE E'LY VIEW OF PARCEL B - RETAIL MAXWELL HENDRY SIMMONS 25 K3 INTERIOR OF PARCEL B - RETAIL INTERIOR OF PARCEL B - RETAIL MAXWELL HENDRY SIMMONS 26 INTERIOR OF PARCEL B - RETAIL INTERIOR OF PARCEL B - RETAIL MAXWELL HENDRY SIMMONS 27 N'LY STREET VIEW ALONG BAYSHORE DRIVE, SUBJECT ON RIGHT MAXWELL HENDRY SIMMONS 28 W'LY STREET VIEW ALONG THOMASSON DRIVE MAXWELL HENDRY SIMMONS 29 SITE CHARACTERISTICS —ALL PROPERTIES Parcel A: no address established. Folio # 52600160000 ADDREssEs/TAx IDS: 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: .,,wonn.n 1 Lr w W' fw� i1�W�'r�• "N Lr . F' _ u y. C3u�wo.w o.•....,srr. "'y ■ cah ww...n au yA.H .y iiB cgMly`. MAXWELL HENDRY SIMMONS 30 All properties have full utilities. The properties have electricity provided by UTILITIES: 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. The subject properties are located within Flood Zone AE-EL7 as found on Flood FLOOD ZONE: 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. ON There are no known adverse easements, encroachments, restrictions, EASEMENTS, encumbrances, leases, reservations, covenants, contracts, declarations, ENCROACHMENTS, ETC.: special assessments, ordinances or other items of a similar nature. No survey was provided. MAXWELL HENDRY SIMMONS 31 BAYSHORE/GATEWAY TRIANGLE DEVELOPMENT OVERLAY: The subject property has a designated future land use categorization, as follows: Governing Body Collier County Bayshore/Gateway Triangle Future Land Use Designation 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 maybe limited by 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. MAXWELL HENDRY SIMMONS 32 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 BAYSHORE/GATEWAY development standards. TRIANGLE REDEVELOPMENT 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 - CONTINUED: 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. MAXWELL HENDRY SIMMONS 33 SITE CHARACTERISTICS - PARCEL A ADDREss/TAx ID: No address established. Folio # 52600160000 LOCATION/ACCESS/ EXPOSURE: SIZE (SITE AREA)/SHAPE: 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. Frontage (ft) Depth (ft) Site Area (sq. ft.) Site Area (acres) Shape 100± along Thomasson Drive 270± 27,443± 0.63± 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 The subject parcel is partially cleared and appears to be at or near the crown (TOPOGRAPHY, ELEVATION, of Thomasson Drive. Drainage on the subject property appears to be adequate ETC.): and is provided by open swales. MAXWELL HENDRY SIMMONS 34 ASSESSED VALUE, TAXES, AND ASSESSMENTS: Tax Year Market Taxable Value Taxes & Assess. Assessed Value 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. 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 ZONING: 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): httDS://librarv.municode.com/fl/collier countv/codes/land develODment cod e?nodeld=CH2ZODIUS 2.03.00ZODIPEUSACUS000S 2.03.070VZOD1 MAXWELL HENDRY SIMMONS 35 SITE CHARACTERISTICS — PARCEL B ADDREss/TAx ID: 2808 Thomasson Drive, Naples, Florida 34112 / Folio #52600120008 SIZE (SITE AREA)/SHAPE: 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. rontage (ft) Depth (ft) rea (sq. ft.) Site Area (acres) Shape 220± along Thomasson Drive 100± along Bayshore Drive 19,166± 0.44± Rectangular "�}"a •f i 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 The subject parcel is partially cleared and appears to be at or near the crown (TOPOGRAPHY, ELEVATION, of Thomasson Drive. Drainage on the subject property appears to be adequate ETC.): and is provided by open swales. MAXWELL HENDRY SIMMONS 36 ASSESSED VALUE, TAXES, AND ASSESSMENTS: Tax Year Market Taxable Value Taxes & Assess. Assessed Value 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. 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 ZONING: 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) httas://librarv.municode.com/fI/collier countv/codes/land develoament cod e?nodeld=CH2ZODIUS 2.03.00ZODIPEUSACUS000S 2.03.070VZOD1 MAXWELL HENDRY SIMMONS 37 SITE CHARACTERISTICS — PARCEL C ADDREss/TAx ID: 4825 Bayshore Drive, Naples, Florida 34112 / Folio #52600080009 LOCATION/ACCESS/ EXPOSURE: SIZE (SITE AREA)/SHAPE: 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. 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 The subject parcel is cleared, graded, and appears to be at or near the crown (TOPOGRAPHY, ELEVATION, of Bayshore Drive. Drainage on the subject property appears to be adequate ETC.): and is provided by open swales. MAXWELL HENDRY SIMMONS 38 ASSESSED VALUE, TAXES, AND ASSESSMENTS: ZONING: Tax Year Market Taxable Value Taxes & Assess. Assessed Value 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. 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) httas://Iibrarv.municode.com/fl/collier countv/codes/land develODment cod e?nodeld=CH2ZODIUS 2.03.00ZODIPEUSACUS000S 2.03.070VZODI MAXWELL HENDRY SIMMONS 39 IMPROVEMENT SKETCH - PARCEL B - RETAIL/WAREHOUSE BUILDING DOCK MAXWELL HENDRY SIMMONS 40 IMPROVEMENT SKETCH - PARCEL C - BOAT SALES/REPAIR BUILDING CPY 5 20 40 CPY 20 20 20% 1 /2+2+20 30% 400 CONC CQNC 30 16 CCNC 480 MAXWELL HENDRY SIMMONS 41 IMPROVEMENT CHARACTERISTICS - PARCEL B 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 GENERAL DESCRIPTION: 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. In total, the improvements for Parcel B consist of 7,520 square feet. This SIZE of BUILDING: 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. 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, EXTERIOR WALLS/ steel reinforced concrete slab over compact fill with concrete footings. FOUNDATION/ ROOF: 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'. The retail building is designed as a convenience store with a small restaurant/cafe 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 INTERIOR IMPROVEMENTS: 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, & The existing electrical, plumbing, and air conditioning systems (retail only) A/C SYSTEM: appear to be adequate and operational and are assumed to be up to code. MAXWELL HENDRY SIMMONS 42 In total, the retail building consists of 12 asphalt paved parking spaces with the SITE IMPROVEMENTS: asphalt considered to be in good condition. The tire store consists of a total of five marked spaces. PERSONAL PROPERTY, There are no items of personal property, trade fixtures, or intangible items TRADE FIXTURES, OR included in this opinion of value. INTANGIBLE ITEMS: 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, DEFERRED MAINTENANCE: a dead tree, a leak in the roof, or a faulty roof that must be completely replaced. These items are almost always curable. CONDITION/ESTIMATION OF EFFECTIVE AGE: 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. 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 Effective Age 30 Total Economic Life (TEL) 145 Remaining Economic Life (REL) Accrued Physical Incurable Depreciation 15 Year built - 1973 & 1981 per our observations per Marshall & Swift/ Core Logic Commercial Cost Service 67% per Effective Age/TEL FUNCTIONAL/ExTERNAL There is no functional or external obsolescence present. OBSOLESCENCE: MAXWELL HENDRY SIMMONS 43 IMPROVEMENT CHARACTERISTICS - PARCEL C 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 GENERAL DESCRIPTION: 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. The exterior walls consist of concrete block construction with an assumed eave EXTERIOR WALLS/ height of approximately 20'. It is assumed to consist of monolithically poured, FOUNDATION/ ROOF: 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, & The existing electrical, plumbing, and air conditioning systems are assumed to A/C SYSTEM: 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, There are no items of personal property, trade fixtures, or intangible items TRADE FIXTURES, OR included in this opinion of value. INTANGIBLE ITEMS: MAXWELL HENDRY SIMMONS 44 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 DEFERRED MAINTENANCE: 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. CONDITION/ESTIMATION OF EFFECTIVE AGE: Although the subject property was not inspected, it is assumed the building is in similar condition as the improvements on Parcel B. 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 Effective Age 30 Total Economic Life (TEL) 45 Remaining Economic Life 15 (REL) Accrued Physical Incurable 67% Depreciation Year built - 1981 per our observations per Marshall & Swift/ Core Logic Commercial Cost Service per Effective Age/TEL FUNCTIONAL/EXTERNAL There is no functional or external obsolescence present. OBSOLESCENCE: MAXWELL HENDRY SIMMONS 45 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. MAXWELL HENDRY SIMMONS 46 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-S-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: Leasing Units Survey 5-Year Avg Inventory In Units Survey 5-Year Avg Vacant Units 41 41 Existing Units 777 777 Vacancy Rate 5.3%a 51% 12 Mo. Const. Starts 0 0 12 Mo. Absorption Units -8 -8 Under Construction 0 0 12 Mo. Deliveries 0 0 Rents Survey 5-Year Avg Sales Past Year 5-Year Avg Studio Asking Rent - Sale Price Per Unit $91.521 $127.530 1 Bed Asking Rent $991 $1.004 Asking Price Per Unit $95,000 $95,000 2 Bed Asking Rent $1216 $1.177 Sales Volume (Mil.) $6.3 $8.5 3+ Bed Asking Rent 51.583 51.497 Cap Rate 5.5% 5.3% Concessions 0.7% 1.8% Parcel B is legally and physically suited for heavy commercial development purposes. This property is located within the C-S-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: MAXWELL HENDRY SIMMONS 47 Retail data: Availability Survey 5-Year Avg Inventory Survey 5-Year Avg NNN Rent Per SF $24.90 $15A3 Existing Buildings 67 66 Vacancy Rate 6.9% 16.4% Existing SF 667,707 662.697 Vacant SF 46.191 108.908 12 Mo. Const. Starts 3.500 6.000 Availability Rate 6.9% 18.5% Under Construction 3.500 3.438 Available SF 46.191 122.879 12 Mo. Deliveries 6.000 5.667 Sublet SF o 975 Months on Market 11.4 11.3 Demand Survey 5-Year Avg Sales Past Year 5-Year Avg 12 Mo. Absorption SF 9.364 27.735 Sale Price Per SF 5171 5217 12 Mo. Leasing SF 13.794 16.918 Asking Price Per SF $319 5262 Sales Volume (Mil.) $2.0 $3.5 Cap Rate - 7.4% Industrial Data: Availability Survey 5-Year Avg Inventory Survey 5-Year Avg Rent Per SF - 59.98 Existing Buildings 10 10 Vacancy Rate 12.9% 9.3% Existing SF 46.516 47.266 Vacant SF 6.000 4.397 12 Mo. Const. Starts 0 0 Availability Rate 12.9% 10.3% Under Construction 0 0 Available SF 6.000 4.867 12 Mo. Deliveries 0 0 Sublet SF 0 0 Months on Market - 13.9 Demand Survey 5-Year Avg Sales Past Year 5-Year Avg 12 Mo. Absorption SF 0 -3.627 Sale Price Per SF $142 5142 12 Mo. Leasing SF 0 800 Asking Price Per SF 5196 5196 Sales Volume (Mil.) 50.8 $D.2 Cap Rate 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. Maximallv 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. MAXWELL HENDRY SIMMONS 48 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. MAXWELL HENDRY SIMMONS 49 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 ADDroach 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 ADDroach 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. ADDroaches DeveloDed 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. MAXWELL HENDRY SIMMONS 50 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: MAXWELL HENDRY SIMMONS 51 Imue Point Avp a Chusapeeke Hyp Jcwd Bar Aw t 7c.4uhln Rd HARBOR hleeiln�r w tiY� ry � r a � _ n try r On Naples Bay 9 COMPARABLE LAND SALES MAP BhadavMlawn R' Elementary School rendy's C VJ C ,Jarkr.A a rhCP }K1+717A Orauper MF Sele 2 Donald's3 9 hlapl SF Collier Counter Sheriff's Office,,, 4 Collier Cty Government CenterColli c rt }oath po i n to At ndstar Marina MF Safe 3 Week$ Aye L7 # MF Sale 7 a G � # U 4 Walmart " EAST NAPLE w H.7y'�I��S 7r t7 Bealls Florida C Vot0 Ave [� u plgayuwbr $ ArecuAve f Pollo Tropical S- p TagLl e r i a San Julian Way U .' &LminodeAJ0 ea.rrlI Ave 47 EmMpiln9131YO as 3c �onlr A+r6 � MF Safe5 v VanHuranAvc aagt f Unda fir tuner `l e Awal (9 Moorhead Manor n hl�ddle5l s�,m 5t a 3 %n Botanical Placia Condominium 1 I .ikfi Aye p d 3 � � O � T"masson4r Naples MFSa3e 41 Avalon Botani sueJECY Elementary Sch Garden CanageGrove Ave Naples Botanical Garden Gift Shop Varanth East Naples Community E1eo" Pa rk pr;.,�Jlr W The Garden 0 14iq�iUm MAXWELL HENDRY SIMMONS 52 COMPARABLE LAND SALE 1 4001 DATE OF SALE: February 25, 2020 SALE PRICE: $230,000 SALE PRICE (ADJUSTED): $230,000 RECORDING: 5732/3619 GRANTOR: Susan E Astley and David A Astley GRANTEE: Richard H Grimes ADDRESS: 2898 Weeks Avenue STRAP #: 81270040000 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: RMF-6-BMUD-R1 LAND USE: Urban Mixed Use District/Bayshore/Gateway Triangle Redev Overlay FINANCING: Conventional financing for $184,000 SALE HISTORY: None in previous five years with Sierra Pacific Mortgage Company TOPOGRAPHY: Single family home ACCESS: Direct -Intersection VERIFICATION: Diane Sullivan, Realtor HIGHEST AND BEST USE: Residential/Commercial SITE AREA: 10,890 Square Feet UNIT OF VALUE: $21.12 Per SF 0.250 Acres $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. MAXWELL HENDRY SIMMONS 53 COMPARABLE LAND SALE 2 4002 DATE OF SALE: February 06, 2020 SALE PRICE: $110,000 SALE PRICE (ADJUSTED): $110,000 RECORDING: 5729/465 GRANTOR: Impact Companies, LLC GRANTEE: Michael J Austin and Judith C Austin FINANCING: Cash TOPOGRAPHY: Partially cleared ADDRESS: 2348 Jackson Avenue STRAP #: 51694000009 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: RMF-6 LAND USE: Urban Mixed Use District/Bayshore/Gateway Triangle Redev Overlay SALE HISTORY: 5/2015, $49,500 ACCESS: Direct VERIFICATION: D'Layne Graney, Coldwell Banker HIGHEST AND BEST USE: Residential SITE AREA: 9,583 Square Feet UNIT OF VALUE: $11.48 Per SF 0.220 Acres $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. MAXWELL HENDRY SIMMONS 54 DATE OF SALE: April 26, 2019 SALE PRICE: $84,000 SALE PRICE (ADJUSTED): $84,000 RECORDING: 5624/550 GRANTOR: KCD Holdings, LLC GRANTEE: Sagamore Naples FINANCING: Cash TOPOGRAPHY: Cleared VERIFICATION: Ani Gener, Agent SITE AREA: 10,019 Square Feet 0.230 Acres COMPARABLE LAND SALE 3 4003 ADDRESS: 2745 Arbutus Street STRAP #: 48730400000 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: RMF-6-BMUD-R1 LAND USE: Urban Mixed Use District/Bayshore/Gateway Triangle Redev Overlay SALE HISTORY: 1/2014, $32,000 ACCESS: Direct HIGHEST AND BEST USE: Residential 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. MAXWELL HENDRY SIMMONS 55 COMPARABLE LAND SALE 4 3594 DATE OF SALE: February 15, 2019 SALE PRICE: $1,000,000 SALE PRICE (ADJUSTED): $1,000,000 RECORDING: 5599/3164 GRANTOR: Thomasson PHX LLC GRANTEE: Thomasson Village, LLC FINANCING: Cash to seller TOPOGRAPHY: Cleared VERIFICATION: Alisha Cage/Naples Realty Services SITE AREA: 165,092 Square Feet 3.790 Acres ALLOWABLE UNITS: 20 ADDRESS: 3030-3060 Thomasson Drive STRAP #: 52600200009 + 4 additional parcels SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: RMF-6-BMUD-R-2 LAND USE: Bayshore/Gateway Triangle Redevelopment Overlay SALE HISTORY: 9/2015, $396,000 ACCESS: Direct HIGHEST AND BEST USE: Residential 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 MAXWELL HENDRY SIMMONS 56 COMPARABLE LAND SALE 5 4004 DATE OF SALE: February 06, 2020 SALE PRICE: $110,000 SALE PRICE (ADJUSTED): $110,000 RECORDING: 5484/299 GRANTOR: Eddyth H Buckingham GRANTEE: Lincoln Park Consulting, LLC FINANCING: Cash TOPOGRAPHY: Single family home VERIFICATION: Arlys Krauel SITE AREA: 13,939 Square Feet 0.320 Acres ADDRESS: 2635 Van Buren Avenue STRAP #: 29281000004 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: RMF-6-BMUD-R1 LAND USE: Urban Mixed Use District/Bayshore/Gateway Triangle Redev Overlay SALE HISTORY: None in previous five years ACCESS: Direct HIGHEST AND BEST USE: Residential 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. MAXWELL HENDRY SIMMONS 57 Comparable Land Sales Chart - Parcel A The comparable sales and our analysis thereof for Parcel A are summarized in the following chart: Data of Sale: Feb-20 Feb-20 Apr-19 Feb-19 Mar-18 Sale Price $230,000 $110,000 $139,000 ysical Data: Street Address:*partially 60000 2898 Weeks Ave. 2348 Jackson Ave. 2745 Arbutus Street 3030-3060 Thomasson Drive�265 Van Buren Ave City: Naples Naples Naples Site Area-sq.ft. 10,890 9,583 10,019 165,092 13,939 Site Area -acres 0.25 Topographyed partially cleared partially cleared cleared cleared partially cleared Shape rectangular rectangulUtilities: full full full full full e Data: Zoning: RMF-6-BMUD-R2 RMF-6-BMUC-R2 RMF-6-BMUC-R2 1111JF RMF-6-BMUD-R1 RMF-6-13MUD-R1 Highest and Best Use: residential, multifamily residential, multifamily residential, multifamily residential, multifamily residential, multifamily residential, multifamily Price per Square Foot (site): 1 $21.12 $11.48 1 $8.38 1 $6.06 1 $9.97 insactional Adiustments: Financing Terms: 0.0% (Per Square $21.12 $9.97 $8.38 0.0% Conditions of Sale: 0.0% 0.0% 0.0% 0.0% (Per Square Foot): $21.12 $8.38 $9.97 Expenditures After Purchase: 0.0% 0.0% 1 0.0% 0.0% 0.0% (Per Square $21.12 ir $8.38 $9.97 Market Conditions (time): 0.21/. 0.2% 5.3% 6.3% 11.9% (Adjusted Price per SF): $21.15 Location: -10% Exposure (Frontage): 0% 0% 0% 0% Access: % Size (Site Area): -10% -10% 20% -10`. Topography/Improve :0% Shape: 0% 0% 0% 0% Utilities: 0% Zoning/Land Use: 0% 0% 0% 0% Net Adjustments :30 % 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 Bays h o re/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. MAXWELL HENDRY SIMMONS 58 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: 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 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 MAXWELL HENDRY SIMMONS 59 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 MAXWELL HENDRY SIMMONS 60 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 beingthe 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: MAXWELL HENDRY SIMMONS 61 COMPARABLE IMPROVED SALES MAP Tin City Waterfront Shops Sale 3 ROYAL HARBOR star On Naples Bay 10 Sale 4 �r C��etlrs'�iYd � Collier Gty Government Center Q EAST IAA PL ES C6 9 L Nipple Thomasson Rh Bo Sll�J EST Sugden Regional Park $ale 2 I tsn ake K t7x � �a The IslesofCollier Preserve Sales Center MAXWELL HENDRY SIMMONS 62 COMPARABLE IMPROVED SALE 1 3838 DATE OF SALE: August 22, 2019 SALE PRICE: $787,500 ADJUSTED PRICE: $787,500 RECORDING: 5667/140 GRANTOR: Port Royal Partners, LLC GRANTEE: Richard Floyd Wear PROPERTY RIGHTS: Fee Simple ADDRESS: 3209 Van Buren Avenue, Naples STRAP #: 52700960207 ZONING: C-5-BMUD-NC-Bayshore/Gateway Triangle Redevelopment Overlay FUTURE LAND USE: Urban Mixed Use District/Urban Coastal Fringe Subdistrict SITE AREA: 17,400 Sq. Ft. NET BUILDING AREA: 6,000 Sq. Ft. GROSS BUILDING AREA: 6,000 Sq. Ft. FINANCING: Conventional mortgage for $630,000 LAND TO BUILDING RATIO: 2.90:1 with Silver Hill Funding CONDITIONS OF SALE: Arm's Length YEAR BUILT: 1990 SALE HISTORY: None in previous five years CONDITION: Average PROPERTYTYPE: Industrial Warehouse HIGHEST AND BEST USE: As Improved, Industrial building VERIFICATION: Bill Mankin/Colliers International VERIFIED BY: Gerald A. Hendry Southwest Florida 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. MAXWELL HENDRY SIMMONS 63 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 MAXWELL HENDRY SIMMONS 64 COMPARABLE IMPROVED SALE 2 3837 DATE OF SALE: April 16, 2019 SALE PRICE: $495,000 ADJUSTED PRICE: $495,000 RECORDING: 5623/1102 GRANTOR: Sheila Ronald, Trustee GRANTEE: Dominga Flowers of Naples, LLC PROPERTY RIGHTS: Fee Simple FINANCING: Private financing for $315,000 CONDITIONS OF SALE: Arm's Length SALE HISTORY: None in previous five years ADDRESS: 4896 Rattlesnake Hammock Road, Naples STRAP #: 63104200002 ZONING: C-4 FUTURE LAND USE: Commercial District/Mixed Use Activity Center Subdistrict SITE AREA: 18,295 Sq. Ft. NET BUILDING AREA: 2,640 Sq. Ft. GROSS BUILDING AREA: 2,640 Sq. Ft. LAND TO BUILDING RATIO: 6.93:1 YEAR BUILT: 1970 CONDITION: Average PROPERTY TYPE: Commercial Retail, Free -Standing HIGHESTAND 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. MAXWELL HENDRY SIMMONS 65 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 MAXWELL HENDRY SIMMONS 66 COMPARABLE IMPROVED SALE 3 3839 i_17 Off i - —�.- 'w DATE OF SALE: December 19, 2019 SALE PRICE: $550,000 ADJUSTED PRICE: $550,000 RECORDING: 5709/385 GRANTOR: Lanelle Bishop, Trustee GRANTEE: 2400 Davis Blvd LLC PROPERTY RIGHTS: Fee Simple FINANCING: Conventional mortgage with First Florida Integrity Bank for $412,500 CONDITIONS OF SALE: Arm's Length SALE HISTORY: None in previous five years PROPERTY TYPE: Commercial Retail, Free -Standing VERIFICATION: Michael Whalen, representative of Grantee ADDRESS: 2400 Davis Boulevard, Naples STRAP #: 22720440009 ZONING: C-5-GTMUD-MXD-Bayshore Mixed Use District Overlay FUTURE LAND USE: Urban Mixed Use District/ Bays h ore/Gateway Triangle Redevelopment Overlay SITE AREA: 6,098 Sq. Ft. NET BUILDING AREA: 2,952 Sq. Ft. GROSS BUILDING AREA: 2,952 Sq. Ft. LAND TO BUILDING RATIO: 2.07:1 YEAR BUILT: 1957 CONDITION: Average HIGHEST AND BEST USE: As Improved, retail building 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. MAXWELL HENDRY SIMMONS 67 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 MAXWELL HENDRY SIMMONS 68 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 SITE AREA: 37,897 Sq. Ft. District Council, Inc. 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. MAXWELL HENDRY SIMMONS 69 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 MAXWELL HENDRY SIMMONS 70 COMPARABLE IMPROVED SALE 5 3198 DATE OF SALE: May 31, 2017 SALE PRICE: $540,000 ADJUSTED PRICE: $540,000 RECORDING: 5401/2519 GRANTOR: Allan and Susan Crum GRANTEE: Jean B. Zehnder Revocable Trust PROPERTY RIGHTS: Fee Simple FINANCING: Cash to Seller CONDITIONS OF SALE: Arm's Length SALE HISTORY: None in Prior 3 Years PROPERTY TYPE: Commercial Flex VERIFICATION: Broker ADDRESS: 4097 Bayshore Drive, Naples STRAP #: 53353600007 & 53353560008 ZONING: C-4 FUTURE LAND USE: Bayshore/Gateway Triangle Redevelopment Overlay SITE AREA: 15,965 Sq. Ft. NET BUILDING AREA: 2,400 Sq. Ft. GROSS BUILDING AREA: 2,400 Sq. Ft. LAND TO BUILDING RATIO: 6.65:1 YEAR BUILT: 1975 CONDITION: Average HIGHEST AND BEST USE: Retail/Flex 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. MAXWELL HENDRY SIMMONS 71 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 MAXWELL HENDRY SIMMONS 72 Sale Price Per Square Foot Analysis - Parcel B The comparable sales and our analysis thereof are summarized in the following chart: unsaction 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 ysical Data: Location: 2808 Thomasson 3209 Van Buren Ave.LNapZs4 attlesnake 2400 Davis Blvd. 3196 Davis Blvd. 4097 Bayshore Drive Drive mo spies Gross Sq. Ft. (Site): 19,166 17,300,2956,098 37,897 15,965 90970Building Size: 7,520 6,000 2,6402,952 11,610 2,400 ■i/Building atio .93 Zoning C-S-BMUD- NC C-S-BMUD-NC C-4C-S-GTMUD-MXD I C-S-GTMUD-MXD C-4-BMUC-NC Price per Square Foot (Net): Transactional Adlustments: 0.0% 0.0% 0.0% 0.0% 0.0% FinancingTerms: (Per Square Foot): $187.5 $225.00 Conditions of Sale: 0.0% 0.0% 0.0% 0.0% tM 0.0% (Per Square Foot): $131.25 87.50 $186.31 $225.00 Expenditures After Purchase: 0.0% 0.0% 0.0% 0.0% 0.0% (Per Square Foot): $131.25 $187. $186.31 $225.00 Market Conditions (time): 3.0% 5.5% 11.0% 12.5% 17.0% (Adjusted Price per SF) 135.19 206.81 $147.77 263.2'. Physical Adlustments: 10% 0% 1 -10% -10% 0% Location: Exposure 10% (Front Access: 0% 0% 0% 0% 0% Quality/Appeal: Condition/Effective Age: -8% 0% -8% 0% -23% Building Size (Ne -� Land/Building Ratio: 0% -15% 0% 0% -15% Net Adiustm - 5% -� $155.16 $164.53 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. MAXWELL HENDRY SIMMONS 73 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. MAXWELL HENDRY SIMMONS 74 Value Conclusion These sales range in adjusted price 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 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: Net Area (sf) Value per Sq. Ft. Opinion of Value Rounded to 7,520 $160.00 $1,203,200 $1,205,000 MAXWELL HENDRY SIMMONS 75 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: MAXWELL HENDRY SIMMONS 76 COMPARABLE RENTALS MAP fclid,r �n �' • � ecnrncel Rumba Cuban Cafe College s bakes Farms Markel Walgreens R- t ' ' a 8d n� The Horne Depot Har, liver n, Publix Super Ma "A- nrkv,.:rin.k Eli at Kings Lake Squ _ Conn.riiu Are Chipp—tWa r1r r St Matthews House s R.-Mir Coral Cay aLandm7 k Pr Y Adventure Golf R-� rl�ixAvc GiadesBlvd Shadowlawn 3 `? mentor School 0 C?' ZR La w � Sax hre N Rd R B d R Mdrill, J. e y o kew v s Wendy's s Jacksar. Ave O `t t �ra�rm Mcaonads _ ' o_ Collier County Naples Main Office F { „ Sheriff's Office,,, dhYi, 4 2 o Collier Cty n J - n F i o Government Center., Collier Museum at p IVLVH Office R' Government Center i+J "J J a o _ Walmari ieryl R� r a m C Q EAST NAPLES n HaVr— C.— Ay ' � 3 Rr+ernewor `_ `G` - Area Ave •i- Taqueria San Julian � �rlm way 9.vrere.Lve m c Monn A+re o i4 vo Hu —Axe pares unea Dr Lanor Sr Naples Bay 1 g Moorhoad Manor a Wdaka Snunl'+f M Botanical Place Condominium I.ik: Ave 1:6a issnn Or Naples Botani Gard SUBJECT Collage Grove Aw hl.enlr.r• An+ti n:�+nl �� 4 Bealls Florida 4 G Lake Polio Tropical Goodwill Retail & Donation Center Seminolle AA- a1� r Ench 01K Blvd �• �B&B. Naples 4 Towne Centre 6 2v' Guil'ctSV'� - A-10"` Taco Bell Unshine Ace Sugden iardware - East Regional Park R-4 1p fir. � pale Ave Cindy Ave 0 2 9 Mohawk PI S } a Mindl Ave - 7 Rosy A.vu e a Avalon Elemnntary School `sdo � r �T The 0 MAXWELL HENDRY SIMMONS 77 COMPARABLE RENTAL 1 3208 yn Ail. }' 4 -4 if 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. MAXWELL HENDRY SIMMONS 78 COMPARABLE RENTAL 2 3209 4 ADDRESS: 2495 Linwood Avenue, Naples, FI 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. MAXWELL HENDRY SIMMONS 79 COMPARABLE RENTAL 3 3210 iO4L F ra'1TtMEl[ 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. MAXWELL HENDRY SIMMONS 80 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. MAXWELL HENDRY SIMMONS 81 COMPARABLE RENTAL 5 3212 •s 3 AMR— .' 1 7. ADDRESS: 2448 Kirkwood Avenue, Naples, FI 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. MAXWELL HENDRY SIMMONS 82 Direct Capitalization Method The Direct Capitalization Method is defined by The Appraisal of Real Estate, 141" 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: • 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 Average 12.25 2.56 $14.81 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. MAXWELL HENDRY SIMMONS 83 Vacancy and Collection Loss/Effective Gross Income The subject property type would typically be leased on a 3 to 5 year basis. Atypical 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 VACANCY RATE 30 % 25% 20% 15% 10% 5% 0% f 10 11 12 13 14 15 16 17 18 19 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. MAXWELL HENDRY SIMMONS 84 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. MAXWELL HENDRY SIMMONS 85 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%: RE RC REGIONAL INVESTMENT CRITERIA-4020191 SOUTH INVESTMENT CRITERIA Range 7-0-8.5 10-9-0 &S-9.5 7.0-9-0 7-5-l0.0 7.11-11-0 6.8-91 7-0-11.13 6-0-9.0 6-0-910 0-12.0 Average 7.8 8.1 7.8 8.5 &5 &1 &1 8.1 6.9 7.6 9,0 Runge 5.0 7,0 6,0.7-5 5.B-8.0 CIA .8.a 6-0.9.9 5,0.%0 5.5.8-0 5,8.9.0 4.0.1.0 5.0.7,0 5.0.10.5 Average 6-4 6-9 6.6 7-0 1.2 73 6.9 6.9 5.4 5-6 1.8 Range 'r.8-85 6-8-8-3 5.3-8.5 6.8-8.5 6-8-10-0 6.0-10.0 6.0-8-5 6.0-I. 4-3-7.5 5-8-9-0 8-0-11-0 Average 1-0 7-4 7.0 15 7A 7.5 7.3 7-4 5.B 6-8 8.5 Range 7.5.1%6 &0.10.5 7.5.10.5 8.0. 10-5 7.0. 1l.0 7.0. 10.5 7.0.12-5 7,3. 12-0 U-9.0 8-5. 9.5 8.0. 13.0 Average 0-5 9-0 0.4 8.9 8.9 &4 8.6 8.6 1.5 0-0 9-7 Range 8.0. 0.8 7.0. 9.0 5.5.9.5 10.15 7,0.9.5 6.0. %5 0-0.10.5 6.3.10-0 4-5. 7.5 5.8. 8-0 8-e • 11-5 Average 1.3 1-6 7A 7-6 17 7.4 1A 7A 5.2 6-5 9-5 Range 8-3-9.2 1-3-9-3 &0-10-0 13-10.0 713-10.13 6.8-10.13 6.5-11-0 6.5-10-5 5-8-&D 8-3-9-5 7-0-12-0 Average 7.8 8.1 7-7 8.2 &2 7-9 8.0 7.9 6.8 7.5 8-9 Range 7.B • 11-0 9-0.11.0 8.5.12-0 10.12-0 9.0.12.0 7.0.12.0 7.0.13.0 7-5.12.5 7-5.10.0 7-5.10-0 8.0. 13.5 Average 9.1 9-6 9.3 9.8 9A &8 9.2 9.3 8.6 8-7 10.2 Range 7.0-100 7.0-10.0 6.0-11.a a-11.0 n-13.0 6.5-11.9 6.6-11.0 6.5-110 5-5-9.0 6-0-9.5 10-12-0 Average 8-0 &3 8.0 8.5 &5 8-0 &2 8.2 7.1 7.4 9-4 Range 7.8.10-5 8d1.10.5 6.5.11.5 6,0.11.5 8-0.11.5 7,0.11.5 7-0.11.5 7.0.115 6.3.9.5 6,5.10.0 8.0.12.5 Average 8-5 8.9 8.3 9-e 8.9 8.6 &8 8.8 7.8 8-1 18 'Frs•rw inresv tpmpcire am defiwd as new a per quwh0 w wumm n pr me w goad krarms r8ew kw rwa wN wwanp aredefned as agng, former m-na propml n gopd%swage leeatw . �Third•1er m esrewar propeaies are defnef as older prapmres widh funaianal nadequxies mdhr ra marginal bcarims A list of sRn mdefned regima is araibNR upon "po SommRERC.402019 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% MAXWELL HENDRY SIMMONS 86 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: DIRECT CAPITALIZATION APPROACH POTENTIAL GROSS INCOME (PGI) Base Rent 7,520 sf x CAM Passthrough 7,520 sf x Total PGI LESS VACANCY & COLLECTION LOSS PLUS OTHER INCOME EFFECTIVE GROSS INCOME (EGI) LESS: OPERATING EXPENSES Fixed Expenses Real Estate Taxes Insurance Total Variable Expenses Management @ 4.0% Maintenance & Repairs Tenant Improvements Utilities Janitorial Lease Commissions Miscellaneous Total Allowance for Replacement 1.0% Total 19% NET OPERATING INCOME (N01) VALUE CONCLUSION: $15.00 per sf = $ 112,800 $0.00 per sf = - $ 112,800 5.0 % 5,640 $107,160 $ 4,462 5,640 $ 10,102 $ 4,286 4,888 500 $ 9,674 $1,072 20,848 $ 86,312 N01 / OVERALL RATE = VALUE $ 86,312 / 7.50% $1,150,827 E BY DIRECT CAPITALIZATION APPROACH $1,150,000 MAXWELL HENDRY SIMMONS 87 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 Bays h o re/Gateway Triangle Overlay District which can be shown as follows: MAXWELL HENDRY SIMMONS 88 COMPARABLE LAND SALES MAP -` Shadowlawn 2' 3 3 Elementary School BWr Point AY9 � Ei `4 rl u [hosapsakB A+u �E2 Wendy 5 o - tk� %%h44jzlCkr... J.-I M. me r A4 e U C, j x r—perOr Qhee.iue2+ '-- -- Naples Main Office i Mcl)onald's v Collier County _ Sheriff's Office... $h^ytn JclVhm RJ :2 o -q m a Collier Ctyrnment B 0 R, j3ovp Center ,� Collier Museum-at.rILYHOffice6 Govern mentCent&HAR 4 w�� raun jn v t a > sale o S Teryl Rc Walmart {ry 5T NAPLES Sale 2 g Bealls Florida Sale 5 L' 3 j�IYp41P'If �r ArecaAve _ '� Goo dw - F P0II0 Tropical Taqueria San .Julian 4 Donati r SeminadexA 9art nA,, m Errchanlllq 610 a' 'horin A- O n jly—A- S] p r;ud'tr+5� star On Naples Bay r- pang Lultln n lunar S1 $ale 7 nralo^4r Taco Bc Sugden Moorhead Manbr Wntlsl a Regional Park a YArdaleU suum gr Sn Botanical Place Condominium Tlwmasson Dr Napless Botani SUB ECT Garden ron�g croveAne a [J�r,lao Rnion�ral �� 4 , Dale Ave 4 Cindy A Mahs 33 n K Mir e z Y R Availon Elementary School o,9 0. d MAXWELL HENDRY SIMMONS 89 COMPARABLE LAND SALE 1 3999 DATE OF SALE: November 11, 2019 SALE PRICE: $429,000 SALE PRICE (ADJUSTED): $429,000 RECORDING: 5694/3132 GRANTOR: Kaushik J Sanghvi and Hina K Sanghvi GRANTEE: Pelican Marine, LLC FINANCING: Cash TOPOGRAPHY: Mostly cleared VERIFICATION: Roland Hauber, Permier Plus SITE AREA: 22,216 Square Feet 0.510 Acres ADDRESS: Bayshore Drive STRAP #: 53353320002,53353360004, 53353400003 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: C-4-13MUD-NC LAND USE: Urban Mixed Use District/Bayshore/Gateway Triangle Redev Overlay SALE HISTORY: None in previous five years ACCESS: Direct HIGHEST AND BEST USE: Commercial 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. MAXWELL HENDRY SIMMONS 90 COMPARABLE LAND SALE 2 4000 DATE OF SALE: March 21, 2019 SALE PRICE: $430,000 SALE PRICE (ADJUSTED): $430,000 RECORDING: 5611/2265 ADDRESS: 3181 Bayshore Drive STRAP #: 71780240009 SALE CONDITIONS: Arm's Length 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 VERIFICATION: Christina Walsh, Domain Realty ACCESS: Direct -Intersection HIGHEST AND BEST USE: Commercial SITE AREA: 24,829 Square Feet UNIT OF VALUE: $17.32 Per SF 0.570 Acres $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. MAXWELL HENDRY SIMMONS 91 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 LAND USE: Urban Mixed Use GRANTEE: Maddox & Partners, LLC 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 UNIT OF VALUE: $14.15 Per SF 1.460 Acres $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. MAXWELL HENDRY SIMMONS 92 COMPARABLE LAND SALE 4 3894 DATE OF SALE: January 29, 2019 SALE PRICE: $1,650,000 SALE PRICE (ADJUSTED): $1,650,000 RECORDING: 5595/555 & 5596/2618 GRANTOR: Parma, LLC & Edda Cantoni GRANTEE: Right Time Management, LLC FINANCING: Cash to seller TOPOGRAPHY: Cleared, Generally Level VERIFICATION: CoStar SITE AREA: 68,781 Square Feet 1.579 Acres ADDRESS: Bayshore Drive STRAP #: 61841600006, 71580260001, 71580250008 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: C-4 (BMUD-NC), Commercial General LAND USE: Urban Residential Sub -District SALE HISTORY: None in prior three years ACCESS: Direct HIGHEST AND BEST USE: Commercial Development 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 MAXWELL HENDRY SIMMONS 93 COMPARABLE LAND SALE 5 3997 DATE OF SALE: August 17, 2018 SALE PRICE: $375,000 SALE PRICE (ADJUSTED): $375,000 RECORDING: 5544/1092 GRANTOR: John H Smith GRANTEE: Collier County Community Redevelopment Agency FINANCING: Cash TOPOGRAPHY: Cleared VERIFICATION: Dougall McCorkle, Premier Commercial ADDRESS: 3321 Bayshore Drive STRAP #: 71780880003 SALE CONDITIONS: Arm's Length UTILITIES: Full ZONING: C-4-BMUD-NC LAND USE: Urban Mixed Use District/Bayshore/Gateway Triangle Redev Overlay SALE HISTORY: None in previous five years ACCESS: Direct -Intersection HIGHEST AND BEST USE: Commercial SITE AREA: 20,909 Square Feet UNIT OF VALUE: $17.94 Per SF 0.480 Acres $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. MAXWELL HENDRY SIMMONS 94 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 MAXWELL HENDRY SIMMONS 95 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 MAXWELL HENDRY SIMMONS 96 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: Site Area (sf) Value per Sq.Ft. Opinion of Value 33,541 $19.00 $637,283 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: Contributory Value of Improvements 800 sq.ft. @ $50 psf* $40,000 *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 TOTAL $677,283 ROUNDED TO $675,000 MAXWELL HENDRY SIMMONS 97 SEC. VI I: 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 Drivel 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. MAXWELL HENDRY SIMMONS 98 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. MAXWELL HENDRY SIMMONS 99 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 marketingtime 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. MAXWELL HENDRY SIMMONS 100 SEC. VI11: 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, regardingthe 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. MAXWELL HENDRY SIMMONS 101 ➢ 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 MAXWELL HENDRY SIMMONS 102 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 Cl 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 Cl 102 - Market Analysis for Commercial Investment Real Estate, May 2006. CCIM Cl 103 - User Decision Analysis for Commercial Real Estate, September 2006. CCIM Cl 104 - Investment Analysis for Commercial Real Estate, August 2006. MAXWELL HENDRY SIMMONS 103 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 201h 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 MAXWELL HENDRY SIMMONS 104 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. pFt RICK SCOTT, GOVERNOR JONATHAN ZACHEM, SECRETARY � dbpr N SOD Wk TT" STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES HENDRY, GERALD A `� 12600 WORLD PLAZA LANE ;, 6 BUILDING 63 FORT MYERS FL 33907 ICENSE NUMBER: RZ2245 EXPIRATION DATE: NOVEMBER 30, 2020 Always verify licenses online at MyLloridaLicense. com a, Do not alter this document in any form. This is your license. It is unlawful for anyone other than the licensee to use this document. MAXWELL HENDRY SIMMONS 105 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 (MILS), 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. MAXWELL HENDRY SIMMONS 106 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 thatthe 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, watertreatment, 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 forthe 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. MAXWELL HENDRY SIMMONS 107 14.B.1.c 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, THEREFORE, and for and in consideration of the premises and the respective undertakings of the parties hereinafter set forth and the sum of Ten Dollars ($10.00), the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows.. AGREEMENT 1.01 In 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". This Agreement is contingent on Purchaser closing on 5.27 acres of property also owned by Purchaser and located at 1936 Davis Blvd. (Folio No. 77510240008), 1933 Tamiami Trail East (Folio No. 77510200006), 1965 Tamiami Trail East (Folio No. 00388480009), 1991 Tamiami Trail East (Folio No. 00388440007), 2000 Davis Blvd. (Folio No. 77510280000), 2054 Davis Blvd. (Folio No 77510320009), Naples, FL 34112 as set forth in the Real Estate Purchasing Agreement between Purchaser and Real Estate Partners International, LLC., effective May 9, 2016, as amended or otherwise superseded. II. PAYMENT OF PURCHASE PRICE 2.01 The purchase price (the "Purchase Price") for the Property shall be Two Million, one hundred eighteen thousand Dollars ($2,118,000) U.S. Currency payable at time of closing. Page 1 of 14 Packet Pg. 135 14.B.1.c III. CLOSING 3.01 The Closing (THE "CLOSING DATE", "DATE OF CLOSING", OR "CLOSING") of the transaction is contingent on Purchaser closing of the properties listed in paragraph 1.01 and 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, 3.011 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 title 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. 3.0112 Combined Purchaser -Seller closing statement. 3.0113 A "Gap." Tax Proration, Owner's and Non -Foreign Affidavit," as required by Section 1445 of the Internal Revenue Code and as required by the title insurance underwriter in order to insure the "gap" and issue the policy contemplated by the title insurance commitment. 3.0114 W-9 Form, "Request for Taxpayer Identification and Certification" as required by the Internal Revenue Service. 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 Title 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 4.011 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. Page 2 of 10 `.J Packet Pg. 136 14.B.1.c 3.0122 Funds payable to the Seller representing the cash payment due at Closing in accordance with Article III 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 Warranty Deed: in accordance with Chapter 201.01, Florida Statutes, and the cost of recording any instruments necessary to clear Seller's title to the Property. The cost of the Owner's Form B Title 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. 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. If 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. REQUIREMENTS 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 Insurance 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. If 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 If 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 title, 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. In 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. Page 3 of 10 Eva) Packet Pg. 137 14.B.1.c 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 PERIOD 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, VI. INSPECTION PERIOD 6.01 Purchaser shall have one hundred and twenty (120) days from the date of this Agreement, ("Inspection Period"), to determine through appropriate investigation that: 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 is in compliance with all applicable State and Federal environmental laws and the Property is free from any pollution or contamination. 4. The Property can be utilized for its intended purpose. 6.02 If 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 Inspection Period, written notice of its intention to waive the applicable contingencies or to terminate this Agreement. If Purchaser fails to notify the Seller in writing of its specific objections as provided herein within the Inspection Period, it shall be deemed that the Purchaser is satisfied with the results of its investigations and the contingencies of this Article VI shall be deemed waived. In the event Purchaser elects to terminate this Agreement because of the right of inspection, Purchaser shall deliver to Seiler 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. Page 4 of 10 Packet Pg. 138 14.B.1.c 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. Vill. POSSESSION 8.01 Purchaser shall be entitled to full possession of the Property at Closing. IX. PRORATIONS 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 Se#ler. X. TERMINATION AND REMEDIES 10 01 If 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. 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 its 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 11.01 Seller and Purchaser represent and warrant the following: 11.011 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 proceeding. 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 Page 5 of 10 �f` Packet Pg. 139 14.B.1.c 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. 11.013 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. 11.014 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 Seller'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 hash no knowledge that any pollutants are or have been discharged from the Property, directly or indirectly 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. Page 6 of 10 r) Packet Pg. 140 14.B.1.c 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 of any 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. 11.019 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 arbitration, 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. 11.022 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 indirectly, pursuant to or in connection with the application of any federal, state, local or Page 7 of 10 Packet Pg. 141 14.B.1.c 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 9601, 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. 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. XII. NOTICES 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: If to Purchaser: Real Property Management Department 3335 Tamiami Trail East - Suite 101 Naples, Florida 34112 With a copy to: Jeff A. Klatzkow, County Attorney Office of the County Attorney Administration Building 3299 Tamiami Trail East Naples, Florida 34112 If to Seller: Theresa Ackerman 770 215t St. NW Naples, FL 34120 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 representative, in connection with 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 Page 8 of 10 Packet Pg. 142 14.B.1.c 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 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 If any date specified in this Agreement falls on a Saturday, Sunday or legal holiday, then the date to which such reference is made shad 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 If 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. (If 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.) 14.10 This Agreement is governed and construed in accordance with the laws of the State of Florida. Page 9 of 10 Packet Pg. 143 14.B.1.c 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. XV ENTIRE AGREEMENT 15.01 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. a L IN WITNESS WHEREOF, the parties hereto have signed below. i Project/Acquisition Approved by BCC: N AS TO PURCHASER: c M DATED: M N ATTEST: BOARD OF COUNTY COMMISSIONERS a) CRYSTAL K KINZEL Clerk COLLIER COUNTY, FLORIDA N L BY: a Deputy Clerk Burt L. Saunders, Chairman c AS TO SELLER: DATED: v c WITN SES: (Signature) Printed Name) (Signature) f' C1 V I -P Cock... (Printed Name) Approved as to form and legality: B Theresa Ackerman Jennifer A Belpedio Assistant County Attorney �cY 10 ie Packet Pg. 144 14.B.1.c Exhibit "A" LOTS 1 AND 2. JONESVILLE, ACCORDING TO THE PLAT RECORDE❑ IN PLAT BOOK 4. PAGE 41, PUBLIC RECORDS OF COLLIER COUNTY, FLORIDA. LOT 3, JONESVILLE, ACCORDING TO THE PLAT RECORDED IN PLAT BOOK 4, PAGE 41: PUBLIC RECORDS OF COLLIER COUNTY, FLORIDA. ■ 9 LOT 4, JONESVILLE, ACCORDING TO THE PLAT RECORDED IN PLAT BOOK 4, PAGE 41, PUBLIC RECORDS OF COLLIER COUNTY, FLORIDA. Packet Pg. 145 RKL APPRAISAL AND CON SU L i I S G REAL ESTATE APPRAISAL REPORT DEL'S CORNER Commercial 2808 Thomasson Drive and 4825 Bayshore Drive Naples, Collier County, Florida, 34112 ACHE L M. 2L1CCH I, MAI, CC1M C. 10WRY, MAI. CPA ours C. BoaBITT, MAI 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 4500 Executive Drive, Suite 300 Naples, FL 34119-8908 Phone: 239-596-0800 www.rklac.com Dells Corner 2808 Thomasson Drive and 4825 Bayshore Drive Naples, Florida RKL APPRAISAL AND CONSULTING 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. kCH.ELM. ZUCCH I, MAI, CC1M 4500 Executive Drive, Suite 300 LOWRY, MAI. CPA Naples, FL 34119-8908 Phone: 239-596-0800 ❑UIS C. BABBITT, MAI www.rklac.com 1 Mr. Roosevelt Leonard Collier County March 5, 2020 Page 2 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, Fee Simple February 11, 2020 $1,830,000 As Is, Improved Property Market Value, Fee Simple February 11, 2020 $280,000 As Is, Vacant Land 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 K. C. Lowry, MAI, CPA Florida State -Certified General Real Estate Appraiser RZ #2984 Florida State -Certified General Real Estate Appraiser RZ #2355 rzucchi@rklac.com; Phone 239-596-0800 Ext. 203 klowry@rklac.com; Phone 239-596-0800 Ext. 202 kCH.ELM. ZUCCH I, MAI, CCIM 4500 Executive Drive, Suite 300 LOWRY, MAI. CPA Naples, FL 34119-8908 Phone: 239-596-0800 ❑UIS C. BOBB ITT, MAI www.rklac.com 1 DEL'S CORNER TABLE OF CONTENTS TABLE OF CONTENTS Summary of Important Facts and Conclusions................................................................... 1 IntroductionInformation..................................................................................................... 3 SubjectIdentification...................................................................................................... 3 Current Ownership and Property History....................................................................... 3 AppraisalScope.............................................................................................................. 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 Scopeof Work................................................................................................................ 5 EconomicAnalysis............................................................................................................. 7 NationalEconomic Analysis........................................................................................... 7 Florida Economic Analysis............................................................................................. 8 Collier County Area Analysis....................................................................................... 10 MarketArea Analysis................................................................................................... 22 Retail Market Analysis................................................................................................. 26 Industrial Market Analysis............................................................................................ 30 Property Description and Analysis................................................................................... 32 SiteAnalysis................................................................................................................. 32 ImprovementsAnalysis................................................................................................ 43 Real Estate Taxes and Assessments.............................................................................. 57 Highestand Best Use.................................................................................................... 59 ValuationMethodology.................................................................................................... 62 AnalysesApplied.......................................................................................................... 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 .......................... Financials and Property Information....... Comparable Data ..................................... P Addendum A Addendum B Addendum C DEL'S CORNER SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS 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 Year Built: 1973 Gross Building Area (GBA): 3,600 Gross Leasable Area (GLA): 3,600 Property Totals: GBA GLA 8,320 8,320 Zoning: C-5 -BMUD - NC C-3 -BMUD - NC RMF-6 - BMUD - R2 Building 2 Building 3 1981 1992 3,920 800 3,920 800 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 As Is, Vacant Property 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 As Is, Vacant Property Land Value Conclusion(s) $1,830,000 $280,000 Effective Date(s) February 11, 2020 February 11, 2020 Property Rights Fee Simple Fee Simple Page 1 DEL'S CORNER SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS 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. Page 2 DEL'S CORNER INTRODUCTION INFORMATION 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; Page 3 DEL'S CORNER INTRODUCTION INFORMATION • 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 Page 4 DEL'S CORNER INTRODUCTION INFORMATION $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 A complete analysis of market conditions has been made. Market Conditions: 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. Page 5 DEL'S CORNER INTRODUCTION INFORMATION 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. Page 6 DEL'S CORNER NATIONAL ECONOMIC ANALYSIS 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. Change in real GDP 22 2.0 1.9 1.2 1.9 2.1-22 2.0-22 1.8-2.0 1.8-2.0 1.8-2.0 2.1-23 1.8-23 1.7-22 1.5-22 17-22 September projection) 2.2 2.0 1.9 12 1.9 2.1-2.3 1.8-2.1 1.0-2.0 1.7-2.0 1.0-2.0 2.1-2.4 1.7-2.3 1.7-2.1 1.6-2.1 1.7-2.1 Unemployment rate 3.6 3.5 3.5 3.7 4.1 3.5-3.5 3.5-3.7 3.5-3.9 3.5-4.0 3.9-4.3 3.5-3.6 3.3-32 3.3-4.0 3.3-4.1 3.5-4.5 September projection 3.7 3.7 3.8 3.9 4.2 3.6-3.1 3.6-3.8 3.6-3.9 3.7-4.0 4.0-4.3 3.5-3.8 3.3-4.0 3.3-4.1 3.3-4.2 3.6-4.5 PCE inflation 1.5 1.9 2.0 20 20 1.4-1.5 1.8-1.9 2.0-2.1 2.0-2.2 20 1.4-1.7 1.7-2.1 1.3-2.3 1.8-2.2 2.0 September projection 15 1.9 20 20 20 15-1.6 18-20 20 20-22 20 14-17 17-2.1 1.2-2.3 19-22 20 Core PCE infiation4 1.6 1.9 211 20 1.5-11 1.9-20 20-21 20-22 1.5-18 17-21 18-23 18-22 September projection 1.a 1.9 2.0 2.0 1.7-1.8 1.9-2.0 2.0 2.0-2.2 1.6-1.8 1.7-2.1 1.8 -2.3 1.8 -2.2 Memo: Projected appropriate policy path Federal funds rate 1.6 1.6 1.9 2.1 2.5 1.6 1.6-1.9 1.6-2.1 1.9-2.6 2.4-22 1.6 1.6-1.9 1.6-2.4 1.6-2.9 2.0-3.3 September projection 19 .9 21 24 25 1.6-2.1 1.6-2.1 1.5-2.4 1.9-26 25-28 1.6-2.1 1.6-24 1.6-2.6 1.6-2.9 20-3.3 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 executivesowners/operators, developers, brokers, and Page 7 DEL'S CORNER FLORIDA ECONOMIC ANALYSIS 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. Exhibit 3-1 Prospects for Major Commercial Property Types, 2018-2020 ..................................................................................................................................................... Investment prospects IndustriaVdistri but ion Multifamily housing Single-family housing Office Hotels Retai I I nd ush ialid Ist ri buti o n Single-family housing Multifamily housing Office Hotels Retail Development prospects 1 2 3 4 5 1 2 3 4 5 Abysmal Poor Fair Good Excellent Abysmal Poor Fair Good Excellent Source= E—vgmg Trends in Real Estate surveys. Note: based on U.S. responded only. 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 Page 8 DEL'S CORNER FLORIDA ECONOMIC ANALYSIS 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. Table 1. Annual Summary of the University of Central Florida Forecast for Florida 2014 2015 2016 2017 2018 2019 2020 2021 2022 Personal Income and GSP Personal Income (Bil. $) 858.5 9192 953.3 1000.6 10512 1104.7 1160.5 1221.1 1283.8 Florida (%Ch Year ago) 8.0 7.1 3.7 5.0 5.1 5.1 5.0 5.2 5.1 U.S. (%Ch Year ago) 5.7 4.9 2.6 4.7 5.6 4.8 4.1 4.4 4.5 Personal Income (Bil. 2009$) 040.8 897.6 919.2 947.5 975.5 1010.4 1041.4 10752 1107.5 Florida (%Ch Year ago) 6.2 6.8 2.4 3.1 3.0 3.6 3.1 32 3.0 U.S. (%Ch Year ago) 4.2 4.6 1.5 2.9 3.4 3.3 22 2.4 2.2 lisp. Income (Bil. 2009$) 752.0 797.7 825.8 951.5 881.6 913.1 940.6 970.0 998.9 Florida (%Ch Year ago) 5.9 6.1 3.5 3.1 3.5 3.6 3.0 3.1 3.0 U.S. (%Ch Year ago) 4.1 4.1 1.8 2.9 4.0 3.2 22 2.3 2.1 GSP (Bil. $) 839.7 894.0 938.4 979.5 1036.3 1092.9 1150.3 1211.7 1272.9 (%Ch Year ago) 4.9 6.5 5.0 4.4 5.8 5.5 52 5.3 5.0 GSP (Bil. 200%) 004.3 835.9 864.0 985.9 917.0 945.0 971.9 998.9 1022.8 (%Ch Year ago) 2.6 3.9 3.4 2.5 3.5 3.1 2.8 2.8 2.4 Employment and Labor Force (Household Survey % Change Year Ago) Employment 2.2 1.4 2.9 3.4 2.0 1.6 2.2 1.6 1.2 Labor Force 1.2 0.5 2.3 2.7 1.3 1.4 1.8 1.7 1.5 FL Unemployment Rate (%) 6.3 5.4 4.8 4.2 3.6 3.3 3.0 3.1 3.4 U.S. Unemployment Rate (%) 6.2 5.3 4.9 4.4 3.9 3.7 3.3 3.3 3.6 Page 9 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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. Distance to Other Major Markets 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 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. Table 5. Population and Population Change for Regional Planning Councils In Florida, 1990 to 2019 State, Regional Planning Council* Population and County 2019 2010 2000 1990 Southwest Florida 1,773,140 1,531,724 1,206,639 909,327 Charlotte 181,770 159,978 141,627 110,975 Collier 376,706 321,520 251,377 152,099 Glades 13,121 12,884 10,576 7,591 Hendry 40,120 39,140 36,210 25,773 Lee 735,148 618,754 440,888 335,113 Sarasota 426,275 379,448 325,961 277,776 Percent Change 2010 2000 1990 to 2019 to 2010 to 2000 15.8 26.9 32.7 13.6 13.0 27.6 17.2 27.9 65.3 1.8 21.8 39.3 2.5 8.1 40.5 18.8 40.3 31.6 12.3 16.4 17.3 Page 10 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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. Projections of Florida Population by County, 2020-2030, with Estimates for 2018 Percent Change lation 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 Source: Florida Demographic Estimating Conference, February 2019 and the Universityof 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. Page 11 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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. Florida Employment and Wages Employment I Average Average Industry Title Apr-19 May-19 Jun-19 Total Wages Monthly Quarterly 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 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. Employment Projections 2019 - 2027 CHARLOTTE, COLLIER, GLADES, HENDRY, AND LEE COUNTIES Employment Percent NAICS Title 2019 2027 Growth 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 Page 12 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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%. Local Area Unemployment Statistics Series Id: LAUCN120210000000003 Not Seasonally Adjusted Area: Collier County, FL Area Type: Counties and equivalents State/Region/Division: Florida Measure: unemployment rate 12. 01/0901/10 01111 01112W13 01114 01115 01116 01117 41/1801/19 Month 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. Page 13 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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%. Naples - Immokalee - Marco Island Service- % Goods % Mining, Logging, & % Leisure and % All Employees, % Year Providing Change Producing Change Const. Change Hospitality Change Total Nonfarm Change 2009 98,300 -5.6% 13,000 -25.3% 10,400 -27.8% 21,000 -7.9% 111,300 -8.49/o 2010 99,700 1.49/. 11,500 -11.5% 9,100 -12.5% 21,300 1.4% 111,200 -0.1% 2011 103,400 3.79,o 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 4.49/o 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 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. Page 14 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS Rank Company Name Employment 1 Lee Health** 13,595 2 Lee County Schaal District 1,936 3 Lee County Local Government* 9,038 4 Publix Super Market 8,728 5 NCH Healthcare System** 7,017 5 Walmart 6,516 7 Collier County School District 5,604 8 Collier County Local Government* 5,119 9 Florida Gulf Coast University 3,430 10 Bayfront Health 3,0150 11 Charlotte County Schaal District Z553 12 Arthrex, Inc_** Z500 13 Charlotte County Local Government* 2,454 14 McDonald's Z447 15 City of Cape Coral Z253 16 US Sugar 2,100 17 Horne Depot Z040 18 Winn -Dixie 1,994 19 Hope Hospice 1,768 20 Ritz Carlton -Naples 1,450 21 Florida Southwestern State College** 1,441 22 Gartner, Inc.** 1,200 23 Walgreens 1,191 24 City of Naples 1,169 25 Target 1,150 Page 15 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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. Page 16 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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. Page 17 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS Asset Value 12 Mo Sales Volume Market Cap Rate 12 Mo Mkt Sale Priceltlnit Chg $1.6B i $184.1 M 5.2% 1.8% 12 MO SALES VOLUME Tau Lowest Highest 12 MO SALES PRICE Average Lowest Highest Market Transactons 7 - Cap Rate 4.99% 42% 5.5% 52% Sales Volume $180.5M VAM $98.5M SalePricelUnit $186.8K $92.9K $325.DK $160.1K Properties Sold 7 - - Average Sale Price $25.8M $1.1M $98.5M Transacted Units 966 3 454 Sale vs Asking Price -B2% -13.0% -22% Avg Units 138 8 454 % Leased at Sake 97.3% 90.0% 1D0% 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. Asset Value 12 Mo Sales Volume Market Cap Rate 12 Mo Mkt Sale PricelSF Chg $6.1 B $155.7M 5.9% -1.8% 12 NO SALES VOLUME Tau Lowest Highest 12 MO SALES PRICE Average Lowest Highest Market Transactions 100 Cap Rate Sales Volume $155.7M $120.DK $10.3M Sale PrioelSF 6.9% 52% 9.0% 5.9% $264 $12 $2.2K S251 Properties Sold 86 - Average Sale Price $1.9M $120.OK $1 D.3M Transacted SF Average SF 655.8K 554 59.7K Sale vs Asking Price -7.3% -30.0% 0% 6 6K 554 59 7K % Leased at Sale 92 7% 0% 1DD% 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. Asset Value 12 Mo Sales Volume Market Cap Rate 12 Mo Mkt Sale Price/SF Chg $2.4B $101.OM 6.9% 1.6% 12 MO SALES VOLUME Tau Lowest Highest 12 MO SALES PRICE Average Lowest Highest Market Transactions Sales Volume Properties Sold Transacted SF 74 - Cap Rate $101.DIu1 $144.DK $21AM Sale PrioelSF 60 - Average Sale Price 454.9K 430 54.OK Sale vs Asking Price Average SF 6.1 K 430 54.OK % Leased at Sake 7.3% 6.8% 9.0% 6.9% S247 $48 $599 S242 $1.8M $144.OK $21.OM -7.9% -18.8% 5.9% 93.6% 0% 1D0% 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. Page 18 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS Asset Value 12 Mo Sales Volume Market Cap Rate 12 Mo Mkt Sale PricelSF Chg $1.5B $44.8M 7.4% 3.5% 12 MO SALES VOLUME Total Lowest Highest 12 MO SALES PRICE Average Lowest Highest Market Transactions 58 - Cap Rate 6.6 % 4.1 % 7.5 % 7.4 % Sales Volume $44.8M $80.DK $4.4M Sale PricelSF $129 $39 S233 $112 Properties Sold 46 - - Average Sale Price $895.5K $80.OK $4.4M - Transacted SF 357.1 K 757 40.OK Sale vs Asking Price -8.7% -24.3% 6.0% Average SF 621K 757 40.OK % Leased at Sale 952% 0% 10D% 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. Households by Income Number Percent Number Percent <$15,000 11,277 7.2 % 9,86D 5.8 $15,000 - $24,999 11,633 7.5 % 10,323 6.1 % $25,000 - $34,999 11,868 7.5 % 10,988 5.5 % $35,000 - $49,999 21,290 13.7 % 21,261 12.5 % $50,000 - $74,999 28,043 18.0 % 29,662 17.4 % $75,000 - $99,999 21,452 13.8 % 24,282 14.3 % $100,000 - $149,999 22,038 14.1 % 26,915 15.8 % $150,000 - $199,999 9,570 6.1 1% 13,630 8.0 % $200,000+ 18,714 12.0% 23,389 13.7 % Median Household Income $67,771 $77,405 Average Household Income $104,866 $119,077 Per Capita Income $43,648 $49,645 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 Page 19 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS 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. Page 20 DEL'S CORNER COLLIER COUNTY AREA ANALYSIS COLLIER COUNTY AREA MAP I San Carlos�srk� ��• i I Estero r =ro Fx CREW MW Pen Strand Corkscrew r s I Al I I Bonita Springs u'� I Ngrth Naples --- _ _ _ _ ----• r Pelican Bey Vineyards Rural Esretes Florida Pan rherNa[iana) r Wifdfife Re{uge 41 Golden Ga[e Naples - . @ Picayune Srrand SaulhNaples SraieFaresE 1�,4 al I ,�,t �� Subject 2. a � I08ind5lr�,� , ��oo'f4ery Bay*_ Naliorial Estuarine are% jJ�uilivan Ray vakaha[ehee Srrand I Preserve Slate Park I 41 I gig Cypress h yl SL ° National Preserve al . ]. 'r {.:! �� 4 •- `till � Al I �L� �{' LiRa�de58ay I Page 21 DEL'S CORNER MARKET AREA ANALYSIS 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) Page 22 DEL'S CORNER MARKET AREA ANALYSIS 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 Page 23 DEL'S CORNER MARKET AREA ANALYSIS 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 2808 Thomasson Dr, Naples, Florida, 34112 Ring: 3 mile radius Summary Census 2010 2019 Population 36,929 39,189 Households 16,900 16,121 Families 9,857 10,366 Average Household Size 2.11 2.09 Owner Occupied Housing Units 12,335 12,908 Renter Occupied Housing Units 4,555 5,213 Median Age 52.8 56.8 Trends: 2019 - 2024 Annual Rate Area state Population 0.86 % 1.37°fo Households 0.93 % 1.31 % Families 0.78 % 1.26% Owner HHs 1.22 % 1.60 % Median Household Income 1.941A 2.37 % Prepared by Esri Latitude: 26.10901 Longitude:-81.76981 2019 Households by Income Number Percent Number <S15,000 1,711 9.41/. 1,469 $15,000 - $24,999 1,557 9.1% 1,462 $25,000 - $34,999 1,923 10.6% 1,779 $35,000 - $49,999 2,7B4 15.4 % 2,765 $50,000 - $74,999 3,792 20.9 % 3,967 $75,000 - $99,999 2,284 12.61/o 2,597 $100, 000 - $149,999 1,741 9.6 % 2,120 $150,000 - $199,999 940 4.6 % 1,185 $200,099+ 1,399 7.7 % 1,639 Median Household Income $54,534 $60,149 Average Household Income $84,949 $95,870 Per Capita Income $39,277 $44,524 2024 40,B96 18,964 10,776 2.08 13,718 5,266 58.8 National 0.77% 0.75 0.68 0.92 2.70% 2024 Percent 7.7% 7.7% 9.4% 14.6 20.9 13.70/n 11.2 6.2 8.6 Page 24 DEL'S CORNER MARKET AREA ANALYSIS 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 ROYAL HARBOR A E Celuer Giy Government C-Lhnti�r SL S — 4 i] C5 a 0. EAST NAPLE a ai OYAL ! `_ BNa Rical Tho-massonEk Garden Is Goole. . Sugdari Ri�gionai Park E3 pttlesn Map data (D2020 Page 25 DEL'S CORNER RETAIL MARKET ANALYSIS 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%. KEY INDICATORS Current Quarter RRA Vacancy Rate Market Rent Availability Rate Net A bsorpti on SF Deliveries SF Linder Construction Malls 2,048,984 1.5% $29.00 1.5% 3.600 0 0 Power Center 959,397 144% $25 48 15.0% (10,482) 0 0 Neighborhood Center 8,629,606 6_2% $22.55 8.8% 33,626 0 53,577 Strip Center 1,948,874 5.1% $20.65 7.4% 3,436 0 160,000 General Retail 10,022,110 2.5% $23.14 3.2% [8,100) 0 298,112 Other 260,828 50.5% S21.03 50.5 % 0 0 0 Market 23,769,859 5.0% $23.33 6.3% 22,080 0 511,689 Annual Trends 12Month Historical Forecast Peak When Trough When Average Average Vacancy Change (YOY) 0.6% 5.7% 4.5% 9.2% 2010 01 2.C% 2006 01 Net Absorption SF 59 6 K 292,321 389,613 975,689 2D08 Q3 (462,510) 201002 Deliveries SF 269 K 372,618 392,685 1,426,560 2D08 Q3 17,193 201204 Rent Growth 0% 0.5% 0.1% 4.0% 2D07Q1 -5.0% 201001 Sales Volume $160 M $165.4M NIA $368.5M 2D16 Q1 $57.3M 201004 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. Page 26 DEL'S CORNER RETAIL MARKET ANALYSIS 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. SUBMARKET RENT darket Rent I 12 Month Market Rent 4TD Annualized Market Rent No. Suhmarket Per SF Rank JP_ Growth Rank Growth Rank 1 East Naples $17.54 7 0.3% 2 1 -2.5% 6 2 Golden Gate $18.58 5 -D.4% 6 -0.7% 3 3 Lely S21.69 4 0.2% 3 -2.8% 7 4 Marco Island $22.33 3 -D2% 5 -0.3% 2 5 Naples $31.87 -0.1% 4 -0.8% 4 6 North Naples S24.95 2 0.3% -1.4% 5 7 Outlying Collier County $1833 6 -1.5% 7 18% OEM — 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. Radius: Invert SF 98 North Naples - Naples Naples • Naples Easl Naples - Naples Outlying Collier County - Naples %U= 151end • Naples Lely - Naples Golden Gate - Naples ■ 0 $20 $25 $30 Market Rent f SF 96% 94% 92°% 10-i M 3.1 M. go% 4.2 M 2.2 M 14M 88% 1.1 M 1-1 IA r 86°% 84°% a, U C CL D U U L Page 27 DEL'S CORNER RETAIL MARKET ANALYSIS 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%. Overview 12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 17.3 K 62.6 K 3.3% -2.2% KEY INDICATORS Current Quaver RBA Vacancy Rate Market Rent Availability Rate Net Absorption 5F Deliveries SIF tinder Construction Malls 0 0 0 0 Power Center 0 - - - 0 0 0 Neighborhood Center 1,659.466 4.6% $17.85 8.3% 21,499 0 0 Strip Center 501,731 7.6% $16.37 9.0% 2,528 0 160,000 General Retail 2,071,534 12% $16.78 1.2% 0 0 108,360 Otter 0 - - - 0 0 0 Submarket 4,232,731 3.3% $17.11 6.0% 24,027 0 Annual Trends 12 Month Historical Average Forecast Average Peak When Trough when Vacancy Change (YOY) -1.1 % 6.2% 3.7% 10.7% 201101 1.8% 2006 Q4 Net Absorption SF 62.6 K 19,590 116,734 137,943 201003 (110,525) 2011 Q1 Deliveries SF 17.3 K 27,288 119.062 122,949 2008 Q4 0 2014 Q1 Rent Growth -2.2% 2% 02% 4 7% 200701 -4 4% 2009 Q4 Sales Volume $31.5 M $20.9M NIA $53.1M 201902 $42M 2010 Q3 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. NET ABSORPTION, NET DELIVERIES & VACANCY 250 0 Forecast ° I U_ 20C i 9% � I w I 150 8% � I p I 10C 7%4 C � 50 I 6% ' ri m 0 5% C 4% v -L -50 ............... .... ... r.... `v r m r -100 i 3% r r r - 1 50 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I I 1 1 1 2% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ■ Net Absorption ■ Net Deliveries ■ Vacancy Naples Vacancy Page 28 DEL'S CORNER RETAIL MARKET ANALYSIS Rental rates are projected to remain flat through 2023. MARKET RENT PER SQUARE FOOT 524 $22 $20 $18 ............................................... � Forecast $16 ' $14 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0111 Malls ■ Neighborhood Center ■ General Retail ■ East Naples Power Center Strip Center ■ Other ■ Naples 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%. Vacancy & Market Rent Per SF - 14% 13% 12% 11% ►ALI! 6% 5% 4% 0 History 1Y 3Y 5Y 10Y All 1 1 0217 0417 0218 0418 0219 0 Vacancy Rate 0 Market Rent'SF Forecast 1Y 3Y 5Y-r oaa $17.20 $17.00 $16.80 $16.60 $16.40 LL a $16.20 61 Y $16.00 W $15.80 $15.60 $15.40 $15.20 0419 Page 29 DEL'S CORNER INDUSTRIAL MARKET ANALYSIS 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. 12 Mo Deliveries in 5F 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 32.6K 13.6K 2.1% 1.6% KEY INDICATORS Current quarter RBA Vacancy Rate Market Rent Availability Rate Net Ahsarption SF ve Qell des 5F Under Construction Logistics 6,750.696 1.9% $11.24 2.5% (10,052) 0 78,656 Specialized Industrial 4,644,012 2.4% $11.111 4 4% (7,953) 0 0 Flex 1,666,078 2.2% $12.91 2 9% 7,236 U 0 Market 13,861.586 2.1% $11.37 3. 71LESS Annual Trends 12 Monlh Historical Average Forecast Average Peak 1Mlren Trough When Vacancy Change (YOY) 0.1 % 4.3°% 2.5% 102% 201003 0.7% 2017 Q4 Net Absorption SF 13.6 K 70,122 37,996 467,128 201203 (360,447) 2009 Q2 Deliveries SF 32.6 K 88,664 46,137 250,010 2013 Q3 0 2012 Q3 Rent Growth 1 6% 1 4% 1.1 % 6 2% 2018 Q4 -_5% 2009 44 Sales Volume $43.4 M $34.8M NIA $75.OM 201502 $4.9M 2009 Q3 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. Page 30 DEL'S CORNER INDUSTRIAL MARKET ANALYSIS 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. SUBMARKET RENT F— Market Rent 12 Month Market An ... Il ed Market Rent No. Submarket Per 5r Rank Growth Rank Growth Rank 1 East Naples $10.83 7 17% 3 1.5% 4 2 Golden Gate $12.16 3 2.1% 2 -0.6% 7 3 Lely $11.10 6 0 4% 7 4. (% 4 Marco Island $17.04 22% 0.1% 6 5 Naples $13.24 2 1.41% 6 2.2% 3 6 North Naples $11.84 4 1.6% 4 0.20/6 5 7 Outlying Collier County $11.32 5 1.5% 5 2.6% 2 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%. i Ll - Radius: Inventk ry SF 100% 99% 98% i5 e Easl Naples -Naples 5-4M CL North Naples - Naples 4 9 M :3 97% � Oullymg Collrer County - Naplea 2-5 M BLS V Marco Islgnd - Naples 99.1 K Golden Gate - Naples 95.4 K Naplgs - Naples 52.9 K 96% Lely • Neples 18 K 95% 0— $12 $14 $16 Market Rent f SF Page 31 DEL'S CORNER SITE ANALYSIS 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 Gross Land Area Zonin g (Acres) (Sq Ft) 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 Page 32 DEL'S CORNER SITE ANALYSIS 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 Accounting; full -service automotive repair; automotive Heavy Commercial District (C-5) 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 Page 33 DEL'S CORNER SITE ANALYSIS 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 Accounting; automotive services; business services; Commercial Intermediate District (C-3) 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 Single-family dwellings; Duplexes, two-family Residential Multi-Family-6 District 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. Page 34 DEL'S CORNER SITE ANALYSIS 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). Min. lot width lB} Min. Front Yerd M) Max. Frmt Yard Mi Min. Side Yard IR) Min. Rear Yard{ RI WaterlrOM YMd IB) Min. Fli—A— (.q it) Min. Building Separation Mac Building H *h"Itj 4 real[ I Blmenslonel Requirements in the BM11B.NC Nam' ROwhouse 2 AparVWt mb*d•Use COnwrerdai Oh4c & rnsul;uuan5l 50 20 100 too. tops 100 10 10 10 5 5 10 20 15 20 20 20 20 S 5 S 5 5 10 15 15 20 20 20 20 25 25 25 25 25 25 700 700 700 pn unit 700 per unit 700 per unit r" .VA rda 10 10 10 10 42 a2 42 56 56 �2 Page 35 DEL'S CORNER SITE ANALYSIS Table A. dimensional Requirements in [he BMuo.R2 Mouse R1,0111 Ap-rlment civic & In5171Wipnal Min. Cat Ndd[h M) 50 253 100 100 Min. Front Yardiftl 25 25 25 25 Min. Side Yard(it) 7.5 5 7.5 10 Min. Rear Yard tftl 1$ 1$ 1$ 15 Min. Floor Area(sq ft) Min. Building 5ipdrd[i0iI 1.100 1" 750 per unit [va Nd Nd 10 10 Max. Building lleot If* • 35 35 35 35 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. Page 36 DEL'S CORNER SITE ANALYSIS Zoning Map Page 37 DEL'S CORNER SITE ANALYSIS 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. Page 38 DEL'S CORNER SITE ANALYSIS Aerial Page 39 DEL'S CORNER SITE ANALYSIS Flood Map National Flood Hazard Layer FIRMette V,FEMA 0 250 500 1,000 t590 2.000 Plat Map 4 Residential Land Lot 4 Legend SPECIALFLOOD %%t:t paw — El— OFF) Wkk BFE osr DaplM1 zo�.re,ao..rx, m,,w HAZARD AREAS Ragulamry Flpetlway 4.2%Annual CM1arce Flops Harertl.0.reas M 1%annual ckance flops wkM1 aurage aeplM1 lee alnage areas W kzz zbannpne square mlla zn..r " Future PnndMom 1%Annual [M1anze Floctl HazaN ze�r allM AREAS OF th aooa Rlsx Leree. See Nozez�deem FL001) HAZARD 0 Area with Fload RHk due to Lesweze..o Area of Mlnlmal Flood HazaM sae r OTHER AREAS Q Effecdre LOMRs Mea ofuMemnnlnetl Fluotl Harartl ae.=o GENERAL Uh anne usw or m, ewer STRIfCTHRFS l l l l e Lerw. Olku, w Flpoewall o- - - Goss SeutlonswM l%Annual CM1anm YYa4er5urtau Daratlon maeTal rrane«t .... - �� Flnxa ueraumr one (RFn umk pfswtly tludselctlon Dountlary OTHER - --- - --Iwan t easeuna {"IF Baseline FEATHRE5 Hydmgrapnlc Fnaum D oll tiara Arailable _II tiara Arallabb MAP PANEl5 Unmapped o The pin T puln[seleeletl an aulM1utllallre tllsplayM on Ne map Is an appmrlmate bYtM1e uzerane tlues nol repreunl property bua[lon. Thl map complles wM1M1 fEMA's saantla Msfor IM1e use of elgkal flootl maps If k Is nM vole as tleudbetl below. The basemap shown complles wl[M1 fEM0.'s basemap aaprarr etaneama Tne flood h— Irlfunnatlon Is d—d tl Irecllyfmm dle auMorltatlea HFHL web uMws pmeleue by—A.Ims s exporoatl on 3/3R�2D20 ar 6�15'10 PM antl tloes n mflai cM1anges w amenemen6 subsequent b rM1ls tla[e tlme. The NFHL antl effeoerelnlmmatlon may eM1ange or became zp Pa reeaea by new sera erer dme. Tles map In. —I If rbe one or rmre of the bllmring map tz tlu not appear hazemap Imagery. flooe zone labels, leg nd�soale bar_.r—FIRM daoe,m unlryldu nlmurs, FIRM panel number. antl FIRMM elfective eats. Map Imagesmr mgulalorypu c%ram o �� Cfrcrli� C. -� Qnd fir=cow/,�.- cow L Commercial Parcels I 1;1 Lots 1, 2 & 3 oqZ� f• fG0' l9 o � I Goci� �oo� moo' w 0 s0 ��.Q•� O rrm a-P VIC CJ /a r9 err I �► I \ .�� c io.7 lra E 1� SdeCYldf✓ GIf76 �cr'�cifrii^rb e7�r-�•�o/rF� I IR � � I 19E. 3G r � q 4 Page 40 DEL'S CORNER SITE ANALYSIS Site Photographs Thomasson Drive - Easterly Thomasson Drive - Westerly (Photo Taken on February 16, 2020) Page 41 DEL'S CORNER SITE ANALYSIS Site Photographs Bayshore Drive - Northerly Photo Taken on February 16, 2020) Bayshore Drive - Southerly (Photo Taken on February 16, 2020) Page 42 DEL'S CORNER IMPROVEMENTS ANALYSIS 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 Summary Building Name/ID Year Built Condition Number of Stories Grosse Building Rentable Area Overhead Door/Storage Area Del's 24-Hour Store 1973 Average One with memarune 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: The following description is based on our limited property inspection 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) Page 43 DEL'S CORNER IMPROVEMENTS ANALYSIS 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 Page 44 DEL'S CORNER IMPROVEMENTS ANALYSIS 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% 31600 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. Page 45 DEL'S CORNER IMPROVEMENTS ANALYSIS Collier County Property Appraiser Building Sketch Retail / Store 6 1+1#1 3600 0 68 60 CANOPY CONG Page 46 DEL'S CORNER IMPROVEMENTS ANALYSIS Warehouse DOCK Boat Sales / Storage CPY 5 20 20 20% 1 l2+2+20 400 CONC Gee] 30 16 CONC 480 20 C PY 30%q CONC Page 47 DEL'S CORNER IMPROVEMENTS ANALYSIS Improvement Photographs Del's 24-Hour Store - Southerly Del's 24-Hour Store - Easterly (Photo Taken on February 16, 2020) Page 48 DEL'S CORNER IMPROVEMENTS ANALYSIS Imprc Del's 24-Hour Store - Easterly Boat Storage Area - Easterly (Photo Taken on February 11, 2020) Page 49 DEL'S CORNER IMPROVEMENTS ANALYSIS Improvement Warehouse Building - Southerly Warehouse Building - Southerly (Photo Taken on February 11, 2020) Page 50 DEL'S CORNER IMPROVEMENTS ANALYSIS Impra Boat Sales Building - Easterly Boat Sales Building - Westerly (Photo Provided by Property Contact) Page 51 DEL'S CORNER IMPROVEMENTS ANALYSIS Impra Boat Storage Area - Easterly Del's 24-Hour Store (Photo Provided by Property Contact) Page 52 DEL'S CORNER IMPROVEMENTS ANALYSIS Improvement Ph Del's 24-Hour Store Del's 24-Hour Store Restaurant Area (Photo Provided by Property Contact) Page 53 DEL'S CORNER IMPROVEMENTS ANALYSIS Improvement Del's 24-Hour Store Kitchen Area (Photo Provided by Property Contact) i Restroom in Del's 24-Hour Store (Photo Taken on February 11, 2020) Page 54 DEL'S CORNER IMPROVEMENTS ANALYSIS Improvement Photographs Del's 24-Hour Store Bait Shop Area Del's 24-Hour Store - Mezzanine Office (Photo Taken on February 11, 2020) Page 55 DEL'S CORNER IMPROVEMENTS ANALYSIS Impra Warehouse Building Boat Sales Office (Photo Provided by Property Contact) Page 56 DEL'S CORNER REAL ESTATE TAXES AND ASSESSMENTS 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 Page 57 DEL'S CORNER REAL ESTATE TAXES AND AsSESSMENTS 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. Page 58 DEL'S CORNER HIGHEST AND BEST USE 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. I The Dictionary of Real Estate Appraisal 6th ed. (Chicago: Appraisal Institute, 2015) Page 59 DEL'S CORNER HIGHEST AND BEST USE 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, 141h 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. Page 60 DEL'S CORNER HIGHEST AND BEST USE 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. Page 61 DEL'S CORNER VALUATION METHODOLOGY 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. Page 62 DEL'S CORNER VALUATION METHODOLOGY 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. Page 63 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT 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 City Land SF Price Per SF Comments Subject Thomasson Drive - Lot 4 2/11/2020 Del's Comer- Residential Parcel Naples 27,500 1 3010-3040 Thomasson Drive 2/15/2019 $1,000,000 Ready to build multi -family site. Sellers paid and received DEP permits, amry core of engineers approval, etc. Land is cleared. Site engineering plans were also included for 20 cottage style homes (two, 10-plexunhs). 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 Naples 165,000 $6.06 of March 2020. Scher provided$150,000 concession. y 3278 Thomasson Drive 3/20/2018 $260,000 Two adjacent parcels improved with 2 homes and 2 efficiency's (1951, 1950,1992). The main house (4Bed/2Bath) rents for $1,000/ month. quest house (2Bed/2Bath) rents for $950. Each efficiency (lBed/ (Bath) rents for $650 and $525. Tenants are an on a month Naples 27,411 $9.49 to month agreement and want to stay. Property was sold as -is and for lot value only. Zoning allows fora new single family home and guest house orup to 4 units as nmhi- family. Listed for $299,900 in Jan 2018. 3 2898 Weeks Ave 2/25/2020 $230,000 Parcel located on the southwest comer 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 Naples 11,078 $20.76 reduced to $249,900 in Dec. 2019. 4 2745 Arbutus St 4/26/2019 $94,000 Cleared parcel along Arbutus St. Listed for $89,900. Naples 10,019 $8.38 Page 64 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT Comparables Map i Collier Cty * Government Center ROYAL HARBOR 'n � 4 t 0. EAST NAPLES s NaRl ioal T masson Ur Betarti Gar&,n Siugdc:-n Regionall Park a, T, Map data (M-024 Page 65 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT 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. Page 66 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT Land Analysis Gtid Comp 1 Comp 2 Comp 3 Comp 4 Name Del's Comer- Compass Place 3278 Thomasson Drive 2898 Weeks Ave 2745 Arbutus St Residential Parcel Address Thomasson Drive -Lot 3010-3040 Thomasson 3278 Thomasson Drive 2898 Weeks Ave 2745 Arbutus St 4 Drive City Naples Naples Naples Naples Naples Date 2/11/2020 2/15/2019 3/20/2018 2/25/2020 4/26/2019 Price $1,000,000 $260,000 $230,000 $94,000 Price Adjustment -$150,000 $0 $0 $0 Adjusted Price $850,000 $260,000 $230,000 $94,000 Land SF 27,500 165,000 27,411 11,078 10,019 Land SF Unit Price $5.15 $9.49 $20.76 $8.38 Transaction Adjustments Property Rights Fee Simple Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Private Financing Equity 0.01/. Cash to seller 0.0% Conventional 0.0% Cash to seller 0.01/6 Conditions of Sale Anus Length 0.0% Amis Length 0.0% Ands Length 0.0% Ands Length 0.0% AdjustedlandSFUnit Price $5.15 $9.49 $20.76 $8.38 Market Trends Through 2/11/2020 10.0% 9.9% 19.8% 0.0% 7.9% Adjusted Land SF Unit Price $5.66 $11.37 $20.76 $9.05 Location Average Similar Sinular Superior Similar % Adjustment 0% 0% -10% 01/6 $ Adjustment 27,500 $0.00 165,000 $0.00 27,411 -$2.08 11,078 $0.00 10,019 Land SF % Adjustment 30% 0% -5% -5% $Adjustment Level $1.70 Cleared and filled $0.00 Improved 41.04 Improved -$0.45 Cleared Topography %Adjustment 0o/ -10% -10% 0% $Adjustment $0.00 -$1.14 -$2.08 $0.00 Shape Rectangular Rectangular Rectangular Rectangular Rectangular % Adjustment 0% 0% 0% 01/6 $ Adjustment RMF-6 - BMUD - R2 $0.00 RMF-6-BMUD-R2 $0.00 RMF-6-BMUD-R2 $0.00 RMF-6-BMUD-Rl $0.00 RMF-6-BMUD-RI Zoning Type % Adjustment 0o/ po/ po/ 0 $ Adjustment $0.00 $0.00 $0.00 $0.00 Adjusted land SF Unit Price $736 $10.23 $15.57 $8.59 Net Adjustments 30.0% -10.0% -25.0% -5.0% Gross Adjustments 30.0% 10.0% 25.0% 5.0% Page 67 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT 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. Price per Square Foot $35.00 $30.00 $25.00 $20.00 ♦ $15.00 $10.00 ♦ $5.00 $0.00 12/31/2017 4/10/2018 7/19/2018 10/27/2018 2/4/2019 5/15/2019 8/23/2019 12/1/2019 3/10/2020 6/18/2020 Page 68 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT 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 adjustments are required. are relatively similar in terms of zoning type; therefore, no Page 69 DEL'S CORNER LAND VALUE - RESIDENTIAL COMPONENT 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. Land Value Ranges & Reconciled Values Number of Comparables: 4 Unadjusted Adjusted % a Low: $5.15 $7.36 42.85% High: $20.76 $15.57 -25.00% Average: $10.95 $10.44 -4.63% Reconciled Value/Unit Value: $10.00 Subject Size: 27,500 Indicated Value: $275,000 Reconciled Final Value: $280,000 Page 70 DEL'S CORNER SALES COMPARISON APPROACH 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. Page 71 DEL'S CORNER SALES COMPARISON APPROACH Comp Address Price Price Per SF Year Built City Date GLA Construction Continents Subject 2808 Thomasson Drive and 4825 1973, 1981, and 1992 Bayshom Drive Naples 2/11/2020 8,320 Class C and Class S j 4097 Bayshmo Drive $540,000 $225.00 1975 This freestanding retail building was completely renovated in 2015 and a stucco facade was installed in the front. It has appmaimatly 1,700/sf(71%) office/showroom and the remainder is warehouse with 2 OH doors. Naples 5/31/2017 2,400 Metal Property was previously used for astm-turfbusiness and was vacant at the time of sale. Income and expense data is prefomn by the appraiser. 2 3209 Van Buren Ave $787,500 $131.25 1990 Industrial building located along Van Buren Ave within the Bayshore Mixed Use Overlay District. Building was listed for $875,000. Steel construction with 16 cave height and 18' center height. Building is mostly warehouse Naples 8/22/2019 6,000 Steel space with a small office in front. 3 2059 Tarniami Trail E $2,250,000 $239.36 1977 / Renovated Two-story building located along north side of Tarniarm 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 ofsale. 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 Naples 9/5/2019 9,400 CBS Bayshom Gateway Triangle, a redevelopment area. Former bars on the that 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 conanemial kitchen for private client lunches and dinners and special functions and events. 4 3196 Davis Blvd $1,525,000 $131.35 1967 St Vincent DePaal Society used building as a thrift store for mere than 30 years. The original 7,410 sfrnetal building was constructed in 1967 and a 4,200 s£addition was added in 2002. The seller leased the building back for months. The buyer leased the property for a reported $12isf NNN after the Naples 2i7/2018 11,610 Steel Forme seller vacated. Located across fromnew Porsche of Naples dealership. There was reported mofdamage from Hurricane Ina and the price was reduced $150,000. g 4896 Rattlesnake Hammock Road $495,000 $187.50 1970 This freestanding building has limited frontage on Rattlesnake Hammock Road and ahnost 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 Naples 4/16/2019 2,640 CBS buyer will occupy the building with flower shop. Comparables Map Radio Hd Naple! . DLD NAPLES 9 G �, �iade>: llJ,ta 41 Downtown Naples o a 8 I EAST PLES V.L ram' V C to i t 2 G yS 41 Nap rs BOtanl�Cal f' HaStlHnakoHsmlrarkHy Garden ... LP.Iv Map data (32020 Page 72 DEL'S CORNER SALES COMPARISON APPROACH 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. Page 73 DEL'S CORNER SALES COMPARISON APPROACH Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Name Del's Corner - Commercial 4097 Bayshore 3209 Van Buren The Colosseum Former St Vincent 4896 Rattlesnake Parcels Drive Ave DePaul Thrift Store Hammock Road Address 2808 Thomasson Drive and 4097 Bayshore 3209 Van Buren 2059 Tamiami Trail 3196 Davis Blvd 4896 Rattlesnake 4825 Bayshore Drive Drive Ave E Hammock Road City Naples Naples Naples Naples Naples Naples Date 2/11/2020 5/31/2017 8/22/2019 9/5/2019 2/7/2018 4/16/2019 Price $540,000 $787,500 $2,250,000 $1,525,000 $495,000 Price Adjustment $0 $0 $0 $150,000 $0 Adjusted Price $540,000 $787,500 $2,250,000 $1,675,000 $495,000 GLA 8,320 2,400 6,000 9,400 11,610 2,640 GLA Unit Price $225.00 $131.25 $239.36 $144.27 $187.50 Transaction Adjustments Property Rights Fee Simple 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% Pnvate Equity 0.0% Conventional 0.0% Cash to Seller 0.0% P,i-e ty; sever 0.0% Conditions of Sale Arms length 0.0% Ann's Length 0.0% A 's Length 0.0% Arius Length 0.0% Arms length 0.0% Adjusted GLA Unit Price $225.00 $131.25 $239.36 $144.27 $187.50 Market Trends Through 2/11/2020 10.0% 29.4% 4.6% 4.2% 21.1% 8.2% Adjusted GLA Unit Price $291.07 $137.32 $249.51 $174.75 $202.83 Location Average Similar Inferior Superior Similar Inferior % Adjustment 0% 5% -5n/ 0% 10% $ Adjustmeml 8,320 $0.00 2,400 $6.87 6,000 -$12.48 9,400 $0.00 11,610 $20.28 2,640 GLA %Adjustment -15% 0% 0% 0% -15% $ Adjustment 1973, 1981, and 1992 -$43.66 1975 $0.00 1990 $0.00 1977 / Renovated $0.00 1967 -$30.42 1970 Year Built % Adjustment 0% -10% -5% 10% 5% $ Adjustment Store / Warehouse / Boat $0.00 Retail/Warehouse -$13.73 Office/Warehouse -$12.48 Restaurant / Bar $17.48 Thrift Store $10.14 Open Retail Space Condition Sales %Office/%AC Area 53% 53% 71% 71% 10% 10% 100% 100% 100% 100% 100% 100% %Adjustment -5% 20% -15% -10% -10% $ Adjustment 6.36 to 1 -$14.55 6.53:1 $27.46 2.90:1 -$37.43 4.87:1 -$17.48 3.25:1 -$20.28 6.93:1 Land to Building Ratio %Adjustment 0% 45% 10% 40% 0% $ Adjustment C-5 & C-3 BMUD - NC $0.00 C-4-13MUD-NC $61.79 C-5-BMUD-NC $24.95 C-4-GTMUD-MXD $69.90 C-5; GTMUD-MXD $0.00 C-4 Zoning Type % Adjustment 0% 0% 0% 0% 0% $ Adjustmentl $0.00 $0.00 $0.00 $0.00 $0.00 Adjusted GLA Unit Price $232.86 $219.70 $212.08 $244.65 $182.55 Net Adjustments -20.0% 60.0% -15.0% 40.0% -10.0% Gross 20.0% 80.0% 35.0% 60.0% 40.0% Page 74 DEL'S CORNER SALES COMPARISON APPROACH 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. Sales Volume & Sale Price Per SF - $2 00 $180 $160 $120 $100 $8D 0 History 1Y 3Y OPM 0211 0411 Q21B 0418 Q2111 0419 ■ Sales Volume ■ Price(SF - MTA $3DM $25M $2DM N 7 O $15M H m ro WM $5M $D 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. Page 75 DEL'S CORNER SALES COMPARISON APPROACH 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. Page 76 DEL'S CORNER SALES COMPARISON APPROACH 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% 100/0 1000/0 1000/0 100% % Office Cost of Building Cost 37% 44% 100/0 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 0 0 0 0 0 0 % of Warehouse AC 0% 0% 00/0 00/0 00/0 0% % AC Whse Cost of Building Cost 0% 0% 00/0 00/0 00/0 0% % Difference 0% 00/n 00/n 00/0 0% Sale Price $ Adjustment $0.00 $0.00 $0.00 $0.00 $0.00 % Adj Whse 0% 00/. 00/0 00/0 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. # MLS/Tax ID Address Date Price SF $/SF Zoning 1 218020152 248,25 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 S3353320002/5335336000 Bayshore Dr south of Lunar St 11/11/2019 $429,000 22,500 $19.07 C-4;BMUD-NC 4 4/53353400003 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 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. Page 77 DEL'S CORNER SALES COMPARISON APPROACH 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 00/0 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. Page 78 DEL'S CORNER SALES COMPARISON APPROACH 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. Value Ranges & Reconciled Values Number of Comparables: 5 Unadjusted Adjusted % a Low: $131.25 $182.55 39.08% High: $239.36 $244.65 2.21% Average: $185.48 $218.37 17.73% Reconciled Value/Unit Value: $220.00 Subject Size: 8,320 Indicated Value: $1,830,400 Reconciled Final Value: $1,830,000 Page 79 DEL'S CORNER INCOME CAPITALIZATION APPROACH 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. Page 80 DEL'S CORNER INCOME CAPITALIZATION APPROACH 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 Lease Lease Rent Roll % of Lease Contract Contract Date Date Tenant/Unit Name Space Type SF Total Start End Type Rent* Rent/SF Ders Market Retail 3,600 43.3% Owner Occupied Gross $72,000 $20.00 Warehouse - Tire sales/repair Warehouse 3,920 47.1% Month -to -Month Gross $54,880 $14.00 Boat Sales / Storage Warehouse 800 9.6% Month -to -Month 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 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. Page 81 DEL'S CORNER INCOME CAPITALIZATION APPROACH Comp# Name Year Built Comments City/State Condition Type Size Rent/SF This freestanding building has 2,000/sf of AC showroom, 1 2825 Davis Boulevard 1982 office, 1 restroom and 7,900/sf of AC warehouse with 2 OH doors and 3 restrooms. Zoned C-4. Naples, Florida Average NNN 9,900 $13.00 2 Naples Flooring 1999 Unit is finished out as a cafe and lease includes some FF&E. Rent is flat for first 2 years and then 3% ese per year. Naples, Florida Average NNN 1,826 $18.00 The Hitching Post Units Retail strip center located along south side of Tamiami Trail 3 11536 19741981 East. CAM includes water and sewer. Office, retail, and restaurant space. Naples, Florida Average Triple net 1225 - 6,000 $18.50 4 1801 J & C Boulevard 1984 This freestanding building has a 550/sf AC office area and the remainder of the building is warehouse with 5 OH doors. Naples, Florida Average Gross 5,040 $14.52 Multi unit office/warehouse complex just east of Airport Road. 5 Ming Enterprise Building 1985 Industrial/Warehouse space available for $10/sf with $3.20/sf CAM. Naples, Florida Average NNN 1,263 - 10,647 $10.00 Building was constructed in 1959 and is outmoded in terms of 6 All Sod Nursery 1959 construction and functionality. Lease is essentially a land lease of a 64,469 square foot Industrial caned site located on the north side of Radio Road in the Naples Production Park. Naples, Florida Poor NNN 3,336 $27.07 Comparables Map nogle North Naples IV 41 PELICAN uA Vineyards PIARV SHOJ7L Naples Zoo at Iden Ga;e Csribb2ari Gardens 9 Naples Lefly NaPlesr Resort I4eewaydin Island Map data@2020 Googie, INEGI Page 82 DEL'S CORNER INCOME CAPITALIZATION APPROACH Analysis Grid The above rentals have been analyzed and compared with the subject property. We have considered adjustments in the areas of- • Lease Terms • Economic Trends (time) • Conditions of Lease • Location • Other • Physical Characteristics Following is a rental comparison grid displaying the subject property, the comparables and the adjustments applied. Lease Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Name Ders Corner 2825 Davis Naples Flooring The Ilitching Post 18011 & C Ming Enterprise AO Sod Nursery Boulevard Units 11536 Boulevard Building Address 2808 Thomasson 2825 Davis 771 Airport Road 115536 and 11560 1801 3 & C 4584 Enterprise 4701 Radio Drive and 4825 Boulevard North, Unit 2 Tamiami Trail East Boulevard Ave Road Bayshore Drive City Naples Naples Naples Naples Naples Naples Naples Tenant World Cat WT Cafe of Collier Listing Caribbean Logistics Listing All Sod Nursery, Powerboats & Investment Inc Date 2/11/2020 1/1/2020 6/1/2018 2/11/2020 4/1/2019 2/11/2020 5/1/2019 Rent/SF $13.00 $18.00 $18.50 $14.52 $10.00 $27.07 Lease Type NNN NNN Triple net Gross NNN NNN Term 36 months 5 years 3-5 years 36 months 2-3 years 5 years size 9,900 1,826 1,225 - 6,000 5,040 1,263 - 10,647 3,336 Transaction Adjustments 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% Adjusted Rent $13.00 $18.00 $17.58 $14.52 $9.50 $27.07 Market Trends/Year 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Adjusted Rent $13.00 $18.00 $17.58 $14.52 $9.50 $27.07 Expenses $5.00 $5.17 $5.65 $0.00 $3.20 $7.15 Adjusted Rent $18.00 $23.17 $23.23 $14.52 $12.70 $34.22 Location Average Similar Superior Superior Inferior Inferior Similar %Adjustment 0% -5% -10% 5% 5% 0% $ Adjustment 1973, 1981, and 1992 $0.00 1982 -$1.16 1999 -$2.32 1974-1981 $0.73 1984 $0.64 1985 $0.00 1959 Year Built % Adjustment 0% 0% 0% 0% 0% 0% $ Adjustment Store / Warehouse / $0.00 Retail / $0.00 Cafe $0.00 Retail $0.00 Warehouse $0.00 Warehouse $0.00 Land Lease - Condition Boat Sales Warehouse 64,469 SF %Adjustment 0% 0% 0% 0% 0% 0% $ Adjustment 800 - 3,920 $0.00 9,900 $0.00 1,826 $0.00 1,225 - 6,000 $0.00 5,040 $0.00 1,263 - 10,647 $0.00 3,336 Comm 1 SF % Adjustment 0% 0% 0% 0% 0% 0% $ Adjustment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Adjusted Rent $18.00 $22.01 $20.90 1 $15.25 $13.34 1 $34.22 Net Adjustments 0.0% -5.0% -10.0% 5.0% 5.0% 0.0% Adjustments 0.0% 5.0% 10.0% 1 5.0% 5.0% 0.0% Page 83 DEL'S CORNER INCOME CAPITALIZATION APPROACH 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. Page 84 DEL'S CORNER INCOME CAPITALIZATION APPROACH 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 amtun Gross 3-5 years Warehouse $14.00 2-3% per amiun 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. Page 85 DEL'S CORNER INCOME CAPITALIZATION APPROACH 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 Sale Cap Rates 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% The comparable cap rates range from 4.03% to 8.03% with an average of 6.38%. Page 86 DEL'S CORNER INCOME CAPITALIZATION APPROACH 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%. 020 Florida - Class A & B Neighborhood. Communitl & Strip Retail Centers Jacksonwille MiamilDade Orlando Tampa Bag Region Income Asking Rent $16.89 $16.53 $26.87 $26.04 $19.44 $19.03 $17.65 $17.28 $19.88 $19.41 Effeotiue Rent $15.07 $14.75 $24.16 $22.29 $17.44 $17.07 $16.01 $15.68 $17.88 $17.45 Otherinoome $0.75 $0.74 1.21 $1.17 $0.87 $0.85 $0.80 $0.78 $0.89 $0.87 Totallneome $0.82 V5.0 25.37 $24.56 $101 17.93 iG.82 V6.46 W.78 18.33 Vacancy Rate 7.3% 7.1Y 4.6YI 4.2VI 5.0% 4.8% 7.7% 7.4% 5.8% 5.6% EGI 14.66 $14.39 24.201 $23.521 $17.401 $17.07 $15.52 $15.25 17.69 $17.31 Expenses Total Expenses $7.69 $7.03 $9.49 $8.68 $7.69 $7.03 $7.41 $6.78 $7.96 $7.28 Expense Ratio 52.43% 48.87% 39.22% 36.90% 44.18% 41.19% 47.73% 44.44% 45.03% 42.08% Noll $6.98 $7.35 $14.71 $14.84 $9.71 $10.04 $8.11 $8.47 $5.72 $10.02 m ent Aug Sale Priee 86 $88 166 $172 104 $106 $91 $92 $109 $111 OAR 8.1% 8.4% 8.8% 8.6% 8.3x 8.5x 8.8x 8.2x 8.8x 8.0x GRIM 5.71 5.97 6.87 7.35 5.96 6.21 5.68 5.87 &.09 6.38 EGIM 5.87 6.12 6.86 7.31 5.98 6.21 5.86 6.03 6.16 6.44 '4th 6luw to 2013 data Cop yright 2020 RcaRyRa tC:.[om TM 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%. Table 3 NATIONAL STRIP SHOPPING CENTER MARKET Fourth Quarter 2019 CURRENT LAST QUARTER 1 YEAR AGO 3 YEARS AGO 5 YEARS AGO OVERALL CAP RATE (OAR) - Range 4.50%-10.00% 4.50%-10.00% 4.00% -9.50% 4.00% - 9.50% 5.0D%-10.00% Average 6.75% 6.77% 6.7D% 6.18% 7.05% Change {Basis Points} - 2 + 5 + 57 - 20 a. Rate on unleveraged, all -cash transactions b. Initial rate of change c. In months 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. Page 87 DEL'S CORNER INCOME CAPITALIZATION APPROACH Exhibit 1 OVERALL CAPITALIZATION RATE ANALYSIS Fourth Quarter 2019 OVERALL CAP RATES BASIS POINT CHANGE FORECAST CHANGE (SIX MONTHS) Range Average Quarterly Year Ago Increase Decrease Hold Steady National Regional Mall 4.00% - 9.00% 6.18% 0 - 5 75% 0% 25% Power Center 5.25% - 8.25% 6.40% 0 - 16 40% 20% 40% Strip Shopping Center 4.50%-11 6.75% -2 5 50% 04% 50% CBD Office 3.75% - 7.50% 5.52% 0 8 14% C% 86% Suburban Office 4.00%-9.25% 6.36% 8 -27 0% C% 100% Net Lease 4.00%-8.00% 6.19% -31 -52 0% 20% 80% Medical Office Buildings 4.25% - 10.00% 6.64% 3 - 7 0% 0% 100% Secondary Office 6.00% - 9.50% 7.63% 3 10 0% 14% 1 Source: i Real Estate Investor Survey 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%. I Florida - Class A & B Industrial Buildings Jacksonville Ft. Lauder dale Orlando Tampa Bay Region VH "Flez V, 114 Flez IV" Flez V H Flez WH Flez R&D ist R&D Dist Dist R&D Dist R&D Dist 191 "DistR&D Dist 191 Income Ask ingRent $5.60 $11.70 3.01 $1 $14.27 $&.44 $11.15 $6.91 12.87 Effective Rent $5.29 $11.06 $8.50 $13.53 $6.71 $13.82 $6.21 $10.76 $&.66 $12.40 Reimbur sable Exp. $2.06 $4.31 $2.54 $5.32 $2.06 $4.31 $1.98 $4.15 $2.13 $4.46 Total Income $7.35 $15.36 $11.04 $18.85 $8.77 $18.12 $8.19 $14.91 $f#.79 $16.87 Vacancy Rate 9.1% 9.0'/. 2.8% 3.4% 8.7x 6.7x 7.7% 1"1 - 6.9/ 7.0% EGI $6.68 $13.98 $10.73 $18.21 $0.01 $16.92 $7.56 $13.40 $8.18 $15.69 Expenses Total Expenses $2.21 $4.Q $2.73 $5.72 $2.21 $4.0 $2M $4.46 $2,28 $4310 Expense Ratio 33.10% 33.12'/. 25.44% 31.40% 27.62% 27.38% 28.18% 33.31% 28.00% 30.59x N01 $4.47 $8.35 $8.00 $12.49 $5.78 $12.28 $5.43 $8.84 5.88 11 en[ Avg Sale Price 54 97 97 li 99 132 63 $109 1 119 OAR 8.4% 9.6% 9.3x 9.2% 8.8x 9.3% 8.7% 8.4x 8.9% 9.2x GRIM 10.11 EGa1M 0.01 8.77 111 10.05 9.76 9.55 10.06 9.86 9.97 9.51 7.91 8.12 7.52 6.94 8.06 7.47 2.18 7.80 E.26 '4th 6luw to 2019 Data Copyright 2020 RcaItyi tca.comTM 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%. Page 88 DEL'S CORNER INCOME CAPITALIZATION APPROACH NATIONAL WAREHOUSE MARKET Fourth Quarter2019 CURRENT LAST QUARTER 1 YEAR AG❑ 3 YEARS AGO 5 YEARS AGO OVERALL CAP RATE (OAR) - Range 3.75%-6.40% 3.75%-6.40% 1.00%-6.50% 3.00%-7.00% 4.50%-7.00% Average 4.87% 4.83% 4.56% 5.27N 5.82% Change (Basis Points) + 4 4-31 - 40 - 95 a. Rate on unleveraged, all -cash transactions h. Initial rate of change c. In months 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. OVERALL CAPITALIZATION RATE ANALYSIS Fourth Quarter 2019 OVERALL CAP RATES BASIS POINT CHANGE FORECAST CHANGE [SIX MONTHS] Range Average Quarterly Year Ago Increase Decrease Hold Steady Industrial National Warehouse 3.75%-6.40% 4.87% 4 31 on 1a'A 02% ENG Region Warehouse 4.00%- 6.00% 5.00% - 18 - 24 0% 0% t00% Pacific Region Warehouse 3.70% -5.50% 4.21% - 19 - 24 0% 0% t00% Source: PwC Real Estate Investor Survey 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%. Page 89 DEL'S CORNER INCOME CAPITALIZATION APPROACH Capitalization to Value Income Capitalization Analysis 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% Potential Gross Income: $153,280 100.0% Vacancy & Collection Loss 5.00% $7,664 Other Income: $0 Effective Gross Income (EGI): $145,616 95.0% Amount Method Annual $/SF Real Estate Tax $8,492 $/Year $8,492 $1.02 Insurance $1.00 $/SF $8,320 $1.00 Utilities $0.10 $/SF $832 $0.10 Repairs/Maintenance $1.00 $/SF $8,320 $1.00 GeneraVAdministrative $0.20 $/SF $1,664 $0.20 Management 3% % ofEGI $4,368 $0.53 Total Expenses: $31,997 $3.85 Expense Ratio (Expenses/EGI): 21.97% Net Operating Income (NOI): $113,619 $13.66 Capitalization Rate: 6.50% Value (NOI/Cap Rate): $1,747,991 $210.10 Rounded: $1,750,000 $210.34 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. Page 90 DEL'S CORNER RECONCILIATION 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. Page 91 DEL'S CORNER RECONCILIATION 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. Appraisal Premise Market Value, As Is, Improved Property Market Value, As Is, Vacant Land VALUE CONCLUSIONS Interest Appraised Fee Simple Fee Simple Date of Value February 11, 2020 February 11, 2020 Value Conclusion $1,830,000 $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. Page 92 DEL'S CORNER CERTIFICATION CERTIFICATION We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report, and 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. Page 93 DEL'S CORNER CERTIFICATION 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 K. C. Lowry, MAI, CPA Florida State -Certified General Real Estate Appraiser RZ #2984 Florida State -Certified General Real Estate Appraiser RZ #2355 rzucchi@rklac.com; Phone 239-596-0800 Ext. 203 klowry@rklac.com; Phone 239-596-0800 Ext. 202 Page 94 DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS 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 Page 95 DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS 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. Page 96 DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS 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. Page 97 DEL'S CORNER ASSUMPTIONS AND LIMITING CONDITIONS 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 parry 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. Page 98 DEL'S' CORNER ADDENDA - APPRAISER QUALIFICATIONS ADDENDA &KL DEL'S' CORNER ADDENDUM A - APPRAISER QUALIFICATIONS ADDENDUM A APPRAISER QUALIFICATIONS &KL DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS F APPRAISAL AND CONSULTING 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. ACH EL M. ZUCCH I, MAI, CCIM 4500 Executive Drive, Suite 300 Naples, FL 34119-8908 C. LOWRY, MAI. CPA Phone: 239-596-0800 OUIS C. BOBB ITT, MAI www.rklac.com 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 Member: Appraisal Institute — MAI Certificate Number 451177 ACTIVITIES: President Appraisal Institute Florida Gulf Coast Chapter (2020) Vice President Appraisal Institute Florida Gulf Coast Chapter (2019) Secretary / Treasurer: Appraisal Institute Florida Gulf Coast Chapter (2017 / 2018) Region X Representative: Appraisal Institute Florida Gulf Coast Chapter (2017 - 2020) Board of Directors: Appraisal Institute Florida Gulf Coast Chapter (2015 & 2016) LDAC Attendee: Leadership Development & Advisory Council Appraisal Institute - Washington, D.C. (2016, 2017, 2018) Member: CCIM Institute - CCIM Designation Pin Number 21042 Member: Naples Area Board of REALTORS Licensed: Florida State Certified General Real Estate Appraiser License No. RZ 2984 Licensed: 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. ° &KL DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS RICK SCOTT, GOVERNOR JONATHAN ZACHEM, SECRETARY dbpr STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES ZUCCHI, RACHEL M 4500 EXECUTIVE DRIVE. SUITE 300 NAPLES FL 34119 LICENSE NUMBER; RZ2984 EXPIRATION DATE: NOVEMBER 30, 2020 Always verify licenses online at MyRoridaLicense.com Do not after this document In any form. r t�1 This is your license. It is unlawful for anyone other than the licensee to use this document. *Rn DEL'S' CORNER ADDENDUM A - APPRAISER QUALIFICATIONS PROFESSIONAL QUALIFICATIONS OF KENNETH C. LOWRY, MAI, CPA REAL ESTATE RKL APPRAISAL AND CONSULTING, PLC EXPERIENCE: 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 AppraiserNice President (1991 — 1996) AMERICAN COMMUNITY DEVELOPMENT CORPORATION Indianapolis, Indiana Controller (1990 —1991) MANSUR DEVELOPMENT, INC. Indianapolis, Indiana Senior Accountant (1988 — 1990) PROFESSIONAL Member: Appraisal Institute — MAI Certificate No. 12501 ACTIVITIES: Licensed: Florida State Certified General Real Estate Appraiser License No. RZ 2355 Licensed: Indiana State — Certified Public Accountant #CP08800355 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. 'nn�U�µoi WHti' DEL'S CORNER ADDENDUM A - APPRAISER QUALIFICATIONS RICK SCOTT, GOVERNOR JONATHAN ZACHEM, SECRETARY da dbpr •'ham wF� STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA ST LICENSE NUMBER- RZ2355 EXPIRATION DATE: NOVEMBER 30, 2020 Always verify licenses online at MyFloridal-icense.com ' Do not alter this document in any form. This is your license. It is unlawful for anyone other than the licensee to use this document. R1I & *Rn DEL'S CORNER ADDENDUM B - FINANCIALS AND PROPERTY INFORMATION ADDENDUM B FINANCIALS AND PROPERTY INFORMATION *RKL Page 1 of 1 Collier County Property Appraiser Property Summary Site Address 2808 Site Zone Parcel No 52600120008 *Disclaimer THOMASSON DR Site City NAPLES *Note 34112 Name / Address ACKERMAN, THERESA 5610 CYNTHIA LN City NAPLES State FL Zip 34112-2309 Map No. Strap No. Section Township Range Acres *Estimated 5A23 430900 35A23 23 50 25 0.44 Legal JONESVILLE LOT 3 OR 446 PG 655 Millage Area 4 63 Sub./Condo 430900 - JONESVILLE Use Code • 114 - SUPERMARKETS Latest Sales History (Not all Sales are listed due to Confidentiality) Date Book -Page Amount 09/25/19 5677-1903 $ 0 01/03/19 5587-786 $ 0 Millage Rates O *Calculations School Other Total 5.083 1 8.6675 13.7505 2019 Certified Tax Roll (Subject to Change) Land Value (+) Improved Value (_) Market Value $ 144,480 $ 189,836 $ 334,316 (-) 10% Cap (_) Assessed Value (_) School Taxable Value (_) Taxable Value $ 15,582 $ 318,734 $ 334,316 $ 318,734 If all Values shown above equal 0 this parcel was created after the Final Tax Roll http://www.collierappraiser.comlmain searchlRecordDetail.html?sid=860440113&ccpaver=1710181149&N... 2/26/2020 Page 1 of 1 Collier County Property Appraiser Property Detail Parcel NoFS2600120008Site Address 2808 Site Zone Parcel No 52600120008 *Disclaimer THOMASSON DR Site City NAPLES *Note 34112 Name / Address I ACKERMAN, THERESA 5610 CYNTHIA LN City I NAPLES St�FL Zip 34112-2309 Permits (Provided for reference Durooses only. *Full Disclaimer. ) Tax Yr Issuer Permit # CO Date Tmp CO Final Bldg Type ROOF 0 COUNTY PRBD20180103731 1972 COUNTY 72-1748 07/18/72 1981 COUNTY 81-2814 10/19/81 06/11/81 1998 COUNTY j 9802-1906 j 04/02/98 2007 COUNTY 1 0509-3559 Land Calc Code Units 10# COMMERCIAL SF 19264 Buildina/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 http://www.collierappraiser.comlmain searchlRecordDetail.html?sid=860440113&ccpaver=1710181149&N... 2/26/2020 Page 1 of 1 Collier County Property Appraiser Property Summary Site Address 4825 BAYSHORE Site Zone Parcel No 52600080009 *Disclaimer DR Site City NAPLES *Note 34112 Name / Address ACKERMAN, THERESA 5610 CYNTHIA LANE City NAPLES State FL Zip 34112 Map No. Strap No. Section Township Range Acres *Estimated 5A23 430900 25A23 23 50 25 0.77 Legal JONESVILLE LOTS 1 AND 2, OR 1007 PG 1828 Millage Area 9 163 Sub./Condo 1430900 - JONESVILLE Use Code • 125 - REPAIR SHOPS, LAUNDRIES, LAUNDROMATS Latest Sales History (Not all Sales are listed due to Confidentiality) Date Book -Page Amount 09/25/19 5677-1903 $ 0 01/03/19 5587-782 $ 0 02/01/83 1007-1828 $ 56,200 07/01/78 1 761-361 $ 0 12/01/73 567-5 $ 0 Millage Rates O *Calculations School Other Total 5.083 1 8.6675 13.7505 2019 Certified Tax Roll (Subject to Change) Land Value $ 252,459 (+) Improved Value $ 84,770 (_) Market Value $ 337,229 ( - ) 10% Cap (_) Assessed Value (_) School Taxable Value (_) Taxable Value $ 70,026 $ 267,203 $ 337,229 $ 267,203 If all Values shown above equal 0 this parcel was created after the Final Tax Roll http://www.collierappraiser.comlmain searchlRecordDetail.html?sid=860440113&ccpaver=1710181149&N... 2/26/2020 Page 1 of 1 Collier County Property Appraiser Property Detail Parcel NoFS2600080009Site Address 4825 BAYSHORE Site Zone Parcel No 52600080009 *Disclaimer DR Site City NAPLES *Note 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 http://www.collierappraiser.comlmain searchlRecordDetail.html?sid=860440113&ccpaver=1710181149&N... 2/26/2020 Page 1 of 1 Collier County Property Appraiser Property Summary Site Address I Site Zone Parcel No 52600160000 *Disclaimer Site City I *Note Name / Address ACKERMAN, THERESA 5610 CYNTHIA LN City NAPLES State FL Zip 34112-2309 Map No. Strap No. Section Township Range Acres *Estimated 5A23 430900 45A23 23 50 25 0.63 Legal JONESVILLE LOT 4 OR 795 PG 1921 Millage Area • 63 Sub./Condo 430900 - JONESVILLE Use Code • 0 - VACANT RESIDENTIAL Latest Sales History (Not all Sales are listed due to Confidentialitv) Date Book -Page Amount 09/25/19 5677-1903 $ 0 01/03/19 5587-784 $ 0 02/00/79 795-1921 $ 0 01/01/79 789-837 j $ 6,000 Millage Rates a *Calculations School I Other I Total 5.083 1 8.6675 1 13.7505 2019 Certified Tax Roll (Subject to Change) Land Value (+) Improved Value I (=) Market Value $ 140,000 $0 $ 140,000 (-) 10% Cap $ 78,400 (_) Assessed Value $ 61,600 (_) School Taxable Value $ 140,000 (_) Taxable Value $ 61,600 If all Values shown above equal 0 this parcel was created after the Final Tax Roll http://www.collierappraiser.comlmain searchlRecordDetail.html?sid=860440113&ccpaver=1710181149&N... 2/26/2020 Page 1 of 1 Collier County Property Appraiser Property Detail Parcel No 52600160000 Site Address*Disclaimer I Site City i Name / Address ACKERMAN, THERESA 5610 CYNTHIA LN City I NAPLES Permits (Provided for reference Tax Yr Issuer I Perm —it # CO Date State FL )oses only. * CO 7 Final Bic Site Zone *Note Land Building/Extra Features # Calc Code Units # I Year Built Description Area Adj Area 10 RESIDENTIAL FF 100 http://www.collierappraiser.comlmain searchlRecordDetail.html?sid=860440113&ccpaver=1710181149&N... 2/26/2020 INSTR 5770084 OR 5677 PG 1903 RECORDED 9/25/2019 1:50 PM PAGES 4 CLERK OF THE CIRCUIT COURT AND COMPTROLLER, COLLIER COUNTY FLORIDA REC $35.50 Prepared without opinion of Title & return to: Dominique Rihs, Esq. 5131 Sunbury Court Naples, FL 34104 AFFIDAVIT OF CONTINUOUS MARRIAGE STATE OF FLORIDA COUNTY OF COLLIER � Before me a Notary Public, this �i�t�eied THERESA FRMAN, (hereinafter referred to as "Affiant") who being first dulysxrn, deposes and says a3olovs: 1) That Affiant and DELBERT A'CKfi fAN Were l&kf lly in ied on October 241, 2015 as evidenced by that State of Forida�a��ror 4ed° t?�. Book 5208, Page 2982, a copy attached as Exhibit A here end er cclnt�44 '1 mce that date until the date of death of DELBERT ACKE n gust` 15 h, 21`9 ► 4ig�a1 Of DELBERT ACKERMAN's death certi cai tatclias B hta-,aridude a part hereof by reference.,, ; s 2) That the undersigned affiani d)E �ELBERT ACKERl1 N tc 0 title of the following properties as husband and wife ny date indicated until A st 5, 2019, the date of death of Delbert Ackerman: The North % of the South V2 of the Northwesf f�4 of the Northwest % of Section 17, Township 50 South, Range 26, East Less ad Excepting the West 1085 feet thereof, and less road right- of-way of the East 50 feet thereof and less the South 20 feet thereof, of the Public Records, of Collier County, Florida as recorded on January 4te, 2019 at OR 5587, Pages 788-789, Public Records of Collier County, Florida and having address of 5610 Cynthia Lane, Naples, FL 34112. Lots 1 & 2, Jonesville, according to the plat recorded in Plat Book 4, Page 41, Public Records of Collier County, Florida as recorded on January 4th, 2019 at O.R. Book 5587, Pages 782-783, Public Records of Collier County, Florida. Lot 3, Jonesville, according to the plat recorded in Plat Book 4, Page 41, Public Records of Collier County, Florida as recorded on January 4th, 2019 at O.R. Book 5587, Pages 786-787, Public Records of Collier County, Florida. Lot 4, Jonesville, according to the plat recorded in Plat Book 4, Page 41, Public Records of Collier County, Florida as recorded on January 4th, 2019 at O.R. Book 5587, Pages 784-785, Public Records of Collier County, Florida. OR 5677 PG 1904 Parcel 1: Lot 11, Block 10, RIVIERA COLONY, 4, according to the plat thereof, as record in Plat Book 8, Pages 17 and 18, Public Records of Collier County, Florida. Together with that Mobile Home situated thereon. VIN #263TEFBR10804 AND Parcel 2: Lot 19, as shown on Plat of survey recorded in Book 998, Page 1199 and more particularly described as a part of the West 110 feet of the South (1/2) of the Northwest (1/4) of the Southeast (1/4) and a part of the West 110 feet of the Southwest (1/4) of the Southeast (1/4), Less the South 50 feet thereof, also less the West 30 feet thereof as shown in Official Records Book 989. Pages 93 and 94, and also less Ingress and Egress easement recorded in Book 998, Pages 1222 through 1224, inclusive, all recorded in the Public Records of Collier County Florida, Section 18, Township 50 South, Range 26 East, as recorded on January 41h, 2019 in O.R. Book 5587, Pages 780-781, Public.Rcqe,jls rfir County, Florida. . -. 3) That Affiant and DELBERT" AC"RMAN owned the ab e described properties as husband and wife from January 4', 209 t�Augus>< i' �(1� (d4 e, of de h) a DELBERT ACKERMAN and THERESA ACKERMAN, I4usband �d Wife, as tenants by e entirety with rights of survivorship. R i 4t�� { 3 er Affian Sa eth Noti �E By ess #1 signs rA N CA L . WU Printed Name of Witness #1 ell, Name STATE OF FLORIDA COUNTY OF COLLIER The foregoing was acknowledged before me this September j!5 2019, by THERESA ACKERMAN, who is _ personally known to me OR X duced Florida driver's license or id card as identification and did/did not take an o�ti signature) NOTARY SEAL: S A N D R A TA NNE R HYP eii :State of Florida -No RerM r _ Commission # GG 195394 My Commission Expires March 13, 1022 DCR:AckermanAffidavitContinuousMarriage2019 OR 5677 PG 1905 INSTR 5198889 OR 5208 PG 2982 RECORDED 10/28/2015 4:37 0M PAGES I DWIGHT E. BROCK, CLERK OF THE CIRCUIT COURT, COLLIER COUNTY FLORIDA- REC $10.00 34120-1814 o8womw of M"Ih - omce of VKM &WSW$ STATE OF FLORIDA MARRIAGE RECORD TYPE OUPPER CASE UM BLACK INK M 2 TV a 2 1 cz: 9 iS-27739 EXHi0)T "A 1" Best Available Image DEL'S CORNER ADDENDUM C - COMPARABLE DATA ADDENDUM C COMPARABLE DATA DEL'S' CORNER ADDENDUM C - COMPARABLE DATA Land Comparable 1 '4� -11 Ta&- ; Transaction 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, Property Rights Fee Simple 52600280003,52600320002, 52600360004 Grantor Thomasson PHX, LLC Days on Market 234 Grantee Thomasson Village, LLC Verification Source Alisha Cage; Naples Legal Description Lots 5-10, Jonesville Site Acres 3.8 Topography Cleared and filled Land S F 165,000 Zoning Residential Road Frontage 600 Flood Zone Zone AE Shape Rectangular Utilities All public Comments 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-plexunits). 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. Mnn�U�µoa WHS�L��aC DEL'S' CORNER ADDENDUM C - COMPARABLE DATA 1 rans action 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 Talc 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 Site Acres 0.6 Topography Improved Land SF 27,411 Zoning Residential Road Frontage 100 Flood Zone Zone AE Shape Rectangular Utilities All public Comments 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. DEL'S' CORNER ADDENDUM C - COMPARABLE DATA Land Comparable 3 w r 'W4 x Transaction 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 Site Acres 0.3 Topography Improved Land SF 11,078 Zoning Residential Road Frontage 75 Flood Zone Zone AE Shape Rectangular Utilities All public Comments 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. &KL HS�L��aC DEL'S' CORNER ADDENDUM C - COMPARABLE DATA Land Comparable 4 f f Transaction 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 Site 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 ne�enn�U�µoa WHS�L��aC 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 260 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-4-13MUD-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 12.00 Multiplier Expenses/Sq. Ft. $3.13 Overall or Cap Rate 6.94% Net Operating Income/Sq. $15.63 Ft. 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 260 7'4.94"N Longitude N1 81046'1.03"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 Phvsical 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 17.27 Multiplier Expenses/Sq. Ft. $2.31 Overall or Cap Rate 4.03% Net Operating Income/Sq. $5.29 Ft. 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 260 8'9.83"N Longitude N1 81046'44.05"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 Phvsical 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 11.05 Multiplier Expenses/Sq. Ft. $4.80 Overall or Cap Rate 7.04% Net Operating Income/Sq. $16.86 Ft. 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 260 8' 16.51 "N Longitude N1 81046'3.20"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 Phvsical 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 10.07 Multiplier Expenses/Sq. Ft. $2.50 Overall or Cap Rate 8.03% Net Operating Income/Sq. $10.55 Ft. 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 r 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 260 6'33.80"N Longitude N1 81044'55.55"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 14.14 Multiplier Expenses/Sq. Ft. $2.27 Overall or Cap Rate 5.86% Net Operating Income/Sq. $10.98 Ft. 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 Lease Comparable I Location Building ID 2575 Name 2825 Davis Boulevard Address 2825 Davis Boulevard Lessor 2825 Davis LLC City Naples GBA 9,900 State Florida Rent Steps 3% Annual Market East Naples Expense Recoveries $5.00 per SF Year Built 1982 Concessions None Condition Average Tenant Improvements Second generation Leases Tenant Size $/SF Type Date Term World Cat Powerboats 9.900 $13.00 NNN 1/1/2020 36 months Comments 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. *Rn DEL'S CORNER ADDENDUM C - COMPARABLE DATA Lease Comparable 2 Location Building ID 2593 Name Naples Flooring Address City State Market Year Built Condition 771 Airport Road North, Unit 2 Lessor Naples GBA Florida Rent Steps East Naples Expense Recoveries 1999 Concessions Average Tenant Improvements Lyjac Properties LLC 16,987 Flat for 2 yrs; 3% per year $5.17 None Second generation Leases Tenant Size $/SF Type Date Term WT Cafe of Collier 1.826 $18.00 NNN 6/1/2018 5 years Comments 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. DEL'S' CORNER ADDENDUM C - COMPARABLE DATA Lease Comparable 3 -4= Location Building ID 2566 Name The Hitching Post Units 11536 Address 115536 and 11560 Tamiami Trail Lessor East JCS Realty Group LLC City Naples GBA 46,302 State Florida Rent Steps 3% annually Market East Naples Expense Recoveries $5.65 Year Built 1974-1981 Concessions As is Condition Average Tenant Improvements Second generation Leases Tenant Size $/SF Type Date Term Listing 1.225 - 6.000 $18.50 Triple net 2/11/2020 3-5 years Comments Retail strip center located along south side of Tamiami Trail East. CAM includes water and sewer. Office, retail, and restaurant space. ne�enn�U�µoa WHS�L��aC DEL'S CORNER ADDENDUM C - COMPARABLE DATA Lease Comparable 4 Location Building ID 2373 Name 1801 J & C Boulevard Address 1801 J & C Boulevard Lessor Indigo RE, Inc. City Naples GBA 5,040 State Florida Rent Steps 4% Annual Market North Naples Expense Recoveries None Year Built 1984 Concessions None Condition Average Tenant Improvements Second generation Leases Tenant Size $/SF Type Date Term Caribbean Logistics & Invest 5.040 $14.52 Gross 4/1/2019 36 months Comments This freestanding building has a 550/sf AC office area and the remainder of the building is warehouse with 5 OH doors. *Rn DEL'S' CORNER ADDENDUM C - COMPARABLE DATA Lease Comparable 5 _1 Location Building ID 2594 Name Ming Enterprise Building Address 4584 Enterprise Ave Lessor Ming and Kwang Development Corp City Naples GBA 17,500 State Florida Rent Steps CPI Market Naples Expense Recoveries $3.20 Year Built 1985 Concessions Negotiable Condition Average Tenant Improvements Second generation Leases Tenant Size $/SF Type Date Term Listing 1.263 - 10.647 $10.00 NNN 2/11/2020 2-3 years Comments Multi unit office/warehouse complex just east of Airport Road. Industrial/Warehouse space available for $10/sf with $3.20/sf CAM. DEL'S CORNER ADDENDUM C - COMPARABLE DATA Lease Comparable 6 Location Building ID 2595 Name All Sod Nursery Address 4701 Radio Road Lessor FAM Satpro LLC City Naples GBA 3,336 State Florida Rent Steps 5% per year Market Naples Expense Recoveries $7.15 Year Built 1959 Concessions None Condition Poor Tenant Improvements None Leases Tenant Size $/SF Type Date Term All Sod Nursery, Inc 3.336 $27.07 NNN 5/1/2019 5 years 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. *Rn 14.B.1.e Bayshore CRA Triangle Sale Proceeds Distribution - Preliminary Estimate Class 1 Triangle Sum of FY20 FC Description Uses 187 Sale Proceeds Triangle Gross Sale Amount Sale Proceeds Total Return Debt Reserve Transfer from 287 Return Debt Reserve Total Cap Triangle Addn'I Invest Tower Relocation 500,000 Triangle Addn'I Invest Certificate Cash for Buyer 38,200 Cap Total 538,200 Reserves Fund 187 Reserve Addition 2,434,759 Add Trans from 287 (Debt Reserve) 350,000 Reserves Total 2,784,759 Sources 6,372,959 6,372,959 350,000 350,000 187 Total 3,322,959 6,722,959 287 Principal Payoff Principal Bonds - Triangle Sale Proceeds 3,400,000 Principal Payoff Total 3,400,000 287 Total 3,400,000 Grand Total 6,722,959 6,722,959 C:\Users\edfinn\Desktop\a FY 21 BudgetTermp Holding\Management Offices\CRA\Project FY20 request Bayshore CRA & beautification Fun packet Pg. 146